opportunity day h1/2016 · 8/29/2016 · financial review h1/2016 2. business overview &...
TRANSCRIPT
Opportunity Day
H1/201629 august 2016
SAPPE PUBLIC COMPANY LIMITED, THAILAND
AGENDA:
1. Financial Review H1/2016
2. Business Overview & Category Direction
3. Why All coco group?
4. Business Synergy
1. Financial Review H1/2016
2016 Key Achievements
- China: Coverage Expansion as planned
- Indonesia: effective in-store execution and economy recovery
- Cost Saving Project:
• Setup new production line
• Reduce plastic usage in packaging material
• Merging production base project (Bangchan Factory to Klong 13)
5
Full-Year Revenue Breakdown
SAPPE’s %COGS continued to decrease due to the new production line and cost saving projects during Q3-Q4:2015.
6
Cost of Goods Sold by Quarters
• New capacity increase by 30% from
100,000 to 130,000 tons, with highly
efficient processes
• In-house bottling capacity increase
from 50% to nearly 100% of demand
• Less plastic usage in packaging material
by 10% from short-neck and resin
reduction project
• Less admin & transportation costs from
factory relocation
Cost Saving Project
8
Gross Profit Margin
(THB mm)
SAPPE’s Selling Expenses in first half were significantly increased but remain in the budget through out the year
Sales and marketing campaigns for summer (Apr–Jun 16).
Regional campaigns for international business, preparing for Q1-Q2:2016.
9
Selling Expenses
(THB mm)
10
Administration Expenses was up YoY by 0.6 percentage points, driven by:
1. Organic growth of normal expenses, such as employee salaries
2. Investment in infrastructure to support its international business growth, including manpower, IT
system and a new office of a subsidiary.
Admin Expenses
(THB mm)
11
Net Profit Margin
(THB mm)
Net profit amount 150.7Mb and 18.0% of Net Profit Margin in Q2 2016 is the highest point since 2012.
12
Asset Components
(THBmm)
13
Liabilities Components
1.0x 1.2x NilNilIBD/E
(THBmm)
Nil
275.0350.0
187.0
181.8
216.8151.9 185.9
191.3
216.9
252.9303.7
281.2
0.0
4.7
4.3 4.24.2
19.1
44.6
49.3 54.973.9
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
2012 2013 2014 2015 H1-2016
Short term loan from FI Account payable Other payable Loan from related party Long term loan Financial lease Other liabiliies
546
787
939
524 515
600.0
14
Capital Expenditure
(THBmm)
The company had no mega capital expenditure project plan in year 2016 only a small cost saving projects through the year
Business Overview
16
No. 1 market share in value in
Thailand (women segment)
No. 1 coffee volume in Thailand
Production Categories Description Key Brands Sale Structure
Strong Portfolio
H1 : 2016
THB 1,417.0 MB
17
“We derive our sale from more than 60 countries around the world”
Europe
Sale structure by geography
Asia
Geographical Overview of Our Market
Indonesia
H1 : 2016
THB 1,417.0 MB
18
$1 billion Y14 category in US+UK
Projected 25.24 %CAGR from Y14-20
*data from TransferWise BLOG
Global Mega Trend: Coconut Drink
strictly confidential 19
Coconut water sales, top brands
How do Thai Coconuts play in Global market?
strictly confidential 20
http://www.worldatlas.com/articles/the-world-leaders-in-coconut-production.html
3%
มะพรา้วน ้าหอม รูจ้กัไปท ัว่อเมรกิาและยุโรป
ผ่านแบรนดใ์นตา่งประเทศ !!
SAPPE PORTFOLIO EXPANSION
Functional Drink Provide beauty and health
benefits to supplement
normal diets
“A Beauty you can drink”
concept captures the key
target market
Functional Powder Instant powder without sugar
and cholesterol for dietary
purpose and healthy benefits
RTD Juice Drink Juice Drink with inclusion
(nata de coco & aloe vera),
and 100% natural fruit and
vegetable juice
“Mogu Mogu” is the top
selling brand among nata de
coco drinks
RTD Coffee & Others Preaw coffee in a can for
ready to drink purpose
No. 1 market share in value in Thailand
(women segment)
No. 1 coffee volume in Thailand
Product Categories Description Current Brands
strictly confidential 22
EXPANSION
RTD Coconut Water
Why All coco?
Why ?
