Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — FY2018 Earnings Presentation
35 slides from Gfpt Public's earnings presentation, Feb 21, 2019
Slide 1: Analyst Meeting No. 1/2019
Analyst Meeting No. 1/2017 | 23 February 2017 | page 1
Slide 2: Disclaimer and forward-looking statements
This presentation contains summary information about GFPT Public Company Limited (“GFPT” or “the Company”) and its subsidiaries (jointly the “GFPT Group”) as at 31 December 2018 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation contains
Slide 3: Agenda
GFPT Profile 2018 Financial Results Broiler Industry Outlook 2019 Guidance Q&A Appendix: Key Statistics Analyst Meeting No. 1/2019 | 21 February 2019 | page 3
Slide 4: GFPT Public Company Limited overview
GFPT Public Company Limited (TB:GFPT), founded in 1981 with headquarters in Bangkok, Thailand, is one of The Thailand’s chicken processors and marketers. Company is specialized in fully vertical integrated chicken production starting from feed mill, grandparent breeder farm, parent breeder farm,
Slide 5: GFPT strives to be a leading chicken meat exporter
“GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production” Enhance product quality to Attention to the needs of the international standards customers Confidence through the Build strong relationship traceability system among partners for long term New
Slide 6: Shareholding Structure as of Mar 2018
Shareholding Structure as of 14 Mar 2018 Industry / Sector Agro & Food Industry / Agribusiness Excellent 2018 CG Score [90 – 100 CG Report Score] Anti - Corruption Certified to be a member of Collective Action Coalition: CAC Closed Price THB 12.00 per share (28/12/2018) Average Price THB 14.13 per s
Slide 7: Company history and milestones
Sausage capacity expansion (GFF) Stock split from THB 10 New further processing plant GFPT Initially established Listed in SET to THB 1 per share (McKey) 1981 1992 2010 2017 1990 1991 1993 2003 2008 2012 99.99% in FKT (Breeder farm) 99.99% in GFF 49% in McKey 99.99% of GP New feed mill (KT2) in Chol
Slide 8: Group structure: subsidiaries and joint ventures
GFPT GFPT Public Company Limited Chicken Evisceration and Processed Food 5 Subsidiaries 2 Joint Ventures Keystone Foods Inc. [51%] McKey | 49.00% McKey Food Services (Thailand) Ltd. Frozen Processed Food KT | 98.26% FKT | 99.99% GFF | 99.99% Krungthai Food PCL. Krungthai Farm Co., Ltd. GF Foods Co.,
Slide 9: Vertically integrated production chain
Import Grand Parent Chicks Broiler Production = 9 months (PS Chicks Broiler) 6 wks raising to reach market weight Feed Mills GFPT Group Farm Primary Plants Sausage Plant KT1: Produce animal feed and 100% Company Own Farm Operation Chicken meat are sold to export market and Sausages are sol
Slide 10: Product range
Animal Feed [Pig, Layer Hen, Duck, Cow, etc.] Chicken Parts and Meat [Bone-in, Boneless, Cut-up, Marinated] Fish Feed Shrimp Feed Cooked Product [Fully Cooked, Par-fried, Breaded, Steamed, Roasted] Day-old-Chick …………………... Live Broiler Processed Food [Sausage, Smoke Sausage, Chicken Meatballs] Analy
Slide 11: Revenue by Segment, Destination and Currency
Revenue by Segment 17,829 16,692 16,467 16,693 16,928 16,647 15,370 14,214 Farm, 12,472 10,996 11,507 32% 8,122 Food, 50% Feed, 18% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenue by Destination Revenue by Currency Revenue by Product DOC, 2% Chicken EUR Live Export, 1% Chicken, 2
Slide 12: 3rd in Thai Chicken Export, 6th in Production
