Gfpt Public Co. Ltd. · SET:GFPT
Gfpt Public — FY2019 Earnings Presentation
37 slides from Gfpt Public's earnings presentation, Feb 25, 2020
Slide 1: Y2019 Results Presentation
GFPT Public Company Limited Y2019 Results Presentation Analyst Meeting No.1/2020 25 February 2020
Slide 2: Disclaimer
Disclaimer 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 2019 and, unless stated otherwise. The information does not purport to be complete or comprehensive. This presentati
Slide 3: Agenda
Agenda GFPT Profile Y2019 Financial Results Broiler Industry Outlook 2020 Guidance Q&A Appendix: Key Statistics Analyst Meeting No. 1/2020 | 25 February 2020 | page 3
Slide 4: About the Company
About the Company 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, pa
Slide 5: Good Food Good Chicken
Good Food Good Chicken We are committed to produce quality chicken meat according to international standards with attention to every stage of production to ensure, our chicken is fresh, clean, safe, and delicious in every bite. Analyst Meeting No. 1/2020 | 25 February 2020 | page 5
Slide 6: GFPT's Vision
GFPT’S VISION “GFPT strives to be a leading chicken meat exporter with its fully vertical integrated chicken production” MISSIONS Quality Satisfaction Responsibility Enhance product quality to Attention to the needs of Build awareness and the international standards customers responsible to society
Slide 7: Sustainability Development
Sustainability Development GFPT supported Sustainable Development Goals (SDGs) which was incorporated in the Company's objectives and operations; for example: SDGs 2 Zero hunger SDGs 4 Quality education SDGs 6 Clean water and sanitation SDGs 8 Decent work and economic growth SDGs 13 Climate action S
Slide 8: GFPT Profile
GFPT Profile Symbol GFPT Shareholding Structure as of 7 Mar 2019 Industry / Sector Agro & Food Industry / Agribusiness Excellent 2019 CG Score [90 – 100 CG Report Score] Anti - Corruption Certified to be a member of Collective Action Coalition: CAC Closed Price THB 12.30 per share (30/12/2019) Avera
Slide 9: Group Structure
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 | 98.28% FKT | 99.99% GFF | 99.99% Krungthai Food PCL. Krungthai Farm Co., Lt
Slide 10: Feed Mills, Farms, Primary Plants
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 11: Timeline
Timeline Listed in SET Stock split from THB 10 Additional Capital MKS: Broiler GFPT: New chicken GFPT Initially established to THB 1 per share Injection in GFN farm expansion processing plant (Thung Khwang) 1981 1992 2010 2012 2018 2019 1990 1991 1993 2003 2008 2014-2016 2017 99.99% in FKT 99.99% in
Slide 12: GFPT Group Expansion Plan
GFPT Group Expansion Plan Future Project GFPT Broiler Farm Raising capacity to reach 340,000 birds per day GFPT Slaughter House New slaughter house capacity at 150,000 birds per day GFPT Further Processing Plant Cooked product for export capacity at 24,000 MT per year McKey Further Processing Plant
Slide 13: Product
Product FEED FOOD 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] FARM Day-old-Chick …………………... Live Broiler Processed Food [Sausage, Smoke Sausage, C
Slide 14: Y2019 Snapshot
