WE R THE RIGHT CHOICE Frozen Tuna Pet Food Feed Distribution - - PowerPoint PPT Presentation

Frozen Business Tuna Business Pet Food Business Feed Business Distribution Business

Asian Seafoods Coldstorage PLC. บมจ.ห้องเย็นเอเชี่ยน ซีฟู้ด

Corporate Access - 24th January 2017

WE R 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.

Corporate Access - 24th January 2017

Agenda

• Asian Overview
• Major Events
• Asian Family
• Asian Business
• Asian Link
• Asian Performance
• Highlight
• 3Q Ytd Performance
• Asian Ambition 2020

Corporate Access - 24th January 2017

ASIAN OVERVIEW

Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries

Corporate Access - 24th January 2017

2014 Asian Seafood Coldstorage (Sriracha) Co., Ltd. were closed 2006

• Acquired Asian

Feed Co., Ltd.

• Founded Asian

Seafood Coldstorage (Sriracha) Co., Ltd.

Major Events

1990s 1964 2000s 2010s

1964 Starting Business 1993 Founded Asian Seafoods Coldstorage (Suratthani) Co., Ltd. 1994 Registered Asian Seafoods Coldstorage PLC. 2004 Asian Seafoods Coldstorage PLC. Recapitalized to 361 MB 2005 Founded Asian Alliance International Co., Ltd. 2012

• Founded Asian

Food Co., Ltd.

• EMS Outbreak in

Shrimp 2013

• AAI invested in

Pet Food Line

• Step into ready-to-

cook/eat meal 2015

• Quadruple Growth in

Pet Food

• Turnaround of Asian

Feed Co., Ltd. 2016

• Implement ERP
• Sustainable sourcing &

Good Labor Practice

• Established Nutrition

Database in Pet Food & Feed

• Ambition 2020 were set

2015s

Corporate Access - 24th January 2017

Asian Business

Frozen Business

Asian Seafoods Coldstorage PLC.

Tuna Business

Asian Seafoods Coldstorage (Suratthani) Co., Ltd.

Pet Food Business Aqua culture Feed Business

Asian Feed Co., Ltd.

Distribution Business

Asian Food Co., Ltd. Asian Alliance International Co., Ltd. Asian Alliance International Co., Ltd. 3.5 Mbaht 1.2 Mbaht 1.6 Mbaht 1.1 Mbaht 0.7 Mbaht 2015 Business Size

Corporate Access - 24th January 2017

Frozen Business

Frozen Business of Asian Group comprises of 3 plants.

• Asian Seafoods Coldstorage Public Company Limited

(Klongtoey)

• Asian Seafoods Coldstorage Public Company Limited

(Samutsakorn)

• Asian Seafoods Coldstorage (Suratthani) Company Limited

Corporate Access - 24th January 2017

Frozen Business

• Production capacity of 4,000 tons a year
• Sillago and Sillago breaded products or

tempura mostly distributed to Japanese customers

• Brands that customer trust
• Relationship to raw material sources
• Coldstorage facility right in the center of

BKK

Corporate Access - 24th January 2017

Frozen Business

• Production capacity of 24,000 tons per

year

• Focuses on frozen shrimp and expands

into a variety of value-added products (ready-to-cook and ready-to-eat meal)

• Provide full traceability on 100% non-

IUU Fishmeal (in corporate with Asian Feed Co., Ltd)

• “4 Stars” certified shrimp products

Corporate Access - 24th January 2017

Frozen Business

• Production capacity of 18,000 tons

per year

• Focuses on Squid and raw ready-to-

eat product (Sasimi)

• It can fetch fresh materials as it

situated close to the country’s important source of marine raw materials and the center of shrimp farms in southern part of Thailand

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Frozen Trademarks

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Tuna Business

• Operated by Asian Alliance International Co., Ltd., located in

Samutsakorn province

• Annual production capacity of

45,000 tons

• Traditional tuna product in

cans and pouches, and Value added product (ready-to-eat) such as Tuna with rice meal

• Quite new facilities compare to
• thers which ready to expand

Corporate Access - 24th January 2017

Pet Food Business

• Also operated by Asian Alliance International Co., Ltd. with annual production

capacity of 15,000 tons.

• Serve as a “co-developer” who understand

customers and provide ideas for new products in variety of packaging.

• With ERP system implementation, the main

focus is to streamline operations by growing with the larger customer and reduce the number of small clients. The target segments are premium brand owners and private labels showing continued growth.

• Fishmeal processing using by-products derived from processed tuna and wet

pet food manufacturing process.

Corporate Access - 24th January 2017

Aquaculture Feed Business

• Asian Feed Co., Ltd. located in

Petchaburi province

• Manufactures

and distributes aquaculture feed under its own trademarks

• Production capacity of 60,000 tons of sinking pellet and 25,000 tons
• f floating pellet per year.
• Advanced laboratory and academic expertise to provide water quality

analysis inspection, aquatic animal quality evaluation, food quality development, technique advisory for rearing and solution for diseases in aquatic animals.

