FY2018 Analyst Meeting · The information contained in our presentation is intended solely for your...

FY2018 Analyst MeetingThai Union Group PCL.

21 February, 2019

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 assumptions are correct. Actual results may differ materially from those projected.

FY2018 Key Highlights

Recent Developments

FY2018 Financial Results

Business Outlook

Sales improved YoY

4Q18 sales improved YoY driven by:• Stable THB FX environment• Sales growth driven by Frozen and PetCare businesses sales growth• Ambient business saw small sales decline from EUR depreciation

Stable raw material prices

Gross profit improved 11.4% YoY, driven by: • GPM improvement to

14.9% from 13.8% in 4Q17

• Stable raw material prices environment

• Frozen and PetCare businesses were main drivers for recovery

Strict cost control

Operating profit up 55.2% YoY, • Stringent cost control

prompted 0.4% SG&A expense increase YoY, amid record quarterly sales (+3.7% YoY)

• SG&A ratio improved to 10.7% (from 11.0% in 4Q17)

Hindered by business restructuring expensesNormalized net profitdown YoY:• Solid operation

improvement hindered by weak non-operating item contributions

• Reported net profit of THB 1,067mn, including ESCo closure expenses and TMAC investment impairment

Sales Operating Profit

Gross Profit Net Profit

36,012

(THB mn)

5,356 1,223*1,499

YoY Chg. +3.7% +11.4% +55.2% -13.4%

QoQ Chg +5.4% -0.9% -19.7% -29.3%

% of sales 14.9% 4.2% 3.4%

*Remark: 4Q18 normalized net profit is adjusted for Edinburgh Salmon Company (ESCo) business closure-related expenses of THB 69mn (2H18) and TMAC, distributor of shrimp feed, investment impairment of THB 87mn 1Q17-4Q18 figures were restated mainly due to COGS reclassification, and reclassification of ESCo’s financial to discontinued operation

5,989

11,579

4,921

19,310

134,937

5,191

11,016

4,669

18,892

133,285

Net profit EBITDA Operating profit Gross profit Total sales

Financial Summary1

(THB million)2017 2018

2018 Net Profit*down 13.4% YoY to

THB 5,191 million

Declining debt, while equity reduced on dividend payment

2017 ND/E

1.38x4Q18 ND/E

1.35x(1.29x)**

-1.2%

-2.2%

-5.1%

-4.9%

-13.4%

Share price movement

20172

(Jan- Dec 17)

-5.7%

20182

(Jan-Dec 18)

-21.7%

Source: 1TU; 2SET (Jan 4’17: THB21.1/share and Dec 29’17: THB19.9/share, Jan 3’18: THB20.7/share and Dec 28’18: THB16.2/share)Remark: *Excluding one-time net accrual for US legal-related settlement of THB 1,359mn (2Q18), ESCo business closure-related expenses of THB 489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18) **Net debt to equity of 1.29X, excluding the net impact of the Chicken of the Sea’s legal settlements, ESCo business closure expenses related and TMAC investment impairment

% Growth YoY

Sales 1.1 -0.8 0.0 -0.6 3.0 -5.3 -1.7 -1.9 3.7

Gross profit -4.2 -8.8 -8.9 0.4 6.1 -26.0 -5.2 8.5 11.4

Net profit 18.9 16.4 -6.9 8.0 56.9 -39.3 -3.7 0.4 -13.4

33,71530,963

34,404 34,852 34,739 29,337

33,803 34,174 36,012

13.4%14.7% 14.5% 14.2% 13.8%

11.5%

14.0%

15.7%14.9%

2.7%

4.6% 4.1%4.9%

4.1%3.0%

4.0%5.1%

3.40%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

10,000

20,000

30,000

40,000

50,000

60,000

4Q16 1Q17* 2Q17 3Q17 4Q17* 1Q18 2Q18 3Q18 4Q18

Total sales (THB mn) GPM NPM

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18) 1Q17-4Q18 figures were restated mainly due to COGS reclassification, and reclassification of ESCo’s financial to discontinued operation


Recent Developments


Business Outlook

What’s Next?On 30 January, 2019, Thailand’s Ministry of Labor ratified C188, which protects fishery labor’s rights for safe working conditions and quality of living on vessels, effective one year after ratification on 30 January, 2020. Thailand is the first country in Asia who

has ratified this convention.

New fisheries legal

framework, strong

penalties

Fish stock management

measures

Enhance traceability

24/7 Monitor of commercia

l vessels with VMS

Ratification of ILO

conventions (P29,

etc.)

Capacity building

Assistance to victims, complaint

mechanisms

Plants and vessels

inspections followed

by prosecuti

ons

Registration for

foreign workers

8 January, 2019 – European Union lifts Thailand’s yellow card on IUU (Illegal, Unreported, Unregulated) fishing industry

• Thai Union is pleased European Union (EU) decided to lift yellow card on Thailand

• The fight against IUU fishing has been ongoing in Thailand

• Thai Union is proud to have worked with Royal Thai Government to promote positive changes in Thai fishing industry.

• Thai Union anticipates that this will help in promoting seafood trade to EU from Thailand.

In 2015, Thailand was pre-identified

as non-cooperative

country and was issued “Yellow

card” warning by EU

Thailand’s Response

24 December, 2018 – Thai Union, 39 other leading Thai firms launched the Global Compact Network Thailand (GCNT) with United Nations

• Network of collaboration between private companies working towards UN’s sustainable development goals (SDG’s) in Thailand.

• This reflects Thailand's private sector efforts to find sustainable business development strategies.

18 January, 2019 – SeaChange® IGNITE announces rating upgrade of Sri Lankan blue swimming crab to “Good Alternative" recommendation, first product offering since May 2018 launch

9 January, 2019 – Thai Union provides 1,000 humanitarian relief packs containing bottled water, SEALECT Mackerel, SEALECT Tuna, rice and FISHO snacks to provide assistance to those impacted by Tropical Storm Pabuk in Thailand’s Nakhon Si Thammarat Province.

