ADB Opportunity Day Performance 2019 February 27, 2020 Content - - PowerPoint PPT Presentation

ADB Opportunity Day

Performance 2019 February 27, 2020

Content

Our Goal in 2020 Company Overview

• Business Update
• Business Trends 2020

ADB Performance 2019

Company Overview

APPLIED DB PCL.

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Company Overview

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Adhesive & Sealant

• ADB Adhesives are specially manufactured to meet

international standards for industrial use and household use.

• We sell under our house brand and OEM

for customers well-known brand names.

ADB

• ADB Sealant is currently repackaged from bulk

package and resell in smaller package.

• Future project supports the expansion of adhesive &

sealant product line corresponding to increasing demand and profitability.

• ADB is one of the leading manufacturer of plastic

compound especially for wire&cable industry.

• Wire & Cable PVC compound
• General Grade PVC
• Medical PVC Compound
• Polypropylene split yarn (PPY)

Plastic Compound

Our product line includes plastic compounds, professional adhesives, silicone sealants, and DIY products for household end-users.

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FY 2019 Financial Review

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Financial performance for FY 2019

Revenue Structure

712 726 693 716 740 722 686 679 706 624 200 400 600 800 1000 1200 1400 1600

2015 2016 2017 2018 2019

Plastic Compound Adhesive and Sealant

(Unit: million Baht)

1,434 1,412

1,364

1,372 1,421

The revenue in 2019 decreased due to the slowdown of SIL products and DIY products sold to oversea markets; while the compound has been increasing due to the strong potential growth of Wire & Cable segment.

Domestic Sales

71%

International Sales

most of the

• versea customers

has been impact of Baht appreciation against USD

29%

Sealant & DIY

387 MB

GPVC

205 MB

PVC

534 MB

Adhesive

237 MB

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Revenue Structure by Product Group

Financial performance for FY 2019

Sealant & DIY

434 MB

GPVC

208MB

PVC

507 MB

Adhesive

272 MB

2018 2019

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Financial performance for FY 2019

Profit Segmentation

The slightly drop of gross margin in FY2019 is mainly due to:

• Lower sales from Industrial Adhesives (Fashion and garment segment) & distributor channel due to price competition in the oversea markets
• Silicone sealant and DIY product segments sold to oversea customers had impact from Price competition and Baht Appreciation against USD

260 286 191 194 184 36 67 18% 20% 14% 14% 14% 10% 18%

0% 4% 8% 12% 16% 20% 50 100 150 200 250 300 350

2015 2016 2017 2018 2019 Q4/2018 Q4/2019

Gross Profit Gross Profit Margin

(Unit: million Baht) 80 68 67 70 44 79 54 37 92 10 20 30 40 50 60 70 80 90 100 Sealant & DIY Adhesvie Plastic Compound

2019 2018 2017

16% 21%

Gross Profit By Products

MB

Gross Profit Margin

12% 11% 10% 15% 16% 23% 14%

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Financial performance for FY 2019 Net Profit & Net Profit Margin

76 29 13 3

• 11

16

5.4% 2.1% 0.9% 0.2%

• 3.1%

4.4%

• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0%

• 20
• 10

10 20 30 40 50 60 70 80 90 2016 2017 2018 2019 Q4/2018 Q4/2019

Net Profit Net Profit Margin

• The net profit margin for FY 2019 declined from 2018 performance due to the decline of margins in Adhesive products and Sealant segment due to the initial stage of new Sealant Project investment recognized full

year of operation in 2019

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365 375 316 328 335 213 267 319 305 261 292 355 448 535 542

78 76

125 85 116

500 1000 1500 2015 2016 2017 2018 2019

A/R Inventory PPE Others 948 1,072 1,208 1,253 1,254

Asset 210 239 212 202 213 330 416 277 359 266 135 120 134 49 68 200 400 600 800 1000

2015 2016 2017 2018 2019

A/P ST Loan Others 667

Liability

675 775 623 547

210 210 300 300 300 61 85 83 84 79

200 400 600 800 2015 2016 2017 2018 2019

Paid-up capital R/E Share premium

586

202 202

585 581

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Shareholders’ Equity 2.47 2.60 1.06 1.14 1.16

• 1.00

2.00 3.00 2015 2016 2017 2018 2019

D/E

Debt to Equity

Financial performance for FY 2019

MB MB MB

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Financial Highlight

Statements of Financial Position

1208 1254 1254 623 667 672 585 586 582 200 400 600 800 1000 1200 1400

2017 2018 2019

Asset Liabilities Shareholders Equity 8 48 111

• 115
• 129
• 52

143 42

• 41
• 150
• 100
• 50

50 100 150 200

2017 2018 2019

Operating Investing Financing

Statements of Cash Flow

MB MB

Challenging Market Competition

• Reported sales of Adhesive declined due to price falling of
• versea revenue from FX impacts
• Sealant and DIY Revenue over 2/3 of Segment contributed by
• versea customers.

Week Sales of New Sealant Project

Due to the delay of revenue from Sealant Project, initial investment costs led the decline of Sealant BU performance and GPM

2020 Outlook on TFRS 9 and TFRS 16 First-time adoption of TFRS 9 will have

negligible effect to the Assets, Liabilities and retained earning through the allowance of doubtful accounts and TFRS 16 with slightly increase in Fixed Assets on operating lease for THB 6 MB, no significant impact on Profit

Turnaround Profit through Rising Margins

• FY 2019, GPM at 13.4% contributed mostly from Q419 GPM

at 18%

• The highest profit margin contributed by Plastic Compound

Business

Solid Cash Flow from Operation with effective inventory management

Decreasing inventory level both Raw Materials & FG leading to the soaring up Cash from Operation over THB 100 MB

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Key Takeaways of FY2019 and new IFRS Impact

Our Goal in 2020

Business Updates | Business Trends 2020

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Business Update

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Collaboration & Work Smart are our key to success

Growth | Reach Secure |

Increase domestic market share

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Plastic Compound Business

OEM, Green Products

(ECO-Friendly Products)

Premium Products

Expand to New Market

Including furniture, automotive, construction, industries

New Business Solution

Strategic partners

New Sales Channels

Modern Trade E-Channel

Strengthen Sales Team

To enhance sales performance

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Adhesive Business Strategy

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Brand Awareness

Concern of brand value and reputation for good quality

Partnership

Strategic partner and distributors both in domestic and oversea

New Product Offer

(Cross selling/ Bundled Goods)

Sales Growth

Through maintain existing sales and growth and develop new potential customers.

Sealant & DIY Business

Trend of Environmental Concern

(Green product) Our R&D team is ready for develop new solution to fulfill customer’s needs.

Growth of Health Care Industry

We have two medical production line to support medical product.

Global Challenge

• Globalization help us to reach more market through Social

Media, Online Marketing.

• Global economic slowdown Influenced by COVID-19
• utbreak, Thai baht's appreciation etc.

Government Project

Including real estate, construction and infrastructure.

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Competitor’s Relocation

Some of our main competitor has relocation, this is our good

• pportunity to increase market share.

Technology Advancement

We has always catch up the global trends to serve the changing demand and prepare for change of supply chain.

Business Trends 2020

Thank You

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www.adb.co.th Contact Investor Relation Section: 02-709-4040 Ext.1406 adb_ir@adb.co.th Website Head Office 252 M.4 Sukhumvit Rd., Prakasa,Muang Samutprakarn, 10240