Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Charoen Pokphand Foods — H1 2016 Earnings Presentation
48 slides from Charoen Pokphand Foods Public's earnings presentation, Aug 16, 2016
Slide 1: Charoen Pokphand Foods Plc. 1H16 Results Briefing
Charoen Pokphand Foods Plc. “Creating quality and delightful dishes for every customer” August 16, 2016 1H16 RESULTS BRIEFING
Slide 2: Contents
1H16 : Results Briefing Contents 1 Business Overview 02 1H16 Results Briefing 08 Kitchen of The World Financial Highlights 13 Future Plan 15 Appendix A: 3Yr Historical Results B: Product & Raw Materials Price Trend C: Product Sample & Retail Outlet Format D: Highlights - 2Q16 Results E: Export Desti
Slide 3: CPF Investment Highlights
1H16 : Results Briefing CPF Investment Highlights 2 One of the World’s leading listed animal feed manufacturers, swine producers, and shrimp integrated business Diversified portfolio with operations in 14 countries catered to over 3 billion population, and exports to more than 30 countries Multi-spe
Slide 4: Company Facts (as of June 30, 2016)
1H16 : Results Briefing Company Facts (as of June 30, 2016) 3 Vision :“Kitchen of the World” Portfolio • 4 Listed Investments onboard (HKSE:00043, HKSE:3839, TWSE: 1215, SET:CPALL) • 24 Series of Debentures listed on Thai Bond Market Association “TBMA” Highlights Market Cap : THB 208,711 million or
Slide 5: CPF Operational Structure
1H16 : Results Briefing CPF Operational Structure 4 1H16 : Sales: THB 222,289 m Net Profit: THB 7,780 m 39% of Sales 61% of Sales CPF Thailand CPF International Associates & Joint Ventures 33% of Sales 38% of sales 23% of sales CPP- HKSE:43 India (99.99%) SET: CP ALL (34.78%) Domestic (50.43%)* TW:1
Slide 6: Vertically Integrated Business Model
1H16 : Results Briefing Vertically Integrated Business Model 5 Integrated operating platform for safety & quality control Livestock (Broiler, Layer, Swine, Duck) and aquaculture (Shrimp & Fish) Adding Feedmilling Breeding Farming Processing Value Live Fresh Food & Feed Breeder Animal Meat Ready Meal
Slide 7: CPF Leading Footprints
1H16 : Results Briefing CPF Leading Footprints 6 UK • Food processing plant Russia • Food Kiosks • Livestock feed Belgium • Swine farming • Chicken integrated Food processing plant business Taiwan China - CPP Livestock integrated Turkey business • Livestock and aquaculture feed Chicken integrated •
Slide 8: 1H16 Summary
1H16 : Results Briefing 1H16 Summary 7 Challenges Turnaround in shrimp business Global and Thailand economic uncertainties The impact of natural disasters in 1H16 (i.e. drought, climate changes, floods) Latest Activities Finance Issuance of THB 16,000 m debenture by CPF Thailand on Jan, 2016 (@ Avg.
