Opportunity Day 23 rd August 2019 1 Discla claime mer The - - PowerPoint PPT Presentation

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Opportunity Day 23 rd August 2019 1 Discla claime mer The - - PowerPoint PPT Presentation

BG Container Glass Public Company Limited Opportunity Day 23 rd August 2019 1 Discla claime mer The information contained in this presentation is strictly confidential and is provided by BG Container Glass Public Company Limited (BGC or


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BG Container Glass Public Company Limited

Opportunity Day

23rd August 2019

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Discla claime mer

The information contained in this presentation is strictly confidential and is provided by BG Container Glass Public Company Limited (“BGC” or the "Company") to you solely for your information. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company and its respective affiliates or advisors. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company and its respective affiliates or advisors. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this

  • presentation. The information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material

information concerning the Company and its subsidiaries. None of the Company nor any of its respective affiliates or advisors nor any of its or their respective members, directors, officers, employees or affiliates assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained

  • herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this

presentation or its contents. This presentation is for information purposes only and does not constitute or form part of any offer or invitation by or on behalf of the Company for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities of the Company, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investment decision in relation thereto (“Securities”) in Thailand, the United States or any other jurisdiction. Any recipient considering a purchase of Securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in a final offering document (which may be different from the information contained in this presentation ) and subject to the selling restrictions set out therein. No public offering of the Securities will be made in the United States or in any other jurisdiction outside of Thailand where such an offering is restricted or prohibited. This presentation should not be construed as legal, tax, investment or other advice. The information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company's future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those anticipated by the Company in the forward looking

  • statements. The recipient is cautioned not to place undue reliance on these forward looking statements.

In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to update the information contained in this presentation or to correct any inaccuracies herein which may become apparent.

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Agenda Outline

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1 3 4 2

Business Update Financial Highlights Outlook for 2019 Q & A

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Business Update

1

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Q2 19 Update

Sales growth 20% YoY (for 2Q 19) and 11% YoY (for 6M 19)

especially from Beer, Soft Drinks and Export High growth in Export, 9% of total sales Continually installs automated machines and system for Cost Optimization

Debt to Equity improves to 1.7 (Before IPO = 3.0, After IPO = 1.9)

Certified by CAC on 5 Aug 2019

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Beer Soft Drinks (Non-Alcohol) Food Insecticides & Drugs Other Products

36% 43% 1% 9% 12%

Unit: Mil Bt.

Sales Breakdown 6M 2019 Sales Revenue 6M 2019

  • Total sales 6-Month increased by 11% vs. last year, mainly

from Beer (17% increased) and Soft drinks ( 12% increased)

  • Total Sales to Boonrawd = 57% of total sales, BRB portion

decreased by 178 bps from 6M 2018

  • Export volume increased by 107% from 6M 2018

‘18 = 41% ‘18 = 13%

Bottle Sales Update

Sales distribution Domestic = 91% Export = 9%

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Unit: Mil Bt.

Sales and Net Profit by quarter

Unit: Mil Bt.

Net Profit after Tax Sales Revenue

2,788 2,677 3,011 2,798 2,265 2,280 3,057 2,896 2,727

3.7%

  • 4.0%

12.5%

  • 7.1%
  • 19.0%

0.7% 34.1%

  • 5.3%
  • 5.8%

4.1%

  • 18.8%
  • 14.8%

1.5% 3.5% 20.4%

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 QoQ YoY (3-month) 65 69 54 166 91 84 155 162 83

2.3% 2.6% 1.8% 5.9% 4.0% 3.7% 5.1% 5.6% 3.0%

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 NPM

Strong growth in Sales Revenue However, Net Profit was slightly lower than expected due to

  • ne-time charge and lower efficiency rate

6M = 5,063 MB 6M = 5,623 MB (+11.1% YoY) 6M = 257 MB (NPM = 5.1%) 6M = 245 MB (NPM = 4.4%)

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3 3.5 4 Jan'17 Apr'17 Jul'17 Oct'17 Jan'18 Apr'18 Jul'18 Oct'18 Jan'19 Apr'19

218,148 223,036 441,007 439,550

20.0% 40.0% 60.0% 80.0% 100.0% 100,00 0 200,00 0 300,00 0 400,00 0 500,00 0 600,00 0 700,00 0 800,00 0

2Q18 2Q19 6M18 6M19

Actual Production (Ton Packed) Utilization Rate (%)

Production & Major Raw Material Update

Production

  • Bt. / Kg

Cullet price remained relatively steady since last April Utilization drop due to stock management Efficiency drop due to launching new products 9 BGC have a temporarily lower energy cost in Oct 18 to Jan 19.

