Upload
trankhanh
View
227
Download
0
Embed Size (px)
Citation preview
Thai Beverage Public Company LimitedThai Beverage Public Company Limited
CONFIDENTIAL – NOT FOR DISTRIBUTION OR DISCUSSION (IN WHOLE OR IN PART OR IN SUMMARY), INCLUDING DISTRIBUTION TO OR DISCUSSION WITH ANY PROSPECTIVE INVESTOR, THE MEDIA, PRESS OR WIRE SERVICES
May 2006May 2006
Initial Public OfferingInitial Public Offering
CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, any shares in Thai Beverage Public Company Limited, nor shall it or any part of it nor the fact of its
presentation form the basis of, or be relied on in connection with, any contract or investment decision. ANY SUCH PURCHASE
SHOULD BE MADE SOLELY ON THE BASIS OF THE INFORMATION CONTAINED IN THE PROSPECTUS.
3CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Transaction SummaryTransaction Summary
Offering Structure
Offering size = 20% of enlarged share capital (95% Institutional, 5% Singapore public; 4,888,900,000 shares)Over-allotment option = 15% of the offering size (733,335,000 shares)Global Institutional Offering (Rule 144A/Reg S)Primary shares = 50% of the Offering; Secondary shares = 50% of the OfferingLock-up = 180 days for Sirivadhanabhakdi family and affiliates
Indicative Price Range S$0.26 – S$0.36
Use of ProceedsRepayment of debtGeneral corporate purposes
Key DatesPricing: May 24, 2006Trading: May 30, 2006
Listing Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST)
Joint Global Co-ordinators and Joint Bookrunners
4CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
PresentersPresenters
Investment HighlightsMr. Ueychai Tantha-ObhasSenior Vice President and DirectorMarketing
Business OperationsDr. Pisanu VichiensanthSenior Vice President and DirectorProduction
Financial HighlightsMr. Sithichai ChaikriangkraiSenior Vice President and DirectorAccounting and Finance
6CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Thailand’s Leading Beer and Spirits CompanyThailand’s Leading Beer and Spirits Company
Market leader in Thai alcoholic beverage market Approximately 60% market share in beer and 74% market share in spirits(1)
Sales of Bt92.1 bn (US$2,242 mm)(3) in FY200550.1% from spirits(2)
42.4% from beer and water(2)
7.5% from industrial alcohol / others(2)
Net Profit of Bt10.5 bn (US$256 mm)(3) in FY200516 distilleries and 3 state-of-the-art breweries~20,000 employeesA far reaching distribution and selling platform
400,000 points of saleExtensive direct coverage of retail outlets
(1) Market shares are for 2004 and are based on Canadean(2) % calculated based on revenue before elimination of inter-segment revenues(3) Exchange rate used is Bt41.07 = US$1.00, as of December 31, 2005
7CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Investment HighlightsInvestment Highlights
Market leading position in both Thai beer and spirits markets
Strong portfolio of brands with complementary product mix
State of the art breweries and well-established distilleries
Extensive distribution network with superior reach
Strong financial position with new growth opportunities
8CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Thailand is a Large and Growing MarketThailand is a Large and Growing Market
10.1%
1.3% 1.2%2.5%
5.3% 5.3%
Thailand AsiaPacific
SoutheastAsia
World Europe Americas
(mm HL)
Largest Beer Market in SE Asia One of the Fastest Growing Beer Markets Globally
Largest Spirits Market in SE Asia One of the Fastest Growing Spirits Markets Globally
Beer Sales Volume CAGR 1999-2004
3.2%
(1.2%)(0.4%)
0.7%
2.8%
(0.4%)
Thailand SoutheastAsia
Americas World AsiaPacific
