Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Frozen Products PCL — FY2012 Earnings Presentation
39 slides from Thai Union Group Public's earnings presentation, March 2013
Slide 1: Thai Union Frozen Products 2012 Results Presentation
THAI UNION FROZEN PRODUCTS The World‘s Seafood Expert 2012 Results Presentation March 2013
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: 2012 SAA's Best CEO & Best IRO Awards
2012 SAA’s Best CEO & Best IRO Awards “Mr. Thiraphong Chansiri, President of Thai Union Frozen Products PCL.(TUF), received the Best CEO Award for the Agriculture and Food Industries from the Securities Analysts Association of Thailand (SAA). He has won this award for four years consecutively since
Slide 4: Agenda
Agenda 1. 2012 Recap 2. Company Overview 3. 2012 Financial Results 4. 2013 Guidance 5. Focus: Acquisitions – Past & Present The World's Seafood Expert
Slide 5: 2012 Recap
2012 Recap Feb 2012: Fire incident at shrimp plant located in Samutsakorn province limited TUF’s shrimp Fire Incident processing capacity. All damages was fully covered by insurance. The production was shut down for 2 months before relocating the operations to a rented factory nearby. Recapitalizati
Slide 6: Agenda
Agenda 1. 2012 Recap 2. Company Overview 3. 2012 Financial Results 4. 2013 Guidance 5. Focus: Acquisitions – Past & Present The World's Seafood Expert
Slide 7: More Than 30 Years of Seafood Processing Experience
More Than 30 Years of Seafood Processing Experience Acquired Acquired the Invested in Founded Strategic Set up Acquired Invested in Chicken of the remaining shares Pakfood Thai Union Partnership with Chicken of the 4 fishing vessels Avanti Feeds Sea International of COSI PCL Manufacturing Mitsubishi
Slide 8: Group Structure
Group Structure Thai Union Frozen Products TUF Frozen & canned seafood, pet food, snack and ready-to-eat meals Group 1 Group 2 Group 3 Group 5 Frozen and canned seafood Packaging products Animal feeds and aquaculture Overseas investment Thai Union TUM Asian Pacific Can APC Thai Union TFM Thai Union
Slide 9: Tuna and Shrimp Remaining Our Core Business
Tuna and Shrimp Remaining Our Core Business 2012 Strategic Business Sales breakdown Product Range Brand THB 106,698 million Group Canned tuna Tuna Frozen tuna loin Shrimp and Frozen shrimp 49% related Shrimp feed business1 Sardine Canned sardine & & Mackerel Mackerel Salmon Salmon 23% 6% Pet food Pe
Slide 10: Global Market Leading Brands
Global Market Leading Brands • TUF’s portfolio includes Global Market Leading Brands the world’s leading canned and frozen #1 seafood companies, • #1 canned seafood brand in UK, Ireland and which operate across Netherlands numerous markets globally #1 • #1 canned seafood brands in France #1 • #1 can
Slide 11: #1 Global Leader in A Raising Consumer Business
#1 Global Leader in A Raising Consumer Business World Canned Tuna Production Global Seafood Consumption2 (Million tons) (Million tons) (Annual production1 = 1.67 million tons) TUF 18% Growth : 2.7% 130.8 128.3 123.6 119.7 117.3 Others 114.3 82% 2006 2007 2008 2009 2010 2011 TUF is world’s largest ca
Slide 12: 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 and Other seafood • 8 Own fishing vessels with capacity • Can and printing • 9 Facilities in 8 countries • 8 Brands of 44,440 tons p
Slide 13: Tuna and Shrimp Remained Core Business
Tuna and Shrimp Remained Core Business Sales Breakdown by Product 2012 Sales Breakdown by Business 2011 2012 THB 98,670 million THB 106,698 million 13% 13% Other Brands Tuna 49% 49% Brand 41% 7% OEM 8% 59% Shrimp & related 24% 23% 13% business1 Sardine & 6% Mackerel 5% Salmon 5% 4% Pet food 7% 7% •
Slide 14: A Well Diversified Market Portfolio
A Well Diversified Market Portfolio 2011 2012 Middle East South America Middle Asia East Asia 2% 1% Canada South 2% Canada Australia 2% 3% 1% America Africa 1% 1% 3% 3% Australia Africa 3% 5% Domestic USA Japan USA 10% 36% 9% 36% Japan Domestic 10% 10% Europe Europe 32% 30% Total sales : THB 98,670
