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A Leading F&B Group in Asia Pacific Pokka Corporation Singapore Limited

Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Page 1: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

A Leading F&B Group in Asia Pacific

Pokka Corporation Singapore Limited

Page 2: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Leading F&B Group in Asia Pacific

Restaurant Operations in AsiaRestaurant Operations in Asia

17 years of operating experience

Operate a chain of 27 restaurants and food outlets

Wide array of restaurant concepts for a broad spectrum of consumers

Strategically located outlets in Hong Kong, Singapore and Macau

30 years of operating history

Focus on Ready-To-Drink (RTD) Non-Alcoholic Beverage market

Established “POKKA” brand – Top performer in Singapore’s RTD Green Tea

Extensive sales network covering over 50 countries in Asia, Europe and theMiddle East

Advanced manufacturing facilities for high quality beverages

Beverage Manufacturer with Global PresenceBeverage Manufacturer with Global Presence

Page 3: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the
Page 4: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Market Leader in Singapore’sBeverage Industry

Strong brand awareness

Competes mainly in the RTD andJuices segments

Leader in the RTD segment

More than 45%* market share of RTDTea

Among the top 5 brands in the juices

category

Flagship beverage – Carrot Fruit Juice

*Based on Group’s internal estimates

Primed to benefit from trend toward healthier beveragesPrimed to benefit from trend toward healthier beverages

Page 5: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Extensive Market Channels in Singapore

IslandIsland--Wide Market PenetrationWide Market Penetration

Major Retailers

• Direct sales to supermarkets, convenience stores and petrol chains

• Attained Captainship for category management of non-alcoholicbeverages in outlets of major supermarkets and petrol chains

Vending Machines

• Strategically placed at shopping centres, offices, factories and bus-stops

• Enhance direct distribution capabilities

Other Retail Channels

• Comprehensive coverage of F&B outlets and provision shops

• Distribution through a joint-venture company to reapeconomies of scale

Page 6: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Rising Brand Awareness inOverseas Markets

One of the earliest Singapore-based beveragemanufacturers to enter the overseas markets

Beverage exports accounted for around 30%30% ofGroup revenue in FY2008

EU certified

First local beverage company to exportdairy-based beverages to the EU

Overseas market penetration strategy:

Partner local distributors with establishedsales channels

Joint marketing and promotional activitiesto drive brand visibility and sales

Market Presence in over 50 countriesMarket Presence in over 50 countries

Guinness World Records :Largest inflatable sculpture

Marketing campaign withMiddle East distributor NTDE

Page 7: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Strong Manufacturing and R&DCapabilities

Continual investments in state-of-the-art production facilities

Pioneer in Aseptic PET Bottle Filling System

Supports product innovation

Optimises production efficiencies

Continual focus on enhancing capability and efficiencyContinual focus on enhancing capability and efficiency

Qualified R&D personnel

Food technologist from Japan

New product roll-out fordifferent markets

Production capacity of AsepticPET line increased by 30% inFY2008

Page 8: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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First local beverage manufacturer to be awarded the BRC Global Standardcertification

One of the most stringent industry qualifications

Enables product listings in major hypermarts in the UK and Europe

Superior Product Quality

Attained numerous food quality and safety certifications

ISO 9001:2000

HACCP

ISO 22000:2005

BRC Grade‘A’

EC-approvedEstablishment

Page 9: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

Pokka CaféTelford Plaza, Kowloon Bay, Hong Kong

TonkichiCanton Road, Tsim Sha Tsui, Hong Kong

Page 10: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Flagship Restaurant Brand -‘Pokka Café’

Pokka CaféGrand Century Place, MongkokHong Kong Pokka Café

Grand Tower, MongkokHong Kong

13 Pokka Café in Hong Kong and Macau

Launched first ‘Pokka Café’ in Hong Kong1991

Page 11: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Specialty Japanese Cuisine - Tonkichi

3 in Singapore, 2 in Hong Kong

1991 1992

TonkichiCanton Road,

Tsim Sha Tsui,Hong Kong

TonkichiTakashimaya,Singapore

Launched first ‘Tonkichi’ in Singapore

Pokka Café

Page 12: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Steady Expansion of Portfolio

27 modern lifestyle restaurants and food outlets

9 distinctive brands

18 outlets in Hong Kong, 8 in Singapore and 1 in Macau

TonkichiPokka Café

1991 1992 Today

Variety of Attractive Brand Concepts to appeal to widerVariety of Attractive Brand Concepts to appeal to widerspectrum of consumersspectrum of consumers

