BG Container Glass Public Company Limited
3Q18 Opportunity Day
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3Q18 Opportunity Day 1 Disclaimer The information contained in this - - PowerPoint PPT Presentation
BG Container Glass Public Company Limited 3Q18 Opportunity Day 1 Disclaimer The information contained in this presentation is strictly confidential and is provided by BG Container Glass Public Company Limited (BGC or the
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The information contained in this presentation is strictly confidential and is provided by BG Container Glass Public Company Limited (“BGC” or the "Company") to you solely for your
reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company and its respective affiliates or advisors. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company and its respective affiliates or advisors. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. The information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company and its subsidiaries. None of the Company nor any of its respective affiliates or advisors nor any of its or their respective members, directors, officers, employees or affiliates assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this presentation or its contents. This presentation is for information purposes only and does not constitute or form part of any offer or invitation by or on behalf of the Company for sale or subscription of or solicitation
any contract, commitment or investment decision in relation thereto (“Securities”) in Thailand, the United States or any other jurisdiction. Any recipient considering a purchase of Securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in a final offering document (which may be different from the information contained in this presentation ) and subject to the selling restrictions set out therein. No public offering of the Securities will be made in the United States or in any other jurisdiction outside of Thailand where such an offering is restricted or prohibited. This presentation should not be construed as legal, tax, investment or other advice. The information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements that reflect the Company's current views with respect to future events and financial
as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company's future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements
looking statements. In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to update the information contained in this presentation or to correct any inaccuracies herein which may become apparent.
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Company Overview Recent Developments Performance Highlights Q&A
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1974
Bangkok Glass Public Company Limited (“BG”) was established by a group of companies in pharmaceutical and beverage industry and financial institutions with registered capital
1980
The 1st furnace located at Pathumthani Province commenced its operation Rayong plant has commenced its operation
2007 2009
Prachinburi plant, jointly invested with T.C. Pharmaceutical Co., Ltd, has commenced its operation
2010
Ayutthaya plant has commenced its operation
2016
BG Container Glass Company Limited (“BGC”) was established by BG with registered capital of THB 1.0 mm
2017
April 2017 BGC increased its paid-up capital to THB 2,500.0 mm to undertake its corporate group restructuring by acquiring all companies in glass packaging business
2018
Oct 2018 Initial Public Offering
newly-issued shares were offered to general public at Bt10.20 per share Nov 2018 Ratchaburi plant started commercial run with capacity at 400 tons/day December 2017 Rayong plant ceased its operation
1983
Boonrawd Brewery became a major shareholder
1996
Khon Kaen plant has commenced its operation Initiation of “Door to Door” strategy by locating its production facilities close to customers’ facilities, starting at Khon Kaen and followed by Prachinburi
“With the vision of experienced management team, the continued expansion of production capacity has resulted in growth expansion over 4 decades of success”
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“BGC is committed to be the ASEAN leader in manufacturing and selling quality glass and packaging as well as other related products and services.”
The Company aims to satisfy our stakeholders in these areas;
Financial To maximize benefits and returns to all stakeholder Customers To deliver quality products with world-class standards and services at a competitive price Business Partnership To work with our partners based on a long- term trust and relationship Work Process To utilize modern technology in every work process with professional teams Personnel To build people competency, promote team work and employee engagement with an entrepreneurial spirit
Beer Soft Drinks (Non-Alcohol) Food Insecticides & Drugs Other Products Khon Kaen Plant (KGI)
2 Furnaces 735 tons/day (21% of group capacity)
Ratchaburi Plant (RBI)
1 Furnace 400 tons/day (12% of group capacity)
Pathumthani Plant (PTI)
3 Furnaces 560 tons/day (16% of group capacity)
Ayutthaya Plant (AGI)
4 Furnaces 1,620 tons/day (46% of group capacity)
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36% 43% 1% 8% 12%
Sales portion based on 3Q18 Prachinburi Plant (PGI)
1 Furnace 180 tons/day (5% of group capacity)
Sales distribution
Domestic = 93% Export = 7%
Short-term Plan
information system Medium-term Plan
New Ratchaburi Plant to start commercial
Swabbing robot expected to help improve efficiency Example High Value Products
Long-term Plan
reduce our cost
Current One-way Product Vitamilk To-Go One-way Products in Developed Countries
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Furnace Expert Control System our gateway to Industry 4.0
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“BGC reinforce the leading position in Glass and Packing Solution” “BGC investment in Robot Swapping machine to upgrade the production” “BGC strengthen No.1 position in ASEAN investing 2.5 billion for new plant”
Collective Action Coalition against corruption “BGC has joined CAC to declare
government against corruption”
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Sales
Drop in sales was mainly a result of decreasing demand in Local Beer bottle, in- line with overall decline of domestic beer consumption while growth was seen in soft drink categories and from export channel.
Gross Profits & GPM
2,677 2,280 8,154 7,344
3Q17 3Q18 9M17 9M18 354 369 1,087 1,198
13.2% 16.2% 13.3% 16.3%
3Q17 3Q18 9M17 9M18
15% 10%
Net Profits & NPM
69 84 183 341 2.6% 3.7% 2.2% 4.6%
3Q17 3Q18 9M17 9M18 Higher GP even sales drop in both as resulted from; (1) Increased in selling price via high-valued mix. (2) Enhanced the negotiation to achieve the lower cullet price (3) Improved production efficiency (4) Shutdown of inefficiency facility i.e. Rayong plant SG&A Expenses: Transportation expenses decreased align with sales Less CSR Activities and lower management fee Non recurring item: In both periods, gain on fixed asset disposal were able to compensate for provision reserved on fixed asset impairment Financial Cost: 3Q18, The decline in financial cost was a result of lower interest rate compared with last year.
22% 86%
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8,999 10,786 1,993 2,452 1,594 1,008 385 430
2017 9M18
PPE Inventory Account Receivables Other assets
8,250 9,886 1,686 1,708 3,034 3,082
2017 9M18
Loan Other liabilities Shareholders'Equity
Working Capital Day ROA ROE Debt to Equity
2017 9M18
Working capital day = AR days + Inv days – AP days
2017 9M18
2017 9M18
2017 9M18
Target D/E after IPO ≤ 2x
PPE increased in 9M18 from investment in new furnace at Ratchaburi plant. Total company debt increased from Ratchaburi plant
13% 20%
Total Asset Total Loan
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Dividend Policy: BGC has policy to pay dividend not less than 40% of net profit while BGC’s subsidiaries has policy to pay dividend not less than 80% of net profit after deduction of legal and general reserves We aim to provide investors with a good dividend together with capital growth.
Strong and stable cash flow enable for future expansion and consistent dividend
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9M
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