OPPORTUNITY DAY Q2/2021 - TRANSITIONING TO A LOW CARBON WORLD August 17th 2021 - SET
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OPPORTUNITY DAY
Q2/2021
August 17th 2021
TRANSITIONING TO A LOW CARBON WORLD 1
Disclaimers
The information contained herein is intended to represent the Company’s operating and financial
position at a given point in time and may also contain forward looking information which only
reflects expectations based on the prevailing geo-political, economic and non-controllable factors.
Such information has been obtained from sources believed to be most reliable and the means in
analyzing and preparation of such information for disclosure are based on approve practices and
principles in the investment industry. The views are based on assumption subject to various risks
and uncertainties and no assurance is made as to whether such future events will occur. No
assurance is made as to the accuracy or completeness of information presented in this document.
2
Industry Review
Business Overview
AGENDA Key Updates
Q2/2021 Review
Outlook and Investment
Plan
3
Industry Update
Validates Our Strategy
“Climate change is already affecting every
inhabited region across the globe
with human influence contributing to many
observed changes in weather
and climate extremes”
IPCC AR6 WGI
4
Change is coming
News Headlines Regarding IPCC and Climate Change Across the World:
Lawmakers, Biden administration warn
over UN climate and need for
urgent action
Beijing’s response to IPCC:
Climate ‘blue paper’ and ‘Coal
price rises’
Many companies grapple
with climate change math
IPCC report is ‘code
red for humanity’
The concern from scientists: Earth is
warming faster than previously thought
Source: CNN, Bloomberg, CarbonBrief 5
IMPACT of IPCC: Thailand will not be competitive by 2025
Impact of IPCC
• Quicker legislation
• Wide sweeping changes
Regulation • Punishing policies
• Carbon adjustment tax
• Carbon quotas
Carbon tax • Carbon trading
• FDI flows will flow to green economies
• Thailand falling behind with inadequate net
Thailand zero commitments (Target 2065)
implications • Politics will prevent national competitiveness
• Supermarket requirements
• MNC requirements
Business policy • Consumer requirements
6
Competition will be dominated by next generation plant-based meat
products – what ‘Next’ means will change frequently
Total U.S. Plant-based sales by Category in 2019 Plant-based Meat Market
Unit: Million USD
Size of the Global Size of the U.S
Meat Category Meat Category
1,858.0
1,234.0
801.0
387.0
$1.4 trillion $270 billion
118.0 70.0 6.0
Milk Other Dairy Meat Meal Tofu & Condiments eggs
temph
Asia will follow US plant-based adoption roadmap, but not fully Beyond Meat Revenue from U.S. Retail
• Plant based has reached 12% US household penetration
• Plant based meats has taken a 3% market share from meat Unit: Million USD
Supermarket
Growth
Market is still wide open for market share and sales growth
• Beyond Meat only has 18% market share TTM despite having spent and invested the
264.0
Beyond Meat
most capital showing the struggles to maintain market share – clearly not the future +0.7% YoY Growth
of protein
129.0 140.0 141.0
• Plant based meat still has room to grow for Multinational brands, supermarket brands
– its not just about Start ups. OEM Opportunity is still very much an exciting space
• Category is not just about next generation; shelf stable meat is still growing (NRF
products)
• Growth on shelf is slightly deceleration as volume shifts to food service due to re- 2019 2020 1H/2020 1H/2021
opening up of the U.S. retail
7
The world is going to transition to carbon negative foods sooner,
NRF will lead in key markets where we have regulatory, carbon or scale
advantage due to our business model
Industry Review
Business Overview
AGENDA Key Updates
Q2/2021 Review
Outlook and Investment
Plan
9
Company Highlights
“We aim to be a global leader in foods that will lead to decarbonization of the world and
to generate exponential returns to shareholders by working on solving the problems of
humanity arising from the food system”
Climate change is the We aim to be the world’s recognized Our business model is globally
challenge of our leader in co-manufacturers of unique and solves pain points
lifetime sustainably produced foods within the food industry
Our key verticals from plant Entered SET 100 & Recognized sustainability leader Solving the 2050 food crisis
based to ecommerce will ESG 100 within 9 in Thailand and by many represents the largest
generate QoQ growth months multilateral organizations opportunity of our lifetime
10NRF operates an integrated low carbon food platform
Providing an end-to-end solution in the production of sustainably produced food
Plants Specialized Global platform,
facilities regional Plant based
Smart production,
production localization,
Ethnic Foods
Novel Blockchain teams Functional foods
Functional
01 02 03 04
Specialty ingredients that Global manufacturing Brand portfolio that allows us eCommerce, Retail
advance product platform sets us apart from to innovate and quickly roll & Community
characteristics or competition with innovation out products into the market
reduce carbon centers.
11Building competitive advantage in Plant based
Corporate Global Platform Carbon Vertical Focus on
mission to Regional Footprint and Integration with Community,
product Production Farmer Welfare a focus on Omni Channel
purpose Technological Distribution and
alignment Innovation & Marketing
Specialty
Ingredients
Our product mission Focused on scaling to Our goal of having a Custom proteins will eCommerce and
and our corporate be the first in the carbon negative enable us to offer innovative retail
mission both are world to deliver a footprint will set us products that in marketing will allow us
aligned to consistently produced apart from our certain regions will to grow our total
decarbonization and and priced product competitors as the enable us to compete addressable market by
not harming animals. across regions only true choice for without peers and upselling to existing
millennials make us the preferred customers and
global partner of creating new ways for
brands people to experience
plant based
12Industry Review
Business Overview
AGENDA Key Updates
Q2/2021 Review
Outlook and Investment
Plan
13Strategic Pillars of Growth
People
Our vision is people will consume an alternative proteins-based meal once a day
Our purpose is to transform our food system for a more inclusive and sustainable world
Our goal is to be the world’s leading co-manufacturer of alternative proteins & low carbon foods
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
Strategic Priority
1 Win with Data
Win Online 2 Win with a Global
Plant-based Platform 3 Leading Specialty
Food Manufacturer 4 Win Clients with
Sustainability
Stakeholder Guided Operations Driven by SOLID Culture
14Strategy 1: Win with Data, Win Online
2023 Goal Revenue 4-5,000,000,000
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
1
Brand Portfolio NRF Value-Add E-commerce New Deals
Q3 2021 New product Q3 2021 NRF is setting up a Target complete 6
launch under the eCommerce acquisitions in 2021
Q3 2021 Product produced platform to sell own
Primelabs brand
by NRF V Shape branded products in
Q1 2021 under Prime Labs Thailand and ASEAN SPA for leading gummy
brand launch supplement
Revenue $4-5m
Q4 2022 Preparing for Q4 2022 FDA approval and Setting up payment EBITDA $600k
offline launch of expected sale of gateway
prime into health Prime labs products
retail in Thailand Under LOI negotiations
Partner with with 2 companies
existing companies
to channel volume
15Strategy 2: Win with a Global Plant-based Platform
2023 Goal Revenue 4-5,000,000,000
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
1 2
Ecosystem update Innovation
Location: Silicon Valley Project: Small innovation center
& co-manufacturing center
partnership with a leading start
✓ Launching Cohort number 4
✓ Potentially seeing second exit
up and industry veterans
Purpose: Produce next
generation plant-based foods
Goal: Scale and replicate into
Unovis NCAP Fund II other regions
Invest in plant-based and Expected investment: $500,000.
