Polyplex (Thailand) PLC (PTL) Jun 13 th , 2018 Fourth Quarter & - PowerPoint PPT Presentation

Polyplex (Thailand) PLC (PTL) Jun 13 th , 2018 Fourth Quarter & Full Year 2017 - 2018 Financial Results & Summary

Polyplex – A Global Local Company Netherlands Japan Turkey South Korea USA India China Mexico Thailand Malaysia Singapore • Six Manufacturing Indonesia Facilities in 5 Countries Manufacturing Locations Upcoming Manufacturing Location • Multiple Parent Company Manufacturing Location warehouses and Representative Office Rep offices around Upcoming Representative Office the world Warehouse Highlights

Financial Highlights Q4 FY 17-18 FY 17-18 Net Profit* Net Profit* 76% 38% 375 MN THB 1,434 MN THB EBITDA* RoCE EBITDA* RoCE 37% 59% 19% 26% 599 MN THB 12.49% 2,348 MN THB 12.05% RoE RoE 61% 26% 14.25% 13.64% FY 16-17 Q4 FY 16-17 Net Profit* Net Profit* 213 MN THB 1,040 MN THB EBITDA* RoCE EBITDA* RoCE 437 MN THB 7.84% 1,973 MN THB 9.60% RoE RoE 8.84% 10.79% Actual Number YoY Growth Actual Number YoY Growth *Normalized for Forex gain/(loss) Highlights

Production: Base Film Q4 FY 17-18 FY 17-18 PET - Thin CPP PET - Thin CPP 2.5% -3.0% 5.0% -6.5% 30,654 MT 2,229 MT 125,724 MT 8,670 MT PET - Thick Blown Film PET - Thick Blown Film 3.3% 9.8% 5.5% 8.7% 5,345 MT 897 MT 19,500 MT 3,140 MT Q4 FY 16-17 FY 16-17 PET - Thin CPP PET - Thin CPP 29,912 MT 2,299 MT 119,762 MT 9,274 MT PET - Thick Blown Film PET - Thick Blown Film 5,176 MT 817 MT 18,479 MT 2,888 MT Actual Number YoY Growth Actual Number YoY Growth *Normalized for Forex gain/(loss) Highlights

Production: Value Added Film Q4 FY 17-18 FY 17-18 Metallized Film Saralam Metallized Film Saralam 10.3% 3.7% 4.4% 0.4% 7,035 MT 55 MN SQM 27,797 MT 209 MN SQM Offline Coated Saracote Offline Coated Saracote 42.2% 13.5% 18.6% 21.6% 410 MT 67 MN SQM 1,388 MT 268 MN SQM Q4 FY 16-17 FY 16-17 Metallized Film Saralam Metallized Film Saralam 6,380 MT 53 MN SQM 26,614 MT 208 MN SQM Offline Coated Saracote Offline Coated Saracote 288 MT 59 MN SQM 1,170 MT 220 MN SQM Actual Number YoY Growth Actual Number YoY Growth *Normalized for Forex gain/(loss) Highlights

EBITDA* (PTL Consolidated basis) 5,000 45% MN THB • Over 6X growth since 4,500 4,341 40% downturn in 2013 4,000 • 35% Supernormal profits in 2010-11 due to industry 3,500 30% upcycle 3,000 • Growth led by 25%  Capacity expansion 2,348 2,500  Product Portfolio 20% 1,973 1,944 2,000 enhancement  Recovering industry 1,495 15% 1,465 1,452 1,500 margins 1,206 10% 879 1,000 696 407 5% 500 - 0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Normalized EBITDA# As % of Revenue * Normalized for Forex gain/(loss) and one time exceptional items (impairment loss in 2015-16) Financial Performance

EPS (PTL Consolidated basis) • EPS back on positive trend Normalised EPS# (annualized) post downturn in 2013 6.00 • Supernormal profits in line with the industry 4.82 5.00 wide trend in 2010-11 • The Rights issued in 2016 4.00 resulted in dilution of EPS – the improvement would 3.00 have otherwise been more impactful 1.85 2.00 1.59 1.22 1.18 1.14 1.07 1.00 (0.12) (0.11) 0.37 0.28 - 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 (1.00) * Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16) Financial Performance

EBITDA vs EPS 2,348,230 0.42 1.59 0.40 596,553 587,190 1,973,425 1.18 433,174 0.24 Q4 16-17 Q3 17-18 Q4 17-18 FY 16-17 FY 17-18 Q4 16-17 Q3 17-18 Q4 17-18 FY 16-17 FY 17-18 Normalized* EBITDA (On PTL consolidated basis) in ‘000 THB Normalized* EPS in THB/ Share • EBITDA and EPS both on increasing trend QoQ (Sequential) and YoY * Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16) Financial Performance

RoCE: Recovery to Growth Key drivers 12.05% • Improvement in CUF of investments made in 2011 – 9.60% 12 • 7.40% Capacity expansion by debottlenecking of existing assets • Expanding customer base 2.27% • Investing in assets and technology to broaden the product portfolio • FY 14-15 FY15-16 FY 16-17 FY 17-18 Continued focus on cost reduction and efficiency improvement ‘Kaizen’ * Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16) Financial Performance

