16. You will nd Alliance Tuna
under some of the most well
known labels
in the world.
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17. We don’t sell locally which is why we’re
relatively unknown.
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Alliance Tuna has been growing quietly & successfully.
18. We don’t sell locally which is why we’re
relatively unknown.
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Alliance Tuna has been growing quietly & successfully.
19. Manufacturing a world-class
product is one thing.
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Marketing it to the world
is a whole different ballgame.
22. We need the approval of
innumerable authorities
and regulatory bodies.
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23. USFDA European Union EFSIS Higher Approval
(BRC and IFS)
HACCP Recognition Certified Halal Certified Kosher
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Bureau of Fisheries A sustainable quantity Dolphin-safe tuna
and Aquatic Resources
24. is is Alliance Tuna
International, Corp.
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Growing quietly.
25. From 20 countries in 2004... to over 150 clients in
more than 50 countries.
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26. Export Markets
1. Angola 19. Hong Kong 37. Puerto Rico
2. Australia 20. Hungary 38. Romania
3. Austria 21. Indonesia 39. Russia
4. Bahamas 22. Iraq 40. Saudi Arabia
5. Belgium 23. Ireland 41. Serbia
6. Canada 24. Italy 42. Singapore
7. Chile 25. Japan 43. Slovenia
8. Costa Rica 26. Kuwait 44. South Africa
9. Croatia 27. Latvia 45. Spain
10. Cyprus 28. Libya 46. St. Lucia
11. Czech Republic 29. Lithuania 47. Sweden
12. Denmark 30. Malta 48. Taiwan
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13. Dominican Republic 31. Malaysia 49. Trinidad & Tobago
14. Estonia 32. Montenegro 50. Tunisia
15. Finland 33. Netherlands 51. Turkey
16. France 34. Norway 52. United Kingdom
17. Germany 35. Poland 53. United States of America
18. Greece 36. Portugal
27. This impressive
base of clients is
Our insurance against
the economic slowdown.
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28. Net Sales
(USD Millions)
• Sales almost tripled in 5 years.
• From $18 million in 2004 to $51.6 million* in 2008.
29. Net Sales
(USD Millions)
80
65.3
60
51.6
42.4
40
31.1
21.8
20 17.9
0
2004 2005 2006 2007 2008E 2009E
• Sales almost tripled in 5 years.
• From $18 million in 2004 to $51.6 million* in 2008.
30. Compound annual growth rate is
•
almost 24%.
A most impressive rate
•
for a food company.
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It is growth few publicly listed
•
companies can match.
31. Net Income
(USD Millions)
CAGR: 26%
• Net income tripled in 5 years.
• $1 million on its first year of operation. We ended the year
with $3.2 million. $4.1 million in net income in 2009.
32. Net Income
(USD Millions)
5.00
4.1
3.75
3.2
2.50 2.3
2.0
1.25 1.1
1.0
0
2004 2005 2006 2007 2008E 2009E
CAGR: 26%
• Net income tripled in 5 years.
• $1 million on its first year of operation. We ended the year
with $3.2 million. $4.1 million in net income in 2009.
34. Stockholder's Equity
(USD Millions)
30.0
22.3
22.5
18.2
15.2
15.0
12.9
7.5
5.8
4.6
0
2004 2005 2006 2007 2008E 2009E
The goal is to increase shareholder value.
35. How does Alliance Tuna compare
against competition?
• Connors Bros. Canadian based, owns
Bumble Bee & Clover Leaf brands and other
specialty seafood products.
• ai Union ailand based, owns Chicken of
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the Sea, manufactures canned and frozen tuna and
seafood.
• Tropical Canning ailand based, exporter of
canned and pouched seafood.
43. EPS, P/E & Book Value
EPS (PHP) PE @ 1.24/share Book Value/share
2008 0.24 2008 5.2x 2008 Php1.44
2009 0.34 2009 3.6x 2009 Php1.85
44. Dividend Payouts
•2007 - 12% stock dividend
•2008 - PHP 0.02/share cash
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dividend
45. Allow us to answer
frequently asked
questions.
