Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Charoen Pokphand Foods — H1 2017 Earnings Presentation
52 slides from Charoen Pokphand Foods Public's earnings presentation, Aug 15, 2017
Slide 1: Charoen Pokphand Foods Plc. 1H17 Results Briefing
Charoen Pokphand Foods Plc. Every Mouthful is Meaningful For a Sustainable Life Chain RESULTS 1H17 BRIEFING Investor Presentation August 15, 2017
Slide 2: Contents
1H17 : Results Briefing 1 Contents Business Overview 02 1H17 Summary 09 Kitchen of The World Financial Status 15 Y2017 Outlook 16 Appendix A: 3Yr Historical Results B: Product & Raw Materials Price Trend C: Product Sample & Retail Outlet Format D: Hightlights 2Q17 Results E: Export Destination F: Gr
Slide 3: Why Invest in CPF
1H17 : Results Briefing 2 Why Invest in CPF CPF : “Kitchen of the World” One of the World’s leading listed animal feed manufacturers, swine producers, and shrimp integrated business Diversified portfolio with operations in 16 countries catered to over 4 billion population, and exports to more than 3
Slide 4: Company Facts (as of June 30, 2017)
1H17 : Results Briefing 3 Company Facts (as of June 30, 2017) Vision :“Kitchen of the World” Portfolio • 4 Listed Investments onboard (HKSE:00043, HKSE:3839, TWSE: 1215, SET:CPALL) • 30 Series of Debentures listed on Thai Bond Market Association “TBMA” Highlights Market Cap : THB 230,344 million or
Slide 5: Strategy for Growth
1H17 : Results Briefing 4 Strategy for Growth 1. Globalization by establishing proper business model to be suitable for each strategic market 2. Value-added business by expanding portfolio towards innovated products and services to serve rising demands
Slide 6: Business Principle
1H17 : Results Briefing 5 Business Principle From Feed, Farm, Food Corporate Strategy • R&D • Quality Control in every process • Traceability 3 Strategies to be “Kitchen of the World” • Profitable Growth • Aiming for Excellence • Sustainable Foundation Responsible to all Stakeholders • Balance of Ec
Slide 7: CPF Operational Structure (As of June 30, 2017)
1H17 : Results Briefing 6 CPF Operational Structure (As of June 30, 2017) 1H17 : Sales: THB 245,587 m Net Profit: THB 8,020 m 36% of Sales 64% of Sales CPF Thailand 1 CPF International Associates & Joint Ventures 30% of Sales 37% of sales 27% of sales CPP- HKSE:43 India (99.99%) 4 SET: CP ALL (34.63
Slide 8: Vertically Integrated Business Model in Thailand
1H17 : Results Briefing 7 Vertically Integrated Business Model in Thailand Integrated operating platform for safety & quality control Livestock (Broiler, Layer, Swine, Duck) and aquaculture (Shrimp & Fish) Adding Feedmilling Breeding Farming Processing Value Live Fresh Food & Feed Breeder Animal Mea
Slide 9: CPF Geographical Footprints
1H17 : Results Briefing 8 CPF Geographical Footprints • Operations and investment in 16 countries catered to > 4 billion population • Export to more than 30 countries across 5 continents Russia Livestock feed USA Swine farming Chicken integrated Ready to eat foods business UK Taiwan Chilled and Froz
Slide 10: 1H17 Summary
1H17 : Results Briefing 9 1H17 Summary Results Highlights Revenue increased 10% y-o-y to THB 245,587m in 1H17 Gross profit margin decreased from 16.6% in 1H16 to 12.2% in 1H17, mainly from lower swine prices in Vietnam, Cambodia and Thailand EBITDA decreased 41% y-o-y from THB 23,181m in 1H16 to THB
Slide 11: Y2017 M&A Activities
1H17 : Results Briefing 10 Y2017 M&A Activities Westbridge Paulsen Food GmbH Food service Food service 100% 95% THB 2,600 m THB 466 m Apr’17 Jun’17
