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Opportunity Day ICHITAN Group Public Co., Ltd.
Q2/2015
Financial Results & Position1
2
Contents
Investment Highlights3
2
Business Information
Bireley's4
5 Ichitan Indonesia
3
Sale Revenue & Net Profit
2,063
1,3601,259
1,850
2,106
407266
145
316 325
0
500
1,000
1,500
2,000
2,500
Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015
Sale Revenue Net Profit
2.1 % YoY
-20.0 % YoY
MB.13.8 % QoQ
2.8 % QoQ
4
Sale Revenue & Net Profit
6,4846,179
3,5603,956
884 1,079
609 642
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY 2013 FY 2014 1H2014 1H2015
Sale Revenue Net Profit
MB.Net Profit Margin (%)2013 = 14%2014 = 17%1H2015 = 16%
Gross Profit Margin (%)2013 = 32%2014 = 34%1H2015 = 38%
4,425 4,065
950 1,373 1,176 1,293
-
1,000
2,000
3,000
4,000
5,000
2013 2014 Q1/2014 Q2/2014 Q1/2015 Q2/2015
Total Expenses
5
931 774
270 219 294
410
-
200
400
600
800
1,000
2013 2014 Q1/2014 Q2/2014 Q1/2015 Q2/2015
COGSSelling expenses
Administrative expenses
130
250
34 42 32 43
-
100
200
300
2013 2014 Q1/2014 Q2/2014 Q1/2015 Q2/2015
SG&A (%)2013 = 16%2014 = 17%1H2015 = 20%
13% 66%
4%
14%68%
2%
16%19%
64% 61%
2% 2%
Financial Ratios
6
ROE (%)
67%
26% 19% 18%
2013 2014 Q1/2015 Q2/2015
ROA (%)
D/E Ratio (Times)
1.90 1.20
0.50 0.50 0.50
2012 2013 2014 Q1/2015 Q2/2015
15% 14% 13%12%
2013 2014 Q1/2015 Q2/2015
Financial Results & Position
Business Information2
7
Contents
Investment Highlights3
1
4 Bireley's
5 Ichitan Indonesia
Quality
Effectiveness
Giving back to Society
To be a leader in beverage business with both quality and innovation that grows along with
the society
Pursuit of achieving higher quality and more innovative product
Implementing new technologies to assist production and reduce time
Marketing strategy through actions of giving back to the society
Goals in Operating Business
8
7,798
9,481
13,177
16,14315,405
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2010 2011 2012 2013 2014
Growth prospect in the RTD tea marketRTD tea Market Share 2014
RTD tea market value 2014 is 15,405 million Baht.
RTD tea market CAGR 20.39% in between 2010-2014
Source: Retail Index Nielsen July 2015
9
Market value of RTD tea in Thailand
Mio. THB
RTD tea Market Share 1H2015
46.0%
36.0%
5.7%3%9%Oishi
Puriku Lipton
Others
#18,438
Mio. THB
43.8%
37.7%
7.5% 4%7%Oishi
Puriku Lipton
Others
#115,405
Mio. THB
400
600
1000 1000
200 200 200 200OEM
OEM
OEM
OEM
75 45
200
200
0
200
400
600
800
1,000
1,200
1,400
Y.2011 Y.2012 Y.2013 Y.2014 Y.2015 F Y.2011 Y.2012 Y.2013 Y.2014 Y.2015
Future Plan
9%
OEM 5.3%
Increasing production capacity to 1,000 Bottles/yearPET Production (Million Bottles/year) UHT Production(Million Brik/year)
MAR – SEP12 +1 MAR13 +1APR 14 APR JUL 12
10
OEM ratio has tendency to decrease continuously in the future after increasing production capacity in phase 2
2 2Production Line 3 5 2 2
+1 Y.2015
6
100%
47%
25%
45% 3%
(Capex =750 MB.)In April 2015
+1SEP 14
2
Continuous development of product
11
2011
Double Drink 420 ml.2 Flavor
ICHITAN Green Tea 420 ml.3 flavor
ICHITAN Green Tea (420 ml.) 3 flavor
Double Drink (420 ml.) 1 flavor
2012
ICHITAN Green Tea UHT 4 flavor ICHITAN Green Tea (840 ml.) 3 flavor
(420 ml.) 1 flavor
UHT2 flavor Dragon Black Tea (420 ml.)
