Slide 1: Japfa Ltd Investor Presentation 1Q2024
Japfa Ltd Investor Presentation 1Q2024
Slide 2: Index
Index 1 Key Highlights 2 Core PATMI w/o Forex Rolling Basis 3 1Q2024 Financial & Operational Analysis 4 Other Financial Highlights 5 Platform for Growth 6 Group Overview 7 Appendix: Segment Information 1
Slide 3: Key Highlights
KEY HIGHLIGHTS
Slide 4: Key Highlights for 1Q2024
Key Highlights for 1Q2024 Group performance improved, driven by both PT Japfa Tbk and APO-Vietnam. Main drivers: • Feed consistently delivered profits, with stable margins across our major markets. • Higher poultry and swine prices during Ramadhan in Indonesia and Tết in Vietnam, which revitalized d
Slide 5: 1Q2024 Group Financials
1Q2024 Group Financials Revenue Operating Profit EBITDA PATMI Core PATMI w/o Forex US$m US$m US$m US$m US$m 11.6% y-o-y n/m 4276.6% y-o-y n/m n/m 1,134.4 1,016.5 99.2 76.6 12.4 13.4 2.3 (43.0) (37.9) (28.6) 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 Substantial y-o-y impro
Slide 6: Core PATMI w/o Forex Rolling Basis
CORE PATMI w/o FOREX ROLLING BASIS
Slide 7: Rolling Core PATMI w/o Forex For The Group
Rolling Core PATMI w/o Forex For The Group 126.0 117.1 114.0 96.7 80.6 79.1 65.3 49.4 23.1 33.4 17.3 1Q2024 46.4 15.5 27.5 27.3 6.9 32.4 3Q2023 26.0 24.7 18.5 18.8 (1.0) 12.5 32.5 4.3 (2.2) 4Q2023 (22.1) (36.6) (28.2) 2Q2023 (51.4) (53.6) (11.2) (37.9) (81.6) (11.4) Mar'20 Jun'20 Sep'20 Dec'20 Mar'2
Slide 8: Rolling Core PATMI w/o Forex by Business Segments
Rolling Core PATMI w/o Forex by Business Segments Rolling Core PATMI w/o Forex attributable to Japfa Ltd (US$m) 59.5 71.9 90.3 17.7 75.3 23.1 33.0 56.7 88.8 62.1 77.8 69.7 68.2 66.9 60.3 56.7 54.3 48.1 43.4 44.1 46.1 30.4 30.4 15.8 9.3 (14.3) (37.7) (28.0) (39.1) (47.3) (49.7) (65.4) (84.4) (78.5) (
Slide 9: 1Q2024 Financial & Operational Analysis
1Q2024 FINANCIAL & OPERATIONAL ANALYSIS
Slide 10: 1Q2024 Segmental Overview
1Q2024 Segmental Overview 1Q2023 1Q2024 %change GROUP (US$m) Revenue 1,016.5 1,134.4 11.6% Operating Profit (28.6) 76.6 n/m Operating Profit Margin -2.8% 6.8% 9.6 pts Japfa Ltd EBITDA 2.3 99.2 4276.6% PAT (50.6) 33.7 n/m PATMI (43.0) 12.4 n/m Core PATMI w/o Forex (37.9) 13.4 n/m BUSINESS SEGMENTS (U
Slide 11: PT Japfa Tbk – Financial Performance
PT Japfa Tbk – Financial Performance Revenue Operating Profit EBITDA PAT US$m US$m US$m US$m 13.4% y-o-y n/m 538.0% y-o-y n/m 882.8 778.7 84.7 68.9 43.6 13.3 (6.1) (17.8) 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 Substantial improvement in 1Q2024 due to higher prices and sales volumes
Slide 12: PT Japfa Tbk: Managing Cyclicality
PT Japfa Tbk: Managing Cyclicality US$m Revenue US$m Operating Profit 240 4,000 217.9 3,283.0 3,362.7 200 180.8 3,500 173.9 3,128.5 3,000 160 146.9 2,527.5 2,500 120 2,000 80 95.3 101.4 82.4 87.9 1,500 68.9 59.4 66.4 62.7 882.8 40 1,000 41.0 11.6 26.1 47.9 33.4 18.3 11.5 0 500 (25.3) (6.1) 0 (40) FY
Slide 13: APO – Financial Performance
APO – Financial Performance Revenue Operating Profit EBITDA PAT US$m US$m US$m US$m 4.7% y-o-y n/m n/m n/m 234.9 245.9 (26.5) 6.1 (15.7) 16.8 (34.1) (3.8) 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 1Q2023 1Q2024 Improvements in 1Q2024 on the back of higher selling prices and lower costs APO-Vietnam •
