Asian Seafoods Coldstorage PLC. · o Diverse range of Product and Market o Larger Contribution from Pet food o Profitability Improvement o Leverage decline, even still high o Adequate

Asian Seafoods Coldstorage PLC.Q4 Opportunity Day–06th Mar 19

We are the right choice!

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.

2Q4 Opportunity Day–06th Mar 19

Agenda

ASIAN Overview

ASIAN Key Financial

ASIAN Development by Segment

ASIAN Strategies Updated

ASIAN 2019 Target


ASIAN OVERVIEW

Asian Seafoods Coldstorage Public Company

Limited& its Subsidiaries

ASIAN

SURAT AAI AFEED AFOOD AGS

THAIYA AGE MARIA

Asian Business 2018

Frozen

Business

Distribution

BusinessTuna &

Petfood

Business

Aquaculture

Feed

Business

100% 100% 100%

60%

100% 100%

100%

Brand&Marketing

Services

5

Frozen & Distribution

Business

Asian Seafood Coldstorage PLC.

Asian Seafood Coldstorage

(Surattani) Co., Ltd.Asian Alliance

International Co., Ltd.

Asian Group

Services Co., Ltd.

Inter Petrina Co., Ltd.

Asian Group

SCS Europe GmbH

Asian Feed Co., Ltd. Asian Food Co., Ltd.

40%

Thaiya Corporation

(Shanghai) Co., Ltd.

Inter Petrina

Co., Ltd..

Q4 Opportunity Day–06th Mar 19

6

Asian Product-Mix & Market

Diversification


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


2006• Acquired Asian

Feed Co., Ltd.,

diversify into

Shrimp Feed

Business

2010s 2015s 2016s

1964Starting

Business

in Frozen

Food

1993• Founded Asian

Seafoods Coldstorage

(Suratthani) Co., Ltd.

In order to expand

Frozen Food Business

1994• Registered Asian

Seafoods

Coldstorage PLC.


Alliance

International Co.,

Ltd., diversify into

Tuna Business

2012• Founded Asian Food

Co., Ltd., domestic

trader company of the

group

• EMS Outbreak in

Shrimp

• Asian Feed invested

in Extruder to

diversify into Fish

Feed Business

2013• AAI invested in

Premium Pet

Food Line

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

2018s

Major Events

8

2017• Expand Pet

Food Capacity

• Rapid Growth in

Pet food & Aqua

Feed

• Launch concept

“Closer to

consumer and

efficiency” and

set up strategies.


Group Services Co.,

Ltd.

• Invest in Asian

Group SCS Europe

GmbH

• Invest in Inter Petrina

Co., Ltd. for “Maria”

brand.

• Founded Thaiya

Corporation

(Shanghai) Co., Ltd.

in CN focus on


Credit Rating

TRIS Key Rating Consideration:

o Lengthy Track Record

o Diverse range of Product and Market

o Larger Contribution from Pet food

o Profitability Improvement

o Leverage decline, even still high

o Adequate Liquidity

Base Assumption:

o 2018 Revenue drop 3%

o Revenue increase 4% each during 2019-2021

o Operating Margin before depreciation is 6-7%

o Investment 1,000 MB during 2019-2021


ASIAN Key Financial



Q4/18 Highlights

o Revenues in Q4/2018 were 2,565 million

baht (-1.9% y.o.y.) due to lower volumes

o Q4/2018 Operational EBIT was more

than doubled y.o.y to 139 million baht.

o Net profit was 97 million baht (-8.6%

y.o.y.)

o Non-recurring consists of sillago lines re-

location, obsolete pet food packaging

and allowance for doubtful debts.

o Financial cost decreased almost 17% to

only 30 MB y.o.y due to lower debt.

o Deferred Tax Asset were booked since

Q4 2017 and has been adjusted along

the year. Expected tax rate 2019 should

be closed to 15%

11

('000'000 Baht) Q4 2017 Q4 2018 Q3 2018

Sales 2,615 2,565 2,468

Gross Profit 224 286 310

SG&A (156) (147) (154)

EBIT from Operation 62 139 156

Other Incom 19 19 23

fxGain (loss) 21 11 12

Non-recurring (6) (44) (12)

EBIT 101 126 180

Financial Cost (36) (30) (34)

EBT 65 96 146

Taxes 41 1 1

Net Profit 106 97 147

Q4/2018 Profitability Analysis


2018 Highlight

o Revenues for the full year were 9,649

million baht, a y.o.y. decrease of 0.9%

due to lower aqua-feed sales and

weaker USD, mostly off-set by higher

pet food sales

o Gross Profit (10.4%) and EBT (3.7%) for

the year in line with last year

o Net profit for the year 362 million baht,

13.3% down y.o.y due to lower tax-

credits.

o Cashflow from Operation was at 1,147

millions baht..

