39
Malee Group Public Company Limited 28 February 2018 Q4/2017 Opportunity Day

Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

  • Upload
    others

  • View
    6

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

Malee Group Public Company Limited

28 February 2018

Q4/2017 Opportunity Day

Page 2: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

Disclaimers

The information contained herein is intended to represent

the Company’s operating and financial position at a given

point in time and may also contain forward looking

information which only reflects expectations based on the

prevailing geo-political, economic and non-controllable

factors. Such information has been obtained from sources

believed to be most reliable and the means in analyzing

and preparation of such information for disclosure are

based on approve practices and principles in the

investment industry. The views are based on assumption

subject to various risks and uncertainties and no

assurance is made as to whether such future events will

occur. No assurance is made as to the accuracy or

completeness of information presented in this document.

Please note that the Company has agreed that any all

information in connection with CMG products and

manufacturing activities shall be kept strictly confidential

and not be disclosed to any third party.

2 Malee Group Public Company Limited

Page 3: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

3 Malee Group Public Company Limited | CONFIDENTIAL

Company Overview

Business Update

Results of Operations and Profitability

Forward Looking

3

AGENDA

Malee Group Public Company Limited

Page 4: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

4 Malee Group Public Company Limited | CONFIDENTIAL 4 Malee Group Public Company Limited

49% 65%

Formerly named Agri Sol Co., Ltd.

Group Structure

100% 49% 49% 100%

Malee Enterprise

Co., Ltd. (MEC)

“Domestic Sale and Marketing”

Malee Group Plc

A leading manufacturer, distributor, and exporter of fruit juices, beverages, and canned fruits.

100%

Malee Capital

Co., Ltd. (MCC)

“Investment Business”

Malee International

Co., Ltd. (MIC)

“International Trading”

Monde Malee

Beverage Corp.

(MMBC)

“Beverage Business in Philippines”

Mega Malee Co., Ltd.

(MMC)

“Natural Health Drinks”

Malee Applied

Sciences Co., Ltd.

(MAS)

“Innovation Research & Development”

100%

JV partner: Monde Nissin Corp JV partner: Mega Lifesciences Plc.

Subsidiary

Joint Venture

Malee Kino

(Thailand) Co., Ltd.

(MKT)

“KINO Products & NPD in

Thailand”

51%

JV partner: Kino International Pte. Ltd.

PT Kino Malee

Indonesia

(KMI)

“MALEE Products & NPD

in Indonesia”

JV partner: PT Kino Indonesia Tbk (KINO)

Overseas Entity

Long Quan Safe Food

JSC (LQSF)

“Distribute and export

beverages in Vietnam and neighboring countries”

Tan Quang Minh

Manufacture and

Trading Co., Ltd. (TQM)

“Manufacture of beverages

for Vietnam and neighboring countries”

100%

Formerly named Malee Harvest Co., Ltd.

Page 5: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

5 Malee Group Public Company Limited | CONFIDENTIAL 5 Malee Group Public Company Limited

Shareholding Structure & Share Information

Stock Symbol: MALEE

Industry and Sector: Agro & Food Industry / Food and Beverage

No. of Listed Shares: 280,000,000 Shares

Registered Capital: THB 140,000,000

Paid-up Capital: THB 140,000,000

Par Value: THB 0.50 per Share

Listing Date: 13 March 1992

Foreign Limit: 49% (available 39.6%)

Dividend Policy: Not less than 50% of the net profit from

normal operation according to consolidated

financial statement after deduction of tax

revenue and legal reserve (with additional

conditions)

Market Capitalization: 7,140MB or 228MUSD

Free Float: 48.45%

Abico Holdings Plc

26.8%

Kamolchat Jeungrung-

reungkit 18.8%

Thai NVDR 1.6%

Others 52.7%

Share Information

(As of 26 February 2018)

Shareholding Structure

(As of 25 August 2017)

Page 6: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

6 Malee Group Public Company Limited | CONFIDENTIAL 6 Malee Group Public Company Limited

1981 1992 1995 1998 2016 1978

The Company expanded

its production base on the

land of 30 rais in Sampran

District, Nakhon Pathom

Province.

In April 1995, Abico

Holdings Plc acquired

40% from the existing

shareholders.