alternative protein startups, from Due to the sheer demand its
production to distribution processes
expected to be fully booked out
✓ Unovis Completes fund raise and break even in Phase 1
Location: Thailand
Project 1: Establish partnership with Khon Kaen University to set up
✓ Nove team currently working with 10 a Future food center
start ups across the eco-system. Project 2: Collaborate on Thailand’s first plant-based Masters
Focus of collaboration is on Cell
Degree
based protein and co-manufacturing
16Strategy 2: Win with a Global Plant-based Platform
2023 Goal Revenue 4-5,000,000,000
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
1 2
• BRC Audit delayed for a second time due • Launch in 2,500 stores Sprouts and Kroger
50% 50% to COVID new schedule is September • Working on NPD produced by Nove
delaying full ramp up of production
• Agreement drafting between NRPT and
PBB for the Thailand Facility
• Planning stage with China facility
• LOI to acquire textured protein company
together with Nove foods • Acquired production plant in Vancouver.
• Preparing to launch PBB branded sausage • Will begin testing production in Q4/2021
• Company formation Mid August in the UK in Thailand with Nove
• Factory and retail store site selection
in progress
• Organization recruitment of key
members in process • >40 SKU and in talks with Distributors
in Thailand, the UK, US and Singpore
• Preparing to launch Nove Eats QSR
Set up co-manufacturing factory for export • Converting Sukumvit Lab into plant-
of plant-based foods and frozen meals / based ghost kitchen to support Nove
build or buy talks products and partners
“Upstream” “Midstream” “Downstream”
Growing Growing Brand & Product
Proteins Production Sales 17Strategy 3: Leading Specialty Food Manufacturer
2023 Goal Revenue 4-5,000,000,000
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
12 3
Thailand Sales New Production Transforming Ratchaburi plant
3 yrs
Soy Milk Specialty Pet Plant based
Food pet food
Launched Por Kwan Brand Currently exploring setting up To better maximize production efficiency and due to a large
in Thailand of 8 SKU with co-manufacturing lines in contractual order we are changing the factory from Soy milk to
SINO Pacific with good Europe and the United states Specialty pet food
feedback on certain volume products
The factory will be injected into an existing pet
food company with order book of 300,000,000
for a stake of 65%
SABZU local launch is gaining Moving Soy milk line to NRF
traction Facility closer to the city
18Strategy 3: Leading Specialty Food Manufacturer
2023 Goal Revenue 4-5,000,000,000
OP Margin Expansion Grow Sales & Market Share Triple Bottom Line Growth
12 3
Progress with supply chain for Hemp fiber,
protein, oil and CBD
Signed agreement to grow and extract Hemp CBD
and Hemp Oil with Khon Kaen university
Planted first plot expect to receive shipment in 60
days of Hemp Oil and CBD for NPD
Expanding plots of 40 rai with first grow in November
expected sales price per kilo of CBD is 35,000 with the
goal to be the most competitive scaled cbd producer.
We expect to generate 15-20m in net profit per 40 rai
plot
19Industry Review
Business Overview
AGENDA Key Updates
Q2/2021 Review
Outlook and Investment
Plan
20COVID-19 Impact and Updates
Global Logistics Issues Plant And Bean Ltd. Facility
Key Industry-wide challenges: Due to COVID-19 situation in Europe, BRC approval was
• Container shortages postponed again to September 2021. However, with UK
• Shipment delays Opening Up Policy, we expect to see no further delays.
• Significant increase in freight prices Production will start ramping up immediately afterwards
Approximate Baht 100M worth of shipment was Currently, the PBB team has been working with
impacted and rescheduled to July 2021, shifting this customers to onboard them and process NPD as
revenue to be recognized in Q3/2021 quickly as possible
We are well-aware and closely monitor and support It is expected to see improved performance in Q4/2021
our clients, helping them to find cargo ships/containers
as much as possible to mitigate risks
NRF continues to maintain proactive measures to prioritize safety and business continuity
Employees Operation & Factory Customers & Society
• Offer free vaccination for all our • Disinfection measures • Several donations to high-risk
employees and their relatives • Social distancing policies community and medical teams
• Screening point for temperature check
• Work from home policy
21Global Container Shortage Shift Q2 Performance
100 million worth of containers (manufactured & loaded into containers) and delivered to the port were
unexpectedly delayed in the last week of June due to rescheduled container ships, moving revenue to July 2021
Q2/2021 Operating Revenue Impact:
Unit: million THB
✓ Orders Produced
✓ Orders shipped to Port
Rescheduled to July 2021, shifting revenue to Q3
100
Impact of container
shortage and
shipping delays
Q3/2021
22Exceptional Quarter 2 results but hampered by container
issues
Operating Revenue Unit: million THB %YoY
Strategy and business Q2/21 82% 3% 15% 448 2020-21
model is being validated +37.0%
with IPCC Q2/20 82% 7% 5% 327
2019-20
Q2/19 91% 9% 287 +13.9%
Ethnic Plant-based Functional E-com
Well-positioned to take Gross Margin
advantage of the coming %YoY
global change Q2/21 38.2% 2020-21
• Carbon negative business will +7.3%
translate into business Q2/20 30.9%
opportunities
2019-20
Q2/19 30.5% +0.4%
• All underlying trends are
accelerating to an inflection point
• Focused on execution against EBITDA %YoY
strategies
Q2/21 91 2020-21
• COVID and container crisis a
temporary issue as we build +28.2%
Q2/20 71
regionalised production 2019-20
• Business model execution Q2/19 55 +29.1%
Normalized Net Profit %YoY
Container mitigation
in Q3 Q2/21 13 16 29 2020-21
-38.3%
Q2/20 21 26 47
2019-20
Q2/19 16 33 49 -4.1%
Net profit Normalization Adjustments* 23Overall Operating Revenue Breakdown by Business Line
OPERATING REVENUE
Million Baht, %
+55.4% YoY YoY: Q2/2021 vs Q2/2020:
