3Q14 Results Presentation 14 November 2014 Disclaimer The - - PowerPoint PPT Presentation

3Q14 Results Presentation

14 November 2014

The information contained in our presentation is intended solely for your personal reference

• nly. 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.

Disclaimer

Agenda

 Company Overview  Key Highlights  9M 2014 Financial Results  Business Outlook

3

More than 37 years of seafood processing experience

Remark: *Increased in 3Q12; **Divested all shares in 1Q13, ***Increased in 3Q14 , ****Completed in 4Q14 Established Thai Union Frozen Products TUF was listed on the Stock Exchange of Thailand Expanded capacity of canned seafood manufacturer Set up Chicken of the Sea Frozen Foods Expanded capacity of canned tuna in Indonesia Entered to canned seafood in Vietnam Acquired leading canned seafood brands in EU 2006 2008 2010 1988 1994 1998 2014**** Founded Thai Union Manufacturing Strategic partnership with Mitsubishi Corp Acquired third largest canned seafood brand in US Expanded to frozen seafood products in US Entered to tuna fishing in Indian Ocean Expanded to shrimp feed business in India Expanded capacity of frozen shrimp 1977 1992 1997 & 2001 2009 2003 2007 2012-2013 Acquired leading smoked salmon in EU Acquired #1 premium sardine brand in Norway, US & Australia

90% 100% 51% 100% 100% 100% 88.8%** 15%  25.12%* 40%  77.13%***

Expanded to shrimp farming in Thailand 2012

51%

Set up pet food business in US 2010

50%  100%

4 Group 3

Animal Feeds and Aquaculture

Group 4

Thai Domestic Market

Group 5

Overseas Investment

Century Trading (CTS)

Group 1

Frozen and Canned Seafood

Group 2

Packaging Products

Associated Companies

Remark: *Investment held by SC; **Investment held by TUM Source: TUF (as of August 2014)

Thai Union Frozen Products

Frozen & canned seafood, pet food, snack and ready-to-eat meals

Group Structure

Thai Union Manufacturing (TUM) Producer of canned tuna & pet food Songkla Canning (SC) Producer of pet food Thai Union Seafood (TUS) Processor of frozen shrimp Pakfood (PPC) Processor of seafood & Ready-to-eat Asian Pacific Can (APC) Producer of empty can Thai Union Graphic (TUG) Printing Thai Union Feedmill (TFM) Producer of shrimp feed TMAC Shrimp hatchery and farming T-Holding (THD) Food distributor for Thai market Thai Union International (TUI) US-based holding company Tri-Union Seafoods (TRI-U) Processor of shelf-stable seafood in US U.S. Pet Nutrition (USPN) Processor and distributor

• f pet food in US

Canadian Pet Nutrition Producer and distributor

• f pet food

Tri-Union Frozen Products (TUFP) Importer and distributor of frozen seafood Thai Union Investment Holding (TUIH) Holding company for investment in MW Brands SAS Yueh Chyang Canned Food (YCC) Canned tuna processor

50.00%**

5

A seafood focus company

Brand 43% OEM 57%

9M14 Total Sales THB 88,630 million (USD 2.743 billion)

Canned tuna & Frozen tuna loin

% Total sales 47% 22% 2% 5% 4% 7% 13%

Frozen shrimp & Shrimp feed Canned sardine & mackerel Canned & Frozen salmon Pet food Ready to eat food Frozen cephalopod Other canned seafood Bakery products Scrap

61% 21% 100% 66% 56% 1% 17% 39% 79%

• 34%

44% 99% 83%

Tuna Salmon Pet food

Value added & other products

Sardine & Mackerel

OEM Brand

Shrimp & related business

6

#1 Global leader in a consumer staple business

TUF 18% Others 82%

World Canned Tuna Annual Production1

1.67 million tons

TUF is the world’s largest canned tuna producer, with the processing volume 18% of world production.

