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We are the right choice!
FROZEN BUSINESS
TUNA BUSINESS
PETFOOD BUSINESS
FEED BUSINESS
DISTRIBUTION
BUSINESS
Asian Seafoods Coldstorage PLC.Q3 Opportunity Day– 21st November 2017
DisclaimerThis presentation includes forward-looking statements and numbers that are subject to risks and
uncertainties including, in particular, statements about future events, future financial performance, plans,
strategies, expectations, prospects, competitive environment, regulation and supply and demand.
ASIAN, Asian Seafoods Coldstorage PLC., based these forward-looking statements on its views with
respect to future events and financial performance. Actual performance described herein could differ
materially, better or worse, from that projected in the forward-looking statement due to the inherent
uncertainty of estimates, forecasts and projections. Readers should not put undue reliance on any
forward-looking statements.
Forward-looking statements represent estimates and assumptions only as of the date that they were
made. The information contained in this presentation is subject to change without notice and ASIAN
does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
2Q3 Opportunity Day– 21st November 2017
ASIAN Overview
ASIAN Key Financial
ASIAN Development by Segment
ASIAN Strategy
Agenda
3Q3 Opportunity Day– 21st November 2017
ASIAN OVERVIEW
Asian Seafoods Coldstorage Public Company
Limited& its Subsidiaries
ASIAN Link
5Q3 Opportunity Day– 21st November 2017
4.6 billion baht1.3 billion baht 1.6 billion baht 1.2 billion baht 0.4 billion baht
2016 Business Size
2014• Asian Seafood
Coldstorage (Sriracha)
Co., Ltd. were closed
2006• Acquired Asian Feed
Co., Ltd.
• Founded Asian
Seafood Coldstorage
(Sriracha) Co., Ltd.
2000s 2010s 2015s1964Starting
Business
1993• Founded Asian
Seafoods
Coldstorage
(Suratthani) Co.,
Ltd.
1994• Registered
Asian
Seafoods
Coldstorage
PLC.
2005• Founded Asian
Alliance
International Co.,
Ltd.
2012• Founded Asian
Food Co., Ltd.
• EMS Outbreak
in Shrimp
2013• AAI invested in
Pet Food Line
• Step into ready-
to-cook/eat meal
2015• Quadruple Growth
in Pet Food
• Turnaround of
Asian Feed Co.,
Ltd.
2016• Implement ERP
• Sustainable sourcing
& Good Labor
Practice
• Established Nutrition
Database in Pet Food
& Feed
• Ambition 2020 were
set
2016s
Major Events
6Q3 Opportunity Day– 21st November 2017
ASIAN’s Sustainability
o Product Quality and Services
o Human Development and Human Value
o Commit avoiding to involve in illegal fishing, procuring,
importing, exporting, transiting and distributing aquatic life
and products obtained from illegal fishing and labor, and
human trafficking.
o Anti-Corruption Policy
7Q3 Opportunity Day– 21st November 2017
ASIAN Key Financial
Asian Seafoods Coldstorage Public Company
Limited& its Subsidiaries
Q3/17 Sales growth YoY
9Q3 Opportunity Day– 21st November 2017
o Sales revenues increased 1% y.o.y. to 2,360 million baht (LY 2,336)
o Lower Squid and Tuna revenues, FX impact -4%
o Sales Revenues for the first three quarters increased 12.9% to 7,125 million
baht (LY 6,310)
o Gross Profit in 3Q17 increased 47% y.o.y. to 260 million baht (LY 177)
Market Diversity
10
o USA & CANADA sales
mostly are Shrimp and Pet
Food
o EU sales mostly are Squid
and Pet Food
o Japan sales mostly are
Fish, Sashimi, and Pet
Food
o Middle East Sales are
mostly Tuna
o Domestic sales are mostly
Aquaculture Feed
Q3 Opportunity Day– 21st November 2017
Q3/17 Profit Improvement
11Q3 Opportunity Day– 21st November 2017
o Gross Profit margin was
11.0% (LY 7.6%)
o Better results in shrimp,
petfood, feed. Negative
FX impact
o Net Profit in 3Q17 was a
record 112 million baht
(LY 10).