12

('000'000 Baht) 2017 2018

Sales 9,740 9,649

Gross Profit 1,020 1,007

SG&A (598) (621)

EBIT from Operation 422 387

Other Incom 75 79

fxGain (loss) 73 40

Non-recurring (62) (15)

EBIT 508 490

Financial Cost (137) (132)

EBT 371 358

Taxes 47 5

Net Profit 418 362

FY 2018 Profitability Analysis


Q4/18 Sales

13

o Overall volumes* decreased y.o.y. 12% to 22,751 mt, while sales revenues remained flat.

o During the quarter the USD hovered around 32.4 baht/USD.

o Gross profit was 286 million baht, which was an improvement compared to the same

quarter in the previous year (224 million baht).

* Volumes include inter company transactionQ4 Opportunity Day–06th Mar 19

Profitability

14

o Gross Profit margin was 11.1 % versus

8.6% in the same quarter last year.

o Gross Profit margin for the year 2018

increase to 10.4, in line with last year and

2018 target.

o Net profit in Q4/18 was 97 million baht.


USD vs. Baht movement

Working Capital

15

*Net WC Days = AR Days + INV Days – AP Days

**ROE= last 4 quarter net profit/Average total shareholders’ equity


Leverage &Debt Structure

16

o D/Equity ratio

improved to 1.4 due

to lower working

capital financing and

higher retained

earnings.

o Net debt decreased

to 2,863 million baht


ASIAN

Development by Segment



YTD Volume by Segment

18

Species 2017 2018 change

Shrimp 6,136 7,222 18%

Squid 4,728 4,683 -1%

Silago 1,081 1,047 -3%

Other 1,226 1,182 -4%

Total Frozen 13,171 14,134 7%

Aqua Feed 52,645 38,489 -27%

Tuna 8,479 7,442 -12%

Petfood 20,664 22,608 9%

Distribution 8,045 7,260 -10%

Volume (mt)


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.

o Annual production capacity of 38,000

tons of FG (net weight)


o Volume* in Q4 were 15% down compared to the year before due to lower fishmeal sales and

some customers undertook a once-off inventory reduction due to shorter lead-times.

o Q4 Sales revenues were up 2% y.o.y., reflecting higher average sales price due to improved

product mix. Profitability was satisfactory.

o Product line extensions were commissioned in January which will contribute volumes in

2019.

o For the full year, volume was up 9% and sales revenues were up 16% y.o.y.

o A next capacity increase may be required in Q3 2019.

Petfood Performance

21* Volumes include inter company transaction


o Own R&D

o Brand development – Monchou, Maria

o China sales and logistics platform

o Aggressive Marketing Function – Asian Europe, Thaiya

Petfood Development


o Automation

o Cost Reduction

o Own R&D

o Monchou Roll out in TH and CN

o Continuing Improve Customer Portfolio

o Dry Feed Capacity

Petfood Further Actions


Tuna Business

Tuna Businesso 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.

o Capacity of around 17,500 tons of

finished product per year.


Tuna Performance

26

o In Q4, volume* decreased 19% y.o.y to 1,856 mt, but revenues remained

unchanged at 268 million.

o For the year, tuna volumes decreased 12% compared to the previous year

with sales revenues stable at 1,023 million baht.

o No long or short position in tuna inventories are maintained and order intake

is selective. Profitability of human tuna improved compared to the year

before.


Frozen Business

Frozen Business of Asian Group

comprises of 2 plants

(Re-location sillago line to Samut Sakorn since

Oct 2018)

o Asian Seafoods Coldstorage

Public Company Limited (Samutsakorn)

capacity of 14,000 tons finished product per year

o Asian Seafoods Coldstorage

(Suratthani) Company LimitedCapacity of 10,000 tons finished product per year

Frozen Business


Frozen Performance

29

o Volume* increased 8%, but at lower market prices of shrimp compared to the year

before, mainly driven by shrimp sales, but squid sales also picked up compared to

the previous year.

o Profitability improved compared to the year before, mainly due to better performance

in squid.

o For the full year volumes were up 7% and sales revenues 3% down y.o.y. as a result

of lower market prices.

