Malee Group Public Company Limited
23 November 2018
Q3/2018 Opportunity Day
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.
2Malee Group Public Company Limited
3Malee Group Public Company Limited | CONFIDENTIAL
Company Overview
Business Update
Results of Operations and Profitability
Forward Looking
3
AGENDA
Malee Group Public Company Limited
4Malee Group Public Company Limited | CONFIDENTIAL 4Malee 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
JV/ Associate
Malee Kino
(Thailand) Co., Ltd.
(MKT)
“KINO Products & NPD in
Thailand”
51%
Partner: Kino International Pte. Ltd.
PT Kino Malee
Indonesia
(KMI)
“MALEE Products & NPD
in Indonesia”
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.
100%
PT Kino Malee
Trading (KMT)
“Trading Business in
Indonesia”
5Malee Group Public Company Limited | CONFIDENTIAL
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 47.1%)
Dividend Policy: Not less than 50% of the net profit from
normal operation according to consolidated
financial statements after deduction of tax
revenue and legal reserve. However, actual
payments will depend on cash flows and
investment plans of the Company’s and its
affiliates as well as other necessities as the
Board of Directors deems appropriate.
Market Capitalization: 2,254MB or 68MUSD
Free Float: 48.63%
5Malee Group Public Company Limited
Shareholding Structure & Share Information
Abico Holdings Plc
26.8%
KamolchatJeungrung-
reungkit17.3%
Thai NVDR, 3.4%
Others52.5%
Share Information
(As of 20 November 2018)
Shareholding Structure
(As of 8 May 2018)
6Malee Group Public Company Limited | CONFIDENTIAL 6Malee Group Public Company Limited
1981 1992 1995 1998 20161978
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 27 April 2018, MCC
has completed its
acquisition of 65%
ownership 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.
7Malee Group Public Company Limited | CONFIDENTIAL
1,600 1,682 1,5371,931
2,1402,357 2,615 2,706 2,822 2,964 2,736
2,052
2,405 2,021
1,546 898
1,510
1,7371,603
2,065
2,567
3,5783,180
1,840
111 (39)
261 185 311
851
481 500 539 825
535
37 (93)
(295)
131 106 228
646
283 307 331 530 286(129)
-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 9M/2018
Unit: Baht Million
CMG Sales
Branded Sales
EBITDA
Net Profit
7Malee 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
Sales2012-2013: Benefit from the
great flood in Thailand
9M/2018 Sales:
3,892MB
8Malee Group Public Company Limited | CONFIDENTIAL
Malee
Tropical
Malee 100%
HPP Fruit
Juice
Daily Nutrition
Functionality Tactical
Malee 100%
UHT Fruit
Juice
Malee 100%
Pasteurized
Fruit Juice
Malee
CocoMalee
Nutrient
Malee
Healti
Plus
Malee Food
Service
Malee
Canned
Fruit
OTHERS
Canned Fruit
Dairy Product
Other Beverages
First Choice Farmer
Chokchai Farm
TurBusta Maxx
(RTD Coffee)
Malee
Light
Malee Brand Portfolio
8
UHT Pasteurize
Malee
i-Corn
Malee Group Public Company Limited
Milk Tablet
Fizza Salty
Lemon
(Carbonated)
Others
9Malee Group Public Company Limited | CONFIDENTIAL
New Products Highlights: High-end Product
9Malee Group Public Company Limited
10Malee Group Public Company Limited | CONFIDENTIAL
New Product Highlights: Mass Product
10Malee Group Public Company Limited
11Malee Group Public Company Limited | CONFIDENTIAL
New Products Highlights: DR.DRINK from Mega Malee
11Malee Group Public Company Limited
12Malee Group Public Company Limited | CONFIDENTIAL
Hair Care Products
New Products Highlights: Personal Care Products from Malee Kino
12Malee Group Public Company Limited
Facial Cleanser Products
Oral Care Products
13Malee Group Public Company Limited | CONFIDENTIAL
Subsidiary/Joint Venture Portfolio
13Malee Group Public Company Limited
LQSF(Vietnam)
MAS(Thailand)
MMBC(Philippines)
Mega Malee(Thailand)
Food and Beverages – to be launched in Q1/2019
Kino Malee(Indonesia)
Malee Kino (Thailand)
14Malee Group Public Company Limited | CONFIDENTIAL
Company Overview
Business Update
Results of Operations and Profitability
Forward Looking
14
AGENDA
Malee Group Public Company Limited
15Malee Group Public Company Limited | CONFIDENTIAL
Domestic Beverage Market: MAT September 2018
Demand loss remained the key issue across categories. Additionally, tax increase put pressure on consumption and limited category growth. However, value-added products continued to perform well and helped to ease loss.2-Panel Chart
Value-added trend of
Pasteurized Milk (Lactose free)
and Less sweet offset loss from
demand issues of Soy Milk and
UHT milk.
