Thai Union Group Public Company Limited · SET:TU
Thai Union Group Public — Thai Union Group PCL — Q2 2025 Earnings Presentation
53 slides from Thai Union Group Public's earnings presentation, Aug 5, 2025
Slide 1: Q2 25 Analyst Meeting
Q2 25 Analyst Meeting Thai Union Group PCL. August 5, 2025 Q2 25 Analyst Meeting Investor Relations Department
Slide 2: Disclaimer
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are base
Slide 3: Q2 25 Key highlights and key developments
Q2 25 Key highlights and key developments Q2 25 Analyst Meeting Investor Relations Department
Slide 4: CEO message on strategic transformation
“In line with changes in the global trade environment, our strategic transformation is delivering tangible value. We have become a more agile and efficient organization. This focus on strengthening our core operations allowed us to achieve a significant lift in profitability, proving that our strate
Slide 5: Q2 25 marked a significant recovery with all key profitability metrics improving
Q2 25 marked a significant recovery with all key profitability metrics improving Sales Gross Profit Adjusted Adjusted Operating Profit* Net Profit* 33,389 6,567 2,142 1,506 THB mn THB mn THB mn THB mn 19.7% 6.4% 4.5% GPM OPM NPM -5.4% YoY +0.5% YoY +3.2% YoY +13.2% YoY In Q2 25, sales declin
Slide 6: Excluding transformation costs, Q2 25 net profit rose by 13.2% YoY to THB 1.5bn
Excluding transformation costs, Q2 25 net profit rose by 13.2% YoY to THB 1.5bn Bridge Net Profit (THB mn) +13.2% YoY +4.4% YoY 1,506 1,330 -79 -22 +34 +233 +305 -165 1,273 -111 1,219 +37 -56 Q2 24 Trans- Q2 24 Operating FX gain Other Share Lower Income tax NCI Q2 25 Trans- Q2 25 Adjusted formation
Slide 7: 1H25: Record-high 1H GPM, adjusted net profit up 11.2% YoY
1H25: Delivered record-high 1H GPM, with adjusted net profit up 11.2% YoY, as improving Q2 performance offsets Q1 softness 1H 25 sales declined by 7.8% YoY to Financial Summary 1H 24 1H 25 (THB mn) % to sales THB 63,178 mn -7.8% YoY 17.9% 19.3% 68,503 63,178 -0.8% YoY 9.7% 10.0% Share price movement
Slide 8: Completed 2025 share buyback, totaling 19.2% over four programs
Completed 2025 share buyback (8.98% in 1H 25), totaling 19.2% over four programs to boost shareholder returns Completed Completed Completed Completed Program 1 Program 2 Program 3 Program 4 Announcement date Mar 17, 20 Dec 16, 22 Jan 16, 24 Dec 25, 24 Repurchase period Apr 1 - Sep 30, 20 Jan 3 - Jun
Slide 9: 1H 25 interim dividend of THB 0.35 per share, 59% payout
TU announced a 1H 25 interim dividend of THB 0.35 per share, maintaining a high payout ratio at 59% Dividend per share (DPS) and Payout Ratio Final Dividend for the period: January 1 to June 30, 2025 DPS: THB 0.35 per share 60% 60% 59% 57% 59% 58% 57% 57% 57% 57% Ex-Dividend Date August 15, 2025 52%
Slide 10: Mitsubishi Corporation and TU business alliance; MC to increase stake to 20%
Mitsubishi Corporation (MC) and TU entered into a business alliance agreement. MC will increase its stake from 6% to 20%. Transaction Summary Rationale and benefit to Thai Union Acquirer: Mitsubishi Corporation (MC) • The transaction, initiated by MC, reflects the long-standing collaboration and con
Slide 11: Mitsubishi Corporation global business overview
Established in 1954, MC is a global integrated business enterprise operating through an extensive international network MC Business (% Sales, NI Cont.*) Marine Products Farmed Salmon Feed manufacturing Pet Food Sales: ~USD 130bn NI: ~USD 6bn Materials Solution (22%, 7%) Toyo Reizo is a marine produc
