POLYPLEX (THAILAND) PLC (PTL) Presentation at the SET Opportunity - - PowerPoint PPT Presentation

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POLYPLEX (THAILAND) PLC (PTL) Presentation at the SET Opportunity - - PowerPoint PPT Presentation

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POLYPLEX (THAILAND) PLC (PTL) Presentation at the SET Opportunity Day Thursday, 16 March, 2017 Website : www.polyplexthailand.com Contents Polyplex Brief Background Global Presence Group Structure Group Capacity Long

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Thursday, 16 March, 2017

POLYPLEX (THAILAND) PLC (PTL) Presentation at the SET Opportunity Day

Website : www.polyplexthailand.com

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

  • Polyplex
  • Brief Background
  • Global Presence
  • Group Structure
  • Group Capacity
  • Long term Strategy
  • Value Chain
  • PET Film
  • An Introduction
  • Key Segments
  • Key differentiators
  • A Clear Competitive Advantage
  • Product offering
  • Systems & Processes
  • Financial Highlights 2016-17 (9M)
  • Industry Outlook
  • Business Outlook
  • Q&A

Contents

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

  • Global player with a presence in all key geographies - manufacturing facilities in

India, Thailand, Turkey and USA complemented by an extensive network of sales & representative offices and warehouses

  • Principal business is Polyester (PET) film – a plastic film used in flexible

packaging and a range of industrial applications.

  • Integrated operations – captive raw material & a diverse portfolio of downstream

products

  • Total Revenue of THB 12.3 billion and EBITDA (excl. FX loss and impairment) of

THB1.8 billion (15% of revenue) in FY 2015-16 at PTL Consolidated level

  • A strong & liquid Balance sheet with low level of leverage of 0.31x as on

31-Dec-16 (PTL consolidated - Debt only, net of cash & cash equivalents)

  • PTL consolidated net worth of THB 9.6 billion as on 31-Dec-16

Polyplex : Brief background

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyplex : Global Presence

5 Manufacturing Locations in 4 countries Representative Office / WH in additional 10 countries USA Mexico China Thailand Malaysia India (2) Turkey Poland South Korea Germany & NL (2) Italy Spain Singapore

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyplex : Global Presence

India SEA/Far East Asia Europe North America

(Khatima/Bazpur: India) (Rayong: Thailand) (Corlu: Turkey) (To add from Ashok Sharma (Decatur, AL, USA) 2 Thin PET lines 1 Intermediate PET line 1 BOPP line 4 Metallizers 1 Offline Silicon Coater 2 Offline Chemical Coaters 2 PET Resin Plants 2 Thin PET Lines 1 Thick PET Line 1 CPP Line 1 Blown Film Line 4 Metallizers 1 Offline Silicon Coater 2 Extrusion Coaters 3 PET Resin Plants 2 Thin PET Lines 4 Metallizers 2 Offline Chemical Coaters 1 PET Resin Plant 1 Thin PET Line 2 Metallizers 1 PET Resin Plant Warehouses in India WH/Trading Co. in China and Rep. Offices in Korea & Malaysia WH/Trading Co. in Netherlands and WH in Germany, Italy, Poland and Spain Warehouses in Mexico & USA

Integrated Diversified Strategically Located

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyplex : Group Structure

Polyplex Corporation Limited ( PCL / Polyplex India) INDIA Polyplex (Asia) Pte.Ltd (PAPL / Polyplex Asia) SINGAPORE 100% Polyplex (Thailand) Public Co. Ltd. (PTL / Polyplex Thailand) THAILAND 33.81% 17.19% Polyplex Trading (Shenzhen) Co. Ltd. (PTSL / Polyplex China) CHINA Polyplex (Singapore) Pte. Ltd. (PSPL / Polyplex Singapore) SINGAPORE Polyplex America Holdings Inc. (PAH) USA 100% 100% 100% Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi (PE / Polyplex Europa) TURKEY Polyplex USA LLC (PU / Polyplex USA) USA 100% 100% TRADING & DISTRIBUTION MANUFACTURING COMPANY INVESTMENT COMPANY OUTSIDE INTEREST EcoBlue Ltd THAILAND Private Investor Public/ Institutional Shareholder 100% Polyplex Europe B.V. (PEBV / Polyplex Netherlands) NETHERLANDS Polyplex Paketleme Çözümleri Sanayi ve Ticaret Anonim Şirketi (PP / Polyplex Turkey) TURKEY 100% Investment and Trading & Distribution 33.5% 66.5% 49%

