JB Foods Ltd. · SGX:BEW
JB Foods — Shareholder Meeting (June 2020)
29 slides from JB Foods's shareholder meeting presentation, Jun 23, 2020
Slide 1: JB Foods Limited AGM Shareholders' Presentation
JB FOODS LIMITED AGM Shareholders’ Presentation 23 June 2020
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Outline
Outline Cocoa Bean Grinding and Production Statistics Pg. 5 Introduction Milestone Pg. 7 Group Structure Pg. 8 Our Management team Pg. 9 Our Products Pg. 10 Our Presence Pg. 11 Business Performance Review Financials Pg. 12 to 21 JB Sustainability team Indonesia Pg. 22 JB Strength, Expansion & Strate
Slide 4: Cocoa Bean Grinding & Production Statistic
Cocoa Bean Grinding & Production Statistic 4
Slide 5: Cocoa bean grinding and production
Cocoa bean grinding and production 4700.0 COCOA GRINDINGS) 4200.0 3700.0 3200.0 2700.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Bean grinding ('000 MT) 3,065 2,886 3,078 3,238 3,363 3,508 3,661 3,749 3,490 3,737 3,938 3,972 4,180 4,335 4,152
Slide 6: Introduction of JB Foods
CZ JBCOCOA Introduction of JB F@gg@s
Slide 7: Milestone
Milestone 2013 to 2016 to 2000 2012 2015 2020 Completion of 3rd factory – JB Cocoa Trading offices China. Incorporation of JB Cocoa Incorporation of Cote D’Ivoire 1st factory - USA/Eastern Europe/Indonesia IPO in Singapore Switzerland, Estonia Malaysia 2nd Factory - Indonesia subsidiary subsidiary.
Slide 8: Group Structure
Group Structure JB Foods Limited JB Cocoa Europe JB Foods Global JB Cocoa AG JB Cocoa Sdn Bhd OU Pte Ltd (Switzerland) (Malaysia) (Estonia) (Singapore) JB Cocoa Trading JB Cocoa Holding (M) Sdn Bhd Inc (Malaysia) (USA) PT Jebe Trading Indonesia JB Cocoa CI JB Cocoa Inc (Indo) (Cote D’Ivoire) (USA) J
Slide 9: Directors and Management Teams
Directors and Management Teams Board of Directors Strategic Business Direction Group CEO, Business Development Group Trading & Financials / Risk Operations, Project, Group Sales & Procurement, Management / Quality, Technical Marketing, R&D Sustainability Compliance Management 10 30 20 50 9
Slide 10: Our Products
Our Products Cocoa Beans More than 90% of our revenue are derived from Cocoa Powder & Cocoa Liquor/Mass Cocoa Butter Cocoa Cake Cocoa Butter Cocoa Powder 10
Slide 11: Our Presence
Our Presence Regional Trading & Sales Office Manufacturing & Warehouse Asia – 4 Employee : 600 Asia – 3 Europe – 2 Asia – 590 America – 1 America – 1 America & Europe - 10 11 Europe - 1 Africa - 1
Slide 12: Business Performance Review
BUSINESS PERFORMANCE REVIEW 12
Slide 13: Financial Highlights – At a glance
Financial Highlights – At a glance (In US$'000) FY2019 FY2018 Y-on-Y Change Revenue 352,494 327,114 8% EBITDA 43,033 41,633 3% PAT 26,223 26,785 -2% FY2019 FY2018 Y-on-Y Change ROE (%) 20% 26% -23% Dividend payout 23% 25% -6% EPS (US cents) 8.6 9.1 -5% NAV per share (US cents) 46.64 40.26 16% 13
Slide 14: Sales by Region/ Country
Sales by Region/ Country 2019 2018 2017 Revenue USD'000 USD'000 USD'000 America 100,893 29% 92,274 28% 74,665 25% USA, China and USA 83,479 24% 83,017 25% 67,749 23% Russia, remains Others 17,414 5% 9,257 3% 6,916 2% our top 3 revenue Asia China 135,236 33,363 38% 9% 143,327 41,454 44% 13% 131,749
Slide 15: JB Foods Performance
JB Foods Performance Revenue (USD'm) PBT (USD'm) 352.5 34.1 327.1 32.7 300.1 295.6 226.5 16.9 4.4 2.4 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2019 financials • 5 years CAGR at 9.3% in revenue; • 5 years CAGR at 68.6% in our profitability (“PBT”). 15