Slide 12: MC as trusted strategic shareholder for over 30 years
MC has been our trusted strategic shareholder for over 30 years. Our deepening collaboration offers strong potential to unlock further synergies. Frozen shrimp Frozen & Chilled salmon Pet Food Our long-term strategic partnership. MC: Shares sushi ingredient MC: Supplies raw salmon for MC: Accelerate
Slide 13: Thai Union launches 2024 Sustainability Report
Thai Union launches 2024 Sustainability Report: SeaChange® powers tangible progress for “Healthy Living, Healthy Oceans” Inspired collective action to protect the oceans and advanced SeaChange® 2030 Strategy at UN Ocean Conference 2025. Launched its 2024 Sustainability Report: 2030 Focus Area 2024 P
Slide 14: Q2 25 Financial performance
Q2 25 Financial performance Q2 24 Q2 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 15: CFO message on Q2 2025 performance
“In Q2 2025, Thai Union continued to demonstrate strong operational execution despite external headwinds, including the 10% U.S. import tariffs. We delivered solid profitability, supported by resilient margins and effective cost control. This performance underscores the strength of our diversified p
Slide 16: GPM grew for 2 consecutive quarters, reaching an all-time high
GPM grew for 2 consecutive quarters, reaching an all-time high 19.5% 19.7% 19.0% 18.5% 18.7% 18.8% 18.0% 18.2% 18.2% 18.4% 17.3% 17.7% 17.5% 17.3% 17.8% 16.9% 16.9% GPM 15.1% 6.5% 6.2% Adjusted NPM* 5.8% 5.4% 5.0% 4.8% 4.7% 4.4% 4.5% 4.2% 4.0% 3.8% 4.3% 3.1% 3.1% 4.2% 3.6% NPM 2.3% 3.5% 3.5% 4.0% 3.
Slide 17: Q2 25 sales growth softened mainly from THB appreciation
Q2 25: Sales growth softened mainly from THB appreciation; organic sales slightly declined but showed signs of recovery Sales growth (% YoY) FX rate Q2 24 Q2 25 %YoY Sales decreased by 5.4% YoY in Q2 25. However, sales volume slightly USD/THB 36.7 33.1 -9.8% increased by 3.9% YoY. EUR/THB 39.5 37.5
Slide 18: Tuna and shrimp prices eased, salmon at a low point
Tuna and shrimp prices eased as anticipated, while salmon remains at a low point Tuna (Skipjack; USD/ton) Q2 23 Shrimp (60pcs/kg; THB/kg) FY 24 actual: 144 Quarterly avg. Quarterly avg. FY 25 budget: 148 Monthly avg. 2,000 FY 24 actual: 1,438 Monthly avg. Shrimp prices surged temporarily to THB Q1 2
Slide 19: THB strengthened YoY versus FY targets
THB strengthened YoY, staying within FY targets except for USD/THB, which slightly exceeded the range USD/THB Quarterly avg. EUR/THB FY 24 actual: 38.2 Quarterly avg. FY 25 budget: 36.9 (-1.6% from Q2 25) Avg. in Q2 25: 1 USD / 33.1 THB (-9.8% YoY) Monthly avg. Avg. in Q2 25: 1 EUR / 37.5 THB (-5.1%
Slide 20: ND/EBITDA temporarily above target; ND/Equity comfortable
While ND/EBITDA temporarily exceeds the target due to share buy back program, ND/Equity remains at a comfortable level ROE Inventory Days Net Debt to EBITDA Net debt to EBITDA ratio temporarily increased due to the exercise of a call option on perpetual debentures in Q4 24 as well as lower EBITDA in
Slide 21: 1H 25 net debt increased to THB 59.1bn; FCF of THB 1.7bn
1H 25: Net debt increased to THB 59.1bn, due to the share buyback, while strong FCF of THB 1.7bn was delivered ND/E 0.9 x Income tax paid and ND/E 1.1 x Free Cash Flow (FCF) THB +1,657mn Kd* = 3.65% other investing & financing activities Kd* = 3.38% (THB mn) Debt 59,056 -394 +4,310 -113 +357 53,024
Slide 22: BEPS 2.0 Pillar 2 top-up tax estimate for FY25