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyplex : Group capacity

Note: Polyplex’s attractive product portfolio is a key differentiator as compared to competition

55,000

  • 42,000
  • 58,000
  • 31,000
  • 28,800
  • 35,000
  • 10,000
  • 4,645
  • 77,600
  • 80,500
  • 57,600
  • 57,600
  • 28,500
  • 21,700
  • 17,700
  • 8,700
  • 270
  • 865
  • 146
  • 100

200 300 400 500 600 700 800 900 1,000

  • 25,000

50,000 75,000 100,000 Base Film PET Film Resin MET Film Coated Film Base Film PET Film Resin MET Film Coated Film Base Film PET Film Resin MET Film Coated Film Base Film PET Film Resin MET Film PET-Thin PET-Thick BOPP CPP Blown PP PET Film Resin Metallizer Coated Films

INDIA

Mn Sqm MT

THAILAND USA TURKEY

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

  • Complete Solution Provider for select applications such as Flexible Packaging,

Photo Voltaic Backsheets, Labels etc.

  • Expand specialty portfolio in all chosen fields of business (Thin PET, Thick

PET, BOPP, CPP, Extrusion coating, Silicon Coating and Blown PP/PE)

  • Efficient and cost effective “End to End” Supply chain
  • Local Technical Service and Sales team (GLOCAL)
  • Differentiation and Innovation at most optimal cost
  • Automation of Systems and Processes
  • Care for Environment

Polyplex : Long Term Strategy

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyplex : Value Chain

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Polyester (PET) Film : An Introduction

  • PET Film constitutes bulk of our base film capacity
  • It is a versatile plastic film with a wide range of applications
  • The industry / product is usually segmented across the following attributes:
  • Thickness

Thin Films

  • 8-50 micron

Thick Films

  • 50-350 micron

There are also several intermediate thickness lines with capability across a

subset of thin and thick films

Typically there is a lack of supply substitutability between thin films lines and

thick film lines

  • Application

Flexible Packaging - By far the dominant use for PET films Industrial - A myriad of usage across several individual applications / industries Electronic / Electrical - Another key segment of usage

  • Functional properties

Films can be differentiated by type / mix of PET resins used as input, inline

coatings or variations in processing conditions

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

PET Films : Key Segments

  • Packaging
  • Continues to grow – expected 7-9% for next 10 years (Historical 11%)
  • Emerging economies (India/ China) – 8%-10%
  • Other growing economies (SA/ SEA) – 6-8%
  • Future economies – Africa
  • Segment Market Share – 50-60%
  • Industrial & Electrical (General Purpose)
  • Industrial and Consumer discretionary applications
  • Economic and Technological changes influence growth
  • Optical
  • Flat Screen
  • Touch Screen
  • Growth governed by changing life style and higher disposable incomes
  • Photovoltaic (PV)
  • Significant demand growth expected
  • Speed of penetration/ Cost of Module/ Government Policy will drive demand
  • Magnetic Media and Imaging Graphics overtaken by digitization
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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Key Differentiators : A Clear Competitive Advantage

Global Presence Steady Growth Focus on Differentiation Wide Product Range Value Added Sales Sustainable Solutions

Base Films: Thin PET, Thick PET, BOPP, CPP, Blown Film (PP/PE) Forward Integration: Al.Met, AlOx Met, offline chemical coating, silicon coating, extrusion coating

11% = 10 Years CAGR in Sales Asia 31% North America 33% Europe 33% ROW 3%

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000 Sales - Million THB

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Plain Film Value Added Film

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

  • Packaging substrates
  • 8 to 350 Micron PET films
  • BOPP
  • CPP
  • Blown PP/PE
  • Wide Surface Treatments Options
  • One & Both side coating
  • Several Chemical Treatment Types
  • Off-line Coated/Treated Products
  • Siliconized Films
  • Thermal Films (PE & EVA)
  • Transparent Barrier (AlOx, PVDC etc..)
  • Product Portfolio includes
  • Colored Films
  • Digital & Print Media Films
  • Shrink Film
  • Continuously Growing

