Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Frozen Products — Investor Presentation (February 2012)
34 slides from Thai Union Group Public's investor presentation, Feb 22, 2012
Slide 1: Thai Union Frozen Products 2011 Investor Presentation
THAI UNION FROZEN PRODUCTS 2011 Investor Presentation 22 February 2012
Slide 2: Company highlights – Record earnings with 77% growth
Company highlights – Record earnings with 77% growth Financial Summary1 Record earnings, (THB million) up 77% Total Sales 2011 98,670 +38% THB 5,075 million 2010 71,507 Gross Profit 2011 16,369 Share price growth +72% 2010 9,531 20112 20122 (Jan-Dec 11) (Jan-Feb 12) EBITDA 2011 10,105 12.5% 19.2% +7
Slide 3: Agenda
Agenda 1. Company overview 2. 2011 Financial results 3. Focus: MW Brands 4. Outlook and strategy
Slide 4: More than 30 Years of Seafood Processing Experience
More than 30 Years of Seafood Processing Experience Acquired Acquired the Founded Strategic Set up Acquired Acquired Acquired Chicken of the remaining shares Thai Union Partnership with Chicken of the 4 fishing vessels Avanti Feeds Pakfood Sea International of COSI Manufacturing Mitsubishi Corp sea
Slide 5: 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 6: Introduction to TUF
Introduction to TUF A Global branded tuna and seafood company Revenue: THB 98,670 million, EBITDA: THB 10,105 million Tuna Frozen Shrimp Local Seafood1 Pet food shrimp feed products2 % Sales 48% 16% 19% 5% 7% 5% Remark: 1Seafood includes salmon, sardine/mackerel, cephalopod and other canned seafood
Slide 7: #1 Global leader in raising consumer business
#1 Global leader in raising consumer business World production of canned tuna Global seafood consumption2 (Million tons) (Million tons) (Annual capacity1 = 1.58 million tons) Growth : 2.4% 117.8 115.1 112.7 110.7 107.3 TUF 104.4 19% 2004 2005 2006 2007 2008 2009 Others Revenue growth across all geog
Slide 8: 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 • 9 Own fishing vessels with capacity • Can and printing • 10 Facilities1 in 8 countries • 8 Brands2 of 44,440 ton
Slide 9: Agenda
Agenda 1. Company overview 2. 2011 Financial results 3. Focus: MW Brands 4. Outlook and strategy
Slide 10: Major source of revenue from tuna and branded products
Major source of revenue from tuna and branded products 2011 Revenue by product 2011 Revenue by OEM/ Brand Total revenue: THB 98,670 million Total revenue: THB 98,670 million Local products2 2% 5% Pet food 10% Local 7% Products Seafood1 10% 16% Tuna OEM 48% Brand 48% 11% 52% Shrimp feed Frozen 5% Shr
Slide 11: Revenue breakdown by region
Revenue breakdown by region Revenue by region (USD million) 3,232 +7% 1% Canada +18% 1% South America +68% 2% Middle East +35% 3% Asia +30% 3% Australia -5% 3% Africa +24% 10% Japan 2,268 +16% 10% Domestic 1% 1% 2% 3% 3% 4% 12% +190% 32% Europe 12% 16% • Revenue from USA and Europe accounted for 36%
Slide 12: Revenue increases 38% YoY to THB 98,670 million
Revenue increases 38% YoY to THB 98,670 million Quarterly revenue Annual revenue (THB million and USD million) (THB million and USD million) +26% YoY1 +38% YoY1 +4% QoQ1 3,232 +4% YoY1 98,670 837 821 831 5% Local products 26,000 743 24,860 25,105 7% Pet food USD million 687 Local products 2,268 22,7
Slide 13: Tuna showed the most significant growth for 2011
