SET Opportunity Day 2Q16 Results Presentation 17 August 2016 Page - - PowerPoint PPT Presentation

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SET Opportunity Day

2Q16 Results Presentation

17 August 2016

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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

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Company Overview Key Highlights Recent Developments 2Q16 Financial Results Sustainability Update Executive Introduction

Agenda

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More than 39 years of seafood processing experience

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 Entered to canned seafood in Vietnam Acquired leading canned seafood brands in EU

2006 2008 1988 1994 1995 & 1999 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

20.03% 90.44% 100% 51% 100% 100% 100% 15% 25.12%* 40% 77.13%***

Expanded to shrimp farming in Thailand

2012

51%

Set up pet food business in the US

2010

50% 100%

2015

Acquired lobster- related asset from Orion Seafood Int’l Entered a JV with Savola Food in Saudi Arabia Rebranding: Renaming TUF to Thai Union Group

2015

Acquired stakes of Rugen Fisch in Germany

51%

2010 2015

Remark: In 2006, we acquired PT Juifa International Food to expanded capacity of canned tuna in Indonesia, but it was already divested.

*Increased in 3Q12; **Divested all shares in 1Q13, ***Increased in 4Q14 , ****Completed in 4Q14

2016

Acquired stakes of Les Pecheries de Chez Nous

80%

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#1 Global leader in a consumer staple business

TU 18% Others 82%

World Canned Tuna Annual Production1

1.67 million tons

TU 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

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3 strategic business segments

Total 1H16 sales: THB 65,697mn

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

39% 49%

Ambient seafood

Sales: THB 32,459mn

Ambient seafood

Sales: THB 32,459mn

PetCare, value added and others

Sales: THB 7,861mn

PetCare, value added and others

Sales: THB 7,861mn

Frozen, chilled seafood and related

Sales: THB 25,377mn

Frozen, chilled seafood and related

Sales: THB 25,377mn

Frozen, chilled & smoked salmon Tuna business Other seafood2 Sardine & Mackerel Ambient & Pouch Salmon Shrimp & related business1 PetCare Value-added business3 Other products4

60% 40% Sales Split: 33% 67% 5% 95% 12%

Brand Private label Brand Private label Brand

Private label

Brand, 38% **FS - Brand, 5% **FS - Private Lebel, 8% Private Lebel, 49%

1H16

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Global market leading brand portfolio

• #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 and Australia

#1

• #1 canned tuna brand

in Thailand

#1 #1

• # 1 frozen seafood

importer and distributor in the US

• #3 tuna brand in

Italy

• #3 canned seafood brand

in the US

#3

• leading ambient and

chilled fish brand

#3

Page 8

Thai Union’s global footprint

Page 9

Company Overview Key Highlights Recent Developments 2Q16 Financial Results Sustainability Update Executive Introduction

Agenda

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“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 11

2Q16: Strong sales growth

GP NP

5,428 1,527

Sales

(THB mn)

34,441

+12.4%

YoY Chg % of sales

+4.5% +15.8% +16.9% OP

2,062

• 6.3%

+6.0% +4.4%

• 2Q16 strong sales growth was driven by a

consolidation of Rugen Fisch and product repricing from increased raw material prices

• Gross profit margin declined YoY was resulted

from a sharp increase in raw material prices, mainly salmon and shrimp prices.

• But the impact was partly offset by improving
• PetCare business margin improvement due

to growing volume, and

• Shift of focus to product profitability over

market share in the US market

• Net profit improved due to a lower finance cost,

partly by strong free cash flow that lead to lower interest bearing debt

Remark: Operating margin = (COGS – SG&A)/sales

Page 12

1H16 Operating Profit up 12% YoY to THB 3,516million Stable ND/E despite rising raw material prices

Share price movement

20152

(Jan- Dec 15 )

• 21.8%

20162

(Jan- Aug 5,16 )

+28.4%

2015

0.76x

2Q16

0.74x 1H16 Operating profit of THB 3,516mn, up 12% YoY

2,825 5,757 3,141 9,138 2,758 5,936 3,516 10,276

Financial Summary1

(THB million)

65,697 59,248

Gross Profit Total Sales EBITDA

1H16 1H15

+12.5% +12.0%

• 2.4%

Q1’12 Q1’11

Net Profit +3.1% +10.9%

Source: 1TU; 2SET (Jan 5’15: THB22.00/share, Dec 30’15: THB17.20/share, Jan 4’16: THB16.9/share and Aug 5’ 16: THB21.7/share) *The figures were restated according to accounting restatement

Operating Profit

1H16 1H15 1H16 1H15* 1H16 1H15* 1H16 1H15*

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2Q16: Record quarterly sales

27,948 30,258 30,423 32,772 28,606 30,642 32,602 33,333 31,257 34,441 14.9% 16.1% 17.2% 13.9% 13.8% 16.9% 17.3% 15.7% 15.5% 15.8% 3.4% 5.0% 7.0% 2.1% 5.3% 4.6% 5.0% 4.6% 3.9% 4.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

Total sales (THB mn) GPM NPM

% Growth YoY Sales 14.3 7.6 3.3 6.4 2.4 1.3 7.2 1.7 9.3 12.4 Gross profit 56.0 39.7 28.4 14.5

• 5.2

6.3 7.4 3.9 22.9 4.5 Net profit 40.8 323.9 91.4

• 14.3

58.7

• 7.2
• 15.4

8.5

• 19.0

16.9

Remark: Operating margin = (COGS – SG&A)/sales

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Proposed final dividend for the period: 1 Jan 16 to 30 Jun 16 DPS THB 0.32 XD 18 August 2016 Book closing date 23 August 2016 Payment date 2 September 2016

Announced interim dividend of THB 0.32 per share

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.