o In October the production of sillago was moved to the Samut Sakhon plant. The

Klong Toei facility remains in use as cold storage and logistics center.


o VAP product portion increased

o Sales organization re-structured

o Move Sillago processing to Samut Sakhon

o Combine Cold Storage capacity

Frozen Developments


o Cost reductions by Automation

o VAP product development in Shrimp and Squid.

o Seabass product development.

o Brand Development for Domestic markets

Frozen Further Actions


Aquaculture Feed

Business

Aquaculture Feed

Business

-33

o Asian Feed Co., Ltd. located in

Petchaburi. Production capacity of

60,000 tons of sinking pellet and 36,000

tons of floating pellet per year

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.


Aquaculture feed Performance

34

o Volume* in aqua feed was y.o.y. 18% down in Q4 and sales was 16% down compared

to the year before. This was a slight improvement compared to the previous quarters.

o For the full year volumes* and sales were down 27% and 25% respectively.

o In December a nutritionist panel was established with the objective to continuously

improve performance and costing of the feeds. It is expected this will improve margins

throughout the course of 2019.

o Allowances for accounts receivable were in line with expectations and credit and

collection are tightly managed.* Volumes include inter company transactionQ4 Opportunity Day–06th Mar 19

o Formula development.

o Fry Supply.

o Credit Management.

Aquaculture Feed Actions


Distribution

Business

Distribution

Businesso 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.


Distribution Performance

o Slightly decrease of 4% y.o.y. but with 13% higher sales revenues as

a result of higher valued product mix.

o For the year sales revenues were down 15% but with stable profits.


ASIAN Strategies Updated


Limited& Its Subsidiaries

40

Strategic Actions Updates

o Brand Development –

Monchou, Maria, ….

o China sales and distribution

platform – Thaiya and

acquisition pipeline

o Operational efficiency –

overall business

o Frozen seafood VAP& less

volatility

o R&D and Products

Development

o Fry supply


▷VDO

ASIAN 2019 Target



2019 Target

43

Sales (Billion Baht)* 2016 2017 2018 %Growth 2019 Target

Target

Growth

Frozen 4.6 4.1 4.1 1% 4.0 -2%

Tuna 1.4 1.1 1.0 -7% 1.1 12%

Pet Food 1.6 2.7 3.1 17% 3.6 16%

Aqua Feed 1.2 1.5 1.1 -28% 1.3 20%

Dirtribution 0.6 0.7 0.6 -9% 0.6 0%

Inter-company sales (0.2) (0.4) (0.4)

Total Asian Group 9.2 9.7 9.6 6% 10.7 11%

Consolidate GP 8.4% 10.5% 10.4% 10.0-12.0%*Actual sales revenue by business segment partly include inter-company sales


2019 Investment Budget


Project Name & Details 2019

Pet Food Line 50

Frozen Food VAP Line 30

Automatic Filler Machine 10

Automatic WH 240

JV Investment 15

Dry food Capacity 100

Usual Machine and Equipment Replacement 100

Total 545

Thanks!Any questions?

Investor Relations Contact

Email: [email protected]

Tel: (66) 034-845575-91 ext. 5370

Presentation is available at

www.asianseafoods.co.th

Appendix



Management Team

Mr.Somsak Amorrattanachaikul

Chief Executive Officer

Mr.Somchai Amorrattanachaikul

Senior Managing DirectorMr.Suriya Prasatbuntitya

Executive Vice President

Mr.Hendrikus (Rik) Van Westendorp

Executive Vice President &

Chief Financial officer

Mr.Aekarat Punnasung

MD-Asian Alliance Mrs.Suree Jangsawat

MD-Asian SuratMr.Wallop Lomlimp

MD-Asian and Asian Feed

A-1Q4 Analyst Meeting–22nd Feb 19

2018 Income Statement


Unit ('000) Q4-2017

% to

Sales Q4-2018

% to

Sales 2017

% to

Sales 2018

% to

Sales

Sales 2,613,183 99.9% 2,562,383 99.9% 9,732,835 99.9% 9,635,185 99.9%

Cold storage service income 1,647 0.1% 2,789 0.1% 7,336 0.1% 14,297 0.1%

Cost of Sale and service (2,390,993) -91.4% (2,279,406) -88.9% (8,720,511) -89.5% (8,642,192) -89.6%

