Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Q1 2020 Earnings Presentation
47 slides from Charoen Pokphand Foods Public's earnings presentation, May 14, 2020
Slide 1: 1Q/2020 Results Briefing
1Q/2020 Results Briefing Investor Presentation May 14, 2020
Slide 2: Contents
Contents Business Overview 02 1Q/2020 Financial Results 09 FY 2020 Outlook 16 Appendix A: 3Yr Historical Results B: Products & Raw Materials Price Trend C: - Group of CPP&CTEI’s Associate Companies & Joint Ventures - Investment & Financing Activities D: Product Sample & Retail Outlet Format P.1
Slide 3: Why Invest in CPF
Why Invest in CPF “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 shareholders” One of th
Slide 4: Company Facts
Company Facts Vision : “Kitchen of the World” • 4 listed investments onboard (HKSE:00043, HKSE:3839, TWSE: 1215, SET:CPALL) • 39 series of debentures listed on Thai Bond Market Association “TBMA” • 1 exchangeable Bond “EBs” on Highlights FY19 Sales :THB532 billion or ~USD17.1 billion 2019 Sales Brea
Slide 5: Vertically Integrated Business in Thailand
Vertically Integrated Business in Thailand CPF operates integrated agro-industrial and food business including swine, broiler, layer, duck, shrimp and fish. The integrated food process involves advanced production technology, qualified international standard chemical-free production, safe with hygie
Slide 6: CPF Geographical Footprints
CPF Geographical Footprints • Operations and investment in 17 countries catered to > 4 billion population • Export to more than 30 countries across 5 continents Russia Canada Livestock feed Swine integrated business Swine farming Chicken integrated business USA Ready to eat foods UK Chilled and Froz
Slide 7: Our Strategy
Our Strategy Strategy for Growth Execution Plan • Fully integrated business model • Create value -use innovation in order to add value to product, process, and • Globalization by establishing a proper business model. business model suitable for each strategic market • Digital Transformation – utiliz
Slide 8: Sustainability
Sustainability CPF commits to support 11 of 17 Sustainable Development Goals which align with our capacity and potential. CPF is a participant in the United Nations Global Compact P.7
Slide 9: CPF Operation Structure
CPF Operation Structure (as of Mar 31, 2020) 1Q20 : Sales: THB 138,135 m Net Profit: THB 6,111 m 32% of Sales 68% of Sales Associates & CPF Thailand 1 CPF International Joint Ventures 27% of Sales 44% of sales 24% of sales CPP- HKSE:43 UK (99.99%) Andhra Pradesh Broodstock (74.99%) Domestic Westbrid
Slide 10: 1Q/2020 Performance Summary
1Q/2020 Performance Summary 1Q/2020 VS 1Q/2019 Sales Revenue Breakdown Sales Revenue 10% Sales Revenue -2% Sales Revenue + 6% Gross Profit +43% Thai Swine Thai Price Swine Margin: Others 1Q/19 : 14% Thai +17% +1% +Vol +17% 1Q/20 : 18% 24% 32% Thai Corn Thai Soy Sales Revenue Price Bean Meal EBITDA +
Slide 11: 1Q20: Sales & Profit Margin by Business
1Q20: Sales & Profit Margin by Business In THB, m 1Q19 1Q20 +10% 138,135 125,286 +13% 83,979 +6% 74,518 +10% 36,117 38,397 +3% 8,891 9,808 5,760 5,951 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TOTAL GPM 10.7% 15.4% 7.8% 10.6% 16.1% 20.4% 15.4% 17.1% 14.1% 18.3% OPM ** 1.9% 5.3% -1.0%
Slide 12: 1Q20: Sales Structure by Business
1Q20: Sales Structure by Business Sales B r eakdown Livestock Aqualculture Total 1Q 19 1Q 20 % Ch an g e 1Q 19 1Q20 % Ch an g e 1Q 19 1Q20 % Ch an g e Thailand 36,117 38,397 6% 5,760 5,951 3% 41,877 44,348 6% Domestic 30,180 32,491 8% 4,716 5,025 7% 34,896 37,516 8% Export 5,937 5,906 -1% 1,044 926
Slide 13: 1Q20: Sales Structure by Products
1Q20: Sales Structure by Products Sales B r eakdown b y Pr oducts Feed Far m Food Total 1Q19 1Q 20 % Chan g e 1Q 19 1Q 20 %Ch an g e 1Q19 1Q20 % Ch an g e 1Q19 1Q 20 %Ch an ge Thailand 9,148 9,434 3% 21,30 1 24,0 0 3 13% 11,428 10 ,911 -5 % 41,877 44,348 6% Domestic 9,132 9,429 3% 19,811 22,261 12%
