Charoen Pokphand Foods Public Co. Ltd. · SET:CPF
Charoen Pokphand Foods Public — Q1 2021 Earnings Presentation
48 slides from Charoen Pokphand Foods Public's earnings presentation, May 14, 2021
Slide 1: 1Q/2021 Results Briefing
1Q/2021 Results Briefing Investor Presentation May 14, 2021
Slide 2: Contents
Contents Business Overview 02 1Q/2021 Financial Results 09 FY 2021 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 CPF commits to support 13 of 17 Sustainable Development Goals which align with our capacity and potential. CPF is a participant in the United Nations Global Compact P.3
Slide 5: Company Highlights
Company Highlights Market Cap THB 245 billion Sales in FY2020 THB 590 billion (or ~USD7.9 billion) as of May 13, 2021 (or ~USD18.9 billion) Sales Breakdown • 8,611 million shares (paid-up) with par THB 1.00 per share Livestock, TH-Export, 5% • Book Value THB 23.65* per share 88% Feed, 37% Farm, 47%
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 Chilled an
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, 2021) 1Q/2021 : Sales: THB 119,346 m Net Profit: THB 6,945 m 38% of Sales 62% of Sales Associates & CPF Thailand 1 CPF International Joint Ventures (2) 32% of Sales 29% of sales 33% of sales CPP- HKSE:43 UK (99.99%) CP Meiji (59.99%) Domestic Westbridge (99.99%
Slide 10: 1Q/2021 Performance Summary
1Q/2021 Performance Summary As Reported Exclude CTI Unit: THB, m 1Q/2020 1Q/2021 %Chg. 1Q/2020 %Chg. Net sales 138,135 119,346 -14% 108,999 9% Gross Profit Margin 18.3% 20.0% 19.3% EBITDA 19,224 19,486 1% 17,297 13% EBITDA Margin 13.9% 16.3% 15.9% NET PROFIT 6,111 6,945 14% 5,620 24% Net Profit Marg
Slide 11: 1Q/2021: Sales & Profit Margin by Business
1Q/2021: Sales & Profit Margin by Business In THB, m 1Q/2020 1Q/2021 -14% Exclude CTI +9% -23% 138,135 Exclude CTI +16% CTI 119,346 29,136 83,979 +3% CTI 64,767 -8% 28,125 Exclude CTI +3% 38,397 39,385 +3% 9,808 9,038 5,951 6,156 CTI 1,011 Thai-Livestock Thai-Aqua Overseas-Livestock Overseas-Aqua TO
Slide 12: 1Q/2021: Sales Structure by Business
1Q/2021: Sales Structure by Business Sales Breakdown Livestock Aquaculture Total 1Q20 1Q21 %Change 1Q20 1Q21 %Change 1Q20 1Q21 %Change Thailand 38,397 39,385 3% 5,951 6,156 3% 44,348 45,541 3% Domestic 32,491 33,483 3% 5,025 5,146 2% 37,516 38,629 3% Export 5,906 5,902 0% 926 1,010 9% 6,832 6,912 1%
Slide 13: 1Q/2021: Sales Structure by Products
1Q/2021: Sales Structure by Products Sales B r eakdown by Pr oducts Feed Far m Food Total 1Q20 1Q21 %Ch an g e 1Q20 1Q21 %Ch an g e 1Q20 1Q21 %Ch an g e 1Q20 1Q21 %Ch an g e Thailand 9,434 10 ,0 36 6% 24,0 0 3 24,695 3% 10 ,911 10 ,810 -1% 44,348 45 ,5 41 3% Domestic 9,429 10,024 6% 22,261 22,663 2%
Slide 14: 1Q/2021: Consolidated Income Statement Highlight
1Q/2021: Consolidated Income Statement Highlight As Reported Exclude CTI Unit: THB, m 1Q/2020 1Q/2021 %Chg. 1Q/2020 %Chg. Net sales 138,135 119,346 -14% 108,999 9% Gross Profit Margin 18.3% 20.0% 19.3% EBIT 12,355 12,708 3% 10,950 16% EBIT Margin 8.9% 10.7% 10.0% EBITDA 19,224 19,486 1% 17,297 13% E
Slide 15: Financial Status
Financial Status (As of Mar 31,2021) Interest Bearing Debt: THB 378,182 m * Net Debt to Equity & Net Debt to EBITDA (THB, m) 384,246 Net D/E 378,182 328,452 331,107 1.36x 1.38x 1.25x 1.19x 2018 2019 2020 1Q21 2018 2019 2020 1Q21 Cash and Cash Equivalent Net D/EBITDA (THB, m) 57,035 47,961 31,478 32,
Slide 16: FY2021 Investment and Financing Activities
FY2021 Investment and Financing Activities Financing Activity Investment Suansomboon Co., Ltd. Thai Baht Debenture Agricultural plant farming THB 30,000 m by CPF 99.99% Tenor 2,5,7,10,12 yrs. (@ 3.2%) THB 274 m Announcement C.P.Aqualculture (India) Private Limited Shrimp feed, hatchery and processin