o Net Profit for the first three
quarters of 2017
amounted to 312 million
baht (LY 30)
Q3/17 Working Capital
12
*Net WC Days = AR Days + INV Days – AP Days
**ROE= last 4 quarter net profit/Average total shareholders’ equity
Q3 Opportunity Day– 21st November 2017
Q3/17
Leverage &Debt Structure
13Q3 Opportunity Day– 21st November 2017
o Balance sheet ratios
remained stable.
o Net debt increased to
3,471 million baht as
a result of the higher
working capital.
o 1,500 million LT Loan
concluded
ASIAN
Development by Segment
Asian Seafoods Coldstorage Public Company
Limited& its Subsidiaries
Frozen Business
Frozen Business of Asian Group
comprises of 3 plants
o Asian Seafoods Coldstorage
Public Company Limited (Klongtoey)
o Asian Seafoods Coldstorage
Public Company Limited (Samutsakorn)
o Asian Seafoods Coldstorage (Suratthani) Company Limited
Frozen Business
16Q3 Opportunity Day– 21st November 2017
Frozen Q3/17
17Q3 Opportunity Day– 21st November 2017
o Sales revenues decreased with 31% y.o.y. to 859 million (LY 1,136)
o Squid shipments were lower as a result of exceptionally good catch in the
southern hemisphere of lower grade species which shifted demand away
from higher priced Thai squid.
o Value added Shrimp sales were down compared to last year as a result of
quality issues with black tiger shrimp suppliers.
Tuna Business
Tuna Business
o Operated by Asian Alliance
International Co., Ltd., located in
Samutsakorn province w/ quite
new facilities compare to others.
o Traditional tuna product in cans
and pouches, and Value added
product (ready-to-eat) such as
Tuna with rice meal.
o No branded, more flexible in tuna
high price seasons.
19Q3 Opportunity Day– 21st November 2017
Tuna Q3/17
20Q3 Opportunity Day– 21st November 2017
o With tuna prices increased around 40% y.o.y. demand was weak and sales
revenues were 13% lower y.o.y. to 244 million baht (LY 282) due to lower
volumes processed.
o Prices have eased in Q4 which causes a slightly more active market, but we
remain prudent and maintain a value over volume approach.
Petfood Business
Petfood Business
o Also operate by Asian Alliance
International Co., Ltd.
o Serve as a “co-developer” who
understand customers and provide
ideas for new products in variety of
packaging.
o Target premium brand owners and
private labels showing continued
growth.
o Process Fishmeal using non-IUU
by-products which benefit shrimp
products traceability.
22Q3 Opportunity Day– 21st November 2017
Petfood Q3/17
23
* Volumes include inter company transactionQ3 Opportunity Day– 21st November 2017
o Sales revenues again grew strongly with 67% y.o.y. to 735 million baht (LY
439) on the back of existing and new contracts. Volumes grew 34%*, mostly
in petfood, and product mix further improved compared to last year.
o A new plastic cup line was commissioned in September and working
satisfactory. It is expected that the petfood will continue at a similar volume
into 4Q2017.
Aquaculture Feed
Business
Aquaculture Feed
Business
25
o Asian Feed Co., Ltd. located in
Petchaburi.
o Farm research facilities in Suratthani
for both product quality and new
farm model test.
o Advanced laboratory & academic
expertise to provide water quality
analysis inspection, aquatic animal
quality evaluation, food quality
development, technique advisory for
rearing and solution for diseases in
aquatic animals.
Q3 Opportunity Day– 21st November 2017
Aquaculture feed Q3/17
26Q3 Opportunity Day– 21st November 2017
o Feed sales revenues strongly increased 36% y.o.y. mainly due to increased shrimp
feed volume. This was higher than the market growth and further improved our
market share.
o The outlook is a continuous growth along with the increase of Thai farmed shrimp
volume. Margins were satisfactory and the quality of accounts receivable was stable.
Distribution
Business
Distribution
Business
o Asian Food Co., Ltd.
engages in imported frozen
food products and delivered
to Thai wholesalers, modern
retail and restaurant chains.
o Our cold storage in Bangkok
and Samutsakorn are also
the hub for our food
distribution business.