Slide 12: 1H17: Sales & Gross Profit Margin by Business
1H17 : Results Briefing 11 1H17: Sales & Gross Profit Margin by Business +10% In THB, m 245,587 1H16 222,289 1H17 +16% 136,381 +2% 117,593 71,711 73,487 +16% -0% 17,622 20,392 15,363 15,329 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 16.2% 12.7% 12.3% 10.7% 18.3% 10.8% 10.3%
Slide 13: 1H17: Consolidated Sales Structure by Business
1H17 : Results Briefing 12 1H17: Consolidated Sales Structure by Business Sales Breakdown Livestock Aquaculture Total 1H16 1H17 %Change 1H16 1H17 %Change 1H16 1H17 %Change Thailand 71,711 73,487 2% 15,363 15,329 0% 87,074 88,816 2% Domestic 60,447 61,993 3% 13,158 12,603 -4% 73,605 74,596 1% Export
Slide 14: 1H17: Consolidated Sales by Products
1H17 : Results Briefing 13 1H17: Consolidated Sales by Products Sales Breakdown by Products Feed Farm Food Total 1H16 1H17 %Change 1H16 1H17 %Change 1H16 1H17 %Change 1H16 1H17 %Change Thailand 23,663 25,082 6% 42,624 41,916 -2% 20,787 21,818 5% 87,074 88,816 2% Domestic 23,590 24,954 6% 39,117 38,0
Slide 15: 1H17: Consolidated Income Statement Highlight
1H17 : Results Briefing 14 1H17: Consolidated Income Statement Highlight Quarter 1 Quarter 2 6 Months 2016 2017 % Chg. 2016 2017 % Chg. 2016 2017 % Chg. Net sales 105,513 119,617 13% 116,776 125,970 8% 222,289 245,587 10% Gross Profit Margin 15.7% 12.7% 17.3% 11.7% 16.6% 12.2% EBITDA 10,075 7,056 -3
Slide 16: Financial Status (As of 30 June 2017)
1H17 : Results Briefing 15 Financial Status (As of 30 June 2017) Interest Bearing Debt : THB 299,665 m Net Debt to Equity Total Equity Unit : THB, M Net Debt Net Debt to Equity Current Portion, 8% 1.44 Bond, 37% S/T Loan, 1.32 36% 1.28 L/T Loan, 19% 278,628 272,141 221,690 173,725 193,706 205,863 20
Slide 17: Y2017 Outlook
1H17 : Results Briefing 16 Y2017 Outlook Target Growth Expected sales growth of approximately 8-10 % Key Drivers & Focus Continuous improvement of shrimp business Larger opportunities for Thai chicken exports Competitive raw material costs Expansion of international operations Mergers and Acquisitio
Slide 18: Appendix A: Highlights: 3Yr Historical Results
Appendix A: Highlights : 3Yr Historical Results
Slide 19: Consolidated Income Statement Highlight
1H17 : Results Briefing 18 Consolidated Income Statement Highlight Full Year 2014 2015 % Change 2016 % Change Net sales 426,039 421,355 -1% 464,465 10% Gross Profit Margin (%) 13.4% 13.8% 15.6% Gain on fair value adjustment - - - - - EBITDA 27,513 26,433 -4% 42,659 61% EBIT 17,548 14,926 -15% 29,410
Slide 20: Gross Profit Margin & Operating Profit Margin
1H17 : Results Briefing 19 Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM Thai-Aqua OPM 20.0% 30.0% 18.0% 16.5% 25.0% 15.6% 16.8% 16.0% 14.3% 20.0% 16.5% 13.5% 13.1% 12.6% 11.9% 12.6% 13.6% 14.0% 12.5% 12.2% 15.0% 11.9% 8.5% 7.5% 8.2% 12.0% 10.8% 10.0% 3.0% 10.0% 10.0% 5.0%
Slide 21: CAPEX & EBITDA
1H17 : Results Briefing 20 CAPEX & EBITDA CAPEX EBITDA Unit: THB, M Unit: THB, M EBITDA Margin% CPP CPF 45,000 20.0% 25,550 25,398 40,000 42,659 18.0% 22,175 35,000 16.0% 14.0% 10,561 9,446 30,000 7,279 12.0% 25,000 27,513 26,433 9.2% 10.0% 11,165 20,000 6.5% 8.0% 6.3% 15,000 5.6% 3,795 6.0% 14,989
Slide 22: Consolidated Net Profit & ROE & D/EBITDA
1H17 : Results Briefing 21 Consolidated Net Profit & ROE & D/EBITDA Net Profit D/EBITDA & ROE Unit: THB, M D/EBITDA Ratio (interest Bearing Debt) Gain on fair value adjustment on investment in associates Divestment and Dividend Equity (Share in Profit of Associates) EBIT 9.8 10.9 7.1 7.3 CAGR +18% 2
