TKN Q1/19 OPPORTUNITY DAY Quarter 4 /18 Taokaenoi Food & - PowerPoint PPT Presentation

TKN Q1/19 OPPORTUNITY DAY Quarter 4 /18 Taokaenoi Food & Marketing Public Company Limited

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

TKN STOCK OVERVIEW Key Information : • Registered Capital 345 Mil Baht (1,380 Mil Share) • Issued & Paid Up Capital 345 Mil Baht (1,380 Mil Share) • SET Index SET 100 • CGR 2017 • Dividend Policy : 40% of Net Profit (Separate FS) Yr '18 : 96% of Net Profit (Separate FS) Dividend B / Share Payment Date As of May 8, 2019 12M/2018 0.17 May 8, 2019 • Major Shareholders Peeradechapan group 61.40 % 6M/2018 0.17 Sep 6, 2018 Free Float 38.60 % 12M/2017 0.17 May 4, 2018 • Market Cap 14,076 Mil B (@ 10.20 baht/share) 6M/2017 0.17 Sep 13, 2017 TAOKAENOI FOOD & MARKETING PLC. �3

COMPANY HISTORY Insert some short and brief lorem ipsum explanatory text about 7tle here 5.7 BILLION BAHT IN REVENUE 3.5 BILLION BAHT IN REVENUE 2.1 BILLION BAHT IN REVENUE 1.0 BILLION BAHT IN REVENUE 2016 2017 2004 2005 2006 2007 2010 2011 2012 2013 2018 2019 2008 2009 2014 2015 • Export sales to • The Billionaire , • 1st Trading day in • Moved to • Start operation 2nd Singapore via Thai movie based on Stock Exchange of Nopawong factory , factory at Rojana, Export channel true story Thailand Pathumthani Ayutthaya • Acquired factory in Los Angeles, USA TAOKAENOI FOOD & MARKETING PLC. �4

OUR BOARD OF DIRECTOR Yuth Chaiyong Itthipat Jirapong Worachattarn Rattanacharoensiri Peeradechapan Suntipiromkul Chairman / Independent Director / Director / Director / Independent Director NRC Chairman Chief Executive Officer Chief Financial Officer Wanee Somboon Orrapat Porntera Tassanamontien Prasitjutrakul Peeradechapan Rongkasiripan Independent Director / Director & Director / Director / AC Chairman Executive Director Managing Director Internal Audit Director TAOKAENOI FOOD & MARKETING PLC. �5

OUR MANAGEMENT Natthaphark Saranyaphongkorn Itthipat Peeradechapan Nutchatpong Peeradechapan Chief Operating Officer Chief Executive Officer / Managing Director : (COO) Founder Business Support Orrapat Peeradechapan Prayut Apisitsareeku Jirapong Suntipiromkul Managing Director : Chief Commercial Officer : Chief Financial Officer International Trade & International (CCOi) (CFO) Management TAOKAENOI FOOD & MARKETING PLC. �6

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

FINANCIAL HIGHLIGHTS unit : Mil Baht 300 YR 2017 YR 2018 YR 2019 1,322 Million Baht 200 171 160 154 152 142 135 129 100 Q1 2019 Sales 0% YOY 81 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Q1/2019 Sales 1,322 Mil Baht 81 Million Baht (6.2%) 0% YOY Q1 2019 Net Profit -46% YOY • YOY Sales Growth TH +12% , IM -8% • Sales Portion TH 38% : IM 62% • Q1/2019 Profit 81 Mil Baht • TH Market Share 69% -46% YOY TAOKAENOI FOOD & MARKETING PLC. �8

SALES BY QUARTER unit : Mil Baht YR 2017 YR 2018 YR 2019 2000 1,495 1,489 1,432 1,388 1500 1,323 1,314 1,322 960 920 920 1,203 Mainly drop from 859 814 814 752 1,118 China 715 665 1000 -8% YOY 500 569 562 536 528 TH Growth YOY 512 509 508 487 453 +12% YOY 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thailand Int Mkt TAOKAENOI FOOD & MARKETING PLC. �9

THAILAND SALES PERFORMANCE Q1/2019 SALES : 508 Mil B (+12% YOY) • Total Snack +6.9% YOY, Seaweed Snack +3.4% YOY • Market Share of Seaweed Snack 69% • Seaweed Categories • New flavour (Kimchi) of Crispy & Grilled • Taokaenoi Land 20 branches (+1 from Dec18) • New presenter of Big Roll • Chinese tourists partially drop YOY • Non Seaweed Categories • New presenter of Tin Ten - Salted Egg • 1 st Branch of Hinoya Curry (Feb 14, 2019) TAOKAENOI FOOD & MARKETING PLC. �10

