24 slides from Pt Japfa Comfeed Indonesia Tbk Class A's earnings presentation, 2021
Slide 1: PT Japfa Comfeed Indonesia Tbk 9M2021
PT JAPFA COMFEED INDONESIA Tbk 9M2021 Memperkokoh Sinergi Untuk Masa Depan yang Berkelanjutan Strengthening Synergies for a Sustainable Future
Slide 2: Index
Index Company Overview Key Investment Highlights Financial and Operational Highlights
Slide 3: Company Overview
e ID oes COMPANY OVERVIEW
Slide 4: Vertically Integrated Business Model
Company Overview Core competencies across the value chain POULTRY AQUACULTURE BEEF CATTLE UPSTREAM ANIMAL FEED VERTICALLY INTEGRATED BUSINESS MODEL PRODUCTION UPSTREAM BREEDING MIDSTREAM COMMERCIAL FARMING DOWNSTREAM PROCESSING DOWNSTREAM CONSUMER PRODUCTS 3
Slide 5: Industrialized approach drives operational and financial benefits
Industrialized approach drives operational and financial benefits A Scale B Technology & genetics – 2nd largest feed and DOC producer in Indonesia with – Exclusive relationship with Aviagen for the sourcing significant scale across the value chain: of grandparent stock with superior genetics which i
Slide 6: Japfa: Well positioned for long-term growth
Japfa: Well positioned for long-term growth Poultry leader in Indonesia − Cattle fattening − 2nd largest poultry feed producer in business in Indonesia Indonesia − Core business and stable segment of − Aquaculture is primarily a the value chain feed business with some Beef Trading − Cost plus pricin
Slide 7: Growing responsibly
Growing responsibly Japfa’s animal protein business in Indonesia showed strong sales growth in the 2010 – 2014 period driven by strong poultry demand, which then stagnated in the 2014 – 2015 period. After the down-cycle, Japfa’s poultry business resumed growth in 2016 Japfa’s annual capex budget
Slide 8: Key Investment Highlights
2 ID oes @ BROILER II KEY INVESTMENT HIGHLIGHTS
Slide 9: Investment highlights
Investment highlights 1 Attractive industry dynamics driven by strong structural growth in protein consumption 2 Leading integrated poultry national champion with nationwide footprint 3 Core feed business offers stable profitability 4 Industrialised Business Model: Leading Market Positions 5 Experie
Slide 10: Attractive industry dynamics driven by strong structural growth in protein consumption
1 Attractive industry dynamics driven by strong structural growth in protein consumption Poultry meat consumption has increased in tandem Poultry Meat Consumption per capita in Asia with GDP in Indonesia (kg per capita – 2020E) 9 kg 2017 Malaysia 46.8 8 kg 2016 Consumption / Capita (Kg) 2015 7 kg 20
Slide 11: Well-established market leader in the Indonesian animal protein sector
2 Well-established market leader in the Indonesian 2 animal protein sector Nationwide footprint with presence in all major islands Company’s Operational Areas Significant economies of scale given procurement Logistical feat given that Indonesia is an archipelago; volume of raw materials, especia
Slide 12: Poultry Feed: Stable Base Margin
Poultry Feed: Stable Base Margin 400 16% 350 14% LTM OPM Poultry Feed 12% 300 Price Change3 10% 250 8% 200 6% 150 4% 100 2% 50 0% 1 LTM1 Poultry Feed OPM (%) SBM Price 2 Corn Price 2 USD/IDR 3 Poultry Feed OPM has been stable around 10% - 11% as feed has the ability to effectively pass on fluctuatio
Slide 13: Segmental Trends: PT Japfa Tbk (Poultry)
Segmental Trends: PT Japfa Tbk (Poultry) Revenue (IDR Billion) Operating Profit (IDR Billion) Operating Profit Margin (%) 48,543 47,123 43,338 5,568 5,037 5,185 4,178 22.6% 34,650 1,597 13,902 3,598 3,233 15,625 898 12,681 195 10,643 2,586 895 6,414 264 14.0% 13.6% 5,940 5,313 21 1,341 282 12.0% 4,5
