FY 2021 Full-Year Financial Results Briefing

Good evening everyone and thank you for joining the Thai Beverage FY 2021 results call. All participants have been placed in a listen-only mode. Later, we will conduct a question and answer session. The instructions will be given at the time. I will now hand over the call to the presenter, Ms. Nam-Fung An Su Tong-Long-Sih, Thai Bref Head of Investor Relations and the members of Thai Bref Senior Management Team. Thank you. Good evening, ladies and gentlemen. Welcome to Thai Barrage 2021, ended the 30th of September 2021 Financial Results Conference call. I am Nam Foon, Ang Soo-Tha Rong-se, Head of Investor Relations. For the conference call tonight, I will start with a summary of the 2021 results,

then we will open the line for Q&A with our management team here. For the summary of our results, total sales revenue of the company for the year ended the 30th of September 2021 was 240,543 million baht, a decline of 5.1% when compared to last year. This was due to the impact from the COVID-19 situation, which was more severe than last year. Net profit was $27,339 million, an increase of 4.9% year-on-year. This was due to positive change impact from last year's non-recurring costs and deferred tax utilisation related to bear business restructuring of $2,660 million. The Board of Directors has proposed to issue a dividend of 12,559 million baht or 0.5 baht per share, which is higher than 0.46 baht per

share of last year. The payout ratio for the fiscal year 2021 dividend is 51% payout ratio. Please note that the interim dividend was paid in June 2021 at 0.15 baht per share and the final dividend will be 0.35 baht per share. For the highlights of this year, the company's spirit business remained resilient in 2021. Despite the closures of entertainment venues and restaurants, experts are mostly consumed via off-trade channels. The business generated sales revenue amounting to 150,052 mbaht, or 1.9% decrease year on year, taking into account a 1.8% decline in total sales volume. The Spirit Business delivers stable net profit of $22,138 million, along with an improvement

in the net profit margin. The company's beer business recorded sales revenue abounding to $99,157 million in 2021, a 7.2% decrease compared to the previous year, in view of lower bear sales volume due to the strict COVID-19 control measures in Thailand and also in Vietnam. South-South sales volume decreased 11.1% year on year when including Sub-Eco sales, and decreased 4.4% year on year when excluding the Sub-Eco sales. The net profit of the company's bear business declined 11.4% year-on-year to 3,119 million baht. However, their business in Thailand reported an increase in net profit from cost-saving initiatives. The company's non-alcoholic beverages business generated sales revenue, amounting to 15,205

million in 2021, a decrease of 6.6% year-on-year due to a 7.6% decline in total sales volume. The net profit from normal operation rose 51% to $548 million year-on-year as a result of cautious cost management by reducing advertising and promotion expenses as well as controlling administrative expenses. excluding the margin of insurance came on property damage from five incidents of Osheba Ranch factory recorded in the previous year. The company's food business recorded sales revenue of 11,280 million baht in 2021, as 14.4% decrease year-on-year, mainly due to impact from the government-imposed containment measures to contain the virus spreads, including restaurant cross-shells in the shopping mall and the prohibition of the diet in services.

The business undertook active mitigation measures such as enhancing home delivery and take-away options by managing costs prudently. Nevertheless, the decrease in sales revenue led to a net loss of $488 million for the food business. The company's international business recorded sales revenue of 57,394 million in 2021, and 8% decrease year on year. The decrease was mainly due to an 11% decline in BSLs. Following the lockdown and strict social distancing, measures in Vietnam. This was partially mitigated by a 5% increase in revenue generated by the international spirit sales due to the growth in contribution from Scott Spitzky and also Chinese Spritz. Now we will open for the call to any questions on our results.

Operator, please help open the line for Q&A. Thank you. We will now begin the question and answer session. Participant with the question to pose, please press 01 on the telephone keypad. And we will place in the queue. To cancel the queue, please press 02. Once again, 01 on your telephone keypad. First, we have a TT-TEP, please go ahead. Hello? Hi, TT-TEP, go ahead. I have a few questions, maybe I go one by one, if that's okay with you. Number one, can you update us on the situation in Myanmar? It doesn't look good, both in terms of the violence, the riot, and then also the COVID.

How was their sales in Myanmar during the past six months? And your view on the future sales growth would be appreciated. You wanna go one by one, right? I will ask Khun Prabhak to respond to you on the first question.

Sorry, God. Actually on Myanmar, the questions relating to COVID COVID, in the past few months, we start to see that Myanmar have returned to normal in term of COVID cases have dropped and the vaccination rollout actually done quite well. In term of our staff, we also have full vaccination rates and that's even provided by the government. So that's something that's not of concern. The concerning topic that everyone's operating in Myanmar today would be probably the economic environment, the banking system and how cash or banking system operate due to instability of the government. I think that's just the risk of being in Myanmar for every business.

For our business, we remain profitable and in fact we close the year in local term. I'll touch on the foreign currency in a bit, but in local currency term, we close the year actually for the grand royal business net profit after tax higher than last year. So we remain very confident, we have no 18 receivable issue. In fact, our 18 receivable report, it's actually healthier than before all these financial, all these economic environments or instable government, because I think we, since the beginning of the year, we decided we put even more control on aging receivable because that to prevent the risk of not be able