0.30 0.28 0.28 0.32 0.48 0.40 0.39 0.53 0.38 0.54 0.63 0.32 50.1% 50.4% 53.5% 50.6% 50.7% 50.0% 29.4% 51.3% 59.9% 50.5% 51.3% 55.4% 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 THB/Share DPS (LHS) Payout Ratio (RHS)

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Company Overview Key Highlights Recent Developments 2Q16 Financial Results Sustainability Update Executive Introduction

Agenda

Page 16

11 Jul 16: Thai Union acquired

40% stake of Avanti Frozen Foods Private Limited, a shrimp processor in India for INR 1,254mn.

Recent developments

6 Jul 16: TU was ranked 4th Best Overall Company in the Consumer and

Staples segment in Asia by Institutional Investor’s annual All-Asia Executive Team Poll. TU’s CEO Mr. Thiraphong Chansiri was also ranked 3rd of all CEOs in Consumer/Staples sector in Asia. TU’s IR program was ranked 3rd in Consumer/Staples sector in Asia by sell-side institutions. TU website was also ranked 3rd Best Website for overall Consumer/Staples sector in Asia.

13 Jul 16: Thai Union Group

has been ranked competitively among Emerging Market MNCs in the review of Transparency International.

1 Jul 16: TU has noted

Thailand’s improvement from Tier 3 to Tier 2 watch list on the US department of State Trafficking in Persons (TIP) Report.

Sustainability

14 Jul 16: TU received

awards for Best CEO and Best CFO in the Agro & Food Business Industry at the IAA Awards For Listed Companies 2015/2016.

Recognition

13 Jul 16: TU successfully

issued THB 10 billion debentures, the largest ever issued by the

• company. The debentures were

assigned AA- rating by TRIS Rating, a local credit rating agency.

Acquisition

5 Jul 16: TU acquired

80% stake of a Canadian Lobster Processor, Chez Nous, for THB 415mn.

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TU acquired a Canadian lobster processor

Company name: Les Pecheries de Chez Nous (Chez Nous) Location: New Brunswick, Canada Revenue: CAD 50 mn (2015) Shares acquired (%): 80% Seller: Francois Frankie Benoit Business overview: Lobster processing business. Supplier of Lobsters.

• No. of plants:

1 Processing facility at the Gulf

• f St. Lawrence

July 16: TU expands further in North America with acquisition of Chez Nous

TU acquired an 80% of Les Pecheries de Chez Nous (Chez Nous) for THB 415mn

• Strengthening the Group’s position as the

largest lobster supplier in North America

• Upstream integration will enable TU to

enhance the traceability of the lobster products and forming direct relationship with local fishermen

• Operating live lobster holding facility to

ensure product freshness

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TU acquired an Indian shrimp processor

Company name: Avanti Frozen Foods Private Limited Location: Andhra Pradesh, India Capacity: 35 tons of raw material per day (Expand to 110 tons per day) Shares acquired (%): 40% Seller: Avanti Feeds Limited (TU’s 25.12% owned affiliate) Business overview: Shrimp processing plant

• No. of plants:

1 Processing plant (Expand to 2 plants by 2H16)

July 16: Thai Union successfully acquired 40% of Avanti Frozen Foods

TU acquired an 40% of Avanti Frozen Foods Private Limited for INR 1,254mn

• To tap into shrimp sourcing in India, now

the world’s leading exporting country

• Working with our long-term partner Avanti

Frozen Foods ensures product quality and traceability

• Investing in a second plant to triple

capacity from 35 tons of raw material per day currently to 110 tons.

Page 19 Notional amount THB 10.0bn Trenches 3, 5, and 7-year Coupon rate 2.03% - 2.79% Debenture rating AA- (TRIS Rating) Issued date 20 Jul 2016 Financial covenants Net D/E 2.0 : 1 Purpose of the fund Debt refinancing, capital investment funding and working capital funding

TU issued THB 10 billion debenture

July 16: TU issued THB 10bn debentures, the largest ever issued by the company

TU issued debenture worth THB 10bn, the largest issuance by the company

• With AA- rating, TU’s debenture achieve

a favorable interest spread of 50-98bps

• ver respective year treasury (1.53% -

1.81%)

• An average cost of debenture is 2.24% vs

TU’s 2015 average interest bearing debt cost of approximately 3.2%

• This issuance will help finalize the

establishment of the Global Treasury Center in Thailand

Page 20

Agenda

Company Overview Key Highlights Recent Developments 2Q16 Financial Results

• TU’s Consolidated Results
• Results by Business Unit

Sustainability Update Executive Introduction

Page 21

“Despite challenging operating environment, we remain committed to deliver solid growth and enhance

• ur shareholders’ value.”

