SET Opportunity Day 1Q17 Results Presentation 18 May 2017 Page 1 - - PowerPoint PPT Presentation

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SET Opportunity Day

1Q17 Results Presentation

18 May 2017

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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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Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results  2017 Business Outlook

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Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results  2017 Business Outlook

Page 5

40 years of seafood processing experience

Remark: *Increased in 3Q12; **Increased in 4Q14 , ***Completed in 4Q14 In 2006, TU acquired PT Juifa International Food to expanded capacity of canned tuna into Indonesia, but all shares were divested in 1Q13.

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 & 2016 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 Expanded to shrimp feed business in India Expanded capacity of frozen shrimp

1977 1992 1997 & 2001 2009 2003 2012-2013

Acquired leading smoked salmon in EU Acquired #1 premium sardine brand in Norway, US & Australia

20.03%  99.55% 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 Acquired stakes of Rugen Fisch in Germany

51%

2010

Acquired stakes of Les Pecheries de Chez Nous

80%

Strategic investment in Red Lobster

25%

2016

Page 6

#1 Global leader in a consumer staple business

Thai Union 18% Others 82%

World Canned Tuna Annual Production1

1.67 million tons

Thai Union 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

Page 7 Brand, 36% **FS - Brand, 6% **FS - Private Label, 6% Private Label, 52%

3 strategic business segments

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 *FS stands for Food Service

41% 45%

Ambient seafood

Sales: THB 14,069mn

PetCare, value added and others

Sales: THB 4,444mn

Frozen, chilled seafood and related

Sales: THB 12,914mn

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

56% 44%

Sales Split:

39% 61% 7% 93%

Brand Private label Brand Private label Brand

Private label

1Q17

14% Total 1Q17 sales: THB 31,427mn

2016 Growth: +3.2% YoY 2016 Growth: +11.0% YoY 2016 Growth: +11.2% YoY

Page 8

• #3 tuna brand in

Italy

Global market leading brand portfolio

• #1 canned seafood brand

in the UK, Ireland and the Netherlands

#1

• #1 canned

seafood brand 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 canned seafood brand

in the US

#3

• #1 ambient brand in

Germany

#3

• #3 tuna brand in

Italy

#1

Page 9

Thai Union’s global footprint

Page 10

40% 31% 8% 6% 14%

M&A driving market diversity

Full traceability

58% 49% 36% 40% 44% 42% 39% 8% 13% 32% 30% 29% 29% 33% 7% 11% 10% 7% 7% 8% 8% 14% 12% 10% 8% 7% 6% 6% 12% 15% 13% 14% 13% 14% 13%

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

2003 2009 2011 2013 2014 2015 2016

Others* Japan Domestic Europe USA

Remark: *Others represent Asia excluding Thailand & Japan, Australia, Middle East, Canada, Africa and South America

40,408 69,697 99,589 114,277 121,402 125,183 134,375

Geographic Sales Breakdown

Total sales (THB million)

2010

1Q17 Total Sales THB 31,427million

Higher sales contribution from the European markets, driven by strong performance of our existing brands and consolidation of recent acquisitions While US sales contribution slightly dropped, it continued to report growth

• n an absolute term

Page 11 1.13 50% 57% 0% 25% 50% 75% 0.00 0.50 1.00 1.50 2.00 2.50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

DPS & Payout

55 134 20 40 60 80 100 120 140 160 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales

THB billion

No single quarter loss with consistent growth since listed

1,901 5,254 1,000 2,000 3,000 4,000 5,000 6,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Net profit

THB million 3,913 11,138 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EBITDA

THB million THB Remark: Dot line represents DPS before par change from THB 1 to THB 0.25

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Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results  2017 Business Outlook

Page 13

“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

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1Q17: Weaker operation YoY offset by investments and FX

GP NP

4,330 1,469

Sales

(THB mn)

31,427

+0.7%

YoY Chg % of sales

• 13.3%

13.8% +19.3% OP

881

• 45.0%

2.8% 4.7%

• Stable quarterly sales. 1Q17 sales growth

marginally improved from the previous year due mainly driven by a product repricing from increased raw material prices

• Rising raw material prices. Gross profit margin

remain under pressure at 13.8% resulted from both a seasonality factor and a sharp year-over- year increase in raw material prices and European currencies depreciation

• Prudent cost control. Due to the stringent cost

control, 1Q17 SG&A expenses were increased by 1.6% YoY.

• Net profits improved 19% YoY, supported by a

equity income contribution from Red Lobster investment, FX gains from THB appreciation devaluation against USD during 1Q17, lower minority expenses due to minority stake buyout since 3Q16 and lower effective tax rate.