On 3 March 1992,

MALEE was listed

on the Stock

Exchange of

Thailand (SET).

2017

On 15 May 1998,

the Company’s

name was changed

to Malee Sampran

Plc.

2018

• In Q1/2016, MALEE, together with

Monde Nissin Corp (MNC) set up a joint

venture company in the Philippines

named Monde Malee Beverage

Corporation (MMBC)

• On 12 May 2016, the Company’s name

was changed to Malee Group Plc

• On 22 August 2016, the Company signed

a JV agreement with Mega Lifesciences

Plc (MEGA) to set up Mega Malee Co.,

Ltd. (MMC), in order to develop natural

health-focused RTD products.

• On 12 January 2017, the

Company set up a new

subsidiary named Malee

Applied Sciences Co., Ltd.

(MAS)

• On 30 October 2017, MCC

signed a joint venture

agreement with PT Kino

Indonesia tbk (KINO) to set up

2 joint venture companies in

Thailand and Indonesia.

Milestones

On 2 February 1978,

Malee Sampran

Factory Co., Ltd.

was established with

capital of 10MB as a

manufacturer and

distributor of canned

food and canned

fruits.

On 18 January 2018,

MCC signed a Share

Purchase Agreement to

acquire 65 % shares in

Long Quan Safe Food

JSC (LQSF), which owns

Tan Quang Minh

Manufacture and Trading

Co., Ltd. (TQM), a

manufacturer and

distribution of consumer

products in Vietnam.

Page 7: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

7 Malee Group Public Company Limited | CONFIDENTIAL

1,600 1,682 1,537 1,931

2,140 2,357 2,615 2,706 2,822 2,964 2,736

2,405 2,021

1,546 898

1,510

1,737 1,603

2,065

2,567

3,578 3,180

111 (39)

261 185 311

851

481 500 539 825

535

(93) (295) 131 106 228

646 283 307 331 530

286

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Unit: Baht Million

CMG Sales

Branded Sales

EBITDA

Net Profit

7 Malee Group Public Company Limited

Historical Performance

CMG: Contract Manufacturing

• Prior to 2009, major contribution of CMG was from

canned fruits.

• Discontinued the canned pineapple production in

2009 and canned sweet corn in 2013.

2016: Historical Highest

Sales

2012-2013: Benefit from the

great flood in Thailand

Page 8: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

8 Malee Group Public Company Limited | CONFIDENTIAL

Daily Nutrition

Functionality Tactical

Malee 100%

Juice UHT

Malee 100%

Juice

Pasteurize

Malee

Coco Malee

Nutrient

Malee

Healti

Plus

Malee Food

Service

Malee

Tropical

Malee

Canned

Fruit

OTHERS

Canned Fruit

Dairy Product

Other Beverages

First Choice Farmer

Chokchai Farm

Canned Sweetened

Condensed Non Dairy

Creamer

TurBusta Maxx

Malee

Light

Malee Brand Portfolio

8

UHT Pasteurize

Malee

i-Corn

Malee Group Public Company Limited

Page 9: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

9 Malee Group Public Company Limited | CONFIDENTIAL

Company Overview

Business Update

Results of Operations and Profitability

Forward Looking

9

AGENDA

Malee Group Public Company Limited

Page 10: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

10 Malee Group Public Company Limited | CONFIDENTIAL

Domestic Beverage Market

10

Source: Nielsen

Beverage reflects downward trend across categories, but demand loss remains an issue.

MAT Dec 2017 Overall Beverage Market Dropped 2.9% YoY

Malee Group Public Company Limited

Demand loss

Less effective promotion

Good performance of some key brands

Demand loss from key brands across channels

Demand loss across channels especially TT

Drop in soymilk

Loss from key brands mainly from big size

Demand loss

Page 11: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

11 Malee Group Public Company Limited | CONFIDENTIAL

Domestic RTD Fruit Juice Market

11

Source: Nielsen

MAT Dec 2017 Market Value of 12,863 MB, a Decrease of 8% YoY

Malee Group Public Company Limited

Premium Market (100% RTD Fruit

Juice) 4,835MB

38%

Medium Market (40-99% RTD Fruit

Juice) 1,242MB

10%

Economy Market (20-39% RTD Fruit

Juice) 2,607MB

20%

Super Economy Market (<19% RTD

Fruit Juice) 2,368MB

18%

Others 1,811MB

14%

(-7% YoY)