Slide 14: 1Q20: Consolidated Income Statement Highlight
1Q20: Consolidated Income Statement Highlight Q uar ter 1 Full Year 20 19 20 20 %Chg. 20 18 20 19 %Chg. Net s ales 125 ,286 138,135 10 % 5 41,937 5 32,5 73 -2% Gros s Profit Margin 14.1% 18.3% 12.1% 14.3% EB ITDA 11,5 85 19,224 66% 39,5 5 9 47,5 5 1 20 % EB ITDA Margin 9.2% 13.9% 7.3% 8.9% EB IT 5 ,
Slide 15: Financial Status
Financial Status (As of Mar31,2020) Interest Bearing Debt: THB 386,744 m Net Debt to Equity & Net Debt to EBITDA (THB, m) Net D/E 331,107* 386,744 288,710* 328,452* 1.4x 1.4x 1.3x 1Q20 1.2x 2017 2018 2019 2017 2018 2019 1Q20 Cash and Cash Equivalent Net D/EBITDA (THB, m) 79,847 22,972 31,478 32,094
Slide 16: CPF's Investment in Listed Companies
CPF’s Investment in Listed Companies Stock Pr ice Mar ket Cap. CPF Holding % Holding Value (Local Cur r .) (THB mm) (THB mm) (As of Mar 31, 20 20 ) CPALL THB 61.0 0 5 47,969 33.97% 186,145 (SET:CPALL) CPP HKD 0 .61 61,966 5 2.24% 32,371 (HKSE:0 0 43) TRUE THB 3.14 10 4,776 2.21% 2,316 (SET:TRUE) CPE
Slide 17: Y2020 Outlook
Y2020 Outlook Growth Target Expected sales growth of approximately 8-12% excluding FX translation impact Key Drivers & Focus Higher average domestic meat prices of swine Swine shortage due to African swine fever (ASF), rising momentum of swine prices especially in Vietnam Improving overseas aquacult
Slide 18: Appendix A
Appendix A Highlights : 3Yr Historical Results
Slide 19: Gross Profit Margin & Operating Profit Margin
Gross Profit Margin & Operating Profit Margin GPM GPM Thai-Livestock OPM ** Thai-Aqua OPM ** 20.0% 25.0% 15.4% 14.1% 15.0% 12.6% 20.0% 10.7% 11.0% 10.0% 7.7% 6.8% 15.0% 5.1% 5.9% 5.3% 10.7% 10.8% 10.6% 4.0% 10.0% 5.0% 1.9% 1.7% 10.0% 7.8% 6.6% 6.6% -0.7% -1.7% -0.1% 4.4% 4.3% 5.0% 3.9% 3.5% 3.4% 0.0
Slide 20: Thailand Operations – Export Destination
Thailand Operations – Export Destination Y2017 Y2018 Y2019 Asia Asia Asia 64% 68% 69% EU EU EU Others USA 27% 22% 20% Others USA Others USA 3% 6% 4% 6% 4% 7% Asia EU USA Others Asia EU USA Others Asia EU USA Others Farm Farm Farm THB 8,531 million +15% THB 7,473 million -12% THB 8,038 million +8% As
Slide 21: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year 2017 2018 % Change 2019 % Change Net sales 501,507 541,937 8% 532,573 -2% Gross Profit Margin (%) 12.0% 12.1% 14.3% EBITDA 32,420 39,559 22% 47,551 20% EBIT 11,172 17,151 54% 24,515 43% Share in Profit of Associates 7,983 8,343 5% 8,893 7% Financial
Slide 22: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m CPP EBITDA Margin% CPF 50,000 47,551 20.0% 45,000 18.0% 30,475 27,135 25,240 6,034 39,559 40,000 16.0% 13.9% 35,000 32,420 14.0% 9,438 30,000 12.0% 6,527 25,000 8.9% 10,503 10.0% 7.3% 19,224 20,000 6.5% 8.0% 15,000 6.0% 21,037 20,608 10,000 14,73
Slide 23: Consolidated Net Profit, ROA and ROE
Consolidated Net Profit, ROA and ROE Net Profit ROA & ROE Unit: THB, m ROA Gain on fair value adjustment on investment in associates Divestment and Dividend Equity (Share in Profit of Associates) EBIT 3.5% 3.8% 4.0% 3.0% CAGR +10% 2017 2018 2019 1Q20* 8,214 ROA = Net Income (include Non-Controlling
Slide 24: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m 1Q 2Q 3Q 5,894 6,062 6,111 4Q 4,914 4,912 4,064 4,279 4,105 3,955 4,010 3,048 2,326 1,677 2017 2018 2019 2020 Full Year: 15,259 15,531 18,456 6,111 Net Profit P.23
Slide 25: 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 +7% Policy consolidated annual net profit 2.18 1.91 1.82 0.75 0.70 0.65 0.73 2017 2018 2019 1Q20 2017 2018 2019 P.24
Slide 26: Appendix B
Appendix B Products & Raw Materials Price Trend
Slide 27: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Broiler price (THB/kg) Average Price 46.0 Y18 Y19 Y20 Y2018 Y2019 Y2020 30.2 33.2 31.5 41.0 % Chg +10% -5% 36.0 34.4 32.5 33.2 32.7 32.3 31.5 31.0 31.0 29.8 29.6 29.0 26.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Current Price Thailand’s Pork price (THB/
