Dachan Food (asia) Limited · HKEX:3999

Dachan Food (asia) — FY2008 Earnings Presentation

31 slides from Dachan Food (asia)'s earnings presentation, 2009

Slide 1: 2008 Annual Results
HKSE: 3999.hk 2008 Annual Results 100%知道来源，吃到安心 0
Slide 2: Disclaimer
Disclaimer This document does not constitute, or form part of any offer for subscription or sale of, or solicitation of any offer to subscribe for or sale of any securities of DaChan Food (Asia) Limited (the "Company"), nor shall it be construed as calculated to invite any such offer, nor shall it f
Slide 3: Agenda
Agenda Page 11 Results Highlights 2 22 Financial Summary 3 33 Business & Operational Reviews 9 44 Outlook & Future Plans 14 55 Integrated Traceability System 18 100%知道来源，吃到安心 2
Slide 4: Results Highlights
Results Highlights Successfully grew business and market share in 2008, despite the deteriorating operating environment in the latter half of the year • Turnover surged 44.7% to USD1,294 million • Operating profit increased 4.4% to USD39.6 million (excluding the USD5.8 million exchange loss recogniz
Slide 5: Financial Summary
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Slide 6: Financial Highlights
Financial Highlights For the year ended 31 Dec 2008 (USD '000) 2007 2008 Change (%) Turnover 894,491 1,293,995 +44.7 Gross profit 75,749 95,291 +25.8 Profit from operations 37,959 33,803 (10.9%) Profit attributable to shareholders after 20,874 18,176 (12.9%) excluding the non-recurring income* Profi
Slide 7: Strong Revenue Growth
Strong Revenue Growth Turnover Processed foods Livestock feeds USD Mln Chicken meats 1,400 1,294.0 % 1,200 4.5% 44.7 3.7% : 3 C AGR 1,000 894.5 45.1% 6.4% 800 637.4 532.1 5.9% 38.8% 600 5.9% 35.0% 400 51.2% 37.0% 54.8% 57.1% 59.1% 200 0 2005 2006 2007 2008 100%知道来源，吃到安心 6
Slide 8: Gross Profit & Margins
Gross Profit & Margins Gross profit Gross profit margin Processed foods Livestock feeds USD Mln Chicken meats (%) % 5. 8 +2 2007 2008 Change 110 95.3 Chicken 8.1 5.4 (2.7 ppt) 100 0.9 meats 90 35.3 80 Livestock 8.8 10.0 (1.2 ppt) 70 5.6 feeds 58.4 60 50 30.4 Processed 9.7 1.8 (7.9 ppts) 40 foods 30
Slide 9: Expenses Analysis
Expenses Analysis Distribution Costs and Admin Expenses USD Mln % of turnover 70 15% 63.3 60 50 47.2 10% 40 37.1 30.9 30 5.8% 5.8% 5% 20 5.3% 4.8% 10 0 0% 2005 2006 2007 2008 Administrative expenses Distribution costs 100%知道来源，吃到安心 8
Slide 10: Key Financial Ratios
Key Financial Ratios FY 2007 FY2008 Total assets (USD’000) 378,272 361,131 Net assets (USD’000) 212,698 244,256 Inventory turnover (Days) 33 26 Trade receivables turnover (Days) 10 8 Trade payables turnover (Days) 22 17 Current ratio 1.7 1.7 ROE 20.7 9.6 ROA 10.7 5.8 Gearing Ratio* 39.1 12.8 Cash po
Slide 11: Use of Proceeds
Use of Proceeds Oct 07– Dec 08 Planned (HK$) Million Actual (HK$) Expansion of production capacity 365 273 Chicken meats: 64% Livestock feeds: 30% Processed foods: 5% Potential acquisitions and leases of similar 207 105 business and facilities Expansion of the sales and marketing function of the gro
Slide 12: Business & Operational Reviews
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Slide 13: Balanced Business Portfolio
Balanced Business Portfolio 38.8% 54.8% 45.1% 2008 2007 Total Revenue: 51.2% Total Revenue: USD1294 million USD894 million 6.4% 3.7% Processed foods Livestock feeds Chicken meats Revenues from Revenues from chicken chicken meats meats andand livestock livestock feeds feeds are are our major our majo
Slide 14: Chicken Meats Segment
Chicken Meats Segment Chicken meats ASP per ton Major customers Sales (USD Mln) % (USD) 700 : +35.2 661.9 2,000 s 600 Sale 1,800 500 489.7 400 1,600 300 1,517 1,400 200 1,295 1,200 100 0 1,000 2007 2008 No. of chicken slaughtered (million (million chicken) 2007 2008 Change 115.0 133.7 +16.3% Sales r
Slide 15: Feeds to External Customers Segment
Feeds to External Customers Segment Feeds to external customers ASP per ton Sales (USD per tonne) (USD) Rising raw material costs continued to be the 600 . 4% 700 s: +68 525.6 600 major challenge for our feeds products. Sale 500 500 400 316.3 Impressive growth of sales by 68.4% 464 400 300 328 300 S
Slide 16: Processed Foods Segment
Processed Foods Segment Sales mix Sales mix Processed foods 2007 2008 Sales (USD Mln) -17.3% 70 58.0 60 48.0 Mainland Export Mainland 50 Export China 32.9% China 56.6% 40 43.4% 67.1% 30 20 10 0 2007 2008 Expand PRC market at a faster rate due the export restriction happened during the year. Revenue
Slide 17: Outlook & Future Plans
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Slide 18: Outlook
Outlook While world economy is set to slow further in 2009, the PRC is expected to grow its economy by about 8%, or at minimum of 6.5% Living standards in PRC are expected to rise, albeit at a lower rate in 2009. Rising living standards have led to a growing awareness about food safety, fuelling fur
Slide 19: Future Plans
Future Plans Chicken meats Chicken meats Processed foods Processed foods Plant in Cangzhou, Hebei will commence operation in mid New production plant scheduled for construction in 2009; Total annual production of chicken meat will Tianjin and is expected to commence operation in 2H increase by 40 mi
Slide 20: Sustain a Brand Through Traceable Safety
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Slide 21: 100% Known Source, Secured Eating Comfort
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Slide 22: Innovating to sustain the business growth
Innovating to sustain the business growth 改變工程:為企業找尋一條永續經營的活水活路生命永續食品安全 Life Sustainability Food Safety 安心可溯工程企業永續品牌利潤 Traceability System Corporate Sustainability Brand Value 環境永續節能減碳 World Sustainability Carbon Reduction 100%知道来源，吃到安心 21
Slide 23: Capability of Traceability System
Capability of Traceability System 飼料來源 feed source 飼料安全 Feed Safety 品質管控 Quality Assure 農場安全牧場衛生 hygiene std Farm Safety 健康管理 active health 可溯系統 Traceability 葯檢把關 residual check 鮮肉安全 Meat Safety 積極品管 proactive QA 加工安全製程衛生 process std Food Safety 調味管控 additive control 100%知道来源，吃到安心 22
Slide 24: Packages
Pack AR ackages ®2 Akt (AR Sisters’®*Kitchen ti HR SR RK
Slide 25: Channel Communication- Wet Market
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Slide 26: Channel Communication- Direct Retail Store
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Slide 27: Live Case Video
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Slide 28: Channel Communication- Hyper/Super Market
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Slide 29: Channel Communication- Key Accounts/Professionals
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Slide 30: Advertising
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Slide 31: DaChan Food (Asia) Limited
DaChan Food (Asia) Limited AKB an (2H) AAA 100% MER, IF