2 flavorDouble Drink (420 ml.)
1 flavor
2013
Yen Yen Herbal TeaPET 400 ml. and UHT
ICHITAN Green Tea (420 ml.)1 flavor
2014
Yen Yen Herbal Tea240 ml.
ICHITAN Selected (450 ml.)2 flavor Yen Yen Herbal Tea
800 ml.
Yen Yen Chrysanthemum& HoneyPET 400 ml. , 800 ml. and UHT
ICHITAN Green Tea (420 ml.)1 flavor
2015
Bireley’s 290 ml. ICHITAN Green Tea (Genmai) 290 ml.
UHT Lychee Green Tea Lychee (800 ml,)
Yen Yen Herbal Tea315 ml.
55.72%
43.98%
Retail Channel and Distribution Channel
1) Modern Trade
2) Traditional Trade
IGT TT Retail that DKSH could not reach
Wholesaler network and partner of Singha nation wide
Thailand (99.7%)
Export (0.30%) o AEC Laos, Cambodia, Burma
Take note: % from total sales of beverage12
2014
Proportion of Income by Distribution Channels
13
Y2014
Modern Tarde, 54.79%
Traditional Trade, 44.72%
Export, 0.49%
3,955.5Million Baht
1H2015
Modern Tarde, 55.72%
Traditional Trade, 43.98%
Export, 0.30%
6,179.1Million Baht
Executive Summary
14
• 2015 Target Revenue 7,500 MB. Growth 21%
Bireley’s : 600 MB.
Export : 280 MB.
OEM : 120 MB.
Contents
Investment Highlights3
1
2
15
Business Information
Financial Results & Position
4 Bireley's
5 Ichitan Indonesia
Investment Highlights
4. Effective control on cost and expense resulting in continuing profit rate.
7. Got exempt from tax as according to BOI Phase1 for 8 years (March 2012 to February 2020)
1. The management team with long experience in building RTD tea market.
2. Step to the leader position with the leading brand strategy by using innovative marketing tools that is effective without negative consequence to the outcome.
5. Expecting the increase of profit resulting from the decreasing of OEM proportion on production after increase own production capacity from 1,000 millions bottles to 1,200 millions bottles per year.
3. Continued growth on both income and profit.
6. High return on investment with 17% net profit in 2014 and with the dividend policy no less than 40%
16
Contents
Investment Highlights
4
1
2
17
Business Information
Financial Results & Position
3
Bireley's
5 Ichitan Indonesia
19
- The company paid only 80 million baht for lifetime ownership of Bireley's trademark in Thailand
- and another 10 million baht for each 15 other market. There are Cambodia, South Korea, Canada, Myanmar, Philippines, Malaysia, Singapore, United States of America, China, India, Hong Kong, Bangladesh, Indonesia, Taiwan and Vietnam.
- Another 10 million baht for the right of beverage recipe.
Bireley’s
Contents
Investment Highlights
5
1
2
21
Business Information
Financial Results & Position
3
Bireley's4
Ichitan Indonesia
22
PT. Atri Pasifik50%
ICHITAN50%
ICHITAN Indonesia
PT. Sigmantara Alfindo60%
Mitsubishi Corporation 40%
INDONESIA MARKET OVERVIEW
JKT
Sumatra21.1%
Java53.8%
Borneo5.7% Sulawesi 7.3%
Lesser Sunda 5.4%
Maluku 5.3%
WesternNew Guinea
253,899,5364th Rank of World Population1st Rank of ASEAN Population