Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Charoen Pokphand Foods — Q1 2014 Earnings Presentation
38 slides from Charoen Pokphand Foods Public's earnings presentation, May 15, 2014
Slide 1: Charoen Pokphand Foods Plc. 1Q14 Results Briefing
Charoen Pokphand Foods Plc. 1Q14 RESULTS BRIEFING May 15, 2014
Slide 2: Content
Content Business Overview Q12014 Results Briefing Financial Highlights Future Plan • Appendix A: Product & Raw Materials Price Trend B: Product Sample & Retail Outlet Format C: Export Destination and Stock Information Kitchen of The World
Slide 3: CPF Investment Highlights
CPF Investment Highlights A leading global vertically integrated agro-industrial and food company Well-diversified portfolio with export to 40 countries and operations in 13 countries catered to 3 billion population Capturing strong growth opportunity in emerging markets Building key presence in dev
Slide 4: Company Facts (as of May 14, 2014)
Company Facts (as of May 14, 2014) Vision : Kitchen of the World Position • One of the World’s leading listed animal feed manufacturers • One of the World’s leading listed swine producers and shrimp integrated businesses • Member of “SET50”, Ticker “CPF” under Agro-Industrial & Food Sector • Ranked
Slide 5: CPF Operational Structure
CPF Operational Structure CPF (Consolidated) 1Q2014 : Sales: THB 98,122 m Net Profit: THB 2,050 m 42% of Sales 58% of Sales Associate & Jointly- CPF Thailand CPF International Controlled Entities 36% of Sales 41% of sales 17% of sales CPP- HKSE:43 TW:1215 CPE Taiwan (32.41%) SET: CP ALL (32.25%) Dom
Slide 6: Vertically Integrated Business Model
Vertically Integrated Business Model Integrated operating platform for safety & quality control Livestock (Broiler, Layer, Swine, Duck) and aquaculture (Shrimp & Fish) Food & Adding Branding & Feedmilling Breeding Farming Processing Retail Value Marketing Outlets Live Fresh Food & Feed Breeder Anima
Slide 7: CPF Leading Footprints
CPF Leading Footprints UK Russia Food processing plant • Livestock feed • Swine farming Belgium Food processing plant Taiwan China - CPP Livestock integrated • Livestock and aquaculture feed business Turkey • Aquaculture farming Chicken integrated Laos business Livestock integrated India business •
Slide 8: 1Q2014 Summary
1Q2014 Summary Challenges Continuing impact of EMS (Early Mortality Syndrome) in shrimp business Latest Activities Issued 0.5% exchangeable bonds (“EB”) on Jan 15,2014 (USD 290.4 m, EB due 2019) Closing acquisition of 80.02% stake in Tops Foods, Belgium on Jan20, 2014 (THB 408 m) Announcing the 29%
Slide 9: 1Q2014 Results Highlights
1Q2014 Results Highlights Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) +12%Y-o-Y +66%Y-o-Y +100%Y-o-Y Consolidated sales up 12% Y-o-Y Gross profit margin Net profit margin 1Q13 9.0% 1Q13 1.2% 1Q14 13.4% 1Q14 2.1% %Chg 4.4% %Chg 0.9% - Page 8 - Kitchen of
Slide 10: 1Q2014: Sales & Gross Profit Margin by Business
1Q2014: Sales & Gross Profit Margin by Business In THB, m 1Q13 +12% 1Q14 +14% +11% -9% +44% GPM 9.3% 16.4% -0.1% -7.5% 11.6% 14.0% -4.8% 12.3% 9.0% 13.4% OPM 1.7% 8.8% -7.6% -16.3% 2.5% 4.6% -14.6% 4.2% 0.5% 4.7% - Page 9 - Kitchen of The World
Slide 11: 1Q2014: Consolidated Sales Structure
1Q2014: Consolidated Sales Structure Sales Breakdown 1Q13 % to Sales 1Q14 % to Sales % Change Thailand 38,933 45% 41,660 42% 7% Domestic 31,850 37% 35,609 36% 12% Export 7,083 8% 6,051 6% -15% China 23,400 27% 24,707 25% 6% Vietnam 11,664 13% 15,596 16% 34% Others 13,427 15% 16,159 17% 20% Total 87,
Slide 12: 1Q2014: Consolidated Sales Structure by Business
1Q2014: Consolidated Sales Structure by Business Sales Breakdown Livestock Aqualculture Total 1Q13 1Q14 %Change 1Q13 1Q14 %Change 1Q13 1Q14 %Change Thailand 31,813 35,206 11% 7,120 6,454 -9% 38,933 41,660 7% Domestic 27,844 30,791 11% 4,006 4,818 20% 31,850 35,609 12% Export 3,969 4,415 11% 3,114 1,
Slide 13: 1Q2014: Consolidated Sales by Products
1Q2014: Consolidated Sales by Products Sales Breakdown by Products Feed Farm Food Total 1Q13 1Q14 %Change 1Q13 1Q14 %Change 1Q13 1Q14 %Change 1Q13 1Q14 %Change Thailand 12,705 11,863 -7% 16,088 19,356 20% 10,140 10,441 3% 38,933 41,660 7% Domestic 12,605 11,805 -6% 14,470 18,209 26% 4,775 5,595 17%
Slide 14: 1Q2014: Consolidated Income Statement Highlight
1Q2014: Consolidated Income Statement Highlight Quarter 1 Full Year 2013 2014 %Change 2012 2013 %Change Net sales 87,424 98,122 12% 357,175 389,251 9% Gross Profit Margin (%) 9.0% 13.4% 11.6% 10.0% Gain on fair value adjustment - - - 8,673 - -100% EBITDA 1,743 6,414 268% 18,621 13,039 -30% EBITDA Ma
Slide 15: Financial Status
