Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Q1 2023 Earnings Presentation
45 slides from Charoen Pokphand Foods Public's earnings presentation, May 12, 2023
Slide 1: Q1/2023 Results Briefing
Q1/2023 Results Briefing Investor Presentation May 12, 2023 Charoen Pokphand Foods Public Company Limited Results Briefing 1Q/2023 1
Slide 2: Table of Content
Table of Content Business Overview P 03 - 9 Q1/2023 Financial Results P 10 - 17 FY2023 Outlook P 18 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Group of Associate Companies & Joint Ventures D: Product Sample & Retail Outlet Format Charoen Pokphand Foods Public Compa
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: Sustainable Kitchen of the World
Sustainable Kitchen of the World GRC Protecting our Climate “Take action towards positive environmental impact throughout our value chain ” Food Safety & Food Security Biodiversity Improving Quality Living of P eople “Create positive social impact in the lives of employees and individuals throughout
Slide 5: Company Highlight
Company Highlight Market Cap THB 177 billion Sales in FY2022 THB 614 billion (or ~USD5.2 billion) as of May 11, 2023 (or ~USD17.8 billion) • 8,611 million shares Sales Breakdown (paid-up) with par THB 1.00 per share Livestock, 86% Feed, TH-Domestic, TH-Export, 31% 5% 24% • Book Value THB 29.47* per
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. 1
Slide 7: CPF Geographical Footprints
CPF Geographical Footprints Russia • • • Livestock feed Swine farming Chicken integrated business UK Food & Trading business Belgium Ready to eat foods Türkiye Chicken integrated business Poland • • • • Hatchery farm Food processing plants Seafood business Plant-based meat Operations and investment
Slide 8: Our Strategy for Growth
Our Strategy for Growth Globalization Digital expand market in 17 existing Transformation countries by establishing a utilize digital tools to proper business model improve operation efficiency suitable for each strategic and to better serve needs of market customer. • Smart Farm • Smart Factory • R
Slide 9: CPF Operation Structure
CPF Operation Structure as of Mar 31,2023 % % to Sales Revenue 39% 61% CPF Thailand 1 CPF International Associates & Joint Ventures (2) % holding by CPF 35% direct & indirect Domestic 26% CPP (76.24%) (1) TW:1215 CPE Taiwan (39.00%) CP Meji (59.99%) 34% Russia (100.00%) HyLife (Canada) (50.10%) 16 R
Slide 10: Performance Summary
Performance Summary Unit: THB, m Q1/2022 Q1/2023 %Change Sales Revenue 138,887 143,781 4% Gross Profit Margin 12.8% 10.8% EBITDA 13,615 12,686 -7% EBITDA Margin 9.8% 8.8% G/L on FV of Biological Assets 1,098 (41) -104% Financial Costs 4,469 6,068 36% Share in Profit of Associates (336) (1,088) -224%
Slide 11: Q1/2023: Sales & Profit Margin by Business
Q1/2023: Sales & Profit Margin by Business +4% 143,781 In THB, m 138,887 Q1/2022 Q1/2023 +3% 74,430 76,458 +11% 49,318 44,586 -13% -3% 12,837 11,214 7,034 6,791 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 15.4% 14.4 % 11.8% 10.4% 11.6% 8.5% 11.1% 11.6% 12.8% 10.8% OPM** 7.2%
Slide 12: 1Q/2023: Sales Structure by Business
1Q/2023: Sales Structure by Business Sales Breakdown Livestock Aquaculture TOTAL Q1/22 Q1/23 %Change Q1/22 Q1/23 %Change Q1/22 Q1/23 %Change Thailand 44,586 49,318 11% 7,034 6,791 -3% 51,620 56,109 9% Domestic 38,379 42,710 11% 5,941 5,774 -3% 44,320 48,484 9% Export 6,207 6,608 7% 1,093 1,017 -7% 7
Slide 13: Q1/2023: Sales Structure by Products
Q1/2023: Sales Structure by Products Feed Farm Food 52% 69% 55% Thailand 31% Vietnam China Others 52% 24% TOTAL 62% 25% 24% 24% 7% 31% 23% 21% THB 56,109 m THB 27,398 m THB 9,530 m THB 50,744 m THB 143,781 m % to sales 39% % to sales 7% % to sales 19% % to sales 35% % to sales 100% Sales Breakdown b
Slide 14: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Unit: THB, m Q1/2022 Q1/2023 %Change Sales Revenue 138,887 143,781 4% Gross Profit Margin 12.8% 10.8% Selling and administrative expenses 12,083 12,735 5% EBIT 6,134 3,644 -41% EBIT Margin 4.4% 2.5% EBITDA 13,615 12,686 -7% EBITDA Margin 9.8% 8.8% G/L on FV of
