Angliss Asia Business Update May 2018 Serving Those Who Serve Great Food
Economic Environment Population: 1.4 billion GDP (PPP): $21.3 trillion 6.9% growth 7.3% 5-year compound annual growth $15,399 per capita Inflation (CPI): 2.0% CHINA Product China Market Size Angliss China % of Total Market Size Imported Volume (MT) Imported Value (USD 000000) Imported Volume (MT) Imported Value (USD 000000) Volume (%) Value (%) Meat 4,604,000 $103,500 571 $7.71 0.01% 0.01% Dairy 965,000 $6,060 17,768.4 $67.85 1.84% 1.12% Others 2,559,000 $30,210 4,341.5 $25.00 0.17% 0.08% Source of data: USDA Foreign Agricultural Service (China s 2016 Food Import Situation)
Economic Environment HONG KONG Product Population: 7.4 million Hong Kong Market Size Angliss Hong Kong % of Total Market Size Imported Volume (MT) Imported Value (USD 000,000) Imported Volume (MT) Imported Value (USD 000,000) Volume (%) Value (%) Meat 1,169,780 $4,034 14,919 $116.12 1.28% 2.88% Dairy 220,124 $1,270 12,376 $74.67 5.62% 5.88% Others 2,020,241 $5,204 8,285 $25.88 0.41% 0.50% Source of data: Global Trade Atlas (GTA) by Hong Kong Census & Statistics Department (Retail Report 2016) SINGAPORE Population: 5.6 million Singapore Market Size Angliss Singapore % of Total Market Size Product Imported Volume (MT) Imported Value (USD 000000) Imported Volume (MT) Imported Value (USD 000000) Volume (%) Value (%) Meat 379,711 $822.79 16,416 $62.42 4.32% 7.59% Dairy 333,610 $689.24 1,768 $7.54 0.53% 1.09% Others 1,244,097 $686.36 4,464 $17.77 0.36% 2.59% Source of data: Global Trade Atlas (GTA) by Export Guide Annual 2017
Our Presence in Asia China 28 cities Japan Macau HK Vietnam Philippines Malaysia Singapore Potential Market Indonesia
Development in China Today in China, we are in more than 28 cities Current Operations Future Development China 2018: 28 cities 2019: 30 cities Xinjiang Tibet Qinghai Heilongjiang Changchun Jilin Liaoning Shenyang Neimonggol Beijing Tianjin Ningxia Shijiazhuang Hebei Shanxi Shandong Gansu Zhengzhou Shaanxi Henan Jiangsu Xian Nanjing Wuhan Suzhou Shanghai Shanghai Sichuan Hubei Anhai Chengdu Chongqing Hangzhou Nanchang Jiangxi Zhejiang Hunan Guizhou Fujian Xiamen Kunming Yunnan Guangxi Guangzhou Shantou Nanning Zhuhai Shenzhen Hong Kong Haikou Fushan Sanya
Our Logistic Capacity Number of Trucks Cold Storage (metric tonnes) Other Asia Regions 香港 Angliss Hong Kong 46 8,000 澳門 Angliss Macau 6 600 新加坡 Angliss Singapore 36 5,700 馬來西亞 Malaysia 4 400 Total 92 14,700 195trucks 39,035 Metric Tonnes Cold Storage China Region Number of Trucks Cold Storage (metric tonnes) 北京 Beijing 17 9,200 天津 Tianjin 2 200 瀋陽 Shenyang 3 300 石家莊 Shijiazhuang 1 50 山西 Shanxi 1 13 濟南 Jinan (Shandong) 1 50 上海 Shanghai 13 2,700 杭州 Hangzhou 3 700 南京 Nanjing 1 40 廣州 Guangzhou 14 6,000 成都 Chengdu 4 380 重慶 Chongqing 2 130 昆明 Kunming 1 50 廈門 Xiamen 2 200 深圳 Shenzhen 16 2,500 西安 Xi'an 3 322 鄭州 Zhengzhou 3 220 武漢 Wuhan 3 400 湖南 Hunan (Changsha) 4 500 南寧 Nanning 2 300 海口 Haikou 3 60 三亞 Sanya 4 20 Total 103 24,335
Angliss Asia Next 4 Years Sales Growth Target 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
Angliss Strength Compared to the Market Competition (China) Each branch well equipped with administrative structures, professional sales team, self-owned warehouse and delivery team Diversified sales channels including HoReCa, bakery chains, factories, supermarkets, airline, wholesale Strong and capable technical team in pastry, bakery, meat, cuisine and beverages Professional customer and after-sale service Complete QC systems, ISO 9001, high investment in assurances for the benefit of clients, e.g. Public Responsibility Insurance, Cash Insurance, Property Insurance
Angliss Strength Compared to the Market Competition (Hong Kong, Macau Singapore) A very diverse portfolio to provide one stop shop solution, covering meat, dairy, seafood, grocery, beverages and gourmet fine food Own production and processing center for meat, seafood and ready to eat products, all with ISO and HACCP accredited Diverse sales channels covering hotels, restaurants, catering, airline, casual dining, food chains, bakery & pastry, wholesales, retails, etc. Reliable brands that give confidence and safety to our customers. 24 hour warehouse which accommodate chill, frozen, ambiance and dry storage at the same place providing efficient and reliable service to our clients Same day delivery service that enables customers to receive goods 6 hours from ordering before 11am
