THE PAN GROUP ASPIRING TO NURTURE THE WORLD

Transcription

1 THE PAN GROUP ASPIRING TO NURTURE THE WORLD

2 CONTENTS 1. Overview of The PAN Group 2. Investment Highlights 3. Financial Snapshots 4. Our People 2

3 WHO WE ARE Company name THE PAN GROUP JOINT-STOCK COMPANY Abbreviation THE PAN GROUP Date of establishment August 31, 2005 Address VL3 Road, Vinh Loc 2 Industrial Park, Long Hiep Commune, Ben Luc District, Long An Province, Vietnam Telephone ( ) Fax ( ) Website Current Charter capital VND 1,336,016,300,000. Number of outstanding shares 133,499,630 shares Market capitalization (as at 16 October 2018) VND 6,995 billion 3

4 WHO WE ARE VISION MISSION A pioneering agriculture and food Group offering trusted products and innovative solutions within an integrated value chain from Vietnam, for the world Farm, Food, Family With a passion to nurture the world, we set to provide people with food security, food safety and nutrition; creating sustainable values on behalf of farmers, families and society 4

5 THE PAN GROUP AT A GLANCE Fastest growing Agri & Food business in Vietnam Past 5Y CAGR 70% 1 2 Integrated farming system with leadership position in farming inputs #1 seed company in VN Assets up 16x over 5Y Full value chain high-tech farming Highly experienced management team 6 3 Extensive Agri & Food Distribution Network Operations team 25+ years of experience Domestic: 132,000 Consumer POS 1,500 farming agents Global 30+ markets Leading position in Japan Diversified & innovative product offerings across multiple categories Farm with 40 exclusive patented seed varieties & 20+ SKUs of flowers & fruits Food with 350+ SKUs across different categories 5 4 Heritage brand beloved by VN s 94 million people Average ~30 year-old brand 5

6 FINANCIAL SNAPSHOT Listed on HSX since 15/10/2010 Ticker: PAN Market capitalization as of : 314 million USD Book value: 138 million USD; equivalent to: 25,655 VND/share (as at 30 June 2018) Financial Summary Bn VND 2018E 2017A 2016 A Revenue 8,768 4,075 2,753 PBT NPAT ROE n/a 12% 11% Shareholding structure 47% 53% Trong Domestic nước Nước Foreign ngoài 6

7 OUR STRATEGIC FORMULATION MARKET LEADERSHIP Roll-up Organic expansion Marketing & Finance Management Distribution Branding Know-how /R&D 7

8 MILESTONES CORPORATE STORY Realizing our vision over the past years through active M&As & aggressive organic expansion The start of Pan Pacific s journey as an agriculture and food business The Farm platform: take over National Seed JSC The start of Food platform The FARM platform: take over Southern seed JSC become No.1 in seed business. The FOOD platform expanding production and distribution through a series of M&A of packaged food companies (confectionery, cashew nut company and aquaculture company) Pan Pacific becomes THE PAN GROUP Expansion of the FARM platform by an investment in a premium flower and vegetable project for export and domestic markets Expansion of the FOOD platform by acquiring a fish sauce company and increasing ownership in Nut company Establishing PAN Food Manufacturing, launching of PAN Food own brands nutritious products Solidifying resources from member companies to PAN Food Parent Increasing ownership stake at Bibica to 50.07% and at 584 NT to 32% PFM operation starts Acquire 54% ownership at FMC 8

9 GROUP STRUCTURE 81,9% 99,99% PAN FARM PAN FOOD FARMING SOLUTIONS PLANTATION Business Segments EVERYDAY FOOD CONVENIENCE FOOD 80.1% 50.97% Business Platforms 72.8% 32% 50.07% 80.5% 53.8% 100% 94.7% 90% HA TAY SEED JSC HA NAM HiTech QUANG NAM SEED JSC 34.2% 20.1% 99.96% 9

10 THE PLATFORMS PAN FARM High-quality Hi-tech Sustainable PAN FOOD Safe Natural Nutritious Consolidated Sales ~US$ 180M 60% - 5Y CAGR Market cap US$ 314M Sales ~ 67 million USD Sales ~ 113 million USD % patented products trusted by 4M+ farming HHs Leading domestic market share & premium products exported to Japan ,000 retail outlets nationwide & strong brand name in 30+ exports markets Powerful brand value across multiple products 10