(-12% YoY)

(-1% YoY)

(-16% YoY)

(-1% YoY)

Page 12: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

12 Malee Group Public Company Limited | CONFIDENTIAL

Domestic RTD Premium Fruit Juice UHT Market Share

12

MAT Dec 2017 Market Value of 4,528 MB, a Decrease of 6% YoY

Tipco 28%

Malee 20%

Unif 13%

Doi Kham 21%

Cocomax 8%

Others 11% Tipco

28%

Malee 21% Unif

13%

Doi Kham 20%

Cocomax 9%

Others 9%

MAT Dec 2016 MAT Dec 2017

Source: Nielsen

Malee Group Public Company Limited

Page 13: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

13 Malee Group Public Company Limited | CONFIDENTIAL

Sales Structure

13

CMG: Contract Manufacturing

Domestic : International Business Brand : Contract Manufacturing

Domestic Sales

Q4/2017 : + 24% YoY

2017 : -5% YoY

Export Sales

Q4/2017 : -29% YoY 2017 : -17% YoY

Malee Group Public Company Limited

78% 72% 61% 57% 59%

69% 71% 61% 64%

22% 28% 39% 43% 41%

31% 29% 39% 36%

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 2016 2017

Export

Domestic

57% 52% 45% 45% 45% 49% 45% 45% 46%

43% 48% 55% 55% 55% 51% 55% 55% 54%

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 2016 2017

CMG

Brand

Brand Sales

Q4/2017 : -3% YoY

2017 : -8% YoY

CMG Sales

Q4/2017 : +5% YoY 2017 : -11% YoY

Page 14: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

14 Malee Group Public Company Limited | CONFIDENTIAL

Sales Territory

14

EAST ASIA China

Hong Kong

Macau

Japan

S. Korea

N. Korea

SOUTH EAST ASIA Thailand

Cambodia

Myanmar

Laos

Vietnam

Malaysia

Philippines

Indonesia

OCEANIA Australia

N. AMERICA Canada

EUROPE Russia

Germany

Poland

Approx. population of SEA is 650 million

people, plus China of 1.3 billion people

We have the strongest brand

presence and/or traction in the

these countries: Thailand

Laos

Cambodia

Myanmar

China

Our brand awareness is

strongest in our neighboring

countries.

Malee Group Public Company Limited

Page 15: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

15 Malee Group Public Company Limited | CONFIDENTIAL

2017 Branded Export Sales by Country

15

2017 Branded Export Grew 30% YoY

Malee Group Public Company Limited

Cambodia 37%

China 16%

Philippines 11%

Hong Kong 7%

Myanmar 6%

Others 24%

Page 16: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

16 Malee Group Public Company Limited | CONFIDENTIAL

ASEAN Overview

16

3rd Largest population in the

world at 635 million 3rd Largest economy in the

Asia

5.3% Average annual GDP

growth, 2000-2016 50%

Population below 30

years of age in 2016.

ASEAN People ASEAN Economy

Source: ASEANstats using data from the ASEAN Secretariat, UNCTAD, UNICT, and UN Population Division Malee Group Public Company Limited

Page 17: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

17 Malee Group Public Company Limited | CONFIDENTIAL 17

Why Vietnam…

• Vietnam is becoming an economic powerhouse in Asia with an increasingly open market, positive indicators in GDP, and strong domestic consumption

• Nearly 50% of the population is under 30 years old with a growing urbanization rate

Highlights

Malee Group Public Company Limited

Page 18: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

18 Malee Group Public Company Limited | CONFIDENTIAL 18

Beverage Market in Vietnam

RTD Tea 41%

Carbonates 22%

Sports and energy drinks 20%

Juice 10%

Bottled water 5%

Others 2%

Malee Group Public Company Limited

Page 19: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

19 Malee Group Public Company Limited | CONFIDENTIAL 19

65.0%

Nguyen Thuy

Trang

Tang Ngoc

Lien

Nguyen Dang

Hien

Shareholding Structure

26.9% 7.1% 1.0%

100%

New Subsidiary in Vietnam: Long Quan Safe Food JSC (LQSF)

Long Quan Safe

Food JSC

(LQSF)

Tan Quang Minh

Manufacture and

Trading Co, Ltd.