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

+3.5% without currency impact

Page 15

1,231 2,946 1,602 4,996 1,469 2,899 881 4,330

Financial Summary1

(THB million)

31,427 31,210

1Q17 Net Profit up 19.3% YoY to THB 1,469million Strong cash flow support solid financial strength

Share price movement

20162

(Jan- Dec 16 )

+24.3%

20172

(Jan- May 5,17 )

+4.3%

2016

1.37x

1Q17

1.34x 1Q17 Net profits up 19.3% YoY

Gross Profit Total Sales EBITDA

1Q17 1Q16*

• 13.3%
• 45.0%

+19.3%

Q1’12 Q1’11

Net Profit

• 1.6%

+0.7%

Source: 1TU; 2SET (Jan 4’16: THB16.9/share and Dec 30’16: THB21.0/share, Jan 4’17: THB21.1/share and May 5’17: THB22.0/share) *The 1Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

Operating Profit

1Q17 1Q16* 1Q17 1Q16* 1Q17 1Q16* 1Q17 1Q16*

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1Q17: Continued overall resilience to operational dynamic

28,606 30,642 32,602 33,333 31,210 34,441 35,128 33,597 31,427 13.8% 16.9% 17.3% 14.2% 16.0% 15.8% 14.1% 13.6% 13.8% 5.3% 4.3% 5.0% 2.3% 3.9% 4.4% 4.5% 2.7% 4.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 10,000 20,000 30,000 40,000 50,000 60,000

1Q15 2Q15 3Q15 4Q15 1Q16* 2Q16 3Q16 4Q16* 1Q17

Total sales (THB mn) GPM NPM

% Growth YoY Sales 2.4 1.3 7.2 1.7 9.1 12.4 7.7 0.8 0.7 Gross profit

• 5.2

6.3 7.4 3.9 26.6 4.5

• 12.4
• 3.5
• 13.3

Net profit 58.7

• 7.2
• 23.9

8.5

• 19.0

16.9

• 1.9

19.1 19.3

Remark: Operating margin = (COGS – SG&A)/sales *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

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Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results  2017 Business Outlook  Appendices

Page 18 16 Jan 17: TU hosted a Thank You party for broker analysts, investors and bankers to thank them for their support on financing activities and being a potent intermediary to the financial community

Recent developments

Recognitions

24 March 17: TU won accolades in multiple categories at the annual Finance Asia awards including #1 Best managed company in Thailand, #1 Best CEO in Thailand, #1 Best CFO in Thailand in a poll conducted. TU received largely positive feedback from portfolio managers and buy side analysts who had participated in the poll Award 25 April 17: TU finance team has won awards for The Best Treasury Team of the year from the Asset magazine and for best cash management solutions along with our banker Kasikornbank. This comes within a year of us setting up our global treasury in Bangkok Award 7 April 17: TU launched its much awaited e-commerce platform and frozen food Brand Q-fresh in Thailand. https://www.qfreshshop.com 6 March 17: TU welcomed a group of investors from CLSA ASEAN forum to our Global innovation incubator to educate investors on GII’s background,

• bjectives and operations

IR Activity IR Activity Launch April 17: TU launched Tuna products in Germany under the Hawesta brand Launch

Page 19

Recent developments

Thai Union won 6 major awards at the 17th Annual Finance Asia poll. The poll, which includes portfolio managers and buy- side analysts has awarded the company for its policies on corporate governance, senior executives and company

• management. The awards which TU received are-

#1 Best Managed Company in Thailand #1 Best CEO in Thailand: Thiraphong Chansiri, Thai Union #1 Best CFO in Thailand: Joerg Ayrle, Thai Union #1 Best at Investor Relations in Thailand #1 Best at Corporate Social Responsibility in Thailand #1 Most committed to corporate governance in Thailand

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Recent developments

Caption: Mr. Rittirong Boonmechote(Centre), President of Global Frozen and Related business during the launch of Qfresh brand in Bangkok

Thai Union launched its domestic frozen food brand “Qfresh” along with its much awaited e-commerce platform www.qfreshshop.com. The brand enables Thai consumers and foodservice operators to order high quality seafood including Atlantic Salmon, Shrimp, Chilean Seabass and Squid directly to their doorstep through the platform. This is the first frozen seafood brand introduced by Thai Union into the Thai market

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Proposed final dividend for the period: 1 Jul 16 to 31 Dec 16 DPS THB 0.31 (Full year DPS: THB 0.63) XD 6 March 2017 Book closing date 9 March 2017 Payment date 20 April 2017

Stable dividend payment despite operational headwinds

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 0.31 50.1% 50.4% 53.5% 50.6% 50.7% 50.0% 29.4% 51.3% 59.9% 50.5% 51.3% 57.2% 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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Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results

• TU’s Consolidated Results
• Results by Business Unit

 2017 Business Outlook

Page 23

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

• ur shareholders’ value.”

