2Q19 Opportunity Day Thai Union Group PCL. 9 August, 2019 2Q19 - - PowerPoint PPT Presentation

2Q19 Opportunity Day

2Q19 Opportunity Day

Thai Union Group PCL. 9 August, 2019

2Q19 Opportunity Day

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.

Disclaimer

2Q19 Opportunity Day

Strategic Cornerstones

Innovation: A key pillar at Thai Union

2Q19 Opportunity Day

Official opening of new Global Innovation Center

Innovation Rising to the Future

In June 2019, Thai Union celebrated official opening ceremony of Global Innovation Center (GIC) by Princess Maha Chakri Sirindhorn

Facility has been expanded to +5,000 m2, and houses more than 160 scientists and researchers from around the world. It is now located at SM Tower, Bangkok.

State-of-the-art research and product development center

Established in 2015, Global Innovation Center (GIC) seeks to find new innovative solutions to seafood that meet needs of consumers.

2Q19 Opportunity Day Slide 5

2Q19 Opportunity Day

Key Highlights

Thai Union’s 2Q19 key highlights

2Q19 Opportunity Day

Thai Union remains focused on operational excellence and profitability. We continue to invest in new product innovations to promote sustainable business growth.

Thiraphon iraphong g Chansiri nsiri President esident and CEO

“ ”

2Q19 Opportunity Day

Sales dropped on lower raw material prices YoY 2Q19 sales down 2.2% YoY excluding FX impact:

• Thai Baht appreciated

against major trading currencies

• Focus on higher-margin sales

and lower less-profitable businesses

• Lower sales volumes

GPM of 16.7%, highest since 2015 Gross profit improved 13.1% YoY from 14.0% in 2Q18 to 16.7%, driven by:

• Focus on high-margin

businesses

• Raw material prices

dropped

• Excluding labour

retirement expenses, GPM would be at 17.0% Solid operation recovery Normalized operating profit up 29.6% YoY,

• Marketing expense

increased

• SG&A ratio still high at

11.8% (from 10.4% in 2Q18) Recovery partly offset by non-operating items Normalized net profit up 10.6% YoY:

• Lower FX gains and higher

tax expenses during 2Q19

• Share of profits improved

mostly from Red Lobster

• peration improvement

Sales

2Q19: Solid underlying operation improvement amid additional legal expenses

Slide 8

Operating Profit Gross Profit Net Profit

32,214

(THB mn)

5,364 1,513* 1,570*

YoY Chg.

• 4.6%

+13.1% +29.6%** +10.6%**

QoQ Chg

+9.7% +22.4% +53.9% +18.8%

% of sales

16.7% 4.9% 4.7%

Remark: *Based on normalized operating figures. 2Q19 reported operating losses of THB 288mn and reported net profit of THB 111mn, including one-time majority accrual for US legal settlement of THB1,858mn and related tax credit of THB 456mn **Based on normalized operating figures. 2Q18 reported operating losses of THB 285mn and reported net profit of THB 10mn.

2Q19 Opportunity Day

2,237 [CELLREF] 1,305 8,129 63,104 2,787 6,089 2,589 9,746 61,583 Net profit EBITDA Operating profit Gross profit Total sales

Financial Summary1

(THB million)

1H18 1H19

1H19 Net Profit up 24.6% YoY to THB 2,787 million Strong cash flow and debt repayment improve debt ratio

1H19 Improved profitability

Slide 9

2018 ND/E

1.39x**

2Q19 ND/E

1.38x

• 2.4%

+19.9% +98.4% +20.3% +24.6%

Share price movement 20192

(Jan – 5 Aug 19)

+16.7%

20182

(Jan – Dec 18)

• 21.7%

Source: 1TU; 2SET (Jan 3’18: THB20.7/share and Dec 28’18: THB16.2/share, Jan 2’19: THB16.2/share and Aug 5’19: THB18.9/share) **Net debt to equity of 1.35X, before adoption of TFRS 9 and 16 Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

30,958 34,400 34,847 34,733 29,329 33,775 34,169 36,012 29,369 32,214 14.8% 14.5% 14.2% 13.8% 11.6% 14.0% 15.8% 14.9% 14.9% 16.7% 4.6% 4.1% 4.9% 4.1% 3.0% 4.1% 5.1% 3.4% 4.3% 4.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 10,000 20,000 30,000 40,000 50,000 60,000

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Total sales (THB mn) GPM NPM

% Growth YoY Sales

• 0.8

0.0

• 0.6

3.0

• 5.3
• 1.8
• 1.9

3.7 0.1

• 4.6

Gross profit

• 8.3
• 9.0

0.3 6.1

• 26.1
• 4.6

9.2 11.4 29.3 13.1 Net profit 16.3

• 6.9

8.1 56.6

• 39.3
• 3.7

0.5

• 13.4

46.5 10.6

2Q19: Record quarterly margin since 2015 despite one time labor retirement benefit provision

Slide 10 Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

Recent Developments

Corporate, innovation, sustainability, and brands around the world

2Q19 Opportunity Day

• The index identifies companies that demonstrate strong

ESG practices and better manage ESG risks.

Thai Union’s sustainability efforts

• Thiraphong Chansiri, Thai Union’s President and CEO,

participated in dive along with 40 other experienced divers.

• Thai Union also partnered with Royal Thai Navy and

Pattaya City in a beach cleanup and ghost gear diving activities. Thai Union Reinforces SeaChange with #GhostGearReborn Kickoff on World Oceans Day Thai Union remains constituent to FTSE4Good Emerging Index by FTSE Russel, for 4th consecutive year

Slide 12

2Q19 Opportunity Day

Refined tuna oil for infant formula

Tuna oil is a good source of omega fatty acids, including DHA. Thai Union continues to focus on high quality, premium tuna oil for infant formula milk powder to maximize full value of fish from by-products.

Refinery to be rebuilt by 2020

Thai Union has started a project to rebuild the tuna oil refinery, with an aim to have the plant commissioned by July 2020.

Minor plant improvements

Refinery to be rebuilt similar to previous manufacturing process, with minor improvements after 6 months of operations.

High quality crude tuna oil production continues

We continue to produce and sell high quality crude tuna oil in Bangkok.