11 MAJOR AWARDS Top 50 Best listed Vietnamese Companies Top 500 Largest Enterprises Top 500 Fastest Growing Enterprises The Company with the best M&A strategy ( ) Best M&A Deal ( ) Top 3 Best Annual Report with remarkable progress Forbes Asia s Best Under A Billion - one of 200 Asian mid-sized and small enterprises 2013 Top 50 Vietnam s Best Performing Companies 11

12 INVESTMENT HIGHLIGHTS 12

13 1 A DIVERSIFIED & LONG HISTORY PRODUCT PORTFOLIO Years in market FARMING SOLUTIONS Rice Seed Corn Seed Vegetable Seed & Others 50Y Flowers Fruits & Vegetables PLANTATION 1Y Rice Frozen Food Sauces & Condiments EVERYDAY FOOD 40Y CONVENIENCE FOOD Baked Goods Confectionery Snacks & Nuts OTHERS 25Y 13

14 2 AN EXTENSIVE DISTRIBUTION NETWORK IN FARM & FOOD DOMESTIC FOOD 63 provinces 132,000 points of sale ( POS ) 160 distributors FARM 63 provinces 2,000 supermarkets and CVS 700 sales representatives GLOBAL 30+ export markets 1,500 exclusive agents 300 sales representatives 14

15 3 STRONG PRODUCTION CAPABILITIES ACROSS 2 PLATFORMS FARM FOOD ha own land for original seed & 20,000 ha contract farming 1 13 factories nationwide 2 90,000 ton/ year 2 8 ha of factory under expansion 3 Most modern high-tech greenhouse for exports to Japan & ASIA afterwards, with 100 ha in expansion plan 3 57,000 ton of frozen seafood 7 million liters of fish sauce 30,000 ton of B&C 35,000 ton cashew nuts ADVANCED TECHNOLOGY & FACILITIES FOOD SAFETY & OPERATIONAL EFFICIENCY ENVIRONMENT & SAFETY STANDARDS 15

16 4 INNOVATION CAPABILITIES FARM FOOD 1 10 R&D centers 1 Exclusive patent of food & supplements technology 2 70 scientists, experts & staff in R&D with partnership with leading domestic & international institutions 2 European & Japanese technology in food processing combined with local know-how 3 Japanese farming technology & techniques with distinguished quality & variety 3 Superior upstream quality management system for everyday food 16

17 CONTINUED FOCUS ON VIETNAM S MARKET TO ACCELERATE SIGNIFICANT EXPANSION THE COUNTRY 2nd fastest growth in 2017 Low & stable inflation rate - 4% in 2016 Cost competitive production base GDP expected to continue to grow 5% p/a in next 30Y New FTAs enhancing integration into global economy & supply chain Infrastructure development double digit growth past 5Y FARM FOOD 1 Secure, quality & affordable farming inputs 1 Trusted brands that guarantee safety and quality 2 Higher & stable value agro products 2 Convenience in use and purchase 3 Traceability, safety and quality consistency 3 Nutrition & heath benefits 17

18 1 FARM High quality & Vertical integration driving sustainability AGRI INPUTS B USD 6B USD Informal & productivity driven High quality & innovation PAN s success formula PAN Farm s unique value chain Fragmented & self developed Centrally planned & National seed R&D leadership & government support AGRI PRODUCTS 28.5B USD with 15B USD export 32 B USD market Strong R&D capability with partnership with leading institutions Key trends Quantity-led Greater demand for output safety & quality Quality focus Cost efficiency & climate change Tax subsidy for seed & high-tech agri National food reservation scheme Unique distribution network Domestic : 1,500 exclusive agents International: Japan as largest export market 18

19 2 FOOD Embracing safety & nutrition as capturing growth momentum PACKAGED FOOD PAN s success formula The leading domestic brand 10B USD 13B USD Heritage brand endorsed by millions of households in VN Identified with quality & nutrition Key trends Convenience & safety Endorsement of domestic brand Know-how in baked goods & confectionery Market trends combined with internal strengths to capture growth opportunities Distinguished technology Extensive Distribution Channels 94 million people 80% under 50 Rising income & increase in per capita expenditure (8.5% CAGR) Growth of MT Channel in retail industry Domestic: 94M market people through 132,000 TT POS & 72% MT coverage Export: 20+ years exporting to 30+ markets 19

20 FINANCIAL HIGHLIGHTS 20

21 HIGHLIGHTS IN 2017 CAGR 60% Sales Growth million USD Total Value of Investment Value Total Asset Growth After-tax Profit Growth 6 times CAGR 121% 338 million USD 5,081 Market Capitalization Number of Employees

