SET Opportunity Day 2Q16 Results Presentation 17 August 2016 Page 1
Disclaimer 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 our assumptions are correct. Actual results may differ materially from those projected. Page 2
Agenda � Company Overview � Key Highlights � Recent Developments � 2Q16 Financial Results � Sustainability Update � Executive Introduction Page 3
More than 39 years of seafood processing experience Strategic Rebranding: Acquired Expanded to Expanded to Set up Expanded to Entered a JV Founded partnership Renaming third largest frozen Entered to Expanded shrimp feed pet food shrimp with Savola Thai Union with TUF to canned seafood tuna fishing in capacity of business in business farming in Food in Manufacturing Mitsubishi seafood brand products Thai Union Indian Ocean frozen shrimp India in the US Thailand Saudi Arabia Corp in US Group in US 40% � 77.13%*** 15% � 25.12%* 51% 50% � 100% 100% 2012-2013 2015 1977 1992 1997 & 2001 2003 2007 2009 2010 2012 2010 2014**** 2015 2015 2016 1988 1994 1995 & 1999 2006 2008 51% 20.03% � 90.44% 51% 80% 100% 100% 100% Acquired Acquired Acquired Acquired Acquired TUF was Expanded Set up Established Entered to lobster- Acquired stakes of #1 premium listed on the leading leading capacity of Chicken of Thai Union canned sardine related stakes of Les canned smoked Stock canned the Sea brand in asset from Pecheries Frozen seafood in Rugen Fisch Exchange of seafood salmon seafood Frozen Norway, US Orion de Chez Products Vietnam in Germany Thailand manufacturer Foods brands in EU in EU & Australia Seafood Int’l Nous Remark: In 2006, we acquired PT Juifa International Food to expanded capacity of canned tuna in Indonesia, but it was already divested. Page 4 * Increased in 3Q12; **Divested all shares in 1Q13, ***Increased in 4Q14 , ****Completed in 4Q14
#1 Global leader in a consumer staple business TU is the world’s largest canned tuna producer, with the processing volume 18% of world production. World Canned Tuna Annual Production 1 1.67 million tons Others 82% TU 18% Source: 1 Fishstat Plus (FAO) 2010, based on finished product production Page 5
3 strategic business segments Total 1H16 sales: THB 65,697mn Brand, Frozen, chilled Frozen, chilled PetCare, value added PetCare, value added Ambient seafood Ambient seafood 38% seafood and related seafood and related Private and others and others Sales: THB 32,459mn Sales: THB 32,459mn Lebel, 1H16 Sales: THB 25,377mn Sales: THB 25,377mn Sales: THB 7,861mn Sales: THB 7,861mn 49% **FS - Shrimp & related Tuna business Brand, 5% PetCare business 1 **FS - Private Lebel, 8% Sardine & Frozen, chilled & Value-added Ambient & Pouch Other seafood 2 Other products 4 Mackerel Salmon smoked salmon business 3 Sales Split: 12% 5% Brand Brand Brand 33% 40% 49% Private 39% Private 67% Private 60% 95% label label 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 Page 6 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
Global market leading brand portfolio #1 #1 #1 •#1 premium •#1 canned •#1 canned seafood brand canned sardine seafood brands in in the UK, Ireland and the brand in France France Netherlands #1 #1 #1 •#1 premium canned •# 1 frozen seafood •#1 canned tuna brand sardine brand in US, importer and in Thailand Norway and Australia distributor in the US #3 #3 •#3 tuna brand in •#3 canned seafood brand • leading ambient and chilled fish brand Italy in the US Page 7
Thai Union’s global footprint Page 8
Agenda � Company Overview � Key Highlights � Recent Developments � 2Q16 Financial Results � Sustainability Update � Executive Introduction Page 9
“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 10