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46. “Aren’t we running out
of tuna?”
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We do not sh for or process
blue n & bigeye tuna. ese two
tuna species are declining.
47. Skipjack tuna is what the world eats and
what Alliance sells.
“Skipjack Tuna have high fecundity and
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relatively fast growth rates
which has the potential to
buffer sh populations.”
Source: Blue Ocean Institute
48. “Won’t the world-wide recession affect
tuna sales?”
Tuna is staple fare in the importing
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countries. e crisis may, in fact,
affect sales positively.
49. While tuna is recession resistant the
company has an
added advantage.
Amidst the credit crunch...
Alliance is well positioned as it has
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no long term debt and does not
depend on borrowings
for its operations.
50. “Won’t the foreign exchange
uctuation hurt Alliance?”
All our clients are billed
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in US dollars. 70% of our costs
are in that currency.
51. All our nancial statements are
in US Dollars.
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Banks predict a devaluation of
the peso.
52. You will nd Alliance Tuna
under some of the most well
known labels in the world.
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53.
54.
55.
56.
57.
58. for an encore?
What do you do
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59. Investing only where
we have a competitive advantage.
Our DNA is Filipino.
Where we have expertise.
Tuna is core.
Growth will be organic and certain.
63. e acquisition provides Alliance
Tuna access...
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To the biggest tuna and marine resource in the world
Thus guaranteeing a permanent supply of raw material
And ensuring future growth and profitability.
64. 1.42 hectare of land.Own wharf so sh can
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be unloaded at the factory rather than be
trucked in.
Investment in improvements to cannery.
Replicating model of Philippine plant.
60 MT capacity.
Products for export to USA and the ME.
69. Smoked salmon processor with Prime Smoke & Studholme
brands, products in 300 supermarkets in NZ.
Packs for Progressive, exports to Australia, Middle East & SE
Asia.
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70. Background
•Started in 1994 by Henry S. Studholme
•Processor of cold and hot smoked salmon
•Sells under Prime Smoke & Studholme brands
•Second largest salmon processor in NZ
•35% market share in NZ
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•Private label packer for largest supermarket chain in NZ
(300 stores)
•Sells in Australia (600 stores), Singapore and UAE
71. Products
• Processes King Salmon
–Aquaculture
–Sourced from NZ farms
–Higher margins than Atlantic salmon
–Best selling products
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•Prime Smoke Shavings – 100 grams
•Prime Smoke Slices – 100 grams
•Prime Smoke Hot Smoked Slices – 200 grams
72. Investment Parameters
• Total Investment – NZD 1.15 million
•ATI to eventually own 50% plus 1 share
•PFNZ to make investment in JV in Phil.
–To concentrate on exports
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73. Rationale for Investment
• Own brand in NZ/Australia
• Established marketing network
• High margin, high value
• Diversify ATI product line
• Access to NZ/Australian food & agri. resources
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81. Awards
• Emerging Exporter of the Year 2003
- Finalist
• Progressive Enterprises Supplier of the Year 2004 &
2005
• New Zealand Food Awards 2000
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- Gourmet Foods Category Winner
- Food Assurance Award Winner
90. In summary:
• Historical growth rate 26%
• Future growth rate – higher than historical
rates
• Introduce high margin, high value products
91. In summary:
• Historical growth rate 26%
• Future growth rate – higher than historical
rates
• Introduce high margin, high value products
• Well capitalized
92. In summary:
• Historical growth rate 26%
• Future growth rate – higher than historical
rates
• Introduce high margin, high value products
• Well capitalized
• Regular dividends
93. In summary:
• Historical growth rate 26%
• Future growth rate – higher than historical
rates
• Introduce high margin, high value products
• Well capitalized
• Regular dividends
• Undervalued
Welcome. In today’s climate, allow me to present to you good news. This is a presentation to show how blessed Alliance Tuna is.
There are specific spots in the world where its wealth is offered generously.
