Thai Union Group Public Company Limited · SET:TU

Thai Union Group Public — Q1 2015 Earnings Presentation

36 slides from Thai Union Group Public's earnings presentation, May 15, 2015

  1. Slide 1: 1Q15 Results Presentation

    1Q15 Results Presentation 15 May 2015

  2. 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

  3. Slide 3: Agenda

    Agenda  Company Overview  Recent Developments  Key Highlights  1Q15 Financial Results

  4. Slide 4: Agenda: Company Overview

    Agenda  Company Overview  Recent Developments  Key Highlights  1Q15 Financial Results

  5. Slide 5: More than 38 years of seafood processing experience

    More than 38 years of seafood processing experience Strategic Acquired third Expanded to Set up pet Founded Expanded to Entered to Expanded to Expanded partnership largest canned shrimp feed food Thai Union frozen seafood tuna fishing in shrimp farming capacity of with Mitsubishi seafood brand busin

  6. Slide 6: Group Structure

    Group Structure Thai Union Frozen Products Frozen & canned seafood, pet food, snack and ready-to-eat meals Core Branded Business OEM Business Business 100.00% THAI UNION HATCHERY (TUH) 90.50%* 98.00% 51.00%*** 94.44% Supporting TMK FARM CO., LTD. (TMK) Business 75.00% ASIAN PACIFIC CAN THAI UNION GR

  7. Slide 7: Sales breakdown shifted from recent acquisition

    Sales breakdown shifted from recent acquisition Higher contribution from salmon, sardine and shrimp & related business (lobster) but lower contribution from tuna and pet food 1Q15 Sales breakdown THB 28,606 mn 1 Tuna 2 Shrimp and OEM 45% related business1 3 4 5 6 Frozen Sardine & Salmon Pet Food Val

  8. Slide 8: #1 Global leader in a consumer staple business

    #1 Global leader in a consumer staple business TUF is the world’s largest canned tuna producer, with the processing volume 18% of world production. World Canned Tuna Annual Production1 1.67 million tons Others 82% TUF 18% Source: 1Fishstat Plus (FAO) 2010, based on finished product production 7

  9. Slide 9: Global market leading brand portfolio

    Global market leading brand portfolio #1 #1 #1 •#1 canned seafood •#1 canned •#1 premium brand in the UK, Ireland seafood brands canned sardine and the Netherlands in France brand in France #1 #1 #1 •#1 premium canned • #1 canned tuna •#1 canned tuna sardine brand in US, brand in China brand in Thai

  10. Slide 10: Fully integrated global supply chain in canned tuna…

    Fully integrated global supply chain in canned tuna… Raw material flow Work-in-process and finished good flow Raw material sources Europe Production base Fishing fleet USA Thailand Ghana Seychelles West Pacific Ocean Atlantic ocean Vietnam Papua New Guinea Indian ocean TUF’s 7 own fleets Raw Materia

  11. Slide 11: … and frozen shrimp business

    … and frozen shrimp business Production base TUF’s export markets Chicken of the Sea Frozen Europe Food (COSFF) COSFF’s sourcing Asia COSFF’s distribution China Japan USA Thailand India Vietnam Pacific ocean Atlantic ocean Latin America Oceania Indian ocean Raw Material Acquisition Production Market

  12. Slide 12: Share Capital Information

    Share Capital Information Stock Information Major Shareholders Bloomberg/ Reuters TUF TB/ TUF.BK As of 16 Mar 2015 Share price (14 May 2015) : THB 20.50 Historical price : Chansiri Family 52-week high THB 24.50 21.0% 52-week low THB 16.06 No. of paid up shares : 4,771.82mn Niruttinanon Par value : T

  13. Slide 13: Agenda: Recent Developments

    Agenda  Company Overview  Recent Developments  Key Highlights  1Q15 Financial Results

  14. Slide 14: Recent Developments

    Recent Developments Feb 2015: Received IAA Awards for the Best CEO and the Best IR of Food & Agro Sector Mr. Joerg Ayrle, Group CFO (4th from the upper right row) received IAA Award “Best CEO of Food & Agro Sector” for the 6th consecutive year on behalf of Mr. Thiraphong Chansiri, President and CEO.

