pt malindo feedmill tbk · 4 chicken consumption in indonesia keeps growing and forecasted to be...
TRANSCRIPT
1
1Q 2020 RESULT PRESENTATION
PT MALINDO FEEDMILL TBK
1
COMPANY OVERVIEW
1Q 2020HIGHLIGHTS
INVESTMENT HIGHLIGHTS
May 18th, 2020
2
COMPANY OVERVIEW
UPSTREAM MIDSTREAM DOWNSTREAM
FEED BREEDINGCOMMERCIAL
FARMINGFOOD
PROCESSING
Vertically integrated business
May 18th, 2020
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
3
KEY INVESTMENT HIGHLIGHTS
May 18th, 2020
4
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
5
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
6
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
7
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
8
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
9
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
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
10
1Q20 HIGHLIGHTS
May 18th, 2020
11
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 (%)
12
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
13
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 %
14
-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 %
FOODBROILER
15
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
May 18th, 2020
This page intentionally left blank
THANK YOU
www.malindofeedmill.com
Sunny Gold
@sunnygoldid
@sunnygoldid