fitti diaper

DSG International (Thailand) PLC
Opportunity Day
September 11, 2014
www.dsgap.com
Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
2
Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
3
Summary
 H1/2014 Sales Revenue improved by 13.8% growth to Baht 4,124.3m, outgrowing the industry rates in major markets, in spite of the socio-econ-political
uncertainties
 Positive growth in key markets driven by :
 Favorable consumer response to BabyLove , PetPet and Fitti DayPants in
major markets
 Certainty DayPants further consolidates DSGT Adult category leadership
 Net Profit increased by 5.7% to Baht 330.0m from H1/2013 at Baht 312.3m
 Normalized Net Profit grew by 15.0% after adjustment of volatility of FX impact
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DSG SEA Group
Thailand
 Continued to gain market share in both baby & adult diaper categories, despite dampened
consumer sentiment resulted from the political uncertainty
 Introduction of Certainty DayPants has increased market share in adult pant category
 BabyLove PlayPants/DayPants continued to gain sales momentum
Malaysia
 Low consumer consumption sentiment continued to be affected by lifting of fuel and sugar
subsidies & planned Good & Services Tax (GST) implementation in 2015
 Strengthened PetPet baby diaper franchise to challenge market leadership position
 PetPet DayPants, launched in mid of May has gained positive consumer responses
Indonesia
 Fitti DayPants launch has boosted the brand franchise and doubled sales in H1/2014
 Be on track to build a high performance organization
 Recently concluded presidential election continues to pose political uncertainty in near future
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Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
6
Financial Highlights
H1/2014
H1/2013
%YoY
4,124.3
3,623.4
+13.8%
Net Profit
330.0
312.3
+5.7%
Normalized Net Profit
(excl. FX volatility)
331.9
288.7
+15.0%
EPS
0.26
0.25
+4.0%
NAV per share
(Net Asset Value)
5.55
5.24
+5.9%
Sales Revenue
Variance
Key Financial Ratio
Gross Profit margin
35.4%
36.5%
-1.1%
SG&A (% of sales)
26.8%
27.6%
+0.8%
Net Profit margin
7.9%
8.5%
-0.6%
Gearing Ratio
1.11
1.03
-0.08
Net Debt/Equity
1.66
1.55
-0.11
 Net Profit increased 5.7% due to high sales volume
 Interim Dividend for H1 2014 will be paid on September 12, 2014 at the rate of Baht 0.06 per share or Baht
75.6m
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Sales Growth
Total Gross Sale
Adult
Baby

H1 2014 Gross sale grew by 13.3% to Baht 4,242 million
 Baby category shift of growth from Tape to Pant
 Adult category out-perform market
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Sale Revenue by Segment
H1 2013
H1 2014
By Category
By Country
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Normalized Net Profit
Million Baht

%Margin
Normalized Net Profit was applied to exclude the flood impact with insurance claim and
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FX volatility
Cash Flow Movement
(Jan 1- Jun 30, 2014)
(Unit: Million Baht)
 Capital expenditure increased to expand capacity and facility
 Still in strong cash position
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Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
12
Certainty® Update
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Innovation Certainty® Day Pants Q1 2014 - Thailand
•Adult diaper market is still very immature
•Certainty® is strong regional brand with Tape & Heavy Incontinence Pant Products
•To grow revenue is to grow category
•Launched Certainty Day Pants in Thailand to expand market to light incontinence
or first time users
1st Hygiene Pants
with thin pad core for underwear-like
feeling at affordable price
For light incontinence
needs
TVC
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“Feel
Deeply Grateful with Certainty® Adult Diaper Y2”
CSR : To donate medical devices for elderly patients
at Ramathibodi hospital
2 channels of donation
d
Consumers - Every purchase
Non-consumers: 1 Like = 1 Baht (FB)
Timeline
2013 : Donated 3.0 mil bht + diapers
2014 : More support from press and TV, donation
ceremony be announced at the end of the year
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Baby Day Pants Expansion
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Launch of DayPants Mega pack variant
(Thailand)
• Accelerate Day Pants growth momentum to trade up BDP Jumbo pack user
and convert users by offering price savings via volume purchase
MEGA PACK
Offer more price saving for heavy user
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PetPet® DayPants Launch in Q2 2014 (Malaysia)
• Market opportunity to gain new users, strong category growth over previous 2 years
• Strong PetPet Branding, #1 in new fits and strong #2 in total diaper market
• Activation includes ATL, BTL, Digital and Ground Activity
ATL
Digital
Launched April 2014
Sampling
Hospital
Sampling +
Paediatric +
PA in Trade
Prints
TVC
BTL
Trade
Activation +
Facebook
Contest
Trade Display
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Indonesia Fitti Day Pants
Fitti Day Pants Launched in September 2013
Promising 1st year of launch.
•Strengthening Fitti brand in baby diapers market by launching Pants product in Midrange price
market where the most fastest segment growth
•Support with integrated Media communication via TVC, Print Ads, and digital.
•Drive trial and conversion among 1st time Moms via Best in Class New Fits Program, supported
by CRM and digital marketing.
Fitti Day Pants
Sales Value
TVC
Social Media
Fitti Day Pants
In Store Activation and Sampling
Hospital Sampling
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Day & Night Product Mix
• First mover to introduce DAY & Night system usage
• Capture Usage Segmentation, differentiating between the needs for a Day
and Night diaper
Comfortably dry all day and night
Day: With Quality Guarantee – the best performing
diaper in its segment for better daytime hygiene
to Night: with Double Absorbency Layers
to support our “1 Piece All Night” promise – A Good
Night’s sleep without interruption
TVC
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Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
21
H2/2014 Outlook
 H2/2014 remains challenging with the economic and political uncertainties
as the key
 FX volatility remains a challenge to cost of materials and profitability
 New products launched in H1/2014 will continue to sustain sales growth for
DSG Group in H2
 Cautiously optimistic with the strong business foundation supported with the
innovation pipeline
 Striving at double digits growth momentum
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Agenda
1. Opening Remark
By Mr. Ambrose Chan, CEO
2. Financial Performance
By Mr. Yeoh Aik Cheong, CFO
3. Market Update
By Ms. Chachanee A., GM-TH
4. H2/2014 Outlook
By Mr. Ambrose Chan, CEO
5. Q&A
23
Thank You
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