Slide 17: 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 ch 31, 20 21) CPALL THB 64.5 0 5 79,410 34.11% 197,637 (SET:CPALL) CPP HKD 1.0 0 96,769 5 2.24% 5 0 ,5 5 2 (HKSE:0 0 43) TRUE THB 3.40 113,45 2 2.21% 2,5 0 7 (SET:T
Slide 18: FY2021 Outlook
FY2021 Outlook Growth Target Expected better performance from efficiency improvement and volume growth. Key Drivers & Focus Efficiency improvement to reduce cost of production Swine capacity expansion in multiple locations. Increase portion of value added product. Broiler demand to improve p
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% 17.1% 20.0% 15.4% 16.0% 16.3% 14.1% 13.4% 15.0% 12.6% 15.0% 13.1% 13.0% 10.7% 11.0% 10.8% 10.6% 9.9% 9.4% 10.0% 7.7% 10.0% 7.8% 6.6% 6.6% 5.8% 6.4% 5.3% 5.2% 5.0% 4.0% 4.3% 3.4% 3.9%
Slide 21: Thailand Operations – Export Destination
Thailand Operations – Export Destination FY2019 FY2020 1Q/2021 Asia Asia Asia 69% 81% 78% EU 20% Others USA EU Others USA Others USA EU 4% 7% 4% 6% 9% 2% 7% 13% Asia EU USA Others Asia EU USA Others Asia EU USA Others Farm Farm Farm THB 8,038 million +8% THB 8,506 million +6% THB 2,032 million +17%
Slide 22: Consolidated Income Statement Highlight
Consolidated Income Statement Highlight Full Year FY2018 FY2019 % Change FY2020 % Change Net sales 541,937 532,573 -2% 589,713 11% Gross Profit Margin (%) 12.1% 14.3% 18.2% EBIT 17,151 24,511 43% 53,364 118% EBITDA 39,559 47,547 20% 81,692 72% Share in Profit of Associates 8,343 8,893 7% 9,254 4% Fi
Slide 23: CAPEX & EBITDA
CAPEX & EBITDA CAPEX EBITDA Unit: THB, m Unit: THB, m CPP EBITDA Margin% CPF 90,000 20.0% 81,692 18.0% 80,000 27,135 25,240 26,523 4,907 16.3% 16.0% 70,000 13.9% 14.0% 60,000 6,527 47,551 12.0% 50,000 10,503 13,197 39,559 8.9% 10.0% 40,000 7.3% 8.0% 30,000 6.0% 20,608 19,486 20,000 14,737 4.0% 13,32
Slide 24: 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 Divestment and Dividend 6.3% Equity (Share in Profit of Associates) EBIT 3.5% 3.8% 5.8% CAGR +29% 2018 2019 2020 1Q21* 3,909 1,693 ROA = Net Income (include Non-Controlling Interest
Slide 25: Consolidated Net Profit- Quarterly
Consolidated Net Profit- Quarterly Unit : THB, m 1Q 7,475 2Q 6,945 3Q 6,408 6,062 6,111 6,028 4Q 5,894 4,912 4,279 4,105 4,010 3,048 1,677 2018 2019 2020 2021 Full Year: 15,531 18,456 26,022 6,945 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 +31% Policy consolidated annual net profit Final Dividend Interim Dividend 3.14 1.00 2.18 0.70 0.60 1.82 0.65 0.30 0.40 0.85 0.40 0.35 0.30 2018 2019 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 46.0 Y19 Y20 Y21 33.2 30.4 30.2 41.0 % Chg -9% -1% 36.0 34.4 32.5 33.2 32.7 33.0 31.5 31.3 29.7 30.2 31.0 29.0 26.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Current Price Thailand’s Pork price (THB/kg) Average Price 9
Slide 29: Average Farm Prices - Thailand
Average Farm Prices - Thailand Thailand’s Fresh Egg price (THB/piece) Average Price 4.0 Y19 Y20 Y21 2.6 2.5 2.3 2.9 % Chg -2% -8% 3.0 2.6 2.7 2.7 2.6 2.5 2.5 2.4 2.3 2.2 2.0 1.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Current Price Thailand’s White Shrimp price (THB/Kg) Average Price 400.0 Y19
Slide 30: Average Raw material Prices - Thailand
Average Raw material Prices - Thailand Thailand’s Corn price (THB/kg) Average Price 15.0 Y19 Y20 Y21 9.7 9.0 9.2 9.0 8.9 9.3 9.1 9.4 9.3 9.2 9.0 9.4 10.0 8.6 % Chg -3% +4% 5.0 0.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Current Price Thailand’s Soybean Meal price (THB/kg) Average Price 30.0 Y19