Tuna showed the most significant growth for 2011 Revenue growth component (USD million) + 19 + 35 3,232 + 12 + 155 + 109 10% 26% 8% 42% + 634 22% 70% 2,268 FY10 Tuna Frozen Shrimp Seafood1 Pet food Local FY11 Shrimp Feed products2 Remark : 1Seafood include salmon, sardine/mackerel, cephalopod and ot
Slide 14: Significant improvement in gross profit margin to 16.6%
Significant improvement in gross profit margin to 16.6% Quarterly GP and GPM Annual GP and GPM (THB million) (THB million) 16.6% Gross profit 17.4% 17.3% 15.1% margin (%) 16.7% 13.3% Gross profit 14.8% 72% YoY margin (%) 0.02% QoQ 16,369 11.8% 4,326 4,344 4,344 10,444 3,355 9,531 2,440 Q4 '10 Q1 '11
Slide 15: EBITDA increases 70% YoY, with 10.2% EBITDA margin
EBITDA increases 70% YoY, with 10.2% EBITDA margin Quarterly EBITDA and EBITDA margin Annual EBITDA and EBITDA margin (THB million) (THB million) 11.7% 10.2% 11.4% EBITDA margin (%) 8.6% 9.6% 8.3% EBITDA 70% YoY -15% QoQ margin (%) 8.0% 10,105 2,834 2,945 5.8% 2,503 5,960 5,950 1,822 1,192 Q4 '10 Q1
Slide 16: Net profit increases 77% YoY, with NPM of 5.1%
Net profit increases 77% YoY, with NPM of 5.1% Quarterly Net profit and Net profit margin Annual NP and NPM (THB million) (THB million) 6.2% 5.8% 5.1% 4.8% Net profit Net profit margin (%) margin (%) 4.9% 4.0% 77% YoY -0.03% QoQ 5,075 3.3% 1,561 1,523 1,238 3,344 2,874 1.7% 753 352 Q4 '10 Q1 '11 Q2
Slide 17: Positive trends for all other key ratios
Positive trends for all other key ratios ROE ROA1 A/R Turnover (Days) 13% 40 22% 22% 11% 9% 37 14% 36 FY09 FY10 FY11 FY09 FY10 FY11 FY09 FY10 FY11 Inventory Turnover Gearing Ratio2 ND/E Ratio3 (Days) (Times) (Times) 108 1.57x 107 1.44x 2.22x 2.07x 103 0.63x 0.95x FY09 FY10 FY11 FY09 FY10 FY11 FY09 F
Slide 18: Well-managed debt profile and continuous deleveraging
Well-managed debt profile and continuous deleveraging Debt profile Long-term debt repayment plan Total interest-bearing debt: THB 39,766 million Total long-term debt: THB 25,289 million 2012 USD 17% 4% 2013 Short-term1 36% 8% EUR 31% 2% Current portion After 2014 2015 30% 51% Long-term2 62% THB 52%
Slide 19: Continuously decline in ND/E level from debt repayment
Continuously decline in ND/E level from debt repayment Debt repayment and expected ND/E1 1.57 1.44 1.22 1.03 1.20 0.68 0.59 0.98 38.9 Expected 2.4 36.4 ND/E range2 0.60 (time) Net interest- 0.47 bearing debt3 (THB billion) 2010 Increase 2011 Repayment 2012 Repayment 2013 Repayment 2014 Repayment 201
Slide 20: 2011 Financial position summary
2011 Financial position summary Revenue Margin Gross profit Products (USD million) (%) (USD million) Tuna 1,546 x 17.4% 269 Gross profit Shrimp 778 x 13.8% 107 Business1 USD 547 million Seafood2 527 x 15.3% 81 Other 382 x 23.4% 90 Products3 Total 3,233 16.9%4 Remark : 1Shrimp Business includes Froze
Slide 21: Balance sheet
Balance sheet Consolidated 2011/ 2010 (Million baht) 2011 2010 change Cash and cash equivalents 903 1,037 -13% Accounts receivable - net 11,161 9,262 +21% Inventories - net 26,132 21,346 +22% Other current assets 1,735 2,315 -25% Total current assets 39,930 33,960 +18% Fixed assets 15,655 14,190 +10
Slide 22: Income statement
Income statement Consolidated (Million baht) 2011/ 2010 Q4’11/ Q4’10 2011 2010 change Q4’11 Q4’10 change Sales 98,670 71,507 +38% 26,000 20,649 +26% Cost of sales (82,301) (61,976) +33% (21,656) (18,209) +19% Gross profit 16,369 9,531 +72% 4,344 2,440 +78% SG&A expenses (8,863) (6,107) +45% (2,425)
Slide 23: Agenda
Agenda 1. Company overview 2. 2011 Financial results 3. Focus: MW Brands 4. Outlook and strategy
