FY2018 Analyst Meeting Thai Union Group PCL. 21 February, 2019

Transcription

1 FY2018 Analyst Meeting Thai Union Group PCL. 21 February, 2019

2 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.

3 FY2018 Key Highlights Recent Developments FY2018 Financial Results Business Outlook

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5 (THB mn) Sales 36,012 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 Gross Profit 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 Operating Profit 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) Net Profit 5,356 1,499 1,223* Hindered by business restructuring expenses Normalized net profit down 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 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

6 2018 Net Profit* down 13.4% YoY to THB 5,191 million Financial Summary 1 (THB million) -4.9% % 19,31018, % 134, ,285 Share price movement (Jan- Dec 17) -5.7% (Jan-Dec 18) -21.7% Declining debt, while equity reduced on dividend payment 2017 ND/E 1.38x 4Q18 ND/E 1.35x (1.29x)** 11,579 11, % -5.1% 5,989 4,921 4,669 5,191 Net profit EBITDA Operating profit Gross profit Total sales Source: 1 TU; 2 SET (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

7 60,000 50,000 40,000 30,000 20,000 10,000 0 % Growth YoY Total sales (THB mn) GPM NPM 15.7% 14.7% 14.5% 14.9% 14.2% 13.4% 13.8% 14.0% 11.5% 33,715 34,404 34,852 34,739 33,803 34,174 36,012 30,963 29, % 4.9% 5.1% 4.1% 4.1% 4.0% 2.7% 3.0% 3.40% 4Q16 1Q17* 2Q17 3Q17 4Q17* 1Q18 2Q18 3Q18 4Q % 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Sales Gross profit Net profit 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

8 FY2018 Key Highlights Recent Developments FY2018 Financial Results Business Outlook

9 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 noncooperative country and was issued Yellow card warning by EU New fisheries legal framework, strong penalties Fish stock management measures Enhance traceability Thailand s Response 24/7 Monitor of commercia l vessels with VMS Ratificatio n of ILO conventio ns (P29, etc.) Capacity building Assistance to victims, complaint mechanism s Plants and vessels inspection s followed by prosecuti ons Registrati on for foreign workers 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, Thailand is the first country in Asia who has ratified this convention.

10 24 December, 2018 Thai Union, 39 other leading Thai firms launched the Global Compact Network Thailand (GCNT) with United Nations 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. 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

11 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. Aimed to drive growth and promote innovation in food industry through food tech startups, with a collective funding of USD 600mn. 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. Launched in 2015, the award is the 1 st global recognition for businesses which sets a gold standard to eradicate forced labor from supply chains. 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.

12 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.

13 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 THB/Share % 50% 53% 51% 50.7% 50.0% 51.3% 59.9% 50.5% 56.7% 57.2% 58.8%* 52.3% % * 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 Hence, dividend per share has been revised retroactively to reflect the par change of THB *Chicken of the Sea s net legal accruals impact not considered for the payout calculation for 1H18 dividend payment

14 FY2018 Key Highlights Recent Developments FY2018 Financial Results Consolidated Results Results by Business Unit Business Outlook

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16 Record quarterly top line 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% Strong GPM 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 Positive OP recovery Less favorable nonoperating items than last year ESCo business closure expenses 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 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).

17 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, Thai Union recorded expenses related to the business closure of ESCo amounted to THB 420mn in 3Q18 and THB 69mn in 4Q18.

18 2,400 Tuna raw material price (USD/ton) 2,200 2,000 1,800 1,600 1,400 1,200 1,000 1Q16 1,257 2Q16 1,503 3Q16 1,433 4Q16 1,508 1Q17 1,633 2Q17 1,763 3Q17 2,010 4Q17 2,033 1Q18 2Q18 1,577 1,667 3Q18 1,467 4Q18 1,408 1,280 Quarterly average Monthly average %Change QoQ %Change YoY 20.1% 19.6% -4.7% 5.2% 8.3% 8.0% 14.0% 1.2% -22.5% 5.7% -12% -4% 13.9% 36.5% 0.2% 44.1% 30.0% 17.3% 40.2% 34.8% -3.5% -5.4% -27% -31%