Here is where Alliance Tuna gets its produce.
Produce that is well accepted world-wide.
A strong partnership between two leaders in the industry.
-Alliance processes only canned tuna.
-Setting up a cannery is one thing,
-
Food processors need to jump through stringent quality control practices before they can sell their products.-Because the product is for human consumption, all the importing countries have strict quality control policies in place.
-2009 is expected to be another banner year for us. In spite of the worldwide slowdown in growth we expect to grow our top line by 40% to $72.8 million.
-This means that our compound annual growth rate is almost 26%, an
-We have made it a point that we WILL not sacrifice profitability for market share or growth.-This is reflected in our bottom line.
-The shareholder’s equity mirrors the company’s rising profitability. There is a big jump in the number in 2006 as the company went public on November 8 (the second year anniversary of which is 2 days away).
-There are three comparable companies. One listed on the Toronto stock exchange and 2 on the Stock exchange of Thailand.
-The net profit margins of each of these 3 companies ranges from a low of negative 8% to a high of 5.3%. -In 2006, 2007 and YTD 2008 alliance is the most profitable company. Only in 2005, connor brother had a profit margin of 5.3% while we came in at number 2 at 5.1%.
-The returns range from -8.3% to a high of 7.7%. But unlike net profit margins, alliance has highest return in each period compared to the 3 companies.-And these return far exceed those of alliance’s nearest competitor. Eg: ROA in 2005 was 12.7% for us but only 7.7% for Thai Union. In the first six months this year our ROA was 17.9% but TUF was only 6.3%.
-Again, the difference in return between Alliance and its peers is significant.-In each of the 4 periods, alliance is far ahead of its competitors on this metric too.-Their return ranges from a low of -16.3% to a high of 17.8%.-We are the best performing company on this metric and our nearest competitors is TUF. But here too we seem to be pulling ahead of them.-While they returned 13.9% last year versus our 15.0%, in the first six months their ROE was 11.8% while ours was an extremely eye catching 23.8%.
-The overwhelming amount of canned tuna is the skipjack species.
As an exporter we would be very concerned about managing fluctuations in exchange rates.
As an exporter we would be very concerned about managing fluctuations in exchange rates.
Even for the 30% exposure we have, we will end up gaining from this phenomenon.
-One lesson we have learnt well is that it pays to diversify. Just as an investor diversifies his portfolio to minimize his risks, so should we.-What this means that, we will not be a one trick pony, that is we will not continue to sell ONLY canned tuna.
-But we want to stick to the knitting and morph into a regional food company with a basket of canned food products in our portfolio. -This could be other seafood, fruits etc.
-And we will be investing in only those countries where producing that particular canned food has a competitive advantage.
-As far as other food products are concerned, we feel that seafood and other canned products will be a wise investment to make.-As we grow through acquisitions in this segment these products will make a larger percentage of our total sales.
-Tuna is an equatorial fish and Indonesia straddles the equator.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
New Zealand gives us access to another bountiful area of the world.
-Our second investment would be in a company called Prime Foods New Zealand.
-The alliance board gave the management the go ahead with the due diligence of this company.-PF is a smoked salmon processor. They process the King salmon, also known as Pacific or Chinook salmon
-In addition, it also packs the largest national supermarkets in house brand Progressive.
-New Zealand’s is the company’s largest market but it also exports to Australia, the Middle east and south east asia.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.
-The cannery will be located near the town of Manado in north sulawesi province.-This is where one of the 2 export processing zones in Indonesia are located.-The area is very fertile in fish and the cannery will be located in the town of Bitung which is less than an hour’s drive from Manadao.-The fact that there are already 5 canneries in the area is significant. This means that there is the requisite infrastructure to cater to tuna industry already in place.-This area is to Indonesia tuna industry what General santos is to the Phil. Tuna industry.
-The cannery will be called PT International Alliance Foods Indonesia and is located on a 1.42 hectare of land.-It has its own wharf which means that fish can be directly unloaded at the factory rather than be trucked in from the port.