TKN Q2/19 OPPORTUNITY DAY Quarter 4 /18 Taokaenoi Food & - PowerPoint PPT Presentation

TKN Q2/19 OPPORTUNITY DAY Quarter 4 /18 Taokaenoi Food & Marketing Public Company Limited

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

TKN STOCK OVERVIEW Key Information : • Registered Capital 345 Mil Baht (1,380 Mil Share) • Issued & Paid Up Capital 345 Mil Baht (1,380 Mil Share) • SET Index SET 100 • CGR 2017 • Dividend Policy : 40% of Net Profit (Separate FS) H1 '19 : 75% of Net Profit (Separate FS) Dividend B / Share Payment Date 6M /2019 0.11 Sep 11, 2019 As of Aug 23, 2019 12M /2018 0.17 May 8, 2019 • Major Shareholders Peeradechapan group 58.12 % Free Float 41.88 % 6M /2018 0.17 Sep 6, 2018 • Market Cap 16,284 Mil B (@ 11.80 baht/share) 12M /2017 0.17 May 4, 2018 6M /2017 0.17 Sep 13, 2017 TAOKAENOI FOOD & MARKETING PLC. �3

COMPANY HISTORY Insert some short and brief lorem ipsum explanatory text about Atle here 5.7 BILLION BAHT IN REVENUE 3.5 BILLION BAHT IN REVENUE 2.1 BILLION BAHT IN REVENUE 1.0 BILLION BAHT IN REVENUE 2016 2017 2004 2005 2006 2007 2010 2011 2012 2013 2018 2019 2008 2009 2014 2015 • Export sales to • The Billionaire , • 1st Trading day in • Moved to • Start operation 2nd Singapore via Thai movie based on Stock Exchange of Nopawong factory , factory at Rojana, Export channel true story Thailand Pathumthani Ayutthaya • Acquired factory in Los Angeles, USA TAOKAENOI FOOD & MARKETING PLC. �4

OUR BOARD OF DIRECTOR Yuth Chaiyong Itthipat Jirapong Worachattarn Rattanacharoensiri Peeradechapan Suntipiromkul Chairman / Independent Director / Director / Director / Independent Director NRC Chairman Chief Executive Officer Chief Financial Officer Wanee Somboon Orrapat Porntera Tassanamontien Prasitjutrakul Peeradechapan Rongkasiripan Independent Director / Director & Director / Director / AC Chairman Executive Director Managing Director Internal Audit Director TAOKAENOI FOOD & MARKETING PLC. �5

OUR MANAGEMENT Itthipat Peeradechapan Nutchatpong Peeradechapan Prayut Apisitsareeku Chief Executive Officer / Managing Director : Chief Commercial Officer : Founder Business Support International (CCOi) Orrapat Peeradechapan Jirapong Suntipiromkul Managing Director : Chief Financial Officer International Trade & (CFO) Management TAOKAENOI FOOD & MARKETING PLC. �6

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

FINANCIAL HIGHLIGHTS unit : Mil Baht 300 YR 2017 YR 2018 YR 2019 2,582 Million Baht 200 171 160 154 152 142 135 129 100 H1 2019 Sales +1% YOY 98 81 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 • Q2/2019 Sales 1,302 Mil Baht 180 Million Baht (7.0%) +1% YOY, +2% QOQ H1 2019 Net Profit -41% YOY • YOY Sales Growth TH +4% , IM -2% • Sales Portion TH 41% : IM 59% • Q2/2019 Profit 98 Mil Baht (7.6%) • TH Market Share 69% -36% YOY, +21% QOQ TAOKAENOI FOOD & MARKETING PLC. �8

SALES BY QUARTER unit : Mil Baht YR 2017 YR 2018 YR 2019 2000 1,455 1,438 1,402 1500 1,337 1,302 1,283 1,287 1,280 908 936 Mainly drop from China 905 1,158 845 1,094 780 803 750 748 +4% YOY , +4% QOQ 707 660 1000 Partially drop from Tourist 500 546 537 532 522 501 497 492 -3% YOY , -2% QOQ 481 451 434 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thailand Int Mkt TAOKAENOI FOOD & MARKETING PLC. �9

