1Q14 Results Presentation 16 May 2014
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 based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that the our assumptions are correct. Actual results may differ materially from those projected.
Agenda 1. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
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 3 Source: TUF
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 Tuna. 4 Source: TUF
Recent Developments March 2014: TUF has been recognized multiple times in FinanceAsia Best Companies Poll 2014 FinanceAsia revealed the 14 th 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. Rank Best Managed Companies Weighted Rank Best Investor Relations Weighted 1 PTT 30 1 Thaioil 33 2 Advanced Info Service 23 =2 Bangkok Bank 25 =3 PTT Global Chemical 22 =2 PTT Global Chemical 25 =3 PTTEP 22 4 Advanced Info Service 23 5 PTT 20 5 PTTEP 22 6 Thai Union Frozen Products 15 6 Thai Union Frozen Products 18 =7 Minor International 11 =7 Robinson Department Store 15 =7 Samart Corporation 13 =7 Siam Commercial Bank 15 9 MCOT 10 =9 Central Plaza Hotel 13 =10 INTOUCH 8 =9 INTOUCH 13 =10 Kasikorn Bank 8 =9 Minor International 13 Rank Best Corporate Social Responsibilities Weighted Rank Best Corporate Governance Weighted Rank Best CEO Weighted 1 PTT 47 1 PTT 33 1 Dr. Pailin Chuchottaworn (PTT) 15 2 PTT Global Chemical 30 2 Thaioil 23 2 Thiraphong Chansiri (TUF) 13 3 Advanced Info Service 21 3 Advanced Info Service 21 =3 Bowon Vongsinudom (PTTGC) 12 4 PTTEP 20 =4 Central Plaza Hotel 20 =3 Tevin Vongvanich (PTTEP) 12 5 Thaioil 18 =4 PTT Global Chemical 20 6 Siam Cement 15 6 HomePro 15 Rank Best CFO Weighted =7 CP All 13 7 Robinson Department Store 14 1 Surong Bulakul (PTT) 16 =7 EGCO 13 8 Thai Union Frozen Products 13 2 Patipan Sukorndhaman (PTTGC) 15 9 HomePro 10 9 PTTEP 10 3 Wai Yat Paco Lee (TUF) 14 =10 INTOUCH 8 =10 Thai Union Frozen Products 8 =10 Thaicom 8 is the leader in financial magazine, covers Asia’s fast moving financial and capital markets. Asia’s leading provider of news, in depth articles, surveys, key interviews and blockbuster cover stories. 5 Source: FinanceAsia
Agenda 1. Recent Developments 2. Company Overview 3. 1Q 2014 Financial Results 4. Business Outlook
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 (15% 25.12%*) Manufacturing Mitsubishi Corp International in Indian Ocean (40% 49.97%) (100%) Foods (50%) 1977 1992 1997 2001 2006 2007 2009 2012 2003 2006 2008 2010 2013 1994 1998 1988 TUF was (90%) (88.8%**) (51%) Established (100%) Acquired (100%) (77.06%) listed on the Acquired Acquired Acquired Thai Union Empress Acquired Further invested Stock Exchange Songkla PT Jui Fa Yueh Chyang Frozen Products International MW Brands in Pakfood PCL of Thailand Canning International Canned Food Source: TUF Remark: *Increased in 3Q12; **Divested all shares in 1Q13 7
Group Structure TUF Thai Union Frozen Products 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 TUM Asian Pacific Can APC Thai Union Feedmill TFM T-Holding THD Thai Union TUI 90.50%* 51% 90% 100% 90.08% Manufacturing International (Producer of canned tuna (Producer of empty can) (Producer of shrimp feed) (Food distributor for Thai market) (US-based holding company) & pet food) New Frontier NFF Tri-Union TRI-U Thai Union Graphic TUG Thai Quality TQS 100%** Foods 74% 100% Seafoods 100% Shrimp (Processor and exporter of (Printing) (Processor of shelf-stable canned tuna and pet food) (Shrimp breeding) seafood in the U.S.A.) Songkla Canning SC TMAC 90.44% TMAC U.S. Pet USPN 51% Nutrition 99% (Producer of pet food) (Shrimp hatchery and farming) (Processor and distributor of wet and dry pet food in the US) Thai Union Seafood TUS 51% 80% 100% 75% Canadian