(PSE: CNPF) (P (PSE: : CNPF) CENTURY PACIFIC FOOD, INC. (PSE: CNPF) CORPORATE PRESENTATION MAY 2018
Company Overview Snapshot Sna Ful Full Yea ear Fina Financials Revenues (In USD Mill) • Century Pacific Food, Inc. is the largest canned food company in the Philippines. 725 665 571 • Over its 40 year operating history, it has built a portfolio of leading and well- 471 413 recognized brands in three core segments - marine (35% of sales), meat (25% of 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 2014 2015 2016 2017 2018F* symbol CNPF. It currently has a market capitalization of about USD1.2 billion. • Production Facilities : 6 manufacturing facilities across the Philippines, strategically Net Income (In USD Mill) 54 56 49 located adjacent to supply sources (Tuna and Coconut in General Santos City, Meat in 39 32 Laguna City, Dairy in Taguig City, Sardines in Cavite and Zamboanga City) • Key Management : Christopher T. Po - Executive Chairman; Teodoro T. Po - President and CEO; Gregory Banzon - Executive Vice President and COO; Edwin Africa - Senior 2014 2015 2016 2017 2018F* Vice President and General Manager; Oscar A. Pobre - Vice President and CFO *Consensus of Active Brokers 2017 Revenue Breakdown 2017 Ownership St Structure 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 Maj ajority sti still low ow to mid iddle class lass in in the Phil hilippines Food acc Foo ccounting g for for bul ulk of of fam amily expenditure Distrib ibutio ion of f Fam amili ilies and nd Inc ncom ome Breakdown of Family Expenditures Miscellaneous, Annu nual % % Share e % % Share e Annu nual SE 27% Incom ome e of of Incom ome e CLA LASS Percentage Food, Represents ts a Families Incom ome in US USD in PHP going to goin to foo ood typic ical l Filip lipin ino AB 1 9 1,857,000 36,880 42% much lar muc arger for or fam amily ily si size of f 3 3 C 9 26 603,000 11,976 Education, 4% low ower inc ncom ome to 5 to 5 pax pax D 60 56 191,000 3,793 Household Items, fam amili ilies 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 Phil hilippine shel shelf-st stable mar arket lar argest in in ASE ASEAN Roo oom to o gr grow on on a a per capi apita a bas asis Per Cap apit ita Can anned Good oods Con onsumptio ion (US USD) She helf lf-St Stable le Foo ood Tot otal l Con onsumpti tion n (US USDm) 670 Singapore 581 Due ue pr prim imaril ily y to to Inc ncrease in n Malaysia the country’s 213 consumptio ion as 172 Philippines Western pe per capita 35 infl nfluence and nd Thailand inc ncom omes archip ipela lagic ic inc ncrease Indonesia natu na ture 0 5 10 15 20 Source: Euromonitor 2016 Source: Euromonitor 3
Company Milestones Proven track record in in brand-build lding COCONUT BUSINESS TUNA OEM BUSINESS CENTURY INTERNATIONAL (CHINA) CO. LTD. 1978 1983 1986 1995 2001 2002 2003 2008 2012 2014 2015 2016 2017 organic via acquisitions 4
Company Milestones Recognized for excellence Century Can anning Century Tuna and and Gregory Ban anzon CNPF Asia’s Marketing Com ompany of of Ar Argentina Rea eader's 's Awardee for or Mar arketing Mar arketing Com ompany the Year ear 2011 Dig Digest Trusted Brand Ex Exce cellence 2014 of of the Yea ear 2016 2011-2013, 2015-2016 Gregory Ban anzon Awardee for or CN CNPF Philippines’ CNPF Philippines’ Bes est Man anaged Small Communication Bes est Mid id Cap ap Ex Exce cellence Cap ap Company 2016 Company 2017 2017-2018 5
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 • Strong R&D process to launch products and improve profitability Innovation 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 • One of the Philippines' largest exporter of tuna and various coconut products Customers *Source: Nielsen 6
Dominant Market Leadership in Ambient Food 1 in the Philippines Largest Producer of Lar of She Shelf-Stable Products Prim imary Dr Driver of of Can anned Tuna a Consumption Dom Domest stically March 2018 Mar Shelf-Stable She 93% 93% #1 #1 #1 #1 83% 83% 5x Can anned Tuna Mea eat & Seafood Sea Dom omin inance in n Fla lagship ip br bran and key y se segments “Century Tuna” with wi th pr presence 15% is s no now a in n mos most 1% 1% cham hampio ion for or categories 7% he healt alth and nd welln llness CNPF Others Source: Euromonitor 2016 Source: Nielsen Mar arket Lea Leader in in Other Phil hilippine St Staples 87% 87% Mar March 2018 Jun June 2017 Ready March 2018 Mar #1 #1 #1 #1 #1 #1 to o Eat Be Beans 46% 46% Emulsi Em sified Loa Loaves Corned Beef 31% 31% 18% 17% 14% 11% 11% 11% 8% 6% 7% 4% 1% 1% Source: Nielsen 7
Multiple Brands and Products Catering 2 to All Consumers Diverse product portfolio catering to a broad customer base and different customer tastes and needs Valu alue for or Mon oney Mas ass Mar arket Affordable Premium Af Positio Po tionin ing Can anned and nd Pr Proc ocessed Fis ish Can anned and nd Pr Proc ocessed Meat at Can anned and nd Drin Dr inkin ing Milk; lk; Mixes Company Port ortfolio as as of of End End 20 2017 17 Si Signifi ficant Be Benefi fits of of a a Mul ulti ti-Brand, Mul ulti ti-Product t Port ortfo folio 253 SK 253 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 8
A Strong Focus on Marketing and R&D 3 Driven Innovation R&D Pr Process ss Fl Flow ow Inno nnovativ ive Mark Marketin ing Ca Camp mpaig igns 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 9
Extensive Market Penetration and 4 Distribution Network Availability 147k 885k 14 60 Equivalent to 76% Offshore Toll Total Philippine Countries CNPF Total Philippine Outlets CNPF Manufacturers for Products are Outlets Serviced of All Points of Sale Products are CNPF Products AVAILABLE in by CNPF in the Philippines AVAILABLE in Availability of Branded Products Global Sales and Distribution Network Glo lobally Investing in in a a Worl orldwide Sale Sales and and Dis Distribution Infr frastructure Export Presence Distributor Toll Manufacturer 10
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% Largest single- UK’s leading Japan’s leading 36% #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 11
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