Slide 9: 1H16 Results Highlights
1H16 : Results Briefing 1H16 Results Highlights 8 Revenue increased 11% y-o-y to THB 222,289m in 1H16 Gross Profit increased 41% y-o-y to THB 36,803m in 1H16, Gross profit margin increased from 13.1% in 1H15 to 16.6% in 1H16. EBITDA increased 119% y-o-y from THB 10,571m in 1H15 to THB 23,181m in 1H1
Slide 10: 1H16: Sales & Gross Profit Margin by Business
1H16 : Results Briefing 1H16: Sales & Gross Profit Margin by Business 9 +11% 222,289 In THB, m 1H15 199,902 1H16 +14% 117,593 +5% 102,775 71,711 68,266 +34% +1% 11,450 15,363 17,411 17,622 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 11.3% 16.2% -0.1% 12.3% 15.8% 18.3% 12.7% 1
Slide 11: 1H16: Consolidated Sales Structure
1H16 : Results Briefing 1H16: Consolidated Sales Structure 10 Sales Breakdown 1H15 % to Sales 1H16 % to Sales % Change Thailand 79,716 40% 87,074 39% 9% Domestic 68,014 34% 73,605 33% 8% Export 11,702 6% 13,469 6% 15% China 50,605 25% 47,242 21% -7% Vietnam 33,292 17% 37,297 17% 12% Others 36,289 18
Slide 12: 1H16: Consolidated Sales Structure by Business
1H16 : Results Briefing 1H16: Consolidated Sales Structure by Business 11 Sales Breakdown Livestock Aqualculture Total 1H15 1H16 %Change 1H15 1H16 %Change 1H15 1H16 %Change Thailand 68,266 71,711 5% 11,450 15,363 34% 79,716 87,074 9% Domestic 58,905 60,447 3% 9,109 13,158 44% 68,014 73,605 8% Export
Slide 13: 1H16: Consolidated Sales by Products
1H16 : Results Briefing 1H16: Consolidated Sales by Products 12 Sales Breakdown by Products Feed Farm Food Total 1H15 1H16 %Change 1H15 1H16 %Change 1H15 1H16 %Change 1H15 1H16 %Change Thailand 25,234 23,663 -6% 34,661 42,624 23% 19,821 20,787 5% 79,716 87,073 9% Domestic 25,129 23,590 -6% 31,947 39
Slide 14: 1H16: Consolidated Income Statement Highlight
1H16 : Results Briefing 1H16: Consolidated Income Statement Highlight 13 Quarter 1 Quarter 2 6 Months 2015 2016 %Chg. 2015 2016 %Chg. 2015 2016 %Chg. Net sales 96,224 105,513 10% 103,678 116,776 13% 199,902 222,289 11% Gross Profit Margin (%) 12.6% 15.6% 13.5% 17.4% 13.1% 16.6% EBITDA 5,029 10,075 1
Slide 15: Financial Status
1H16 : Results Briefing Financial Status 14 Interest Bearing Debt : THB 249,881 m Net Debt to Equity Total Equity Unit : THB, M Net Debt Net Debt to Equity Current Portion, 1.28 8% 1.21 Bond, 0.99 S/T Loan, 38% 35% 218,688 162,377 221,690 L/T Loan, 19% 163,966 173,725 180,345 2014 2015 1H16 Cost of
Slide 16: Y2016 Key Highlights
1H16 : Results Briefing Y2016 Key Highlights 15 Target Growth Sales Key Drivers Improvement of shrimp business Improvement of meat price Slightly lower raw material costs Expansion of existing international operations Mergers and Acquisitions (M&A) Investment 5Yr Capex of THB 50,000 million (excludi
Slide 17: Appendix A: Highlights: 3Yr Historical Results
Appendix A: Highlights : 3Yr Historical Results 2008 : Results
Slide 18: Consolidated Income Statement Highlight
1H16 : Results Briefing Consolidated Income Statement Highlight 17 Full Year 2013 2014 % Change 2015 % Change Net sales 389,251 426,039 9% 421,355 -1% Gross Profit Margin (%) 10.0% 13.4% 13.8% Gain on fair value adjustment - - - - - EBITDA 13,039 27,513 111% 26,433 -4% EBIT 4,495 17,548 290% 14,926
Slide 19: Gross Profit Margin & Operating Profit Margin
1H16 : Results Briefing Gross Profit Margin & Operating Profit Margin 18 GPM GPM Thai-Livestock OPM Thai-Aqua OPM 20.0% 30.0% 17.3% 18.0% 16.4% 16.5% 16.8% 25.0% 15.6% 16.0% 20.0% 14.3% 13.5% 14.0% 13.4% 15.0% 12.6% 11.9% 12.6% 8.5% 12.0% 10.8% 11.9% 10.0% 9.4% 2.4% 3.0% 10.0% 8.8% 5.0% 8.0% 7.7% 3.
