STA 2Q18 SET Opportunity Day September 13, 2018 at The Stock - - PowerPoint PPT Presentation

SLIDE 1

SRI TRANG AGRO-INDUSTRY PUBLIC COMPANY LIMITED

SET Opportunity Day

STA

2Q18

September 13, 2018 at The Stock Exchange of Thailand

SET100 Index SETTHSI Index

SLIDE 2

CONTENTS

2. 2Q18 & 1H18 Performance 3. Natural Rubber Market Situation

2

1. STA Business Highlights 4. Looking Ahead

SLIDE 3

3

• 1. STA BUSINESS HIGHLIGHTS

SLIDE 4

Our Global Presence

10% share of global

NR consumption in FY17

353,773 tons

in sales volume in 2Q18

4

Gloves production facilities in Thailand

• f rubber plantations

NR processing plants procurement centers sales & distribution centers

45,000 rai 59 36 6

8%

share of global glove consumption in FY17

4

675,471 tons

in sales volume in 6M18 USA Vietnam Indonesia Singapore China Myanmar Thailand

31% share of Thailand’s

NR production in 6M18

SLIDE 5

Infrastructure 13%

Immature Area 81%

Tapping Area 6%

Approx. 45,000 rai 7,200 HA

Upstream Operations – Rubber Plantations

Lampang Sukothai Pichit Phitsanulok Petchaboon Chiang Rai Chiang Mai Sakon Nakhorn Utaradit Sakaeo Phrae Kalasin Phayao Nan Songkhla Surat Thani Krabi Chumporn Bungkan

Provinces in Thailand

19

5

Note: Information as of 30 June 2018

Area of Rubber Plantations Estimated Mature Plantations

500,000 1,000,000 1,500,000 2,000,000 2,500,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000

2018f 2019f 2020f 2021f 2022f 2023f 2024f 2025f 2026f 2027f

Production, tons (LHS) Tapping, trees (RHS)

SLIDE 6

Technically Specified Rubber Rubber Sheet

Midstream Operations – NR Processing

processing facilities

36

Note: *Total engineering capacity

Production Capacity (mil. tons)

1.1 1.5 1.8 2.1 2.2 2.2 1.3 1.9 2.4 2.6 2.9 2.9

10% 12% 15% 14% 16% 15% 10% 13% 15% 15% 16% 16%

0% 3% 6% 9% 12% 15% 18% 21% 0.4 0.8 1.2 1.6 2.0 2.4 2.8 3.2 2011 2015 2016 2017 2018E 2019E Optimum capacity (LHS) Engineering capacity (LHS) % optimum capacity to global NR production (RHS) % optimum capacity to global NR consumption (RHS)

6

24 processing facilities

Capacity*: 2.10 mil. tons/annum

TSR RSS LTX

5 processing facilities

Capacity*: 0.21 mil. tons/annum

7 processing facilities

Capacity*: 0.51 mil. tons/annum

[Information as at 30 June 2018]

Capacity*: 2.82 mil. tons/annum

Concentrated Latex

SLIDE 7

Downstream Operations – Finished Products

7

Product Range

Medical Application Lifestyle Application

• Powdered Latex Examination Glove
• Powder-Free Latex Examination Glove
• Powder-Free Nitrile Examination Glove
• Powdered Latex Disposable Glove
• Powder-Free Latex Disposable Glove
• Powder-Free Nitrile Disposable Glove

4 production facilities in Thailand,

the world’s largest source of concentrated latex

16.3 billion pieces of gloves

sold in 2017

8% market share

• f global glove consumption in 2017

TATTOO

FOOD

HAIR GROOMIN G

CLEANiING

ARTS & CRAFTS

PETS

30 years in operation, since 1989.

