Asian Seafoods Coldstorage PLC. Q2 Opportunity Day 08 th Aug 18

Transcription

1 Asian Seafds Cldstrage PLC. Q2 Opprtunity Day 08 th Aug 18 TUNA BUSINESS FEED BUSINESS FROZEN BUSINESS PETFOOD BUSINESS We are the right chice! DISTRIBUTION BUSINESS

2 Disclaimer This presentatin includes frward-lking statements and numbers that are subject t risks and uncertainties including, in particular, statements abut future events, future financial perfrmance, plans, strategies, expectatins, prspects, cmpetitive envirnment, regulatin and supply and demand. ASIAN, Asian Seafds Cldstrage PLC., based these frward-lking statements n its views with respect t future events and financial perfrmance. Actual perfrmance described herein culd differ materially, better r wrse, frm that prjected in the frward-lking statement due t the inherent uncertainty f estimates, frecasts and prjectins. Readers shuld nt put undue reliance n any frward-lking statements. Frward-lking statements represent estimates and assumptins nly as f the date that they were made. The infrmatin cntained in this presentatin is subject t change withut ntice and ASIAN des nt undertake any duty t update the frward-lking statements, and the estimates and assumptins assciated with them, except t the extent required by applicable laws and regulatins. Q2 Opprtunity Day 08 th Aug 18 2

3 Agenda ASIAN Overview ASIAN Key Financial ASIAN Develpment by Segment ASIAN Strategies Updated ASIAN 2018 Target Q2 Opprtunity Day 08 th Aug 18 3

4 ASIAN OVERVIEW Asian Seafds Cldstrage Public Cmpany Limited & its Subsidiaries

5 Asian Business Grwth : -12% YY Grwth : -19% YY Grwth : +69% YY Grwth : +25% YY Grwth : +6% YY Frzen Business Tuna Business Pet Fd Business Aquaculture Feed Business Distributin Business Asian Seafds Cldstrage PLC. Asian Alliance Internatinal C., Ltd. Asian Alliance Internatinal C., Ltd. Asian Feed C., Ltd. Asian Seafds Cldstrage PLC. Asian Seafds Cldstrage (Suratthani) C., Ltd. Asian Fd C., Ltd. 4.1 billin baht 1.1 billin baht 2.7 billin baht 1.5 billin baht 0.7 billin baht 2017 Business Size Q2 Opprtunity Day 08 th Aug 18 5

6 ASIAN s Sustainability Prduct Quality and Services Human Develpment and Human Value Cmmit aviding t invlve in illegal fishing, prcuring, imprting, exprting, transiting and distributing aquatic life and prducts btained frm illegal fishing and labr, and human trafficking. Anti-Crruptin Plicy Q2 Opprtunity Day 08 th Aug 18 6

7 Majr Events 1964 Starting Business in Frzen Fd 1993 Funded Asian Seafds Cldstrage (Suratthani) C., Ltd. In rder t expand Frzen Fd Business 1994 Registered Asian Seafds Cldstrage PLC. 2010s 2015s 2016s 2005 Funded Asian Alliance Internatinal C., Ltd., diversify int Tuna Business 2006 Acquired Asian Feed C., Ltd., diversify int Shrimp Feed Business 2012 Funded Asian Fd C., Ltd., dmestic trader cmpany f the grup EMS Outbreak in Shrimp Asian Feed invested in Extruder t diversify int Fish Feed Business 2013 AAI invested in Premium Pet Fd Line 2015 Quadruple Grwth in Pet Fd Turnarund f Asian Feed C., Ltd Implement ERP Sustainable surcing & Gd Labr Practice Established Nutritin Database in Pet Fd & Feed Ambitin 2020 were set 2017 Expand Pet Fd Capacity Rapid Grwth in Pet fd & Aqua Feed Launch cncept Clser t cnsumer and efficiency and set up strategies Funded Asian Grup Services C., Ltd. Invest in Asian Grup SCS Eurpe GmbH Invest in Inter Petrina C., Ltd. fr Maria brand. 2018s Q2 Opprtunity Day 08 th Aug 18 7

8 ASIAN Key Financial Asian Seafds Cldstrage Public Cmpany Limited & its Subsidiaries

9 Q2/18 Highlights Sales revenues increased 1.5% y..y. t 2,316 millin at lwer vlumes, mainly due t lwer Aquafeed vlumes. Petfd vlumes were up Grss Prfit margin was 11.8% versus 10.2% in the same quarter last year. Margins in Frzen and Petfd imprved Q..Q due t better prices and FX effects Prfitability Analysis ('000'000 Baht) Q Q Q Sales 2,283 2,316 2,300 Grss Prfit SG&A (137) (168) (140) EBIT frm Operatin (1) Other Incm fxgain (lss) 8 (5) 21 Nn-recurring 0 (2) Net prfit in Q2/18 was 92 millin baht, in line with the same perid last year Jint-ventures were cncluded in Germany and Thailand fr the marketing and sales f Petfd EBIT Financial Cst (32) (35) (33) EBT Taxes 1 12 (9) Net Prfit First exprts f frzen prcessed Barramundi Q2 Opprtunity Day 08 th Aug 18 9