Brent Crude Oil Price Cullet Price

40 50 60 70 80 90 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 Jul 18 Oct 18 Jan 19 Apr 19 Jul 19

Efficiency VS New Products

4 1 3 5 4 10 7 6 7 10 8 11 4 3 2 No of New Products 88.2% 88.8% 87.8% 88.3% 87.0% 86.4% 85.3% 84.2% 84.6% 85.2% 84.7% 84.9% 86.3% 86.7% 86.1%86.3% % Efficiency Average Brent Crude Oil price for 6M19 decreased by 7% from 6M18.

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Water Conservation

CSR CSR Campaigns

บีจีซีรักษ์น ้ำ

โครงการขวดแก้วแลกบุญ

Recycle Sport

  • สนับสนุนสโมสรวอลเลย์บอลแอร์ฟอร์ซ
  • สนับสนุนฟุตบอลหญิงทีมชาติ
  • สนับสนุนการแข่งขันกอล์ฟการ

กุศล MAT Golf Charity 2018

  • สนับสนุนการแข่งขันกอล์ฟเยาวชน

รายการ Watermill Junior Golf กิจกรรมให้ความรู้เรื่องการคัดแยกขยะ

โครงการมอบคอมพิวเตอร์ และอุปกรณ์อิเล็กทรอนิกส์

Education

สนับสนุนโครงการให้ทุนการศึกษาบุตร- ธิดาสมาชิกสมาคมผู้สื่อข่าวเศรษฐกิจ

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2

Financial Highlights

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6M19 11.1% revenue growth YoY derived from (1) Domestic sales up 6% mostly from Beer (2)12% increased in both export and domestic sales of soft drink bottle (3)export sales rose 90% from beer bottles, push the contribution to 9% of total sales 2Q19 20% year-on-year sales growth, highest in the past 3 years, driven by +37% beer and +14% soft drink bottles. +20.4% YoY 6M19 Higher gross profit YoY due to sales growth but lower gross profit margins,

  • 132bps to 15.1%, as a result of

(1) slight drop in production efficiency as we began the first time producing new products for new customers (2)fixed cost is slightly higher from Ratchaburi plant, this compensate with more flexibility in production line (3) effect of additional provision for long-term employee benefit from new laws 2Q19 Gross profit increase YoY as a result of higher revenue in this quarter, however gross profit margin was dropped (both YoY and QoQ) from the same reason mentioned above 6M19 Net Profit decreased from last year mainly because there were non-recurring item of provision for long-term employee benefits according to the law, lower gross profit margin, higher operating expense. However, there was some gain on sales of scarp.

  • 5.8% QoQ

Unit: Mil.Bt.

+2.1% YoY

Revenue Gross Profits

Unit: Mil.Bt. Unit: Mil.Bt.

+11.1% YoY 4.1% YoY

  • 19.7% QoQ

Net Profits

Financial Performance

  • 9.7% YoY
  • 49.1% QoQ
  • 4.8% YoY
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Financial Performance

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Net Profit after Tax

6M19 Taking out the effect from provision of long-term employee expenses, 33 Mil.Bt. (net tax effect), net profit of this 6-month period increased 8% YoY. (278 Mil.Bt. VS 257 Mil.Bt.) 2Q19 Taking out the effect from provision of long-term employee expenses, 33 Mil.Bt. (net tax effect), net profit of this 3-month period increased by 27% YoY. (116 Mil.Bt. VS 91 Mil.Bt.)

Unit: Mil.Bt. Unit: Mil.Bt.

NPM 3.0% NPM 4.2% NPM 4.4% NPM 4.9% NPM 4.0% NPM 5.1%

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Financial Performance

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Asset Liabilities & Equities Key Ratio

Working Capital Day ROA ROE Debt to Equity

40.5 35.2 days

2018 2019

Working capital day = AR days + Inv days – AP days

3.8% 3.6%

2018 2019

12.8% 9.9%

2018 2019

1.9x 1.7x

2018 2019

11.2% 5%

14,729 13,952

Total asset slightly decreased by 5%, mainly driven by lower inventory, Fixed Asset, and Account Receivable Both short term and long term loan from Bank was decreased from prior year, led to 11.2% decreasing in total liabilities.

