3Q18 Opportunity Day Thai Union Group PCL. 21 November, 2018 The Stock Exchange of Thailand 3Q18 Opportunity Day
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 assumptions are correct. Actual results may differ materially from those projected. 3Q18 Opportunity Day
Agenda Company Overview Key Highlights Recent Developments 3Q18 Financial Results Business Outlook Slide 3 3Q18 Opportunity Day
3Q18 Opportunity Day
Agenda Company Overview Key Highlights Recent Developments 3Q18 Financial Results Business Outlook Slide 5 3Q18 Opportunity Day
Click to edit Master title style “We will continue to work hard to weather the industry’s volatility as we focus on expanding our business portfolio through business diversification while continuing aggressive development of product innovation.” Thiraphong Chansiri President and Chief Executive Officer Slide 6 3Q18 Opportunity Day
3Q18: Record quarterly net profit since 2015* (excluding impairment charges) (THB mn) Operating Sales Gross Profit Net Profit Profit 34,174 1,730* 5,378 1,834 Ex-FX, sales decline YoY Stable raw material prices Strict cost control Best net profit since 2015 3Q18 sales declined YoY Gross profit improved 8.5% Operating profit up 33.1% YoY, Normalized net profit up • Stringent cost control driven by: YoY, driven by: 0.4% YoY: • THB appreciation • GPM improvement to • Solid operation support prompted 1% SG&A • Declining raw material 15.7% from 14.2% in expense decline YoY bottom line despite • However, SG&A ratio prices 3Q17 weak non-operating • Excluding FX, sales • Stable raw material increased to 10.4% (from item contribution • Reported net profit of marginally declined by prices 10.3% in 3Q17) due to weak • Tuna business is the -1.0% YoY THB sales from currency THB 1,310mn, including main driver for recovery movement impairment expenses from ESCo divestment YoY Chg. -1.9% +8.5% +33.1% +0.4% QoQ Chg +1.1% +14.0% +55.2% +26.5% % of sales 15.7% 5.4% 5.1% *Remark: 3Q18 normalized net profits is adjusted for asset impairment of Edinburgh Salmon Company (ESCo) amounted THB420mn Slide 7 3Q18 Opportunity Day recorded in the Discontinued Operation line item 1Q17-3Q18 figures were restated mainly due to COGS reclassification, and reclassification of ESCo’s financial to discontinued operation
9M18 Net profit declined on weak past result -2.9% 9M18 Net Profit* Financial Summary 1 9M17 9M18 down 13.3% YoY to (THB million) 100,220 -7.0% THB 3,967 million 97,314 14,489 -7.2% 13,468 Share price movement -21.4% 8,865 -13.3% 8,229 2017 2 2018 2 (Jan- Dec 17 ) (Jan- Sep 28,18 ) 3,928 -5.7% -13.5% 4,576 3,087 3,967 Declining debt, while equity reduced on dividend payment 2Q18 ND/E 2017 ND/E 1.40x 1.38x (1.36x) ** Net profit EBITDA Operating profit Gross profit Total sales Source: 1 TU; 2 SET (Jan 4’17: THB21.1/share and Dec 29’17: THB19.9/share, Jan 3’18: THB20.7/share and Sep 28’18: THB17.9/share) Remark: Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18) and asset impairment of ESCo amounted THB420mn (3Q18) **Net debt to equity of 1.37X, excluding the net impact of the Chicken of the Sea’s legal settlements Slide 8 3Q18 Opportunity Day
3Q18: Highest quarterly margins in two years Total sales (THB mn) GPM NPM 18.0% 15.7% 60,000 14.7% 14.5% 16.0% 14.2% 14.1% 14.0% 13.8% 13.4% 50,000 14.0% 11.5% 12.0% 40,000 35,050 34,852 34,174 33,715 33,803 34,404 34,739 30,963 10.0% 29,337 30,000 8.0% 5.1% 4.9% 4.6% 4.5% 6.0% 4.1% 20,000 4.1% 4.0% 3.0% 2.7% 4.0% 10,000 2.0% 0 0.0% % Growth YoY 3Q16 4Q16 1Q17* 2Q17 3Q17 4Q17* 1Q18 2Q18 3Q18 Sales 7.5 1.1 -0.8 0.0 -0.6 3.0 -5.3 -1.7 -1.9 Gross profit -12.4 -4.2 -8.8 -8.9 0.4 6.1 -26.0 -5.2 8.5 Net profit -1.9 18.9 16.4 -6.9 8.0 56.9 -39.3 -3.7 0.4 Remark: Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18) and asset impairment of ESCo amounted THB420mn (3Q18) 1Q17-3Q18 figures were restated mainly due to COGS reclassification, and reclassification of ESCo’s financial to discontinued operation Slide 9 3Q18 Opportunity Day