Slide 15: Financial Status (As of Mar 31, 2023)
Financial Status (As of Mar 31, 2023) Interest Bearing Debt: THB 480,320 m* Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 1.51x 1.56x 485,050 1.25x 1.36x 430,717 480,320 384,246 2020 2021 2022 Q1'23 Net D/EBITDA 7.1x 6.8x 7.0x 2020 2021 2022 Q1'23 3.6x Current Portion, 10% Cost of Debts 2
Slide 16: Y2023 Investment and Financing Activities
Y2023 Investment and Financing Activities Q1 Q1 Q2 Q2 Q3 Q4 March April Disposal of investment in CP-Uoriki Co., Ltd. CP Chozen Ltd. Import and distribute seafood products In an amount of THB 45 m and RTE from Japan THB 200 m Share Repurchase Program Announcement on IPO of CPFGS THB 5,000 m or Total
Slide 17: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies Stock Price Market Cap. CPF Holding Holding Value (Local Curr.) (THB mm) (%) (THB mm) (As of Mar 31, 2023) CPALL THB 62.00 556,952 34.07% 189,754 (SET:CPALL) Siam Makro THB 39.25 415,277 8.85% 36,752 (SET:Makro) TRUE THB 8.40 290,238 1.28% 3,715 (SET:TRUE) CPE TW
Slide 18: FY2023 Outlook
FY2023 Outlook Growth Target Continuous capacity expansion International business expansion Unlock value through spin off Key Drivers & Focus • Efficiency improvement to lower production cost • Improve consumption demand in some region • Capacity expansion in multiple countries Key Challenges • Supp
Slide 19: Appendix A
Appendix A Highlights : 3Yr Historical Results Charoen Pokphand Foods Public Company Limited Results Briefing FY2021 1Q/2023 19
Slide 20: Gross Profit Margin & Operating Profit Margin
Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM** Thai-Aqua OPM** 25.0% 21.3% 19.4% 25.0% 19.1% 20.0% 17.1% 14.7% 15.4% 14.4% 20.0% 15.9% 13.0% 15.0% 11.1% 9.9% 13.0% 15.0% 11.8% 10.0% 6.6% 7.6% 7.2% 6.6% 10.2% 9.9% 10.4% 3.4% 4.7% 10.0% 7.1% 6.8% 5.0% 5.2% 5.4% 4.0% 3.3% 4.
Slide 21: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2021 FY2022 Q1/2023 ASIA ASIA ASIA 78% 77% 82% Farm Farm Farm 6% 9% EU 3% 11% 1% 7% 10% 7% 7% EU EU OTHERS OTHERS OTHERS USA USA USA THB 6,951 million -18% THB 9,369 million +35% THB 1,509 million +8% ASIA ASIA ASIA 45% 44% EU 42% EU EU Food 47% Food 46% Fo
Slide 22: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year FY2020 FY2021 % Change FY2022 % Change Net sales 589,713 512,704 (13%) 614,197 20% Gross Profit Margin (%) 18.2% 12.9% 13.3% EBIT 53,364 19,222 (64%) 30,778 60% EBITDA 91,207 55,882 (39%) 66,043 18% Share in Profit of Associates 9,254 4,167 (55%) 3,7
Slide 23: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m EBITDA Margin% 100000 91,207 20.0% CPP CPF 90000 18.0% 15.5% 66,043 80000 16.0% 27,256 70000 26,523 14.0% 55,882 24,035 60000 10.8% 12.0% 6,091 8.8% 50000 10.9% 10.0% 13,197 7,903 40000 8.0% 30000 6.0% 21,165 16,132 4,582 20000 12,686 4.0% 13,326
Slide 24: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Unit: THB, m Gain on one time transaction Divestment and Dividend ROA Equity (Share in Profit of Associates) EBIT 6.3% 4,166 1.8% 1.6% 1,693 1.0% 9,254 2020 2021 2022 Q1'23 ROA = Net Income (include Non-Controlling Interest )/Average Total As
Slide 25: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m Q1 Q2 Q3 Q4 FY2020 FY2021 FY2022 FY2023 8,000 7,475 6,028 6,945 6,720 6,408 6,111 6,000 5,108 4,738 4,208 4,000 2,842 1,812 2,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 * Q4 Q1 Q2 Q3 Q4 -2,000 (2,725) -4,000 -6,000 (5,375) -8,000 Full Year : 26,022 13,028
Slide 26: EPS & Dividends per Share
EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Final Dividend Interim Dividend Dividend Semi-annually, not less than 30% of Policy consolidated annual net profit 3.14 1.00 1.69 0.60 0.65 0.75 1.56 0.25 0.35 (0.36) 0.40 0.40 0.40 2020 2021 2022 Q1'23
Slide 27: Appendix B
Appendix B Products & Raw Materials Price Trend Charoen Pokphand Foods Public Company Limited Results Briefing FY2022 1Q/2023 27