SALES BY COUNTRY unit : % Int Mkt Thailand 27% 38% China 35% EXPORT SALES : 753 Mil B (-8% YOY) • High growth rate : USA, Indonesia, and Malaysia Thailand China Int Mkt • Sales drop mainly from China, in the process of increasing order to replace a previous distributor TAOKAENOI FOOD & MARKETING PLC. �11

MARKETING ACTIVIES • F4 Fan Meet in Thailand • Black Pink 2019 World tour Co-sponsorship in Indonesia, Malaysia, Taiwan TAOKAENOI FOOD & MARKETING PLC. �12

CHINA SALES PERFORMANCE unit : Mil Baht YR 2017 YR 2018 YR 2019 800 600 626 597 585 565 560 400 464 463 448 428 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CHINA SALES : 463 Mil B (-18% YOY) • In the process of increasing order to replace a previous Shanghai's distributor • Opened official account (Flagship) on Taobao and TMall • Opened Shanghai representative office on Sep 2018 • Marketing activities on Weibo & WeChat to build brand recognition TAOKAENOI FOOD & MARKETING PLC. �13

SALES BY PRODUCT unit : Mil Baht 2% 5% 2,000 YR 2017 YR 2018 YR 2019 unit : % 5% 1,500 704 697 738 617 648 555 1,000 635 475 474 Crispy SW 500 669 638 619 605 602 565 549 535 512 43% Grilled SW Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 45% Crispy Seaweed Grilled Seaweed Roasted Seaweed Tempura Seaweed Crispy SW Grilled SW Roasted SW Tempura SW Others TAOKAENOI FOOD & MARKETING PLC. �14

COST STRUCTURE Factory Capacity Utilization unit : % Grand Total 8,200 65% Overhead 10% 4,600 75% - Nopawong Labor Cost Seaweed 3,600 51% - Rojana 20% 39% Cost Structure Ratio Other Materials Direct Material 70.2% 8% Packaging - Seaweed 38.5% 23% - Packaging 23.2% - Other Materials 8.4% • Q1/19 Seaweed price drop YOY 19.7% Labor Cost • 2019 price will effect on 2nd half onward • Overhead rate higher than target mainly from production volume Overhead 10.1% TAOKAENOI FOOD & MARKETING PLC. �15

PROFIT SUMMARY unit : Mil Baht 15.2% 15.2% YR 2017 YR 2018 YR 2019 0.16 300 11.5% 11.5% 11.4% 11.4% 11.4% 11.4% 11.2% 11.2% 9.3% 9.3% 8.5% 8.5% 0.107 200 6.2% 6.2% 171 160 154 152 142 135 129 0.053 100 1.7% 1.7% 81 25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Profit % Net Profit Profit & Loss Q1/2019 YTD Mar 19 Mil B % on Sales Mil B % on Sales Gross Margin 383.1 29.0 383.1 29.0 Selling Expenses 204.0 15.4 204.0 15.4 Administrative 87.5 6.6 87.5 6.6 Expenses Net Profit 81.3 6.2 81.3 6.2 TAOKAENOI FOOD & MARKETING PLC. �16

BALANCE SHEET Separate Financial Statements Unit Mar 2019 Dec 2018 Change 90 88 2 A/R - local collection period Days 29 22 7 A/R - export collection period Days 9 9 0 Finished goods holding period Days 142 101 41 Inventory holding period Days 24 27 (3) A/P payment period Days DE Ratio Times 0.76 0.70 0.06 TAOKAENOI FOOD & MARKETING PLC. �17

Q2/2019 HIGHLIGHTS • 2 nd Branch of Hinoya Curry at Cosmo, Muangthong Thani • Signature Menu of Hinoya Curry Hinoya Curry x Taokaenoi • ThaiFex 2019 (May 28 - Jun 1) Muangthong Thani • New Flavour of Tempura Seaweed TAOKAENOI FOOD & MARKETING PLC. �18

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

BUSINESS OUTLOOK VISION : MISSION : Become an innovative food company Develop innovative products without any border I and bring happiness to our consumers limitations around the world Become a production that is recognized and II approved by international standard and also being environmentally friendly TARGET : Create happiness and healthy relationships and III Strive to make the company a Thailand bonds with the organization Quality Award (TQA) standard within The ability to become adaptive to the constant IV 2026 and generating more than 1 billion changes of the world and the continuous dollars in sales by 2028 development for sustainable growth A trustworthy organization due to good governance V and sustainable development TAOKAENOI FOOD & MARKETING PLC. �20

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

Q&A TAOKAENOI FOOD & MARKETING PLC. �22