Slide 14: Japfa Ltd: A Leading Pan-Asian Industrialized Agri-Food Company
3 Japfa Ltd: A Leading Pan-Asian Industrialized 3 Agri-Food Company WHAT WE DO WHERE WE ARE WHY WE DO IT We produce quality We employ over 3 billion people living protein staples, dairy, 40,000 people across in our target markets and packaged food that Singapore, Indonesia, More than 40% of the nour
Slide 15: Industrialised Business Model: Leading Market Positions
4 Industrialised Business Model: Leading Market Positions Leading upstream regional market positions Average Daily Milk Yield (ADM)1 China 40.1 kg/head #1 DOC Production1 Vietnam 20% #2 Poultry Feed Production1 Myanmar 27% #1 DOC Production1 Myanmar 26% #2 2nd largest Indonesian poultry feed and DOC
Slide 16: Experienced and tenured management team
5 Experienced and tenured management team 5 Proven track record of guiding the Company through various cycles Board of Commissioners* Ito Sumardi Syamsir Siregar Hendrick Kolonas Djuni Sanyoto President Commissioner Independent Commissioner Commissioner Year of agri Year of agri Year of Agri experie
Slide 17: Financial and Operational Highlights
i) FINANCIAL AND
Slide 18: PT Japfa Tbk – Financial Performance
PT Japfa Tbk – Financial Performance Revenue Operating Profit EBITDA PAT Rp Billion Rp Billion Rp Billion Rp Billion 9M 2021 32,803 2,350 3,342 1,616 23.1% y-o-y 92.1% y-o-y 55.1% y-o-y 216.5% y-o-y 9M 2020 26,645 1,223 2,154 511 PT Japfa Tbk posted good 9M2021 results, despite harsher impact of Cov
Slide 19: Covid-19 Impact on Demand
Covid-19 Impact on Demand In 3Q2021, demand for staple proteins is affected by the lockdown imposed in Indonesia to curb Covid-19 with the closure of F&B, weakened economy and reduced consumer purchasing power, particularly in the low and middle-income band. Poultry Indonesia Average Monthly Prices
Slide 20: PT Japfa Tbk Sustainability-Linked Bond (SLB)
PT Japfa Tbk Sustainability-Linked Bond (SLB) Tbk – US$350m 5.375% 5NC3 Senior Unsecured SLB (Reg S) due Mar 2026 • First-ever SLB issued in the agri-food space in the world • In addition, this is the first ever high yield SLB in Asia and first USD-denominated SLB in Southeast Asia • Orderbook was o
Slide 21: PT Japfa Tbk – Stable rolling operating profit
PT Japfa Tbk – Stable rolling operating profit PT Japfa Tbk is an agri-food business, hence will be subject to cyclicality which directly impacts its revenue and profitability. Cyclicality is dependent on a variety of external factors, which are beyond the Company’s control, including the seasonal
Slide 22: Proven financial track record
Proven financial track record Net Revenues Operating Profit EBITDA Net Profit (IDR Billion) (IDR Billion) (IDR Billion) (IDR Billion) 32,803 26,645 3,342 2,350 2,154 1,223 1,616 511 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 Total Assets Net Debt / Equity (%) CAPEX Total Interes
Slide 23: Capex
Capex (IDR Billion) 3,065 1,645 1,022 FY2019 FY2020 YTD Sept 21 Note: Certain prior periods’ figures have been restated to conform with the presentation in the consolidated financial statements 22
Slide 24: Thank You
Thank You IMPORTANT NOTICE: This investor presentation is for information only and should not be relied upon to make any investment or divestment decision with respect to securities of PT Japfa Tbk. Shareholders and potential investors are advised to seek independent advice in the making of any inve