37.0% In Q2/2021, the Company reported consolidated operating revenue of Baht
448 million, increased by Baht 121 million or 37.0% mainly due to:
YoY • Ethnic Food Revenue: increase from existing customers in North America
920 and Europe regions, mainly from Recipe Mix and Ready-to-Eat
• Plant-based Food Revenue: decrease from lower orders from major
customers as a result of cargo shortages from global logistics issues
+37.0% YoY 11%
E-commerce
• Functional Product: no sales of V-shapes alcohol gels and no sales of
Functional V-shape machine occurred in this quarter
2% Product • E-commerce: increase in consolidated revenue from BOOSTED NRF Corp.,
-5.1% QoQ 5%
Plant-Based
QoQ: Q2/2021 vs Q1/2021:
Food
In Q2/2021, the Company reported consolidated operating revenue of Baht
5.1%
448 million, slightly decreased by Baht 24 million or 5.1% mainly due to:
592 QoQ • Ethnic Food Revenue: decrease from Own Brand products, especially
4% Recipe Mix products to North America region due to cargo shortages and
7% shipment delays from global logistics issues (valuing 100MB). If NRF was
able to fulfill all shipments, revenue performance would be as planned
472 • Plant-based Food Revenue: decrease from lower orders of Ready-to-Eat
448 Konjac Products from major existing customers as a result of cargo
7% shortages and concerns on increasing freight costs
4%
15% • Functional Product: no sales of V-shape machine in this quarter
7% • E-commerce: increase in revenue from Prime Labs and SOL Trading
3% 82%
327
5% 55.4% YoY: 1H/2021 vs 1H/2020:
7% In 1H/2021, the Company reported consolidated operating revenue of Baht
89% 920 million, increased by Baht 328 million or 55.4% mainly due to:
YoY
82% • Ethnic Food Revenue: increase in own-branded products in all categories
82%
Ethnic Food and higher orders from major OEM customers in North America and
88% Europe regions, and higher revenue from City Food consolidation
• Plant-based Food Revenue: increase konjac products from major
customers during Q1/2021
• Functional Product: no sales of V-shapes alcohol gels in 2021
• E-commerce: increase in revenue consolidated from BOOSTED NRF Corp.,
Q2/20 Q1/21 Q2/21 1H/20 1H/21 24Gross Profit and Gross Profit Margin
GROSS PROFIT AND GROSS PROFIT MARGIN
Million Baht, %
YoY: Q2/2021 vs Q2/2020:
32.6% 38.2% 35.3% Gross 69.3%
30.9% 31.1%
Profit Gross Profit was Baht 171 million, increased by Baht 70 million or 69.3%
Margin mainly from higher consolidated revenues from Prime Labs and SOL
YoY
Trading under E-commerce business
Gross Profit Margin also improved to 38.2% mainly as a result of synergy
received from BOOSTED NRF Corp. as E-commerce Business generated
+76.6% YoY higher gross profit margin
QoQ: Q2/2021 vs Q1/2021:
11.0%
325 Gross Profit was Baht 171 million, increased by Baht 17 million or 11.0%,
+69.3% YoY QoQ mainly due to higher operating revenue from Prime Labs and SOL Trading
under E-commerce business and Thai Baht depreciation
+11.0% QoQ
Gross Profit Margin also improved to 38.2% mainly due to higher margin
from E-commerce business and the absence of sales of V-shape machine
which contributed to lower margin
184
171
154 YoY: 1H/2021 vs 1H/2020:
76.6%
Gross
Gross Profit was Baht 325 million, increased by Baht 141 million or 76.6%,
Profit
101 YoY mainly due to increase in consolidated revenues from E-commerce
business
Gross Profit Margin also improved to 35.3% mainly due to higher margin
from E-commerce business
Q2/20 Q1/21 Q2/21 1H/20 1H/21 25SG&A and SG&A to Total Revenue
SG&A AND SG&A TO REVENUE
Million Baht, % YoY: Q2/2021 vs Q2/2020:
SG&A was Baht 126 million, increased by Baht 73 million or 137.7% mainly
from the:
23.4% 27.1% 17.5%
25.2% SG&A to • Increase in expenses consolidated from BOOSTED NRF Corp. and City Food
15.7%
Total Revenue • Increase in employee salary expenses from team expansion to support
Company growth
SG&A to Total Revenue was 27.1%, increased from 15.7% mainly due to:
11.4% • Increase in expenses consolidated from BOOSTED NRF Corp. and City Food
• Impact from the container shortages, shifting Baht 100 million worth of
+126.4% YoY revenue to Q3/2021 while SG&A costs for those shipments were already
YoY recognized in this quarter
QoQ: Q2/2021 vs Q1/2021:
SG&A Baht 126 million, increased by Baht 12 million or 10.5% mainly from
+137.7% YoY the:
+10.5% QoQ • Increase in expenses consolidated from BOOSTED NRF Corp.
240
SG&A to Total Revenue was 27.1%, increased from 23.4% mainly due to:
• Increase in expenses from BOOSTED NRF Corp.
3.7% • impact from the container shortages, shifting Baht 100 million worth of
Selling
32% revenue to Q3/2021 while SG&A costs for those shipments were already
Expense
QoQ recognized in this quarter
YoY: 1H/2021 vs 1H/2020:
SG&A was Baht 240 million, increased by Baht 134 million or 126.4% which
126 was in-line with the increase in revenues and mainly from the:
114 • Increase in expenses from City Food and BOOSTED NRF Corp.,
106 • Increase in salary expenses from team expansion
27% 36% • Investment-related expenses such as professional and legal fees in Q1/2021
25% Admin
68% Expense SG&A to Total Revenue was 25.2%, increased from 17.5% mainly due to:
53 • Increase in expenses from City Food and BOOSTED NRF Corp.,
23% • Salary expenses to support business expansion and investment-related
73% 64% 75% 7.7% expenses
77% • impact from the container shortages, shifting Baht 100 million worth of
YoY revenue to Q3/2021 while SG&A costs for those shipments were already
recognized in this quarter
Q2/20 Q1/21 Q2/21 1H/20 1H/21 26Normalized EBITDA and Normalized EBITDA Margin
NORMALIZED EBITDA AND EBITDA MARGIN
Million Baht, %
YoY: Q2/2021 vs Q2/2020:
Normalized EBITDA was Baht 93 million increased by Baht 20 million or
27.4%
22.4% 22.2% Normalized 27.4%, which included EBITDA of Baht 91 Million and normalization
21.7% 21.2% adjustment items of Baht 2 million, which are investment-related fees. The
20.0% EBITDA
Margin YoY increase was primarily driven by the increase in operating revenue and
higher gross profit margin from BOOSTED NRF Corp. under E-commerce
business.