Group top-up tax from BEPS 2.0 Pillar 2 implementation estimated at THB 100 – 150mn for FY25, with THB 31mn incurred in Q2 25 Base Erosion and Profit Shifting (“BEPS”) 2.0 – Pillar 2 BEPS 2.0 Pillar 2 is international tax reforms that aim to introduce a Global Minimum tax. Implementation (on Jan 1,
Slide 23: SONAR and Tailwind transformation programs
In 2025, SONAR targets USD 15mn in savings (USD 5mn in 1H), while Tailwind aims for USD 17mn OP uplift (USD 7mn in 1H) PROJECT SONAR (ending 2025) PROJECT TAILWIND (ending 2026) Group transformation program to lay the foundations PetCare transformation program to accelerate growth 2025 Target: ~USD
Slide 24: Q2 25 Business performance
Q2 25 Business performance Q3 24 Q2 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 25: 1H GPM improved, reaching target levels in all categories
1H 25 GPM improved, reaching target levels in all business categories Total 1H 25 sales: THB 63,178 mn Ambient Frozen PetCare Value-added THB 31,359mn THB 18,475 mn THB 8,561 mn THB 4,783 mn 20.8% 12.0% 25.1% 27.1% GPM GPM GPM GPM 49.6% (50.4% LY) 29.2% (29.9% LY) 13.6% (12.3% LY) 7.6% ( 7.4% LY) Sa
Slide 26: Q2 25 Ambient: GPM recovered to 22.0%
Q2 25 Ambient: GPM recovered to 22.0% - the highest in 11 quarters - reaching the upper end of the long-term target range of 20-22% Sales (THB mn) and GPM (%) 22.0% YoY analysis: 20.1% 20.6% 18.9% 19.4% • In Q2 25, Ambient sales declined by 4.5% YoY, primarily due to unfavorable FX impact and lower
Slide 27: 1H25 Ambient: GPM within 20-22% target range
1H25 Ambient: GPM recovered and remained within the 20-22% target range, supported by effective raw material cost management Sales (THB mn) and GPM (%) Business update: 21.1% 21.4% 21.3% 20.8% Driving sales through enhanced marketing efforts 19.0% 19.1% 17.8% • Chicken of the sea's marketing efforts
Slide 28: Q2 25 Frozen: GPM of 11.7%, volume up 8.3%
Q2 25 Frozen: Solid GPM of 11.7% driven by strong cost and mix management, with volume up 8.3% despite market pressure Sales (THB mn) and GPM (%) YoY analysis: • Quarterly Overview: The Frozen category consists of Frozen, 10.7% 12.0% 12.1% 12.4% Chilled, and Feed businesses. In Q2 25, while total vo
Slide 29: 1H 25 Frozen: GPM at 12.0%
1H 25 Frozen: Chilled and Feed growth drive margin resilience with GPM at 12.0% Sales (THB mn) and GPM (%) New product development: 11.8% 11.3% 11.7% 11.2% 12.0% 9.7% • Culinary business was selected to produce in-flight 7.7% meals for Thai Airways under the “Streets to Sky” CAGR -3.9% YoY program,
Slide 30: Q2 25 PetCare: volume rebound, softer sales and GPM
Q2 25 PetCare: Strong YoY rebound in volume growth, while sales and GPM were softer due to shift toward mid-priced products Sales (THB mn) and GPM (%) YoY analysis: 31.3% 30.6% • In Q2 25, PetCare sales decreased slightly by 1.5% YoY, primarily 26.1% 24.5% 25.6% due to an unfavorable FX translation,
Slide 31: 1H 25 PetCare: sales growth supported by volume
1H 25 PetCare: Sales growth was supported by volume expansion, thanks to higher demand in the U.S. Sales (THB mn) and GPM (%) Business update: 28.5% 28.7% 25.6% 24.3% 26.3% 25.1% Focusing on improving productivity and cost efficiency 20.5% • Ongoing transformation program aimed at enhancing efficien
Slide 32: Q2 25 Value-added: YoY volume growth continued
Q2 25 Value-added: YoY volume growth continued, driven by Ingredients, By- product and Packaging segments Sales (THB mn) and GPM (%) YoY analysis: 26.5% 27.9% • In Q2 25, Value-added sales dropped by 9.2% YoY, primarily due to 25.1% 26.3% 23.5% lower sales across all segments driven by lower selling
