Jb Foods Ltd. · SGX:BEW
Jb Foods — Shareholder Meeting (April 2017)
24 slides from Jb Foods's shareholder meeting presentation, Apr 25, 2017
Slide 1: AGM Shareholders' Presentation
AGM 25 April 2017 Shareholders’ Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from such statements. Such risks and uncertainties include industry and economic conditions, competition, and legal, governmental and
Slide 3: Outline
Outline • Industry Overview • Group Financial Highlights • Sustainable Business Model • JBF’s competitive strength • Develop market position • JB Foods’s Business and Product • Key Takeaways
Slide 4: Industry Overview
Industry Overview
Slide 5: Industry Overview
Industry Overview Improvement in industry • Positive processing margin and higher sales volume processing margin Less intense price • Consolidation and rationalization created a more competition benign market for cocoa products Growth in cocoa • Consumption growth prospect in USA, Europe and consump
Slide 6: Cocoa Processing Industry Cycle
Cocoa Processing Industry Cycle Consolidation and rationalization Less intense price competition and positive processing margins More rational competitive pricing behavior High industry profitability Historically high powder price (US$5000+) Stage of an up-cycle trend High investment in
Slide 7: 5-year historical bean chart (USD/MT)
5-year historical bean chart (USD/MT) NY 2nd Terminal 3500 3400 3300 3200 3100 3000 2900 2800 2700 ICENY 2600 Cocoa bean 2500 price fallen more 2400 than 30% since 2300 early Sept 2016 2200 2100 2000 1900 1800
Slide 8: Group Financial Highlights
Group Financial Highlights
Slide 9: Group Financial Highlights – At a glance
Group Financial Highlights – At a glance (In US$'000) FY2016 FY2015 Y-on-Y Change Revenue 300,564 226,535 33% EBITDA 11,248 8,731 29% Profit before tax 4,386 2,440 80% FY2016 FY2015 Y-on-Y Change EPS (US cents) 1.7 0.9 89% NAV per share (US cents) 32.5 30.9 5% Net gearing (times) 1.3% 1.2% 9%
Slide 10: Growth in revenue and profits in FY2016
Growth in revenue and profits in FY2016 Revenue grew 32.7% 350 15.0 300 10.0 250 5.0 year-on-year driven by higher sales volume 200 0.0 NET PROFIT REVENUE 150 -5.0 100 -10.0 50 -15.0 Profit grew 58.3% year-on year driven by 0 -20.0 2012 2013 2014 2015 2016 higher sales volume Revenue (USD'M) 189
Slide 11: Robust Balance Sheet
Robust Balance Sheet • Well-capitalised with 80 48.0 shareholders’ equity at USD73.9m as at SHAREHOLDERS' EQUITY (USD'M) 75 45.0 31.12.2016 70 42.0 NAV PER SHARE (SGD CENTS) 65 39.0 60 36.0 • Share price of SGD0.35 (as at 14 Apr 2016) was about 22% discount to FY2016’s 55 33.0 Shareholders' Equity (
Slide 12: Profit and Loss Analysis
Profit and Loss Analysis Y-on-Y (In US$'000) FY2016 FY2015 Change Explanatory Revenue 300,564 226,535 33% N1 Cost of sales (286,979) (214,836) 34% Gross profit 13,585 11,699 16% N2 Interest income 77 31 148% Other gains, net 3,259 1,387 135% Foreign exchange gains, net 2,818 820 244% N3 Rental incom
Slide 13: Balance Sheet Analysis
Balance Sheet Analysis 2016 2015 Extract of Balance sheet USD'000 USD'000 Variance Remarks Non-current assets 59,843 60,422 Property, P&M 52,709 54,378 (1,669) -3% Other 7,134 6,044 1,090 18% Current assets 143,827 140,479 Inventories 95,795 91,021 4,774 5% N1 Trade receivables 36,505 36,711 (206) -
Slide 14: Cash Flow Analysis
Cash Flow Analysis 2016 2015 Extract of Cash Flow Statement USD'000 USD'000 Explanatory Operating cash flows before working capital changes 12,893 8,170 Changes in working capital (19,690) 1,055 Pay off suppliers and inventories Net operating cash flows (6,797) 9,225 Net Investing cash flow (3,002)
Slide 15: Sustainable Business Model
= Sustainable Business Model
Slide 16: JB Foods' Competitive Strengths
JB Foods’ Competitive Strengths Competitive cost structure • Management focus on lean management and low overhead structure Management focus • Efficient and nimble decision making • Relentless focus on product and customer service quality Loyal and supportive customer base • Mars, Nestle, Mondelez a
Slide 17: Develop Market Position
Develop Market Position Sustainable Growth Financial • Robust balance sheet with low net gearing • Available debt capacity for business growth Market Position • Expand sales to existing customer base • Acquire new customers in North America , Russia and Indonesia markets Operations • Focus on cost e
Slide 18: Core Business and Product
= Core Business and Product
Slide 19: Our Products
Our Products Cocoa Beans Cocoa Liquor/Mass Cocoa Cake Cocoa Butter Cocoa Powder 19
Slide 20: Our Customers
= Our Customers MARS Mondeléz, meiji HERSHEY'S S&S ~~
Slide 21: Our Cocoa Processing Factories
Our Cocoa Processing Factories Indonesia Factory Malaysia Factory State-of-the-art 60,000mt bean equivalent State-of-the-art 85,000mt bean equivalent processing facility processing facility Commenced operations in 2013 Commenced operations in 2003 21
Slide 22: Key Takeaways
Key Takeaways
Slide 23: Key Takeaways
Key Takeaways • Industry maintains healthy growth • Balanced business growth strategy • Build and expand sustainable customer base • Optimize factory utilization, lowering production costs • Organic growth to cope with the increase in customer demand • Build customer value proposition through world-
Slide 24: Thank you
Thank you Shareholders’ Presentation 24