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PT JAPFA COMFEED INDONESIA Tbk
PUBLIC EXPOSE
Jakarta, 3 April 2024
Akselerasi Sinergi dan Kolaborasi
Untuk Pertumbuhan Yang Berkelanjutan
Accelerating Synergy and Collaboration
Towards Sustainable Growth
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Table of Content Company Overview
Operational Performance
Financial Highlights
Challenges & Strategies
Appendix
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COMPANY OVERVIEW
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An Introduction to Japfa Tbk
Vertically ▪ One of the largest poultry players in Indonesia with net sales of Rp51.18 trillion and EBITDA of
integrated Rp3.37 trillion in 2023.
poultry
▪ Listed on Indonesia Stock Exchange for over 34 years with market cap of Rp13.8 trillion as of
company,
focused on 31 December 2023.
Indonesia ▪ Focus on Indonesia, an attractive animal protein market with high growth potential.
▪ Japfa has maintained a solid market over the past 53 years of operations.
Market leader ▪ Economies of scale providing advantages in terms of raw material purchases.
with high ▪ Deep geographical reach to be closer to customer base and raw material suppliers.
growth rate ▪ Strong historical net sales CAGR growth of 8.5% from 2014-2023.
▪ Japfa has the second largest market share for poultry feed and DOC in Indonesia.*
* Frost & Sullivan analysis, Data 2021
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Core Competencies Across the Value Chain
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Poultry Contributes Bulk of Revenues and Feed is Core Pillar of Profitability
FY22 Sales Contribution Per Business Segment FY23 Sales Contribution Per Business Segment
Trading and Others: 5% Trading and Others: 4%
(include cattle) (include cattle)
Aquaculture: 6% Aquaculture: 6%
Poultry Feed: Poultry Processing and
Poultry Processing Poultry Feed:
41% Consumer Products:
and Consumer 41%
10%
Products: 10%
Commercial Farm:
29% Commercial Farm: 31%
Poultry Breeding: 9%
Poultry Breeding: 8%
Poultry: 89% of total Poultry: 90% of total
Total FY22 Sales: Rp. 77.13 Trillion Total FY23 Sales: Rp. 80.71 Trillion
Diversified business with a clear focus on the poultry sector given our expertise and poultry industry dynamics
Note: The total sales and % sales contribution from operational segments shown above are based on gross sales, which exclude elimination adjustment
between segments
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OPERATIONAL PERFORMANCE
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Flashback 2023 The global economic landscape in 2023 was marked by various uncertainties, with the ongoing Russia- Ukraine conflict, escalating benchmark interest rates, and persistent inflationary pressures, contributing to a deceleration in global economic growth. Amid global economic uncertainty, Indonesia's economy has demonstrated robust and stable growth. According to data from the Central Statistics Agency (BPS), Indonesia's economic growth in 2023 reached 5.05%, a slight decrease from the previous year's growth of 5.31%. In 2023, the national livestock industry grappled with formidable challenges. The industry faced issues such as the scarcity and elevated costs of raw materials, diminished purchasing power, and the fluctuating exchange rate dynamics between the Rupiah and the US Dollar. The impact of El Niño in Indonesia disrupted the corn supply, a crucial raw material for animal feed production, resulting in a significant surge in prices. Concurrently, the Government upheld its policy against corn imports into Indonesia, compelling the Company to explore alternative raw materials without compromising product quality The oversupply of Day-Old-Chick (DOC) persisted, particularly in early 2023, leading to fluctuating prices for DOC and live birds throughout the year. The fluctuating live bird prices added complexity, causing financial setbacks for numerous farmers. In response, the Company adopted a discerning approach in marketing to minimise accounts receivable and optimised the performance of the technical service team to assist farmers in achieving best results.
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Flashback 2023 (continued) The Company took some strategic steps, including among others : Business and Operational The Company continued its efforts to expand and develop its markets, particularly in regions with substantial market potential, including export. Continuous efficiency measures included workforce cost reduction and enhanced digitalisation programmes. Expanding market reach by venturing into traditional markets. This initiative is further fortified by integrating the distribution of processed products The Company executed a diverse range of promotional initiatives to maintain customers loyalty, primarily by leveraging above-the-line advertising across various media channels. Finance Prudently managing capital expenditures to maintain liquidity Management of working capital and costs through regular review Consistently perform prudent financial management and cash control
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Flashback 2023 (continued) Technology Technological improvement through “mobile”, “data integration”, “data science platform”, internet, will be more dominate digitalization projects. Sustainability The Company actively supports the Japfa Group Sustainability Targets and contributes towards these goals by formulating strategic action plans. We also fulfil our Sustainability-linked Bond (SLB) commitment. As of 2023, we have successfully completed eight out of nine waste water recycling facilities. We enhanced the Japfa Sustainability Reporting System (JSRS) expanding the coverage of JSRS, significantly improving data completeness and accuracy, as well as adding data analytics feature. These upgrades were systematically executed based on a structured matrix and subsequently analysed using Japfa Sustainalytics.
