Charoen Pokphand Foods Public Co. Ltd. · SET:CPF

Charoen Pokphand Foods Public — Charoen Pokphand Foods — Q1 2013 Earnings Presentation

45 slides from Charoen Pokphand Foods Public's earnings presentation, May 14, 2013

  1. Slide 1: Charoen Pokphand Foods Plc. 1Q13: Results Briefing

    Charoen Pokphand Foods Plc. 1Q13: Results Briefing May 14, 2013

  2. Slide 2: Content

    Content  Quick Facts  1Q13 Results  March 31, 2013 Financial Status  Appendix A: Product sample & retail outlet format B: Highlights : 2012 Results C: 3Yr Historical Results Kitchen of The World Page 1

  3. Slide 3: CPF – Investment Highlights

    CPF – Investment Highlights 1. Leading Global Fully Integrated Agro-Industrial and Food Company 2. Well-Diversified product portfolio with operation in 12 countries covered > 3 billion populations 3. Capturing strong growth opportunity in emerging markets 4. Continuous investment for future growth &

  4. Slide 4: Quick Facts (as of March 31, 2013)

    Quick Facts (as of March 31, 2013) Vision : Kitchen of the World Position • Member of “SET50”, Ticker “CPF” under Agro-Industrial & Food Sector • Ranked 914th in Y2012 Forbes Global 2000 list of the World’s Biggest Company • Listed on “MSCI”– MSCI Thailand, MSCI Asia Free, MSCI Asia Free ex-Japan, M

  5. Slide 5: 1Q13 at a Glance

    1Q13 at a Glance Challenges  Ongoing impact of EMS (Early Mortality Syndrome) in Thailand shrimp industry  Higher raw material cost y-o-y, but lower q-o-q  Currency appreciation  Farm price pressure in international operations  Bird flu in China Activities  THB 6 billion bond issuance in May @

  6. Slide 6: 1Q13 Results

    1Q13 Results Acquisition Unit: THB, M +19% -67% -92% GPM 9% down 4.6% y-o-y EBITDA 2% down 5% y-o-y NPM 1.2% down 3.5% y-o-y Margin OPM 0.5% down 5.3% y-o-y Kitchen of The World Page 5

  7. Slide 7: CPF Operations: Y2013

    CPF Operations : Y2013 CPF Operational Structure CPF (Consolidated) 1Q2013 : Sales = 87,424 MB Net Profit = 1,026 MB 45% of Sales 55% of Sales 136% of Net Profit CPF THAILAND CPF International Associate Companies 40% of Sales 15% of Sales CPP- HKSE:43 TW:1215 CPE(Taiwan) (32%) SET: CP ALL (33%) Dome

  8. Slide 8: Fully Integrated Business Model: From Feed to Food

    Fully Integrated Business Model : From Feed to Food Vertically Integrated Operating Platform with concern on environment Livestock (Broiler, Layer, Swine, Duck) Aquaculture (Shrimp & Fish) Adding Branding & Food Retail Feedmill Breeding Farming Processing Value Marketing Outlet Food & Feed Breeder L

  9. Slide 9: CPF Positioning

    CPF Positioning Leading Foothold in Asia with Well-Established Position in High Growth Potential Markets Controlled Countries Livestock Aquaculture Year UK Russia Thailand 1978 Feed, Farm, Food Feed, Farm, Food China 2012 Feed Feed Lao Vietnam 2012 Feed, Farm, Food Feed, Farm, Food China Taiwan UK 2

  10. Slide 10: 1Q13: Consolidated Sales by Operations

    1Q13: Consolidated Sales by Operations THB 38,933 million + 3% THB 35,064 million + 50% CPP* •China 27% •Vietnam 13% Thailand •Domestic 37% •Export 8% Other International 15% THB 13,427 million + 9% Total Sales THB 87,424 million + 19% Note: * CPP has been consolidated since January 20, 2012 Kitchen

  11. Slide 11: 1Q13: Consolidated Sales Structure

    1Q13: Consolidated Sales Structure Sales Breakdown 1Q12 1Q13 % Change Thailand 37,797 38,933 3% Domestic 31,321 31,850 2% Export 6,476 7,083 9% China 15,848 23,400 48% Vietnam 7,487 11,664 56% Others 12,348 13,427 9% Total 73,480 87,424 19% Kitchen of The World Page 10

  12. Slide 12: 1Q13: Consolidated Sales by Products

    1Q13: Consolidated Sales by Products Sales Breakdown by Products Feed Farm Food Total 1Q12 1Q13 % 1Q12 1Q13 % 1Q12 1Q13 % 1Q12 1Q13 % Thailand 13,741 12,705 -8% 14,934 16,088 8% 9,122 10,140 11% 37,797 38,933 3% Domestic 13,669 12,605 -8% 13,487 14,470 7% 4,165 4,775 15% 31,321 31,850 2% Export 72 1