Slide 13

Refined tuna oil: Remains key value- added initiative

Fire incident at tuna oil refinery plant

• A fire occurred at Thai Union

Ingredients Tuna Oil Refinery Plant in Rostock, Germany on Saturday 1 June, 2019.

• The plant was not in operation

at the time, and no staff were scheduled to be on site. There have been no reports of injuries.

• Thai Union has written off

assets associated to the tuna oil refinery plant valued EUR 16mn during 2Q19 together with a receivable from insurers of the same amount. Net impact is almost neutral in 2Q19.

2Q19 Opportunity Day

Thai Union’s Group CFO: Joerg Ayrle

• n talks about ethical return on investment

Joerg Ayrle Becomes Council Member of CNBC’s Global CFO Council The Council comprises of 100+ CFOs from Fortune 500 companies in countries around the world, who collectively manage market capitalization of more than $4 trillion. For more information, visit CNBC.

Source: Presentation by Joerg Ayrle, Thai Union’s Group CFO at the 5th CFO Innovation Forum Thailand on 4 July, 2019.

• Joerg Ayrle, Thai Union’s Group CFO, gave a

closing speech at SeaWeb Seafood Summit 2019 in Bangkok about ethical return on investment and seafood companies in the emerging blue bond trend.

• Separately, he was key speaker at 5th CFO

Innovation Forum in Bangkok on 4 July, 2019,

• n integrating sustainability to unravel capital

benefits and boost investor confidence.

Caption: Joerg Ayrle during his closing speech at SeaWeb Seafood Summit in Bangkok. Photo Credit: Intrafish, Lola Navarro (Twitter: @IntrafishLola) Caption: Thai Union’s Group CFO at 5th CFO Innovation Forum Thailand on 4 July, 2019.

Slide 14

2Q19 Opportunity Day

Thai Union’s global brand footprint

Slide 15 United States Germany Thailand China

New premium product Chicken en of the Sea Wild Catch Catch New lobster product Orion Cooked Lobster er Meat Retail l Pack New innovative packaging Brislin ing g Sardine nes s in see see-thr hrou

• ugh

gh lid lid New ready-to-eat tuna varieties

• Tuna Salad (Couscou
• us)

s)

• Tuna Infusions

ns

New product initiatives and innovations from brands around the world

Expanded to Thai market Chicken en of t the Sea Infusions ns 1st branch launched in Beijing Located ed in Taikoo

• Li

New premium product Ready Ready-to to-ea eat t premium um shrimp shrimp

Italy United Kingdom

New, healthier product Mareblu lu Leggero ro with 60 60% less fat New innovative packaging John West Fridge e Pot

2Q19 Opportunity Day

Thai Union is proud to have its efforts recognized by leading organizations around the world

Asian Excellence Award and Asiamoney Award

• 9th Asian Excellence Award 2019: Asia’s Best CEO and Best Investor Relations

Company in Thailand, received by Joerg Ayrle, Group CFO of Thai Union.

• Asiamoney‘s Best Managed Companies Awards: one of the best companies

in Thailand for the decade since 2010.

Awards & Recognitions

Seafood Champion Award

• Dr. Darian McBain, Thai Union’s Global Director of Corporate Affairs and

Sustainability, for visionary approach to improving seafood sustainability, inspiring positive change across industry, at SeaWeb Seafood Summit 2019. Thai Union’s Brands Awards

• Thai Union's John West brand, winner of Marine Stewardship Council’s

(MSC) 2019 UK Canned Brand of the Year Award for 3rd consecutive year.

• Chicken of the Sea Infusions, winner of People Magazine’s PEOPLE Food

Awards 2019: The Best Supermarket Products of the Year (Basil flavour won best new product in Tuna category) AGM Checklist 2019 by Thai Investors Association

• Thai Union received maximum score of 100 for the AGM Checklist 2019 for

third consecutive year

2Q19 Opportunity Day

Despite anti-trust charges, we commit to high DPS

0.30 0.28 0.28 0.32 0.48 0.40 0.39 0.53 0.15 0.30 0.32 0.32 0.32 0.25 0.25 0.22 0.25 0.31 0.31 0.34 0.15 50% 50% 53% 51% 50.7% 50.0% 29.4% 51.3% 59.9% 50.5% 56.7% 57.2% 52.3% [VALUE]* 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 2017 2018 1H19 THB/Share DPS (LHS) Payout Ratio (RHS)

Remark:

• The company changed the par value from THB 1 to THB 0.25 and registered with the Ministry of Commerce on 25 Dec 2014. Hence, dividend per share has

been revised retroactively to reflect the par change of THB 0.25.

• *Chicken of the Sea’s net legal accruals impact not considered for the payout calculation for 1H18 dividend payment

Slide 17

Interim dividend for the period: 1 January to 30 June, 2019

DPS THB 0.25

• Ex. Dividend Date

20 August, 2019 Record Date 21 August, 2019 Payment date 3 September, 2019

2Q19 Opportunity Day

2Q19 Financial Results

Consolidated Results

2Q19 Opportunity Day

Joerg erg Ayrle, le, Group up CFO

Investments need to be value growth-oriented to strengthen Thai Union’s portfolio.

“

”

2Q19 Opportunity Day

Antitrust litigation in USA

• Chicken of the Sea has now settled with a large

majority of plaintiffs.

• The financial exposure has been substantially

higher than originally anticipated.

• As a result, Thai Union recorded an additional

accrual of USD 60mn (THB 1,858mn) and related tax credit of THB 456mn in 2Q19.