Slide 14: APO-Vietnam
APO-Vietnam US$m US$m Revenue Operating Profit 900 150.0 814.8 789.7 800 102.1 697.8 100.0 700 592.5 600 50.0 500 8.1 6.1 (34.4) (26.5) 0.0 400 300 192.6 (50.0) FY2020 FY2021 FY2022 FY2023 1Q2024 200 Cost-of-living pressures 100 (100.0) Covid-19 0 FY2020 FY2021 FY2022 FY2023 1Q2024 ASF Operating pro
Slide 15: Animal Protein – Operational Performance
Animal Protein – Operational Performance ('000 tons) Animal Feed - Poultry Sales Volume 2,000 1,500 1,356 1,310 1,262 1,266 1,124 1,000 500 0 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 PT Japfa Tbk Japfa India Japfa Vietnam Japfa Myanmar (mil birds) DOC - Broiler: Sales Volume ('000 tons) Commercial Farm- L
Slide 16: Animal Protein – Operational Performance
Animal Protein – Operational Performance ('000 tons) Aquaculture - Aqua-feed: Sales Volume 100 80 60 40 82.5 81.5 79.5 74.7 75.0 20 0 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 PT Japfa Tbk ('000 tons) ('000 tons) Swine Fattening: Sales Volume Animal Feed - Swine: Sales Volume 50 200 45 180 40 160 35 140 30
Slide 17: Other Financial Highlights
. OTHER FINANCIAL HIGHLIGHTS
Slide 18: Other Financial Highlights
Other Financial Highlights Balance Sheet Highlights (US$m) As at As at 31-Dec-2023 31-Mar-2024 % change Total Assets 3,083.8 3,102.2 1% Cash and cash equivalent 211.9 189.9 -10% Total Inventory 952.0 944.3 -1% - Inventory (excluding fattening livestock) 754.2 749.2 -1% - Inventory - Fattening Livest
Slide 19: Net Debt Profile as at 31 March 2024
Net Debt Profile as at 31 March 2024 Animal Protein - PT Japfa Tbk Others Total Other Bonds & other term loans 549 89 638 Working capital loans 289 164 195 648 Total Debt 838 253 195 1,286 Cash 102 50 39 190 Net Debt 736 203 157 1,096 ▪ PT Japfa Tbk debt includes US$350m 5.375% Sustainability-Linked
Slide 20: Capex FY2022 – 1Q2024
Outstanding Tbk Capex FY2022 – 1Q2024 FY2022 FY2023 1Q2024 Total: Total: Total: US$206m US$156m US$28m 83 29 123 127 7 22 2022 2023 1Q2024 PT Japfa Tbk APO The chart above refers to capital expenditure for new property, plant and equipment as well as maintenance capex 19
Slide 21: Platform for Growth
, PLATFORM FOR GROWTH
Slide 22: PT Japfa Tbk: Platform for Growth
PT Japfa Tbk: Platform for Growth An established platform with more than 50 years experience ▪ Leading market position: second largest poultry company ▪ Economies of scale: cost advantage ▪ Feed: a pillar of profitability Proven ability to navigate agri-business cyclicality Future growth drivers: ▪
Slide 23: Poultry Feed: Stable Base Margin
PT Japfa Tbk Poultry Feed: Stable Base Margin Cost-of-living 400 pressures 16% Covid Impact 350 14% LTM OPM Poultry Feed 12% 300 Price Change3 10% 250 8% 200 6% 150 4% 100 2% 50 0% Sep-14 Dec-14 Sep-15 Dec-15 Sep-16 Dec-16 Sep-17 Dec-17 Sep-18 Dec-18 Sep-19 Dec-19 Sep-20 Dec-20 Sep-21 Dec-21 Sep-22
Slide 24: PT Japfa Tbk: Aquaculture 4-year trend
PT Japfa Tbk: Aquaculture 4-year trend Revenue Operating Profit US$m US$m 350 318.7 25.0 301.3 22.3 300 275.7 20.0 20.0 237.3 250 14.1 14.4 200 15.0 150 10.0 100 70.3 4.1 5.0 50 0 0.0 FY2020 FY2021 FY2022 FY2023 1Q2024 FY2020 FY2021 FY2022 FY2023 1Q2024 The next platform of growth • Established in 1
Slide 25: PT Japfa Tbk: Vaksindo 4-year trend