Slide 15: The Rising Trend Of Raw Material Prices
The Rising Trend Of Raw Material Prices Skipjack tuna raw material prices White shrimp raw material prices (USD/ton) (THB/kg. of 60 pcs./kg) 163 2,500 2,195 180 (Feb’13) (Feb’13) 160 2,000 140 120 1,500 100 80 1,000 60 40 500 20 0 0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-09 Jan-10 Jan-11 Jan-12 Jan-
Slide 16: Share Capital Information
Share Capital Information Stock Information Major Shareholders (As of 3 Jan 2013) Bloomberg/ Reuters TUF TB/ TUF.BK Chansiri Family 24.26% Share price (28 Feb 2013) : THB 67.00 Niruttinanon Family 7.49% Historical price : Mitsubishi Corporation 7.58% 52-week high THB 78.00 Thai NVDR Co., Ltd. 4.09%
Slide 17: Agenda
Agenda 1. 2012 Recap 2. Company Overview 3. 2012 Financial Results 4. 2013 Guidance 5. Focus: Acquisitions – Past and Present The World's Seafood Expert
Slide 18: A Year of Challenges with Earnings Stumbled in 4Q12
A Year of Challenges with Earnings Stumbled in 4Q12 Financial Summary1 Reported net profit (THB million) drop 8% from 2011 Total Sales 2012 2011* 106,698 98,670 +8% THB 4,694 million Gross Profit 2012 16,362 Q1’12 -0.3% Share price growth 2011* 16,417 Q1’11 20112 20122 2012 9,823 (Jan-Dec 11) (Jan-
Slide 19: Another Year of Record Sales
Another Year of Record Sales Quarterly sales Yearly sales (THB million and USD million) (THB million and USD million) +1.2% YoY +8.1% YoY -7.1% QoQ 98,670 106,698 THB million Value-added & 28,327 other products2 THB million 26,758 26,309 Pet food 26,000 25,304 Salmon Value-added & other products2 Sa
Slide 20: Sardine & Mackerel Showed the Strongest Growth in 2012
Sardine & Mackerel Showed the Strongest Growth in 2012 Revenue growth component (THB million) + 2,258 106,698 +24% + 729 + 1,579 - 102 +11% + 3,656 - 93 +30% -2% -0% +8% 98,670 FY11 Shrimp & Value-added FY12 Sardine & Tuna related Salmon Pet food & other Mackerel business1 products2 Remark : 1Shrimp
Slide 21: 4Q12 Dampened GPM from Loss in USPN, Rising Tuna Raw Material Prices
4Q12 Dampened GPM from Loss in USPN, Rising Tuna Raw Material Prices, Strong THB and EMS Quarterly GP and GPM Yearly GP and GPM (THB million) (THB million) 16.6% 17.2% 16.9% 16.8% 15.3% 15.7% Gross profit -0.3% YoY margin (%) 13.3% Gross profit -29.7% YoY margin (%) 16,417 16,362 -31.1% QoQ 11.6% 4,
Slide 22: Dented EBITDA from Lower GPM
Dented EBITDA from Lower GPM Quarterly EBITDA and EBITDA margin Yearly EBITDA and EBITDA margin (THB million) (THB million) 11.1% 10.3% 10.0% 9.8% 9.7% 9.2% EBITDA EBITDA margin (%) 8.3% margin (%) -3.3% YoY -37.9% YoY -43.8% QoQ 10,153 9,823 2,815 2,780 2,666 2,515 5.9% 5,963 1,562 4Q11* 1Q12 2Q12
Slide 23: Lower Earnings from Challenges
Lower Earnings from Challenges Quarterly NP and NPM Yearly NP and NPM (THB million) (THB million) 5.8% 5.1% 5.7% 5.6% 4.8% 4.4% Net profit 4.0% margin (%) Net profit -0.3% YoY margin (%) 3.7% -8.3% YoY -60% YoY 5,117 5,101 -62% QoQ 4,694 2.3% 1,613 1,532 1,467 2,874 1,001 612 4Q11* 1Q12 2Q12 3Q12 4Q
Slide 24: Capital Increase Lowering Gearing
Capital Increase Lowering Gearing ROE1 ROA2 A/R Turnover (Days) 40 38 23% 11% 37 9% 9% 15% 15% FY10 FY11* FY12 FY10 FY11* FY12 FY10 FY11* FY12 Inventory Turnover Gearing Ratio3 ND/E Ratio4 (Days) (Times) (Times) 119 1.57x 108 1.43x 104 2.22x 2.07x 0.83x 1.35x FY10 FY11* FY12 FY10 FY11* FY12 FY10 FY1
Slide 25: 2012 Financial Position Summary
2012 Financial Position Summary Sales Margin Gross Profit Products (THB million) (%) (THB million) Tuna 52,147 x 14.83% 7,731 Shrimp & x related 24,072 12.06% 2,902 Gross Profit business1 Sardine & x THB 16,362 million 6,780 14.12% 958 Mackerel Salmon 4,790 x 12.39% 593 Pet food 7,175 x 10.17% 730 V
Slide 26: 2012 Income Statement
2012 Income Statement Consolidated % to % to 2012/ 2011* % to % to 4Q12/4Q11* (Million baht) 2012 2011* 4Q12 4Q11* sales sales Change sales sales Change Sales 106,698 100.0% 98,670 100.0% 8.1% 26,309 100.0% 26,000 100.0% 1.2% Cost of sales (90,336) -84.7% (82,253) -83.4% 9.8% (23,249) -88.4% (21,645