Aimed to drive growth and promote innovation in food industry through food tech startups, with a collective funding of USD 600mn.

5 February, 2019 – Thai Union partners with National Innovation Agency (NIA) and Mahidol University’s Science Faculty to launch food tech startup initiative, SPACE-F, as Thai Union focuses on its strength in innovation as recipe for success in global food business.

Launched in 2015, the award is the 1st global recognition for businesses which sets a gold standard to eradicate forced labor from supply chains.

15 November, 2018 – Thai Union was Highly Commended for promoting ethical recruitment and migrant rights by judges for Stop Slavery Award from Thomson Reuters Foundation.

11 February, 2019 – Thai Union and WWF release first sourcing transparency report: Wild caught fish and shellfish.

As part of Thai Union’s commitment to transparency in its operations and sustainability journey, Thai Union shares its supply chain data with WWF, who has assessed and advised on the environmental sustainability of the company’s seafood throughout a four-year partnership.

21 December, 2018 – Red Lobster launched its first China store in Shanghai, as part of the American casual dining chain’s plan to tap Chinese market, growing demand for quality seafood

• Located in IFC Mall, downtown Shanghai, China

• JV with FYM Restaurants, operator of China’s Morton’s Steakhouse restaurants

• Upscale brand image for Chinese premium seafood appetite Signature dishes: Live Maine Lobster,

Ultimate Feast seafood platter Localized menus: Chilled Seafood Tower,

Cheddar Bay Biscuits in less-salted recipe

Weekday lunch set specials at RMB78 Uses 100% butter, unlike butter &

margarine combination in US branches

Pricing:Average RMB150 – RMB260/pax.

• Discussed Thai Union’s strategic and investment plans in Seychelles, including ongoing construction of cold storage facilities, dock extension next to IOT, new innovative packaging in UK.

• Thai Union’s subsidiary, Indian Ocean Tuna Limited (IOT) continues tocontribute to Seychelles’ GDP and overall economic growth.

Training included guidance about first aid, basic medical training techniques (CPR, etc.), fire safety, good health practices, and how to use bank accounts in Thailand.

28 January, 2019 – Thai Union, International Transport Workers’ Federation recently co-hosted a health and safety training in Thailand for more than 70 fishers in Chumphon, Thailand.

22 January, 2019 – Thai Union was honored to visit the delegation of Seychelles, President Danny Faure, with Dr. Sven Massen, Thai Union’s Director of Europe operations

0.30 0.28 0.28 0.32 0.48 0.40 0.39 0.53 0.15 0.30 0.32 0.32 0.32 0.25

0.22

0.25 0.31 0.31 0.34

0.15

50% 50%53%

51% 50.7% 50.0%

29.4%

51.3%

59.9%

50.5%

56.7% 57.2%52.3%

58.8%*

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 2017 2018

THB/Share

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. • *Chicken of the Sea’s net legal accruals impact not considered for the payout calculation for 1H18 dividend payment

Final dividend for the period: 1 July 2018 to 31 December 2018

DPS THB 0.15

XD Date 5 March 2019

Book closing date 7 March 2019

Payment date 23 April 2019


Recent Developments


• Consolidated Results

• Results by Business Unit

Business Outlook

Record quarterly top line

Strong GPM

Positive OP recovery

Less favorable non-operating items than last year

ESCo business closure expenses

• GPM recovering at 14.9%, compared to 13.8% achieved LY and 15.8% in Q318• Ambient OEM, PetCare and Frozen segments are the main drivers for such

recovery whereas Branded is still under pressure

• SG&A flat vs. last year in absolute amount, decreasing in relative amount from 11.1% to 10.7% NSV thanks to strong top line

• OP at 1,499m (+55% compared to last year)

• FX gains decreasing by 312m• Other income decreasing by 216m (positive one-offs last year)• Tax expenses increasing by 194m from higher profitability

• ESCo (Edinburgh Salmon Company) has ceased operations as of December 31, 2018

• An additional closure-related expenses of THB 69mn was recorded in 4Q18

• Sales at THB 36bn, an all-time record for Thai Union Group• Reported growth at 3.7%, adjusted growth at constant FX rates at 4.7%

Remark:1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

Following Thai Union’s subsidiary,

Européenne de la Mer’s, announcement of

its intention to divest the loss-making

chilled salmon business in Scotland, The

Edinburgh Salmon Company Ltd (“ESCo”),

no feasible alternative solution to closure

had been found during collective

consultation period.

As a result, ESCo ended production

operations as of 31 December, 2018.

Thai Union recorded expenses related to

the business closure of ESCo amounted to

THB 420mn in 3Q18 and THB 69mn in

4Q18.

1,257

1,503 1,433

1,508 1,633

1,763

2,010 2,033

1,577 1,667

1,467 1,408

1,280 1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400Tuna raw material price

(USD/ton)

Quarterly average Monthly average

%ChangeQoQ 20.1% 19.6% -4.7% 5.2% 8.3% 8.0% 14.0% 1.2% -22.5% 5.7% -12% -4%

%ChangeYoY

13.9% 36.5% 0.2% 44.1% 30.0% 17.3% 40.2% 34.8% -3.5% -5.4% -27% -31%

1Q16

1Q17

2Q17

3Q17 4Q17

1Q18 2Q183Q184Q16

3Q162Q164Q18

34,733

29,329

33,775 34,16936,012

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

4Q17 1Q18 2Q18 3Q18 4Q18

SalesTHB mn

+5.4% QoQ

+3.7% YoY

USD mn 1,0981,054 930 1,059 1,036

121,402 125,183 134,375 134,937 133,285

2014 2015 2016 2017 2018

7.6% 3.1% 7.3% 0.4%YoY Growth

• 4Q18 sale improved 3.7% YoY driven by:

Frozen and Chilled Seafood and PetCare and Value-added businesses saw strong sales volume growth YoY

Ambient business sales saw marginal decline mainly from EUR depreciation against THB

4Q18 average THB still appreciated against USD and EUR by 0.4% and 3.5%, respectively, YoY.

