Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement REVISED PRESENTATION ON 2016 THIRD QUARTERLY RESULTS A revised presentation in relation to the results of Tingyi (Cayman Islands) Holding Corp and its subsidiaries for the Third Quarterly Results for the Nine Months Ended 30th September 2016 is appended to this announcement The amendment stated on page 15 of the presentation was due to the typing errors about the figures of EBIT of instant noodles By order of the Board Tingyi (Cayman Islands) Holding Corp Ip Pui Sum Company Secretary Hong Kong, 28 November 2016 As at the date of this announcement, Mr Wei Ing-Chou, Mr Junichiro Ida, Mr Wu Chung-Yi, Mr Nagano Teruo, Mr Wei Hong-Ming and Mr Koji Shinohara are executive Directors of the Company Mr Hsu Shin-Chun, Mr Lee Tiong-Hock and Mr Hiromu Fukada are independent non-executive Directors of the Company * For identification purposes only website: http://wwwmasterkongcomcn http://wwwirasiacom/listco/hk/tingyi
Tingyi Holding Corp 3Q 2016 Results 28 November 2016
Disclaimer The information contained in this presentation is intended solely for your personal reference Such information is subject to change without notice and no representation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completeness or correctness of the information contained in this presentation This presentation does not intend to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the Company s financial or trading position or prospects None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability (in negligence or otherwise) whatsoever for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation This presentation contains projections and forward looking statements that may reflect the Company s current views with respect to future events and financial performance Readers are cautioned not to place undue reliance on these forward-looking statements which are subject to various risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or the provision of any investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto, nor does this presentation constitute a recommendation regarding the securities or financial instruments of the Company 2016 Tingyi(Cayman islands)holding Corp, All right reserved 2
Contents 3Q 2016 review Financial highlights Market shares Distribution network Production summary 3
3Q 2016 Sales & Profit US$ million 3Q2016 3Q2015 Change% Turnover 2,722 2,764-152 Gross Profit 910 920-109 Gross Margin 3344% 3330% 014ppt EBITDA 449 408 997 Profit 221 188 1737 Profit attributable to owners of the Company 143 144-100 EPS (US cents) 255 257-002cents 4
1-9/ 2016 Sales & Profit US$ million 1-9/2016 1-9/2015 Change% Turnover 6,913 7,634-944 Gross Profit 2,236 2,522-1133 Gross Margin 3235% 3304% -069ppt EBITDA 936 1,088-1391 Profit 312 461-3230 Profit attributable to owners of the Company 213 342-3785 EPS (US cents) 379 610-231cents 5
Turnover by Products US$ million 3Q2016 3Q2015 Change% Instant Noodles 969 1,062-875 Beverages 1,696 1,638 355 Instant Food 35 36-406 Others 22 28-2127 Total 2,722 2,764-152 3Q2015 3Q2016 Noodles 39% Instant Food 1% Others 1% Beverages 59% Noodles 36% Instant Food 1% Others 1% Beverages 62% 6
Turnover by Products US$ million 1-9/2016 1-9/2015 Change% Instant Noodles 2,511 2,854-1201 Beverages 4,232 4,600-801 Instant Food 98 103-537 Others 72 77-543 Total 6,913 7,634-944 1-9/2015 1-9/2016 Noodles 38% Instant Food 1% Others 1% Beverages 60% Noodles 36% Instant Food 2% Others 1% Beverages 61% 7
Instant Noodle Sales by Products US$ million 3Q2016 3Q2015 Change% Bowl 467 502-670 High end Packet 357 433-1754 Mid end Packet 128 106 2027 Snack Noodle & Others 17 21-2264 Total 969 1,062-875 3Q2015 3Q2016 Mid end Packet 10% Snack Noodle & Others 2% Mid end Packet 13% Snack Noodle & Others 2% High end Packet 41% Bowl 47% High end Packet 37% Bowl 48% 8
Instant Noodle Sales by Products US$ million 1-9/2016 1-9/2015 Change% Bowl 1,221 1,376-1124 High end Packet 801 1,123-2867 Mid end Packet 441 294 5009 Snack Noodle & Others 48 61-2199 Total 2,511 2,854-1201 1-9/2015 1-9/2016 Mid end Packet 10% Snack Noodle & Others 2% Mid end Packet 17% Snack Noodle & Others 2% High end Packet 40% Bowl 48% High end Packet 32% Bowl 49% 9
Beverage Sales by Products US$ million 3Q2016 3Q2015 Change% Tea 714 665 723 Water 337 327 306 Juice 224 235-433 Carbonated drinks and Others 421 411 249 Total 1,696 1,638 355 3Q2015 3Q2016 CSD & Others 25% CSD & Others 25% Juice 14% Water 20% Tea 41% Juice 13% Water 20% Tea 42% 10
