Investor Briefing EPG: Financial Results Q1 2019/20 Disclaimer - - PowerPoint PPT Presentation

▶
investor briefing epg financial results q1 2019 20
SMART_READER_LITE
LIVE PREVIEW

Investor Briefing EPG: Financial Results Q1 2019/20 Disclaimer - - PowerPoint PPT Presentation

Dec 24, 2023 215 likes •391 views

Investor Briefing EPG: Financial Results Q1 2019/20 Disclaimer This document has been prepared by Eastern Polymer Group Public Company Limited (EPG) solely for the reference of intended recipients only. The data, information, analysis and

slide-1
SLIDE 1

Investor Briefing EPG: Financial Results Q1 2019/20

slide-2
SLIDE 2

Disclaimer

This document has been prepared by Eastern Polymer Group Public Company Limited (“EPG”) solely for the reference of intended recipients only. The data, information, analysis and valuations contained herein in this document have been prepared based solely on information obtained from public sources on or prior to the date hereof. EPG has neither independently verified nor in the future intended to verify such information. No representation or warranty, expressed or implied, is or will be made in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection therewith, or the data it generates and no responsibility,

  • bligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by EPG or their affiliates or by any of

their respective officers, employees or agents in relation to it. In particular, no representation or warranty is given as to the achievement or reasonableness of future projections, estimates, prospects, returns, if any. Any views contained herein are based on financial, economic, market and other conditions prevailing as at the date of this document. EPG does not intend, and therefore shall not be held liable, to update all the information contained herein this document. Any disclosure or distribution of the information in this document, partly or wholly, to third parties other than the intended recipients without prior written consent from EPG is strictly forbidden.

slide-3
SLIDE 3

Agenda

Operational Highlights Q1 2019/20 Financial Results

3

slide-4
SLIDE 4

Q1 2019/20 Operational Highlights

4

Revenue Gross Profit SG&A Net Profit 2,672.4 MB 756.8 MB 20.0% to sale 215.0 MB +1.9% YoY +0.0% YoY

  • 29.4% YoY
  • Revenue growth adjust

upward slightly despite the pressure from FX fluctuation

  • EPG Group Q1 2019/20

Gross profit margin is at 28.3% in comparison to Q1 2018/19 at 28.8% and Q4 2018/19 at 25.7%

  • EPG Group Q1 2019/20

SGA to sale is at 20.0% in comparison to Q1 2018/19 at 19.8% and Q4 2018/19 at 21.1%

  • Lower YoY profit due to

1) FX loss and 2) lower amount of equity sharing contribution but recovery well on track QoQ

+5.5% QoQ +16.1% QoQ +93.5% QoQ

slide-5
SLIDE 5

Q1 2019/20 Operational Highlights

  • Both Domestic and International sale continue to progress, driven by strong demand in USA
  • Solid US Operation after the modification of US Plant
  • New Aeroflex Factory is under construction, starting in April 2018.
  • Our innovation allow the production of AEROROOF to be competitive in the roof insulation market.
  • Aeroklas continue to grow with the support of Core Products and new Product Launch (Rear Bumper) and TJM and Flexiglass

Challenge.

  • Aeroklas is under the process of co-developing various products for Automakers.
  • TJM now have three corporate stores two in Perth and one Brisbane, Australia.
  • Start to see revenue recovery from marketing activity in Food and beverage packing and industrial made to order sector.
  • Acquired British Retail Consortium (BRC) standard
  • EPP has the total capacities of 35,000 tons per year, if the plastic packaging show a clear sign of recovery, our high speed and

automation technology can catch up with large amount of orders

5

slide-6
SLIDE 6

Agenda

Operational Highlights Q1 2019/20 Financial Results

6

slide-7
SLIDE 7

Q1 2019/20 Financial Results

7 Note: Q1 2019/20 ends on 30 June 2019

Statement of Comprehensive Jun-18 Mar-19 Jun-19 Income (Million Baht) Q1-2018/19 Q4-2018/19 Q1-2019/20 Revenue from sales 2,623.2 2,533.3 2,672.4 5.5% 1.9% 9,607.1 10,579.2 10.1% AEROFLEX 733.2 652.7 760.7 16.5% 3.8% 2,834.9 2,867.9 1.2% AEROKLAS 1,281.9 1,239.7 1,287.7 3.9% 0.5% 4,462.0 5,275.8 18.2% EPP 608.2 640.9 624.0

  • 2.6%

2.6% 2,310.2 2,435.6 5.4% Cost of goods sold 1,866.6 1,881.4 1,915.5 1.8% 2.6% 6,892.5 7,687.8 11.5% Gross Profit 756.6 651.9 756.8 16.1% 0.0% 2,714.6 2,891.5 6.5% Other gains-net gain on exchange rate 37.7