Slide 31: Vietnam: Average Market Price and Major Feed Raw Materials
Vietnam: Average Market Price and Major Feed Raw Materials 40,000 32,243 30,376 30,000 25,671 27,083 23,376 24,912 23,892 Broiler 22,872 22,884 (VND/kg) 20,000 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 100,000 79,285 77,231 80,000 76,625 74,360 68,344 65,391 60,000 46,503 35,726 38,422 Swine 40,0
Slide 32: Turkey: Average Market Price and Major Feed Raw Materials
Turkey: Average Market Price and Major Feed Raw Materials 10.00 7.26 8.00 5.81 5.93 5.62 6.00 4.59 4.67 4.67 4.72 4.91 4.00 Broiler (TRY/kg) 2.00 0.00 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2.50 1.76 1.89 2.00 1.23 1.22 1.29 1.40 1.47 1.50 1.13 1.19 1.00 Corn (TRY/kg) 0.50 0.00 1Q19 2Q19 3Q19
Slide 33: India: Average Market Price and Major Feed Raw Materials
India: Average Market Price and Major Feed Raw Materials 150.0 91.6 91.0 84.1 87.0 100.0 69.8 64.2 72.5 74.5 50.9 50.0 Broiler (INR/kg) 0.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 500.0 400.0 305 327 312 287 257 283 290 285 282 300.0 Shrimp 200.0 (60 pieces) (INR/kg) 100.0 1Q19 2Q19 3Q19 4Q19 1
Slide 34: Russia: Average Market Price and Major Feed Raw Materials
Russia: Average Market Price and Major Feed Raw Materials 120.0 103.3 102.4 96.5 94.5 93.1 100.0 90.1 86.3 81.2 81.7 Swine 80.0 (RUB/kg) 60.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 120.0 111.5 101.9 97.4 95.7 91.1 95.4 91.2 100.0 87.5 88.6 Broiler 80.0 (RUB/kg) 60.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q
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 11,785 12,580 11,987 10,059 10,676 12,000 8,574 8,945 Swine 8,000 (KHR/kg) 4,000 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 1,300 1,218 1,200 1,137 1,135 1,100 1,086 1,093 1,068 1,056 1,059 1,100 Corn 1,000 (KH
Slide 36: China: Average Market Price and Major Feed Raw Materials
China: Average Market Price and Major Feed Raw Materials 40 36.0 36.5 33.8 31.8 32.1 31.4 22.1 20 13.6 15.3 Swine (RMB/kg) 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 4 2.9 2.4 2.6 2.1 2.0 2.1 2.1 2.1 2.2 2 Corn (RMB/kg) 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 6 3.4 3.9 4 3.3 3.2 3.3 3.3 3
Slide 37: Appendix C
Appendix C Group of Associate Companies & Joint Ventures
Slide 38: Group of Associate Companies & Joint Ventures
Group of Associate Companies & Joint Ventures As of March 31, 2021 Associates Type of Business CPF's Direct and Indirect Interest (%) Arbor Acres Thailand Co., Ltd. Broiler Breeder business 49.98 Ross Breeders Siam Co., Ltd. Broiler Breeder business 49.99 CP ALL Public Company Limited Convinience st
Slide 39: Appendix D
Appendix D Product Samples & Retail Outlet Formats
Slide 40: Food Retail Products
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Slide 41: Food Retail Products
Food Retail Products 210g | 8m Authentic Asia Authentic Asia Thai Massaman 4 Authentic Ast Curry Chicken
Slide 42: Food Retail Products
era CHICKEN llis FETTUCCINE the beautiful foods company” , ALFREDG Surprising em faszerowar corm SUDETFIlIet NOAA awe axe: 8 19 C chicken mini kievs P.41
Slide 43: Food Service: Five Stars Chain
Food Service : Five Stars Chain More Than 5,000 Outlets Vietnam India Cambodia Laos Philippines P.42
Slide 44: Food Service: Chester's Outlets
Food Service : Chester’s 186 Outlets P.43
Slide 45: Food Retail Outlets
Food Retail Outlets 331 Stores 23 Stores P.44
Slide 46: CP Fresh
CP Fresh 81Branches Branch P.45
Slide 47: 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 48: Kitchen of The World
Kitchen of The World
Charoen Pokphand Foods Public — Q1 2021 Earnings Presentation on 6ix