Pt Ultrajaya Milk Industry & Trading Co. Tbk · IDX:ULTJ
Pt Ultrajaya Milk Industry & Trading Co. Tbk — Investor Presentation (December 2021)
34 slides from Pt Ultrajaya Milk Industry & Trading Co. Tbk's investor presentation, December 2021
Slide 1: Company Presentation December 2021
Company Presentation December 2021
Slide 2: Company Overview
SEHAT MT, NATURE N IN GOOD g AMBIL PILIHAN HANDS ULTRAJAYA Company Overview
Slide 3: Company Overview
Company Overview Pioneer in Ultra High Temperature ("UHT") processing in Indonesia, partnering with Tetra Pak since 1975. 3Q2021 Revenue: IDR 4,792 bn Largest manufacturer of UHT liquid milk in Indonesia vs. LY +7.8% 1 Market share of 35% in UHT liquid milk products¹ 2 Largest manufacturer of RTD
Slide 4: Business Overview
Business Overview Dairy • #1 in UHT liquid milk with 35% market share • Offer a variety of products with different flavours and target customers Ultra Milk brand for adults and young children, 01 Low Fat Hi Cal brand for health conscious customers Ultra Ultra Mimi brand for young children Sw
Slide 5: Associated Company & Subsidiaries
Associated Company & Subsidiaries SABANA PRAWIRAWIDJAJA PT PRAWIRAWIDJAJA PRAKARSA PT ULTRAJAYA MILK INDUSTRY PUBLIC (TREASURY STOCK) 44% 21% 10% 25% PT ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk. 30% 70% 60% 50% 69% 25% 85% 75% PT KRAFT PT NIKOS PT ITO-EN PT NIKOS PT ULTRA SUMATERA PT MENARA ULT
Slide 6: Business Strengths
NATURE INGOORY HANDS ULTRAJAYA Business Strengths
Slide 7: Business Overview
Business Overview 01. INDUSTRY FUNDAMENTALS ARE STRONG 02. LEADING MARKET POSITION 08. HIGHLY EXPERIENCED MANAGEMENT TEAM 01 POISED TO CAPTURE CONTINUED GROWTH 08 02 03. PRESENCE IN MULTIPLE CATEGORIES 07. GROWING SUPPLY OF HIGH QUALITY FRESH MILK 07 03 AND TRACK RECORD OF PRODUCT DEVELOPMENT 06 04
Slide 8: 01. Robust Industry Fundamentals
01. Robust Industry Fundamentals The year 2021 has shown recovery in many aspects and the industry fundamentals remain strong in terms of country and the market we operate in. Indonesia has shown fast real GDP growth again and has significant upward potential in GDP per capita. In addition, Indonesi
Slide 9: 01. Robust Industry Fundamentals (cont')
01. Robust Industry Fundamentals (cont’) Strong growth of the liquid milk segment, which consists mainly of UHT milk DAIRY Market size Liquid Milk (IDR mio) 2020 consumption per capita (L) Key characteristics / trends 53.2 34.1 16.6 14.8 Urbanization and increasing disposable income 75 strengtheni
Slide 10: 02. Leading Market Position to capture expected growth
02. Leading Market Position to capture position expected growth We are a leading player in fast growing consumer segments in Indonesia with award-winning brands Competitive landscape and market share YTD 30 September 2021 Largest in UHT milk and RTD tea in carton packs UHT milk volume share2 segment
Slide 11: 03. Presence in multiple categories and track record of product development
03. Presence in multiple categories and track record of product development Penghargaan Merek/ Sertikat-sertifikat Forbes Youtube Most Supportive Top 10 Strongest RTD Flavoured Milk Most Recommended Brand Indonesia Best Brand "Ultra Milk" – Top Best 50 Public List LeaderBoard 2020 Sponsor 2019 Local
Slide 12: 03. Presence in multiple categories (cont'd) - Ultrajaya Milestone
03. Presence in multiple categories and track record of product development (con’t) Ultrajaya Milestone We have continued to introduce new product categories and have developed products for different segments to expand our product reach. 2019 Additional 1.600 cows arrived in USDF
Slide 13: 04. Vertically integrated and Highly-Automated production facilities
04. Vertically integrated and Highly-Automated production facilities Our production process is highly-automated with UHT treatment technology and an integrated aseptic packaging system Vertically integrated production process across all products Highly-automated production process with minimal h
Slide 14: 05. Stringent quality controls across entire production chain
05. Stringent quality controls across entire production chain We consistently produce high quality products by implementing strict monitoring and quality control systems throughout our operations 1 Full traceability and tracking of our products 2 Quality checks at multiple stages 3 No product recall
Slide 15: 06. Extensive nationwide distribution network
06. Extensive nationwide distribution network We operate an extensive nationwide distribution network both in Java and to other regions Within Java – sales to modern retail through our own sales force and to traditional retail through our subsidiary – approximately 65,000 points of sale Outside
Slide 16: 07. Growing Supply of high quality raw milk
07. Growing Supply of high quality raw milk We maintain a collaborative relationship with local dairy farmers to ensure consistent supply of high quality raw milk and aim to become less dependent on imported milk products with highly fluctuating prices and exchange rate Dairy Farmers Cooperatives –
Slide 17: 07. Growing Supply of high quality raw milk (cont')
