Pt Malindo Feedmill Tbk · IDX:MAIN
Pt Malindo Feedmill Tbk — Q1 2019 Earnings Presentation
23 slides from Pt Malindo Feedmill Tbk's earnings presentation, May 6, 2019
Slide 1: 1Q 2019 Result Presentation
1Q 2019 RESULT PRESENTATION 1
Slide 2: COMPANY BACKGROUND BUSINESS
COMPANY BACKGROUND 1Q/2019 BUSINESS HIGHLIGHTS LINES INDUSTRIAL OUTLOOK 1 May 6th, 2019
Slide 3: Company Background
COMPANY BACKGROUND More than 20 years as a leading livestock company in Indonesia. Improvement in many aspects from Built significant milestones with HR competencies to utilization of numerous achievements in the modern technology agribusiness industry which producing high quality of chicken and egg
Slide 4: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Attractive, Fast Growing Industry GDP growth – 2018: 5.17%; Amongst the lowest poultry The preferred protein due to 2017: 5.07% on higher consumption in SE Asia at 7 its cultural & religious fit and Government spending of kg vs Malaysia at 46 kg affordability 4.56% YoY Top-3
Slide 5: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS Secured Capex Budget Capex plan in place to sustain 32% annual Further scale anticipated to improve EBITDA revenue growth margins Quality Management & Governance The founding shareholder Professional managers, Historical dividend payout has 40+ years of industry independent
Slide 6: 1Q/2019 Highlights
1Q/2019 HIGHLIGHTS DOC & Broiler Average Selling Price Consumer demand projected to improve with Government initiatives ensuring stable DOC strong support by macro conditions & chicken prices and supply-demand GDP growth: 2018 5.2% (2017 c. 5.1%) dynamics Q1/2019 Feed margins to benefit from volume
Slide 7: Financial Performance
FINANCIAL PERFORMANCE TOTAL SALES 2,500.0 1,944.8 2,000.0 1,473.8 1,500.0 1,000.0 500.0 - Q1/2018 Q1/2019 EBITDA 450.0 11.5% 15.0% 350.0 10.6% 10.0% 250.0 206.3 169.1 5.0% 150.0 0.0% 50.0 -5.0% (50.0) Q1/2018 Q1/2019 -10.0% 6 May 6th, 2019
Slide 8: Segment Performance
SEGMENT PERFORMANCE FEED SALES 37 % BREEDER SALES 44% 19.0% 20.0% 413.9 18.0% 430.0 1400.0 1,215.0 8.7% 8.8% 16.0% 1200.0 8.6% 330.0 287.6 14.0% 1000.0 884.7 8.4% 12.0% 800.0 8.2% 230.0 10.6% 10.0% 600.0 8.0% 8.0% 7.9% 130.0 78.8 400.0 7.8% 6.0% 70.24501 105.6 30.6 200.0 7.6% 30.0 4.0% 0.0 7.4% 2.0%
Slide 9: Capex Plans
CAPEX PLANS Capex (IDR bn) Feed capacity (MT) Broiler capacity (MT) CAGR 23,3% 23 64 262 57 79 116 DOC capacity (Mn birds) Consumer Foods capacity (MT) CAGR 2,3% 244 167 77 2 5 0 Projected Capex of IDR 455 bn in 2019 will enable Malindo to capture increased demand as the general economy & market gro
Slide 10: Profit Forecast
PROFIT FORECAST 9 May 6th, 2019
Slide 11: Strategic Locations
STRATEGIC LOCATIONS 10 May 6th, 2019
Slide 12: Industry Outlook
INDUSTRY OUTLOOK Source: OECD/FAO, 2018 Consumption of poultry increases in all region and income level. Consumption per capital will grow, but growth rates will remain higher for developing regions. 12 May 6th, 2019
Slide 13: Industry Outlook
INDUSTRY OUTLOOK SE ASIA POULTRY CONSUMPTION (KG/ CAPITA IN MILLIONS) 60 50 40 30 20 10 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 China Indonesia Malaysia Philippines Thailand Vietnam Source: OECD, 2019 Indonesia has the lowest poultry consumption among the other South
Slide 14: Industry Outlook
INDUSTRY OUTLOOK 13 May 6th, 2019
Slide 15: Industry Outlook
INDUSTRY OUTLOOK ('000) 300,000 264,000 265,000 271,000 242,500 250,000 217,500 200,000 150,000 100,000 80,000 58,080 60,000 45,000 50,000 15,225 - 2002 2010 2017 2018 2020 Indonesia total population Middle class population Source: Badan Pusat Statistik (2018) and Indonesia Finance Ministry (2019) I
Slide 16: Business Lines
BUSINESS LINES Emerging Market Leader in Poultry Indonesia feed production capacity share (2018) Indonesia DOC production capacity share (2018) 20% 25% 35% CPIN JPFA 38% CPIN MAIN JPFA 8% NEW HOPE MAIN CJ 5% NEW HOPE 4% Others Others 7% 8% 25% 25% Malindo is well-positioned to capture market share f
Slide 17: Feed Updates
FEED UPDATES Installation of additional corn dryers & silos in 2018 to increased utilization of local corn Additional 1 line drier in Makassar of 500 tonnes/day of capacity Malindo is able to secured more corn during the harvest period, thus the cost of corn is coming down. Malindo is able to manage
Slide 18: Breeder Updates
BREEDER UPDATES High Quality DOC ➢ Efficient Feed Conversion Ratio (FCR) low mortality rates, high uniformity and fast weight gain ➢ Technical expertise and strict sanitation and biosecurity standards results on low-mortality rate ➢ Efficient and proven farm house management techniques ➢ Strong R&D
Slide 19: Breeder Updates
BREEDER UPDATES Expanding production capacity with a target of 270Mio chicks in FY2019 ➢ Malindo expects to add 7% - 10% production volume per annum beyond 2018 to support projected market recovery. 17 May 6th, 2019
Slide 20: Broiler Updates
BROILER UPDATES • High quality DOC and best-in-class farm management ensures high-quality broiler • Diverse geographic location limits disease outbreaks • Expanding capacity to 77,500 tons in FY2019 to support the growth in processed food & chicken consumption • Expanding to Sumatera (on progress) •
Slide 21: Processed Food Updates
PROCESSED FOOD UPDATES 2 main brands, targeting diverse customer base ➢ Sunny Gold Premium brand targeting modern trade, estimated to generate 40% of revenues. Available at major supermarket chains e.g. Lottemart, Hero, Giant, Superindo, Hypermart, Carrefour. ➢ CikiWiki Mass brand targeting traditio
Slide 22: Processed Food Updates
PROCESSED FOOD UPDATES CUSTOMER AND OUTLET GROWTH DISTRIBUTION MAP 20 May 6th, 2019
Slide 23: Thank You
INVESTOR RELATION THANK YOU www.malindofeedmill.com Sunny Gold @sunnygoldid @sunnygoldid