19 Sales THB mn 34,733 29, % YoY 33,775 34, % QoQ 36,012 USD mn 1, ,059 1,036 1,098 4Q17 1Q18 2Q18 3Q18 4Q18 121, , , , ,285 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Q18 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 sales was at THB 133.3bn, down 1.2% YoY. Excluding FX impact, 2018 sales would have improved 0.5% YoY. YoY Growth 7.6% 3.1% 7.3% 0.4% -1.2% 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

20 Revenue growth component THB mn +3.7% YoY 34, % -6% +24% +38% % 0% -3% 36,012 +1% -5% +8% +11% +6% +4.7% YoY Before currency impacts 4Q17 Tuna Sardine & Mackerel Salmon- Ambient Other seafood - Ambient Shrimp & related business 1 Lobster Salmon- Frozen Other seafood - Frozen Pet Care Value added & other products 2 USD effect EUR effect 4Q18 Remark: 1 Shrimp & related business comprises of frozen shrimp and shrimp feed. 2 Value-added & other products includes ready-to-eat products, frozen cephalopod, canned seafood, local products, bakery products, and sales of scraps 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)

21 100% Private Label 52% 80% 60% 40% 20% 0% THB 134.9bn Sales Breakdown by Geographic 13% 14% 13% 15% 15% 7% 6% 6% 6% 6% 7% 8% 8% 9% 11% 29% 29% 33% 31% 31% 44% 42% 39% 39% 38% Sales Breakdown by Business **FS - Private Label 6% Brand 36% **FS - Brand 6% Private Label 54% THB 133.2bn Others* Japan Domestic Europe USA Brand 35% **FS - Brand 6% **FS - Private Label 5% Remark: *Others represent Asia, Australia, Middle East, Canada, Africa and South America **FS stands for Food Service 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 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

22 GPM 25,000 20,000 15,000 10,000 Gross Profit THB mn 5,000-4, % 3, % +11.4% YoY 4, % 5,406 5, % -0.9% QoQ 14.9% 4Q17 1Q18 2Q18 3Q18 4Q18 19,020 19,501 19,927 19,310 18, % 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% -2.2% YoY 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).

23 OP Margin Operating Profit THB mn % % YoY 1, % 1, % -19.7% QoQ 1, % 4Q17 1Q18 0.3% 2Q18 3Q18 4Q18 10,000 SG&A% 11.1% 11.2% 10.4% 10.4% 10.7% 9,000 8,000 7,000 6,000 5,000 4,000 6,990 6,817 6,805 4,921 4, % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -5.1% YoY 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 SG&A ratio was at 10.7%, stable from 2017 level despite weak sales as TU continued to focus on cost efficiency SG&A expenses was down 1.2% YoY. 3,000 2,000 1, OPM 5.8% 5.4% 5.1% 3.6% 3.5% 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).

24 EBITDA Margin EBITDA THB mn 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2,686 2, % 7.6% +0.6% YoY 2, % 3, % -16.9% QoQ 2, % 4Q17 1Q18 2Q18 3Q18 4Q18 10,999 11,526 11,269 11,579 11, % 23.0% 18.0% 13.0% 8.0% 3.0% -4.9% 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 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 nonoperating items EBITDA Margin % 9.2% 8.4% 8.6% 8.3% 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).

25 Net Profit THB mn -13.4% YoY 14.0% 12.0% NPM 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1, % % 1, % 1, % QoQ 5.1% 1, % 4Q17 1Q18 2Q18 3Q18 4Q18 5,092 5,302 5,254 5,989 5, % 8.0% 6.0% 4.0% 2.0% 0.0% -13.4% YoY 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 oneoff item Lower equity income contribution from Indian Avanti Feeds Limited Tax credit reduced THB 194mn due to lack of French business tax credit recorded in 4Q Normalized net profit was down 13.4% YoY, mainly from a weak 1Q NPM 4.1% 3.0% 4.1% 5.1% 3.4% 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).

