Opportunity Day - Stock Exchange of Thailand · Marketing and Distribution with the network in all...

Opportunity DayMay 31st , 2019

Agenda

• Company Overview

• Strategy and Road Map

• Financial Highlight

• Q&A

Moong Pattana International PCL.

A consumer product company

MOONG established in 29 January 1981 as thedistributor of household products.

Our core competency:Marketing and Distribution with the network in allchannels nationwide. We are in FMCG industry, focusin key 4 categories.

Key Development

Established Moong Pattana Marketing Co., Ltd. Registered

capital THB 10 M

1981 1988 1990 1994 1996 2008-9 2015 2016-19

Establish Thai Pigeon Co., Ltd., (JV with Pigeon Corp. Japan) mainly product nipple

& nurser

Establish Yoshino Moong Pattana (Thailand) co., ltd., paid-up capital THB 300 M to produce plastic packaging for consumer products (JV with YKC)

Establish Pigeon Industry (Thailand)

co., ltd., (JV with Pigeon Corp. Japan) to

produce baby wipes and breast pad

Change name to Moong Pattana

International PCL and increased capital to THB 90M to THB 120M

and paid-up capital from IPO

Change registered capital to THB 222MB, paid-up capital THB

168 M

Increased register capital to THB 200M

by RO, Warrant, ESOP and PP to finance

working capital and investment

Granted Pigeon Trademark license from Japan to be sole distributor of Pigeon in

Thailand

Continue Growing ImpressivelyAlmost triple growth +243%

2010 2018

Total Revenues 421 MB 1,021 MB

No. of Brand 10 23

No. of DistributionChannel

2General trade &

Department store

5General trade, Modern trade,

Food service, Export, E-commerce

Warehouse area 1,872 sq. 2,784 sq.

Registered &Paid up Capital

90 / 90 MB 170 / 168 MB

Our Vision, Mission & Core Value“Striving for excellence in products and service with

business ethic and integrity of business operation, fulfilling customer and investor expectations whilst achieving utmost relationship with business partners”

Vision

1. Become an organization with outstanding profitability who earns trust from consumers, business partners, and investors

2. Become an organization with good relationships with business partners and promoting mutual and long lasting growth

3. Become an organization with human resources as priority, emphasizing on skills and knowledge development including wellness and quality of life of employees

4. Become an organization with reiteration of corporate governance, business ethics, and social responsibilities

5. Become an organization with reputation as a professional trading company and distributor

Mission

Core Value

Operation Excellence Partnership Employee Customer Centric

Company Core Businesses

4 Key Categories Focus

Baby & Mom

• Breastfeeding support• Mother care/BBW• Baby development• Oral care• Baby Toiletries

Food and Beverage• Milk tablet• Healthy Jam• Healthy snack

Personal Care• Cotton• Adult wipe• Oral Care (TB and Herbal

Toothpaste)• Toiletries

Senior Product • Diaper and wipe

Own Brand PortfolioPersonal Care & Household

New

Distributor BusinessPrincipal’s Brand Portfolio

Baby & Mom Personal care & Household

Senior

Food & Beverage

Joint Venture ExpertiseBeyond trade partnership to joint venture

A joint venture with Pigeon Corporation, Japan, to manufacture

nursers, nipples, training cups and other baby accessories

Thai Pigeon Co., Ltd. (47%)

Pigeon Industries (Thailand) Co, Ltd. (2.5%)

Established as a BOI promoted company to

manufacture Breast pads & Baby wipes

A joint venture among Yoshino Kogyosho Co.,Ltd.-

Japan, Nomura Jimusho, Inc.-Japan and MPI with the

state of the art production for plastic packaging.

Yoshino Moong Pattana (Thailand) Co.,Ltd. (6%)

Channel & CoverageChannel and coverages are cover all area of Thailand and plan to

expanding to CLMV

Modern trade

53%•Hyper Market

•Department store

•CVS

•Supermarket

•G-store

General trade

41%•Wholesales/Retails

•Cash van

•Pre-order sales

Others

6%

•Food service solution

•Event sales

•Export

•E-commerce

Laos market contribute 2%Growth 196% from 2018

ABOUT MARKET

12.9%14.4% 14.8%

21.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Cotton Market by segment (% Growth)

TotalCotton

Beauty Cotton Pads

CottonPads

CottonPleated

Source: Nielsen, MAT TY (Mar, 19)

Cotton market Total market keep growing-mostly from Cotton Pleated

Total V care Market Value share maintain at 3.5%. However, AVG Sales Value lift up 6% (MAT vs. Y18)

#1 #2 #3 #4 #6

Source: Nielsen, MAT TY (Mar, 19)

Adult Wipes Market Keep Growing both value and volume

Volume Value

V care Adult Wipes perform well continuously – up to Rank No. 5 with 1% value share increased.