Slide 28: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 43.6 47.4 Y21 Y22 Y23 50.0 39.0 42.6 39.2 40.0 46.0 42.0 34.2 29.7 43.4 39.2 38.0 30.2 29.3 34.0 24.9 % Chg +46% -10% 30.0 26.0 22.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Current Price Thailand’s Pork price (THB/kg
Slide 29: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 20.0 Y21 Y22 Y23 11.4 13.1 12.1 12.6 13.3 12.6 15.0 9.4 9.5 10.5 10.8 10.0 12.3 13.3 10.0 % Chg +23% +8% 5.0 0.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Current Price Thailand’s Soybean Meal price (THB/
Slide 30: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 100,000 77,231 80,000 68,813 62,760 51,517 52,809 55,387 52,819 50,045 60,000 41,602 Swine 40,000 (VND/kg) 20,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 40,000 33,294 35,656 33,676 27,083 28,514 27,285 26,179 30,000 25,352 17,
Slide 31: Türkiye: Average Market Price and Major Feed Raw Materials
Türkiye: Average Market Price and Major Feed Raw Materials 23.4 23.5 21.3 24.00 17.9 20.00 14.6 16.00 10.3 8.0 9.2 12.00 7.3 Broiler 8.00 (TRY/kg) 4.00 0.00 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 7.00 6.2 5.9 5.6 5.7 6.00 5.00 4.3 4.00 3.2 2.2 2.5 Corn 3.00 1.9 2.00 (TRY/kg) 1.00 0.00
Slide 32: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 113.8 106.1 100.0 95.7 74.5 77.0 85.9 82.9 77.5 100.0 50.0 Broiler (INR/kg) 0.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 500.0 352 367 400.0 312 303 303 327 313 277 275 300.0 Shrimp 200.0 (60 pieces) (INR/kg) 100.0 Q1'21 Q2'
Slide 33: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 140.0 123.1 115.5 110.4 108.6 120.0 102.4 105.8 104.0 100.9 96.6 100.0 Swine 80.0 (RUB/kg) 60.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 160.0 140.0 118.4 127.0 120.4 126.8 124.2 123.3 115.5 120.0 111.5 115.9 100.0 Broiler 80.0 (
Slide 34: Cambodia: Average Market Price and Major Feed Raw Materials
Cambodia: Average Market Price and Major Feed Raw Materials 20,000 16,000 14,032 13,901 12,541 12,732 11,514 11,093 12,000 9,643 8,117 8,068 Swine 8,000 (KHR/kg) 4,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 1,700 1,578 1,550 1,600 1,468 1,500 1,345 1,347 1,389 1,400 1,261 1,305 1,218
Slide 35: Philippines: Average Market Price and Major Feed Raw Materials
Philippines: Average Market Price and Major Feed Raw 240.0 Materials 220.0 200.3 190.3 200.0 161.7 170.0 175.0 166.8 163.5 180.0 144.7 156.0 160.0 140.0 Swine 120.0 (RUB/kg) 100.0 80.0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 140.0 117.7 113.4 114.7 110.3 120.0 114.5 95.2 95.0 100.0 82.
Slide 36: China: Average Market Price and Major Feed Raw Materials
China: Average Market Price and Major Feed Raw Materials 40 32.1 22.4 24.6 19.9 20 14.9 15.8 14.6 15.1 15.2 Swine (RMB/kg) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 4 2.9 3.0 3.0 2.9 2.9 3.0 3.0 3.0 3.0 2 Corn (RMB/kg) 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 6 5.3 4.6 4
Slide 37: Appendix C
Appendix C Group of Associate Companies & Joint Ventures
Slide 38: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures As of Mar 31, 2023 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 Convenience stor
Slide 39: Appendix D
Appendix D Product Samples & Retail Outlet Formats
Slide 40: Food Retail Products
Food Retail Products P.40
Slide 41: Food Retail Products
Food Retail Products RAM /— REBEL e10 ©1810 210g | nae « ches hi oe CRISPY. SINT pe se | tT ele 2 1 Se “ak ae is ~ -_ ve Thai Massaman SS Curry Chicken > Poe
Slide 42: Food Service: Five Stars Chain
Food Service : Five Stars Chain More Than 7,000 Outlets Vietnam India Cambodia Laos Philippines P.42
Slide 43: Food Service: Chester's
Food Service : Chester’s Charoen Pokphand Foods Public Company Limited Results Briefing Q1/2023 43
Slide 44: 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 45: Slide 45
Charoen Pokphand Foods Public Company — Q1 2023 Earnings Presentation on 6ix