Slide 27: 2012 Statement of Financial Position
2012 Statement of Financial Position Consolidated % to total % to total (Million baht) 2012 2011* Change assets assets Cash and cash equivalents 1,400 1.5% 903 1.1% 55.1% Trade and other receivables 11,918 12.6% 11,161 13.4% 6.8% Inventories - net 33,290 35.1% 26,180 31.4% 27.2% Other current assets
Slide 28: Agenda
Agenda 1. 2012 Recap 2. Company Overview 3. 2012 Financial Results 4. 2013 Guidance 5. Focus: Acquisitions – Past and Present The World's Seafood Expert
Slide 29: 2013 Guidance
2013 Guidance FY 2013 Sales 15% growth to USD 4bn • Growth from tuna, sardine & mackerel and pet food • Expect shrimp business to turn around in 2H13 assuming easing EMS problem Gross profit margin 16% range target SG&A 9% of sales Effective interest rate c.5% Effective tax rate c.10% CAPEX THB 6bn
Slide 30: Outlook
Outlook 2012 2015 2013 - 2014 Sales: Sales: USD 3.4 billion ~15% growth annually USD 5 billion Organic growth : Intensive R&D and New Market Expansion Acquisition Tuna & Shrimp Sardine Pet food Local Products* • Continue synergistic acquisition across the • Maintain leadership • Significant growth i
Slide 31: Marketing and Distribution
Marketing and Distribution Strengthen Existing Brands and Expand to New Market North America - USPET Europe – MW Brands South East Asia - Sealect Myanmar Vietnam Laos Ireland UK Thailand Philippines Netherlands Cambodia France Georgia Italy plant Malaysia Brunei Singapore Indonesia • Plant in Georgi
Slide 32: Agenda
Agenda 1. 2012 Recap 2. Company Overview 3. 2012 Financial Results 4. 2013 Guidance 5. Focus: Acquisitions – Past and Present The World's Seafood Expert
Slide 33: TUF's Story of Growth: Organic Expansion and Acquisitions
TUF’s Story of Growth: Organic Expansion and Acquisitions Acquired Acquired the Set up Invested in Founded Strategic Acquired Invested in Chicken of the remaining shares Chicken of the Pakfood Thai Union Partnership with 4 fishing vessels Avanti Feeds Sea International of COSI Sea Frozen PCL Manufac
Slide 34: Acquisitions Enhancing Corporate Strength By Filling Gaps Within the Value Chains
Acquisitions Enhancing Corporate Strength By Filling Gaps Within the Value Chains of Key Product Categories Upstream business: Midstream business- Downstream business Raw Material Acquisition & Branding / Distribution Processing Other Support Industries Empty Can Fishing Processing Canning Consumer
Slide 35: Acquisition History
Acquisition History (Entities considered for accounting consolidation only) Year 1997 & 2001 1998 2003 2006 & 2011 rd Acquired the 3 largest canned Acquired 90% of Songkla Acquired 100% of Empress Acquired 76.5% (now seafood manufacturer in the US, Canning International (now merged 88.78%) of PT Jui
Slide 36: Acquisition History (Con't)
Acquisition History (Con’t) (Entities considered for accounting consolidation only) Year 2007 2008 2010 2012 Acquired a fishing fleet Acquired 51% of Yuen Chyang Acquired 100% of MW Acquired 49.97% of • 4 fishing vessels Canned Food thru Songkla Brands (one of the largest Pakfood PCL. (one of the Tr
Slide 37: TUF Acquisition Criteria
TUF Acquisition Criteria • Since its listing in 1994, TUF Key Principles has acquired companies across the globe. Besides acquisition of some mid and upstream Strategic Fit • The target should be a seafood-related business, either serving TUF’s need for market expansion or filling in the businesses,
Slide 38: Acquisition Opportunities?
Acquisition Opportunities? Tuna Shrimp Sardine/ Mackerel Pet Food Emerging growth markets Further integrating the Leading brands / Emerging premium in LatinAm / Northern and TUF’s local supply chain distribution channels in segment in the US Eastern Europe Potential expansion in the emerging growth
Slide 39: Thank You
THANK YOU www.thaiuniongroup.com
Thai Union Frozen Products PCL — FY2012 Earnings Presentation on 6ix