+50.7% YoY Normalized EBITDA Margin was 20.0%, dropped from 21.7%. mainly due to
increase in total revenue in a higher proportion than the increase in EBITDA
+27.4% YoY QoQ: Q2/2021 vs Q1/2021:
202 Normalized EBITDA was Baht 93 million decreased by Baht 16 million or
14.7% 14.7%, which included EBITDA of Baht 91 Million and normalization
-14.7% QoQ adjustment items of Baht 2 million. The decrease was due to the lower
Normalization
28
Adjustments* QoQ amount of normalization item from lower investment-related fees. EBITDA,
however, increased by 8 million or 9.6% to Baht 91 million, mainly from the
enhanced gross profit margin from E-commerce business
134 Normalized EBITDA Margin was 20.0%, dropped from 22.4% mainly due to
3 the lower normalized EBITDA from lower amount of normalization item.
However, EBITDA Margin improved from 17.0% in Q1/2021 to 19.6% in
109
Q2/2021 as a result of high margin from E-commerce business
93
26 2
174 EBITDA
73 YoY: 1H/2021 vs 1H/2020:
2 Normalized EBITDA was Baht 202 million increased by Baht 68 million or
131 50.7% 50.7%, which included EBITDA of Baht 174 Million and normalization
adjustment items of Baht 28 million, which consisted of investment-related
83 91
71 YoY fees. The increase was mainly from the significant increase in operating
revenue and as well as synergy received from BOOSTED NRF Corp., resulting
in higher gross profit
Normalized EBITDA Margin was 21.2%, decreased from 22.2% mainly due
Q2/20 Q1/21 Q2/21 1H/20 1H/21 to increase in total revenue in a higher proportion than the increase in
EBITDA
27Normalized Net Profit and Net Profit Margin
NORMALIZED NET PROFIT AND NET PROFIT MARGIN
Million Baht, %
YoY: Q2/2021 vs Q2/2020:
13.9% 14.2% 15.4% Normalized Normalized Net Profit Baht 29 million decreased by Baht 18 million or
10.3% Net Profit 38.3% 38.3%, which includes the normalization adjustment items of Baht 16 million.
6.2% The decrease was mainly from lower adjustment items from lower interests
Margin
YoY from long-term loan prior to IPO as well as lower Net Profit from higher loss-
sharing from Plant And Bean Ltd. as BRC approval was postponed to
+5.4% YoY September 2021. As production will then start ramping up, it is expected to
see further improvement in Q4/2021
-38.3% YoY QoQ: Q2/2021 vs Q1/2020
98 Normalized Net Profit Baht 29 million decreased by Baht 40 million or
93 58.0% 58.0%, which included Net Profit of Baht 13 Million and normalization
-58.0% QoQ
adjustment items of Baht 16 million. Normalized Net Profit Margin also
QoQ dropped from 14.2% in Q1/2021 to 6.2% Q2/2021.
The decrease was mainly from lower amount of adjustment items from lower
investment-related fees and lower Net Profit as a result of the impact of
69
container issue as SG&A expenses for the delayed shipments were already
52 64 Normalization recognized in this quarter while the revenue has been shifted to Q3/2021
Adjustments* and the increase in loss-sharing from Plant And Bean Ltd. from the BRC
approval and higher expenses from BOOSTED NRF Corp.
47
48 YoY: 1H/2021 vs 1H/2020:
Normalized Net Profit Baht 98 million increased by Baht 5 million or 5.4%,
26 29 5.4% which included Net Profit of Baht 34 Million and normalization adjustment
items of Baht 64 million. Major portion of the normalization items consisted
Net of investment-related fees of Baht 28 million, which directly affected the Net
16 41 Profit YoY
34 Profit.
Normalized Net Profit Margin dropped from 15.4% in 1H/2020 to 10.3% in
21 21 1H/2021. Other factor included higher expenses from BOOSTED NRF Corp.
13
and City Food and the increase in loss-sharing from Plant And Bean Ltd. from
the postponed BRC approval which is expected to receive in September 2021
Q2/20 Q1/21 Q2/21 1H/20 1H/21 and will start ramping up production afterwards
*Note: Normalization adjustment items are expenses that are not related to normal or core business operation which include IPO-related expenses, IPO special bonus, professional and legal
fees for investment-related activities, and business acquisition loan interests and front-end fees, amortization of customer relationships acquired from business acquisitions, service fees for 28
investments (Cold Chain Project), and City Food acquisition-related feesStatement of Financial Position
STATEMENT OF FINANCIAL POSITION
ASSETS LIABILITIES AND EQUITY
Million Baht, % 4,055 4,055
45 25 Current potion of Long-term Loan
190 1% 1% 104
5% 143 Others
167 3%
4% 3,358 3% Long-term Loan
3,358 204 524
5% 63 13% Short-term Loan from Banks
70 251 65
Others 104 1% 6% 2% 1
143
187
- 3% 207 2% 315 Trade & Other Payables
Non-Current Financial Asset 202 8%
Investments in Associate 224 6% 285
5% 4%
6% 311 306 Deferred Tax
Short-term loans to Associate 188 7% 7%
Cash & Cash Equivalents 7% Liabilities
284 6% 9%
Inventories 613
Trade & Other receivables 8% 15%
626
PP&E 19%
2,574 2,638
2,093 77% 65% Shareholders’ Equity
1,675
Intangible Assets 52%
50%
and Goodwill
31-Dec-20 30-Jun-21 31-Dec-20 30-Jun-21
Total Asset: As of 30 June 2021, the total assets of the Company were Baht 4,055 Total liabilities: As of 30 June 2021, the total liabilities of the Company were Baht
million, increased by Baht 697 million or 20.8% from 31 December 2020 mainly 1,417 million, increased by Baht 633 million or 80.7% from 31 December 2020
due to: mainly due to:
✓ Short-term Loans to Associate Company: increased by Baht 204 million ✓ Short-term Loan from Banks: increased by Baht 381 million mainly from loans
mainly due to loans given to Plant And Bean Ltd. for facility expansion and for further investments and for City Food debt repayment
working capital ✓ Long-term Loan: increased by Baht 143 million mainly from loans for further
✓ Non-current Financial Assets: increased by Baht 86 million from increase in investments
plant-based investments in Wicked Foods Inc. and Konscious Foods Inc. ✓ Trades and Other Payables: increased by Baht 113 million mainly from the
✓ Intangible Assets and Goodwill: increased by Baht 418 million mainly due to increase in current portion of seller notes from BOOSTED NRF Corp.
