Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Frozen Products — FY2013 Earnings Presentation
31 slides from Thai Union Group Public's earnings presentation, Feb 24, 2014
Slide 1: Thai Union Frozen Products 2013 Results Presentation
THAI UNION FROZEN PRODUCTS The World‘s Seafood Expert 2013 Results Presentation 24 February 2014
Slide 2: Disclaimer
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are base
Slide 3: Agenda
Agenda 1. 2013 Recap 2. Company Overview 3. 2013 Financial Results 4. 2014 Guidance The World's Seafood Expert
Slide 4: 2013 Recap
2013 Recap Further Investment February – October: Increased an investment in Pakfood (PPC) and conducted the tender offer for in PPC to 77.06% securities of PPC for delisting in compliance with the SET’s regulations. Started to consolidate PPC books in March 2013. Feb 2013 March June July 29 Aug-31
Slide 5: Recent Developments
Recent Developments Jan 2014: TRIS maintained the company rating and issue ratings at “AA-/Stable” Rating Rationale: TRIS Rating affirmed the company and senior debenture ratings of Thai Union Frozen Products PLC (TUF) at “AA-”. The ratings reflect TUF’s strong market position as one of the world’
Slide 6: Agenda
Agenda 1. 2013 Recap 2. Company Overview 3. 2013 Financial Results 4. 2014 Guidance The World's Seafood Expert
Slide 7: More than 35 Years of Seafood Processing Experience
More than 35 Years of Seafood Processing Experience Acquired Acquired the Set up Acquired Invested in Founded Strategic Chicken of the Invested in remaining Chicken of the 4 fishing Pakfood Thai Union Partnership with Sea Avanti Feeds shares of COSI Sea Frozen vessels in PCL Manufacturing Mitsubishi
Slide 8: Group Structure
Group Structure Thai Union Frozen Products TUF Associated Companies Frozen & canned seafood, pet food, snack and ready-to-eat meals Group 1 Group 2 Group 3 Group 4 Group 5 Frozen and Canned Seafood Packaging Products Animal Feeds and Aquaculture Thai Domestic Market Overseas Investment Thai Union TU
Slide 9: Tuna and Shrimp Remaining Our Core Business
Tuna and Shrimp Remaining Our Core Business 2013 Strategic Business Sales breakdown Product Range Brand THB 112,813 million Group Canned tuna Tuna Frozen tuna loin Shrimp and 47% Frozen shrimp related Shrimp feed business1 Sardine Canned sardine & & Mackerel Mackerel Canned and frozen 25
Slide 10: Fully Integrated and Globally Diversified Supply Chain
Fully Integrated and Globally Diversified Supply Chain Raw Material Acquisition Production Marketing Can & Label Marketing Fisheries Processing Canning Production Tuna • 7 own fishing vessels with capacity of • Empty can and • 8 locations in 7 countries • 8 Brands 39,000 tons per year printing facto
Slide 11: Global Market Leading Brands
Global Market Leading Brands • TUF’s portfolio Global Market Leading Brands includes the world’s leading canned and #1 frozen seafood •#1 canned seafood brand in the UK, Ireland and the Netherlands companies, which operate across numerous markets #1 globally •#1 canned seafood brands in France #1 •
Slide 12: Higher Contribution from Shrimp & Related Business
