The World Seafood Expert

Shrimp Business Brief

 Introduction to TUF
38 Years of Seafood Processing Experience

Thailand Strategic US US US India Thailand US US

Acquired
Partnership Acquired
Founded Acquired the Set up 4 fishing Acquired Acquired
with Chicken of
Thai Union remaining Chicken of vessels in Avanti Pakfood Acquired Acquired
Mitsubishi the Sea
Manufacturi shares of the sea Indian ocean Feeds public Meraliance Bumblebee
Corp International
ng COSI Frozen (15%) company
(50%)
(100%)

1977 1992 1997 2001 2006 2007 2009 2012 2014 2014

1988 1994 1998 2003 2006 2008 2010 2014 2015

Established (90%) (100%) (76.5%) (51%) (100%) (100%)

TUF was Acquired Acquired Acquired Acquired
Thai Union Acquired Acquired Acquired
listed on Songkla Empress MW Brands King Oscar
Frozen PT Jui Fa Yueh Chyang Orion
stock Canning International
Products International Canned Food
exchange
of Thailand Indonesia Vietnam Europe Norway
Thailand Thailand US US
Unauthorized individuals or entities are not permitted access to this information. Any dissemination, distribution or copying of
5-years TUF GROUP BUSINESS GROWTH

Million USD
3,834
3,571
3,343
3,112

2,275

2010 2011 2012 2013 2014

 Total sales of Y2014 at 631 Million USD

250

200

150 148 M.USD

M.USD

100

50

0
n s ... p M M &B
L oi ed ir m S& SC M
nn Sh
na a
Tu C Sales 2013 Sales 2014

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Overview of shrimp busines
s
Dynamic & Implications

Economics of Demand

By Segment : BCG Matrix

Substitute is less … Demand is high

Cyclic of demand & supply

Economics of Supply

Producer Concentration (Focus on Market/Product)

Entry/Exit Barrier (High Investment, Fixed Assets), Regulations

Capacity Utilization (Economy of Scale&Scope) about 50% (EMS,GSP,Rivalry)

Cost Structure : Variable (RM: 70-75%), Depend on Tonnage

High Import Competition (Limited Natural Supply)

Industry Chain Economics

High Customer Bargaining Power

High Suppiier Bargaining Power

SWOT Analysis
STRENGTH WEAKNESS
1. Full Tracebility   1. High Cost  

2. Variety of Customer Market around the world 2. Limited Facility  

3. Global International Standrad 3. Logistic  

4. Strong R&D   4. Brand Awarness for End Customer
5. Product Variety   5. Location of Factory  
6. Company Reputation      
7. Financial Status      
8. High Quality Product      
9. Strong RM Sourcing          
OPPUTINITIY THREAT
1. Good Attitude to "Frozen Food" 1. Fluctuated Exchange  
2. Government Tax   2. EMS  
3. Product no Differrentiation 3. Raw Material Price  
4. High Investment   4. Governmnet policy  
5. Consumer Behaviour   5. Trade Barrier  
6. Technology   6. Regulation  
    7. ACC  
       
               
 Five Forces Analysis

BARRIER TO RNTRY  

- High Capital Investment

- Intense Existing Market  

- Require Cash Flow to buy RM

- Regulations    

SUPPILER POWER BUYER POWER

    RIVALRY AMONG INDUSTRY    

- Limited Supply (ORG,BT)     - Product Homogenous     - Many Choices (Shop Around the
World)

- Hugh Volumn on Buying Package,

- Long-term Payback Period - Customers Might be Competitors

Ingredients, etc.           - Trader Customer Might Switch to

Factory

- Unpredictable Supply    

SUBSTITUTION THREATS
 

- Shift to Consumer other Seafood

- Other Meat/Protein can be

Consumed

instead of Shrimp  
Sale Growth of Shrimp business 2007 -
2014
YEAR Export (M$) Domestic (M$) Total Sale (M$) % Growth
2007 100.61 5.42 106.03 15.48%
2008 122.68 6.51 129.19 20.77%
2009 156.02 5.86 161.88 25.30%
2010 185.15 7.85 193.00 19.22%
2011 222.11 11.77 233.88 21.18%
2012 166.00 15.30 181.30 -22.70%
2013 154.39 20.72 175.11 -3.41%
2014 121.93 26.28 148.22 -15.35%
 Market Structure in 2014
Production base

