Market Data Price (baht) 0.75 P/E (times) N/A P/BV (times) 0.96 - - PowerPoint PPT Presentation

Market Data Price (baht) 0.75 P/E (times) N/A P/BV (times) 0.96 Market mai Sector Resource No.Share (mil. share) 300 M Paid-up (mil. baht) 150 MB Market Cap (mil. baht) 225 MB Dividend Policy > 40% of net profit (separate FS)

As of date : 25/11/2019 Source : SET

ABM Asia Biomass Public Company Limited STP Sathaporn Tanapat Co., Ltd. PPP Paprapat Co., Ltd. ABI PT Asia Biomass Indonesia ABE Asia Biomass Energy SDN. BHD. ABR Asia Biomass Resources SDN. BHD. ABP ABM Pellets Co., Ltd.

Products/Qualification Calorific Value (kcal/kg) Moisture (%) Ash (%) Palm Kernel Shell

3,400 - 3,800 25 - 27

Below 4 Wood Chips

2,300 - 2,800 45 - 50

Below 3 Wood Pellets

4,000 - 4,400 8 - 10

Below 3 Wood Shaving

3,700 - 4,000 10 - 18

Below 2.5

• Heat consumption from Biomass tend to increase with CAGR

6.3% to 22,100 ktoe in 2036F from AEDP2015 policy

• In AEDP2015, Electricity from Biomass tend to increase from

2,815 MW to 5,570 MW with 3.47% CAGR

• However, New PDP2018 plans to drop Biomass to 4,690 MW in

2037F

After Fukuchima Daiichi Nuclear Power Plant accident, Both Japan and Korea have launched new energy plan to boost renewable energy especially Biomass making demand of wood pellets increase in several years

There are higher portion of Palm Kernel Shell in product of 9M/2019 because of woods price increased from many Thai woods manufacturing collapsed after Trade war between The US and China.

2018 9M/2019

9M

• Volume decreased especially Overseas volume from lower demand.

Q3

• Domestic sales volume decreased due to Wood chip. Overseas sales volume decreased as customer postpone sales
• rder and also Wood pellets price dumping in the region.

314.40 310.25 69.09 52.62 9M/2018 9M/2019 Thousand tons Domestic Overseas 383.49 362.87 107.95 97.38 16.74 9.89 Q3/2018 Q3/2019 Thousand tons Domestic Overseas 107.27 124.69 23.84% Overseas 1.32% Domestic 9.79% Domestic 40.92% Overseas

952.02 915.06 9M/2018 9M/2019 Million baht The revenue from sales of the company decreased because of total sales volume dropped. However, the average selling price increased due to the increase in portion of high-priced products 311.85 274.23 Q3/2018 Q3/2019 Million baht 3.88% 12.06%

10.64% 8.30% The gross profit margin higher due to the company sells high-priced products with higher portion and focused on direct shipment sales to reduce in-bound transportation cost. 168.85 182.86 17.74% 19.98% 0% 5% 10% 15% 20% 25%

• 40

80 120 160 200 9M/2018 9M/2019

Million baht

Gross profit Gross profit margin

53.66 59.37 17.20% 21.65% 0% 5% 10% 15% 20% 25% 30%

• 40

80 Q3/2018 Q3/2019

Million baht

Gross profit Gross profit margin

118.80% 4,791.67% 4.68 10.24 0.49% 1.12% 0% 1% 2%

• 3

6 9 12 15 9M/2018 9M/2019

Million baht

EBITDA EBITDA Margin

0.12 5.87 0.04% 2.14% 0% 1% 2% 3% 4%

• 3

6 9 Q3/2018 Q3/2019

Million baht

EBITDA EBITDA Margin

EBITDA increased from higher Gross Profit EBITDA margin inclined softer than Gross Profit margin

• Direct Shipment impact Selling expenses directly.
• But Administrative expenses declined due to cost reduction policy.

(15.95) (10.82) (1.68%) (1.18%) (4%) (2%)

• (30)

(25) (20) (15) (10) (5)

• 9M/2018

9M/2019 Million baht

Net profit Net profit margin

(8.71) (1.66) (2.79%) (0.60%) (10%) (8%) (6%) (4%) (2%)

• (30)

(25) (20) (15) (10) (5)

• Q3/2018

Q3/2019 Million baht

Net profit Net profit margin

32.16% 80.94% The loss decreased from the company can manage effectively logistic system by transport goods from suppliers to customers directly affected positive impact to the company profitability

Non-current assets

319.88

Non-current assets

348.17

Current assets

327.76

Current assets

386.62

• 200

400 600 800

Dec 31, 2018 Sep 30, 2019 Million baht 647.64 734.79 Inventories increased because of the purchasing products according to the purchase plan during the low price period of Palm kernel shells. However, the company currently focuses on efficiency inventory management. Other non-current assets increased in bank deposits with obligation increased 30 million baht.

Equities

239.44

Equities

226.35

Liabilities

408.2

Liabilities

508.44

• 200

400 600 800 Dec 31, 2018 Sep 30, 2019

Million baht 734.79 Short-term loans inclined in line with an increase in inventory and bank deposits with obligation. However, the company plans to improve debt structure effectively. Account payable declined from purchased products from individual supplier which particularly had short payment period. 647.64

36.16 38.23 38.67 38.06 38.49 99.55 77.12 62.67 56.81 54.77 (15.18) (14.55) (15.67) (18.34) (18.89) 120.52 100.79 85.67 76.53 74.37

(40) 40 80 120 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019

Days

Cash cycle

Average Collection Period Inventory Period Payable Payment Period Cash Cycle

1.99 1.70 1.86 1.89 2.23

• 0.50

1.00 1.50 2.00 2.50 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Times

Debt/Equity Ratio

0.91 0.81 0.81 0.80 0.77

0.50 0.75 1.00 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019

Times

Current Ratio

1.64 1.77 1.86 1.89 1.79 1.40 1.60 1.80 2.00 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Times

Total Assets Turnover

• Focusing on volume of both Domestics and Overseas market.
• Launching a new various products.
• Optimize Logistic
• Warehouse expansion in Rayong.
• Reducing logistic cost both land and sea by improving volume.
• Sourcing a diversity areas.
• Contacted forest plantation with Forest Industry Organization’s
• Owning production of Wood Chips and Wood Pellets.

Certificated FSC-CoC/CW PEFC-CoC/CW Expect Q1/2020 Expected volume Sales Palm Kernel Shell Wood Chips ~ 264,000 Tons ~ 180,000 Tons Expected Volume exclude Others ~ 444,000 Tons Investment plans Wood Pellets at Bang Nam Chuet, Samut Sakhon Warehouse Expansion ~ 14.5 Million Baht ~ 15 Million Baht Expected Investment Amount ~ 29.5 Million Baht

Wood chips plant is installed at Bang Kung, Surat Thani with capacity 10,000 tons/month with 99% completed. Contracted to purchase of Acacia species from the Forest Industry Organization in Southern with approximately 3,000 rai expected 30,000 tons of woods with 5 years contract.

Contact

Asia Biomass PCL 273/2 Rama 2 Road, Samae Dam Sub-district, Bang Khun Thian District Bangkok Tel: 02-415-0054 Fax: 02-415-1102 Email: ir@asiabiomass.com Website: www.asiabiomass.com

Thank You