• 2018 sales was at THB 133.3bn, down 1.2% YoY. Excluding FX impact, 2018 sales would have improved 0.5% YoY.

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18) 1Q17-4Q18 figures were restated mainly due to reclassification of ESCo’s financial to discontinued operation

-1.2%

4Q17 4Q18

Revenue growth componentTHB mn

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 scrapsExcluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18)

+3.7% YoY

+4.7% YoYBefore currency

impacts

36,012

34,733 96

Tuna Shrimp &

related business1

Sardine&

Mackerel

Salmon-Ambient

Pet Care Value added

& other products2

USDeffect

EUReffect

LobsterOther seafood -Ambient

Salmon-Frozen

Other seafood -

Frozen

-142 64 40

543446 -67 -129

660175 -49 -359

+1% -5% +8% +11% +6%

+38%

-3% -6% +24%

+9% 0%-3%

Brand36%

**FS -Brand

6%**FS -Private Label

6%

Private Label52%

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

44% 42% 39% 39% 38%

29% 29% 33% 31% 31%

7% 8% 8% 9% 11%

7% 6% 6% 6% 6%

13% 14% 13% 15% 15%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018

Sales Breakdown by Geographic

Others*

Japan

Domestic

Europe

USA

Brand35%

**FS -Brand

6%**FS -Private Label

5%

Private Label54%

Sales Breakdown by Business

THB 133.2bnTHB 134.9bn

2017 2018

• 2018 Sales contribution in key markets shifted in favor of domestic Thai market. Partly due to company focus on selling

product in domestic market to offset weaker export sales, resulted from intense competition and unfavorable currency shift

USD sales contribution shrunk YoY mainly due to USD depreciating against THB in 2018.

• 2018 branded sales mix at 40.7% (compared to 43.2% during 2017), private label sales contributing remaining 59.3% of 2018 sales 2018 total branded sales decreased

6.9% YoY, mainly due to USD and EUR depreciation against THB, so weaker sales contribution from branded sales

Private label sales up by 3.1% YoY due to increased sales volume in frozen seafood and PetCare businesses

***1Q17-4Q18 figures were restated mainly due to reclassification of ESCo’s financial to discontinued operation TMAC investment impairment

4,806

3,388

4,7415,406 5,356

13.8%

11.6%

14.0%

15.8%14.9%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

4Q17 1Q18 2Q18 3Q18 4Q18

Gross ProfitTHB mn

19,020 19,501 19,927 19,310 18,892

-

5,000

10,000

15,000

20,000

25,000

2014 2015 2016 2017 2018

+11.4% YoY

-0.9% QoQ

GPM

• 4Q18 Gross profit was up 11.4% YoY, Despite marginal THB

appreciation, increased sales and regular price discussion prompted strong margin recovery to 14.9%, up from 13.8% during 4Q17

Shrimp business benefited from price recovery and strategy to pursue more value-added products

Lobster business continue to improve YoY and QoQ

PetCare volume improvement resulted in better economies of scale and gross margin

• 2018 gross profit down 2.2% YoY, due to volatile material prices and FX volatility mainly during 1Q18.

GPM 15.7% 15.6% 14.8% 14.3% 14.2%Remark: 1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

-2.2% YoY

966

93

1,212

1,866

1,499

2.8%

0.3%

3.6%

5.5%4.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

4Q17 1Q18 2Q18 3Q18 4Q18

Operating ProfitTHB mn

+55.2% YoY

-19.7% QoQ

6,990 6,817 6,805

4,921 4,669

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2014 2015 2016 2017 2018

OP Margin

OPM 5.8% 5.4% 5.1% 3.6% 3.5%

SG&A% 11.1% 11.2% 10.4% 10.4% 10.7%

• 4Q18 Operating profit was up 55% YoY: Strong gross margin recovery YoY Strict cost control initiatives

• SG&A-to-sales ratio was at 10.7% (from 11.1% in 4Q17), due to: THB sales was up 3.7% YoY, On absolute basis, SG&A expenses

increased by only 0.4% YoY. • 2018 SG&A ratio was at 10.7%, stable

from 2017 level despite weak sales as TU continued to focus on cost efficiency. 2018 SG&A expenses was down 1.2% YoY.

Remark: 1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.Excludes one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

-5.1% YoY


• 4Q18 Normalized EBITDA up 0.6% YoY, While business profitability

improved from a more raw material price environment and stringent cost control,

The weaker non-operating items including other income, FX gains and equity income prompt a flat EBITDA growth YoY.

• 2018 EBITDA was at THB 11,016mn, down 4.9% YoY due to weak 1Q18 performance resulting in 2018 EBIT declined 5.1% YoY and lower non-operating items

EBITDAMargin

9.1% 9.2% 8.4% 8.6% 8.3%

2,6862,226

2,8343,254

2,703

7.7% 7.6% 8.4%9.5%

7.5%3.0%

8.0%

13.0%

18.0%

23.0%

28.0%

4Q17 1Q18 2Q18 3Q18 4Q18

EBITDATHB mn

+0.6% YoY

-16.9% QoQ

10,999 11,526 11,269 11,579 11,016

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2014 2015 2016 2017 2018

-4.9% YoY

EBITDA Margin

1,413

869

1,368

1,731

1,223

4.1%

3.0%

4.1%

5.1%

3.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

4Q17 1Q18 2Q18 3Q18 4Q18

Net ProfitTHB mn

-13.4% YoY

-29.3% QoQ

5,092 5,302 5,254 5,989

5,191

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2014 2015 2016 2017 2018

NPM

NPM 4.1% 3.0% 4.1% 5.1% 3.4%

• Despite strong recovery in operating performance, TU’s 4Q18 reported normalized net profit of THB 1,223mn, down 13.4% YoY, driven by: FX gains of THB 41mn (from THB

353mn in 4Q17), Other income decreased THB

216mn vs 4Q17 due to lack of one-off item

Lower equity income contribution from Indian Avanti Feeds Limited

Tax credit reduced THB 194mn due to lack of French business taxcredit recorded in 4Q17.