Joerg Ayrle Group Chief Financial Officer

Page 22

935

30,642 32,602 33,333 31,257 34,441 2Q15 3Q15 4Q15 1Q16 2Q16

Sales

THB mn

2Q16 Record quarterly revenue

• 2Q16 sales grew by 12.4% YoY to THB 34,441mn

(up 4.4% YoY in dollar term to USD 976mn), driven by:

• Tuna sales improved 7.9% YoY and 14.9%

QoQ, mainly driven by strong brand recognition in Europe and a higher tuna raw material price that boosted private label sales

• M&A-driven growth by recent consolidation of

Rugen Fisch that boosted sardine and mackerel and salmon business.

• Chilled and frozen product re-pricing to reflect

an increase in shrimp and salmon raw material prices

• PetCare business continued to show strong

growth in light of new product launches and an improved market penetration

106,698 112,813 121,402 125,183 59,248 65,697

• 20,000

2012 2013 2014 2015 1H16 YoY Growth 8.1% 5.7% 7.6% 3.1%

+10.9% YoY

USD mn 975 930 871

+12.4% YoY +10.2% QoQ

976

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Most key businesses showing YoY organic growth

Revenue growth component

(THB million)

USD mn 976

+428

2Q15 2Q16

34,441 30,642

+873

• 369

+14% +667 +329 +280 +769 +3% +8%

• 10%

+8%

+17% Tuna Shrimp & related business1 Sardine & Mackerel Salmon Pet Care

Value added & other products2 +45% +8% +822

USD effect EUR effect

USD mn 1,847 1H15 1H16

+1,684

• 477

+17% +251 +506 +640 +2% +2%

• 7%

+7% +14% +719 Tuna Shrimp & related business1 Sardine & Mackerel Salmon Pet Care

Value added & other products2

+45% +9% +1,842 USD effect EUR effect

59,248 65,697

+1,285

935 1,811

+12.4% YoY +10.9% YoY

+5.6% YoY

Before currency impacts

+7.2% YoY

Before currency impacts

Remark: 1Shrimp & related business comprises of frozen shrimp (including lobster) and shrimp feed.

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

and sales of scraps

Page 24 Brand, 38% **FS - Brand, 5% **FS - Private Lebel, 8% Private Lebel, 49% Brand 41% Private Label 59%

Growing branded sales and geographic breakdown

Sales Breakdown by Business Sales Breakdown by Geographic

• Higher sales contribution from the European

markets, driven by strong performance of our existing brands

• While US sales contribution dropped, it continued

to report growth on an absolute term

• Growing hand-in-hand
• 1H16 total brand sales alone grew 9.1% YoY,

thanks to organic growth and M&As

• Private label sales report strong growth of 12.3%

YoY, mainly from selling price adjustment

• Food Service sales accounted for 12.9% of total

sales

Remark: *Others represent Asia, Australia, Middle East, Canada, Africa and South America **FS stands for Food Service

36% 40% 44% 42% 39% 30% 30% 29% 29% 34%

10% 7% 7% 8% 8%

9% 8% 7% 6% 6% 15% 14% 13% 14% 13%

0% 20% 40% 60% 80% 100%

2012 2013 2014 2015 1H16

Others* Japan Domestic Europe USA

THB 125,183mn THB 65,697mn 2015 1H16

Page 25

Gross margin impacted by raw material price volatility

Gross Profit

THB mn

16,362 14,222 19,020 19,501 9,138 10,276

• 5,000

2012 2013 2014 2015 1Q16

GPM 15.3% 12.6% 15.7% 15.6% YTD 15.4% 15.6% +12.5% YoY

• 2Q16 Gross profit of THB 5,428, up 4.5% YoY,

driven mostly by strong sales growth in all key business segments

• 2Q16 margin was at 15.8%, down 118bps YoY

from 16.9% in 2Q15:

• Chilled

and frozen business: Sudden increase in salmon and shrimp raw material prices

• But the negative impact was partly offset by:
• Profitability-focused pricing strategy in the

US canned tuna market

• PetCare

business continue to win more customers into the more profitable product segments

5,192 5,634 4,730 4,848 5,428 16.9% 17.3% 14.2% 15.5% 15.8%

10.0% 15.0% 20.0% 25.0% 30.0%

2Q15 3Q15 4Q15 1Q16 2Q16

+4.5% YoY +12.0% QoQ

GPM

Page 26

Operating profit: SG&A in check

Operating Profit

THB mn

2Q16 Operating profit of THB 2,062mn, down 6.3% YoY, driven by a decline in gross margin. 2Q16 SG&A to sales ratio was 9.8%, slightly higher than 2Q15 ratio (+4bps YoY) due to M&A related expenses and increased personnel expenses for upcoming expansion The ratio is marginally below the full year target