Y2019 Snapshot Revenue by Segment 17,829 16,692 16,467 16,693 16,928 16,647 16,864 15,370 14,214 Farm, 12,472 30% 10,996 11,507 8,122 Food, 51% Feed, 19% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenue by Destination Revenue by Currency Revenue by Product DOC, 3% Chicken EUR
Slide 15: Y2019 Market Position
Y2019 Market Position 3rd in Thai Chicken Export 6th in Thai Chicken Production GFPT Group GFPT Group 7% 13% Export by Destination Export by Product Type China 23% Others Cooked 8% 65% EU 30% JP Raw 39% 35% Source: Thai Broiler Processing Exporters Association Note: 2019 Thai Broiler Production = 1,
Slide 16: Y2019 Financial Results
*GFPT Y¥2019 Financial Results
Slide 17: Y2019 Financial Results
Y2019 Financial Results Y2019 Consolidated Revenue = THB 16.86 billion Y2019 Revenue Breakdown by Segment Business Segment of Y2019 Y2018 Change GFPT Group THB million % THB million % THB million % Chicken Processing 7,872.79 46.69 7,545.44 45.33 327.35 4.34 Feed 3,171.95 18.81 3,129.01 18.80 42.94
Slide 18: Y2019 Consolidated Income Statement
Y2019 Consolidated Income Statement (Unit in THB million) Y2018 %Sales Y2019 %Sales Change % Change Revenue from sales 16,647.02 100.00% 16,863.74 100.00% 216.72 1.30% Cost of sales (14,263.56) (85.68%) (14,443.47) (85.65%) 179.91 1.26% GROSS PROFIT 2,383.46 14.32% 2,420.27 14.35% 36.81 1.54% Other
Slide 19: Y2019 Financial Results
Y2019 Financial Results Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) 16.4% 19.4% 3,000 15.7% 18% 3,500 18.6% 21% 14.0% 15.0% 16.3% 17.8% 17.9% 13.4% 14.3% 14.4% 13.5% 13.9% 14.2% 3,000 15.6% 16.0% 17.0% 16.8% 18% 2,500 13.1% 15% 14.5% 14.7% 15.2% 12.2% 2,500 15% 2,000 12% 2,000 12% 1,500
Slide 20: Y2019 Financial Results
Y2019 Financial Results EPS (THB per share) Return on Asset (%) 2,000 1.21 1.42 1.31 1.33 153% 150% 20,000 13.3% 15% 147% 144% 1,800 141% 138% 18,000 11.6% 135% 132% 129% 10.6% 1,600 126% 123% 16,000 12% 0.95 0.95 120% 117% 114% 9.9% 1,400 111% 108% 14,000 0.83 105% 102% 8.3% 99% 96% 1,200 93% 90% 1
Slide 21: Y2019 Consolidated Financial Position
Y2019 Consolidated Financial Position Selected Items (Unit in THB million) Y2018 Y2019 Change % Change Cash and Cash Equivalents 1,240.09 1,087.26 (152.84) (12.32%) Trade and Other Receivables 974.80 889.86 (84.94) (8.71%) Inventories 3,527.98 3,716.83 188.85 5.35% Other Current Assets 27.15 19.60 (
Slide 22: Y2019 Consolidated Financial Position
Y2019 Consolidated Financial Position Selected Items (Unit in THB million) Y2018 Y2019 Change % Change Short - Term Loans from Financial Institutions 1,380.00 830.00 (550.00) (39.86%) Trade and Other Payables 1,143.42 982.01 (161.40) (14.12%) Current Portion of Long-Term Loans from RPT 300.00 - (300
Slide 23: Y2019 Consolidated Financial Position
Y2019 Consolidated Financial Position Selected Items (Unit in THB million) Y2018 Y2019 Change % Change EBIT 1,379.42 1,540.24 160.82 11.66% Depreciation - Grandparent & Parent Chickens 555.00 573.87 18.86 3.40% Depreciation & Amortization 724.33 745.71 21.39 2.95% EBITDA 2,658.75 2,859.82 201.07 7.5
Slide 24: Y2019 Consolidated Financial Position