22 COMPANY FINANCIAL SNAPSHOT Bn VND 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Revenue projected 8,768 4,075 2,650 2, , Revenue structure (projected) 40% Farm Food 60% Bn VND Revenue structure by markets 2017 Revenue structure 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Export Domestic 2,254 1,459 1, ,821 1,007 1, % Farm Food 37% 22

23 COMPANY FINANCIAL SNAPSHOT Bn VND Consolidated profits projected % 2017 vs actual performances EPS +46% to 3,163 VND PBT NPAT % 12% 41% Revenue Gross Profit EBITDA PBT (bn VND) Consolidated PAN Food PAN Farm Assets 5,982 3,551 2,393 Owner s Equity 4,166 2,124 1,865 Gross Revenue 4,075 2,555 1,521 Profits before tax Profits after tax

24 2018 EXPANSION PLAN 1. Continued expansion of existing businesses through: Innovations and product development Strengthening export capability Aggressive expansion and acquisitions in domestic POS 2. New Investments Complete Fimex (HOSE: FMC) acquisitions New acquisition targets to reinforce leadership position CAPEX plan of US $25 million mainly to focus on new lines of baked goods (in Food), greenhouse expansions and post-harvest technology (in Farm), besides expanding production capacity in value added products in existing business lines 24

25 DEVELOPMENT STRATEGY REVENUE BEFORE-TAX PROFIT 1 Develop The Pan Group s branded products on the basis of a complete distribution network. USD 1 BILLION USD MILLION 2 Continue seeking M&A targets to complete the fullvalue chain. 3 Make investments in R&D activities, pioneering in the development of valuable, safe and traceable new products. 4 Optimize the value of portfolio companies to increase synergy. 5 Cooperate with domestic and international prestigious partners to launch new projects. 6 Develop corporate culture that has its own identity, creating close connection with portfolio companies 25

26 OUR PEOPLE 26

27 OUR PEOPLE BOARD OF DIRECTORS MR. NGUYEN DUY HUNG CHAIRMAN Founder, Chairman and CEO of Saigon Securities Inc. (HOSE: SSI), Vietnam s first privately licensed securities firm and a consistent leader in Vietnam s securities and investment industry. Chairman of SSI Asset Management (SSIAM), Vietnam s leading asset management company. Founder and Chairman of The PAN Group (formerly known as Pan Pacific Corp.) (HOSE: PAN), a pioneer and market leader in facility services currently expanding in agriculture, aquaculture and food products. Ms. Ha Thi Thanh Van Board Member and Deputy CEO of The Pan Group JSC since October Chairwoman of Pan Pacific from October 2006 to October CEO of Pan Pacific from December 1999 to August Director of Business Development and Marketing of PPC Trade and Services Ltd. from December 1998 to December Ms. Van holds a Bachelors Degree in Literature and Linguistics from Orlopski University. Ms. Nguyen Tra My Vice Chairwoman (and CEO) Founder/Chairman and CEO of CSC Vietnam Holdings since 2007; Vice Chairman of The Pan Group (HOSE: PAN), Chairman of Pan Farm and Pan-Saladbowl, Board Member of National Seeds Corporation (HOSE: NSC), Ben Tre Aquatex JSC (HOSE: ABT) and BioSpring JSC. Before setting up her own business at CSC Vietnam, Ms. Tra My had 18 years working as Chief Financial Officer, Deputy General Director of Biomin Vietnam a 100% foreign owned entity producing additives and premixes in animal feed. Ms. Tra My holds a Bachelor Degree from Foreign Trade University Vietnam and an Executive MBA Degree from the Shidler College of Business, University of Hawaii, USA where she also received Hall of Honor Awards Mr. Michael Sng Co-founder, CEO and Managing Partner of The Asian Entrepreneur Legacy (TAEL) Partners, the Investment Manager of the TAEL Funds, which acts as financial partner to entrepreneurs in the Southeast Asia region. Michael cofounded TAEL Partners in 2007, bringing close to 30 years of transactions and relationships experience across Southeast Asia. Michael spent 16 years at Schroders where he held various senior positions including the first Schroder s country head of Malaysia, head of financial markets division for Southeast Asia and board director at Schroders Singapore. In 1998, Michael was recruited to establish UOB Asia, the investment banking subsidiary of UOB where he successfully built its entire business, establishing presences in Singapore, Malaysia, Thailand and Indonesia. 27

