PT Malindo Feedmill Tbk · IDX:MAIN
PT Malindo Feedmill Tbk — Investor Presentation (April 2017)
28 slides from PT Malindo Feedmill Tbk's investor presentation, April 2017
Slide 1: Investor Presentation April 2017
INVESTOR PRESENTATION April 2017
Slide 2: Agenda
Agenda Company Background Industry Outlook Business Lines Company Financials 1
Slide 3: Company Background
Qtariixo 2 —E——— a aa iy wana Ml Sal COMPANY BACKGROUND site see SunnyGold Ma ixno)
Slide 4: Introduction to Malindo
Introduction to Malindo • Established in 1997, Malindo is a fully integrated Sales (IDR bn) poultry producer with 4 main divisions – Feed, Breeder, Broiler & Processed Food. Malindo was 5,246.3 listed on the Indonesia Stock Exchange in 2006 and 4,775.0 4,502.1 has a IDR 2.7 tn market cap(1) • Succes
Slide 5: Key Financial Highlights
Key Financial Highlights • Fast industry growth at c.15% CAGR from 2012 – 2022, driven by rising incomes(1) Attractive, Fast • Amongst the lowest consumption in SE Asia at 11 kg vs. Malaysia at 40 kg(2) Growing Industry • The preferred protein due to its cultural & religious fit and affordability •
Slide 6: 3M 2017 Highlights & Outlook
3M 2017 Highlights & Outlook • DOC & Broiler ASP stabilisation in 2017 Feed 12.1% 18.7% 10.6% 15.4% 5.5% 10.6% Government initiatives ensuring stable DOC & 1,200.0 chicken prices and supply-demand dynamics 0.0% [ DOC ASP: Apr’17: Rp4,700 – Rp5,000; 1,000.0 872.9 833.7 833.7 785.8 733.9 791.3 -50.0%
Slide 7: Impact of volatility in FX & Prices of Raw Materials
Impact of volatility in FX & Prices of Raw Materials Corn Price (USD$ per bu) Soybean Meal Price (USD$ per kg) 5.5 5.5 5.0 5.0 4.5 4.5 4.0 4.0 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 Jan-14 Jul-14 Feb-15 Aug-15 Mar-16 Sep-16 Apr-17 Jan-14 Jul-14 Feb-15 Aug-15 Mar-16 Sep-16 Apr-17 USD/IDR MAIN Profitability
Slide 8: Capex plans 2017 – 2018: Expanding our footprint
Capex plans 2017 – 2018 : Expanding our footprint Capex (IDR bn) Feed capacity (MT) Consumer Foods capacity (MT) CAGR 8% 1,740,000 9,000 9,000 9,000 1,500,000 1,500,000 2016 2017 2018 2016 2017 2018 40 100 110 5 60 70 DOC capacity (Mn birds) CAGR Broiler capacity (MT) CAGR 10% 20% 61,000 280 51,000
Slide 9: Strategic and Diverse locations
Strategic and Diverse locations Current operation Medan Future location – 2017 / 2018 Pontianak Balikpapan Pekanbaru Cikande, Cakung Palembang Banjarmasin Purwakarta Lampung Majalengka Cikarang Semarang Bogor Probolinggo Makassar Sukabumi Gresik Subang Cikaum, Lumajang Bandung Wonosari 2016 Annual A
Slide 10: Industry Outlook
Change pictures, for each section dividers INDUSTRY OUTLOOK
Slide 11: Fast-growing industry driven by rising incomes
Fast-growing industry driven by rising incomes Indonesia’s consuming class is growing, adding 90 Consumption per capita is projected to grow to 12 kg by million people in the consuming class by 2030 2017 (1) Million people 280 280 8,000 14 265 Accelerated consumption rate at 240 12 GDP per capita of
Slide 12: Poultry has been gaining share of consumption
Poultry has been gaining share of consumption Indonesia’s consumption per capita by meat type (1980-2009) 1980 Kilograms per capita 2009 2.4x 23.9 10.0 5.1x 2.1x 1.3x 6.1 3.3 2.3 1.2 1.6 1.8 Fish Poultry Pork/Lamb Beef Share of meat 69% 67% 8% 17% 11% 9% 12% 6% consumption Poultry is well-positioned
Slide 13: Future opportunities in processed food
Future opportunities in processed food Food spending as portion of total Processed food spend in Indonesia Frozen processed chicken spend in income (2002-2013) (2002-2012)(2) Indonesia Percent of total income(1) Trillions of IDR Billions of IDR Spending on food 83 8,869 70 Spending on processed food
Slide 14: Business Lines
BUSINESS LINES
Slide 15: Emerging market leader in poultry