• The net impact of this accrual was THB 1,402mn.
• We believe that the financial

impact of this litigation is now fully provided for by Chicken of the Sea. (in THB mn) 2Q19 Reported Special items 2Q19 Normalized Net sales 32,214 32,214 Cost of sales (26,850) (26,850) Gross profit 5,364 5,364 SG&A expenses (5,652) 1,858 (3,794) Operating profit (288) 1,570 Other items* 139 139 Tax 260 (456) (196) Net income 111 1,513

Slide 20 Remark: *Other items include share of profit of investment in associates and joint ventures, other income, net gain on exchange rates, finance costs, loss from discontinued operations and net profit attributable to non-controlling interests

2Q19 Opportunity Day

2Q19: Key Takeaways

COSI antitrust additional accrual

• Based on latest settlements, we recorded additional accrual by THB 1,858mn
• Net of an associated tax credit of THB 456mn, the net impact of this accrual

THB 1,402mn

• This one-off impact is excluded for performance analysis

Strong GPM

• GPM recovering at 16.7%, the record quarterly margin since 2015, from 2Q18

GPM of 14.0%

• All key three business segments contributed to margin recovery

Less favorable non-

• perating items

than last year

• FX gains lower from hedged account adoption and tax expenses higher YoY
• TU recorded insurance claims amounted THB 133mn during 2Q18
• Equity income improved mainly from Red Lobster operation improvement

Positive OP recovery

• High SG&A prompted 11.8% SG&A to sales ratio, from 10.4% during 2Q18
• Normalized OP at THB 1,570mn (up 29.6% YoY)
• Labor retirement benefit accruals according to new labor law were THB 205mn

Challenged sales

• Focusing on reducing less-profitable businesses, affecting sales
• European sales weaken from EUR and GBP currencies depreciation (6-7% YoY)
• 2Q19 Tuna raw material price down 27% YoY, affecting sales

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

Efficient inventory management amid declining tuna raw material price environment

Slide 22

%Change QoQ 20.1% 19.6%

• 4.7%

5.2% 8.3% 8.0% 14.0% 1.2%

• 22.5%

5.7%

• 12%
• 4%

+3.2%

• 16.3%

%Change YoY 13.9% 36.5% 0.2% 44.1% 30.0% 17.3% 40.2% 34.8%

• 3.5%
• 5.4%
• 27%
• 31%
• 7.8%
• 27.0%

1,257 1,503 1,433 1,508 1,633 1,763 2,010 2,033 1,577 1,667 1,467 1,408 1,453 1,217 1,200

900 1,100 1,300 1,500 1,700 1,900 2,100 2,300 2,500

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19

Tuna raw material price

(USD/ton)

Quarterly average Monthly average 1Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q16 3Q16 2Q16 4Q18 1Q19 2Q19

2Q19 Opportunity Day

33,775 34,169 36,012 29,369 32,214

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

2Q18 3Q18 4Q18 1Q19 2Q19

Sales THB mn

+9.7% QoQ

• 4.6% YoY

USD mn 929 1,020 1,059 1,036 1,098 125,183 134,375 134,937 133,285 63,104 61,583 2015 2016 2017 1H18 1H19 3.1% 7.3% 0.4%

• 1.2%

YoY Growth

2Q19 Sales decline driven by FX, lower raw material prices, and lower sales volume

Slide 23

• 2Q19 sale declined 2.2% YoY,

excluding FX impact, driven by:  Frozen and Chilled Seafood and PetCare businesses saw strong sales volume growth YoY  Ambient business saw sales decline from the falling tuna price (-27% YoY) and a keen focus on higher- margin sales.  Branded ambient business sales saw decline mainly from EUR and GBP currency depreciation of 7% against THB  Overall sales volume saw a decline

• f 2.7% YoY.

 On reported basis, 2Q19 sales were at THB 32bn, down 4.6% YoY

• 2.4% YoY
• 0.1% YoY

excluding FX

• 2.2% YoY

Before currency impacts

2Q19 Opportunity Day

2Q18 2Q19

Excluding the FX impact, 2Q19 reported a decline of 2.2% YoY

Slide 24

Revenue growth component THB mn

Remark: 1Shrimp & related business comprises of frozen shrimp and shrimp feed.

2Value-added & other products includes ready-to-eat products, frozen cephalopod, canned seafood, local products, bakery products, and sales of

scraps

• 4.6% YoY
• 2.2% YoY

Before currency impacts

32,214 33,775 -1,756

Tuna Shrimp & related business1 Sardine & Mackerel Salmon- Ambient Pet Care

Value added & other products2

USD effect EUR effect Lobster Other seafood - Ambient Salmon- Frozen Other seafood - Frozen

47

• 8
• 11

782 84 82

• 300

314 31

• 112
• 714
• 13%

+2%

• 1%
• 5%

+10% +9% +5%

• 11%

+13% +2%

• 1%
• 7%

2Q19 Opportunity Day Brand 35% **FS - Brand 6% **FS - Private Label 5% Private Label 54% Remark: *Others represent Asia, Australia, Middle East, Canada, Africa and South America **FS stands for Food Service

42% 39% 39% 38% 39% 29% 33% 31% 31% 29% 8% 8% 9% 11% 12% 6% 6% 6% 6% 5% 14% 13% 15% 15% 14% 0% 20% 40% 60% 80% 100% 2015 2016 2017 2018 1H19

Sales Breakdown by Geographic

Brand 37% **FS - Brand 6% **FS - Private Label 5% Private Label 52%

Sales Breakdown by Business

THB 61.6bn THB 133.2bn

2018 1H19

Continued push for domestic and US markets

Slide 25

• 1H19 Sales contribution in key markets

shifted in favor of domestic and US markets.  TU focused on domestic market, resulted in 19% sales growth YoY.  US sales was stable YoY, as Frozen Seafood sales growth hindered by lower ambient seafood sales  Europe sales contribution shrunk mainly due to EUR and GBP depreciating against THB in 1H19.

• 1H19 branded sales mix at 43% (compared

to 41% during 2018), private label sales contributing remaining 57% of 1H19 sales  1H19 total branded sales increased 0.2% YoY, partly due to the increased in branded aqua feed sales  1H19 private label sales was down 4.3% YoY due to increased sales volume was

• ffset by the decline in tuna raw

material price YoY

Others Japan Domestic Europe USA

2Q19 Opportunity Day

4,741 5,406 5,356 4,382 5,364 14.0% 15.8% 14.9% 14.9% 16.7%

10.0% 15.0% 20.0% 25.0% 30.0%

2Q18 3Q18 4Q18 1Q19 2Q19

Gross Profit THB mn

19,501 19,927 19,310 18,892 8,129 9,746

• 5,000

2015 2016 2017 1H18 1H19

+13.1% YoY +22.4% QoQ GPM

2Q19 Gross profit improved 13.1% YoY

• 2Q19 Gross profit was up 13.1% YoY,

 With tuna raw material prices declined during the quarter,

• ngoing product price discussion

prompted ambient seafood margin recovery,  Frozen Seafood and PetCare businesses also delivered margin improvement from price recovery and strategy to pursue more value- added products  Adjusted for labor retirement benefits, 2Q19 GPM was at 17.0%, the highest since 2015 (normalized GPM at 16.7%).

