Polyplex (Thailand) PLC (PTL) Financial Results and Summary FY - - PowerPoint PPT Presentation

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Polyplex (Thailand) PLC (PTL) Financial Results and Summary FY - - PowerPoint PPT Presentation

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Polyplex (Thailand) PLC (PTL) Financial Results and Summary FY 2018-2019 30 th May, 2019 A Brief Introduction on Polyplex the Group* Varied Product Mix 1600 2000+ Upstream - PET Resin Customers in Employees from 30+ Years of Film - Thin

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SLIDE 1

Polyplex (Thailand) PLC (PTL)

Financial Results and Summary FY 2018-2019

30th May, 2019

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SLIDE 2

A Brief Introduction on Polyplex the Group*

Focus on Sustainability Varied Product Mix

Upstream - PET Resin Film - Thin PET, Thick PET, BOPP , Blown, CPP Downstream - Metallizing, Silicone Coating, Offline Coating, Extrusion Coating, Holography & Transfer 
 Metallized Paper

1600 Customers in 70 Countries

across Europe, Americas, the Middle East, Asia and the Indian Subcontinent

2000+ Employees from varied nationalities working in harmony 30+ Years of Experience in the industry

*Includes India (PCL - Parent Company)

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SLIDE 3

6 Manufacturing

Facilities In 5 Countries

with Multiple Warehouses & Liaison Offices Worldwide

Parent Company Manufacturing Locations Upcoming Manufacturing Location Warehouse Liaison/Trading/Representative Offices

A Global Presence

USA MEXICO INDIA CHINA JAPAN KOREA INDONESIA THAILAND SINGAPORE MALAYSIA TURKEY NETHERLANDS

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SLIDE 4

Where we are in the Value Chain

NATURAL RESOURCES BASIC PETROCHEMICALS RAW MATERIALS PLASTIC & INTERMEDIATE PRODUCTS

Ethylene MEG Paraxylene PTA Polypropylene

Film Grade PET Resin PP Resin

Packaging & Industrial Customers

Base Films

Coating Metallizing Holography

P A C K A G I N G I N D U S T R I A L

Sachet Pack Susceptor Film Stand Up Pouch Can Lamination Easy Peeling Lids Aroma Pack Spouted Pack Ready 2 Eat Pack PV Backsheets Electrical Grade Electronic Grade Window Films Optical Grade Liner Grade Construction Graphics

Oil Natural Gas

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SLIDE 5

PTL Capacities*

73,000 57,600 75,850 80,500 8,845 10,000 28,800 44,000 31,000 58,000 42,000

9,500 17,700 21,700

140 985

PET Thin

BASE FILM

(MT) PET Thick CPP Blown Film

Upstream: Downstream:

Metallizer (MT) Coating (Mn Sqm) Holographic (MT)

Thailand Turkey Indonesia USA

PET Resin (MT)

6,000 480

* Including all upcoming capacities

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SLIDE 6

Financial Summary

3,663 (10% YoY) 14,746 (16% YoY) 725 (21% YoY) 2,792 (19% YoY) 20% 19% 0.56 2.08 (31% YoY) Credit Rating at A- (Tha) with “Stable Outlook” from Fitch Thailand

Revenue (Mn THB) EBITDA* (Mn THB) EBITDA* Margin EPS* (THB) Other Q4 2018-19 FY 2018-19

* EBITDA/EPS Normalized for FX Gains/Losses

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SLIDE 7

FY 2018-19 YoY Financial Highlights

Net Profit* 1,874 M THB D/E** 0.15 ROCE* 15% ROE* 17%

  • 9%

YoY 330 bps 330 bps 31% YoY

*Normalized for FX Gains/Losses **D/E Net of Cash including only long term and short term debt