  13. Slide 13: 1Q13: Thailand Operations – Export Destination

    1Q13: Thailand Operations – Export Destination Asia Asia EU EU Others USA Others USA Farm Food THB 1,618 million +12% THB 5,365 million +8% Kitchen of The World Page 12

  14. Slide 14: 1Q13: Consolidated Income Statement Highlight

    1Q13: Consolidated Income Statement Highlight Quarter 1 Full Year 1Q12 1Q13 Change (%) 2011* 2012 Change( %) Net sales 73,480 87,424 19% 206,099 357,175 73% Gross Profit Margin (%) 13.6% 9.0% 16.3% 11.6% Gain on fair value adjustment - - - - 8,643 100% EBITDA 5,226 1,743 -67% 20,869 18,621 -11% EBIT

  15. Slide 15: Average Market Price: Major Products

    Average Market Price: Major Products Broiler (THB / KG.)‫‏‬ May’2013‫‏‬Price‫‏=‏‬48.0 Avg. Price % y-o-y 2013 39.17 12% 2012 35.09 -20% 2011 44.10 Kitchen of The World Page 14

  16. Slide 16: Average Market Price: Major Products

    Average Market Price: Major Products Swine (THB / KG.) ‫‏‬ May’2013‫‏‬Price‫‏=‏‬66.0 Avg. Price % y-o-y 2013 63.33 14% 2012 55.67 -16% 2011 66.25 Source: CPF Kitchen of The World Page 15

  17. Slide 17: Average Market Price: Major Products

    Average Market Price: Major Products Fresh Egg (THB / piece) May’2013‫‏‬Price‫‏=‏‬3.0 Avg. Price % y-o-y 2013 2.67 13% 2012 2.36 -17% 2011 2.86 Source: CPF Kitchen of The World Page 16

  18. Slide 18: Average Market Price: Major Products

    Average Market Price: Major Products White Shrimp (Size70) ‫‏‬ May’2013‫‏‬Price‫‏=‏‬190.0 Avg. Price % y-o-y 2013 165 28% 2012 129 -3% 2011 133 Source: CPF Kitchen of The World Page 17

  19. Slide 19: Average Market Price: Major Feed Raw Materials

    Average Market Price: Major Feed Raw Materials Corn (THB / KG.)‫‏‬ May’2013‫‏‬Price‫‏=‏‬10.0 Avg. Price % y-o-y 2013 10.25 -2% 2012 10.46 8% 2011 9.64 Source: CPF Kitchen of The World Page 18

  20. Slide 20: Average Market Price: Major Feed Raw Materials

    Average Market Price: Major Feed Raw Materials Soybean Meal (THB / KG.)‫‏‬ May’2013‫‏‬Price‫‏=‏‬18.2 Avg. Price % y-o-y 2013 19.42 5% 2012 18.47 29% 2011 14.35 Source: CPF Kitchen of The World Page 19

  21. Slide 21: Average Market Price: Major Feed Raw Materials

    Average Market Price: Major Feed Raw Materials Fishmeal (THB / KG.) May’2013‫‏‬Price‫‏=‏‬27.0 Avg. Price % y-o-y 2013 31.84 0% 2012 31.78 5% 2011 30.18 Source: CPF Kitchen of The World Page 20

  22. Slide 22: Financial Status

    Financial Status Book Value Per Share Net Debt to Equity Unit : THB Per Share Unit : THB, M Remark : Net Debt = Interest Bearing Debt - Cash and Cash Equivalents Kitchen of The World Page 21

  23. Slide 23: Interest Bearing Debt as of March 31, 2013

    Interest Bearing Debt as of March 31, 2013 Interest Bearing Debt : THB 162,117 M 1.2 times Cost of 2011 2012 1Q13 Interest Bearing Debt Debts 4.85% 4.82% 4.70% THB 162,117 million : up 37% y-o-y : up 11% q-o-q Bond Rating “AA-”‫‏‬with “Stable” Outlook by Tris Rating Co., Ltd Kitchen of The World Pag

  24. Slide 24: Y2013 Milestones

    Y2013 Milestones Operations Sales +15% Company cash flow priority  The dividend  Debt reduction  Acquisition M&A  Target related to core businesses  Enhancing value to core operations Investment  3Yr Capex of THB 50,000 million ; cautiously investment for growth • Thailand : add on value to ex

  25. Slide 25: 5-Year Mission

    5-Year Mission ■ Accelerate growth by value-added products and in emerging markets ■ Investment with synergy to existing core operations ■ Capturing lifestyle changes by strengthening brand and expanding food business ■ Building solid governance foundation ■ Good care and share to others Kitchen of