Europe
16.2
1.5
0.9
8.8
12.7
1.7
Thailand
Philippines
Vietnam
Indonesia
Malaysia
Singapore
(mm Cases)
CAGR 1999-2004
10.1%
0.7%
5.0%
10.4%
1.7%
2.2%
72.1
0.4
0.2
3.6
52.6
1.1
Thailand
Philippines
Indonesia
Vietnam
Malaysia
Singapore
CAGR 1999-2004
3.2%
1.9%
5.9%
9.3%
5.4%
(0.3%)
Source: Canadean, “The Beer Service, Annual Report – 2005 Cycle, Thailand” and “The Wine and Spirits Service, Spirits Annual Report – 2005 Cycle, Thailand”
9CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Dominant Market PositionDominant Market Position
Others26%
74%
Boon Rawd33%
Thai Asia Pacific
Brewery6%
Others1%
60%
Spirits50.1%
Industrial Alcohol / Others7.5%
Beer, Soda & Water42.4%
(1) Revenue segmentation does not take into account elimination of inter-segment revenues
2005 Sales Revenue(1)
Total: Bt 92.1 bnTotal Sales Volume: 72.1 mm 9-liter cases
Total Sales Volume: 16.2 mm HL
Spirits – 2004 Market Share Beer – 2004 Market Share
Boon Rawd33%
Thai Asia Pacific
Brewery6%
Others1%
60%
10CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Thailand’s Best-Selling Alcoholic Beverage BrandsThailand’s Best-Selling Alcoholic Beverage Brands
(1) By sales volume in 2004 (Source: Canadean)
Chang#1 Beer(1)
Sangsom#1 Rum(1)
Mekhong#2 Rum(1)
Ruang Khao#1 White Spirit(1)
Mungkorn Thong Leading Rum
Pai-Thong#2 White Spirit(1)
Blue Newly LaunchedAdmix Whisky
Chang DraughtPure Malt Beer
Crown 99Relaunched Admix
Whisky
Chang LightNewly Launched
Lower Alcohol Content Beer
NiyomthaiNewly Launched
White Spirit
Hong ThongRelaunched Rum
Beer White Spirits Brown Spirits
11CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Our StrategyOur Strategy
Maintain market leadership
Expand into new profitable segments
Continue brand investment
Leverage infrastructure and distribution network
Establish platform for international expansion
12CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Premiumization Through Chang Light / Chang DraughtPremiumization Through Chang Light / Chang Draught
Chang Chang Light Chang Draught Archa
Alcohol Content 6.4% 4.2% 5.0% 5.4%
Positioning Economy(Mass Market)
Standard(Urban)
Lower Alcohol Economy(Urban)
Lower Alcohol Economy(Urban)
Price / Bottle Bt 33-35 / 640ml Bt 40 / 640ml Bt 35-38 / 640ml Bt 35-37 / 640ml
Key Competitors Singha / Singha Light/ Heineken
Leo / Singha Leo Leo
13CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Ongoing Premiumization of Brown SpiritsOngoing Premiumization of Brown Spirits
New choice to admix to tap low end scotch segment
Bt 260/700ml
Blue
Sangsom to be introduced in gift boxes
Bt 190/700ml
Sangsom
Admix whisky made from quality imported malt from Scotland
Bt 200/700ml
Crown 99Hong Thong
Repackaged, revamped and relaunched Hong Thong
Bt 150/700ml
14CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Branding of White SpiritsBranding of White Spirits
Existing White Spirit Portfolio Launching Niyomthai to Establish a Nationwide brand of White Spirits
Regional based
Limited brand recognition
Nationwide Brand
Pai-ThongRuang Khao Chiang-Chun Sua Dum
Niyomthai
30° 35° 40°
Many white spirit products with no established branding
15CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
New Agent Strategy for New/Growth BrandsNew Agent Strategy for New/Growth Brands
Modern Trade/
Hospitality Channels
Sole-Agents(470)
Direct Sales (>900)
Agents (>2600)
Non-exclusive Agents
400,000 Points of Sale
17CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
World-Class BreweriesWorld-Class Breweries
5.3
1.2
4.4
4.6
Bang Ban Kamphaengphet Wang Noi
Beer Production Capacity(1)
(mm HL p.a.)
