“TO BE A REGIONAL LEADER IN STARCH & STARCH-RELATED FOOD PRODUCTS”
INVESTOR PRESENTATION Q2’17
INVESTOR PRESENTATION Q217 TO BE A REGIONAL LEADER IN STARCH & - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Q217 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 Q2’17
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 ”
Private for Investor Forum 2
Company Factsheet Business Overview Financial Performance Q&A Business Highlights
Private for Investor Forum 3
in 1H17 +10% YoY (Q2’17 +28% YoY)
in 1H17 +8% YoY (Q2’17 +25% YoY)
expansion in July 2017 & Coarse Flour in Q4’17
Q4’17 & TWVN & TWCBD in Q1’18
Private for Investor Forum 5
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 - Thai 28.5% Retail -Thai 25.4% Institution - Foreigner 32.2% Retail - Foreigner 13.9%
Shareholder structure**
** SET as of 8 June 2017 Free float 50%** Market Cap : around 8,584 MB**
Private for Investor Forum
“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 : 4 factories in Thailand and 2 factories in Vietnam Customer Base : ~79% Export and ~21% Domestic (TH only) Production Base : 1 factory in Thailand Customer Base : ~94% Domestic and ~6% Export Capacity : 390,000 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”
7
Private for Investor Forum
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
8
Private for Investor Forum
9
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
Private for Investor Forum
10
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 for
1H17
Chiang Mai
Nationwide Distribution Coverage First Hub at Chiang Mai in Q2’17 Sales +23% QoQ Efficiency Operation Customers Base
Private for Investor Forum
11
Mainly Food Export to EU, USA, and CLMV
Contributions for 1H17
Expansion more “Volume” especially in CLMV / Exploring more on “New Products” especially in EU and USA
Private for Investor Forum
12
First export to
Will be Ready in Thailand’s MT in Q4’17
Private for Investor Forum 13
STRONG SUSTAINABLE GROWTH
“TO BE A REGIONAL LEADER IN STARCH AND STARCH- RELATED FOOD PRODUCTS”
Private for Investor Forum
14
Bioeconomy development project 10-years development plan under the government and Pracharat Encourage modern farming management High Value-added bioproducts (Biorefinery – Starch “Fermentation” Platform) Increase the value of cassava to more than 100 billion baht / year
Private for Investor Forum
15
Characteristics & Main Factors of Cassava Varieties Irrigation system / Water & nutrient supply Land Preparation (Ploughing) / Soil Improvements Facilitates Weeding Farm & Household Statement Use of Agricultural Machinery (Tractor) Integrating Smallholder Farmers to Agricultural Value Chains Use of Drone for Modern Farming
Private for Investor Forum 16
Tapioca Starch Tapioca Pulp Waste Water Biogas
Drying
Future Project
Electricity
Operation in
Private for Investor Forum 17
Private for Investor Forum
Established new subsidiary
food products
18
Myanmar Opportunities Pioneer new small holder farm model (2X Yield in 2015) Tapioca plantation & Chips Expansion into consumer foods, noodles, sauces, sweetener to tap
Cambodia Opportunities Tapioca plantation and productivity improvement Investments in Tapioca given strong availability of roots Strong border links with Thailand and Vietnam Laos Opportunities Tapioca plantation and productivity improvement Tapioca chips, starch, export Vietnam Opportunities Enhancement of sweetener business Pho, Bun, Noodle, Rice Flour business Will be market leader in 2017, 3X Growth in 2015 for Vermicelli and Noodles Established new subsidiary
Company Limited
starch products
Private for Investor Forum 19
Private for Investor Forum 20
Start to launch to market since mid-June
Be 1st to
