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Charoen Pokphand Foods

(CP Foods)

Presented by

Ahmed Kamal, Usman Ali,Rituraj Bhuyan

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Company Oerie!

Risk Fa"tors

Finan"ial Analysis Business #trate$ies % &'pansion

Corporate #o"ial Responsibility

Con"lusion

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Companys Oerie!

CP Foods is a "ompany o the CharoenPokphand *roup (CP *roup)+

Founded in -./ by 0hanin Chearaanont+

1t is an a$ro2industrial and ood"on$lomerate in 3hailand+

1t is a publi" "ompany traded in the #to"k&'"han$e o 3hailand+

&stimated Reenues o 456,78- million Baht

&stimated 1n"ome o 7,965 million Baht

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CPF Operations

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Core Business

+ :ie #to"k ; CPF

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Produ"tion Pro"ess

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Produ"ts

F&&0 BU#1@# Produ"ts

:iesto"k eed produ"t brands

CP, yproite, i2*ro, #tar Feed, @oo,#ae Feed, &ra!an, o$tonal, C+F,Anipro, and ila"

A=uati" eed produ"t brands

CP, #tar Feed, @oo, &ra!an, ?arine, i2*rade, 3urbo, Blan"a, #tar$ate, #ae Fo,and #ae Fish

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Produ"ts

FAR? BU#1@# PRO0UC3#

CPF operates "ommer"ial animal breedin$ andanimal armin$ businesses that "oer >e majoranimals, namely s!ine, "hi"ken, du"k, shrimp and>sh

i$h =uality and hy$ieni" arms that do not use$ro!th stimulatin$ substan"es or antibioti"s,prohibited by la!s+

CPFs produ"tion pro"esses inole adan"edte"hnolo$y and internationally "erti>ed standardsthereore, our resh meat is sae or "onsumers

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Produ"ts

FOO0 BU#1@# PRO0UC3#

+ Chi"ken % ?arinated resh "hi"ken

5+ Pork % marinated resh pork

8+ Fish

4+ 0u"k 9+ &$$

6+ Ready meal % :i$ht ?eal

.+ #ide 0ish

/+Chi"ken Appetier

-+ *yoa % Donton Appetier 7+ Bakery

+ Pro"essed &$$

5+ #auasa$e, am % ba"on

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Retail % Food Outlets

9 #tar Business

As o 8 0e"ember 574, there !ere 9,557 Fie#tar kiosks a"ross 3hailand, 96- kiosks in

Eietnam, 58 kiosks in 1ndia and 54 kiosks in:aos+

Chesters; As o 8 0e"ember 574, Chestershad 57 restaurants, /7 o !hi"h !ere

Company2operated, !hile 5 !ere ran"hisee2operated+

CP Kit"hen; + As o 8 0e"ember 574, there!ere - bran"hes o CP Kit"hen

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Retail % Food Outlets

CP Fresh ?art ; As o 8 0e"ember 574,CP Fresh ?art operated 67 retail stores in

3hailand; 544 in Ban$kok and its i"inity,

and 866 in proin"ial areas, as !ell as-,777 "ommunity reri$erators in 3hailand

CP Fresh ?art Plus; As o 8 0e"ember574, there !ere 5 bran"hes o CP Fresh

?art Plus CP Food Dorld; + As o 8 0e"ember 574,

there !ere 4 bran"hes o CP Food Dorld+

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Risk a"tors

+ #trate$i" Risk

a+ Chan$e in "onsumer behaior ; 1n"reasin$ly $reater aluesare pla"ed on "oninien"e, health, reshness, "leanness,as !ellas enironmently2riendliness+

b+ Climate Eariability; Eariability o "limate "onditions dire"tlyimpa"t a$ri"ultural produ"tiity+ 3his leads to u"tuation in=uality % pri"e o ra! materials+

"+ Oerseas 1nestment % Operations; Politi"al situation, le$alre=uirements, trade poli"y, e"onomi" and labor market "onditions,lan$ua$es and "ultural diGeren"es, as !ell as "urren"y e'"han$erate u"tuations may aGe"t oerseas operations+

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Risk Fa"tors

5+ Operational Risk;

a+ Produ"t =uality % #aety ; 1neGe"tie Huality Control ?easures

b+ Animal 0isease Outbreaks; &arly ?ortality #yndrome (&?#) in shrimp,!hi"h >rst appeared in 3hailand at the end o 575