  • 13.2
  • 32.0
  • 142.2%
  • 184.8%
  • 82.4
  • 4.1
  • 95.1%

SG&A 518.1 535.4 535.7 0.1% 3.4% 1,876.7 2,104.9 12.2%

Share of Profit from Investments in Associates

59.2 15.3 33.6 120.3%

  • 43.2%

245.1 174.8

  • 28.7%

EBIT 344.6 124.7 241.6 93.7%

  • 29.9%

1,051.5 994.9

  • 5.4%

Depre & Amor 164.5 168.9 170.9 1.2% 3.9% 643.4 671.8 4.4% Finance cost 24.3 3.5

  • 1.8
  • 150.7%
  • 107.3%
  • 12.0

40.0 434.3% Income Tax 15.6 10.1 28.3 181.9% 82.1% 70.3 51.6

  • 26.5%

EBITDA 403.0 285.4 392.0 37.4%

  • 2.7%

1,481.3 1,458.4

  • 1.5%

EBITDA incl. equity sharing 462.2 300.7 425.6 41.6%

  • 7.9%

1,726.4 1,633.2

  • 5.4%

Net Profit 304.8 111.1 215.0 93.5%

  • 29.4%

993.2 903.2

  • 9.1%

QoQ YoY FY2017/18 YoY FY2018/19

slide-8
SLIDE 8

Q1 2019/20 Financial Results

8 Note: Q1 2019/20 ends on 30 June 2019

Ratios Jun-18 Mar-19 Jun-19 Q1-2018/19 Q4-2018/19 Q1-2019/20 Gross Profit Margin 28.8% 25.7% 28.3% EBITDA Margin 15.4% 11.3% 14.7% EBITDA Margin incl. equity sharing 17.6% 11.9% 15.9% Net Profit Margin 11.6% 4.4% 8.0% ROE 9.8% 8.8% 7.8% ROA 8.0% 7.5% 6.6% D/E 0.29 0.31 0.30 28.3% 27.3% 15.4% 13.8% 18.0% 15.4% 10.3% 8.5% 9.9% 8.8% 8.1% 7.5% 0.30 0.30 FY2017/18 FY2018/19 Statement of Financial Jun-18 Mar-19 Jun-19 Status (Million Baht) Q1-2018/19 Q4-2018/19 Q1-2019/20 Current Asset 4,866.4 4,691.6 4,816.2 Non - Currrent Asset 8,577.9 8,701.6 8,716.9 Total Asset 13,444.3 13,393.2 13,533.1 Interest bearing debt 1,363.6 1,460.3 1,369.2 Current Liabilities 2,481.5 2,576.3 2,597.2 Non - Current Liabilities 500.9 501.6 467.8 Total Liabilities 2,982.4 3,077.9 3,065.0 Paid Up Capital 2,800.0 2,800.0 2,800.0 Retained earnings (unappropriate) 3,580.5 3,484.7 3,700.6 Total Equity 10,461.9 10,315.3 10,468.1 4,608.6 4,691.6 7.2% 8,539.7 8,701.6 0.6% 13,148.3 13,393.2 2.8% 1,475.9 1,460.3 0.8% 2,454.9 2,576.3 14.5% 570.9 501.6

  • 20.3%

3,025.7 3,077.9 5.8% 2,800.0 2,800.0 0.0% 3,275.6 3,484.7 8.5% 10,122.6 10,315.3 2.0% FY2017/18 YoY FY2018/19

slide-9
SLIDE 9

733.2 652.7 760.7 Q1 18/19 Q4 18/19 Q1 19/20

  • Q1 2019/20 revenue is at 760.7 MB increase 3.8% YoY and 16.5% QoQ
  • US and Japanese market continue to outperform with high demand for premium product
  • International Revenue is at 70.2% and Domestic is at 29.8%

AEROFLEX Revenue break down by region AEROFLEX Revenue (MB)

Q1 2019/20 Financial Results

9 3.8 % YoY 16.5% QoQ Note: Q1 2019/20 ends on 30 June 2019

Domestic 29.8%

International 70.2%

slide-10
SLIDE 10

10

  • Q1 2019/20 revenue is at 1,287.7 MB increase 0.5% YoY and 3.9% QoQ
  • Aeroklas revenue driven by new product launch despite the fluctuation in Economic factor and FX factor pressure operation

in TJM and Flexiglass

  • International Revenue is at 72.1% and Domestic is at 27.9%

AEROKLAS Revenue break down by region AEROKLAS Revenue (MB)