Challenges & Threats (China & Hong Kong) Uncertainty of the Policy changes in China Number of largest suppliers are starting to become more aggressive entering by establishing their office & sales team in the country The two largest online apps in the world, Alibaba & Tencent are also bridging into the role of Angliss, taking advantage of their logistic network Keeping a reasonable balance of stock is a very big challenge as we rely almost 85% on imports. We need to work on forecast almost 5 to 6 months ahead Declines in mainland visitors to Hong Kong weaken / affect the overall economic and food service sector US & China trade war may have impact on our business (partners will probably ask to absorb part of the impact of increased cost) Difficult to recruit quality staff for our business operations
Challenges & Threats (Singapore) US-China tensions cast dark clouds in the horizon Prime Minister Lee expressed that Singapore may be drawn into trade tensions between the US and China if things escalate and that this may hamper Singapore s export as well. Difficulty in recruiting and retaining quality staffs According to the Willis Towers Watson 2016 Global Talent Management and Rewards Survey, more than 65% of Singapore employers are struggling to attract talent in particular critical-skill employees (66%), top performers (74%) and high-potential employees (69%).
Challenges & Threats (Singapore) Fierce Competition from Competitors Due to the small saturated market, increasing number of smaller players strives by offering free value-added services They also support Saturday and Sunday deliveries
Highlights of the Business We are operating in 28 cities in China now Meat processing plant in China Region will be ready for operations in end of 2018, now under construction & development Expanding and further develop our Private Label Brands Acquisition of Linson Global Seafood Hong Kong Gourmet Partner & Bidfood Malaysia under one roof Business expansion in Vietnam Restructuring of Angliss Singapore
Meat Processing Plant & Meat Business Development Location: Chancheng District, Foshan City, Guangdong Province, China Estimated Area : 1,594m² : 1,594 Meat Cutting & Packaging Area : 696m² Marinated Meat Processing Area : 172m² Cold Storage Area : 272m² A huge business in the Chinese cuisine, 60% of Chinese restaurants through out China. We believe with Jerry s expertise will help us to rapidly growth the meat category business.
Initial Production Plan We can provide hand cut and tailor made packaging according to customers requirement and specifications Initial Launching Items ********* Burger Patties Sous Vie Steak Meat cutting Meat marinating Small packaging
Business Expansion Acquisition of Linson Global Seafood Trading Supply a comprehensive range of frozen fish and seafood to a wide range of key customers in the wholesales and supermarkets
Strengthen Development of Gourmet Chinese Cuisine Business Chinese cuisine is still the dominating food service preference in China and Hong Kong. Customers are willing to pay more for quality and premium Chinese cuisine for business and family gatherings. Good quality of ingredients are key to Chinese chefs to create their best dishes. Chefs are openminded to use different ingredients for innovative menu creation nowadays. Angliss will work closely with high-end Chinese cuisine fine dining restaurants to further develop menus using Angliss finest ingredients such as Wagyu beef and sustainable seafood, truffles, foie Gras etc.
Bidfood Malaysia & Gourmet Partner Gourmet Partner Specialised in Gourmet Food Bidfood Malaysia Specialised in Pastry and Confectionery Both companies under one roof allow them to share operational best practice, deliver a better customer experience and offer more comprehensive product ranges, while leveraging combined strengths and economies of scale and further strengthen different market segments in Malaysia.
Current Coverage & Future Expansion With the establishment of Bidfood Malaysia, there is synergy between both Bidfood Malaysia & Gourmet Partner Malaysia Able to set up 3 more offices in: Johor Bahru Kota Kinabalu Penang/Langkawi Looking for acquisitions in East Malaysia Existing Offices: 1) Kuala Lumpur 2) Selangor 3) Johor 4) Ipoh 5) Seremban 6) Melaka 7) Pulau Penang 8) Langkawi 9) Sabah 10) Kuantan
Gourmet Partner Vietnam Gourmet Partner penetrating Vietnam market by partnering a local company Dai Thuan, expect the licence to be delivered in May 2018 This joint-venture will give GPVN immediate access to 5 logistical platforms (Ha Noi, Saigon, Da Nang, Nha Trang, Phu Quoc island) which are key to reach the customers mentioned in the previous slide. Most key brands to be distributed are already confirmed Warehouse ISO9001 to be built by end 2018 Most key staff have been hired or identified
Angliss Recipe for Our large market share Our added value service Our good track record with 72 years experience Our innovation Our care and passion Our foodie people!
Thank You Serving Those Who Serve Great Food