26 Adjusted NP Margin Adjusted Net Profit THB mn 1, % % -6.6% YoY 1, % -29.3% QoQ 1,731 1, % 3.4% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% Besides 4Q18 adjustments for Edinburgh Salmon Company (ESCo) business closurerelated expenses of THB69mn (4Q18) and TMAC investment impairment of THB 87mn, TU recorded no other adjustment item during 4Q18. 4Q17 1Q18 2Q18 3Q18 4Q18 0.0% 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).

27 Earning per Share (EPS)* THB -13.4% YoY % QoQ Q18 normalized EPS was at THB 0.26, down 13.4% YoY and 29.3% QoQ, along with the net profit trajectory normalized EPS was at THB 1.09, down 13.4% YoY 4Q17 1Q18 2Q18 3Q18 4Q % 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).

28 Red Lobster has contributed THB 193mn to net loss in 4Q18 THB mn Share of profit Other income Finance costs Income tax 4Q18 3Q18 2Q18 1Q18 4Q Q18 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. Net income EPS (THB/share)

29 Quarterly Free Cash Flow THB mn 3, ,369 2,186 1,052 4Q17 1Q18 2Q18 3Q18 4Q18 Cash Conversion Rate Q18 free cash flow of THB 1.1bn: Improved profitability, A more stabilized raw material prices, and An efficient inventory control Inventory value dropped THB 4.8bn 2018 free cash flow of THB 8.4bn, almost tripling 2017 Free Cash Flow Annual Free Cash Flow THB mn 5,544 8,401 2, Cash Conversion Rate Remark: Change definition of Free Cash Flow; 1 Cash Conversion Rate = FCF / EBIT; FCF= EBITDA-Changes in net working capital Change in other assets& Liabilities + non-cash expenses - CAPEX

30 Unit: THB mn ND/E 1.38x Kd = 3.21% Free Cash Flow** THB 8,401 mn Income tax paid and other investing & financing activities ND/E 1.35x Kd = 3.07% Normalized ND/E 1.29x*** 66,419 +3,699 62,913 +4, ,016 +1,376-3, Net Debt as of 31 Dec 2017 EBITDA Change in net working capital Change in other assets and liabilities Other noncash expenses CAPEX Tax payments Net interest paid Dividends paid Other Investing & Financing activities* Net Debt as of 31 Dec 2018 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

31 Interest-bearing debts of THB 64,499mn By Currency By Maturity EUR 1.0% 1.6% USD 0.9% Short-term loan 22% Current portion of long-term debt & finance lease 2% 21% 14% 2020 THB 98.1% 98.3% 2021 Long-term debt 76% 65% 2022 onwards THB 67.2bn THB 64.5bn Long-term loan by maturity THB 41,583mn

32 ROE % 7.8% 12.5% 16.2% 11.4% 128 INV Days Debt to EBITDA ,184 40,691 39,708 39,996 38,371 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 INV (THB mn) INV Day ROCE 2 7.2% 5.6% 8.0% 9.9% 7.7% Net WC ND/E x 1.35x 1.41x 1.40x 1.35x 43,744 41,665 41,652 41,229 39, x* 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 WC (THB mn) WC Day Remark: 1 ROE = Annualized quarterly net profit/ Average total shareholders equity 2 ROCE = 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 ventures 3 Net WC day = INV day + A/R day A/P day 4 ND/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

33 FY2018 Key Highlights Recent Developments FY2018 Financial Results Consolidated Results Results by Business Unit Business Outlook

34 2,400 2,200 2,000 Tuna raw material price (USD/ton) In January 2019, raw material prices closed at: Tuna - USD 1,280/ton Shrimp - THB 178/kg Salmon - NOK 64/kg 1,800 3Q17 4Q17 1,600 2Q17 1Q17 2,010 2,033 1Q18 2Q18 1,400 1,763 3Q18 4Q18 1,633 1,577 1,667 1,200 1,467 1,408 1,000 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Quarterly average Monthly average In 4Q18, average raw material prices closed at: Tuna USD 1,408/ton (-31.0% YoY, -4.0% QoQ) Shrimp THB 145/kg (-17.5% YoY, -8.4% QoQ) Salmon NOK 58/kg (+8.4% YoY, +0.2% QoQ) 235 Shrimp raw material price (60pcs/kg) (THB/kg) Salmon raw material price (NOK/kg) 185 1Q Q17 3Q17 4Q17 1Q18 2Q18 3Q Q Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan Q17 2Q17 2Q Q17 1Q18 4Q Q18 4Q Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Quarterly average Monthly average Quarterly average Monthly average Source: Thai Union Group and Bloomberg