Slide 33: 1H25 Value-added: GPM slightly above 27%
1H25 Value-added: Maintained high growth potential, with GPM slightly above 27% Sales (THB mn) and GPM (%) Business update: 28.5% 29.4% 28.0% 28.0% 27.1% 26.1% 27.1% Launched ThalacolTM on the international stage • Thai Union Ingredients introduced its new brand, ThalaCol , at CAGR +7.5% YoY Vitafoo
Slide 34: U.S. tariffs update and FY 2025 Outlook
U.S. tariffs update and FY 2025 Outlook Q2 24 Q2 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 35: U.S. final reciprocal tariffs: Thailand assigned 19%
The U.S. announced the final reciprocal tariffs on August 1, 2025, with Thailand assigned a rate of 19%, which remains competitive compared to peers U.S. reciprocal tariffs April 2 rate New rate Announcement U.S. sales in 2024: Deal announced: Seychelles 10% 10% July 31 Ghana 10% 15% July 31 Ec
Slide 36: Ambient: total tariff and competitiveness
Ambient: total tariff on Ambient products, combined with our core strengths, reaffirms our competitiveness in the global canned seafood industry Comparative competitive landscape Competitive advantage and potential alternatives/ opportunities Base Reciprocal Total Country Strengths and limitations t
Slide 37: Frozen: Thailand's total tariff among the lowest
Frozen: Thailand’s total tariff on frozen products ranks among the lowest compared to peers, providing a positive advantage for our frozen exports Comparative competitive landscape Competitive advantage and potential alternatives/ opportunities Anti- Counterv- Base duty dumping ailing Reciprocal Tot
Slide 38: PetCare: Thailand's tariff lowest among competitors
PetCare: Thailand’s tariff on PetCare products is the lowest among competitors, reinforcing our leadership position in the market Comparative competitive landscape Competitive advantage and potential alternatives/ opportunities Base Reciprocal Total Country Strengths and limitations tariffs* tariffs
Slide 39: Updated 2025 guidance reflects 19% U.S. tariff scenario
Updated 2025 guidance reflects 19% U.S. tariff scenario 2025 Previous announcement: 10% tariff (Apr to Jul) Key factors Guidance 10% tariff (Apr to Dec) 19% tariff (Aug to Dec) Sales growth + 1 to +3% YoY - 1 to -2% YoY • Soften due to the impact of the 19% U.S. (2024A: +1.7%) tariff and a more unfa
Slide 40: Q&A
Q&A Q&A Q2 25 Analyst Meeting Investor Relations Department
Slide 41: Appendix
Appendix Q2 24 Q2 25 Analyst Meeting Analyst Investor Relations Meeting Department
Slide 42: Adjusted operating profit and net profit excluding transformation costs
Excluding transformation costs, Q2 25 adjusted operating profit and net profit would be THB 2,142mn (+3.2% YoY) and THB 1,506mn (+13.2% YoY), respectively THB mn Q2 24 Q2 25 %YoY 1H 24 1H 25 %YoY Total sales 35,283 33,389 -5.4% 68,503 63,178 -7.8% Gross profit 6,535 6,567 0.5% 12,277 12,178 -0.8% SG
Slide 43: Well-diversified portfolio across regions and production bases
Our portfolio is well-diversified across all regions 14 Production bases (countries) ~40% ~30% North America Europe 4 Asia • Indonesia • India • Thailand (2) • Vietnam 9 Europe & Africa • France (2) • Poland • Germany (2) • Portugal • Ghana • Seychelles • Lithuania • Russia • Norway Pacific Ocean Pa
Slide 44: Sales breakdown by geography and business segments