• 2018 Normalized net profit was down 13.4% YoY, mainly from a weak 1Q18.

Remark: Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

-13.4% YoY

Adjusted NP Margin

1,309

690

1,018

1,731

1,223

3.8%2.4%

3.0%

5.1%

3.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

4Q17 1Q18 2Q18 3Q18 4Q18

Adjusted Net ProfitTHB mn

-6.6% YoY

-29.3% QoQ

• Besides 4Q18 adjustments for Edinburgh Salmon Company (ESCo) business closure-related expenses of THB69mn (2H18) and TMAC investment impairment of THB 87mn, TU recorded no other adjustment item during 4Q18.


1.10 1.11 1.101.26

1.09

2014 2015 2016 2017 2018

0.30

0.18

0.29

0.36

0.26

4Q17 1Q18 2Q18 3Q18 4Q18

Earning per Share (EPS)*THB

-13.4% YoY

-29.3% QoQ

-13.4% YoY

• 4Q18 normalized EPS was at THB 0.26, down 13.4% YoY and 29.3% QoQ, along with the net profit trajectory.

• 2018 normalized EPS was at THB 1.09, down 13.4% YoY

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

1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.Excludes one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

THB mn

• 4Q18 remained a seasonally weak quarter for Red Lobster with total contribution weak at negative THB 193mn, compared to negative THB 162mn in 4Q17 Interest income remained stable

and well-above funding cost Lower of tax credit was the key

culprit for a weak 4Q18 contribution.

Share of profit

Other income

Finance costs

Income tax

Net income

EPS (THB/share)

Red Lobster has contributed THB 193mn to net loss in 4Q18

4Q18 3Q18 2Q18 1Q18 4Q17

-201 64 -128 137 -317

258 256 259 235 248

-138 -137 -129 -128 -131

-113 104 93 22 38

-193 287 96 266 -162

-0.04 0.06 0.02 0.06 -0.03

5,544

2,938

8,401

2016 2017 2018

Annual Free Cash FlowTHB mn

-142

1,369

3,794

2,186

1,052

4Q17 1Q18 2Q18 3Q18 4Q18

Quarterly Free Cash FlowTHB mn

Remark: Change definition of Free Cash Flow; 1Cash Conversion Rate = FCF / EBIT; FCF= EBITDA-Changes in net working capital – Change in other assets& Liabilities + non-cash expenses - CAPEX

Cash Conversion Rate1 -0.07 0.90 1.18 0.91 0.77

Cash Conversion Rate1 0.67 0.33 0.95

• 4Q18 free cash flow of THB 1.1bn: Improved profitability, A more stabilized raw material

prices, and An efficient inventory control. 2018

Inventory value dropped THB 4.8bn• 2018 free cash flow of THB 8.4bn,

almost tripling 2017 Free Cash Flow

-174

+1,376

+4,898 +433

+3,699

Free Cash Flow** THB 8,401 mn

Unit: THB mn

ND/E 1.38xKd = 3.21%

ND/E 1.35xKd = 3.07%

62,913

+975

-3,485

-11,016

66,419

Net Debt as of

31 Dec 2017

Net Debt as of

31 Dec 2018

-211

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

**New definition of free cash flow, excluding income tax paid***Net debt to equity of 1.29X, excluding the net impact of the Chicken of the Sea’s legal settlements, ESCo business closure expenses related

and TMAC investment impairment

Other Investing & Financing activities*

CAPEXOther non-cash

expenses

Tax payments

Net interest paid

Dividends paid

Change in other assets

and liabilities

EBITDA Change in net working capital

Income tax paid and other investing & financing activities

Normalized ND/E 1.29x***

2017 2018

98.1% 98.3%

0.9%

1.0% 1.6%

2017 2018

Interest-bearing debts of THB 64,499mn

Long-term loan by maturityTHB 41,583mn

By Maturity

2022 onwards

2021

2020

Long-term debt

Current portionof long-term debt & finance lease

Short-term loan 22%

76%

2%

EUR

By Currency

USD

THB

THB 67.2bn THB 64.5bn

21%

65%

14%

Remark: 1ROE = Annualized quarterly net profit/ Average total shareholders’ equity2ROCE = 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 ventures3Net WC day = INV day + A/R day – A/P day 4ND/E ratio = Net interest-bearing debt/ Total equity, Net interest-bearing debt = Total interest-bearing debt - Cash & Cash equivalents including ST investment

*Net debt to equity of 1.29X, excluding the net impact of the Chicken of the Sea’s legal settlements, ESCo business closure expenses related and TMAC investment impairment

Net WC3

7.7%9.9%

8.0%5.6%

7.2%

4Q183Q182Q181Q184Q17

ROCE2

ROE1 Debt to EBITDA

11.4%

16.2%

12.5%

7.8%

12.7%

4Q183Q182Q181Q184Q17

INV Days

5.974.98

5.827.38

6.26

4Q183Q182Q181Q184Q17

43,744 41,665 41,652 41,229 39,085

115131

111 109 100

4Q17 1Q18 2Q18 3Q18 4Q18

WC (THB mn) WC Day

43,184 40,691 39,708 39,996 38,371

128

145

128125

115

4Q17 1Q18 2Q18 3Q18 4Q18

INV (THB mn) INV Day

1.35x

1.40x1.41x

1.35x1.38x

4Q183Q182Q181Q184Q17

ND/E4

1.29x*


Recent Developments


• Consolidated Results

• Results by Business Unit

Business Outlook

Source: Thai Union Group and Bloomberg

• In January 2019, raw material prices closed at:Tuna - USD 1,280/ton Shrimp - THB 178/kg Salmon - NOK 64/kg