Joerg Ayrle Group Chief Financial Officer

Page 24

High tuna prices

(+30.0% YoY, +8.3% QoQ)

• Difficulty to pass on price increases to consumer
• Competitive pressure in the private label business

High shrimp prices

(+13.8% YoY, +16.9% QoQ)

• Rapid increase in shrimp price put pressure on profit margin

High salmon prices

(+14.7% YoY, -1.1% QoQ)

• Salmon re-pricing enable second consecutive quarter of

positive gross margin

• Due to significant re-pricing, the volume sales was affected

Exchange rate volatility

• Baht appreciation hurt competitiveness of Thai exports
• Euro and GBP depreciation induce consumer price inflation
• Exchange volatility affect the accounting translation

Political dynamics

• New government in the United States
• Continued challenge after the Brexit

The headwinds during 1Q17

Page 25

Some turbulences in FX with THB rising vs. all currencies

USD/THB spot rate: Average Q1 main FX rates

Remark: All amounts in THB mn unless stated

FX 1Q17 1Q16 Chg% USD/THB 35.1060 35.6470

• 1.5%

EUR/THB 37.4097 39.3163

• 4.8%

GBP/THB 43.4955 51.0215

• 14.8%

Page 26

1Q17 Raw materials rose significantly YoY

Remark: All amounts in THB mn unless stated

Page 27

1Q17: Continued overall resilience to operational dynamic

28,606 30,642 32,602 33,333 31,210 34,441 35,128 33,597 31,427 13.8% 16.9% 17.3% 14.2% 16.0% 15.8% 14.1% 13.6% 13.8% 5.3% 4.3% 5.0% 2.3% 3.9% 4.4% 4.5% 2.7% 4.7%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 10,000 20,000 30,000 40,000 50,000 60,000

1Q15 2Q15 3Q15 4Q15 1Q16* 2Q16 3Q16 4Q16* 1Q17

Total sales (THB mn) GPM NPM

% Growth YoY Sales 2.4 1.3 7.2 1.7 9.1 12.4 7.7 0.8 0.7 Gross profit

• 5.2

6.3 7.4 3.9 26.6 4.5

• 12.4
• 3.5
• 13.3

Net profit 58.7

• 7.2
• 23.9

8.5

• 19.0

16.9

• 1.9

19.1 19.3

Remark: Operating margin = (COGS – SG&A)/sales *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

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Resilient sales growth

• Sales +0.7% YoY, due to soft demand and weak currency
• At constant exchange rates, sales would have increased by

3.5%

A weaker GPM from high raw material prices

• High tuna and shrimp prices putt pressure on profit margin
• European salmon business product re-pricing prompt two

consecutive quarter of positive GP

Prudent cost control

• SG&A expenses rose only 1.6% YoY

Well-managed non-operating items

• Prudent foreign exchange policy allow TU to record FX gains

THB 590m and benefited from Baht appreciation

• Fishing fleet operational improvement thanks to fish price

increase and operation improvement

Strong contribution from Red Lobster

• RL contributed THB 224mn during Q117, from both share of

profits and interest income

The key take away for 1Q17 results

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• 4. Labor Waste Reduction

Red Lobster has initiated Cross training, cross scheduling, reducing shift change overlap amongst others with an aim to reduce labor waste by 10-15%

Strong initiatives at Red Lobster

• 1. Kitchen of the Future

Positive results from kitchen of the future initiative. Adopted to streamline product offerings/ process resulting in fresher, faster, better food with lower labor costs and waste

• 2. RL’s Signature Events

Growing sales and positive feedback from customers on RL specialty events like LobsterFest, Endless Shrimp, CrabFest & SummerFest

• 3. Smart PR Activity

PR has generated > 2.7 Billion media

• impressions. Largely positive PR

reported with the likes of Beyonce, Tyrese Gibson endorsing RedLobster. RL Rewards programme a hit amongst regular customers

• 5. International Expansion

Actively developing entry strategy to key overseas markets including Asia to drive growth

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USD mn 948

31,210 34,441 35,128 33,597 31,427 1Q16* 2Q16 3Q16 4Q16* 1Q17

Sales

THB mn

1Q17 A stable sales trend

• 1Q17 sales grew by 0.7% YoY to THB 31,427mn

(up 2.8% YoY in dollar term to USD895mn), driven by:

• Ambient seafood business was facing difficult

business environment from sluggish demand in Europe and European currencies depreciation against Thai Baht, resulting in lower revenue during the quarter

• Chilled

and frozen product re-pricing significantly 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

• Weak sales growth in Thai Baht term was partly

due to YoY Baht appreciation against US Dollar during 1Q17.