Slide 20: CAPEX & EBITDA
1H16 : Results Briefing CAPEX & EBITDA 19 CAPEX EBITDA Unit: THB, M Unit: THB, M EBITDA Margin% CPP CPF 30,000 20.0% 25,550 25,398 18.0% 27,513 25,000 26,433 22,513 16.0% 23,181 14.0% 10,561 9,446 20,000 8,215 12.0% 10.4% 15,000 10.0% 8,823 13,039 6.5% 6.3% 8.0% 10,000 6.0% 14,989 15,952 14,298 3,30
Slide 21: Consolidated Net Profit & ROE & D/EBITDA
1H16 : Results Briefing Consolidated Net Profit & ROE & D/EBITDA 20 Net Profit D/EBITDA & ROE Unit: THB, M D/EBITDA Ratio (interest Bearing Debt) Gain on fair value adjustment on investment in associates Divestment and Dividend 14.3 Equity (Share in Profit of Associates) EBIT 9.8 7.1 CAGR +25% 5.4 2
Slide 22: Consolidated Net Profit - Quarterly
1H16 : Results Briefing Consolidated Net Profit - Quarterly 21 Unit : THB, M 1Q 2Q 3Q 4Q 4,158 4,016 3,546 3,571 3,764 2,9562,983 2,649 2,050 1,636 1,754 1,549 1,026 808 2013 * 2014 2015 2016 2Q15 Gain on fair value adjustment of investments in associates = 236 MB : * Including restate of IFRS basis
Slide 23: EPS & Dividends per Share
1H16 : Results Briefing EPS & Dividends per Share 22 Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Semi – Annually, minimum of Dividend 50% of annual net profit Policy CAGR +25% (The Company Statement Only) 1.50 1.43 CAGR +22% 1.05 0.96 0.75 0.75 0.50 0.50 2013 2014 2015 1H1
Slide 24: Appendix B: Product & Raw Materials Price Trend
Appendix B: Product & Raw Materials Price Trend 2008 : Results Kitchen of The World
Slide 25: Average Farm Prices – Thailand
1H16 : Results Briefing Average Farm Prices – Thailand 24 Thailand’s Broiler price (Baht/kg) 50.0 2014 2015 2016 44.0 45.0 41.7 Average Price 40.2 39.8 38.0 2014 2015 2016 40.0 36.6 36.3 36.7 35.4 41.4 35.8 35.2 35.0 33.8 35.0 % Chg -13% -2% 30.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Cur
Slide 26: Average Farm Prices – Thailand
1H16 : Results Briefing Average Farm Prices – Thailand 25 Thailand’s Fresh egg price (Baht/piece) 4.0 2014 2015 2016 3.1 2.9 2.9 2.9 2.8 Average Price 3.0 2.8 2.7 2.5 2014 2015 2016 2.4 2.3 2.1 2.7 2.4 2.7 2.0 % Chg -12% +13% 1.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Currrent Price Thail
Slide 27: Average Raw Material Prices – Thailand
1H16 : Results Briefing Average Raw Material Prices – Thailand 26 Thailand’s Corn price (Baht/kg) 20.0 2014 2015 2016 15.0 Average Price 10.2 10.5 9.6 9.5 9.8 8.4 9.0 8.6 8.7 8.9 8.7 2014 2015 2016 10.0 9.3 9.6 8.8 5.0 % Chg +3% -9% 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Currrent Pric
Slide 28: Average Farm Prices – Thailand
1H16 : Results Briefing Average Farm Prices – Thailand 27 Thailand’s Fishmeal price (Baht/kg) 2014 2015 2016 50.0 45.0 41.7 40.0 35.7 36.1 Average Price 34.8 35.6 35.4 34.7 34.0 35.0 31.7 32.2 2014 2015 2016 29.3 32.8 36.7 34.2 30.0 % Chg +12% -7% 25.0 20.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q
Slide 29: Vietnam: Average Market Price and Major Feed Raw Materials
1H16 : Results Briefing Vietnam: Average Market Price and Major Feed Raw Materials 28 40,000 31,808 32,312 30,032 27,355 26,569 27,341 30,000 25,698 24,988 24,598 Broiler 23,401 (VND/kg) 20,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 60,000 49,471 51,618 49,309 50,930 45,624 45,475 46,734
Slide 30: Turkey: Average Market Price and Major Feed Raw Materials
1H16 : Results Briefing Turkey: Average Market Price and Major Feed Raw Materials 29 4.00 2.74 2.84 2.84 2.81 2.76 2.76 2.86 2.87 2.73 2.78 2.00 Broiler (TRY/kg) 0.00 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 1.00 0.78 0.75 0.76 0.74 0.75 0.69 0.68 0.72 0.70 0.72 0.50 Corn (TRY/kg) 0.00 1Q14
