INVESTOR PRESENTATION 3Q18 “ TO BE A REGIONAL LEADER IN STARCH & STARCH- RELATED FOOD PRODUCTS”
DISCLAIMERS “ DISCLAIMERS : THIS REPORT HAS BEEN PREPARED BY THAI WAH PUBLIC COMPANY LIMITED (TWPC) PRELIMINARILY AS A PROPOSAL FOR INFORMATION PURPOSES ONLY ” This information is given in summary form and does not purport to be complete. Information is this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transaction, currency risk. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to TWPC’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements, TWPC does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside TWPC’s control. Past performance is not a reliable of future performance. This Presentation is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose. No part of this presentation may be reproduced or taken or transmitted. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and such restrictions. By accepting this presentation you agree to be bound by the foregoing restrictions. Private for Investor Forum 1
AGENDA Business Highlights Company Overview Starch Business & Food Business Financial Performance Going Forward & Opportunities Appendix Private for Investor Forum 2
Business Highlight
BUSINESS HIGHLIGHTS IN 9M18 • Strong Revenue Growth for “Food Business”, +7% YoY, Rice noodle +36% YoY • Commenced 1 st Thai Wah Bio Power Plant at Udonthani • Commenced Tapioca Chip trading at Thai Wah Cambodia & Vermicelli Noodle at Thai Wah Vietnam • Challenging Raw Material Supply in 9M18 Private for Investor Forum 4
COMMITTED TO EXCELLENCE: OUR 2018 ACHIEVEMENT Private for Investor Forum 5
Business Overview
COMPANY FACTSHEET NAME Thai Wah Public Company Limited Thai Institution NVDR - Thai SYMBOL TWPC 6.7% 7.5% Institution - LRH Foreigner 10.1% 8.9% SECTOR / INDUSTRY Agribusiness / Agro & Food Industry MARKET Stock Exchange of Thailand (SET) Retail - Thai 19.8% Ho Family PAID-UP CAPITAL THB 880.42 million 40.4% Retail - Foreigner 880,420,930 shares (Par THB 1.00) 6.7% COMMON STOCK 5 th October 2015 LISTED DATE Shareholder structure** Free float 46%** DIVIDEND POLICY Increase in absolute dividend payout Market Cap : around 7,440 MB** ** Data as of 30 Sep 2018 Private for Investor Forum 7
THAI WAH BUSINESS OVERVIEW Starch and Related Business Food Products Business Native Starch High-Value Added Vermicelli Rice Noodle Others Native tapioca starch Dry & fresh mung Glucose/Sweetener Dry & fresh rice noodles Bean Sheet for:- bean vermicelli (Shanghai noodle) Modified tapioca starch Food Industry / MSG Tapioca starch Coarse Flour Paper Industry Pearl / Sago Pharmaceutical Sago (Pearl) Textile Industry Alpha starch Adhesive Industry “Native Starch” “Glucose” “Alpha Brand” “Pearl / Sago” “Double Dragon” “Phoenix” “Double Kilin ” “New Grade” Production Base : 1 factory in TH & 1 factory in VN Production Base : 5 factories in TH, 2 factories in VN & 1 factory in CBD Capacity : 22,000 tons for Vermicelli and 4,000 tons for Noodles Capacity : 450,000 tons for Tapioca Starch and 50,000 tons for Glucose Customer Base : ~91% Domestic and ~9% Export Customer Base : ~78% Export and ~22% Domestic (TH only) Private for Investor Forum 8
Starch Business
STARCH APPLICATION PREMIUM FOOD GRADE Pearl Thai Dessert Pharmaceutical Fabric Sweetener Animal Feed Syrup & Dessert Starch Cassava Root Industrial Instant Meal MSG Carton Glue & Adhesive BIO Application Biodegradable Sauces Cosmeti Carton Modified Products c Starch Metal Paper Beverage Industry Private for Investor Forum 10
