Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Japfa — 9M2023 Earnings Presentation
46 slides from Singapore Exchange's earnings presentation, 2023
Slide 1: Japfa Ltd Investor Presentation 9M2023
Japfa Ltd Investor Presentation 9M2023
Slide 2: Index
Index 1 Group Overview 2 Key Highlights 3 9M2023 Financial & Operational Analysis 4 Other Financial Highlights 5 General Updates 6 Appendix: Segment Information and Other Information 1
Slide 3: Group Overview
GROUP OVERVIEW Dora
Slide 4: Group Overview Feeding Emerging Asia
Group Overview ▪ Established since 1971 ▪ Pure-play animal protein producer Feeding Emerging Asia in growing emerging markets ▪ Japfa Ltd’s market capitalisation: approx. US$ 321.3million1 ▪ FY2022 revenue: US$4.4 billion 1 As at 30 September 2023 3
Slide 5: Leading Pan-Asian Industrialised Agri-Food Company
Leading Pan-Asian Industrialised Agri-Food Company WHAT WE DO WHERE WE ARE WHY WE DO IT We produce quality We employ over 1.7 billion people living protein staples and 38,000 people across in our target markets packaged food that Singapore, Indonesia, More than 20% of the nourish millions of Vietnam
Slide 6: Vertically Integrated Business Model
Vertically Integrated Business Across Entire Value Chain Business Segments PT Japfa Tbk Animal Protein Other (APO) Vertically Integrated Business Model India Indonesia Vietnam Bangladesh Myanmar UPSTREAM Animal Feed Poultry Aqua Poultry Swine Poultry Production Feed Feed Feed Feed Feed Breeding Farm
Slide 7: Japfa's Core Competencies
Japfa’s Core Competencies Industrialized approach to farming and food production CORE COMPETENCIES Vertically Integrated Business Model FEED LARGE SCALE UPSTREAM Enjoys economies of • Mega-scale farming operations with over 38,000 scale and an employees across growing markets established network • S
Slide 8: Growth Prospects – Animal Protein
Growth Prospects – Animal Protein Poultry consumption per capita1 Strong market positions ▪ As GDP per capita increases, there is more Malaysia 50.1 upside potential as diets Poultry Feed Day Old Chicks (DOC) evolve to include Vietnam 17.2 more meat-based protein Ranking3: #2 Ranking3: #2 from exist
Slide 9: Key Highlights
KEY HIGHLIGHTS Dora
Slide 10: Key Highlights for 9M2023
Key Highlights for 9M2023 • Profitability is back on track in 3Q2023 after a weak first-half. • In 3Q2023 alone, Japfa recorded an Operating Profit of US$101.8m from stronger poultry feed margins, as well as higher selling prices in poultry and swine, demonstrating its ability to readily harness mar
Slide 11: 9M2023 Group Financials
9M2023 Group Financials Revenue Operating Profit EBITDA PATMI Core PATMI w/o Forex US$m US$m US$m US$m US$m -0.6% y-o-y -35.1% y-o-y -24.0% y-o-y n/m n/m 3,313.9 3,293.2 257.8 195.8 162.7 105.6 21.9 (22.7) 44.1 (17.0) 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 Despite rece
Slide 12: Core PATMI w/o Forex Rolling Basis
CORE PATMI w/o FOREX ROLLING BASIS
Slide 13: Rolling Core PATMI w/o Forex For The Group
Rolling Core PATMI w/o Forex For The Group 126.0 114.0 117.1 96.7 80.6 79.1 65.3 49.4 44.4 33.4 46.4 15.5 9.8 44.8 6.9 26.0 18.5 24.7 27.5 27.3 18.8 (1.0) 32.5 3Q2023 12.5 (2.2) 4.3 (8.7) (22.1) (36.6) 4Q2022 (51.4) (53.4) 1Q2023 (37.9) (81.6) (11.4) 2Q2023 Sep'19 Dec'19 Mar'20 Jun'20 Sep'20 Dec'20
Slide 14: Rolling Core PATMI w/o Forex by Business Segments
Rolling Core PATMI w/o Forex by Business Segments Rolling Core PATMI w/o Forex attributable to Japfa Ltd (US$m) 59.5 71.9 90.3 17.7 75.3 33.0 56.7 23.9 88.8 4.1 77.8 69.7 68.2 66.9 60.3 51.1 56.7 54.3 48.1 43.4 44.1 46.1 35.7 30.4 15.8 9.3 (14.3) (39.1) (37.7) (47.3) (49.7) (65.4) (84.4) (78.5) (53.
