CORPORATE PRESENTATION MAY 2019 CENTURY PACIFIC FOOD, INC. (PSE: CNPF)
Company Overview SNAPSHOT FULL-YEAR FINANCIALS Revenues (In USD Mill) • Century Pacific Food, Inc. is the largest canned food company in the Philippines. • Over its 40-year operating history, it has built a portfolio of leading and well-recognized 835 724 629 brands in three core segments - marine (32% of sales), meat (25% of sales), and milk 512 446 391 (17% of sales). It is also the Philippines’ leading exporter of OEM tuna (17% of sales) and OEM coconut products (9% of sales). • The Company listed on the Philippine Stock Exchange in 2014 under the trading symbol 2014 2015 2016 2017 2018 2019F* CNPF . It currently has a market capitalization of about USD1.0 billion. Net Income (In USD Mill) • Production Facilities : 6 manufacturing facilities across the Philippines strategically located adjacent to supply sources (Tuna and Coconut in General Santos City, Meat in 60 54 51 49 Laguna City, Dairy in Taguig City, and Sardines in Cavite and Zamboanga City) 37 30 • Key Management : Christopher T. Po - Executive Chairman, Teodoro T. Po - President & CEO, Gregory H. Banzon - Executive Vice President & COO, Edwin C. Africa - Senior 2014 2015 2016 2017 2018 2019F* Vice President & General Manager, Oscar A. Pobre - Vice President & CFO *Consensus of active brokers 2018 REVENUE BREAKDOWN OWNERSHIP STRUCTURE Coconut OEM, 9% Export, OEM, Public*, 29% 26% 31% Tuna OEM, Century 17% Pacific Marine, Group, 32% 69% Milk, Domestic, Branded, 17% 71% 74% Meat, 25% *Includes GIC’s 7% ownership 2
The Big Picture Well-positioned to take advantage of rising consumer demand MAJORITY STILL LOW TO MIDDLE CLASS IN FOOD ACCOUNTING FOR BULK OF FAMILY THE PHILIPPINES EXPENDITURE Distribution of Families and Income Breakdown of Family Expenditures % % Annual Annual Miscellaneous, SE Income Income Share of Share of 27% CLASS in USD Families Income in PHP Food, AB 1 9 1,857,000 36,880 Represents a Percentage typical Filipino going to food 42% C 9 26 603,000 11,976 Education, family size of 3 much larger for 4% to 5 pax D 60 56 191,000 3,793 lower income Household Items, families 4% E 30 9 62,000 1,231 Transport, Housing & Utilities, Total 100 100 206,000 4,091 11% 12% Source: BPI Securities Social Weather System Survey, 2016 Source: Philippine Statistics Authority Family Income and Expenditure Survey, 2016 PHILIPPINE SHELF-STABLE MARKET LARGEST ROOM TO GROW ON A PER CAPITA IN ASEAN BASIS Per Capita Canned Goods Consumption (USD) Shelf-Stable Food Total Consumption (USDm) 670 Due primarily Singapore 581 Increase in to the country’s Malaysia consumption Western Philippines 213 as per capita 172 influence and Thailand incomes 35 archipelagic Indonesia increase nature 0 5 10 15 20 Philippines Indonesia Thailand Malaysia Singapore Source: Euromonitor, 2016 Source: Euromonitor 3
Company Milestones Proven track record in brand building COCO CO CONUT NUT BU BUSI SINESS SS TU TUNA OE OEM BU BUSI SINESS SS CE CENT NTUR URY INT INTERNA NATIO IONA NAL (CHINA) CO. L (CHINA) CO . LTD. D. 2002 2002 2008 2008 2012 2012 2001 2001 2014 2014 2015 2015 1995 1995 2016 2016 1986 1986 2017 2017 1983 1983 1978 1978 organic via acquisitions 4
Company Milestones Recognized for excellence Marketing Company of the Year Century Tuna and Argentina Gregory Banzon Asia’s Marketing Agora Awards Reader's Digest Trusted Brands Marketing Excellence Company of the Year 2011 2011-2013, 2015-2016 Agora Awards Asia Marketing Federation 2014 2016 Philippines’ Best Managed Gregory Banzon Philippines’ Best 1000 High-Growth Companies Asia Pacific Small Cap Company Communication Excellence Mid Cap Company Financial Times Asia Money CEO Excel Awards Finance Asia 2016 2017 2017-2018 2018 Outstanding Achievement Family Business Award Best in Sector in Export Marketing Country Winner & ASEAN Winner Consumer Staples Finalist Agora Awards ASEAN Business Awards IR Magazine Awards South East Asia 2018 2018 2018 5