• In 4Q18, average raw material prices closed at:TunaUSD 1,408/ton (-31.0% YoY, -4.0% QoQ) ShrimpTHB 145/kg (-17.5% YoY, -8.4% QoQ)SalmonNOK 58/kg (+8.4% YoY, +0.2% QoQ)

1,633 1,763

2,010 2,033

1,577 1,667

1,467 1,408

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19

Tuna raw material price (USD/ton)


1Q172Q17

3Q17 4Q17

1Q18 2Q18

3Q18 4Q18

212169 176 175 183

141 158 145

35

85

135

185

235


Shrimp raw material price (60pcs/kg) (THB/kg)


1Q17

2Q17 3Q17 4Q17 1Q182Q18 3Q18 4Q18

66 6759

5360

69

58 58

40

50

60

70

80

90


Salmon raw material price (NOK/kg)


1Q17 2Q173Q17

4Q171Q18

2Q18

3Q18 4Q18

51.07 50.65

45.8043.97 43.52 43.87 43.69 43.74 43.93 43.44 42.99 42.19

39.0

41.0

43.0

45.0

47.0

49.0

51.0

53.0

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-1

8

Jan

-19


1Q16 2Q16

3Q164Q16 1Q18 2Q18 3Q181Q17 2Q17 3Q17 4Q17

4Q18

35.90 35.51 35.34 35.26 35.1234.30

33.39 32.9531.54 31.92

32.97 32.81

28.0

30.0

32.0

34.0

36.0

38.0

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-1

8

Jan

-19


1Q16 2Q16 3Q16 4Q16

1Q18 2Q183Q18

1Q172Q17 3Q17 4Q17 4Q18

• In January 2019, average FX rates closed at:USD/THB – THB 31.82EUR/THB – THB 36.33GBP/THB – THB 41.00

• In 4Q18, average FX rates closed at:USD/THBTHB 32.81 (-0.4% YoY, -0.5% QoQ)EUR/THBTHB 37.42 (-3.5% YoY, -2.4% QoQ)GBP/THBTHB 42.19 (-3.5% YoY, -1.9% QoQ)

USD/THB EUR/THB

Continued depreciation from 2017 sees slight recovery in 2Q18 and 3Q18

Brexit vote

GPB/THB

39.3239.83

38.8738.19

37.41 37.72

39.2038.78 38.78

38.05 38.3537.42

36.0

37.0

38.0

39.0

40.0

41.0

Jan

-16

Mar

-16

May

-16

Jul-

16

Sep

-16

No

v-1

6

Jan

-17

Mar

-17

May

-17

Jul-

17

Sep

-17

No

v-1

7

Jan

-18

Mar

-18

May

-18

Jul-

18

Sep

-18

No

v-1

8

Jan

-19


1Q162Q16

3Q164Q16 1Q18

2Q183Q18

1Q17 2Q17

3Q174Q17

4Q18

Source: Thai Union Group

Some weakening since 1Q18, after remaining relatively stable since Brexit vote.

Risk factor


Recent Developments


Business Outlook

Tuna Tuna slices

Sardine & mackerel Ambient and pouch salmon

Sales: THB 52,793 mn

Frozen, chilled seafood and related

40%47%

55%45%

Sales Split

35%65%

8%

92%

14%

Brand

Private label

Brand

Private label

Brand

Private label

Remark: 1.Shrimp & related business includes frozen shrimp, lobster, shrimp feed and value-added shrimp2.Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish3.Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack4.Other products include scrap, fishery and othersExcluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

Total 2018 sales: THB 133,285 mn


Ambient seafood


PetCare, value-added and others

Shrimp and related 1 Lobster

Frozen, chilled & smoked salmon Other seafood2

PetCare Marine ingredients

Value-added 3 Other products4

56% 49% 54% 53% 58%

44%51%

46% 47% 42%

90,065 83,314

93,855 93,236 88,841

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00 51,000.00 52,000.00 53,000.00 54,000.00 55,000.00 56,000.00 57,000.00 58,000.00 59,000.00 60,000.00 61,000.00 62,000.00 63,000.00 64,000.00 65,000.00 66,000.00 67,000.00 68,000.00 69,000.00 70,000.00 71,000.00 72,000.00 73,000.00 74,000.00 75,000.00 76,000.00 77,000.00 78,000.00 79,000.00 80,000.00 81,000.00 82,000.00 83,000.00 84,000.00 85,000.00 86,000.00 87,000.00 88,000.00 89,000.00 90,000.00 91,000.00 92,000.00 93,000.00 94,000.00 95,000.00 96,000.00 97,000.00 98,000.00 99,000.00 100,000.00 101,000.00 102,000.00 103,000.00 104,000.00 105,000.00 106,000.00 107,000.00 108,000.00 109,000.00 110,000.00 111,000.00 112,000.00 113,000.00 114,000.00 115,000.00 116,000.00 117,000.00 118,000.00 119,000.00 120,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

Sales (THB million) Quantity (Tons)

Gross Profit Margin (Percent)

-1.5% YoY

-10.8% QoQ

-1.4% YoY

-4.7% QoQ

Brand

Private label

Brand

Private label

Total

Brand

Private label

48% 42% 44% 44% 50%

52% 58%56% 56% 50%

15,224 14,100 16,363 16,806

14,994

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00

10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

17% 15%

22% 21%

17%

17%

13% 12%

16%16%

17%

14%

18% 19%17%

4Q17 1Q18 2Q18 3Q18 4Q18

• 4Q18 ambient sales declined 1.5% YoY, due to weak EUR and reduction of lower margin bulk sales

• Gross profit margin up 21bps YoY: A stable tuna price environment Lower low-margin co-pack sales, while

affected sales, improved US ambient margin

As a result, ambient gross profit was at THB 2.5bn, similar to 4Q18 level

• 2018 ambient sales of THB 62.3bn, similar to 2017 level despite currency impact



9%

8%8%

8% 9%10%

6%

9%

11%10%

10%

7%8%

10% 10%

4Q17 1Q18 2Q18 3Q18 4Q18

• 4Q18 frozen and chilled seafood sales up 4.6% YoY, driven mainly by volume growth (8.0% YoY) that outpaced shrimp price decline.

