monday, 23 march, 2015 website : · 23/03/2015 · concentric diversification into bopp & cpp...
TRANSCRIPT
Monday, 23 March, 2015
Presentation at the
SET Opportunity Day
Website : www.polyplexthailand.com
Thailand Turkey USA
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
PET Film business – Value chain
BOPET Film Industry
Polyplex group
Polyplex – Business Strategy
PTL : Financial Performance
Industry Outlook
Contents
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
END
PRODUCTS
PLASTIC AND INTERMEDIATE
PRODUCTS RAW MATERIALS
BASIC
PETROCHEMICALS
NATURAL
RESOURCE
S
Natural
Gas
Oil
Ethylene MEG
Para
Xylene PTA
PP
RESIN
PET
Resin B
A
S
E
F
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M
S
Polyplex’s area of operation
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Polypropylene
PET Film business - Value Chain
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
BOPET Film Industry
BOPET is mainly segmented into Thin & Thick Films
oThin Film : 50 Micron & Under (75% of total BOPET)
oThick Film : Over 50 Micron (25% of total BOPET)
The industry capacity is mainly divided based on above Thickness segments.
Some lines are designed to produce intermediate range of Films from 12µ to 100µ
Major End use of BOPET Film are
oImaging & Graphics
oMagnetic Tape
oPackaging & Metalizing : Main Segment for POLYPLEX
oElectronics / Electricals
oOther Industrial
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
BOPET Global Demand & Supply
BOPET Thin Film 'KMT" 2008 2014E BOPET Thick Film 'KMT" 2008 2014E
Capacity 2,024 4,436 Capacity 738 1,489
Production 1,811 2,986 Production 597 844
Capacity Utilisation % 89% 67% Capacity Utilisation % 81% 57%
Demand 1,811 2,986 Demand 597 844
Imaging & Graphics 7 4 Imaging & Graphics 147 126
Magnetic Tape 28 13 Magnetic Tape 1 1
Packaging & Metallising 1,258 2,226 Packaging & Metallising 46 69
Electrical/ Electronics 95 233 Electrical/ Electronics 332 553
Other industrial 423 510 Other industrial 71 95
• Largest End use :Flexible Packaging - which accounts for more than two-third of total Thin Film
used.
• Thin Film demand has historically witnessed a CAGR of about 9% Per Annum (2008-14) and
expected to grow at CAGR of about 7-8%.
• Thick Film market has grown at a CAGR of about 6% per annum (2008-14) and is expected to
grow at CAGR of about 5-6%.
• The above CUF is based on “Name Plate” Capacity. Achievable peak CUF is 85%-90% for Thin
Film and 75% - 80% for Thick Film against Name Plate Capacity
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex – Global Presence
Turkey: Plant 3 India : Plant 1 & Plant 4
Thailand: Plant
2
USA : Plant 5
Factories
Warehouses
•Manufacturing Locations – India (PCL), Thailand (PTL),Turkey (PE) & USA (PUL)
•Distribution Companies – USA (PUL) , China (PTSL), Netherlands (PEBV), Turkey (PP).
•Warehouses –USA/Mexico/Poland/China
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex Group Structure
Polyplex Corporation Limited( PCL / Polyplex India)
INDIA
Polyplex (Asia) Pte.Ltd(PAPL / Polyplex Asia)
SINGAPORE
100%
Polyplex (Thailand) Public Co. Ltd.(PTL / Polyplex Thailand)
THAILAND
80%
34.50%
16.50%
Polyplex Trading (Shenzhen) Co. Ltd.(PTSL / Polyplex China)
CHINA
Polyplex (Singapore) Pte. Ltd. (PSPL / Polyplex Singapore)
SINGAPORE
Polyplex America Holdings Inc.(PAH) USA
100%
100%
100%
Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi(PE / Polyplex Europa)
TURKEY
Polyplex USA LLC(PU / Polyplex USA)
USA
100%
100%
TRADING & DISTRIBUTION
MANUFACTURING COMPANY
INVESTMENT COMPANY
OUTSIDE INTEREST
EcoBlue LtdTHAILAND
Private Investor
20%
Public/ Institutional Shareholder
49%
FMCG 100%
Polyplex Europe B.V.(PEBV / Polyplex Netherlands )
NETHERLANDS
Polyplex Paketleme Çözümleri Sanayi ve Ticaret Anonim Şirketi(PP / Polyplex Turkey)
TURKEY
100%
Provision of shared services
Investment and Trading & Distribution
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex: Business Strategy
•We’re a fully integrated, global manufacturer of plastic films with
Concentric Diversification into BOPP & CPP
•Our vision is to continuously grow, create value and establish global
leadership in the plastic film business
•We have expanded to meet demand in new geographies and for new
applications.
•Continually balance our Product & Market Portfolio to increase stability
of our Earnings.
•Judicious mix of On-shore, Off-shore and Near-shore strategy.