Slide 23: Consolidated Net Profit - Quarterly
1H17 : Results Briefing 22 Consolidated Net Profit - Quarterly Unit : THB, M 1Q 2Q 3Q 4Q 5,184 4,158 4,016 4,064 3,764 3,955 3,546 3,571 2,956 2,983 2,050 1,739 1,549 808 2014 2015 2016 2017 2Q15 Gain on fair value adjustment of investments in associates = 236 MB
Slide 24: EPS & Dividends per Share
1H17 : Results Briefing 23 EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Semi – Annually, minimum of Dividend 50% of annual net profit Policy (The Company Statement Only) CAGR +18% CAGR +13% 1.99 1.50 1.43 0.95 1.06 0.75 0.75 0.50 2014 2015 2016 1H1
Slide 25: Appendix B: Product & Raw Materials Price Trend
Appendix B: Product & Raw Materials Price Trend Kitchen of The World
Slide 26: Average Farm Prices – Thailand
1H17 : Results Briefing 25 Average Farm Prices – Thailand Thailand’s Broiler price (Baht/kg) 50.0 2015 2016 2017 45.0 Average Price 38.9 39.3 2015 2016 2017 40.0 38.0 36.6 36.3 36.7 36.6 35.4 35.8 35.6 38.0 35.0 33.8 35.0 33.0 % Chg -1% +7% 30.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Curr
Slide 27: Average Farm Prices – Thailand
1H17 : Results Briefing 26 Average Farm Prices – Thailand Thailand’s Fresh egg price (Baht/piece) 4.0 2015 2016 2017 3.2 2.8 Average Price 3.0 2.8 2.7 2.6 2.5 2015 2016 2017 2.3 2.4 2.3 2.1 2.2 2.4 2.8 2.2 2.0 % Chg +15% -19% 1.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Currrent Price Thail
Slide 28: Average Raw Material Prices – Thailand
1H17 : Results Briefing 27 Average Raw Material Prices – Thailand Thailand’s Corn price (Baht/kg) 20.0 2015 2016 2017 15.0 10.5 Average Price 9.5 9.8 8.6 8.7 8.9 8.7 8.2 2015 2016 2017 10.0 8.0 8.0 8.1 9.6 8.6 8.0 5.0 % Chg -11% -6% 0.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Currrent Pric
Slide 29: Average Farm Prices – Thailand
1H17 : Results Briefing 28 Average Farm Prices – Thailand Thailand’s Fishmeal price (Baht/kg) 2015 2016 2017 50.0 45.0 41.7 40.0 35.7 36.1 Average Price 35.4 34.0 33.4 33.2 35.0 32.2 32.2 2015 2016 2017 29.6 27.5 36.7 32.3 36.7 30.0 % Chg -12% -4% 25.0 20.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q
Slide 30: Vietnam: Average Market Price and Major Feed Raw Materials
1H17 : Results Briefing 29 Vietnam: Average Market Price and Major Feed Raw Materials 40,000 26,569 27,341 30,000 25,698 24,988 24,598 24,538 24,793 Broiler 23,401 23,363 23,241 (VND/kg) 20,000 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 60,000 50,930 45,475 46,734 46,909 45,730 47,370 50,000
Slide 31: Turkey: Average Market Price and Major Feed Raw Materials
1H17 : Results Briefing 30 Turkey: Average Market Price and Major Feed Raw Materials 4.00 3.06 3.31 2.76 2.76 2.86 2.87 2.73 2.78 2.78 2.83 2.00 Broiler (TRY/kg) 0.00 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 1.00 0.81 0.87 0.72 0.76 0.74 0.72 0.75 0.74 0.78 0.70 0.50 Corn (TRY/kg) 0.00 1Q15
Slide 32: India: Average Market Price and Major Feed Raw Materials
1H17 : Results Briefing 31 India: Average Market Price and Major Feed Raw Materials 100.0 86.3 80.0 72.5 72.0 68.1 66.4 65.9 56.8 57.7 59.5 50.0 Broiler (Rs/kg) 0.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 500.0 355 360 363 400.0 330 326 318 297 288 256 265 300.0 Shrimp(60 pieces) 200.0 (Rs
Slide 33: Appendix C: Product Sample & Retail Outlet Format
Appendix C: Product Sample & Retail Outlet Format Kitchen of The World
Slide 34: Food Retail Products
1H17 : Results Briefing 33 Food Retail Products
Slide 35: Food Retail Products