112,813 121,402 125,183 134,375 31,210 31,427

• 20,000

2013 2014 2015 1Q16* 1Q17 YoY Growth 5.7% 7.6% 3.1% 895 871 976

+0.7% YoY

• 6.5% QoQ

1,009 7.3% 3,803 3,716 USD mn

Remark: *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations +0.7% YoY

Page 31

1Q17 resilient sales growth, hindered by the FX impact

Revenue growth component

(THB million)

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

1Q16 1Q17 USD mn 895 870

+0.7% YoY

+2.9% YoY

Before currency impacts 31,427 31,210

• 320

+538 +7% +909

• 722
• 23
• 457
• 6%

+14% +15%

• 5%
• 1%

Tuna Shrimp & related business1 Sardine & Mackerel Salmon Pet Care Value added & other products2

• 22%
• 2%
• 237

USD effect EUR effect +208 Lobster +14% +320

Page 32 Brand, 36% **FS - Brand, 6% **FS - Private Label, 6% Private Label, 52%

Stable branded sales mix amid foreign currency volatility

Sales Breakdown by Business Sales Breakdown by Geographic

• Lower sales contribution from the European

markets to 31% (from 33% during 2016) was driven by significant Thai Baht appreciation against European currencies during 1Q17.

• US sales contribution improved to 40% (from 39%

in 2016) from improved sales and strengthening relationship with Red Lobster.

• 1Q17 branded and private label sales mix

remained largely stable compared to 2016 with the branded sales contributing 42% of 1Q17 sales and the balance from the private label sales mix.

• 1Q17 total branded sales marginally declined by

1.7% YoY, mainly due to the European currencies depreciation against Thai Baht putting pressure

• n European branded sales.
• On the other hand, private label sales reported

strong growth of 2.5% YoY, mainly driven by selling price adjustment.

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

40% 44% 42% 39% 40% 30% 29% 29% 33% 31%

7% 7% 8% 8% 8%

8% 7% 6% 6% 6% 14% 13% 14% 13% 14%

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

2013 2014 2015 2016 1Q17

Others* Japan Domestic Europe USA

THB 31,427mn 1Q17

Brand, 37% **FS - Brand, 4% **FS - Private Label, 8% Private Label, 50%

THB 134,375mn 2016

Page 33 GPM 12.6% 15.7% 15.6% 14.8% YTD 16.0% 13.8%

14,222 19,020 19,501 19,927 4,996 4,330

• 5,000

2013 2014 2015 1Q16* 1Q17

• 13.3% YoY

4,996 5,428 4,937 4,565 4,330 16.0% 15.8% 14.1% 13.6% 13.8%

1Q16* 2Q16 3Q16 4Q16* 1Q17

Gross margin under pressure from high raw material prices

Gross Profit

THB mn

• 1Q17 Gross profit of THB 4,330mn, down 13.3%

YoY, driven mostly by raw material prices volatility and currency appreciation YoY

• 1Q17 margin was at 13.8%, down 223bps YoY.

The margin remain under pressure due to:

• Rising raw material prices (1Q17 tuna raw

material price +30.0% YoY and shrimp price +13.8% YoY) affect gross margin of key businesses, particularly in European market

• THB currency appreciate against European

currencies and USD, YoY

• But the negative impact was partly offset by:
• 1Q17 European chilled smoke salmon business

gross profits has turned positive from negative in 1Q16.

• PetCare business still report both strong sales

growth and margin improvement YoY

• 13.3% YoY
• 5.2% QoQ

GPM

Remark: *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

Page 34

Operating profit: Prudent cost control

Operating Profit

THB mn

• 1Q17 Operating profit of THB 881mn, up down

45.0% YoY, driven mostly by a weak gross margin during the quarter

• Due to stringent cost control, 1Q17 SG&A

expenses was up by 1.6% YoY to THB 3.4bn. Ratio-wise, the SG&A to sales ratio was 11.0% (stable from 10.9% during 1Q16), driven by both THB appreciation and weak sales growth compared to the same quarter last year

• SG&A to sales ratio is above our full year target
• f 10%, which is mostly attributed to seasonality

factor that normally put pressure on the first quarter of every year

1,602 2,062 1,872 1,270 881 5.1% 6.0% 5.3% 3.8% 2.8%

1Q16* 2Q16 3Q16 4Q16* 1Q17

• 45.0% YoY
• 29.7% QoQ

3,988 6,990 6,785 6,805 1,602 881

• 1,000

2013 2014 2015 1Q16 1Q17

OP Margin

• 45.0% YoY

OPM 3.5% 5.8% 5.4% 5.1% YTD 5.1% 2.8% Remark: *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

Page 35 EBITDA Margin 9.2% 7.0% 9.1% 9.2% YTD 9.4% 9.2%

Stable EBITDA supported by investments and FX gains

EBITDA

THB mn

2,946 3,181 2,917 2,094 2,899 9.4% 9.2% 8.3% 6.2% 9.2%

1Q16* 2Q16 3Q16 4Q16* 1Q17

• 1.6% YoY

+38.5% QoQ

9,823 7,867 10,999 11,526 2,946 2,899

• 2,000

2012 2013 2014 1Q16* 1Q17

• 1.6% YoY
• Despite a weak operating profits, TU reported

1Q17 EBITDA of THB 2,899mn, down 1.6% YoY. The stable EBITDA YoY was supported by interest income and equity profits contribution from an investment in Red Lobster and an FX gains of THB590mn from strong Baht appreciation against key currencies during 1Q17.

