“TO BE A REGIONAL LEADER IN STARCH & STARCH-RELATED FOOD PRODUCTS”
INVESTOR PRESENTATION 2017
INVESTOR PRESENTATION 2017 TO BE A REGIONAL LEADER IN STARCH & - - PowerPoint PPT Presentation
INVESTOR PRESENTATION 2017 TO BE A REGIONAL LEADER IN STARCH & STARCH- RELATED FOOD PRODUCTS DISCLAIMERS DISCLAIMERS : THIS REPORT HAS BEEN PREPARED BY THAI WAH PUBLIC COMPANY LIMITED (TWPC) PRELIMINARILY AS A PROPOSAL FOR
“TO BE A REGIONAL LEADER IN STARCH & STARCH-RELATED FOOD PRODUCTS”
INVESTOR PRESENTATION 2017
Private for Investor Forum 1
This information is given in summary form and does not purport to be complete. Information is this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial products or instruments and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments and, in international transaction, currency risk. This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to TWPC’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements, TWPC does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside TWPC’s control. Past performance is not a reliable of future performance. This Presentation is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose. No part of this presentation may be reproduced or taken or transmitted. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and such
“ DISCLAIMERS : THIS REPORT HAS BEEN PREPARED BY THAI WAH PUBLIC COMPANY LIMITED (TWPC) PRELIMINARILY AS A PROPOSAL FOR INFORMATION PURPOSES ONLY ”
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Business Overview
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Business Highlights Industry Overview Financial Performance Appendix Going Forward & Opportunities
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Biopower Plant / Thai Wah Shanghai / Thai Wah Vietnam / Thai Wah Cambodia
with TDC
cash flow, improve cash position and book value
business despite challenging raw material in Q4
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SYMBOL SECTOR / INDUSTRY TWPC Agribusiness / Agro & Food Industry NAME Thai Wah Public Company Limited MARKET Stock Exchange of Thailand (SET) COMMON STOCK LISTED DATE 880,420,930 shares (Par THB 1.00) 5th October 2015 PAID-UP CAPITAL THB 880.42 million DIVIDEND POLICY Increase in absolute dividend payout
Institution
7.5% Institution - Foreigner 8.9%
Retail - Thai 19.8%
Retail - Foreigner 6.7%
Ho Family 40.4%
LRH 10.1%
Thai NVDR 6.7%
Shareholder structure**
** SET as of 29 Sep 2017
Free float 50%** Market Cap : around 8,584 MB**
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“Double Dragon” “Double Kilin” “Phoenix” “New Grade” “Alpha Brand” “Native Starch” Starch and Related Business Food Products Business Native Starch High-Value Added Vermicelli Rice Noodle
bean vermicelli
for:-
Food Industry / MSG Paper Industry Pharmaceutical Textile Industry Adhesive Industry
Production Base : 5 factories in TH, 2 factories in VN & 1 factory in CBD Customer Base : ~78% Export and ~22% Domestic (TH only) Production Base : 1 factory in TH & 1 factory in VN Customer Base : ~92% Domestic and ~8% Export Capacity : 450,000 tons for Tapioca Starch and 50,000 tons for Glucose Capacity : 22,000 tons for Vermicelli and 4,000 tons for Noodles
Others
(Shanghai noodle)
“Glucose” “Pearl / Sago”
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Native, 39% HVA*, 28% Food, 33% Native, 30% HVA*, 35% Food, 35% Native, 47% HVA*, 26% Food, 27%
8 *HVA products – Glucose, Coarse flour, Pearl, Alpha starch
Thai Wah Business Breakdown by GP
Source : The Company
2016 2017 2020E
2018 – 2019
HVA Capacity Expansion to enhance margins and improve ROIC
2020 Target
70% Food & HVA
contribution
to TWPC Group GP BALANCE PORTFOLIO
