Thi Third Qua uarter FY FY 2018 2018-2019 2019 Fi Fina nanc ncial Resul sults s & Sum ummary Polyplex (Thailand) PLC (PTL) Fe Februa uary 13 13 th th , 2 , 2019
Disclaimer • This presentation may contain forward-looking statements which are based on the Company’s current expectations and estimates about the industry, the management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other factors, some of which maybe beyond our control. No assurance is given with regards to future events or the actual results, which may differ materially from those projected herein. • 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 the Company be held responsible or liable for any damages or lost opportunities resulting from use of this material
Polyplex: A Brief Introduction Polyplex group is among the world’s largest manufacturers of thin PET Film Capabilities - Thin PET - Thick PET 1600 Cust stomers s in - BOPP 2500+ 70 countries s - Blown PP/PE Employees From across ss Europe, - CPP Varied In Operation for Focus on Americas, s, the Downstream Nationalities 30+ Years Sustainability Middle East st and - Metallizing the In th Indian Working In - Silicone Coating Subcont Subcontinent nent Harmony - Offline chemical coating - Extrusion Coating
Polyplex: A Global Presence Netherlands Japan South Korea Turkey USA India China Mexico Thailand Malaysia Singapore Six Indonesia Manufacturing Facilities in 5 Countries, Parent Company Locations Multiple Manufacturing Locations warehouses and Upcoming Manufacturing Location Liaison offices Warehouse around the world Trading Company / Representative Office
Value Chain Sachet Pack Susceptor Film Stand Up Pouch Can Lamination P NATURAL RAW PLASTIC & INTERMEDIATE BASIC PETROCHEMICALS RESOURCES MATERIALS A PRODUCTS C K A Aroma Pack Spouted Pack Ready 2 Eat Pack Easy Peeling Lids Ethylene MEG G Packaging & Industrial Customers I N G Na Natural Film Grad Fi ade e Co Coatin ing Ga Gas PET Resi sin Electrical Grade Electronic Grade Window Films PV Backsheets I N Paraxylene PTA Base se D Metallizi zing Films Fi U S T Optical Grade Liner Grade Construction Graphics Polyproylene Holo Ho lography R Oi Oil PP Resin I A Polyplex’s Area of operation L
CAPACITY PET Film Resin Base Films (MT) Coated/ Value Added Films (MT) BOPP PET Thin PET Thick CPP Blown PP Metallized (MT) Coated (Sqm) Holographic (MT) P A 2 R 6 E 55,000 35,000 28,500 270 N 77,600 4 T 0 INDIA 28,800 42,000 865 8,845 21,700 10,000 80,500 THAILAND 58,000 17,700 146 57,600 TURKEY 9 5 31,000 0 57,600 0 U.S.A U P 6 C 44,000 0 O INDONESIA M 73,000 0 I 0 N G PTL 175,000 28,800 10,000 8,845 54,900 268,700 1,011 Consolidated Polyplex 230,000 28,800 35,000 10,000 8,845 83,400 Group 346,300 1,281 2,640 Consolidated
Q3 2018 Summary Q3 Revenue 3,724 Million Thb, 16% YoY Normalized EBITDA 686 Million Thb, 16% YoY, Normalized EBITDA margin 18% Q3 Normalized EPS 0.51 Thb (Annualized 2.03) 22% YoY Increase in Production of Value Add Films Operating Cash Flow 298 Million Thb Net D/E ratio: 0.19 , Credit Rating at A- (tha) with ”Stable Outlook” by Fitch Ratings (Thailand) Ltd
Q3 2018 Production Highlights Base Films PET – Thin PET – Thick CPP Blown Film* 33,477 MT 5,363 MT 2,089 MT 1,162 MT 0% QoQ 4% YoY -6% QoQ 1% YoY -1% QoQ -8% YoY -7% QoQ 79% YoY Value Added Films Saracote Metallizer Offline Coated Saralam 67 Million Sqm 7,965 MT 606 MT 56 Million Sqm 11% QoQ 14% YoY 54% QoQ 67% YoY -4 QoQ 10% YoY -8% QoQ -1% YoY *Including new Capacity start up in Q3 *Focus on value added / coated films
Q3 2018 YoY Financial Highlights Net Profit EPS EBITDA 455 M Thb 0.51 Thb 686 M Thb 16% 28% 28% YoY YoY YoY ROCE* D/E ROE* 15.08% 0.19 16.78% 5% 303 255 YoY bps bps Earnings normalized for Forex Gain/Loss • ROCE/ROE figures are annualized and in bps (basis points / bips) bps = unit of measure to describe the percentage change in the value or rate of a financial instrument. One basis point = 0.01%