DaChan Food (Asia) — FY2008 Earnings Presentation on 6ix

Dachan Food (asia) — FY2008 Earnings Presentation

Slide 1: 2008 Annual Results

Slide 2: Disclaimer

Slide 3: Agenda

Slide 4: Results Highlights

Slide 5: Financial Summary

Slide 6: Financial Highlights

Slide 7: Strong Revenue Growth

Slide 8: Gross Profit & Margins

Slide 9: Expenses Analysis

Slide 10: Key Financial Ratios

Slide 11: Use of Proceeds

Slide 12: Business & Operational Reviews

Slide 13: Balanced Business Portfolio

Slide 14: Chicken Meats Segment

Slide 15: Feeds to External Customers Segment

Slide 16: Processed Foods Segment

Slide 17: Outlook & Future Plans

Slide 18: Outlook

Slide 19: Future Plans

Slide 20: Sustain a Brand Through Traceable Safety

Slide 21: 100% Known Source, Secured Eating Comfort

Slide 22: Innovating to sustain the business growth

Slide 23: Capability of Traceability System

Slide 24: Packages

Slide 25: Channel Communication- Wet Market

Slide 26: Channel Communication- Direct Retail Store

Slide 27: Live Case Video

Slide 28: Channel Communication- Hyper/Super Market

Slide 29: Channel Communication- Key Accounts/Professionals

Slide 30: Advertising

Slide 31: DaChan Food (Asia) Limited