CPE — Investor Presentation 2017

May 31, 2017

Charoen Pokphand Enterprise(Taiwan)CO.LTD

Investor Conference
WELCOME

Profile of CP Group
1. History
Established in Bangkok in 1921
2.Business
1)Agriculture 6)Wholesale & Retail
2)Aquaculture 7)Trading
3)Manufacturing 8)Seeds & Fertilizer
4)Petrochemicals 9)Telecommunications
5)Real Estate 10)Insurance
3.Investment Areas
North America: United States
South America: Mexico
Africa: South Africa
Europe: Belgium,Portugal,Turkey,Russia,England,France,Netherlands
Asia: Thailand,Taiwan,Singapore,HongKong,China,Indonesia,Korea, Japan,Malaysia,Vietnam,Myanmar,India,Pakistan,Cambodia, Laos, Bengal

CPF

●Annual Feed Yields:27.65 million tons, rank first in the world
●Globally 170 feed mills
●Weekly DOC Yields: 40 million，top three in the world
●Swine for Gene Pool: 170,000 heads
●Broiler for Gene Pool: 40% market share in the world, rank first
●Aquatic Shrimp: 350 thousand ton/year, 40% global supply and rank first

I. Profile of CP Taiwan
●Established on Aug. 22, 1977
●Capital：NTD 2.68 billion
●Public Listed on July 27, 1987
●Business
1)Feeds for Poultry and Livestock
2)Fresh Chilled Chicken Slaughter
3)Meat Processing
4)Poultry and Livestock Breeding

II. Industry Market Analysis
1.Feeds
As a leading brand, our company produced about 730 thousand tons in 2016, mainly for poultry and livestock feeds, with 15% market share. In conformity with environmental and health trends, our company has added a new production line for no-drug feeds in Taichung in early 2016 and also has invested a new production line for purely-botanic feeds in Kaohsiung in 2011, both providing safe & secure feed products for domestic breeding industry.
2.Fresh Chilled Chicken
Our company is the first automatic chicken slaughterhouse in Taiwan. After years of effort, our business has become a vertical model, with strict quality control from feeds, broiler, contracted chicken breeding & production to slaughter, as to reduce our costs. As a remarkable food-safety enterprise, our yearly capacity of slaughter was 31.25 million birds in 2016, with 16% market share.
3. Processed Chicken Products
In recent years, people become care for health more so that our sales of broiler chicken is increasing gradually. For many years, we have engaged in R&D and marketing of frozen chicken products which has been popular in breakfast stores, restaurants, supermarkets, warehouse and convenient stores. Our monthly production is one thousand to two thousand tons currently, with 20% market share as a leading brand

II. Industry Market Analysis
In response to the change of frozen food products into safety, health and sanitation to satisfy the future trend of consumers for convenient and rapid dining, we invested a newly frozen fresh food factory in 2011, the most advanced in Asia, that has significant operation performance then.

III. Key data -Operating Performance
(Yr.2005 –Yr.2016)
Amount：Million TWD

IV. Yearly Operating Performance
(Yr.2005-Yr.2016)
Amount：Million TWD

Net Operating Margin
% Net Operating Margin

Profit af. Tax
% Profit af. Tax

Notes:

Consolidated BS
(As for Mar. 31 2017 & 2016)
Amount：Million TWD

Notes:

Consolidated IS
(Three months ended Mar.31 ’2017 & ’2016)
Amount：Million TWD

Notes:

Quarterly Operating Performance
(Yr.2015- Yr.2017)
Amount：Million TWD

% Net Operating Margin

Sales Revenue

Notes:

Compare Quarterly Operating Performance
(Yr.2015- Yr.2017)
Amount：Million TWD

Sales Revenus

Compare Quarterly Operating Performance
(Yr.2015- Yr.2017)
Amount：Million TWD

Net Operating Margin

Compare Quarterly Operating Performance
(Yr.2015- Yr.2017)
Amount：Million TWD

Profit af. Tax

VI. Future Development Strategy

1.With optimistic view of domestic brand egg market, we has invested in two large layer farms in 2016, which will introduce high-tech, environmental and safe one-stop operation from breeding, production to finished product processing
2.With world-class technologies and cut-edge facilities, our future operation target is to promote our technical level of breeding, livestock husbandry, feeds, meat processing and further to lead Taiwan agriculture into a new milestone of high-tech automation. 。

VI. Future Development Strategy

3.Food safety and quality is our mission. Long-term adherence to the philosophy of “No biological safety, no food safety”, we insist on entirely strict quality control and fully traceability control from raw material supply, process, warehousing to delivery, ensuring the safety of foods and providing our safe, healthy, sanitary, convenient, inexpensive, high-quality protein meat
4.In future, we will strengthen the development of e-commerce distribution and continue to deepen the marketing strategy of existed broader brands and deeper distributions.

VI. Future Development Strategy

5.In recent years, CP has continued to invest high capital expenditures in expanding our capacities, renewing our facilities, improving breeding environments. In addition to the core business consolidation such as existed feed, meat processing, chicken slaughter, broiler and swine, we will actively develop one-stop operations from hermetic drencher breeding farm to pork cutting & packing and layer in future
6.In conformity with the governmental policy which develops circular economy emphasizing on waste recycling to reduce the burden of natural environment, our company not only reuses manure as organic fertilizers to supply to those farmers nearby but also develop biogas power generation according to the related environmental regulations about poultry & livestock farms. In accordance with the environmental policy of our Chairman Dhanin of CP Group, we will do our social responsibility well and continue to enlarge our investments in recycle facilities.

VII. Corporate Social Responsibility
By following the business philosophy of Our chairman Dhanin of CP Group, 『Benefit Country, Benefit People, Benefit Company』, we always ask all of our employees must take account of our economics, corporate social responsibility, environmental protection at the same time as promoting our policies and also have to do full efforts to ensure consumer food safety and health.