Asian Seafoods Coldstorage PLC. Q1 Opportunity Day – 23 rd May 2018 TUNA BUSINESS FEED BUSINESS FROZEN BUSINESS PETFOOD BUSINESS DISTRIBUTION BUSINESS We are the right choice!
Disclaimer This presentation includes forward-looking statements and numbers that are subject to risks and uncertainties including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. ASIAN, Asian Seafoods Coldstorage PLC., based these forward-looking statements on its views with respect to future events and financial performance. Actual performance described herein could differ materially, better or worse, from that projected in the forward-looking statement due to the inherent uncertainty of estimates, forecasts and projections. Readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and ASIAN does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 2 Q1 Opportunity Day – 23rd May 2018
Agenda ASIAN Overview ASIAN Key Financial ASIAN Development by Segment ASIAN Strategies Updated ASIAN 2018 Target 3 Q1 Opportunity Day – 23rd May 2018
ASIAN OVERVIEW Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries
Asian Business Growth : -19% YoY Growth : +69% YoY Growth : +25% YoY Growth : -12% YoY Growth : +6% YoY Frozen Tuna Aquaculture Distribution Pet Food Business Business Business Feed Business Business Asian Alliance Asian Seafoods Asian Seafoods Asian Alliance Asian Feed International Coldstorage Coldstorage International Co., Ltd. Co., Ltd. PLC. PLC. Co., Ltd. Asian Seafoods Asian Food Coldstorage Co., Ltd. (Suratthani) Co., Ltd. 4.1 billion baht 1.1 billion baht 2.7 billion baht 1.5 billion baht 0.7 billion baht 2017 Business Size 5 Q1 Opportunity Day – 23rd May 2018
ASIAN’s Sustainability Product Quality and Services o Human Development and Human Value o Commit avoiding to involve in illegal fishing, procuring, o importing, exporting, transiting and distributing aquatic life and products obtained from illegal fishing and labor, and human trafficking. Anti-Corruption Policy o 6 Q1 Opportunity Day – 23rd May 2018
Major Events 2016 2012 • Implement ERP • Sustainable sourcing • Founded Asian Food & Good Labor Co., Ltd., domestic 2005 1994 trader company of the Practice • Established Nutrition group • Founded Asian • Registered Database in Pet Food • EMS Outbreak in Shrimp Asian Alliance & Feed • Asian Feed invested in International Co., Seafoods • Ambition 2020 were Extruder to diversify into Ltd., diversify into Coldstorage set Fish Feed Business Tuna Business PLC. 1964 2016s 2000s 2010s 2015s Starting Business in Frozen 1993 Food 2006 2013 2017 • Founded Asian • Acquired Asian Feed • AAI invested in • Expand Pet Food Seafoods Coldstorage Co., Ltd., diversify Premium Pet Capacity (Suratthani) Co., Ltd. into Shrimp Feed Food Line • Rapid Growth in Pet In order to expand Business food & Aqua Feed Frozen Food Business 2015 • Launch concept • Quadruple Growth “Closer to consumer in Pet Food and efficiency” and • Turnaround of set up strategies. Asian Feed Co., Ltd. Q1 Opportunity Day – 23rd May 2018 7
ASIAN Key Financial Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries
Q1/18 Highlights Lower y.o.y sales revenues: lower o Profitability volumes in Feed and Tuna and a lower ('000'000 Baht) Q1 2017* Q1 2018 Q4 2017 USD rate Sales 2,466 2,300 2,615 Gross Profit 286 139 224 Gross Profit 139 million baht: high Squid o SG&A (170) (140) (162) raw material prices USD exchange rate EBIT from Operation 116 (1) 62 impacted pet food margins Other Incom 18 48 19 Net profit 27 million o fxGain (loss) 19 21 21 Non-recurring (15) Restructuring of cost in Frozen o EBIT 138 69 101 Asian Group Services, with focus on o Financial Cost (32) (33) (36) marketing EBT 106 35 65 Taxes (0) (9) 41 Asian Europe Group in Germany with an o initial focus on Petfood sales Net Profit 106 27 106 * Re-classification of Rebate from Selling Expenses to deduct Sales Revenue which were JV with Interpharma to launch “MARIA” o move since Q2/17 petfood brand Q1 Opportunity Day – 23rd May 2018 9
Q1/18 Sales Sales revenues decreased 7% y.o.y. to 2,300 million at similar volumes, mainly o due to a lower USD exchange rate (-7%). Pet food volumes were up, off-set by lower volumes in Tuna and Aqua feed Gross Profit amounted 139 million baht. Squid margins continued to be o depressed and the lower USD exchange rate impacted pet food margins * Volumes include inter company transaction 10 Q1 Opportunity Day – 23rd May 2018
