Pt Ultrajaya Milk Industry & Trading Co. Tbk · IDX:ULTJ
Pt Ultrajaya Milk Industry & Trading Co. Tbk — Investor Presentation (December 2022)
35 slides from Pt Ultrajaya Milk Industry & Trading Co. Tbk's investor presentation, December 2022
Slide 1: Company Presentation December 2022
SC ULTRAJAYA re Company Presentation U December 2022 ULTRA = Sumber Vi ADS ea eT
Slide 2: Company Overview
Company Overview
Slide 3: Pioneer in UHT processing in Indonesia
Pioneer in Ultra High Temperature ("UHT") processing in Indonesia, 3Q2022 Revenue: partnering with Tetra Pak since 1975 and Combibloc since 1998 Largest manufacturer of UHT liquid milk in Indonesia IDR 5,678 bn Market share of 35% in UHT liquid milk products¹ vs. LY +18.5% Largest manufacturer of
Slide 4: Dairy, Tea & Health Drink, Other segments
73% 19% 8% Dairy Tea & Health Drink Other • #1 in UHT liquid milk with 35% market share • # 1 in RTD tea in carton packs with 66% market • Tolling agreement for production of powdered • Offer a variety of products with different share milk for PT Sanghiang Perkasa flavours and target customers . pro
Slide 5: Corporate structure
PT PRAWIRAWIDJAJA PRAKARSA PT ULTRAJAYA MILK INDUSTRY SABANA PRAWIRAWIDJAJA PUBLIC (TREASURY STOCK) 44% 21% 10% 25% PT ULTRAJAYA MILK INDUSTRY & TRADING COMPANY Tbk. 50% 69% 25% 85% 75% 30% 70% PT KRAFT PT NIKOS PT ITO-EN PT ULTRA PT ULTRA SUMATERA PT MENARA ULTRA PT TIRTA TALAGA PETERNAKAN ULTRAJAY
Slide 6: Business Strengths
Business Strengths
Slide 7: Business strengths
01 Industry fundamentals are strong 05 Stringent Quality Controls across Entire Production Chain Leading Market Position Poised to 02 Capture Continued Growth v 06 Extensive Network Nationwide Distribution Presence in Multiple Categories and 03 Track Record of Product Development v 07 Growing Supply
Slide 8: Industry fundamentals are strong
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, Indonesia has the largest population in S
Slide 9: Dairy and RTD tea market growth
Strong growth of the liquid milk segment, which consists mainly of UHT milk Dairy Market size Liquid Milk (IDR mio) 2021 consumption per capita (L) Key characteristics / trends Urbanization and increasing disposable income strengthening drinking milk 10% demand 18% 15.3 Health and wellness trend
Slide 10: Leading market position and brands
Leading player in fast growing consumer segments in Volume market growth liquid milk in 2020-2022 Indonesia with award-winning brands Growth 16.5% Growth 9.4.% Largest in UHT milk and RTD tea in carton packs segments Trusted brands among consumers with strong brand equity High quality and healthy po
Slide 11: Brand awards and recognition
. Kantar Youtube Most Chosen Brand Top 10 Strongest LeaderBoard 2020 2022 Local Brand 2018 RTD Flavoured Milk WOW Brand 2017 Most Supportive Forbes Sponsor 2019 Best 50 Public List Companies 2021
Slide 12: Continued introduction of new product categories
We have continued to introduce new product categories and have developed products for different segments to expand our product reach. 1971 1978 1982 1985 1987 1990 Establishment of PT. Launching Launching of License Launching of GO PUBLIC Ultrajaya Milk of Buavita, Teh Kotak, agreement of Twin Cow,
Slide 13: Highly-automated production process with UHT technology
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 human intervention Utilizes state-of-the-art production equipment an
Slide 14: Strict monitoring and quality control systems
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 since establishment 4. FSSC 22000:2010 Certificate 5. No a
Slide 15: Extensive nationwide distribution network
We operate an extensive nationwide distribution network both in Java and to other regions 22 Sales Office in Java 65,000 points of sale sales to modern retail through our own sales force and to traditional retail through our subsidiary (PT Nikos Distribution Indonesia) 63 distributors (Third Party)
Slide 16: Collaboration with local dairy farmers
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 – majority of raw milk supply We maintain lo
Slide 17: Farm in Berastagi, North Sumatera
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 - Control on supply and quality ● Climate in area is favorable ● Capitaliz
Slide 18: Board of Directors