  26. Slide 26: Appendix A: Product Sample & Retail Outlet Format

    Appendix A: Product Sample & Retail Outlet Format 2008 : Results Kitchen of The World

  27. Slide 27: Example of Product Selection

    Example of Product Selection Kitchen of The World Page 26

  28. Slide 28: Five Stars Chain

    Five Stars Chain Five Star Chicken in India Kitchen of The World Page 27

  29. Slide 29: CP Fresh Mart

    CP Fresh Mart Kitchen of The World Page 28

  30. Slide 30: CP Food World

    CP Food World Kitchen of The World Page 29

  31. Slide 31: Chester's

    Chester’s Kitchen of The World Page 30

  32. Slide 32: Appendix B: Highlights: 2012 results

    Appendix B: Highlights : 2012 results 2008 : Results Kitchen of The World

  33. Slide 33: Highlights: 2012 Results

    Highlights : 2012 Results 2012: Consolidated Sales by Operations Y2012 Results Y2012 Financial Status Y2012 Return to Shareholders 2008 : Results

  34. Slide 34: 2012: Consolidated Sales Structure

    2012: Consolidated Sales Structure 2012 Sales Breakdown 2011 2012 % Change Thailand 154,149 159,424 3% Domestic 125,558 128,562 2% Export 28,591 30,862 8% China - 99,411 100% Vietnam - 43,616 100% Others 51,950 54,724 5% Total 206,099 357,175 73% Kitchen of The World Page 33

  35. Slide 35: 2012: Consolidated Sales by Products

    2012: Consolidated Sales by Products 2012 Sales Breakdown by Products Feed Farm Food Total 2011 2012 % 2011 2012 % 2011 2012 % 2011 2012 % Thailand 53,166 56,815 +7% 64,456 62,369 -3% 36,527 40,240 +10% 154,149 159,424 +3% Domestic 51,704 56,471 +9% 58,349 54,817 -6% 15,505 17,274 +11% 125,558 128,5

  36. Slide 36: 2012: Thailand Operations – Export Destination

    2012: Thailand Operations – Export Destination Farm Food THB 7,552 million + 24% THB 22,966 million + 9% Kitchen of The World Page 35

  37. Slide 37: 2012: Consolidated Income Statement Highlight

    2012: Consolidated Income Statement Highlight Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year Change Change 2011* 2012 2011* 2012 2011* 2012 2011* 2012 2011* 2012 % % Net sales 45,744 73,480 53,230 92,255 54,446 97,220 52,679 94,220 79% 206,099 357,175 73% Gross Profit Margin (%) 16.1% 13.6% 18.1%

  38. Slide 38: Appendix C: Highlights: 3Yr Historical Results

    Appendix C: Highlights : 3Yr Historical Results 2008 : Results Kitchen of The World

  39. Slide 39: 2012: Consolidated Income Statement Highlight

    2012: Consolidated Income Statement Highlight Full Year 2010 2011* Change % 2012 Change % Net sales 189,049 206,099 9% 357,175 73% Gross Profit Margin (%) 15.6% 16.3% 11.6% Gain on fair value adjustment - - 8,643 100% EBITDA 18,359 20,869 14% 18,621 -11% EBIT 13,561 16,130 19% 11,245 -30% Share in P

  40. Slide 40: CAPEX & EBITDA

    CAPEX & EBITDA CAPEX EBITDA Unit: THB, M Unit: THB, M (% to Sales) 19,947 4,275 10% 10% 5% 2% Kitchen of The World Page 39

  41. Slide 41: Consolidated Net Profit & ROE & D/EBITDA

    Consolidated Net Profit & ROE & D/EBITDA Net Profit ROE & D/EBITDA Unit: THB, M CAGR 18% Note : 2012 Including gain on fair value adjustment of investments in associate NP: 13,563 15,837 18,790 1,026 * Annualized basis Kitchen of The World Page 40

  42. Slide 42: Consolidated Net Profit - Quarterly

    Consolidated Net Profit - Quarterly Unit : THB, M 12,113 * Note : 1Q12 Gain on fair value adjustment of investments in associates = 8,673 MB : * Including restate of IFRS basis Kitchen of The World Page 41

  43. Slide 43: EPS & Dividends per Share

    EPS & Dividends per Share Earnings Per Share Dividends Unit : THB Per Share Unit : THB Per Share Semi – Annually, minimum of Dividend 50% of annual net profit CAGR 13% Policy (The Company Statement Only) CAGR 7% Kitchen of The World Page 42

  44. Slide 44: 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 presentatio

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