  15. Slide 15: Recent Developments (Cont'd)

    Recent Developments (Cont’d) Mar 2015: TUF has consecutively won FinanceAsia Best Managed Thai Companies Poll 2015 for multiple times FinanceAsia revealed the 15th annual poll for best managed Thai companies, with the best senior executives and the best policies around dividend payments and other ma

  16. Slide 16: Recent Developments (Cont'd)

    Recent Developments (Cont’d) Apr 2015: Second time “Person of the Year” by IntraFish media This is the first time, IntraFish Media honored an executive for the second time. Three years earlier, Mr. Chansiri was given the IntraFish 2012 Person of the Year. 2015 Person of the Year: “While the expansio

  17. Slide 17: Recent Developments (Cont'd)

    Recent Developments (Cont’d) Apr 2015: EU acts on illegal fishing: Yellow card issued to Thailand The European Commission has put Thailand on a formal notice for not taking sufficient measures in the international fight against illegal, unreported and unregulated (IUU) fishing after a thorough analy

  18. Slide 18: Agenda: Key Highlights

    Agenda  Company Overview  Recent Developments  Key Highlights  1Q15 Financial Results

  19. Slide 19: 1Q15: Solid performance

    1Q15: Solid performance YoY Chg QoQ Chg 28.6 Sales 2.4% -12.7% (THB bn) 13.8% GPM -5.1% -13.3% 1,507 Net profit 58.7% 115.8% (THB mn) 18

  20. Slide 20: A good quarter

    A good quarter Financial Summary1 Reported 1Q15 net profit (THB million) boosted by 59% YoY to 1Q15 28,606 Total Sales 1Q14 27,948 +2.4% THB 1,507million 1Q15 Gross Profit Q1’12 3,945 -5.1% Share price movement 1Q14 4,158 Q1’11 20142 20152 (Jan-Dec 14) (Jan- May 8’ 15 ) 1Q15 2,951 EBITDA +19.2% 1Q14

  21. Slide 21: Continued sequential improvement

    Continued sequential improvement Total sales (THB mn) GPM NPM 16.7% 17.2% 50,000 18.0% 45,000 14.9% 16.0% 13.9% 13.9% 40,000 12.4% 12.9% 13.8%14.0% 35,000 10.9% 30,423 32,772 12.0% 28,119 29,464 30,788 30,258 28,606 30,000 27,948 24,441 10.0% 25,000 6.3% 8.0% 20,000 5.3% 5.0% 6.0% 15,000 2.8% 3.4% 3

  22. Slide 22: 1Q15 Key highlights

    1Q15 Key highlights  Sales +2.4% YoY to THB 28,606mn (USD 876.2mn, +1.5% YoY) thanks to a full quarter of revenue recognition from newly acquired business (MerAlliance and King Oscar) as well as the addition of lobster business (now classified in shrimp & related business). Slower growth was mainly

  23. Slide 23: Agenda: 1Q15 Financial Results

    Agenda  Company Overview  Recent Developments  Key Highlights  1Q15 Financial Results

  24. Slide 24: Weaker EUR and lower fish prices limiting sales growth

    Weaker EUR and lower fish prices limiting sales growth Sales Breakdown by Category THB mn YoY +2.4% YoY +2.4% YoY -12.7% QoQ 32,772 -527 +522 -26 28,606 Value added & +548 +1,758 -22% +17% 0% -1,579 28,606 27,948 27,948 other products2 -18% -1,619 + 1,580 +35% +169% Pet food Salmon -12% +25% Sardine

  25. Slide 25: Higher sales contribution from branded business

    Higher sales contribution from branded business Sales Breakdown by Geographic Sales Breakdown by Business THB 121,402mn THB 28,606mn 2014 1Q15 13% 14% 7% 6% Others Brand Brand 7% 9% 41.3% 43.0% Japan 29% 28% Domestic Europe 44% 43% USA OEM OEM 58.7% 57.0% 2014 1Q15  Higher sales contribution from d

  26. Slide 26: Lower GPM YoY but stable QoQ

    Lower GPM YoY but stable QoQ Gross Profit THB mn YoY -5.1% YoY -5.1% YoY -13.3% QoQ 4,158 4,552 3,945 4,158 3,945 1Q14 4Q14 1Q15 Shrimp Sardine Value 1Q14 Tuna & related & Salmon Pet food added USD EUR 1Q15 GP Margin 14.9% 13.9% 13.8% business1Mackerel & other effect effect products2  1Q15 GPM decl

