A.J. PLAST OPPORTUNITY DAY March 2018 World Class Film Product For Ultimate Customer Satisfaction
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AJ snapshot: One-stop BO (biaxially-oriented) film manufacturer Business description Value chain • AJ is a BO (biaxially-oriented) film manufacturer, offering one-stop service for BO film used primarily in flexible packaging Resin Product • Expanded into CPP film and off-line chemical coating film to enhance product producer Upstream manuf. portfolio and add value to existing products e.g. IVL, BO film Converter petrochem. e.g. food Consumer PTTCH, producer / Printer • AJ is capable of producing full range of flexible packaging films which are: industry processor UBE, Product BOPP BOPET BOPA CPP (CPF, TUF) TPC Capacity (MT/yr) 132,000 62,000 18,000 16,000 (as of 1Q2017) Plastic Plastic Packaging Finished • AJ is founded in 1987 and listed on the SET in 1990 resin film goods • SET Ticker - AJ • Bloomberg Code - AJ:TB Financial highlight Top 10 Shareholders Production Capacity 56.52 1. กลุ่มครอบครัวสุทธิสัมพัทน์ 1 Unit: MB 2017 2016 2015 2014 2013 140000 6.36 2. กลุ่มครอบครัวฉัตรพิริยะพันธ์ Revenue 7,879 7,032 6,259 6,545 5,452 120000 3.65 3 . กลุ่มครอบครัว ชลคดีด ำรงกุล 100000 Net profit 443 121 4 -248 -98 4. บริษัท ไทยเอ็นวีดีอำร์ จ ำกัด 1.30 80000 Total 1.04 5. นำงปริญญำ ขันเจริญสุข 8,549 8,495 8,244 8,243 7,542 60000 assets 1.00 6. นำยทิตนนท์ นำคะศิริ 40000 D/E ratio 1.43 1 .62 1.6 1.62 1.22 0.88 7. นำงรณิต ศุภพิพัฒน์ 20000 0.69 P/E 11.32 47.11 - - 54.69 8. นำยโชคชัย ธรรมยุติกำร 0 0.68 9. นำยสมเกียรติ เทิดทูลทวีเดช Market 4,793 4,553 2,397 3,535 3,695 cap. 0.63 10. นำยสันติชัย เตียวสมบูรณ์กิจ
PRODUCTION FACILITY Factory area of over 27.5 acres (112,000 m²) Receive promotional privileges from the Board of Investment Zone3, Chonburi Province. Strategically located on Eastern part of Thailand within the same estate as Laem Chabang Port, the main deep sea port of Thailand
Schematic of BO Film Industry BOPA Price/Function BOPET BOPP Consumption
A.J. PLAST’S CAPACITY BOPP BOPET BOPA CPP MET BOPLA COATED 136,000 18,000 64,000 16,000 22,000 5,000 6,000 Metric Tons Metric Tons Metric Tons Metric Tons Metric Tons Metric Tons Metric Tons 4 Lines 2 Lines 1 Line 4 Lines (Wire) Utilize Another 1 Line 2 Lines 1 Line Production (Crucible) Line’s Capacity 5.8 Meter 2.5 Meter Y2016 Y2017 TOTAL INSTALLED CAPACITY 262,000 MT per annum • In-process inspection system for defect detection • In-line gauge control system
A.J. PLAST’S NEW INVESTMENT BOPA MET ( LISIM ) 12,000 6,000 Metric Tons Metric Tons 2019 2018 * Capacity per annum
Equipped with engine to achieve growth: Leader in Southeast Asia Well-planned capacity expansion Additional capacity towards leadership VALUE Year BOPP BOPET BOPA CPP ADDED LINE • 1 st BOPP 1987 30,000 • 2 nd BOPP • 1 st BOPET 1995 • 1 st Metallizer 2001 • 3 rd BOPP • 2 nd BOPET • 2 nd Metallizer 2003 • 1 st BOPA 2006 • 4 th BOPP 2008 • 3 rd Metallizer 2010 • 3 rd BOPET • 2 nd BOPA 2011 • 5 th BOPP • 4 th BOPET 2013 254,000 • 4 th & 5 th • 6 th BOPP • 1 st CPP 2014 Metallizer Total Capacity • 6 th Metallizer 2015 • 1 st Coater 2016 SEA’s largest BO film producer • 7 th Metallizer 2018 in all segments since 2014 • 3 rd BOPA 2019
