Ati Investors Presentation.Key

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  • 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.










  • Alliance Tuna is no longer just in tuna.
  • Alliance Tuna is no longer just in tuna.














  • Ati Investors Presentation.Key

    1. 1. Alliance Tuna I n t e r na t i o na l Co r p o rat io n
    2. 2. The Best of the Earth’s Bounty
    3. 3. ere are places in the world that are especially blessed. All rights reserved Estima 2008
    4. 4. In the Pacific ocean, there is one very special spot. All rights reserved Estima 2008
    5. 5. Here you will nd the richest shing waters for tuna. All rights reserved Estima 2008
    6. 6. All rights reserved Estima 2008
    7. 7. All rights reserved Estima 2008
    8. 8. is is the produce of Alliance Tuna. All rights reserved Estima 2008 One of the largest exporters of tuna in the country.
    9. 9. TUNA started operations in 2004; went public on November 8, 2006. All rights reserved Estima 2008
    10. 10. Alliance Tuna processes only canned tuna. All rights reserved Estima 2008 Which we do very, very well.
    11. 11. All of Alliance Tuna’s produce is exported. Production capacity is All rights reserved Estima 2008 140 metric tons a day.
    12. 12. Making it one of the largest tuna canneries in the country. And, most probably, All rights reserved Estima 2008 the fastest growing in the world.
    13. 13. Alliance Tuna has its own can making plant. All rights reserved Estima 2008 Controlling the cost of an important part of its product.
    14. 14. All rights reserved Estima 2008
    15. 15. You will nd Alliance Tuna under some of the most well known labels in the world. All rights reserved Estima 2008
    16. 16. We don’t sell locally which is why we’re relatively unknown. All rights reserved Estima 2008 Alliance Tuna has been growing quietly & successfully.
    17. 17. We don’t sell locally which is why we’re relatively unknown. All rights reserved Estima 2008 Alliance Tuna has been growing quietly & successfully.
    18. 18. Manufacturing a world-class product is one thing. All rights reserved Estima 2008 Marketing it to the world is a whole different ballgame.
    19. 19. e World is a difficult customer.
    20. 20. e World is a difficult customer.
    21. 21. We need the approval of innumerable authorities and regulatory bodies. All rights reserved Estima 2008
    22. 22. USFDA European Union EFSIS Higher Approval (BRC and IFS) HACCP Recognition Certified Halal Certified Kosher All rights reserved Estima 2008 Bureau of Fisheries A sustainable quantity Dolphin-safe tuna and Aquatic Resources
    23. 23. is is Alliance Tuna International, Corp. All rights reserved Estima 2008 Growing quietly.
    24. 24. From 20 countries in 2004... to over 150 clients in more than 50 countries. All rights reserved Estima 2008
    25. 25. 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 All rights reserved Estima 2008 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
    26. 26. This impressive base of clients is Our insurance against the economic slowdown. All rights reserved Estima 2008
    27. 27. Net Sales (USD Millions) • Sales almost tripled in 5 years. • From $18 million in 2004 to $51.6 million* in 2008.
    28. 28. 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.
    29. 29. Compound annual growth rate is • almost 24%. A most impressive rate • for a food company. All rights reserved Estima 2008 It is growth few publicly listed • companies can match.
    30. 30. 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.
    31. 31. 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.
    32. 32. Stockholder's Equity (USD Millions) The goal is to increase shareholder value.
    33. 33. 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.
    34. 34. 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 All rights reserved Estima 2008 the Sea, manufactures canned and frozen tuna and seafood. • Tropical Canning ailand based, exporter of canned and pouched seafood.
    35. 35. Net Pro t Margins
    36. 36. Net Pro t Margins 2005 2006 2007 2008 Connors 5.3% 5.0% -8% -4.1% Bros. Thai 3.9% 3.5% 3.3% 3.7% Union Tropical 0.8% -2% -2.2% 2.6% Canning Alliance 5.1% 6.5% 5.4% 6.2% Tuna
    37. 37. Return on Assets
    38. 38. Return on Assets 2005 2006 2007 2008 Connors 4.9% 4.9% -8.3% -4.5% Bros. Thai 7.7% 7.2% 5.4% 7.0% Union Tropical 1.1% -3% -3.3% 5.2% Canning Alliance 12.7% 14.6% 12.3% 14.2% Tuna
    39. 39. Return on Equity
    40. 40. Return on Equity 2005 2006 2007 2008 Connors 8.4% 8.6% -16.3% -8.4% Bros. Thai 17.8% 15.5% 13.9% 16.0% Union Tropical 1.5% -4.4% -4.8% 7.3% Canning Alliance 19.3% 15.7% 15% 19.2% Tuna
    41. 41. EPS, P/E & Book Value
    42. 42. 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
    43. 43. Dividend Payouts •2007 - 12% stock dividend •2008 - PHP 0.02/share cash All rights reserved Estima 2008 dividend
    44. 44. Allow us to answer frequently asked questions. All rights reserved Estima 2008
    45. 45. “Aren’t we running out of tuna?” All rights reserved Estima 2008 We do not sh for or process blue n & bigeye tuna. ese two tuna species are declining.
