TKN OPPORTUNITY DAY
Quarter 4 /18
Taokaenoi Food & Marketing Public Company Limited PRESENTATION AGENDA
Company Overview
Financial Performance
Business Outlook
Q&A TKN STOCK OVERVIEW
Key Information : • Registered Capital 345 Mil Baht (1,380 Mil Share) Dividend B / Share Payment Date • Issued & Paid Up Capital 345 Mil Baht (1,380 Mil Share) • SET Index SET 100 12M /2019 0.15 May 8, 2020 • CGR 2017 6M /2019 0.11 Sep 11, 2019 • Dividend Policy : 40% of Net Profit (Separate FS)
FY '19 : 84% of Net Profit (Separate FS) 12M /2018 0.17 May 8, 2019
6M /2018 0.17 Sep 6, 2018 As of Feb 27, 2020 • Major Shareholders Peeradechapan group 58.26 % 12M /2017 0.17 May 4, 2018
Free Float 41.74 % 6M /2017 0.17 Sep 13, 2017 • Market Cap 11,868 Mil B (@ 8. baht/share)
TAOKAENOI FOOD & MARKETING PLC. 3 COMPANY HISTORY Insert some short and brief lorem ipsum explanatory text about @tle here 5.7 BILLION BAHT IN REVENUE 3.5 BILLION BAHT IN REVENUE 2.1 BILLION BAHT IN REVENUE 1.0 BILLION BAHT IN REVENUE
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
• Export sales to • Moved to • The Billionaire, • 1st Trading day in • Start operation 2nd Singapore via Thai Nopawong factory, movie based on Stock Exchange of factory at Rojana, Export channel Pathumthani true story Thailand Ayutthaya
TAOKAENOI FOOD & MARKETING PLC. 4 OUR BOARD OF DIRECTOR
Yuth Chaiyong Itthipat Jirapong Worachattarn Rattanacharoensiri Peeradechapan Suntipiromkul Chairman / Independent Director / Director / Director / Independent Director NRC Chairman Chief Executive Officer Deputy Managing Director
Wanee Somboon Orrapat Porntera Tassanamontien Prasitjutrakul Peeradechapan Rongkasiripan Independent Director / Director & Director / Director / AC Chairman Executive Director Managing Director Internal Audit Director
TAOKAENOI FOOD & MARKETING PLC. 5 OUR MANAGEMENT
Itthipat Peeradechapan Nutchatpong Peeradechapan Prayut Apisitsareeku Koosoon Rattanaporn Chief Executive Officer / Managing Director : Chief Strategy & Commercial Acting Founder Business Support Officer Chief Financial Officer
Orrapat Peeradechapan Jirapong Suntipiromkul Prin Pitchayavijit Managing Director : Deputy Managing Director Chief People Officer International Trade & Management
TAOKAENOI FOOD & MARKETING PLC. 6 PRESENTATION AGENDA
Company Overview
Financial Performance
Business Outlook
Q&A FINANCIAL HIGHLIGHTS
Highlights FY 2019 FY 2018 %YOY
Net Sales Mil B 5,267 5,427 (3%) • Sales Growth -3% (Q4/19 +1%)
Net Profit Mil B 366 459 (20%) • Thailand +4% (New Categories)
% 7.0% 8.5% (2%) • Export -1% (China sales drop) • Sales Portion TH 42% : IM 58% EPS Baht 0.27 0.33
Net Profit FY 2019 FY 2018 %YOY
Q1 Mil B 81 152 (46%) • Q4/19 Net profit growth YOY mainly from