Slide 24: Introduction to MW Brands and its supply chain
Introduction to MW Brands and its supply chain Raw Material Acquisition Production Marketing Fisheries Processing Canning Marketing Seychelles Ghana France Portugal Tuna and other seafood • 5 own fishing vessels in Ghana • 4 Production bases in 4 countries • Marketing in 5 countries • 3rd party supp
Slide 25: John West, No. 1 canned tuna brand in 3 countries
John West, No. 1 canned tuna brand in 3 countries John West’s product range Market information and performance Market coverage: Tuna United Ireland Netherlands Kingdom Market size and Market share: 9% 581 Market size1 534 22% 81 (EUR million) 66 39 0% 39 John West’s 1%2 34% 0%2 0%2 34% market share
Slide 26: Petit Navire and H. Parmentier, No. 1 French canned seafood
Petit Navire and H. Parmentier, No. 1 French canned seafood Petit Navire’s product range Market information and performance Tuna Mackerel Market coverage: France Market size and market share: Market size1 7% (EUR million) 773 825 Salads Sardine Petit Navire’s & H.Parmentier’s -1%2 market share 29% 2
Slide 27: Mareblu, well-positioned to gain share in Italy market
Mareblu, well-positioned to gain share in Italy market Mareblu’s product range Market information and performance Market coverage: Tuna in olive oil Tuna steak and Mackerel fillet Italy Market size and market share: Market size1 7% 982 910 (EUR million) Mareblu’s 5% 1%2 6% market share 2010 2011 Tun
Slide 28: Agenda
Agenda 1. Company overview 2. 2011 Financial results 3. Focus: MW Brands 4. Outlook and strategy
Slide 29: 2012 Outlook
2012 Outlook 2011 2015 2012 - 2014 Sales: Sales: USD 3.2 billion ~15% growth annually USD 5 billion Organic growth : Intensive R&D and new market expansion Merger & Acquisition Tuna & Shrimp Seafood1 Local Products2 Pet food • Continue successful acquisition & • Maintain leadership • Significant gro
Slide 30: TUF's Strategies in existing value chain
TUF’s Strategies in existing value chain Sourcing Processing Marketing & Distribution Tuna Seafood1 R&D Support Team Local products2 Secure RM Sourcing New Market Expansion Frozen Shrimp Shrimp Feed Capacity Expansion Pet food Remark : 1Seafood include salmon, sardine/mackerel, cephalopod and other
Slide 31: Sourcing
Sourcing Secure supplies from own fleets and alliance farms Product Tuna and other products Shrimp supply category Own-operated fishing fleets Alliance with local qualified farms Action • Raw materials are acquired from own • Establish long-term relationship with operated fleets in Ghana (10-12% of
Slide 32: Processing
Processing Process reengineer and expand production capacity R&D Support Team Capacity expansion Local Initiative Optimized production Shrimp process and costing TUF PPC Combined Capacity Top 2 (Tons/ day) 220 200 420 Thailand’s biggest player US operation 15-20% market Capacity 80% 50% 66% utilizat
Slide 33: Marketing and Distribution
Marketing and Distribution Strengthen existing brands and expand to new market North America - USPET Europe – MW Brands South East Asia - Sealect Ireland UK Thailand Netherlands France Georgia Italy plant • Expand successful brand to eastern Europe, Scandinavian, Middle-east, and • Strengthen corpor
Slide 34: Thank You
THANK YOU www.thaiuniongroup.com 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
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