2Q/17 OPPORTUNITY DAY Taokaenoi Food & Marketing Public Company - - PowerPoint PPT Presentation

2Q/17 OPPORTUNITY DAY

Taokaenoi Food & Marketing Public Company Limited

PRESENTATION AGENDA

Company Overview Financial Performance Business Outlook Q&A

TAOKAENOI FOOD & MARKETING PLC.

TKN STOCK OVERVIEW

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Key Information :

• Registered Capital
• Issued & Paid Up Capital
• SET Index
• CGR 2016
• Dividend

As of Aug 25, 2017

• Major Shareholders
• Market Cap

345 Mil Baht (1,380 Mil Share) 345 Mil Baht (1,380 Mil Share) SET 100 / MSCI Global Small Cap Index / FTSE SET Mid Cap Index / FTSE SET Shariah Index Policy : 40% of Net Profit (Separate FS) Yr 2016 : 90% of Net Profit (Separate FS) Peeradechapan group 61.96 % Free Float 32.84 % 27,048 Mil B (@ 19.60 baht/share)

Dividend B / Share Payment Date 6M/2017 0.170 Sep 13, 17 12M/2016 0.300 May 12, 17 6M/2016 0.190 Sep 7, 16 12M/2015 0.105 Apr 29, 16

TAOKAENOI FOOD & MARKETING PLC.

A BRIEF COMPANY HISTORY

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2004

• Company established with

paid-up capital 1 Mil Baht

ESTABLISHMENT

1 BILLION BAHT IN REVENUE

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

2 BILLION BAHT IN REVENUE 3.5 BILLION BAHT IN REVENUE 4.7 BILLION BAHT IN REVENUE

• Appointed Singapore as
• verseas distributor

1ST DISTRIBUTOR

• Opened premium snack

shop for tourist channel

TAOKAENOI LAND

• Movie based on true story
• f the company & founder

“Mr.Itthipat Peeradechapan”

THE BILLIONAIRE

• Listed in Stock Exchange of

Thailand (SET)

• Construction of new factory

(Rojana)

PUBLIC COMPANY

TAOKAENOI FOOD & MARKETING PLC.

OUR BOARD OF DIRECTOR

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Chairman / Independent Director Yuth Worachattarn Independent Director / AC Chairman Wanee Tassanamontien Independent Director / NRC Chairman Chaiyong Rattanacharoensiri Director Somboon Prasitjutrakul Director / Chief Executive Officer Itthipat Peeradechapan Director / Managing Director Orrapat Peeradechapan Director / Managing Director Nutchatpong Peeradechapan Director / Administrative Director Porntera Rongkasiripan

TAOKAENOI FOOD & MARKETING PLC.

OUR MANAGEMENT

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Chief Executive Officer / Founder

Itthipat Peeradechapan Orrapat Peeradechapan Nutchatpong Peeradechapan Jirapong Suntipiromkul Boonchai Kowpanich

Managing Director : International Markets Managing Director : Business Support Chief Financial Officer (CFO) Chief Operating Officer (COO)

TAOKAENOI FOOD & MARKETING PLC.

The Company is committed to developing healthy, tasty, and convenient products and build the brand recognition and awareness in the global market. VISION :

The Company would like to see the culture of nutritious, health, tasty and convenient food consumption all over the

• world. The Company delivers such value to millions of people

around the world by firstly fulfilling this gap from the seaweed business.

COMPANY VISION & MISSION

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The Company aims to develop new innovative products and applies the-state-of-the-art technologies to the production. The Company aims to create the brand awareness for capturing consumers’ attentions. The Company will treat employees, business partners and consumers like a member of the family. I II III IV MISSION :

PRESENTATION AGENDA

Company Overview Financial Performance Business Outlook Q&A

TAOKAENOI FOOD & MARKETING PLC.

FINANCIAL HIGHLIGHTS

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50 100 150 200 250

1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17

135 172 234 202 185 161 152 119 75 51

• 2Q/17 Sales 1,212 Mil Baht

+8% YOY, +8% QOQ

• YOY Sales Growth TH 0%, IM +17%
• TH Market Share 66% (Jun)
• Sales Portion TH 41% : IM 59%

unit : Mil Baht

1H/2017 Sales +9% YOY

2,333 Mil Baht

1H/2017 Net Profit -11% YOY

306 Mil Baht (13.1%)

• 2Q/17 Net Profit 135 Mil Baht (11.2%)
• 27% YOY, -21% QOQ

TAOKAENOI FOOD & MARKETING PLC.

350 700 1050 1400

3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17

716 665 848 755 625 557 548 577 404 301 385 254 496 456 459 506 495 461 433 431 410 396 450 410

Thailand Int Mkt

2Q/17 SALES PERFORMANCE

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664 834 696 815 1,008 981 1,018 1,120

Growth YOY/QOQ +15% YOY +8% QOQ Back on track +0% YOY +9% QOQ

unit : Mil Baht

1,307 1,261 1,121 1,212

TAOKAENOI FOOD & MARKETING PLC.

SALES BY COUNTRY

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7% 1% 2% 2% 2% 2% 3% 4%

China 38% Thailand 41%

Thailand China Malaysia Hong Kong Indonesia USA Taiwan Vietnam Singapore Others

DOMESTIC SALES : 952 Mil B (+0% YOY)

• FMCG -5% YOY, Snack +5% YOY
• Seaweed Snack +7% YOY
• Domestic consumption +2% YOY
• Chinese tourist trend to rebound
• Marketing Campaign : Korean Boyband ‘GOT7’

EXPORT SALES : 1,381 Mil B (+17% YOY)

• High growth on China, Vietnam and USA
• Focus on China, Indonesia, and Vietnam

unit : %

TAOKAENOI FOOD & MARKETING PLC.

