fy2018 analyst meeting · the information contained in our presentation is intended solely for your...
TRANSCRIPT
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
FY2018 Key Highlights
Recent Developments
FY2018 Financial Results
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
FY2018 Key Highlights
Recent Developments
FY2018 Financial Results
• 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
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 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.
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).
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*
FY2018 Key Highlights
Recent Developments
FY2018 Financial Results
• 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)
Quarterly average Monthly average
1Q172Q17
3Q17 4Q17
1Q18 2Q18
3Q18 4Q18
212169 176 175 183
141 158 145
35
85
135
185
235
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19
Shrimp raw material price (60pcs/kg) (THB/kg)
Quarterly average Monthly average
1Q17
2Q17 3Q17 4Q17 1Q182Q18 3Q18 4Q18
66 6759
5360
69
58 58
40
50
60
70
80
90
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19
Salmon raw material price (NOK/kg)
Quarterly average Monthly average
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
Quarterly average Monthly average
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
Quarterly average Monthly average
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
Quarterly average Monthly average
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
FY2018 Key Highlights
Recent Developments
FY2018 Financial Results
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
Sales: THB 62,263 mn
Ambient seafood
Sales: THB 18,229 mn
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
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).
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).
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
Gross Profit Margin (Percent)
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
Gross Profit Margin (Percent)
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).
(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
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).
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: 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).
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%