Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Charoen Pokphand Foods PCL — FY2019 Earnings Presentation
52 slides from Charoen Pokphand Foods Public's earnings presentation, Feb 21, 2020
Slide 1: Charoen Pokphand Foods PCL. Results Briefing 2019
Charoen Pokphand Foods PCL. Results Briefing 2019 Investor Presentation February 21, 2020
Slide 2: Contents
2019 : Results Briefing Contents Page 1 Kitchen of the World Business Overview 02 2019 Financial Results 09 Y2020 Outlook 17 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Highlights 4Q19 Results D: Group of CPP's Associate Companies & Joint Ventures E: Product Sample
Slide 3: Why Invest in CPF
2019 : Results Briefing Why Invest in CPF Page 2 “Aiming to compete in the front line of the food industry, we use resources properly and environmental friendly. The Company takes into account the interests of all stakeholders to ensure sustainable growth, while being able to generate appropriate re
Slide 4: Company Facts
2019 : Results Briefing Company Facts Page 3 Vision :“Kitchen of the World” Portfolio • 4 listed investments onboard (HKSE:00043, HKSE:3839, TWSE: 1215, SET:CPALL) • 40 series of debentures listed on Thai Bond Market Association “TBMA” • 1 exchangeable Bond “EBs” on Highlights FY19 Sales : THB532 bi
Slide 5: Vertically Integrated Business Model in Thailand
2019 : Results Briefing Vertically Integrated Business Model in Thailand Page 4 CPF operates integrated agro-industrial and food business including swine, broiler, layer, duck, shrimp and fish. The integrated food process involves advanced production technology, qualified international standard chem
Slide 6: CPF Geographical Footprints
2019 : Results Briefing CPF Geographical Footprints Page 5 • Operations and investment in 17 countries catered to > 4 billion population • Export to more than 30 countries across 5 continents Russia Canada Livestock feed Swine integrated business Swine farming Chicken integrated USA business Ready t
Slide 7: Our Strategy
2019 : Results Briefing Our Strategy Page 6 Strategy for Growth Execution Plan • Fully integrated business model • Create value -use innovation in order to add value to product, process, and • Globalization by establishing a proper business model. business model suitable for each strategic market •
Slide 8: Sustainability
2019 : Results Briefing Sustainability Page 7 CPF commits to support 11 of 17 Sustainable Development Goals which align with our capacity and potential. CPF is a participant in the United Nations Global Compact
Slide 9: CPF Operational Structure (As of Dec 31, 2019)
2019 : Results Briefing CPF Operational Structure (As of Dec 31, 2019) Page 8 2019 : Sales: THB 532,573 m Net Profit: THB 18,456 m 33% of Sales 67% of Sales CPF Thailand 1 CPF International Associates & Joint Ventures 27% of Sales 40% of sales 27% of sales CPP- HKSE:43 UK (99.99%) SET: CP ALL (33.86
Slide 10: 2019: Performance Summary
2019 : Results Briefing 2019: Performance Summary Page 9 Sales Revenue (YoY) Indicators (YoY) Onetime Expense Sales Revenue Lower raw material costs -2% Amendment of the Sale Revenue Thai Corn Thai Soy Vietnam Vietnam Soy +8% Bean Meal Thailand’s Labour Excl. TFRS15 & FX Bean Meal Corn Protection Ac