Slide 31: India: Average Market Price and Major Feed Raw Materials
1H16 : Results Briefing India: Average Market Price and Major Feed Raw Materials 30 100.0 86.3 66.5 67.3 66.9 72.5 72.0 63.4 56.8 57.7 59.5 50.0 Broiler (Rs/kg) 0.0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 450 500.0 333 330 355 326 400.0 308 311 297 256 265 300.0 Shrimp(60 pieces) 200.0 (Rs
Slide 32: Appendix C: Product Sample & Retail Outlet Format
Appendix C: Product Sample & Retail Outlet Format 2008 : Results Kitchen of The World
Slide 33: Food Retail Products
1H16 : Results Briefing Food Retail Products 32
Slide 34: Food Retail Products
1H16 : Results Briefing Food Retail Products 33
Slide 35: Food Service: Five Stars Chain
1H16 : Results Briefing Food Service : Five Stars Chain 34 More Than 6,000 Outlets Five Star Chicken in Vietnam Five Star Chicken in India
Slide 36: Food Service: Chester's Outlets
1H16 : Results Briefing Food Service : Chester’s 35 201 Outlets
Slide 37: Food Retail Outlets
1H16 : Results Briefing Food Retail Outlets 36 419 Stores 5 Stores
Slide 38: CP Chozen Limited Kiosks
1H16 : Results Briefing CP CHOZEN LIMITED 37 22 Kiosks
Slide 39: Appendix D: Highlights: 2Q16 Results
Appendix D: Highlights: 2Q16 results 2008 : Results
Slide 40: 2Q16 Results Highlights
1H16 : Results Briefing 2Q16 Results Highlights 39 Consolidated Revenue Gross Profit Net Profit (THB millions) (THB millions) (THB millions) +13%Y-o-Y +45%Y-o-Y +35%Y-o-Y 116,776 20,277 4,016 103,678 2,983 13,982 2Q15 2Q16 2Q15 2Q16 2Q15 2Q16 Consolidated sales 13% Y-o-Y Gross profit margin Net prof
Slide 41: 2Q16: Sales & Gross Profit Margin by Business
1H16 : Results Briefing 2Q16: Sales & Gross Profit Margin by Business 40 +13% In THB, m 2Q15 116,776 2Q16 103,678 +15% +7% 60,605 52,904 36,377 +5% 34,076 46% 11,044 11,543 5,654 8,251 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 11.9% 16.8% 3.0% 12.6% 15.8% 19.5% 12.8% 11.5%
Slide 42: 2Q16: Consolidated Sales Structure
1H16 : Results Briefing 2Q16: Consolidated Sales Structure 41 Sales Breakdown 2Q15 % to Sales 2Q16 % to Sales % Change Thailand 39,730 38% 44,628 38% 12% Domestic 34,131 33% 37,640 32% 10% Export 5,599 5% 6,988 6% 25% China 26,724 26% 26,136 23% -2% Vietnam 17,146 17% 18,970 16% 11% Others 20,078 19
Slide 43: 2Q16: Consolidated Sales Structure by Business
1H16 : Results Briefing 2Q16: Consolidated Sales Structure by Business 42 Sales Breakdown Livestock Aqualculture Total 2Q15 2Q16 %Change 2Q15 2Q16 %Change 2Q15 2Q16 %Change Thailand 34,076 36,377 7% 5,654 8,251 46% 39,730 44,628 12% Domestic 29,393 30,597 4% 4,738 7,043 49% 34,131 37,640 10% Export
Slide 44: 2Q16: Consolidated Sales by Products
1H16 : Results Briefing 2Q16: Consolidated Sales by Products 43 Sales Breakdown by Products Feed Farm Food Total 2Q15 2Q16 %Change 2Q15 2Q16 %Change 2Q15 2Q16 %Change 2Q15 2Q16 %Change Thailand 12,628 11,884 -6% 17,331 22,215 28% 9,771 10,529 8% 39,730 44,628 12% Domestic 12,584 11,857 -6% 16,073 20
Slide 45: Appendix E: Export Destination
Appendix E: Export Destination 2008 : Results Kitchen of The World
Slide 46: 1H16: Thailand Operations – Export Destination
1H16 : Results Briefing 1H16: Thailand Operations – Export Destination 45 Asia 57% Asia 48% EU 45% EU 39% Others Others USA USA 1% 3% 3% 4% Asia EU USA Others Asia EU USA Others Farm Food THB 3,507 million +29% THB 9,889 million +11%
Slide 47: 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 presentatio
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