Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — FY2020 Earnings Presentation
55 slides from Charoen Pokphand Foods Public's earnings presentation, Feb 25, 2021
Slide 1: FY2020 Results Briefing
FY2020 Results Briefing Investor Presentation February 25, 2021
Slide 2: Contents
Contents Business Overview 02 FY2020 Financial Results 11 FY 2021 Outlook 19 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Highlights 4Q20 Results D: Group of Associate Companies & Joint Ventures E: Product Sample & Retail Outlet Format P.1
Slide 3: Why Invest in CPF
Why Invest in CPF Our Vision is… “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 return to sharehol
Slide 4: Sustainability
Sustainability CPF commits to support 13 of 17 Sustainable Development Goals which align with our capacity and potential. CPF is a participant in the United Nations Global Compact P.3
Slide 5: Company Highlights
Company Highlights Market Cap THB 250 billion Sales in FY2020 THB 590 billion (or ~USD8.3 billion) as of Feb 24, 2021 (or ~USD19.6 billion) Sales Breakdown • 8,611 million shares (paid-up) with par THB 1.00 per share Livestock, TH-Export, Feed, 5% • Book Value THB 22.13* per share 88% 37% Farm, 47%
Slide 6: Vertically Integrated Business in Thailand
Vertically Integrated Business in Thailand The integrated food process to offer top-quality products in terms of nutrition, taste, food safety, and traceability with the focus to maintain world-class, modern production process as well as efficient and ecofriendly consumption of natural resources. Fe
Slide 7: CPF Geographical Footprints
CPF Geographical Footprints • Operations and investment in 17 countries catered to > 4 billion population • Export to more than 40 countries across 5 continents Russia Canada Livestock feed Swine integrated business Swine farming Chicken integrated business USA Ready to eat foods UK Chilled and Froz
Slide 8: Our Strategy for Growth
Our Strategy for Growth 1 Fully integrated business model Globalization by establishing a proper 2 business model suitable for each strategic market Expand Market in 17 Countries Value-added business by expanding 3 portfolio towards innovative products and services to serve rising demands P.7
Slide 9: Our Execution
Our Execution Create value use innovation in order to add value to product, process, and business model. Digital Transformation utilize digital tools to improve operation efficiency and to better serve needs of customer. Sustainability ensure sustainable growth Fight against Covid-19 Promote Food Se
Slide 10: CPF Operation Structure
CPF Operation Structure (as of Dec 31, 2020) FY2020 : Sales: THB 589,713 m Net Profit: THB 26,022 m 31% of Sales 69% of Sales Associates & CPF Thailand 1 CPF International Joint Ventures (2) 26% of Sales 45% of sales 24% of sales CPP- HKSE:43 UK (99.99%) CP Meiji (59.99%) Domestic Westbridge (99.99%
Slide 11: Transactions Finalized in Q4/2020
Transactions Finalized in Q4/2020 Acquisition of Swine Business in China • Transaction finalized since 1 Dec. 2020 • Deconsolidation of CTI since December • Addition equity income • Earning accretive • 2020 Actual profit outperformed warranted level • China feed warranted at 140MUSD • China swine fa
Slide 12: FY2020 Performance Summary
FY2020 Performance Summary FY2020 VS FY2019 Sales Revenue Breakdown Sales Revenue 11% Thailand 31% China 27% Revenue +3% YoY Revenue +22% YoY Gross Profit +41% • Swine market price up 10% Continue consolidated subsidiaries Margin: due to regional supply • Chicken price soften due to FY19 : 14% short
Slide 13: FY2020: Sales & Profit Margin by Business
FY2020: Sales & Profit Margin by Business In THB, m Y2019 Y2020 +11% 589,713 532,573 +18% 362,898 +2% 307,755 -5% 150,182 153,596 +5% 48,852 46,245 25,784 26,974 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 12.1% 16.1% 7.5% 12.4% 15.6% 20.0% 17.0% 14.7% 14.3% 18.2% OPM ** 1.9%