introduce Fresh VN to VN Market
Private for Investor Forum 21
Private for Investor Forum 23
Native, 51% HVA*, 26% Food, 23% Export 56% Local 44% China & Asia 87% Europe 5% US & Canada 5% Middle East & Others 3%
*HVA products – Glucose, Coarse flour, Pearl, Alpha starch
Thai Wah Group Sales Breakdown
Sales Breakdown by Base Operation
Thailand Sales Breakdown
Export Breakdown
Thailand 75% Vietnam 21% China 4%
Note : Thai Wah International Trade (Shanghai) started operation in Q3’16
Sales Breakdown by Business Thailand Sales Breakdown by Geographic
Source : The Company
Private for Investor Forum 24
1,000 1,500 2,000 2,500 Cash & Financial investment, 1,581 Financial Debt, 221
Unit : MB
Non-CA 3,658 CA, 2,638 0% 20% 40% 60% 80% 100% Equity, 5,392 Non-CL, 323 CL 581
BV = 6.13 BAHT/share Unit : MB
485 599 671 241 200 400 600 800 2014 2015 2016 1H17
2015 – 0.27 BAHT/share 2016 – 0.30 BAHT/share
232 238 264
0% 5% 10% 15% 20% 25% 30% 35% 40%
200 220 240 260 280 2014 2015 2016
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 ) = 0.04 Source : The Company
Private for Investor Forum
1,184 1,563 289 349 679 730
500 1,000 1,500 2,000 500 1,000 1,500 2,000
2015 2016 1H17 Q2'16 Q2'17
21.4% 25.4% 21.7% 24.1% 23.7% 25.5%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
GP Margin
435 669 107 104 269 239
100 200 300 400 500 600 700 800 900 100 200 300 400 500 600 700 800 900 1,000
2015 2016 1H17 Q2'16 Q2'17
25
Revenue from Sales EBITDA Gross Profit Net Profit (After MI)
Note: 2015 FS was consolidated financial information between TWA and TWFP
5,525 6,163 1,334 1,449 2,223 2,208
1,000 2,000 3,000 4,000 5,000 6,000 7,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000
2015 2016 1H17 Q2'16 Q2'17
716 997 171 180 425 401
200 400 600 800 1,000 1,200 200 400 600 800 1,000 1,200
2015 2016 1H17 Q2'16 Q2'17
Source : The Company
7.9% 10.9% 8.0% 7.2% 9.4% 8.3%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
1.0% 3.0% 5.0% 7.0% 9.0% 11.0%
NP Margin
Private for Investor Forum 26
Source : The Company and The Thai Tapioca Trade Association
Taiwan, 10% Japan, 5% Malaysia, 6% Indonesia, 15%
China, 47%
USA, 4% Other, 13%
Tapioca Starch in the world
was 8.4% in 1H17
CHINA TAIWAN
Tapioca Starch in the world
was 18.6% in 1H17
8% of
Total Native Starch Export in 1H17
Private for Investor Forum 27
TWPC
%Growth YoY + 10%
Tapioca Export Industry
1H16 1H17
%Growth YoY 1,655,761 1,583,140
21,549 17,595
Volume
(‘000 Ton)
Value
(MB)
Source : Company and Thai Customs Department
Private for Investor Forum 28
40%
CAPEX 2017E
30%
Annual Maintainance Capacity Expansion TWCBD / TWVN / TWBP Total ~500 MB
30%
CAPACITY EXPANSION GREENFIELD PROJECT M&A
Food in Vietnam
Nakorn Ratchasima
Products focus on Thailand & CLMV
PROJECT 2017E - 2020E
Private for Investor Forum 29
and improving returns on capital to shareholders
Contact: ir@thaiwah.com
Private for Investor Forum 32
5,000 10,000 15,000 Starch Price Starch Export Price THB/Ton
Source : The Thai Tapioca Trade Association Note: Used FX Rate as a period-average (BOT)
Private for Investor Forum 33
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 100 200 300 400 500 Starch Export Price Root Price USD/Ton THB/Kg.
Source : The Thai Tapioca Trade Association
Private for Investor Forum 34
6 7 8 9 10 11 12
7/4/59 7/11/59 7/20/59 7/27/59 8/3/59 8/10/59 8/18/59 8/25/59 9/1/59 9/8/59 9/15/59 9/22/59 9/29/59 10/6/59 10/13/59 10/20/59 10/28/59 11/4/59 11/11/59 11/18/59 11/25/59 12/2/59 12/13/59 12/20/59 12/27/59 1/5/60 1/12/60 1/19/60 1/26/60 2/2/60 2/9/60 2/17/60 2/24/60 3/3/60 3/10/60 3/17/60 3/24/60 3/31/60 4/10/60 4/19/60 4/26/60 5/4/60 5/12/60 5/19/60 5/26/60 6/2/60 6/9/17 6/16/17 6/23/17 6/30/17
Stock Price THB
Source : SET