Q1/18 Profitability Gross Profit margin was 6.0% o versus 12.2% in the same quarter last year. Net profit in 1Q18 was 27 million o baht, a decrease compared to the same period last year (net profit 106 million baht) 11 Q1 Opportunity Day – 23rd May 2018
Q1/18 Working Capital *Net WC Days = AR Days + INV Days – AP Days **ROE= last 4 quarter net profit/Average total shareholders’ equity 12 Q1 Opportunity Day – 23rd May 2018
Leverage &Debt Structure Balance sheet ratios o a bit improved. Long term Loan will o be further improve in Q2-18 13 Q1 Opportunity Day – 23rd May 2018
ASIAN Development by Segment Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries
Frozen Business
Frozen Business Frozen Business of Asian Group comprises of 3 plants Asian Seafoods Coldstorage o Public Company Limited (Klongtoey) capacity of 2,400 tons finished product per year Asian Seafoods Coldstorage o Public Company Limited (Samutsakorn) capacity of 14,000 tons finished product per year Asian Seafoods Coldstorage o (Suratthani) Company Limited Capacity of 10,000 tons finished product per year 16 Q1 Opportunity Day – 23rd May 2018
Frozen Performance Sales volumes for the quarter increased slightly with 3% y.o.y. but sales revenues o decreased 18% to 936 million baht. Squid volumes were in line with the same period last year, but a significantly lower prices o and gross profit margins. It is still uncertain if prices will show recovery in Q2. Shrimp volume was also similar but trading at lower prices compared to a year ago and o lower gross profit margins. A comprehensive cost rationalisation project among the three processing plants has been o initiated and is expected to show an improved cost structure, partly in Q2 and mostly in Q3. * Volumes include inter company transaction Q1 Opportunity Day – 23rd May 2018 17
Q1 FX, price impact o Sales volume was up in the Surat plant (Squid and Sushi Ebi), partly off-set by lower sales of Sillago and commodity Shrimp o Due to lower raw material price, sales prices of Sillago and commodity Shrimp were down 8% and 14% respectively. Squid prices were in line with last year. o JPY and USD rates decreased on average with 7% and 11%. o High Squid raw material prices and lower commodity Shrimp volume caused a significant y.o.y. decrease of profit margin o Further price drop of shrimp in Q2 * Volumes include inter company transaction Q1 Opportunity Day – 23rd May 2018 18
Frozen Actions o More focus on China market o Increase fish processing and product development o Review sourcing options squid o Cost restructuring • A comprehensive cost rationalisation project among the three processing plants has been initiated and is expected to show an improved cost structure in the course of Q3 • Rationalisation of cold storage facilities in the course of Q2 Q1 Opportunity Day – 23rd May 2018 19
Tuna Business
Tuna Business Operated by Asian Alliance o International Co., Ltd., located in Samutsakorn province w/ quite new facilities compare to others. Traditional tuna product in cans and o pouches, and Value added product (ready-to-eat) such as Tuna with rice meal. No branded, more flexible in tuna o high price seasons. Capacity of around 17,500 tons of o finished product per year. 21 Q1 Opportunity Day – 23rd May 2018
Tuna Performance o Canned Tuna volumes were y.o.y. down 16% and sales revenues were down 11%, with higher sales prices partly off-setting the lower volume. o The decline in volume was a result of continued selective order intake and in the course of the quarter availability of raw materials became scarcer, resulting in an upward price trend. * Volumes include inter company transaction Q1 Opportunity Day – 23rd May 2018 22
Q1 FX, price impact o Sales volume was down, but off- set by price increase as a result of higher raw material prices o JPY and USD rates decreased on average with 7% and 11%. o Profit margin impacted by lower volume, but off-set by higher petfood volume o Further price increase in Q2, volumes slightly up Q1 Opportunity Day – 23rd May 2018 23
Petfood Business
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