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Starch Pearl Modified Starch Industrial BIO Application Animal Feed Paper Carton Fabric Sweetener Pharmaceutical Carton Cosmeti c Beverage Sauces Glue & Adhesive Instant Meal Syrup & Dessert MSG Metal Industry Biodegradable Products Thai Dessert Cassava Root
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PREMIUM FOOD GRADE
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Volume Contribution 2017 HVA Growing Volume Contribution 2016 – 2018E
Native Starch 72% HVA 28%
Synergies Distribution Channels Brand Leverage Product Line Extension Penetration Support Function / R&D 2016 2017 2018E
26% 28% 38%
Strategies Increase Utilization Gear Up to HVA / Niche Market Improve Margin Expand Customer Base
+8 – 10%
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Fresh Vermicelli Bean Sheet Fresh Rice Noodle Dry Rice Noodle
Noodle Kit Dry Vermicelli New Grade Sago / Pearl High product quality No chemical preservatives & gluten-free contents Product & Food Hygiene certification processes
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Phitsanulok Udon Thani Roi Et Chonburi Bangkok Banglan Surat Thani Korat
Key long term driver Leveraging a Technology - Enabled platform to build through Thailand and ASEAN
GPS-handheld
growth YoY for 2017
Chiang Mai
Nationwide Distribution Coverage First Hub at Chiang Mai in Q2’17
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Mainly Food Export to EU, USA, and CLMV
Contributions for 2017
Expansion more “Volume” especially in CLMV / Exploring more on “New Products” especially in EU and USA
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358 360 368 378 386 380 363 339 315 315 318 323 315 320 329 328 328 328 328 328
338
365 408 425
445 280 320 360 400 440 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2017
15
Year 2015 2016 2017 2018 AVG FOB / tons 421 350 345
445
Source : The Thai Tapioca Trade Association
USD/Ton
2015 2016
Lower GP margin in Q4 given by Compression of ASP & Higher raw material costs
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Source : The Thai Tapioca Trade Association
Baht/Kg. Lower GP margin in Q4 given by Compression of ASP & Higher raw material costs 2 4 6 8 10 12 14 Jan/16 Mar/16 May/16 Jul/16 Sep/16 Nov/16 Jan/17 Mar/17 May/17 Jul/17 Sep/17 Nov/17 Jan/18 Selling price (Month-1) Selling price (Month) Raw Material Lower GP margin in Q4
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TWPC
%Growth YoY + 10% + 3%
Tapioca Export Industry
2016 2017
%Growth YoY 3,275,985 3,133,778
39,981 35,059
Volume
(‘000 Ton)
Value
(MB)
Source : Company and Thai Customs Department
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Source : The Company and The Thai Tapioca Trade Association Note : Data was by Volume
Taiwan, 10% Other, 11% Malaysia, 9% Indonesia, 11%
China, 51%
USA, 3% Japan, 5%
Tapioca Starch in the world
was 9% in 2017
CHINA TAIWAN
Tapioca Starch in the world
was 17% in 2017
9% of
Total Native Starch Export in 2017
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GP Margin
Q4’17 vs. Q3’17 16.5% vs. 22.8%
Sales growth
Q4’17 +30% QoQ
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NP growth
Q4’17 +33% QoQ
EBITDA
Q4’17 +10% QoQ
145 224 317 1,921 109 204 337 1,476
NP (after MI) EBITDA Gross profit Sales
Q4’17 QoQ
Q3'17 Q4'17
Source : The Company
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435 669 493 7.9% 10.9% 7.9%
100 200 300 400 500 600 700 800 900 1,000
2015 2016 2017 NP Margin
Revenue from Sales EBITDA Gross Profit Net Profit (After MI)
5,525 6,163 6,265
5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400
2015 2016 2017 716 1,009 716
200 400 600 800 1,000 1,200
2015 2016 2017 1,184 1,563 1,383 21.4% 25.4% 22.1%
500 1,000 1,500 2,000