Slide 14: FY2020: Sales Structure by Business
FY2020: Sales Structure by Business Sales B r eakdown Livestock Aquaculture Total 20 19 20 20 %Ch an g e 20 19 20 20 %Ch an g e 20 19 20 20 %Ch an g e Thailand 150,182 153,596 2% 25,784 26,974 5% 175,966 180,570 3% Domestic 123,440 129,856 5% 20,470 21,573 5% 143,910 151,429 5% Export 26,742 23,740
Slide 15: FY2020: Sales Structure by Products
FY2020: Sales Structure by Products Sales B r eakdown b y Pr oducts Feed Farm Food Total 20 19 20 20 %Ch an g e 20 19 20 20 %Ch an g e 20 19 20 20 %Ch an g e 20 19 20 20 %Ch an g e Thailand 38,5 0 2 38,621 0% 89,40 9 98,45 8 10 % 48,0 5 5 43,491 -9% 175 ,966 180 ,5 70 3% Domestic 38,427 38,563 0% 81
Slide 16: FY2020: Consolidated Income Statement Highlight
FY2020: Consolidated Income Statement Highlight Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year 2019 2020 %Chg. 2019 2020 %Chg. 2019 2020 %Chg. 2019 2020 %Chg. 2019 2020 %Chg. Net sales 125,286 138,135 10% 133,897 143,805 7% 132,597 157,805 19% 140,794 149,968 7% 532,573 589,713 11% Gross Profit M
Slide 17: Financial Status
Financial Status (As of Dec 31,2020) Interest Bearing Debt: THB 384,246 m Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 331,107* 384,246* 288,710* 328,452* 1.4x 1.4x 1.2x 1.2x 2017 2018 2019 2020 2017 2018 2019 2020 Cash and Cash Equivalent Net D/EBITDA (THB, m) 57,035 31,478 32,094 22,97
Slide 18: FY2020 Investment and Financing Activities
FY2020 Investment and Financing Activities 1Q 2Q 3Q 4Q January June August November Sheng Da Foods Co.,Ltd. (Taiwan,RPC) Financing Activity Financing Activity Sales of Agri Products & International trade Thai Baht Debenture Completion of swine business acquisition Thai Baht Debenture 100.00% THB 25,
Slide 19: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies Stock Pr ice Mar ket Cap . CPF Holding % Holding Value (Local Cur r .) (THB mm) (THB mm) (As of Decemb er 31, 20 20 ) CPALL THB 5 8.25 5 23,266 34.10 % 178,434 (SET:CPALL) CPP HKD 0 .74 69,115 5 2.24% 36,10 6 (HKSE:0 0 43) TRUE THB 3.44 114,787 2.21% 2,5 37 (SET:
Slide 20: FY2021 Outlook
FY2021 Outlook Growth Target Expected better performance from efficiency improvement, volume growth, strong product price, and significant increase in equity income. Key Drivers & Focus Improvement of Covid-19 situation to drive better consumption demand Swine capacity expansion. Healthy price in As
Slide 21: Appendix A
Appendix A Highlights : 3Yr Historical Results
Slide 22: Gross Profit Margin & Operating Profit Margin
Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM ** Thai-Aqua OPM ** 25.0% 25.0% 19.1% 20.0% 16.0% 15.4% 20.0% 14.1% 13.4% 16.3% 15.0% 12.6% 10.7% 11.0% 15.0% 13.1% 10.0% 7.7% 6.8% 7.7% 10.7% 10.0% 10.8% 10.6% 9.9% 9.4% 5.1% 5.9% 4.0% 5.3% 5.2% 10.0% 7.8% 5.0% 3.0% 6.6% 6.6%
Slide 23: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2018 FY2019 FY2020 Asia Asia Asia 69% 81% 68% EU 22% EU Others USA 20% USA EU Others USA Others 4% 6% 4% 7% 4% 6% 9% Asia EU USA Others Asia EU USA Others Asia EU USA Others Farm Farm Farm THB 7,473 million -12% THB 8,038 million +8% THB 8,506 million +6% A
Slide 24: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year FY2018 FY2019 % Change FY2020 % Change Net sales 541,937 532,573 -2% 589,713 11% Gross Profit Margin (%) 12.1% 14.3% 18.2% EBIT 17,151 24,511 43% 53,364 118% EBITDA 39,559 47,547 20% 81,692 72% Share in Profit of Associates 8,343 8,893 7% 9,254 4% Fi
Slide 25: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m CPP EBITDA Margin% CPF 90,000 20.0% 81,692 18.0% 80,000 27,135 25,240 26,523 16.0% 70,000 13.9% 14.0% 60,000 47,551 12.0% 6,527 50,000 10,503 13,197 39,559 8.9% 10.0% 40,000 7.3% 8.0% 30,000 6.0% 20,608 20,000 14,737 4.0% 13,326 10,000 2.0% - 0.0