28Q3 Opportunity Day– 21st November 2017
Distribution Q3/17
o The distribution activities were stable with a slightly higher valued sales mix.
Profitability was satisfactory.
29Q3 Opportunity Day– 21st November 2017
2017 Sales Target
30
Sales (Billion Baht) 2016 YTD 2017 2017 Target
Update Frozen 4.6 2.8 4.0
Tuna 1.4 0.8 1.1
Pet Food 1.6 2.0 2.7
Aqua Feed 1.2 1.2 1.6
Dirtribution 0.4 0.4 0.6
Total Asian Group 9.2 7.1 10.0
Consolidate GP 8.4% 11.2% 11.0%
Q3 Opportunity Day– 21st November 2017
Q4 Outlook
o Strong Pet Food and Feed sales
o No recovery Squid before 1Q18
o Higher Tuna volumes vs Q3
ASIAN AMBITION 2020
Asian Seafoods Coldstorage Public Company
Limited& Its Subsidiaries
Sales
(Billion baht) 2015 2016 Key Strategy/Success2020
Target
Frozen 3.6 4.6 Shrimp & VAP 6.0
Tuna 1.2 1.4 VAP 1.5
Pet Food 1.6 1.6 Co-Developer, Customer Relation 4.0
Feed 1.1 1.2 Sustainability, Fishmeal Substitution, Dryfeed 2.0
Distribution 0.4 0.4 Acquisition 1.0
Total ASIAN 7.9 9.2 14.5
Consolidated GP 8.2%* 8.4% 10.0-12.0%
*2015 GP excluding Fx Benefit
Ambition 2020
32Q3 Opportunity Day– 21st November 2017
Ambition 2020 - Update
• 2020 sales target based on utilizing existing capacities (more or
less) and business model
- Capex < Depreciation
• Q1 2018 update on business model and expansion:
- Stronger position in sales and distribution in our key-markets
- Leverage on ‘Quality’ in Frozen (4-star)
- Investments in Petfood opportunities
- Investments in efficiency and overhead reduction
- ERP development
34Q2 CNS Corporate Access– 17th October 2017
Thanks!Any questions?
Investor Relations Contact
Email: [email protected]
Tel: (66) 034-845575-91 ext. 5370
Presentation is available at
www.asianseafoods.co.th
Q3 Opportunity Day– 21st November 2017
Appendix
Asian Seafoods Coldstorage Public Company
Limited& Its Subsidiaries
Management Team
Mr.Somsak Amorrattanachaikul
Chief Executive Officer
Mr.Somchai Amorrattanachaikul
Senior Managing Director
Mr.Suriya Prasatbuntitya
Executive Vice PresidentMr.Hendrikus (Rik) Van
Westendorp
Executive Vice President &
Chief Financial officer
Mr.Aekarat Punnasung
MD-Asian Mr. Yasuto Togashi
MD- Asian Alliance
Mrs.Suree Jangsawat
MD-Asian SuratMr.Wallop Lomlimp
MD-Asian Feed
A-1Q3 Opportunity Day– 21st November 2017
Q3/17 Income Statement
A-2
Unit ('000 baht) Q3-2016
% to
Sales Q3-2017
% to
Sales YTD 2016
% to
Sales YTD 2017
% to
Sales
Sales 2,333,825 99.9% 2,358,700 99.9% 6,303,450 99.9% 7,119,652 99.9%
Cold storage service income 2,175 0.1% 1,757 0.1% 7,036 0.1% 5,689 0.1%
Cost of Sale and service (2,159,418) -92.4% (2,100,736) -89.0% (5,806,873) -92.0% (6,329,518) -88.8%
Gross Profit 176,582 7.6% 259,721 11.0% 503,613 8.0% 795,823 11.2%
Other income 22,027 0.9% 43,437 1.8% 46,815 0.7% 108,517 1.5%
SG&A expenses (155,222) -6.6% (159,764) -6.8% (411,380) -6.5% (497,378) -7.0%
EBIT 43,387 1.9% 143,394 6.1% 139,048 2.2% 406,962 5.7%
Finance cost (39,240) -1.7% (36,771) -1.6% (114,107) -1.8% (101,432) -1.4%
EBT 4,147 0.2% 106,623 4.5% 24,941 0.4% 305,530 4.3%
Income tax expenses 5,521 0.2% 5,329 0.2% 4,795 0.1% 6,625 0.1%
Profit for the year 9,668 0.4% 111,952 4.7% 29,736 0.5% 312,155 4.4%