Source: 1Fishstat Plus (FAO) 2010, based on finished product production

7

Global market leading brand portfolio

Remark: *Completed acquisition of King Oscar in 4Q14

• #1 canned seafood

brand in the UK, Ireland and the Netherlands

#1

• #1 canned

seafood brands in France

#1

• #1 premium

canned sardine brand in France

#1

• #1 premium canned

sardine brand in US, Norway, Australia *

#1

• #1 canned tuna

brand in China

• (by sales value)

#1

• #1 canned tuna

brand in Thailand

#1

• # 1 frozen seafood

importer and distributor in the US

#1

• #2 tuna brand

in Italy

#2

• #3 canned seafood

brand in the US

#3

Fully integrated global supply chain in canned tuna…

Raw material sources Raw material flow Work-in-process and finished good flow Production base Fishing fleet

8

Indian ocean West Pacific Ocean

Thailand USA Europe Ghana Seychelles

Atlantic ocean TUF’s 7 own fleets

Vietnam Papua New Guinea

Fisheries Processing Canning Marketing

Raw Material Acquisition Production Marketing

• 7 own fishing vessels with

capacity of 39,000 tons per year

• Covers the Atlantic Ocean
• 8 locations in 7 countries
• Maximum capacity is approximately

610,000 tons per year

• 6 Brands
• 5 Continents

Can & Label Production

• Empty can and

printing factories in Thailand

… and frozen shrimp business

9

Breeding Shrimp Feed Processing Farm

• Shrimp breed

development & hatchery in Thailand

• 2nd largest Thai

producer with annual capacity

• f 330,000 tons
• Small farms in

the South and partner farms in Thailand

• 2 locations in Thailand
• Total capacity of 110,000 tons

per year Marketing Value Adding

• Chicken of the Sea

Frozen Food

• 3 Continents

Raw Material Acquisition Production Marketing

Full traceability

Indian ocean Pacific ocean

Thailand USA Europe Japan

Atlantic ocean

Asia Oceania

India Latin America China Vietnam

TUF’s export markets Production base COSFF’s sourcing COSFF’s distribution Chicken of the Sea Frozen Food (COSFF)

Full Traceability

10

M&A driving market diversity

58% 49% 36% 40% 8% 13% 32% 30% 7% 11% 10% 7% 14% 12% 10% 8% 12% 15% 13% 14% 0% 20% 40% 60% 80% 100% 2003 2009 2011 2013 Others* Japan Domestic Europe USA

Remark: *Others represent Asia, Australia, Middle East, Canada, Africa and South America

Total Sales (THB million) 40,408 69,697 99,589 114,277

2010

43% 31% 7% 7% 12% 9M14 Total Sales THB 88,630 million Geographic Sales Breakdown

US market showed strongest sales growth thanks to higher sales from the US frozen shrimp trading operation.

Share Capital Information

Bloomberg/ Reuters TUF TB/ TUF.BK Share price (10 Nov 2014) : THB 80.00 Historical price : 52-week high THB 83.00 52-week low THB 55.00

• No. of paid up shares :

1,192.95m Par value : THB 1.0 Market Capitalization : THB 95.4bn

Stock Information

Chansiri Family 23.06% Niruttinanon Family 7.49% Mitsubishi Corporation 7.58% Thai NVDR Co., Ltd. 6.68% Social Security Office 3.64% Free float : 60.33% Foreign ownership : 36.64% Foreign limit : 45.00%

Dividend Information

Source: TUF and SET

Year DPS (THB/Share) % Payout 2005 1.20 50 2006 1.13 50 2007 1.11 54 2008 1.26 51 2009 1.92 51 2010 1.60 50 2011 1.56 29 2012 2.10 51 2013 1.49 60 1H2014 1.20 56

Share Price Performance Major Shareholders

(As of 28 Aug 2014)

200 400 600 800 1,000 1,200 1,400 1,600 1,800 1/4/2010 1/4/2011 1/4/2012 1/4/2013 1/4/2014

TUF (LHS) SET Index (RHS) THB

2010 2011 2012 2013 2014

11

Key Developments

Driving positive changes within community & conserving environmental

19 Aug 2014: The opening of the 2nd TUF Child Care Center

• Offers basic preparatory and primary education equally

to children of Thai and foreign nationalities in Samut Sakhon province

• Prepares them for admission into the formal Thai

education system in later years.

