SET Opportunity Day 3Q17 Results Presentation 15 November 2017 Page 1
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. Page 2
Agenda Company Overview Key Highlights Recent Developments 3Q17 Financial Results Business Outlook Page 3
Agenda Company Overview Key Highlights Recent Developments 3Q17 Financial Results Business Outlook Page 4
40 years of seafood processing experience Acquired Strategic Acquired Expanded to Expanded to Set up Expanded to Expanded Acquired stakes of Strategic Founded partnership third largest frozen shrimp feed pet food shrimp capacity of stakes of Les investment Thai Union with canned seafood business in business farming in frozen Rugen Fisch Pecheries in Red Manufacturing Mitsubishi seafood brand products India in the US Thailand shrimp in Germany de Chez Lobster Corp in US in US Nous 50% 100% 15% 25.12%* 40% 77.13%** 100% 51% 51% 80% 25% 2010 1977 1992 1997 & 2001 2003 2009 2012 2012-2013 2016 1988 1994 1995 & 2016 2006 2008 2010 2014*** 2015 20.03% 99.55% 51% 100% 100% 100% Acquired Acquired TUF was Expanded Set up Acquired Acquired Rebranding: Established Entered to Entered a JV #1 premium lobster- listed on the capacity of Chicken of leading leading Renaming Thai Union canned sardine related with Savola Stock canned the Sea canned smoked TUF to brand in asset from Frozen seafood in Food in Exchange of seafood Frozen seafood salmon Thai Union Norway, US Orion Products Vietnam Saudi Arabia Thailand manufacturer Foods brands in EU in EU Group Seafood Int’l & Australia Remark: *Increased in 3Q12; **Increased in 4Q14 , ***Completed in 4Q14 In 2006, TU acquired PT Juifa International Food to expanded capacity of canned tuna into Indonesia, but all shares were divested in 1Q13. Page 5
Global market leading brand portfolio #1 #1 #1 #1 • #1 premium • #1 canned • #1 canned seafood brand World largest seafood canned sardine in the UK, Ireland and the seafood brand in chain restaurant* brand in France France Netherlands #1 #1 #1 #1 • #1 premium canned • #1 frozen seafood • #1 ambient seafood • #1 ambient seafood sardine brand in US, importer and brand in Germany brand in Germany Norway and Australia distributor in the US #3 #3 #1 • 1 st online frozen • #3 canned seafood brand • #3 canned tuna • #1 canned tuna brand in the US brand in Italy seafood brand in in Thailand Thailand *TU’s associated company Page 6
Thai Union’s global footprint Page 7
3 strategic business segments Total 9M17 sales: THB 101,430mn Brand, Frozen, chilled PetCare, value added 37% Ambient seafood seafood and related and others Private Sales: THB46,276mn Sales: THB 41,628mn Sales: THB 13,526mn Label, 9M17 51% 1H17 Growth: -4.2% YoY 1H17 Growth: +5.8% YoY 1H17 Growth: +5.6% YoY **FS - Brand, Shrimp & related Tuna business 6% PetCare business 1 **FS - Private Label, 6% Sardine & Ambient & Pouch Frozen, chilled & Value-added Other seafood 2 Other products 4 smoked salmon Mackerel Salmon business 3 Sales Split: 13% 9% Brand Brand Brand 46% 35% 41% Private Private 41% 65% Private 59% label label 91% label Remark: 1.Shrimp & related business includes frozen shrimp, lobster, shrimp feed and value-added shrimp 2.Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish 3.Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack Page 8 4.Other products include scrap, fishery and others *FS stands for Food Service
M&A driving market diversity Geographic Sales Breakdown 9M17 Total Sales THB 101,430million 100% 12% 13% 13% 14% 14% 13% 15% 7% 6% 6% 10% 8% 14% 80% 12% 14% 7% 8% 8% 7% 10% 6% 7% 11% 38% Others* 8% 60% 10% 29% 29% 13% 33% 30% Japan 32% Domestic 32% 40% Europe 58% USA 9M17 Sales contribution in key markets 49% 44% 42% 20% 40% 39% remained stable compared to 2016 sales mix 36% by geography. However, the key changes were seen in the other key markets where 0% TU has emphasize more on emerging and 2003 2009 2011 2013 2014 2015 2016 new market penetration Total sales US market sales contribution was at 38%, 40,408 69,697 99,589 114,277 121,402 125,183 134,375 (THB million) European market at 32%, Japan at 6% and Thailand at 10% are largely unchanged from 2016 Full traceability Remark: *Others represent Asia excluding Thailand & Japan, Australia, Middle East, Canada, Africa and South America Page 9
