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BG Container Glass Public Company Limited
Opportunity Day
17th May 2019
Opportunity Day 17 th May 2019 1 Dis isclai aime mer The - - PowerPoint PPT Presentation
BG Container Glass Public Company Limited Opportunity Day 17 th May 2019 1 Dis isclai aime 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
17th May 2019
Dis isclai aime 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
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
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
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 5 2
Company Overview Business Update Financial Highlights Outlook for 2019 Q & A
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Bangkok Glass Public Company Limited (“BG”) was established by a group
pharmaceutical and beverage industry and financial institutions with registered capital
2009 2010
BG Container Glass Company Limited (“BGC”) was established by BG with registered capital
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 Initial Public Offering on
newly-issued shares were
at Bt 10.20 per share
Nov 2018
Ratchaburi plant started commercial run with capacity at 400 tons/day
December 2017 17
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 vision of experienced management team, m, the continu inued ed expan ansion sion of productio ion n capacit ity y has resulted lted in growth h expansio nsion n
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Key Milestones
Ayutthaya plant has commenced its operation The 1st furnace located at Pathumthani Province commenced its operation Prachinburi plant, jointly invested with T.C. Pharmaceutical Co., Ltd, has commenced its
Rayong plant has commenced its operation
2017 2007 1974 1980 2018 2016
6 As of 15 Mar 2019
BGC BGC Shareholders
Shareholder Structure
100%
100% 100% 100% 100%
72.0% 7.0% 67.5%
51%
49%
PTI KGI AGI PGI RBI
72.0%
Institutions 19.7% Individual 8.3%
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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
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
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) Ratchaburi Plant (RBI) Pathumthani Plant (PTI) Ayutthaya Plant (AGI)
Total 11 11 Furnaces es 3,495 95 tons/day ay
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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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Sales growth 3% YoY even with a high-based in 1Q18
High growth in Export, 10% of total sales (Diversification Strategy) Continually install automated machines and system for Cost Optimization
Debt to Equity improved to 1.7 (Before IPO = 3.0, After IPO = 1.9)
Launch 3 new products in India (No.1 Beer), Vietnam (No.3 Beer) and Spain
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Beer Soft Drinks (Non-Alcohol) Food Insecticides & Drugs Other Products
36% 42% 1% 9% 12%
Unit: Mil Bt.
Sales Breakdown Q1 2019 Sales Revenue Q1 2019
(increase by 9% vs. Q1/18).
379 bps from Q1/18
Q1/18 = 43% Q1/18 = 34% Q1/18 = 13%
Bottle Sales Update
Sales distribution Domestic = 90% Export = 10%
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Unit: Mil Bt.
Sales and Net Profit by quarter
Unit: Mil Bt. 2,688 2,788 2,677 3,011 2,798 2,265 2,280 3,057 2,896
3.7%
12.5%
0.7% 34.1%
4.1%
1.5% 3.5%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
QoQ YoY 49 65 69 54 166 91 84 155 162
1.8% 2.3% 2.6% 1.8% 5.9% 4.0% 3.7% 5.1% 5.6%
10 30 50 70 90 110 130 150 170 1901Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
NPM
Net Profit after Tax Sales Revenue
High base in 1Q18 while drop in 2Q18 and 3Q18
3.0 3.5 4.0
Jan'17 Apr'17 Jul'17 Oct'17 Jan'18 Apr'18 Jul'18 Oct'18 Jan'19
Production & Major Raw Material Update
Production Cullet Price
Cullet price continually decreased since the beginning of the year Utilization drop due to stock management Efficiency drop due to launching new products to export market 14 BGC have a temporarily lower energy cost in Oct 18 to Jan 19.