EBITDA Margin

Remark: *The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations

Page 36

Net profit: Strong growth supported by investments and FX impact

Net Profit

THB mn

1,231 1,527 1,594 902 1,469 3.9% 4.4% 4.5% 2.7% 4.7%

1Q16 2Q16 3Q16 4Q16 1Q17

+19.3% YoY +62.8% QoQ

2,853 5,092 5,302 5,254 1,231 1,469

• 1,000

2013 2014 2015 1Q16 1Q17

+19.3% YoY

NPM

• 1Q17 net profit of THB 1,469mn, up 19.3% YoY,
• The increased net profit was driven by:
• Positive income contribution from a strategic

investment in Red Lobster, both from interest income and positive equity income,

• Baht appreciation against US Dollar boosted FX

gains during the quarter,

• Lower minority interest expenses from minority

stake buyout of US business in 3Q16,

• Lower tax expenses from a weak business

performance in European market,

• Soon-to-be discontinued fishing fleet operation

has improved due to high tuna prices YoY.

• However, the aforementioned gains were partly
• ffset by higher interest expenses as a result

from higher interest-bearing debt as a result of a multiple investments made during 2016

NPM 2.5% 4.2% 4.2% 3.9% YTD 3.9% 4.7%

Page 37

Normalized net profit of THB 1,052mn

Normalized Net Profit

THB mn Norm NP Margin

• Excluding the one-off quarter-end items, 1Q17

normalized net profit was at THB 1,052mn, stable YoY.

• One-off positive items during 1Q17 of THB 417mn

comprised of:

• Profits from soon-to-bed disposed fishing fleet
• peration (THB 36mn)
• Accounting adjustment (-THB 75mn),
• Unrealized FX gains (THB 476mn),
• Tax adjustment (-THB 20mn)
• We have signed an MoU to dispose the loss-

making fishing fleet business, the transaction of which is expected to be completed within 1H17.

Remark: The normalized net profit still include the realized FX gains/losses from normal business operation

1,083 1,446 1,384 1,423 1,052 3.5% 4.2% 3.9% 4.2% 3.3%

1Q16 2Q16 3Q16 4Q16 1Q17

• 2.9% YoY
• 26.1% QoQ

1,469

+75

• 79

1,052

Fishing fleets DO Accounting adjustment

1Q17 Reported NP 1Q17 Normalized NP

Unrealized FX gain Tax adjustment

• 476

+20

• 36

Page 38

0.98 0.60 1.07 1.11 0.26 0.31 2012 2013 2014 1Q16 1Q17

EPS: Keeps momentum despite operational headwinds

EPS*

THB

0.26 0.32 0.33 0.19 0.31 1Q16 2Q16 3Q16 4Q16 1Q17

+19.3% YoY +62.8% QoQ

• 1Q17 EPS was at THB 0.31, up 19.3% YoY and

62.8% QoQ, in line with the net profit improvement

Remark: *EPS in this slide represents fully diluted EPS based on current number of shares of 4,771,815,496 +19.3% YoY

Page 39

9,162 11,664 3,837 786 2014 2015 2016 1Q17

1Q17 strong free cash flow amid high raw material prices

Annual Free Cash Flow

THB mn 4,483

• 29
• 192
• 425

786

1Q16 2Q16 3Q16 4Q16 1Q17

Quarterly Free Cash Flow

THB mn

Remark: 1Cash Conversion Rate = FCF / EBIT; FCF= EBITDA-Changes in net working capital - CAPEX Cash Conversion Rate1

2.2

• 0.01
• 0.09
• 0.3

0.4

Cash Conversion Rate1

1.1 1.2 0.5 0.4

• Despite high raw material prices, 1Q17 Free cash

flow (FCF) was solid at THB 785mn, due mainly to positive contribution from recent investments and FX gains

Page 40

Debt refinancing secured long-term funding for investments

Interest-bearing debts of THB 64,854mn

42% 2% Long-term loan by maturity THB 51,209mn

By Maturity

2021

• nwards

2020 2019 2018 Long-term Debt

1Q17

Current Portion

• f Long-

term Debt & finance lease Short-term Loan

79% 1% 2016 20% 39% 5% 56%

Page 41

1Q17: Strong operating cashflow allowed debt repayment

+178 +264 +852 +909 +108

Operating Activities THB 1,695mn Investing & Financing Activities Free Cash Flow THB 786 mn Unit: THB mn ND/E 1.37x Kd = 2.74% ND/E 1.34x Kd = 3.04%

64,384

+300

• 89
• 2,899

64,942

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 26 Dec 2016 Net Debt as of 8 May 2017 Tax payment EBITDA CAPEX +182 Cash paid for NCI 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 42 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

Improving financial strength

Net WC3

9.3% 6.4% 10.7% 13.0% 12.1% 1Q17 4Q16 3Q16 2Q16 1Q16* 1.34x 1.37x 0.92x 0.74x 0.69x 1Q17 4Q16 3Q16 2Q16 1Q16