Slide 26

GPM 15.6% 14.8% 14.3% 14.2%

+19.9% YoY

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

1,212 1,866 1,499 1,020 1,570 3.6% 5.5% 4.2% 3.5% 4.9%

2Q18 3Q18 4Q18 1Q19 2Q19

Operating Profit THB mn

+29.6% YoY +53.9% QoQ

6,817 6,805 4,921 4,669 1,305 2,589

• 1,000

2015 2016 2017 1H18 1H19 OP Margin OPM 5.4% 5.1% 3.6% 3.5% SG&A% 10.4% 10.4% 10.7% 11.4% 11.8%

2Q19 Operating profit delivered strong improvement YoY

Slide 27

• 2Q19 Operating profit was at THB

1,570mn, up 30% YoY:  Strong gross margin recovery YoY  SG&A higher partly from increasing marketing expenses

• SG&A-to-sales ratio was at 11.8%

(from 10.4% in 2Q18), due to:  THB sales declined 4.6% YoY as European sales declined from weak currency and raw material price decline, prompting higher SG&A ratio.  Compared to SG&A ratio of 11.8%, the ratio would be 11.6% if restated from impact of new Thai labor law on retirement benefits of THB 81mn associated to SG&A.

+98.4% YoY

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

• 2Q19 EBITDA up 15.4% YoY,

 Gross margin improvement is the key contributor to the EBITDA improvement  Business profitability improved from a more stable raw material price environment and product mix adjustment to higher-margin portfolio

EBITDA Margin 9.2% 8.4% 8.6% 8.3% 2,834 3,254 2,703 2,818 3,271 8.4% 9.5% 7.5% 9.6% 10.2%

2Q18 3Q18 4Q18 1Q19 2Q19

EBITDA THB mn

+15.4% YoY +16.1% QoQ 11,526 11,269 11,579

11,016 5,059 6,089

• 2,000

2015 2016 2017 1H18 1H19

+20.3% YoY EBITDA Margin

2Q19 EBITDA recovery YoY

Slide 28 Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

1,368 1,731 1,223 1,273 1,513 4.1% 5.1% 3.4% 4.3% 4.7%

2Q18 3Q18 4Q18 1Q19 2Q19

Net Profit THB mn

+10.6% YoY +18.8% QoQ

5,302 5,254 5,989 5,191 2,237 2,787

• 1,000

2015 2016 2017 1H18 1H19 NPM NPM 3.0% 4.1% 5.1% 3.4%

• With strong recovery in operating

performance, TU’s 2Q19 net profit was at THB 1,513mn, up 10.6% YoY, despite the key non-operating items lowered:  FX gains of THB 164mn (from THB 222mn in 2Q18),  Tax expense of THB 196mn from improved profitability, vs THB 91mn recorded in 2Q18

• However, equity income mainly

improved from Red Lobster operation recovery YoY.

2Q19 Net profit improved 10% YoY

Slide 29

+24.6% YoY

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

Adjusted NP Margin 1,018 1,731 1,223 1,111 1,718 3.0% 5.1% 3.4% 3.8% 5.3%

2Q18 3Q18 4Q18 1Q19 2Q19

Adjusted Net Profit THB mn

+68.8% YoY +54.6% QoQ

2Q19 Adjusted net profit up 69% YoY

• Excluding the one-off quarter-end items,

2Q19 adjusted net profit was at THB 1,718mn, representing 69% increase YoY

• One-off positive items during 2Q19 of

THB 205mn comprised of:  Labor retirement benefit accruals according to the new labor law were allocated to both COGS (THB 124mn) and SG&A (THB 81mn).

Slide 30

• 79

1,718

2Q19 Normalized NP 2Q19 Adjusted NP

+81 +124

Retirement benefits - COGS

1,513

Retirement benefits - SG&A

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

1.11 1.10 1.26 1.09 0.47 0.58 2015 2016 2017 1H18 1H19 0.29 0.36 0.26 0.27 0.32 2Q18 3Q18 4Q18 1Q19 2Q19

Earning per Share (EPS)* THB

+10.6% YoY +18.8% QoQ +24.6% YoY

EPS: 2Q19 EPS was up 10.6% YoY

• 2Q19 normalized EPS was at THB 0.32,

up 10.6% YoY and 18.8% QoQ, along with the net profit trajectory.

Slide 31 Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses

• f THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

*EPS in this slide represents fully diluted EPS based on current number of shares of 4,771,815,496

2Q19 Opportunity Day

THB mn

• 2Q19, while still in negative, the net

profit has recovered from the previous year from turnaround initiatives and collaboration with TU.

• Interest income remained stable and

well-above funding cost

• As a result, the equity income and

total net income contributions to TU have both improved YoY.

2Q19: Improved operation

Slide 32

Share of profit Other income Finance costs Income tax Net income EPS (THB/share)

Red Lobster has contributed THB 168mn to net profit in 2Q19

2Q19 1Q19 4Q18 3Q18 2Q18

• 9

144

• 201

64

• 128

249 249 258 256 259

• 146
• 142
• 138
• 137
• 129

73 34

• 113

104 93 168 284

• 193

287 96 0.04 0.06

• 0.04

0.06 0.02

2Q19 Opportunity Day

5,544 2,938 8,401 2,437 2016 2017 2018 1H19

Annual Free Cash Flow THB mn

3,794 2,186 1,052 1,259 1,178 2Q18 3Q18 4Q18 1Q19 2Q19

Quarterly Free Cash Flow THB mn

Remark: Change definition of Free Cash Flow; 1Cash Conversion Rate = FCF / EBIT; FCF= EBITDA-Changes in net working capital – Change in other assets& Liabilities + non-cash expenses – CAPEX FCF is based on reported financial statement basis

Cash Conversion Rate1 1.18 0.91 0.77 0.68 0.59 Cash Conversion Rate1 0.67 0.33 0.95 0.67

• 2Q19 free cash flow was at THB

1.2bn, which was due largely to a

• ne-time legal expense from US

lawsuit,

• However, despite the significant legal

expense booked during the quarter, efficient inventory control and falling tuna price prompt a stable free cash flow profile compared to the 1Q19.

