Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — FY2017 Earnings Presentation
37 slides from Gfpt Public's earnings presentation, Mar 6, 2018
Slide 1: Analyst Meeting No. 1/2017
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 December 2017 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentation contains
Slide 3: Agenda
GFPT Profile 2017 Financial Results Broiler Industry Outlook 2018 Guidance Q&A Appendix: Key Statistics Analyst Meeting No. 1/2018 | 6 March 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: Vision: leading chicken meat exporter with vertical integration
“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
Shareholding Structure as of 10/03/2017 Industry / Sector Agro & Food Industry / Agribusiness Excellent 2016 CG Score [90 – 100 CG Report Score] Anti - Corruption Certified to be a member of Collective Action Coalition: CAC Closed Price THB 12.90 per share (2/3/2018) Average Price THB 16.38 per shar
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: GFPT 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 | 98.10% FKT | 99.99% GFF | 99.99% Krungthai Food PCL. Krungthai Farm Co., Ltd. GF Foods Co.,
Slide 9: Vertically integrated chicken 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: Product range
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: Position in Thai chicken export and 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. 1/2018 | 6 March 2018 | page 12 Note: 2017 Thai Br
Slide 13: 2017 Financial Results
Analyst Meeting No. 1/2017 | 23 February 2017 | page 13
Slide 14: Y2017 Revenue Breakdown by Segment
Y2017 Consolidated Revenue = THB 16.93 billion Y2017 Revenue Breakdown by Segment Business Segment of 2017 2016 Changes GFPT and its subsidiaries THB million % THB million % THB million % Chicken Processing 7,554.13 44.62 7,209.37 43.19 344.76 4.78% Feed 3,379.98 19.97 3,907.83 23.41 (527.85) (13.51
Slide 15: Income statement Y2016 vs Y2017
% (Unit in THB million) Y2016 %Sales Y2017 %Sales Change Change Revenue from sales 16,693.02 100.00% 16,928.47 100.00% 235.45 1.41% Cost of sales (14,191.28) (85.01%) (14,150.92) (83.59%) (40.36) (0.28%) GROSS PROFIT 2,501.74 14.99% 2,777.55 16.41% 275.81 11.02% Y16 Y17 Other income 329.90 1.98% 318
Slide 16: Gross profit, EBITDA and net profit margins
Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 3,000 18.1% 21% 3,500 20.9% 20.4% 24% 19.7% 18.6% 16.4% 16.9% 15.3% 16.3% 16.2% 18% 3,000 18.6% 19.4% 17.5% 21% 2,500 15.0% 13.4% 14.0% 15.6% 16.3% 18% 12.2% 15% 2,500 14.5% 2,000 15% 12% 2,000 1,500 12% 9% 1,500 9% 1,000 6% 1,000 6% 500 3% 500
Slide 17: EPS, ROA and dividend payout
EPS (THB per share) Return on Asset (%) 2,000 1.21 1.42 1.31 1.39 150% 20,000 13.3% 15% 147% 144% 141% 138% 1,800 135% 132% 129% 18,000 11.6% 10.6% 126% 123% 10.4% 1,600 120% 117% 16,000 12% 0.95 114% 111% 1,400 108% 105% 14,000 102% 99% 8.3% 96% 93% 1,200 90% 87% 12,000 9% 84% 81% 1,000 78% 75% 10,
Slide 18: Selected assets items
Selected Items (Unit in THB million) Y2016 Y2017 Change % Change Cash and Cash Equivalents 310.87 736.26 425.39 136.84% Trade and Other Receivables 932.66 1,013.27 80.61 8.64% Inventories 3,653.33 3,608.19 (45.14) (1.24%) Other Current Assets 18.15 14.10 (4.05) (22.31%) TOTAL CURRENT ASSETS 4,915.01
Slide 19: Liabilities and shareholders' equity
Selected Items (Unit in THB million) Y2016 Y2017 Change % Change Short - Term Loans from Financial 1,931.37 1,650.00 (281.37) (14.57%) Institutions Short - Term Loans from Related Persons - 160.00 160.00 100.00% Trade and Other Payables 886.47 925.34 38.87 4.38% Current Portion of Long-Term Loans 20
Slide 20: EBITDA and cash flow items