10 Q2/18 Sales Overall vlumes in Q2 decreased 9% y..y. which was a result f lwer Feed and Distributin vlumes which were partly ffset by higher Petfd vlumes and slightly higher Tuna vlumes. Aquaculture. Sales Revenues in Q2 increased 1.5% cmpared t the same quarter a year ag (excluding intracmpany transactins). The USD increased mre than 6% during the quarter, which returned higher prices in baht fr all USD denminated sales. * Vlumes include inter cmpany transactin Q2 Opprtunity Day 08 th Aug 18 10

11 Q2/18 Prfitability Grss Prfit margin was 11.8 % versus 10.2% in the same quarter last year. Net prfit in Q2/18 was 92 millin baht, in line with the same perid last year (net prfit 94 millin baht) Q2 Opprtunity Day 08 th Aug 18 11

12 Q2/18 Wrking Capital *Net WC Days = AR Days + INV Days AP Days **ROE= last 4 quarter net prfit/average ttal sharehlders equity Q2 Opprtunity Day 08 th Aug 18 12

13 Leverage &Debt Structure Balance sheet ratis a bit imprved. Lng term Lan imprved as planned Q2 Opprtunity Day 08 th Aug 18 13

14 ASIAN Develpment by Segment Asian Seafds Cldstrage Public Cmpany Limited & its Subsidiaries

15 Frzen Business

16 Frzen Business Frzen Business f Asian Grup cmprises f 3 plants Asian Seafds Cldstrage Public Cmpany Limited (Klngtey) capacity f 2,400 tns finished prduct per year Asian Seafds Cldstrage Public Cmpany Limited (Samutsakrn) capacity f 14,000 tns finished prduct per year Asian Seafds Cldstrage (Suratthani) Cmpany Limited Capacity f 10,000 tns finished prduct per year Q2 Opprtunity Day 08 th Aug 18 16

17 Frzen Perfrmance Sales vlumes fr the quarter were verall stable y..y. but sales revenues decreased 7% t 904 millin baht. Squid vlumes were slwer cmpared t the same perid last year, and at lwer prices. Margins imprved, cmpare t the previus tw quarters, as a result f slightly lwer raw material price due t market mechanism and inventry write-dwns taken previusly. Shrimp vlume in Q2 increased y..y. but trading at significantly lwer prices cmpared t a year ag. Prfit margins were hwever better than in Q1 as a result f a better prduct/market mix and lwer prcessing cst. Optimizing cldstrage capacity has yielded cst savings in the curse f Q2. Q2 Opprtunity Day 08 th Aug * Vlumes include inter cmpany transactin

18 Frzen Actins Mre fcus n China market Increase fish prcessing and prduct develpment Further strengthen squid brand Asian Surat Cst restructuring A cmprehensive cst ratinalisatin prject amng the three prcessing plants has been initiated and is expected t shw an imprved cst structure in the curse f Q3 Ratinalisatin f cld strage facilities in the curse f Q2 Q2 Opprtunity Day 08 th Aug 18 18

19 Tuna Business

20 Tuna Business Operated by Asian Alliance Internatinal C., Ltd., lcated in Samutsakrn prvince w/ quite new facilities cmpare t thers. Traditinal tuna prduct in cans and puches, and Value added prduct (ready-t-eat) such as Tuna with rice meal. N branded, mre flexible in tuna high price seasns. Capacity f arund 17,500 tns f finished prduct per year. Q2 Opprtunity Day 08 th Aug 18 20

21 Tuna Perfrmance Canned Tuna vlumes and sales revenues were up y..y. amunting t 244 millin baht. This was partly due t the strengthening f the USD during the quarter. Prfit margin imprved. * Vlumes include inter cmpany transactin Q2 Opprtunity Day 08 th Aug 18 21

22 Petfd Business

23 Petfd Business Als perate by Asian Alliance Internatinal C., Ltd. Serve as a c-develper wh understand custmers and prvide ideas fr new prducts in variety f packaging. Target premium brand wners and private labels shwing cntinued grwth. Prcess Fishmeal using nn-iuu byprducts which benefit shrimp prducts traceability. Annual prductin capacity f 38,000 tns f FG (net weight) Q2 Opprtunity Day 08 th Aug 18 23