Sales breakdown by geography and business segments Sales breakdown by geography Sales breakdown by business segment 9.5% 10.1% 9.7% 9.9% 9.1% 9.4% The U.S. & Canada 2.4% 5.1% 3.2% 2.5% 4.1% 2.6% 2.9% 5.8% 6.0% 5.6% 5.6% 4.7% Europe 10.3% 10.5% 11.5% 11.0% 10.3% 11.3% Thailand Japan Brand Brand 28.3%
Slide 45: U.S. & Canada and Europe sales
The U.S. & Canada: Sales declined driven primarily by Europe: Broad-based sales declined, with resilience FX translation impact in Germany and Poland -8.0% YoY -4.2% YoY 14,130 14,185 11,414 10,938 13,327 13,001 10,215 11,981 10,034 8,109 Sales Sales Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q2 24 Q3 24 Q4 24 Q
Slide 46: Thailand and Japan, EM and rest of world sales
Thailand: Domestic sales grew across all categories Japan, Emerging Markets (EM) and the rest of the except for PetCare and Value-added world: Sales dropped across all categories +4.3% YoY -7.3% YoY 7,291 6,874 4,007 3,997 3,774 3,619 3,685 6,120 6,014 5,676 Sales Sales Q2 24 Q3 24 Q4 24 Q1 25 Q2 25
Slide 47: Ambient: GPM healthy despite short-term sales pressure
Ambient: GPM remained healthy despite short-term sales pressure from external factors A sharp drop Normalization effect from Increasing in tuna price High base for Recognizing low- 2020’s pantry loading selling price ~USD 700 Ambient together cost inventory & Strong recovery in during the pandemic a
Slide 48: Tuna prices favorable, supporting Ambient GPM of 22.0%
Tuna prices remained at a favorable level, similar to the same period last year, supporting a healthy Ambient GPM of 22.0% in Q2 25 23.3% 22.9% 22.4% 22.0% 22.7% 21.2% 20.4% 22.0% 19.4% 20.1% 20.1% 20.6% 18.4% 19.6% 18.9% 18.6% 17.4% 18.9% 17.7% 17.1% 21.5% 21.7% 20.2% 20.7% 19.5% 19.9% 19.4% 16.5%
Slide 49: Frozen: GPM remains healthy at around 12%
Frozen: Despite economic uncertainty and cautious consumer spending, the frozen business requires close monitoring. However, GPM remains healthy at around 12% Reduced Market price Market price stabilization demand for Recovery from correction in the frozen food robust food service and reduced Strate
Slide 50: PetCare: sales grew strongly in the U.S.
PetCare: Sales grew strongly in the U.S. market, driven by higher demand and new product launches Consistent Signs of growth: Strong demand for pet food, Back to growth and High base for pet food and Inventory recovery Margin align supported by COVID-19 premium mix adjustment inventory build up dest
Slide 51: Value-added: sales on track, GPM above 25%
Value-added: Sales are on track and GPM remains with target range of above 25% Established Thai Union Record high Strong GPM driven by Record high GPM Lifescience (supplement) quarterly sales with our strategy to prioritize due to strong GPM temporarily declined due and launched alternative exceptio
Slide 52: Logistics market: freight market rebounding since late May
Logistic market: freight market rebounding since late May, with U.S. rates turning volatile due to container supply shift toward China Logistics market Average freight rate (By quarterly & Monthly) (Unit: Avg. Q2 Avg. Q1 Avg. Q2 Freight cost: Thailand to the U.S. (East & West Coast) %QoQ %YoY USD) 2
Slide 53: Proactive enhancement of debt profile with fixed rates
Proactive enhancement of debt profile by securing fixed rates amid future uncertainties (THB mn) By Currency By Maturity By Interest Rate 76,152 76,152 6.7% Short-term loan 68,512 0.3% 68,512 Current portion of 7.5% 26.3% long-term debt & 0.1% 21.3% 24.8% finance lease 17.7% Long-term debt Float 19.