12

25 Aug 2014: Planting mangrove saplings with Kung Krabaen Bay Royal Development Study Centre and the Satree Manda Pitak School of Chanthaburi under the concept of “Reforest, Foster the People and Conserve the Environment under Royal Initiation”

• Promote environmental conservation and mangrove forest

preservation awareness with Thai youths

Key Developments (Cont’d)

Recent awards & recognitions

22 Sep 2014: Thailand’s Corporate Brand 2014

• Rising Stars Award

The highest brand value growth in the agriculture and food sector with THB 11.958bn current brand value The award is based on a research on evaluating and ranking corporate brands in Thailand conducted by the Faculty of Commerce and Accountancy, Chulalongkorn University.

13

22 Sep 2014: TUF is the first and only Thai company in the food category which has been selected as an

• fficial

member

• f

DJSI Emerging Markets.

4 food companies in the DJSI EM index 17 food companies in all of DJSI indices 10 Thai companies listed in DJSI various indices

1 a

• f

6 Nov 2014: TUF will be added in MSCI Asia Pacific Index

MSCI announced the results of the November 2014 Semi Annual Index Review for the MSCI Equity Indexes. All changes will be implemented as of the market close of November 25, 2014.

Source: Chulalongkorn University; DJSI’s Press Release, www.sustainability-indices.com ; MSCI

Key Developments (Cont’d)

14

THB debenture private placement

ThaiBMA symbol TUF21OA Issued size THB 1,000mn Coupon rate 4.21% p.a. Tenor 7 years Maturity date 9 Oct 2021

• 9 Oct 2014: TUF issued the unsubordinated and unsecured debentures for limited investor groups

amounting to THB 4,500mn (4,500,000 units @ THB1,000)

• The proceeds will be used for debt refinancing and future expansion.

ThaiBMA symbol TUF24OA Issued size THB 3,500mn Coupon rate 4.58% p.a. Tenor 10 years Maturity 9 Oct 2024

Redemption of THB debenture

• 27 Jul 2014: TUF redeemed THB 3,300mn unsubordinated and unsecured debenture. This debenture

was issued in 2011 with 4.51% coupon rate.

Key Developments (Cont’d)

15

• TUF issued Euro Convertible Bond (ECB) to Standard Chartered Private Equity Limited (SCPE) in

Oct 2010 as part of TUF’s financing scheme for MWB acquisition. TUF accrued additional interest expense of THB 215mn in 2Q14 (reversed in 3Q14) for expected ECB redemption in October.

• 10 Oct 2014: SCPE exercised its right to convert the whole amount of ECB into 45,360,045

common shares.

Issued size EUR 60mn (42,857,143 units) or approx. THB 2,400mn Coupon 5% p.a. ( or 8% yield unless converted into common shares) Maturity date 27 Oct 2014 Conversion ratio 1 unit: 1.0584 common shares @ THB 52.91 per common share

Background Impact to TUF

Income statement

• One-time reversal of accrued interest expenses (THB 215mn)

in 3Q14

• 3.8% dilution effect on EPS in 4Q14

Statement of financial position

• Increase of the number of paid up shares to 1,192.95mn by

additional shares of 45,360,045 in 4Q14.

• Shareholders’ Equity increased by THB 2,400mn from THB

40,816.35mn in 2Q14 due to this conversion. Cash flows statement

• None. No cash flows for principal repayment
• Instead of repayment the principal to SCPE, TUF's financial strength will be enhanced, further

reducing ND/E ratio and interest expense going forward.

