S.Kijchai Enterprise Public Company Limited (“SKN”) OPPORTUNITY DAY Q2/2020 20 August 2020
OPPORTUNITY DAY PRODUCT Q2/2020 SKN offer custom-made MDF Board made by rubber wood. SKN’s customers can specify their desired thickness, size, and type of glue Thickness Type of glue Europe Standard Super thin board : 1.0 – 2.4 mm Width ≤ 8 Feet • E0 Thin board : 2.5 – 4.0 mm • E1 Medium board : 4.1 – 9.0 mm • E2 Thick board : 9.1 – 25.0 mm Super thick board : 25.1 – 30.0 mm US Standard • CARB P2 Thickness Special properties of the product 1.0 - 30.0 mm FSC Product High Moisture Resistance board - HMR 2
OPPORTUNITY DAY KEY CHARACTERISTIC AND APPLICATION Q2/2020 BUILT-IN CASING INERIOR / WALL DOOR FURNITURE FLOOR 3
OPPORTUNITY DAY STANDRAD AND CERTIFICATION Q2/2020 ISO 9001:2015 ISO 14001:2015 CARB CERTIFICATE FSC CERTIFICATE Quality Management System Environmental Management CARB FSC – COC Standards System Standards (California Air Resources Board) (FSC - Chain of Custody Certification) 4
OPPORTUNITY DAY OVERVIEW Q2/2020 WOOD-BASED PANELS Production of World 10 Top countries production of year 2018 5 Source : FAO Year 2014-2018
OPPORTUNITY DAY OVERVIEW Q2/2020 WOOD-BASED PANELS Export of World 10 Top countries export of year 2018 6 Source : FAO Year 2014-2018
OPPORTUNITY DAY OVERVIEW Q2/2020 MDF/HDF Production of World 10 Top countries production of year 2018 7 Source : FAO Year 2014-2018
OPPORTUNITY DAY OVERVIEW Q2/2020 MDF/HDF Export of World 10 Top countries export of year 2018 8 Source : FAO Year 2014-2018
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 MAJOR CUSTOMER Wholesalers Furniture Constructors Laminate Factory Factory Distributors 9
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 COUNTRY DISTRIBUTION 10
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 COUNTRY DISTRIBUTION 11
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 SALE CHANNEL 12
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 SALE PROPORTION 13
OPPORTUNITY DAY MARKETING OVERVIEW Q2/2020 INCOTERM 14
OPPORTUNITY DAY PRODUCTION OVERVIEW Q2/2020 PRODUCTION In 1 st - 3 rd quarter of year 2018, the highest production capacity is 240,000 cubic meters per year. In 4 th quarter of year 2018 until present, the highest production capacity is 500,000 cubic meters per year. In 2019, the 2 nd Production line has achieved production capacity is over 90 percent of Year 2019 Year 2020 highest production capacity. 15
OPPORTUNITY DAY INVESMENT PROJECTS Q2/2020 SAP IMPLEMENTATION SOLAR ROOF PROJECT Started to use SAP Approved the project by On 1 st January 2019 The Board of Directors On 27 th February 2019 ESP PROJECT Signed the Project Agreement with Approved the project TOTAL SOLAR (THAILAND) CO.,LTD On 9 th November 2018 Commercial Operation Date (COD) Start to use system In 4 th Quarter of year 2020 In 4 th Quarter of year 2019 16
OPPORTUNITY DAY INVESMENT PROJECTS Q2/2020 S.KLEBER CHEMICAL Co.,Ltd. Manufacture and distribution of Glue and Chemical Approved the project by The Board of Directors on 12 th May 2018 Location WHA Rayong Industrial Land Commercial Operation Date ( COD ) In 4 th Quarter of year 2020 17
OPPORTUNITY DAY FINANCIAL HIGHLIGHTS Q2/2020 Total assets Total liabilities Total shareholders' equity (Million Baht) (Million Baht) (Million Baht) 18
OPPORTUNITY DAY FINANCIAL HIGHLIGHTS Q2/2020 Revenue from sales Gross profit Profit for the period (Million Baht) (Million Baht) (Million Baht) 19
OPPORTUNITY DAY FINANCIAL HIGHLIGHTS Q2/2020 REVENUE, GROSS PROFIT, NET PROFIT 1H’2019 1H’2020 Q1’2019 Q1’2020 Q2’2019 Q2’2020 17.70% 25.24% Gross Profit Margin 18.38% 22.65% 16.96% 28.20% 0.84% 7.90% Net Profit Margin 0.72% 4.78% 0.97% 11.50% 20
OPPORTUNITY DAY FINANCIAL HIGHLIGHTS Q2/2020 KEY FINANCIAL RATIOS Y’2018 Y’2019 1H’2020 Return on Assets (%) 1.83% 5.38% 6.97% Return on Equity (%) 2.57% 7.60% 8.84% Debt to Equity (times) 0.39 0.41 0.42 Interest Coverage Ratio (times) 21.38 9.18 16.22 Gross Profit Margin (%) 27.53% 19.07% 25.24% Net Profit Margin (%) 13.44% 2.57% 7.90% 21
OPPORTUNITY DAY RISK MANAGEMENT Q2/2020 Currency Exchange Rate International Trade Measures Trade War Coronavirus (COVID-19) 22
OPPORTUNITY DAY RISK MANAGEMENT Q2/2020 USD/THB Currency Exchange Rate 23 Source : BANK OF THAILAND ( https://www.bot.or.th)
OPPORTUNITY DAY RISK MANAGEMENT Q2/2020 International Trade Measures 1. Anti-dumping duty for the MDF board import transections from countries that export MDF board to Vietnam including Malaysia and Thailand ( Repealed ) 2. Countervailing Duty for the Fiberboards import transections from countries that export Fiberboards to India including Indonesia, Malaysia, Sri Lanka, Thailand, and Vietnam (Ongoing Investigation) 3. Anti-Dumping Duty for the Plain Medium Density Fiber Board import transections from countries that export to India including China, Malaysia, Thailand, and Sri Lanka (Ongoing Investigation) 24
OPPORTUNITY DAY BUSINESS OUTLOOK Q2/2020 Marketing Production Environmental 25
OPPORTUNITY DAY BUSINESS OUTLOOK Q2/2020 MARKETING Activities Target Keep closely contacting with customers via online Sell more products with special thickness channels Sell more products with special properties Expand customers base in other regional markets Keep monitoring the changing situation closely Increase the ratio of direct sales channels to 70 % 26
OPPORTUNITY DAY BUSINESS OUTLOOK Q2/2020 PRODUCTION Activities Target Coordinate with the supplier to develop special Focus on products with special properties properties of the product Maintain production capacity at over 90 percent of total production capacity Minimize downtime 27
OPPORTUNITY DAY BUSINESS OUTLOOK Q2/2020 ENVIRONMENTAL Activities Improve wastewater treatment system to reuse more water in production process Coordinate with public and private researchers to develop company by-products for community use 28
Q&A 99/9 M.7 Hauy Yang Sub-district, Klaeng District, Rayong Province 21110 Website: www.skn.co.th Tel. 03-892-8188 Email: skn@kijchai.co.th
THANK YOU Harnsiri Sangwongkit - Orawan Sangwongkit Speaker 99/9 M.7 Hauy Yang Sub-district, Klaeng District, Rayong Province 21110 Website: www.skn.co.th Tel. 03-892-8188 Email: skn@kijchai.co.th
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