35 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan USD/THB Continued depreciation from 2017 sees slight recovery in 2Q18 and 3Q18 1Q16 2Q16 3Q16 4Q16 1Q Q Q17 4Q Q18 2Q18 3Q18 4Q EUR/THB Q16 1Q Q16 3Q17 4Q16 4Q17 1Q18 3Q Q Q17 2Q Q Quarterly average Monthly average Quarterly average Monthly average GPB/THB 1Q16 2Q Brexit vote Source: Thai Union Group Some weakening since 1Q18, after remaining relatively stable since Brexit vote. 3Q Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q Q Quarterly average Monthly average Risk factor In January 2019, average FX rates closed at: USD/THB THB EUR/THB THB GBP/THB THB In 4Q18, average FX rates closed at: USD/THB THB (-0.4% YoY, -0.5% QoQ) EUR/THB THB (-3.5% YoY, -2.4% QoQ) GBP/THB THB (-3.5% YoY, -1.9% QoQ)

36 FY2018 Key Highlights Recent Developments FY2018 Financial Results Business Outlook

37 Total 2018 sales: THB 133,285 mn Ambient seafood Sales: THB 62,263 mn Frozen, chilled seafood and related Sales: THB 52,793 mn PetCare, value-added and others Sales: THB 18,229 mn Tuna Tuna slices Shrimp and related 1 Lobster PetCare Marine ingredients Sardine & mackerel Ambient and pouch salmon Frozen, chilled & smoked salmon Other seafood 2 Value-added 3 Other products 4 Sales Split 47% 45% 55% Brand Private label 40% 35% 65% Brand Private label 14% 92% 8% Brand Private label Remark: 1.Shrimp & related business includes frozen shrimp, lobster, shrimp feed and value-added shrimp 2.Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish 3.Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack 4.Other products include scrap, fishery and others 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).

38 Sales (THB million) Quantity (Tons) -1.5% YoY -1.4% YoY -10.8% QoQ -4.7% QoQ 20, , , , , , , , , , , , , , , , , , , , ,224 16,363 16,806 14,100 14,994 52% 58% 56% 56% 50% 48% 42% 44% 44% 50% 4Q17 1Q18 2Q18 3Q18 4Q18 Brand Private label 106, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,065 83,314 93,855 93,236 88,841 44% 51% 46% 47% 42% 56% 49% 54% 53% 58% 4Q17 1Q18 2Q18 3Q18 4Q18 Brand Private label Gross Profit Margin (Percent) 22% 21% 17% 15% 18% 19% 17% 17% 16% 14% 13% 12% 4Q17 1Q18 2Q18 3Q18 4Q18 17% 17% 16% Brand Total Private label 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 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).

39 Sales (THB million) 20, , , , , , , , , , , , , , , , , , , , ,961 35% 65% 11,149 34% +4.6% YoY 35% 36% +20.1% QoQ 12,962 13,031 15,651 35% 66% 65% 64% 65% 4Q17 1Q18 2Q18 3Q18 4Q18 Brand Private label Quantity (Tons) 114, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , % YoY +6.5% QoQ 62,565 67,552 62,253 63,443 53,201 69% 70% 70% 71% 67% 31% 30% 30% 29% 33% 4Q17 1Q18 2Q18 3Q18 4Q18 Brand Private label Gross Profit Margin (Percent) 11% 9% 10% 10% 10% 8% 10% 10% 8% 8% 8% 9% 7% 9% 6% 4Q17 1Q18 2Q18 3Q18 4Q18 Brand Total Private label 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 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).