ECB Conversion strengthened financial position

Key Developments (Cont’d)

16

Change par value

Par value (THB) Number of shares

Current

1.00 1,192,953,874

New

0.25 4,771,815,496 Paid up capital (THB) 1,192,953,874 1,192,953,874 Tentative timeline

Successful M&A and JV story during 2009 – 2013

17

Year 2009 & 2012 2010 2012 - 2013

Transaction Invested in Avanti Feeds Limited (15% in 2009 and to 25.12% in 2012) Acquired 100% of MW Brands,

• ne of the largest canned

seafood manufacturers in Europe with market-leading brands) Acquired of Pakfood PCL, one of the largest Thai shrimp processors for exports to the US. (49.97% in 2012 and 77.06% in 2013) Business Leading shrimp feed manufacturer in India Canned seafood manufacturer with brands Frozen shrimp & dim sum manufacturer Key markets India France, UK, Ireland, the Netherlands and Italy USA, Japan and Europe Highlights Transaction size THB117mn EUR680mn THB1,325mn

Current share price (11 Nov 2014): INR1,971.50 per share Share price before JV (29 Oct 2009): INR22.00 per share

2014 Strategic acquisitions

18

Period September October

Transaction Acquired 100% of MerAlliance, the leading French- based company Acquired 100% of King Oscar, one of the world's top ten seafood brands Business European smoked salmon producer The number one brand in the highly unique and premium sardine category in Norway, USA and Australia Key markets France, Poland, and UK Norway, USA, Australia, and Poland Rationale

• For product extension into the seafood chilled

category in Europe

• To expand a market presence and leverage &

reinforce TUF’s subsidiary MW Brands’ position in the European market (the single largest smoked salmon market in the world)

• To strengthen TUF’s position in the sardine

category owing to King Oscar’s top ten strongest seafood brands globally with presence in 16 countries worldwide

• Expect to see synergies on brands/ products

development and expansion into different geographies Sales USD220mn USD80mn EBITDA margin 6%-7% 11%-12%

Agenda

 Company Overview  Key Highlights  9M 2014 Financial Results  Business Outlook

3Q14: The best ever quarterly performance

20

Revenue

THB million

Gross Profit

% GPM

Net Profit

%NPM

30,423 5,246

17.8%

1,922

6.3%

3Q14 Key Highlights

21

 Sales +3.3% YoY from weaker THB (USD sales +1.3%). Key growth drivers were the stronger sales of value-added & other products and pet food business. Sales from the US market showed strong growth YoY thanks to our US frozen shrimp trading operation.  Strong recovery of GPM to 17.2% thanks to low fish costs and recovery of USPN operation.  SG&A +19.1% YoY due mainly to higher sales promotion and one-off asset impairment at USPN operation. Excluding this one-off, %SG&A/sales should have been 9.6%.  Record earnings with stronger EBITDA. Net profit +91.4% YoY to THB 1,922mn with 6.3% NPM thanks to higher GPM, higher FX gain, and one-off reversal of accrued interest expense from ECD conversion in October.  ND/E remained at 0.8x from THB debenture redemption and ECD conversion.

1,823 2,038 5,612 10,246 4,794 4,393 8,784 14,469

Financial Summary1

(THB million)

88,630 82,025

A record quarter with strong earning growth in 9M14

22

Remark: * Excluding one-time pre-operating expense from startup PNG operation booked in Share of Profit from Investments in Associates (THB 64 million) in 1Q14,

• ne-time additional accrued interest expense booked in 2Q14 upon expected redemption of ECD in October (THB 215 million), one-time reversal of accrued

interest expenses (THB 215mn) in 3Q14, and one-off asset impairment at USPN operation (THB 561 million) for 9M14 booked in COGS and SG&A. ** Excluding one-time insurance compensation booked in Other Income (THB 215 million) in 1Q13 Source: 1TUF; 2SET (Jan 2’ 13: THB73.50/ share, Dec 27’ 13: THB71.75/ share, Jan 2’14: THB70/share, Nov 10’14: THB80/share )