the increase in trademarks acquired from Prime Labs and SOL trading deals
under E-commerce business Total Equity: As of 30 June 2021, the total shareholders’ equity of the company
was Baht 2,638 million, which increased by Baht 64 million or 2.5% from 31
29
December 2020, mainly due to the increased retained earnings and the sales of
BOOSTED shares which resulted in 5x returnIndustry Review
Business Overview
AGENDA Key Updates
Q2/2021 Review
Outlook and Investment
Plan
30Project Progress and Outlook
NRF Consumer Ltd Superplants Ltd
1 Deploy additional 500m in equity and debt to 1 Build 2 rai control farm and phase 1 40 rai hemp
acquire 4-6 companies fiber, protein and CBD grow farm
2021 2021
Corporate 2 Take the best products and sell into Asia through Corporate 2 Develop company owned SKU
NRFC Omni channel platform
progress progress
3 Launch products made by NRF into Boosted NRF 3 Plans to launch Cookies and Hemp house (GTH)
platform
Pipeline: Numbers of Companies Acquired Pipeline: GTH Grow Area
Unit: No. of Companies Unit: Rais
42
6
2
40
2
1
1 2
Q1/21 Q2/21 Q3E/21 Q4E/21 Total Q1/21 Q2/21 Q3E/21 Q4E/21 Total
31NRF Investment Plan Summary
1) INVESTMENT PLAN
2019-2020 2021 2022-2023 Total
224.8
New Protein Fund I LP
1,000.0
413.1
3,049.4
Unovis NCAP Fund II” Million Baht
GTH – Investment in Hemp 1,075.0
Mad Meat
336.5
19-20 2021 22-23
2) NRF CAPACITY EXPANSION PLAN
Dedicated Plant- 2019-2020 2021 2022-2023 Total
Based Facility
Konjac Machine
Retail Store
115.0 480.0
150.0 Million Baht
Ethnic Food 215.0
Capacity Expansion
2019-2020 2021 2022-2023
Total 551MB 1,638MB 1,340MB 3,529MB
Source of fund: IPO proceeds Warrant, Loans, Working Capital 32Thank You
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Investor Relations
Tel: 065-508-9666
FOOD FOR FUTURE GENERATION Email: ir@nrinstant.com33Appendix 1
Group Structure and
Investment Plan
34Updated Group Structure
NRF
Updated as of 17 August 2021
eCommerce Specialty Foods Functional nutrition Plant based
100% 100% 100% 100%
NRF Consumer City foods Super plants Nove foods
Manufacturing
3.1% 50% 50%
Nakorn Pratom NRPT
Boosted eCommerce GTH
Factory
45% Plant and Bean
Rajburi
55% Factory
Boosted NRF Konscious
New Facility
Brand
Wicked Kitchen
Prime Labs
Nove Eats
SOL Trading Alternative diary Root the Future
Ie. Soy Milk
Ecosystem
Big Idea Ventures
Well Path SPA Specialty Pet
Food Dedicated production lines
Unovis AM
Fluid energy
V Shape Partnership Corporate
investments
Miracle noodle Phuture
35
Konjac Partnership
Meatless FarmNRF Investment Plans (1/3)
1) INVESTMENT PLAN
Investment Amount Total
Name Type of (Million Baht) Investment
Investment
2019-2020 2021 2022-2023
15.4
New Protein Equity 6.1* 9.3
Fund I LP 1.1%
Invest in New Protein Fund under BIV
15.2
Equity 1.4 10.5
3.3*
10.0%
Invest in BIV Additional Investment Additional Investment
363.6
Equity 165.6
25.0% 198
25% in PBB (GBP 5m) (GBP 4m)
Plant-Based
Equity 3.1 3.1
80.0% Invest in Ocean Hugger (USD 0.1m)
190
Unovis NCAP Equity
Fund II 72 118
3.33%**
Invest in plant-based startups (EUR 5m)
Equity 32.1
8% 32.1
Mad Meat Equity 5.1
51% 5.1
Equity 47.9
1.8% 47.9
Note: *Numbers may be changed as a result of the change in proportion to balance investment share 36
**In the process of fundraising, equity amount may changeNRF Investment Plans (2/3)
1) INVESTMENT PLAN
Investment Amount Total
Name Type of (Million Baht) Investment
Investment
2019-2020 2021 2022-2023
144
90
Asset 35 19
Functional
Purchased 2 V-shape Machines Purchased >5 V-shape Machines
Purchased 1 V-shape Machines
67*
Equity
GTH 67*
49% Investment in Hemp
91
Equity 91
3.7%
3.7% in BOOSTED USA (USD 3m)
2,075
E-commerce
1,000
Equity
BOOSTED NRF
Corporation 55% 717
358
55% in BOOSTED NRF Corporation (USD 10m)
Total Investment 336.5 MB 1,488.1 MB 1,224.8 MB 3,049.4 MB
37
Note: *Value can increase up to 77.8MB depending on Fair ValueNRF Investment Plans (3/3)
2) NRF CAPACITY EXPANSION PLAN
Investment Amount Total
Type of (Million Baht) Investment
Name Investment and Equity
2019-2020 2021 2022-2023
30
Plant 15
Expansion 15
Konjac Machine Purchase 1st Konjac Machines Purchase 2nd Konjac Machines
Plant-Based
150
Plant
Plant-Based Expansion 150
Facility with
PBB
Retail Store
Retail Shop
with PTT
300
100
Ethnic
Plant
Expansion 200
Ethnic Food
Capacity
Acquire 100% of City Food Additional Capacity Expansion
Expansion
(45% Capacity Expansion)
Total Capacity Expansion 215.0 MB 150.0 MB 115.0 MB 480.0 MB
Total Investment 551.5 MB 1,638.1 MB 1,339.8 MB 3,529.4 MB
Target D/E < 1.0 Debt/EBITDAAppendix 2
Financial Performance
Support
39Revenue mix – Q2/2021
Carbon Neutral business Carbon Negative Business The 3 P’s
81% 3%
Plant-based Plant-based Breakdown
PLANET
Ethnic Food Carbon Reduced
Food ✓ Proportion of Brand will Energy Saving - LED
Seasoning, Recipe Mix,
Ready to Eat, and Jackfruit meat, grow fast in the near CO2 Emission reduction
Beverages Konjac Noodles, future = 527,665.34 kg CO2e/year
Soymilk Carbon Offset
= 4,878 ton CO2 eq/year
Brand
448 1%
Million Baht PEOPLE
Total Followers across all our
Q2/2021
OEM impact Social media = 41,894
Revenue
99%
Total Impressions for our
social impact content =1.3 Million
1% Functional
Products PERFORMANCE
V-shapes equipment
Operating Revenue +37.0% YoY
15% E-commerce
Business
Revenues from
EBITDA +28.2% YoY
Normalized Net Profit -38.3% YoY
BOOSTED NRF Corp.
