THAI UNION FROZEN PRODUCTS -...

THAI UNION FROZEN PRODUCTS

Opportunity Day Presentation

27 March 2012

Agenda

1. Company overview

2. 2011 Financial results

3. Outlook and strategy

3

Founded

Thai Union

Manufacturing

Strategic

Partnership with

Mitsubishi Corp

Acquired

Chicken of the

Sea International

(50%)

Acquired the

remaining shares

of COSI

(100%)

Set up

Chicken of the

sea Frozen

Acquired

4 fishing vessels

in Indian ocean

Acquired

Avanti Feeds

(15%)

Established

Thai Union

Frozen Products

TUF was

listed on stock

exchange of

Thailand

(90%)

Acquired

Songkla

Canning

(100%)

Acquired

Empress

International

(76.5%)

Acquired

PT Jui Fa

International

(51%)

Acquired

Yueh Chyang

Canned Food

(100%)

Acquired

MW Brands

2001

2003 2006 2008 2010 1988 1994 1998

1977 1992 1997 2009 2006 2007

Acquired

Pakfood

public company

2012

Thailand US US US India Thailand

Thailand Thailand Indonesia US Vietnam Europe

Introduction to TUF 35 Years of Seafood Processing Experience

Source: TUF’s Financial Statement

4

Thai Union Frozen Products

Frozen & canned seafood, pet food, snack and ready-to-eat meals

Subsidiary (shares held more than 50%)

Associate (shares held between 10% - 50%)

Group 1

Frozen and canned seafood

TN Fine Chemical

(Hi-grade tuna oil &

glucosamine)

Moresby

International Holding

(Papua New Guinea-

based holding)

Thai Union

Seafood

(Frozen shrimp)

Songkla Canning

(Pet food)

Thai Union

Manufacturing (Canned Tuna & Pet

food)

90%

49%

33%

90%

51%

Group 2

Packaging products

Asian Pacific Can

(Empty can)

Thai Union

Graphic

(Printing)

91%

74%

Group 3

Animal feeds and aquaculture

Thai Union

Feedmill

(Shrimp feed)

Thai Quality

Shrimp

(Shrimp breeding

and farming)

Thai Union

Hatchery

(Shrimp brood stock

breeding)

T-Holding

(Food distributor for Thai

market)

51%

95%

100%

90%

Group 4

Thai Domestic Market

Group 5

Overseas investment

Thai Union

International (US-based holding

company)

Tri-Union Frozen

Product

(Frozen seafood in

the US)

U.S. Pet Nutrition

(Wet and dry pet

food in the US)

Thai Union

Investment Holding (Mauritius based holding

company)

MW Brands

Holdings SAS

(Canned seafood in

Europe)

Century Trading

(Processed seafood in

China)

P.T. Jui Fa

International Food (Canned tuna in

Indonesia)

Yeuh Chyang

Canned Food (Processor of canned

shellfish & tuna)

Avanti Feeds

(Shrimp feeds and

exporter of shrimp)

50%

89%

51%

100%

70%

99%

100%

15%

100%

CTS

TUF Group Structure Composed of 5 groups of business in both domestic and oversea

TUF 19%

Others 81%

World production of canned tuna (Million tons)

(Annual capacity1 = 1.58 million tons)

104.4 107.3

110.7 112.7

115.1 117.8

2004 2005 2006 2007 2008 2009

Global seafood consumption2

(Million tons)

TUF is world’s largest canned tuna producer, with the

processing volume 19% of world production capacity

5

Growth : 2.4%

.

Asia

.

Rest of the World

.

Europe4

2010 2011

2010 2011

2010 2011

.

