S.Kijchai Enterprise Public Company Limited (“SKN”)
Opportunity Day Q1 2018 15 June 2018
S.Kijchai Enterprise Public Company Limited (SKN) Opportunity Day Q1 - - PowerPoint PPT Presentation
S.Kijchai Enterprise Public Company Limited (SKN) Opportunity Day Q1 2018 15 June 2018 Strictly Private & Confidential Disclaimer The information (Confidential Information) contained in this presentation is strictly confidential
Opportunity Day Q1 2018 15 June 2018
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Strictly Private & Confidential
The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by S.Kijchai Enterprise Public Company Limited (the “Company”) to you solely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated
the prior written consent of the Company. 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. Although care has been taken to ensure that the Confidential Information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, has not been independently verified and it may not contain all material information concerning the Company. None of the Company, or any of their respective members, directors, officers, employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to or recommendation to buy or subscribe for any securities, 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 in Thailand or any other jurisdiction. Any such purchase should be made solely on the basis of the information contained in the announcements to the Stock Exchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness. This presentation contains projections and 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 and these may change over time and in many cases are outside the control of the Company. You are cautioned not to place undue reliance on these forward looking 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 forecasted and projected or in the forward‐looking statements.
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S.Kijchai MDF was awarded the ISO 9001 and MUTU certification international S.Kijchai Parawood Co., Ltd. expanded its business into furniture manufacturing business and was renamed to S.Kijchai Co., Ltd. S.Kijchai Family started to operate its sawmill plant under S.Kijchai Parawood Co., Ltd. in Rayong Province S.Kijchai MDF started its commercial
its first MDF Board S.Kijchai MDF was awarded BOI certificate S.Kijchai Family and Sahakij Family jointly established S.Kijchai MDF Co., Ltd. (“S.Kijchai MDF”) as a MDF Board manufacturer
MDF
S.Kijchai Family started to operate its particle plant under S.Kijchai Wood Panel Co., Ltd.
Particle
S.Kijchai Family and Sahakij Family started to operate plywood plant under S.Plywood Co., Ltd.
Plywood
S.Kijchai MDF was awarded the ISO 14001 and was renamed to S.Kijchai Enterprise Plc. (SKN) and increased its registered capital from THB 600 mn to THB 800 mn for the IPO Sahakij Family started to operate its sawmill plant under Sahakij Klaeng Co., Ltd.
Sahakij Family
70%
30% S.Kijchai Family
S.Kijchai Family established S.Kijchai Capital Co., Ltd. (“SKC”) as a holding company and restructure shareholding structure in SKN
67% 30% 3%
Sahakij Family S.Kijchai Family SKC
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Products Overview Key Current Market1/ “With the capability to produce high quality MDF Board’s to meet customer’s expectation and requirement
cover most countries in the world”
North America Africa South East Asia East Asia South Asia Middle East
Note: 1/ Based on sales in 2016
Thickness
Width ≤ 8 Feet
Class of Formaldehyde:
Density ≈700-800 kg/m3
Key Features
nature wood
SKN offers custom-made MDF Boards made by rubber woods. SKN’s customers can specify their desired
size, thickness and class of formaldehyde.
Furniture Factory Constructors Laminate Factory
Major Customers
Wholesalers / Distributors
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BUILT‐IN CASING INTERIOR / WALL FURNITURE FLOOR DOOR
Easy to work into shapes and finishing High screw holding strength & Bendable Uniform density properties - resemble to nature wood Strong load bearing No grain or knots
MDF board is widely used for numerous interior functions and decoration purpose, such as furniture, door, casing and floor
Smooth surface for laminating
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Customers Production planning Orders placement & Confirmation Raw materials procurement Suppliers Raw materials preparation Woods intake
(First-in, First-out)
Woods de-barking Woods chipping Chip bin
Storage for the next 24 hours production
Production
Automated continuous process
Pre-heating Refiner Dryer Orders placement & procurement Forming Sawing Master Board Cooling Sanding & Cut-to-Side Continuous pressing Packing Delivery QC
Fiber bin Urea Formaldehyde
QC
(Appearance) (Qualification)
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Area
Products
Production Capacity
Major Machinery
Operation Hour
BOI Privilege
SKN Facilities located at Klaeng, Rayong
Map Ta Phut Port Laem Chabang Port
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Global upward trends for MDF board
CAGR2 of MDF board production volume (2000 – 2016) had
panels production volume with CAGR
1. Source: Food and Agriculture Organization of the United States 2. CAGR = Compounded annual growth rate
Thailand is among the fastest growing MDF exporters
Thailand ranks no. 4 for global MDF exports in 2016
CAGR1 sales growth of Thai exporters in terms of value (2000 – 2016) had outperformed almost all players in the world top 10
20 40 60 80 100 120 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Million M3
Total global wood-based panel production volume1
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51% 15% 49% 85%
Q1 2017 Q1 2018
INCOTERM
FOB CNF
Q1 2017, 54% Q1 2017, 46% Q1 2018, 46% Q1 2018, 54%
Agents SKN
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q1 2017 Q1 2018
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55% 35% 7% 3%
42% 32% 23% 3%
Middle East Asia Others Domestic
Strictly Private & Confidential
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(THB mn)
Performance of 1st quarter 2018 -2017
330 377 97 124 32 51 50 100 150 200 250 300 350 400 Q1/2017 Q1/2018 Revenue Gross Profit Margin Net Profit Margin
Q1/2017 Q1/2018 Gross Profit Margin
29.24% 32.89%
Net Profit Margin
9.69% 13.53%
Key Financial Ratios
Q1/2017 Q1/2018 Efficiency Ratios Return on Assets (%)
6.67 7.41
Return on Equity (%)
18.42 8.91
Q1/2017 Q1/2018 Financial Policy Ratios Debt to Equity (times)
1.83 0.26
Interest Coverage Ratio (times)
5.68 13.78
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Assets Breakdown Liabilities and Equity Breakdown
2,940 2,940 2,599 2,599
(THB mn) (THB mn)
50 60 194 141 2,242 1,596 59 46 48 30 347 726 Mar'2018 Dec'2017 Cash and Cash Equivalent Account Receivable Inventory PPE Advance payment for purchase machinery Other Assets 304 252 1226 1226 800 800 78 71 77 10 30 39 425 201 Mar'2018 Dec'2017 Account Payable Cash Advance Received from Customers Long‐term Loan Other Liabilities Paid‐up Capital Premium on share capital Retained Earnings
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2017 2018 Q1-2017 Q1-2018 million million million % million million million % Exporting Revenue USD 41.35 45.46 4.11 9.94 9.10 11.45 2.35 25.82 Baht 1,451.58 1,529.93 78.35 5.40 318.85 358.72 39.87 12.50 Change Change
35.5 35.11 34.68 35.22 34.94 34.14 33.22 32.78 31.37 29 30 31 32 33 34 35 36 Q1 Q2 Q3 Q4
Year 2016 Year 2017 Year 2018
1. Closely monitor to any situations that might affects the exchange rate 2. Use hedging tools such as Forward Contact
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25% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Installation Infrastructure
Progress
Finish Ongoing
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Main Purposes Key investment
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