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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
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Evolving Customer/Consumer Landscape
5
On-Trade to Off-Trade
Offline to Online
Traditional to Modern
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Key Initiatives
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Growth in Cider Category With Strongbow & Apple Fox
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Tiger Reinforcing its Leadership as Malaysia’s No.1 Beer
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Premium, World Class Experiences By Heineken®
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More Reasons To Celebrate With Guinness
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Continued Investment In A Winning Portfolio
11
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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
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Financial Highlights
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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
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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
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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%
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2018 Outlook
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2018 Outlook
19
General Elections
Contraband Security Threat
Growing Conservatism
High Excise Duties
Global & DomesticEconomic
Uncertainties
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Our Vision for the Future
20
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