Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Q1 2022 Earnings Presentation
47 slides from Charoen Pokphand Foods Public's earnings presentation, May 13, 2022
Slide 1: Q1/2022 Results Briefing
Charoen Pokphand Foods Public Company Limited Q1/2022 Results Briefing Investor Presentation May 13, 2022
Slide 2: Contents
Contents Business Overview 02 Q1/2022 Financial Results 09 FY2022 Outlook 17 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: Group of Associate Companies & Joint Ventures D: Product Sample & Retail Outlet Format P.1
Slide 3: Why Invest in CPF
Why Invest in CPF Our Vision is… “Aiming to compete in the front line of the food industry, we use resources properly and environmental friendly. The Company takes into account the interests of all stakeholders to ensure sustainable growth, while being able to generate appropriate return to sharehol
Slide 4: Sustainability
Sustainability Commit to support Recognized as Sustainable company PEOPLE : Improving Quality of Life PLANET : Protecting our Planet Silver Class Climate / Water / Forest PROSPERITY : Creating Prosperity Since 2017 Since 2017 PEACE : Building Peace PARTNERSHIP : Partnering for Collaboration Since 20
Slide 5: Company Highlights
Company Highlights Market Cap THB 214 billion Sales in FY2021 THB 513 billion (or ~USD6.2 billion) as of May 12, 2022 (or ~USD15.9 billion) Sales Breakdown • 8,611 million shares (paid-up) with par THB TH-Export, 1.00 per share Livestock, Farm, 6% 85% 54% TH- • Book Value THB 25.73* per share as of
Slide 6: Vertically Integrated Business in Thailand
Vertically Integrated Business in Thailand The integrated food process to offer top-quality products in terms of nutrition, taste, food safety, and traceability with the focus to maintain world-class, modern production process as well as efficient and ecofriendly consumption of natural resources. Fe
Slide 7: CPF Geographical Footprints
CPF Geographical Footprints • Operations and investment in 17 countries catered to > 4 billion population • Export to more than 40 countries across 5 continents Russia Canada Livestock feed Swine integrated business Swine farming Chicken integrated business USA Ready to eat foods UK Food & Tra
Slide 8: Our Strategy for Growth
Our Strategy for Growth 1 Fully integrated business model Globalization by establishing a proper 2 business model suitable for each strategic market Expand Market in 17 Countries Value-added business by expanding 3 portfolio towards innovative products and services to serve rising demands Digital Tr
Slide 9: CPF Operation Structure
CPF Operation Structure (as of Mar 31, 2022) Q1/2022 : Sales: THB 138,887 m Net Profit: THB 2,842 m 37% of Sales 63% of Sales Associates & CPF Thailand 1 CPF International Joint Ventures (2) 32% of Sales 26% of sales 37% of sales CPP TW:1215 CPE Taiwan (39.00%) CP Meiji (59.99%) Domestic UK (99.98%)
Slide 10: Performance Summary
Performance Summary Unit: THB, m Q1/2021 Q1/2022 %Chg. SALES REVENUE 119,346 138,887 16% Gross Profit Margin 19.9% 12.8% EBITDA 19,486 13,615 -30% EBITDA Margin 16.3% 9.8% G/L on FV of Biological Assets -74 1,098 1584% Share in Profit of Associates 2,043 -336 -116% NET PROFIT 6,945 2,842 -59% Net Pr
Slide 11: Q1/2022: Sales & Profit Margin by Business
Q1/2022: Sales & Profit Margin by Business In THB, m Q1/2021 Q1/2022 +16% 138,887 +15% 119,346 +13% CTI 115,961 74,430 64,767 +42% +14% 44,586 39,385 12,837 9,038 6,156 7,034 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 17.1% 15.4% 13.0% 11.8% 23.6% 11.6% 10.6% 11.1% 19.9% 12.