Page 13: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Pasta CaféTakashimaya, Singapore

Variety of Attractive Brand Concepts

Buono Nuobo Pizza CaféKwun Tong Road,Kowloon, Hong Kong

Page 14: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Variety of Attractive Brand Concepts

Pokka Café Grill SpecialistNew Town Plaza, Shatin, Hong Kong

Rive GaucheTakashimaya/Plaza Singapura,

SingaporeSpecialty Desserts

Page 15: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Expertise in Restaurant Operations

Highly experienced management team

Secure attractive locations with high accessibility and human traffic

Track changing consumer tastes and lifestyle trends

Emphasis on quality food and customer service

Innovation in food, contemporary design andambience to maximise consumers’ experience

Central kitchen concept- standardised food quality- reap economies of scale

Page 16: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the
Page 17: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Financial Highlights

629.9%1.07.0Profit to Equity Holders

1.0(Includes special

dividend of 0.5 cents)

0.5- Final

17.8%31.6037.23NAV per share* (Cents)

629.9%

-

273.3%

-

157.2%

15.4%

Change

-

1.15

1.7%

2.5

3.2%

4.6

145.5

FY2007

5.7%Net Profit Margin

7.1%

9.4Net Profit

PBIT Margin

1.7(Special dividend)

Dividend per share* (Cents)

- Interim

8.38Earnings per share* (Cents)

167.9Total Revenue

11.9PBIT

FY2008(S$ mil)

For the financial year ended 31 January*Based on issued share capital of 84 million ordinary shares

Page 18: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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FY2008 Corporate Developments

Launched newrestaurant outlets

Introduced newbeverage products

Capital investments toenhance operational

efficiency

1 tea, 1 juice and 3 coffeebeverages in Singapore

3 new coffee and 1 teabeverage for export markets

S$0.5 mil to increase automation foraseptic PET line

S$1.7 mil to expand capacity ofHong Kong central kitchen

Beverage divisionawarded ISO22000

certification

New Pokka Café at Kowloon Bay

Launched new brand ‘Pokka Café Grill Specialist’ atShatin

Page 19: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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91 95 94

4548 51

113

53

0

20

40

60

80

100

120

140

160

180

Other revenue

Restaurant

Beverage

Group Revenue

BeverageRestaurant

FY2008 Total Revenue Breakdown

32% 67%

168146144137TotalRevenue

FY2008FY2007FY2006FY2005

S$ mil

21%

4%

Growth led by Beverage business

New products, increased market penetration, higher vending machine sales

Restaurant sales improved despite fewer operating outlets during FY2008

First doubleFirst double--digit revenue growth in 6 yearsdigit revenue growth in 6 years

Other Revenue1%

15%

Page 20: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Analysis by Geographical Market

FY2008 Revenue Breakdown

Singapore,Malaysia

Asia Pacific

EuropeAfrica 1%

MiddleEast

48%

33%

11% 7%

29.5%1.5Africa

13.2%

20.1%

6.7%

19.8%

Y-o-Ychange

11.8Europe

17.3Middle East

55.4Asia Pacific

80.1Singapore,Malaysia

Sales(S$ mil)

FY2008

Higher sales in Singapore onstrengthened market position

Strong growth in the Middle East andEurope due to higher marketpenetration of POKKA beverages

Sales growth across all key marketsSales growth across all key markets

Diversified revenue base withDiversified revenue base withmore than 50% of sales tomore than 50% of sales to

the overseas marketsthe overseas markets

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2.8

0.5 1.0

7.0

FY2005 FY2006 FY2007 FY2008

7.1%

3.2%

0.7%

3.3%

FY2005 FY2006 FY2007 FY2008

Group Profitability

Profit to Equity Holders jumped 7Profit to Equity Holders jumped 7--foldfold

Cost rationalisation strategy paying off

7.9

FY07

1.4

FY07

10.26.2Segmentmargin(%)

FY08FY08

RestaurantBeverage

Margin expansion due to improved margins ofMargin expansion due to improved margins ofBeverage and Restaurant businessBeverage and Restaurant business

Group PBIT margin

S$ mil

Page 22: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Financial Position

20.323.0Trade and Other Receivables

3.0

3.6

0.21

4.5

16.7

14.3

26.5

31 Jan2007

3.3- Long-term

11.4- Short-term

Interest-bearing Loans andBorrowings

11.0Return on Assets (%)