ROCE2 ROE1 Debt to EBITDA ND/E4

13.5% 8.4% 14.8% 13.8% 10.9% 1Q17 4Q16 3Q16 2Q16 1Q16*

INV Days

131 119 108 106 117 1Q17 4Q16 3Q16 2Q16 1Q16* 5.59 7.87 3.80 3.02 2.97 1Q17 4Q16 3Q16 2Q16 1Q16* 38,448 41,131 42,371 42,926 41,923 114 104 107 114 121 1Q16 2Q16 3Q16 4Q16 1Q17

WC (THB mn) WC Day *The 1Q16 figures were restated mainly due to fishing fleets reclassification

Page 43

Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results

• TU’s Consolidated Results
• Results by Business Unit

 2017 Business Outlook

Page 44

500 1,000 1,500 2,000 2,500

Jan-14 Jan-15 Jan-16 Jan-17

Key operating impact: Raw material price increased YoY during 1Q17

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

170 (Apr’17)

Skipjack tuna raw material prices (USD/ton)

1,690 (Apr’17)

• In April, tuna price closed at USD 1,690/ton. In 1Q17, average price

was at USD 1,633/ton (+30.0% YoY, +8.3% QoQ).

• In April, shrimp price closed at THB 170/kg. In 1Q17, average price

was at THB 212/kg (+13.8% YoY, +16.9% QoQ). Source: Thai Union Group and http://fishpool.eu/price-information/spot-prices/history/

Raw material prices

Salmon raw material prices (NOK/kg)

• In April, salmon price closed at NOK 64/kg. In 1Q17, average price

was at NOK 67/kg (+14.7% YoY, -1.1% QoQ).

20 40 60 80

Jan-14 Jan-15 Jan-16 Jan-17

64 (Apr’17)

50 100 150 200 250 300 Jan-14 Jan-15 Jan-16 Jan-17 x2

Page 45

28 30 32 34 36 38

Jan-14 Jan-15 Jan-16 Jan-17

USD/THB

• In April, USD/THB closed at 34.63. In 1Q17, average USD/THB was

at 35.12 (-1.5% YoY, -0.8% QoQ).

34.63 (Apr’17)

Exchange rate

30 35 40 45 50

Jan-14 Jan-15 Jan-16 Jan-17

EUR/THB

37.62 (Apr’17)

• In April, EUR/THB closed at 37.62. In 1Q17, average EUR/THB was

at 37.41 (-4.9% YoY, -2.0% QoQ).

30 40 50 60

Jan-14 Jan-15 Jan-16 Jan-17

GBP/THB

• In April, GBP/THB closed at 44.68. In 1Q17, average GBP/THB was

at 43.52 (-14.8% YoY, -1.0% QoQ).

44.68 (Apr’17)

Key operating impact:

Page 46

Thai Union’s global footprint

Page 47

41% 45%

3 strategic business segments

Ambient seafood

Sales: THB 14,069 mn

PetCare, value added and

• thers

Sales: THB 4,444 mn

Frozen, chilled seafood and related

Sales: THB 12,914 mn

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

Total 1Q17 sales: THB 31,427mn

Other products4

56% 44%

Sales Split:

39% 61% 7% 93%

14%

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 48

Ambient Seafood

Page 49

Ambient Seafood 1Q17 soft starts for European market

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

• 1Q17 ambient seafood business sales was THB

14.1bn, down 7.4% YoY. Sales decline was mainly attributable to the lower tuna business sales volume in European market

• 1Q17 Gross profit margin was at 16.2%, down

226bps YoY, due to high raw material prices during 1Q17.

• Weak European market put pressure on branded

ambient business gross margin. However, TU managed to pass on the raw material price increase in the private label business, which saw a significant average selling price improvement YoY

Remark: 2016 branded/private label sales was reclassified due to Rugen Fisch sales reclassification :*Including effect of Steam Pot sales reclassification in 3Q16 onwards (only QoQ effect), from Ambient seafood to Value-added products