Unit: Mil.Bt. Unit: Mil.Bt.

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Financial Performance

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Cash Flow from Operation

Still maintain cash flow from operation above 2,000 Mil.Bt.

* Prorated to total year

Unit: Mil.Bt.

Dividend

Interim Dividend for 2Q19

= 75% of total group profit of 2Q19 = 0.09 Baht per share

Dividend Policy: BGC has policy to pay dividend not less than 40% of net profit while BGC’s subsidiaries has policy to pay dividend not less than 80% of net profit after deduction of legal and general reserves

We aim to provide investors with a good dividend together with capital growth.

Earning per share for 2Q19

= 0.12 Baht per share

* Based on Consolidated P&L *

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Outlook for 2019

17

3

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Business Strategies

Cost reduction by increasing Utilization and Efficiency rate with new technology and information system Actively look for M&A

  • pportunity in

packaging and related businesses Enhance portfolio through Export and High value products Export  from 7% to 10% of total port Continue look to grow in business in other industries apart from packaging Four in discussion ranging from related products to glass packaging itself

Short-Term 2019-2020 2019-2020 2020-2022 2022 onwards Medium-Term Long-Term

We aim for solid growth outlook with consistent dividend

Across BGC businesses

  • Automated plants
  • Top-of-Mind

employers

  • Product innovations
  • Build customer

awareness

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Accelerate Export Growth Drive High Value Products

Incremental volume in

Food Jar i.e. Brand’s & Vietnam Birdnest

Build Platform NNPB product

Transition Phase to convert Returnable to One-Way

Geographical Focus Segment / Product Focus

Expand in Non-BRB Beer

Winning Market Leader

  • Full capacity from RBI
  • Advance our quality

standard to ensure customer satisfaction

  • Appoint agents in key

export markets

  • Approach to no. 1 Brands

in every country

  • Enhance our R&D team

and proactively cooperate with customer to redesign the bottle with improved technology

Market Strategies 2019

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Key driver:

  • Short supply from Re-Export Beer and Wine

market growth

  • Already approach to no.1&2 brewery in both

countries

Oceania

Achieve : 38% Key driver:

  • Rising Global Demand for Containers and

Packaging in India

  • Positive Outlook for Indian Beer and Cider

Market

India

Achieve : 98%

Europe

Achieve : 49% Key driver:

  • Long relationship with Sales Agent
  • Aim for High Value product
  • Total Glass packaging net import

value approximately to 1,528 Mil USD

CLMV

Achieve : 36%

Key driver:

  • Growth mainly from Vietnam and Cambodia
  • Targeted on number 1 beer in each countries

and high value product

Export Market:

Market share & Opportunities

Export market aims to increase from 7% to 10% of total sales in 2019

Q1’19 + Q2’19 Actual sales achieved % Remaining to reach the 2019 sales target

6% of export sales 62% of export sales 10% of export sales 21% of export sales

64% Left 51% Left 62% Left 2% Left

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73.08% 26.46% 0.24% 0.18% 0.04% Minute Maid Splash Green Spot Peptein i-Healti Q10 i-Healti Q10 Lite 98.93% 1.07% Sponsor M-Sport 92.59% 7.21% 0.10% 0.05% 0.05% Singha Plain Chang Leo Plain Perrier Plain Rock Mountain 100%

BGC supply to most category leaders

Source: Global data : marketeeronline

Packaged Water (2018)

THAILAND Market Share By Sector (Glass Packaging)

70%

Sports Drinks (2018) Still Drinks (2018)

70% 22% 4% 4% SPY Full Moon Smirnoff Breezer

Alcohol Ready to Drink

60% 100% 100% 50%

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Projects Roadmap

  • Swabbing Robot install at AGI
  • Gobs Assist install at AGI
  • IRD & IGC install at AGI

2020

  • ES III install at AGI

Q4

  • Ultrasonic install at AGI
  • Automated Lab Sampling Test

Q3

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ES III Expert System Ultrasonic Mold Cleaning IR-D & IGC

