Thai Union : Knowledge-Sharing Session "How do we mange FX in TU?
January 18, 2023
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Knowledge Sharing
Foreign Currency Management
Yongyut Setthawiwat
Mayuree Komweerawong
January 19th, 2023
Agenda
Hedging principle at Thai Union
Accounting aspects from hedging
Q&A
Slide 2
Knowledge Sharing
Global supply chain with a market-leading brand portfolio and strong presence in the U.S. and Europe
Others
United States
Europe
19%
and Canada
26%
(Asia, Australia, Middle East, Africa and
44%
South America)
Norway
Russia
UK
Lithuania
Germany Poland
France
USA
Portugal
Atlantic Ocean
Pacific Ocean
Pacific Ocean
India
Thailand
Ghana
Vietnam
Seychelles
Indian Ocean
Thailand
11%
Strategic investments
Brands
Joint venture
Production plant
Innovation center
Remark: *9M22 total sales
Slide 3
FX Exp-Imp risks by region/at global and underlying currencies behind
By region
Transactional perspective
32%
40%
Sales EUR 1,615 mn
•
Rev.: EUR, GBP,
Sales THB 77,593 mn
USD, other smallers
•
Costs: EUR, USD,
• Rev.: USD, THB
other smallers
• Costs: USD, THB, other
smallers
Sales $1,710 mn
• Mainly USD rev., USD costs
28%
Thai/Asia US EU
Global FX
9%
32%
59%
THB
USD
EU
Slide 4
Knowledge Sharing
Financial risk management and treasury policy
Objective: To lock the profitas planned when offering the products, not for speculation
Strategy: Pass on cost, including FX and interest impact, is the key strategy
Today's focusing
From Trading activities:
TH: 100% of AR & 40-85% (from 25-75%) of stock
FX Risk
•
EU & US:
OEM/Branded : 0-6 months : 75 - 100%
6-12 months : 50 - 100%
Premium Branded : 0-12 months : 60 - 100%
Quite straightforward
: 12-24 months : 40 - 80%
Interest Rate
Fixed & Floating:
Risk
•
25 - 75% fixed interest
No concern
From Financing/Investing activities:
FX Principle on Inter-co Loan Principle: 100% hedge
FX Equity Hedging: Group Treasury Team proposes to TU Executive Committee
Slide 5
Knowledge Sharing
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Disclaimer
Thai Union Group pcl published this content on 19 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2023 10:58:04 UTC.
Thai Union Group Public Company Limited is a Thailand-based company. The principal activities of the Company and its Thai subsidiaries are the manufacture and sale of frozen, chilled and canned seafood. The Companyâs segment includes ambient seafood, frozen and chilled seafood and related businesses, pet food, and value-added and other businesses. The Companyâs subsidiaries are also engaged in packaging, printing, pet food, food ingredients and food supplemental businesses. Its subsidiaries in the United States distribute pet food, lobster, and other seafood products and import shrimp and other frozen seafood products for sale to restaurant chains, retailers and wholesalers. Its subsidiaries in Europe manufacture and distribute ambient and chilled seafood products to countries in Europe, the United States and Australia under their trademarks. Its subsidiaries in Asia manufacture and distribute seafood in Vietnam and China. The Company has 17 branches in Bangkok and Samutsakorn.
THAI UNION GROUP 
