(PSE: CNPF) (P (PSE: E: CN CNPF) CENTURY PACIFIC FOOD, INC. (PSE: CNPF) CO CORPORATE PRESENTATION APRIL 2018
Company Overview Snap Sn apshot Full Year Fi Fu Financials Revenues (In USD Mill) • Century Pacific Food, Inc. is the largest canned food company in the Philippines. 720 665 • Over its 40 year operating history, it has built a portfolio of leading and well- 571 recognized brands in three core segments - marine (35% of sales), meat (25% of 471 413 sales), and milk (12% of sales). It is also the Philippines’ leading exporter of OEM tuna (18% of sales) and OEM coconut products (10% of sales). • The Company listed on the Philippine Stock Exchange in 2014 under the trading symbol CNPF. It currently has a market capitalization of about USD1.2 billion. 2014 2015 2016 2017 2018F* • Production Facilities : 6 manufacturing facilities across the Philippines, strategically Net Income (In USD Mill) located adjacent to supply sources (Tuna and Coconut in General Santos City, Meat in 57 Laguna City, Dairy in Taguig City, Sardines in Cavite and Zamboanga City) 54 49 39 32 • Key Management : Christopher T. Po, Executive Chairman – 11 years at CNPF as CEO, 11 years of prior multi-industry experience; Teodoro T. Po, President and CEO – 28 years of experience in running various business units at CNPF; Oscar A. Pobre, CFO – 2014 2015 2016 2017 2018F* 24 years in CNPF’s corporate finance, treasury, accounting and controllership *Consensus of Active Brokers 2017 2017 Re Revenue Breakdown Ownershi Owne hip p Struc uctur ure Coconut OEM, Public, OEM, 10% Export, 24% 28% Tuna OEM, 32% Marine, Century 18% 35% Pacific GIC Private Group, Milk, Domestic, Equity, 7% Branded, 69% 12% 68% 72% Meat, 25% 2
The Big Picture Well-positioned to take advantage of rising consumer demand Ma Majori rity still low ow t to o mid iddle le clas lass in in the Philip ilippin ines Fo Food acco ccounting fo for bul ulk of of f fam amily ily exp xpenditu ture Distribution of Families and Income Di Breakdown of Family Expenditures An Annual Miscellaneous, % % Sh Share % % Sh Share Annual An SE SE Inco come 27% of of of of Inco come Pe Percentage CLASS CL Food, Represents a Re Families Fa Inco come in in USD in in PH PHP go going to to food typical Filipino ty AB 1 9 1,857,000 36,880 42% muc much h larger for family size of 3 fa C 9 26 603,000 11,976 Education, 4% lower in lo income to to 5 pa pax D 60 56 191,000 3,793 Household Items, families fa E 30 9 62,000 1,231 4% Total 100 100 206,000 4,091 Transport, Housing & Utilities, 11% 12% Source: BPI Securities, Social Weather System Survey 2016 Source: Philippine Statistics Authority, Family Income and Expenditure Survey 2016 Philippine shelf-st Ph stable e mar arket lar argest in in ASEA SEAN Room oom t to g o grow ow on on a a per er cap apit ita a bas asis is Pe Per Cap apit ita a Can anned Good oods Con onsumption on (US USD) Sh Shelf-St Stable Food ood Tot otal Con onsumption on (US USDm) 670 Singapore 581 Due primarily Du Increa In ease e in Malaysia to the to e country’s 213 consumption as co 172 Philippines Western We 35 pe per capi pita in influ luence an and Thailand incomes in archip ar ipelag lagic ic in increas ase Indonesia natur na ure 0 5 10 15 20 Source: 2016 Euromonitor data Source: Euromonitor 3
Company Milestones Proven track ck rec ecord in in br brand nd-bui buildi ding ng CENT CE NTURY URY TUNA OEM TU INTERNATION IN IONAL BU BUSI SINESS ESS COCO CO CONUT NUT (C (CHINA) ) CO. LTD. BU BUSI SINESS ESS IP IPO 1978 1983 1986 1995 2001 2002 2003 2008 2012 2014 2015 2016 2017 organic via acquisitions 2011 2011 2014 2014 2016 2016 2016 2016 2017 2017 2016 2016 2011 to 2013, 2011 t 2013, 2015 t 2015 to 2016 2016 Gregory Banzon CNPF Philippines’ Best CNPF Philippines’ Century Tuna and Century Canning Gregory Banzon CNPF Asia’s Awardee for Managed Small Cap Best Mid Cap Argentina Reader's Marketing Company Awardee for Marketing Company Communication Company Company Digest Trusted Brand Marketing Excellence of the Year of the Year Excellence 4
