Alcoholic (KLSE) - Peer Comparison by L. C. Chong https://lcchong.wordpress.com/ https://www.facebook.com/groups/285121298359919/

1. ALCOHOLIC INDUSTRY
PEER COMPARISON
12 April 2016
L. C. Chong (http://lcchong.wordpress.com and https://goo.gl/jjkq4P)

2. DISCLAIMER
I am NOT an investment advisor nor a financial advisor, and no information provided
here is to be interpreted as a suggestion to buy or sell securities.
Stock analysis in this presentation may not neutral because I have incorporated my
risk appetite and principles in the analysis.
All figures in MYR and in '000s, except per share data
2

3. DECLARATION OF INTEREST
• At the time of writing, I owned shares of GAB and CARLSBG.

4. SCOPE
• Figures and ratios are based on the figures reported in Annual Report or the latest
Q4 Quarterly Report (QR)
• Comparisons are made merely based on financial figures
• Growth drivers and risks/challenges are not covered here
• Valuation is not covered in this analysis.

5. CHANGES
• 3 Nov 2015 – First write up in PowerPoint format
• 8 Nov 2015 – Applied new template
• 12 Apr 2016 – Update with CARLSBG FY15Q4 and Annual Report 2015 figures

6. PRODUCT PORTFOLIO
Source: AmResearch 27 Mar 2014

7. PROFITABILITY
0
100,000
200,000
300,000
400,000
FY2011 FY2012 FY2013 FY2014 FY2015
EBITA
GAB CARLSBG

8. PROFITABILITY (CONT.)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY2011 FY2012 FY2013 FY2014 FY2015
EBITA Margin
GAB CARLSBG
EBITA growth of GAB and CARLSBG is uptrend despite of challenges in the industry. EBITA Margin of GAB
is much higher than CARLSBG, but CARLSBG margin is getting closer to GAB.

9. PROFITABILITY (CONT.)
Source: AmResearch 30 Sep 2013
Change in Excise Duty vs. EBIT Margins
• EBIT margins for both GAB and CAB
remained stable throughout the
consecutive excise hikes in 2004-
2006. GAB's margin hovered
around14% while CAB is at about
11%.
• Since 2007, EBIT margins have been
on an upward trend, aided by the
absence of excise hikes as well as
emphasis on efficiency by the
brewers.

10. ROIC AND CROIC
0.0%
20.0%
40.0%
60.0%
80.0%
FY2011 FY2012 FY2013 FY2014 FY2015
ROIC
GAB CARLSBG

11. ROIC AND CROIC (CONT.)
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
FY2011 FY2012 FY2013 FY2014 FY2015
CROIC
GAB CARLSBG
In terms of efficiency in generating earnings and free cash flow, CARLSBG’s efficiency is higher than GAB.
This is mainly due to CARLSBG invested capital is lower than GAB. Nevertheless, both of them are
excellent.

12. LEVERAGE
0.00 x
0.10 x
0.20 x
0.30 x
0.40 x
0.50 x
0.60 x
0.70 x
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Debt/EBITDA
GAB CARLSBG
Leverage of GAB is higher than CARLSBG, but both are in very healthy level.

13. LIQUIDITY
-60
-40
-20
0
20
40
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Cash Conversion Cycle
GAB CARLSBG
CARLSBG’s CCC is much lower than GAB, and, CARLSBG’s historical CCC were below 0. This means CARLSBG
using other people money to run business.