No.1 exporter
Minimum supply 100k coconut/day
No.1
organic certify
(4,000 rai)
All coco brand
established
Facility Installed
-
Ready to launch
In-house R&D for coconut product
strictly confidential 24
No.1 exporter
Minimum supply 100k coconut/day
No.1
organic certify
(4,000 rai)*
All coco brand
established
Facility Installed
-
Ready to launch
In-house R&D for coconut product
strictly confidential 25
K Best Farm Co., Ltd.
*by the end of 2017
มะพรา้วน ้าหอม - ราคาลติรละ 35-140 บาท
- รสชาตดิ ีมกีลิน่หอม
- ขายเป็นผลสดหรอืแปรรปูราคาแพง
Coconut Industry
26
มะพรา้วแก/่มะพรา้วกะทิ
- น ้าไม่อรอ่ย รสชาตไิม่ด ีตอ้งเอาไปปรงุแตง่รสชาติ
- น ้าราคาลติรละ 8-12 บาท
- เป็น by product ของโรงงานท ากะทิ
- ปัจจบุนัน าเขา้จากอนิโดนีเซยีบางส่วน
strictly confidential
Our Network 6,000 ไร่
Minimum Supply 100,000 ลูก/วนั
No.1 exporter
Minimum supply 100k coconut/day
No.1
organic certify
(4,000 rai)*
All coco brand
established
Facility Installed
-
Ready to launch
In-house R&D for coconut product
strictly confidential 28
Nam Hom Coconut Juicy PuddingNAM HOM frozen pudding mixed with young coconut flesh,
a balance of light sweet taste of 100% NAM HOM water
and soft coconut flesh makes the texture and the aroma so irresistible.
=
=
=
Cholesterol Free
=
=
=
Cholesterol Free
Coco SnowflakesOur signature product made from wholesome NAM HOM coconut water,
ALL COCO special recipe a snowflake slushy 100% NAM HOM soft, sweet and fresh to the last drop.
Choose from different flavors No sugar, Charcoal, Extreme and make one or all your favorite.
No Sugar Added Charcoal Extreme
OriginalMixCharcoal
=
=
Cholesterol Free
Coco Soft ServeSoft and naturally sweet soft ice cream made from 100% NAM HOM coconut,
so creamy that you will crave for more.
ALL COCO soft serve offers different flavors from original
and charcoal flavor from burned coconut shell and
husk or you can have both in one serve in case you can't decide.
3 kgs tub
=
=
=
Coco Ice Cream100% NAM HOM coconuts are created into a variety of fun and flavorful ice cream.
No coconut milk so it has no fat, no cholesterol.
It's the one and only ice cream made from 100% NAM HOM you can find.
Coconut Shell Bagged Coconut Water Coconut Flesh
Coco Snowball Fresh Coconut Coconut Oil
Other Coconut Products
World’s first Nam Hom Coconut Café
“The Sweet Nature of Life”
Central Festival EastVille
Central West Gate
Siam Paragon The Emquartier Platinum
No.1 exporter
Minimum supply 100k coconut/day
No.1
organic certify
(4,000 rai)*
All coco brand
established
Facility Installed
-
Ready to launch
In-house R&D for coconut product
strictly confidential 40
Coconut Factory Co., Ltd.
• Established in 2014
• Manufacture of Nam Hom Coconut in
hygienic facility and closed system
• Transform coconut intro various products
with our innovation
• Lock Nam Hom Coconut DNA
No.1 exporter
Minimum supply 100k coconut/day
No.1
organic certify
(4,000 rai)*
All coco brand
established
Facility Installed
-
Ready to launch
In-house R&D for coconut product
strictly confidential 43
• Since 2004
• Manufacturer and exporter of
Young fresh coconuts
• Export 20 million coconuts / year
• 30 countries around the world
• Manufacturing in world class standard,
GMP and HACCP by SGS
strictly confidential 46
47
เข้าซือ้ท่ีราคา 140 MB
Additional
20%@Market Value
strictly confidential
Business Synergy from our network
“Be an inspiring THAI MODEL ORGANIZATION to deliver a SUPERIOR CHOICE OF COCONUT
PRODUCT that better people’s lives”
Premium drink Affordable
drinkFood&Snack Raw/Fresh
Coverage
72 countries
Coverage
30 countries
Pro
du
ct
Ch
an
ne
l
Oth
ersChina
Indonesia
- Finance
- R&D
- Engineer
- Production
Support
48strictly confidential
BASE BUSINESS
49
Trader & OEM
Incremental business from SAPPE
strictly confidential
strictly confidential 50
From the begin of supply chain …To the hand of consumer
Q&A