CNPF CORPORATE PRESENTATION JULY 2019
Company Overview FULL-YEAR FINANCIALS SNAPSHOT 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- 742 906 644 recognized brands in three core segments - marine (32% of sales), meat (25% of 525 457 400 sales), and milk (17% of sales). It is also the Philippines’ leading exporter of tuna OEM (17% of sales) and coconut OEM products (9% of sales). • The company listed on the Philippine Stock Exchange in 2014 under the trading 2014 2015 2016 2017 2018 2019F* symbol 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 60 56 52 50 in Laguna City, Dairy in Taguig City, and Sardines in Cavite and Zamboanga City) 38 31 • 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, OEM, 9% Export, Public*, 26% 29% 31% Century Tuna OEM, Pacific 17% Marine, Group, 32% 69% Domestic, Milk, Branded, 71% 17% Meat, 74% 25% *Includes GIC’s 7% ownership 2
The Big Picture Well-positioned to take advantage of rising consumer demand FOOD ACCOUNTING FOR BULK MAJORITY STILL LOW TO MIDDLE CLASS IN THE PHILIPPINES OF FAMILY EXPENDITURE Distribution of Families and Income Breakdown of Family Expenditures % % Annual Annual SE Miscellaneous, Income Income Share of Share of CLASS 27% in USD Families Income in PHP Percentage AB 1 9 1,857,000 36,880 Represents a Food, going to food typical Filipino C 9 26 603,000 11,976 much larger for Education, family size of 3 42% lower income 4% to 5 pax D 60 56 191,000 3,793 families Household Items, E 30 9 62,000 1,231 4% 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 ROOM TO GROW ON LARGEST IN ASEAN A PER CAPITA BASIS Per Capita Canned Goods Consumption (USD) Shelf-Stable Food Total Consumption (USDm) 670 Due primarily 581 Singapore Increase in to the country’s Malaysia consumption Western Philippines 213 as per capita 172 influence and Thailand 35 incomes 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 organic via acquisitions 2002 2008 2001 2012 2014 1995 COCONUT 1986 2015 BUSINESS CENTURY 1983 INT’L (CHINA) 2016 CO. LTD. TUNA OEM 2017 1978 BUSINESS 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 Family Business Award Best in Sector Asian Export Awardee Outstanding Achievement in Export Marketing Country Winner & ASEAN Winner Consumer Staples Finalist Processed Food Agora Awards ASEAN Business Awards IR Magazine Awards Large Corporate Category 2018 2018 South East Asia The Asian Export Awards 2018 2018 5
INVESTMENT HIGHLIGHTS
Investment Highlights Market • Dominates the canned fish and canned meat categories locally* with a growing presence in milk Leadership • Company’s brands are the brands of choice for Filipino consumers Multiple Brands • A broad product portfolio catering to different tastes and needs to capture a larger share of consumers’ wallet and stomach and Products • Diversification of risk and input price exposures Strong Focus on • 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 • Products available in 927,000 points of sale locally* Penetration and • A growing network of food service and international accounts Distribution Trusted Partner • Long-standing relationships with large international private label customers, for 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 7 *Source: Nielsen
1 Dominant Market Leadership in Ambient Food in the Philippines PRIMARY DRIVER OF CANNED TUNA LARGEST PRODUCER OF SHELF-STABLE PRODUCTS CONSUMPTION DOMESTICALLY 94% 83% #1 #1 Flagship brand 6x Dominance in “Century Tuna” key segments Shelf-Stable June 2019 is now a with presence Meat & Seafood Canned Tuna champion for in most health and categories 15% wellness 6% 1% 1% CNPF Competitor Competitor Competitor CNPF Others 1 2 3 Source: Euromonitor, 2018 Source: Nielsen MARKET LEADER IN OTHER PHILIPPINES STAPLES 85% June 2019 December 2018 June 2019 #1 #1 #1 46% Corned Beef Ready-to-Eat Beans Emulsified Loaves 32% 18% 17% 15% 13% 10% 12% 7% 8% 7% 3% 4% 1% Source: Nielsen 8
2 Multiple Brands and Products Catering to All Consumers Diverse product portfolio catering to a broad customer base and different customer tastes and needs Positioning Value for Money Mass Market Affordable Premium Canned and Processed Fish Canned and Processed Meat Canned and Drinking Milk; Mixes COMPANY PORTFOLIO SIGNIFICANT BENEFITS OF A MULTI-BRAND, AS OF END 2018 MULTI-PRODUCT PORTFOLIO Coconut, 2% Milk, Catering to a broad customer base through multiple brands • 12% and capturing a larger share of the consumers’ wallet and 243 stomach through multiple segments and products Marine, SKUs Increased bargaining power with suppliers and distributors • 52% Meat, Diversification of risk and facilitate brand consolidation play • 34% 9
3 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 10
4 Extensive Market Penetration and Distribution Network Availability 151k 927k 80% 14 62 Equivalent to Total Philippine Total Philippine Offshore Toll Countries Outlets Serviced Outlets CNPF Manufacturers CNPF Products of All Points by CNPF Products are for CNPF are Available in 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 11
5 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 Competitor 5, Largest single-brand Competitor 4, 4% restaurant chain #1 5% UK’s leading importer Competitor 3, of canned food 9% Competitor 2, Japan’s leading 34% 15% manufacturers of food products Competitor 1, 33% Source: Bureau of Customs, 2018 NEWEST FACILITY FOR COCONUT MILK BRANDED PRODUCTS SOLD EXCLUSIVELY FOR EXPORT 12
Recommend
More recommend
