JB Foods Ltd. · SGX:BEW
JB Foods — Shareholder Meeting (April 2019)
35 slides from JB Foods's shareholder meeting presentation, Apr 30, 2019
Slide 1: AGM Shareholders' Presentation 30 April 2019
AGM Shareholders’ Presentation 30 April 2019
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Outline
Outline Cocoa Bean Grinding and Production Statistics Pg. 5 Introduction Milestones Pg. 7 Group Structure Pg. 8 Management team Pg. 9 Our Products Pg. 10 Global Presence Pg. 11 to 17 Business Performance Review Financials Pg. 19 to 26 JB Sustainability team Indonesia Pg. 28 JB Strength, Expansion &
Slide 4: Cocoa Bean Grinding & Production Statistics
Cocoa Bean Grinding & Production Statistic
Slide 5: Cocoa bean grinding and production
Cocoa bean grinding and production 4700.0 COCOA GRINDINGS) 4200.0 3700.0 3200.0 2700.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Bean grinding ('000 MT) 2,960 3,065 2,886 3,078 3,238 3,363 3,508 3,661 3,749 3,490 3,737 3,938 3,972 4,180 4,335
Slide 6: Introduction of JB Foods
CZ JBCOCOA Introduction of JB F@gg@s
Slide 7: Milestones
Milestones 2013 to 2016 to 2000 2012 2015 2019 Completion of 3rd factory – JB Cocoa Trading offices China. Incorporation of JB Cocoa 1st factory - USA/Eastern Europe/Indonesia Incorporation of Cote D’Ivoire IPO in Singapore Malaysia 2nd Factory - Indonesia Switzerland, Estonia subsidiary subsidiary.
Slide 8: Group Structure
Group Structure JB Foods Limited JB Cocoa Europe JB Foods Global JB Cocoa SA JB Cocoa Sdn Bhd OU Pte Ltd (Switzerland) (Malaysia) (Estonia) (Singapore) Allegis NDP Sdn JB Cocoa Holding Bhd Inc (Malaysia) (USA) PT Jebe Trading Indonesia JB Cocoa CI JB Cocoa Inc (Indo) (Cote D’Ivoire) (USA) JB Cocoa F
Slide 9: Directors and Management Teams
Directors and Management Teams Board of Directors Strategic Business Direction Group CEO, Business Development Group Trading & Financials / Risk Operations, Project, Group Sales & Procurement, Management / Quality, Technical Marketing, R&D Sustainability Compliance Management 10 30 20 50 9
Slide 10: Our Products
Our Products Cocoa Beans Cocoa Liquor/Mass Cocoa Cake Cocoa Butter Cocoa Powder 10
Slide 11: JB Cocoa Sdn Bhd (Malaysia)
JB COCOA SDN BHD (MALAYSIA) Land Size : 64,000m2 Build-up : 35,000m2 Capacity : 120,000MT
Slide 12: JBCOCOA Kota Tinggi
JBCOCOA Ld Kota Tinggi
Slide 13: PT Jebe Koko (Indonesia)
PT JEBE KOKO (INDONESIA) Land Size : 20,000m2 Build-up : 12,000m2 Capacity : 60,000MT
Slide 14: JBCOCOA
JBCOCOA
Slide 15: JB Cocoa (China)
JB COCOA (CHINA) Land Size : 20,000m2 Build-up : 13,000m2 Just-In-Time Delivery
Slide 16: JBCOCOA
JBCOCOA
Slide 17: Our Global Presence
Our Global Presence JBC Europe JB Cocoa OÜ, Estonia Russia JB Cocoa SA, Switzerland JB Cocoa Eastern Europe(Ukraine) JB Cocoa (China) JB Cocoa Inc (USA) JB Cocoa CI, JB Cocoa Cote D’Ivoire JB Foods Sdn Bhd Singapore PT Jebe Trading Indonesia PT Jebe Koko Regional Trading & Manufacturing & Warehouse
Slide 18: Business Performance Review
BUSINESS PERFORMANCE REVIEW
Slide 19: Financial Highlights – At a glance
Financial Highlights – At a glance (In US$'000) FY2018 FY2017 Y-on-Y Change Revenue 327,114 295,625 11% EBITDA 41,633 24,084 73% PBT 34,088 16,896 102% FY2018 FY2017 Y-on-Y Change ROE (%) 26% 18% 45% Dividend payout 25% 24% 5% EPS (US cents) 9.1 5.4 69% NAV per share (US cents) 40.26 36.98 9% Net ge
Slide 20: Sales by Region/ Country
Sales by Region/ Country 2018 2017 2016 Revenue USD'000 USD'000 USD'000 America 92,274 28% 74,665 25% 77,576 26% USA, China and USA 83,017 25% 67,749 23% 59,233 20% Russia, remains Others 9,257 3% 6,916 2% 18,343 6% our top 3 revenue Asia China 143,327 41,454 44% 13% 131,749 34,535 45% 12% 129,983