Selected Items (Unit in THB million) Y2016 Y2017 Change % Change EBIT 1,960.19 2,051.61 91.42 4.66% Depreciation - Grandparent & Parent Chickens 538.45 569.91 31.46 5.84% Depreciation & Amortization 598.38 654.85 56.47 9.44% EBITDA 3,097.02 3,276.37 179.35 5.79% Net Cash from Operating Activities 2,
Slide 21: Book value per share and equity
Book Value (THB per share) 20,000 14,000 9.70 1020% 1017% 1014% 1011% 1008% 1005% 1002% 8.60 999% 996% 993% 990% 987% 984% 981% 978% 975% 972% 969% 966% 963% 18,000 960% 957% 954% 951% 948% 945% 942% 939% 936% 933% 930% 927% 924% 921% 918% 915% 912% 909% 906% 903% 900% 897% 894% 891% 888% 885% 12,00
Slide 22: Liabilities, net debt and leverage
Y2017 Total Liabilities = THB 5.20 billion Net Debt to EBITDA (million THB) 4,300 1.88 1.74 198% 195% 192% 189% 186% 4,200 183% 180% 177% 174% 171% 4,100 1.44 168% 165% 162% 159% 156% 153% 150% Short-Term Loan 1,810 4,000 1.23 1.09 147% 144% 141% 138% 135% 132% 129% 3,900 126% 123% 120% 117% 114% 11
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 Broiler Farm Raising capacity to reach 384,000 bird per day by 2020 GFPT Slaughter House New slaughter house capacity at 150,000 bird per day by 2020 Progress Update February 2018 Analyst Meeting No. 1/2018 | 6 March 2018 | page 25
Slide 26: McKey further processing plant progress update
McKey Further Processing Plant Cook product for export capacity at 30,000 MT per year by end of 2017 Progress Update February 2018 Analyst Meeting No. 1/2018 | 6 March 2018 | page 26
Slide 27: Broiler Industry Outlook
Analyst Meeting No. 1/2018 | 6 March 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 = 770,000 tons Cooked 68% Raw 32% USA Brazil EU China Argentina Turkey Thailand 17% 30% 11% 3% 8% 15% 41% Production Export Source: U
Slide 29: Thai chicken export volumes and 2018 forecast
900,000 Change 2018F: 2017 2018 Forecast Raw Cooked Total 17 / 18 810,000 MT 800,000 MT Mil. Baht MT Mil. Baht (%) 2017: 801,371 MT Product - Raw 252,666 24,084 255,000 23,970 0.92 700,000 - Further (Cooked) 548,705 78,489 555,000 80,475 1.15 2012: 552,362 MT Total 801,371 102,573 810,000 104,445 1.
Slide 30: Global production, import, export and consumption
Global Production [Y2017= 90,175,000 tons] Global Import [Y2017 = 9,050,000 tons] USA 18,596 Japan 995 Brazil 13,250 Saudi Arabia 780 EU 11,700 Mexico 750 China 11,600 EU 720 India 4,400 Iraq 610 Russia 3,870 S.Africa 500 Mexico 3,400 China 450 Argentina 2,086 Hong Kong 390 Turkey 1,950 UAE 340 Thai
Slide 31: Feed, broiler and chicken 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 42.3 16.7 15.1 15.6 15.7 15.2 45.0 38.3 37.3 37.3 38.7 39.1 36.8 14.6 14.0 35.2 35.5 35.9 15.0 SBM 13.4 13.3 35.0 41.0 41.8 35.2 35.1 36.6 36.1 25.0 34.1 31.9 31.9 10.0 30.2 28.6 Corn 9.3 9.1 9.5 9.6 15.
Slide 32: 2018 Guidance
2018 Guidance Revenue +5% from 2017 Sales Gross Profit Margin 14% - 15% SG&A 7.8% Financial Cost < 2.5% Effective Tax Rate 11% CAPEX THB 1 - 1.2 billion Analyst Meeting No. 1/2018 | 6 March 2018 | page 32
Slide 33: Risk Factors
Risk Factor • Feed Cost Increase • Oversupply • THB Appreciation • Minimum Wage Increase Analyst Meeting No. 1/2018 | 6 March 2018 | page 33
Slide 34: Key Statistics
Key Statistics Analyst Meeting No. 1/2018 | 6 March 2018 | page 34
Slide 35: Chicken meat and feed sales volumes
Chicken Meat Direct Export (MT) Chicken Meat Indirect Export (MT) Chicken Meat Domestic (MT) +8% 30,600 +4% 28,300 +4% 26,200 17,400 63,100 65,400 62,700 65,200 59,600 22,500 22,100 15,900 16,500 14,900 13,500 - 19% + 24% + 4% 9,300 7,500 4,600 15,600 16,300 3,700 2013 2014 2015 2016 2017 4Q16 4Q17
Slide 36: Analyst Meeting No. 1/2018
Analyst Meeting No. 1/2018 | 6 March 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. 1/2018 | 6 March 2018 | page 37