TPBI Public Company Limited Opportunity Day Presentation May 21, 2019 www.tpbigroup.com
Disclaimer • The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in TPBI Public Company Limited (“TPBI”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. • In addition, this presentation contains projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the company and its directors. You are cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions. www.tpbigroup.com
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan www.tpbigroup.com Page 3
TPBI Group Overview Company Profile Share Summary Number of Shares Outstanding (mm) 416.88 TPBI Public Company Limited (“TPBI”) was • established by Borrisuttanakul family as a plastic-bag Registered Shares (THB mm) 416.88 trader/producer Paid-up Capital (THB mm) 416.88 Par Value per Share (THB) 1 More than 30-year experience led the company • become the leader of plastic-bag producer in Share Movement ( Apr 18 – Mar 19) Thailand High (THB) 13.00 The company was listed on the Stock Exchange of Low (THB) 4.98 • Thailand in the beginning of 2Q16 Average (THB) 8.16 Average Market Capitalization (THB mm) 3,200.21 Average Daily Trading Value (THB mm) 0.37 TPBI is Thailand’s No. 1 total solution Dividend Payout Policy (%) At least 50% of net profit provider of plastic bag , providing complete BBLAM, Others, 17.40% services 11.59% product design and formula development ü manufacturing and procurement ü raw material and product testing ü Borrisuttanakul family, 71.01% *Shareholder holding as of the latest book closing date TPBI’s VISION is “To be a leading packaging manufacturer who achieves sustainable growth together with all stakeholders” www.tpbigroup.com Page 4 Source: Company Data, Bloomberg
TPBI Group Products Revenue Breakdown by Product § TPBI Group’s total sales for 1Q19 is THB 1,372.82 mm, having sales proportion by products as follows: Revenue Breakdown in 1Q18 Revenue Breakdown in 1Q19 Others Others 14% Garbage bags Garbage bags TPBI UK - 15% 22% 22% Trading Flexible 12% Packaging TPBI UK - 14% Paper 6% Fruit&vegetable Fruit&vegetable bags bags 4% 4% Multi-layer Flexible blown film 11% Packaging 15% Vest carriers/t- Soft Loop shirt bags Multi-layer Soft Loop Soft Loop 14% Vest carriers/t-shirt bags blown film 2% 3% 11% 31% www.tpbigroup.com Page 5 Source: Company Data
Market Diversification Market Diversification During 1Q19, approximately 63.33% of total sales are from exports to international markets while 36.67% are § from domestic sales. In 1Q19 In 1Q18 Australia 12% Australia Japan 25% 6% Thailand Thailand 37% 44% UK Japan 16% 9% UK Other countries 4% 7% USA Other countries USA New Zealand Myanmar New Zealand 4% 9% 2% 17% 3% 5% “ TPBI Group distributes their different types of products to various regions to diversify the risk of relying on a few market” www.tpbigroup.com Page 6 Note: :*Other countries include South Korea, Singapore, Nigeria, Laos, Cambodia, etc. Source: Company Data
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan www.tpbigroup.com Page 7
TPBI’s Business Divisions Global Trading Consumables Flexibles Paper Product Mix: Product Mix: Product Mix: Product Mix: Lamination film/ Barrier film/ Flat & Satchel bag/ Block • Reusable bags/ Piping bags/ All Vest carrier bags/ T-shirt bags/ • • • Stretch hood/ Shrink film Bottom/ SOS / Tape Handle / products from Consumable, Bio compostable bags/ Fruit & die cut SOS bags Flexible, and Paper divisions. Vegetable bags/ Garbage bags/ Packaging for frozen food, Loop- handle/ Die cut bags/ • ready-to-eat food and others Production Capacity: Fashion bags/ EMAP film bags ~ 516 million bags per year Key Markets: • New Products: Digital Printing • UK, Australia, and USA. New Products: Roll Star/ New • • Key Markets: design garbage bags/ New Production Capacity: UK. design bags on roll for fruit and • Multi Layer Film: ~ 11,500 tons vegetable/ Mail Order bags/ • per year Liner bags/ LLDPE food bags Flexible Packaging: ~ 150 million • meters per year Production Capacity: ~ 62,000 tons per year • Key Markets: Thailand, Vietnam, Singapore , • Australia, and etc. Key Markets: Australia, UK, USA, New • Zealand, Japan and etc. www.tpbigroup.com Page 8