28 OUR PEOPLE BOARD OF DIRECTORS (Cont.) Mr. Ms. Nguyen Vu VanThuy Khai Huong Mr. Ms. Huong Khai has is currently 15 yearsthe working Director in PAN of Investment Pacific (since Division 1997), at now SSI since is The March PAN2012. Group. With He the led experience the development of 11 years of PAN Services working at with SSI 5,000 & has been employees involved operating deeply in invietnamese 20+ provinces with capital 800 market clients. since Mr. its early Khai days oftenas works a corporate closely finance with the Management consultant, participating Team of subsidiaries in equitization andprojects, affiliatedlisting companies of consultancy, PAN tolarge-scale enhance restructuring the business in electricity, performance and profitability. telecommunications, Currently, oil heand is gas, also finance, the CEObanking, of PAN Food. Mr. Khai shipping... pays critical attention to establishing report system for identification Ms. Huong holds of any a Master s negligence Degree in thein company s Corporate operation. Finance from the National Economics University and a Master s Degree in Applied Finance from Macquarie University, Australia. Mr. Nguyen Duy Khanh is currently the CEO of NDH Invest Ltd., a boutique private company which carries out investments into leading companies in various business sectors, namely finance & securities, agriculture & food, biotechnology. Mr. Khanh graduated from the George Washington University with a BA in Finance. Khanh spent time working with SSI during the implementation of the McKinsey Conversion Project (2010). He is also the founder of SSI International Corp. and has contributed much to the success of SSI International Corp. Mr. Pham Viet Muon Mr. Muon was previously Vice Chairman of the Office of the Government of the Socialist Republic of Vietnam, Standing Deputy Chairman of the Steering Committee for Renovation and Development of the State Enterprises. Mr. Muon has deep knowledge and experience in the restructuring and equitization of the SOEs. Mr. Muon holds the PhD in economics. Dr. Dang Kim Son Senior researcher on agricultural policy analysis. Senior consultant for various Vietnamese and foreign government agencies, namely Laos, Cambodia, Myanmar. Dr. Son also works as resource person or consultants for projects of ADB, LMPPI, Grow Asia, IDH. Etc. He is currently member of Science Forum, Transformation Leadership Network, Asean Society of Agriculture Economy, Asia Pacific Agriculture Policy Forum etc. Dr. Son is also the author of various book titles about policy, agricultural economy and community development. 28

29 OUR PEOPLE BOARD OF MANAGEMENT Ms. Nguyen Tra My CEO (and Vice Chairwoman) Ms Nguyen Thi Tra My born in 1970 in Hanoi, has 18 years of experience working for Biomin, an Austrian Multinational Corporation in the agricultural sector as CFO. Ms. Tra My is a co-founder of The PAN Group operating in the agriculture and food business, which transitioned from Pan Pacific Corp, a company provides industrial cleaning services. She is also the Founder and Chairwoman of CSC Vietnam, a major shareholder of PAN. Tra My holds a Master of Business Administration degree from Shidler College of Business, University of Hawaii, where she received the Hall of Honor Awards in 2016, and completed the Business Leaders Mindset course at Harvard University. Mr. Nguyen Khac Hai Nguyen Khac Hai is the Deputy CEO of The PAN Group, a leading Agriculture and Food Group in Vietnam. Prior to joining the PAN Group, He was Deputy CEO of SSI Asset Management (SSIAM), a prestigious and leading asset manager in Vietnam. From 2007 to 2010, he was Director of Legal and Compliance of SSIAM. Prior to joining SSIAM, Mr. Hai worked for Bank for Foreign Trade of Vietnam as a senior legal counsel. He has also been member of Board of Directors of a number of listed companies In Vietnam including Vinaseed (NSC), Bibica Corporation (BBC), Aquatex Bentre (ABT) and ELCOM (ELC). Mr. Hai's expertise is in finance and banking, particularly finance and banking laws. He has extensive knowledge and experience in advising and structuring deals for leading securities companies, fund managers, financial institutions as well as policy makers. He also has deep experience and expertise in managing and helping restructure leading agriculture and food companies in Vietnam. Mr. Hai studied in Japan and completed a LL.M on Comparative Law at Nagoya University Mr. Hai also holds a BA in Business Law from Hanoi National Economics University. Mr. Nguyen Trung Anh Mr. Anh received an engineering degree in food technology from the Hanoi University of Technology. After his BSc, he obtained a summa cum laude Master degree and Doctoral degree in Bio-science engineering from the Catholic University of Leuven (Belgium). After his PhD, Trung Anh worked for the Flanders Centre of Postharvest Technology that provides consultancies to the horticulture sector of Belgium and France. In April 2007 he joined Fresh Studio Innovations Asia (Vietnam) working as a senior consultant and then a project leader. After Fresh Studio, he worked for a Dutch trading firm - The Fruit Republic as a Sales Executive ( ). He was responsible for developing the market in the North of Vietnam. Trung Anh also worked as a Sustainable Markets Senior Advisor for the Netherland Development Organization (SNV). He is responsible for managing a Sustainable Coffee Program to expand sustainable coffee production in Vietnam through application of agriculture sustainability standards, as well as improved access to markets and services. Trung Anh has recently completed a Masters of Business Administration and is now R&D director of the PAN group. 29