Investment Highlights • Dominates the canned fish and canned meat categories locally* with a Market 1 growing presence in milk Leadership • Company’s brands are the brands of choice for Filipino consumers • A broad product portfolio catering to different tastes and needs to capture a Multiple Brands 2 larger share of consumers’ wallet and stomach and Products • Diversification of risk and input price exposures Strong Focus on 3 • Innovative marketing campaigns to create must-have and aspirational brands Marketing and • Strong R&D process to launch products and improve profitability Innovation Extensive Market 4 • Products available in 927,000 points of sale locally* Penetration and • A growing network of food service and international accounts Distribution Trusted Partner for • Long-standing relationships with large international private label customers, 5 International initially just for tuna but now also for various coconut products • One of the Philippines' largest exporter of tuna and various coconut products Customers 6 *Source: Nielsen
Dominant Market Leadership in Ambient Food in the Philippines LARGEST PRODUCER OF SHELF-STABLE PRIMARY DRIVER OF CANNED TUNA CONSUMPTION DOMESTICALLY PRODUCTS 94% 83% #1 #1 Flagship brand 6x Dominance in “Century Tuna” Shelf-Stable March 2019 key segments is now a with presence Meat & Seafood Canned Tuna champion for in most health and 6% categories 15% wellness 1% 1% CNPF Others Source: Euromonitor, 2018 Source: Nielsen MARKET LEADER IN OTHER PHILIPPINES STAPLES 87% March 2019 March 2019 June 2017 #1 #1 #1 46% Corned Beef Emulsified Loaves Ready-to-Eat Beans 32% 17% 17% 15% 13% 9% 12% 8% 8% 7% 4% 1% 1% Source: Nielsen 7
Multiple Brands and Products Catering to All Consumers Diverse product portfolio catering to a broad customer base and different customer tastes and needs Affordable Premium Positioning Value for Money Mass Market Canned and Processed Fish Canned and Processed Meat Canned and Drinking Milk; Mixes COMPANY PORTFOLIO AS OF SIGNIFICANT BENEFITS OF A MULTI-BRAND, MULTI-PRODUCT PORTFOLIO END 2018 Coconut, 2% Milk, 243 SKUs 12% Catering to a broad customer base through multiple brands • and capturing a larger share of the consumers’ wallet and stomach through multiple segments and products Marine, • Increased bargaining power with suppliers and distributors 52% Meat, • Diversification of risk and facilitate brand consolidation play 34% 8
Strong Focus on R&D-Driven Innovation and Marketing INNOVATIVE MARKETING CAMPAIGNS Enhancing brand recognition through active and targeted marketing and promotional campaigns • Continuous launching of new products and improvements in profitability made possible through intensive R&D • Promotions capitalize on healthier lifestyles • Intuitive and appealing ad campaigns employ celebrity endorsers to create must-have and aspirational brands 9
Extensive Market Penetration and Distribution Network Availability 138k 927k 14 62 Equivalent to 80% Total Philippine Countries Total Philippine Offshore Toll Outlets Serviced CNPF Products Outlets CNPF Manufacturers of All Points by CNPF are Available in Products are for CNPF of Sale in the Available in Products Philippines Source: Nielsen GLOBAL SALES AND DISTRIBUTION NETWORK AVAILABILITY OF BRANDED PRODUCTS Globally investing in a worldwide sales and distribution infrastructure Export Presence Distributor Toll Manufacturer 10
Trusted Partner for Customers Around the World Works closely with long-standing international partners to produce private label and branded products for sale in international markets KEY CUSTOMERS TUNA OEM MARKET SHARE Largest single-brand Competitor 5, restaurant chain 4% Competitor 4, #1 5% Competitor 3, UK’s leading importer of 9% canned food 34% 34% Competitor 2, 15% Japan’s leading manufacturers of food products Competitor 1, 33% Source: Bureau of Customs, 2018 BRANDED PRODUCTS SOLD EXCLUSIVELY NEWEST FACILITY FOR COCONUT MILK FOR EXPORT 11
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