Beverage Sales by Products US$ million 1-9/2016 1-9/2015 Change% Tea 1,832 1,922-468 Water 763 855-1076 Juice 558 678-1767 Carbonated drinks and Others 1,079 1,145-583 Total 4,232 4,600-801 1-9/2015 1-9/2016 CSD & Others 25% CSD & Others 26% Juice 15% Water 18% Tea 42% Juice 13% Water 18% Tea 43% 11
Gross Margin by Products 40 35 30 % 3176 3037 3447 3537 3244 3702 3330 3344 3Q2015 3Q2016 25 20 15 10 5 0 Instant Noodles Beverages Instant Food Overall Change (ppt) -139 090 458 014 12
Gross Margin by Products 40 35 30 % 3084 3464 2885 3594 3453 3296 3304 3235 1-9/2015 1-9/2016 25 20 15 10 5 0 Instant Noodles Beverages Instant Food Overall Change (ppt) -199-011 298-069 13
EBIT by Products US$ 000 3Q2016 3Q2015 Change% Instant Noodles 111,153 148,071-2493 Beverages 193,176 117,933 6380 Instant Food -903-5,683 8411 Others 3,912 10,084-6121 Group EBIT 307,338 270,405 1366 14
EBIT by Products US$ 000 1-9/2016 1-9/2015 Change% Instant Noodles 181,149 341,172-4690 Beverages 296,082 340,527-1305 Instant Food -7,424-16,702 5555 Others 25,026 18,177 3768 Group EBIT 494,833 683,174-2757 15
Profit US$ 000 3Q2016 3Q2015 Change% Instant Noodles 84,287 112,645-2517 Beverages 145,713 78,837 8483 Instant Food -1,172-5,651 7926 Others -8,068 2,263-45652 Group Profit 220,760 188,094 1737 16
Profit US$ 000 1-9/2016 1-9/2015 Change% Instant Noodles 145,114 265,856-4542 Beverages 185,144 215,890-1424 Instant Food -7,611-16,606 5417 Others -10,297-3,754-17429 Group Profit 312,350 461,386-3230 17
Financial Position As at 30/09/2016 As at 31/12/2015 *ROA (Annualized) 747% 551% *ROE (Annualized) 980% 863% Current Ratio 079 068 Gearing Ratio 011 049 A/R Turnover /Days 1101 946 Finished Goods Turnover/Days 976 1087 Cash and cash equivalents US$211 billion US$1024 billion *ROA:EBIT to average total assets *ROE:Profit attributable to equity holders of the Company to average net assets 18
Material Price RMB/Ton 4000 Flour 12000 Palm Oil 3500 10000 3000 3,340 8000 6,250 2500 6000 2000 4000 14000 PET Resin 8000 Sugar 12000 10000 7000 6000 6,150 8000 6000 6,650 5000 4000 19
Instant Noodle Market Share-by Volume Instant Noodle Market Share-by Value 600 % Tingyi Holding 700 % Tingyi Holding 500 400 439 442 457 440 449 477 474 472 469 460 450 435 425 463 463 463 424 600 500 563 556 564 571 556 552 544 565 565 560 572 564 559 513 550 524 500 400 300 200 158 Company A 168 176 174 200 300 200 164 Company A 176 182 181 214 104 90 100 88 90 81 77 Company B 83 71 74 Company C 71 00 12Q3 13Q3 14Q3 15Q3 16Q3 100 78 69 57 61 Company B 71 58 60 53 57 Company C 49 00 12Q3 13Q3 14Q3 15Q3 16Q3 Source: Nielsen 20
RTD Tea Market Share-by Volume RTD Tea Market Share-by Value % 600 500 400 300 476 463 483 278 512 Tingyi Holding 536 525 513 545 560 542 Company A 285 279 539 564 566 277 539 522 537 542 285 600 500 400 300 % 452 418 440 Tingyi Holding 478 489 470 494 458 460 457 434 485 433 457 468 444 447 Company A 315 311 316 333 290 200 200 100 00 112 Company B 74 58 50 100 Company C 42 11 08 10 10 39 12 Q3 13Q3 14Q3 15Q3 16Q3 00 121 83 Company B 65 65 55 Company C 15 11 20 16 42 12 Q3 13Q3 14Q3 15Q3 16Q3 Source: Nielsen 21
RTD Tea (no milk tea) Market Share-by Volume RTD Tea (no milk tea)market Share-by Value 700 600 % % Tingyi Holding 608 614 614 624 594 614 604 593 571 584 623 545 609 601 525 580 600 500 Tingyi Holding 559 561 565 561 557 511519 522 534 538 565 563 548 533 525 509 495 500 535 400 400 300 238 239 Company A 226 226 238 300 232 247 Company A 234 245 272 200 200 100 00 102 Company B 72 58 50 42 Company C 13 09 09 10 43 12 Q3 13 Q3 14Q3 15Q3 16Q3 100 00 108 Company B 81 67 73 54 Company C 18 14 14 16 42 12 Q3 13 Q3 14Q3 15Q3 16Q3 Source: Nielsen 22
Bottle Water Market Share-by Volume Diluted Juice Drinks (below39% juice content) Market Share-by Volume % 300 % 400 250 200 150 100 50 00 259 241 350 227 226 212 219 Company A 218 216 197 300 221 201 215 202 190 203 191 186 176 250 Company B 160 162 177 171 Company C 131 200 143 146 114 113 109 Tingyi Holding 88 98 93 87 150 83 Company D 78 77 83 80 72100 56 Company E 39 18 25 Company F 13 10 10 21 17 12 Q3 13 Q3 14Q3 15Q3 16Q3 50 00 338 310 300 305 283 284 262 271 Company A 252 261 252 282 269 Tingyi Holding 254 257 239 214 203 202 219 192 203 190 186 176 Company B 174 168 82 63 Company C 54 45 39 Company D 46 37 34 35 34 12 Q3 13Q3 14Q3 15Q3 16Q3 Source: Nielsen 23
A)Nation-Wide Distribution Network As at 30/09/2016 As at 30/06/2016 As at 31/12/2015 Sales Offices: 598 600 606 Warehouse: 69 71 73 Wholesaler: 33,552 31,828 30,095 Direct Retailer: 116,324 116,468 116,036 B)Production Lines Instant Noodles 227 227 227 Beverage 476 474 468 Instant Food 16 16 16 24