STGT takes meticulous attention to detail at every stage of production, from the careful selection of raw materials to R&D.

aiming to be among the world’s top three glove producers

15.7 billion pieces per annum

in production capacity as at 30 June 2018

STGT

SLIDE 8

Global Glove Consumption & STA’s Markets

8 STA Sales Volume by Market USA 28%

[+6%]

China 7%

[-1%]

Asia* 20%

[+1%]

Thailand 13%

[+2%]

Others 11%

[+2%]

Note: Accumulated data as at June 2018 compared with the end of December 2017. *Asia excluding Thailand and China

150 148 160 171 180 194 201 228 268 287 370

50 100 150 200 250 300 350 400

2010 2011 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f

Average growth at 8-10% per annum Gloves Consumption Per Capita [2017]

150 100 76 11 8 6

50 100 150 200 USA EU Japan Asia India China

Key Drivers

Increasing health and hygiene awareness Emerging new health threats Aging population Being indispensable & disposable products

Global Glove Demand [bn pcs.]

Latex

60%

Nitrile

40%

Product Mix EU 24%

[-5%]

Note: 6-month data as of 30 June 2018

Source: MARGMA Industry Brief 2018 on the Rubber Glove Industry

SLIDE 9

Capacity Expansion of Top Five Glove Producers

9

Global Market Share

[estimates for the year 2018]

Company Capacity in 2017 [bn. pcs.] Capacity expansion in 2018F [bn. pcs.] % Increase

Top Glove

51.9 8.6

16.6%

Hartalega

28.0 4.7

16.8%

Supermax

23.4 2.0

8.5%

Kossan

22.0 4.5

20.5%

Sri Trang Gloves

14.0 3.2

22.9%

Total 139.3 23.0

16.5%

Robust growth in demand

provides large producers with opportunities for expansion.

Note: Information as disclosed by each company

SLIDE 10

10

Our Gloves Marketing Communications

Encourage a wide variety of applications

Medical

Application

Lifestyle

Application

SLIDE 11

11

Our Gloves Marketing Activities

Food & Hotel Thailand 2018

Follow Your Heart Power Your Life, Thailand

Africa Health Exhibition, South Africa Hospitalar Fair, Brazil Medical Fair India 2018 9th International Rubber Glove Conference and Exhibition 2018, Malaysia Medical Fair Asia, Singapore

SLIDE 12

12

Our Gloves Distribution Channels

SLIDE 13

13

• 2. 2Q18 & 1H18 PERFORMANCE

SLIDE 14

*Adjusting for (reversal) allowance of inventory and realized gains /(losses) from hedging activities

Financial Highlights

14

(THB million) 2Q18 2Q17

%YoY

1Q18

%QoQ

6M18 6M17

%YoY

FY17 Revenue 19,755 22,875

• 14%

17,689

12%

37,444 51,394

• 27% 89,387

Sales volume (tons) 353,773 297,824

19%

321,698

10%

675,471 686,118

• 2%

1,323,873

• Avg. selling price (Baht per ton) 47,622

67,886

• 30% 46,772

2% 47,217 68,123

• 31%

59,765 Gross profit 2,261 (811)

N/A

1,510

50%

3,771 1,088

247%

3,776

• Adj. gross profit*

2,639 1,227

115%

2,196

20%

4,835 3,791

28%

4,322 EBITDA 1,581 (1,627)

N/A

1,811

• 13%

3,392 (895)

N/A

1,650 EBIT 1,000 (2,083)

N/A

1,264

• 21%

2,264 (1,689)

N/A (202)

Net profit 592 (2,080)

N/A

832

• 29%

1,424 (2,072)

N/A (1,437)

GP margin 11.4%

• 3.5%

1,490bps

8.5%

290bps

10.1% 2.1%

795bps

4.2%

• Adj. GP margin*

13.4% 5.4%

799bps

12.4%

108bps

12.9% 7.4%

547bps

4.8% Net profit margin 3.0%

• 9.1%

1,210bps

4.7%

• 171bps

3.8%

• 4.0%

783bps

• 1.6%

SLIDE 15

40 50 60 70 80 90 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 100 150 200 250 300 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 RSS TSR

• Avg. = 153.7 (+0.6%)

SICOM Price (US cent : Kg.)

• Avg. = 143.7 (-6.5%)
• Avg. = 152.8
• Avg. = 146.5 (+1.9%)

SICOM – Oil Prices - Butadiene

15

2Q17 3Q17 4Q17 1Q18 2Q18

• Avg. = 50.8
• Avg. = 67.3 (+9.1%)

Crude Oil Prices

(USD : Bbl.)