North America

2010 2011

1,077

1,188 355

1,030

598 726

238 289

10% 190%

21%

21%

Revenue growth across all geographies3

(USD million)

Source: 1Fishstat Plus (FAO) 2007, based on finished product production 2The state of world fisheries and aquaculture 2010, FAO 3TUF’s Management Report December 2011 4Annual Europe growth with MW Brands 12 months consolidation is 12%

#1 Global Leader in Raising Consumer Business TUF’s production capacity is 19% of world production of canned tuna

Fisheries

Tuna and

other seafood

Processing Canning Marketing

Breeding Shrimp feed Processing Farm

Shrimp

Raw material acquisition Production Marketing

• Shrimp breed

development

farms

• A Factory in

Thailand with

capacity of

330,000 tons per year

• Partner farms in Thailand

• 2 Facilities3 in Thailand • Total capacity of 75,000 tons per year

• 9 Own fishing vessels with capacity

of 44,440 tons per year • Covers Atlantic Ocean

• 10 Facilities1 in 8 countries

• Total capacity of 643,000 tons per year

Marketing

• 8 Brands2

• 5 Continents

Value adding

Can & label

production

• Can and printing

factory in

Thailand

6

• Chicken of the

Sea Frozen Food

• 3 Continents

Remark: Not include supply chain for ready to eat and pet food products 1Seychelles, Ghana, France, Portugal, United States, Indonesia, Vietnam, Songkhla and 2 facilities in Samut Sakorn 2John West, Petit Navire, H. Parmentier, Mareblu, Chicken of the Sea, Century, Sealect, and Fisho 3Mahachai and Songkhla facilities

Source: TUF’s Management Report December 2011

Fully Integrated and Globally Diversified Supply Chain Tuna, shrimp, and other seafood products from sourcing to marketing

13%

6%

4%

5%

24%

48%

2011 Revenue

7

Strategic business

group Product range Brand


Tuna Canned tuna

Frozen tuna loin

Shrimp

business Frozen shrimp

Shrimp feed

Salmon Salmon

Sardine

& Mackerel Canned sardine &

Mackerel

Pet food Pet food

Other

products1

Ready to eat food Frozen cephalopod Other canned seafood Bakery products

2011 Revenue

breakdown

6 Strategic Business Group of TUF Tuna and shrimp business are TUF’s core business with over 70% of total revenue

TUF Markets TUF Production Bases TUF Sources of Fish

MWB Production Bases MWB Markets MWB Sources of Fish

• TUF has processing facilities and market distributions in major continents all over the world

• Production facilities are located closely to fishing grounds; hence, achieving lower cost of production

8

Thailand Georgia, USA

Indonesia

Vietnam

Seychelles

Portugal

France

Europe

Ghana

TUF’s Global Sourcing, Production and Markets TUF has processing facilities and market distributions over the world

9

#1 Market share Thai canned tuna1 Teenagers’ fish snacks

• Target teenagers

• 3% Growth in 2011

• 20% Target growth in 2012 (outpacing

fish snack market grows at 10%) from

promotion, repackaging and brand

building

Premium-grade wet-based pet food

• Premium brand positioning

• High-quality raw materials and

processing

• Future expansion through premium

pallet cat food

Tuna

Sardine & Mackerel

Cream salad

Seasoned and shredded fish snacks

Seasoned fish slice

Dog food

Pet snack

Cat food

• #1 Market share (44%) in canned tuna

market1

• #2 Market share (15%) in canned

sardine & mackerel market1

• 27% Growth in 2011 vs. 6% for overall

market

Remark: 1Number 1 in Thai canned tuna market with 44% market share, Number two brand in canned sardine & mackerel

market with 15% market share after Three Lady Cooks Brand (30%)

Source: TUF’s database 2011

Sealect, Fisho, and Bellotta Sealect as No. 1 market leader with 44% share in canned tuna market

10

Chicken of the Sea’s product range

Tuna

Other seafood

• Driving growth in shrimp and pasteurized crabmeat

business further

• Product line expansion to introduce new value-added

seafood products

Chicken of the Sea Frozen Foods’ product range

• Maintaining and increase number of key customers

• Extensive new product development

• Improving compliance with sustainability issues

Sardines

Remark: 1Number 3 brand with 19.9% market share after Starkist (31.8%) and Bumble Bee (24.9%)

Source: TUF’s database 2011

Frozen finish Frozen shrimp

Crab meat

Chicken of the Sea No. 3 brand in US market with 20% market share1

Outlook & strategies

Ireland United

Kingdom

Netherlands

John West’s product range

Tuna

Chilled seafood Specialty food Salmon

11

Market information and performance

• Recently rebranded;

• Sustainability tuna sourcing campaign

• Future expansion into East EU, Russia, and Scandinavian countries

• Intense focus on R&D to improve product functionality and differentiation

Market size1

(EUR million)

Market coverage:

Market size and

Market share:

33% 34%

534 581

2010 2011

John West’s

market share

Market share:

Market position:

Contribution to MWB’s revenue3: 45%

33% 34%2

1# 1#


70% 70%

39 39

2010 2011

70 70%

1# 1#

34% 34%

66

81

2010 2011

34% 34%

1# 1#

Remark: 1Ambient seafood sector size as at October, 2010 and December, 2011 2Gain in market share (value share). Market share as at January, 2012 3MWB revenue in 2011(Other product constitutes for 2% of total revenue)

Source: Nielsen and IRI –MAT (October, 2010 and December, 2011)

9%

1%2

0%

0%2

22%

0%2

John West No. 1 canned tuna brand in 3 countries

http://johnwest.com.au/our-range/chilled-seafood/marinated-seafood/basa-with-lemon-and-herb-300g-variable

http://johnwest.com.au/our-range/chilled-seafood/natural-seafood/atlantic-salmon-290g-variable

France

Petit Navire’s product range

Tuna

12

Salads Sardine

Mackerel

H. Parmentier’s product range

Classic recipe, cooked, and shredded sardines


• Well-established by-far largest brand in French market

• Expansion opportunity in ‘frozen and chilled’ seafood product

and other value-added products

• Expected cost improvement from support by Thai staff

Market size1

(EUR million)

Market coverage:

Market size and market share:

29% 28%

773 825

2010 2011

Petit Navire’s

& H.Parmentier’s

market share

Market share2:

Market position3:


29% 28%2

1# 1#


Remark: 1Ambient seafood sector size as at October, 2010 and December, 2011 2Gain in market share (value share) of two brands combined. Market share as at January, 2012 3MWB revenue in 2011(Other product constitutes for 2% of total revenue)


7%

-1%2

Petit Navire and H. Parmentier No. 1 French canned seafood


13

Italy

Market size1

(EUR million)

• The goal is to become second-largest brand in Italian market

by gaining market share through;

o New product development

o Extensive marketing effort

o Continuous new listing strategy

Market coverage:

Market size and market share:

5% 6%

910 982

2010 2011

Mareblu’s

market share

Market share:

Market position:


5% 6%2

3# 3#

Mareblu’s product range

Tuna in olive oil

Tuna in brine

Tuna steak and

Mackerel fillet

Tuna salad


7%

1%2

Remark: 1Ambient seafood sector size as at October, 2010 and December, 2011 2Gain in market share (value share). Market share as at January, 2012 3MWB revenue in 2011(Other product constitutes for 2% of total revenue)


Mareblu Well-positioned to gain share in Italy market

Agenda

1. Company overview



15

2,874

5,950

9,531

71,507

5,075

10,105

16,369

98,670

Financial Summary1

(THB million)

Gross Profit

Total Sales

EBITDA

Net Profit

2011

2010

2011

2010

2011

2010

2011

2010

+38%

+72%

+70%

+77%

Record earnings,

up 77%

THB 5,075 million

ND/E continuously

decline

1.44x

Source: 1Financial Statement for the year ended December 2011 2Bloomberg (Jan 4’ 11: THB 52/ share, Dec 30’ 11: THB 58.5/ share, Mar 21’12: THB 71.5/ share, up 37.5%)

Share price growth

20112

(Jan-Dec 11)

12.5%

20122

(Jan-Mar12)

22.2%

Company Highlights Record earnings with 77% growth

16

2011 Revenue by product

Tuna

48%

Shrimp

business

24%

Pet food

6%

Sardine

& Mackerel

4%

Other products1

13%

2011 Revenue by OEM/ Brand

OEM

48% Brand

52%

19%

11%

10%

2%

Salmon

5%

Total revenue: THB 98,670 million Total revenue: THB 98,670 million

10%

• Tuna and shrimp business are major

source of TUF’s revenue, accounts for

72% of total revenue

• Branded products account over 50% of total revenue in 2011

• Chicken of the Sea and MW Brands contribute over 80% of

branded income

Remark: 1Other products include ready-to-eat food, frozen cephalopod, other canned seafood, and bakery products Source: TUF’s Management Report December 2011

