Investor Presentation 1Q19 “TO BE A REGIONAL LEADER IN STARCH & STARCH- RELATED FOOD PRODUCTS” 0
DIS ISCLAIMERS “ 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 I BUSINESS HIGHLIGHTS II II COMPANY OVERVIEW III III STARCH & FOOD BUSINESS IV FINANCIAL PERFORMANCE V GOING FORWARD & OPPORTUNITIES VI APPENDIX Private for Investor Forum 2
Business Highlight
BUSINESS HIG IGHLIGHTS IN IN 1 Q 19 + 64 % YoY + 6 % YoY +3% YoY Net Profit Growth Sale Growth Native Starch Volume (Thailand & China) (After NCI) +200 T/D + 33% 1 st 1,000 MB Bond Issue Acquisition of assets Acquisition of additional with TRIS RATING BBB+ from Maesot Starch & shares in TDC Maesot Biogas Private for Investor Forum 4
Business Overview
COMPANY FACTSHEET NAME Thai Wah Public Company Limited Thai NVDR SYMBOL TWPC 4.7% LRH 10.1% SECTOR / INDUSTRY Agribusiness / Agro & Food Industry Other MARKET Stock Exchange of Thailand (SET) 44.8% Ho Family 40.4% PAID-UP CAPITAL THB 880.42 million 880,420,930 shares (Par THB 1.00) COMMON STOCK 5 th October 2015 LISTED DATE Shareholder structure** Free float 45%** DIVIDEND POLICY Increase in absolute dividend payout Market Cap : around 7,176 MB** ** Data as of 31 Mar 2019 Private for Investor Forum 6
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 : 6 factories in TH, 2 factories in VN & 1 factory in CBD Capacity : 23,000 tons for Vermicelli and 4,000 tons for Noodles Capacity : 465,000 tons for Native Starch and 50,000 tons for Glucose Customer Base : ~93% Domestic and ~7% Export Customer Base : ~88% Export and ~12% Domestic (TH only) Private for Investor Forum 7
Starch Business
TAPIOCA PRODUCTION OUTLOOK Raw material recovery from the bottom in 2018 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 27.875 29.975 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 47.275 Recovery from the bottom in 2018 Source : ASEAN Food Security Information System (AFSIS) Note : *2018 & 2019 was forecast data from TTTA Private for Investor Forum 9
GROWTH IN IN EXPORT OF THAI TAPIOCA IN INDUSTRY Native Starch Modified Starch Unit : M. Tons Unit : M. Tons 3.28 3.13 4 3.01 2 2.92 2.94 2 3 2.45 2 2.24 3 1 1.89 1.74 1.03 1.01 2 1 0.95 0.95 0.91 0.90 0.85 0.79 1 0.69 2 0.99 1 0.82 1 1 0.27 0.26 0 1 0 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 Pearl Chip Unit : ‘000 Tons Unit : M. Tons 100 9 90 7.42 6.93 8 80 6.63 6.40 5.93 7 70 6 60 4.77 4.20 4.05 50 5 36.3 3.69 35.4 31.8 30.9 29.7 28.1 40 27.0 4 25.0 23.5 30 3 1.81 10.4 20 1.01 8.3 2 10 1 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 Source : Thai Tapioca Starch Association Private for Investor Forum 10
STARCH APPLICATION Solution Provider Premium Food Grade Private for Investor Forum 11
MARKET POSITION 1 Q 19 China Market Taiwan Market Unit : ‘000 Tons TWPC Unit : ‘000 Tons 1st 2nd TWPC 7% 18% Largest Largest Importer Importer from TH from TH 547 76 Total Starch Export from Thailand to China Total Starch Export from Thailand to Taiwan Unit : ‘000 Tons Unit : ‘000 Tons 1,813 1,766 1,763 2000 1,756 800 1800 1,526 700 1,387 1600 600 1400 500 1200 342 333 321 314 1000 305 400 281 800 547 300 445 600 81 200 76 400 100 200 0 0 2013 2014 2015 2016 2017 2018 1Q19 2013 2014 2015 2016 2017 2018 1Q19 Source : The Company Private for Investor Forum 12
NATIVE STARCH EXPORT PRICE MARKET USD/Ton 553 548 560 524 520 504 520 496 488 485 476 473 480 460 460 460 460 460 453 455 453 2018 440 445 2017 400 360 320 2016 280 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year 2016 2017 2018 2019 350 497 455 AVG FOB / tons 345 Source : The Thai Tapioca Trade Association Private for Investor Forum 13
NATIVE STARCH MARGIN GAP Price movement & Spread is likely to “ Stable ” Baht/Kg. 16 14 12 10 8 1Q19 Margin 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 Dec/18 Mar/19 Selling price (Month-1) Selling price (Month) Raw Material Source : The Thai Tapioca Trade Association Private for Investor Forum 14
DEVELOP A FOOTPRINT ACROSS ASEAN Vietnam Opportunities Enhancement of sweetener business Pho, Bun, Noodle, Rice Flour business Pioneer to introduce Fresh vermicelli Cambodia products to the market Opportunities Tapioca plantation and productivity Established new subsidiary improvement Thai Wah Vietnam Company Limited Investments in Tapioca given strong availability of roots February 7, 2017 Manufacturing and distributing of Strong border links with Thailand and Vietnam food products VND 22,462 million (Baht 35 million) Established new subsidiary 100% Holding TWPC Investment (Cambodia) Company Limited January 24, 2017 Manufacturing and distributing of chip production and trading business KHR 4,000 million (Baht 35 million) Laos 100% Holding Opportunities Tapioca plantation and productivity improvement Tapioca chips, starch, export Source : The Company Private for Investor Forum 15
CASSAVA ROOTS SOURCING STRATEGIES MAESOT THAI WAH SHANGHAI THAI WAH CAMBODIA TDC THAI WAH VIETNAM Source : The Company Private for Investor Forum 16
Food Business
OUR FOOD PRODUCT 1 Dry Vermicelli Fresh Vermicelli Bean Sheet High product quality 2 Dry Rice Noodle Fresh Rice Noodle No chemical preservatives & FOODS gluten-free contents 3 Sago / Pearl Noodle Kit New Grade Product & Food Hygiene certification processes Source : The Company Private for Investor Forum 18
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