Strictly Private & Confidential TPBI Public Company Limited Opportunity Day Presentation February 27, 2019
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. Strictly Private & Confidential Page 1
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan Strictly Private & Confidential Page 2
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 ( Jan 18 – Dec 18) Thailand High (THB) 13.20 The company was listed on the Stock Exchange of Low (THB) 5.75 • Thailand in the beginning of 2Q16 Average (THB) 9.41 Average Market Capitalization (THB mm) 3,766.73 Average Daily Trading Value (THB mm) 1.07 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, 13.08% services 12.98% product design and formula development ü manufacturing and procurement ü raw material and product testing ü Borrisuttanakul family, 73.94% *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” Strictly Private & Confidential Page 3 Source: Company Data, Bloomberg
TPBI Group Products Revenue Breakdown by Product § TPBI Group’s total sales for 2018 is THB 4,980.35 mm, having sales proportion by products as follows: Revenue Breakdown in 2017 Revenue Breakdown in 2018 Others TPBI UK - Garbage bags Others 14% Garbage bags Trading 20% TPBI UK - 16% 4% 23% Paper Flexible 1% Flexible Packaging Packaging 14% 15% Fruit&vegetable bags Multi-layer 5% blown film Multi-layer Fruit&vegetable 9% blown film bags 10% 4% Vest carriers/t- Soft Loop Vest carriers/t- shirt bags 8% shirt bags 21% 36% Strictly Private & Confidential Page 4 Source: Company Data
Market Diversification Market Diversification During 2018, approximately 59.77% of total sales are from exports to international markets while 40.23% are § from domestic sales. In 2018 In 2017 Australia 19% Australia 29% Thailand Japan Thailand 40% 8% 41% Japan UK 9% 9% Other countries Other countries 5% 4% UK USA USA New Zealand New Zealand Myanmar 6% 10% 7% 4% 6% 3% “ TPBI Group distributes their different types of products to various regions to diversify the risk of relying on a few market” Strictly Private & Confidential Page 5 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 Strictly Private & Confidential Page 6
TPBI’s Business Divisions Int. Commercial Consumable Flexible 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. Strictly Private & Confidential Page 7
Historical Production Capacity and Utilization Rate General Packaging 84% 100% 100,000 86% 78% 74% 85% 80% 67% 80,000 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 67 - 86% 20,000 0% 0 2013 2014 2015 2016 2017 2018 Multilayer Blown Film 95% 82% 100% 84% 12,000 81% 80% 76% 10,000 80% • Multilayer blown film capacity is currently Tons per year 8,000 60% around 11,500 tons per year 6,000 40% 4,000 20% • Utilization rate have been in range of 76 – 95% 2,000 0% 0 2013 2014 2015 2016 2017 2018 Flexible Packaging 100% 80% 150 • With new factory, Flexible packaging capacity Million Meters per year 72% 67% 67% 62% has been increased to over 150 million meters 58% 100 per year 50% 50 • Utilization rate have been in range of 58 – 80% • Capacity expansion requires longer lead time 0% 0 2013 2014 2015 2016 2017 2018 than other products Capacity Output Utilization rate Strictly Private & Confidential Source: Company Data Page 8
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan Strictly Private & Confidential Page 9
Market Overview Brent Crude Oil 600 100 USD/Barrel Volume ('000) • Brent crude oil price has been decreasing during 100 50 the last quarter of 2018, averaging at USD 71.92 -400 0 per barrel in 2018. Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18Dec 18 Volume (RHS) Closing Px Resin Price • The resin prices are somewhat influenced from crude oil price. 1,400 USD/MT 1,300 1,200 • The average prices of HDPE and LLDPE were 1,100 1,000 1,300.19 and 1,148.75 per MT respectively in 900 Jan-18 Jan-18 Mar-18 Apr-18 May-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 2018 HDPE LLDPE Foreign Exchange (THB/USD) • Thai Baht has been quite fluctuated during the year, averaging at THB 32.32 per USD 34 33 THB • TPBI revenue and cost are partially natural-hedged 32 31 Jan-18 Jan-18 Mar-18 Apr-18 May-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Foreign Exchange (MMK/USD) • Myanmar Kyat has been appreciate during 1Q18, averaging at MMK 1,331 per USD 1,800 MMK 1,600 • However, during 2H18 Myanmar kyat has been 1,400 greatly depreciation to the peak at MMK 1,620 1,200 per USD (+19% from Jan18) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Strictly Private & Confidential Page 10 Source: Bloomberg
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