3Q14 Results Presentation 14 November 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 Company Overview Key Highlights 9M 2014 Financial Results Business Outlook
More than 37 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 business in business in Manufacturing products in US Indian Ocean in Thailand frozen shrimp Corp in US India US 50% 100% 100% 15% 25.12%* 51% 40% 77.13%*** 1977 1992 1997 & 2001 2003 2007 2009 2010 2012 2012-2013 1988 1994 1998 2006 2008 2010 2014**** 90% 88.8%** 51% 100% 100% 100% Acquired TUF was Expanded Set up Acquired Acquired Established Expanded Entered to #1 premium listed on the capacity of Chicken of leading leading Thai Union capacity of canned sardine Stock canned the Sea canned smoked brand in Frozen canned tuna seafood in Exchange of seafood Frozen seafood salmon in Norway, US Products in Indonesia Vietnam Thailand manufacturer Foods brands in EU EU & Australia Remark: *Increased in 3Q12; **Divested all shares in 1Q13, ***Increased in 3Q14 , ****Completed in 4Q14 3
Group Structure Associated Companies Thai Union Frozen Products 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 Manufacturing (TUM) Asian Pacific Can (APC) Thai Union Feedmill (TFM) T-Holding (THD) Thai Union International (TUI) Producer of canned tuna & pet food Producer of empty can Producer of shrimp feed Food distributor for Thai market US-based holding company Tri-Union Seafoods (TRI-U) Songkla Canning (SC) Thai Union Graphic (TUG) TMAC Processor of shelf-stable Producer of pet food Printing Shrimp hatchery and farming seafood in US Thai Union Seafood (TUS) U.S. Pet Nutrition (USPN) Processor of frozen shrimp Processor and distributor of pet food in US Pakfood (PPC) Canadian Pet Nutrition Processor of seafood & Ready-to-eat Producer and distributor of pet food Tri-Union Frozen Products (TUFP) Importer and distributor of frozen seafood Thai Union Investment Holding (TUIH) Holding company for investment in MW Brands SAS Century Trading Yueh Chyang Canned Food (YCC) 50.00% ** (CTS) Canned tuna processor Remark: *Investment held by SC; **Investment held by TUM 4 Source: TUF (as of August 2014)
A seafood focus company 9M14 Total Sales Tuna THB 88,630 million (USD 2.743 billion) Brand 43% Shrimp & related business 39% OEM OEM 57% Value added Sardine & other & Pet food products Brand 61% Mackerel 79% Salmon 83% 34% 44% 99% 21% - 56% 66% 1% 100% 17% % Total sales 47% 22% 2% 5% 4% 7% 13% Canned tuna & Frozen shrimp & Canned sardine Canned & Pet food Ready to eat food Frozen tuna loin Shrimp feed & mackerel Frozen salmon Frozen cephalopod Other canned seafood Bakery products Scrap 5
#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 Production 1 1.67 million tons Others 82% TUF 18% Source: 1 Fishstat Plus (FAO) 2010, based on finished product production 6
Global market leading brand portfolio #1 #1 #1 • #1 premium • #1 canned • #1 canned seafood canned sardine seafood brands brand in the UK, Ireland brand in France in France and the Netherlands #1 #1 #1 • #1 premium canned • #1 canned tuna • #1 canned tuna sardine brand in US, brand in China brand in Thailand • (by sales value) Norway, Australia * #2 #3 #1 • # 1 frozen seafood • #2 tuna brand • #3 canned seafood importer and in Italy brand in the US distributor in the US Remark: *Completed acquisition of King Oscar in 4Q14 7
Fully integrated global supply chain in canned tuna… Raw material flow Work-in-process and finished good flow Europe Raw material sources Production base USA Fishing fleet Thailand Ghana Seychelles West Pacific Ocean Vietnam Atlantic ocean Papua New Guinea Indian ocean TUF’s 7 own fleets Raw Material Acquisition Production Marketing Can & Label Fisheries Processing Canning Marketing Production • 7 own fishing vessels with • Empty can and • 8 locations in 7 countries • 6 Brands • Maximum capacity is approximately capacity of 39,000 tons per year printing factories in • 5 Continents • Covers the Atlantic Ocean Thailand 610,000 tons per year 8