Slide 16: JB Foods banking trade facilities
JB Foods banking trade facilities 2011 2012 2013 2014 2015 2016 2017 2018 2019 USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil Banking Facilities 64.7 78.0 109.5 113.4 115.0 130.0 150.0 199.8 223.0 Utilisation 44.4 53.6 87.4 102.6 85.2 101.6 78.5 80.3 168.7 % of headroom 31%
Slide 17: Shareholders' Equity (USD'm)
Strong financial position 150 65.0 • Well- capitalised with 140 62.0 shareholders’ equity at SHAREHOLDERS' EQUITY (USD'M) 130 59.0 USD141m (approximate NAV PER SHARE (SGD CENTS) 120 56.0 SGD192m) as at 31.12.19. 110 53.0 (Exchange rate of USD to 100 50.0 SGD: 1.36) 90 47.0 80 44.0 70 41.0 • Share pr
Slide 18: Profit and Loss Analysis
Profit and Loss Analysis (In US$'000) FY2019 FY2018 Y-on-Y Change Explanatory Revenue 352,494 327,114 25,380 8% N1 Cost of sales (300,622) (277,673) (22,949) 8% Gross profit 51,872 49,441 2,431 5% GP margin 14.7% 15.1% -0.4% Interest income 89 110 (21) -19% Other gains, net 1,418 1,332 86 6% Selling
Slide 19: Balance Sheet Analysis
Balance Sheet Analysis 2019 2018 Extract of Balance sheet USD'000 USD'000 Variance 2019 2018 Non-current assets 95,918 75,356 20,562 27% Extract of Balance sheet USD'000 USD'000 Variance - #DIV/0! PPE 80,493 68,075 12,418 18% N1 Current liabilities (213,318) (120,783) (92,535) 77% Investment propert
Slide 20: Cash Flow Analysis
Cash Flow Analysis 2019 2018 Statement USD'000 USD'000 Explanatory Operating cash flows before Higher operating cashflow outflows mainly incur in working capital changes 40,286 40,553 maintain higher raw materials to cater for increased in the shipment demand, and higher FG inventories as part of Ch
Slide 21: JB Cocoa Sustainability team - Indonesia
JB Cocoa Sustainability team - Indonesia
Slide 22: Sustainability teams – Sulawesi, Indonesia
Sustainability teams – Sulawesi, Indonesia • 20 staffs • 3000 cocoa farmers • 4000 hectares • 450kg certified bean per hectare (350kg from 2018) • Lead Farmer program - Provide coaching and training on GAP & Forest protection - Nursery & Demo Plot program 22
Slide 23: JB Cocoa Competitive Strength & Strategy
JB COCOA COMPETITIVE STRENGTH & STRATEGY
Slide 24: JB Cocoa Competitive Strengths
JB Cocoa Competitive Strengths Loyal and supportive customer • Mars, Nestle, Mondelez and Hersheys are our long base standing customers • Efficient and nimble decision making Management focus • Focus on product development and service quality • Management – strong experience in cocoa industry • Capa
Slide 25: Our Growth Strategy
Our Growth Strategy
Slide 26: Our Growth Strategy
Our Growth Strategy Sustainable Growth • Consistent growth in revenue Financial • Robust balance sheet with healthy gearing ratio • Ample financial headroom for contingencies Procurement • Strengthen our Indonesia bean procurement • Develop cocoa bean sustainability team in West Africa Operations •
Slide 27: Key Takeaways
Key Takeaways
Slide 28: Key Takeaways
Key Takeaways Cocoa terminal prices remains volatile (weather, crops yield, supply & demand from grinding and consumptions) Headwinds and uncertainty in the Cocoa market due to Covid-19 pandemic and effect of LID on cocoa beans in Ivory Coast and Ghana Balanced business growth strategy Expand existi
Slide 29: Thanks!
Be JBCOCOA THANKS!