Higher price according
to sugar tax and tea tax
resulted in volume
decline. However,
Healthy brands (Less
Sweet/ No sugar)
performed well.
Demand loss
across key brands,
while positive trend
of herbal brands
was observed
Demand loss
esp. in casual
healthy drink.
Demand loss across
segments.
Increasing
price across key
brands
according to
sugar tax
impacted on
consumption
leakage.
No Sugar flavors and
Sugar Free continued
to expand. Meanwhile,
regular flavors were
stagnant
Heavy promotion on big
packs was a source of
growth across key brands.
Source: Nielsen
Beverage – Sort by Category Size (Value) Major brands expanded
distribution in CVS.
Beverage – Sort by Category Size (Volume)
16Malee Group Public Company Limited | CONFIDENTIAL
Domestic RTD Fruit Juice Market
16
Source: Nielsen
MAT Sep 2018 Market Value of 11,721MB, a Decrease of 10% YoY
Malee Group Public Company Limited
Premium Market (100% RTD Fruit
Juice) 4,232MB
36%
Medium Market (40-99% RTD Fruit
Juice), 1,100MB, 9%
Economy Market (20-39% RTD Fruit
Juice)2,521MB
22%
Super Economy Market (<19% RTD
Fruit Juice) 2,094MB
18%
Others1,775MB
15%
(-14% YoY)
(-10% YoY)
(-11% YoY)
(-5% YoY)
(-5% YoY)
17Malee Group Public Company Limited | CONFIDENTIAL
Domestic RTD Premium Fruit Juice UHT Market Share
17
MAT Sep 2018 Market Value of 3,939MB, a Decrease of 15% YoY
Tipco28%
Malee 20%
Unif12%
Doi Kham21%
Cocomax8%
Others11%
MAT Jun 2017 MAT Jun 2018
Source: Nielsen
Malee Group Public Company Limited
Tipco29%
Malee 20%Unif
13%
Doi Kham19%
Cocomax8%
Others11%
18Malee Group Public Company Limited | CONFIDENTIAL
52% 45% 46% 49%59%
47% 53%
48% 55% 54% 51%41%
53% 47%
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
CMG
Brand
Sales Structure
18
CMG: Contract Manufacturing
Domestic : International Business Brand : Contract Manufacturing
Domestic Sales
Q3/2018 : -20% YoY
9M/2018: -2% YoY
Export Sales
Q3/2018 : -18% YoY
9M/2018: -27% YoY
Malee Group Public Company Limited
Brand Sales
Q3/2018 : -4% YoY
9M/2018: +0.5% YoY
CMG Sales
Q3/2018 : -35% YoY
9M/2018: -21% YoY
72%61% 64% 69% 68% 62% 68%
28%39% 36% 31% 32% 38% 32%
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
Export
Domestic
19Malee Group Public Company Limited | CONFIDENTIAL
9M/2018 Export Branded Sales by Country
19
• 9M/2018 Export branded expanded
c.20% YoY due to sales recognition
from LQSF, a new subsidiary in
Vietnam.
• If excluding LQSF, 9M/2018 Export
branded would drop c.20% YoY,
mainly due to flood and sub-
distributor changeover in Cambodia,
weak sales in China, expired coconut
water sales last year, and strong Thai
baht compared to the Company’s
major export markets.
