Analyst Presentation
Thai Foods Group
Financials as of 30 September 2015
Analyst Presentation Financials as of 30 September 2015 Disclaimer - - PowerPoint PPT Presentation
Thai Foods Group Analyst Presentation Financials as of 30 September 2015 Disclaimer The information contained in this presentation (the Analyst Presentation) is for information purposes only, and does not co nstitute or form part of any
Financials as of 30 September 2015
The information contained in this presentation (the “Analyst Presentation”) is for information purposes only, and does not constitute or form part of any offer or invitation to sell or the solicitation
investment decision in relation thereto in any jurisdiction. This Analyst Presentation has been prepared solely for information use during the Company’s presentation to equity research analysts, and may not be taken away, reproduced or redistributed to any other person. By attending this presentation and/or reading this Analyst Presentation, you are agreeing to be bound by the foregoing and below restrictions. Any failure to comply with these restrictions may constitute a violation of applicable securities laws. This Analyst Presentation is confidential, and all contents of this Analyst Presentation are to be kept strictly confidential until the publication of research in accordance with the applicable
listing on a stock exchange. This Analyst Presentation is intended only for the recipients thereof, and may not be copied, reproduced, retransmitted or distributed by a recipient to any other persons in any manner. This Analyst Presentation may not be distributed to the public in any jurisdiction where a registration or approval is required. No step have been or will be taken in any jurisdiction (other than Thailand) where such steps would be required. The issue of the subscription for or the purchase of the securities may be subject to specific legal or regulatory restrictions in certain jurisdictions. The company assumes no responsibility for any violation of any such restriction by any period This Analyst Presentation may contain forward-looking statements that may be identified by their use of words like “plans”, “expects”, “will”, “anticipates”, “believes”, “intends”, “depends”, “projects”, “estimates” or other words of similar meaning and that involve risks and uncertainties. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company does not guarantee that these assumptions and expectations are accurate or will be realized. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that such expectations will be met. Representative examples of these factors include (without limitation) general industry and economic conditions, political uncertainty in Thailand, poultry and swine prices, competition from other companies, shifts in customer demands, customers and partners, changes in operating expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on current views of the Company’s management concerning future events. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. The information in this Analyst Presentation has not been independently verified, approved or endorsed by any manager, bookrunner, advisor or underwriter retained by the Company. No representation, warranty, express or implied, is made as to, and no reliance, in whole or in part, should be placed on, the fairness, accuracy, completeness or correctness of the information and
Company or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, makes any representation as to, or assumes any responsibility with regard to, the accuracy or completeness of any information contained here (whether prepared by it or by any other person) or undertakes any responsibility for any reliance which is placed by any person on any statements or opinions appearing herein or which are made by the Company or any third party, or undertakes to update or revise any information subsequent to the date hereof, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for nor shall they accept responsibility for any loss or damage howsoever arising from any information or opinions presented in these materials or use of this Analyst Presentation or its contents or otherwise arising in connection with this Analyst Presentation. This Analyst Presentation may not be taken or transmitted into the United States, Canada, Australia or Japan or distributed directly or indirectly, in the United States (including its territories and dependencies and any state of the United States), Canada, Australia or Japan. No portion of these materials is an offer of securities for sale in the United States, Canada, Australia or Japan. Under the terms of any proposed offering, no securities will be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or an exemption from registration requirements thereof. No public offering of securities will be made in the United States, and the Bank does not intend to register any part of a proposed offering under the U.S. Securities Act.
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1) Teawsomboonkij Group 79.07% 2) Mr. Ake Ngampanthip 1.26% 3) KT ZMICO Securities Company Limited 1.16% 4) Mr. Chansing Malhota 0.50% 5) Mrs. Amornthip Detchthanasead 0.45%
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2001 2003 2004 2007 2010 2011 2012 2013 2014
Established as Thai Food (2001) Co., Ltd. Commenced chicken slaughterhouse operations with a capacity of 139,000 chickens per day Purchased 3 breeder chicken farms, increasing breeder chicken capacity to 312,000 chickens, and
production capacity to 699,840 eggs per week Established first great- grandparent pig farm with a capacity of 450 pigs TFG’s registered name changed to Thai Foods Group Co., Ltd Commenced operations
with a capacity of 1,800 pigs Acquired Thai Foods Research Center Co.,
Layer Farm Co., Ltd. Established Vietnam swine operations and commenced operations of first grandparent pig farm in Vietnam with a capacity of 700 pigs and first parent pig farm in Vietnam with a capacity of 1,400 pigs Commenced operations of third feed mill facility with a capacity of 50,000 tonnes per month Acquired Thai Foods Swine Farm Co., Ltd Commenced operations of third chicken slaughterhouse with a capacity of 150,000 chickens per day Commenced two new parent pig farms increasing its total capacity at the parent pig farms (including Vietnam parent pig farm with a capacity of 1,400 pigs) from 9,300 pigs to 12,000 pigs Acquired Ayothaya Agri-Tech Company Limited, Thai Foods Swine International Co., Ltd. and
Converted to a public company and changed registered name to THAIFOODS GROUP PUBLIC COMPANY LIMITED Established first grandparent pig farm with a capacity of 1,900 pigs Established first feed mill facility with a capacity of 30,000 tonnes of feed per month
2015
Kick-start export of chicken meat to Japan and Europe and domestic sales of chicken sausage Listed in SET on 8 Oct 2015 Established 2 new grandparent pig farms, increasing capacity to 5,300 pigs and commenced
chicken farm with a capacity
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Production and selling of chickens, pigs and animal feed
Thai Foods Feed Mills Co., Ltd. Production and selling of animal feed 100%
Animal Feed
Thai Foods Research Center Co., Ltd. Operation of a research and development center Ayothaya Agri-Tech Company Limited Production of animal feed sacks and plastic farming equipment
Others
100% 100% Thai Foods Poultry Farm Co., Ltd. Operation of breeder chicken farms Thai Foods Contract Farming Co., Ltd. Rearing of chickens through contract farmers Thai Foods Layer Farm Co., Ltd. Operation of layer chicken farms
Poultry
100% 100% 100% Production and selling of live pigs in Vietnam Thai Foods Swine Farm Co., Ltd. Production and selling of live pigs Thai Foods Swine International Co., Ltd. Not currently operating but expected to start operating swine business in Thailand by the end of 2015
Co., Ltd. Investment Holding Company Thai Viet Swine Line Co., Ltd.