Slide 12: Q1/2022: Sales Structure by Business
Q1/2022: Sales Structure by Business Sales Breakdown Livestock Aquaculture Total Q1/21 Q1/22 %Change Q1/21 Q1/22 %Change Q1/21 Q1/22 %Change Thailand 39,385 44,586 13% 6,156 7,034 14% 45,541 51,620 13% Domestic 33,483 38,379 15% 5,146 5,941 15% 38,629 44,320 15% Export 5,902 6,207 5% 1,010 1,093 8%
Slide 13: Q1/2022: Sales Structure by Products
Q1/2022: Sales Structure by Products Sales Breakdown by Products Feed Farm Food Total Q1/21 Q1/22 %Change Q1/21 Q1/22 %Change Q1/21 Q1/22 %Change Q1/21 Q1/22 %Change Thailand 10,036 11,044 10% 24,695 27,879 13% 10,810 12,697 17% 45,541 51,620 13% Domestic 10,024 11,025 10% 22,663 26,479 17% 5,942 6,
Slide 14: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Unit: THB, m Q1/2021 Q1/2022 %Chg. Net sales 119,346 138,887 16% Gross Profit Margin 19.9% 12.8% EBIT 12,708 6,134 -52% EBIT Margin 10.6% 4.4% EBITDA 19,486 13,615 -30% EBITDA Margin 16.3% 9.8% G/L on FV of Biological Assets (74) 1,098 1584% Financial Costs (4
Slide 15: Financial Status
Financial Status (As of Mar 31,2022) Interest Bearing Debt: THB 450,201 m * Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 430,717 450,201 331,107 384,246 1.37x 1.25x 1.36x 1.62x 2019 2020 2021 Q1'22 2019 2020 2021 Q1'22 Cash and Cash Equivalent Net D/EBITDA (THB, m) 57,035 32,094 36,686 2
Slide 16: FY2022 Investment and Financing Activities
FY2022 Investment and Financing Activities January February March April Announcement Announcement C.P.Vietnam Corporation (CPV) Withdrawal of listing of the applies for approval of share ordinary shares of CPP distribution to become a public Effective on 18 January 2022 company in Vietnam Financing
Slide 17: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies Stock Price Market Cap. CPF Holding Holding Value (Local Curr.) (THB mm) (%) (THB mm) (As of Mar 31, 2022) CPALL THB 65.00 583,902 33.83% 197,534 (SET:CPALL) Siam Makro THB 39.75 420,567 8.85% 37,220 (SET:Makro) TRUE THB 5.15 171,846 2.21% 3,798 (SET:TRUE) CPE TW
Slide 18: FY2022 Outlook
FY2022 Outlook Growth Target International business expansion continues to drive growth. Key Drivers & Focus Capacity expansion in multiple countries Efficiency improvement to reduce cost of production Expected higher meat prices in Thailand Consumption demand to improve post Covid-19 situ
Slide 19: Appendix A
Appendix A Highlights : 3Yr Historical Results
Slide 20: Gross Profit Margin & Operating Profit Margin
Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM ** Thai-Aqua OPM** 25.0% 25.0% 19.1% 20.0% 15.4% 16.0% 17.1% 15.4% 20.0% 14.7% 16.3% 15.9% 13.4% 15.0% 15.0% 13.1% 13.0% 11.8% 10.0% 7.7% 7.6% 7.2% 10.6% 9.9% 10.2% 6.6% 9.4% 5.3% 5.2% 4.7% 10.0% 3.0% 3.4% 5.8% 6.4% 5.0% 5.2% 5
Slide 21: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2020 FY2021 Q1/2022 Asia Asia 81% Asia 85% 78% Others USA EU EU Others EU Others USA 1% USA 4% 4… 6% 9% 6% 10% 7% 9% Asia EU USA Others Asia EU USA Others Asia EU USA Others Farm Farm Farm THB 8,506 million +6% THB 6,951 million -18% THB 1,400 million -31%
Slide 22: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year FY2019 FY2020 % Change FY2021 % Change Net sales 532,573 589,713 11% 512,704 -13% Gross Profit Margin (%) 14.3% 18.2% 12.9% EBIT 24,511 53,364 118% 19,222 -64% EBITDA 51,765 91,207 76% 55,882 -39% Share in Profit of Associates 8,893 9,254 4% 4,167 -5
Slide 23: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m CPP EBITDA Margin% CPF 100,000 20.0% 91,207 90,000 18.0% 25,240 26,523 24,035 5,772 80,000 16.0% 70,000 15.5% 14.0% 60,000 55,882 12.0% 51,765 9.8% 10,503 13,197 7,903 50,000 10.9% 10.0% 40,000 9.7% 8.0% 30,000 6.0% 14,737 16,132 20,000 13,615 4.
