asian seafoods coldstorage plc. · o diverse range of product and market o larger contribution from...
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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
3Q4 Opportunity Day–06th Mar 19
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
Q4 Opportunity Day–06th Mar 19
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
7Q4 Opportunity Day–06th Mar 19
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.
2005• Founded Asian
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.
2018• Founded Asian
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
Q4 Opportunity Day–06th Mar 19
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
9Q4 Opportunity Day–06th Mar 19
ASIAN Key Financial
Asian Seafoods Coldstorage Public Company
Limited& its Subsidiaries
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
Q4 Opportunity Day–06th Mar 19
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 Opportunity Day–06th Mar 19
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.
Q4 Opportunity Day–06th Mar 19
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
Q4 Opportunity Day–06th Mar 19
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
Q4 Opportunity Day–06th Mar 19
ASIAN
Development by Segment
Asian Seafoods Coldstorage Public Company
Limited& its Subsidiaries
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)
Q4 Opportunity Day–06th Mar 19
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)
20Q4 Opportunity Day–06th Mar 19
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
Q4 Opportunity Day–06th Mar 19
o Own R&D
o Brand development – Monchou, Maria
o China sales and logistics platform
o Aggressive Marketing Function – Asian Europe, Thaiya
Petfood Development
22Q4 Opportunity Day–06th Mar 19
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
23Q4 Opportunity Day–06th Mar 19
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.
25Q4 Opportunity Day–06th Mar 19
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.
* Volumes include inter company transactionQ4 Opportunity Day–06th Mar 19
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
28Q4 Opportunity Day–06th Mar 19
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.
* Volumes include inter company transactionQ4 Opportunity Day–06th Mar 19
o VAP product portion increased
o Sales organization re-structured
o Move Sillago processing to Samut Sakhon
o Combine Cold Storage capacity
Frozen Developments
30Q4 Opportunity Day–06th Mar 19
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
31Q4 Opportunity Day–06th Mar 19
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.
Q4 Opportunity Day–06th Mar 19
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
35Q4 Opportunity Day–06th Mar 19
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.
37Q4 Opportunity Day–06th Mar 19
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.
38Q4 Opportunity Day–06th Mar 19
ASIAN Strategies Updated
Asian Seafoods Coldstorage Public Company
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
Q4 Opportunity Day–06th Mar 19
▷VDO
ASIAN 2019 Target
Asian Seafoods Coldstorage Public Company
Limited& Its Subsidiaries
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
Q4 Opportunity Day–06th Mar 19
2019 Investment Budget
44Q4 Opportunity Day–06th Mar 19
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
Asian Seafoods Coldstorage Public Company
Limited& Its Subsidiaries
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
A-2Q4 Analyst Meeting–22nd Feb 19
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
A-3Q4 Analyst Meeting–22nd Feb 19
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
A-4Q4 Analyst Meeting–22nd Feb 19
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