• f 10% due to prudent cost control policy and

lack of acquisition related fee during the quarter

2,200 2,352 1,265 1,454 2,062 7.2% 7.2% 3.8% 4.7% 6.0%

1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0%

2Q15 3Q15 4Q15 1Q16 2Q16

• 6.3% YoY

+41.8% QoQ

6,869 3,988 6,990 6,785 3,141 3,516

• 1,000

2012 2013 2014 2015 1Q16

OP Margin

+12.0% YoY OPM 6.4% 3.5% 5.8% 5.4% YTD 5.3% 5.4%

Page 27

EBITDA up 12% from an impact of FX gains during 2Q16

EBITDA

THB mn

2,843 3,297 2,351 2,755 3,181 9.3% 10.1% 7.1% 8.8% 9.2%

2Q15 3Q15 4Q15 1Q16 2Q16

+11.9% YoY +15.4% QoQ

9,823 7,867 10,999 11,577 5,757 5,936

• 2,000

2012 2013 2014 2015 1H16

+3.1% YoY

2Q16 EBITDA of THB 3,181mn, up 11.9% YoY, mainly driven by an absence of FX losses during 2Q15 (FX losses of THB 300mn in 2Q15 vs. a FX gains of THB 32mn in 2Q16) Excluding and FX impacts, 2Q16 EBITDA was at THB 3,149mn, slightly increased from the same quarter last year due to strong sales growth during the quarter

EBITDA Margin

EBITDA Margin 9.2% 7.0% 9.1% 9.2% YTD 9.7% 9.0%

Page 28

Net profit: Registering 17% net profit growth

Net Profit

THB mn

1,306 1,626 757 1,231 1,527 4.3% 5.0% 2.3% 3.9% 4.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

2Q15 3Q15 4Q15 1Q16 2Q16

+16.9% YoY +24.1% QoQ

4,694 2,853 5,092 5,302 2,825 2,758

• 1,000

2012 2013 2014 2015 1H16

• 2.4% YoY

NPM

2Q16 net profit of THB 1,527mn, up 16.9% YoY The improved net profit was driven by:

• The strong sales growth,
• A

lower financing costs from a debt repayment, and

• Lower acquisition-related fees in 2Q15

NPM 4.4% 2.5% 4.2% 4.2% YTD 4.8% 4.2% Remark: 2Q15 Net profit was restated from THB 1,412mn earlier as THB 106mn restatement was from derivative accounting restatement

Page 29

1,402 1,531 1,614 1,082 1,446 4.6% 4.7% 4.8% 3.5% 4.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0%

2Q15 3Q15 4Q15 1Q16 2Q16

Normalized net profit of THB 1,446mn

Normalized Net Profit

THB mn Norm NP Margin

Excluding the one-off quarter-end items, 2Q16 normalized net profit was at THB 1,446mn, up 3.1% YoY. One-off items during 2Q16

• f

THB 81mn comprised of: Accounting adjustment (+THB 29mn), Insurance claim from one of TUE subsidiary (+THB 79mn), and M&A related expenses (-THB 27mn)

+3.1% YoY +33.6% QoQ Remark: The normalized net profit still include the FX gains/losses from normal business operation 2Q16 Reported NP 2Q16 NP before one- time items

1,527

+27

• 29
• 79

1,446

Accounting adjustment Insurance claim M&A related expenses

• 79

Page 30

0.98 0.60 1.07 1.11 0.59 0.58 2012 2013 2014 2015 1H16

EPS: Positive EPS = Dividend payment

EPS

THB

0.27 0.34 0.16 0.26 0.32 2Q15 3Q15 4Q15 1Q16 2Q16

+16.9% YoY +24.1% QoQ

2Q16 EPS was at THB 0.32, up 16.9% YoY 1H16 EPS was at THB 0.58, down 2.4% YoY, along with net profit movement Board of Directors approved dividend payment of THB 0.32 for 1H16, representing 55.4% payout ratio from reported EPS

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

Page 31

• 356

9,162 11,664 4,404 2013 2014 2015 1H16

Neutral FCF despite rising raw material prices

Annual Free Cash Flow

THB mn 3,393 5,469

• 1,747

4,483

• 79

2Q15 3Q15 4Q15 1Q16 2Q16

Quarterly Free Cash Flow

THB mn

Remark: 1Cash Conversion Rate = FCF / EBIT Cash Conversion Rate1

1.5 2.1

• 0.8

2.2

• 0.03

Cash Conversion Rate1

• 0.1

1.1 1.2 1.0

2Q16 Free cash flow (FCF) was slightly negative at THB 79mn, despite 2Q16 average tuna raw material price rose to USD 1,400/ton (vs USD 1,257mn during 1Q16) and a record salmon prices The neutral FCF was achieved driven by an improved EBITDA and a more efficient inventory management 2Q16 inventory days were at 106 days, versus 116 days in 1Q16 and 119 days in 2Q15 2Q16 net working capital days at 104 days, versus 114 days in 1Q16 and 116 days in 2Q15

Page 32

2015 2015 2Q16

Increasing proportion of long-term debts

Interest-bearing debts of THB 38,471mn

42% 2% Long-term loan by maturity THB 18,320mn

By Maturity

2020

• nwards

2019 2018 2017

2Q16

Long-term Debt Current Portion

• f Long-

term Debt & finance lease Short-term Loan

48% 10% 42%

By Currency

EUR USD THB

THB 39,179mn THB 38,471mn

1.2% 21.5% 77.3% 2.8% 19.0% 79.9%

41% 10% 49%

Page 33

1H16 EBITDA: Sufficient internal cash flow to fund M&As

+156 +936 +25 +1,533 +1,932 +442

Operating Activities THB 5,937 mn Investing & Financing Activities Free Cash Flow THB 4,404 mn Unit: THB mn ND/E 0.76x Kd = 3.73% ND/E 0.74x Kd = 2.86%