Slide 11: 2019: Sales & Profit Margin by Business
2019 : Results Briefing 2019: Sales & Profit Margin by Business Page 10 Revenue +8% In THB, m exclude impact of 586,066 TFRS15 & 2018 FX translation 2019 -2% 541,937 532,573 -3% 316,609 307,755 -0.4% +5% 150,815 150,182 -7% 46,648 48,852 27,865 25,784 Thai-Livestock Thai-Aqua Overseas-Livestock Over
Slide 12: 2019: Consolidated Sales Structure by Business
2019 : Results Briefing 2019: Consolidated Sales Structure by Business Page 11 Sales Breakdown Livestock Aquaculture Total 2018 2019 %Change 2018 2019 %Change 2018 2019 %Change Thailand 150,815 150,182 0% 27,865 25,784 -7% 178,680 175,966 -2% Domestic 127,531 123,440 -3% 22,120 20,470 -7% 149,651 14
Slide 13: 2019: Consolidated Sales by Products
2019 : Results Briefing 2019: Consolidated Sales by Products Page 12 Sales Breakdown by Products Feed Farm Food Total 2018 2019 %Change 2018 2019 %Change 2018 2019 %Change 2018 2019 %Change Thailand 49,594 38,502 -22% 83,818 89,409 7% 45,268 48,055 6% 178,680 175,966 -2% Domestic 49,527 38,427 -22%
Slide 14: 2019: Consolidated Income Statement Highlight
2019 : Results Briefing 2019: Consolidated Income Statement Highlight Page 13 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year 2018 2019 % Chg. 2018 2019 % Chg. 2018 2019 % Chg. 2018 2019 % Chg. 2018 2019 % Chg. Net sales 120,516 125,286 4% 136,353 133,896 -2% 141,393 132,597 -6% 143,676 140,794 -2
Slide 15: Financial Status (As of Dec 31, 2019)
2019 : Results Briefing Financial Status (As of Dec 31, 2019) Page 14 Interest Bearing Debt: THB 333,902 m Net Debt to Equity & Net Debt to EBITDA (THB, m) 333,902 330,293 Net D/E 312,728 288,710 1.4x 1.4x 1.4x 1.2x 2016 2017 2018 2019 2016 2017 2018 2019 Current Portion, 13% Net D/EBITDA S/T Bond,
Slide 16: Investment and Financing Activities
2019 : Results Briefing 2019 Investment and Financing Activities Page 15 AHM Lifestyles Dak Galbi Hylife Creative Hot Korean Integrated Hospitality stir fry Pork business Restaurant in restaurant 50.10% Vietnam 41.35% THB 11,845 m 70.00% THB 55 m Homegrown THB 33.3 m Lotus Aquaculture Shrimp (USA) L
Slide 17: CPF's Investment in Listed Companies
2019 : Results Briefing CPF’s Investment in Listed Companies Page 16 Stock Price Market Cap. CPF Holding % Holding Value (Local Curr.) (THB mm) (THB mm) (As of Dec 31, 2019) CPALL THB 72.25 649,029 33.86% 219,761 (SET:CPALL) CPP HKD 0.64 61,778 52.24% 32,273 (HKSE:0043) TRUE THB 4.60 153,494 2.21% 3
Slide 18: Y2020 Outlook
2019 : Results Briefing Y2020 Outlook Page 17 Growth Target Expected sales growth of approximately 5-8 % excluding FX translation impact Key Drivers & Focus Higher average domestic meat prices both swine and chicken Swine shortage due to African swine fever (ASF), rising momentum of swine prices esp
Slide 19: Appendix A: Highlights: 3Yr Historical Results
Appendix A: Highlights : 3Yr Historical Results
Slide 20: Gross Profit Margin & Operating Profit Margin
2019 : Results Briefing Gross Profit Margin & Operating Profit Margin Page 19 GPM GPM Thai-Livestock OPM ** Thai-Aqua OPM ** 20.0% 25.0% 14.1% 15.0% 12.2%13.1% 12.4% 12.6% 20.0% 10.7% 11.0% 10.0% 7.9% 7.7% 6.8% 13.6% 15.0% 12.5% 5.1% 5.9% 10.7% 10.0% 10.8% 4.1% 4.0% 5.0% 3.5% 2.7% 1.9% 1.7% 10.0% 8.