Gross Profit 223,837 8.6% 285,766 11.1% 1,019,660 10.5% 1,007,290 10.4%

Other income 39,336 1.5% 30,306 1.2% 147,853 1.5% 148,811 1.5%

SG&A expenses (162,279) -6.2% (188,507) -7.3% (659,657) -6.8% (659,619) -6.8%

Share of loss from JV (1,941) (6,501)

EBIT 100,895 3.9% 125,624 4.9% 507,857 5.2% 489,981 5.1%

Finance cost (35,830) -1.4% (30,003) -1.2% (137,262) -1.4% (132,329) -1.4%

EBT 65,065 2.5% 95,621 3.7% 370,595 3.8% 357,652 3.7%

Income tax expenses 40,803 1.6% 1,121 0.0% 47,428 0.5% 4,583 0.0%

Profit for the year 105,868 1.1% 96,742 1.0% 418,023 4.3% 362,235 3.8%

Earning per share 0.20 0.18 0.77 0.67

2018 Statement of Financial Position


Unit ('000 baht) 2018

% to Total

Asset 2017

% to Total

Asset Change

Current Asset

Cash and cash equivalents 96,775 1.48% 38,640 0.57% 150.45%

Trade and other receivables 1,125,283 17.20% 1,190,890 17.49% -5.51%

Inventories 2,354,445 35.99% 2,682,146 39.38% -12.22%

Other current assets 71,324 1.09% 36,369 0.53% 96.11%

Total current assets 3,647,827 55.76% 3,948,045 57.97% -7.60%

Non-Current assets

Loan to JV 1,670

Investment properties 40,301 0.62% 40,301 0.59% 0.00%

Property, plant and equipment 2,689,102 41.11% 2,659,560 39.05% 1.11%

Other non-current assets 162,848 2.49% 162,777 2.39% 0.04%

Total non-current assets 2,893,921 44.24% 2,862,638 42.03% 1.09%

Total assets 6,541,748 100.00% 6,810,683 100.00% -3.95%

Current Liabilities

Bank overdrafts and short-term loans from banks 1,060,961 16.22% 1,284,125 18.85% -17.38%

Trade and other payables 697,277 10.66% 608,936 8.94% 14.51%

Current long-term loans and lease liabilities 488,680 7.47% 869,331 12.76% -43.79%

Other current liabilities 44,232 0.68% 46,586 0.68% -5.05%

Total current liabilities 2,291,150 35.02% 2,808,978 41.24% -18.43%

Non-current liabilities

Long-term loans 1,312,143 20.06% 1,289,236 18.93% 1.78%

Long-term debentures - 0.00% - 0.00% n/a

Finance lease liabilities 977 0.01% 1,432 0.02% -31.77%

Other non-current liabilities 172,329 2.63% 172,447 2.53% -0.07%

Total non-current liabilities 1,485,449 22.71% 1,463,115 21.48% 1.53%

Total liabilities 3,776,598 57.73% 4,272,093 62.73% -11.60%

Total shareholders' equity 2,765,150 42.27% 2,538,591 37.27% 8.92%

Total liabilities and shareholders' equity 6,541,748 100.00% 6,810,683 100.00% -3.95%

2018 Statement of Cash Flow


Units: (‘000 baht) 2018 2017 Change

357,652 370,595 -12,943

Depreciation & Amortisation 198,165 189,336 8,829

Other adjustments to reconcile profit (loss) before tax to net 683 28,213 -27,530

Loss (gain) on exchange rate 1,695 -5,969 7,665

Interest expense (income) 130,470 134,418 -3,948

688,665 716,593 -27,928

Decrease (increase) in operating assets 372,905 -489,488 862,393

Increase (decrease) in operating liabilities 85,281 -94,052 179,334

1,146,851 133,052 1,013,799

Cash paid for interest -134,867 -134,750 -118

Cash paid for income tax -8,449 -6,009 -2440.4

Cash received from witholding income tax 9,703 973.20 8729.4

1,013,237 -6,733 1,019,970

-241,515 -193,562 -47,953

-713,587 172,425 -886,013

58,135 -27,870 86,005

Cash and cash equivalents at beginning of period 38,640 66,510 -27,870

96,775 38,641 58,135

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents at end of period

Profit (loss) before tax

Profit from operating activities before changes in operating assets and

Cash from (used in) operating activities

Net cash from (used in) operating activities

Net cash from (used in) investing activities

Net cash from (used in) financing activities

Documents

Asian Seafoods Coldstorage PLC. · o Diverse range of Product and Market o Larger Contribution from Pet food o Profitability Improvement o Leverage decline, even still high o Adequate