40Overall Operating Revenue Breakdown by Region
OPERATING REVENUE
Million Baht, %
Revenue from Europe Revenue from Asia
+20% YoY -48% YoY
Revenue from America +10% QoQ Europe -15% QoQ
+115% YoY
124
Asia
103 113
-10% QoQ 54
28% 6%
32 28
America Q2/20 Q1/21 Q2/21
Q2/20 Q1/21 Q2/21
Q2/20 Q1/21 Q2/21
49%
Revenue from Thailand
-4% YoY
Revenue from 11% -21% QoQ
Oceania& Africa
+61% YoY 50 61 48
+21% QoQ
6%
29 Q2/20 Q1/21 Q2/21
24
18 Oceania
& Africa
Q2/20 Q1/21 Q2/21
89% Revenue from Foreign Countries 11% Revenue from Thailand
• America, Europe and Oceania & Africa have shown significant growth when compared to Q2/2020
• Due to the cargo shortages and increasing freight as a result of global logistics issue, some regions experienced a drop in revenues, especially in Asia.
• Revenues from Thailand has fallen, as a result of lower orders from Re-exporting customers, who has also impacted from the global cargo shortage issues.
411H/2021 Business Overview by Business Lines
82% of 1H/2021
Operating Revenues 5% of 1H/2021
Operating Revenues 2% of 1H/2021
Operating Revenues
1 Ethnic Food 2 Plant-based 3 Functional Products
Current Products Example Sales of V-shape Machine and
48% Recipe Mix equipment To Fluid Energy
• Plant-based Meal Kits
• Konjac Noodles Ready-to-Eat Meals
26% Ready-to-Eat • Dry and flavored Jackfruit meat
• Eggplant for Sushi
21% Basic Seasoning • Plant-based Sauces
Future Products Example
5% Others • Plant-based Fresh Meat
• Soy Milk
70% 30% 99% 1%
OEM Own Brand OEM Own Brand
2,000 SKUs and 200 Brands
for OEM production
Over 30 SKUs 11% of 1H/2021
Operating Revenues
for OEM Production
with 7 own brands 4 E-commerce
OEM Brands: Partners/Customers: Building E-commerce platform,
acquiring category leading food and
consumer products , upselling NRF
products on online channels
Own Brands:
Consumer E-Commerce
Distributors: NRF Corp.
42Ethnic Food Revenue Breakdown by Business Model
OPERATING REVENUE - ETHNIC FOOD
Million Baht, %
YoY: Q2/2021 vs Q2/2020:
+41.7% YoY 27.2% In Q2/2021, Revenues from ethnic food was Baht 365 million, increased by
Baht 78 million or 27.2% mainly due to:
YoY
748 ✓ OEM Business: increase in revenue from existing customers of both
NRF and City Food in North America and European regions, mainly
from Recipe Mix and Ready-to-Eat products
✓ Own Brand: slight decrease in revenue mainly from lower orders of
Recipe Mix products such as shrimp and crab pastes from existing
26% Own Brand customers in the United States
QoQ: Q2/2021 vs Q1/2021:
+27.2% YoY 528 4.9%
In Q2/2021, Revenues from ethnic food was Baht 365 million, decreased by
Baht 19 million or 4.9% mainly due to:
-4.9% QoQ QoQ
✓ Own Brand: decrease in revenue of Recipe Mix products from existing
29% customers in North America as a result of cargo shortages and
384 shipment delays from global logistics issues (valuing 100MB). If NRF
365 was able to fulfill all shipments, revenue performance would be as
planned
✓ OEM Business: increase in revenue from all product categories
30% 23%
287
74% OEM 1H: 1H/2021 vs 1H/2020:
41.7% In 1H/2021, Revenues from ethnic food was Baht 748 million, increased by
30%
Baht 220 million or 41.7% mainly due to:
71% YoY
✓ OEM Business: increase in revenue from higher order volumes, from both
70% 77% NRF and City Food major customers in North America and Europe
regions
70% ✓ Own Brand: increase in revenue from higher order volumes of all
product categories to America and Europe regions
Q2/20 Q1/21 Q2/21 1H/20 1H/21 43Q2/2021 Normalization Item Breakdown
Q2/2021 Normalized Net Profit Breakdown
Unit: Million THB
Normalization Items
Investment-
related Fees
16
Interest and Front-end Amortization of
Fees of Business Customer Relationship
Acquisition Loans
13
44Key Financial Ratios
FINANCIAL RATIOS
Inventory Holding
Current Ratio Period Payment Period
Quick Ratio Collection Period
Inventory Turnover
Days Days Days
54 51 64
50 48
43 52
38 45
Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21
Current
ROARatio ROE
ROE ROA
Times 4.9% 4.6%
1.2 6.6%
1.1 6.0% 6.1%
1.1 3.1%
Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21
D/EROA
Ratio Net Debt/Equity
ROE Net Debt/EBITDA
D/E Ratio
Times 1.3 Times Times
0.8 3.6
0.5 0.5
1.0 1.2
0.1 0.2
Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21 Q2/20 Q1/21 Q2/21
45Appendix 3
Industry research
Plant-Based
46Earth is warming faster than previously thought
IPCC Human Contributed to Hotter Weather Confidence Level Effects to Global Climate
Increasing of drought and fire danger
• More than 95% of the Western United
State is facing drought on summer 2021
• Hydroelectric power plant was shut down
due to low level of water in reservoir
• Wildfire seasons are longer and more
destructive than usual due to climate
change
More frequent flooding
• With the increase of 1 Celsius degree, The
+7% rain can hold more than 7% of water vapor
• The rainfall rates as well as the amount of
precipitation also increase in line with
Confidence Level
higher temperature
Low Medium High
Worsening hurricanes
• IPCC assessed confidence level of human contribution to hotter weather since
1950 by regions • More intense of hurricanes, typhoons and
• Asia, Europe and North America has high confidence level for contributed to cyclones
higher global temperature by human activities +maximum
• Increasing maximum wind speed
• With the higher weather, there are 3 key effects to global climate including the wind speed
• Extensive coastal flooding
increase of drought, more frequent flooding and worsening hurricanes
Source: CNNWhat is the Definition of Plant-Based?
What is Plant Based?
Plant-based products are defined as direct replacements for animal-based products.