40 Sales (THB million) Quantity (Tons) +18.0% YoY +14.2% YoY +23.9% QoQ +15.0% QoQ 6, , , , , , ,548 4,080 4,450 4,332 8% 8% 9% 9% 92% 92% 91% 91% 5,367 7% 93% Brand Private label 44, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,539 39,862 37,638 37,843 39,596 11% 11% 10% 9% 11% 89% 90% 91% 89% 89% Brand Private label 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Gross Profit Margin (Percent) 24% 21% 18% 16% 17% 4Q17 1Q18 2Q18 3Q18 4Q18 Total 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. 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).

41 30% Europe 39% United States and Canada 11% Thailand 20% Others (Asia, Australia, Middle East, Africa and South America)

42 Sales THB mn +10.6% YoY +18.7% QoQ 20,000 18,000 16,000 14,000 13,743 11,821 12,931 12,801 15,193 12,000 10,000 8,000 6,000 4,000 2,000-4Q17 1Q18 2Q18 3Q18 4Q18 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 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.

43 Sales THB mn +5.8% YoY % QoQ ,929 8,962 10,640 10,894 10, Q17 1Q18 2Q18 3Q18 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 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).

44 Sales THB mn % YoY % QoQ ,342 3,439 3,169 3,379 4, Q17 1Q18 2Q18 3Q18 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 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).

45 Sales THB mn % YoY % QoQ ,725 5,115 7,063 7,100 6, Q17 1Q18 2Q18 3Q18 4Q 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: 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).

46 Business segment Sales THB million Margin % Gross profit THB million Ambient seafood Tuna Sardine and mackerel Ambient and pouch salmon Frozen, chilled seafood and related Shrimp and related 1 Lobster Frozen, chilled and smoked salmon Other seafood 2 14, ,511 15, ,570 PetCare, value-added and others 5,367 PetCare ,275 Value-added and others 1 Total 36, ,356 THB mn Remark: 1 Shrimp & related business includes frozen shrimp, shrimp feed and value-added shrimp 2 Other seafood includes frozen cephalopod, crab, scallop, shellfish and other fish 3 Value-added business includes ready-to-eat products, maguro & cephalopod sashimi, local products, bakery products and snack 4 Other products include scrap, fishery and others Excluding ESCo business closure-related expenses of THB489mn (2H18) and TMAC investment impairment of THB 87mn (4Q18).

47 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

48

49 Stock Performance at a Glance Bloomberg/ Reuters TU TB/ TU.BK Major Shareholders As of 28 December, 2018 Share price (18 February, 2019) THB Historical price 52-week high THB week low THB Others 51.0% Chansiri Family 19.6% No. of paid up shares 4,771.8mn Par value THB 0.25 Market Capitalization THB 87.3bn THB 25 2,000 1, ,600 1, ,200 1, TU SET Source: SET and TU Niruttinano n Family 6.9% Social Security Office 7.2% Mitsubishi Corporatio n 7.3% Thai NVDR 8.0% Free float 67.4% Foreign ownership/ Foreign limit 32.4%/ 45.00% Dividend Policy Minimum 50% payout of our net profit with semi-annual payments DPS (THB per share) Period 2H18 1H18 2H17 1H17 2H16 1H16 DPS *The company changed the par value from THB 1 to THB 0.25 and registered with the Ministry of Commerce on 25 Dec 2014.

50 Consolidated (Unit: THB mn) 4Q18 4Q18/ 4Q18/ % % % 4Q17** 3Q18 4Q17 3Q18 to sales to sales to sales Change Change Sales 36, % 34, % 34, % 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, % 4, % 5, % 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) % % % -88.4% -67.9% Other income* % % % -44.7% -31.0% EBIT 1, % 1, % 2, % -3.4% -24.5% Finance cost (524) -1.5% (533) -1.5% (501) -1.5% -1.7% 4.6% EBT 1, % 1, % 2, % -4.1% -31.7% Tax % % (146) -0.4% -84.7% % Profit (Loss) from discontinued operarion (60) -0.2% (110) -0.3% (66) 0.0% -45.5% -9.1% Net income 1, % 1, % 1, % -13.0% -27.7% Net income (loss) attributable to: Equity holders of the Company 1, % 1, % 1, % -13.4% -29.4% Non-controlling interests of the subsidiaries % % % -9.5% -6.4% Earnings per share Basic earnings per share % -29.4% Diluted earnings per share % -29.4% Exchange rate THB/USD % -0.5% Remark: *Including share of income from investment in associates **3Q17 figures were restated mainly due to COGS reclassification

