Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — Q1 2018 Earnings Presentation
37 slides from Gfpt Public's earnings presentation, May 10, 2018
Slide 1: Analyst Meeting No. 2/2018
Analyst Meeting No. 1/2017 | 23 February 2017 | page 1
Slide 2: Disclaimer and forward-looking statements
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 2018 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation contains fo
Slide 3: Agenda
1Q2018 Financial Results Broiler Industry Outlook 2018 Guidance Q&A Appendix: Key Statistics GFPT Profile Analyst Meeting No. 2/2018 | 10 May 2018 | page 3
Slide 4: GFPT Public Company Limited profile
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, parent breeder farm,
Slide 5: GFPT strives to be a leading chicken meat exporter
“GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production” Enhance product quality to Attention to the needs of the international standards customers Confidence through the Build strong relationship traceability system among partners for long term New
Slide 6: Shareholding Structure as of 14 Mar 2018
Shareholding Structure as of 14 Mar 2018 Industry / Sector Agro & Food Industry / Agribusiness Excellent 2017 CG Score [90 – 100 CG Report Score] Anti - Corruption Certified to be a member of Collective Action Coalition: CAC Closed Price THB 12.30 per share (30/04/2018) Average Price THB 13.53 per s
Slide 7: Company history and milestones
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 2012 99.99% in FKT (Breeder farm) 99.99% in GFF 49% in McKey 99.99% of GP New feed mill (KT2) in Chol
Slide 8: Group structure: subsidiaries and joint ventures
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 | 98.10% FKT | 99.99% GFF | 99.99% Krungthai Food PCL. Krungthai Farm Co., Ltd. GF Foods Co.,
Slide 9: Vertically integrated production chain
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: Products: feed, chicken meat, cooked and processed 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] Day-old-Chick …………………... Live Broiler Processed Food [Sausage, Smoke Sausage, Chicken Meatballs] Analy
Slide 11: Revenue by Segment, Destination and Currency
2015 Revenue by Segment 17,829 16,692 16,467 16,693 16,928 15,370 14,214 Farm 12,472 30% 10,996 11,507 Food 8,122 50% Feed 20% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenue by Destination Revenue by Currency Revenue by Product DOC, 4% Chicken EUR Live Export, 1% Chicken, 25% 26% USD
Slide 12: 2nd in Thai Chicken Export, 6th in Production
2nd in Thai Chicken Export 6th in Thai Chicken Production GFPT Group GFPT Group 6% 13% Export by Destination Export by Product Type EU 29% Others 11% Cooked Raw 82% 18% JP 60% Source: Thai Broiler Processing Exporters Association Analyst Meeting No. 2/2018 | 10 May 2018 | page 12 Note: 2017 Thai Bro
Slide 13: Analyst Meeting No. 2/2018
Analyst Meeting No. 1/2017 | 23 February 2017 | page 13
Slide 14: 1Q2018 Revenue Breakdown by Segment
1Q2018 Consolidated Revenue = THB 3.96 billion 1Q2018 Revenue Breakdown by Segment Business Segment of 1Q2018 1Q2017 Changes GFPT and its subsidiaries THB million % THB million % THB million % Chicken Processing 1,627.29 41.11 1,846.04 44.81 (218.75) (11.85) Feed 706.21 17.84 857.71 20.82 (151.50) (