Val.+12%

Vol.+10%

PIGEON is market leader who grow categorywith product Premiumization

-8%

2%

-6%

VOLUME GROWTH (%)

-6%

6%

-1%

VALUE GROWTH (%)

Source : Nielsen Retail Index, March 2019

FEEDING MARKET

PIGEON

OTHERS BRAND

PIGEON STRONG MARKET SHARE IN FEEDING

34

26

49

36

30

48

41.038.0

50.0

4239

51

0

10

20

30

40

50

TOTAL FEEDING BOTTLE NIPPLE

MARKET SHARE (%)

2016 2017 2018 Q1/19

Source : Nielsen Retail Index March 2019

Pigeon New Product : Q1-2019

New Packaging PPWN

Milk Saver Pump

Disposable Baby Bib

Teeth Cleaning Wipes

Strawberry

Pigeon Sakura Skincare Range Giftset

Pigeon Special Giftsetfor Newborn

New Product : Q2-2019

Pigeon Laos started to build consumer engagement,Successful with participant 1,700 moms in 2weeks

started Sampling activities to create engagementWith Laos Consumer and get very well feedback and participations There are more than 1,500 moms joined campaign and share more than1,700 shares

Laos marketGrowth 196% from 2018

• Expansion of distribution in CVS -> coverage increase to 10,000 stores• New channel expansion -> Airline, drug store chain, beauty shop &

On-line i.e.

Successfully Launch New distribution channels

Agenda

• Corporate Overview

• Strategy and Road Map

• Financial Highlight

• Q&A

BUSINESS STRATEGY

Key Strategic Goal

Competitive Advantage•Trading expertise and channel management•Joint venture and partnership

Operation Excellence•Effective cost management •Customer satisfaction•Productivity Growth Engine

•Own brand diversification•M&A•Distributor business/ FoodService

Broaden business base from Baby & mom to diversify FMCG categories brand marketing and distribution

Diversify FMCG

categories

Competitive Advantage

Growth Engine

Operation Excellence

MOVING FORWARD AND PRIORITY

3 Years Growth Development PlanExisting Products New Products

Existing

Markets

New

Markets

Market Penetration

• Current products portfolio and

market coverage

• Focus the market share gain or

protect leadership

Product Development *****

• Milk Tablet/Healthy snack

• Breastfeeding support

• Sr. care products

• Foodservices products

Market Development ****

• CLMV/International markets

• CVS/Drug/Health and Wellness

distribution

• Digital/FoodServices

(Diversification) *****

M&A

Q1-Breastfeeding support & baby care product

-Own brand: Milk tablet

-FoodServicesproducts

Q2

-Baby and mom-Oral care-FoodServicesproducts-Healthy snack

Q3

-Baby and mom-Healthy drink-Food and beverage-FoodServicesproducts

Q4-New categories

-Sr. products

2019 Source of Growth

New market (CVS, Drug store, Digital, FSS, Health & wellness, CLMV & international)M&A

Agenda

• Corporate Overview

• Strategy and Road Map

• Financial Highlight

• Q&A

Categories Growth Q1/2019

Senior

Food & Beverage

Personal care & Household

Baby & Mom

*Base for future growth opportunities

Q1/2019 Q1/2018

+2%

+15%

+35%

+158%

Revenue Breakdown

30

+25%

Q1/2019 vs. Q1/2018:Total revenue growth 25% because of revenue from sales growth 5% from last year and the other incomes growth 138% which mainly from profit from selling investment property

+138%

+5%

+16%

+61%

+11%

Performance Highlight

31

Financial Ratio

Liquidity

Returns

Dividend Yield

34

CEO

Suwanna Chokdee-anand

suwanna@moongpattana.com

IRO

Sasithon Lersumitkul

sasithon@moongpattana.com

Tel. +66 2020 8999 #150

35

CFO

Kingkarn Tiyaprasertkul

kingkarn@moongpattana.com

36