[PPT] - Sri Tr Tran ang Agro-Indu Industry stry Public lic Co Comp PowerPoint Presentation

SLIDE 1

Th The e 2019 2019 Annua ual l Ge Gener eral al Mee eeti ting g of Shar areho eholde lders rs 30 April l 2019 Sri Tr Tran ang Agro-Indu Industry stry Public lic Co Comp mpan any Li Limi mite ted

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SLIDE 2

The Voting Card’s Example

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SLIDE 3

The Voting Card’s Example

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Votin ting g Pr Procedu dures es except pt age gend nda rega gardin ding g the he election tion of f direc ectors tors

All shareho reholders ders / t their ir proxies xies di disapp ppro rove ve or abstai tain n in in such h agend nda Mark k their ir votes es in in the voting ing cards, ds, sig ign and d rais ise e hand d up Offic icers ers collec ect t your r voting ing cards ds Proce cessing ssing. Inform

rm the result

ult to the Sharehol eholde ders rs Meeting ing Sig ign the approve rove voting ing cards, ds, offi fice cers rs wil ill collect ct when the meeting ing fin inish ish

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Votin ting g Pr Procedu dures es fo for the he age gend nda a rega gardin ding g the he election tion of f direc ecto tors

All sharehol reholders ders / th their ir proxies xies Mark k their ir votes es in in the voting ing cards ds and d sig ign Of Offic icers ers collec ect t your r voting ing cards ds Proce cessing ssing Inform

rm the result

ult to the Sharehol eholde ders rs Meeting ing

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Agen enda da ite tems ms

1. To consider and certify the Minutes of the 2018 Annual General

Meeting of Shareholders held on 26 April 2018

2. To acknowledge the performance results of the Board of

Directors of the Company for the year 2018 and to consider and approve the audited financial statements of the Company for the year ended 31 December 2018

3. To consider and approve the dividend payment of the Company

for the year 2018 and acknowledge the interim dividend payment

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SLIDE 7

Agen enda da ite tems ms

4. To consider and approve the election of directors to replace

the directors who retire by rotation

5. To consider and approve the determination of remuneration of

directors for the year 2019

6. To consider and approve the appointment of the auditor and

determination of auditing fee for the year 2019

7. Other matters (if any)

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SLIDE 8

Agen enda da 1

To consider and certify the Minutes of the 2018 Annual General Meeting of Shareholders held on 26 April 2018

A copy of the Minutes of the Extraordinary General Meeting of Shareholders No. 2/2017 is enclosed with Invitation to the 2018 Annual General Meeting of Shareholders and disseminated on the Company’s website www.sritranggroup.com

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Agen enda da 2

To acknowledge the performance results of the Board of Directors of the Company for the year 2018 and to consider and approve the audited financial statements of the Company for the year ended 31 December 2018

The Company regularly discloses MD&A through the SET system after the release of financial statements.

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1,204,3 4,342 42 1,119,9 9,966 66 1,494,09 4,094 4 1,323,87 3,873 3 1,336,64 6,649 9 75,530 30 61,292 92 77,266 66 89,387 87 73,493 93 20,000 40,000 60,000 80,000 100,00 ,000

500,000 500,000 1,000,000 1,000,000 1,500,000 1,500,000 2,000,000 2,000,000 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018

NR R Sales Vo s Volum lume (LHS (LHS) Re Reve venue (RH (RHS)

Agen enda da 2

(THB milli lion) n) (tons) ns)

18%

+1%

Rev evenue ue and d NR Sales les Volume ume

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TSR 68% 68%

RSS 9% 9% LTX 6% 6% Gloves ves 16% 16% Others rs 1% 1%

2018 018 Sales les Rev evenue ue by Product

duct

2018 018 Sales les Rev evenue ue Port rtio ion by Product

duct (THB million)