36,264

+1,475

• 1,118
• 5,936

36,363

Other Investing/ Financing activities* Other non-cash expenses Net interests paid Change in

• ther assets

and liabilities Change in net working capital Net Debt as of 31 Dec 2015 Net Debt as of 30 Jun 2016 Tax payment Dividends paid EBITDA CAPEX +456 Investment in Subsidiaries 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

Page 34 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-beating debt = Total interest-bearing debt - Cash & Cash equivalents including ST investment

Continued improved working capital management

Net WC3

13.0% 11.1% 8.9% 13.7% 11.4% 2Q16 1Q16 4Q15 3Q15 2Q15 0.74x 0.69x 0.76x 0.64x 0.67x 2Q16 1Q16 4Q15 3Q15 2Q15

ROCE2 ROE1 Debt to EBITDA ND/E4

13.8% 11.0% 6.6% 14.2% 11.7% 2Q16 1Q16 4Q15 3Q15 2Q15

INV Days

106 116 110 114 119 2Q16 1Q16 4Q15 3Q15 2Q15 3.02 3.18 4.17 2.77 3.40 2Q16 1Q16 4Q15 3Q15 2Q15 39,315 38,631 41,070 38,448 41,131 116 108 108 114 104 2Q15 3Q15 4Q15 1Q16 2Q16

WC (THB mn) WC Day

Page 35

Agenda

Company Overview Key Highlights Recent Developments 2Q16 Financial Results

• TU’s Consolidated Results
• Results by Business Unit

Sustainability Update Executive Introduction

Page 36

“Corporate performance could fluctuate from time to time, but investor trust is what we care most. To us, transparency, consistent and timely disclosure are keys to investor trust, particularly in times of uncertainty.

Wai Yat Paco Lee General Manager, Investor Relations and Corporate Investment

Page 37 500 1,000 1,500 2,000 2,500 3,000 Jul-13 Jul-14 Jul-15 Jul-16

Key operating impact: rising salmon price is a key challenge

White shrimp raw material prices (THB/kg. of 60 pcs./kg)

186 (Jul’16)

Skipjack tuna raw material prices (USD/ton)

1,400 (Jul’16)

In Jul, tuna price closed at USD 1,400/ton. In 2Q16, average price

was at USD 1,503/ton (+36.5% YoY, +19.6% QoQ).

In Jul, shrimp price closed at THB 186/kg. In 2Q16, average price

was at THB 164/kg (+4.5% YoY, -12.3% QoQ). Source: Thai Union Group and http://fishpool.eu/price-information/spot-prices/history/

Raw material prices

50 100 150 200 250 300 Jul-13 Jul-14 Jul-15 Jul-16

Salmon raw material prices (NOK/kg) In Jul, salmon price closed at NOK 75.1/kg. In 2Q16, average price

was at NOK 65/kg (+67.5% YoY, +9.4% QoQ). 20 40 60 80 Jul-13 Jul-14 Jul-15 Jul-16

75.1 (Jul’16)

Page 38 28 30 32 34 36 38 Jul-13 Jul-14 Jul-15 Jul-16

USD/THB In Jul, USD/THB closed at 35.08. In 2Q16, average USD/THB was at

35.28 (-1.1% QoQ, +6.1% YoY)

35.08 (Jul’16)

Exchange rate

Key operating impact

28 33 38 43 48 Jul-13 Jul-14 Jul-15 Jul-16

EUR/THB

38.79 (Jul’16)

In Jul, EUR/THB closed at 38.79. In 2Q16, average EUR/THB was at

39.83 (+1.3% QoQ, +8.2% YoY)

Page 39 39% 49%

3 strategic business segments

Ambient seafood

Sales: THB 32,459mn

Ambient seafood

Sales: THB 32,459mn

PetCare, value added and

• thers

Sales: THB 7,861mn

PetCare, value added and

• thers

Sales: THB 7,861mn

Frozen, chilled seafood and related

Sales: THB 25,377mn

Frozen, chilled seafood and related

Sales: THB 25,377mn

Frozen, chilled & smoked salmon Tuna business Other seafood2 Sardine & Mackerel Ambient & Pouch Salmon Shrimp & related business1 PetCare Value-added business3