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SLIDE 8

Production

2% 6% 12% 80% 16% 17% 3% 63%

BASE FILMS VALUE ADDED FILMS

Production Qty YoY % Change

5% 12%

  • 4%

57% 8% 42% 10% 6%

FY 18-19

PET Thin PET Thick CPP Blown Film Metallized Offline Coater Saralam Saracote

Product Mix

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SLIDE 9

High VA Products & Applications

84% 16% 76% 24% 72% 28% 72% 28% 68% 32% 68% 32%

HVAS All Other Film

Sales Volume EBITDA*

FY 16-17 FY 17-18 FY 18-19

*Normalized for FX Gains/Losses

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SLIDE 10

High VA Products and Applications

HVAS Incremental Margin as a % of EBITDA EBITDA* (THB Million) 750 1,500 2,250 3,000 0% 20% 40% 60% 80%

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

*Normalized for FX Gains/Losses 225 450 675 900

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Incremental Margin From HVAS (THB Million)

  • HVAS Continue To Have Increasing Impact Over Time
  • HVAS Help Protect Against The Cyclicality Of The Industry
  • Continued Investment In Growing HVAS In Terms Of Absolute Numbers 


(Indonesian Investment Will Impact % Of HVAS Margin)

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SLIDE 11

EBITDA Trend

EBITDA* (THB Million) As a % of Revenue

569 638 706 775 Q4 '17-18 Q3 '18-19 Q4 '18-19

*Normalized for FX Gains/Losses

  • Highest EBITDA Margin in the last 5 years
  • Partly due to the improved margins on Standard Film
  • Increased HVAS Proportions Have Also Contributed To EBITDA Growth

19%. 0% 10% 20% 30% 40% 1,250 2,500 3,750 5,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

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SLIDE 12

EPS Trend

EPS*

*Normalized for FX Gains/Losses

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 1.07 1.14 1.22 4.82 1.85 0.28

  • 0.12
  • 0.11

0.37 1.18 1.59 2.08 0.15 0.30 0.45 0.60 Q4 '17-18 Q3 '18-19 Q4 '18-19

  • Following EBITDA Growth - EPS is Also The Highest In The Last 10 Years (Excepting

’10-11) Despite The Dilution Due To Rights Issue In 2016

31%

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SLIDE 13

ROCE & D/E

ROCE* Leverage Ratio (D/E)**

*Annualized and Normalized for FX Gains/Losses 0% 4% 8% 12% 16%

2014-15 2015-16 2016-17 2017-18 2018-19 2.03% 7.35% 9.14% 12.3% 15.14%

0.2 0.4 0.6 0.8

2014-15 2015-16 2016-17 2017-18 2018-19 0.78 0.59 0.26 0.17 0.15

  • Financially Strong Balance Sheet With Low Leverage Ratio
  • D/E Ratio Expected To Remain Stable Despite Indonesia Debt

**D/E Net of Cash including only long term and short term debt

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SLIDE 14

Regional Overview

3%

32% 36% 29% 2018-19 Revenue Split

ASIA EUROPE USA

Asia

Fastest Growing Region Industry Dynamics Improving Chinese Margins and therefore Industry-wide margins also improving PTL poised to capture market growth with upcoming Indonesian capacity

Europe

Mature and Open Market (No anti-dumping duties) PTL’s strong historical presence, superior product mix and customer intimacy to help sustain performance

  • N. America

Large Market with significant imports PTL’s on-shore presence being leveraged to distribute material from low cost group locations as well as specialty products

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SLIDE 15

Indonesia Update

✴Film Plant and Metallizer on schedule - slated to start Mid August ‘19 ✴Chips Plant to start End Oct ‘19

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SLIDE 16
  • Approx. 0.7 Million Tons Of Capacity To Be Added In Thin PET By 2022 Globally
  • Approx. 0.2 Million Tons Of Capacity Expected In Thick PET By 2022 (China)
  • Margin Disruption Expected Temporarily While Market Absorbs Added Supply
  • Most Industry Players = Cautious And Reasoned Growth
  • Demand Expected To Grow At A Global

Rate Of 5-7%

  • In Asia 7-9%
  • Europe 3-4%
  • USA 4-5%

SUPPLY DEMAND RAW MATERIALS & VA TRENDS

  • China’s Q3 2018-19 VA Was Due To Sudden Dip In RM Prices Which Normalized To The Trend In Q4
  • RM Volatility Passed Through To Customers With A Lag Of 2-3 Months
  • PTL Commands A Premium Over Chinese VA