Slide 21: Thailand Operations – Export Destination
2019 : Results Briefing Thailand Operations – Export Destination Page 20 Y2017 Y2018 Y2019 Asia Asia Asia 64% 68% 69% EU EU EU Others USA 27% 22% 20% Others USA Others USA 3% 6% 4% 6% 4% 7% Asia EU USA Others Asia EU USA Others Asia EU USA Others Farm Farm Farm THB 8,531 million +15% THB 7,473 milli
Slide 22: Consolidated Income Statement Highlight
2019 : Results Briefing Consolidated Income Statement Highlight Page 21 Full Year 2017 2018 % Change 2019 % Change Net sales 501,507 541,937 8% 532,573 -2% Gross Profit Margin (%) 12.0% 12.1% 14.3% EBITDA 32,420 39,559 22% 47,551 20% EBIT 11,172 17,151 54% 24,515 43% Share in Profit of Associates 7,
Slide 23: CAPEX & EBITDA
2019 : Results Briefing CAPEX & EBITDA Page 22 CAPEX EBITDA Unit: THB, m Unit: THB, m EBITDA Margin% CPP CPF 50,000 47,551 20.0% 45,000 18.0% 30,475 27,135 25,240 39,559 40,000 16.0% 35,000 32,420 14.0% 9,438 30,000 12.0% 6,527 25,000 8.9% 10.0% 10,503 20,000 7.3% 6.5% 8.0% 15,000 6.0% 21,037 20,608
Slide 24: Consolidated Net Profit, ROA and ROE
2019 : Results Briefing Consolidated Net Profit, ROA and ROE Page 23 Net Profit ROA & ROE Unit: THB, m ROA Gain on fair value adjustment on investment in associates Divestment and Dividend Equity (Share in Profit of Associates) EBIT 3.5% 3.8% 3.0% CAGR +10% 2017 2018 2019 8,214 ROA = Net Income (inc
Slide 25: Consolidated Net Profit - Quarterly
2019 : Results Briefing Consolidated Net Profit - Quarterly Page 24 Unit : THB, m 1Q 2Q 3Q 4Q 5,894 6,062 4,914 4,912 4,064 4,279 4,105 3,955 4,010 3,048 2,326 1,677 2017 2018 2019 Full Year: Net Profit 15,259 15,531 18,456
Slide 26: EPS & Dividends per Share
2019 : Results Briefing EPS & Dividends per Share Page 25 Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Dividend Semi-annually, not less than 30% CAGR +7% Policy of consolidated annual net profit 2.18 1.91 1.82 0.75 0.70 0.65 2017 2018 2019 2017 2018 2019
Slide 27: Appendix B: Products & Raw Materials Price Trend
Appendix B: Products & Raw Materials Price Trend Kitchen of The World
Slide 28: Average Farm Prices – Thailand
2019 : Results Briefing Average Farm Prices – Thailand Page 27 Thailand’s Broiler price (THB/kg) Average Price 46.0 Y17 Y18 Y19 Y2017 Y2018 Y2019 35.8 30.2 33.2 % Chg -16% +10% 41.0 39.3 36.6 36.8 34.4 35.0 36.0 33.2 32.7 32.3 32.5 30.4 31.0 29.8 29.6 29.0 26.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q1
Slide 29: Average Farm Prices – Thailand
2019 : Results Briefing Average Farm Prices – Thailand Page 28 Thailand’s Fresh Egg price (THB/piece) Average Price 4.0 Y17 Y18 Y19 Y2017 Y2018 Y2019 2.3 2.3 2.6 % Chg +3% +11% 2.9 3.0 2.7 2.5 2.6 2.6 2.6 2.5 2.3 2.2 2.1 2.2 2.1 2.2 2.0 1.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Slide 30: Average Raw Material Prices – Thailand
2019 : Results Briefing Average Raw Material Prices – Thailand Page 29 Thailand’s Corn price (THB/kg) Average Price 15.0 Y17 Y18 Y19 10.6 9.8 9.8 9.7 9.2 8.2 9.8 9.2 8.4 8.4 9.1 9.0 9.0 8.6 10.0 8.0 8.1 % Chg +20% -7% 5.0 Y2017 Y2018 Y2019 0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4
Slide 31: Vietnam: Average Market Price and Major Feed Raw Materials
2019 : Results Briefing Vietnam: Average Market Price and Major Feed Raw Materials Page 30 40,000 32,243 30,254 30,376 28,487 27,632 30,000 26,368 26,777 26,299 25,671 24,538 24,793 Broiler 22,872 (VND/kg) 20,000 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 80,000 65,391 60,000 50,693
Slide 32: Turkey: Average Market Price and Major Feed Raw Materials
2019 : Results Briefing Turkey: Average Market Price and Major Feed Raw Materials Page 31 6.00 4.77 4.59 4.67 4.67 4.72 4.20 3.36 3.67 4.00 3.06 3.31 3.17 3.20 Broiler 2.00 (TRY/kg) 0.00 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1.50 1.23 1.22 1.19 1.06 1.08 1.13 0.87 0.86 0.94 1.0