Agen enda da 2

73 73,49 493

THB milli llion

n

63,1 ,183 83 50,0 ,008 08

9,65 653 3 6,81 816 6

6,286 4,537 9,859 11,786

407 407 345

25 2560 60 25 2561 61

Ot Others rs Glov loves es LT LTX RSS TSR

83,387 387 73,493 493

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Agen enda da 2

Domestic stic 17% 17%

China na 49% 49%

Asia (Excul xculdi ding ng China&T na&Tha haila land) nd) 25% 25%

America rica 4% 4% Europ

pe

5% 5%

Others 0.1%

201 018 NR Sale les s Volume b ume by y Region

n

Sale les s Volume ume by Region

n (Tons
ns)

1,323,8 23,873 73

Technically Specified Rubber [TSR] Ribbed Smoked Sheet [RSS] Concentrated Latex [LTX]

1.34 1.34

mil. tons

ns

1,336,6 36,649 49

257, 7,25 257 7 228, 8,38 383 3 602, 2,12 127 7 647, 7,45 455 5 329, 9,48 488 8 339, 9,09 097 7 76,1 ,132 32 55,0 ,022 22 56,7 ,731 31 64,8 ,861 61

2,138 1,832

20 2017 17 20 2018 18 Other her Eur urope USA SA Asi Asia ( (excep xcept Chi China) Chi China Do Domest mestic 12

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Agen enda da 2

Sale les s Volume ume of Latex tex Glove ves s & Nitrile le Glove ves s Porti rtion

n

Nitril ile Powder-Fr Free Examina inatio ion n Glove ve Latex Powder der-Fre ree Examina inatio ion n Glove Latex Powder der Examina inatio ion n Glove

Domestic stic 11 11% China na 8% Asia (Excul xculdi ding ng China&T na&Tha haila land) nd) 20 20% America rica 27% 27% Europe pe 24 24%

Others rs 10 10%

201 018 Gloves ves Sales ales Volume ume by Region

n

16,937 16,937

mil.

l. piec

eces es

Latex x Gloves 61 61%

Nitril rile Gloves ves 39 39%

Sale les s Volume ume of OEM & Own-Bra Brand nd Port rtion

n

OEM 85% 85%

Own-Bra rand nd 15 15%

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3,776 7,108 4.2% 9.7%

0% 0% 2% 2% 4% 4% 6% 6% 8% 8% 10% 10% 12% 12% 2,000 2,000 4,000 4,000 6,000 6,000 8,000 8,000 2017 2017 2018 2018 Gro Gross ss Pro rofit ( fit (THB m mil illi lion) n) Gro Gross ss Pro rofit Ma fit Margin ( rgin (%) %)

(THB million) n) (%)

Gros

ss Prof
fit

it and Gros ross Prof

fit

it Margin rgin

Gross s profit it and gross ss profit it margin n in 2018 8 decreased d due to:

a change in strategy with regard to NR

products and effective raw material cost management

an improve in profitability of Gloves

business after the demerger

Agen enda da 2

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Ke Key Factors ctors Affecting ecting the Company mpany’s Ope perat ration

n

1. . Volatility latility of Natural tural Rubbe bber r Price ice

2. Forei

reign gn Exchange change Rate ate 3. . Financial nancial Cost

sts
4. Government
vernment Po

Polic icy

Agen enda da 2

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100 150 200 250 300

Jan-1

17

Fe Feb-1 b-17 Ma Mar-17 Apr-17 pr-17 Ma May-17 y-17 Jun- un-17 Jul-17 ul-17 Aug-1 ug-17 Sep- p-17 Oct-1

17

Nov-1 Nov-17 De Dec-17 Jan-1

18

Fe Feb-1 b-18 Ma Mar-18 Apr-18 pr-18 Ma May-18 y-18 Jun- un-18 Jul-18 ul-18 Aug-1 ug-18 Sep- p-18 Oct-1

18

Nov-1 Nov-18 De Dec-18

RSS TSR

In 2018, the Natural Rubber (NR) industry still had to contend with an
versupply stemmed from the planting of rubber trees during a period of

high NR prices from 2010 to 2012 and the rubber trees planted during this period started to provide yield from 2017 onwards.

Factor tor 1 1 : : Volatility tility of Na Natural ral Rubber bber Price ce

SICO COM M Price (US S cent : Kg.) .)