0.18 0.36 0.54 0.72 0.9 1.08 1.26 1.44 1.62 1.8

Q 3 F Y 1 6

  • 1

7 Q 4 F Y 1 6

  • 1

7 Q 1 F Y 1 7

  • 1

8 Q 2 F Y 1 7

  • 1

8 Q 3 F Y 1 7

  • 1

8 Q 4 F Y 1 7

  • 1

8 Q 1 F Y 1 8

  • 1

9 Q 2 F Y 1 8

  • 1

9 Q 3 F Y 1 8

  • 1

9 Q 4 F Y 1 8

  • 1

9 0.28 0.38 0.29 0.25 0.36 0.49 0.56 0.54 0.64 0.50 0.85 0.95 0.85 0.97 1.02 1.09 1.06 1.20 1.06 1.01 1.13 1.33 1.14 1.22 1.38 1.58 1.62 1.74 1.70 1.51

12µ PET Resin China VA

2000 4000 6000 8000 0% 22.5% 45% 67.5% 90% 2011 2016 2017 2018 2019 2020 2021

CUF Global Capacity Global Demand

83% 81% 79% 76% 73% 70% 85% 85% 70% 73% 76% 79% 81% 83%

PTL

BOPET Film CUF Trend (Thin + Thick) KMTPA

Location Line Size (meters) Line Capacity in KT Likely Start Up Date India 10.6 44 Q2 2019 Indonesia 10.6 44 Q3 2019 Indonesia 8.7 30 Q4 2019 Hungary 10.6 44 Q1 2020 India 8.7 30 Q1 2020 Pakistan 8.7 30 Q1 2020 Thailand 10.6 44 Q3 2020 Poland 10.6 44 Q2 2020 Nigeria 10.6 44 Q3 2020 Russia 8.7 30 Q4 2020 Russia 8.7 30 Q2 2021 India 10.6 44 Q3 2021 China 8.7 120 (4 lines) Q4 2021 China 8.7 120 (4 lines) Q4 2022 China 5.8 100 (4 lines) Q4 2021 China 5.8 100 (4 lines) Q4 2022 TOTAL 898

Industry Outlook

*Internal Analysis and Industry Sources

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SLIDE 17

Plastics, Perception, Problem…?

Other Plastic Use 65% Packaging Consumption 35% 79% 21%

80% 20% ~400 Million Tons Of Plastic Consumed Worldwide

~6 Million Tons Of Which Is PET Film

Other Packaging Flexible Packaging Other Film PET Film constitutes less than 1.5% of the World Wide plastic use. Single Use Plastics under more scrutiny

“Plastic isn't the problem. It’s what we do with it. And that means the

  • nus is on us to be far smarter in

how we use this miracle material”

Erik Solheim

Former head of the UN Environment

*Industry Sources

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SLIDE 18

PTL & Sustainability

Re-doubled our efforts in R&D with a renewed focus on sustainability .

  • Are Creating Sustainable Solutions For Flexible Packaging
  • Are Working On Recycling Hard To Recycle Materials
  • Develop And Promote rPET Films
  • Are Working With Partners To Recycle Post Consumer Film

Waste

We Have Invested in Recycling & Sustainability Initiatives That:

  • Renewable PET Film – Bio source
  • Post Consumer Recyclable PET

Film

  • Eco Friendly PET Film
  • Oxo Biodegradable
  • Biodegradable
  • Foil Replacement

Our Product Range Now Includes:

  • PVC Replacement
  • PVDC Replacement
  • Transfer Metallization

(Plastic free cartons)

  • HP Indigo Printable
  • Source Reduction
  • Monomeric -Heat sealable

Multi Substrate Structure

High Performance High Barriers High Speed Low Recyclability Main Issue in PET Films

Single Substrate Structure

Low Performance Low Barriers Low Speed High Recyclability Current Alternative with Olefinic Films

Single Substrate Structure

High Performance High Barriers High Speed Better Recyclability Our Target: To Develop Alternatives with PET Films

High Post Consumer Recyclate and high rPET content in film

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SLIDE 19

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