Malee Group Public Company Limited
Cambodia26%
China12%
Philippines3%
Hong Kong6%Myanmar
5%
Vietnam (LQSF)
33%
Others15%
20Malee Group Public Company Limited | CONFIDENTIAL
Company Overview
Business Update
Results of Operations and Profitability
Forward Looking
20
AGENDA
Malee Group Public Company Limited
21Malee Group Public Company Limited | CONFIDENTIAL
331
530
286
78
(124)
257
(129)
(130)
(30)
70
170
270
370
470
570
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
Net Profit
Unit: Million Baht -260%
YoY
-150%
YoY Q3/2018 Net profit dropped mainly due to 1) sales decrease; 2) higher cost per unit
as a result of lower utilization rate; 3) higher depreciation; 4) higher excise tax and
sugar tax following the Excise Act, B.E. 2560; 5) higher selling expenses from
multiple new products launch; 6) sales compensation for branded products; 7)
higher R&D expense; 8) higher audit fees and consultant fees from new
businesses establishment; and 9) higher finance costs due to higher borrowings as
a result of previous investments in machinery, subsidiaries, and joint ventures.
In Q3/2018, Domestic branded sales dropped c.15% YoY, mainly due to the drop in
fruit juice sales following the slowdown in fruit juice market, plus high sales base
last year resulted from new packaging launched.
Domestic CMG decreased c.25% YoY, mainly due to higher excise tax and sugar
tax as well as high sales base last year.
Export branded sales grew by c.40% YoY, mainly resulted from LQSF
consolidation. If excluding LQSF, sales would drop c.20% mainly due to flood in
Cambodia causing transportation difficulty, weak sales in China, and strong Thai
baht compared to the Company’s major export markets.
Export CMG sales dropped c.50% YoY, due to a customer ending the distribution
contract with some retailer and Thai Baht strengthening.
Financial Highlights
21Malee Group Public Company Limited
5,389
6,5415,916
1,500 1,205
4,3843,892
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
Sales Revenue
Unit: Million Baht
-11%
YoY-20%
YoY
22Malee Group Public Company Limited | CONFIDENTIAL
6.1% 8.1%4.8% 5.1%
(10.2%)
5.8%
(3.3%)
-12.0%
-7.0%
-2.0%
3.0%
8.0%
13.0%
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
%Net Profit Margin
31.4% 32.2% 28.7% 29.7%20.7%
29.6%23.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
%Gross Profit Margin
Profitability Margin
22
Lower Q3/2018 %GPM YoY was mainly due to 1) higher cost per unit
as a result of lower utilization rate; 2) higher depreciation; and 3)
higher excise tax and sugar tax following the Excise Act, B.E. 2560.
Higher Q3/2018 selling expenses to sales YoY was mainly due to
multiple new products launch, sales compensation for branded
products, and selling expenses recognition from LQSF which recorded
selling expenses to sales of 34.7%.
Higher Q3/2018 administrative expenses to sales YoY was mainly due
lower sales but higher R&D expense as well as higher audit fees and
consultant fees from new businesses establishment.
Lower Q3/2018 %NPM YoY was mainly due to the same reasons as
lower net profit.
Malee Group Public Company Limited
17.4% 14.4% 14.8% 15.7%22.2%
14.5% 17.5%
7.0%7.1% 8.8% 7.7%
11.2%
8.6%10.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2015 2016 2017 Q3/17 Q3/18 9M/17 9M/18
%SG&A to Sales
%Admin/Sales
%Selling/Sales
23Malee Group Public Company Limited | CONFIDENTIAL
Statements of Financial Position
23
Higher total assets were mainly due to LQSF’s assets
recognition of 256MB whose major assets were PPE of
169MB. In addition, the Company recognized goodwill
from acquiring LQSF of 244MB.
Higher liabilities were mainly due to an increase in loans
from financial institutions for the Company’s investments
and working capital as well as LQSF’s liabilities
recognition of Baht 158MB.
Decreased equity of parent Company's shareholders
mainly was due to 1) consolidated operating loss during
the first half of the year of 129MB; 2) transaction of
treasury shares from shareholders’ equity for financial
management of 114MB; and 3) dividend payment for the
second half of last year’s operating results 69MB.