24 Petfd Perfrmance Sales revenues were up t 811 millin baht, a 24% increase cmpared t the same quarter last year. Vlume increased 18% and higher prices due t USD exchange rate effects and prduct mix. Vlume mainly increased with custmers in the premium market segment, bth by rganic grwth f individual custmers and by increase f ur share f supply t larger custmers. The tender f the cnstructin f an autmatic warehuse is partly cncluded and cnstructin will start in Q3. * Vlumes include inter cmpany transactin Q2 Opprtunity Day 08 th Aug 18 24

25 Aquaculture Feed Business

26 Aquaculture Feed Business Asian Feed C., Ltd. lcated in Petchaburi. Prductin capacity f 60,000 tns f sinking pellet and 36,000 tns f flating pellet per year Farm research facilities in Suratthani fr bth prduct quality and new farm mdel test. Advanced labratry & academic expertise t prvide water quality analysis inspectin, aquatic animal quality evaluatin, fd quality develpment, technique advisry fr rearing and slutin fr diseases in aquatic animals. Q2 Opprtunity Day 08 th Aug 18 26

27 Aquaculture feed Perfrmance The strng perfrmance f the previus year culd nt be maintained in Q2 and vlumes and sales revenues declined with 24% and 22% respectively, with lwer sales bth in shrimp feed and fish feed. Prfit margins declined, due t temprary price reductin due t an industry wide supprt package t farmers, wh suffered a significant drp in shrimp prices. * Vlumes include inter cmpany transactin Q2 Opprtunity Day 08 th Aug 18 27

28 Distributin Business

29 Distributin Business Asian Fd C., Ltd. engages in imprted frzen fd prducts and delivered t Thai whlesalers, mdern retail and restaurant chains. Our cld strage in Bangkk and Samutsakrn are als the hub fr ur fd distributin business. Q2 Opprtunity Day 08 th Aug 18 29

30 Distributin Perfrmance Sales revenues decreased, hwever, prfitability was satisfactry. Q2 Opprtunity Day 08 th Aug 18 30

31 ASIAN Strategies Updated Asian Seafds Cldstrage Public Cmpany Limited & Its Subsidiaries

32 Ambitin 2020 Sales (Billin baht) Key Strategy/Success 2020 Target Frzen Shrimp & VAP 6.0 Tuna VAP 1.5 Pet Fd C-Develper, Custmer Relatin 4.0 Feed Sustainability, Fishmeal Substitutin, Dryfeed 2.0 Distributin Acquisitin 1.0 Ttal ASIAN Inter-cmpany sales (0.2) (0.4) Cnslidated GP 8.2%* 10.5% % Q2 Opprtunity Day 08 th Aug 18 *2015 GP excluding Fx Benefit 32

33 Key Strategies fr Clser t cnsumer and efficiency Peple Custmers Quality Capital Efficiency Brands Surcing Grwth Prfit Stability Partners Diversificatin Plicies Q2 Opprtunity Day 08 th Aug 18 33

34 Strategic Actins Marketing and Sales jint ventures in Eurpe and Thailand established, first custmers acquired Petfd brand develpment: Maria launched in Thailand, brand fr China t be intrduced in Q3 Asian Seabass launched with initial sales t nrth America Autmated warehuse capex arund 250m baht Marketing team established. Q1 Opprtunity Day 23rd May

35 ASIAN 2018 Target Asian Seafds Cldstrage Public Cmpany Limited & Its Subsidiaries

36 2018 Target Update Target Sales (Billin Baht)* 2017 Target %Grwth Updated %Grwth Frzen % 4.2 3% Tuna % 1.1 0% Pet Fd % % Aqua Feed % 1.4-6% Distributin % % Inter-cmpany sales (0.4) (0.3) (0.2) Ttal Asian Grup % % Cnslidate GP 10.5% 10%-10.5% 9.5%-10% *Actual sales revenue by business segment partly include inter-cmpany sales Q2 Opprtunity Day 08 th Aug 18 35

37 2018 Target Update Sales (Billin Baht)* 2017 YTD 2018 Adj.Target prgress Frzen % Tuna % Pet Fd % Aqua Feed % Dirtributin % Inter-cmpany sales (0.4) -0.1 (0.2) Ttal Asian Grup % Cnslidate GP 10.5% 9.5%-10% *Actual sales revenue by business segment partly include inter-cmpany sales 2018 grwth expected t be 10%, the lwer grwth rate mainly due t lwer shrimp price, slw squid market and strng cmpetitin in feed business. Sales Revenue target fr the year is nw 10.6 billin baht with grss prfit margin arund % Q2 Opprtunity Day 08 th Aug 18 36