22.5Return on Equity (%)

31.3Shareholders’ Equity

0.03Net Gearing (times)

13.4Cash and BankBalances/Fixed Deposits

31 Jan2008

Balance Sheet (S$ mil)

Positive reserves ofS$4.5 mil for FY2008

Reduced loans andborrowings by S$6.5 mil

Paid dividends of S$1.9mil in FY2008

Repayment of bankloans

Page 23: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Page 24: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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FY2009 Outlook

…to better withstand current economic and industry concerns:

Global economic slowdown dampening consumer and business sentiments

Competitive conditions

Rising operating costs – raw materials, rental, utilities, staff costs

Build on encouraging sales growth in FY2008

Maintain focus on cost rationalisation and cost management

Improve profitability of operations

Build stronger financial position

Key Business ObjectivesKey Business Objectives

Page 25: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Growth Strategies – Beverage Division

Strategies/Drivers for FY2009Strategies/Drivers for FY2009

Expand production capacity of Aseptic PET line (+25%)

Launch 2 to 3 new beverages in growth markets

Local Market Overseas Markets

Capitalise on captainshipstatus and expand

vending machine network

Strengthen distributionnetwork and

brand visibility

Page 26: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Growth Strategies – Restaurant Division

Enlarged central kitchen in Hong Kong

Seek promising locations to open newoutlets in current markets

Explore and create new brand concepts

Strategies/Drivers for FY2009Strategies/Drivers for FY2009

(doubled capacity to supportup to 30 restaurants)

Page 27: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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Investment Highlights

Leading F&B group in Asia Pacific

Established market position and reputation in the Ready-To-Drink (RTD) Non-Alcoholic Beverage segment in Singapore

World-wide distribution network spanning more than 50countries across Asia, Europe and the Middle East

Strong portfolio of restaurant outlets and brands in HongKong, Macau and Singapore

Diversified revenue base with more than 50% of sales fromoverseas markets

Improving profitability through focus on cost management andoperational efficiency

Page 28: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

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This presentation contains certain statements that are not statements of historical fact, i.e. forward-looking statements.Investors can identify some of these statements by forward-looking items such as ‘expect’, ‘believe’, ‘plan’, ‘intend’,‘estimate’, ‘anticipate’, ‘may’, ‘will’, ‘would’, and ‘could’ or similar words. However, you should note that these words

are not the exclusive means of identifying forward-looking statements. These forward-looking statements are based oncurrent expectations, projections and assumptions about future events. Although Pokka Corporation (Singapore)Limited believes that these expectations, projections, and assumptions are reasonable, these forward-lookingstatements are subject to the risks (whether known or unknown), uncertainties and assumptions about Pokka

Corporation (Singapore) Limited and its business operations.

Some of the key factors that could cause such differences are, among others, the following:

•changes in the political, social and economic conditions and regulatory environment in the jurisdictions where we

conduct business or expect to conduct business;

•the risk that we may be unable to realise our anticipated growth strategies and expected internal growth;

•changes in currency exchange rates;

•changes in customer preferences and needs;

•changes in competitive conditions in the F&B industry and our ability to compete under these conditions;

•changes in pricing for our products; and

•changes in our future capital needs and the availability of financing and capital to fund these needs.

Given these risks, uncertainties and assumptions, the forward-looking events referred to in this presentation may not

occur and actual results may differ materially from those expressly or impliedly anticipated in these forward-lookingstatements. Investors are advised not to place undue reliance on these forward-looking statements.

Investors should assume that the information in this presentation is accurate only as of the date it is issued. PokkaCorporation (Singapore) Limited’s business, financial conditions, results of operations and prospects may have changedsince that day. Pokka Corporation (Singapore) Limited has no obligation to update or revise any forward-looking

statement, whether as a result of new information, future events or otherwise, except as required by law.

Safe Harbour for Forward LookingStatements

Page 29: Pokka Corporation Singapore Limited - FinanzNachrichten.de · 2008. 4. 1. · Cost rationalisation strategy paying off 7.9 FY07 ... Established market position and reputation in the

Pokka Corporation (Singapore) Limited39 Quality RoadSingapore 618810www.pokka.com.sg

Investor Relations ContactOctant Consultingtel (65) 6220 [email protected] or [email protected]