Higher Contribution from Shrimp & Related Business Sales Breakdown by Product 2013 Sales Breakdown by Business 2012 2013 THB 106,698 million THB 112,813 million 13% Other Brands 48% 47% Tuna Brand 41% 7% 8% OEM 59% Shrimp & related 23% 25% 13% business1 Sardine & Mackerel 7% 6% Salmon 4% 4% Pet food
Slide 13: More Contribution from US Market
More Contribution from US Market 2012 2013 Middle East 3% Middle Canada South South America 1% East 3% Asia America 1% 4% 1% Africa 5% Asia 3% Canada 1% Australia Australia 3% 3% Africa 3% Japan USA 7% USA Domestic 10% 36% Domestic 42% 7% Japan 9% Europe Europe 30% 30% Total sales : THB 106,698 mill
Slide 14: Share Capital Information
Share Capital Information Stock Information Major Shareholders (As of 28 Aug 2013) Bloomberg/ Reuters TUF TB/ TUF.BK Chansiri Family 22.59% Share price (21 Feb 2014) : THB 67.50 Niruttinanon Family 7.49% Historical price : Mitsubishi Corporation 7.58% 52-week high THB 71.75 Thai NVDR Co., Ltd. 6.93%
Slide 15: Agenda
Agenda 1. 2013 Recap 2. Company Overview 3. 2013 Financial Results 4. 2014 Guidance The World's Seafood Expert
Slide 16: Surviving the Perfect Storm
Surviving the Perfect Storm Financial Summary Quarterly GP and GPM (THB million) (THB million and %) 14.8% Total Sales 13.9% 2012 106,698 12.4% 11.6% 10.9% 12.9% +6% 2013 112,813 3,060 2,665 3,976 4,558 3,496 4,085 Gross Profit 16,362 2012 -13% 2013 14,222 4Q12 1Q13 2Q13 3Q13 4Q13 4Q13* Quarterly OP
Slide 17: Agenda
Agenda 1. 2013 Recap 2. Company Overview 3. 2013 Financial Results 4. 2014 Guidance The World's Seafood Expert
Slide 18: 6 Strategic Business Units of TUF
6 Strategic Business Units of TUF 2013 Sales breakdown THB 112,813 million 1 Tuna 2 Shrimp and related business1 3 4 5 6 47% Frozen Sardine & Salmon Pet Food Value-added and OEM Mackerel other products2 shrimp Shrimp feed 53% 77% Brand 82% 41% 45% 99% 23% - 59% 55% 1% 100% 18% % Sales 47% 22% 3% 6%
Slide 19: New Sales Record
New Sales Record Quarterly sales Yearly sales (THB million and USD million) (THB million and USD million) +17.0% YoY +5.7% YoY +4.5% QoQ 112,813 29,464 30,788 106,698 THB million THB million Value-added & 28,119 Value-added & other products2 26,309 other products2 24,441 Pet food Pet food Salmon Sal
Slide 20: Shrimp & Related Business Showed the Strongest Growth
Shrimp & Related Business Showed the Strongest Growth Revenue growth component (THB million) + 4,096 - 1,053 + 257 112,813 + 826 -14% - 250 +12% +2% -5% +17% + 2,239 +4% 106,698 FY12 Shrimp & Value-added FY13 Sardine & Tuna related Salmon Pet food & other Mackerel business1 products2 Remark : 1Shrim
Slide 21: GPM Excluding One-Offs Showed Recovery Sign Since 3Q13
GPM Excluding One-Offs Showed Recovery Sign Since 3Q13 Quarterly GP and +29.9%GPM YoY Yearly GP and GPM (THB million) (THB million) +29.9% YoY -13.1% YoY -2.7% QoQ 14.8% 13.9% 15.3% 12.9% Gross profit Gross profit 12.4% margin (%) margin (%) 11.6% 13.1% 10.9% 16,362 12.6% 14,805 4,558 14,222 4,085 3
Slide 22: Dampened EBITDA YoY from Lower GPM and FX Gain