(TQM )

Malee Group Public Company Limited

Page 20: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

20 Malee Group Public Company Limited | CONFIDENTIAL

Production Facilities in Vietnam

20

• Founded in 1992 as the beverage manufacturer in Vietnam

• Currently considered as a leading player in Vietnam’s fast-growing beverage sector:

• As one of the top seven beverage manufacturers in Vietnam

• Strong customer database that reaches more than 30 million customers nationwide

• Strong distribution nationwide

• Its products are varied among CSD, non-CSD and others.

Overview Location

Significant Milestones

Vietnam

Manufacturing Plant & HQ located in

Ho Chi Minh City, Vietnam

Malee Group Public Company Limited

Vietnam

Page 21: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

21 Malee Group Public Company Limited | CONFIDENTIAL

Production Capabilities in Vietnam

21

Bottle Inlet Conveyor Bottle Washing Machine

Filling Machine Capping Machine

Automatic sleeve labeler Transferring end product

• 12 production lines for 8 product categories with total production capacity of 300 million liters per annum

• Production lines include Drinking Yoghurt, Fruit Juice and Winter Melon, Jelly, Water, Energy Drink, Green Tea, Bird Nest, and CSD.

Production Capacity Facilities

Malee Group Public Company Limited

Page 22: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

22 Malee Group Public Company Limited | CONFIDENTIAL 22

Short Term

Medium Term

Long Term

Develop Sustainability

Roadmap with business

diversification through

new partnership or

inorganic growth

Align with MALEE’s

direction in becoming

‘Regional Brand of

Beverage’ Strengthen leading

position in Vietnam

through a complete

product offerings from

Premium to Mass

consumer

Manufacturing Hub for Emerging Market

Variety of Product

Offerings

Quality with

competitive price

Well-Known Brand

Market / Presence

2018 - 2019

2020 - 2021

2022

Expand international

market (Brand and

OEM)

Focus and enhance on

Operational Excellence

through infrastructure

expansion and

efficiency-driven

technologies

Impact to MALEE’s Regional Strategy

Malee Group Public Company Limited

Page 23: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

23 Malee Group Public Company Limited | CONFIDENTIAL 23

Impact to Vietnam Business

Source: ASEANstats using data from the ASEAN Secretariat, UNCTAD, UNICT, and UN Population Division

• LQSF brings a strong distribution network and local

knowledge

• Provides a platform for MALEE to expand presence in

Vietnam

93 million population

6.2% GDP growth

Malee Group Public Company Limited

Page 24: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

24 Malee Group Public Company Limited | CONFIDENTIAL 24

Malee Applied Sciences (MAS)

Malee Group Public Company Limited

• To encourage MALEE’s

value chain, especially local

farmers

• To aim for innovation and

create HVA (High Value

Added) products and

services

• To connect with flexible

consumers’ health lifestyle

Product Categories:

• Food Ingredients

• Functional Food

• Nutraceuticals

• Cosmetic

Ingredients

• Green Materials

• Etc.

Page 25: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

25 Malee Group Public Company Limited | CONFIDENTIAL 25

MAS: Finalist of World Food Innovation Awards

Malee Group Public Company Limited

Page 26: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

26 Malee Group Public Company Limited | CONFIDENTIAL 26

MAS: BOI Tax Incentives

Malee Group Public Company Limited

Exemption of import duty on imported goods for use in research and development for a period of 1 year from the first date of import.

In the case of loss making during the period of tax exemption, MAS is allowed

to deduct such annual loss from the net profits of not more than 5 years after

the expiration of the period of exemption (can deduct such loss from the net profit of any one year or several years.

In addition, according to the government’s new tax incentives for R&D, MALEE also can claim deductions for R&D

expenses of 300% (up from 200%), during 2015 – 2019 (5 years).