TUF’s export markets

20% 29.4 M$
Europe 2% 2.8 M$
Asia 46% 67.5 M$
Japan USA
Thailand 11% 16.4 M$
18%
26.2 M$

Australia / NZ
3% 5.5 M$
Others 3%

Domestic Thailand Sales from 3

supply production base main markets

• Farming from local partners to
ensure traceability and food safety
• Main suppliers are located in the
Eastern Seaboard area and along
the southern part of Thailand
• 3 facilities in Thailand
• Annual capacity of 100,000 tons
• Added processing capacity and
variety of product offering from
alliance with 75%-owned Pak Food.
• Largest market is USA, accounting
for high % of total group shrimp
sales. Sales generated from
Europe and Japan also accounts
for large sales.

Unauthorized individuals or entities are not permitted access to this information. Any dissemination, distribution or copying of this information is prohibited.
 Market Segmentation of Shrimp plant

MARKET SEGMENT : By CONTINENT

60%

50% 7%

40%

30% 13%
5%
% SALES GROWTH

22% USA
20% Domestic
Japan
Europe
10% Australia
43% Asia
0%
5% 6% 7% 8% 9% 10% 11% 12%
-10%

-20% 10%

-30%
% OP
 MARKET ATTRACTIVENESS ANALYSIS
120.00 0.25
0.50
100.00 0.23
0.28 0.05
USA

80.00 Domestic
MARKET ATTRACTIVENESS

Japan
60.00 Europe
0.18
Australia
40.00
Asia

20.00

0.00
0 5 10 15 20 25 30 35 40
BUSINESS STRENGTH
 Worldwide Customers

USA Customers

EU/ Russia/ Australia/ New Zealand Customers

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 Worldwide Customers

Japan/ Asia Customers

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 Domestic Customers

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Top 10 Shrimp Customer in 2014
Total Net weight Total Amount
CUSTOMER
(KGS) (USD)
1 DARDEN RESTAURANTS 2,660,175.96 33,194,362.07

2 CHICKEN OF THE SEA FROZEN FOODS 1,399,556.45 22,616,638.73

3 MITSUBISHI CORPORATION 1,336,970.35 15,787,103.90

4 LYONS SEAFOODS LTD 766,776.00 9,941,496.00

5 RED LOBSTER SOURCING LLC 890,866.80 9,765,630.56

6 DELABLI S.A.S 568,249.94 8,994,627.24

7 HAVI LOGISTICS 431,503.50 5,212,206.79

8 KAILIS BROS PTY LTD 289,023.20 4,411,718.05

9 FARMERS LAND HANDELS GMBH 286,627.55 3,775,484.75

10 MK RESTAURANT GROUP 226,297.30 2,871,391.10

Top 10 Domestic Customer
 Shrimp Supply and Our group capacity

Thailand facilities

Thailand

Thailand Production Base

Facilities Location Capacity1 Sourcing

(tons/year)

TUF Samutsakorn 35,000 50% Eastern: 40% Central & Upper South: 10% South
Gulf of Thailand 60-70%: Central South
TUS Songkhla 30,000
Andaman Sea 30-40%: Central South
Samutsakorn &
Pak Food2
Songkhla 35,000
50% South: 30% Central & West: 20% Eastern = 20% of the total
Total 100,000
supply shrimp in
Thailand

2/14/2014
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TUF
Key Material Price

Management Reporting Package 19

Average price of Finished Goods
Cost Structure
1. Raw Material 72.3%
2. Overhead 9.5%
3. SG & A 7.2%
4. Labour 6.4%
5. Packaging 2.6%
6. Ingredient 2.0%