• Avg. = 52.1 (+2.6%)
• Avg. = 61.7 (+18.4%)
• Avg. = 75.0 (+11.5%)

Latex & Butadiene

Price (US cent : Kg.)

• Avg. = 140.0 (-4.4%)

50 100 150 200 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Butadiene-SEA* Butadiene-China LTX

• Avg. = 159.7 (+15.4%)

113.8 (-3.4%)

Note: *SEA stands for South East Asia

• Avg. = 124.6 (+11.9%)

123.6 (-10.4%)

• Avg. = 111.4 (-58.2%)

137.9 (-18.0%)

• Avg. = 110.9 (-11.0%)

111.0 (-10.2%)

• Avg. = 138.3 (+24.7%)

117.7 (+6.1%)

SLIDE 16

30 31 32 33 34 35 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

FOREX

16 USD/THB

Movement

Baht and the region

• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

USD/THB USD/MYR USD/IDR

+0.2% +5.0% +9.6%

• Avg. = 34.14
• Avg. = 33.22 (-2.7%)
• Avg. = 32.79 (-1.3%)
• Avg. = 31.39 (-4.3%)
• Avg. = 31.72 (+1.1%)

33.01 32.58

2Q17 3Q17 4Q17 1Q18 2Q18

SLIDE 17

Sales Revenue

17 Sales Revenue by Geography (THB million) Sales Revenue by Product (THB million)

73% 67% 72% 74% 70%

12% 15% 15% 8% 15%

11% 11% 9% 11% 10%

4% 7% 4% 6% 5%

22,875 17,689 19,755 51,394

2Q17 1Q18 2Q18 6M17 6M18

Others LTX RSS Gloves TSR

18% 17% 16% 17% 16% 48% 44% 42% 44% 42% 22% 25% 24% 25% 24%

7% 8% 8% 8% 8% 4% 5% 8% 5% 8%

1% 1% 2% 1% 2%

22,875 17,689 19,755 51,394 37,444

2Q17 1Q18 2Q18 6M17 6M18

Others Europe USA

Asia (Exculding China&Thailand)

China Domestic

• 13.6%

+11.7%

• 38.0%
• 13.6%

+11.7%

• 38.0%

1%

SLIDE 18

Gross Profit (THB million) - 6M18 Gross Profit (THB million) - 2Q18

Gross Profit

18

(811) 1,314 1,375 1,510 2,261

• 3.5%

7.2% 7.0% 8.5% 11.4%

• 4.0%

0.0% 4.0% 8.0% 12.0% 16.0% (1,500) (1,000) (500)

• 500

1,000 1,500 2,000 2,500 3,000 2Q17 3Q17 4Q17 1Q18 2Q18

GP GPM

1,088 3,771 2.1% 10.1% 0.0% 4.0% 8.0% 12.0% 16.0%

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 6M17 6M18

GP GPM

SLIDE 19

EBIT (THB million) - 2Q18

EBIT

19

(1,689) 2,127 1 137

(1,689) 2,264

(3,000) (2,000) (1,000)

• 1,000

2,000 3,000 6M17 6M18 Share of profit (loss) from investments in associates and joint ventures Operating profit (loss)

EBIT (THB million) - 6M18

(2,026) 629 728 1,184 943 (57) 83 47 80 57

(2,083) 712 775 1,264 1,000

(3,000) (2,000) (1,000)

• 1,000

2,000 3,000 2Q17 3Q17 4Q17 1Q18 2Q18 Share of profit (loss) from investments in associates and joint ventures Operating profit (loss)

SLIDE 20

Net Profit (THB million) - 6M18 Net Profit (THB million) - 2Q18

Net Profit

20

(2,080) 167 469 832 592

• 9.1%

0.9% 2.4% 4.7% 3.0%

• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 6.0% (2,500) (2,000) (1,500) (1,000) (500)

• 500

1,000 2Q17 3Q17 4Q17 1Q18 2Q18 Net profit (loss) Net profit margin (2,072) 1,424

• 4.0%

3.8%

• 5.0%
• 4.0%
• 3.0%
• 2.0%
• 1.0%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% (2,500) (2,000) (1,500) (1,000) (500)