Local Products

2011 Revenue by Product and by OEM/ Brand Major source of revenue from tuna and branded products

17

• Revenue from USA and Europe accounted for 36% and 32% respectively in 2011

• Revenue from Europe increase 190% YoY after the acquisition of MWB

• Revenue has been improved YoY in every region, except Africa

USA 46%

Europe 16%

Domestic 12%

Japan 12%

Africa 4%

Oceania 3%

Asia 3%

Middle East 2%

South America 1%

Canada 1%

USA 36%

Europe 32%

Domestic 10%

Japan 10%

Africa 3%

Oceania 3%

Asia 2%

Middle East 2%

South America

1% Canada 1%

2010 Revenue by region (% total revenue)

2011 Revenue by region (% total revenue)

Total revenue : USD 2,268 million Total revenue : USD 3,232 million

Revenue Breakdown by Region Revenue from Europe increase 190% YoY after the acquisition of MWB

Remark: 1The percentage change is calculated based on value in THB currency

Source: TUF’s Financial Statement TUF’s Management Report December 2011

Quarterly revenue (THB million and USD million)

18

Tuna

Shrimp business

Salmon Sardine & Mackerel

Other products

Annual revenue (THB million and USD million)

+26% YoY1

+4% QoQ1

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

20,649 22,706

24,860 25,105 26,000

16% 16% 13%

8% 9% 6% 4% 3%

4% 2% 3% 5%

26% 29%

24%

44% 40%

48%

FY09 FY10 FY11

68,994 71,507

98,670

+38% YoY1

+4% YoY1

Tuna

Shrimp business

Sardine & Mackerel Pet food

Other products

Salmon

THB million

USD million 687

743

821 831 837

THB million

USD million 2,013 2,268

3,232

• Stable improving operation QoQ • Outstanding results from increase in

sales of tuna, salmon, and sardine & mackerel

Pet food

Quarterly and Annual Revenue Revenue increases 38% YoY to THB 98,670 million

2,440

3,355

4,326 4,344 4,344

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

19

Gross profit margin (%)

FY09 FY10 FY11

15.1%

13.3%

16.6%

10,444

16,369 11.8%

14.8%

17.4% 17.3% 16.7%

0.02% QoQ

72% YoY


Gross profit margin (%)

Quarterly GP and GPM (THB million)

Annual GP and GPM (THB million)

• Improving Gross profit QoQ, stable in the last 3 quarters

• Significant improvement in GPM to

16.6%, thanks to Branded products that

create higher margin

9,531

Quarterly and Annual GP, GPM Significant improvement in gross profit margin from 13.3% to 16.6%

FY09 FY10 FY11

20

4.8%

4.0%

5.1%

3,344

5,075

352

753

1,238

1,561 1,523

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

1.7%

3.3%

4.9%

6.2% 5.8%

77% YoY

Net profit margin (%)

Net profit margin (%)

-0.03% QoQ

Quarterly Net profit and Net profit margin (THB million)

Annual NP and NPM (THB million)

• Slightly drop in Q4 from lower EBITDA • Net profit and NPM remains high with positive trend

comparing to previous year

• Net profit improved 77% YoY, thanks to higher GPM and the utilization of tax credit


2,874

Quarterly and Annual Net Profit and Net Profit Margin Net profit increases 77% YoY, with Net Profit Margin of 5.1%

ROE

21

22%

14%

22%

FY09 FY10 FY11

ROA1

13%

9% 11%

FY09 FY10 FY11

A/R Turnover (Days)

36

40

37

FY09 FY10 FY11

Inventory Turnover (Days)

108 107

103

FY09 FY10 FY11

Gearing Ratio2 (Times)

0.95x

2.22x 2.07x

FY09 FY10 FY11

ND/E Ratio3

(Times)

0.63x

1.57x 1.44x

FY09 FY10 FY11

Remark: 1ROA = EBIT / Average total assets 2Gearing ratio = Total liability / Total equity 3ND/E ratio = Net interest-bearing debt/ Total equity, Net interest-beating debt = Total interest-bearing debt – Cash and Cash equivalents


Ratio Positive trends for all other key ratios

74% 73%

75%

26%

27%

25%

FY09 FY10 FY11

19% YoY

55% 54% 40%

45% 46%

60%

FY09 FY10 FY11

1,546

63% 61% 48%

37% 39%

52%

FY09 FY10 FY11

Quantity sold (Tons)