Slide 33: India: Average Market Price and Major Feed Raw Materials
2019 : Results Briefing India: Average Market Price and Major Feed Raw Materials Page 32 150.0 91.6 100.0 80.0 81.4 75.8 72.5 65.9 70.8 67.0 61.7 68.1 69.8 64.2 50.0 Broiler (INR/kg) 0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 500.0 363 400.0 310 333 288 303 302 287 283 305 275 2
Slide 34: Russia: Average Market Price and Major Feed Raw Materials
2019 : Results Briefing Russia: Average Market Price and Major Feed Raw Materials Page 33 120.0 110.0 100.2 99.1 101.1 94.2 96.9 96.5 94.5 100.0 90.1 86.1 81.8 81.2 Swine 80.0 (RUB/kg) 60.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 120.0 110.4 98.8 101.9 95.7 95.4 100.0 91.1 84.8 8
Slide 35: Appendix C: Highlights: 4Q19 results
Appendix C: Highlights: 4Q19 results
Slide 36: 4Q19 Results Highlights
2019 : Results Briefing 4Q19 Results Highlights Page 35 Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) -2%Y-o-Y +22%Y-o-Y +139%Y-o-Y 143,676 140,794 22,083 18,110 4,010 1,677 4Q18 4Q19 4Q18 4Q19 4Q18 4Q19 Consolidated sales 2% Y-o-Y Gross profit margin Net
Slide 37: 4Q19: Sales & Gross Profit Margin by Business
2019 : Results Briefing 4Q19: Sales & Gross Profit Margin by Business Page 36 -2% In THB, m 4Q18 143,676 140,794 4Q19 -1% 85,633 84,414 -2% 41,048 40,039 -4% -3% 10,272 9,848 6,723 6,493 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 6.8% 11.0% 6.6% 5.0% 15.7% 19.2% 13.5% 11.7%
Slide 38: 4Q19: Consolidated Sales Structure by Business
2019 : Results Briefing 4Q19: Consolidated Sales Structure by Business Page 37 Sales Breakdown Livestock Aquaculture Total 4Q18 4Q19 %Change 4Q18 4Q19 %Change 4Q18 4Q19 %Change Thailand 41,048 40,039 -2% 6,723 6,493 -3% 47,771 46,532 -3% Domestic 34,474 31,935 -7% 5,083 4,852 -5% 39,557 36,787 -7% E
Slide 39: 4Q19: Consolidated Sales by Products
2019 : Results Briefing 4Q19: Consolidated Sales by Products Page 38 Sales Breakdown by Products Feed Farm Food Total 4Q18 4Q19 %Change 4Q18 4Q19 %Change 4Q18 4Q19 %Change 4Q18 4Q19 %Change Thailand 12,437 9,695 -22% 22,810 23,608 3% 12,524 13,229 6% 47,771 46,532 -3% Domestic 12,419 9,682 -22% 20,8
Slide 40: Appendix D: Group of CPP's Associate Companies & Joint Ventures
Appendix D: Group of CPP’s Associate Companies & Joint Ventures Kitchen of The World
Slide 41: Group of CPP's Associate Companies & Joint Ventures
2019 : Results Briefing Group of CPP’s Associate Companies & Joint Ventures Page 40 As of Decemb er 31, 2019 No. Associates Type of Business Direct and Indirect Interest (%) 1 Chia Tai (Cixi) Investment Mangement Ltd. Provision of Consulting service on economic and trade 25.78 2 Conti Chia Tai Inter
Slide 42: Appendix E: Product Samples & Retail Outlet Formats
Appendix E: Product Samples & Retail Outlet Formats Kitchen of The World
Slide 43: Food Retail Products
2019 : Results Briefing Food Retail Products Page 42
Slide 44: Food Retail Products
2019 : Results Briefing Food Retail Products Page 43
Slide 45: Food Retail Products
2019 : Results Briefing Food Retail Products Page 44
Slide 46: Food Service: Five Stars Chain
2019 : Results Briefing Food Service : Five Stars Chain Page 45 More Than 5,000 Outlets Vietnam India Cambodia Laos Philippines
Slide 47: Food Service: Chester's
2019 : Results Briefing Food Service : Chester’s Page 46 188 Outlets
Slide 48: Food Retail Outlets
2019 : Results Briefing Food Retail Outlets Page 47 322 Stores 21 Stores
Slide 49: CP CHOZEN LIMITED
2019 : Results Briefing CP CHOZEN LIMITED Page 48 23 Kiosks
Slide 50: Dak Galbi & WOK Station
2019 : Results Briefing Dak Galbi & WOK Station Page 49 8 Branches 5 Branches
Slide 51: 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 presentation
Slide 52: Kitchen of The World
Kitchen of The World
Charoen Pokphand Foods PCL — FY2019 Earnings Presentation on 6ix