CAPN 100% (Processor of frozen shrimp) Thai Union TCM TMK TUH Pet Nutrition TCM Fishery TMK Farm Hatchery (Producer and distributor of (Shrimp farming) (Shrimp farming) (Shrimp breeding and PPC pet food) Pakfood 77.06% hatchery) (Processor of seafood and Ready-To- Tri-Union Frozen TUFP Eat) 82% Products (Importer and distributor of Chaophraya CHP 100% frozen seafood) Cold Storage Thai Union TUIH Okeanos OK 100% Investment Holding 100% (Mauritius based holding company for investment in MW Brands SAS) Thaksin Samut TZ 100% Yueh Chyang YCC 51% Canned Food 100% Okeanos Foods OKF (Canned tuna processor) 25.12% 48.97%** 33.33%** 20% 25% 50%** CTS TNFC MIH BIZ AFL LUF Century Trading TN Fine Biz Dimension Avanti Feeds Lucky Union Moresby (Shanghai) Chemicals Foods International Holdings Note: *Investment held by SC; **Investment held by TUM 8 Source: TUF (as of December 2013) Source: TUF
Tuna and Shrimp Remaining Our Core Business Strategic Business 1Q14 Product Range Brand Group THB 27,948 million Canned tuna Tuna Frozen tuna loin Shrimp and Frozen shrimp 48% related Shrimp feed business 1 Canned sardine & Sardine & Mackerel Mackerel Canned and frozen Salmon 23% salmon Pet food 6% Pet food 4% 8% Ready to eat food Value added Frozen cephalopod and other Other canned seafood 11% Products 2 Bakery products Revenue Remark : 1 Shrimp & related business includes frozen shrimp and shrimp feed 2 Value-added and other products includes Ready-to-eat (RTE) products, frozen cephalopod, canned seafood, local products, and bakery products Source: TUF 9 The World's Seafood Expert
Fully Integrated and Globally Diversified Supply Chain Marketing Raw Material Acquisition Production 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 • Maximum capacity is approximately 39,000 tons per year printing factories • 5 Continents • Covers the Atlantic Ocean in Thailand 681,000 tons per year Marketing Shrimp Feed Breeding Farm Processing Value Adding Shrimp • The second • Chicken of the Sea • Shrimp breed largest Thai • Partner farms in • 2 locations in Thailand Frozen Food producer with development & Thailand • Total capacity of 110,000* tons per year • 3 Continents annual capacity farms of 330,000 tons Remark: Not include supply chain for ready to eat and pet food products *Including Pakfood’s capacity 10 The World's Source: TUF (as of March 2014) Seafood Expert
Global Market Leading Brands • TUF’s portfolio includes Global Market Leading Brands the world’s leading #1 canned and frozen • #1 canned seafood brand in the UK, Ireland and seafood companies, the Netherlands which operate across numerous markets #1 globally • #1 canned seafood brands in France #1 • #1 canned tuna brand in China by sales value #1 • #1 canned tuna brand and • #2 canned seafood brand in Thailand #2 • #2 tuna brand in Italy #3 • #3 canned seafood brand in U.S. Source: TUF 11 The World's Seafood Expert
Sales Growth Despite Weaker Shrimp & Related Business Sales Breakdown by Product 1Q14 Sales Breakdown by Business 1Q14 2013 THB 27,948 million THB 112,813 million Other Brands 10% 13% 7% Brand 47% Tuna 48% 41% 9% OEM 59% 15% Shrimp & 23% 25% related business 1 Sardine & 6% 6% • 1Q14 sales of OEM business remained stable at 59% of Mackerel 4% 4% Salmon total sales compared to 2013. 8% 7% Pet food • Sales of branded products grew by 16% YoY while sales Value-added & 11% 11% of OEM business rose by 13% YoY. other products 2 Revenue Y13 Revenue Remark: 1 Shrimp & related business includes frozen shrimp and shrimp feed 2 Value-added & other products includes Ready-to-eat products, frozen cephalopod, canned seafood, local products, bakery products, and sales of scraps 12 Source: TUF
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