… and frozen shrimp business Production base TUF’s export markets Europe Chicken of the Sea Frozen Food (COSFF) Asia COSFF’s sourcing COSFF’s distribution Japan USA China Thailand India Vietnam Pacific ocean Atlantic ocean Latin America Oceania Indian ocean Raw Material Acquisition Production Marketing Shrimp Feed Breeding Farm Processing Value Adding Marketing • 2 nd largest Thai • Shrimp breed • Small farms in • 2 locations in Thailand • Chicken of the Sea • Total capacity of 110,000 tons producer with development & the South and Frozen Food • 3 Continents annual capacity hatchery in partner farms in per year of 330,000 tons Thailand Thailand Full traceability Full Traceability 9
M&A driving market diversity Geographic Sales Breakdown 100% 9M14 Total Sales 12% 13% 14% 15% THB 88,630 million 10% 8% 14% 80% 12% 7% 10% 12% 7% 11% Others* 7% 8% 60% 13% 30% Japan 7% 32% 43% Domestic 40% Europe 31% USA 58% 49% 20% 40% 36% US market showed strongest sales 0% growth thanks to higher sales from the 2003 2009 2011 2013 US frozen shrimp trading operation. Total Sales 40,408 69,697 99,589 114,277 (THB million) 2010 Remark: *Others represent Asia, Australia, Middle East, Canada, Africa and South America 10
Share Capital Information Stock Information Major Shareholders (As of 28 Aug 2014) Chansiri Family 23.06% Bloomberg/ Reuters TUF TB/ TUF.BK Niruttinanon Family 7.49% Share price (10 Nov 2014) : THB 80.00 Mitsubishi Corporation 7.58% Historical price : Thai NVDR Co., Ltd. 6.68% 52-week high THB 83.00 Social Security Office 3.64% 52-week low THB 55.00 No. of paid up shares : 1,192.95m Par value : THB 1.0 Free float : 60.33% Market Capitalization : THB 95.4bn Foreign ownership : 36.64% Foreign limit : 45.00% Share Price Performance Dividend Information THB 1,800 Year DPS (THB/Share) % Payout 1,600 2005 1.20 50 1,400 2006 1.13 50 1,200 2007 1.11 54 1,000 2008 1.26 51 800 600 2009 1.92 51 400 TUF (LHS) 2010 1.60 50 200 SET Index (RHS) 2011 1.56 29 0 1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/2014 2010 2011 2012 2013 2014 2012 2.10 51 2013 1.49 60 1H2014 1.20 56 Source: TUF and SET 11
Key Developments Driving positive changes within community & conserving environmental 19 Aug 2014: 25 Aug 2014: The opening of the 2 nd TUF Child Care Center Planting mangrove saplings with Kung Krabaen Bay Royal Development Study Centre and the • Offers basic preparatory and primary education equally Satree Manda Pitak School of Chanthaburi under to children of Thai and foreign nationalities in Samut the concept of “Reforest, Foster the People and Sakhon province Conserve the Environment under Royal Initiation” • Prepares them for admission into the formal Thai education system in later years. • Promote environmental conservation and mangrove forest preservation awareness with Thai youths 12
Key Developments (Cont’d) Recent awards & recognitions 22 Sep 2014: 22 Sep 2014: 6 Nov 2014: Thailand’s Corporate Brand 2014 TUF is the first and only Thai TUF will be added in MSCI Asia - Rising Stars Award company in the food category Pacific Index which has been selected as an The highest brand value growth in the MSCI announced the results of the official member of DJSI agriculture and food sector with THB November 2014 Semi Annual Index Emerging Markets. 11.958bn current brand value Review for the MSCI Equity Indexes. The award is based on a research on All changes will be implemented as of evaluating and ranking corporate brands the market close of November 25, 2014 . in Thailand conducted by the Faculty of Commerce and Accountancy, Chulalongkorn University. 1 a of 4 food companies in the DJSI EM index 17 food companies in all of DJSI indices 10 Thai companies listed in DJSI various indices 13 Source: Chulalongkorn University; DJSI’s Press Release, www.sustainability-indices.com ; MSCI
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