Total 1H16 sales: THB 65,697mn

Other products4

60% 40% Sales Split: 33% 67% 5% 95% 12%

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

Page 40

Ambient Seafood

Page 41

43% 42% 48% 40% 40% 57% 58% 52% 60% 60%

15,621 15,307 14,178 15,198 17,261

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00

2Q15 3Q15 4Q15 1Q16 2Q16 53% 50% 58% 50% 49% 47% 50% 42% 50% 51%

96,116 90,351 89,117 94,086 103,387

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00 51,000.00 52,000.00 53,000.00 54,000.00 55,000.00 56,000.00 57,000.00 58,000.00 59,000.00 60,000.00 61,000.00 62,000.00 63,000.00 64,000.00 65,000.00 66,000.00 67,000.00 68,000.00 69,000.00 70,000.00 71,000.00 72,000.00 73,000.00 74,000.00 75,000.00 76,000.00 77,000.00 78,000.00 79,000.00 80,000.00 81,000.00 82,000.00 83,000.00 84,000.00 85,000.00 86,000.00 87,000.00 88,000.00 89,000.00 90,000.00 91,000.00 92,000.00 93,000.00 94,000.00 95,000.00 96,000.00 97,000.00 98,000.00 99,000.00 100,000.00 101,000.00 102,000.00 103,000.00 104,000.00 105,000.00 106,000.00 107,000.00 108,000.00 109,000.00 110,000.00 111,000.00 112,000.00 113,000.00 114,000.00 115,000.00 116,000.00 117,000.00 118,000.00 119,000.00 120,000.00

2Q15 3Q15 4Q15 1Q16 2Q16

Ambient Seafood Solid growth boosted by branded business

27% 25% 23% 23% 25% 11% 16% 11% 12% 12% 20% 21% 17% 18% 20%

2Q15 3Q15 4Q15 1Q16 2Q16

Sales (THB million) Quantity (Tons)

Total Brand

+10.5% YoY +13.6% QoQ

Private label

Gross Profit Margin (Percent)

+7.6% YoY +9.9% QoQ

2Q16 ambient seafood business sales of THB 17.3bn, up 10.5% YoY, driven by Rugen Fisch acquisition, strong brand presence in UK, and rising tuna raw material price Gross profit margin has slightly improved 8bps YoY to 19.9%, thanks to: Growing branded sales in Europe, Low cost of raw material inventory, Market expansion in the Middle East starting to contribute profit

Brand Private label Brand Private label

Page 42

Frozen, chilled seafood and related

Page 43

Frozen, chilled seafood and related Catching up

10% 11% 15% 14% 13% 11% 12% 11% 7% 6% 10% 11% 13% 10% 8%

2Q15 3Q15 4Q15 1Q16 2Q16

Total Brand Private label

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

63% 68% 67% 66% 68% 37% 32% 33% 34% 32%

11,159 13,197 15,099 12,225 13,152

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00

2Q15 3Q15 4Q15 1Q16 2Q16 29% 32% 29% 33% 34% 71% 68% 71% 67% 66%

48,920 60,439 67,521 52,524 57,635

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00 51,000.00 52,000.00 53,000.00 54,000.00 55,000.00 56,000.00 57,000.00 58,000.00 59,000.00 60,000.00 61,000.00 62,000.00 63,000.00 64,000.00 65,000.00 66,000.00 67,000.00 68,000.00 69,000.00 70,000.00 71,000.00 72,000.00 73,000.00 74,000.00 75,000.00 76,000.00 77,000.00 78,000.00 79,000.00 80,000.00 81,000.00 82,000.00 83,000.00 84,000.00 85,000.00 86,000.00 87,000.00 88,000.00 89,000.00 90,000.00

2Q15 3Q15 4Q15 1Q16 2Q16

+17.9% YoY +7.6% QoQ +17.8% YoY +9.7% QoQ

Brand Private label Brand Private label

2Q16 frozen and chilled seafood business sales of THB 13.2bn, up 17.9% YoY, due to Product repricing to reflect rising raw material prices, and An increase in sales volume, thanks to improved domestic shrimp production The gross profit margin has declined by 219bps YoY to 8.3% from An increase in salmon and shrimp raw material prices Salmon business was loss-making during 1H16

Page 44

PetCare, value added and others

Page 45

PetCare, value added and others PetCare business continue to deliver

24% 22% 23% 23% 22%

2Q15 3Q15 4Q15* 1Q16 2Q16

Total

Sales (THB Million) Quantity (Tons) Normalized gross Profit Margin (Percent)

92% 93% 96% 92% 98% 8% 7% 4% 8% 2%

3,861 4,098 4,057 3,833 4,028

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00

2Q15 3Q15 4Q15 1Q16 2Q16 96% 97% 98% 92% 95% 4% 3% 2% 8% 5%

31,617 31,031 30,746 31,545 34,654

• 1,000.00

2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00

2Q15 3Q15 4Q15 1Q16 2Q16

+4.3% YoY +5.1% QoQ +9.6% YoY +9.9% QoQ

Brand Private label Brand Private label

2Q16 sales of THB 4,029mn, or a growth of 4.3% YoY PetCare business reported both solid sales growth and margin improvement YoY during 2Q16 thanks to: Launches of more high value-added PetCare products, and Our commitment in sustainability entice more customers

*Remark: 4Q15 normalized gross margin exclude THB 508mn fishing fleet impairment expenses

Page 46

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

2Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish 3Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack 4Other products include scrap, fishery and others

1H16 Segment Profitability

THB 10,276 million THB 10,276 million Gross Profit

Frozen, chilled seafood and related Frozen, chilled seafood and related PetCare, value added and others PetCare, value added and others Ambient seafood Ambient seafood

New segment

Total

Sales (THB million) Margin (%) Gross Profit (THB million) 6,249 2,254 1,774 32,459 25,377 7,861 19.3% 8.9% 22.6% 65,697 15.6%

*Tuna business *Sardine & Mackerel *Ambient & Pouch Salmon *Shrimp & related business1 *Frozen, chilled & smoked salmon *PetCare *Value added & others3 *Other seafood2 *Other products4

Page 47

Agenda

Company Overview Key Highlights Recent Developments 2Q16 Financial Results Sustainability Update Executive Introduction

Page 48

“At Thai Union, we are dedicated to being the world’s most trusted seafood leader. That means earning trust from all our stakeholders and working with all of our partners to ensure a healthy seafood supply for generations to come.”