3rd in Thai Chicken Export 6th in Thai Chicken Production GFPT Group GFPT Group 7% 13% Export by Destination Export by Product Type Others EU 17% 34% Cooked 72% Raw JP 28% 49% Source: Thai Broiler Processing Exporters Association Analyst Meeting No. 1/2019 | 21 February 2019 | page 12 Note: 2018 Tha
Slide 13: 2018 Financial Results
Analyst Meeting No. 1/2017 | 23 February 2017 | page 13
Slide 14: Y2018 Revenue Breakdown by Segment
Y2018 Consolidated Revenue = THB billion Y2018 Revenue Breakdown by Segment Business Segment of Y2018 Y2017 Changes GFPT and its subsidiaries THB million % THB million % THB million % Chicken Processing 7,545.44 45.33 7,554.13 44.62 (8.69) (0.12) Feed 3,129.01 18.80 3,379.98 19.97 (250.97) (7.43) Fa
Slide 15: Income statement Y2017 vs Y2018
(Unit in THB million) Y2017 %Sales Y2018 %Sales Change % Change Revenue from sales 16,928.47 100.00% 16,647.02 100.00% (281.45) (1.66%) Cost of sales (14,150.92) (83.59%) (14,263.56) (85.68) 112.64 0.80% GROSS PROFIT 2,777.55 16.41% 2,383.46 14.32% (394.10) (14.19%) Y17 Y18 Other income 318.24 1.88%
Slide 16: Gross Profit, EBITDA and Net Profit margins
Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 3,000 16.4% 15.9% 18% 3,500 18.6%19.4%16.0% 18.8% 21% 15.0% 15.6% 17.5% 14.0% 14.3% 14.8% 16.3% 13.4% 13.6% 3,000 15.6% 15.9% 15.6% 18% 2,500 13.1% 15% 14.5% 12.2% 2,500 13.2% 15% 2,000 12% 2,000 12% 1,500 6.5% 9% 1,500 7.1% 9% 1,000 6% 1,000 6
Slide 17: EPS, ROA, Dividend and ROE
EPS (THB per share) Return on Asset (%) 2,000 1.21 1.42 1.33 153% 20,000 13.3% 15% 1.31 150% 147% 144% 1,800 141% 138% 18,000 11.6% 135% 132% 129% 10.6% 1,600 126% 123% 16,000 12% 0.95 120% 117% 114% 9.9% 1,400 111% 108% 14,000 0.83 105% 102% 8.3% 99% 96% 1,200 93% 90% 12,000 9% 87% 84% 1,000 81% 78
Slide 18: Selected balance sheet items: assets
Selected Items (Unit in THB million) Y2017 Y2018 Change % Change Cash and Cash Equivalents 736.26 1,240.09 503.83 68.43% Trade and Other Receivables 1,013.27 974.80 (38.46) (3.80%) Inventories 3,608.19 3,527.98 (80.22) (2.22%) Other Current Assets 14.10 27.15 13.05 92.55% TOTAL CURRENT ASSETS 5,371.
Slide 19: Liabilities and shareholders' equity
Selected Items (Unit in THB million) Y2017 Y2018 Change % Change Short - Term Loans from Financial 1,650.00 1,380.00 (270.00) (16.36%) Institutions Short - Term Loans from Related Persons 160.00 16.00 (144.00) (90.00%) Trade and Other Payables 924.02 1,143.42 219.40 23.74% Current Portion of Long-Te
Slide 20: EBIT, EBITDA and cash flow
Selected Items (Unit in THB million) Y2017 Y2018 Change % Change EBIT 2,051.61 1,379.42 (672.19) (32.76%) Depreciation - Grandparent & Parent Chickens 569.91 555.00 (14.91) (2.62%) Depreciation & Amortization 654.85 724.33 69.48 10.61% EBITDA 3,276.37 2,658.75 (617.62) (18.85%) Net Cash Received fro
Slide 21: Book value and equity ratios
Book Value (THB per share) 20,000 14,000 9.63 10.15 1068% 1065% 1062% 1059% 1056% 1053% 1050% 1047% 1044% 1041% 1038% 1035% 1032% 1029% 1026% 1023% 1020% 1017% 1014% 1011% 1008% 1005% 18,000 8.60 1002% 999% 996% 993% 990% 987% 984% 981% 978% 975% 972% 969% 966% 963% 960% 957% 954% 951% 948% 945% 942
Slide 22: Total liabilities and net debt to EBITDA
Y2018 Total Liabilities = THB 5.40 billion Net Debt to EBITDA (million THB) 4,000 8.29 873% 870% 867% 864% 861% 858% 855% 852% 849% 846% 843% 840% 837% 834% 831% 828% 825% 822% 819% 816% 813% 810% 807% 804% 801% 798% 795% 792% 789% 786% 783% 780% 777% 774% 771% 768% 765% 762% 759% 756% 753% 750% 747