2Q19 Free cash flow weak from one-time US legal expense

Slide 33

2Q19 Opportunity Day

53 110 2,169

• 48
• 102

Free Cash Flow THB 2,437 mn Unit: THB mn ND/E 1.39x Kd = 3.20% ND/E 1.38x Kd = 3.21% 63,480 891

• 537
• 4,231

64,374

Net Debt as of 1 Jan 2019 Net Debt as of 30 Jun 2019

803

Remark: *Included 1) change in loans to associates & other companies 2) change in investments in associates and other long-term investments 3) proceeds from sale of assets 4) dividend received and 5) change in non-controlling interest

Other Investing & Financing activities* CAPEX Other non- cash expenses Tax payments Net interest paid Dividend received Change in

• ther assets

and liabilities EBITDA Change in net working capital Income tax paid and other investing & financing activities

1H19: Strong cash flow prompted THB 894mn debt repayment

Slide 34

1.35x before adoption of TFRS 9 and 16

Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

2018 2Q19

98.3% 98.2% 0.0% 1.7% 1.9%

2018 2Q19

Interest-bearing debts of THB 64,544mn

Long-term loan by maturity THB 37,780mn

By Maturity

2023

• nward

s 2022 2021

Long-term debt

Current portion

• f long-term debt

& finance lease

Short-term loan

21% 65% 14% EUR

By Currency

USD THB THB 64.5bn THB 64.5bn 23% 61% 16%

Majority THB funding, reducing risk associated to currency volatility

Slide 35

2Q19 Opportunity Day Remark: 1ROE = Annualized quarterly net profit/ Average total shareholders’ equity

2ROCE = Annualized EBIT / Average capital employed; where as Capital Employed = total assets - total current liabilities

(incl. current portion of long-term debt) and EBIT = Total revenue – COGS – SG&A + share of profit in associates and joint ventures

3Net WC day = INV day + A/R day – A/P day 4ND/E ratio = Net interest-bearing debt/ Total equity,

Net interest-bearing debt = Total interest-bearing debt - Cash & Cash equivalents including ST investment *Net debt to equity of 1.35X, before adoption of TFRS 9 and 16

Net WC3

9.9% 8.0% 7.7% 9.9% 8.0% 2Q19 1Q19 4Q18 3Q18 2Q18

ROCE2 ROE1 Net Debt to EBITDA

14.1% 11.8% 11.5% 16.2% 12.5% 2Q19 1Q19 4Q18 3Q18 2Q18

INV Days

4.85 5.63 5.95 4.92 5.73 2Q19 1Q19 4Q18 3Q18 2Q18 41,652 41,213 39,085 38,212 38,383 111 109 100 118 107 2Q18 3Q18 4Q18 1Q19 2Q19

WC (THB mn) WC Day

39,708 39,996 38,371 36,859 37,126 125 125 115 135 124 2Q18 3Q18 4Q18 1Q19 2Q19 INV (THB mn) INV Day

Keen focus on NWC management

Slide 36

1.38x 1.36x 1.39x 1.40x 1.41x 2Q19 1Q19* 4Q18 3Q18 2Q18

ND/E4

Target 4.0-4.5 Target 1.0-1.1

Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure- related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

2Q19 Financial Results

Results by Business Units

2Q19 Opportunity Day

1,633 1,763 2,010 2,033 1,577 1,667 1,467 1,408 1,453 1,217

900 1,100 1,300 1,500 1,700 1,900 2,100 2,300 2,500

Tuna raw material price

(USD/ton)

Quarterly average Monthly average

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q17 2Q17 212 169 176 175 183 141 158 145 167 139

70 120 170 220 270

Shrimp raw material price

(60pcs/kg) (THB/kg)

Quarterly average Monthly average

1Q17 2Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q17 4Q17

Source: Thai Union Group and Bloomberg

Key operating impact: Tuna and shrimp raw material prices declined to favorable, lower-end range while salmon remained at manageable level

Slide 38

In July 2019, raw material prices closed at:

• Tuna - USD 1,200/ton
• Shrimp - THB 147/kg
• Salmon - NOK 61/kg

In 2Q19, average raw material prices closed at:

• Tuna

USD 1,217/ton (-27.0% YoY, -16.3% QoQ)

• Shrimp

THB 139/kg (-1.2% YoY, -16.6% QoQ)

• Salmon

NOK 65/kg (-5.4% YoY, +3.1% QoQ)

Prices continued to decline at a manageable level Price trending upward after some retracement from peak last year

66 67 59 53 60 69 58 58 64 65

40 50 60 70 80 90

Salmon raw material price

(NOK/kg)

Quarterly average Monthly average

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1Q17 2Q17

Fluctuation in the range

• f 140-160 THB/kg since

2018

2Q19 Opportunity Day 43.52 43.87 43.69 43.74 43.93 43.44 42.99 42.19 41.18 40.60 36.0 38.0 40.0 42.0 44.0 46.0 48.0 Quarterly average Monthly average 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 2Q19 1Q19 4Q18 37.41 37.72 39.20 38.78 38.78 38.05 38.35 37.42 35.90 35.48 34.0 35.0 36.0 37.0 38.0 39.0 40.0 41.0 Quarterly average Monthly average 1Q17 2Q17 3Q17 4Q17 3Q18 4Q18 1Q19 1Q18 2Q18 2Q19 35.12 34.30 33.39 32.95 31.54 31.92 32.97 32.81 31.61 31.59 28.0 30.0 32.0 34.0 36.0 38.0 ม.ค.-17 มี.ค.-17 พ.ค.-17 ก.ค.-17 ก.ย.-17 พ.ย.-17 ม.ค.-18 มี.ค.-18 พ.ค.-18 ก.ค.-18 ก.ย.-18 พ.ย.-18 ม.ค.-19 มี.ค.-19 พ.ค.-19 ก.ค.-19 Quarterly average Monthly average 1Q17 2Q17 3Q17 4Q18 1Q19 4Q17 1Q18 2Q18 3Q18 2Q19

