Polyplex (Thailand) PLC (PTL) February 26 th , 2018 Third Quarter 2017 - 2018 Financial Results & Summary
Content • Highlights * • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates • Overview about the industry, the management’s beliefs and various other assumptions. These forward-looking statements are subject to • PET Industry Overview various risks, uncertainties and other factors, some of which maybe beyond our control. No assurance is given with regards to • Polyplex Positioning future events or the actual results, which may differ materially from those projected herein. • Strategy • This presentation does not constitute an offer to sell or a solicitation of an offer to buy or sell PTL stock and in no event shall • Financial Performance * the Company be held responsible or liable for any damages or lost opportunities resulting from use of this material • Future Outlook * PTL consolidated basis
Highlights Q3 FY 17-18 YTD Q3 FY 17-18 Net Profit* Net Profit* 176% 28% 357 MN THB 1,059MN THB EBITDA* RoCE EBITDA* RoCE 48% 129% 9% 18% 587 MN THB 12.05% 1,727 MN THB 11.85% RoE RoE 156% 19% 13.85% 13.71% YTD Q3 FY 16-17 Q3 FY 16-17 Net Profit* Net Profit* 129 MN THB 827 MN THB EBITDA* RoCE EBITDA* RoCE 396 MN THB 5.26% 1,591 MN THB 10.05% RoE RoE 5.41% 11.56% Actual Number YoY Growth Actual Number YoY Growth *Normalized for Forex gain/(loss) Highlights
Polyplex – A Global Local Company Netherlands Turkey South Korea USA India China Mexico Thailand Malaysia Singapore Indonesia • Six Manufacturing Facilities in 5 Countries Manufacturing Locations • Multiple warehouses Upcoming Manufacturing Location and Rep offices Parent Company Manufacturing Location around the world Representative Office Warehouse Polyplex Group Overview
Polyplex Business at a glance PET Film Polyester Film Resin Upstream Integration Recycling CPP Polyester Film Core Business Related Diversification BOPP Functional/ Extrusion Blown Film Downstream Integration Coatings (PE/PP) Polyplex Group Overview
Polyplex Corporate Structure Polyplex Corporation – India (Listed) Polyplex Plant Khatima, Plant Bazpur, Thailand India India (Listed) Polyplex Polyplex Polyplex USA Turkey Indonesia Polyplex Group Overview
Capacity Layout 100 1000 KMT PET-Thin PET-Thick BOPP CPP Blown PP PET Film Resin Metallizer Coated Films MN SQM for all other for Coated films Film 90 900 9 80 800 10 35 70 700 60 600 29 50 500 865 81 40 400 78 73 30 300 58 58 58 55 44 42 20 200 31 29 270 22 10 100 18 146 10 6 - 0 Base Film PET Film MET Film Coated Base Film PET Film MET Film Coated Base Film PET Film MET Film Coated Base Film PET Film MET Film Base Film PET Film MET Film Resin Film Resin Film Resin Film Resin Resin India Thailand Turkey USA Indonesia Parent Company Upcoming Expected Capacities Capacities Polyplex Group Overview
Polyester Value Chain Upstream PET Resin, Yarn and Consumer and PET Film Refining and Energy Petrochemicals Preforms Industrial Goods Consumer Staple Steam Cracker PET Yarn Coated Film Crude Oil/ Natural Gas Photovoltaic PTA Plant Aromatics Polyester Resin Plant Plant Window PET Film Protection MEG Plant Electronics Electrical PET Preform Met PET Film Refinery PET Film Industry
Polyester Film Applications • Growing urbanization and developing societies Can Lamination Sachet Pack Susceptor Film Stand Up Pouch Ø Growth rates 6 – 7% for more than 25 years and P expected to continue at the same pace for foreseeable A future C • Food packaging is consumer staple and is K recession proof to a large extent A Aroma Pack Ready 2 Eat Pack Spouted Pack Easy Peeling Lids G • Low packaging cost compared to product cost I • Significantly low carbon footprint compared to rigid N packaging G • Electrical Grade Electronic Grade Window Films New applications keep getting invented for PET PV Backsheets I films keeping the demand evergreen for PET films N Ø Film for LCD, multi – layered capacitors, photovoltaic D cells, flexible electronics, smartphones etc. U • High technological barriers to entry in the industrial S uses of PET film T Liner Grade Optical Grade Construction Graphics Ø High and complex technical specifications R I Ø High risk perception owing to very high ratio of final product cost to PET film cost A L PET Film Industry
