Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — Q1 2019 Earnings Presentation
36 slides from Gfpt Public's earnings presentation, May 9, 2019
Slide 1: 1Q/Y2019 Results Presentation
GFPT Public Company Limited 1Q/Y2019 Results Presentation Analyst Meeting 9 May 2019
Slide 2: Disclaimer
Disclaimer This presentation contains summary information about GFPT Public Company Limited (“GFPT” or “the Company”) and its subsidiaries (jointly the “GFPT Group”) as at 31 March 2019 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation
Slide 3: Agenda
Agenda ➢ GFPT Profile ➢ 1Q2019 Financial Results ➢ Broiler Industry Outlook ➢ 2019 Guidance ➢ Q&A ➢ Appendix: ➢ Key Statistics Analyst Meeting No. 2/2019 | 9 May 2019 | page 3
Slide 4: About the Company
About the Company ❖ 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, pa
Slide 5: Good Food ... Good Health
“Good Food ... Good Health” We are committed to produce quality chicken meat according to international standards with attention to every stage of production to ensure, our chicken is fresh, clean, safe, and delicious in every bite. GOOD FOOD Analyst Meeting No. 2/2019 | 9 May 2019 | page 5
Slide 6: GFPT's Vision
GFPT’S VISION “GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production” MISSIONS Quality Satisfaction Responsibility Enhance product quality to Attention to the needs of Build awareness and the international standards customers responsible to society
Slide 7: GFPT Profile
GFPT Profile Symbol GFPT Shareholding Structure as of 7 Mar 2019 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 15.50 per share (30/04/2019) Avera
Slide 8: Group Structure
Group Structure 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., Lt
Slide 9: Feed Mills, Farms, Primary Plants and Further Plants
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: Timeline
Timeline 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 2018 2012 99.99% in FKT (Breeder farm) 99.99% in GFF 49% in McKey 99.99% of GP New feed mill
Slide 11: GFPT Group Expansion Plan
GFPT Group Expansion Plan 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
Slide 12: Product
Product FEED FOOD 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] FARM Day-old-Chick …………………... Live Broiler Processed Food [Sausage, Smoke Sausage, C
Slide 13: Y2018 Snapshot
Y2018 Snapshot Revenue by Segment 17,829 16,692 16,467 16,693 16,928 16,647 15,370 14,214 Farm, 12,472 32% 10,996 11,507 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
Slide 14: Y2018 Market Position
Y2018 Market Position 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. 2/2019 | 9 May 2019 | page 1
Slide 15: 1Q/Y2019 Financial Results
1Q/Y2019 Financial Results
Slide 16: 1Q/Y2019 Financial Results
1Q/Y2019 Financial Results 1Q2019 Consolidated Revenue = THB billion 1Q2019 Revenue Breakdown by Segment Business Segment of 1Q2019 1Q2018 Change GFPT Group THB million % THB million % THB million % Chicken Processing 1,650.69 41.62 1,401.89 37.55 248.80 17.75 Feed 765.32 19.30 706.21 18.92 59.11 8.
Slide 17: 1Q/Y2019 Consolidated Income Statement
1Q/Y2019 Consolidated Income Statement (Unit in THB million) 1Q2018* %Sales 1Q2019 %Sales Change % Change Revenue from sales 3,733.10 100.00% 3,966.01 100.00% 232.91 6.24% Cost of sales (3,223.69) (86.35%) (3,432.23) (86.54%) 208.54 6.47% GROSS PROFIT 509.41 13.65% 533.79 13.46% 24.38 4.79% Other in
Slide 18: 1Q/Y2019 Financial Results
1Q/Y2019 Financial Results Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 3,000 15.0% 16.4% 15.6% 18% 3,500 18.6%19.4%16.0% 18.8% 21% 14.0% 14.3% 14.8% 16.3% 2,500 13.4% 13.6% 13.6% 13.5% 15% 3,000 15.6% 15.9% 15.6% 18% 12.2% 14.5% 14.0% 15.2% 2,500 15% 2,000 12% 2,000 12% 1,500 6.5% 9% 1,5
Slide 19: 1Q/Y2019 Financial Results
1Q/Y2019 Financial Results EPS (THB per share) Return on Asset (%) 2,000 1.21 1.42 1.31 1.33 153% 150% 20,000 13.3% 15% 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,
