PT Charoen Pokphand Indonesia Tbk Public Expose 16 May 2012 1
Disclaimer and Forward Looking Statements This presentation contains certain forward looking statements and forwardlooking financial information. Such statements and financial information are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of PT Charoen Pokphand Indonesia Tbk (the Company ) to be materially different from those forecast. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by the Company, or any other person, or that the forecast results will or are likely to be achieved. This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for any securities, nor should it or any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever. 2
Introduction to PT Charoen Pokphand Indonesia Tbk Company Overview Ownership Chart Indonesia s largest producer of poultry feed, day old chicks, and processed chickens Founded in 1972 by Charoen Pokphand Group ~ operating track record of 38 years Market leader in Indonesia within each business segment, with strong established brands Well positioned to take full advantage of the abundant opportunities in the Indonesian poultry industry Publicly listed since 1991 Company and its subsidiaries PT Charoen Pokphand Indonesia Tbk Poultry Feed, Processed Chicken & PoultryRelated 99.92% PT Vista Grain Poultry Feed PT Charoen Pokphand Jaya Farm 99,99% 99.96% PT Primafood International Processed Chicken Distributor 99.99% PT Centralavian Pertiwi 99.90% PT Agrico International Trading 99.96% PT Istana Satwa Borneo 99.32% PT Feprotama Pertiwi Chicken Feather Mill 99.98% PT Satwa Utama Raya 99.99% PT Poly Packaging Industry Woven Bag for Poultry Feed 99.96% PT Vista Agung Kencana 99.99% PT Cipendawa Agriindustri 50.00% PT CiptaKhatulistiwaMandiri 3
Introduction to PT Charoen Pokphand Indonesia Tbk Nationwide Production Facilities North Sumatra Poultry Feed,, Food South Kalimantan West Kalimantan East Kalimantan Riau Papua Jambi North Sulawesi South Sumatra Lampung Poultry Feed, Central Kalimantan Bali South Sulawesi Poultry Feed, Banten Poultry Feed,, Food West Java Central Java East Java East Nusa Tenggara Poultry Feed,, Food Poultry Feed,, Food 4
Introduction to PT Charoen Pokphand Indonesia Tbk Nationwide Distribution Network Medan Samarinda Manado Batam Pekanbaru Pontianak Padang Jambi Balikpapan Palembang Sampit Banjarmasin Lampung Jakarta Karawang Balaraja Cirebon Makassar Surabaya Bogor Semarang Bandung Sidoarjo Salatiga Denpasar Kupang Jayapura Headquarters Branch Office Representative Office 5
Vertically Integrated Poultry Operations Raw Material GP Breeding Farms PS Broiler PS Layer Layer Farm Poultry Egg Customer Breeding Farms FS Broiler FS Layer Distributor More than 1,200 agent or poultry shop Nucleus More than 10,000 plasma Distributor Raw Material Feed Mills Broiler Farm Slaughter House Further Process Corn, Soybean Meal and others Poultry Feed Poultry Poultry Meat Value Added Food CP Group interexchange of intelligence resulting in strong bargaining position against suppliers Dedicated research and development yield efficient feed conversion rate and disease resistant Loyal distributors and nucleus served by our nationwide network provide strong and stable demand Transfer technology to the farmers as a service to improve productivity and healthiness Healthy assurance poultry with hygienic process will serve more than 1,000 distributors 6
Financial Highlights Net Sales Gross Profit 20.000 18.000 16.000 14.000 1 10.000 8.000 6.000 4.000 17.958 15.078 YOY: 19% YOY: 12% 4.380 4.894 5.000 4.000 3.000 3.754 3.924 YOY: 5% YOY: 24% 1.006 1.251 EBITDA Net Income 3.500 3.000 2.500 1.500 500 3.181 2.981 YOY: 7% YOY: 25% 1.090 871 2.500 1.500 500 2.363 2.220 YOY: 6% YOY: 20% 787 656 7
Financial Highlights 1Q 2012 Revenue Breakdown Sales Value Poultry Feed 19% Processed Chicken 9% Others 1% Poultry Feed 71% 16.000 14.000 1 10.000 8.000 6.000 4.000 13.822 11.208 YOY: 23% YOY: 4% 3.327 3.462 Sales Value Sales Value Processed Chicken 3.000 2.500 1.500 500 2.447 2.405 YOY: 2% YOY: 41% 648 912 1.800 1.600 1.400 1.200 800 600 400 200 1.579 1.323 YOY: 19% YOY: 20% 364 438 8
Conclusion Large scale opportunity National macro economic growth driving increased demand Strong growth prospects for increased poultry and egg consumption in Indonesia Poultry meat remains the most affordable source of animal protein Growth in modern food outlets Strong competitive position and underlying fundamentals Indonesians are currently undergoing a dietary shift that includes more animal protein Superior feed formulation; track record and knowhow Proven large scale integrated business with established nationwide distribution channel Dominant market share in Indonesia Significant barriers to entry for competition Strong brands and customer relationships Strong consistent growth expected Increase feed production and sales Increase day old chick production and sales Expand processed food business