Board of Directors Sabana Prawirawidjaja Samudera Prawirawidjaja Jutianto Isnandar Founder & President Director Director Director • One of the founders of the Company. Appointed as the Company’s President • Over 25 years of experience with • Has been with Ultrajaya since 1974 as Director since 1971
Slide 19: Strategies
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Slide 20: Key strategies overview
1 Further optimize our distribution 4 Expansion of Dairy Farming operations platform, ensuring optimal to secure supply source availability nationwide 2 Further expand our production and 5 Continued investment to improve warehousing capacity operational efficiency . 3 Continued focus on new product
Slide 21: Optimize distribution platform nationwide
1 Further optimize our distribution platform, ensuring optimal availability nationwide Within Java FOCUS: Increase penetration of modern and traditional retail Outside Java PLANS: FOCUS: Support distributors expanding their reach Expand the sales team on the ground • PLANS: Continuously inve
Slide 22: 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 appr
Slide 23: Expansion of dairy farming operations
4 Expansion of Dairy Farming operations to secure supply source Dairy farm JV in Sumatra New farm (s) on Java to be built Long term plan for farm with 6,000 milking cows, Invest in feed farming (grass, maize) to ensure with 2 rotary milking parlors good quality feed at affordable prices 69-31
Slide 24: Dividends, share buyback and MTN issuance
Distribution of dividends on Shares Buyback Issuance of Ultrajaya net income for the financial Medium Term Notes (MTN) year 2020 • Referring to OJK Circular Number 3 / 2020 SEOJK.04 / 2020 dated 9 March 2020 • Information Disclosure is concerning "Other Conditions As published on November 16, 2020 M
Slide 25: Financial Highlights
Financial Highlights
Slide 26: Sales, gross profit, EBITDA and profit after tax
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, %) 10.9% 18.4% 37.3% 35.9% 32.7% 6,617 35.4% 5,967 5,678 4,795 2,229 2,375 1,859 1,698 2020 2021 3Q2021 3Q2022 2020 2021 3Q20
Slide 27: Dairy, Tea and Health drinks, Other performance
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, %) +11.3% +16.5% 4,901 +6.5% 4,402 +19.3% 3,542 4,126 1,167 +13.1% 1,243 918 1,095 +36.6% 417 472 334 457 2020 2021 3Q2021 3Q20
Slide 28: 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 bn) COGS Breakd
Slide 29: Operating expenses are under control
Operating expenses are under control Selling expenses breakdown (IDR bn, % of NS) General and adm expenses breakdown (IDR bn, % of NS) 13.0% 11.3% 10.7% 774 749 3.9% 3.2% 9.6% 607 3.3% 3.3% 458 231 210 184 158 2020 2021 3Q2021 3Q2022 2020 2021 3Q2021 3Q2022 Advertising & promotion Freight out Others
Slide 30: Operating cash flow and capex
Cash flows historically have been sufficient to fund capex requirements Operating Cash Flow (IDR bn) Capex (IDR bn) 1,414 1,217 1,198 402 252 171 232 308 2020 2021 3Q2021 3Q2022 2020 2021 3Q2021 3Q2022 • Cash flow from operating activities historically have been sufficient to • Major capex projects
Slide 31: Summary Highlights
Summary Highlights
Slide 32: Income statement summary
(IDR million) FY2020 FY2021 3Q2021 3Q2022 Revenue 5,967,362 6,616,642 4,792,085 5,678,134 COGS (3,738,835) (4,241,696) (3,094,091) (3,819,593) Gross profit 2,228,527 2,374,946 1,697,994 1,858,541 Selling expenses (773,759) (748,823) (457,525) (606,986) General & administrative expenses (231,175) (20
Slide 33: Balance sheet summary
As of December 31st As of September 30th (IDR million) 2020 2021 2021 2022 Current assets Cash 1,649,669 1,598,901 2,736,138 1,424,866 Trade receivables 563,444 626,006 620,794 671,761 Inventories 924,639 681,983 700,571 1,245,252 Others 2,455,669 1,937,931 2,442,740 2,044,551 Total current assets 5
Slide 34: Cash flow summary
(IDR million) FY2020 FY2021 3Q2021 3Q2022 Cash flow from operations Net Cash flow from operating activities 1,471,088 1,739,876 1,295,018 603,839 Interest income 58,666 155,884 100,702 70,564 Interest expense (27,785) (228,831) (185,438) (93,649) Income tax (321,089) (331,696) (224,971) (316,747) Ot
Slide 35: Disclaimer
These materials are not intended to be a public offering document under Law of the Republic of Indonesia No.8 of 1995 on Capital Markets and its implementing regulations. Persons into whose possession these materials come are required to inform themselves about and to observe, any restrictions in di
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