44% 43% 42% 51% 56% 57% 58% 49% 15,198 17,261 14,733 13,852 14,069

• 1,000.00

1Q16 2Q16 3Q16* 4Q16 1Q17 54% 52% 50% 58%

46% 48% 50% 42% 94,086 103,387 90,028 88,415 87,643

• 1,000.00

1Q16 2Q16 3Q16* 4Q16 1Q17

• 7.4% YoY

1.6% QoQ

• 6.8% YoY
• 0.9% QoQ

49% 51% 56% 44%

Brand Private label Brand Private label

24% 26% 20% 19% 18% 12% 12% 8% 9% 14% 18% 20% 15% 14% 16%

1Q16 2Q16 3Q16* 4Q16 1Q17

Total Brand Private label

Page 50

Frozen, chilled seafood and related

Page 51

33% 34% 32% 33% 67% 66% 68% 67% 52,524 57,635 64,147 64,837 54,015

• 1,000.00

1Q16 2Q16 3Q16 4Q16 1Q17

• 16.7% QoQ

66% 68% 64% 68% 34% 32% 36% 32% 12,225 13,152 15,138 15,317 12,914

• 1,000.00

1Q16 2Q16 3Q16 4Q16 1Q17

Frozen, chilled seafood and related Solid sales growth

14% 13% 11% 11% 10% 7% 6% 8% 9% 7% 10% 8% 9% 10% 8%

1Q16 2Q16 3Q16 4Q16 1Q17

Total Brand Private label

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

+5.6% YoY

• 15.7% QoQ

+2.8% YoY

Brand Private label Brand Private label

• 1Q17 frozen and chilled seafood business sales were

at THB 12.9bn, up 5.6% YoY. The improvement was driven mainly by:

• Product repricing to reflect higher raw material
• prices. Chilled salmon business, while sales

volume decline, reported an average selling price (ASP) up 39% YoY

• Shrimp business see sales improvement driven by

both growing volumes sales and higher ASP

• While European salmon business gross margin was

turning into positive during 1Q17, overall gross margin for the business still show a declined by 126bps YoY to 8.3%, mainly driven by high shrimp prices (+12.4% YoY)

39% 61% 29% 71%

Page 52

PetCare, value-added and others

Page 53

PetCare, value-added and others PetCare delivering strong operational performance

Total

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

• 1Q17 PetCare and valued added segment sales were

at THB 4,444mn, up 17.4% YoY, mainly thanks to solid growth in PetCare business

• PetCare business continue to deliver strong growth

through market expansion and product innovation, both of which has contributed to a marginal margin improvement YoY

Remark:*Including effect of Steam Pot sales reclassification in 3Q16 onwards (only QoQ effect), from Ambient seafood to Value-added products **From 1Q17 onward, sales of scrap no longer apply “No-COGS” policy. With new cost allocation, the segment gross margin has shown a decline YoY

• 2.3% QoQ

92% 95% 86% 85% 8% 5% 14% 15% 31,545 34,654 42,493 30,961 35,900

• 1,000.00

1Q16 2Q16 3Q16* 4Q16 1Q17

92% 98% 84% 90% 8% 2% 16% 10% 3,786 3,989 5,177 4,549 4,444

• 1,000.00

1Q16 2Q16 3Q16* 4Q16 1Q17

+17.4% YoY +13.8% YoY +16.0% QoQ

Brand Private label Brand Private label

7% 93% 93% 7%

27% 24% 26% 25% 22%

1Q16 2Q16 3Q16* 4Q16 1Q17**

Page 54

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

2017 Segment Profitability

THB 4,330 million Gross Profit

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

New segment

Total

Sales (THB million) Margin (%) Gross Profit (THB million) 2,282 1,066 982 14,069 12,914 4,444 16.2% 8.3% 22.1% 31,427 13.8%

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

Page 55

Agenda

 Company Overview  Key Highlights  Recent Developments  1Q17 Financial Results  2017 Business Outlook

Page 56

2017 Guidance

FY 2017 Sales

THB 145-150bn

GPM

Lower end of 15-16%

SG&A

10%

Effective interest rate

No material change from 2016

Effective tax rate

15%

CAPEX

• Approx. THB 4.8bn

Dividend policy

At least 50% dividend payout

Rationale:

Strong headwind from high raw material prices and extreme competitive pressure High currency volatility for Thai Baht, US Dollar and British Pound

Page 57

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

Q&A

Page 58

Appendix

Page 59

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 2017

Dividend Policy

At least 50% of net profit

Major Shareholders

THB

Bloomberg/ Reuters TU TB/ TU.BK Share price (5 May 2017) : THB 22.00 Historical price : 52-week high THB 22.80 52-week low THB 19.50

• No. of paid up shares :

4,771.82mn Par value : THB 0.25 Market Capitalization : THB 111.3bn Chansiri Family 20.5% Niruttinanon Family 6.9% Mitsubishi Corporation 7.3% Thai NVDR 10.5% Social Security Office 5.9% Others 49.0%

Source: SET and TU

As of 31 Mar 2017 Free float : 64.8% Foreign ownership/ Foreign limit 33.5%/ 45.00%

Page 60

1Q17 Income Statement

Remark: *Including share of income from investment in associates **The 1Q16 and 4Q16 figures were restated mainly due to reclassification of fishing fleet discontinued operations ***Normalized net profit exclude ALL one-off adjustments and items throughout the period 1Q17/ 1Q17/ 1Q16 4Q16 Change Change Sales 31,427 100% 31,210 100% 33,597 100% 0.7%

• 6.5%

Cost of sales (27,097)

• 86.2%

(26,213)

• 84.0%

(29,032)

• 86.4%

3.4%

• 6.7%

Gross profit 4,330 13.8% 4,996 16.0% 4,565 13.6%

• 13.3%
• 5.2%

SG&A expenses (3,448)