Malee Group Public Company Limited
3,0423,640
4,390 4,567
0.0%50000.0%
100000.0%150000.0%200000.0%250000.0%300000.0%350000.0%400000.0%450000.0%500000.0%
2015 2016 2017 Q3/18
Total Assets
Unit: Million Baht
1,788 2,0612,778
3,226
0.0%
50000.0%
100000.0%
150000.0%
200000.0%
250000.0%
300000.0%
350000.0%
2015 2016 2017 Q3/18
Total Liabilities
Unit: Million Baht
1,2501,575 1,612
1,295
0.0%20000.0%40000.0%60000.0%80000.0%
100000.0%120000.0%140000.0%160000.0%180000.0%
2015 2016 2017 Q3/18
EquityUnit: Million Baht
24Malee Group Public Company Limited | CONFIDENTIAL
Lower current ratio and quick ratio was mainly due to a decrease in trade
receivables and inventories but an increase in short-term loans for the use
of the Company’s working capital as well as higher current portion of long-
term and investments from the Company’s investments.
Increased IBD/E was mainly due to an increase in loans as well as LQSF’s
loans recognition of 96MB. Meanwhile, shareholders’ equity decreased
from consolidated loss during the first nine months of the year of 129MB,
shares buyback of 114MB, and dividend payment 69MB.
Increased D/E was the same reason as higher IBD/E, plus LQSF’s total
liabilities recognition of 158MB.
Liquidity
24
Higher cash cycle days was mainly due to longer Inventory days and
collection days.
Longer inventory days was mainly due to a new crop season for canned
fruit production.
Longer collection days was mainly due to higher portion of branded sales
whose trade terms are longer than CMG sales.
Improved payment days was mainly due to higher portion of long credit
term suppliers .
Malee Group Public Company Limited
1.13
0.95 0.910.79
0.66
0.50 0.460.38
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
110.0%
120.0%
2015 2016 2017 Q3/18
CurrentRatio (x)
QuickRatio (x)
0.68 0.751.13
1.901.43 1.311.72
2.49
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
350.0%
400.0%
450.0%
500.0%
2015 2016 2017 Q3/18
D/E (x)
IBD/E (x)
43 32 34 36
5745 47 49
7664 80 88
9077
93 101
0.0%
5000.0%
10000.0%
15000.0%
20000.0%
25000.0%
30000.0%
2015 2016 2017 Q3/18
Cash Cycle Days
Avg. Inventory Days
Avg. Collection Days
Avg. Payment Days
25Malee Group Public Company Limited | CONFIDENTIAL
Return to Shareholders
25
The Company has a policy to pay dividends at the rate of
not less than 50% of its net profit from normal operation,
according to consolidated financial statements after
deduction of tax revenue and legal reserve. However,
actual payments will depend on cash flows and investment
plans of the Company’s and its affiliates as well as other
necessities as the Board of Directors deems appropriate.
No dividend payment for the operating results during 1
January – June 2018 due to the Company’s operating
losses.
Unit: Baht
Lower ROA was resulted from operating loss during the
first 9 months of this year.
Lower ROE was mainly due to operating losses during the
first 9 months of this year as earlier explained.
Malee Group Public Company Limited
0.7500.525 0.555 0.600
0.950
0.550
0.0000.0%
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 H1/2018
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
14.8%20.4%
8.8%
(2.8%)-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2015 2016 2017 9M/2018
ROA
29.3%37.5%
17.9%
(7.0%)-10.0%-5.0%0.0%5.0%
10.0%15.0%20.0%25.0%30.0%35.0%40.0%
2015 2016 2017 9M/2018
ROE
26Malee Group Public Company Limited | CONFIDENTIAL
Company Overview
Business Update
Results of Operations and Profitability
Forward Looking
26
AGENDA
Malee Group Public Company Limited
27Malee Group Public Company Limited | CONFIDENTIAL
Forward Looking
27Malee Group Public Company Limited
Operating results to remain under pressure in Q4 but should improve QoQ
Turnaround in 2019 with target sales growth of 5-10% driven by:
Continuation of the current product roll-out
Product portfolio renovations
New product development
New sales business model
Securing new customers
Our turnaround strategies:
Growing production volume
Intensified cost reduction measures
Cash flow management
No investments/ focus on the businesses we have built.
28Malee Group Public Company Limited | CONFIDENTIAL
Share Endorsements
28
“Very Good” Level of CG Scoring
Malee Group Public Company Limited
Thank You
For more information, please visit our website at http://www.malee.co.thor contact us at [email protected]. Tel: +66 2080 7899 Ext 1137