Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — Q2 2020 Earnings Presentation
38 slides from Gfpt Public's earnings presentation, Aug 11, 2020
Slide 1: 2Q2020 Results Presentation
GFPT Public Company Limited 2Q2020 Results Presentation Analyst Meeting No.3/2020 11 August 2020
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about GFPT Public Company Limited (“GFPT” or “the Company”) and its subsidiaries (jointly the “GFPT Group”) as at 30 June 2020 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation c
Slide 3: Agenda
Agenda GFPT Profile 2Q2020 Financial Results Broiler Industry Outlook 2020 Guidance Q&A Appendix: Key Statistics Analyst Meeting No. 3/2020 | 11 August 2020 | page 3
Slide 4: About the Company
About the Company GFPT Public Company Limited (TB:GFPT), founded in 1981 with headquarters in Bangkok, Thailand, is one of The Thailand’s chicken processors and marketers. Company is specialized in fully vertical integrated chicken production starting from feed mill, grandparent breeder farm, pa
Slide 5: Good Food Good Chicken
Good Food Good Chicken We are committed to produce quality chicken meat according to international standards with attention to every stage of production to ensure, our chicken is fresh, clean, safe, and delicious in every bite. Analyst Meeting No. 3/2020 | 11 August 2020 | page 5
Slide 6: GFPT's Vision
GFPT’S VISION “GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production” MISSIONS Quality Satisfaction Responsibility Enhance product quality to Attention to the needs of Build awareness and the international standards customers responsible to society
Slide 7: Sustainability Development
Sustainability Development GFPT supported Sustainable Development Goals (SDGs) which was incorporated in the Company's objectives and operations; for example: SDGs 2 Zero hunger SDGs 4 Quality education SDGs 6 Clean water and sanitation SDGs 8 Decent work and economic growth SDGs 13 Climate action S
Slide 8: GFPT Profile
GFPT Profile Symbol GFPT Shareholding Structure as of 10 Mar 2020 Industry / Sector Agro & Food Industry / Agribusiness Excellent 2019 CG Score [90 – 100 CG Report Score] Anti - Corruption Certified to be a member of Collective Action Coalition: CAC Closed Price THB 13.30 per share (31/07/2020) Aver
Slide 9: Group Structure
Group Structure GFPT GFPT Public Company Limited Chicken Evisceration and Processed Food 5 Subsidiaries 2 Joint Ventures Keystone Foods Inc. [51%] McKey | 49.00% McKey Food Services (Thailand) Ltd. Frozen Processed Food KT | 98.28% FKT | 99.99% GFF | 99.99% Krungthai Food PCL. Krungthai Farm Co., Lt
Slide 10: Feed Mills, Farms and Primary Plants
Import Grand Parent Chicks Broiler Production = 9 months (PS Chicks Broiler) 6 wks raising to reach market weight Feed Mills GFPT Group Farm Primary Plants Sausage Plant KT1: Produce animal feed and 100% Company Own Farm Operation Chicken meat are sold to export market and Sausages are sol
Slide 11: Timeline
Timeline Listed in SET Stock split from THB 10 Additional Capital MKS: Broiler GFPT: New chicken GFPT Initially established to THB 1 per share Injection in GFN farm expansion processing plant (Thung Khwang) 1981 1992 2010 2012 2018 2019 1990 1991 1993 2003 2008 2014-2016 2017 99.99% in FKT 99.99% in
Slide 12: GFPT Group Expansion Plan
