PT Japfa Comfeed Indonesia Tbk Class A · IDX:JPFA
PT Japfa Comfeed Indonesia Tbk Class A — Q2 2016 Earnings Presentation
26 slides from PT Japfa Comfeed Indonesia Tbk Class A's earnings presentation, 2016
Slide 1: Investor Presentation 2Q 2016
Investor Presentation 2Q 2016
Slide 2: Agenda
Agenda 1 Company overview 2 Key investment highlights 3 KKR’s investment in the Company 4 Financial and operational highlights 1
Slide 3: 1. Company overview
) O) ora 1. Company overview
Slide 4: Company overview
Company overview Core competencies across the value chain Upstream Midstream Downstream Feed Breeding Commercial farming Processing Poultry Beef Aquaculture 3
Slide 5: Japfa: Well positioned for long-term growth
Japfa: Well positioned for long-term growth Poultry leader with growing presence in other proteins Diversification efforts to position company − Cattle fattening for long-term growth business in Indonesia − Core business and stable segment of the value chain − Cost plus pricing model allows the − Pr
Slide 6: Industrialized approach drives operational and financial benefits
Industrialized approach drives operational and financial benefits A Scale B Technology & genetics – 2nd largest feed and DoC producer in Indonesia with – Exclusive relationship with Aviagen for the sourcing of significant scale across the value chain: grandparent stock with superior genetics which i
Slide 7: 2. Key investment highlights
2. Key investment highlights 6
Slide 8: Investment highlights
Investment highlights 1 Attractive industry dynamics driven by strong structural growth in protein consumption 2 Leading integrated poultry national champion with nationwide footprint 3 Core feed business offers stable profitability 4 Strong Sponsor with leading pan-Asian agriculture franchise 5 Exp
Slide 9: Attractive industry dynamics driven by strong structural growth in protein consumption
1 Attractive industry dynamics driven by strong structural growth in protein consumption Ample room for sustained growth with amongst the lowest poultry consumption per capita in Asia Strong projected growth in GDP per capita to underpin growing protein consumption “Meat-of-choice” given poult
Slide 10: Leading integrated poultry national champion with nationwide footprint
2 Leading integrated poultry national champion with nationwide footprint 2nd largest Indonesian poultry feed and DoC Nationwide footprint with presence in all major producer islands Poultry feed production capacity market share (%) 34% 31% Japfa is the largest indigenous 22% Indonesian poultry playe
Slide 11: Core feed business offers stable profitability
3 Core feed business offers stable profitability Constitutes >50% of Group’s operating profit Despite volatile commodity prices… …and weakening IDR 220 15,500 200 180 13,000 160 140 +40% since Jan 2010 120 10,500 100 80 60 8,000 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-10 Jan-11 Jan-12 J
Slide 12: Core feed business offers stable profitability: Poultry segmental trends
3 Core feed business offers stable profitability Poultry: 3-year segmental trends Revenue Operating Profit – Revenue trend was (IDR billion) (IDR billion) mainly impacted by the 28,396 28,592 2,000 1,963 1,517 1,909 weakening of IDR and 117 383 24,766 449 lower volumes 1,500 9,412 10,270 7,608 – Pro
Slide 13: Strong Sponsor with leading pan-Asian agriculture franchise
4 Strong Sponsor with leading pan-Asian agriculture franchise Pan-Asian footprint with a focus on emerging economies i.e. Indonesia, China, Vietnam, Myanmar and India Multiple protein player leveraged to growing protein consumption in Asia underpinned by rising income levels Long and proven tr
Slide 14: Experienced and tenured management team
5 Experienced and tenured management team Proven track record of guiding the Company through various cycles Board of Commissioners Syamsir Siregar Hendrick Kolonas Retno Astuti Ignatius Herry Jaka Prasetya President Vice President Wibisono Wibowo Commissioner Commissioner Commissioner Independent In
Slide 15: 3. KKR's investment in the Company
3. KKR’s investment in the Company 14
Slide 16: KKR's Investment in the Company: KKR overview
KKR’s Investment in the Company KKR overview Leading global investment firm with US$131bn of assets under Assets Under Management management across a wide range of asset classes including private (USD billions) equity, special situations etc. As of 30 June 2016 Global presence with offices in 22
Slide 17: KKR's Investment in the Company: Transaction overview & rationale
KKR’s Investment in the Company Transaction overview & rationale KKR acquired ~12% stake in the Company through a combination of primary and secondary share purchase; shares purchased are subject to a one-year lock-up Primary proceeds from KKR’s investment will be used to strengthen the Company’
Slide 18: 4. Financial and operational highlights
4. Financial and operational highlights 17
Slide 19: Financial performance
Financial performance Revenue Operating Profit EBITDA PAT (IDR billion) 2Q 2016 7,107.8 1,004.8 1,189.8 726.6 +14.5% YoY +315.8% YoY +212.6% YoY n.a. 2Q 2015 6,210.2 241.6 380.6 (36.7) 2Q 2016 continues to see a recovery in profitability for Japfa, with growth in operating profit, EBITDA and PAT – R
Slide 20: Growth despite headwinds
Growth despite headwinds – Poultry industry faced oversupply of DOCs since 3Q2014 and has basically turned around in the second half of 2015 – Comparing rolling 12 months ended June 2015 and June 2016, operating margins increased from 3.6% to 10.5%, contributed mainly by very healthy margins in 2Q20
Slide 21: Proven financial track record
Proven financial track record Net Revenues Operating Profit (IDR billion) (IDR billion) 24,459 25,023 21,412 1,820 1,668 1,728 17,833 1,400 1,285 13,542 12,149 352 2012 2013 2014 2015 1H 2015 1H 2016 2012 2013 2014 2015 1H 2015 1H 2016 EBITDA Net Profit (IDR billion) (IDR billion) 1,075 1,033 2,289
Slide 22: Proven financial track record (Cont'd)
Proven financial track record (Cont’d) Total Assets Net Debt / Equity (IDR billion) (%) 18,134 17,159 16,835 154.6% 15,759 14,936 124.7% 113.1% 10,961 96.8% 80.8% 79.3% 2012 2013 2014 2015 1H 2015 1H 2016 2012 2013 2014 2015 1H 2015 1H 2016 CAPEX (IDR billion) 1,564 1,598 1,364 708 403 287 2012 2013
Slide 23: Operational performance
Operational performance Animal Feed – Poultry: Sales Volume (‘000 tons) 722.7 656.7 647.2 639.7 658.5 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 DoC – Broiler: Sales Volume Commercial Farm- Live Birds : Sales Volume (million birds) (‘000 tons) 153.2 148.5 145.4 147.4 148.2 146.1 144.9 134.7 135.4 138.1
Slide 24: Operational performance
Operational performance Beef – Live Cattle: Sales Volume Aquaculture – Aqua-feed: Sales Volume (‘000 tons) (‘000 tons) 67.4 58.7 11.1 55.3 52.9 51.8 9.8 9.1 6.9 5.8 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 23
Slide 25: Capital structure overview
Capital structure overview Debt Maturity Profile of Long-term Debt(2) Debt Composition by Currency (IDR billion) 2,682 Combination of operational and financial hedges and USD cash holdings 1,756 (1) 2,629 1,500 98 2 0 256 2HFY16 2017 2018 2019 2020 Bank Loans IDR Bond USD Bond Total debt (30 June 20
Slide 26: Capex FY2014 – 1H2016
Capex FY2014 – 1H2016 (IDR billion) 1,598 708 287 FY 2014 FY 2015 1H 2016 Moderate capex outlook; primarily focused on maintaining existing operations and utilizing existing spare capacity 25
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