Slide 21: JB Foods Performance
JB Foods Performance Revenue (USD'm) PBT (USD'm) 34.1 327 301 296 219 227 16.9 4.4 2.4 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2018 financials -12.7 • 5 years CAGR at 10.5% in revenue; • 4 years CAGR at 142% in our profitability (“PBT”). More than double in bottom line from FY2017
Slide 22: JB Foods banking trade facilities
JB Foods banking trade facilities 2011 2012 2013 2014 2015 2016 2017 2018 USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil USD'mil Banking Facilities 64.7 78.0 109.5 113.4 115.0 130.0 150.0 180.0 Utilisation 44.4 53.6 87.4 102.6 85.2 101.6 78.5 80.3 % of headroom 31% 31% 20% 10% 26% 22% 48% 5
Slide 23: Strong financial position
Strong financial position 130 56.0 • Well-capitalised with 120 shareholders’ equity at SHAREHOLDERS' EQUITY (USD'M) 53.0 110 USD122m (approximately NAV PER SHARE (SGD CENTS) 50.0 SGD165m) as at 31.12.18. 100 47.0 (Exchange rate of USD to 90 44.0 SGD: 1.35) 80 41.0 70 38.0 • Share price of SGD0.65 60
Slide 24: Profit and Loss Analysis
Profit and Loss Analysis (In US$'000) FY2018 FY2017 Y-on-Y Change Explanatory Revenue 327,114 295,625 31,489 11% N1 Cost of sales (277,673) (263,735) (13,938) 5% Gross profit 49,441 31,890 17,551 55% N2 Interest income 110 114 (4) -4% Other gains, net 1,332 (1,725) 3,057 -177% Foreign exchange gains
Slide 25: Balance Sheet Analysis
Balance Sheet Analysis 2018 2017 2018 2017 Extract of Balance sheet USD'000 USD'000 Variance USD'000 USD'000 Variance - ##### Non-current assets 75,356 63,245 12,111 19% Current liabilities (120,783) (110,634) (10,149) 9% PPE 68,075 55,611 12,464 22% N1 Trade payables (27,556) (19,505) (8,051) 41% N
Slide 26: Cash Flow Analysis
Cash Flow Analysis 2018 2017 Extract of Cash Flow Statement USD'000 USD'000 Explanatory Operating cash flows before working capital changes 40,553 23,611 Higher cocoa bean inventories due to 30% production Changes in working capital (31,907) 19,792 capacity increase, require higher working capital I
Slide 27: JB Cocoa Sustainability team - Indonesia
JB Cocoa Sustainability team - Indonesia
Slide 28: Sustainability teams – Sulawesi, Indonesia
Sustainability teams – Sulawesi, Indonesia • 20 staffs • 3800 cocoa farmers • 4000 hectares • 350kg certified bean per hectare • Lead Farmer program - Provide coaching and training - Nursery program
Slide 29: JB Strength Expansion Strategy
JB STRENGTH EXPANSION STRATEGY
Slide 30: JB Foods' Competitive Strengths
JB Foods’ Competitive Strengths Loyal and supportive customer • Mars, Nestle, Mondelez and Hersheys are our long base standing customers • Efficient and nimble decision making Management focus • Focus on product development and service quality • Management – strong experience in cocoa industry • Cap
Slide 31: Our Growth Strategy
Our Growth Strategy
Slide 32: Our Growth Strategy
Our Growth Strategy Sustainable Growth • Robust balance sheet with low net gearing (less than 1 time) Financial • Available debt capacity for business growth Procurement • Strengthen our Indonesia bean procurment • Develop cocoa bean sustainability team in West Africa Operations • Focus on cost effi
Slide 33: Key Takeaways
Key Takeaways
Slide 34: Key Takeaways
Key Takeaways • Industry at healthy growth • Cocoa terminal prices remains volatile (weather, crops yield, supply & demand from grinding and consumptions) • Balanced business growth strategy • Build and expand sustainable customer base • Optimize factory utilization, lowering production costs • Orga
Slide 35: Thanks!
THANKS!