51 (Unit: THB mn) 2018 % to sales 2018/ 2017 Change Sales 133, % 134, % -1.2% Cost of sales (114,393) -85.8% (115,627) -85.7% -1.1% Gross profit 18, % 19, % -2.2% SG&A expenses (14,221) -10.7% (14,389) -10.7% -1.2% FX gain (loss) % 1, % -22.7% Other income* 2, % 2, % -9.5% EBIT 8, % 8, % -8.9% Finance cost (2,026) -1.5% (2,137) -1.6% -5.2% EBT 6, % 6, % -10.1% Tax (189) -0.1% % % Profit (Loss) from discontinued operarion (224) -0.2% (286) 0.0% 0.0% Net income 5, % 6, % -13.4% Net income (loss) attributable to: Equity holders of the Company 5, % 5, % -13.3% Non-controlling interests of the subsidiaries % % -0.1% Earnings per share Basic earnings per share % Diluted earnings per share % Exchange rate THB/USD % 2017** % to sales Remark: *Including share of income from investment in associates **2017 figures were restated mainly due to COGS reclassification

52 (Unit: THB mn) 2018 % to total assets 2017 % to total assets Change Cash and cash equivalents* 1, % % 94.6% Trade and other receivables - net 16, % 16, % -2.0% Inventories - net 38, % 43, % -11.1% Other current assets 3, % 2, % 40.1% Total current assets 59, % 62, % -5.7% Fixed assets 26, % 25, % 4.8% Goodwill and other intangible assets 29, % 30, % -4.7% Other non-current assets 27, % 27, % -1.4% Total Assets 141, % 146, % -2.9% Bank overdrafts and short-term loans 13, % 15, % -12.3% Trade and other payables 19, % 19, % -0.5% Current portion of long-term loans % % -82.7% Current portion of debentures 9, % 0 0.0% - Current portion of finance lease liabilities % % -17.5% Other current liabilities % % 74.2% Total current liabilities 43, % 36, % 18.7% Long-term loans from financial institutions 14, % 14, % -1.0% Debentures 27, % 36, % -25.3% Finance lease liabilities - net of current portion % % -26.4% Other non-current liabilities 10, % 10, % -1.4% Total Liabilities 95, % 98, % -2.7% Non-controlling interests of the subsidiaries 3, % 3, % -13.5% Total Shareholders Equity 46, % 48, % -3.2% Total liabilities and shareholders equity 141, % 146, % -2.9% Remark: *Including short-term investments

53 Consolidated (Unit: THB mn) Change Profit before income tax 3,664 6,362 (2,698) Adjustments for depreciation & amortisation expenses 2,989 2, 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 (158) Exchange gain (loss) on cash and cash equivalents (21) 0 (21) Cash and cash equivalents - closing balance 1, CAPEX (4,898) (5,505) 607 Management Est. Free Cash Flows* 8,401 2,938 5,463 Remark: *Figures as reported in February 2019

54 (in mthb) Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Sales 30,958 34,400 34,847 34, ,937 29,329 33,775 34,169 36, ,285 Cost of sales 26,376 29,428 29,896 29, ,628 25,941 29,034 28,762 30, ,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, , ,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 , Other income , ,036 Share of profit 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 , ,025 Tax 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 Net income before minority interest 1,523 1,541 1,847 1,550 6, ,479 1,797 1,347 5,589 Minority interest Net income 1,432 1,421 1,723 1,413 5, ,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%

55 thaiunion.com investor.thaiunion.com Line