No single quarter loss with consistent growth since listed Sales Net profit THB billion THB million 160 6,000 5,254 134 140 5,000 120 4,000 100 80 3,000 55 1,901 60 2,000 40 1,000 20 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EBITDA DPS & Payout THB million THB 14,000 0.70 75% 0.63 11,138 12,000 0.60 57% 50% 10,000 0.50 50% 8,000 0.40 0.28 6,000 0.30 3,913 25% 4,000 0.20 2,000 0.10 0 0.00 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 *Par value was changed from THB 1.00 to THB 0.25 Page 10
Agenda Company Overview Key Highlights Recent Developments 3Q17 Financial Results Business Outlook Page 11
“Through organic growth, innovation and M&A efforts, we are committed to the USD 8.0bn revenue target by 2020.” Thiraphong Chansiri President and Chief Executive Officer Page 12
3Q17: Continued cost control and Red Lobster support profits Record quarterly sales. 3Q17 sales was at a YoY Chg % of sales record level through driven by a product repricing from increased raw material prices Rising raw material prices. Gross profit margin 35,185 Sales +0.4% remained under pressure at 13.2% resulted from a sharp year-over-year increase in raw material (THB mn) prices and GBP depreciation 4,658 Strict cost control. Due to the stringent cost -5.6% GP 13.2% control, 3Q17 SG&A to sales ratio remain under controlled at 9.1% (9.5% on reported basis), well below a 2017 guidance of lower than 10%. 1,319 OP -29.5% 3.8% Operating profit declined on weak gross profits, part of the operation weakness was offset by good cost control 1,737 Net profit improved YoY. Despite a rising raw +8.9% 4.9% NP material prices, the net profit was supported by growing income contribution from Red Lobster investment, and prudent FX and tax management. . Remark: Operating margin = (COG S – SG&A)/sales Page 13
9M17 Net profit up 6.1% YoY, record 9M sales Financial Summary 1 9M17 Net Profit (THB million) up 6.1% YoY to THB 4,617 million 101,430 9M17 Total Sales +0.8% 100,660 9M16* 9M17 13,656 Gross Profit -11.3% Share price movement Q1’12 9M16* 15,396 2016 2 2017 2 Q1’11 Operating 9M17 3,826 (Jan- Dec 16 ) (Jan- Nov 3,17 ) -31.3% Profit 5,570 9M16* +24.3% -15.2% 8,763 9M17 -7.0% Stable ND/E despite high EBITDA 9,159 9M16* raw material price 9M17 4,617 2016 ND/E 3Q17 ND/E +6.1% Net Profit 9M16* 4,352 1.37x 1.37x Source: 1 TU; 2 SET (Jan 4’16: THB16.9/share and Dec 30’16: THB21.0/share, Jan 4’17: THB21.1/share and Nov 3’17 : THB17.9/share) *The 9M16 figures were restated mainly due to reclassification of fishing fleet discontinued operations Page 14
3Q17: Continued overall net profit resilience Total sales (THB mn) GPM NPM 60,000 20.0% Raw material prices rising 17.3% 16.9% 18.0% 15.9% 16.0% 50,000 16.0% 14.2% 14.1% 13.8% 13.8% 13.4% 13.4% 13.2% 14.0% 40,000 35,050 34,401 33,715 34,818 35,185 32,602 33,333 12.0% 31,210 31,427 30,642 28,606 30,000 10.0% 8.0% 5.3% 20,000 5.0% 4.9% 4.7% 4.5% 4.4% 6.0% 4.3% 4.1% 3.9% 2.7% 4.0% 2.3% 10,000 2.0% 0 0.0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16* 4Q16* 1Q17 2Q17 3Q17 % Growth YoY Sales 2.4 1.3 7.2 1.7 9.1 12.4 7.5 1.1 0.7 1.2 0.4 Gross -5.2 6.3 7.4 3.9 26.6 4.5 -12.4 -4.2 -13.3 -14.5 -5.6 profit Net profit 58.7 -7.2 -23.9 8.5 -19.0 16.9 -1.9 19.1 19.3 -7.6 8.9 Remark: Operating margin = (COG S – SG&A)/sales Page 15 *The 3Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations
Agenda Company Overview Key Highlights Recent Developments 3Q17 Financial Results Business Outlook Page 16
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