For example: plant-based meat, seafood, eggs and dairy
Fully plant- Hybrid Fully
based Products Cultivated
Includes
Tofu & Tempeh Plant-based Plant-based
Tofu Plant-based Synthetic
Meat Milk burger with gelatin
Biomimicked meat, eggs, and cultivated fat
dairy (e.g. Beyond Meat)
Functional meat replacement
made from plants (e.g. tofu,
Egg Substitute Meals Other Dairy
Does Not
tempeh, jackfruit, seitan)
Alternatives Include
• Cheese
Meals with animal ingredients • Yoghurt
replacement (e.g. Amy’s frozen • Ice cream and frozen novelty & desserts Inherently plant-based food
meals) • Butter
(e.g. Kale, Chickpeas)
• Plant-based dairy spreads, dips, sour cream &
sauces
• Ready-to-drink beverages B2B ingredient companies
Fungi-and-algae-based
• Creamers (e.g. Trophic, Duckweed)
products (e.g. Quorn) • Plant-based condiments, dressing & mayo
48
Source: The Good Food InstitutePlant based 2.0 will reframe the category by 2023 disrupting meat
and plant-based brands
Meat Products Dairy Products
Animal-based Meat Plant-based Meat Animal-based Dairy Plant-based Dairy
✓ Beef ✓ Plant-based Ground ✓ Milk Cheese ✓ Plant-based Cheese
✓ Chicken ✓ Biomimicked meat ✓ Yoghurt ✓ Plant-based Yoghurt
✓ Pork ✓ Plant-based sausage ✓ Butter ✓ Ice cream and frozen
✓ Bacon ✓ Pea Protein ✓ Dairy spreads novelty & desserts
✓ Salami ✓ Creamers ✓ Plant-based Butter
✓ Sausages ✓ Plant-based dairy spreads,
✓ Peperoni dips, sour cream & sauces
✓ Plant-based Creamers
49PLANT-BASED
KEY FACTS : WHAT’S NEW IN 2021 FOR PLANT-BASED?
Not only that Plant-based Food
benefit your health, research has
shown that it can also benefit the
environment and highly sustainable
when compared to normal meat
production
87% LESS New Waves of Plant-Based Options Upgrade of Cheese
WATER Seafood Substitutes for Kids Alternatives
Some brands start to drop plant- Plant-Based Companies start Plant-Based cheese makers are
based tuna and use mushroom to provide plant-based snacks successfully found ways to make
96% LESS for scallops and use plant-based
ingredients to mimic the real-
for kids such as yogurts tube, dairy cheese more authentic in
nuggets and ice pops textures and flavors
LAND texture of seafood
89% LESS
EMISSION
92% LESS Sustainable Packaging Beyond Veggie Burgers
AQUATIC Plant-Based Companies take Many companies introduce
POLLUTANTS packaging innovation seriously new tasty plant-based
by using packaging that make alternatives beside burgers
from composable, recycled or including hotdogs, Italian-style
Source: BofA, KKP Research, Business Wire biodegradable materials sausages and jackfruit BBQ 50Plant based is mainstream and this is an imperative
Plant-based to Become Key in Cargill Portfolio Global Plant-based Meat Market Projections
Share of
Projected Market Size Meat Market
Unit: USD Billion
A.T.
370 23%
(2035)
Kearney
J.P.Morgan 7%
100
• David MacLennan, the CEO of Cargill, US-
(2035)
based major global agricultural company,
announced that plant-based will become key
sector in its portfolio
“Our analysis [suggests] that in 3-4 years UBS 85 6%
plant-based will be perhaps 10% of the (2030)
market.”
51Global plant-based foods market will see a strong and steady growth
with Asia Pacific projected to be the rising star
Global Plant Based Market by Type APAC Q2 Updates
Unit: Billion USD 2020-2026F
58.4 CAGR APAC market size reached 163 million USD (2020)
52.9
47.9 23% Other
43.4 23% Growing adoption of emerging
39.3 +8.7%
35.6 23% 14% technologies for product innovation
24% 14%
24% 13% Meat
24% 13%
21.2 23.1 12% +14.0% • Hybrid chicken • Chulalongkorn’s
12% nugget infused Immune Boosting
63% with plant plant based meat
63% 63% protein eyeing
63% 63% 63% won ProVeg Asia’s
for China and 2021 award
Dairy Singapore
+10.3%
2018 2019 2020 2021F 2022F 2023F 2024F 2025F Increasing large number of key players
First Pride • Raised Series B
• Global Plant Based Market is forecasted to grow by 10.4% CAGR between 2020-2025F •
funding (45 million
nugget
and reach 58.4 billion USD in 2025F launched in EUR) to expand into
• Dairy Products has the largest proportion while Meat has the highest growth of Malaysia in the Asia and Europe
14.0% CAGR coming months
Increasing Vegan Higher Investment in Collaboration of international and
Population Plant-Based Food domestic food companies
Key
Drivers • Indonesian Green Butcher’s beefless steak
More development of Increasing intolerance partnered with Japanese Pepper Lunch in Indonesia
innovative products of animal proteins
Increasing government investment in
Plant Based Food Regional Growth APAC has the highest growth
R&D
North Europe
America • Avant (CN) invested • Singaporean
11.6% new R&D plant for government
14.1% Asia Pacific + cell based meat invested 72 billion
Singapore as China as the with SG Econmic USD in climate
15.9% Development and food security
the most biggest market
Board plan
robust
Source: Statista, Meticulous Research, Markets and Markets, imarc, Foodabletv, EY, Euromonitor, Poultry World, BCG 52Interacting Paths are followed by consumers who want to eat more
Plant-Based Food which is approximately 54% according to Hortman Group
Three Interacting Paths to Plant-Based Plant-Based Food Consumers by Generation
Consumers mostly change their orientation to animal products by
taking interacting paths as follows:
of all consumers would like
54% to eat more Plant-Based
food and beverages
Trading up within Animal Products
• Switching red meat for white meat or
01 fish
• Buying only higher-quality products
e.g. grass-fed, organic, pasture-raised
52% 58%
Reduction of Animal Products Of Millennials and of Baby Boomers
Gen X Consumers
02 • Reducing frequency of consumption
Consumers
• Reducing portion size
24-55 years old 56-74 years old
Age
Trading in Plants
Major Concern
• Increasing Vegetable portion size on Animal Welfare
03 plate
• Replacing some meat and dairy with
Health Concern
plant-based
• Incorporating more vegetarian-
focused cuisines Environmental Impact
53
Source: Hartman GroupCOVID-19 reshapes our homecooking culture to be more diversified and
convenient resulting in normalization of ethnic foods consumption
Global Ethnic Foods Market by Type Key COVID structural shifts
Unit: Billion USD
Key behaviors to continue in post COVID era
79.65