Specialized Products & Applications EBITDA v/s Net Margin from HVAS Net Margin from High Value Add and Specialty (HVAS) Films 2,500 80% MN THB/ annum 800 MN THB/ annum 70% 2,000 700 60% 600 50% 1,500 500 40% 400 1,000 30% 300 20% 200 500 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) Initiatives

Initiatives: Past, Present and Future FY 17 – 18 FY 18 – 19 FY 19 – 20 • • • Production capacity Startup of metallizer in the Startup of PET film line, PET enhancement (~4%) through USA (6 KTPA) Resin plant and metallizer in • debottlenecking of Turkey Startup of Blown Film line – 2 Indonesia operations (1 st Phase) • (4.2 KTPA) Startup of Silicone coating line • • Production efficiency Debottlenecking of PET film and offline coater in Thailand • improvement (~18%) at USA line at Thailand (Phase 1) Debottlenecking of PET film line at Turkey (2 nd Phase) • • Energy saving through New Products under  Engine and Resin Plant • development New Products Target  Super High Barrier  High end Silicone coated Heat Recovery at Turkey  Twin Screw Extruder and metallized films films for electronics  Top layer PV film EG Recovery at Thailand applications •  Scuff free films  Integrated film for PV New Products developed:  High barrier Alox films  Base film for high end application  Colored films  Ultra clear top and Silicone coating  Ultra Matte films (electronics) middle layer films for  Soft touch films bifacial PV module  Film for Medical patches Initiatives

Indonesia Project Update • Land Specification Unit Value Remarks  Acquisition completed Line Meters  Leveling completed 650 Fastest ever Speed per min  Piling in progress Final Meters 10.6 Widest ever • Machinery Width  Major machines ordered Layer 1 Varied surface Layers NA ABC Layer 2 properties • Financing Layer 3 Thickness  Equity infused µ 8 – 125 Varied applications Range  Funding in place Production Capacity KTPA 44 Most productive ever • Startup: expected Q3 2019 Other special features NA NA Direct Melt Casting Initiatives

Global Demand and Supply • Robust demand growth ~6% 8,000 100% 88% 90% 85% • Current CUF (76%) shows some 7,000 83% 80% 76% 80% 73% spare capacity in the industry 6,000 70% 70% • Improving industry margins reflect 5,000 60% KMTPA * narrowing demand supply gap 4,000 50%  VA in China and Far East * on a rising 40% 3,000 trend 30% 2,000  Margins are likely to continue to 20% increase in near term 1,000 10% 0 0% 2011 2016 2017 2018 2019 2020 2021 Global Capacity Global Demand CUF (%) *As per Industry Reports PET Film Industry Outlook for future

RM and Film Prices Trend Outlook Europe Far East 2.50 2.00 2.00 1.50 EUR/ KG 1.50 USD/ KG 1.13 1.13 1.14 1.05 1.03 0.99 0.98 0.93 1.00 1.00 0.50 0.70 0.50 0.67 0.60 0.57 0.52 0.53 0.53 0.51 0.00 0.00 Q1 FY 16- Q2 FY 16- Q3 FY 16- Q4 FY 16- Q1 FY 17- Q2 FY 17- Q3 FY 17- Q4 FY 17- Q1 FY 16- Q2 FY 16- Q3 FY 16- Q4 FY 16- Q1 FY 17- Q2 FY 17- Q3 FY 17- Q4 FY 17- 17 17 17 17 18 18 18 18 17 17 17 17 18 18 18 18 PET Film (12 Mic.) PTA MEG VA Over PTA & MEG PET Film (12 Mic.) PTA MEG VA Over PTA & MEG USA 3.50 • All the numbers mentioned in the graphs above are 3.00 from the industry reports 2.50 USD/ KG 1.72 • The main RM for PET film: PTA and MEG 1.70 1.67 1.65 2.00 1.58 1.57 1.59 1.55 1.50  Prices of PTA and MEG move in tandem with crude oil prices 1.00  Crude oil likely to stay $ 65 – 75/ bbl (industry reports) for 0.50 2018 0.00 • PET film prices move in tandem with RM (PTA and MEG) Q1 FY 16- Q2 FY 16- Q3 FY 16- Q4 FY 16- Q1 FY 17- Q2 FY 17- Q3 FY 17- Q4 FY 17- with a lag of 2 – 3 months 17 17 17 17 18 18 18 18 PET Film (12 Mic.) PTA MEG VA Over PTA & MEG PET Film Industry Outlook for future

Conclusion • Industry continues to remain lucrative with 6 – 7% growth rate for the last 25 years and a similar growth rate for foreseeable future • Continued focus on cost reduction to effect healthy margins • Increasing value add sales and continued downstream investments to support bottom line • Margins likely to hold steady or see improvements in near term given the developing demand supply scenario • Indonesia investment will help improve competitiveness and support topline growth Conclusion