fy17 financial results media & analyst briefing › misc › presentation › gab_2017 … ·...

Heineken Malaysia Berhad

FY17 Financial Results Media & Analyst Briefing

Wednesday, 14 February 2018

HEINEKEN MALAYSIA BERHAD

Heineken Malaysia Berhad

FY2017Challenging Environment But Some Green Shoots

2

Economy Regained

Momentum

Growing Household Incomes &

Employment

Heineken Malaysia Berhad

FY17 OverviewEconomic Pressures Continued to Impact Consumers

3

Inflationary Pressures

Foreign Exchange Volatility

Rising Costs of Living

Soft Consumer Sentiment

Heineken Malaysia Berhad

94 97

100 98

83

70 73 72 70

64

74 73

79 74

70

79 77

81 77

83

-

20

40

60

80

100

12 MONTH AVERAGE Q1 Q2 Q3 Q42014 2015 2016 2017

Signs of Consumer Sentiment ImprovingBut Still Remains Below Optimal Threshold

4

100-point optimism threshold

Source: Department of Statistics Malaysia; Malaysian Institute of Economic Research; http://www.mier.org.my/

CSI

Heineken Malaysia Berhad

Evolving Customer/Consumer Landscape

5

On-Trade to Off-Trade

Offline to Online

Traditional to Modern

Heineken Malaysia Berhad6

Key Initiatives

Heineken Malaysia Berhad7

Growth in Cider Category With Strongbow & Apple Fox

Heineken Malaysia Berhad8

Tiger Reinforcing its Leadership as Malaysia’s No.1 Beer

Heineken Malaysia Berhad9

Premium, World Class Experiences By Heineken®

Heineken Malaysia Berhad10

More Reasons To Celebrate With Guinness

Heineken Malaysia Berhad

Continued Investment In A Winning Portfolio

11

Heineken Malaysia Berhad12

Unlocking Cost Efficiencies

Monitor & control

supplier performance

One way of ordering, receiving, and data requesting.

Improved visibility of Spend

Generating savings andcash benefits

$

Successfully Integrated Processes

With HEINEKEN

Global Procurement

Heineken Malaysia Berhad13

Financial Highlights

Heineken Malaysia Berhad14

FY17 & Q4 Performance

FY17: 12 months ended 31 December 2017 compared to prior year same period

Q4: 3 months ended 31 December 2017 compared to prior year same period

Revenue

+ 2.6%from RM1.88 billion

to RM1.93 billion

Profit Before Tax

+ 4.6%from RM347 million

to RM363 million

Revenue

+ 6.1%from RM577.5 million

to RM612.6 million

Profit Before Tax

+ 0.6%from RM122.3 million

to RM123 million

Operating Profit (BEIA)*

+ 5.9%from RM348 million

to RM368 million

* Other EIA consists of restructuring cost and loss on disposal of fixed asset

Heineken Malaysia Berhad15

Proposed Dividend Pay Out

40 sen

INTERIM DIVIDEND (Paid in October 2017)

50 sen

FINAL DIVIDEND PROPOSED

(Payable in June 2018)

90 senTOTAL DIVIDEND IN FY17

Heineken Malaysia Berhad

Summary: Bringing Things Together The Last 12 Months

16

FINANCIALSRevenue

+2.6%Profit Before Tax

+4.6%FY17 Dividend

90 sen per stock unit

DRIVERSVolume Growth Driven

By Favourable Brand MixImproved

Commercial ExecutionCost Efficiencies

Via CRO Procurement

KEY POSITIVESInnovation –

New Product Launches

Local Production of Cider With

Market Share Gains

Improved H2After Softer 1H

CHALLENGES

Soft consumer sentimentRegulatory Risk Contraband

Heineken Malaysia Berhad

Over The Past Decade, Shareholder Return Shown Consistent Growth

17

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

-

5.00

10.00

15.00

20.00

25.00

Jun Jun Jun Jun Jun Jun Jun Jun Dec Dec

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Shareholder's Return

Total dividend paid (RM) Closing Share price (RM)

10 years Annual Return: 19%Last 1 year Shareholder Return: 21.5%

Heineken Malaysia Berhad18

2018 Outlook

Heineken Malaysia Berhad

2018 Outlook

19

General Elections

Contraband Security Threat

Growing Conservatism

High Excise Duties

Global & DomesticEconomic

Uncertainties

Heineken Malaysia Berhad

Our Vision for the Future

20

Heineken Malaysia Berhad21