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
GROWTH
● The investments made over last 2-3 years would help the company to achieve significant Top line growth as well as generate higher returns for the shareholders in the long run, when the new projects are ramped up to optimum capacity utilization levels.
Reducing Volatility in Earnings
● Geographic Diversification – Thin PET film line in US would help the company to increase its presence further in US which is a net importer of PET film
● Product portfolio expansion – Thick PET film line in Thailand gives the Company an opportunity to participate in high end segments of PET film industry.
● Downstream Integration – Saralam Line 2 in Thailand, Offline Coater in Turkey and the new Metallizers in Thailand and Turkey
● Upstream Integration – Blown PP line in Thailand.
Opening up of a Liaison office in Korea will help the Company to increase its presence in one of the largest market for PET film in the region (Both Thin and Thick PET)
Continuing operational efficiency to remain a focus area for the company
KEY DRIVERS FOR POLYPLEX
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex Group capacities– March 2015
42,000
- - -
58,000
- -
31,000
- -
28,800
- - -
-
- -
-
- -
-
- - -
-
- -
-
- -
10,000
- - -
-
- -
-
- -
4,645
- - -
-
- -
-
- -
-
80,500
- -
-
57,600
-
- 57,600
-
- -
- -
- -
-
-
-
-
- -
21,700 -
- -
17,700
-
-
8,700 - - -
865
- - -
146
- - - -
100
200
300
400
500
600
700
800
900
1,000
-
75,000
150,000
225,000
Base Film PET FilmResin
MET Film CoatedFilm
Base Film PET FilmResin
MET Film CoatedFilm
Base Film PET FilmResin
MET Film
PET-Thin PET-Thick BOPP CPP Blown PP PET Chips Bottle Grade PET Resin Metallizer Coated Films
Mn Sqm MT
THAILAND TURKEY USA
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Financial Highlights 2013-14 (9M)
PARTICULARS 9M 2014-15 9M 2013-14 YoY %
Sales -MT (All types of film)
116,372
102,730 13%
Total Revenues - Million THB 9,286 7,836 18%
EBITDA - Million THB
773
(150) 615%
EBITDA (Excluding unrealized FX gain/loss)
- Million THB 713 265 169%
Profit before Tax - From continued operations
– Million THB
247 (689) 136%
Exceptional Loss from discontinued operations
(excl. minority share) – Million THB
(126) (12) (916)%
Profit after tax - From continued operations (excl.
minority share) – Million THB
319 (460) 169%
Reported Profit after Tax (excluding minority
interest) – Million THB 194 (473) 141%
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Financial Highlights – Historic Net Profit trend
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15
(9M)
Sales Revenue 3,300 4,719 6,399 6,860 7,125 11,183 10,143 9,230 10,703 9,017
Net Profits 561 342 814 1,042 1,039 3,883 1,358 402 (480) 194
NP margin 17.00% 7.24% 12.71% 15.19% 14.59% 34.72% 13.38% 4.36% -4.48% 2.15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
(1,000)
500
2,000
3,500
5,000
6,500
8,000
9,500
11,000
Ne
t P
rofit a
s a
% o
f S
ale
s
Mill
ion B
aht
Financial Year
Historic Sales revenue & Net profits (Consolidated)
Sales Revenue Net Profits NP margin
• Net Profit of 2014-15 (9M) is after the exceptional loss from discontinued operations, amounting to THB 126 million
excluding minority share. The adjusted NP margin excluding this exceptional loss is 3.54%.
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Sales Mix – Increasing share of value added products
* Value added films include Chemically Coated films, Metallized Film (PET + CPP), Thermal Laminated
film, Silicone Coated film etc which have higher value addition as compared with normal plain film.
Note: Above data is for PTL (consolidated) based on Sales quantity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
81%
70% 65% 61%
60% 58% 56% 54% 51% 52%
19% 30%
35%
39% 40% 42% 44% 46% 49% 48%
Plain film Value added film
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
The expected global growth in flexible packaging over the next 3-4 years is about 7-8% pa
New applications like Optical & PV etc will continue to drive the growth of Thick PET film. Overall expected growth of Thick PET film to be at a rate of 5% - 6% per annum.
Dis-proportionate capacity additions in China and India have created an over supply situation. The over supply situation could last further for 1 – 2 years
Margins to remain under pressure during the over supply years but low crude oil prices to help keep the major raw material prices at low levels
Companies with low cost, better product range and global reach will have the advantage over the competition
Lower profit margins would deter new players from entering the industry for next few years. Also existing players would add capacity more judiciously.
Industry Outlook
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Q&A
© 2015 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
The views expressed here contain information derived from publicly available sources that have not been
independently verified. No representation or warranty is made as to the accuracy, completeness or
reliability of the information. Any forward looking information in this presentation has been prepared on the
basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied
upon as a recommendation or forecast by Polyplex (Thailand) Public Co., Ltd. Nothing in this release
should be construed as either an offer to sell or a solicitation to buy or sell shares in any jurisdiction.
Thank You