2018 Avg. RSS = 155 TSR = 137 137 ▼ 17 17% YoY

According to IRSG report, the global NR demand in 2018 was 13.87 tons, up

4.9% from 2017. Meanwhile, the global NR supply went up 2.5% to 13.90 tons in 2018. The supply growth mainly came from Thailand, PRC, Vietnam, and the CAMAL* countries.

The average price of TSR20 on SICOM for 2018 was 136.5 cent/kg, down

17.1% from 2017.

Agen enda da 2

2017 Avg. RSS = 200 TSR = 165 165

Note: *the CAMAL countries include Cambodia, Myanmar and Lao PDR.

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30 30 31 31 32 32 33 33 34 34 35 35 36 36 Ja Jan-1

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Feb-17 Mar Mar-1

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Apr- r-17 May May-1

17

Jun Jun-1

17

Ju Jul- l-17 Aug-1

17

Sep ep-1

17

Oct-1 Oct-17 Nov Nov-1

17

Dec ec-1

17

Ja Jan-1

18

Feb-18 Mar Mar-1

18

Apr- r-18 May May-1

18

Jun Jun-1

18

Ju Jul- l-18 Aug-1

18

Sep ep-1

18

Oct-1 Oct-18 Nov Nov-1

18

Dec ec-1

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Factor tor 2 2 : : Foreig eign n Exc xchan ange ge Rate te

(THB millio lion) 2017 2017 2018 2018

Realised gain/(loss) on exchange rate 388 (152) Unrealised gain/(loss) on exchange rate 134 (100) Gain/(lo loss ss)on exchan hange rate te 522 522 (252 52)

THB/USD SD Move vement ment

2017 Avg. THB/US /USD : 33.8 2018 Avg. THB/US /USD : 32.1

With the stability of Thailand’s economy together with capital flows and the

looming of interest rate increase by the US Federal Reserve and uncertainty of geopolitical situation, these caused Thai Baht strengthen 4.8% against US dollar from an average in the previous year with high volatility from quarter to quarter.

In 2018, the Company recorded Baht 252.2 million in foreign exchange loss in 2018,

a reversal of Baht 522.1 million in gains on foreign exchange in 2017.

Agen enda da 2

▼ 5% YoY

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0.00 1.00 2.00 3.00 4.00 5.0 5.00 6.00 7.00 Jan Fe Feb Ma Mar Apr pr Ma May Jun un Jul ul Aug ug Sep Oct Oct Nov Nov De Dec

Factor tor 3 3 : Financ ncial ial Costs ts

2560 2560 2561 2561 RP RP 1.5.% .% 1.52% 2% MLR 6.20% 0% 6.18% 8% STA 3.0% 3.15% 5% (ล้านบาท) 2560 2560 2561 2561

ต้นทุนทางการเงิน

(1,2 ,206 06) (915 15.7 .7) MLR* = = 6.18 18% STA = 3.15 15% % REPO = 1.52 52%

Note : * The average MLR of three large commercial banks namely Bangkok Bank, KasikornBank, and Siam Commercial Bank

Agen enda da 2

Factor ctor affe ffecte cted d dec decrea rease se in finan nancial cial costs: sts:

A decrease in short-term borrowings to support raw material purchasing of natural rubber and

the redemption of matured debenture in the amount of Baht 600 million in February 2018.

In 2018, interest expenses dropped from Baht 1,156.4 million last year to Baht 887.0 million, down 23.3%.

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Glove operations are also affected by policies such as the ban issued by the US Food and Drug Administration on the use of powdered medical gloves, which could lead to shifting in demand for latex gloves to powder-free latex gloves or nitrile gloves.

Factor tor 4 4 : Governm ernmen ent Policy cy

Agen enda da 2

2018 18:

The Thai Cabinet approved the inclusion of natural rubber as a restricted product under the Ministry of Commerce.

(Currently, there is no further measurement and trading of natural rubber remain the same.)

The governments of three major natural rubber-producing countries, Thailand, Indonesia, and Malaysia, imposed

sed a quota of 350,000 0,000 tons ns of rubber ber export port redu ductio ction n during ng Janu nuary ary to March rch 2018 18.

