PT MALINDO FEEDMILL TBK · 4 Chicken consumption in Indonesia keeps growing and forecasted to be...

18
1 1Q 2020 RESULT PRESENTATION PT MALINDO FEEDMILL TBK

Transcript of PT MALINDO FEEDMILL TBK · 4 Chicken consumption in Indonesia keeps growing and forecasted to be...

Page 1: PT MALINDO FEEDMILL TBK · 4 Chicken consumption in Indonesia keeps growing and forecasted to be even stronger in 2023 Indonesia’s middle class is growing, adding 80million people

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1Q 2020 RESULT PRESENTATION

PT MALINDO FEEDMILL TBK

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COMPANY OVERVIEW

1Q 2020HIGHLIGHTS

INVESTMENT HIGHLIGHTS

May 18th, 2020

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COMPANY OVERVIEW

UPSTREAM MIDSTREAM DOWNSTREAM

FEED BREEDINGCOMMERCIAL

FARMINGFOOD

PROCESSING

Vertically integrated business

May 18th, 2020

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Attractive, fast growing industry

Top 3 integrated player

Secured growth plan

Upside from Processed food (CBP) segment

Highly experienced management with strong governance

Productive age employees

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KEY INVESTMENT HIGHLIGHTS

May 18th, 2020

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Chicken consumption in Indonesia keeps growing and forecasted to be even stronger in 2023

Indonesia’s middle class is growing, adding 80million people in the middle class by 2020

Chicken is the most affordable animal protein after eggs Indonesia has one of the lowest chicken consumption in SE Asia

Source: Badan Pusat Statistik (2018) and Indonesia Finance Ministry (2019) , Indonesia State Budget, FAOStats, BPS, IMF, USDA, World Bank, Kompas daily, LEK Consulting, McKinsey, OECD, Company

Protein sourcePrice/kg

(IDR)Protein content

Protein Price/g

(IDR)

Egg 23,500 12.5% 188

Chicken (broiler) 35,000 18.5% 189

Fresh milk 25,000 3.5% 714

Beef 190,000 20.0% 950

Fish 167,500 17.5% 957

47.0 46.0

16.0

9.0 10.5 13.6

2.0

38.8

10.6

5.8 2.5 3.6

1.5 0.8

Brunei Malaysia Thailand Philipines INDONESIA Vietnam Cambodia

Chicken consumption percapita (kg/ year)

Income per capita (USD1,000)

Investment highlight #1: Attractive, fast growing industry

217,500 242,500

264,000 265,000 271,000

15,225

45,000 58,080 60,000

80,000

2002 2010 2017 2018 2020

Indonesia total population Middle class population

('000 people)

2,141

2,382

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Historical

Trajectory

(‘000 tons)

May 18th, 2020

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Indonesia feed production capacity share (2019) Indonesia DOC production capacity share (2019)

Source: Company (2019)

35%

25%

8%

4%

8%

20%CPIN

JPFA

MAIN

NEW HOPE

CJ

Others

Investment highlight #2: Top 3 integrated player and well-positioned in the market supported by strategic locations

Legends Division2019 Annual

CapacityLocations

Feedmill 1,080,000 MT Cikande, Grobogan, Gresik, Makassar

GPS Breeding

2.2 mn DOCs Majalengka

PS Breeding 249 mn DOCsMedan, Lampung, Subang, Cikaum, Purwakarta, Wonosari, Probolinggo, Lumajang, Pontianak, Banjarmasin, Makassar, Pekanbaru, Palembang, Rembang,

Broiler 37,716 MT Medan, Subang, Bogor, Palembang

Food Processing

4,451 MT Cikarang

May 18th, 2020

38%

25%

7%

5%

10%

15%

CPIN

JPFA

MAIN

NEW HOPE

CJ

Others

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Investment highlight #4: Upside from Processed food (CBP) segment

DISTRIBUTION MAPCUSTOMER AND OUTLET GROWTH

Reputation as high quality producer, solid track record with diverse customer base

May 18th, 2020

499 390565 621 621

1962

2307

3151

3726 3726

2015 2016 2017 2018 2019

Total customer Total outlet

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Investment highlight #5: Highly experienced management with strong governance

Lau Chia Nguang Tan Lai Kai Yongkie Handaya Brian M. O ’Connor Koh Bock Swi(Raymond Koh)President Commissioner Commissioner* Independent Commissioner* Independent Commissioner*

Independent Commissioner*

Year of Poultry experience:

More than 40 years

Year of Manufactureexperience:

More than 25 years

Year of Finance experience:

More than 20 years

Year of Finance experience:

More than 40 years

Year of Poultry experience:

More than 25 years

*): Professional

Tan Sri Lau Tuang Nguang

Mazlan Bin A. Talib Rewin Hanrahan Lau Joo Hwa Lau Joo Keat Rudy Hartono Husin Dato’ Seri AbdulAzim Bin Mohd ZabidiPresident Director

Director* Director* Director Director Director*

Director*

Year of Poultry experience:

More than 30 years

Year of Agriculture experience:

More than 30 years

Year of Poultry experience:

More than 25 years

Year of Poultry experience:

More than 15 years

Year of Poultry experience:

More than 15 years

Year of Finance experience:

More than 20 years

Year of Finance experience:

More than 20 years

May 18th, 2020

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Investment highlight #5: Highly experienced management with strong governance

*): Professional

Aldrin RungkatFeedmill Director*

Tan Sri Lau Tuang Nguang

President Director

Lau Joo HwaOperation Director

Lau Joo KeatBreeder Farming Director

Rudy Hartono HusinFinance Director*

Rewin HanrahanMarketing Director*

Hilda WibowoHR Director*

May 18th, 2020

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Investment highlight #6: Productive age employees

40%

37%

23%

Company's employee category by age

20 - 29 years 30 - 39 years > 40 years

May 18th, 2020

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DOC & Broiler Average Selling PriceGovernment initiatives ensuring stable DOC

& chicken prices and supply-demand dynamics

1Q/2020

Consumer demand projected to be lower due to macro conditions

GDP growth: 2020 -0.4% - 2.4% (2019 c. 5.02%)

Feed margins to benefit from volume growth, particularly expanding to swine

feed and duck feed

Consumer food volume continues increasing by boosting the sales through social media

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1Q20 HIGHLIGHTS

May 18th, 2020

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EBITDA

REVENUE

FINANCIAL PERFORMANCE

NET PROFIT

EBIT MARGIN

1Q20 (Y-Y) -13%

1Q20 (Y-Y) -59%

May 18th, 2020

1Q20 (Y-Y) -85%

67,319,910

91,333,882

14,082,901

Q1/2018 Q1/2019 Q1/2020

1,473,843,105

1,944,816,763 1,692,647,276

Q1/2018 Q1/2019 Q1/2020

6.2%

8.1%

1.8%

Q1/2018 Q1/2019 Q1/2020

148,422,603

216,986,801

89,411,740

10.1%

11.2%

5.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Q1/2018 Q1/2019 Q1/2020

EBITDA EBITDA (%)

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CAPEX

TOTAL ASSETS

FINANCIAL PERFORMANCE

NET DEBT/ EQUITY

TOTAL INTEREST BEARING DEBT

1Q20 (Y-Y) 10%

1Q20 (Y-Y) 25%

1Q20 (Y-Y) 27%

May 18th, 2020

4,095,932,959

4,456,496,553

4,884,907,416

Q1/2018 Q1/2019 Q1/2020

0.85

0.72

0.91

Q1/2018 Q1/2019 Q1/2020

1,706,563,482 1,637,855,020

2,053,039,909

Q1/2018 Q1/2019 Q1/2020

53,184,112 62,950,065

136,695,740

Q1/2018 Q1/2019 Q1/2020

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SALES1Q20 (Y-Y)

-14 %

SEGMENT PERFORMANCE

FEEDMILL

May 18th, 2020

885

1,215

1,046

70.2 106 111

7.9%

8.7%

10.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-

200

400

600

800

1,000

1,200

1,400

Q1/2018 Q1/2019 Q1/2020

Sales - Net EBIT EBIT %

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-28%

BREEDER

SEGMENT PERFORMANCE

SALES1Q20 (Y-Y)

May 18th, 2020

288

414

299

30.6

78.8

(69.9)

10.6%

19.0%

-23.4%

-30.0%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

(100)

-

100

200

300

400

500

Q1/2018 Q1/2019 Q1/2020

Sales - Net EBIT EBIT %

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FOODBROILER

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SEGMENT PERFORMANCE

SALES1Q20 (Y-Y)

7 % SALES1Q20 (Y-Y)

42 %

May 18th, 2020

266 283

302

18.6

(19.8)

(6.8)

7.0%

-7.0%

-2.3%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

(80)

(30)

20

70

120

170

220

270

320

370

Q1/2018 Q1/2019 Q1/2020

36

32

46

(7.7) (7.7) (8.2)-21.5%

-23.6%

-17.9%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

(20)

(10)

-

10

20

30

40

50

Q1/2018 Q1/2019 Q1/2020

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Page 18: PT MALINDO FEEDMILL TBK · 4 Chicken consumption in Indonesia keeps growing and forecasted to be even stronger in 2023 Indonesia’s middle class is growing, adding 80million people

THANK YOU

www.malindofeedmill.com

Sunny Gold

@sunnygoldid

@sunnygoldid