• 500

1,000 1,500 2,000 6M17 6M18 Net profit (loss) Net profit margin

SLIDE 21

21

• 3. NATURAL RUBBER MARKET SITUATION

SLIDE 22

NR World Balance

11.0 11.4 12.1 12.1 12.6 13.2 13.7 14.1 14.5 14.9 15.3 15.5 15.9 16.1 16.5 16.8 11.7 12.3 12.1 12.3 12.5 13.5 14.0 14.4 14.7 14.9 15.3 15.5 15.8 16.2 16.5 16.8

612 911 (22) 129 (136) 314 307 292 142 22 11 (49) (48) 61 26 19

• 200

200 400 600 800 1,000

• 5

5 10 15 20 2012 2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F

(Unit : million tons) Demand (LHS) Supply (LHS) Supply Surplus / (Deficit) (RHS)

Natural Rubber Demand & Supply

Global NR demand is expected to be 13.7 million tons, +3.5% in 2018 and average +2.8% in the next 3 years

Demand

Global NR supply is expected to be 14.0 million tons, +3.3% in 2018 and average +2.1% in the next 3 years.

Supply

(Unit : ‘000 tons)

22

• Increased tapping frequency to

maintain the same levels of income

• Increased untapped mature trees
• Lack of good agro-management
• Skilled labour shortages [shifting

from rubber farming to other jobs] Source : IRSG, June 2018

Short-term impact Long-term impact

• Discouragement of new planting
• Delay of replanting schedule
• Uprooting of rubber trees & replacing

with other crops

• 71% of NR consumption comes from the tire industry, whose demand is

expected to grow by 4.0% in 2018, in line with global tire production.

• 29% of NR consumption comes from non-tire consumers, whose demand is

expected to increase sharply by 5.2%, driven by increased consumption by gloves producers.

• Some SR consumption in 1Q18 was substituted by NR consumption during a

period of low NR prices.

SLIDE 23

NR Supply

23

Source : IRSG, June 2018

2,000 4,000 6,000 8,000 10,000 12,000 14,000 2010 2011 2012 2013 2014 2015 2016 2017 2018F Phillipines Sri Lanka CAMAL China Vietnam India Malaysia Indonesia Thailand

NR Plantations Area, in 11 countries [‘000 HA] NR Production [mil. tons]

+19.3%

• 0.2%

2,000 4,000 6,000 8,000 10,000 12,000 14,000 2010 2011 2012 2013 2014 2015 2016 2017 2018F RoW Phillipines Sri Lanka CAMAL China Vietnam India Malaysia Indonesia Thailand

+24.5% +3.3%

Indonesia 26%

Thailand 36%

Vietnam 8% China 6% India 5% Malaysia 5% CAMAL 4% Others 11%

14.0

• mil. tons

(+3.3%) 2018F global production growth = 3.3%

2018f Major Producers by Country

5,015 3,597 1,113 806 665 698 630 598 206 117

1,000 2,000 3,000 4,000 5,000 6,000 Thailand Indonesia Vietnam China India Malaysia Ivory Coast CAMAL Brazil Phillipines

NR Production (000'tons)

+5.5% +2.8% +2.4% +14.8% +1.0%

• 6.7%
• 5.8%

+4.3%

+2.0% +14.7%

2018f NR Production

(Unit: ‘000 tons)

%growth from 2017

10,403 13,539 13,989 10,853 12,976 12,945

SLIDE 24

China 49%

EU 12%

India 9%

Japan 6% USA 6% Thailand 5% South Korea 4% Others 9%

China 40%

EU 13% India 9% USA 7% Indonesia 5% Japan 5% Thailand 5% Malaysia 4% Others 13%

2018f Major NR Consumers

2018F global growth in consumption = 3.5%

13.7

• mil. tons

(+3.5%)

NR Demand

24

5,121 1,221 1,098 981 713 698 615 565 432 376

1,000 2,000 3,000 4,000 5,000 6,000 China Europe India USA Thailand Japan Indonesia Malaysia Brazil South Korea

NR consumption (000'tons)

• 2.1%

+4.6% +5.3% +3.6% +6.3% +16.3% +5.3% +9.7%

%growth from 2017

+3.1% +5.5%

(Unit: ‘000 tons)

2018f NR Consumption

9.7

• mil. tons

(+4.0%)