Y2019 Consolidated Financial Position Book Value (THB per share) 20,000 16,000 10.86 1143% 1140% 1137% 1134% 1131% 1128% 1125% 10.15 1122% 1119% 1116% 1113% 1110% 1107% 1104% 1101% 1098% 1095% 1092% 1089% 1086% 1083% 1080% 1077% 1074% 1071% 1068% 1065% 1062% 1059% 18,000 14,000 9.63 1056% 1053% 1050
Slide 25: Y2019 Financial Results
Y2019 Financial Results Y2019 Interest-Bearing Debt = THB 3.42 billion Net Debt to EBITDA (THB million) 4,000 8.29 873% 870% 867% 864% 861% 858% 855% 852% 849% 846% 843% 840% 837% 834% 831% 828% 825% 822% 819% 816% 813% 810% 807% 804% 801% 798% 795% 792% 789% 786% 783% 780% 777% 774% 771% 768% 765%
Slide 26: Y2020 Capital Expenditure: 1-1.2 Billion
Investment (million THB) 1,145 1,264 886 924 912 882 946 575 545 594 536 581 610 456 2013 2014 2015 2016 2017 2018 2019 Breeder Stocks Fixed Assets Y2020 Capital Expenditure 1-1.2 Billion Broiler Farm Breeder Farm Primary Plant Analyst Meeting No. 1/2020 | 25 February 2020 | page 26
Slide 27: Market Outlook and Trend
*GFPT Market Outlook and Trend
Slide 28: Global Broiler Meat Market
Global Broiler Meat Market The 8th Global Chicken Producer Others 20% 2019 broiler production = 3,300,000 tons Japan 46% The 4th Global Chicken Exporter EU 2019 broiler meat export = 990,000 tons 34% Cooked 63% Raw USA Brazil EU China Argentina Turkey Thailand 37% 16% 28% 13% 3% 7% 18% 30% P
Slide 29: 40 Years of Thai Chicken Meat Export
40 Years of Thai Chicken Meat Export 1,200,000 Change Change Raw Cooked Total 2018 2019 Forecast 2020 18 / 19 19 / 20 MT Mil. Baht MT Mil. Baht (%) MT Mil. Baht (%) 2020 F: 980,000 MT 1,000,000 Product 2019: 954,010 MT - Raw 325,312 30,768 353,328 29,423 8.61 360,000 34,000 1.89 Cook 63% : Raw 37% -
Slide 30: Global Broiler Meat Market
Global Broiler Meat Market Global Production [Y2019= 99,572,000 tons] Global Import [Y2019 = 9,910,000 tons] USA 19,823 Japan 1,090 China 13,800 Mexico 845 Brazil 13,635 EU 780 EU 12,460 China 625 India 4,902 Saudi Arabia 620 Russia 4,740 Iraq 555 Mexico 3,600 S.Africa 545 Thailand 3,300 UAE 441 Tur
Slide 31: Commodity Price
Commodity Price Corn & Soy Bean Meal (THB/Kg.) Broiler at Farm Gate (THB/Kg.) 25.0 65.0 20.0 20.0 17.6 55.0 16.7 15.1 15.1 14.6 42.0 43.3 42.3 13.8 14.2 13.5 45.0 38.3 37.3 37.3 39.4 15.0 12.6 12.9 12.4 34.4 36.9 36.2 36.6 36.9 37.3 11.8 11.7 33.4 SBM 35.0 41.0 41.8 10.0 35.5 35.2 35.1 34.1 33.7 34.
Slide 32: 2020 Guidance
2020 Guidance 2020 Guidance Revenue 2-3% growth from 2019 sales Gross Profit Margin 13% - 14% SG&A 8.0% - 8.3% Financial Cost ≈ 2.5% Effective Tax Rate 15% - 20% CAPEX THB 1 - 1.2 billion Analyst Meeting No. 1/2020 | 25 February 2020 | page 32
Slide 33: Risk Factor
Risk Factor • THB Appreciation • Brexit • Competition from Potential Country • Disease Outbreak • Drought Situation Analyst Meeting No. 1/2020 | 25 February 2020 | page 33
Slide 34: Key Statistics
*GFPT Key Statistics
Slide 35: Key Statistics: Chicken Processing and Feed Business
Key Statistics: Chicken Processing and Feed Business Chicken Meat Direct Export (MT) Chicken Meat Indirect Export (MT) Chicken Meat Domestic (MT) + 0% + 5% + 19% 63,100 65,400 65,200 66,300 66,500 62,700 34,400 59,600 32,700 21,600 30,600 28,300 18,100 26,200 17,400 15,900 16,500 22,500 22,100 14,90
Slide 36: Q&A
Q&A
Slide 37: Thank You
THANK YOU 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