In July 2019, average FX rates closed at: USD/THB – THB 30.79 EUR/THB – THB 34.56 GBP/THB – THB 38.47 In 2Q19, average FX rates closed at: USD/THB THB 31.59 (-1.0% YoY, -0.1% QoQ) EUR/THB THB 35.48 (-6.8% YoY, -1.2% QoQ) GBP/THB THB 40.60 (-6.5% YoY, -1.4% QoQ)

USD/THB EUR/THB

Key operating impact: Euro and GBP weakest against Thai Baht since 1985, affecting our sales

Slide 39

GBP/THB

Source: Thai Union Group Continued decline since 2Q18 and remains a risk factor

Risk factor

Continued depreciation with recent sharp decline

Risk factor

Continues to decline against THB after gaining strength in 2018

2Q19 Opportunity Day Tuna Tuna slices Sardine & mackerel Ambient and pouch salmon

Sales: THB 24,964 mn Frozen, chilled seafood and related

41% 45%

59% 41%

Sales Split

36% 64% 13% 87%

15%

Brand Private label Brand Private label Brand Private 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 4.Other products include scrap, fishery and others Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

Slide 40

3 strategic business segments

Total 6M19 sales: THB 61,583 mn

Sales: THB 27,488 mn Ambient seafood Sales: THB 9,131 mn PetCare, value-added and others

Shrimp and related 1 Lobster Frozen, chilled & smoked salmon Other seafood2 PetCare Marine ingredients Value-added 3 Other products4

2Q19 Opportunity Day [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E]

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19

Sales (THB million) Quantity (Tons) Gross Profit Margin (Percent)

• 14.3% YoY

+4.3% QoQ

• 16.9% YoY
• 2.4% QoQ

Brand Private label Brand Private label Total Brand Private label

[CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E]

16,363 16,806 14,994 13,456 14,031

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19 22% 21% 17% 20% 23% 12% 16% 16% 17% 22% 18% 19% 17% 19% 22%

2Q18 3Q18 4Q18 1Q19 2Q19

Ambient Seafood: Gross margin recovery despite weak sales

Slide 41

• 2Q19 ambient sales declined 14.3% YoY,

while gross profit improved 9.1% YoY.

• Weak sales were partly attributed to the

depreciating European currencies (EUR/THB

• 6.8% YoY and GBP/THB -6.5% YoY)
• Gross profit margin at 22.4%, up from 17.6%

in 2Q18:  Falling tuna price environment  A focus on higher-value product sales  Automation implementation enables a more efficient work process.

79,973 93,855 93,236 88,841 78,018

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

8% 8% 9% 10% 10% 9% 11% 10% 7% 9% 8% 10% 10% 8% 9% 2Q18 3Q18 4Q18 1Q19 2Q19

Frozen, chilled seafood and related: Solid growth and salmon business turnaround

Slide 42

• 2Q19 frozen and chilled seafood sales up 3.6%

YoY, driven mainly by volume growth (10.0% YoY) that outpaced raw material price decline (shrimp -1.2% YoY; salmon -5.4% YoY).

• Gross profit margin was at 9.4%, up 70bps

YoY, attributed to margin improvement in all shrimp, salmon and lobster business.

• European salmon business margin recovered

from business restructuring and price recovery to reflect prevailing salmon price.

Sales (THB million)

+3.6% YoY +16.5% QoQ

Brand Private label

[CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E]

12,962 13,031 15,651 11,529 13,435

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19

[CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE]

[CELLRANG E] [CELLRANG E] [CELLRANG

E] [CELLRANG E] 62,253 63,443 67,552 61,862 68,504

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19

Quantity (Tons)

+10.0% YoY +10.7% QoQ

Brand Private label

Gross Profit Margin (Percent)

Total Brand Private label Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day

• PetCare and valued added sales increased

6.7% YoY, on the back of sales volume increase 5.9% over the same period.  Pet food business delivered a solid sales growth, driven mainly by sales volume.  Value-added products and others segment reported significant business growth in can manufacturing subsidiary.

• Gross margin has improved due to strong

sales growth and growing value-added product sales mix.

+5.9% YoY

[CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE]

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19

[CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E]

4,450 4,332 5,367 4,384 4,747

• 1,000.00

2Q18 3Q18 4Q18 1Q19 2Q19 17% 21% 24% 22% 20% 2Q18 3Q18 4Q18 1Q19 2Q19

Brand Private label

PetCare, value-added and others: Growth story continued

Slide 43

Sales (THB million)

+6.7% YoY +8.3% QoQ

Brand Private label

Quantity (Tons)

• 0.5% QoQ

Total

Gross Profit Margin (Percent)

67,508 63,759 67,126 73,769 67,838

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Opportunity Day Slide 44

Thai Union’s geographic diversity: Sales

(Asia, Australia, Middle East, Africa and South America)

United States and Canada

42%

Europe

28%

Thailand

13%

17%

Others

2Q19 Opportunity Day

12,931 12,801 15,192 12,207 12,792

• 2,000

2Q18 3Q18 4Q18 1Q19 2Q19

Sales THB mn

• 1.1% YoY

+4.8% QoQ

US & Canada: Strong growth in frozen seafood segment

Slide 45

• 2Q19 North America sales declined by

1.1% in Thai Baht term.  USD depreciated 1.0% YoY vs Baht  US Frozen businesses, both shrimp and lobster, deliver solid sales growth  US Canned tuna sales dropped on lower sales of lower-margin products  Thai export to US declined due to USD depreciation against THB

• Red Lobster operation improved YoY

2Q19 Opportunity Day

• Chicken of the Sea Frozen Foods launched a fully prepped,

ready-to-eat cooked lobster meat packed in an innovative vacuum-sealed, five-ounce packaging under Orion Seafood brand.