  • To save 3-4% of energy consumption at

Furnace or approximately 6 Mil.Bt. /Year

  • To extend mould useful life by 30%,
  • Saving approximately 12 Mil.Bt. /Year
  • Hot-end Inspection and Weight control

process

  • To improve efficiency by 0.5%

Gob Assist - BTC

  • To stabilize the condition of gob forming

and mould temperature which is the key of bottle forming and bottle quality

  • To improve efficiency approximately by 1%

Swabbing Robot

  • To help improve efficiency during lubricate

mould

  • To improve efficiency 1% approximately

Automated Lab Sampling

Before After

  • AGV-Robot pick the bottle from each line

to do volume check and pressure test

  • Periodically sampling check
  • Result link to database
  • Reduce about 30% of QA work load

Projects Overview

Before After

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Automated Lab Sampling Test

  • AGV-Robot pick the bottle from each line to do

volume check and pressure test

  • Periodically sampling check
  • Result link to database
  • Reduce about 30% of QA work load

New Project:

Database

Result Pressure test Volume test

Line 11 Line 12 Line …. Line ….

AGV-Robot Automatic ramp pressure test

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Q & A

4

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Appendix

Company Overview

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Bangkok Glass Public Company Limited (“BG”) was established by a group

  • f companies in

pharmaceutical and beverage industry and financial institutions with registered capital

  • f THB 50.0 mm

2009 2010

BG Container Glass Company Limited (“BGC”) was established by BG with registered capital

  • f THB 1.0 mm

April il 2017 BGC increased its paid-up capital to THB 2,500.0 mm to undertake its corporate group restructuring by acquiring all companies in glass packaging business Oct 2018 18 Initial Public Offering on

  • SET. 194.44 million

newly-issued shares were

  • ffered to general public

at Bt 10.20 per share

Nov 2018

Ratchaburi plant started commercial run with capacity at 400 tons/day

Decem ember er 2017

Rayong plant ceased its operation

1983

Boonrawd Brewery became a major shareholder

1996

Khon Kaen plant has commenced its operation Initiation of “Door to Door” strategy by locating its production facilities close to customers’ facilities, starting at Khon Kaen and followed by Prachinburi

“With the visio ion of experie rienc nced manage agement nt team, , the contin inued expan ansio sion of productio ion capacit ity has as resulted in growth h expan ansio sion

  • ver 4

4 decad ades s of success ss” 30

Key Milestones

Ayutthaya plant has commenced its operation The 1st furnace located at Pathumthani Province commenced its operation Prachinburiplant, jointly invested with T.C. Pharmaceutical Co., Ltd, has commenced its

  • peration

Rayong plant has commenced its operation

2017 2007 1974 1980 2018 2016

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31 As of 28 June 2019

BGC GC Shareholders

Shareholder Structure

100%

100% 100% 100% 100%

72.0% 7.0% 67.5%

51%

49%

PTI KGI AGI PGI RBI

Institutions 19.7 .7% 72.0% Institutions 19.6% Individual 8.4%

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Vision & Mission

VISION MISSION

The Company aims to satisfy our stakeholders in these areas;

Financial To maximize benefits and returns to all stakeholder Customers To deliver quality products with world-class standards and services at a competitive price Business Partnership To work with our partners based

  • n a long-term trust and

relationship Work Process To utilize modern technology in every work process with professional teams Personnel To build people competency, promote team work and employee engagement with an entrepreneurial spirit

“BGC is committed to be the ASEAN leader in manufacturing and selling quality glass and packaging as well as other related products and services.” Quality Service Competitive Pricing

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Company Overview

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Current Production Base Quality Standard

PTI AGI KGI PGI RBI

Q2’2019 Q4’2019

4 Furnaces 1,620 tons/day (46% of group capacity) 3 Furnaces 560 tons/day (16% of group capacity) 1 Furnace 400 tons/day (12% of group capacity) 1 Furnace 180 tons/day (5% of group capacity) 2 Furnaces 735 tons/day (21% of group capacity)

Khon Kaen Plant (KGI) Prachinburi Plant (PGI) RatchaburiPlant (RBI) Pathumthani Plant (PTI) Ayutthaya Plant (AGI)

Total 11 11 Furnac aces 3,495 tons/day ay

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Wh Why BGC? y BGC?

1 2 3 4 5

One of the Largest glass container manufacturers in the ASEAN region Optimized production process with stability and flexibility State of the Art Machines with continuous improvement and experienced engineering team Long relationship with customers and suppliers Network in Key Strategic Locations

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