2018f NR Consumption in Tire Industry

71% of global NR consumption in 2018F

2018f NR Consumption in Non-TIre Industries

29% of global NR consumption in 2018F

China 15%

Malaysia 12% EU 12% Indonesia 10% USA 9% India 8% Thailand 6% Brazil 5% Others 23%

4.0

• mil. tons

(+5.2%)

SLIDE 25

NR Situation in Thailand in 2018F

25

• 22 mil. rai
• f plantation area
• 28%
• f the world’s total

plantation area

• 36%
• f global production
• 5.0 mil. tons

in production

• 0.74 mil. tons

in consumption

Tyre Consumption, 66%

Non-Tyre Consumption, 34% 1,000 2,000 3,000 4,000 2012 2013 2014 2015 2016 2017

RSS LTX TSR

46% 32% 22%

Thailand NR Production by Type Thailand’s Major Export Markets

USA 4% China 63% Japan 5%

Malaysia 9%

RoW 10%

Note: Data as at December 2017

Korea 9%

SLIDE 26

Commodity Price Movements & Share of NR in Rubber Consumption

26

Commodity Price Movement

• 15%
• 10%
• 5%

0% 5% 10% 15% 20% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

SICOM - TSR20 Brent Crude Oil Price Bloomberg Commodity Index

Synthetic Rubber

Natural Rubber

Consistent demand for NR

Heat resistance Elasticity

NR & SR are substitute and complimentary products. The substitution between NR & SR is limited (around 10%).

26% 28% 30% 32% 34% 36%

50% 52% 54% 56% 58% 60%

2010 2011 2012 2013 2014 2015 2016 2017 2018f 2019f 2020f 2021f

Tyre Industry Non-Tyre Industry

Share of NR in Rubber Consumption (%)

SLIDE 27

Qingdao & SHFE Stocks

27 Natural Rubber & Compound Rubber Stocks at Qingdao, China [tons]

100,000 200,000 300,000 400,000 500,000 600,000 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

Natural Rubber Stocks at Shanghai Futures Exchange (SHFE), China [tons]

100,000 200,000 300,000 400,000 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18

83,500 tons

as at the end of August, 2018

551,634 tons

as at the end of August, 2018

SLIDE 28

28

• 4. LOOKING AHEAD

SLIDE 29

Suratthani, Thailand

29

2018 Target – NR Production Capacity

Production Capacity [mil. tons/annum]

1.99 2.09 2.09

0.42 0.51 0.55 0.21 0.21 0.21

2.62 2.82 2.86

0.0 0.5 1.0 1.5 2.0 2.5 3.0 2017 6M18 2018E

RSS LTX TSR +9.2%

TSR 0.10 mil. tons

• A new TSR plant in

Sakon Nakorn commenced

• peration in 2Q18.
• Capacity expansion at existing LTX

plants in Suratthani, Songkhla, and Ubon Ratchathani

LTX 0.13 mil. tons

Sakon Nakorn, Thailand Ubon Ratchathani, Thailand Songkhla, Thailand

SLIDE 30

Suratthani, Thailand Songkhla, Thailand

30

2018 Target – Gloves Production Capacity

Production Capacity [bn. pieces/annum]

14.0 15.7 17.2

5 10 15 20 2017 6M18 2018E

+22.9%

• Capacity expansion at existing Gloves

factories in Songkhla and Suratthani

Gloves 3.2 bn. pieces

1.7 bn. pieces 1.5 bn. pieces

SLIDE 31

31

The Amalgamation in Gloves Business

Location: 85 Moo 6, Khuan Thani, Kantang District,

Trang, Thailand

Production Capacity: 4 billion pieces per annum Product Type: Natural Rubber Gloves - Powdered Revenue from Sales in FY2017: Baht 1,508.62 million Net Profit in FY2017: Baht 66.35 million

Background of Thaikong Co.,Ltd. Benefits of The Amalgamation Post-Amalgamation Shareholding Structure Pre-Amalgamation Shareholding Structure

The amalgamation is expected to be completed by 1 April 2019.

Positive growth potential in Rubber Gloves Industry

 Instant increase in production capacity [It would normally take 18-24 months to

achieve the current production capacity of TK.]

 Opportunity for further capacity expansion [The current production capacity of TK

can be increased further.]