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(1,437 37) 2,064 4

1.6%

2.8%

2.0%
2.0%
1.0%
1.0%

0.0% 0.0% 1.0% 1.0% 2.0% 2.0% 3.0% 3.0% ( (1,500 1,500) ( (1,000 1,000) ( (500) 500)

500

500 1,000 1,000 1,500 1,500 2,000 2,000 2,500 2,500 2560 2560 2561 2561

(THB million) n)

Net t profit

fit increa

rease sed d main inly ly resu esult lted ed from:

m:
The selective selling strategy
Effective raw material cost management in our

NR operations

Fully recognized revenue from our glove
perations in 2018, in comparison with 2017

when the demerger was completed

Drop in administrative expenses
Drop in financial cost (net)

Net t Pr Prof

fit

it and Net t Pr Prof

fit

it Margin rgin

(%)

Agen enda da 2

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2018 018 Total tal Assets sets

Finan ancial cial Structure ucture – Total al Asset ets

Conso nsoli lida date ted (THB milli llion) 31 31 Dec 17 31 31 Dec 18 % Chg.

Cash and cash equivalent

2,242 4,197

87.2% Trade accounts receivable and

ther receivable, net

8,023 6,668

16.9%

Inventories, net

17,123 12,311

28.1%

Other current assets

962 663

31.1%

Total curre rent assets

28,34 ,349 9 23,8 ,839 39

15.

5.9% Investments in associates and JVs

730 801

9.8% Property, plant and equipment, net

24,190 24,456

1.1% Rubber and Palm plantations, net

1,832 2,052

12.0% Goodwill

2,954 2954

0.0% Other non-current assets

1,652 1,645

0.4%

Total non

n-curre

rrent nt assets

31,35 ,358 8 31,9 ,909 09

1.8% 8% Total Assets

59,70 ,708 8 55,7 ,748 48

6.6

.6%

Trade de accoun unts s receiva vable ble and 7%

ther

her receiva ivable ble, , net 22 22% Inve vent ntori ries, s, net 44 44%

Rubbe bber r and Palm plant ntation

ns,

s, net 4% 4% Good

dwill

ll 5% Others rs 10 10% Cash h and d cash equivale valent nt 8%

Agen enda da 2

55 55,74 748

THB B millio ion

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Short rt-te term rm loans ns 36 36%

Long-term rm loans ns 13% 13% Trade AP and

ther

r payabl bles 4% Debentur ntures 5% Issue ued d and paid-up up share re capital 3% Premi mium um on share re capital 18 18% Retaine ned d earni ning ng 12 12% Others rs 9%

2018 018 Liabilit bilities ies & Shareholde reholders rs’ Equity ity

Financial ancial Structure ucture – Total Liabilities and Shareholders’ Equity ty

Note : *Including the current portion

Conso nsoli lida date ted (THB milli llion) 31 31 Dec 17 31 31 Dec 18 % Chg.

Short-term loans 21,786 15,616

28.

8.3% Long-term loans* 7,614 8,604 13.0 .0% Trade AP and other payables 2,615 2,674 2.3% 3% Debentures* 2,865 2,265

20.

0.9% Derivative financial instruments 231 171

25.

5.9% Other liabilities 1,319 1,317

0.2

.2% Total Liabilities 36,4 ,431 31 30,6 ,648 48

15.

5.9% Issued and paid-up share capital 1,536 1,536 0.0% 0% Premium on share capital 10,852 10,852 0.0% % Retained earning 7,293 9,173 25.8 .8% Other shareholders’ equity 3,596 3,539

1.6

.6% Total Shareholders’ Equity 23,2 ,277 77 25,1 ,100 00 7.8% 8%

Agen enda da 2

55 55,74 748

THB B millio ion

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Financial ancial Rati tios

s

0.97 7 1.10 1.15 5

25 2559 59 25 2560 60 25 2561 61

1.81 1 1.57 7 1.22

25 2559 59 25 2560 60 25 2561 61

105.20 .20 101.95 .95 100.38 .38

25 2559 59 25 2560 60 25 2561 61

4.58 4.12 2.80

25 2559 59 25 2560 60 25 2561 61

Curr rrent nt Ratio atio (times mes) Debt bt to Equit ity y Ratio atio (times mes) Cas ash h Cycle ycle (day ays) Fixe xed d Asset set Turnover nover (time imes)