22

Sales (USD million)

880 912

228,249 232,323

303,015

30% YoY

Brand

OEM

Brand

OEM

• Higher proportion of

branded product in term of

both sales value and

quantity mainly contributed

by both Thailand and MW

Brands

• Tuna will continue to be

TUF’s core business that

generates both growth and

returns in 2012

70% YoY

Tuna

23% 24% 24%

77% 76% 76%

FY09 FY10 FY11

Quantity sold (Tons) Sales (USD million)

513

656 184,042

218,932 222,760

1.7% YoY

Brand

OEM

Brand

OEM

• Shrimp continued to deliver

good sales growth mainly

driven by higher price

• The segment will continue

to grow supported by

additional production

capacity from PPC

Shrimp business1

778

Remark : 1Shrimp Business includes frozen shrimp and shrimp feed Source: TUF’s Management Report December 2011

Tuna / Shrimp business Significant sales increase: Tuna 70%, Shrimp 19%

100% 82% 45%

18%

55%

FY09 FY10 FY11

157

100% 77% 30%

23%

70%

FY09 FY10 FY11

23

47 64

4,418 5,220

15,107

189% YoY

Brand

OEM

Brand

OEM


• Impressive sales growth of

146% in 2011 from both

price and volume

improvement

146% YoY

Salmon

100% 86%

39%

14%

61%

FY09 FY10 FY11

140

100%

95% 67%

5% 33%

FY09 FY10 FY11

90 77

40,530

30,102 32,812

9% YoY Brand

OEM

Brand

OEM

• 81% growth was driven

mainly by revenue shift to

branded products

• Sardine & mackerel will be

the next rising stat of TUF

81% YoY

Sardine & Mackerel

Salmon / Sardine & Mackerel Salmon: almost 150% growth, Sardine & Mackerel: the next rising star



100% 100% 98%

2%

FY09 FY10 FY11

210

100% 100% 99%

1%

FY09 FY10 FY11

24

168 191 58,764

64,637 63,357

-2% YoY

Brand OEM

Brand OEM

• Future growth in pet food

sales will be driven by

high-price branded

products

• Supported by opportunity

in US market, pet food will

be another rising star in

2012

10% YoY

Pet food

14% 13% 13%

86% 87%

87%

FY09 FY10 FY11

403

24% 9% 17%

76%

91%

83%

FY09 FY10 FY11

316

368

34,692

74,331

99,158

33% YoY

Brand

OEM

Brand

OEM

• Strategic expansion of

value-added ready-to-eat

(RTE) products

9% YoY

Other products1

Remark : 1Other products include ready-to-eat food, frozen cephalopod, other canned seafood, and bakery products Source: TUF’s Management Report December 2011

Pet food / Other products Pet food: another star given opportunity in US



Agenda

1. Company overview



2011

Sales: USD 3.2 billion

2015

Sales: USD 5 billion

2012 - 2014

~15% growth annually

• Continue successful

acquisition &

implementation to other

parts of the world

• Continuous growth

through acquisition of

Branded company

• Maintain #1 Global tuna

company

• Target to be a leading

seafood company in strategic markets

Merger & Acquisition Organic growth : Intensive R&D and new market expansion

26

Tuna & Shrimp

• Maintain leadership

and expand of

successful brands to

new markets

• Intense focus on

R&D to improve

product functionality

and differentiation:

RTE, Frozen &

Chilled food

Pet food

• Introduction of

Middle –

premium pet food

products in North

America

• USPET Nutrition

start operation

• Expect

consolidated

sales increase

15-20%

Local Products2

• Strengthen Local

corporate brand

• Expand to new

market under AEC

benefits

Remark : 1Seafood include salmon, sardine/mackerel, cephalopod and other canned seafood

2Local products includes packaging business, canned tuna and fish snacks marketed in Thailand Source: TUF’s Management Report December 2011

Seafood1

• Significant growth

in price and

volume with good

margin for sardine

& mackerel

• Plan to be the

next rising star of

TUF

2012 Outlook Target growth at minimum 15% annually to reach sales of USD 5 billion in 2015

27 Source: 1Euromonitor International TUF’s Management Report December 2011

Market Expansion Plan Strengthen existing brands and expand to new market

North America - USPET Europe – MW Brands South East Asia - Sealect

• Plant in Georgia; by-product from tuna

plant

• Introduce both branded and private label

products in middle to premium range

• Expand successful brand to eastern Europe, Scandinavian, Middle-east, and African market