Darian McBain, Ph.D. Group Director of Sustainable Development

Page 49

Agenda

Sustainability Update

• Sustainability Report and DJSI submission
• WWF partnership review
• Sea Change review

Page 50

Sustainability report and DJSI submission

You can download TU’s sustainability report at: http://www.thaiunion.com/Sustainability_Report2015_E.pdf (Thai version: http://www.thaiunion.com/Sustainability_Report2015_T.pdf)

Page 51

WWF and Thai Union Europe Partnership

• Partnership is very successful, and guiding direction for our

sustainability work on fisheries

• First public progress report after entering into the partnership in

2014

• A full environmental risk assessment across all fish species

sourced by Thai Union Europe has been conducted

• Under the TUE/WWF partnership we are committed to working

towards MSC/ASC certification, the highest level of sustainability certification. This will meet the high sustainability requirements of several European countries including the UK and Germany.

• Communication in pack on the partnership, and on websites

will continue to be escalated.

Page 52

Sea Change consultation

Gathering feedback from stakeholders worldwide and refining our strategy – a key to our transparency and industry leading approach

• Online consultation
• Consultation

workshops and face-to-face meetings

April-June

• Compilation of

comments received

• Adaptation of Sea

Change

July

• Presentation of

revised Sea Change Strategy

October

Page 53

Agenda

Company Overview Key Highlights Recent Developments 2Q16 Financial Results Sustainability Update Executive Introduction

Page 54

Executive introduction: Whitney Small

“We are sharing Thai Union’s story in support of our responsible and sustainable business practices around the world. As Thai Union continues to grow and innovate, our industry leading role showcases our efforts, shaping public perception.”

Whitney Foard Small Group Director of Corporate Communications

Page 55

Executive introduction: Valentin Ramirez

“At COSI, our objective is to be the most trusted seafood leader in the US, driving positive change in the areas of sustainability, innovation, and quality. We will provide strategic thought leadership to drive penetration and growth of the category.

Valentin Ramirez CEO of Tri-Union Seafood LLC

Page 56

Appendix

Page 57

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

Share Capital Information

Stock Information

2012 2013 2014 2015 2016

Dividend Policy

At least 50% of net profit

Major Shareholders

THB

Bloomberg/ Reuters TU TB/ TU.BK Share price (05 Aug 2016) : THB 21.70 Historical price : 52-week high THB 23.00 52-week low THB 15.80

• No. of paid up shares :

4,771.82mn Par value : THB 0.25 Market Capitalization : THB 103.5bn Chansiri Family 19.6% Niruttinanon Family 6.9% Mitsubishi Corporation 7.3% Thai NVDR 13.2% Social Security Office 4.6% Others 48.5%

Source: SET and TU

As of 30 Jun 2016 Free float : 64.8% Foreign ownership/ Foreign limit 38.7%/ 45.00%

Page 58

2Q16 Income Statement

Remark: *Including share of income from investment in associates **Normalized net profit exclude ALL one-off adjustments and items through the year 2Q16/ 2Q16/ 2Q15 1Q16 Change Change Sales 34,441 100% 31,257 100% 30,642 100% 10.2% 12.4% Cost of sales (29,012)

• 84.2%

(26,409)

• 84.5%

(25,450)

• 83.1%

9.9% 14.0% Gross profit 5,428 15.8% 4,848 15.5% 5,192 16.9% 12.0% 4.5% SG&A expenses (3,366)

• 9.8%

(3,394)

• 10.9%

(2,992)

• 9.8%
• 0.8%

12.5% FX gain (loss) 32 0.1% 264 0.8% (300)

• 1.0%
• 87.9%
• 110.7%

Other income* 368 1.1% 336 1.1% 262 0.9% 9.7% 40.3% EBIT 2,462 7.1% 2,054 6.6% 2,163 7.1% 19.9% 13.8% Finance cost (263)

• 0.8%

(329)

• 1.1%

(355)

• 1.2%
• 20.1%
• 26.1%

EBT 2,199 6.4% 1,725 5.5% 1,808 5.9% 27.5% 21.7% Tax (352)

• 1.0%

(352)

• 1.1%

(338)