Slide 23: Investment and Broiler Expansion Plan
Investment (million THB) Y2019 Capital Expenditure - - 3 - - 1,145 886 924 912 946 Broiler Farm 575 594 Breeder Farm 456 545 536 Primary Plant 2013 2014 2015 2016 2017 Breeder Stocks Fixed Assets Associates & JV Broiler Expansion Plan Broiler Raising Capacity 2018 2019 2020 2021 2022 300,000 3
Slide 24: Future and Recent Projects
Future Project GFPT Broiler Farm Raising capacity to reach 340,000 birds per day by 2020 GFPT Slaughter House New slaughter house capacity at 150,000 birds per day by 2020 GFPT Further Processing Plant Cooked product for export capacity at 24,000 MT per year by 2022 Recent Project McKey Further Proc
Slide 25: Broiler Industry Outlook
Analyst Meeting No. 4/2018 | 8 November 2018 | page 25
Slide 26: Global chicken producers and exporters
Others The 8th Global Chicken Producer 14% 2018 broiler production = 2,320,000 tons EU The 4th Global Chicken Exporter 45% Japan 61% 2018 broiler meat export = 890,000 tons Cooked 63% Raw 37% USA Brazil EU China Argentina Turkey Thailand 16% 27% 12% 4% 6% 17% 38% Production Export Source: US
Slide 27: Thai chicken export volumes
1,000,000 Change 2018E: 2017 2018 Estimated Raw Cooked Total 17 / 18 890,000 MT 900,000 MT Mil. Baht MT Mil. Baht (%) 2017: 801,371 MT Product 800,000 - Raw 252,666 24,084 331,000 32,000 31.00 - Further (Cooked) 548,705 78,489 559,000 77,000 1.88 2012: 552,362 MT Total 801,371 102,573 890,000 109,00
Slide 28: Global chicken production, import, export and consumption
Global Production [Y2018= 95,594,000 tons] Global Import [Y2018 = 9,363,000 tons] USA 19,350 Japan 1,140 Brazil 13,550 Mexico 845 EU 12,315 EU 650 China 11,700 Iraq 620 India 4,855 Saudi Arabia 575 Russia 4,725 S.Africa 535 Mexico 3,500 UAE 408 Thailand 2,320 China 350 Turkey 2,250 Angola 310 Argent
Slide 29: Feed, broiler, day-old-chick and export prices
Corn & Soy Bean Meal (THB/Kg.) Broiler at Farm Gate (THB/Kg.) 25.0 65.0 20.0 20.0 17.6 55.0 16.7 15.1 15.1 14.6 42.0 43.3 42.3 13.8 14.3 14.2 13.8 45.0 38.3 37.3 37.3 15.0 13.4 13.2 13.7 35.9 35.7 34.6 34.1 SBM 34.4 33.4 34.9 35.0 41.0 41.8 10.0 35.5 35.2 35.1 34.1 10.5 Corn 10.6 25.0 30.2 31.9 30.4
Slide 30: 2019 Guidance
2019 Guidance Revenue 5% growth from 2018 sales Gross Profit Margin 14% - 15% SG&A 7.8% - 8.0% Financial Cost ≈ 2.5% Effective Tax Rate 15% - 20% CAPEX THB 1 - 1.2 billion Analyst Meeting No. 1/2019 | 21 February 2019 | page 30
Slide 31: Risk Factors
Risk Factor • Feed Cost Increase • Oversupply • THB Appreciation • Non-Tariff Barrier Analyst Meeting No. 1/2019 | 21 February 2019 | page 31
Slide 32: Key Statistics
Key Statistics Analyst Meeting No. 1/2019 | 21 February 2019 | page 32
Slide 33: Chicken meat and feed sales volumes
Chicken Meat Direct Export (MT) Chicken Meat Indirect Export (MT) Chicken Meat Domestic (MT) + 7% 32,700 + 2% 30,600 28,300 + 10% 66,500 66,300 18,100 63,100 65,400 62,700 65,200 26,200 17,400 59,600 16,500 16,500 22,500 15,900 22,100 14,900 13,500 18,700 + 21% + 12% - 2% 9,100 18,300 7,500 16,300 4
Slide 34: Analyst Meeting No. 1/2019
Analyst Meeting No. 1/2019 | 21 February 2019 | page 34
Slide 35: Investor Relations Department
INVESTOR RELATIONS DEPARTMENT Dr. Jutamas Ingpochai jutamas@gfpt.co.th T +66 2 473 8022 Veera Titayangkaruvong veera-tita@gfpt.co.th T +66 2 473 8000 ext. 1802 www.gfpt.co.th Analyst Meeting No. 1/2019 | 21 February 2019 | page 35