2015 2016 2017 GP Margin
Source : The Company
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Export 56% Local 44% China & Asia 88% Europe 5% US & Canada 5% Middle East & Others 3% Thailand 75% Vietnam 19% China 6% Native, 50% HVA*, 28% Food, 22%
22 *HVA products – Glucose, Coarse flour, Pearl, Alpha starch
Thai Wah Group Sales Breakdown
Sales Breakdown by Base Operation
Thailand Sales Breakdown
Export Breakdown
Note : Thai Wah International Trade (Shanghai) started operation in Q3’16
Sales Breakdown by Business Thailand Sales Breakdown by Geographic
Source : The Company
6,240 MB 6,240 MB 4,561 MB 2,563 MB
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1,000 1,500 2,000 2,500 Cash & Financial investment, 1,851 Financial Debt, 201
Unit : MB
Non-CA 3,968 CA, 3,148 0% 20% 40% 60% 80% 100% Equity, 5,906 Non-CL, 402 CL 808
BV = 6.71 BAHT/share (+11% YoY)
Unit : MB
485 599 671 655 200 400 600 800 2014 2015 2016 2017
2016 – 0.30 BAHT/share 2017 – 0.32 BAHT/share, which will propose to the Shareholders’ meeting
232 238 264 282
0% 5% 10% 15% 20% 25% 30% 35% 40%
200 220 240 260 280 2014 2015 2016 2017
Strong Cash with Debt-free position Balance sheet Composition Operating Cash flow Increase in absolute dividend payout
Unit : MB Unit : MB D/E (Debt - Interest bearing ) = 0.03 Source : The Company
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20%
CAPEX 2018E
40%
Annual Maintainance / Efficiency Improvement TWBP 2 plants TWCBD Capacity Expansion Total ~1,000 MB
40%
CAPACITY EXPANSION GREENFIELD PROJECT M&A
(Pearl / Coarse Flour / High Grade Starch)
Phase II
Products focus on Thailand & CLMV
PROJECT 2018E - 2020E
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STARCH BUSINESS FOOD BUSINESS
THAI WAH
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1
Udonthani
1 Q1’18 Waste Water 2
Kalasin
1 2019 Waste Water + Pulp 3
Nakhon Ratchasima
1 2019 Waste Water + Pulp 4
Udonthani
2 2020 Pulp 5
Kalasin
2 2020 Pulp Phase COD Materials
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NEW AREA THAILAND
EXISTING THAILAND
with Farmer Networks
in Potential Areas NEW AREA CAMBODIA/LAOS
for Cambodia/Laos
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and improving returns on capital to shareholders
Contact: ir@thaiwah.com
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TWS to go under rehabilitation process
business to drive export volume and enter into Vietnam market
vermicelli in Double Dragon, Double Kilin brands
production line Founding of Thai Wah in Rangoon, subsequently moved to Bangkok
Ore Mining
tapioca starch in Chonburi Province
vermicelli in Bangkok “Thai Wah No.1” first tapioca business and export out, leader and pioneer in Thailand Expansion of starch mill business in Thailand Move to Banglane District and create Thailand’s single largest vermicelli factory 1989 TWFP listed
1985 TWS listed
2013 TWS resumed trading on the SET Shareholders’ meeting of the two company approved the business combination between TWS and TWFP, by amalgamation process 1947 1950s – 1960s 1970s – 1980s 1985 2017 1963 1963 1990s – 2000s 2001-2007
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2015
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6 7 8 9 10 11 12
7/4/59 7/14/59 7/28/59 8/9/59 8/22/59 9/1/59 9/13/59 9/23/59 10/5/59 10/17/59 10/28/59 11/9/59 11/21/59 12/1/59 12/15/59 12/27/59 1/10/60 1/20/60 2/1/60 2/14/60 2/24/60 3/8/60 3/20/60 3/30/60 4/12/60 4/26/60 5/9/60 5/22/60 6/1/60 6/13/17 6/23/17 7/5/17 7/18/17 7/31/17 8/10/17 8/23/17 9/4/17 9/14/17 9/26/17 10/6/60 10/19/60 11/2/60 11/14/60 11/23/60 12/7/17 12/20/17 1/3/18 1/15/18 1/25/18
Stock Price THB
Source : SET
The highest price on 30 Mar 2017 @ 11.70 The lowest price on 12 Oct 2016 @ 7.25