  27. Slide 27: Declining raw material prices in 1Q15

    Declining raw material prices in 1Q15 Skipjack tuna raw material prices White shrimp raw material prices (USD/ton) (THB/kg. of 60 pcs./kg) 3,000 300 2,500 250 2,000 200 152 1,500 1,035 150 (Apr’15) (Apr’15) 1,000 100 500 50 0 0 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 

  28. Slide 28: Stronger EBITDA and FCF driven by higher FX gain

    Stronger EBITDA and FCF driven by higher FX gain EBITDA Free Cash Flow THB mn THB mn +19.2% YoY +33.3% QoQ 4,550 4,148 2,951 2,476 2,214 1,039 1Q14 4Q14 1Q15 1Q14 4Q14 * 1Q15 Cash EBITDA 8.9% 6.8% 10.3% Conversion 2.21 0.66 1.97 Margin Rate1  1Q15 EBITDA grew by 19.2% YoY due mainly to higher FX ga

  29. Slide 29: A good quarter

    A good quarter Net Profit Normalized Net Profit THB mn THB mn +58.7% YoY +26.4% YoY +115.8% QoQ +62.0% QoQ 1,507 1,422 950 1,125 698 878 1Q14 4Q14 1Q15 1Q14 4Q14 1Q15 NP Margin 3.4% 2.1% 5.3% NP Margin 4.0% 2.7% 5.0%  1Q15 net profit boosted to THB 1,507mn thanks mainly to higher FX gain and lower

  30. Slide 30: Improving gearing with a low funding cost

    Improving gearing with a low funding cost Unit: THB mn Operating Activities Investing & Financing Activities ND/E 0.85x THB 5,499 mn ND/E 0.76x Kd = 3.75% Kd = 3.75% Free Cash Flow THB 4,550 mn 40,144 -2,951 -3,374 192 36,163 378 0 949 919 -142 49 Net Debt EBITDA Change in Change in Tax Other CAPEX

  31. Slide 31: Improved profitability with lower leverage

    Improved profitability with lower leverage ROE1 18.9% ROCE2 A/R Days 15.4% 15.0% 13.8% 14.2% 12.3% 45 11.4% 43 41 41 9.5% 8.9% 39 6.6% 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15 INV Days Net WC3 ND/E4 136 0.85x 130 0.83x 135 131 0.80x 0.80x 122 125 117 120 119 117 0.7

  32. Slide 32: Sequential improvement in asset management

    Sequential improvement in asset management Inventory Days Net Working Capital Days 138 135 135 134 131 130 126 125 125 123 122 124 124 121 120 119 117 117 33,547 34,637 36,18136,917 34,464 33,885 35,809 37,518 34,133 37,050 40,496 40,340 42,634 40,278 40,088 40,514 44,438 37,906 1Q13 2Q13 3Q13 4Q13

  33. Slide 33: Lower interest-bearing debts driven by better liquidity mgmt.

    Lower interest-bearing debts driven by better liquidity mgmt. Interest-bearing debt By Currency By Maturity EUR 4% USD 18% 2% 17% Short-term Loan 52% 2016 Current Portion of Long- 2% THB 78% term Debt 2% 80% 2017 2019 onwards Long-term 46% Debt 42% 2018 2014 1Q15 1Q15 Long-term loan by maturity THB

  34. Slide 34: 1Q15 Income Statement

    1Q15 Income Statement Consolidated 1Q15/ 1Q15/ (Million baht) 1Q15 % to sales 1Q14 % to sales 4Q14 % to sales 1Q14 4Q14 Change Change Sales 28,606 100.0% 27,948 100.0% 32,772 100.0% 2.4% -12.7% Cost of sales (24,660) -86.2% (23,791) -85.1% (28,221) -86.1% 3.7% -12.6% Gross profit 3,945 13.8% 4,158 1

  35. Slide 35: Statement of Financial Position as of 31 Mar 2015

    Statement of Financial Position as of 31 Mar 2015 Consolidated % to total % to total (Million baht) 1Q15 2014 Change assets assets Cash and cash equivalents* 5,270 4.8% 6,156 5.3% -14.4% Trade and other receivables 13,608 12.5% 15,404 13.3% -11.7% Inventories 34,133 31.2% 37,518 32.5% -9.0% Other cu

  36. Slide 36: Thank You

    Thank You Corporate website: http://www.thaiuniongroup.com IR website: http://www.thaiuniongroup.com/en/investor.ashx E-mail: [email protected] Tel: +66 2298 0024

Thai Union Group Public Company — Q1 2015 Earnings Presentation on 6ix