Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Frozen Products Public Company — Q1 2014 Earnings Presentation
29 slides from Thai Union Group Public's earnings presentation, May 16, 2014
Slide 1: 1Q14 Results Presentation
1Q14 Results Presentation 16 May 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. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
Slide 4: Recent Developments
Recent Developments January - December 2014: Centennial Anniversary of COSI Invested in Chicken of the Sea brand with an integrated marketing plan during the Centennial year Source: TUF 3
Slide 5: Recent Developments (Cont'd)
Recent Developments (Cont’d) January 2014 : Introducing John West Steam Pots – A meal in minutes A delicious combination of John West’ Infusions Tuna with perfectly seasoned couscous. Simply add the boiling water to the pot of couscous, wait 5 minutes for it to ‘fluff’, and then mix in the pot of Tu
Slide 6: Recent Developments
Recent Developments March 2014: TUF has been recognized multiple times in FinanceAsia Best Companies Poll 2014 FinanceAsia revealed the 14th annual poll to find best managed companies in Thailand as voted by investors and analysts across the region. TUF has been acquired multiple ranks in this poll.
Slide 7: Agenda
Agenda 1. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
Slide 8: More than 35 Years of Seafood Processing Experience
More than 35 Years of Seafood Processing Experience Acquired Acquired the Set up Invested in Founded Strategic Chicken of the Acquired Invested in remaining shares Chicken of the Pakfood Thai Union Partnership with Sea 4 fishing vessels Avanti Feeds of COSI Sea Frozen PCL Manufacturing Mitsubishi Co
Slide 9: 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 10: Tuna and Shrimp Remaining Our Core Business
Tuna and Shrimp Remaining Our Core Business 1Q14 Strategic Business Product Range Brand THB 27,948 million Group Canned tuna Tuna Frozen tuna loin Shrimp and Frozen shrimp 48% related Shrimp feed business1 Sardine Canned sardine & & Mackerel Mackerel Canned and frozen Salmon 23% salmon 6
Slide 11: 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 12: 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 the UK, Ireland and the Netherlands which operate across numerous markets globally #1 •#1 canned seafood brands in France #1 •
Slide 13: Sales Growth Despite Weaker Shrimp & Related Business
Sales Growth Despite Weaker Shrimp & Related Business Sales Breakdown by Product 1Q14 Sales Breakdown by Business 2013 1Q14 THB 112,813 million THB 27,948 million 10% Other Brands 13% Brand 7% Tuna 47% 48% 41% 9% OEM 59% 15% Shrimp & related 25% 23% business1 Sardine & 6% 6% Mackerel 4% • 1Q14 sales
Slide 14: US Remained the Largest Market, Driven By Frozen Unit
US Remained the Largest Market, Driven By Frozen Unit 2013 1Q14 Middle Canada South Middle Canada South East 3% Asia 4% 1% America East Asia 4% 1% America Australia 1% Australia 2% 1% 3% 3% Africa 3% Africa 4% Japan Japan 7% 5% USA 42% USA Domestic 43% Domestic 7% 7% Europe Europe 30% 30% Total sale
Slide 15: Share Capital Information
Share Capital Information Stock Information Major Shareholders (As of 11 March 2014) Bloomberg/ Reuters TUF TB/ TUF.BK Chansiri Family 21.67% Share price (12 May 2014) : THB 70.25 Niruttinanon Family 7.49% Historical price : Mitsubishi Corporation 7.58% 52-week high THB 71.75 Thai NVDR Co., Ltd. 7.5
Slide 16: Agenda
Agenda 1. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
Slide 17: On A Continuous Recovery Trend to Meet 2014 Targets
On A Continuous Recovery Trend to Meet 2014 Targets Financial Summary1 Reported net profit (THB million) boosted by 41% YoY to Total Sales 1Q14 1Q13 27,948 24,441 +14.3% THB 950 million 1Q14 4,158 Gross Profit Q1’12 Share price movement +56.0% 1Q13 2,665 Q1’11 20132 20142 1Q14 2,476 (Jan-Dec 13) (Ja
