Polyplex (Thailand) Public Limited Company Analyst Meet Nov’ 2010
Contents • BOPET Film Industry • Polyplex group • Polyplex Competitive Strength • PTL : Financial Performance • Current Industry Scenario & Outlook 2
Film business - Value Chain Polyplex’s area of operation P PTA Supplier E Industrial T Buyers B R A E MEG S Supplier S E I N F I L M FMCG Converters S Companies 3
BOPET Thin Film Application 4
BOPET Thick Film Application 5
BOPET Film • BOPET is mainly segmented into Thin & Thick Films – Thin Film : 50 Micron & Under (75% of total BOPET) – Thick Film : Over 50 Micron (25% of total BOPET) • The industry capacity is mainly divided based on above Thickness segments. • Some lines are designed to produce intermediate range of Films from 12µ to 100µ • Major End use of BOPET Film are – Imaging & Graphics – Magnetic Tape – Packaging & Metalizing : Main Segment for POLYPLEX – Electronics / Electricals – Other Industrial 6
BOPET Film – Influencers on Price COST DRIVEN FACTORS MARKET DRIVEN FACTORS CRUDE OIL PRICE IMPACT ON POLYESTER FILM (60%) PTA MEG ENERGY COST (FUEL / POWER) LOGISTICS COST DEMAND – SUPPLY BALANCE CURRENCY VOLATILITY COUNTRY EXPORT COMPETITIVENESS IMPORT INTENSITY CURRENCY WAR TRADE AGREEMENTS AND BARRIERS PROTECTIONISM, ANTI-DUMPING BILATERALISM & REGIONAL TRADE 7
BOPET Global Demand Supply BOPET Thin Film "KMT" 2004 2009 2014 E BOPET Thick Film "KMT" 2004 2009 2014 E Capacity 1,388 2,171 3,166 Capacity 626 847 1,137 Production 1,235 1,806 2,781 Production 479 587 829 Capacity Utilisation % 89% 83% 88% Capacity Utilisation % 77% 69% 73% Demand 1,235 1,806 2,843 Demand 479 587 829 Imaging & Graphics 8 6 4 Imaging & Graphics 203 161 133 Magnetic Tape 94 22 7 Magnetic Tape - - - Packaging & Metallising 730 1,232 1,998 Packaging & Metallising 4 17 32 Electrical / Electronics 59 90 187 Electrical / Electronics 142 248 443 Other Industrial 344 456 647 Other Industrial 131 161 221 *Source: Industry Sources • Largest End use :Flexible Packaging - which accounts for more than two-third of total Thin Film used. • Thin Film demand has witnessed a CAGR of about 8% Per Annum (2004-09) and expected to grow at CAGR of 9.5% (2010-2014). • Thick Film market has grown at a CAGR of about 4% per annum (2004-09) and is expected to grow at CAGR of 7.2% (2010-2014). • The above CUF is based on “Name Plate” Capacity. Achievable peak CUF is 85%- 90% for Thin Film and 70% - 75% for Thick Film against Name Plate Capacity. 8
Packaging :Sustainable Growth • Diversified application of BOPET has resulted in Sustainable Growth at better than World GDP Growth rates. • The growth in packaging segment proves it resilience to recessionary factors. 9
BOPET (Thin + Thick) World PET Film Market estimated at USD 9.5 billion in 2010 10
Segment wise Demand of BOPET Film 4000 7 137 9 3500 140 11 630 147 15 3000 575 154 17 508 22 160 2500 28 868 444 32 167 820 389 172 42 766 178 338 2000 55 333 710 181 293 94 659 198 255 617 222 211 1500 638 201 616 568 524 1000 2030 474 1863 1698 1545 1392 1249 1149 1046 500 951 842 734 0 2004 2005 2006 2007 2008 2009 2010E 2011E 2012E 2013E 2014E Packaging Other Industrial Electrical Imaging Magnetic Tape • BOPET (Thin + Thick) Film demand expected to grow @ CAGR of 9% • Packaging is expected to grow @ CAGR of 10% 11
Structural Shift in Application of BOPET 4000 • P-I-E segment to 4% continue to grow at 3500 robust rate 17% 3000 • Electrical segment to witness highest 1% 2500 24% 7% growth rate of 13%. 2000 14% 5% • Growth in Electrical 26% 12% 1500 due to new 12% applications. 55% 1000 28% • Packaging to follow 52% 500 closely at 10% 43% K MT 0 • Imaging and Tapes 2004 2009 2014 E to experience “Negative” growth Packaging Other Industrial Electrical Imaging Magnetic Tape 12
Packaging : Growth Drivers Changing Consumer Habits, convenience is the key Consumer demand for fresh and healthy food, beverages driving need for intelligent as well as high barrier packing Emergence of strong Retail sector Securing product from counterfeiting Sustainability - Growing concern on carbon footprint, promotion of Green Technology 13
Sustainable Packaging: Key Drivers • Emphasis on sustainable packaging due to growing world wide concern on carbon foot print and promotion of green technology • Recyclability, bio-degradability, bio-materials • Customer’s requirements are the most influential factor for driving the manufacturers towards sustainability • Driven by Global Majors like Wal-Mart, TESCO, P & G, Unilever, Nestle, Pepsi, Coca-Cola, etc.