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Japfa Sustainability Journey
Sustainability has been The standalone Participated as a road tester in the Social Japfa Tbk received an SLL
at the core of our sustainability report was LCA/SLCA Project initiated by the United from BNI valued at IDR 1.42
operations since the issued to prominently Nations Environment Life Cycle Initiative trillion. Japfa Group sets
Company’s inception showcase our sustainability and Social LC Alliance to assess our Sustainability Targets and
efforts in our operations contribution to our poultry farmer partners Japfa is committed to support
these targets
The process of sustainability The Sustainability Committee was
monitoring and reporting established Issued the world’s first SLB for • Japfa Group sets
was initiated The Sustainability Strategy Plan for agri-food industry and the first Sustainability
2019-2021 was developed USD denominated in South- Action Plans
Launched Japfa Sustainability East Asia • Enhancing Japfa
Reporting System (JSRS) Commenced and developed a Sustainability
Initiated a preliminary crade-to-gate supplier survey on Reporting System
LCA study for poultry operations sustainability practices (JSRS)
Our mission to be a leading dependable provider of affordable protein foods is aligned to the United Nations
Sustainable Development Goal (SDG) No.2: Zero Hunger
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FINANCIAL HIGHLIGHTS
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Financial Highlights
NET SALES PROFIT FROM OPERATIONS
(in IDR Trillion) (in IDR Trillion)
48.97 51.18
2.75 2.21
2022 2023
2022 2023 PROFIT FOR THE YEAR ATTRIBUTABLE TO OWNERS
EBITDA OF THE PARENT
(in IDR Trillion) (in IDR Trillion)
3.86
3.37 1.42 0.93
2022 2023 2022 2023
Note: Based on the Company’s Financial Statement as of 31 December 2023
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Financial Highlights
TOTAL ASSETS NET DEBT/EQUITY
(in IDR Trillion)
34.11
32.69
81.0%
80.1%
2022 2023 2022 2023
CAPITAL EXPENDITURE (CAPEX)
(in IDR Trillion)
1.98
1.94
2022 2023
Note: Based on the Company’s Financial Statement as of 31 December 2023
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CHALLENGES
AND
STRATEGIES
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Challenges and Strategies
Challenges
1. Major global factors we are facing in 2023, are among others:
• Geopolitical tensions between Russia and Ukraine, has disrupted global economies,
supply chains and commodities prices, impacted the cost of raw materials and consumer
purchasing power.
• Global inflationary pressures urge central banks in various countries to maintain high
interest rates for a longer period.
2. The global factors above will also affect the national economy and Indonesian poultry
industry.
3. The changing in consumer’s consumption pattern due to Covid-19 Pandemic.
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Challenges and Strategies Strategies 1. Encourage employees to undertake training for self development. 2. Technological improvement through “mobile”, “data integration”, “data science platform”, internet, will be more dominate digitalization projects. 3. The Company will remain prudent in reviewing its capital investment (capex). 4. Consistency in applying prudent financial management. 5. The Company will continue to focus in improving its efficiency and profitability. 6. The Company will continuously strengthening its downstream business through the development of its poultry processing and consumer products business, as well as encouraging retail sales growth through its retail outlets both offline and online.
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Challenges and Strategies Strategies 7. The Company will also educate its farmers so they can produce high quality products and have strong competitiveness. 8. Moreover, the Company will still be focusing on its core business. It will keep improving its products penetration while educating the people on how important animal protein for health, along with the Government’s programme in reducing malnutrition and stunting. 9. Both livestock and aquaculture industries have a big growth potential, considering Indonesia’s large population. Indonesia’s low animal protein consumption we believe is a business opportunity for the Company’s long term and sustainable growth in the future.
