Polyplex (Thailand) PLC (PTL) Jun 13 th , 2018 Fourth Quarter & - - PowerPoint PPT Presentation

▶
polyplex thailand plc ptl
SMART_READER_LITE
LIVE PREVIEW

Polyplex (Thailand) PLC (PTL) Jun 13 th , 2018 Fourth Quarter & - - PowerPoint PPT Presentation

Nov 28, 2023 232 likes •395 views

Polyplex (Thailand) PLC (PTL) Jun 13 th , 2018 Fourth Quarter & Full Year 2017 - 2018 Financial Results & Summary Polyplex A Global Local Company Netherlands Japan Turkey South Korea USA India China Mexico Thailand Malaysia

slide-1
SLIDE 1

Fourth Quarter & Full Year 2017 - 2018 Financial Results & Summary Polyplex (Thailand) PLC (PTL)

Jun 13th, 2018

slide-2
SLIDE 2

USA Mexico China Thailand Malaysia India Turkey South Korea

Manufacturing Locations Representative Office Warehouse

Netherlands Singapore Indonesia

Upcoming Manufacturing Location

  • Six Manufacturing

Facilities in 5 Countries

  • Multiple

warehouses and Rep offices around the world

Polyplex – A Global Local Company

Parent Company Manufacturing Location

Highlights

Upcoming Representative Office

Japan

slide-3
SLIDE 3

Financial Highlights

Actual Number YoY Growth Actual Number YoY Growth

Q4 FY 17-18

EBITDA* 599 MN THB Net Profit* 375 MN THB RoCE 12.49% RoE 14.25%

37% 76% 59% 61%

Q4 FY 16-17

EBITDA* 437 MN THB Net Profit* 213 MN THB RoCE 7.84% RoE 8.84%

FY 17-18

EBITDA* 2,348 MN THB Net Profit* 1,434 MN THB RoCE 12.05% RoE 13.64%

19% 38% 26% 26%

FY 16-17

EBITDA* 1,973 MN THB Net Profit* 1,040 MN THB RoCE 9.60% RoE 10.79%

*Normalized for Forex gain/(loss)

Highlights

slide-4
SLIDE 4

Production: Base Film

Actual Number YoY Growth Actual Number YoY Growth

Q4 FY 17-18

PET - Thin 30,654 MT PET - Thick 5,345 MT CPP 2,229 MT Blown Film 897 MT

2.5% 3.3%

  • 3.0%

9.8%

*Normalized for Forex gain/(loss)

Q4 FY 16-17

PET - Thin 29,912 MT PET - Thick 5,176 MT CPP 2,299 MT Blown Film 817 MT

FY 17-18

PET - Thin 125,724 MT PET - Thick 19,500 MT CPP 8,670 MT Blown Film 3,140 MT

5.0% 5.5%

  • 6.5%

8.7%

FY 16-17

PET - Thin 119,762 MT PET - Thick 18,479 MT CPP 9,274 MT Blown Film 2,888 MT

Highlights

slide-5
SLIDE 5

Production: Value Added Film

Highlights

Actual Number YoY Growth Actual Number YoY Growth

Q4 FY 17-18

Metallized Film 7,035 MT Offline Coated 410 MT Saralam 55 MN SQM Saracote 67 MN SQM

10.3% 42.2% 3.7% 13.5%

*Normalized for Forex gain/(loss)

Q4 FY 16-17

Metallized Film 6,380 MT Offline Coated 288 MT Saralam 53 MN SQM Saracote 59 MN SQM

FY 17-18

Metallized Film 27,797 MT Offline Coated 1,388 MT Saralam 209 MN SQM Saracote 268 MN SQM

4.4% 18.6% 0.4% 21.6%

FY 16-17

Metallized Film 26,614 MT Offline Coated 1,170 MT Saralam 208 MN SQM Saracote 220 MN SQM

slide-6
SLIDE 6

1,206 1,495 1,465 4,341 1,944 696 407 879 1,452 1,973 2,348 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 MN THB Normalized EBITDA# As % of Revenue

Financial Performance

EBITDA* (PTL Consolidated basis)