TAPIOCA PRODUCTION Unit : Million Tons 2010 2011 2012 2013 2014 2015 2016 2017 *2018 *2019 Country Thai 22.006 21.912 26.601 30.228 30.022 32.358 30.558 30.936 25.000 29.000 Vietnam 8.596 9.875 9.746 9.757 10.210 10.453 10.578 10.653 8.000 N/A 4.249 8.214 7.614 7.541 7.933 11.943 13.222 13.387 9.100 N/A Cambodia Laos 0.500 0.362 1.061 1.254 1.630 2.382 2.410 1.558 2.300 N/A Total 35.351 40.363 45.022 48.780 49.795 57.136 56.768 56.534 44.400 The Lowest in seven year Source : ASEAN Food Security Information System (AFSIS) Note : *2018 & 2019 was forecast data from TTTA Private for Investor Forum 11
NATIVE STARCH EXPORT PRICE MARKET USD/Ton 553 560 548 524 520 520 504 496 488 485 473 470 470 480 2018 445 440 425 408 2017 400 365 2015 360 338 329 328 328 328 328 328 320 315 320 2016 280 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year 2015 2016 2017 2018 421 350 504 AVG FOB / tons 345 Source : The Thai Tapioca Trade Association Private for Investor Forum 12
NATIVE STARCH MARGIN GAP Raw material costs decreased less than ASP Baht/Kg. decreased & Thai Baht appreciated in Sep 18 16 14 12 10 Spread is 8 likely to “Stable” 6 4 2 Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 Jun/18 Sep/18 Selling price (Month-1) Selling price (Month) Raw Material Source : The Thai Tapioca Trade Association Private for Investor Forum 13
GROWTH IN EXPORT OF THAI TAPIOCA STARCH Unit : M. Tons 5 4.22 4.14 3.96 40% 4 3.83 35% 3.34 4 3.08 2.84 30% 3 2.68 2.50 2.43 25% 3 1.99 2 20% 2 15% 1 10% 1 5% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 9M18 Source : The Thai Tapioca Trade Association Note Tapioca Starch is including Native & Modified Starch Private for Investor Forum 14
ASIA’S FOOD SITUATION FROM FARM TO SHELF To be globally competitive and innovative Long term trend of Growing Food Demand in ASEAN In 2050, there will be Smallholder 9.7 billion people in farmers produce the world, more than 30% to 80% 50% in Asia of global food supply ASEAN’s urbanization will X2 to 163 million households Consumer patterns change from by 2030 (from 2015) buying staple commodities towards HVA & Quality Food clean, gluten free, non GMO carbohydrates Private for Investor Forum 15
THAI WAH MARKET SHARE 7 % of Total Native Indonesia, Starch Export 13% CHINA in 9M18 Malaysia, • The largest importer of 8% Tapioca Starch in the world • Thai Wah market share was 6.5% in 9M18 Other, 11% China, 51% TAIWAN Taiwan, • The 3 rd largest importer of 9% Tapioca Starch in the world • Thai Wah market share was Japan, 4% 18.7% in 9M18 USA, 4% Source : The Company and The Thai Tapioca Trade Association Note : Data was by Volume Private for Investor Forum 16
DEVELOP A FOOTPRINT ACROSS ASEAN Myanmar Vietnam Opportunities Opportunities Pioneer new small holder farm Enhancement of sweetener business model (2X Yield in 2015) Pho, Bun, Noodle, Rice Flour business Tapioca plantation & Chips Will be market leader in 2018, 3X Expansion into consumer foods, Growth in 2015 for Vermicelli and noodles, sauces, sweetener to tap Noodles on growing middle-class Established new subsidiary Thai Wah Vietnam Company Limited February 7, 2017 Manufacturing and distributing of Cambodia food products VND 22,462 million (Baht 35 million) Opportunities 100% Holding Tapioca plantation and productivity improvement Investments in Tapioca given strong availability of roots Strong border links with Thailand and Vietnam Established new subsidiary Laos TWPC Investment (Cambodia) Opportunities Company Limited Tapioca plantation and productivity January 24, 2017 improvement Manufacturing and distributing of Tapioca chips, starch, export starch products KHR 4,000 million (Baht 35 million) 100% Holding Source : The Company Private for Investor Forum 17
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