• Gross profit margin was at 10.0%, up 39bps YoY, due to focus on value added products

• Lobster business turnaround with business profitability improve for 3 consecutive quarters from strong volume growth

• 2018 frozen and chilled sales declined 3.3% YoY from falling shrimp price, while volume continued to grow at 2.2% YoY

Sales (THB million)

+4.6% YoY

+20.1% QoQ

Brand

Private label

65% 66% 65% 64% 65%

35%34%

35% 36%35%

14,961

11,149 12,962 13,031

15,651

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00

10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

31% 30% 30% 29% 33%

69%70% 70% 71% 67%

62,565 53,201

62,253 63,443 67,552

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00 51,000.00 52,000.00 53,000.00 54,000.00 55,000.00 56,000.00 57,000.00 58,000.00 59,000.00 60,000.00 61,000.00 62,000.00 63,000.00 64,000.00 65,000.00 66,000.00 67,000.00 68,000.00 69,000.00 70,000.00 71,000.00 72,000.00 73,000.00 74,000.00 75,000.00 76,000.00 77,000.00 78,000.00 79,000.00 80,000.00 81,000.00 82,000.00 83,000.00 84,000.00 85,000.00 86,000.00 87,000.00 88,000.00 89,000.00 90,000.00 91,000.00 92,000.00 93,000.00 94,000.00 95,000.00 96,000.00 97,000.00 98,000.00 99,000.00 100,000.00 101,000.00 102,000.00 103,000.00 104,000.00 105,000.00 106,000.00 107,000.00 108,000.00 109,000.00 110,000.00 111,000.00 112,000.00 113,000.00 114,000.00 115,000.00 116,000.00 117,000.00 118,000.00 119,000.00 120,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

Quantity (Tons)

+8.0% YoY

+6.5% QoQ

Brand

Private label


Total

Brand

Private label

• PetCare and valued added sales increased 18.0% YoY Pet food business delivered a solid sales

growth, driven by increased sales volume after soft demand over past few quarters.

Value-added products and others segment reported sales growth mainly attributable from Thai market.

• Gross margin has improved due to strong sales growth and better capacity utilization during the quarter.

+14.2% YoY

89% 90% 91% 89% 89%

11% 10% 9% 11%11%

39,862 37,638 37,843 39,596 45,539

- 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00 15,000.00 16,000.00 17,000.00 18,000.00 19,000.00 20,000.00 21,000.00 22,000.00 23,000.00 24,000.00 25,000.00 26,000.00 27,000.00 28,000.00 29,000.00 30,000.00 31,000.00 32,000.00 33,000.00 34,000.00 35,000.00 36,000.00 37,000.00 38,000.00 39,000.00 40,000.00 41,000.00 42,000.00 43,000.00 44,000.00 45,000.00 46,000.00 47,000.00 48,000.00 49,000.00 50,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

92% 92% 91% 91%93%

8%8% 9% 9%

7%4,548 4,080 4,450 4,332

5,367

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

4Q17 1Q18 2Q18 3Q18 4Q18

18% 16% 17%21%

24%

4Q17 1Q18 2Q18 3Q18 4Q18

Brand

Private label

Sales (THB million)

+18.0% YoY

+23.9% QoQ

Brand

Private label

Quantity (Tons)

+15.0% QoQ

Total



(Asia, Australia, Middle East, Africa and South America)

United Statesand Canada

39% Europe

30%

Thailand

11%

20%Others

13,74311,821 12,931 12,801

15,193

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

4Q17 1Q18 2Q18 3Q18 4Q18

SalesTHB mn

+10.6% YoY

+18.7% QoQ

• 4Q18 North America sales improved by 10.6% in Thai Baht term. THB was stable YoY US Frozen businesses, both shrimp

and lobster, deliver solid sales growth US Canned tuna sales dropped on

lower sales of lower-margin products• Despite seasonal weakness, Red Lobster

operation recovered YoY• 2018 North America sales down 4.2%

YoY to THB 52.7bn, mainly from currency impact.

Remark: 1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.

Excludes one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

• 4Q18 European sales up 5.8% YoY • Despite falling tuna price, European

market saw strong sales volume growth, resulting in favorable revenue growth

• 2018 European sales down 1.5% YoY to THB 41.0bn

9,929 8,96210,640 10,894 10,503

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

4Q17 1Q18 2Q18 3Q18 4Q18

SalesTHB mn

+5.8% YoY

-3.6% QoQ

Remark: 1Q17-4Q18 figures were restated mainly due to reclassification of COGS, ESCo’s financial to discontinued operation TMAC investment impairment.Excluding one-time net accrual for US legal-related settlement of THB1,359mn (2Q18), ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

• 4Q18 Thailand sales up 26.9% YoY.• Diversifying sales in home market to

offset weaker export market from THB appreciation against key currencies

• Strong export sales from Ambient, Frozen and PetCare business

• 2018 Thailand sales up 14.6% YoY to THB 14.2bn

3,342 3,439 3,169 3,379 4,242

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

4Q17 1Q18 2Q18 3Q18 4Q18

SalesTHB mn

+26.9% YoY

+25.5% QoQ


7,725

5,1157,063 7,100

6,074

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

4Q17 1Q18 2Q18 3Q18 4Q18

SalesTHB mn

-21.4% YoY

-14.5% QoQ

• 2018 sales was at THB 25.3bn, down 2.0% YoY from weaker sales in Middle East and Japan