GFPT Group Expansion Plan Future Project GFPT Broiler Farm Raising capacity to reach 340,000 birds per day GFPT Slaughter House New slaughter house capacity at 150,000 birds per day GFPT Further Processing Plant Cooked product for export capacity at 24,000 MT per year McKey Further Processing Plant
Slide 13: Product
Product FEED FOOD Animal Feed [Pig, Layer Hen, Duck, Cow, etc.] Chicken Parts and Meat [Bone-in, Boneless, Cut-up, Marinated] Fish Feed Shrimp Feed Cooked Product [Fully Cooked, Par-fried, Breaded, Steamed, Roasted] FARM Day-old-Chick …………………... Live Broiler Processed Food [Sausage, Smoke Sausage, C
Slide 14: Y2019 Snapshot
Y2019 Snapshot Revenue by Segment 17,829 16,692 16,467 16,693 16,928 16,647 16,864 15,370 14,214 Farm, 12,472 30% 10,996 11,507 8,122 Food, 51% Feed, 19% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue by Destination Revenue by Currency Revenue by Product DOC, 3% Chicken EUR
Slide 15: Y2019 Market Position
Y2019 Market Position 3rd in Thai Chicken Export 6th in Thai Chicken Production GFPT GFPT Group Group 7% 13% Export by Destination Export by Product Type Others 8% China JP 23% 39% Raw Cooked 35% 65% EU 30% Source: Thai Broiler Processing Exporters Association Note: 2019 Thai Broiler Production = 1,
Slide 16: 2Q2020 Financial Results
*GFPT 202020 Financial Results
Slide 17: 2Q2020 Financial Results
2Q2020 Financial Results 2Q2020 Consolidated Revenue = THB 3.32 billion 2Q2020 Revenue Breakdown by Segment Business Segment of 2Q2020 2Q2019 Change GFPT Group THB million % THB million % THB million % Chicken Processing 1,353.24 40.75 2,164.38 49.79 (811.14) (37.48) Feed 761.00 22.91 756.30 17.40 4
Slide 18: 2Q2020 Consolidated Income Statement
2Q2020 Consolidated Income Statement (Unit in THB million) 2Q2019 %Sales 2Q2020 %Sales Change % Change Revenue from sales 4,346.60 100.00% 3,321.06 100.00% (1,025.54) (23.59%) Cost of sales (3,743.78) (86.13%) (2,846.23) (85.70%) (897.55) (23.97%) GROSS PROFIT 602.83 13.87% 474.83 14.30% (127.99) (2
Slide 19: 6M2020 Consolidated Income Statement
6M2020 Consolidated Income Statement (Unit in THB million) 6M2019 %Sales 6M2020 %Sales Change % Change Revenue from sales 8,312.61 100.00% 7,003.26 100.00% (1,309.35) (15.75%) Cost of sales (7,176.00) (86.33%) (5,988.71) (85.51%) (1,187.29) (16.55%) GROSS PROFIT 1,136.61 13.67% 1,014.55 14.49% (122.
Slide 20: 2Q2020 Financial Results
2Q2020 Financial Results Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 3,000 16.4% 18% 3,500 24% 15.0% 15.7% 20.4% 14.2% 14.7%14.3% 14.0% 19.4% 14.3% 14.4% 13.9% 18.6% 18.5% 21% 2,500 13.4% 15% 3,000 16.3% 17.8% 17.9% 12.2% 15.6% 16.0% 17.0% 16.8% 2,500 18% 14.5% 2,000 12% 15% 2,000 1,500
Slide 21: 2Q2020 Financial Results
2Q2020 Financial Results EPS (THB per share) Return on Asset (%) 2,000 1.211.42 1.31 1.33 153% 150% 25,000 13.3% 15% 147% 144% 1,800 141% 138% 11.6% 135% 132% 129% 10.6% 1,600 126% 123% 20,000 12% 0.95 0.95 120% 117% 114% 9.9% 1,400 111% 108% 0.83 105% 102% 8.3% 99% 96% 1,200 93% 90% 15,000 9% 87% 8
Slide 22: 2Q2020 Consolidated Financial Position
2Q2020 Consolidated Financial Position Selected Items (Unit in THB million) Y2019 Jun 20 Change % Change Cash and Cash Equivalents 1,087.26 1,864.27 777.02 71.47% Trade and Other Receivables 889.86 661.41 (228.45) (25.67%) Inventories 3,716.83 3,243.72 (473.11) (12.73%) Derivative Assets - 14.30 14.