Page 27: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

27 Malee Group Public Company Limited | CONFIDENTIAL

Company Overview

Business Update

Results of Operations and Profitability

Forward Looking

27

AGENDA

Malee Group Public Company Limited

Page 28: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

28 Malee Group Public Company Limited | CONFIDENTIAL

Q4/2017 Net profit decreased YoY mainly due to 1) lower sales contribution of

export pressuring net profit margin 2) higher depreciation resulted from additional

investment in plant, machinery, and office renovations; 3) cost from trial runs and

start-up of a new production line driving higher yield loss; 4) higher excise tax as

well as sugar tax following the Excise Act, B.E. 2560, effective since 16

September 2017; 5) higher selling expenses from new packaging launch for

branded products; 6) higher personnel expenses; 7) higher R&D expenses; and

8) higher finance costs.

2017 Net profit decreased YoY mainly due to the same reasons as Q4/2017 drop,

plus higher cost per unit resulted from lower capacity utilization.

However, the increase in costs is mainly due to investments to build the

foundation for aggressive growth from 2018 onwards, while some investments

cannot generate revenue immediately, and some investments are not fully utilized

or have not reached the optimal level yet.

Q4/2017 Sales grew by 2% YoY due to higher domestic CMG sales supported by

new products launch as well as continue growth from export branded business,

despite a decrease in export CMG and domestic branded.

2017 Sales dropped 10% YoY due to a decrease in export CMG resulted from the

implementation of the preventive measures since Q2/2017 to strictly control the

quality of coconut water throughout the supply chain, which was completed at the

end of 2017. Meanwhile, some customer ended the distribution contract with

some retailer, while some customer changed the sales format from overseas to

domestic. Domestic branded sales also declined due to the delay of the new crop

for canned fruit during Q2/2017, while fruit juice sales dropped following the

contraction of domestic fruit juice market.

4,771 5,389

6,541

1,515 1,370 1,500 1,531 1,507 1,531

6,541 5,916

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 Q4/16Q4/17 2016 2017

Sales Revenue

Unit: Million Baht

-10%

YoY

+2%

YoY

Financial Highlights

28 Malee Group Public Company Limited

307 331

530

118 61 78

28

117

28

530

286

0

100

200

300

400

500

600

2014 2015 2016 Q1/17 Q2/17 Q3/17 Q4/17 Q4/16 Q4/17 2016 2017

Net Profit

Unit: Million Baht

-76%

YoY

-46%

YoY

Page 29: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

29 Malee Group Public Company Limited | CONFIDENTIAL

Profitability Margin

29

Lower Q4/2017 %GPM YoY was mainly due to higher depreciation

resulted from additional investments in plant, machinery, and office

renovations; cost from trial runs and start-up of a new production line;

cost from production relocation; higher sales contribution of CMG

business; and higher excise tax as well as sugar tax following the

Excise Act, B.E. 2560.

Lower 2017 %GPM YoY was mainly due to the same reasons as

Q4/2017 drop, plus higher cost per unit resulted from lower capacity

utilization.

Higher Q4/2017 and 2017 YoY selling expenses to sales YoY was

mainly due to higher expenses from new packaging launch for

branded products.

Higher Q4/2017 and 2017 YoY administrative expenses to sales was

resulted from higher personnel expenses including additional

employment in a new subsidiary, gradual improvement of employee

benefits as well as higher R&D expenses. All above activities have

been prepared for the upcoming aggressive growth from 2018

onwards.

Lower Q4/2017 and 2017 %NPM YoY was mainly due to the same

reasons for lower Q4/2017 and 2017 net profit..

Malee Group Public Company Limited

33.7% 31.4% 32.2% 31.3% 27.6% 29.7% 26.3% 32.2%

26.3% 32.2% 28.7%

0.0%5.0%

10.0%

15.0%20.0%25.0%30.0%35.0%

40.0%45.0%50.0%

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 Q4/16Q4/17 2016 2017

%Gross Profit Margin

18.6% 17.4% 14.4% 13.4% 14.3% 15.7% 15.6% 12.3% 15.6% 14.4% 14.8%

7.6% 7.0% 7.1% 9.1% 8.9% 7.7% 9.6%

7.2% 9.6%

7.1% 8.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 Q4/16Q4/17 2016 2017

