Fraser and Neave : (8.32mb)

FY2024 FIRST HALF YEAR

FINANCIAL RESULTS BRIEFING

Important Notice

Certain statements in this Presentation constitute "forward-looking statements", including forward-looking financial information. Such forward looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fraser & Neave Holdings Bhd ("F&NHB"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and financial information. Such forward-looking statements and financial information are based on numerous assumptions regarding F&NHB's present and future business strategies and the environment in which F&NHB will operate in the future. Because these statements and financial information reflect F&NHB's current views concerning future events, these statements and financial information necessarily involve risks, uncertainties and assumptions. Actual future performance could differ materially from these forward-looking statements and financial information.

F&NHB expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or financial information contained in this Presentation to reflect any change in F&NHB's expectations with regard there to or any change in events, conditions or circumstances on which any such statement or information is based, subject to compliance with all applicable laws and regulations and/or the Bursa Malaysia Securities Berhad Listing Requirements and/or any other regulatory or supervisory body or agency.

This Presentation includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as market research, publicly available information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. While F&NHB has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, F&NHB has not independently verified any of the data from third party sources or ascertained the underlying economic assumptions relied upon therein.

1H FY2024 F&NHB Group Financial Highlights

Overall improved Group performance driven by effective sales execution during festive seasons

and early sell-in for Hari Raya, as well as higher export and net favourable input costs.

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1H FY2024 F&NHB Group Financial Performance

Strong 1H performance driven by robust festive sales and better margin

* Adjusted +60.9%

* Adjusted	* Adjusted
+56.8%	+65.2%

• Excluding one-offnon-operating items i.e. fair value gain on remeasurement of Cocoaland recognised in 1H FY2023 (RM89.3m), insurance claim received (1H FY2024: RM4.2m,
  1H FY2023: RM5.0m), flood related expenses and restructuring & relocation expenses.

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F&B Malaysia

High revenue and operating profit

• driven by festive sales, early sell-in for Hari Raya and improvement in margins

1H FY2024 v 1H FY2023

* Adjusted		* Adjusted
+20.7%		+93.8%

• Revenue +9.1%
• • Improvement in festive sales;
  • Early sell-in for Hari Raya compared to previous year;
  • Higher exports
  • Contribution from the food pillar, mainly gummy and chocolate segments;
  • Notable volume growth in beverages, dairies and water products; and
  • Improved export performance following growth in ASEAN, Greater China and MENA regions

• Adjusted +51.6%

• Operating profit +48.5% (*Adjusted operating profit +51.6%)
• • Higher revenue;
  • Better margin from lower input costs (except sugar, rice, gelatine and cocoa powder);
  • Improved contribution from exports - better region/product mix; offset by
  • Higher A&P spending and brand investment activities and consumer campaigns.

• Excluding one-offnon-operating items i.e. insurance claim received (1H FY2024: RM4.2m,
  1H FY2023: RM5.0m), flood related expenses and restructuring & relocation expenses.

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F&B Thailand

* Adjusted	* Adjusted
+50.0%
+85.1%
(+46.2% in
(+74.6% in
THB)
THB)

Maintained its market leadership in the sweetened condensed milk and evaporated milk categories

1H FY2024 v 1H FY2023

• Revenue +13.0% (+8.4% in THB)
• • Successful launch of new product pack size in Q1 FY24 and successful campaigns/loyalty programmes;
  • Higher exports to Indochina and other countries
  • Aided by favourable forex translation gain from stronger Thai Baht.

• Operating profit +66.3% (+59.5% in THB)
• • Higher revenue;
  • Improvement in margin;
  • Favourable commodity prices (except sugar & fresh milk);
  • Savings from logistics; offset by
  • Higher A&P spending and brand investment activities and consumer campaigns.

• Excluding one-offnon-operating items i.e. impairment/reversal of impairment of property, plant and equipment

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Proposed Interim Dividend of 30 sen/share, up 3 sen (2023 : 27 sen/share)

			Full Year
			FY 23
Total equity	Note 1	3,343.2
(RM'mil)
Total assets		5,111.6
(RM'mil)
Total debt	Note 2	767.9
(RM'mil)
Cash & cash equivalents	1,031.5
(RM'mil)
Net assets per share	9.1
(RM)
Gearing ratio	23.0%
(%)

Note:

1. Total equity exclude non-controlling interest
2. Total debt comprise borrowings and lease liabilities

1H FY 24	Change
3,505.5	4.9%
5,438.4	6.4%

766.3 -0.2%

1,067.7

3.5%

9.6 0.44

21.9%

-1.1 p.p

• Directors recommend an interim single tier dividend of 30.0 sen per share (2023: 27.0 sen per share), bringing total payout of RM110.0m (2023: RM99.0m)
• • Entitlement date: 16 May 2024
  • Payment date: 31 May 2024
• Takes into account the Group's capital position, working capital requirements and capital expenditure investments.
• Dividend payout ratio of 33.0% (2023: 33.0%).
  Normalised* dividend payout ratio: 33.0% (2023: 48.0%)
• • Adjusted for one-offnon-operating items i.e. fair value gain on remeasurement of Cocoaland recognised in 1H FY2023 (RM89.3m), insurance claim received (1H FY2024: RM4.2m, 1H FY2023: RM5.0m), flood related expenses, and etc.

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HALF YEAR HIGHLIGHTS

FESTIVE CAMPAIGNS

100PLUS CNY Festive Campaign