THAILAND SALES PERFORMANCE H1/2019 SALES : 1,054 Mil B (+4% YOY) • Seaweed Categories • New flavour Seaweed Q1/19 Q2/19 • Q1/19 : Kimchi (Crispy & Grilled) Kimchi Icy Lemon New Flavour • Q2/19 : Icy Lemon (Big Sheet) (Crispy & Grilled) (Big Sheet) • New presenter F4 Sehun New Presenter (Grilled) (Crispy) • Q1/19 : F4 (Grilled Seaweed) • Chinese tourists partially drop YOY • Non-Seaweed Categories Market Update • New branch of Taokaenoi Land New Branch Q1/19 Q2/19 • Total Snack +5.3% YOY, Seaweed Snack -2.6% YOY • Q1/19 : Hinoya & TKN Land at The TKN Land The Market • Market Share : Seaweed Snack 69% Market Hinoya The Market Cosmo Bazarr • Q2/19 : Hinoya at Cosmo Bazaar TAOKAENOI FOOD & MARKETING PLC. �10

SALES BY COUNTRY unit : % Int Mkt 23% Thailand 41% China 36% EXPORT SALES : 1,528 Mil B (-2% YOY) • High growth rate : USA, Indonesia, and CLMV Thailand China Int Mkt • Sales drop mainly from China, in the process of increasing order to replace a previous distributor TAOKAENOI FOOD & MARKETING PLC. �11

CHINA SALES PERFORMANCE unit : Mil Baht YR 2017 YR 2018 YR 2019 800 600 619 591 588 572 563 478 400 470 463 446 425 200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 CHINA SALES : 941 Mil B (-9% YOY) • In the process of increasing order to replace a previous Shanghai's distributor • Opened official account (Flagship) on Taobao and TMall • Join SIAL China in Shanghai, one of the largest fairs for Asian food in China TAOKAENOI FOOD & MARKETING PLC. �12

Q3/2019 HIGHLIGHTS • New Presenter : Sehun • Co brand : Taokaenoi x Pringles • New Product : Power Bar / Pre Workout TAOKAENOI FOOD & MARKETING PLC. �13

SALES BY PRODUCT unit : Mil Baht 2,000 YR 2017 YR 2018 YR 2019 unit : % 3% 10% 3% 1,500 676 669 709 1,000 592 622 532 611 610 456 Crispy SW 456 500 35% 595 568 551 539 536 503 488 476 474 459 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Grilled SW Crispy Seaweed Grilled Seaweed Roasted Seaweed Tempura Seaweed 48% Crispy SW Grilled SW Roasted SW Tempura SW Others TAOKAENOI FOOD & MARKETING PLC. �14

OPERATION UPDATE unit : % Capacity Utilization Factory (Ton/Year) (%) Overhead Grand Total 8,250 65% 10% - Nopawong 4,700 72% Labor Cost Seaweed - Rojana 3,550 57% 20% 38% H2 Gross Margin Improvement Other Materials • Seaweed cost of 2019 season, -10% YOY 9% • Control factory overhead cost aligned with Packaging 23% production volume TAOKAENOI FOOD & MARKETING PLC. �15

PROFIT SUMMARY unit : Mil Baht 15.6% 15.6% YR 2017 YR 2018 YR 2019 0.16 300 12.0% 12.0% 12.0% 12.0% 11.8% 11.8% 11.7% 11.7% 9.9% 9.9% 8.9% 8.9% 0.107 200 7.6% 7.6% 6.4% 6.4% 171 160 154 152 142 135 129 0.053 100 98 1.8% 1.8% 81 25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Profit % Net Profit Profit & Loss Q2/2019 H1/2019 Mil B % on Sales Mil B % on Sales Gross Margin 365 28.0 706 27.3 Selling Expenses 197 15.1 360 13.9 Administrative Expenses 63 4.9 151 5.8 Net Profit 98 7.6 180 7.0 TAOKAENOI FOOD & MARKETING PLC. �16

BALANCE SHEET Separate Financial Statements Unit Jun 2019 Dec 2018 Change 78 88 (10) A/R - local collection period Days 25 22 3 A/R - export collection period Days 11 9 2 Finished goods holding period Days 144 101 43 Inventory holding period Days 53 27 26 A/P payment period Days DE Ratio Times 0.80 0.70 0.10 TAOKAENOI FOOD & MARKETING PLC. �17

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

BUSINESS OUTLOOK VISION : MISSION : Become an innovative food company Develop innovative products without any border I and bring happiness to our consumers limitations around the world Become a production that is recognized and II approved by international standard and also being environmentally friendly TARGET : Create happiness and healthy relationships and III Strive to make the company a Thailand bonds with the organization Quality Award (TQA) standard within The ability to become adaptive to the constant IV 2026 and generating more than 1 billion changes of the world and the continuous dollars in sales by 2028 development for sustainable growth A trustworthy organization due to good governance V and sustainable development TAOKAENOI FOOD & MARKETING PLC. �19

PRESENTATION AGENDA Company Overview Financial Performance Business Outlook Q&A

Q&A TAOKAENOI FOOD & MARKETING PLC. �21