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
Brent Crude Oil Price
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Water Conservation
โครงการเผยแพร่ความรู้องค์กร และงานรัฐกิจสัมพันธ์
บีจีซีรักษ์น ้า vis visits its
โครงการมอบคอมพิวเตอร์ และอุปกรณ์อิเล็กทรอนิกส์
โครงการขวดแก้วแลกบุญ Recycle
Water For Life Concert
กิจกรรมให้ความรู้เรื่องการคัดแยกขยะ Education
สนับสนุนโครงการให้ทุนการศึกษาบุตร- ธิดาสมาชิกสมาคมผู้สื่อข่าวเศรษฐกิจ
สนับสนุนสโมสรวอลเลย์บอลแอร์ฟอร์ซ
Sport
สนับสนุนฟุตบอลหญิงทีมชาติ สนับสนุนการแข่งขันกอล์ฟการกุศล MAT Golf Charity 2018 สนับสนุนการแข่งขันกอล์ฟเยาวชน รายการ Watermill Junior Golf
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Financial Performance
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YoY 3% revenue growth derived from (1) export sales of beer bottles, up 174% year-on-year (2)9% increased in both export and domestic sales of soft drink bottles Export sales rose 90% year-on-year to push the contribution to 10% of total sales QoQ As sales of domestic beer bottle rose in 4Q18, revenue dropped 5% in 1Q19 +3.5% YoY YoY Higher gross profit, compared with 1Q18, however, gross profit margin drop of 47 basis points to 16.2% as a result of (1) slight drop in production efficiency as we began the first time producing new products for new customers (2)+2% year-on-year increase in average energy price (3) fixed cost is slightly higher from Ratchaburi plant, this compensate with more flexibility in production line QoQ Gross profit decreased as resulted from drop in sales, however gross profit margin was remain the same as in 4Q18 YoY As, 1Q18 had hit the highest net profit in the past 8 quarters, net profit for 1Q19 was dropped by 2% Operating expenses increased mainly from staff-related expenses, rental expense while interest and tax expenses decreased in 1Q19 QoQ Higher net profit even sales dropped, thank you lower selling expense and tax expenses in 1Q19
Unit: Mil.Bt.
+0.6% YoY
+5% QoQ
Revenue Gross Profits & GPM Net Profits after Tax & NPM
Unit: Mil.Bt. Unit: Mil.Bt.
Financial Performance
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Asset Liabilities & Equities Key Ratio
Working Capital Day ROA ROE Debt to Equity
40.5 39.4 days
2018 2019
Working capital day = AR days + Inv days – AP days
3.8% 4.6%
2018 2019
12.8% 12.9%
2018 2019
1.9x 1.7x
2018 2019
6% 3%
14,729 14,354
Total asset slightly decreased by 3%, mainly driven by lower inventory. Both short term and long term loan from Bank was decreased from prior year, led to 6% decreasing in total liabilities.
Unit: Mil.Bt. Unit: Mil.Bt.
Financial Performance
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Dividend
Interim Dividend for 1Q19
= 51% payout ratio = 0.12 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.
Cash Flow from Operation
Still maintain cash flow from operation above 2,000 Mil.Bt.
Unit: Mil.Bt.
Earning per share for 1Q19 = 0.23 Baht per share
* Based on Consolidated P&L * * * Prorated to total year
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Cost reduction by increasing Utilization and Efficiency rate with new technology and information system Enhance portfolio through Export and High value products Export from 7% to 10% of total port Actively look for M&A
packaging and related businesses 4 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
employers
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
standard to ensure customer satisfaction
export markets
in every country
and proactively cooperate with customer to redesign the bottle with improved technology
Market Strategies 2019
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Key driver:
market growth
countries
Oceania
Key driver:
Packaging in India
Market
India Europe
Key driver:
value approximately to 1,528 Mil USD
CLMV
Key driver:
and high value product
Export Market:
Market share & Opportunities
Export market aims to increase from 7% to 10% of total sales in 2019
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Key Drivers
product varieties and flexibility to maximize utilization
Key Drivers
applied in 3 production lines
89.1%
87.6%
Avg, Efficiency Rate
Target Efficiency Target Utilization
Profitability Improvement : Target 2019
(Total 2019) (Total 2019)
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