* Normalized for Forex gain/(loss) and one time exceptional items (impairment loss in 2015-16)

  • Over 6X growth since

downturn in 2013

  • Supernormal profits in

2010-11 due to industry upcycle

  • Growth led by
  • Capacity expansion
  • Product Portfolio

enhancement

  • Recovering industry

margins

slide-7
SLIDE 7

EPS (PTL Consolidated basis)

* Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16)

1.07 1.14 1.22 4.82 1.85 0.28 (0.12) (0.11) 0.37 1.18 1.59 (1.00)

  • 1.00

2.00 3.00 4.00 5.00 6.00 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Normalised EPS# (annualized)

  • EPS back on positive trend

post downturn in 2013

  • Supernormal profits in

line with the industry wide trend in 2010-11

  • The Rights issued in 2016

resulted in dilution of EPS – the improvement would have otherwise been more impactful

Financial Performance

slide-8
SLIDE 8

EBITDA vs EPS

Normalized* EBITDA (On PTL consolidated basis) in ‘000 THB Normalized* EPS in THB/ Share

* Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16)

433,174 587,190 596,553

Q4 16-17 Q3 17-18 Q4 17-18

1,973,425 2,348,230

FY 16-17 FY 17-18

0.24 0.40 0.42

Q4 16-17 Q3 17-18 Q4 17-18

1.18 1.59

FY 16-17 FY 17-18

  • EBITDA and EPS both on increasing trend QoQ (Sequential) and YoY

Financial Performance

slide-9
SLIDE 9

RoCE: Recovery to Growth

* Normalized for Forex gain/(loss) and one time exceptional items (impairment loss/DTA reversal in 2015-16)

Key drivers

  • Improvement in CUF of investments made in 2011 –

12

  • Capacity expansion by debottlenecking of existing

assets

  • Expanding customer base
  • Investing in assets and technology to broaden the

product portfolio

  • Continued focus on cost reduction and efficiency

improvement ‘Kaizen’

2.27% 7.40% 9.60% 12.05% FY 14-15 FY15-16 FY 16-17 FY 17-18

Financial Performance

slide-10
SLIDE 10

Specialized Products & Applications

  • In 2013-14 product differentiation withstood the negative cyclical effects
  • Strategy to increase specialized products & applications over the next few years to further hedge

against market cyclicality

* Normalized for Forex gain/(loss) and any one time exceptional items (impairment loss in 2015-16)

Initiatives

  • 100

200 300 400 500 600 700 800 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

MN THB/ annum

Net Margin from High Value Add and Specialty (HVAS) Films

0% 10% 20% 30% 40% 50% 60% 70% 80% 500 1,000 1,500 2,000 2,500 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18

MN THB/ annum

EBITDA v/s Net Margin from HVAS

EBITDA (normalized) Net Margin from HVAS as % of EBITDA

slide-11
SLIDE 11

Initiatives: Past, Present and Future

FY 18 – 19

  • Startup of metallizer in the

USA (6 KTPA)

  • Startup of Blown Film line – 2

(4.2 KTPA)

  • Debottlenecking of PET film

line at Thailand (Phase 1)

  • New Products under

development

  • Super High Barrier

metallized films

  • Top layer PV film
  • Scuff free films
  • Base film for high end

Silicone coating (electronics)

FY 19 – 20

  • Startup of PET film line, PET

Resin plant and metallizer in Indonesia

  • Startup of Silicone coating line

and offline coater in Thailand

  • Debottlenecking of PET film

line at Turkey (2nd Phase)

  • New Products Target
  • High end Silicone coated

films for electronics applications

  • Integrated film for PV

application

  • Ultra clear top and

middle layer films for bifacial PV module

FY 17 – 18

  • Production capacity

enhancement (~4%) through debottlenecking of Turkey

  • perations (1st Phase)
  • Production efficiency

improvement (~18%) at USA

  • Energy saving through
  • Engine and Resin Plant

Heat Recovery at Turkey

  • Twin Screw Extruder and

EG Recovery at Thailand

  • New Products developed:
  • High barrier Alox films
  • Colored films
  • Ultra Matte films
  • Soft touch films
  • Film for Medical patches