Dampened EBITDA YoY from Lower GPM and FX Gain Quarterly EBITDA and EBITDA margin Yearly EBITDA and EBITDA margin (THB million) (THB million) +44.8% YoY -19.9% YoY -6.3% QoQ 9.2% 8.2% 7.1% EBITDA 9,823 EBITDA 7.3% margin (%) 7.0% margin (%) 5.9% 2,413 7,867 5.2% 2,260 1,730 1,562 1,463 4Q12 1Q13 2Q1
Slide 23: Recovery in 2H13 Amid Full Year of Challenges
Recovery in 2H13 Amid Full Year of Challenges Quarterly NP and NPM Yearly NP and NPM (THB million) (THB million) -39.2% YoY +33.1% YoY -18.8% QoQ 4.4% 3.4% 2.7% Net profit 4,694 Net profit 2.6% margin (%) margin (%) 2.3% 2.5% 1.3% 2,853 1,004 815 612 674 359 4Q12 1Q13 2Q13 3Q13 4Q13 FY12 FY13 • 4Q13
Slide 24: High RM Prices During the Year Slowed Turnover and Raised Leverage
High RM Prices During the Year Slowed Turnover and Raised Leverage ROE1 ROA2 A/R Turnover (Days) 23% 11% 40 9% 15% 38 6% 7% 37 FY11 FY12 F13 FY11 FY12 FY13 FY11 FY12 FY13 Inventory Turnover Gearing Ratio3 ND/E Ratio4 (Days) (Times) (Times) 1.43x 128 119 104 2.07x 0.96x 1.50x 0.83x 1.35x FY11 FY12 FY
Slide 25: 2013 Financial Position Summary
2013 Financial Position Summary Sales Margin Gross Profit Products (THB million) (%) (THB million) Tuna 53,366 x 12.46% 6,648 Shrimp & x related 28,167 9.53% 2,684 Gross Profit business1 Sardine & x THB 14,222 million 6,465 14.69% 949 Mackerel Salmon 4,541 x 13.87% 629 Pet food 8,002 x 5.07% 406 Val
Slide 26: 2013 & 4Q13 Income Statement
2013 & 4Q13 Income Statement Consolidated % to % to 2013/ 2012 % to % to 4Q13/4Q12 (Million baht) 2013 2012 4Q13 4Q12 sales sales Change sales sales Change Sales 112,813 100.0% 106,698 100.0% 5.7% 30,788 100.0% 26,309 100.0% 17.0% Cost of sales (98,590) -87.4% (90,336) -84.7% 9.1% (26,812) -87.1% (2
Slide 27: 2013 Statement of Financial Position
2013 Statement of Financial Position Consolidated % to total % to total (Million baht) 2013 2012 Change assets assets Cash and cash equivalents 1,621 1.5% 1,400 1.5% 15.8% Trade and other receivables 13,948 12.9% 11,918 12.6% 17.0% Inventories - net 36,917 34.1% 33,290 35.1% 10.9% Other current asse
Slide 28: 59.9% Payout For 2013 Performance
59.9% Payout For 2013 Performance Interim dividend for the period: 1 Jul 13 to 31 Dec 13 DPS THB 0.89 XD 6 Mar 2014 Book closing date 11 Mar 2014 Payment date 18 Apr 2014 THB/Share 2.50 70% 59.9% 51.3% 60% 53.5% 2.00 50.1% 50.4% 50.6% 50.7% 50.0% 50% 1.50 40% 29.4% 30% 1.00 20% 0.50 10% 0.00 0% 2005
Slide 29: Agenda
Agenda 1. 2013 Recap 2. 2013 Key Highlights 3. 2013 Financial Results 4. 2014 Guidance The World's Seafood Expert
Slide 30: 2014 Guidance
2014 Guidance FY 2014 Sales USD 4 billion GPM At least 14% SG&A 9% of sales Effective interest rate 4% - 5% Effective tax rate c.10% - 15% CAPEX Approximately THB 3.5 billion Dividend policy At least 50% dividend payout The World's Seafood Expert 29
Slide 31: Thank You
THANK YOU TUF Investor Relations 979/12 M Floor, S.M. Tower, Phaholyothin Road, Phayathai, Bangkok 10400 Thailand Tel: +66 2298 0024; Fax: +66 2298 0342 E-mail: [email protected] Corporate website: http://www.thaiuniongroup.com IR website: http://www.thaiuniongroup.com/investor
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