Earning per share 0.03 0.31 0.08 0.86
Q3 Opportunity Day– 21st November 2017
Unit ('000 baht) Sep 2017% to Total
Asset2016
% to Total
AssetChange
Assets
Current assets
Cash and cash equivalents 67,180 0.98% 66,510 1.05% 1.01%
Trade and other receivables 943,025 13.71% 1,195,140 18.89% -21.10%
Short-term loans to subsidiaries - 0.00% - 0.00% n/a
Inventories 3,020,000 43.91% 2,197,578 34.74% 37.42%
Other current assets 43,681 0.64% 33,747 0.53% 29.44%
Total current assets 4,073,886 59.23% 3,492,974 55.22% 16.63%
Non-Current assets
Investments in subsidiaries - 0.00% - 0.00% n/a
Investment properties 40,301 0.59% 40,301 0.64% 0.00%
Property, plant and equipment 2,640,567 38.39% 2,675,031 42.29% -1.29%
Other non-current assets 122,814 1.79% 117,288 1.85% 4.71%
Total non-current assets 2,803,682 40.77% 2,832,620 44.78% -1.02%
Total assets 6,877,568 100.00% 6,325,595 100.00% 8.73%
Liabilities and shareholders' equity
Current Liabilities
Bank overdrafts and short-term loans from banks 1,262,552 18.36% 1,386,617 21.92% -8.95%
Trade and other payables 762,269 11.08% 686,442 10.85% 11.05%
Current long-term loans and lease liabilities 789,062 11.47% 476,082 7.53% 65.74%
Other current liabilities 36,688 0.53% 38,577 0.61% -4.90%
Total current liabilities 2,850,571 41.45% 2,587,718 40.91% 10.16%
Non-current liabilities
Long-term loans 1,418,917 20.63% 995,374 15.74% 42.55%
Long-term debentures - 0.00% 349,508 5.53% -100.00%
Finance lease liabilities 903 0.01% 1,307 0.02% -30.91%
Other non-current liabilities 173,796 2.53% 174,218 2.75% -0.24%
Total non-current liabilities 1,593,616 23.17% 1,520,407 24.04% 4.82%
Total liabilities 4,444,187 64.62% 4,108,126 64.94% 8.18%
Total shareholders' equity 2,433,381 35.38% 2,217,469 35.06% 9.74%
Total liabilities and shareholders' equity 6,877,568 100.00% 6,325,595 100.00% 8.73%
Q3/17 Statement of Financial Position
A-3Q3 Opportunity Day– 21st November 2017
Q3/17 Statement of Cash Flow
A-4
Units: (‘000 baht) 9mth 2017 9mth 2016 Change
Profit (loss) before tax 305,530 24,941 280,589
Depreciation & Amortisation 137,392 143,724 (6,332)
Other adjustments to reconcile profit (loss) before tax to net cash (19,831) 35,564 (55,395)
Loss (gain) on exchange rate (10,045) 10,060 (20,105)
Interest expense (income) 98,771 113,867 (15,096)
Profit from operating activities before changes in operating assets and liabilities 511,817 328,156 183,661
Decrease (increase) in operating assets (545,109) (247,604) (297,505)
Increase (decrease) in operating liabilities 26,281 112,610 (86,329)
Cash from (used in) operating activities (7,011) 193,162 (200,173)
Cash paid for interest (103,505) (111,604) 8,099
Cash paid for income tax (4,610) (4,124) (486)
Net cash from (used in) operating activities (115,126) 77,434 (192,560)
Net cash from (used in) investing activities (107,035) (98,781) (8,254)
Net cash from (used in) financing activities 222,831 14,044 208,787
Net increase (decrease) in cash and cash equivalents 670 (7,303) 7,973
Cash and cash equivalents at beginning of period 66,510 51,827 14,683
Cash and cash equivalents at end of period 67,180 44,524 22,656
Q3 Opportunity Day– 21st November 2017