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APPENDIX
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The Company’s Operational Areas
Pabrik Pakan Ikan
Deli Serdang, Lampung Selatan,
dan Pakan Udang
Purwakarta, Gresik, Banyuwangi
Aquafeed Mills
Pembibitan Udang Pembibitan Udang/Shrimp Hatcheries: Pidie Jaya,
dan Tambak Bangka Barat, Lampung Selatan, Serang,
Udang Carita, Indramayu, Rembang,
Shrimp Banyuwangi, Buleleng, Jembrana,
Hatcheries Sumbawa, Barru
and Shrimp
Farms Tambak Udang/Shrimp Farms: Situbondo (2),
Banyuwangi (2)
Pembibitan Pembibitan Ikan Air Tawar/Freshwater Fish
Ikan Air Tawar Hatcheries: Simalungun, Karawang, Sleman,
dan Tambak Ikan Situbondo, Banjar, Tanah Laut
Freshwater
Fish
Hatcheries Tambak Ikan/Fish Farms: Simalungun,
and Fish Situbondo, Banyuwangi (2)
Farms
Pabrik
Pengolahan Hasil
Ikan dan Udang
Fish and Simalungun, Cirebon, Banyuwangi
Shrimp
Processing
Plants
Penggemukan Sapi Lampung
Medan (2), Padang, Lampung, Cikande-Serang, Tangerang, Purwakarta,
Pabrik Pakan Ternak Beef Cattle Feedlot
Cirebon (2), Grobogan, Sragen, Buduran-Sidoarjo, Gedangan-Sidoarjo,
Poultry Feedmills
Margomulyo-Surabaya, Banjarmasin, Makassar Unit Rumah Potong
Hewan dan Pengolahan
Daging Sapi Serang
Pengeringan Jagung Medan, Padang, Lampung, Cikande-Serang, Cirebon, Grobogan, Sragen,
Corn Dryer Buduran, Margomulyo-Surabaya, Banjarmasin, Makassar, Gowa, Sidrap Abattoir and Meat Processing
Unit
Medan, Lampung, Cikupa-Tangerang, Parung-Bogor, Cicurug-Sukabumi, Pabrik Karung Plastik
Rumah Potong Ayam Sadang-Purwakarta, Pemalang, Pabelan-Salatiga, Magelang, Yogyakarta, Wonoayu-Sidoarjo
Plastic Bag Factory
Slaughterhouse Boyolali, Krian-Sidoarjo, Wonoayu-Sidoarjo, Tabanan-Bali, Bati-Bati-
Banjarmasin, Makassar Pabrik Vaksin Hewan Gunung Putri-Kab. Bogor (2)
Poultry Cold Storage Animal Vaccine Factories
(Di luar RPA/Outside Tiga Raksa-Tangerang Selatan, Karang Anyar-Surakarta, Mojokerto
Slaughterhouse) Unit Kesehatan Hewan dan Peralatan
Kandang Klapanunggal-Kab. Bogor
Unit Pengolahan Daging (SGF) Animal Health and Livestock
Cikupa-Tangerang, Cicurug-Sukabumi, Boyolali, Wonoayu-Sidoarjo
Meat Processing Unit (SGF) Equipment Unit
Unit Pengolahan Susu (SGF) Pabrik Premix Cikarang
Boyolali Premix Plant
Milk Processing Unit (SGF)
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The Company’s Operational Areas
Bandar Masilam (1,2,3), Tiga Panah, Senembah TMH, Tambang, Htc. Seulimeum, Htc. Tanjung Morawa, Htc.
Kampar, Tapung (1, 2), 2X11 Kayutanam, Lubuk Basung, Mestong, Bandar Masilam, Htc. Tambang, Htc. Teluk
Gelumbang (1,2), Kelekar, GP Payaraman (1,2), Gisting (1,2) Tanjung Bintan, Htc. 2x11 Kayu Tanam, Htc.
Bintang, GP Tegineneng, Petir, Darandang (1,2), Bojong (1,2), Cipunegara Mestong, Htc. Gelumbang, Htc. Bumi
(1,2,3), Nagrak (1,2), Kalapanunggal (1,2), Cimerak, Nyalindung, Jampang Ratunuban, Htc. Kronjo, Htc. Cipunagara
Tengah, Sukatani, Parung Kuda, GP Wanayasa (1,2), GP Kiara Pedes (1,2), HATCHERY (1,2), Htc. Parungkuda, Htc. Sucinaraja, Htc.
FARM PBD-JAPFA
PBD-JAPFA
Bojong, Belik, Wonosegoro, Puncakwangi, Ngaringan, Sale, Margasari, Wanayasa, Htc. Tengaran, Htc. Rawalo, Htc.
Purwodadi (1,2), Purwosari (1,2), Singosari, Pungging, Grati (1,2,3,4), Cepiring, Htc. Wonorejo, Htc. Purwoasri,
Wonosalam (Sewa), Wongsorejo, Dampit, Tutur, GP Ngajum, Pupuan (1,2), Htc. Baturiti, Htc. Melaya, Htc. Pringgabaya,
Toho, Tambang Ulang (1,2,3), Loajana, Sepaku, Pangkalan Banteng, Htc. Anjungan, Htc. Bati--Bati, Htc.
Tompobulu (1,2), Tanralili, Mattiro Bulu, Kauditan. Pangkalan Lada, Htc. Loajana, Htc. Tanralili,
Htc. Palu Utara, Htc. Kauditan.
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THANK YOU
Page 23
PT JAPFA COMFEED INDONESIA Tbk
PUBLIC EXPOSE
Jakarta, 3 April 2024
Akselerasi Sinergi dan Kolaborasi
Untuk Pertumbuhan Yang Berkelanjutan
Accelerating Synergy and Collaboration
Towards Sustainable Growth
Names mentioned 3 people and organisations named in the text · linked when the evidence is strong
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org
Indonesia Stock Exchange
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