Gross Profit Total Sales EBITDA Normalized Net Profit

9M14 9M13

+8.1% +41.2% +56.5% +163.1%

Reported 9M14 net profit boosted by 116% YoY to

THB 4,393million

Lower ND/E due to lower working capital requirement Share price movement

20132

(Jan-Dec 13)

• 2.4%

20142

(Jan- Nov 10 ’ 14)

+8.8%

Q1’12 Q1’11 9M14 9M13 9M14 9M13

2013

0.92x

3Q14

0.80x

9M14 9M13

Reported Net Profit +115.6%

9M14* 9M13**

Agenda

 Company Overview  Key Highlights  9M 2014 Financial Results  Business Outlook

24

25,304 26,758 28,327 26,309 24,441 28,119 29,464 30,788 27,948 30,258 30,423 17.2% 16.9% 15.7% 11.6% 10.9% 12.4% 13.9% 12.9% 14.9% 16.7% 17.2% 5.8% 3.7% 5.7% 2.3% 2.8% 1.3% 3.4% 2.6% 3.4% 5.0% 6.3%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Total sales (THB mn) GPM NPM

Continued sequential recovery in 3Q14 … … from strong performance of overseas subsidiaries

% Growth YoY Sales

• 3.4

5.1 4.0 17.0 14.3 7.6 3.3 Gross profit

• 38.7
• 22.5
• 8.1

29.9 56.0 44.9 32.8 Net profit

• 54.0
• 64.2
• 37.7

33.1 40.8 323.9 91.4

82,025 88,630

9M13 9M14

Value-added & Other products2 Pet food Salmon Sardine & Mackerel Shrimp & related business1 Tuna

Sales growth driven by weaker THB

29,464 30,258 30,423

3Q13 2Q14 3Q14

Sales Breakdown by Category

THB mn

• 3Q14 total sales were slightly grew YoY thanks to weaker THB and higher sales of

value-added & other products and pet food business. QoQ sales were stable due to lower tuna sales despite higher sales of shrimp & related business and value-added &

• ther products.
• THB depreciation as well as stronger sales from value-added & other products, tuna,

shrimp & related business, and pet food drove resilient YoY sales growth for 9M14.

• 9M14 branded business sales increased to 43% of total sales (from 41% in 2013)

thanks to stronger sales of the US and EU operation.

• US market showed strongest sales growth thanks to higher sales from the US frozen

shrimp trading operation. Brand 43% OEM 57%

By Business 25

+8.1% YoY

USD mn 936 932 948 2,694 2,743

+3.3% YoY +0.5% QoQ

By Geographic

40% 43% 30% 31% 7% 7% 8% 7% 14% 12% 2013 9M14 USA Europe Domestic Japan Others

Remark: 1Shrimp & related business includes 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

9M14

50 100 150 200 250 300 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 500 1,000 1,500 2,000 2,500 3,000 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14

White shrimp raw material prices

(THB/kg. of 60 pcs./kg)

197 (Oct’14) 10,246 14,469

9M13 9M14

4,085 5,065 5,246

3Q13 2Q14* 3Q14

Strong GPM recovery from low fish cost and pet food business

Gross Profit

THB mn Skipjack tuna raw material prices

(USD/ton)

26

GP Margin 13.9% 16.7%

17.2% 12.5% 16.3% +41.2% YoY +28.4% YoY +3.6% QoQ

• 3Q14 GPM sharply increased YoY to 17.2% thanks mainly to

widened GPM of branded tuna from lower tuna raw material costs and significantly improvement of pet food GPM (USPN reported positive GPM compared to loss making in 3Q13).