Financial Status Interest Bearing Debt : THB 197,648 Net Debt to Equity Unit : THB, M 2012 2013 1Q14 Cost of Debts 4.82% 4.65% 4.60% Remark : Net Debt = Interest Bearing Debt - Cash and Cash Equivalents Bond Rating “AA-” with “Stable” Outlook by Tris Rating Co., Ltd - Page 14 - Kitchen of The World
Slide 16: Y2014 Key Highlights
Y2014 Key Highlights Target Growth Sales Minimum 10% Key Drivers Turnaround of livestock business Japanese ban lifting and new markets for Thailand uncooked chicken Gradual improvement of shrimp business Investment 5Yr Capex of THB 50,000 million (excluding CPP) ; cautiously investment for growth •
Slide 17: 5-Year Mission
5-Year Mission ■ Increase return by growing value added businesses ■ Synergize new investments with existing core operations ■ Capitalize growth opportunity in emerging markets ■ Strengthen brand and expand retail-food business ■ Build transparent corporate governance ■ Moving towards sustainability
Slide 18: Appendix A: Product & Raw Materials Price Trend
Appendix A: Product & Raw Materials Price Trend 2008 : Results Kitchen of The World
Slide 19: Average Market Price: Major Products (Broiler)
Average Market Price: Major Products Broiler (THB / KG.) Avg. Price % y-o-y 2012 35.09 40.0 2013 41.85 19% 2014 41.67 0% May’14 Source: CPF - Page 18 - Kitchen of The World
Slide 20: Average Market Price: Major Products (Swine)
Average Market Price: Major Products Swine (THB / KG.) 79.0 Avg. Price % y-o-y 2012 55.67 2013 66.67 20% 2014 73.67 11% May’14 Source: CPF - Page 19 - Kitchen of The World
Slide 21: Average Market Price: Major Products (Fresh Egg)
Average Market Price: Major Products Fresh Egg (THB / piece) 3.1 Avg. Price % y-o-y 2012 2.36 2013 3.00 27% 2014 2.87 -4% May’14 Source: CPF - Page 20 - Kitchen of The World
Slide 22: Average Market Price: Major Products (White Shrimp)
Average Market Price: Major Products White Shrimp (Size70) Avg. Price % y-o-y 180.0 2012 129 2013 213 65% 2014 257 21% May’14 Source: CPF - Page 21 - Kitchen of The World
Slide 23: Average Market Price: Major Feed Raw Materials (Corn)
Average Market Price: Major Feed Raw Materials Corn (THB / KG.) Avg. Price % y-o-y 2012 10.46 9.3 2013 9.37 -10% 2014 8.13 -13% May’14 Source: CPF - Page 22 - Kitchen of The World
Slide 24: Average Market Price: Major Feed Raw Materials (Soybean Meal)
Average Market Price: Major Feed Raw Materials Soybean Meal (THB / KG.) 21.2 Avg. Price % y-o-y 2012 18.47 2013 19.20 4% 2014 20.85 9% May’14 Source: CPF - Page 23 - Kitchen of The World
Slide 25: Average Market Price: Major Feed Raw Materials (Fishmeal)
Average Market Price: Major Feed Raw Materials Fishmeal (THB / KG.) Avg. Price % y-o-y 27.8 2012 31.78 2013 29.23 -8% 2014 29.29 0% May’14 Source: CPF - Page 24 - Kitchen of The World
Slide 26: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials Source: CPF - Page 25 - Kitchen of The World VND 1 = THB 0.0015
Slide 27: Turkey: Average Market Price and Major Feed Raw Materials
Turkey: Average Market Price and Major Feed Raw Materials Source: CPF - Page 26 - Kitchen of The World TRY 1 = THB 15.73
Slide 28: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials Source: CPF - Page 27 - Kitchen of The World Rs 1 = THB 0.55
Slide 29: Appendix B: Product Sample & Retail Outlet Format
Appendix B: Product Sample & Retail Outlet Format 2008 : Results Kitchen of The World
Slide 30: Food Retail Products
Food Retail Products - Page 29 - Kitchen of The World
Slide 31: Food Service: Five Stars Chain
Food Service : Five Stars Chain Five Star Chicken in Vietnam Five Star Chicken in India - Page 30 - Kitchen of The World
Slide 32: Food Service: Chester's
Food Service : Chester’s - Page 31 - Kitchen of The World
Slide 33: Food Retail Outlets
Food Retail Outlets - Page 32 - Kitchen of The World
Slide 34: Appendix C: Export Destination and Stock Information
Appendix C: Export Destination and Stock Information 2008 : Results Kitchen of The World
Slide 35: 1Q2014: Thailand Operations – Export Destination
1Q2014: Thailand Operations – Export Destination Asia Asia EU EU USA Others USA Farm Food THB 1,147 million -29% THB 4,846 million -10% - Page - Kitchen of The World
Slide 36: CPF Share Capital Information
CPF Share Capital Information Stock Information – CPF.TB Dividend Share price (May 14, 2014) : THB 25.25 Year Dividend Payout ratio (%) * (THB/share) Historical price : 52-week high THB 32.00 2013 0.50 56% 52-week low THB 21.60 2012 1.10 106% No. of paid up shares : 7,742.9m 2011 1.20 70% Average Da
Slide 37: Disclaimer
Disclaimer “This presentation contains some information from other sources, that CPF does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”) on this presentatio
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