Q2 Mil B 98 154 (36%) seaweed cost and utilization rate • Loss impact from impairment of assets Q3 Mil B 69 129 (47%) (production line in USA and TKN Land) 30 Mil B Q4 Mil B 118 25 377%
TAOKAENOI FOOD & MARKETING PLC. 8 SALES BY QUARTER
unit : Mil Baht
YR 2017 YR 2018 YR 2019 2000
1,454 1500 1,438 1,402 1,417 1,337 1,283 1,287 1,280 1,302 1,268 Mainly drop from China 936 908 905 900 1,158 845 -4% YOY, +31% QOQ 1,094 803 750 748 780 719 707 1000 660
500 Partially drop from Tourist 501 537 546 497 532 522 549 517 434 451 492 480 +4% YOY, -6% QOQ
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thailand Int Mkt
TAOKAENOI FOOD & MARKETING PLC. 9 SALES BY QUARTER
unit : Mil Baht
YR 2017 YR 2018 YR 2019 2000
1,454 1500 1,438 1,402 1,417 1,337 1,283 1,287 1,280 1,302 1,268 Mainly drop from China 936 908 905 900 1,158 845 -4% YOY, +31% QOQ 1,094 803 750 748 780 719 707 1000 660
500 Partially drop from Tourist 501 537 546 497 532 522 549 517 434 451 492 480 +4% YOY, -6% QOQ
0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Thailand Int Mkt
TAOKAENOI FOOD & MARKETING PLC. 10 NEW PRODUCT Q4/19 - Q1/20
Oct’19 Nov’19 Dec19
Feb’20 Jan’20
TAOKAENOI FOOD & MARKETING PLC. 11 THAILAND SALES PERFORMANCE
FY2019 Sales 2,120 Mil B (+3%) • FMCG +4.7%, Seaweed Snack -3.4%
• 3 Yrs New Product in concept 'Super Snack : 3P' • Plant Based Snack • Tempura Seaweed (Jan20) • Protein Snack • Premium Snack • Co-branding with Orion : Crispy Corn Snack, Corn Soup Flavour 'Kobuk' (Feb20) • 2 branches of Hinoya Curry : Promenade (Oct), Central World (Nov)
TAOKAENOI FOOD & MARKETING PLC. 12 EXPORT SALES PERFORMANCE
FY2019 Sales 3,147 Mil B (-7%) • China 1,906 Mil B (-13%) • International Markets 1,241 Mil B (+6%)
• Sales Portion Chine 61% : International 39% • Growth significantly in potential market : CLMV, USA, and Indonesia Q4 2019 Full Yr 2019
Int Mkt Int Mkt Thailand 25% 24% Thailand 36% 40%
China China Thailand China Int Mkt 39% 36%
TAOKAENOI FOOD & MARKETING PLC. 13 CHINA SALES PERFORMANCE unit : Mil Baht
FY2019 Sales 1,916 Mil B (-13%) 800 YR 2017 YR 2018 YR 2019
• Q4/19 554 Mil B 600 619 591 563 588 572 547 (-3%yoy / +32%qoq) 400 470 463 478 446 425 417 • 1st order to new distributor on mid Oct200 • Listing product on Q4/19-Q2/20 in key Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 accounts E-Commerce Hypermarket CVS Supermarket
Club Store
TAOKAENOI FOOD & MARKETING PLC. 14 OPERATION UPDATE
unit : % Q4/19 FY 2019 Capacity Factory Utilization Utilization (Ton/Year) Overhead (%) (%) 8% Grand Total 8,250 80% 67% Labor Cost 20% Seaweed - Nopawong 4,700 84% 72% 39% - Rojana 3,550 76% 60% Other Materials 9% Q4/20 Gross Margin Improvement Packaging • The increased proportion of new season seaweed 24% which accounted for decreasing costs • The growing utilization rate relative to sales in China during the period between November-December.