1H17 : Results Briefing 34 Food Retail Products
Slide 36: Food Retail Products
1H17 : Results Briefing 35 Food Retail Products
Slide 37: Food Service: Five Stars Chain
1H17 : Results Briefing 36 Food Service : Five Stars Chain More Than 6,000 Outlets Five Star Chicken in Vietnam Five Star Chicken in India Five Star Chicken in Cambodia
Slide 38: Food Service: Chester's Outlets
1H17 : Results Briefing 37 Food Service : Chester’s 195 Outlets
Slide 39: Food Retail Outlets
1H17 : Results Briefing 38 Food Retail Outlets 409 Stores 7 Stores
Slide 40: CP Chozen Limited Kiosks
1H17 : Results Briefing 39 CP CHOZEN LIMITED 25 Kiosks
Slide 41: Appendix D: Highlights: 2Q17 results
Appendix D: Highlights: 2Q17 results
Slide 42: 2Q17 Results Highlights
1H17 : Results Briefing 2Q17 Results Highlights 40 Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) +8%Y-o-Y -27%Y-o-Y +1%Y-o-Y 20,277 4,016 4,064 125,970 116,777 14,735 2Q16 2Q17 2Q16 2Q17 2Q16 2Q17 Consolidated sales 8% Y-o-Y Gross profit margin Net profit
Slide 43: 2Q17: Sales & Gross Profit Margin by Business
1H17 : Results Briefing 42 2Q17: Sales & Gross Profit Margin by Business +8% In THB, m 2Q16 125,970 116,776 2Q17 +10% 66,861 +3% 60,605 36,377 37,520 +15% +1% 11,543 13,258 8,251 8,331 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 16.8% 13.1% 12.6% 8.2% 19.5% 9.2% 11.5% 22.8% 1
Slide 44: 2Q17: Consolidated Sales Structure by Business
1H17 : Results Briefing 43 2Q17: Consolidated Sales Structure by Business Sales Breakdown Livestock Aquaculture Total 2Q16 2Q17 %Change 2Q16 2Q17 %Change 2Q16 2Q17 %Change Thailand 36,377 37,520 3% 8,251 8,331 1% 44,628 45,851 3% Domestic 30,597 31,406 3% 7,043 6,834 -3% 37,640 38,240 2% Export 5,78
Slide 45: 2Q17: Consolidated Sales by Products
1H17 : Results Briefing 44 2Q17: Consolidated Sales by Products Sales Breakdown by Products Feed Farm Food Total 2Q16 2Q17 %Change 2Q16 2Q17 %Change 2Q16 2Q17 %Change 2Q16 2Q17 %Change Thailand 11,884 13,010 9% 22,215 21,495 -3% 10,529 11,346 8% 44,628 45,851 3% Domestic 11,857 12,946 9% 20,261 19,3
Slide 46: Appendix E: Export Destination
Appendix E: Export Destination Kitchen of The World
Slide 47: 1H17: Thailand Operations – Export Destination
1H17 : Results Briefing 46 1H17: Thailand Operations – Export Destination Asia 63% Asia 51% EU 39% EU 32% Others USA Others USA 2% 3% 4% 6% Asia EU USA Others Asia EU USA Others Farm Food THB 3,909 million +11% THB 10,183 million +3%
Slide 48: Appendix F: Group of CPP's Associate Companies & Joint Ventures
Appendix F: Group of CPP’s Associate Companies & Joint Ventures Kitchen of The World
Slide 49: Group of CPP's Associate Companies & Joint Ventures
1H17 : Results Briefing 48 Group of CPP’s Associate Companies & Joint Ventures As of Decemb er 31, 2016 No. Associates Type of Business Direct and Indirect Interest (%) 1 Chia Tai (Cixi) Investment Mangement Ltd. Provision of Consulting service on economic and trade 25.21 2 Conti Chia Tai Internatio
Slide 50: Appendix G: Y2016 M&A Activities
Appendix G: Y2016 M&A Activities Kitchen of The World
Slide 51: Y2016 M&A Activities
1H17 : Results Briefing 50 Y2016 M&A Activities Norfolk Foods Food Fellas Bellisio SuperDrob Ready-to-eat food Food service Ready-to-eat food Agro & Food 80% 60% 100% 33% THB 141 m THB 538 m THB 38,161 m THB 1,872 m May’16 Jun’16 Jul’16 Oct’16 Nov’16 Dec’16 Hubei Chia Tai Banner Infant Dairy Fujian
Slide 52: 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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