Q1 2019/20 Financial Results

Note: Q1 2019/20 ends on 30 June 2019 1,281.9 1,239.7 1,287.7 Q1 18/19 Q4 18/19 Q1 19/20 0.5 % YoY 3.9% QoQ

Domestic 27.9 % International 72.1%

slide-11
SLIDE 11

EPP Revenue break down by region EPP Revenue (MB)

  • Q1 2019/20 revenue is at 624.0 MB increase 2.6% YoY but decrease 2.6% QoQ
  • Marketing in Both Food packaging and Cup are well according to plan which help increase economic of scale in Q4 2018/19
  • International Revenue is at 10.6 % and Domestic is at 89.4 %

Q1 2019/20 Financial Results

11 Note: Q1 2019/20 ends on 30 June 2019 608.2 640.9 624.0 Q1 18/19 Q4 18/19 Q1 19/20 2.6% YoY

  • 2.6 % QoQ

Domestic 89.4% International 10.6%

slide-12
SLIDE 12

FY 2019/20 Outlook

12

Innovation Marketing Growth

  • Aeroflex 5, New Factory will be

completed during FY 2019/20. The new factory will be equipped with advance Technology that could reduce the overhead cost

  • ver time.
  • Develop more economical

Process

  • In the FY 19/20 Aeroflex will

continue to drive in USA, Asian and Japan

  • Enhanced logistic system in

North America.

  • The new capacities from

Aeroflex 5 unlock the Production

  • f capacities of Aeroroof and
  • ther small tubes to marketing in

the Asian especially in CLMV and Middle East

  • Minor Investment in USA to

enhance Automation and capture Tax benefit

  • The high speed production

line shall increase capacities to support growth in North America.

  • construction Aeroflex Plant in

Rayong starting in April 2018 to support future growth in insulations products

  • Utilized product and matrix

model to expand new product such as AEROROOF and ACOUSTIC .

Note: FY 2019/20 ends on 31 Mar 2020

slide-13
SLIDE 13

Innovation Marketing Growth

  • Working with automotive OEM’s

in Europe and Asia to develop new products

  • Working on new materials and

alternative manufacturing processes to drive growth for Bedliners, Deck covers, side steps / canopies

  • Launch of Roller Shutter Product
  • Develop the new Process

Technology to speed up production and lowering cost

  • Develop EV accessories for EV

Car maker

  • Continue to Expand Market in

Asia / Oceania / Middle East / Africa and Europe area

  • Expected core products to carry

momentum of growth over the year of FY 2019/20

  • 3 TJM Corporate Store in Perth

and Brisbane (2 in Perth)

  • Progressing on synergist

between Aeroklas TJM and Flexiglass .

  • With TJM and Flexiglass, we are

now cover both Outback and Urban Automotive accessory in Australia

  • New Production Facilities in

Rayong to be completed within FY 2019/20

  • Move partial TJM production

and assembly to Thailand

  • Increase key product capacities

to serve the growth in the new stores of TJM .

  • Increase sale of TJM from SPP

(Supplier Partnership Program ) in the network.

  • Opportunity to expand the

business outside automotive area.

FY 2019/20 Outlook

13 Note: FY 2019/20 ends on 31 Mar 2020

slide-14
SLIDE 14

Innovation Marketing Growth

  • Continue to do R&D packaging

product to serve food industrial customers needs

  • Able to switch to Bioplastic with

no new investment in accordance to surge in environmental friendly products.

  • Expanding Product categories

under the food packaging categories

  • Growth from the industrial made to
  • rder market that require high

standard use of Packaging.

  • EPP acquired standard such as

GMP / HACCP with recent additional of BRC standard

  • Food-delivery service becoming

more popular, helps create a demand in food packaging sector.

  • Promote secondary brand “eici”
  • As for the international market,

expected growing product demand from regional countries such as CLMV

  • Rebottle neck in production

process allow EPP achieve higher capacities with small investment

  • EPP shall focus on

“Capacities Driven” through new Product and Export Market

  • Developing Paper packaging

line in order to offer Variety of Food packaging solution to customers

FY 2019/20 Outlook

14 Note: FY 2019/20 ends on 31 Mar 2020

slide-15
SLIDE 15

Capital Expenditure

E2019/20 E2020/21 E2021/22 Total

100 MB Develop Domestic and USA automation production line 100 MB US Plant N/A 200 MB 150 MB Developing Domestic Production Line and enhancing Synergy In Australian Operation 120 MB Plant N/A 270 MB 50 MB Developing Environmental Friendly Product N/A 50 Developing Environmental Friendly Product 100 MB

15

Set up budget of 300 MB for Joint Venture and M&A through 2021

slide-16
SLIDE 16

Q&A