2Q16: Strong sales growth YoY Chg % of sales • 2Q16 strong sales growth was driven by a consolidation of Rugen Fisch and product 34,441 +12.4% Sales repricing from increased raw material prices (THB mn) • Gross profit margin declined YoY was resulted from a sharp increase in raw material prices, 5,428 +4.5% +15.8% GP mainly salmon and shrimp prices. • But the impact was partly offset by improving 2,062 OP -6.3% • PetCare business margin improvement due +6.0% to growing volume, and • Shift of focus to product profitability over 1,527 +4.4% +16.9% NP 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 = (COG S – SG&A)/sales Page 11
1H16 Operating profit of THB 3,516mn, up 12% YoY Financial Summary 1 1H16 Operating Profit (THB million) up 12% YoY to THB 3,516 million 65,697 1H16 Total Sales +10.9% 59,248 1H15 1H16 10,276 Gross Profit +12.5% Share price movement Q1’12 1H15 9,138 2015 2 2016 2 Q1’11 Operating 1H16 3,516 (Jan- Dec 15 ) (Jan- Aug 5,16 ) +12.0% Profit 3,141 1H15* -21.8% +28.4% 5,936 1H16 +3.1% EBITDA Stable ND/E despite rising 5,757 1H15* raw material prices 1H16 2,758 2015 2Q16 -2.4% Net Profit 1H15* 2,825 0.76x 0.74x 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) Page 12 *The figures were restated according to accounting restatement
2Q16: Record quarterly sales Total sales (THB mn) GPM NPM 17.3% 17.2% 16.9% 50,000 18.0% 16.1% 15.7% 15.8% 15.5% 14.9% 45,000 16.0% 13.9% 13.8% 40,000 14.0% 34,441 32,602 33,333 32,772 35,000 31,257 30,258 30,423 30,642 12.0% 27,948 28,606 30,000 10.0% 25,000 7.0% 8.0% 20,000 5.3% 5.0% 5.0% 4.6% 4.6% 4.4% 6.0% 3.9% 15,000 3.4% 4.0% 2.1% 10,000 2.0% 5,000 0 0.0% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 % 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 = (COG S – SG&A)/sales Page 13
Announced interim dividend of THB 0.32 per share 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 THB/Share 0.70 59.9% 55.4% 0.60 53.5% 50.6% 50.7% 50.0% 51.3% 50.5% 51.3% 50.1% 50.4% 0.50 0.40 29.4% 0.30 0.20 0.10 0.30 0.28 0.28 0.32 0.48 0.40 0.39 0.53 0.38 0.54 0.63 0.32 0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014* 2015 2016 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. Page 14
Agenda � Company Overview � Key Highlights � Recent Developments � 2Q16 Financial Results � Sustainability Update � Executive Introduction Page 15
Recent developments Recognition 14 Jul 16: TU received 13 Jul 16: TU successfully 6 Jul 16: TU was ranked 4 th Best Overall Company in the Consumer and awards for Best CEO and issued THB 10 billion debentures, Best CFO in the Agro & Food the largest ever issued by the Staples segment in Asia by Institutional Investor’s annual All-Asia Executive Business Industry at the IAA Team Poll. TU’s CEO Mr. Thiraphong Chansiri was also ranked 3 rd of all company. The debentures were Awards For Listed assigned AA- rating by TRIS CEOs in Consumer/Staples sector in Asia. TU’s IR program was ranked 3 rd Companies 2015/2016. Rating, a local credit rating in Consumer/Staples sector in Asia by sell-side institutions. TU website was also ranked 3 rd Best Website for overall Consumer/Staples sector in Asia. agency. Sustainability Acquisition 1 Jul 16: TU has noted 11 Jul 16: Thai Union acquired 13 Jul 16: Thai Union Group 5 Jul 16: TU acquired Thailand’s improvement from has been ranked competitively 80% stake of a Canadian 40% stake of Avanti Frozen Tier 3 to Tier 2 watch list on among Emerging Market MNCs Lobster Processor, Chez Foods Private Limited, a shrimp the US department of State in the review of Transparency Nous, for THB 415mn. processor in India for Trafficking in Persons (TIP) International. INR 1,254mn. Report. Page 16
Recommend
More recommend