TAOKAENOI FOOD & MARKETING PLC. 15 PROFIT SUMMARY unit : Mil Baht 15.6% 300 YR 2017 YR 2018 YR 2019 0.16 11.7% 12.0% 11.9% 12.0% 9.9% 10.2% 200 0.107 7.6% 8.3% 171 6.4% 160 152 154 5.4% 135 142 100 129 118 0.053 1.8% 98 81 69 25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Profit % Net Profit Profit & Loss Q4/2019 FY 2019 Mil B % on Sales Mil B % on Sales Gross Margin 433 30.5 1,480 28.1 Selling Expenses 213 15.0 768 14.6 Administrative Expenses 121 8.5 344 6.5 Net Profit 118 8.3 366 7.0
TAOKAENOI FOOD & MARKETING PLC. 16 BALANCE SHEET
Separate Financial Statements Unit Dec 2019 Dec 2018 Change
A/R - local collection period Days 103 88 15
A/R - export collection period Days 16 22 (6)
Finished goods holding period Days 5 9 (4)
Inventory holding period Days 112 101 11
A/P payment period Days 28 27 1
DE Ratio Times 0.67 0.70 (0.03)
TAOKAENOI FOOD & MARKETING PLC. 17 PRESENTATION AGENDA
Company Overview
Financial Performance
Business Outlook
Q&A BUSINESS OUTLOOK
VISION : MISSION : Become an innovative food company I Develop innovative products without any border and bring happiness to our consumers limitations around the world II Become a production that is recognized and approved by international standard and also being environmentally friendly TARGET : III Create happiness and healthy relationships and Strive to make the company a Thailand bonds with the organization Quality Award (TQA) standard within IV The ability to become adaptive to the constant 2026 and generating more than 1 billion changes of the world and the continuous dollars in sales by 2028 development for sustainable growth
V A trustworthy organization due to good governance and sustainable development
TAOKAENOI FOOD & MARKETING PLC. 19 as of Feb 27, 2020 • Orion's CHINAstock on hand SITUATION still higher than UPDATE standard which impact from Chinese newWuhan, year China extension Keep Fighting • Obstruct from in-land logistics, only about 50% of normal situation but mainly focus on must-have product • Purchasing team of key modern trade back to work this week • Work closely with Orion team, weekly meeting with management • Feb-Mar order about 60% from target
TAOKAENOI FOOD & MARKETING PLC. 20 CHINA SITUATION UPDATE
as of Feb 27, 2020 • Orion's stock on hand still higher than standard which impact from Chinese new year extension • Obstruct from in-land logistics, only about 50% of normal situation but mainly focus on must-have product • Purchasing team of key modern trade back to work this week • Work closely with Orion team, weekly meeting with management • Feb-Mar order about 60% from target
TAOKAENOI FOOD & MARKETING PLC. 21 COVID-19 ACTION PLAN
Commercial • Revised 2020 sales target to 5,300 Mil B (Flat with 2019) with net margin +50% YOY • Develop new team to focus online channel to balance channel mix • Launched NPD earlier than original plan, partially offset with sales drop • Deduct marketing expenses 100 Mil B, focus on sales-driven activities • Increase R&D budget for new product • Close 'Taokaenoi Land' shop 8-10 branches which not generate positive net margin
Operation • Study to combine Nopawong factory with Rojana factory within 1H/2020 • gross margin improvement and maximise tax benefit • Move with automated machine to increase productivity & product quality
TAOKAENOI FOOD & MARKETING PLC. 22 PRESENTATION AGENDA
Company Overview
Financial Performance
Business Outlook
Q&A Q&A
TAOKAENOI FOOD & MARKETING PLC. 24 CONTACT
• Address: Taokaenoi Food & Marketing PLC. 337 Bond Street Road, Bangpood, Pakkred, Nonthaburi 11120 Thailand +66 2984 0666
• Investor Relations: [email protected] +66 2984 0666 #316
Disclaimer The information contained here is being furnish on a confidential basis for discussion purposes only and only for the use of the recipient, and may be subject to completion or amendment through the delivery of additional documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any security of engage in any transaction. The information contained herein has been obtained from sources that Taokaenoi Food & Marketing Public Company Limited (“TKN”) considers to be reliable; however, TKN makes no representation as to, and accepts no responsibility or liability for, the accuracy or completeness of the information contained herein. Any projections, valuations and statistical analyses contained herein have been provided to assist the recipient in the evaluation of the matters described herein; such projections, valuations and analyses may be based on subjective assessments and assumptions and may utilize one among alternative methodologies that produce differing results; accordingly, such projections, valuations and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of future events. The recipient should make an independent evaluation and judgement with respect to the matters contained herein.
TAOKAENOI FOOD & MARKETING PLC. 25