%SG&A to Sales

%Admin/Sales

%Selling/Sales

6.4% 6.1% 8.1% 7.7%

4.4% 5.1%

1.8%

7.7%

1.8%

8.1%

4.8%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

2014 2015 2016 Q1/17Q2/17Q3/17Q4/17 Q4/16Q4/17 2016 2017

%Net Profit Margin

Page 30: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

30 Malee Group Public Company Limited | CONFIDENTIAL

1,012 1,250

1,575 1,612

0.0%20000.0%40000.0%60000.0%80000.0%

100000.0%120000.0%140000.0%160000.0%180000.0%

2014 2015 2016 2017

Equity Unit: Million Baht

Statements of Financial Position

30

Higher total assets were mainly due to increased inventories

from higher stock level of branded canned fruit preparing for

sale until the next crop season and increased CMG

inventories. Trade receivables were also higher due to higher

sales contribution of domestic whose collection period is

longer than domestic. There were also additional investments

in joint venture as well as plant, machinery, and office, in

order to prepare for the Company’s aggressive growth from

2018 onwards.

Higher liabilities were mainly due to an increase in loans from

financial institutions for the use of working capital and

investments as well as higher trade payables under the group

of packaging materials whose payment period is quite long.

Increased equity of parent Company's shareholders slightly

increased by 1% as a result of operating profit during the

year as well as interim dividend payment.

Malee Group Public Company Limited

2,992 3,042 3,640

4,390

0.0%50000.0%

100000.0%150000.0%200000.0%250000.0%300000.0%350000.0%400000.0%450000.0%500000.0%

2014 2015 2016 2017

Total Assets

Unit: Million Baht

1,976 1,788 2,061 2,778

0.0%

50000.0%

100000.0%

150000.0%

200000.0%

250000.0%

300000.0%

2014 2015 2016 2017

Total Liabilities

Unit: Million Baht

Page 31: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

31 Malee Group Public Company Limited | CONFIDENTIAL

Liquidity

31

Lower current ratio and quick ratio was mainly resulted from

increased trade payables, higher short-term borrowings from

financial institutions for the use of working capital as well as

an increase in current portion of long-term liabilities and

current portion of liabilities under financial lease

agreements.

Extended cash cycle days was due to longer Inventory Days

resulted from higher stock level of branded canned fruits

preparing for sale until the next crop season, increased

CMG inventories, and longer A/R days due to higher portion

of domestic sales whose trade term is longer.

Longer A/P days was mainly owing to higher trade payables

under the group of packaging materials whose payment

period is quite long.

Increased IBD/E was mainly due to higher borrowings and

liabilities under financial lease agreements for the use of

working capital and investments.

Increased D/E was mostly resulted from the same reasons

as higher IBD/E plus higher trade payables under the group

of packaging materials whose payment period is quite long.

Malee Group Public Company Limited

1.12 0.68 0.75

1.13

1.95

1.43 1.31

1.72

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

2014 2015 2016 2017

D/E (x)

IBD/E (x)

0.98 1.13

0.95 0.91

0.53 0.66

0.50 0.46

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

110.0%

120.0%

2014 2015 2016 2017

CurrentRatio (x)

QuickRatio (x)

49 43 32 34

52 57 45 47

88 76 64 80

91 90 77

93

0.0%

5000.0%

10000.0%

15000.0%

20000.0%

25000.0%

30000.0%

2014 2015 2016 2017

Cash Cycle Days

Avg. Inventory Days

Avg. Collection Days

Avg. Payment Days

Page 32: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

32 Malee Group Public Company Limited | CONFIDENTIAL

0.750 0.525 0.555 0.600

0.950

0.550

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

2012 2013 2014 2015 2016 2017

Dividend per Share

Remark: - Adjusted at par value of Baht 0.50 which is effective on 16 May 2017

- In H1/2017, the Company paid dividend of Bt 0.30 per share

- As of 22 Feb 2017, the BOD has resolved to pay total dividend of Bt 0.55 per share for the year 2017.

Return to Shareholders

32

The Company has a policy to pay dividend not less than

50% of the net profit from normal operation according to

consolidated financial statements after deduction of tax

revenue and legal reserve (with additional conditions).

The Company normally pays dividend twice a year.

Unit: Baht

Lower ROA was due to lower earnings but increased

assets, as a result of additional investments to improve

production efficiency and reduce production cost, in order

to prepare for increased level of production and the

Company’s aggressive growth from 2018 onwards.