71.24 Deloitte’s global consumers’ survey (40K participants from 18 countries)
63.72
57
45.6 50.98
35.47 40.22
Cook at Home Buy Fresh Food Work from Home Shop Online
Home Cooking is likely to continue in post COVID future due to
2018 2019 2020 2021F 2022F 2023F 2024F 2025F ▪ Work from home would likely to be
continued as well as infrastructure for online
• Ethnic Foods Market is forecasted to grow by 11.8% CAGR between 2020-2024F Structure grocery is proven to operate efficiently
and expected to reach 79.56 billion USD in 2025F ▪ Pandemic has left at least some level of
financial difficulty, and that home
Economics cooking is proven to save more money
Direct to consumer shift from online derlivery
▪ Consumers now have more options to
buy healthier ingredients, try new recipe
Normalization through social media breaks adoption barrier and reduce waste from take away
Key Preferences
Drivers Expansion of cultural awareness through soft power
COVID reconfigures why and how we consume
Demographic shift from growing millenials to global skill ethnic foods
workforce migration
Cultural curiosity among gen Y and Z:
Before: Ethnic foods are discovered from Now: Consumers recreate experience at home learning through flavours
Brands came to rescue customers from
+ + their longing of living the experience
Travel Abroad Restaurant Local Grocer Online Delivery Social Media breaks Cook at Emerging softpower of social media
• Grocery adoption barrier Home • Virtual traveling and cooking class in
• Restaurant Youtube providing both context for cooking
as well as content for international audiences
From feeding people to teaching them how to feed themselves
Source: Deloitte, BOLD Business, Mordor Intelligence, Specialty Foods Association, Mintel, Euromonitor, The Guardian 54Global plant based ingredient market is the rising underdog due to its
unfold potential while ready to eat products are key criterions in
assessing market maturity
Global Plant Based Ingredient Market by Type Market Maturity Ranked by Ready to Eat
Unit: Billion USD
While most countries have raw cooking products
available, Ready to Eat products are what distinguish
31.2
level of market maturity apart
22.9
16.9
12.4
9.1
6.7 Tier 1: Red Ocean
Markets with local many brands specialized in ready to eat brands
2020 2021F 2022F 2023F 2024F 2025F
High Consumer Responsiveness (Flexitarian)
High Vendor Robustness
• Global Plant Based Ingredient Market is forecasted to grow by 36% CAGR
Up to Date Regulation
between 2020-2025F and reach 31.2 billion USD in 2025F
Decreasing cost overtime for production Tier 2: Moderate Blue Ocean
technology Markets with a few brands specialized in ready to eat brands
Key Growing advancement in biotech
Moderate Consumer Responsiveness (Flexitarian)
Drivers
Moderate Vendor Robustness
Cross combination with biotech (Cell based fat) Not up to Date Regulation
Plant based meat are becoming more identical Tier 4: Blue Ocean
Categories
▪ Soy-bean (Beef & Pork) Microscopic View Markets with no existing ready to eat brand
▪ Mung Bean (Chicken)
High Consumer Responsiveness (Flexitarian)
▪ Jackfruit (Pulled Pork &
Seafood) Moderate Vendor Robustness
▪ Etc. (More to come)
Not up to Date Regulation
Beyond’s Pork tissue Pork tissue
Sources: Packaged Facts, Pique News Magazine, Sustainalytics, Green Queen, Food Frontiers, Local Custom Websites, Marketing Oops. , Ipsos, Insider South Africa, Vegconomist, Green Queen, Nutraingredients Asia 55Amazon will be the goliath in global ecommerce landscape and a
main vessel for US Market penetration
Global Ecommerce Market Overview Amazon Performance
Unit: Trillion USD 7.39
6.77 Market Share Worldwide (2020) Key Milestones
5.55 6.17
4.92 RoW By 2021
4.213
2.98 3.35 12%
• Half of US
5% ecommerce
7%
2018 2019 2020 2021F 2022F 2023F 2024F 2025F
By 2022
8% • The largest US
• Global ecommerce market is expected to grow at 14% CAGR to reach 7.39 trillion USD by the 68% retailers
year 2025F
• Market Share: 1st China (52.1%) followed by US (19.8%) & Market Growth: 1st India (27%)
• Almost 1/5 (18%) of categories sold are healthcare products
Rise of internet penetration accelerated by COVID
Key
Permanent shift to online shopping likely to continue Q2 Result: Amazon net sales has increased by 27% YtY and
Drivers
Advancement of innovation in operation efficiency reached record of 113.1 billion USD
Amazon Retail Ecommerce Sales Overview Online Stores +16% 3rd Party Seller +38%
Subscription +32% AWS +37% Retail Store +11%
Unit: Billion USD 1,546.18
1,217.39
958.52 Q2 Growth Drivers and What to Anticipate
754.70
626.56
495.53 US economy regains momentum due to vaccination
292.97 348.63
and stimulus package
2018 2019 2020 2021F 2022F 2023F 2024F 2025F Expansion of infrastructure to support behavioral shift
• Expansion of Prime services over 22 countries
Amazon infrastructure payoffs as COVID ravages • Introducing Amazon Pharmacy and other specialized
subscription service
Key Utilization of technology innovation in value chain (I.e, automation and drone) • Further integration of cloud business, entertainment
and retails into lifestyle
Drivers Extreme proficiency in supply chain management (I.e, buying new 737 cargo)
New CEO (Andy Jassy) will hold office in upcoming Q3
Integration of digital platform to become lifestyle (I.e, Prime Service)
56
Source: Business Insider, Statista, Forbes, Barron’s, Digital Commerce 360, AmazonAppendix 2
Industry research
E-commerce
57Business Insider’s Forecast in ecommerce and Amazon
Retail Ecommerce Sales Worldwide Amazon Retail Ecommerce Sales
Unit: Trillions USD, % Unit: Billion USD, %
Amazon
754.70 Retail
7,385 Retail
ecommerce ecommerce
6,773 sales sales
6,169 626.56
5,545
4,921 495.33
4,213
3,351 348.63
25.7% 24.5% % of total 42.1%
23.4% 292.97
22.4% retail sales
20.5% 21.0%
19.6%
17.8%
13.8%
16.8% 19.0% 19.0% 26.4% % Change
12.7% 20.5%
11.2% % Change
9.8% 9.0%
2019 2020 2021 2022 2023 2024 2025 2018 2019 2020 2021 2022
58
Source: Business InsiderContribution of third party seller in Amazon: Estimated 60% of net
sales in 2021
Share of paid units sold by third-party sellers on Amazon
Unit: Share of Paid Units
55% 55% 56%
52% 53% 53% 52% 53% 54% 53% 53% 52% 53% 54%
51% 50% 51%
49% 50% 49% 50%
46% 47% 48%
44% 45%
42% 43%
40%
26%
59
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