• Introduce new products: –Frozen food & Chilled seafood –Pet food –RTE products

• Strengthen corporate brand in Thai

market

• Expand to neighbor countries in South

East Asia

• Tax benefits from AEC

Georgia plant

Thailand UK Ireland

Italy

Netherlands

France

28

2,874

5,950

9,531

71,507

5,075

10,105

16,369

98,670

Financial Summary1

(THB million)

Gross Profit

Total Sales

EBITDA

Net Profit

2011

2010

2011

2010

2011

2010

2011

2010

+38%

+72%

+70%

+77%

Record earnings,

up 77%

THB 5,075 million

ND/E continuously

decline

1.44x

Source: 1Financial Statement for the year ended December 2011 2Bloomberg (Jan 4’ 11: THB 52/ share, Dec 30’ 11: THB 58.5/ share, Mar 21’12: THB 71.5/ share, up 37.5%)

Share price growth

20112

(Jan-Dec 11)

12.5%

20122

(Jan-Mar12)

22.2%

Company Highlights Record earnings with 77% growth

0

20

40

60

80

Jan-11 Apr-11 Jul-11 Oct-11 Jan-12

THB/Share Share price and trading value1

Value Price

Avg. daily trading

value: THB 152 million2

Share information1

Par value (THB) 1.00

Current share price1 (THB) 71.50

Market capitalization1 (THB billion) 68.4

Share capital (share million) 956.3

Free float 42.3% 10

12

14

16

18

20

Jan-11 Apr-11 Jul-11 Oct-11 Jan-12

Times Historical P/E ratio

SETFODD: 16.1 SET: 16.0

TUF: 13.5

THB

52.0/sh

THB

71.5/sh

Remark : 1Share price information as at March 21, 2012, Free float % as at March 3, 2012, Trailing 12 months P/E

2Average daily trading value during January 4, 2011 to March 21, 2012 Source: Settrade (22/3/12), Bloomberg (22/3/12)

Current P/E1

Share price performance Positive trend in share price, Still lower P/E than market and sector

