3Q18 Opportunity Day 1 Disclaimer The information contained in this - - PowerPoint PPT Presentation

3q18 opportunity day
SMART_READER_LITE
LIVE PREVIEW

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


slide-1
SLIDE 1

BG Container Glass Public Company Limited

3Q18 Opportunity Day

1

slide-2
SLIDE 2

Disclaimer

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

  • information. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise

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

  • r invitation of any offer to or recommendation to buy or subscribe for any securities of the Company, nor shall it or any part of it form the basis of or be relied on in connection with

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

  • 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 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

  • f the Company may differ materially from those anticipated by the Company in the forward looking statements. The recipient is cautioned not to place undue reliance on these forward

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.

2

slide-3
SLIDE 3

1. C

  • m

p a n y O v e r v i e w

Agenda Outline

Company Overview Recent Developments Performance Highlights Q&A

3

1. 2. 3. 4.

slide-4
SLIDE 4

Company Overview

1

4

slide-5
SLIDE 5

Key Milestones

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

  • f THB 50.0 mm

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

  • n SET. 194.44 million

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”

5

slide-6
SLIDE 6

Vision & Mission

6

VISION

“BGC is committed to be the ASEAN leader in manufacturing and selling quality glass and packaging as well as other related products and services.”

MISSION

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

Quality Service Competitive Pricing

Our Priorities

slide-7
SLIDE 7

Company Overview

Current Product Line Current Production Base

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)

7

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%

slide-8
SLIDE 8

Business Strategies

Short-term Plan

  • Focus on operation of new Ratchaburi Plant to fully utilize additional capacity within 2019
  • Cost reduction by increasing Utilization and Efficiency rate by introducing new technology and

information system Medium-term Plan

  • Increase sales proportion of high value products from currently 5% to 10% in 5 years
  • Expansion of RBI furnace # 2 with capacity of 400 tons per day

New Ratchaburi Plant to start commercial

  • peration in 4Q2018

Swabbing robot expected to help improve efficiency Example High Value Products

Long-term Plan

  • Continuously add innovation in our products and production process to enhance our product and

reduce our cost

  • Actively look for opportunity in other related businesses

Current One-way Product Vitamilk To-Go One-way Products in Developed Countries

Solid growth outlook with consistent dividend

8

Furnace Expert Control System our gateway to Industry 4.0

slide-9
SLIDE 9

Recent Developments

2

9

slide-10
SLIDE 10

4 Major Developments of 2018

10

Building Creditability to Customers Invest to Strengthen Quality & Efficiency Capacity for Growth & Better Service

“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”

CAC

Collective Action Coalition against corruption “BGC has joined CAC to declare

  • ur intention to fully support the

government against corruption”

slide-11
SLIDE 11

Ratchaburi Update

11

Heating Up Ceremony First Bottle Construction Completed Project started MAR’17 AUG’18 SEP’18 NOV’18

slide-12
SLIDE 12

Ratchaburi Plant

12

TECHNOLOGY-WISE

  • High flexibility to maximize

utilization with 5 Production lines and

  • Configuration to serve

product varieties LOCATION-WISE Demand Side

  • Take demand coverage on the

southern part of Thailand and samut songkarm district Supply Side

  • Next to source of Natural Gas

from Myanmar

  • On-Site Cullet Treatment Plant

Why Ratchaburi What new in Ratchaburi

slide-13
SLIDE 13

Performance Highlights

3

13

slide-14
SLIDE 14

Financial Performance

14

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.

  • Soft Drink growth at 17%
  • Export growth at 13%

Gross Profits & GPM

2,677 2,280 8,154 7,344

  • 1,000
1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000

3Q17 3Q18 9M17 9M18 354 369 1,087 1,198

13.2% 16.2% 13.3% 16.3%

  • 200
400 600 800 1,000 1,200 1,400 1,600 1,800 2,000

3Q17 3Q18 9M17 9M18

15% 10%

Net Profits & NPM

69 84 183 341 2.6% 3.7% 2.2% 4.6%

  • 10.0%
  • 50
100 150 200 250 300 350 400 450 500

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%

slide-15
SLIDE 15

Financial Performance

15

Asset

Liabilities & Equities

8,999 10,786 1,993 2,452 1,594 1,008 385 430

  • 2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000

2017 9M18

PPE Inventory Account Receivables Other assets

8,250 9,886 1,686 1,708 3,034 3,082

  • 2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000

2017 9M18

Loan Other liabilities Shareholders'Equity

Key Ratio

Working Capital Day ROA ROE Debt to Equity

34.2 39.3 days

2017 9M18

Working capital day = AR days + Inv days – AP days

1.9% 3.5%

2017 9M18

5.1% 15.5%

2017 9M18

3.3x 3.8x

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

slide-16
SLIDE 16

Financial Performance

16

Dividend

Interim Dividend for 3Q18 = 49.5% of total net profit for 3Q18 = 0.06 Baht per share

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.

Cash Flow from Operation

Strong and stable cash flow enable for future expansion and consistent dividend

*

9M

slide-17
SLIDE 17

Key takeaways for 3Q18

17

Continuous improvement in our production efficiency Growth in a higher value products Cost management and sales mix leads to a Profit improvement Stable and strong Cash Flow

slide-18
SLIDE 18

Q&A

4

18

slide-19
SLIDE 19

THANK YOU

19

CONTACT US BG Container Glass Plc. Investor Relations Department Tel: 0-2834-7004 Fax: 0-2533-1124 E-mail: IR-BGC@bgiglass.com Website: www.bgc.co.th Contact person:

  • Ms. Nudee Jirangpitakkul

E-mail: Nudee.j@bgiglass.com