 Lower cost of investment  Synergy [TK being STA’s main supplier, bringing in TK to be part of STA reduces supply risk and creates

synergy.]

 Reinforcement of competitiveness [If TK were to fall into the hands competitors,

STA’s competitiveness would be detrimentally affected.]

SLIDE 32

32

Investment Highlights

GROWTH SHAREHOLDER RETURN OPPORTUNITIES

• Growth in the DOWNSTREAM BUSINESS is driven by Gloves, which generate higher profit margin.
• Growth in the MIDSTREAM BUSINESS mainly comes from Concentrated Latex [LTX], the primary raw material in Gloves

production.

• The new dawn of STA generates HIGH CAPITAL GAINS from the turnaround in our financial performance and

the consolidation of our Gloves business.

• HIGH DIVIDEND YIELD is possible after the turnaround. Historically, STA has paid dividend around 40% of net profits.
• Our Gloves business benefit from “THE AGING SOCIETY & INCREASED HEALTH AND HYGIENE AWARENESS.”
• We produce A FULL RANGE OF GLOVES from both latex to nitrile that are suited to A WIDE RANGE OF APPLICATIONS

in the healthcare and various other industries.

• The change in our revenue structure led to SOLID GROWTH IN PROFITS and reinforces our status as THE WORLD’S

LEADING FULLY INTEGRATED NATURAL RUBBER COMPANY.

SLIDE 33

33

Thank you

Con

• ntact Investor Relatio

tions Tel: 02-207-4500 Ext. 1402 E-Mail il: IR@sritranggroup.com

SLIDE 34

34

APPENDIX STA IN BRIEF

SLIDE 35

Profile

35

Symbol

STA NC12

2017 CG Score

Very Good

Anti-Corruption

Certified by Thai CAC

Closing Price 52-Week High/Low

Baht 12.50 per share [28/08/18] Baht 15.70 per share Baht 9.90 per share

Outstanding Shares

1,535,999,998 shares @ 1 Baht per share

Market Capitalization

Baht 19.18 billion [28/08/18]

% Free Float

54.29%

[Total shareholders : 14,911 Shareholders as of 01/02/2018]

Dividend Policy

Approximately 30% of net profit in a financial year but not in excess of retained earnings (with additional conditions)

23%

Sincharoenkul family

22%

Sri Trang Holding

55%

Others

Shareholding Structure

Top 5 Shareholders

[as at 01/02/2018]

1) Sincharoenkul family 23.14 2) Sri Trang Holding 22.38 3) Thai NVDR 3.88 4) CITIBANK NOMS S'PORE 2.94 5) Thai R.T.N. Holding 2.30

SLIDE 36

Milestones

36

1987

Commenced operation

as producer of RSS in Hat Yai, Thailand with Baht 31 million in registered capital. Established Rubberland Products to produce LTX, the Group’s first production facility for concentrated latex

1988

Jointly established SSC (Presently called

Sri Trang Gloves (Thailand) co., Ltd. “STGT”) to produce latex examination

gloves.

1989

Jointly established Thai Tech Rubber with Southland Rubber Co., Ltd and Itochu Corporation Limited to produce TSR

1990

Filed for an IPO of shares in Thailand and listed the shares on

1991

Increased shareholding in STGT from 40.5% to

90.2% of the total shares, which enabled us to fully control the Gloves Business Startex Rubber established a subsidiary, Shidong

Medical Equipment, to manage the sales and

distribution of gloves in the PRC Established Starlight Express Transport to provide logistics support for the Group.

1994 1995

Established Premier System Engineering to provide support for R&D and to provide engineering services to the Group. Established Startex Rubber

1996

Jointly established Semperflex Asia with an Austria-based company to produce high- pressure hydraulic hoses

2002

Established Sri Trang International in

Singapore, the natural rubber purchasing

hub, to manage global distribution of the Group’s natural rubber products

2004

Established Sri Trang USA to manage distribution of the Group’s natural rubber products in the US market

2005

Established PT Sri Trang Lingga in Indonesia, the Group’s first natural rubber procurement center and production facility for TSR outside Thailand Established Sri Trang Rubber & Plantation to hold ownership of and manage rubber plantations Acquired PT Star Rubber

in Indonesia, the Group’s

second production facility for TSR

2009

Expanded operations in the PRC by establishing Shi Dong Shanghai, the Group’s first subsidiary in the PRC

2010

Filed for a public offering of newly issued shares in Singapore and listed the shares on , becoming the first dually listed rubber company in Thailand.