Slide 26: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Unit: THB, m ROA Gain on fair value adjustment on investment Divestment and Dividend 6.3% Equity (Share in Profit of Associates) EBIT 3.5% 3.8% CAGR +29% 2018 2019 2020 3,909 1,693 ROA = Net Income (include Non-Controlling Interest )/Average
Slide 27: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m 1Q 7,475 2Q 3Q 6,408 6,062 6,111 6,028 4Q 5,894 4,912 4,279 4,105 4,010 3,048 1,677 2018 2019 2020 Full Year: 15,531 18,456 26,022 Net Profit P.26
Slide 28: EPS & Dividends per Share
EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Dividend Semi-annually, not less than 30% of CAGR +31% Policy consolidated annual net profit Final Dividend Interim Dividend 3.14 1.00 2.18 0.70 0.60 1.82 0.65 0.30 0.40 0.35 0.40 0.30 2018 2019 2020 201
Slide 29: Appendix B
Appendix B Products & Raw Materials Price Trend
Slide 30: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 46.0 Y18 Y19 Y20 30.2 33.2 30.4 41.0 % Chg +10% -9% 36.0 34.4 32.5 33.2 32.7 32.3 31.5 31.3 31.5 31.0 29.8 29.6 29.7 29.0 29.0 26.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Current Price Thailand’s Pork
Slide 31: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Fresh Egg price (THB/piece) Average Price 4.0 Y18 Y19 Y20 2.3 2.6 2.5 2.9 % Chg +11% -2% 3.0 2.6 2.7 2.7 2.6 2.5 2.6 2.5 2.5 2.4 2.2 2.1 2.2 2.0 1.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Current Price Thailand’s White Shrimp price (THB/
Slide 32: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 15.0 Y18 Y19 Y20 9.8 10.6 9.8 9.1 9.7 9.0 9.2 9.0 8.9 9.3 9.1 9.5 9.8 9.2 9.0 10.0 8.6 % Chg -7% -3% 5.0 0.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Current Price Thailand’s Soybean Meal price (TH
Slide 33: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 40,000 32,243 30,254 30,376 28,487 27,632 30,000 26,299 25,671 22,872 23,376 24,912 22,884 23,892 Broiler (VND/kg) 20,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 100,000 79,285 80,000 76,625 74,360 68,344 65,391 60,000 50
Slide 34: Turkey: Average Market Price and Major Feed Raw Materials
Turkey: Average Market Price and Major Feed Raw Materials 6.00 4.91 5.62 5.81 5.93 4.77 4.59 4.67 4.67 4.72 4.20 3.36 3.67 4.00 Broiler 2.00 (TRY/kg) 0.00 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2.00 1.76 1.29 1.40 1.47 1.50 1.08 1.13 1.23 1.22 1.19 0.94 1.06 0.86 1.00 Corn 0.50
Slide 35: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 81.4 91.6 91.0 84.1 87.0 100.0 68.1 75.8 69.8 64.2 72.5 61.7 50.9 50.0 Broiler (INR/kg) 0.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 500.0 400.0 303 302 305 327 275 287 257 283 290 285 282 300.0 224 Shrimp 200.0 (60 pi
Slide 36: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 120.0 110.0 99.1 101.1 103.3 96.5 94.5 93.1 100.0 90.1 86.3 81.8 81.2 81.7 Swine 80.0 (RUB/kg) 60.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 120.0 110.4 98.8 101.9 97.4 95.7 91.1 95.4 91.2 100.0 87.5 88.6 83.2 73.6 Broiler
Slide 37: Cambodia: Average Market Price and Major Feed Raw Materials
Cambodia: Average Market Price and Major Feed Raw Materials 16,000 13,187 14,000 11,785 12,580 11,987 12,000 10,059 10,676 8,342 8,692 8,573 8,574 8,945 10,000 Swine 8,000 6,617 (KHR/kg) 6,000 4,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1,200 1,137 1,135 1,116 1,100 1,093 1,077
Slide 38: Appendix C
Appendix C Highlights : 4Q20 Results
Slide 39: 4Q20 Results Highlights
4Q20 Results Highlights Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) +7%Y-o-Y +16%Y-o-Y +60%Y-o-Y 140,794 149,968 25,705 22,083 6,408 4,010 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 Consolidated sales +7% Y-o-Y Gross profit margin Net profit margin 4Q19 15.7% 4Q19 2.