Slide 23: 2Q2020 Consolidated Financial Position
2Q2020 Consolidated Financial Position Selected Items (Unit in THB million) Y2019 Jun 20 Change % Change Short - Term Loans from Financial Institutions 830.00 700.00 (130.00) (15.66%) Trade and Other Payables 982.01 1,367.62 385.60 39.27% Current Portion of Long-Term Loans from RPT - 393.00 393.00 1
Slide 24: 2Q2020 Consolidated Financial Position
2Q2020 Consolidated Financial Position Selected Items (Unit in THB million) 2Q2019 2Q2020 Change % Change EBIT 436.36 289.17 (147.19) (33.73%) Depreciation - Grandparent & Parent Chickens 149.37 136.91 (12.46) (8.35%) Depreciation & Amortization 186.13 188.51 2.39 1.28% EBITDA 771.86 614.59 (157.27)
Slide 25: 2Q2020 Consolidated Financial Position
2Q2020 Consolidated Financial Position Book Value (THB per share) 25,000 16,000 10.86 11.09 1167% 1164% 1161% 1158% 1155% 1152% 1149% 1146% 1143% 1140% 1137% 1134% 1131% 1128% 10.15 1125% 1122% 1119% 1116% 1113% 1110% 1107% 1104% 1101% 1098% 1095% 1092% 1089% 1086% 1083% 1080% 1077% 1074% 1071% 1068
Slide 26: 2Q2020 Interest-Bearing Debt
2Q2020 Financial Results 2Q2020 Interest-Bearing Debt = THB 3.41 billion Net Debt to EBITDA (THB million) 4,000 8.29 849% 846% 843% 840% 837% 834% 831% 828% 825% 822% 819% 816% 813% 810% 807% 804% 801% 798% 795% 792% 789% 786% 783% 780% 777% 774% 771% 768% 765% 762% 759% 756% 753% 750% 747% 744% 741
Slide 27: Y2020 Capital Expenditure
Investment (million THB) 1,145 1,264 886 924 912 882 946 575 545 594 536 581 610 456 2013 2014 2015 2016 2017 2018 2019 Breeder Stocks Fixed Assets Y2020 Capital Expenditure 1-1.2 Billion Broiler Farm Breeder Farm Primary Plant Analyst Meeting No. 3/2020 | 11 August 2020 | page 27
Slide 28: Market Outlook and Trend
*GFPT Market Outlook and Trend
Slide 29: Global Broiler Meat Market
Global Broiler Meat Market The 8th Global Chicken Producer Others 20% 2019 broiler production = 3,300,000 tons Japan 46% The 4th Global Chicken Exporter EU 2019 broiler meat export = 881,000 tons 34% Raw Cooked 37% 63% USA Brazil EU China Argentina Turkey Thailand 16% 28% 12% 3% 7% 19% 27% P
Slide 30: 40 Years of Thai Chicken Meat Export
40 Years of Thai Chicken Meat Export 1,200,000 Change Change Raw Cooked Total 2018 2019 Forecast 2020 18 / 19 19 / 20 MT Mil. Baht MT Mil. Baht (%) MT Mil. Baht (%) 2020 F: 980,000 MT 1,000,000 Product 2019: 954,010 MT - Raw 325,312 30,768 353,328 29,423 8.61 360,000 34,000 1.89 Cook 63% : Raw 37% -
Slide 31: Global Broiler Meat Market
Global Broiler Meat Market Global Production [Y2019= 99,039,000 tons] Global Import [Y2019 = 9,991,000 tons] USA 19,941 Japan 1,076 China 13,750 Mexico 880 Brazil 13,690 EU 724 EU 12,460 UAE 625 Russia 4,671 Saudi Arabia 601 India 4,350 China 580 Mexico 3,600 Iraq 501 Thailand 3,300 S.Africa 485 Arg
Slide 32: Commodity Price
Commodity Price Corn & Soy Bean Meal (THB/Kg.) Broiler at Farm Gate (THB/Kg.) 25.0 65.0 20.0 20.0 17.6 55.0 16.7 15.1 15.1 14.6 42.0 43.3 42.3 13.8 45.0 38.3 37.3 37.3 39.1 15.0 12.6 12.9 12.4 36.9 36.6 36.9 37.3 11.8 11.7 11.9 11.8 34.4 34.4 34.7 SBM 35.0 41.0 41.8 10.0 35.5 35.2 35.1 34.1 33.7 34.
Slide 33: 2020 Guidance
2020 Guidance 2020 Guidance Revenue 10%-15% down from 2019 sales Gross Profit Margin 14% - 15% SG&A 9.0% - 9.5% Financial Cost ≈ 2.5% Effective Tax Rate 15% - 20% CAPEX THB 1 - 1.2 billion Analyst Meeting No. 3/2020 | 11 August 2020 | page 33
Slide 34: Risk Factor
Risk Factor • THB Appreciation • Brexit • Competition from Potential Country • Disease Outbreak • Drought Situation • Covid-19 Analyst Meeting No. 3/2020 | 11 August 2020 | page 34
Slide 35: Key Statistics
*GFPT Key Statistics
Slide 36: Key Statistics: Chicken Processing and Feed Business
Key Statistics: Chicken Processing and Feed Business Chicken Meat Direct Export (MT) Chicken Meat Indirect Export (MT) Chicken Meat Domestic (MT) + 0% + 5% + 19% 63,100 65,400 65,200 66,300 66,500 62,700 34,400 59,600 32,700 21,600 30,600 28,300 18,100 26,200 17,400 15,900 16,500 22,500 22,100 14,90
Slide 37: Q&A
Q&A
Slide 38: Thank You
THANK YOU INVESTOR RELATIONS DEPARTMENT Dr. Jutamas Ingpochai jutamas@gfpt.co.th T +66 2 473 8022 Veera Titayangkaruvong veera-tita@gfpt.co.th T +66 2 473 8000 ext. 1802 www.gfpt.co.th