Corporate Access - 24th January 2017

Aquaculture Feed Business

• Develop and implement research

plan using Asian Group’s farm in Suratthani and Chantaburi for both product quality and new farm model test

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Aquaculture Feed Trademarks

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Distribution Business

• Asian Food Co., Ltd. engages

in imported frozen food products and delivered to Thai wholesalers, modern retail and restaurant chains

• Our cold storage in Bangkok

and Samutsakorn are also the hub for our food distribution business

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Asian Link

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ASIAN PERFORMANCE

Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries

Corporate Access - 24th January 2017

Highlight

• Sales & Gross Profit are picking up in 2015 since the EMS outbreak effect in 2012.
• The pet food business turned to profitability in 2015 due to a significant increase in

sales volume, after 3 years of investment in market and product development.

• The feed business turned around by optimizing formulas and good control of

production quality & cost.

• The frozen food business continued its stable and good performance.

Corporate Access - 24th January 2017

Financial Highlight

• Structured its business in 5

business units - frozen food, pet food, tuna canning, aqua feed and distribution.

• Frozen sales growth particularly

in shrimp products.

• Strong growth in Pet Food

business

Corporate Access - 24th January 2017

Financial Highlight

• Asian’s policy is to finance around 50% of its requirements by long term funding to

stabilized its financial source.

• In July 2015 a 750 million BHT 2 year bond was successfully issued. First steps to

balance its short term and long term financing.

• In July 2016, a new 5-year loan of 750 million Baht was concluded. Also in July a

562.5 million 2-year bond was redeemed.

Corporate Access - 24th January 2017

3Q Ytd Performance

• 3Q Ytd sales revenues were 6,303

million Baht (last year 5,620 million Baht, a 12.2% increase)

• 3Q Ytd GP was 8.0%, compared

to 9.2% last year, a decrease was due to exchange rates and a result

• f increased raw material prices.
• Liquidity were improved and all

ratios were well within the agreed covenants.

Corporate Access - 24th January 2017

Frozen 3rdQ Performance

• The Frozen Food business amounted to 1,136 million Baht, or 49% of total revenues in

Q3 and grew 18% compared to 3Q15.

• Despite the volume increase, profitability of commodity shrimp business was under

pressure as a result of mismatch shrimp price with sales contract.

• The value added shrimp and squid business continued to deliver good results although

availability of raw materials was a concern and will remain so during Q4.

Corporate Access - 24th January 2017

Tuna 3rdQ Performance

• Tuna Business sales revenues was 282 million Baht, a decline of 34% compared to the

same quarter last year.

• Capacity was reduce as Tuna price declined in 2Q16 and customers were reluctant to

place orders, unless at very low prices, expecting further price decreases in Q3.

• With tuna prices having leveled out at around 1400 USD/MT during the quarter, pricing

has recovered from September onwards and volume and margins are expected to improve in Q4.

Corporate Access - 24th January 2017

Pet Food 3rdQ Performance

• The Pet Food business was 439 million Baht (including fish meal sales) and 19% of

total sales, which was in line with last year, but with lower fish meal sales.

• Streamline operations by growing with the larger customer base and reduce the number
• f small clients.
• In Q4 volumes are expected to further grow.

Corporate Access - 24th January 2017

Aquaculture Feed 3rdQ Performance

• Aquaculture Feed sales amounted 354 million Baht and 15% of total sales, a growth of

3% compared to the same quarter last year.

• Shrimp Feed sale grew 19% while Fish Feed sales, mostly in the lower value segment,

was lower.

• Margins remained good, although profitability was affected by the increase of

allowances for debtors, mainly in shrimp feed.

Corporate Access - 24th January 2017

Distribution 3rdQ Performance

• Focus on selective products which matched to target margin.
• Seeking for opportunity on acquisition both domestic area and aboard

to strengthen group’s distribution channel.

Corporate Access - 24th January 2017

ASIAN AMBITION 2020

Asian Seafoods Coldstorage Public Company Limited & its Subsidiaries

Corporate Access - 24th January 2017

Sales (Billion Baht) 2015 2016 (Target) Key Strategy/Success 2020 Target Frozen Business 3.6 4.7 Shrimp and VAP 6 Tuna Business 1.2 1.7 VAP 1.5 Pet Food Business 1.6 1.3 Co-Developer, Customer Relation 4 Feed Business 1.1 1.2 Sustainability, Fishmeal Substitution, Dry Feed 2 Dirtribution 0.4 0.3 Acquistion 1 Total Asian Group 7.9 9.2 14.5 Consolidate GP 8% 8.5% 10%

Ambition 2020

Corporate Access - 24th January 2017