Agen enda da 2

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Financial ancial Rati tios

s

15.56 56 15.15 15 16.34 34

25 2559 59 25 2560 60 25 2561 61

0.57

57

1.05

05 1.34

25 2559 59 25 2560 60 25 2561 61

Book Value per Share (Baht) Earning per Share (Baht)

N/A

46.52%

52%

25 2559 59 25 2560 60 25 2561 61

Dividend Payout Ratio (%)

Agen enda da 2

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“Sustainable Growth”

CG CG score : Very Good Selected d in SET THSI index x and received d SET Sust staina inabil ility ity Award d categor

ry

y rising ing star CAC Certific ficatio ion PM PM’s s Best Export Award Custome

mer

r satisfa isfactio ion grade A and B 99 99%

SDGs s Goal al

Sustai tainabi nability lity Perfo forma rmanc nce

Agen enda da 2

Econom nomic ic and Corpor porate ate Governan ernance ce

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GREEN PROCU CUREMENT EMENT and GREEN PRODUCT

“Create eate more re happiness ppiness for r intern ernal l and d extern ternal al society iety” SDGs s Goal al

The Outst stand nding ing Organi nizatio ion n for the Promotion

motion of the Disabled

led Person son Support rt the purchasing sing of local products s & servic ices 40 40 companie ies STA’s s partners s signed ned to show w the intent ntio ion n againt corruptio ion. n.

Sustai tainabi nability lity Perfo forma rmanc nce

Agen enda da 2

Social al

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SLIDE 27

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Sustai tainabi nability lity Perfo forma rmanc nce

Agen enda da 2

Social al

SLIDE 28

GREEN PROCESS CESS

“Focus us on the he eff ffective ive envi nviron ronme menta tal l man anageme ement syste tem” SDGs s Goal al

Bun-Took Took-Yang ng Tid-Ra Rang ng Srang-Roi Roi-Yim im 2nd

nd year

Anaero robic ic method for waste water treatme ment nt at Mukdahanfactory The odor r treatment nt project Bio-fil filter r at at Loei factory ry

Sustai tainabi nability lity Perfo forma rmanc nce

Agen enda da 2

Environme ironment nt

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Energy rgy

Napier grass, aged 6 months or more, is used as an alternative energy
The ratio of using renewable energy at 5-10% per month

Environmen ironment

.

Comm mmunity unity

Providing knowledge for planting Napier grass to be an animal food.
Villagers gain revenue about 1,800 baht per day .

The height of Napier to wind bunker Use sludge and waste water

Sustai tainabi nability lity Perfo forma rmanc nce

Agen enda da 2

Social al and Environme ironmental ntal Innovatio

vation

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Agen enda da 3

To consider and approve the dividend payment of the Company for the year 2018 and acknowledge the interim dividend payment Objective and Reasons as shown in invitation agenda item 3

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SLIDE 31

Agen enda da 3

Year r 20 2018 18 Year r 20 2017 17 Year r 20 2016 16 Net profit (million Baht) 2,146 (1,418) (758) Earnings per share (Baht) 1.34 (1.05) (0.59) Dividend per share (Baht) Interim dividend (Baht/share) Year-End dividend (Baht/share) *0.65 **0.25 0.40

0.40
0.40

Number of shares (shares) 1,536 1,536 1,280 Total dividend payment (million Baht) 998

512

Payout ratio (%) 46.52

N/A

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Agen enda da 3

In addition, the shareholders should acknowledge the interim dividend payment in 2018 as follows: The Company paid an interim dividend from the financial results during the period from 1 January 2018 to 30 June 2018 in accordance with the resolution of the Meeting of the Board of Directors No.8/2018, held on 30 August 2018, which resolved to approve the interim dividend payment at Baht 0.25 per share, totaling Baht 384 million which was paid from the portion of net profit after deduction of net loss carried forward for five years up to the present accounting period whereby individual shareholders shall not be entitled to a tax credit. The interim dividend was paid on 28 September 2018.

