Jb Foods Ltd. · SGX:BEW
Jb Foods — Shareholder Meeting (April 2016)
15 slides from Jb Foods's shareholder meeting presentation, Apr 26, 2016
Slide 1: AGM Shareholders' Presentation
AGM 26 April 2016 Shareholders’ Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Industry Overview
Industry Overview Gradual improvement in • Margin improvement and higher sale volume , especially in 2H 2015 industry processing margin drove processing profitability Less intense price • Consolidation and rationalization created a more benign market for competition cocoa products Overall business c
Slide 4: Cocoa Processing Industry Cycle
Cocoa Processing Industry Cycle Consolidation and rationalization Powder price recovery to US$2000+ Gradual recovery in processing margin More rational competitive pricing behavior High industry profitability Historically high powder Early stage of an price (US$5000+) up-cycle trend Hi
Slide 5: Industry Outlook
Industry Outlook • Negative • Uncertainties in global economies Potential demand risk, mitigated by resilience Factors • High bean cost in cocoa consumption • Good consumption growth Positive prospects in Asia, driven by rising Industry recovery and Factors income • New factories in Asia by margin i
Slide 6: Profitable Business Turnaround in FY2015
Profitable Business Turnaround in FY2015 Revenue grew 3.6% year-on- year 250 25.0 20.0 200 15.0 Healthy operating cashflow 10.0 150 5.0 at USD9.4 million in FY2015 NET PROFIT 0.0 REVENUE 100 -5.0 -10.0 50 -15.0 -20.0 0 -25.0 2011 2012 2013 2014 2015 Revenue (USD'M) 226.2 189.5 194.8 218.7 226.5
Slide 7: Improving FY15 Quarterly Profit Trend
Improving FY15 Quarterly Profit Trend 7
Slide 8: Robust Balance Sheet
Robust Balance Sheet • Well-capitalised with shareholders’ equity at 80 45.0 USD70m (end 2015) 70 40.0 SHAREHOLDERS' EQUITY (USD'M) 35.0 60 NAV PER SHARE (SGD CENTS) 30.0 50 25.0 • Share price of SGD0.25 40 20.0 (as at 18 Apr 2016) was 30 15.0 40% discount to 20 10.0 FY2015’s NAV at 10 5.0 SGD0.42 0
Slide 9: Build Market Position for Sustainable Growth
Build Market Position for Sustainable Growth Sustainable Growth Financial • Robust balance sheet with low net gearing • Available debt capacity for business growth Market Position • Expand sales to existing customer base • Acquire new customers in North America and Indonesia markets Operations • Foc
Slide 10: JB Foods' Competitive Strengths
JB Foods’ Competitive Strengths Competitive cost structure • Management focus on lean management and low overhead structure Management focus • Efficient and nimble decision making • Relentless focus on product and customer service quality Loyal and supportive customer base • Mars, Nestle, Mondelez a
Slide 11: Our Cocoa Processing Factories
Our Cocoa Processing Factories Indonesia Factory Malaysia Factory State-of-the-art 60,000mt bean equivalent State-of-the-art 85,000mt bean equivalent processing facility processing facility Commenced operations in 2013 Commenced operations in 2003 11
Slide 12: Our Products
Our Products Cocoa Beans Cocoa Liquor/Mass Cocoa Cake Cocoa Butter Cocoa Powder 12
Slide 13: Our Customers
= Our Customers MARS Mondeléz, meiji HERSHEY'S S&S ~~
Slide 14: Key Takeaways
Key Takeaways • Early stage industry recovery • Balanced business growth strategy • Build and expand sustainable customer base • Optimise factory utilisation • Build customer value proposition through world-class product quality and service • Focus on long term sustainable shareholders’ value 14
Slide 15: Thank You
Thank You RIGHT ON TRACK