• It has been rolled out in national retailers and wholesale club

chains in United States, such as Meijer and BJ’s, with an aim to introduce to Retail, Club and Foodservice channels

Product launch: Chicken of the Sea Frozen Foods introduces Orion Cooked Lobster Meat Retail Pack

2Q19 Opportunity Day

Chicken of the Sea launches new premium product line: Wild Catch

Slide 47

• Thai Union is continuing expansion of its product portfolio

with national launch of “Wild Catch” product line under Chicken of the Sea brand in United States on 5 August 2019

• Chicken of the Sea Wild Catch is a range of premium,

responsibly wild-caught seafood, including Albacore, Ahi Yellowfin and Alaskan Salmon. Thai Union’s SeaChange program is featured on pack.

• It is 100% natural, packed with just hand-selected fillet pieces,

water and sea salt.

• Transparent pack allows consumers to see for themselves a

higher standard of quality.

TBU – pending from COSI

2Q19 Opportunity Day

• 2Q19 European sales declined 8.3%

YoY in Thai Baht term, largely driven by weakened EUR and GBP exchange rate against Thai Baht YoY,

• However, EU branded tuna business

still delivered gross profit improvement due to more stable tuna raw material price environment.

10,612 10,890 10,503 8,198 9,726

2Q18 3Q18 4Q18 1Q19 2Q19

Sales THB mn

• 8.3% YoY

+18.6% QoQ

Europe: Weak revenue well-compensated by improved profit

Slide 48

2Q19 Opportunity Day

King Oscar (USA) introduced Royal Selection Brisling Sardines self-stable line in unique see-through packaging with easy-peel lid for bold product differentiation in April 2019. MSC certified, sustainably wild-caught fish, specially selected non-GMO ingredients, and unique recipes for super premium quality. Shipping soon to select retailers in USA (incl. KeHe, Albertsons/Safeway, Jewel, Supervalu, Lunds, Cub, Amazon, and shortly to additional strategic customers).

Slide 49

King Oscar (USA) launches super premium, certified sustainable line of Brisling Sardines in boldest packaging ever …SEE THROUGH LID!

Product launch: Packaging innovations

2Q19 Opportunity Day Slide 50

Hawesta launches two ready-to-eat innovations to Germany, Tuna Infusions, and a fourth variety of the Tuna Salads

Product launch: Ready-to-eat innovations

• In March 2019, Hawesta launched fourth variety,

Couscous, to expand Tuna Salads product line

• Three varieties of Tuna Salads were launched in

2017 and are well established in Germany (16.6% market share)*

• Tuna Salad Mexico is among top 10 products of

Hawesta and Rügenfisch portfolio

*Source: IRI MAT June 2019, value

• Hawesta launched three varieties of

Tuna Infusion in May 2019

• The ready-to-eat product is a real

innovation in the German seafood market.

2Q19 Opportunity Day

• 2Q19 Thailand sales up 19.4% YoY.
• Diversifying sales in home market to
• ffset weaker export market from THB

appreciation against key currencies

• Strong export sales from Ambient,

Frozen and PetCare business

Thailand: Star performer

Slide 51

3,169 3,379 4,242 3,853 3,785

2Q18 3Q18 4Q18 1Q19 2Q19

Sales THB mn

+19.4% YoY

• 1.8% QoQ

2Q19 Opportunity Day

Product launch: Chicken of the Sea Infusions makes it way to Thai supermarkets

• Chicken of the Sea Infusions was recently

launched in the Thai market through Thai Union’s subsidiary and Sealect brand distributor, SeaHolding

• Now available at 7-11 and Tops Supermarket

in Thai Chili and Sun-Dried Tomato flavors, and soon to come to WeFitness gym club

• Ready-to-eat, flavored tuna, shelf-stable

product

2Q19 Opportunity Day

2Q19 Opportunity Day

7,063 7,099 6,075 5,111 5,911

2Q18 3Q18 4Q18 1Q19 2Q19

Sales THB mn

• 16.3% YoY

+15.7% QoQ

EM and rest of the world: Falling raw material prices hurt sales

Slide 54

• 2Q19 sales was at THB 5.9bn, down

16.3% YoY mainly driven by the weak sales to Middle East, attributable to both the falling tuna prices and lower sales volume.

• China sales delivered sales decline

from the previous year, partly driven by falling shrimp price YoY.

2Q19 Opportunity Day

• In May 2019, Thai Union China showcased King

Oscar China brand at SIAL Expo, 3rd largest food show in the world

• Exhibitors: major market players from retail,

HoReCa, food services, import/export trade and manufacturing.

• Sets benchmark for overseas companies

stepping into Asia and China and provides valuable market insights, trends and innovations of regional food industry.

Thai Union China showcases premium quality seafood at SIAL Expo 2019, Red Lobster opens 1st branch in Beijing

Global expansion: China remains key growth market

• Red Lobster opened 1st branch in Beijing,

China, in July 2019, as part of the American casual dining chain’s international expansion

• Located in Taikoo Li, mainly with American

expats and study-abroad Chinese consumers

• Key selling points: fresh, reasonably priced

seafood, fun atmosphere, and ability to accommodate large groups

Photo Credits: Annabelle Lim/timeoutbeijing.com (1, 3, 4), Kyle M./theBeijinger.com (2)

(1) (2) (3) (4)

2Q19 Opportunity Day

Remark: 1Shrimp & related business includes frozen shrimp, shrimp feed and value-added shrimp

Excluding one-time net accrual for US legal-related settlement of THB1,402mn (2Q19) and THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

2Q19 Segment profitability

Slide 56

Gross profit THB million Margin % Sales THB million Business segment 5,364

Ambient seafood

• Tuna
• Sardine and mackerel
• Ambient and pouch salmon

14,031 22.4 3,140

Frozen, chilled seafood and related

• Shrimp and related 1
• Lobster
• Frozen, chilled and smoked salmon
• Other seafood2

13,435 9.4 1,261

PetCare, value-added and

• thers
• PetCare
• Value-added and others1
• Other products2

4,747 20.3 963 Total 32,214 16.7

2Q19 Opportunity Day

Business Outlook

Thai Union Group PCL.