CHINA SALES PERFORMANCE

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150 300 450 600

1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17

429 449 536 510 371 344 289 283 171 94

+16% YOY

• 4% QOQ

unit : Mil Baht

1H/17 SALES : 879 Mil B (+23% YOY)

• 2 Distributors in Shanghai and Guangzhou
• Market Research on China Market (AC Nielsen)
• Marketing Spending for Long-term strategy

TAOKAENOI FOOD & MARKETING PLC.

SALES BY PRODUCT

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6% 2% 3%

Grilled SW 41% Crispy SW 49%

Crispy SW Grilled SW Roasted SW Tempura SW Others

375 750 1,125 1,500

1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17

474 474 527 522 418 371 343 376 255 198 598 549 692 629 610 568 568 571 499 422

Crispy Seaweed Grilled Seaweed Roasted Seaweed Tempura Seaweed unit : Mil Baht

• 2% YOY

+9% QOQ +13% YOY +0% QOQ

TAOKAENOI FOOD & MARKETING PLC.

COST STRUCTURE

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Overhead 7% Labor Cost 18% Other Materials 9%

Packaging 23% Seaweed 43%

Cost Structure Ratio Direct Material 75.5%

• Seaweed

43.2%

• Packaging

23.5%

• Other Materials

8.8% Labor Cost 17.7% Overhead 6.8%

• 1H/2017 Total Capacity 3,000 ton
• Utilization Rate 71 %
• 1H/17 Gross margin partially drop mainly from

Seaweed price increase

TAOKAENOI FOOD & MARKETING PLC.

0.04 0.08 0.12 0.16 0.2 50 100 150 200 250

3Q/14 4Q/14 1Q/15 2Q/15 3Q/15 4Q/15 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17

Net Profit % Net Profit

11.2% 15.2% 17.9% 16.0% 16.5% 15.8% 15.5% 11.8% 9.2% 7.4% 10.9% 6.2% 135 171 234 202 185 161 152 119 75 51 91 41 6.2% 10.9% 7.4% 9.2% 11.8% 15.5% 15.8% 16.5% 16.0% 17.9% 15.2% 11.2%

PROFIT SUMMARY

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unit : Mil Baht

Profit & Loss 2Q/17 1H/17 Mil B % on Sales Mil B % on Sales Gross Margin 384.5 31.7% 770.7 33.0% Selling Expenses 146.4 12.1% 271.8 11.7% Administrative Expenses 60.5 5.0% 108.1 4.6% Net Profit 135.3 11.2% 306.3 13.1%

TAOKAENOI FOOD & MARKETING PLC.

BALANCE SHEET

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Separate Financial Statements Unit Jun 17 Dec 16 Change A/R - local collecZon period Days 79 71 8 A/R - export collecZon period Days 15 13 2 Finished goods holding period Days 7 5 2 Inventory holding period Days 79 40 39 A/P payment period Days 30 34 (4) DE RaZo Times 0.63 0.37 0.26

PRESENTATION AGENDA

Company Overview Financial Performance Business Outlook Q&A

TAOKAENOI FOOD & MARKETING PLC.

TKN BUSINESS OUTLOOK

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Brand Story, Customer Focus BRAND BUILDING Machine, Packaging, Seasoning House TECHNOLOGY China, Indonesia, CLMV DISTRIBUTION CHANNEL Raw Material SUPPLY CHAIN

MEDIUM TERM PLAN : To be Global snack company, with target to reach 10 billion baht in annual sales and to have product on shelved in over 100 countries by Y2024 COMPETITIVE ADVANTAGE :

TAOKAENOI FOOD & MARKETING PLC.

3Q/17 HIGHLIGHTS

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Sales

• New product launch : Taokaenoi Seasoned Laver

in China market, and Whey Protein ‘My Whey’

• New branch of Taokaenoi Land (9th) - Siam

Square (Bangkok) Production

• Rojana Production Phase II - Grilled Seaweed

(capacity 2,000 tons) start from 3Q/17 Net Profit

• BOI : Corporate Income Tax 0% for Rojana factory

PRESENTATION AGENDA

Company Overview Financial Performance Business Outlook Q&A

TAOKAENOI FOOD & MARKETING PLC.

Q&A

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TAOKAENOI FOOD & MARKETING PLC.

CONTACT

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• Address:

Taokaenoi Food & Marketing PLC. 337 Bond Street Road, Bangpood, Pakkred, Nonthaburi 11120 Thailand +66 2984 0666

• Investor Relations:

Koosoon Rattanaporn ir@taokaenoi.co.th +66 2984 0666 #315

Disclaimer The information contained here is being furnish on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any security of engage in any transaction. The information contained herein has been obtained from sources that Taokaenoi Food & Marketing Public Company Limited (“TKN”) considers to be reliable; however, TKN makes no representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections, valuations and analyses may be based on subjective assessments and assumptions and may utilize

• ne among alternative methodologies that produce differing results; accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as

an accurate representation of future events. The recipient should make an independent evaluation and judgement with respect to the matters contained herein.