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Agen enda da 3

Based on various conditions and the current cash flow ability, the Board of Directors recommends the shareholders to approve the dividend payment from the performance results of the Company to the shareholders of Baht 0.65 per share, totaling Baht 998.40 million representing 46.52% of the net profit of the consolidated financial statements, which is in line with the current dividend policy of the Company. The Company already paid an interim dividend at the rate of Baht 0.25 per share, totaling Baht 384 million on 28 September 2018. Therefore, the remaining dividend to be paid is Baht 0.40 per share, totaling Baht 614.40 million which will be paid from the portion of net profit after deduction of net loss carried forward for five years up to the present accounting period whereby individual shareholders shall not be entitled to a tax credit.

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SLIDE 34

Agen enda da 3

Pr Proc

cess

ess Date te The Record Date for determining the shareholders entitled to receive a dividend (TSD) 10 May 2019 The Record Date for determining the shareholders entitled to receive a dividend (CDP) 10 May 2019 The Dividend Payment Date 29 May 2019

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Agen enda da 4

To consider and approve the election of directors to replace the directors who retire by rotation

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SLIDE 36

Agen enda da 4

The four directors who shall vacate office are:

1. Ms. Anusra Chittmittrapap

Director / Independent Director

2. Mr. Chalermpop Khanjan

Director

3. Mr. Kriang Yanyongdilok

Director / Independent Director

4. Mr. Chaiyos Sincharoenkul

Director

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Agen enda da 4

4.1 To consider and approve the election of Ms. Anusra Chittmittrapap to be directors of the Company for another term. Proposed to be appointed as a Director / Independent Director of the Company Profile

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SLIDE 38

Agen enda da 4

4.2 To consider and approve the election of Mr. Chalermpop Khanjan to be directors of the Company for another term. Proposed to be appointed as a Director

f the Company

Profile

38

SLIDE 39

Agen enda da 4

4.3 To consider and approve the election of Mr. Kriang Yanyongdilok to be directors of the Company for another term. Proposed to be appointed as a Director / Independent Director of the Company Profile

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SLIDE 40

Agen enda da 4

4.4 To consider and approve the election of Mr. Chaiyos Sincharoenkul to be directors of the Company for another term. Proposed to be appointed as a Director

f the Company

Profile

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SLIDE 41

Agen enda da 5

To consider and approve the determination of remuneration

f directors for the year 2019

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SLIDE 42

Agen enda da 5

The directors’ remuneration for the year 2019, in a total of not exceeding Baht 8,028,000 which equal to last year with the details as follows;

Annual al Re Remune nerati ration

n of Bo

Board rd of Di Directors tors

Chairman of the Board

Baht 804,000 / person/ annum

Directors of the Company

Baht 600,000 / person/ annum Annual al Re Remune nerati ration

n of Audi

dit t Commit ittee tee

Chairman of the Audit Committee

Baht 936,000 / person/ annum

Audit Committee member

Baht 744,000 / person/ annum

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SLIDE 43

Agen enda da 5

Re Remune neration ration of Di Directors tors (Ba Baht) t) Year 2019 019 2018 018 2017 017 Board of Directors 5,604,000 5,604,000 5,569,000 Audit Committee 2,424,000 2,424,000 2,424,000 Total 8,028,000 8,028,000 7,993,000

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SLIDE 44

Agen enda da 5

44

Remunera neration tion of Directo tors rs (Baht/ ht/year) r) Name Posi siti tion 2019 19 2018 18 2017 17

1. Mr. Viyavood Sincharoenkul

Chairman 804,000.- 804,000.- 804,000.-

2. Mr. Prakob Visitkitjakarn

Vice Chairman, Independent Director and Chairman of Audit Committee 936,000.- 936,000.- 936,000.-

3. Mr. Chaiyos Sincharoenkul