• Initiatives in China, including collaboration with Thammachart Seafood on food service should continue to explore new channel to Chinese market into 2019


Remark: 1Shrimp & related business includes frozen shrimp, shrimp feed and value-added shrimp2Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish3Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack4Other products include scrap, fishery and others

Gross profitTHB million

Margin%

SalesTHB million

Business segment

5,356 THB mn

Ambient seafood

• Tuna• Sardine and mackerel• Ambient and pouch salmon

14,994 16.8 2,511

Frozen, chilled seafood and related

• Shrimp and related 1

• Lobster• Frozen, chilled and smoked salmon• Other seafood2

15,651 10.0 1,570

PetCare, value-added and others

• PetCare• Value-added and others1

• Other products2

5,367 23.8 1,275

Total 36,012 14.9

Excluding ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

Sales:

5% YoY growth

Gross profit margin:

15%

SG&A to sales:

10%

Effective interest rate:

No material change from 2018

CAPEX:

Approx. THB 4.8bn

Dividend policy:

At least 50% dividend payout ratio

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

5

10

15

20

25

2013 2014 2015 2016 2017 2018 2019

TU

SET

Minimum 50% payout of our net profit with semi-annual payments

THB

Bloomberg/ Reuters TU TB/ TU.BK

Share price (18 February, 2019) THB 18.30

Historical price

52-week high THB 20.50

52-week low THB 20.00

No. of paid up shares 4,771.8mn

Par value THB 0.25

Market Capitalization THB 87.3bn

Chansiri Family19.6%

Thai NVDR8.0%

Mitsubishi Corporatio

n 7.3%

Social Security

Office 7.2%

Niruttinanon Family

6.9%

Others51.0%

Source: SET and TU

As of 28 December, 2018

Free float 67.4%

Foreign ownership/ Foreign limit 32.4%/ 45.00%

Stock Performance at a Glance Major Shareholders

Dividend Policy

DPS (THB per share)

Period 2H18 1H18 2H17 1H17 2H16 1H16

DPS 0.15 0.25 0.34 0.32 0.31 0.32

*The company changed the par value from THB 1 to THB 0.25 and registered with the Ministry of Commerce on 25 Dec 2014.

TBU

Remark: *Including share of income from investment in associates**3Q17 figures were restated mainly due to COGS reclassification

4Q18/ 4Q18/

4Q17 3Q18

Change Change

Sales 36,012 100% 34,733 100% 34,169 100% 3.7% 5.4%

Cost of sales (30,656) -85.1% (29,927) -86.2% (28,762) -84.2% 2.4% 6.6%

Gross profit 5,356 14.9% 4,806 13.8% 5,407 15.8% 11.4% -0.9%

SG&A expenses (3,857) -10.7% (3,840) -11.1% (3,540) -10.4% 0.4% 9.0%

FX gain (loss) 41 0.1% 353 1.0% 128 0.4% -88.4% -67.9%

Other income* 356 1.0% 644 1.9% 516 1.5% -44.7% -31.0%

EBIT 1,896 5.3% 1,963 5.7% 2,511 7.3% -3.4% -24.5%

Finance cost (524) -1.5% (533) -1.5% (501) -1.5% -1.7% 4.6%

EBT 1,372 3.8% 1,430 4.1% 2,010 5.9% -4.1% -31.7%

Tax 35 0.1% 229 0.7% (146) -0.4% -84.7% -123.9%

Profit (Loss) from discontinued operarion (60) -0.2% (110) -0.3% (66) 0.0% -45.5% -9.1%

Net income 1,347 3.7% 1,549 4.5% 1,864 5.5% -13.0% -27.7%

Net income (loss) attributable to:

Equity holders of the Company 1,223 3.4% 1,412 4.1% 1,731 5.1% -13.4% -29.4%

Non-controlling interests of the subsidiaries 124 0.3% 137 0.4% 132 0.4% -9.5% -6.4%

Earnings per share

Basic earnings per share 0.26 0.30 0.36 -13.4% -29.4%

Diluted earnings per share 0.26 0.30 0.36 -13.4% -29.4%

Exchange rate

THB/USD 32.81 32.95 32.97 -0.4% -0.5%

Consolidated

3Q18%

to sales(Unit: THB mn) 4Q18

%

to sales4Q17**

%

to sales

Remark: *Including share of income from investment in associates**2017 figures were restated mainly due to COGS reclassification

2018/

2017

Change

Sales 133,285 100% 134,937 100% -1.2%

Cost of sales (114,393) -85.8% (115,627) -85.7% -1.1%

Gross profit 18,892 14.2% 19,310 14.3% -2.2%

SG&A expenses (14,221) -10.7% (14,389) -10.7% -1.2%

FX gain (loss) 971 0.7% 1,256 0.9% -22.7%

Other income* 2,388 1.8% 2,638 2.0% -9.5%

EBIT 8,030 6.0% 8,815 6.5% -8.9%

Finance cost (2,026) -1.5% (2,137) -1.6% -5.2%

EBT 6,004 4.5% 6,678 4.9% -10.1%

Tax (189) -0.1% 065 0.0% -391.4%

Profit (Loss) from discontinued operarion (224) -0.2% (286) 0.0% 0.0%

Net income 5,591 4.2% 6,457 4.8% -13.4%

Net income (loss) attributable to:

Equity holders of the Company 5,192 3.9% 5,989 4.4% -13.3%

Non-controlling interests of the subsidiaries 471 0.4% 472 0.3% -0.1%

Earnings per share

Basic earnings per share 1.09 1.26 -13.3%

Diluted earnings per share 1.09 1.26 -13.3%

Exchange rate

THB/USD 32.34 33.88 -4.6%

(Unit: THB mn) 2018%

to sales2017**

%

to sales

Remark: *Including short-term investments

Cash and cash equivalents* 1,586 1.1% 815 0.6% 94.6%

Trade and other receivables - net 16,018 11.3% 16,344 11.2% -2.0%

Inventories - net 38,371 27.0% 43,184 29.6% -11.1%

Other current assets 3,046 2.1% 2,174 1.5% 40.1%

Total current assets 59,021 41.6% 62,581 42.8% -5.7%

Fixed assets 26,476 18.7% 25,261 17.3% 4.8%

Goodwill and other intangible assets 29,407 20.7% 30,851 21.1% -4.7%

Other non-current assets 27,012 19.0% 27,398 18.8% -1.4%

Total Assets 141,916 100% 146,092 100% -2.9%

Bank overdrafts and short-term loans 13,468 9.5% 15,365 10.5% -12.3%

Trade and other payables 19,726 13.9% 19,823 13.6% -0.5%

Current portion of long-term loans 147 0.1% 849 0.6% -82.7%

Current portion of debentures 9,149 6.4% 0 0.0% -

Current portion of finance lease liabilities 39 0.0% 47 0.0% -17.5%

Other current liabilities 999 0.7% 573 0.4% 74.2%

Total current liabilities 43,527 30.7% 36,657 25.1% 18.7%

Long-term loans from financial institutions 14,569 10.3% 14,712 10.1% -1.0%

Debentures 27,014 19.0% 36,169 24.8% -25.3%

Finance lease liabilities - net of current portion 114 0.1% 155 0.1% -26.4%

Other non-current liabilities 10,198 7.2% 10,348 7.1% -1.4%

Total Liabilities 95,422 67.2% 98,040 67.1% -2.7%

Non-controlling interests of the subsidiaries 3,261 2.3% 3,768 2.6% -13.5%

Total Shareholders’ Equity 46,494 32.8% 48,051 32.9% -3.2%

Total liabilities and shareholders’ equity 141,916 100% 146,092 100% -2.9%

Change(Unit: THB mn) 2018 % to total assets 2017 % to total assets

Remark: *Figures as reported in February 2019

(Unit: THB mn) 2018 2017 Change

Profit before income tax 3,664 6,362 (2,698)

Adjustments for depreciation & amortisation expenses 2,989 2,761 228

Other adjustments 3,021 1,383 1,638

Changes in operating assets and liabilities 3,659 (2,830) 6,489

Cash flows receipts from operating activities 13,333 7,675 5,658

Net cash receipts (payments) from operating activities 12,866 6,818 6,048

Net cash payments for investing activities (3,403) (2,424) (979)

Net cash receipts (payments) for financing activities (8,704) (4,552) (4,152)

Net increase (decrease) in cash and cash equivalent 759 (158) 917

Cash and cash equivalents - opening balance 573 731 (158)

Exchange gain (loss) on cash and cash equivalents (21) 0 (21)

Cash and cash equivalents - closing balance 1,311 573 738

CAPEX (4,898) (5,505) 607

Management Est. Free Cash Flows* 8,401 2,938 5,463

Consolidated

(in mTHB) Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018

Sales 30,958 34,400 34,847 34,733 134,937 29,329 33,775 34,169 36,012 133,285

Cost of sales 26,376 29,428 29,896 29,927 115,628 25,941 29,034 28,762 30,656 114,393

Gross Profit 4,582 4,971 4,951 4,806 19,310 3,388 4,741 5,406 5,356 18,892

in % of Net sales 14.8% 14.5% 14.2% 13.8% 14.3% 11.6% 14.0% 15.8% 14.9% 14.2%

SG&A expenses 3,684 3,291 3,574 3,840 14,388 3,295 3,529 3,540 3,857 14,222

in % of Net sales 11.9% 9.6% 10.3% 11.1% 10.7% 11.2% 10.4% 10.4% 10.7% 10.7%

Operating Profit 899 1,680 1,377 966 4,921 93 1,212 1,866 1,499 4,669

in % of Net sales 2.9% 4.9% 4.0% 2.8% 3.6% 0.3% 3.6% 5.5% 4.2% 3.5%

FX gain/loss 590 41 275 353 1,259 580 222 128 41 972

Other income 484 407 582 709 2,182 543 628 373 493 2,036

Share of profit 266 123 132 -65 456 301 44 142 -137 350

EBIT 2,239 2,251 2,366 1,962 8,818 1,517 2,105 2,510 1,896 8,028

in % of Net sales 7.2% 6.5% 6.8% 5.6% 6.5% 5.2% 6.2% 7.3% 5.3% 6.0%

Finance cost -497 -562 -545 -532 -2,136 -503 -498 -501 -524 -2,025

Tax -210 -31 77 229 65 13 -91 -146 35 -189

Net income before DO 1,532 1,657 1,898 1,660 6,747 1,027 1,516 1,863 1,407 5,813

in % of Net sales 4.9% 4.8% 5.4% 4.8% 5.0% 3.5% 4.5% 5.5% 3.9% 4.4%

Discontinued Operation -8 -117 -51 -110 -286 -60 -38 -66 -60 -224

Net income before minority interest 1,523 1,541 1,847 1,550 6,461 967 1,479 1,797 1,347 5,589

Minority interest -91 -120 -124 -137 -471 -98 -110 -66 -124 -398

Net income 1,432 1,421 1,723 1,413 5,989 869 1,368 1,731 1,223 5,191

in % of Net sales 4.6% 4.1% 4.9% 4.1% 4.4% 3.0% 4.1% 5.1% 3.4% 3.9%

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FY2018 Analyst Meeting · The information contained in our presentation is intended solely for your...

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