Slide 18: 6 Strategic Business Units of TUF
6 Strategic Business Units of TUF 1Q 2014 Sales breakdown THB 27,948 million 1 Tuna 2 Shrimp and related business1 3 4 5 6 44% Frozen Sardine & Salmon Pet Food Value-added and OEM Mackerel other products2 shrimp Shrimp feed 56% 77% Brand 83% 38% 44% 99% 23% - 100% 62% 56% 1% 17% % Sales 48% 21% 2% 6
Slide 19: YoY Sales Growth Partly Driven by Weaker THB
YoY Sales Growth Partly Driven by Weaker THB Quarterly sales (THB million and USD million) +14.3 % YoY -9.2% QoQ 29,464 30,788 28,119 27,948 Value-added & THB million 24,441 other products2 Pet food Salmon Sardine & Mackerel Shrimp & related business1 Tuna 1Q13 2Q13 3Q13 4Q13 1Q14 USD million 824 93
Slide 20: A Continual Recovery Trend of GPM
A Continual Recovery Trend of GPM Quarterly GP and GPM Quarterly Normalized GP and GPM (THB million) (THB million) +56.0% YoY +56.0% YoY 14.8% 14.9% 13.9% 14.9% Normalized 12.9% Gross profit 12.4% margin (%) Gross profit 10.9% +4.6% QoQ 10.9% -8.8% QoQ margin (%) 4,158 4,558 4,085 4,158 3,496 3,976
Slide 21: EBITDA Uptrend Driven By Improving GPM
EBITDA Uptrend Driven By Improving GPM Quarterly EBITDA and EBITDA margin Quarterly Normalized EBITDA & EBITDA margin (THB million) (THB million) +43.1% YoY +67.7% YoY +9.6% QoQ +6.5% QoQ 8.9% 9.1% EBITDA 8.2% Normalized margin (%) 7.3% 7.7% EBITDA margin (%) 7.1% 6.2% 2,413 2,476 2,540 5.2% 2,260 2
Slide 22: Continual Earnings Rebound
Continual Earnings Rebound Quarterly NP and NPM Quarterly Normalized NP and NPM (THB million) (THB million) +40.8 % YoY +120.4% YoY +16.5% QoQ +12.0% QoQ Normalized Net profit 3.6% 3.4% Net profit margin (%) 3.4% 2.9% margin (%) 2.8% 2.6% 1,004 1.9% 1,014 950 905 674 1.3% 815 359 460 1Q13 2Q13 3Q13
Slide 23: Improving Profitability & Leverage
Improving Profitability & Leverage … … with Programs to Boost Asset Turnover Under Way ROE1 ROA2 A/R Days 10.7% 43 43 7.1% 6.9% 42 41 9.5% 6.3% 38 8.4% 7.3% 5.1% 3.7% 3.9% 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 Inventory Days Gearing Ratio3 ND/E Ratio4 (Times) (Ti
Slide 24: 1Q14 Financial Position Summary
1Q14 Financial Position Summary Sales Margin Gross Profit Products (THB million) (%) (THB million) Tuna 13,465 x 15.0% 2,023 Shrimp & related 6,439 x 11.2% 722 Gross Profit business1 Sardine & x THB 4,158 million 1,546 16.3% 252 Mackerel Salmon 1,040 x 17.0% 176 Pet food 2,346 x 18.6% 437 Value-add
Slide 25: 1Q14 Income Statement
1Q14 Income Statement Consolidated 1Q14/ 1Q14/ (Million baht) 1Q14 % to sales 1Q13 % to sales 4Q13 % to sales 1Q13 4Q13 Change Change Sales 27,948 100.0% 24,441 100.0% 30,788 100.0% 14.3% -9.2% Cost of sales (23,791) -85.1% (21,776) -89.1% (26,812) -87.1% 9.2% -11.3% Gross profit 4,158 14.9% 2,665 1
Slide 26: Statement of Financial Position (31 March 2014)
Statement of Financial Position (31 March 2014) Consolidated % to total % to total (Million baht) 1Q14 2013 Change assets assets Cash and cash equivalents* 8,460 7.7% 3,214 3.0% 163.2% Trade and other receivables 13,284 12.1% 13,948 12.9% -4.8% Inventories - net 34,464 31.3% 36,917 34.1% -6.6% Other
Slide 27: Agenda
Agenda 1. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
Slide 28: Business Outlook
Business Outlook Tuna • Expect higher consumption and sales volume from more retailers’ promotional activities thanks to relatively lower tuna raw material prices in 2014. • GPM of OEM business should gradually improve QoQ given more timely price adjustment when raw material prices stabilize and ord
Slide 29: 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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