Slide 28: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Fresh Egg price (THB/piece) Average Price 4.0 Y18 Y19 Y20 Y2018 Y2019 Y2020 2.3 2.6 2.5 2.9 % Chg +11% -4% 3.0 2.6 2.7 2.6 2.5 2.6 2.5 2.2 2.1 2.2 2.0 1.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Current Price Thailand’s White Shrimp price (THB/Kg) Avera
Slide 29: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 15.0 Y18 Y19 Y20 9.8 10.6 9.8 9.1 9.7 9.0 9.2 9.0 8.8 9.8 9.2 8.6 10.0 8.6 % Chg -7% -7% 5.0 Y2018 Y2019 Y2020 0.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Current Price Thailand’s Soybean Meal price (THB/kg) Ave
Slide 30: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 40,000 32,243 30,254 30,376 28,487 27,632 30,000 26,299 25,671 22,872 23,376 Broiler (VND/kg) 20,000 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 80,000 76,625 65,391 60,000 50,693 49,241 46,503 42,407 35,726 38,422 40,000 30,895 Swine (VND/
Slide 31: Turkey: Average Market Price and Major Feed Raw Materials
Turkey: Average Market Price and Major Feed Raw Materials 6.00 4.77 4.67 4.67 4.72 4.91 4.20 4.59 3.36 3.67 4.00 Broiler 2.00 (TRY/kg) 0.00 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 1.50 1.23 1.22 1.19 1.29 1.06 1.08 1.13 0.86 0.94 1.00 Corn 0.50 (TRY/kg) 0.00 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4
Slide 32: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 81.4 91.6 100.0 68.1 75.8 69.8 64.2 72.5 61.7 50.9 50.0 Broiler (INR/kg) 0.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 500.0 400.0 303 302 305 275 287 257 283 290 300.0 224 Shrimp 200.0 (60 pieces) (INR/kg) 100.0 1Q18 2Q18 3Q18 4Q18 1
Slide 33: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 120.0 110.0 99.1 101.1 96.5 90.1 94.5 100.0 81.8 81.2 81.4 Swine 80.0 (RUB/kg) 60.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 120.0 110.4 98.8 101.9 95.7 91.1 95.4 100.0 83.2 87.5 73.6 Broiler 80.0 (RUB/kg) 60.0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q
Slide 34: Appendix C
Appendix C - Group of CPP&CTEI’s Associate Companies & Joint Ventures - Investment & Financing Activities
Slide 35: Group of CPP & CTEI's Associate & Joint Ventures
Group of CPP & CTEI’s Associate & Joint Ventures As of December 31, 2019 No. Associates Type of Business Direct and Indirect Interest (%) 1 Chia Tai Conti(Cixi) Investment Management Ltd. Provision of Consulting service on economic and trade 26.12 2 Conti Chia Tai International Ltd. Production and s
Slide 36: 2020 Investment and Financing Activities
2020 Investment and Financing Activities Five Star Trademark 100% THB 349 m Announcement Announcement Sheng Da Foods Co.,Ltd. Sales of Agri Products & Charoen Pokphand Holdings (Malaysia) Tesco Asia Group International trade Fully integrated poultry business Retail business February January 100.00%
Slide 37: Appendix D
Appendix D Product Samples & Retail Outlet Formats
Slide 38: Food Retail Products
1awaan HOTDOG CHEESE: 7 A CLASSIC | saasiau
Slide 39: Food Retail Products
Food Retail Products RAMS —ZBY RE Fe> PEPPER KICKS MALS | “a | SREB | ‘THAL BASIL SAUCE) Wt ues ext CHICKEN THA BASIL SSS Ahem Asia Authentic, Asia , Thai Massaman Nie A Curry Chicken yw Chicken # NN with Jasmine lice WL =a 2 Fer GT wong (41
Slide 40: Food Retail Products
CHICKEN | B ell is i bs the beautiful foods company” 32g proreN © superdrob SUIDrising occ SUDETFillet chicken mini kievs CEI TORTIE 3 P.39
Slide 41: Food Service : Five Stars Chain
Food Service : Five Stars Chain More Than 5,000 Outlets Vietnam India Cambodia Laos Philippines P.40
Slide 42: Food Service : Chester's Outlets
Food Service : Chester’s 188 Outlets P.41
Slide 43: Food Retail Outlets
Food Retail Outlets 322 Stores 21 Stores P.42
Slide 44: CP CHOZEN LIMITED Kiosks
CP CHOZEN LIMITED 23 Kiosks P.43
Slide 45: Dak Galbi & WOK Station
Dak Galbi & WOK Station 8 Branches 5 Branches 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 2020 Earnings Presentation on 6ix