38 Thanks! Any questins? Investr Relatins Cntact Tel: (66) ext Presentatin is available at

39 Appendix Asian Seafds Cldstrage Public Cmpany Limited & Its Subsidiaries

40 Management Team Mr.Smsak Amrrattanachaikul Chief Executive Officer Mr.Suriya Prasatbuntitya Executive Vice President Mr.Smchai Amrrattanachaikul Senir Managing Directr Mr.Hendrikus (Rik) Van Westendrp Executive Vice President & Chief Financial fficer Q2 Opprtunity Day 08 th Aug 18 Mr.Aekarat Punnasung MD-Asian Alliance Mr.Wallp Lmlimp MD-Asian and Asian Feed A-1 Mrs.Suree Jangsawat MD-Asian Surat

41 Q2/2018 Incme Statement Unit ('000) Q % t Sales Q % t Sales YTD 2017 % t Sales YTD 2018 % t Sales Sales 2,280, % 2,311, % 4,760, % 4,610, % Cld strage service incme 1, % 4, % 3, % 5, % Cst f Sale and service (2,048,681) -89.8% (2,043,421) -88.2% (4,228,782) -88.7% (4,204,417) -91.1% Grss Prfit 233, % 272, % 536, % 411, % Other incme 28, % 13, % 65, % 83, % SG&A expenses (136,639) -6.0% (168,145) -7.3% (337,614) -7.1% (307,790) -6.7% Share f lss frm JV (2,328) (2,328) EBIT 125, % 115, % 263, % 184, % Finance cst (32,280) -1.4% (34,919) -1.5% (64,661) -1.4% (68,323) -1.5% EBT 93, % 80, % 198, % 116, % Incme tax expenses 1, % 11, % 1, % 2, % Prfit fr the year 94, % 92, % 200, % 118, % Earning per share Q2 Opprtunity Day 08 th Aug 18 A-2

42 Q2/2018 Statement f Financial Psitin Unit ('000 baht) Q Current Asset % t Ttal Asset 2017 A-3 % t Ttal Asset Change Cash and cash equivalents 50, % 38, % 31.06% Trade and ther receivables 1,279, % 1,190, % 7.48% Inventries 2,548, % 2,682, % -4.97% Other current assets 58, % 36, % 62.07% Ttal current assets 3,938, % 3,948, % -0.25% Nn-Current assets Investment in JV 1,283 Investment prperties 40, % 40, % 0.00% Prperty, plant and equipment 2,674, % 2,659, % 0.55% Other nn-current assets 153, % 162, % -5.92% Ttal nn-current assets 2,868, % 2,862, % 0.22% Ttal assets 6,807, % 6,810, % -0.05% Current Liabilities Bank verdrafts and shrt-term lans frm banks 1,175, % 1,284, % -8.47% Trade and ther payables 604, % 608, % -0.76% Current lng-term lans and lease liabilities 778, % 869, % % Other current liabilities 38, % 46, % % Ttal current liabilities 2,595, % 2,808, % -7.58% Nn-current liabilities Lng-term lans 1,521, % 1,289, % 18.00% Lng-term debentures % % n/a Finance lease liabilities 1, % 1, % % Other nn-current liabilities 167, % 172, % -3.08% Ttal nn-current liabilities 1,689, % 1,463, % 15.47% Ttal liabilities 4,285, % 4,272, % 0.31% Ttal sharehlders' equity 2,521, % 2,538, % -0.66% Ttal liabilities and sharehlders' equity 6,807, % 6,810, % -0.05% Q2 Opprtunity Day 08 th Aug 18

43 Q2/2018 Statement f Cash Flw Units: ( 000 baht) 6mth mth 2017 Change Prfit (lss) befre tax 116, ,907-82,790 Depreciatin & Amrtisatin 95,772 91,253 4,519 Other adjustments t recncile prfit (lss) befre tax t net cash -27,750 18,973-46,723 Lss (gain) n exchange rate 22,517-13,177 35,694 Interest expense (incme) 67,404 62,247 5,157 Prfit frm perating activities befre changes in perating assets and liabilities 274, ,203-84,143 Decrease (increase) in perating assets 78, , ,523 Increase (decrease) in perating liabilities -22,020 9,228-31,248 Cash frm (used in) perating activities 330,757-26, ,132 Cash paid fr interest -70,187-64,569-5,618 Cash paid fr incme tax -5,318-2, Cash received frm withlding incme tax 5,732 Net cash frm (used in) perating activities 260,984-93, ,737 Net cash frm (used in) investing activities -109,069-63,637-45,432 Net cash frm (used in) financing activities -139, , ,359 Net increase (decrease) in cash and cash equivalents 12,003-9,943 21,946 Cash and cash equivalents at beginning f perid 38,640 66,510-27,870 Cash and cash equivalents at end f perid 50,643 56,567-5,924 Q2 Opprtunity Day 08 th Aug 18 A-4