Asian Seafoods Coldstorage PLC. · ASIAN, Asian Seafoods Coldstorage PLC., based these forward-looking statements on its views with respect to future events and financial performance

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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


ASIAN OVERVIEW

Asian Seafoods Coldstorage Public Company

Limited& its Subsidiaries

ASIAN Link


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.


Alliance

International Co.,

Ltd.


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


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


ASIAN Key Financial



Q3/17 Sales growth YoY


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


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


Q3/17

Leverage &Debt Structure


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



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


Frozen Q3/17


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.


Tuna Q3/17


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.


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.


Aquaculture feed Q3/17


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.


Distribution Q3/17

o The distribution activities were stable with a slightly higher valued sales mix.

Profitability was satisfactory.


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%


Q4 Outlook

o Strong Pet Food and Feed sales

o No recovery Squid before 1Q18

o Higher Tuna volumes vs Q3

ASIAN AMBITION 2020


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


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


Appendix


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


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


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Asian Seafoods Coldstorage PLC. · ASIAN, Asian Seafoods Coldstorage PLC., based these forward-looking statements on its views with respect to future events and financial performance