• 11.0%

(3,394)

• 10.9%

(3,295)

• 9.8%

1.6% 4.6% FX gain (loss) 590 1.9% 264 0.8% (181)

• 0.5%

123.2%

• 424.9%

Other income* 750 2.4% 378 1.2% 229 0.7% 98.2% 227.6% EBIT 2,221 7.1% 2,244 7.2% 1,317 3.9%

• 1.0%

68.6% Finance cost (498)

• 1.6%

(372)

• 1.2%

(445)

• 1.3%

33.8% 11.9% EBT 1,723 5.5% 1,872 6.0% 872 2.6%

• 8.0%

97.5% Tax (199)

• 0.6%

(350)

• 1.1%

278 0.8%

• 43.1%
• 171.5%

Profit (Loss) from discontinued operarion 36 0.1% (149) 0.0% (122) 0.0% 0.0% Net income 1,560 5.0% 1,373 4.4% 1,151 3.4% 13.6% 35.6% Net income (loss) attributable to: Equity holders of the Company 1,469 4.7% 1,231 3.9% 902 2.7% 19.3% 62.8% Non-controlling interests of the subsidiaries 91 0.3% 142 0.5% 249 0.7%

• 36.0%
• 63.4%

Earnings per share Basic earnings per share 0.31 0.26 0.19 20.2% 61.4% Diluted earnings per share 0.31 0.26 0.19 20.2% 61.4% Exchange rate THB/USD 35.11 35.90 35.39

• 2.2%
• 0.8%

Normalized net profit 1,052 3.3% 1,082 3.5% 1,423 4.2%

• 2.8%
• 26.1%

Consolidated (Unit: THB mn) 1Q17 % to sales 1Q16** % to sales 4Q16** % to sales

Page 61 Cash and cash equivalents* 470 0.3% 976 0.7%

• 51.8%

Trade and other receivables 16,161 11.5% 16,412 11.5%

• 1.5%

Inventories - net 39,130 27.8% 39,626 27.8%

• 1.3%

Other current assets 3,317 2.4% 3,064 2.2% 8.3% Total current assets 59,079 42.0% 60,079 42.2%

• 1.7%

Fixed assets 23,337 16.6% 23,281 16.4% 0.2% Goodwill and other intangible assets 28,956 20.6% 29,583 20.8%

• 2.1%

Other non-current assets 29,241 20.8% 29,424 20.7%

• 0.6%

Total Assets 140,613 100% 142,365 100%

• 1.2%

Bank overdrafts and short-term loans 12,627 9.0% 36,983 26.0%

• 65.9%

Trade and other payables 17,645 12.5% 17,429 12.2% 1.2% Current portion of long-term loans 751 0.5% 765 0.5%

• 1.7%

Current portion of debentures

• 0.0%

2,500 1.8%

• 100.0%

Current portion of finance lease liabilities 79 0.1% 82 0.1%

• 4.2%

Other current liabilities 881 0.6% 1,483 1.0%

• 40.6%

Total current liabilities 31,983 22.7% 59,242 41.6%

• 46.0%

Long-term loans from financial institutions 14,915 10.6% 963 0.7% 1448.3% Debentures 36,293 25.8% 24,417 17.2% 48.6% Finance lease liabilities - net of current portion 188 0.1% 208 0.1%

• 9.6%

Other non-current liabilities 9,333 6.6% 10,099 7.1%

• 7.6%

Total Liabilities 92,713 65.9% 94,930 66.7%

• 2.3%

Non-controlling interests of the subsidiaries 4,206 3.0% 4,193 2.9% 0.3% Total Shareholders’ Equity 47,900 34.1% 47,436 33.3% 1.0% Total liabilities and shareholders’ equity 140,613 100% 142,365 100%

• 1.2%

Change (Unit: THB mn) 1Q17 % to total assets 2016 % to total assets

Statement of Financial Position as of 31 March 2017

Remark: *Including short-term investments

Page 62 (Unit: THB mn) 1Q17 1Q16 Change Profit before income tax 1,759 1,725 034 Adjustments for depreciation & amortisation expenses 679 702 (23) Other adjustments (384) 447 (830) Changes in operating assets and liabilities (95) 2,491 (2,586) Cash flows receipts from operating activities 1,959 5,364 (3,406) Net cash receipts (payments) from operating activities 1,695 5,168 (3,473) Net cash payments for investing activities (892) (2,150) 1,258 Net cash receipts (payments) for financing activities (1,531) (5,354) 3,823 Net increase (decrease) in cash and cash equivalent (728) (2,337) 1,608 Cash and cash equivalents - opening balance 731 2,590 (1,859) Exchange gain (loss) on cash and cash equivalents (16) 6 (22) Cash and cash equivalents - closing balance (14) 259 (273) CAPEX (1,005) (2,063) 1,059 Management Est. Free Cash Flows 786 4,483 (3,697) Consolidated

1Q17 Statement of Cash Flow