PT Japfa Tbk: Vaksindo 4-year trend Revenue Operating Profit US$m US$m 16 40 37.3 13.6 14.1 34.8 14 12.6 35 32.8 12 30 27.9 9.9 10 25 8 20 6 15 9.2 4 3.1 10 2 5 0 0 FY2020 FY2021 FY2022 FY2023 1Q2024 FY2020 FY2021 FY2022 FY2023 1Q2024 Vaksindo continues to deliver steady growth and profitability • E
Slide 26: APO–Vietnam: Platform for growth
APO–Vietnam : Platform for growth We believe the current issues of margin shrinkage and ASF are temporary setbacks and the longer term prospects of economic growth in Vietnam to be sound. This should lead to higher demand for staple proteins in future. Japfa has made strategic investments to set a s
Slide 27: Major Global External Factors
Major Global External Factors ▪ Geopolitical tensions, especially the situation in Europe and, more recently, in the Middle East, may cause disruptions to global economies, supply chains and commodities prices. These may impact the cost of raw materials and consumer purchasing power. We continue to
Slide 28: Group Overview
GROUP OVERVIEW
Slide 29: Group Overview: Feeding Emerging Asia
Group Overview ▪ Established since 1971 ▪ Pure-play animal protein producer Feeding Emerging Asia in growing emerging markets ▪ Japfa Ltd’s market capitalisation: approx. US$ 408.1million1 ▪ FY2023 revenue: US$4.4 billion 1 As at 31 March 2024 28
Slide 30: 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 more than 1.7 billion people living protein staples and 37,000 people across in our target markets packaged food that Singapore, Indonesia, More than 20% of the nourish millions of Vi
Slide 31: Vertically Integrated Business Across Entire Value Chain
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 32: 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 33: Growth Prospects – Animal Protein
Growth Prospects – Animal Protein Poultry consumption per capita1 Strong market positions ▪ As GDP per capita increases, there is more upside potential as diets Malaysia 50.1 Poultry Feed Day Old Chicks (DOC) evolve to include Vietnam 17.2 more meat-based protein Ranking3: #2 Ranking3: #2 from exist
Slide 34: Appendix
_ APPENDIX
Slide 35: Segment Information – 1Q2024
Segment Information – 1Q2024 1Q 2024 (Jan-Mar 2024) Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE
Slide 36: Segment Information – 4Q2023
Segment Information – 4Q2023 4Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE 861.7 270.1 1,
Slide 37: Segment Information – 3Q2023
Segment Information – 3Q2023 3Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE 891.7 271.9 1,
Slide 38: Segment Information – 2Q2023
Segment Information – 2Q2023 2Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE 830.6 265.7 1,
Slide 39: Segment Information – 1Q2023
Segment Information – 1Q2023 1Q 2023 Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE 778.7 234.9 1,
Slide 40: Segment Information – FY2023
Segment Information – FY2023 FY 2023 (Jan-Dec 2023) Notes: • Animal Protein – PT Japfa Tbk refers to animal ANIMAL PROTEIN OTHERS GROUP protein operations through IDX-listed PT Japfa Comfeed Indonesia Tbk (“PT Japfa Tbk”). TBK AP Other Total • Animal Protein – Other (APO) refers to the TOTAL REVENUE
Slide 41: 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