TPBI Public Company Limited Opportunity Day Presentation Aug 15, 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 Page 3 www.tpbigroup.com
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 19 – June 19) Thailand High (THB) 5.10 • The company was listed on the Stock Exchange of Low (THB) 4.88 Thailand in the beginning of 2Q16 Average (THB) 5.19 Average Market Capitalization (THB mm) 2,179.93 Average Daily Trading Value (THB mm) 0.23 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, 9.24% services 11.53% ✓ product design and formula development ✓ manufacturing and procurement ✓ raw material and product testing Borrisuttanakul family, 79.23% *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 ” Page 4 www.tpbigroup.com Source: Company Data, Bloomberg
TPBI Group Products Revenue Breakdown by Product ▪ TPBI Group ’ s total sales for 2Q19 is THB 1,383.33 mm, having sales proportion by products as follows: Revenue Breakdown in 2Q19 Revenue Breakdown in 2Q18 Others 14% Others TPBI UK - Garbage bags Garbage and 16% Trading Flexible Packaging 29% fruit&vetgetable bags 11% 15% 23% TPBI UK - Paper 5% Multi-layer Flexible blown film Packaging 9% Fruit&vegetable 12% bags 4% Multi-layer Vest carriers/t- Soft Loop blown film Soft Loop shirt bags Vest carriers/t-shirt bags 13% 10% 0% 15% 24% Page 5 www.tpbigroup.com Source: Company Data
Market Diversification Market Diversification ▪ During 2Q19, approximately 64.93% of total sales are from exports to international markets while 35.07% are from domestic sales. In 2Q18 In 2Q19 Australia Australia 12% 25% Japan 6% Thailand Thailand 35% 43% UK Japan 15% 8% Other countries UK 7% 5% Other countries 6% New Zealand USA New Zealand Myanmar USA 2% 8% 5% 3% 20% “ TPBI Group distributes their different types of products to various regions to diversify the risk of relying on a few market” Page 6 www.tpbigroup.com 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 Page 7 www.tpbigroup.com
TPBI’s Business Divisions Global Trading Consumables Flexibles Paper Product Mix: Product Mix: Product Mix: Product Mix: • • • • Flat & Satchel bag/ Block Reusable bags/ Piping bags/ All Vest carrier bags/ T-shirt bags/ Lamination film/ Barrier film/ products from Consumable, Stretch hood/ Shrink film Bottom/ SOS / Tape Handle / Bio compostable bags/ Fruit & Flexible, and Paper divisions. Vegetable bags/ Garbage bags/ die cut SOS bags • Packaging for frozen food, Loop- handle/ Die cut bags/ Fashion bags/ EMAP film bags ready-to-eat food and others Production Capacity: • ~ 516 million bags per year Key Markets: • • • UK, Australia, and USA. Digital Printing New Products: Roll Star/ New design garbage bags/ New Key Markets: • Production Capacity: UK. design bags on roll for fruit and • vegetable/ Mail Order bags/ Multi Layer Film: ~ 11,500 tons Liner bags/ LLDPE food bags per year • Flexible Packaging: ~ 150 million Production Capacity: meters per year • ~ 62,000 tons per year Key Markets: • Thailand, Vietnam, Singapore , Australia, and etc. Key Markets: • Australia, UK, USA, New Zealand, Japan and etc. Page 8 www.tpbigroup.com
Historical Production Capacity and Utilization Rate Consumables 86% 84% 100,000 100% 85% 78% 67% 80,000 70% 80% Tons per year • Consumables capacity is currently around 60,000 60% 62,000 tons per year 40,000 40% • 20,000 20% Utilization rate have been in range of 67 - 86% 0 0% 2014 2015 2016 2017 2018 2Q19 Multilayer Blown Film 12,000 95% 91% • 10,000 90% Multilayer blown film capacity is currently Tons per year 81% 84% 82% 8,000 85% 76% 80% around 11,500 tons per year 6,000 80% 4,000 75% • Utilization rate have been in range of 76 – 91% 2,000 70% 0 65% 2014 2015 2016 2017 2018 2Q19 Flexibles Million Meters per year 150 100% 80% • With new factory, Flexibles capacity has been 67% 67% 80% 62% 58% increased to over 150 million meters per year 100 45% 60% • Utilization rate have been in range of 45 – 80% 40% 50 20% • Capacity expansion requires longer lead time 0 0% than other products 2014 2015 2016 2017 2018 2Q19 Capacity Output Utilization rate Page 9 www.tpbigroup.com Source: Company Data
Agenda Section 1 About TPBI Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Future Plan Page 10 www.tpbigroup.com
Market Overview Brent Crude Oil Volume (RHS) Closing Px 100 600 500 Volume ('000) • Brent crude oil price has been increasing 80 USD/Barrel 400 60 during the second quarter of 2019, 300 40 200 averaging at USD 68.47 per barrel in 2Q19. 20 100 0 0 Jul 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Resin Price • The resin prices are somewhat influenced HDPE LLDPE from crude oil price. 1,500 USD/MT 1,300 • The average prices of HDPE and LLDPE 1,100 were 1,061 and 1,005 per MT respectively in 2Q19 900 ก.ค.-18 ก.ค.-18 ส.ค.-18 ก.ย.-18 ต.ค.-18 พ.ย.-18 ธ.ค.-18 ม.ค.-19 ก.พ.-19 มี.ค.-19 เม.ย.-19 พ.ค.-19 มิ.ย.-19 Foreign Exchange (THB/USD) THB/US • Thai Baht has been depreciated during 34 2Q19, averaging at THB 31.61 per USD 33 • TPBI revenue and cost are partially natural- THB 32 hedged 31 Jul-18 Aug-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Page 11 www.tpbigroup.com Source: Bloomberg
Operating Results Total Sales Revenue Gross Profit and Net Profit 1,383 Profit Margin 1,224 1,169 1,200 20.0% 15.0% THB mm 10.5% 9.5% 800 10.0% 6.7% 2.9% 5.0% 1.4% 400 0.1% - Q2/2017 Q2/2018 Q2/2019 - Gross Profit Margin Net Profit Margin 2Q17 2Q18 2Q19 • In 2Q19, the revenue was increased compared to same period last Revenue Breakdown year mostly due to higher sales of Garbage bags as well as revenue from TPBI UK, TPBI Paper and TPBI Australia. Revenue by Product • There are an increase in sales of Multi-layer blown film and new 1,400 products of TPBI UK, TPBI Paper and TPBI Australia which is in line 173 145 195 with the Company ’ s policy to shift into higher value-added 179 73 181 900 165 171 products. THB mn 112 101 141 • The gross profit margin was higher due to an increase in sales of 400 724 736 680 higher value-added products such as garbage bags and film as well as a recognition of gross profit from an investment in TPBI UK, TPBI Q2/2017 Q2/2018 Q2/2019 Paper and TPBI Australia. Consumables Multi-layer blown film Flexibles Paper packaging Trading Others Page 12 www.tpbigroup.com Source: Company Data
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