2011

Established Sri Trang Indochina in Ho Chi Minh, the Group’s first subsidiary in Vietnam, to manage sales and exports of natural rubber products in Vietnam

2013 2017 2007

SLIDE 37

• 5. Sales & Distribution
• 6 sales and distribution centers in strategic

locations, namely China, Singapore, Thailand, Indonesia, USA and Vietnam

• 4. Finished Products
• 15.7 billion pieces of gloves per annum in

production capacity

• Both latex and nitrile examination gloves
• 1. Rubber Plantations
• Approximately 45,000 rai (7,200 hectares) in

19 provinces of Thailand

• 3. NR Processing
• 2.82 million tons per annum in

production capacity

• 36 processing facilities in Thailand,

Indonesia and Myanmar

• A full range of products from RSS and TSR

to LTX

• 2. RM Procurement
• Access to raw material sources

through our 59 procurement centers in Thailand, Indonesia and Myanmar

Fully Integrated Supply Chain Business Model

1. 2. 3. 4. 5.

37

SLIDE 38

Portfolio

38

Key Businesses

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

STANDARD THAI RUBBER [STR]

• STR10
• STR 20
• STR 9720
• CPR (Compound Rubber or Mixtures)
• CV (Constant Viscosity Natural Rubber)

STANDARD INDONESIA RUBBER [SIR]

• SIR10
• SIR20

STANDARD MYANMAR RUBBER [SMR]

MAIN CONSUMERS:

PRODUCT LIST: PRODUCT LIST:

MAIN CONSUMERS:

PRODUCT LIST: PRODUCT LIST:

Examination/ Non- Examination Gloves Latex Powdered Powder- Free Nitrile Powder- Free

• Premium 5.8 g
• Balance 5.0 g
• Comfort 4.8 g
• Premium 6.2 g
• Balance 5.8 g
• Balanced plus 5.6 g
• Balance Comfort 5.5 g
• Comfort 5.0 g
• Heavy 6.2 g
• Balance 4.8 g
• Comfort 3.5 g
• Comfort plus 3.0 g

SLIDE 39

Portfolio

39 Parawood Processing Logistics Engineering and R&D

Ancillary Businesses

Rubber Plantations

A team of experienced agriculturists Every plot of land was acquired lawfully and is entirely unencumbered.

Land Selection

Only high quality rubber saplings are selected for the plantations.

Selection of Rubber Saplings Plantation Management

Every step in the cultivation

• f rubber trees is carried out

with meticulous care.

Cultivation Process Anvar Parawood

processes rubberwood and a variety of

• ther woods and manufactures packaging

products made of a variety of different woods. These products are for sale to customers and for use within Sri Trang Group.

Starlight Express Transport

• perates as a provider of domestic and

international transportation and logistics services in relation to natural rubber products and examination gloves for companies within Sri Trang Group with a fleet over 270 vehicles, including trailers, trucks and storage containers.

1.The design, manufacture and installation of industrial machinery and spare parts

Premier System Engineering

2.The repair and maintenance of industrial machinery 4.Research anddevelopment (R&D) 3.IT consulting 5.Instrument calibration services, covering volume, temperature, pressure, electrical mass and dimensions 7.Mechanicalefficiency consulting 6.Other engineering services, including energy

consumption measurement, structural analysis, mechanical vibration measurement and laser alignment

8.Environmental and workplace safety consulting,

includingheat, lightand noise measurement, electrical system certification and crane use certification

SLIDE 40

Awards in terms of ESG

40

ECO Industrial Town Award 2017 Green Industry Certificate 2017 Good Green Governance Certificate 2017 AMCHAM’S CSR Excellence [ACE] Award 2017 Excellent Cooperative Education Award 2017 Thailand Sustainability Investment [THIS] 2017 FDA Quality Award 2017 Authorized Economic Operator [AEO] Certificate PM Award 2018 [Best Exporter]