Slide 15: Performance back on track: PT Japfa Tbk
Performance back on track: PT Japfa Tbk US$m Japfa Ltd 120 101.8 Operating Profit Quarterly Trend 80 69.5 US$m 59.1 PT Japfa Tbk 34.1 32.4 120 40 (7.2) (28… 87.9 0 (40) 2023 80 2022 66.4 62.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 47.9 40 33.4 PT Japfa Tbk 18.3 US$m (0.3) 120 87.9 0 80 66.4 62.7 47.9 2022 2023 33.4 4
Slide 16: Performance back on track: APO-Vietnam
Performance back on track: APO-Vietnam US$m Japfa Ltd US$m 120 101.8 120 Operating Profit Quarterly Trend 80 69.5 59.1 34.1 32.4 APO-Vietnam 40 80 (7.2) (28… 0 (40) 2022 2023 40 1Q 2Q 3Q 4Q 1Q 2Q 3Q 12.1 1.9 2.6 US$m (10.8) (28.1) (25.3) (16.1) 120 PT Japfa Tbk 0 87.9 80 66.4 62.7 47.9 2022 2023 33.
Slide 17: 9M2023 Financial & Operational Analysis
9M2023 FINANCIAL & OPERATIONAL ANALYSIS
Slide 18: 9M2023 Segmental Overview
9M2023 Segmental Overview GROUP (US$m) 9M2022 9M2023 %change Revenue 3,313.9 3,293.2 -0.6% Operating Profit 162.7 105.6 -35.1% Operating Profit Margin 4.9% 3.2% -1.7 pts Japfa Ltd EBITDA 257.8 195.8 -24.0% PAT 69.1 6.0 -91.3% PATMI 21.9 (22.7) n/m Core PATMI w/o Forex 44.1 (17.0) n/m BUSINESS SEGMEN
Slide 19: PT Japfa Tbk – Financial Performance
PT Japfa Tbk – Financial Performance Revenue Operating Profit EBITDA PAT US$m US$m US$m US$m -0.3% y-o-y -20.2% y-o-y -16.5% y-o-y -38.7% y-o-y 2,508.8 2,501.0 226.2 188.7 162.4 129.7 98.1 60.1 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 Profitability is improving but 9M2023 results are
Slide 20: PT Japfa Tbk: Managing Cyclicality
PT Japfa Tbk: Managing Cyclicality US$m Revenue US$m Operating Profit 240 3,500 3,283.0 215.3 217.9 3,128.5 200 180.8 3,000 2,750.9 173.9 2,527.5 2,501.0 160 135.4 2,500 2,000 120 1,500 80 101.4 95.3 86.9 82.4 87.9 830.6 891.7 1,000 778.7 66.4 62.7 40 63.3 59.4 41.0 47.9 500 33.9 31.1 11.6 26.1 33.4
Slide 21: PT Japfa Tbk: Growth Plans
PT Japfa Tbk: Growth Plans Recalibrate short term growth plans ▪ In the light of the current challenging conditions, we have recalibrated our growth plans and prudently adjusted our Capex accordingly. We have a proven track record to adjust capex roll-out according to the prevailing market situation
Slide 22: PT Japfa Tbk: Aquaculture 4-year trend
PT Japfa Tbk: Aquaculture 4-year trend Revenue Operating Profit US$m US$m 350 318.7 25 22.3 300 275.7 20.0 241.7 237.3 20 250 225.1 200 14.1 14.1 15 150 8.5 10 100 70.5 78.8 75.8 4.8 5 50 2.0 1.7 0 0 FY2019 FY2020 FY2021 FY2022 1Q2023 2Q2023 3Q2023 FY2019 FY2020 FY2021 FY2022 1Q2023 2Q2023 3Q2023 Th
Slide 23: PT Japfa Tbk: Vaksindo 4-year trend
PT Japfa Tbk: Vaksindo 4-year trend Revenue Operating Profit US$m US$m 40 34.8 16 35 32.8 13.6 14 12.6 30 27.9 26.4 26.4 12 25 10.0 9.9 9.9 10 20 8 15 6 8.8 8.6 9.0 10 3.6 3.5 4 2.8 5 2 0 FY2019 FY2020 FY2021 FY2022 1Q2023 2Q2023 3Q2023 0 FY2019 FY2020 FY2021 FY2022 1Q2023 2Q2023 3Q2023 Vaksindo con
Slide 24: APO – Financial Performance
APO – Financial Performance Revenue Operating Profit EBITDA PAT US$m US$m US$m US$m -0.4% y-o-y n/m n/m n/m 775.3 772.5 (30.7) (53.0) (6.0) (33.4) 24.2 (1.6) 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 9M2022 9M2023 Despite recent improvements, 9M2023 results still affected by weak performance in the