Swine
100% 100% 100% 100% Incorporated in Thailand Incorporated in Vietnam 2011 2011 2011/ 2005 2012/ 2010 2012 2013/ 2012 2014 2014/ 2010 2014/ 2006 Year of acquisition/incorporation 2013
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Grandparent stock farms Breeder farms Hatcheries Broiler farms
Slaughterhouse
Distribution
Processed meat
Fresh meat Great- Grandparent pig farms Grandparent pig farms Parent pig farms Raise fattening pigs
Slaughterhouse
Processing Distribution
Stages of the production value chain which TFG is presently involved in Stages of the production value chain which TFG is not presently involved in Stages of the production value chain which TFG is presently involved in Stages of the production value chain which TFG is not presently involved in
Consolidated revenue EBITDA Profit after tax
9 803 (999) 1,874 1,767 (291) (217) (94) 2011 2012 2013 2014 1Q2015 2Q2015 3Q2015 EBITDA margin (%) 11% (11)% 12% 10% (7)% (5)% (2)% 561 (1,388) 1,034 916 (480) (449) (276) 2011 2012 2013 2014 1Q2015 2Q2015 3Q2015 Net Profit margin (%) 8% (15)% 7% 5% (12)% (11)% (6)%
4,362 5,560 11,602 12,365 2,770 2,566 3,165 973 1,861 2,751 3,568 989 1,044 1,372 1,821 1,652 1,381 1,105 312 414 402 36 13 3 4
7,156 9,073 15,770 4,084 4,027 4,943
2011 2012 2013 2014 1Q2015 2Q2015 3Q2015 Poultry Swine Feed Others
2011 - 2014 CAGR:
6% 21% 17% 21% 24% 26%
17,067
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61% 25% 18% 9% 8% 10% 8% 61% 74% 72% 68% 64% 64% 28% 14%
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improvement in production output at our slaughterhouse to support export volume.
and productivity.
2,770 988 315 4,073 2,565 1,044 417 4,026 3,165 1,372 406 4,942 Poultry Swine Feed & Other Total 1Q2015 2Q2015 3Q2015
YoY Comparison QoQ Comparison
3,422 953 287 4,662 3,165 1,372 406 4,942 Poultry Swine Feed & Other Total 3Q2014 3Q2015
GPM Poultry Swine Feed & Other Total 3Q2014 8% 25% 2% 11% 3Q2015 (11)% 16% 7% (2)% GPM Poultry Swine Feed & Other Total 1Q2015 (14)% (1)% 9% (9)% 2Q2015 (14)% 11% 5% (6)% 3Q2015 (11)% 16% 7% (2)%
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25 2 83 12
EBITDA 3Q2015
Allowance/ (reversal) for doubtful accounts Loss from Decrease in value of inventories Retirement benefit obligation expense Unrealized loss (gain) on exchange rates EBITDA 3Q2015 after adjustment EBITDA 2Q2015 Poultry Operation Swine Operation Feed & Other Operation Other Revenue SG&A Depreciation & Amortization EBITDA 3Q2015 (217) (94) 14 101 21 24 32 ( 69) EBITDA 2Q2015 vs. EXITDA 3Q2015 EBITDA 3Q2015 after adjustment
Non-cash item
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Bank overdrafts and short term loans, 86.4% Current portion of long term loans, 5.7% Long term loans, 7.9% Net Debt/ Equity(*)
Cost of Debt 2013 2014 9-Month 2015 3.4% 3.6% 3.8%
Remark:
(*) Net Debt = Debt – Cash and cash equivalent Equity refers to total shareholders’ equity
1.1x 2.9x 2.3x 1.8x 3.0x 1.5x 2011 2012 2013 2014 9M-2015 Post IPO
Interest Bearing Debt : THB 8,718.9 million
Historical and planned capital expenditure Projects: 2015E – 2017E Purchase new machinery at chicken slaughterhouses in Kanjanaburi and Prajinburi to support future export business Construct and operate a great-grandparent pig farm in Sa Kaeo Construct and operate a pig slaughterhouse Construct and operate 5 parent pig farms Construct and operate chicken sausage facility in Thailand Construct and operate a new feed mill at Prajinburi and improvement of existing feed mill at Supanburi Improvement of breeder chicken farms
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slaughterhouse
farm and 1 hatchery
farm into layer chicken farm All figures in THBm unless otherwise stated (a) Note that the capital expenditure of 2015E-2017E does not included the capital expenditure of existing projects
(a)
1,009 1,605 1,650 882 681 2,620 2011 2012 2013 2014 9M-2015 2015E - 2017E
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