Slide 24: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Unit: THB, m ROA Gain on one time transaction Divestment and Dividend 6.3% Equity (Share in Profit of Associates) EBIT 3.8% 1.7% 1.0% CAGR -16% 4,166 2019 2020 2021 Q1'22 1,693 ROA = Net Income (include Non-Controlling Interest )/Average Tota
Slide 25: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m 1Q 2Q 3Q 4Q 7,475 6,945 6,720 6,111 6,028 6,408 6,062 4,279 4,105 4,738 4,010 2,842 Y2019 Y2020 Y2021 Y2022 -5,375 Full Year: 18,456 26,022 13,028 2,842 Net Profit P.24
Slide 26: EPS & Dividends per Share
EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Dividend Semi-annually, not less than 30% of CAGR -15% Policy consolidated annual net profit Final Dividend Interim Dividend 3.14 1.00 2.18 0.70 0.60 0.65 1.56 0.40 0.25 0.40 0.40 0.30 0.34 2019 2020 202
Slide 27: Appendix B
Appendix B Products & Raw Materials Price Trend
Slide 28: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 48.0 Y20 Y21 Y22 46.0 44.0 30.4 29.7 39.9 41.0 42.0 39.9 % Chg -2% +35% 40.0 38.0 36.0 34.2 34.0 31.5 31.3 32.0 29.7 30.2 29.3 29.0 30.0 28.0 24.9 26.0 24.0 22.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Current Price
Slide 29: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Fresh Egg price (THB/piece) Average Price 5.0 Y20 Y21 Y22 2.5 2.7 3.1 4.0 % Chg +5% +15% 3.4 3.0 3.1 3.0 2.7 2.6 2.6 2.7 2.5 2.4 2.3 2.0 1.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q21 Current Price Thailand’s White Shrimp price (THB/Kg) Average Price 400.0
Slide 30: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 20.0 Y20 Y21 Y22 15.0 13.0 10.8 11.4 9.0 10.0 11.4 9.3 9.4 9.5 10.5 8.6 8.9 9.1 % Chg +12% +13% 10.0 5.0 0.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 Current Price Thailand’s Soybean Meal price (THB/kg) Average P
Slide 31: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 40,000 27,083 28,514 27,285 30,000 23,376 24,912 22,884 23,892 25,352 17,972 Broiler 20,000 (VND/kg) 10,000 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 100,000 79,285 77,231 80,000 76,625 74,360 68,344 68,813 51,517 52,809 60,000 41,602 Swi
Slide 32: Turkey: Average Market Price and Major Feed Raw Materials
Turkey: Average Market Price and Major Feed Raw Materials 20.00 14.55 16.00 9.18 10.31 12.00 8.01 5.93 7.26 8.00 4.91 5.62 5.81 Broiler (TRY/kg) 4.00 0.00 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 6.00 5.00 4.30 4.00 3.16 2.18 2.47 3.00 1.76 1.89 Corn 2.00 1.29 1.40 1.47 (TRY/kg) 1.00 0.00 1Q20 2
Slide 33: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 106.1 100.0 91.0 84.1 87.0 85.9 100.0 74.5 77.0 50.9 50.0 Broiler (INR/kg) 0.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 500.0 352 367 400.0 327 312 303 290 285 282 277 300.0 Shrimp 200.0 (60 pieces) (INR/kg) 100.0 1Q20 2Q20 3Q20 4Q20