Investment Highlights • Dominates the canned tuna and canned meat categories locally* with a growing presence in milk Market Leadership 1 • 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 & larger share of consumers’ wallet and stomach 2 Products • Diversification of risk and input price exposures • Innovative marketing campaigns to create must-have and aspirational Strong Focus on brands 3 Marketing and Innovation • Strong R&D process to launch products and improve profitability Extensive Market • Products available in 885,000 points of sale locally* 4 Penetration and • A growing network of food service and international accounts Distribution • Long-standing relationships with large international private label customers, Trusted Partner for initially just for tuna, but now also for various coconut products 5 International Customers • One of the Philippines' largest exporter of tuna and various coconut products *Source: Nielsen 5
Dominant Market Leadership in Ambient Food 1 in the Philippines La Largest Pr Producer of Shelf-St Stab able le Products Pr Primary Driver of Ca Canned Tuna Co Consumpti tion Domesti tically De December 2017 93% Shelf Sh lf-St Stab able le 82% #1 #1 #1 #1 5x Canned Tuna Ca Me Meat & Seafood Se Dominance in Do Flagsh Fl ship brand key segments ke “C “Century Tuna” ” 16% with presence wi is is now a a 1% 1% in most in ch champion for 7% ca categories he health h and nd we wellness CNPF Others Source: Euromonitor 2016 Source: Nielsen Ma Mark rket Leader r in Other r Philippine Staples 87% Ju June 2017 December 2017 De De December 2017 #1 #1 #1 #1 #1 #1 45% Em Emuls lsif ifie ied Loaves Re Ready to Eat Beans Co Corned Be Beef 32% 18% 12% 9% 18% 14% 12% 11% 7% 7% 4% 1% 1% Source: Nielsen 6
Multiple Brands and Products Catering 2 to All Consumers Diverse product portfolio catering to a broad customer base and different customer tastes and needs Value for Money Va Ma Mass Ma Mark rket Positioning Po Af Affordable Premium Ca Canned and Pr Proce cessed Fi Fish sh Canned and Ca Proce Pr cessed Me Meat Canned and Ca Drinking Dr Milk; Mi Mi Mixe xes Co Company Po Portfolio as as of En End 2017 2017 Significa cant Benefits of a Multi-Br Brand, Multi-Product ct Por ortfol olio 253 253 SK SKUs • Catering to a broad customer base through multiple Coconut, 4 brands and capturing larger share of the consumers' Milk, 26 wallet/stomach through multiple segments/products Increased bargaining power with suppliers and distributors • Marine, 139 Diversification of risk and facilitate brand consolidation • Meat, 84 play 7
A Strong Focus on Marketing and R&D 3 Driven Innovation R&D Proces R& ess Flow Innovative In e Market eting Campaigns An integral part of launching new products Enhancing brand recognition through active and targeted and improving profitability marketing and promotional campaigns Capitalizing on healthier lifestyles Intuitive and appealing ad-campaigns employing celebrity endorsers to create must have and aspirational brands 8
Extensive Market Penetration and 4 Distribution Network 147k 885k 14 60 Availability Equivalent to 76% Total Philippine Offshore Toll Countries CNPF Total Philippine Outlets CNPF Manufacturers for Products are Outlets Serviced of All Points of Sale CNPF Products Products are AVAILABLE in by CNPF in the Philippines AVAILABLE in Source: 2016 Nielsen data Availability of Branded Products Global Sales and Distribution Network Gl Globa bally In Inves esting i in a a Worldwide Sales Wo an and Dis istrib ibutio ion Inf nfrastructure Export Presence Distributor Toll Manufacturer 9
Trusted Partner for Customers 5 Around the World Works closely with long-standing international partners to produce private label and branded products for sale in international markets Tuna OEM Market Share Key Customers Competitor 5, 6% Competitor 4, 6% Competitor 3, 8% 34% Largest single- UK’s leading Japan’s leading #1 brand restaurant importer of manufacturers of Competitor chain canned food food products 2, 10% Worldwide market leader in coconut water Competitor 1, 34% Source: Bureau of Customs, 2017 Branded Products Sold Exclusively for Export 10
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