• On QoQ basis, GPM continued to improve due to recovery of

pet food GPM and higher GPM of shrimp & related business.

• 9M14 GPM improved drastically to 16.3% thanks to higher

GPM margin of tuna, shrimp & related business and pet food.

1,200 (Oct’14)

Remark: *2Q14 Gross profit and GPM was revised from accounting reclassification of asset impairment in 3Q14

5,612 8,784

9M13 9M14

Record earnings in 3Q14 with stronger EBITDA

EBITDA

THB mn

Net Profit

THB mn

27

8.2% 10.1% 10.7% 2,418 3,061 3,246

3Q13 2Q14 3Q14 EBITDA Margin

6.8% 9.9% +56.5% YoY +34.2% YoY +6.0% QoQ 3.4% 5.0% 6.3% 2,038 4,393

9M13 9M14

1,004 1,522 1,922

3Q13 2Q14 3Q14 NP Margin

2.5% 5.0% +115.6% YoY +91.4% YoY +26.3% QoQ

• 3Q14 EBITDA sharply improved YoY thanks mainly to

stronger GPM and higher FX gain. %SG&A to sales was 10.1% from one-off asset impairment at USPN operation*. Excluding this one-off, %SG&A to sales was 9.6% in-line with the guidance.

• On QoQ basis, EBITDA slightly rose due to improved GPM

despite lower FX gain and lower other income.

• 9M14 EBITDA increased to THB 8,784mn with EBITDA

margin of 9.9% thanks to higher GPM and higher FX gain.

• 3Q14 net profit significantly boosted YoY to THB 1,922mn

thanks to improved GPM, higher FX gain, and one-off reversal of accrued interest expense (THB 215mn) from ECD conversion in October.

• Net profit also improved QoQ mainly due to one-off reversal
• f accrued interest expense from ECD conversion.
• 9M14 net profit drastically increased to THB 4,393mn due

mainly to stronger GPM and higher FX gain.

*Remark: There was one-off asset impairment at USPN operation (THB 169mn) booked in 3Q14 SG&A

Remark: * Including ST Investment

1ND/E ratio = Net interest-bearing debt/ Total equity, Net interest-beating debt = Total interest-bearing debt - Cash & Cash equivalents including ST investment 2Cash Conversion Rate = Free Cash Flow / EBIT

FCF dropped in 3Q14 from building up inventories to take advantage of lower tuna costs

0.80x 0.80x 0.83x 0.92x 0.92x 3Q14 2Q14 1Q14 4Q13 3Q13

ND/E1 FCF (THB mn)

2,168 (178) 4,148 2,391 1,583 3Q13 4Q13 1Q14 2Q14 3Q14

Cash Conversion Rate2

1.19

• 0.10

2.21 0.98 0.61

Asset Liabilities & Equity

PPE INV AR Goodwill &

• ther

intangible Asset

Others Cash* ST Debt LT Debt AP

31 Dec 2013 THB 108,290 mn 30 Sep 2014 THB 104,636 mn

Asset Liabilities & Equity

PPE INV AR Others Cash* Total Equity Other Liabilities LT Debt AP Current Portion

• f LT

Debt ST Debt Goodwill &

• ther

intangible Asset

Other Liabilities Total Equity Current Portion

• f LT

Debt

28

40,340 42,634 40,278 40,088 40,514 124 121 134 120 119 3Q13 4Q13 1Q14 2Q14 3Q14

WC (THB) WC Day Remark: 1ROE = Annualized quarterly net profit/ Average total shareholders’ equity

2ROA = Annualized quarterly EBIT / Average total assets 3Net WC = INV + A/R – A/P 4Gearing ratio = Total liabilities / Total shareholders’ equity