29

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

THANK YOU

www.thaiuniongroup.com

Agenda

31

Appendices

Board of Directors

Mr. Kraisorn Chansiri

Mr. Chan Hon Kit

Vice Chairman

Mr. Cheng Niruttinanon

Executive Director

Mr. Chuan Tangchasiri

Executive Director

Mr. Thiraphong Chansiri

President

Mr. Rittirong Boonmechote

Managing Director

Mr. Yasuo Goto

Director Mr. Takeshi

Inoue

Director

Mr. Chan Tin King

Executive Director and

Chief Financial Officer

Mr. Chan Shue Chung

Executive Director

Mr. Ravinder Singh

Grwel Sarbjit S

Director

Mr. Sakdi Kiewkarnkha

Independent Director

Pol.Maj.Gen. Pracha

Anucrokdilok


Mr. Kiti Pilunthanadiloke


CHAIRMAN

Executive Directors

Directors Independent Directors

Source: TUF’s Financial Statement 32

33

Consolidated

(Million baht) 2011 2010 2011/ 2010

change

Cash and cash equivalents 903 1,037 -13%

Accounts receivable - net 11,161 9,262 +21%

Inventories - net 26,132 21,346 +22%

Other current assets 1,735 2,315 -25%

Total current assets 39,930 33,960 +18%

Fixed assets 15,655 14,190 +10%

Other non-current assets 27,644 26,627 +4%

Total assets 83,230 74,777 +11%

Bank overdrafts and short-term loans 14,477 8,364 +73%

Accounts payable 7,919 7,195 +10%

Other current liabilities 2,746 5,383 -49%

Total current liabilities 25,142 20,941 +20%

Long-term borrowings 24,306 25,392 -4%

Other non-current liabilities 6,713 5,209 +29%

Total liabilities 56,131 51,541 +9%

Minority interest 2,651 2,269 +17%

Total shareholders’ equity 27,069 23,236 +16%

Total liabilities and shareholders’ equity 83,230 74,777 +11%


Balance sheet

34

Consolidated

(Million baht) 2011 2010 2011/ 2010

change Q4’11 Q4’10

Q4’11/ Q4’10 change

Sales 98,670 71,507 +38% 26,000 20,649 +26%

Cost of sales (82,301) (61,976) +33% (21,656) (18,209) +19%

Gross profit 16,369 9,531 +72% 4,344 2,440 +78%

SG&A expenses (8,863) (6,107) +45% (2,425) (1,803) +35%

FX gain (loss) 305 807 -62% 109 128 -15%

Other income 698 519 +34% 202 65 +208%

Other expenses (19) (5) 244% (19) (5) +244%

EBIT 8,489 4,744 +79% 2,210 825 +168%

Finance cost (2,272) (764) +198% (571) (371) +54%

EBT 6,217 3,981 +56% 1,639 454 +261%

Tax (192) (629) -69% 203 (69) -395%

Net income 6,025 3,352 +80% 1,842 385 +378%

Net income (loss) attributable to:

Equity holder of the parent 5,075 2,874 +77% 1,523 352 +332%

Minority interest 950 479 +99% 319 33 +869%

Earnings per share

Basic earnings per share 5.30 3.20 66% 1.59 0.35 +354%

Diluted earnings per share 5.17 3.19 62% 1.55 0.34 +356%


Income statement

1,192

1,822

2,834 2,945

2,503

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11

-15% QoQ

35

EBITDA increases 70% YoY, with 10.2% EBITDA margin

5,950

FY09 FY10 FY11

8.6% 8.3%

10.2%

5,960

10,105

5.8%

8.0%

11.4% 11.7%

9.6%

70% YoY EBITDA margin (%)

EBITDA margin (%)

Quarterly EBITDA and EBITDA margin (THB million)

Annual EBITDA and EBITDA margin (THB million)

• Lower QoQ due to higher SG&A (mainly on R&D,

promotion, and compensation)

• Total %SG&A is in line with last year (at 8.5 - 9%)

• Significant improvement in EBITDA and

EBITDA margin to 10.2% which is a

maintainable level


117 134

269

FY09 FY10 FY11

USD/ Ton

0

500

1,000

1,500

2,000

2,500

FY09 FY10 FY11

36

Gross margin (%)

2,005 USD/ Ton

1,025 USD/ Ton

13.3% 14.7%

17.4%

101% YoY

Skipjack tuna raw material prices (2009-2011)

Tuna’s gross profit (USD million)

FY09 FY10 FY11

Tuna Higher GP and GPM despite higher raw material tuna price

96%

Highlights

Outlook

• Despite tuna raw material fluctuation, gross profit continue to improve significantly. Increasing

raw material price will, in fact, drive TUF’s performance further

• GPM was also driven by improved operational efficiency and effective cost management

• Raw material price could potentially maintain high level due to enhanced fishing regulations

and conservation policy

• Current level of GPM should be maintained with some room to improve from MW Brands synergies


Species

Fertility rate in

Eastern Pacific

Ocean

Western Pacific

Ocean

Indian

Ocean

Atlantic

Ocean

Skipjack, the main TUF supplies, are abundantly available

Source: ISSF “status of the world fisheries for tuna ” Technical report 2011

Status review report of Atlantic Bluefin tuna 2011 37

Other species

30%

Skipjack

Bigeye

Yellowfin

Albacore

Bluefin

High fertility : Tuna are reproduced at higher rate than they are caught

Medium fertility : Tuna are reproduced at the same rate as they are caught

Low fertility : Tuna are reproduced at lower rate than they are caught

TUF’s major

supplies

70%

53

75

107

10.4% 11.4%

13.8%

FY09 FY10 FY11

44% YoY

0

20

40

60

80

100

120

140

160

180

FY09 FY10 FY11

150 THB/ Kg.

38

White shrimp raw material prices 60 pcs./kg. (2009-2011)

Shrimp business’ gross profit (USD million)

FY09 FY10 FY11

THB/kg

122 THB/ Kg.

Gross margin (%)