Specialized capacity to produce customized / batch products / exports
(Beer Thip) (Beer Thai) (Cosmos)
(Beer expansion to be fully
completed in 1Q2007)
High historical average capacity utilization of over 80%
(1) Soda & Water capacity (mm HL p.a.): Bang Ban: 3.0; Kamphaengphet: 3.0; Wang Noi: 1.0
18CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Extensive Network of DistilleriesExtensive Network of Distilleries
16 Distilleries Throughout Thailand
SuratThaniSuratThani
Chiangmai
Khonkaen
Nakornsawan
Suratthani
Samutsakorn
Prachinburi
Ratchaburi
Nakornpathom (2)
PathumthaniBurirum
NongkaiUttaradit
UbonratchathaniKanchanaburi (2)
THAILAND
8,694
4,936
4,245
3,910
3,854
3,705
3,431
3,200
2,677
2,597
2,435
2,055
1,956
1,334
848
Nakornpathom
Prachinburi
Khonkaen
Burirum
Samutsakorn
Ubonratchathani
Nongkai
Suratthani
Nakornpathom
Pathumthani
Nakornsawan
Kanchanaburi
Ratchaburi
Chiangmai
Uttaradit
Kanchanaburi
(1) Produces semi-finished goods
2005 Production Volume (‘000 Cases)
(1)
20CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Financial SummaryFinancial Summary
Revenue from Sales EBITDA Net Profit(1)
91.6 90.1 92.1
2003 2004 2005
18.819.9
20.820.5%22.1% 22.6%
2003 2004 2005
(Bt bn) (Bt bn) (Bt bn)
9.09.5
10.59.8%
10.6%11.4%
2003 2004 2005
CAGR (03-05)
= 5.3% CAGR (03-05)
= 8.0%
(Margin)(2) (Margin)(2)
(1) Including net profit (loss) not attributable to the Company(2) As % of sales revenues
21CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Segment Revenue Performance 2003-2005Segment Revenue Performance 2003-2005
(1) Figures do not take into account related businesses or elimination of inter-segment revenues
52.1 47.7 42.3
42.238.7
49.9
0.90.70.691.4 90.6 93.0
0
10
20
30
40
50
60
70
80
90
100
2003 2004 2005
(Bt bn)
Segment Revenue Growth(1)
Beer & Water Spirits Industrial Alcohol
22CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Gross Margin Increases Due to Improved Operational Efficiencies and Higher ASPs Gross Margin Increases Due to Improved Operational Efficiencies and Higher ASPs
48.3 45.7 45.4
8.2 7.2 7.2
4.64.3 4.0
5.76.4 6.6
66.8 63.6 63.1
27.1%29.4%
31.4%
2003 2004 2005
(Bt bn)
[To Come] General and Administrative ExpensesCost of Sales
Excise Taxes Packaging MaterialsRaw Materials Others
4.8 4.2 4.7
2.3 2.52.8
0.7 1.22.2
3.3 3.2
2.911.2 11.1
12.6
13.7%12.4%12.2%
2003 2004 2005
(Bt bn)
Marketing and Advertising EmployeeIdle Others
Gross Profit Margin (%)
% of Sales Revenue
23CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
1Q Financial Summary1Q Financial Summary
Revenue from Sales EBITDA Net Profit
22.9 22.7
1Q2005 1Q2006
5.6
5.124.5%
22.6%
1Q2005 1Q2006
(Bt bn) (Bt bn) (Bt bn)(Margin)(1) (Margin)(1)
2.9
2.510.9%
12.8%
1Q2005 1Q2006
(1) As % of sales revenue
24CONFIDENTIAL NOT FOR DISTRIBUTION – NOT AN OFFER OF SECURITIES
Strong Operating Cash Flow with Limited Required Capital Expenditure after 2006Strong Operating Cash Flow with Limited Required Capital Expenditure after 2006
Capex and Cash Flow Profile
661 1553
6389
1841593
1,987 1,0192,582
1,176
413 499
432
523
150
3,061 3,071
4,946
1,918
400
7,220
20,576 21,10919,052
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2003 2004 2005 2006 20070
5,000
10,000
15,000
20,000
25,000
30,000
Capital Expenditure(Bt mm)
Operating Cash Flow(1)
(Bt mm)
Beer & Water Spirits Industrial Alcohol / Related Businesses
(1) Before changes in operating assets and liabilities