    46. 46. Skipjack tuna is what the world eats and what Alliance sells. “Skipjack Tuna have high fecundity and All rights reserved Estima 2008 relatively fast growth rates which has the potential to buffer sh populations.” Source: Blue Ocean Institute
    47. 47. “Won’t the world-wide recession affect tuna sales?” Tuna is staple fare in the importing All rights reserved Estima 2008 countries. e crisis may, in fact, affect sales positively.
    48. 48. While tuna is recession resistant the company has an added advantage. Amidst the credit crunch... Alliance is well positioned as it has All rights reserved Estima 2008 no long term debt and does not depend on borrowings for its operations.
    49. 49. “Won’t the foreign exchange uctuation hurt Alliance?” All our clients are billed All rights reserved Estima 2008 in US dollars. 70% of our costs are in that currency.
    50. 50. All our nancial statements are in US Dollars. All rights reserved Estima 2008 Banks predict a devaluation of the peso.
    51. 51. You will nd Alliance Tuna under some of the most well known labels in the world. All rights reserved Estima 2008
    52. 52. for an encore? What do you do All rights reserved Estima 2008
    53. 53. 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.
    54. 54. New products. Investment criteria: Acquisition without debt. More profitable than tuna. Where we can contribute.
    55. 55. Indonesia Tuna is equatorial fish. PT International Alliance Food All rights reserved Estima 2008
    56. 56. Indonesia Tuna is equatorial fish. PT International Alliance Food All rights reserved Estima 2008
    57. 57. e acquisition provides Alliance Tuna access... All rights reserved Estima 2008 To the biggest tuna and marine resource in the world Thus guaranteeing a permanent supply of raw material And ensuring future growth and profitability.
    58. 58. 1.42 hectare of land.Own wharf so sh can All rights reserved Estima 2008 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.
    59. 59. New Zealand All rights reserved Estima 2008
    60. 60. New Zealand All rights reserved Estima 2008
    61. 61. New Zealand All rights reserved Estima 2008
    62. 62. Prime Foods New Zealand All rights reserved Adformatix 2008
    63. 63. Smoked salmon processor with Prime Smoke & Studholme brands, products in 300 supermarkets in NZ. Packs for Progressive, exports to Australia, Middle East & SE Asia. All rights reserved Adformatix 2008
    64. 64. 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 All rights reserved Estima 2008 •Private label packer for largest supermarket chain in NZ (300 stores) •Sells in Australia (600 stores), Singapore and UAE
    65. 65. Products • Processes King Salmon –Aquaculture –Sourced from NZ farms –Higher margins than Atlantic salmon –Best selling products All rights reserved Estima 2008 •Prime Smoke Shavings – 100 grams •Prime Smoke Slices – 100 grams •Prime Smoke Hot Smoked Slices – 200 grams
    66. 66. 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 All rights reserved Estima 2008
    67. 67. 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 All rights reserved Estima 2008
    68. 68. Filleting All rights reserved Estima 2008
    69. 69. Skinning & Brine Injection All rights reserved Estima 2008
    70. 70. Trimming & Boxing All rights reserved Estima 2008
    71. 71. Slicing & Packing All rights reserved Estima 2008
    72. 72. Hot Smoke All rights reserved Estima 2008
    73. 73. Dispatch All rights reserved Estima 2008
    74. 74. Award Winning Supplier All rights reserved Estima 2008
    75. 75. Awards • Emerging Exporter of the Year 2003 - Finalist • Progressive Enterprises Supplier of the Year 2004 & 2005 • New Zealand Food Awards 2000 All rights reserved Estima 2008 - Gourmet Foods Category Winner - Food Assurance Award Winner
    76. 76. Products of Prime Foods All rights reserved Adformatix 2008
    77. 77. Products of Prime Foods All rights reserved Adformatix 2008
    78. 78. All rights reserved Estima 2008
    79. 79. Alliance Tuna
    80. 80. Alliance Tuna No longer just in the Philippines. No longer just in tuna.
    81. 81. In summary:
    82. 82. In summary: • Historical growth rate 26%
    83. 83. In summary: • Historical growth rate 26% • Future growth rate – higher than historical rates
    84. 84. In summary: • Historical growth rate 26% • Future growth rate – higher than historical rates • Introduce high margin, high value products
    85. 85. In summary: • Historical growth rate 26% • Future growth rate – higher than historical rates • Introduce high margin, high value products • Well capitalized
    86. 86. In summary: • Historical growth rate 26% • Future growth rate – higher than historical rates • Introduce high margin, high value products • Well capitalized • Regular dividends
    87. 87. In summary: • Historical growth rate 26% • Future growth rate – higher than historical rates • Introduce high margin, high value products • Well capitalized • Regular dividends • Undervalued
    88. 88. ank you. All rights reserved Estima 2008

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