Shrimp business1 44% YoY increase in gross profit with improved margin to 13.8%

23%

Highlights

Outlook

• Improved GPM from 11.4% to 13.8% from more flexible price adjustment / shortened contract length

of OEM products and price adjustment of shrimp feed

• Shrimp raw material price is expected to be more stable given more demand from China (net

importer) and more supplies from Vietnam, India, and others

• With more stable price and supplies, current GPM should be maintained

Remark : 1Shrimp Business includes frozen shrimp and shrimp feed Source: TUF’s Management Report December 2011

39

Gross profit3

USD 546 million

Products Revenue3

(USD million)

Margin3

(%)

Tuna 1,546 x 17.4% 269

Shrimp

Business1 778 x 13.8% 107

Salmon 157 x 13.4% 21

Sardine & Mackerel

140 x 12.9% 18

Gross profit3

(USD million)

3,233 16.9%4 Total

2011 Financial position summary

Remark : 1Shrimp Business includes Frozen shrimp and Shrimp feed 2Other products include ready-to-eat food, frozen cephalopod, other canned seafood, and bakery products

3Rounded numbers 4Margin is calculated based on gross profit and revenue in USD currency Source: TUF’s Management Report December 2011

Pet food 210 x 20.6% 43

Other product2

403 x 21.8% 88

Ongoing MW Brands synergies in both operational efficiency and product development

2011 Timing

Operational efficiency

Product development

Synergistic

focus

Fleet optimization Production yield improvement

Procurement

efficiency

Value addition to

scrap

Progress

• TUF has transfer all

existing 4 fleets to

operate in Ghana

• Results in double

catching efficiency

• Tutor program in Seychelles and

Ghana by TUF teams

• Brine addition in raw pack

• Joint Salmon

purchasing

• Easy Open lid

purchasing

• Group computer

procurement

• Fish meal

factory in Ghana

will be open in

2012

• Consolidating

TUF’s fleet with

those of MW

Brands

• Best-practice production

knowledge sharing to MW Brands

• Group

purchasing and

storage

• Processing by-

products into

higher sales

value products

40

2012 onwards

New Product

Development

• Sainsbury’s Pole

& Line Private

Label

• Develop new

branded and

private label

products


Synergistic

focus

Progress

~ EUR 3 million

annually

~ EUR

12 million

annually

TUF’s Strategies in existing value chain

Sourcing Processing Marketing & Distribution

41

Secure RM Sourcing New Market

Expansion

R&D Support Team

Capacity Expansion

Tuna

Frozen Shrimp

Remark : 1Seafood include salmon, sardine/mackerel, cephalopod and other canned seafood

2Other products includes Local products, Pet food and Shrimp feed 3Local products includes packaging business, canned tuna and fish snacks marketed in Thailand Source: TUF’s Management Report December 2011

Pet food

Seafood1

Local products2

Shrimp Feed

Sourcing Secure supplies from own fleets and alliance farms

42

Product

category Tuna and other products

Action

Benefits

Shrimp supply

• Well-diversified raw material sourcing

• Enhanced purchasing knowledge and

experience

Alliance with local qualified farms

• Better shrimp raw material quality control

• Improved traceability along supply chain

• Ensured raw material sufficiency

• Reduced brokerage costs from direct

contract with allied farmers

Own-operated fishing fleets

• Establish long-term relationship with

qualified local farms

• Raw materials are acquired from own

operated fleets in Ghana (10-12% of total

supply)


R&D Support Team

Capacity expansion

Shrimp

Capacity (Tons/ day)

Capacity utilization

Pet food

Expansion strategy: • New products in Premium & value added categories

• Enter European market for Premium / Semi RTE segment

TUF

220

80%

PPC

200

50%

Combined

420

66%

Test run: Q4’ 11

Start operation: Q2’ 12

Products: Middle to premium

dog and cat food

43

Objectives:

• To develop new products that best suit demand in each

region and produce at the most cost-optimized process

Structure:

• New product development is local initiated to capture local

preference

• Optimized production process and costing is developed by

TUF’s Support Team and shared to regional operation

Optimized production

process and costing

Thai operation

Europe operation

US operation

Local Initiative

Processing Process reengineer and expand production capacity

Top 2

Thailand’s

biggest player

15-20% market share

• US is the biggest pet food market in the world (38% share)

with expected market size of USD 20 billion in 20121

• Expected 3.5% annual growth1

Source: 1Euromonitor International TUF’s Management Report December 2011

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