"+ &I"ien"y o #upply Chain ?ana$ement; 3he Company needs to mana$e

all sta$es o its supply "hain, rom eed manua"turin$, armin$ anda=ua"ulture, ood produ"tion, to retail and outlet businesses+

d+ Eolatility o Commodity pri"es ; 3he armin$ industry has seen

si$ni>"ant e'pansion oer re"ent years, and i su"h e'pansion does notmat"h the $ro!th in "onsumption, it !ould result in $reater olatility opri"es+

e+ Ability to re"ruit % retain kno!led$eable % "apable stuG+

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Risk Fa"tors

8+ Finan"ial % Finan"ial Reportin$ Risk;

a+Forei$n &'"han$e Eolatility

3hereore the Companys >nan"ial perorman"e is subje"tto u"tuation in e'"han$e rates oer any period o time+

b+ 1nterest Rate Eolatility ; 3he Company makes >nan"in$de"isions based on "urrent and ore"ast a"tors in the>nan"ial and "apital markets+

Borro!in$ at oatin$ interest rates may "ause the

Company a"es the interest rate olatility risk+

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Risk Fa"tors

4+ Complian"e Risk

3he Company must "omply !ith la!s, re$ulations, and business rules appli"ableto ea"h o its produ"ts and business units+

9+ Corporate 1ma$e % Reputational Risk;

0issemination o "ontent !ith misinormation throu$h multiple "hannels "andama$e the Companys brand and "orporate ima$e and reputation+ As theCompany operates an inte$rated a$ri"ultural and ood business, so"iety mayie! the s"ope o its operations as a monopoly+

?oreoer, as the leadin$ eed manua"turer, the Company has been linked,alon$ !ith the rest o 3hailands seaood industries, to human traI"kin$ in the>shin$ industry+ #u"h issues "an adersely impa"t the Companys "redibilityand "onsumer "on>den"e+

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Risk ?iti$ation; Dhat !e hae

doneJ

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F1@A@C1A: A@A:#1#

575

578

574 579 -? &nded

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Finan"ial i$hli$hts5752574

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Consolidated #tatements o >nan"ial position o CPFand its subsidiaries as o 8 0e"ember

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Consolidated statements o in"ome o CPF and itssubsidiaries or the years ended 8 0e"ember 575,

578 and 574

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Consolidated statement o "ash o!s% Key Finan"ial ratios

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-months ended 579

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Consolidated #ales by Produ"t 579

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OUR 01E10&@0 PO:1C

CPF has a poli"y to pay diidends to shareholders t!i"e a year+

3he >rst diidend payment is paid as an interim diidend, !ith the se"ond diidend payment bein$ paid

as an annual diidend+ 3he total diidend paid ea"h year !ill be appro'imately 97L o net in"ome, aterthe dedu"tion o in"ome ta'es and the le$al resere (based on separate >nan"ial statements)+

3he annual and interim diidend payments may be subje"t to "han$e, dependin$ on su"h ariables asthe Companys operations results, its >nan"ial position, uture proje"ts and preailin$ e"onomi"

"onditions at the time+

Additionally, CPF has a duty to "omply !ith the terms and "onditions o its debentures, !hi"h prohibitCPF rom payin$ "ash diidends to shareholders in the eent o CPF bein$ unable to seri"e interest

payments on, or any other amounts o!in$ to, the debenture holders+

For subsidiaries that are listed on orei$n sto"k e'"han$es, the diidend payment !ill be depend uponthe Board o 0ire"tors meetin$ or #hareholders meetin$ resolution (as the "ase may be)+

For subsidiaries that are non2listed "ompanies, the diidend payment !ill depend upon their utureinestment plans, their >nan"ial stru"ture and li=uidity+ 1n the >s"al year ended 8 0e"ember 574,

CPFs diidend in"ome rom subsidiaries totaled 3B 8,--7 million, o !hi"h 3B 998 million !as romsubsidiary that are listed on orei$n sto"k e'"han$e and 3B 5,/8. million !as rom subsidiaries thatare non2listed "ompany+

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OUR 01E10&@0 PO:1C

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#to"k Pri"e 5752576

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0&B&@3URJ

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Business #trate$ies

3ar$et $ro!th

Aera$e annual 7ML $ro!th

Key 0riers+ #hrimp business 1mproement

5+ &'istin$ 1nternational operations

e'pansion8+ ?er$ers and A"=uisitions (?%A)

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Business #trate$ies

1nestment

9r Cape'o 3B 97,777 million(e'"ludin$ CPP) "autiouslyinestment or $ro!th

3hailand; add alue to e'istin$businesses N1nternational ;

diersi>"ation % market e'pansion

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CORPORA3& #OC1A: RPO@#1B1:13

+ Food #e"urity

a+ &nhan"in$ ood =uality % saetythrou$hout the "hain+

b+ 1mproin$ ood a""ess5+ #el #uI"ient #o"iety

a+ Promotin$ Din Din Partnership

8+ Balan"e o nature a+ Promotin$ resour"e eI"ien"y

b+ Conseration o bio diersity

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CO@C:U#1O@

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H % A

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