Agenda Company Overview Key Highlights Recent Developments 3Q18 Financial Results Business Outlook Slide 10 3Q18 Opportunity Day
Corporate: Recognitions and Developments October, 2018 — Thai Union, honored as one of 33 listed large September - October, 2018 — Asian investment community companies in SET100 as part of Thailand’s first ESG -focused continues to recognize Thai Union’s ongoing company efforts investment portfolio Thai Union was among top 16 recognized companies in Asiamoney Asia’s Outstanding Companies Poll 2018 for: • Overall Most Outstanding Company in Thailand • Most Outstanding Company in Thailand, Consumer Staples Sector Thai Union was also shortlisted as a finalist for IR Magazine Awards – South East Asia 2018 in the following categories: • Most progress in Investor Relations • Best in sector: Consumer Staples • Best in country: Thailand • Best investor event November, 2018 — Thai Institute of Directors (IOD) ranked Thai Union as Excellent Corporate Governance Scoring (5-Star) in its annual Corporate Governance Report of Thai Listed Companies 2018 (CGR 2018) Slide 11 3Q18 Opportunity Day
Sustainability: Recognitions and Developments September - October, 2018 — Named to Dow Jones Sustainability Index, Thomson Reuters Foundation’s Stop Slavery Award • Included in the Dow Jones Sustainability Index (DJSI) Emerging Markets for 5 th consecutive year. • Thai Union was announced 1 of 6 companies shortlisted for Thomson Reuters Foundation annual Stop Slavery Award , 1 st global recognition for businesses which sets a gold standard to eradicate forced labor from supply chains. September, 2018 — Dr. Darian McBain was honored to represent Thai Union in high-level panel at United Nations General Assembly to present actions and experiences in front of world’s leadership on addressing modern slavery and forced labor. “ Governments and businesses must come together to resolve the social challenges plaguing some modern-day supply chains, specifically forced labor, ” modern slavery and human trafficking. DR. DARIAN MCBAIN United Nations General 3Q18 Opportunity Day Assembly, New York City
Innovation: Fish oil • Oil l refinery inery plan ant t in Rodst stock ck, , Germ rman any y launc nched ed 12 Novem ember er • Firs rst t comm mmer erci cial al producti duction on in Dece cemb mber er 2018 Leveraging our end-to-end supply chain to offer premium tuna oil suitable for infant formula and other high-end nutritional applications, Thai Union Marine Ingredients delivers the highest quality and safety to our customers from dock to door. Slide 13 Crude oil Fully refined oil Slide 13 3Q18 Opportunity Day
Overseas expansion: China Lobste ter r Lab to debut t in Chines ese e market et via Alibab aba a partne nership rship November, 2018 — Lobster Lab, F&B concept store operated by Thammachart Seafood Retail launched in China • Thai Union has continued to expand business portfolio by introducing Thammachart Seafood’s premium seafood F&B store, The Lobster Lab through King Oscar brand • Located in Alibaba retail supermarket Herma, Shanghai, China • Take-out and dine-in restaurant concept • Serves fresh lobsters from United States and Canada, to be operating in mid-November Slide 14 3Q18 Opportunity Day
Agenda Company Overview Key Highlights Recent Developments 3Q18 Financial Results • Consolidated Results • Results by Business Unit Business Outlook Slide 15 3Q18 Opportunity Day
Click to edit Master title style “We follow the Triple C approach: Cash, Cost productivity, Capital efficiency .” Joerg Ayrle Group Chief Financial Officer Slide 16 3Q18 Opportunity Day
Recommend
More recommend