2Q19 Opportunity Day

Appendix

Slide 59

2Q19 Opportunity Day

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 5 10 15 20 25

2013 2014 2015 2016 2017 2018 2019

TU SET

Minimum 50% payout of our net profit with semi-annual payments

THB

Bloomberg/ Reuters TU TB/ TU.BK Share price (5 August, 2019) THB 18.90 Historical price 52-week high THB 17.70 52-week low THB 17.10

• No. of paid up shares

4,771.8mn Par value THB 0.25 Market Capitalization THB 90.2bn

Chansiri Family 19.5% Thai NVDR 11.2% Mitsubishi Corporatio n 7.3% Social Security Office 7.2% Niruttinano n Family 6.9% Others 48.0%

Source: SET and TU

As of 28 June, 2019 Free float 67.4% Foreign ownership/ Foreign limit 32.4%/ 45.00%

Share capital information

Slide 60

Stock Performance at a Glance Major Shareholders Dividend Policy DPS (THB per share)

Period 1H19 2H18 1H18 2H17 1H17 2H16 1H16 DPS 0.25 0.15 0.25 0.34 0.32 0.31 0.32

*The company changed the par value from THB 1 to THB 0.25 and registered with the Ministry of Commerce on 25 Dec 2014.

2Q19 Opportunity Day

2Q19 Income statement

Slide 61 2Q19 2Q19 2Q18 1Q19 Change Change Sales 32,214 100% 33,775 100% 29,369 100%

• 4.6%

9.7% Cost of sales (26,850)

• 83.3% (29,035)
• 86.0% (24,987)
• 85.1%
• 7.5%

7.5% Gross profit 5,364 16.7% 4,741 14.0% 4,382 14.9% 13.1% 22.4% SG&A expenses (3,794)

• 11.8% (3,529)
• 10.4% (3,362)
• 11.4%

7.5% 12.8% FX gain (loss) 164 0.5% 222 0.7% 80 0.3%

• 26.1%

104.4% Other income 498 1.5% 628 1.9% 497 1.7%

• 20.7%

0.1% Share of profits from investments in assoc. & Jvs 110 0.3% 44 0.1% 347 1.2% 150.4%

• 68.3%

EBIT 2,342 7.3% 2,105 6.2% 1,945 6.6% 11.2% 20.4% Finance cost (516)

• 1.6% (498)
• 1.5% (528)
• 1.8%

3.6%

• 2.3%

EBT 1,826 5.7% 1,607 4.8% 1,417 4.8% 13.6% 28.9% Tax (196)

• 0.6% (90)
• 0.3% (27)
• 0.1%

116.6% 623.8% Profit (Loss) from discontinued operarion (29)

• 0.1% (38)
• 0.1% (43)
• 0.1%
• 23.7%
• 32.6%

Net income 1,601 5.0% 1,479 4.4% 1,347 4.6% 8.3% 18.9% Net income (loss) attributable to: Equity holders of the Company 1,513 4.7% 1,368 4.1% 1,273 4.3% 10.6% 18.8% Non-controlling interests of the subs 87 0.3% 110 0.3% 73 0.2%

• 20.9%

19.3% Earnings per share Basic earnings per share 0.32 0.29 0.27 10.6% 18.8% Exchange rate THB/USD 31.59 31.92 31.61

• 1.0%
• 0.1%

(Unit: THB mn) 2Q19 % to sales 2Q18 % to sales % to sales Consolidated 1Q19

2Q19 Opportunity Day Remark: *Including short-term investments

Statement of Financial Position as of 30 June 2019

Slide 62

Cash and cash equivalents* 1,063 0.8% 972 0.7% 9.4% Trade and other receivables - net 15,422 11.0% 15,637 10.9%

• 1.4%

Inventories - net 37,126 26.5% 39,708 27.7%

• 6.5%

Other current assets 3,041 2.2% 2,040 1.4% 49.1% Total current assets 56,652 40.4% 58,357 40.7%

• 2.9%

Fixed assets 27,542 19.7% 26,320 18.4% 4.6% Investments 21,474 15.3% 23,475 16.4%

• 8.5%

Goodwill and other intangible assets 28,398 20.3% 30,530 21.3%

• 7.0%

Other non-current assets 6,050 4.3% 4,708 3.3% 28.5% Total Assets 140,116 100% 143,390 100%

• 2.3%

Bank overdrafts and short-term loans 15,688 11.2% 14,145 9.9% 10.9% Trade and other payables 18,946 13.5% 18,843 13.1% 0.5% Current portion of long-term loans 9,989 7.1% 3,916 2.7% 155.1% Other current liabilities 887 0.6% 2,027 1.4%

• 56.2%

Total current liabilities 45,509 32.5% 38,930 27.1% 16.9% Long-term loans 38,867 27.7% 47,863 33.4%

• 18.8%

Other non-current liabilities 9,727 6.9% 10,483 7.3%

• 7.2%

Total Liabilities 94,103 67.2% 97,276 67.8%

• 3.3%

Non-controlling interests of the subsidiaries 3,502 2.5% 3,140 2.2% 11.5% Total Shareholders’ Equity 42,511 30.3% 42,974 30.0%

• 1.1%

Total liabilities and shareholders’ equity 140,116 100% 143,390 100%

• 2.3%

(Unit: THB mn) 2Q19 % to total assets 2018 % to total assets Change

2Q19 Opportunity Day

2Q19 Statement of cash flow

Slide 63 Remark: *Figures as reported in August 2019

(Unit: THB mn) 1H19 1H18 Change Profit before income tax 1,349 1,069 279 Adjustments for depreciation & amortisation expenses 1,803 1,437 366 Other adjustments 970 1,658 (688) Changes in operating assets and liabilities 484 3,551 (3,067) Cash flows receipts from operating activities 4,606 7,716 (3,110) Net cash receipts (payments) from operating activities 4,654 7,529 (2,875) Net cash payments for investing activities (2,307) (2,124) (184) Net cash receipts (payments) for financing activities (3,004) (5,308) 2,304 Net increase (decrease) in cash and cash equivalent (657) 97 (755) Cash and cash equivalents - opening balance 1,311 573 738 Exchange gain (loss) on cash and cash equivalents (59) 2 (61) Cash and cash equivalents - closing balance 594 672 (78) CAPEX 2,169 2,553 (384) Management Est. Free Cash Flows* 2,437 5,163 (2,726) Consolidated

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