Slide 40: 4Q20: Sales & Gross Profit Margin by Business
4Q20: Sales & Gross Profit Margin by Business In THB, m 4Q19 +7% 4Q20 149,968 +12% 140,794 94,501 84,414 -1% +9% -9% 40,039 39,457 6,493 7,061 9,848 8,949 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 11.0% 16.0% 5.0% 9.4% 19.2% 19.0% 11.7% 8.9% 15.7% 17.1% OPM** -0.1% 5.2% -3.
Slide 41: 4Q20: Consolidated Sales Structure by Business
4Q20: Consolidated Sales Structure by Business Sales B r eakdown Livestock Aquacultur e Total 4Q 19 4Q 20 %Ch an g e 4Q 19 4Q 20 %Ch an g e 4Q 19 4Q 20 %Ch an g e Thailand 40,039 39,457 -1% 6,493 7,061 9% 46,532 46,518 0% Domestic 31,935 33,333 4% 4,852 5,253 8% 36,787 38,586 5% Export 8,104 6,124 -
Slide 42: 4Q20: Consolidated Sales Structure by Products
4Q20: Consolidated Sales Structure by Products Sales B reakdown b y Pr oducts Feed Far m Food Total 4Q 19 4Q 20 %Ch an g e 4Q 19 4Q 20 %Ch an g e 4Q 19 4Q 20 %Ch an g e 4Q 19 4Q 20 %Ch an g e Thailand 9,695 9,793 1% 23,60 8 25 ,123 6% 13,229 11,60 2 -12% 46,5 32 46,5 18 0% Domestic 9,682 9,772 1% 20
Slide 43: Appendix D
Appendix D Group of Associate Companies & Joint Ventures
Slide 44: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures As of December 31, 2020 Associates Type of Business CPF's Direct and Indirect Interest (%) Arbor Acres Thailand Co., Ltd. Broiler Breeder business 49.98 Ross Breeders Siam Co., Ltd. Broiler Breeder business 49.99 CP ALL Public Company Limited Convinience
Slide 45: Appendix E
Appendix E Product Samples & Retail Outlet Formats
Slide 46: Food Retail Products
DoubtePork & Cheese “Ep | aulvanGa FRESH - Bulgaria_
Slide 47: Food Retail Products
Food Retail Products RAMS —ZBY RE Fe> PEPPER KICKS MALS | “a | SREB | ‘THAL BASIL SAUCE) Wt ues ext CHICKEN THA BASIL SSS Ahem Asia Authentic, Asia , Thai Massaman Nie A Curry Chicken yw Chicken # NN with Jasmine lice WL =a 2 Fer GT wong (41
Slide 48: Food Retail Products
Food Retail Products Be Sclitog the beautiful foods company” SuperDrob BUTTER F €u itp 2 4, Ls 7 ae Po oe COTS r FatingWell|22__ // sauce Noodle Bowls » Pa ©) Superdrod © superdrob fs | appetizing aaa O/ =: ESR = Surprising - faszerowany [a cucen SUDETFIllet ty, Superkurezak y cue — SUPETROIIs chick
Slide 49: Food Service : Five Stars Chain
Food Service : Five Stars Chain More Than 5,000 Outlets Vietnam India Cambodia Laos Philippines P.48
Slide 50: Food Service : Chester's Outlets
Food Service : Chester’s 186 Outlets P.49
Slide 51: Food Retail Outlets
Food Retail Outlets 331 Stores 23 Stores P.50
Slide 52: CP CHOZEN LIMITED Kiosks
CP CHOZEN LIMITED 23 Kiosks P.51
Slide 53: CP Fresh
CP Fresh 81Branches Branch P.52
Slide 54: 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 55: Kitchen of The World
Kitchen of The World
Charoen Pokphand Foods Public — FY2020 Earnings Presentation on 6ix