Emerging market leader in poultry Malindo is well-positioned to capture market share from the overall growth in the poultry industry, including the growing branded processed poultry segment Indonesia feed production capacity share (2015) Indonesia DOC production capacity share (2015) CPIN CPIN JPFA
Slide 16: Feed
Feed • Highest contributor to revenues and EBIT – FY2016 sales of IDR3.4 tn (FY2015: IDR3.2 tn) at 56% (FY2015 : 55%) of optimal utilization – 64% of FY2016 Revenue – 3M 2017 EBIT margin:10.6% (FY2016: 14.4%, FY2015: 13.5%); Q1’17 QoQ volume growth of 5% • Installed capacity in 2016 is 1.5 mn tons w
Slide 17: Production Process – Poultry Feed
Production Process – Poultry Feed Raw Material Raw Material Grinding & Mixing Pelleting Feed Additive, Poultry Feed Feed Vitamin and (Pellet/ Others (Mass) Crumble) QUALITY CONTROL to maintain high QUALITY CONTROL quality raw material DELIVERY 16
Slide 18: DOC
DOC • FY2016 sales of IDR1,203 bn (FY2015: IDR937 bn) – 23% of revenues; market improvement in 2016 due to market recovery, with expected stabilization in 2017 • High quality, disease-resistant DOC sourced from Cobb-Vantress – Efficient Feed Conversion Ratio (FCR), low mortality rates, high uniformi
Slide 19: Production Process – DOC
Production Process – DOC BREEDING FARM DOC Growing Producing (Parent Stock) (1-24 weeks) (25-66 weeks) Hatching Eggs Hatchery Poultry Feed, Poultry Feed, Holding Room Vaccine, Vitamin Vaccine, Vitamin (Max 3 days) and Other and Other Incubator (18 days) High quality Advanced technology and Hatcher s
Slide 20: Broiler
Broiler • FY2016 sales of IDR605 bn (FY2015: IDR532 bn), 11% of total revenues. FY2016 volume growth of 18% and projected volume growth of between 12%-15% in FY2017 • High quality DOC and best-in-class farm management ensures high-quality broiler • Diverse geographic location limits disease outbreak
Slide 21: Processed Food
Processed Food • Volume growth of 44% in FY2016, with sales revenue of IDR87 bn (2% of total revenues) • State-of-the-art production plant with installed production capacity of 9,000 tons per annum – Current installed capacity will be sufficient to cover projected demand for the next 2 years – With
Slide 22: Company Financials
Change pictures, for each section dividers COMPANY FINANCIALS
Slide 23: Financial Performance
Financial Performance Net Sales Chicken Gross Profit consumption grew IDR bn IDR bn at 7% CAGR from 924 CAGR 2012-16 11.9% 718 5,246 638 4,502 4,775 540 4,193 3,350 322 237 1,300 1,269 166 2012 2013 2014 2015 2016 2016 2017 2012 2013 2014 2015 2016 2016 2017 (3M) (3M) (3M) (3M) EBITDA Net Income IDR
Slide 24: Financial Performance
Financial Performance 2017 (3M) Revenue Breakdown Shareholders' Equity 2.2% IDR bn 11% 1,839 1,864 9.9% 1,550 Feed DOC 1,080 22.2% Broiler 867 685 65.7% Processed food 2012 2013 2014 2015 2016 2017 (3M) Leverage Ratio Historical Capex Net Debt/Equity Net Debt/EBITDA IDR bn 10.7 665 354 356 338 320 3
Slide 25: Appendix
APPENDIX ee SunnyGold
Slide 26: Experienced professional team with recognized track record
Experienced professional team with recognized track record • Founding shareholders have more than 40 years of experience in the industry in South East Asia • Senior management has 15-20 years of industry experience • Winner of Forbes Indonesia’s Top 50 Best of the Best Companies award 4 times in a r
Slide 27: 19 Years of Excellence
19 Years of Excellence 1997-98 2000 2003 2006 2007-2008 • Established PT. • Acquired feedmill • Acquired a feedmill • Listed in JSX • Established a Gymtech Feedmill business from Subur from PT Unggul Sari • Started Grand Parent subsidiary for Indonesia in 1997 Group (150,000 MT Citra Topfeed (300,00
Slide 28: Disclaimer
Disclaimer By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to the following limitations and notifications and represent that you are a person who is permitted under applicable law and regulation to receive information of the kind contained i
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