Key Differentiators : Product offering

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Key Differentiators : Systems & Processes

  • Products compliant with:

FDA, EC, REACH and Japan Food Sanitation Law

  • Quality Assurance system

integrated into our ERP systems

  • TPM Work Philosophy
  • Reporting
  • f

environmental and social performance as per the Global Reporting Initiative (GRI) 3.1 guidelines

  • 4 patents + 8 applications

under process

  • Well

defined risk management framework

Industry Memberships

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Financial Highlights 2016-17 (9M)

  • Previous

financial year had exceptional loss items – Asset Impairment, DTA reversal and significant forex losses.

  • Overall

improvement in

  • perational

performance at Thailand and subsidiaries – result

  • f continuous focus on production

efficiency and improvement in margins/ rationalization of product mix

  • Drop in sales revenue despite

higher volumes– Lower sales realization due to drop in key raw material

  • Forex

Gains –on forex Loan restatement at Thailand and USA

  • Raw material volatility - Increase

in RM in Q3 impacted margins due to time lag in adjusting selling prices. RM continues to be

  • n

increasing trend.

  • Continued

focus

  • n

Cost reduction and improvement in production efficiency PARTICULARS UOM 9M 2016-17 9M 2015-16 YoY % Sales (All types of film) MT 128,591 125,867 2% Total Revenues Mn THB 8,614 9,116

  • 6%

EBITDA Mn THB 1,632 (7) Unrealized FX (loss) gain Mn THB (7) (234)

  • 97%

Exceptional (loss) /gain - Impairment loss Mn THB

  • (349)

100% Normalized EBITDA Mn THB 1,639 576 185% Normalized PBT Mn THB 1,092 279 291% Exceptional Tax Loss - DTA reversal Mn THB

  • (269)

100% Normalized PBT (after minority interest) Mn THB 1,092 548 99%

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

  • Expected growth
  • Thin PET  7-8% p.a. (driven by Flexible packaging)
  • Thick PET  5-6% p.a. (driven by Optical & Solar)
  • Overall demand supply scenario is expected to be in customer’s favor for next 1-2 years
  • Trend of Asian/ Far-East Asian countries experiencing higher growth rate and the

developed economies of Europe and US witnessing lower growth rate expected to continue.

  • Margins continue to be under pressure due to raw material price volatility.
  • Regionalized supplies preferred due to volatile crude prices, FX movement and

seasonality in businesses.

Industry Outlook

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

STRATEGIC FOCUS AND DIRECTION FOR NEXT 2 YEARS

  • Maximize Asset utilization
  • Ramp up of the newer assets commissioned in 2013 & 2014 – Thick Film and Thermal Lamination line
  • Further rationalization of the product mix
  • Improve operating efficiencies – Focus on waste reduction and lower product down gradation
  • Small downstream investments considered to improve overall profitability (metallizer lines)
  • Expand profit margin by increasing DPAC sales (Differentiated Products, Applications and

Customers)

  • Product portfolio expansion – Target to penetrate the high end segment of Thick PET film industry.
  • Expand sales of niche products using newly commissioned downstream assets: Extrusion coating in

Thailand, Offline Coating and AlOx coating in Turkey

  • Improving market reach and market penetration: Move closer to the customer, offering differentiated

value propositions in terms of product, service and quality, investing in representative offices, distribution setups and network of commission agents across the globe.

  • Continuing efforts to reduce operating costs
  • Reduce Net current assets ( NCA) levels –Focus on inventory reduction
  • Investing in sustainable business practices
  • Reduce carbon footprint
  • Reduce solid waste generation and water consumption
  • Provide sustainable solution for film based process waste through Ecoblue – (PTL investment in

recycling business)

  • Community service

Business Outlook

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

Q&A

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Polyplex (Thailand) Public Company Limited Confidential Information intended for the immediate recipient only

The views expressed here contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Polyplex (Thailand) Public Co., Ltd. Nothing in this release should be construed as either an offer to sell or a solicitation to buy or sell shares in any jurisdiction.

Thank You