• 1.1%

0.0% 4.1% Net income 1,848 5.4% 1,373 4.4% 1,470 4.8% 34.6% 25.7% Net income (loss) attributable to: Equity holders of the Company 1,527 4.4% 1,231 3.9% 1,306 4.3% 24.1% 16.9% Non-controlling interests of the subsidiaries 321 0.9% 142 0.5% 163 0.5% 125.2% 96.2% Earnings per share Basic earnings per share 0.32 0.26 0.27 24.1% 16.9% Diluted earnings per share 0.32 0.26 0.27 24.1% 16.9% Exchange rate THB/USD 35.29 35.90 32.79

• 1.7%

7.6% Normalized net profit 1,446 4.2% 1,082 3.5% 1,402 4.6% 33.6% 3.1% Consolidated (Unit: THB mn) 2Q16 % to sales 1Q16 % to sales 2Q15 % to sales

Page 59

1H16 Income Statement

Remark: *Including share of income from investment in associates **Normalized net profit exclude ALL one-off adjustments and items through the year

1H16/ 1H15 Change Sales 65,697 100% 59,248 100% 10.9% Cost of sales (55,421)

• 84.4%

(50,110)

• 84.6%

10.6% Gross profit 10,276 15.6% 9,138 15.4% 12.5% SG&A expenses (6,760)

• 10.3%

(5,997)

• 10.1%

12.7% FX gain (loss) 296 0.5% 826 1.4%

• 64.1%

Other income* 704 1.1% 502 0.8% 40.1% EBIT 4,516 6.9% 4,469 7.5% 1.0% Finance cost (591)

• 0.9%

(767)

• 1.3%
• 22.9%

EBT 3,924 6.0% 3,702 6.2% 6.0% Tax (845)

• 1.3%

(639)

• 1.1%

32.3% Net income 3,079 4.7% 3,063 5.2% 0.5% Net income (loss) attributable to: Equity holders of the Company 2,758 4.2% 2,825 4.8%

• 2.4%

Non-controlling interests of the subsidiaries 321 0.5% 237 0.4% 35.1% Earnings per share Basic earnings per share 0.58 0.59

• 2.4%

Diluted earnings per share 0.58 0.59

• 2.4%

Exchange rate THB/USD 35.48 32.72 8.4% Normalized net profit 2,528 3.8% 2,896 4.9%

• 12.7%

1H16 % to sales 1H15** % to sales (Unit: THB mn)

Page 60

Statement of Financial Position as of 30 Jun 2016

Remark: *Including short-term investments Cash and cash equivalents* 2,207 1.9% 2,816 2.5%

• 21.6%

Trade and other receivables 17,415 15.2% 16,554 14.9% 5.2% Inventories - net 34,977 30.6% 35,180 31.7%

• 0.6%

Other current assets 2,010 1.8% 2,547 2.3%

• 21.1%

Total current assets 56,609 50% 57,097 51.5%

• 0.9%

Fixed assets 23,332 20.4% 22,165 20.0% 5.3% Goodwill and other intangible assets 29,621 25.9% 27,396 24.7% 8.1% Other non-current assets 4,751 4.2% 4,300 3.9% 10.5% Total Assets 114,312 100% 110,958 100% 3.0% Bank overdrafts and short-term loans 16,289 14.2% 19,437 17.5%

• 16.2%

Trade and other payables 16,178 14.2% 13,731 12.4% 17.8% Current portion of long-term loans 1,591 1.4% 1,561 1.4% 1.9% Current portion of debentures 1,950 1.7% 1,949 1.8% 0.0% Current portion of finance lease liabilities 91 0.1% 91 0.1%

• 0.2%

Other current liabilities 1,333 1.2% 1,904 1.7%

• 30.0%

Total current liabilities 37,432 32.7% 38,674 34.9%

• 3.2%

Long-term loans from financial institutions 1,444 1.3% 1,697 1.5%

• 14.9%

Debentures 16,876 14.8% 14,231 12.8% 18.6% Finance lease liabilities - net of current portion 229 0.2% 212 0.2% 8.0% Other non-current liabilities 9,534 8.3% 8,127 7.3% 17.3% Total Liabilities 65,515 57.3% 62,941 56.7% 4.1% Non-controlling interests of the subsidiaries 4,684 4.1% 2,754 2.5% 70.1% Total Shareholders’ Equity 48,797 42.7% 48,017 43.3% 1.6% Total liabilities and shareholders’ equity 114,312 100% 110,958 100% 3.0% Change (Unit: THB mn 1H16 % to total assets 2015 % to total assets

Page 61

1H16 Statement of Cash Flow

(Unit: THB mn) 1H16 1H15 Change Profit before income tax 3,924 3,702 222 Adjustments for depreciation & amortisation expenses 1,421 1,289 132 Other adjustments 657 1,204 (547) Changes in operating assets and liabilities 921 4,701 (3,779) Cash flows receipts from operating activities 6,923 10,895 (3,972) Net cash receipts (payments) from operating activities 5,987 10,447 (4,460) Net cash payments for investing activities (3,366) (1,521) (1,845) Net cash receipts (payments) for financing activities (3,196) (9,461) 6,265 Net increase (decrease) in cash and cash equivalent (575) (535) (40) Cash and cash equivalents - opening balance 2,816 2,123 693 Exchange gain (loss) on cash and cash equivalents (35) (117) 82 Cash and cash equivalents - closing balance 2,207 1,472 735 Consolidated

Page 62

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

Thank you