Improving profitability with declining gearing

29

Net WC3

1.37x 1.49x 1.48x 1.50x 1.46x 3Q14 2Q14 1Q14 4Q13 3Q13

ROA2

18.9% 15.0% 9.5% 8.4% 10.7% 3Q14 2Q14 1Q14 4Q13 3Q13

ROE1

9.6% 8.8% 6.9% 6.3% 7.1% 3Q14 2Q14 1Q14 4Q13 3Q13 41 41 43 38 41 3Q14 2Q14 1Q14 4Q13 3Q13

A/R Days

125 122 135 123 126 3Q14 2Q14 1Q14 4Q13 3Q13

INV Days Gearing Ratio4

(Time)

50 544 416 2,341 905 2,398 537

30

35,553 Other Investing/ Financing activities* CAPEX Other non-cash expenses Net interests paid Change in

• ther assets

and liabilities Change in net working capital

• 2,689

EBITDA

• 8,784

Net Debt as of 31 Dec 2013 39,836

Operating Activities THB 10,464 mn Investing & Financing Activities

Free Cash Flow

THB 8,123 mn Unit: THB mn ND/E 0.92x Kd = 4.24%

Net Debt as of 30 Sep 2014 Remark: * Included 1) change in loans to 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

ND/E 0.80x Kd = 3.90%

Tax payment Dividends paid

Better working capital management brought down leverage

3Q14 38% 8% 55%

Long-term Debt Current Portion

• f Long-

term Debt Short-term Loan

79% 76% 17% 17% 4% 7% 2013 3Q14

Declining debt level with more spread-out and longer maturities

3Q14 Interest bearing debt

(THB 39,010 mn) Long-term loans by maturity (THB 14,715 mn)

31

EUR USD THB

By Currency By Maturity

2018

• nwards

55% 2017 21% 2016 23% 2015 1%

9M14 Financial Position Summary

32 Gross Profit

THB 14,469 million Products Sales (THB million) Margin (%) Tuna 41,512 x 17.6% 7,313 Gross Profit (THB million) 88,630 16.3%

Total

Remark : 1Shrimp & related business includes frozen shrimp and shrimp feed

2Value-added & other products include ready-to-eat products, frozen cephalopod, canned seafood, domestic products, bakery products, and scrap

3GP and GPM of Value-added & other products is calculated including sales of scrap. If excluded both will be THB 1,369 million and 13.2%, respectively.

Shrimp & related business1 21,204 x 10.9% 2,309 Sardine & Mackerel 4,764 x 18.2% 868 Salmon 3,353 x 15.2% 511 Pet food 6,643 x 19.3% 1,285 Value-add &

• ther

products2 11,153 x 19.6%3 2,1833

Agenda

 Company Overview  Key Highlights  9M 2014 Financial Results  Business Outlook

Business outlook

34

Tuna

• Higher consumption (volume) thanks to low fish cost that supports more promotional

activities in most markets

• Margins to stabilize thanks to a good balance of OEM and brand sales in times of volatile

raw material costs Frozen Shrimp Sardine & Mackerel

• Margin improvement from the addition of the premium King Oscar branded products

Salmon

• Sales growth contributed by the addition of chilled salmon products after the acquisition of

MerAlliance Pet Food

• Steady sales growth, partly thanks to low fish costs. Margin rebounding after USPN

breaking even in 2H14 Value-added & Other Products1

• Items, such as lobsters, and domestic business driving sales growth and margins
• Expect gradual recovery of domestic shrimp supply in 2015 from a poor 2014 (est.

200,000 tons) that only started to improve in 4Q14

• Profitable, though at modest volume, thanks to a higher proportion of value added

products (less demand-elastic) for export and consistent US operations with a strong global sourcing capacity

Remark: 1Value-added & other products includes ready-to-eat products, frozen cephalopod, canned seafood, local products, bakery products, and sales of scraps

Corporate website: http://www.thaiuniongroup.com IR website: http://www.thaiuniongroup.com/en/investor.ashx E-mail: ir@thaiunion.co.th Tel: +66 2298 0024

Thank You