30 CEOs OF MEMBER COMPANIES Ms. Tran Kim Lien Chairwoman & CEO of NSC Ms. Lien holds bachelor degree in Economy and Law. She has been working at NSC a member of our Seed Platform from 2000 and now is the Chairwoman cum CEO of the company. Under Ms. Lien s management, NSC has improved significantly and achieved surprisingly high growth for the last year. Ms. Lien is one the most experienced leaders in Vietnam agri-business. Before joining NSC, she had many years working at Dong Giao Industrial Agriculture enterprise and after that Vietnam Vegetable Corporation. Mr Truong Phu Chien Chairman and CEO of BBC Mr Chien holds a Bachelor Degree in Economics with many years of management experience at Bibica. From 1997 to 1999, he was the Import-Export Manager at Bien Hoa Suger Company. From 1999 to 2000, he was the Import-Export Manager of Bibica. From 2000 to 2003: Manager of Supply Moderation. As of now, he is the Chairman and CEO of the company. Mr. Nguyen Hoang Anh Acting CEO of SSC Mr. Nguyen Hoang Anh has held the position of Acting CEO of Southern Seed Corporation (SSC) since May Mr. Hoang Anh has extensive experience in operating and managing production and business of seeds and agri inputs. Up to now, he has spent 13 years with SSC as Director of Seed Research Center and Deputy CEO. Mr. Hoang Anh had also held the position of Deputy CEO of Vietnam - US Fertilizer JSC (AVF). Mr. Hoang Anh holds a bachelor in Agronomy, Business Finance and a Master of Business Administration. 30

31 CEOs OF MEMBER COMPANIES Mr Ho Quoc Luc Chairman and CEO of Fimex VN Mr. Ho Quoc Luc was born in 1956 and graduated in University of Economics Ho Chi Minh city in After 3-year military duty, he joined aquaculture industry in He has taken from the lowest to the highest positions in shrimp business companies (deputy department, head of department, chief accountant, deputy CEO, CEO). Mr. Luc received Master and Doctor of Economics degree at University of Economics Ho Chi Minh city. With a long-term effective contribution, he was awarded The Labor Hero by Vietnamese President. Mr Dang Kiet Tuong Chairman and CEO of ABT Mr Tuong worked at Aquatex Ben Tre since 1986 as key personnel such as Deputy Manager of Business Operation ( ), Manager of Business Operation ( ), Deputy Director ( ), Director ( ). From 2004 til now, he is the Chairman and CEO of the company. Mr Tuong, with many years of experience in the industry, has contributed significantly to the success of the company. Mr. Nguyen Quoc Hoang, CEO of PAN Food and PAN Food Manufacturing Mr. Hoang holds Bachelor degree of Chemical Engineering Technology in Food. Prior to joining PF and PFM, Mr. Hoang was Vice General Director of Production at BIBICA since Jan Mr. Hoang has 20 years of experiences in Confectionary. He is an expert in planning, project implementing. He created the fundamentals and managed the whole production process of Bibica. Mr. Phan Ngoc Son CEO of LAF Mr. Son born in 1964, holds Bachelor degree in Physics and Economics Management and has extensive experience with various position in different companies. From 1989 to 1992, Mr. Son worked as an Import Export Executive for Khanh Hoa Import Export Corporations. From 1993 to 1994, he was Branch Director in Hanoi of Khanh Hoa Beer Corporation. From 1995 to 2003, Mr. Son joined Khanh Hoa Trading and Investment Corporation as Head of Business Investment. From 2004 to 2008, he took the position of Director for Tan Viet JSC. Khanh Hoa Hotel 31

32 THANK YOU!