Slide 15: 1Q2018 income statement
(Unit in THB million) 1Q2017 %Sales 1Q2018 %Sales Change % Change Revenue from sales 4,119.33 100.00% 3,958.50 100.00% (160.83) (3.90%) Cost of sales (3,489.95) (84.72%) (3,439.11) (86.88%) (50.84) (1.46%) GROSS PROFIT 629.38 15.28% 519.39 13.12% (109.99) (17.48%) 1Q17 1Q18 Other income 89.05 2.16%
Slide 16: Gross profit, EBITDA and net profit margins
Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 3,000 21% 3,500 20.9% 24% 16.3% 18.1% 20.4% 16.4% 16.2% 18% 3,000 18.6% 19.4% 18.6% 17.5% 21% 2,500 14.0% 15.0% 15.3% 16.3% 13.4% 13.1% 15% 15.6% 18% 12.2% 2,500 14.5% 2,000 13.2% 15% 12% 2,000 1,500 12% 6.5% 9% 1,500 7.1% 9% 1,000 6% 1,000 6%
Slide 17: EPS, ROA, dividend and payout ratio
EPS (THB per share) Return on Asset (%) 2,000 1.21 1.42 1.31 1.39 153% 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 10.5% 12% 120% 117% 1,400 0.95 114% 111% 108% 14,000 105% 102% 8.3% 99% 96% 1,200 93% 90% 12,000 9% 87% 84% 1,000 81% 78% 10
Slide 18: Selected balance sheet items: assets
Selected Items (Unit in THB million) Y2017 Mar 18 Change % Change Cash and Cash Equivalents 736.26 718.58 (17.68) (2.40%) Trade and Other Receivables 1,013.27 930.33 (82.94) (8.18%) Inventories 3,608.19 3,739.66 131.47 3.64% Other Current Assets 14.10 25.03 10.93 77.56% TOTAL CURRENT ASSETS 5,371.82
Slide 19: Selected balance sheet items: liabilities and equity
Selected Items (Unit in THB million) Y2017 Mar 18 Change % Change Short - Term Loans from Financial 1,650.00 1,210.00 (440.00) (26.67%) Institutions Short - Term Loans from Related Persons 160.00 160.00 - - Trade and Other Payables 925.34 1,153.27 227.93 24.63% Current Portion of Long-Term Loans 66.
Slide 20: Selected income and cash flow items
Selected Items (Unit in THB million) 1Q2017 1Q2018 Change % Change EBIT 464.34 213.40 (250.94) (54.04%) Depreciation - Grandparent & Parent Chickens 145.67 134.77 (10.90) (7.48%) Depreciation & Amortization 155.94 175.10 19.16 12.29% EBITDA 765.95 523.27 (242.68) (31.68%) Net Cash from Operating Act
Slide 21: Book value and liabilities
Book Value (THB per share) 20,000 14,000 9.63 9.75 1026% 1023% 1020% 1017% 1014% 1011% 1008% 8.60 1005% 1002% 999% 996% 993% 990% 987% 984% 981% 978% 975% 972% 969% 18,000 966% 963% 960% 957% 954% 951% 948% 945% 942% 939% 936% 933% 930% 927% 924% 921% 918% 915% 912% 909% 906% 903% 900% 897% 894% 891
Slide 22: Total liabilities and net debt to EBITDA
1Q2018 Total Liabilities = THB 5.19 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% 765% 762% 759% 756% 753% 750% 74
Slide 23: Investment, 2018 capex and broiler expansion plan
Investment (million THB) Y2018 Capital Expenditure - - 3 - - 1,145 886 924 912 946 Broiler Farm 575 594 Breeder Farm 456 545 536 Primary Plant 2013 2014 2015 2016 2017 Breeder Stocks Fixed Assets Associates & JV Broiler Expansion Plan Broiler Raising Capacity 2016 2017 2018 2019 2020 262,000 3
Slide 24: Recent and future projects
Recent Project McKey Further Processing Plant Cooked product for export capacity at 30,000 MT per year by end of 2017 GFN Slaughter House Slaughter house reach 150,000 birds per day by 2017 Future Project GFPT Broiler Farm Raising capacity to reach 384,000 birds per day by 2020 GFPT Slaughter House
