INVESTOR PRESENTATION Q217 TO BE A REGIONAL LEADER IN STARCH & - - PowerPoint PPT Presentation

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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


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“TO BE A REGIONAL LEADER IN STARCH & STARCH-RELATED FOOD PRODUCTS”

INVESTOR PRESENTATION Q2’17

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Private for Investor Forum 1

DISCLAIMERS

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

  • restrictions. By accepting this presentation you agree to be bound by the foregoing restrictions.

“ 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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AGENDA

Company Factsheet Business Overview Financial Performance Q&A Business Highlights

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BUSINESS HIGHLIGHTS IN 1H17

  • Thailand Starch volume

in 1H17 +10% YoY (Q2’17 +28% YoY)

  • Glucose sale volume

in 1H17 +8% YoY (Q2’17 +25% YoY)

  • Glucose capacity

expansion in July 2017 & Coarse Flour in Q4’17

  • TWBP full operate in

Q4’17 & TWVN & TWCBD in Q1’18

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Company Factsheet

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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 - 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**

COMPANY FACTSHEET

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Business Overview

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  • Glucose/Sweetener
  • Coarse Flour
  • Sago (Pearl)
  • Modified tapioca starch
  • Alpha starch

“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

  • Dry & fresh mung

bean vermicelli

  • Native tapioca starch

for:- Food Industry / MSG Paper Industry Pharmaceutical Textile Industry Adhesive Industry

  • Dry & fresh rice noodles

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

THAI WAH BUSINESS OVERVIEW

Others

  • Bean Sheet

(Shanghai noodle)

  • Tapioca starch
  • Sago (Pearl)

“Glucose” “Pearl / Sago”

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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

STARCH APPLICATION

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OUR FOOD PRODUCT

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Fresh Vermicelli Bean Sheet Fresh Rice Noodle Dry Rice Noodle

FOODS

Noodle Kit Dry Vermicelli New Grade Sago / Pearl High product quality No chemical preservatives & gluten-free contents Product & Food Hygiene certification processes

1 2 3

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FOOD DISTRIBUTION AND GO-TO MARKET STRATEGY

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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

34%

growth for

1H17

Chiang Mai

 Nationwide Distribution Coverage  First Hub at Chiang Mai in Q2’17 Sales +23% QoQ Efficiency Operation Customers Base

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FOOD EXPORT OPPORTUNITY

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Mainly Food Export to EU, USA, and CLMV

6%

Contributions for 1H17

Expansion more “Volume” especially in CLMV / Exploring more on “New Products” especially in EU and USA

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NOODLE KIT ASIAN INSPIRE

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First export to

HK

Will be Ready in Thailand’s MT in Q4’17

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STRONG SUSTAINABLE GROWTH

TW2020 GROWTH STRATEGY

“TO BE A REGIONAL LEADER IN STARCH AND STARCH- RELATED FOOD PRODUCTS”

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CREATE BUSINESS SUSTAINABILITY

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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

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CREATE BUSINESS SUSTAINABILITY

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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

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Tapioca Starch Tapioca Pulp Waste Water Biogas

Drying

BIOGAS POWER PLANT

Future Project

Electricity

Operation in

Q4’2017

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TWBP : ALL GENERATORS INSTALELD

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Established new subsidiary

  • Thai Wah Vietnam Company Limited
  • February 7, 2017
  • Manufacturing and distributing of

food products

  • VND 22,462 million (Baht 35 million)
  • 100% Holding

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Myanmar Opportunities Pioneer new small holder farm model (2X Yield in 2015) Tapioca plantation & Chips Expansion into consumer foods, noodles, sauces, sweetener to tap

  • n growing middle-class

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

  • TWPC Investment (Cambodia)

Company Limited

  • January 24, 2017
  • Manufacturing and distributing of

starch products

  • KHR 4,000 million (Baht 35 million)
  • 100% Holding

DEVELOP A FOOTPRINT ACROSS ASEAN

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VIETNAM FOOD UPDATE

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HO CHI MINH FOOD PLAN

Start to launch to market since mid-June

Be 1st to

introduce Fresh VN to VN Market

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HO CHI MINH FOOD PLAN

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Financial Performance

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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

SALES BREAKDOWN

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

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  • 500

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 POSITION

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

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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

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PERFORMANCE IN 1H17

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%

  • 5.0%
  • 3.0%
  • 1.0%

1.0% 3.0% 5.0% 7.0% 9.0% 11.0%

NP Margin

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MARKET FOR NATIVE STARCH EXPORT FROM THAILAND

Source : The Company and The Thai Tapioca Trade Association

Taiwan, 10% Japan, 5% Malaysia, 6% Indonesia, 15%

China, 47%

USA, 4% Other, 13%

  • The largest importer of

Tapioca Starch in the world

  • Thai Wah market share

was 8.4% in 1H17

CHINA TAIWAN

  • The 3rd largest importer of

Tapioca Starch in the world

  • Thai Wah market share

was 18.6% in 1H17

8% of

Total Native Starch Export in 1H17

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TAPIOCA STARCH EXPORTED FROM THAILAND 1H17

TWPC

+ 10%

%Growth YoY + 10%

  • 5%

Tapioca Export Industry

  • 4%

1H16 1H17

%Growth YoY 1,655,761 1,583,140

  • 4%

21,549 17,595

  • 18%

Volume

(‘000 Ton)

Value

(MB)

Source : Company and Thai Customs Department

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INVESTING 1-2B FOR GROWTH THE NEXT 3 YEARS

40%

CAPEX 2017E

30%

Annual Maintainance Capacity Expansion TWCBD / TWVN / TWBP Total ~500 MB

30%

CAPACITY EXPANSION GREENFIELD PROJECT M&A

  • HVA Products in Thailand
  • Glucose in Vietnam
  • Biopower plant at Udonthani
  • Thai Wah Starch in Cambodia &

Food in Vietnam

  • Biopower plant at Kalasin &

Nakorn Ratchasima

  • Starch & Starch-Related Food

Products focus on Thailand & CLMV

PROJECT 2017E - 2020E

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GOING FORWARD

  • To be A leading Small Cap in ASEAN, recognized for consistency and strong financial discipline
  • Core long term strategy to pursue High-single digit Growth and Sustainability
  • Consistently improve YoY on company operating margins, increasing mix of HVA products

and improving returns on capital to shareholders

  • Aggressive regional growth expansion, over the next 3 years with 1-2B Baht investment
  • Embracing technology of our value chain to a long term competitive advantage
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Q&A

Contact: ir@thaiwah.com

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APPENDIX

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STARCH PRICE (DOMESTIC VS EXPORT)

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)

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ROOT PRICE AND STARCH EXPORT PRICE

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

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STOCK PRICE

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

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