EBITDA* (PTL Consolidated) 4,500,000 45.00% 720 Million 4,000,000 40.00% 698 3,500,000 35.00% 686 660 3,000,000 30.00% 16% YoY 2,500,000 25.00% 600 2,000,000 20.00% 591 1,500,000 15.00% 540 1,000,000 10.00% 500,000 5.00% - 0.00% 480 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 YTD 9M Q3'17 Q2'18 Q3'18 annualized Normalized EBITDA* As % of Revenue 16% YoY growth in Normalized EBITDA led by improved market conditions and capacity debottlenecking 18% EBITDA Margin *Normalized for Forex gain/(loss) and one time exceptional items (impairment loss in 2015-16)
EPS* (PTL Consolidated) 4.82 5 0.51 0.51 4 0.40 3 2.03 28% YoY 1.85 2 1.59 1.22 1.18 1.14 1.07 1 0.37 0.28 0 (0.12) (0.11) -1 Q3'17 Q2'18 Q3'18 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 YTD 9M annualized YoY improvement in Normalized EPS led by narrowing demand-supply and improvement in operating efficiencies *Normalized for Forex gain/(loss) and one time exceptional items (impairment loss in 2015-16), post dilutive effect of Rights issue in 2016
ROCE 15.08% 12.30% • Improving Industry CUF • 9.14% Improved CUF across business verticals 7.35% • Increased capacity via de-bottlenecking • Continued focus on cost structure 2.03% FY 14-15 FY15-16 FY 16-17 FY 17-18 YTD (31.12.2018) Net D/E 0.79 • Slight increase due to borrowing for 0.59 PFI (Polyplex Indonesia) as well as smaller investments in Thailand 0.26 0.19 0.17 31.3.2015 31.3.2016 31.3.2017 31.3.2018 31.12.2018 * Annualized and normalized
Regional Overview and Outlook • Ø Mature and Protected Market Improved margins owing to widening • Premium placed on domestic supply gap between RM cost and prices – • Pricing more longer term eventually to be corrected • Ø Receding RM cost Profitability maintained despite low • Q3 typically slow quarter season Polyplex Region wise Sales Mix* 3% 29% Ø Improved margins owing to widening • Mature and Open Market 32% gap between RM cost and prices – • Pricing mostly quarterly eventually to be corrected • Premium placed on domestic supply Ø Profitability maintained despite low • Receding RM cost season • Main competition = Indian imports • Q3 typically slow quarter 36% Asia North America Europe Others • Fastest growing region Ø Improved CUF of downstream *Data from 2017-2018 • Demand supply Balance in China – businesses improved Chinese margins = overall Ø Focus on increased capacity in improved industry margins in the region Indonesia
Current Updates Indonesia : • Estimated Start Up Date: August 2019 • Updated Project Cost within budget • Construction in full swing • Machine delivery underway with main components already on site
Specialized Products and Applications Net Margin from High Value Add and Specialty (HVAS) Films EBITDA v/s Net Margin from HVAS 900 3,000 80% MN THB/ annum MN THB/ annum 800 70% 2,500 700 60% 2,000 600 50% 500 1,500 40% 400 30% 1,000 300 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 Annualized FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Annualized 2018-19 2018-19 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
Sustainability: Outlook and Actions DEVELOPED SAVED ENERGY REPLACED PVC Twist Wrap Film with Green PET Green PET Film LED Lighting wrap film in the Confectionary Direct Melt Casting Industry Twin Screw Extruder Bio Based Films – Auto water Treatment for Cooling (Bio MEG) Tower Chill Roll Free Cooling Bio Degradable Erema Free Cooling Films Aluminium foil with metallized barrier TDO Heat Recovery Oxygen Trimming System for Burner PET film in food packaging ( + cost VAM Chiller for waste heat utilization Mono – Layer Blown reduction) Film VFD Implementation : • Offline Coater Main Hot Oil R-PET film (70-90% Pump • PCR Content) Chips Cooling Tower Circulation • Thermal Fluid Pumps 2500000 INVESTED 2000000 Dedicated recycling unit in This unit is a member of Ceflex 1500000 Thailand – sustainable 1000000 solutions for plain/coated This unit is partnered with RafCycle 500000 film waste and post- Initiative 0 consumer waste 2012 2013 2014 2015 2016 2017 Produces R-PET resin using post (Prod. Capacity of 1300 Savings Investments consumer waste MT/Month)
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