PET Film Industry Structure Jiangsu Shuangxing Toray Advanced Uflex Industries SKC China India South Korea Japan USA Polyplex Mitsubishi DuPont-Teijin Jiangsu Sanfangxiang Hengli Group Kolon Industries Oligopolistic Technologically Advanced 7% 6% 42% 5% 5% Top 5, 76% Others, 54% Top 10, 46% Others, 24% 11% 4% 4% 4% 9% 4% 7% 7% 4% 3% Producer wise estimated Production 2017 Country wise estimated Production 2017 • Polyplex: World Leader in PET Film Production Ø Globally 5 th largest producer of PET film Ø Largest producer in SEA Ø Largest producer in Greater Europe PET Film Industry
Polyplex: At the forefront of Evolution of PET Technology Specification Unit 2003 2005 2010 2019 Line Meters per 400 460 550 650 Speed min Final Meters 7.2 8.7 8.7 10.6 Width Layer 1 Layers NA ABA ABC ABA ABC Layer 2 Layer 3 1 st ever to 1 st ever in 2 nd ever in 1 st ever in operate at Polyplex Investment NA the world the world > 500 mpm the World with DMC Polyplex: Leading Player in the industry
Enviable Positioning • Only player with manufacturing presence in Southeast Asia, India, Greater Europe and North America • Widest Product Range Ø Polyester, Polypropylene, Polyethylene Ø Extrusion Coating, Silicone coating, offline coating, Aluminum coating • Polyester film line with integrated resin production • Profitable mix of specialty and standard products Ø Growing portfolio for specialty (bottom line focus) Ø Growing capacity for standard (topline focus) • One of the largest customer bases in the industry Polyplex: Leading Player in the industry
Production Quantities: Base Film 250 KTPA 8 8 8 200 9 9 9 21 21 21 7 3 2 3 9 9 Blown Film 150 9 9 20 20 20 CPP Plain 18 Thick PET 100 Thin PET 167 163 164 128 127 120 120 50 0 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 15 – 16, FY 16 – 17: Actual FY 17-18 : Actual for YTD Q3 FY 17 – 18, Projection for Q4 FY 17 – 18 FY 18 – 19, FY 19 – 20, FY 20 – 21, FY 21 – 22: Projection All plants running at full capacity for last few years; the increase in production in FY 17 – 18 attributable to debottlenecking of plants in Turkey and USA Increase in production in FY 19 – 20 attributable to commissioning of the line in Indonesia and optimization of the line at the USA Ramp up of the Indonesia line will conclude by FY 21 – 22 Polyplex Thailand Overview
Specialized Products & Applications Net Margin from High Value Add and Specialty EBITDA* v/s Net Margin from HVAS (HVAS) Films 2,500 80% MN THB/ annum 800 70% MN THB/ annum 2,000 700 60% 600 50% 1,500 500 40% 400 1,000 30% 300 20% 500 200 10% 100 0 0% - FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 EBITDA (normalized) Net Margin from HVAS as % of EBITDA • In 2013-14 product differentiation withstood the negative cyclical effects • Strategy to increase specialized products & applications over the next few years to further hedge against market cyclicality * Normalized for Forex gain/(loss) and any one time exceptional items (impairment loss in 2015-16) Polyplex Thailand Overview
Revenue Breakup FY 16-17 FY 20-21 Expected 4% 3% 31% 28% 39% 31% 30% 34% Asia North America Europe Others Asia North America Europe Others • Evenly divided Revenue streams from various markets help mitigate market, FX and operational risks • Increasing revenue stream coming from specialty/ value added products mitigates the risk of commodification of the lower end of the market and keeping the operational margins intact Polyplex Thailand Overview
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