Historical Production Capacity and Utilization Rate General Packaging 84% 86% 100% 100,000 85% 78% 67% 80% 80,000 64% Tons per year General packaging capacity is currently around • 60% 60,000 62,000 tons per year 40% 40,000 20% Utilization rate have been in range of 64 - 86% • 20,000 0% 0 2014 2015 2016 2017 2018 1Q19 Multilayer Blown Film 84% 84% 85% 12,000 81% 82% Multilayer blown film capacity is currently 10,000 • 80% Tons per year 76% 80% 8,000 around 11,500 tons per year 6,000 75% 4,000 Utilization rate have been in range of 76 – 84% • 2,000 70% 0 2014 2015 2016 2017 2018 1Q19 Flexible Packaging 100% 80% 150 • With new factory, Flexible packaging capacity Million Meters per year 67% 67% 62% has been increased to over 150 million meters 58% 49% 100 per year 50% 50 • Utilization rate have been in range of 49 – 80% • Capacity expansion requires longer lead time 0% 0 2014 2015 2016 2017 2018 1Q19 than other products Capacity Output Utilization rate www.tpbigroup.com Page 9 Source: Company Data
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan www.tpbigroup.com Page 10
Market Overview Brent Crude Oil 100 600 USD/Barrel 400 • Brent crude oil price has been increasing 50 Volume ('000) 200 during the first quarter of 2019, averaging 0 0 at USD 63.83 per barrel in 1Q19. Apr 18 May 18May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18Dec 18 Jan 19 Feb 19 Mar 19 Volume (RHS) Closing Px Resin Price • The resin prices are somewhat influenced 1,600 from crude oil price. USD/MT 1,400 1,200 • The average prices of HDPE and LLDPE 1,000 Apr 18 May 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 were 1,081 and 1,030 per MT respectively in 1Q19 HDPE LLDPE Foreign Exchange (THB/USD) THB/US • Thai Baht has been quite fluctuated during 34 1Q19, averaging at THB 31.63 per USD 33 THB 32 • TPBI revenue and cost are partially natural- 31 hedged Apr 18 May 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 www.tpbigroup.com Page 11 Source: Bloomberg
Operating Results Total Sales Revenue Gross Profit and Net Profit Profit Margin 1,373 1,185 20.0% 1,137 1,200 15.0% 11.5% 9.8% 9.5% THB mm 10.0% 800 6.6% 5.0% 5.1% 5.0% 5.0% 0.3% 400 (0.0%) 1Q17 1Q18 1Q19 - (1.4%) (5.0%) 1Q17 1Q18 1Q19 Gross Profit Margin EBITDA Margin Net Profit Margin Revenue Breakdown • In 1Q19, the revenue was increased compared to same period last year mostly due to higher sales of Garbage bags as well as revenue 195 from Intelipac group in 1Q19. 1,200 160 258 170 • Besides the increase in sales of general packaging, there are also an 78 163 increase in sales of Multi-layer blown film and flexible packaging THB mm 163 209 800 123 96 products which is in line with the Company’s policy to shift into 149 33 42 20 higher value-added products. 56 435 349 400 194 • The gross profit margin was higher due to an increase in sales of higher value-added products such as garbage bags and film as well 295 243 226 - as a recognition of gross profit from an investment in Intelipac 1Q17 1Q18 1Q19 group. On the other hand, the Company has net loss since an Garbage bags Vest carriers/t-shirt bags Fruit&vetgetable bags increase in mainly depreciation and interest expenses from new Soft Loop Multi-layer blown film Flexible packaging investment to expand production capacity. TPBI UK - Paper TPBI UK - trading Others www.tpbigroup.com Page 12 Source: Company Data
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