Slide 25: APO-Vietnam
APO-Vietnam US$m US$m Revenue 150 Operating Profit 900 789.7 102.1 800 100 697.8 700 592.5 604.0 600 50 31.8 (29.3) 500 445.6 8.1 12.1 (34.4) (25.3) (16.1) 400 0 300 208.1 217.7 178.2 (50) FY2019 FY2020 FY2021 FY2022 1Q2023 2Q2023 3Q2023 200 100 Inflation (100) 0 Covid-19 FY2019 FY2020 FY2021 FY2022
Slide 26: APO–Vietnam: Platform for growth
APO–Vietnam : Platform for growth We believe the current issues of margin shrinkage and ASF are temporary setbacks and the longer term prospects of economic growth in Vietnam to be sound. This should lead to higher demand for staple proteins in future. Japfa has made strategic investments to set a s
Slide 27: APO-Vietnam: Recalibrate growth plans
APO-Vietnam: Recalibrate growth plans • Our original aggressive growth plan for 2023 has been recalibrated until the “ASP relative to feed cost” is clearly trending upwards. This includes freezing non-essential growth capex. This is a risk-mitigating move in the event that the ASP/feed cost ratio re
Slide 28: Animal Protein – Operational Performance
Animal Protein – Operational Performance ('000 tons) Animal Feed - Poultry Sales Volume 4,000 3,677 3,652 3,500 3,000 2,500 2,000 1,254 1,277 1,262 1,124 1,266 1,500 1,000 500 0 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 9M2022 9M2023 PT Japfa Tbk Japfa India Japfa Vietnam Japfa Myanmar (mil birds) DOC - Br
Slide 29: Animal Protein – Operational Performance
Animal Protein – Operational Performance ('000 tons) Aquaculture - Aqua-feed: Sales Volume 300 250 200 150 273.3 238.7 100 50 86.5 80.6 82.5 81.5 74.7 0 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 9M2022 9M2023 PT Japfa Tbk ('000 tons) ('000 tons) Swine Fattening: Sales Volume Animal Feed - Swine: Sales Volu
Slide 30: Other Financial Highlights
OTHER FINANCIAL HIGHLIGHTS Dora
Slide 31: Other Financial Highlights
Other Financial Highlights Balance Sheet Highlights (US$m) As at As at 31-Dec-2022 30-Sep-2023 % change Total Assets 3,067.9 3,066.6 0% Cash and cash equivalent 280.7 172.9 -38% Total Inventory 948.9 984.5 4% - Inventory (excluding fattening livestock) 743.7 774.0 4% - Inventory - Fattening Livestoc
Slide 32: Net Debt Profile as at 30 September 2023
Net Debt Profile as at 30 September 2023 Animal Protein - PT Japfa Tbk Others Total Other Bonds & other term loans 576 93 668 Working capital loans 284 136 195 614 Total Debt 860 229 195 1,283 Cash 93 30 50 173 Net Debt 767 199 144 1,110 ▪ PT Japfa Tbk debt includes US$350m 5.375% Sustainability-Lin
Slide 33: Capex FY2021 – 9M2023
Outstanding Tbk Capex FY2021 – 9M2023 FY2021 Total: FY2022 Total: 9M2023 Total: US$151m US$206m US$115m 83 38 19 113 123 97 2021 2022 9M2023 PT Japfa Tbk APO The chart above refers to capital expenditure for new property, plant and equipment as well as maintenance capex 32
Slide 34: General Updates
GENERAL UPDATES Dora
Slide 35: Major Global External Factors