Initiatives

slide-12
SLIDE 12

Indonesia Project Update

Specification Unit Value Remarks Line Speed Meters per min 650 Fastest ever Final Width Meters 10.6 Widest ever Layers NA ABC Varied surface properties Thickness Range µ 8 – 125 Varied applications Production Capacity KTPA 44 Most productive ever Other special features NA NA Direct Melt Casting

Layer 1 Layer 2 Layer 3

  • Land
  • Acquisition completed
  • Leveling completed
  • Piling in progress
  • Machinery
  • Major machines ordered
  • Financing
  • Equity infused
  • Funding in place
  • Startup: expected Q3 2019

Initiatives

slide-13
SLIDE 13

Global Demand and Supply

  • Robust demand growth ~6%
  • Current CUF (76%) shows some

spare capacity in the industry

  • Improving industry margins reflect

narrowing demand supply gap

  • VA in China and Far East * on a rising

trend

  • Margins are likely to continue to

increase in near term PET Film Industry Outlook for future

85% 70% 73% 76% 80% 83% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2011 2016 2017 2018 2019 2020 2021 KMTPA* Global Capacity Global Demand CUF (%)

*As per Industry Reports

slide-14
SLIDE 14

RM and Film Prices Trend Outlook

  • All the numbers mentioned in the graphs above are

from the industry reports

  • The main RM for PET film: PTA and MEG
  • Prices of PTA and MEG move in tandem with crude oil prices
  • Crude oil likely to stay $ 65 – 75/ bbl (industry reports) for

2018

  • PET film prices move in tandem with RM (PTA and MEG)

with a lag of 2 – 3 months

0.51 0.52 0.53 0.60 0.57 0.53 0.67 0.70 0.00 0.50 1.00 1.50 2.00 Q1 FY 16- 17 Q2 FY 16- 17 Q3 FY 16- 17 Q4 FY 16- 17 Q1 FY 17- 18 Q2 FY 17- 18 Q3 FY 17- 18 Q4 FY 17- 18 USD/ KG

Far East

PET Film (12 Mic.) PTA MEG VA Over PTA & MEG 1.72 1.70 1.67 1.55 1.58 1.65 1.57 1.59 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Q1 FY 16- 17 Q2 FY 16- 17 Q3 FY 16- 17 Q4 FY 16- 17 Q1 FY 17- 18 Q2 FY 17- 18 Q3 FY 17- 18 Q4 FY 17- 18 USD/ KG

USA

PET Film (12 Mic.) PTA MEG VA Over PTA & MEG 1.03 0.98 0.99 0.93 1.05 1.13 1.13 1.14 0.00 0.50 1.00 1.50 2.00 2.50 Q1 FY 16- 17 Q2 FY 16- 17 Q3 FY 16- 17 Q4 FY 16- 17 Q1 FY 17- 18 Q2 FY 17- 18 Q3 FY 17- 18 Q4 FY 17- 18 EUR/ KG

Europe

PET Film (12 Mic.) PTA MEG VA Over PTA & MEG

PET Film Industry Outlook for future

slide-15
SLIDE 15

Conclusion

  • Industry continues to remain lucrative with 6 – 7% growth rate for the

last 25 years and a similar growth rate for foreseeable future

  • Continued focus on cost reduction to effect healthy margins
  • Increasing value add sales and continued downstream investments to

support bottom line

  • Margins likely to hold steady or see improvements in near term given

the developing demand supply scenario

  • Indonesia investment will help improve competitiveness and support

topline growth

Conclusion

slide-16
SLIDE 16

Disclaimer

  • This presentation may contain forward-looking statements which are based on

the Company’s current expectations and estimates about the industry, the management’s beliefs and various other assumptions. These forward-looking statements are subject to various risks, uncertainties and other factors, some of which maybe beyond our control. No assurance is given with regards to future events or the actual results, which may differ materially from those projected herein.

  • This presentation does not constitute an offer to sell or a solicitation of an offer

to buy or sell PTL stock and in no event shall the Company be held responsible or liable for any damages or lost opportunities resulting from use of this material