Total 100%
 Supply Chain of Tuna and Shrimp business

Raw Material Acquisition Production Marketing

Can & Label

Fisheries Processing Canning Marketing
Production

Tuna and
Other
seafood

• 8 Own fishing vessels with capacity • Can and printing

• 9 Facilities in 8 countries • 8 Brands
of 44,440 tons per year factory in
• Total capacity of 643,000 tons per year • 5 Continents
• Covers Atlantic Ocean Thailand

Shrimp Feed Breeding Farm Processing Value Adding Marketing

Shrimp

• A Factory in
Thailand with • Shrimp breed • Chicken of the
• Partner farms in • 3 Facilities in Thailand
capacity of development Sea Frozen Food
Thailand • Total capacity of 98,000 tons per year
330,000 tons farms • 3 Continents
per year
Remark: Not include supply chain for ready to eat and pet food products
Source: TUF’s Management Report 3Q12
TUF Strength
1. Famous brand : the biggest tuna producer in the world
2. Financial Status
3. Raw material variety and accessibility
4. Full Traceability : Vertically integrated supply chain : Hat
chery, Feed mill, Farm, Factory and Marketing Distributi
on
5. Global Marketing : Worldwide famous customers aroun
d the world
6. Excellent R & D Team
7. Global Standard
8. Own high laboratory ISO 17025
Global Quality Standard
• HACCP
• GMP
• IFS
• BRC
• SENASA
• SGS
• AQIS
• CFIA
• ISO 14001
• ISO 9002
• HALAL
ผลิตภัณฑ์ ก้ งุ ประเภทต่ าง ๆ
Thai Union Frozen Products Public Company Limited, www.thaiuniongroup.com

Product Category

RAW

COOKED

VALUE ADDED
 Raw shrimp Product

กุ้ งทั ้ งตั วติดหั ว RHOSO กุ้ งหั กหั ว RHLSO

กุ้ งดิ บปอกเปลื อกผ่าหลั งไว้หาง RPDTO กุ้ งดิ บปอกเปลื อกผ่าหลั ง RPND
 Cooked shrimp Product

กุ้ งต้มทั ้ งตั ว CHOSO กุ้ งต้มหั กหั ว CHLSO กุ้ งต้มปอกเปลื อกผ่าหลั งไว้
หาง CPDTO

กุ้ งต้มปอกเปลื อกผ่า กุ้ งซู ชิ

หลั งCPND Sushi topping
 VALUE ADDED PRODUCTS

Torpedo Shrimp Noodle Wrapped Shrimp Cocktail Shrimp Tempura Shrimp Shrimp Satay

Marinated Shrimp Shrimp Wonton

Shrimp Scampi Coconut Shrimp Flat (Walt’s) Shrimp
Skewer with Noodle

Source: TUF
29
Production Lines
• Raw (or Packing room)
• Cooked
• Breaded
• Sushi
• Nobashi
• Ama Ebi
• Pre-fried
Product Mixed

Product Category Value (THB)

AMAEBI 75,403,944.10
BREADED 605,780,803.42
COOKED 964,912,270.68
NOBASHI 184,052,902.63
PREFRIED 22,262,507.57
RAW 2,464,601,485.83
SUSHI 477,313,814.01
 Organization of Mkt , Shrimp
plant
Export
1) North America (USA, Canada, Mexico)
2) Asia (Japan , Non – Japan)
3) Europe and Others
- Europe - Latin America
- Australia & NZ - Africa
- Polynesian - New market

4) Domestic
- Key Account (Western/Eastern)- Up country
- Trading (T/T) - Border (Neighbor countries)
- Modern Trade (M/T) - Food Services
- Factory - Cross Line
- Catering - Buffet
- Retail
- Stock & Aging
- Night Life (Beer House, Festival, Pub & Bar)
- Institution
 Organization of Mkt , Shrimp
4) plant
Domestic : Institution
- Airline
- Cruise
- Train
- Convention Hall
- Entertainment (Bowling, Karaoke,…..)
- Amusement park & Zoo
- Education (Kindergarten, Highschool, University)
- Hospital
- Embassy
- Lifestyle (Ikea, Homepro Fashion house)
- Government (Office, Jail, Canteen …)
Thank You