07. Growing Supply of high quality raw milk (cont’) We maintain a collaborative relationship with local dairy farmers to ensure consistent supply of high quality raw milk Our farm in Berastagi, North Sumatera ● We have identified the need to further invest in milk availability ● Climate in area is f
Slide 18: 08. Highly experienced Management Team
08. Highly experienced Management Team Rob Nieuwendijk Sabana Prawirawidjaja Chief Financial Officer Founder & President Director • Has been with Ultrajaya since 2011 SENIOR MANAGEMENT • Previously held senior management positions for leading dairy • One of the founders of the Company. Appointed as
Slide 19: Strategies
ULTRAJAYA Strategies U NATURE IN GO! HAN
Slide 20: Strategi-strategi
Strategi-strategi Further optimize our distribution platform, ensuring optimal availability nationwide Further expand our production and warehousing capacity Continued focus on new product development Expansion of Dairy Farming operations to secure supply source Continued investment to improve opera
Slide 21: 1. Further optimize our distribution platform
1. Further optimize our distribution platform, ensuring optimal availability nationwide Within Java Outside Java FOCUS: Increase penetration of modern and traditional retail FOCUS: Support distributors expanding their reach PLANS: PLANS: Expand the sales team on the ground Focus on distrib
Slide 22: 3. Continued focus on new product development
3. Continued focus on new product development Joint Venture with Ito En Develop Tea Segment in carton pack Combine significant product expertise Ito En with our on the Continue to monitor the market for new opportunities for ground presence and knowledge potential product launches Flexible app
Slide 23: 4. Expansion of Dairy Farming operations to secure supply source
4. Expansion of Dairy Farming operations to secure supply source Model Farm” South of Bandung Dairy farm JV in Sumatra 2000+ milking cows Long term plan for farm with 6,000 milking cows, with 2 rotary milking parlors > 10 years experience 69-31 JV with PT Karya Putrajaya Persada, a local par
Slide 24: Corporate Actions
Corporate Actions Distribution of dividends on net income Issuance of Ultrajaya Medium Term Shares Buyback for the financial year 2020 Notes (MTN) 2020 • Rp 85 (full amount) cash dividends per • Referring to OJK Circular Number 3 / • Information Disclosure is published on share SEOJK.04 / 2020 dated
Slide 25: Financial Highlights
NATURE INGOOR J HANDS ULTRAJAYA Financial Highlights
Slide 26: Financial strategies
Financial strategies Historically, our business has been demonstrating strong growth momentum and robust profit generation capability Sales and growth (IDR bn, %) Gross Profit and Margin (IDR bn, %) - 4.1% +7.8% 37.6% 37.3% 6,223 5,967 37.4% 35.4% 4,444 4,792 2,342 2,229 1,685 1,698 2019 2020 3Q2020
Slide 27: Segments Net Sales breakdown
Segments Net Sales breakdown Our own branded products for the Indonesia market have performed strongly. Key factors for growth remain. Dairy (IDR bn, %) Tea and Health drinks (IDR bn, %) Other (IDR bn, %) +1.2% -15.3% 4,437 4,385 +8.9% 3,254 3,542 +6.3% + 6.3% 1,376 1,165 862 916 410 +2.6% 417 328 3
Slide 28: COGS Breakdown
COGS Breakdown Some anticipated margin erosion happened in 2021. Material costs have increased substantially and we believe the consumer was not ready to accept price increases. Cost control and increased efficiency could only partially compensate for the material costs increase COGS Breakdown (IDR
Slide 29: Operating Expenses
Operating Expenses Operating expenses are under control Selling expenses breakdown (IDR bn, % of NS) General and admin expenses breakdown (IDR bn,% of NS) 14.3% 13.0% 891 12.4% 774 9.5% 3.3% 3.9% 550 3.7% 231 4.0% 458 203 179 158 2019 2020 3Q2020 3Q2021 2019 2020 3Q2020 3Q2021 Salary & wages Adverti
Slide 30: Operating Cash Flow and Capex
Operating Cash Flow and Capex Cash flows historically have been sufficient to fund capex requirements Operating Cash Flow (IDR bn) Capex (IDR bn) 1,097 1,217 1,198 933 304 402 312 171 2019 2020 3Q2020 3Q2021 2019 2020 3Q2020 3Q2021 • Cash flow from operating activities historically have been suffici
Slide 31: Summary Highlights
NATURE IN GOOD g HANDS ULTRAJAYA Summary Highlights
Slide 32: Income Statement
Income Statement Full Year Quarter 3, (IDR million) 2019 2020 2020 2021 Revenue 6,223,057 5,967,362 4,443,642 4,792,085 COGS (3,881,051) (3,738,835) (2,758,201) (3,094,091) Gross profit 2,342,006 2,228,527 1,685,441 1,697,994 Selling expenses (890,515) (773,759) (550,501) (457,525) General & adminis
Slide 33: Balance Sheet
Balance Sheet As of December 31st As of Sept 30st (IDR million) 2019 2020 2020 2021 Current assets Cash 2,040,591 1,649,669 710,205 2,736,138 Trade receivables 613,245 563,444 542,270 620,794 Inventories 987,927 924,639 1,094,795 700,571 Others 74,878 2,455,669 96,003 2,442,740 Total current assets
Slide 34: Cash Flow Statement
Cash Flow Statement Full Year Quarter 3, (IDR million) 2019 2020 2020 2021 Cash flow from operations Cash receipts from operating activities 1,191,164 1,471,088 963,666 1,295,018 Interest income 105,655 58,666 91,953 100,702 Interest expense (1,463) (27,785) (262) (185,438) Income tax (278,947) (321
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