Lower ROE was mainly due to lower earnings, as a result

of higher fixed costs from various key investments as a

preparation for the Company’s future growth, while some

investments cannot generate revenue immediately, and

some investments are not fully utilized or have not

reached the optimal level yet.

Malee Group Public Company Limited

15.5% 14.8% 20.4%

8.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2014 2015 2016 2017

ROA

33.3% 29.3% 37.5%

17.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2014 2015 2016 2017

ROE

Page 33: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

33 Malee Group Public Company Limited | CONFIDENTIAL

Company Overview

Business Update

Results of Operations and Profitability

Forward Looking

33

AGENDA

Malee Group Public Company Limited

Page 34: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

34 Malee Group Public Company Limited | CONFIDENTIAL

Our 9-Year Strategy

34

Phase 1

2015 - 2017

Building and Strengthening Organization

and Foundation

Brand / Product Repositioning

Organizational Restructuring

New Business Model Formulation

Infrastructure Readiness and Development

Technology-driven Organization

Phase 2

2018 - 2020

Sprinting Business Performance

Top of Mind on Product Champion /

Brand Awareness

Business / Market Portfolio Balancing

Inorganic Business Diversification

Accelerating Financial Performance

Phase 3

2021 - 2023

Sustaining Business with Global

Presence

Excellence in Business, Operations and

Finance

Business and Organization Expansion

Malee Group Public Company Limited

Page 35: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

35 Malee Group Public Company Limited | CONFIDENTIAL

What we have done during the first phase of strategic plan (2015-2017)

35 Malee Group Public Company Limited

1) Investments in plant, machinery, and office renovations;

2) Investments in research and development;

3) Adding the competent personnel to support the future growth plan;

4) Establishing a subsidiary, Malee Applied Sciences Company Limited (MAS) to encourage farmers’ incomes

as well as enhancing security of raw materials, aiming at developing innovation and high value added

products (HVA);

5) Establishing joint ventures to develop products and distribution channels across the region:

• Mega Malee Company Limited (MMC), Thailand

• Monde Malee Beverage Corporation (MMBC), Philippines

• PT Kino Malee Indonesia (KMI), Indonesia

• Malee Kino (Thailand) Company Limited (MKT), Thailand

6) Entering into an agreement to acquire 65% ownership of Long Quan Safe Food JSC (LQSF)

• LQSF is a major manufacturer and distributor of beverage and food products in Vietnam.

• LQSF’s cost competitiveness will enhance the Company’s production base for emerging markets in

Southeast Asia

• LQSF’s wide-coverage distribution that reaches almost all regions of Vietnam will help expand the

Company’s business in Vietnam.

Page 36: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

36 Malee Group Public Company Limited | CONFIDENTIAL

Short-term Cost Increase from Investments

36 Malee Group Public Company Limited

1) Lower sales contribution of export pressuring net profit margin;

2) Higher depreciation resulted from additional investments in plant, machinery, and

office renovations to improve production efficiency and reduce production cost;

3) Cost from trial runs and start-up of a new PET production line;

4) Higher excise tax as well as sugar tax following the Excise Act, B.E. 2560, effective

since 16 September 2017;

5) Higher selling expenses from new packaging launch for branded products;

6) Higher personnel expenses;

7) Higher R&D expenses;

8) Loss from MMBC.

Page 37: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

37 Malee Group Public Company Limited | CONFIDENTIAL

Awards

37

Partner

Best Company Performance Awards

SET Awards 2017

Nominated for Best CEO Awards

SET Awards 2017

CEO receiving the Best Company Performance Awards

SET Awards 2017

Best Exporter

The Prime Minister‘s Export Award 2017

Malee Group Public Company Limited

Page 38: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

38 Malee Group Public Company Limited | CONFIDENTIAL

Share Endorsements

38

Added to MSCI Global Small Cap Indexes Effective as of the close of 30 November 2016

Partner

“Very Good” Level of CG Scoring

Malee Group Public Company Limited

Page 39: Malee Group Public Company Limitedmalee.listedcompany.com/misc/PRESN/20180228-malee-oppday-4q2017.pdf · Malee Group Plc A leading manufacturer, distributor, and exporter of fruit

Thank You

For more information, please visit our website at http://www.malee.co.th or contact us at [email protected]. Tel: +66 2080 7899 Ext 1137