Recent structural changes of packaging industry: Catalyst for BO film demand Flexibility and functionality at competitive cost for producer and affordable price for consumer is key driver of flexible packaging trend at present The market is overwhelmed by Flexible packaging has gradually various packaging alternatives What is the BEST one? replaced conventional ones U.S. packaging industry (2009) Key requirements for packaging Conventional Basics • Contain, Inform, Protect, Transport & Display Economy • Easy to manufacture & cost efficient Logistics • Easy to handle, store & transport Environment Flexible • Minimum use of resources • Easy to empty / recycle Health • Protect the product from chemical / biological exposure Usability Flexible packaging provides many consumer • Easy to open, hold & close conveniences including extended shelf life, easy • Inform consumers about the product storage, microwaveability & resealability Source: U.S. Census Bureau data & Flexible Packaging Association estimates
Flexible packaging: Significant value and benefits to the market Advantages of FP over alternative packaging Flexible packaging (FP) sustainability initiatives 1 2 3 4 Glass bottle Beverage packaging Plastic PET Aluminum Stand-up example & metal cap bottle & cap can flexible pouch FP waste can be FP reduces Product weight (g) 236 236 236 199 reproduced into waste, energy Resource Sustainability Packaging weight (g) 198.4 22.7 11.3 5.7 new FP consumption & Recovery Advantages Product-to-Packaging greenhouse gas 1:1 10:1 21:1 35:1 FP waste may be Ratio FLEXIBLE emission used as feedstock PACKAGING (FP) Packaging weight per 83.9 9.6 4.7 2.8 to produce 100 g product (g) gaseous & liquid MSW /1 landfill 54.5 6.0 2.4 2.8 fuel Light per 100 g product (g) Weighting Energy consumption 3.36 3.00 0.99 0.45 (MJ/8 oz) Emissions 0.29 0.18 0.08 0.02 (Kg Co 2 e/8 oz) The lightweight package produces “less waste at the first place” • The flexible beverage pouch consumes ½ the amount of energy compared Examples of light weighting between 2005 -2011: to the closet alternative • Barrier enhancement: resulted in 50% less material for the same barrier • The flexible beverage pouch generates ¾ less emission than the closet alternative • Material toughness: layers reduced up to 50% • The flexible beverage pouch uses less space in shipping than other • Coextrusion technologies: enable weight reduction of up to 33% alternatives, reducing transportation emission while saving costs • Equipment innovation: allows some film thickness to be reduced to 50% Remark: /1 MSW stands for municipal solid waste Source: FPA (Flexible Packaging Association) Case Studies
Flexible packaging: Promising growth industry Global Flexible Packaging Industry growing at CAGR of 4.1% to reach $231 billion by 2018 The global flexible packaging market will grow at a rate of 3.5% PA until the year 2018, according to a major new study by Smithers Pira. “The world consumer flexible packaging market has picked up significantly since the global economic downturn of 2008-9 and is forecast to grow at CAGR of 4.1% during the period 2013-2018, to reach a total of 29.8 million tonnes .”
Flexible packaging: Promising growth industry
BIOBASED PORTFOLIO
BOPP Film HBF Film BIOMASS for reduction of CO2 • • Anti-fog (cold & hot conditions) Excellent transparent properties • • Compose of bio-based polymer Available for food contact • Both sides heat-sealable U.S.21 CFR FDA Regulation Part 177.1520
World 1st Bio-PA film: EN
A.J. PLAST PLC Bio-based film for a better tomorrow: GP
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