Slide 34: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 140.0 123.1 115.5 110.4 120.0 103.3 102.4 105.8 86.3 93.1 100.0 81.7 Swine 80.0 (RUB/kg) 60.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 160.0 140.0 118.4 127.0 120.4 120.0 111.5 115.9 91.2 97.4 100.0 87.5 88.6 Broiler 80.0 (RUB/kg) 60.0 1Q
Slide 35: Cambodia: Average Market Price and Major Feed Raw Materials
Cambodia: Average Market Price and Major Feed Raw Materials 20,000 16,000 13,187 14,032 13,901 11,785 12,580 11,987 12,541 11,514 12,000 9,643 Swine 8,000 (KHR/kg) 4,000 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1,500 1,468 1,305 1,345 1,400 1,261 1,300 1,218 1,200 1,093 1,135 1,056 1,059 Corn 1,
Slide 36: Philippines: Average Market Price and Major Feed Raw Materials
Philippines: Average Market Price and Major Feed Raw 200.0 Materials 161.7 170.0 175.0 180.0 153.0 156.0 160.0 144.7 119.3 127.3 140.0 Swine 120.0 100.0 100.0 (RUB/kg) 80.0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 140.0 120.0 114.5 95.2 95.0 90.0 100.0 70.3 72.0 82.9 79.1 80.0 64.5 Broiler 60.0
Slide 37: China: Average Market Price and Major Feed Raw Materials
China: Average Market Price and Major Feed Raw Materials 40 36.0 36.5 31.8 31.4 32.1 19.9 20 14.9 15.8 14.6 Swine (RMB/kg) 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4 2.9 3.0 3.0 2.9 2.9 2.4 2.6 2.1 2.2 2 Corn (RMB/kg) 0 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 6 3.9 3.7 3.8 3.8 4.1 4 3.3 3
Slide 38: Appendix C
Appendix C Group of Associate Companies & Joint Ventures
Slide 39: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures Ross Breeders Siam Co., Ltd. Associates Arbor Acres Thailand Co., Ltd. Type of Business Broiler Breeder business Broiler Breeder business CPF's Direct and Indirect Interest (%) 49.98 49.99 CP ALL Public Company Limited Convinience store business 33.83 Lo
Slide 40: Appendix D
Appendix D Product Samples & Retail Outlet Formats
Slide 41: Food Retail Products
Food Retail Products (ERG) tere a ZERO wes me we es warn Pa) Su te: ie fozsh Mort unGuitieoryo. 2 — ae4 P.40
Slide 42: Food Retail Products
Food Retail Products \ 210g | Mae Eh cari SURI i Thai Massaman = Curry Chicken Frebaanon ied j, va
Slide 43: Food Retail Products
Food Retail Products Pines ye | —_ mae : =i aa spl Kel Y Bellisio MME "5 I chicken (tien sy BOW L eee ( _ the beauliful (ouds carparny” SuperDrob acai? =——" chicken CSI LA3 min kiew AERATION SIT eee — TL >
Slide 44: Food Service : Five Stars Chain
Food Service : Five Stars Chain More Than 6,000 Outlets Vietnam India Cambodia Laos Philippines P.43
Slide 45: Food Service : Chester's
Food Service : Chester’s P.44
Slide 46: Disclaimer
Disclaimer “This presentation contains some information from other sources that CPF does not make any representations regarding the use, validity, accuracy, or reliability of, or the results of the use of information, data but not limited to, all text, and images (“the Content”) on this presentation
Slide 47: Kitchen of The World
Kitchen of The World
Charoen Pokphand Foods Public Company — Q1 2022 Earnings Presentation on 6ix