Slide 20: 1Q/Y2019 Consolidated Financial Position
1Q/Y2019 Consolidated Financial Position Selected Items (Unit in THB million) Y2018 Mar 19 Change % Change Cash and Cash Equivalents 1,240.09 1,046.38 (193.72) (15.62%) Trade and Other Receivables 974.80 960.58 (14.23) (1.46%) Inventories 3,527.98 3,909.09 381.12 10.80% Other Current Assets 27.15 22
Slide 21: 1Q/Y2019 Consolidated Financial Position
1Q/Y2019 Consolidated Financial Position Selected Items (Unit in THB million) Y2018 Mar 19 Change % Change Short - Term Loans from Financial 1,380.00 955.00 (425.00) (30.80%) Institutions Short - Term Loans from Related Persons 16.00 453.40 437.40 2,733.75% Trade and Other Payables 1,143.42 1,314.36
Slide 22: 1Q/Y2019 Consolidated Financial Position
1Q/Y2019 Consolidated Financial Position Selected Items (Unit in THB million) 1Q2018 1Q2019 Change % Change EBIT 213.40 288.19 74.79 35.05% Depreciation - Grandparent & Parent Chickens 134.77 133.10 (1.67) (1.24%) Depreciation & Amortization 175.10 182.43 7.32 4.18% EBITDA 523.27 603.72 80.45 15.37%
Slide 23: 1Q/Y2019 Consolidated Financial Position
1Q/Y2019 Consolidated Financial Position Book Value (THB per share) 20,000 18,000 14,000 9.63 10.15 10.33 1086% 1083% 1080% 1077% 1074% 1071% 1068% 1065% 1062% 1059% 1056% 1053% 1050% 1047% 1044% 1041% 1038% 1035% 1032% 1029% 1026% 1023% 8.60 1020% 1017% 1014% 1011% 1008% 1005% 1002% 999% 996% 993%
Slide 24: 1Q/Y2019 Financial Results
1Q/Y2019 Financial Results 1Q2019 Interest-Bearing Debt = THB 3.37 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% 7
Slide 25: Investment and Y2019 Capital Expenditure
Investment (million THB) 1,145 886 924 912 882 946 456 575 545 594 536 581 2013 2014 2015 2016 w 2017 2018 Breeder Stocks Fixed Assets Y2019 Capital Expenditure 1-1.2 Billion ➢ Broiler Farm ➢ Breeder Farm ➢ Primary Plant Analyst Meeting No. 2/2019 | 9 May 2019 | page 25
Slide 26: Market Outlook and Trend
Market Outlook and Trend Analyst Meeting No. 2/2019 | 9 May 2019 | page 26
Slide 27: Global Broiler Meat Market
Global Broiler Meat Market Others ➢ The 8th Global Chicken Producer 12% ➢ 2018 broiler production = 2,320,000 tons ➢ The 4th Global Chicken Exporter EU Japan 51% 37% ➢ 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% P
Slide 28: 40 Years of Thai Chicken Meat Export
40 Years of Thai Chicken Meat Export 1,000,000 Change 2019E: 2018 2019 Estimated Raw Cooked Total 18 / 19 900,000 MT 900,000 MT Mil. Baht MT Mil. Baht (%) 2018: 892,154 MT Product 800,000 - Raw 325,312 30,768 325,000 30,000 (0.10) - Further (Cooked) 566,842 78,397 575,000 80,000 1.44 Total 892,154 1
Slide 29: Global Broiler Meat Market
Global Broiler Meat Market 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 Tur
Slide 30: Commodity Price
Commodity Price 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 42.0 43.3 42.3 14.6 13.8 14.3 14.2 45.0 38.3 13.2 13.7 13.5 37.3 37.3 36.2 15.0 SBM 34.4 35.7 34.6 34.1 33.4 35.0 41.0 41.8 10.0 35.5 35.2 35.1 34.1 Corn 25.0 30.2 30.4 32.0 30.
Slide 31: 2019 Guidance
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. 2/2019 | 9 May 2019 | page 31
Slide 32: Risk Factor
Risk Factor • Feed Cost Fluctuation • Oversupply • THB Appreciation • Non-Tariff Barrier Analyst Meeting No. 2/2019 | 9 May 2019 | page 32
Slide 33: Key Statistics
Key Statistics Analyst Meeting No. 2/2019 | 9 May 2019 | page 33
Slide 34: Key Statistics: Chicken Processing and Feed Business
Key Statistics: Chicken Processing and Feed Business 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 13,50
Slide 35: Q&A
Q&A Analyst Meeting No. 2/2019 | 9 May 2019 | page 35
Slide 36: Thank You
Thank You 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 GOOD FOOD www.gfpt.co.th GOOD CHICKEN Analyst Meeting No. 2/2019 | 9 May 2019 | page 36