Major Global External Factors ▪ Geopolitical tensions, especially the situation in Europe and, more recently, in the Middle East, may cause disruptions to global economies, supply chains and commodities prices. These may impact the cost of raw materials and consumer purchasing power. We continue to
Slide 36: Appendix
APPENDIX roca
Slide 37: Poultry Feed: Stable Base Margin
Poultry Feed: Stable Base Margin 400 16% 350 14% LTM OPM Poultry Feed Covid Impact 12% 300 Price Change3 10% 250 8% 200 6% 150 4% 100 2% 50 0% 1 LTM Poultry Feed OPM (%) SBM Price 2,3 Corn Price 2,3 USD/IDR 3 Poultry Feed OPM has been stable around 10% - 11% as feed has the ability to effectively pa
Slide 38: Segment Information – 9M2023
Segment Information – 9M2023 9M 2023 (Jan-Sep 2023) Notes: • Animal Protein – PT Japfa Tbk refers to animal Continuing Operations protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). ANIMAL PROTEIN OTHERS GROUP • Animal Protein – Other (APO) refers to the TBK AP Oth
Slide 39: Segment Information – 9M2022
Segment Information – 9M2022 9M 2022 (Jan-Sep 2022) Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Discontinue Comfeed Indonesia Tbk (“PT Japfa Tbk”). Continuing Operations d Operations • Animal Protein – Other (APO) refers to the animal protei
Slide 40: Segment Information – 3Q2023
Segment Information – 3Q2023 3Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). • Animal Protein – Other (APO) refers to the Continuing Operations animal protein operations in Vietnam, India, and Myan
Slide 41: Segment Information – 2Q2023
Segment Information – 2Q2023 2Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). • Animal Protein – Other (APO) refers to the Continuing Operations animal protein operations in Vietnam, India, and ANIM
Slide 42: Segment Information – 1Q2023
Segment Information – 1Q2023 1Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). Continuing Operations • Animal Protein – Other (APO) refers to the animal protein operations in Vietnam, India, and ANIM
Slide 43: Segment Information – 4Q2022
Segment Information – 4Q2022 4Q 2022 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Discontinue Comfeed Indonesia Tbk (“PT Japfa Tbk”). Continuing Operations d Operations • Animal Protein – Other (APO) refers to the animal protein operations in
Slide 44: Segment Information – 3Q2022
Segment Information – 3Q2022 3Q 2022 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Discontinue Comfeed Indonesia Tbk (“PT Japfa Tbk”). Continuing Operations d Operations • Animal Protein – Other (APO) refers to the animal protein operations in
Slide 45: Segment Information – FY2022
Segment Information – FY2022 YTD DEC 2022 Notes: • Animal Protein – PT Japfa Tbk refers to animal protein operations through IDX-listed PT Japfa Discontinue Comfeed Indonesia Tbk (“PT Japfa Tbk”). • Animal Protein – Other (APO) refers to the Continuing Operations d Operations animal protein operatio
Slide 46: Important Notice
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 the Japfa Group. Shareholders and potential investors are advised to seek independent advice in the making of any investment