Slide 25: GFPT Slaughter House progress update
GFPT Slaughter House New slaughter house capacity at 150,000 bird per day by 2020 Progress Update May 2018 Analyst Meeting No. 2/2018 | 10 May 2018 | page 25
Slide 26: McKey Further Processing Plant progress update
McKey Further Processing Plant Progress Update February 2018 Analyst Meeting No. 2/2018 | 10 May 2018 | page 26
Slide 27: Analyst Meeting No. 2/2018 | 10 May 2018 | page
Analyst Meeting No. 2/2018 | 10 May 2018 | page 27
Slide 28: Global chicken producers and exporters
Others The 10th Global Chicken Producer 12% 2017 broiler production = 1,900,000 tons EU The 4th Global Chicken Exporter 35% Japan 53% 2017 broiler meat export = 757,000 tons Cooked 68% Raw 32% USA Brazil EU China Argentina Turkey Thailand 16% 29% 11% 4% 9% 19% 40% Production Export Source: U
Slide 29: Thai chicken export volume and 2018 forecast
900,000 Change 2018F: 2017 2018 Forecast Raw Cooked Total 17 / 18 820,000 MT 800,000 MT Mil. Baht MT Mil. Baht (%) 2017: 801,371 MT Product - Raw 252,666 24,084 260,000 24,440 2.90 700,000 - Further (Cooked) 548,705 78,489 560,000 81,200 2.06 2012: 552,362 MT Total 801,371 102,573 820,000 105,640 2.
Slide 30: Global production, import, export and consumption
Global Production [Y2017= 90,718,000 tons] Global Import [Y2017 = 8,968,000 tons] USA 18,696 Japan 1,056 Brazil 13,150 Mexico 804 EU 11,840 Saudi Arabia 780 China 11,600 EU 700 India 4,400 Iraq 656 Russia 4,000 S.Africa 524 Mexico 3,400 China 450 Argentina 2,086 UAE 310 Turkey 2,137 Hong Kong 291 Th
Slide 31: Broiler, corn, soybean meal, day-old-chick and export prices
Corn & Soy Bean Meal (THB/Kg.) Broiler at Farm Gate (THB/Kg.) 25.0 65.0 20.0 55.0 20.0 17.6 43.3 16.7 42.0 42.3 15.1 15.1 15.7 15.2 45.0 38.3 37.3 37.3 38.7 39.1 14.6 14.0 35.5 35.9 35.7 34.6 15.0 SBM 13.4 13.2 13.3 35.0 41.0 41.8 35.5 35.2 35.1 36.6 36.1 34.1 10.0 25.0 31.9 31.9 28.2 29.3 10.5 Corn
Slide 32: 2018 Guidance
2018 Guidance Revenue 2% - 3% growth from 2017 Sales Gross Profit Margin 14% - 15% SG&A 7.8% - 8.0% Financial Cost ≈ 2.5% Effective Tax Rate 15% - 18% CAPEX THB 1 - 1.2 billion Analyst Meeting No. 2/2018 | 10 May 2018 | page 32
Slide 33: Risk Factor
Risk Factor • Feed Cost Increase • Oversupply • THB Appreciation • Minimum Wage Increase Analyst Meeting No. 2/2018 | 10 May 2018 | page 33
Slide 34: Key Statistics
Key Statistics Analyst Meeting No. 2/2018 | 10 May 2018 | page 34
Slide 35: Sales volumes: chicken meat and feed
Chicken Meat Direct Export (MT) Chicken Meat Indirect Export (MT) Chicken Meat Domestic (MT) + 8% + 4% 30,600 28,300 + 4% 66,500 26,200 63,100 65,400 62,700 65,200 17,400 16,500 59,600 16,500 15,900 22,500 22,100 14,900 18,700 13,500 - 4% - 10% + 2% 7,500 7,200 16,000 16,300 4,100 3,700 2012 2013 20
Slide 36: Analyst Meeting No. 2/2018 | 10 May 2018 | page
Analyst Meeting No. 2/2018 | 10 May 2018 | page 36
Slide 37: Investor Relations Department
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 www.gfpt.co.th Analyst Meeting No. 2/2018 | 10 May 2018 | page 37