The Industry Structure :Evolution Point of Inflection Near shoring Specialization Consolidation Regionalization Point of Inflection Consolidation, Structural Shift Acquisitions Fragmented and Closures Capacity Add. in Europe/ Emergence of SE Asia/ India Korean Players Emergence of Japanese Players Dominance by few large players Mid Early Early Late Mid Early Early Mid 2000 2010 2000 90s 90s 80s 90s 80s
Contents • BOPET Film Industry • Polyplex group • Polyplex Competitive Strength • PTL : Financial Performance • Current Industry Scenario & Outlook 16
Polyplex Group – Global Presence Thailand: India : Plant 1 & Plant Turkey: Plant 3 Plant 2 4 Factories Warehouses Manufacturing Locations – India (PCL), Thailand (PTL) & Turkey (PE) Distribution Companies – USA (PA) & China (PTSL). Warehouses – 12 in USA, 3 in Mexico, 1 in Poland & 1 in Guangzhou, China 17
Polyplex Group Structure Polyplex Corproation Limited 100% Polyplex (Asia) Pte. Ltd. (PCL/Polyplex India) (PAPL) SINGAPORE INDIA 9.88% 16.5%% 43.5% 9.88% Public/ Polyplex (America) Polyplex (Thailand) Plc.. (PTL/Polyplex Institutional Inc. (PA) USA Thailand) THAILAND Private Investor Shareholdrers 80.24% 40% 100% Polyplex (Singapore) Pte. Ltd. Polyplex Trading (Shenzhen) 100% (PSPL) SINGAPORE Co. Ltd. (PTSL) CHINA Outside Interest 100% Investment Company Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE/ Polyplex Turkey) TURKEY Manufacturing Company Distribution Company 18
Polyplex Group: Serving Customers Worldwide More than 1,200 Customers in 80 countries • Customer solution oriented sales and technical • Distributors & agents increase reach and service services teams (region specific ) & Global Innovation small customers Centre PCL- SAARC, GCC and Africa • Customer centric customized delivery model: PTL- SEA, Far East & Oceania – Container loads drop-shipped for cost- effectiveness PE - Europe & CIS countries – Local warehousing support for higher flexibility • Distribution subsidiaries in & security PA - North and South America, Canada & Mexico PTSL- China
Polyplex : Business Strategy Thailand India Turkey • We’re a fully integrated , global manufacturer of plastic films with Concentric Diversification into BOPP & CPP • Our vision is to continuously grow , create value and establish global leadership in the plastic film business • We’re expanding to meet demand in new geographies and for new applications like Extrusion lamination, Silicone Coated release films etc. • Continually balance our Product & Market Portfolio to increase stability of our Earnings. • Judicious mix of On-shore , Off-shore and Near-shore strategy. 20
Onshore/Offshore Vs Near shore: Strategy Near-shore On-shore Off-shore PET Producer PET Producer PET producer - Service/Warehouse - Service -No Service - Small Quantity - Small Quantity - Container load - Quick Delivery - Quick Delivery - Lead time - Local Presence - Local Presence - Far away - Technical Services - Technical Services Medium cost Low cost Higher cost & & & Low delivered Low delivered Higher Price Price Price Customer
Polyplex Group: Existing Capacities PET FILM (151,000 TPA) MET FILM (42,500 TPA) 58000 51000 11000 Polyplex :Product Portfolio 16300 42000 PET Film 151 KTPA,CPP 10KTPA, BOPP 15200 35 KTPA INDIA THAILAND TURKEY 10000 35000 INDIA THAILAND TURKEY 151000 Offline Coater 310 Mn SQM PET RESIN 192,200 TPA 150 160 57600 77600 PET FILM (TPA) BOPP (TPA) CPP (TPA) 57000 SILICONE COATING (Mn Sqm)-India EXTRUSION COATING (Mn Sqm)-Thailand INDIA THAILAND TURKEY 22
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