STA STA 1Q 1Q20 20 Pr Prese esentation ntation Opportu - - PowerPoint PPT Presentation

▶
sta sta
SMART_READER_LITE
LIVE PREVIEW

STA STA 1Q 1Q20 20 Pr Prese esentation ntation Opportu - - PowerPoint PPT Presentation

May 12, 2023 308 likes •689 views

STA STA 1Q 1Q20 20 Pr Prese esentation ntation Opportu ortunity nity Day 5 June e 2020 Agen enda da 1. STA Business iness Highli hlights ghts 2. Finan ancial cial Performa formanc nce 3. Na Natural ural Rubber bber Marke

slide-1
SLIDE 1

STA STA

1Q 1Q20 20 Pr Prese esentation ntation

Opportu

  • rtunity

nity Day

5 June e 2020

slide-2
SLIDE 2

Agen enda da

  • 1. STA Business

iness Highli hlights ghts

  • 2. Finan

ancial cial Performa formanc nce

  • 3. Na

Natural ural Rubber bber Marke ket t Situation uation

  • 4. Busi

siness ness Outlo look

  • k

2

slide-3
SLIDE 3

STA A Bu Business iness Highlights hlights

1 1

3

slide-4
SLIDE 4

45 45

procure urement nt centers rs

8% 8%

marke ket t share of globa

  • bal natura

tural rubbe ubber consump nsumption

  • n in 2019

019

About

  • ut STA:

: The World’s Leading Fully Integrated Natural Rubber Company

USA Indonesi donesia Sing ngapore pore China na Myanm nmar Thailand nd

45,000 000 rai

rai

(7,2 ,200 00 hectare res) s) of rubber r plant ntations ns

36 36 NR proc

  • cessi

sing ng plant nts s in Thaila land nd, Indo donesi sia and Myanma nmar

Establish shed d in 1987 987

2. 2.9 million

  • n ton
  • ns in prod
  • duction
  • n capacity

y per year

33 33

billion pieces of gloves in production capacity per year

Rubber Plant ntatio ions ns Rubber Processin ssing Rubber Glove

  • ves

1. 1.1 million

  • n ton
  • ns sold

d in 2019 019

3

location

  • ns

s of glove

  • ve factori
  • ries

s in Tha hailand nd

19 19.9

billion pieces of gloves sold in 2019

7% 7%

market ket share re of global

  • bal glove

ves consump nsumption

  • n in 2019

019

STA’s Global Prese sence nce

> 3, 3,000 000

Rubber r farme mers rs and dealers rs being ng members s of STA

A Friend iend

mobile application

  • n

304,7 4,721 21

ton

  • ns

s sold d in 1Q20 20

6.3 .3 billion pieces of gloves sold in 1Q20

4

Upstream Midst stre ream Downst nstream

Vietnam nam

slide-5
SLIDE 5

Infras astru tructu cture re 13% 13%

Imma mature ure NR Area 65% 65%

Tapping ng Area 20% 20% Appr prox.

  • x.

45,00 000 0 rai 7,200 200 HA

Upstr trea eam m Oper erat ation ions s –Rubber er Plan antat tatio ions ns

Lampang Sukothai Pichit Phitsanulok

  • k

Petchaboon Ch Chiang g Ra Rai Chiang Mai Sakon

  • nNakhor
  • rn

Utaradit Sakaeo Phrae Kalasin Phayao Nan Songkhla Surat Thani Krabi Chumporn Bungkan

Provin inces esin Thailand

19 19

Area of Rubbe ber Planta ntati tions ns (2020F 2020F) Esti timate ted d Matu ture re Plantations ntations

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

2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F

Pro Producti ction (ton tons) Tap Tapping ing, tre trees ( es (RHS RHS)

Note: The green provinces are where our factories located in.

Note: Information as of 31 March 2020

Other Cr Crops ps 2%

Incre rease se numb mber r of tapping ng area from

  • m 4,400

400 rai in 2019 19 to 9,30 300 0 rai in 2020 020 [+193 +193%] %]

~1,400 Tons

5

slide-6
SLIDE 6

Techn hnica icall lly y Spec ecifi fied ed Rubber ber [TSR] Ribbe bed d Smoke ked d Sheet t [RSS]

Mids dstre tream am Oper erat ations

  • ns – NR Proce

cess ssing ing

processing ng facil iliti ties

36 36

Product

  • duction
  • n Ca

Capacity acity (mil. tons)

s)

0.00 3.00 6.00 9.00 12.00 15.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2007 2011 2015 2016 2017 2018 2019F 2020F

Gl Glob

  • bal

al NR NR Co Consu nsumption mption ( (RHS RHS) Eng ngine neer ering ng cap capaci acity ty ( (LHS LHS) Sales es volu

  • lume (

e (LHS) HS)

24 24 proces

essin sing facilit itie ies

Capacit city*: y*: 2.10

.10mil. tons/

s/ann nnum

TSR RSS LTX

5 5 process

ssin ing facilit lities es

Capacit acity*: y*: 0.21

  • 21mil. tons/

s/an annu num

7 7 process

ssing facilit lities es

Capacit city*: y*: 0.55

.55mil. tons/

s/ann nnum Capacit city*: y*: 2.86 mil. tons/ s/ann nnum

Note: *Total engineering capacity

66% 66%

  • f tota

tal sales revenue in 1Q20

8% 8%

  • f tota

tal sales revenue in 1Q20

Concentrate ntrated Late tex x [LTX] TX]

4% 4%

  • f tota

tal sales revenue in 1Q20

Note: Information as of 31 March 2020

6

slide-7
SLIDE 7

Maj ajor r Cu Custo tome mers rs in Mids dstre tream am Business ness

Global l Brands

7

slide-8
SLIDE 8

33 33

  • bn. pcs.i

.ins nstalled capacity y per annum um

  • Established Songkhla Plant
  • Songkhla Plant started Natural

Rubber Powdered Gloves production

1999

  • Started Nitrile Gloves production and distribution

2011

  • Surat Thani Plant started commercial production

2017 2019

  • Changed company’s name to

Sri Trang Glove ves s (Thailan iland) Compan any y Limited ted

  • Sri Trang Glove

ves s (Thailan iland) Compan any y Public lic Limited tedwas established from the amalgamation between Sri Trang Gloves (Thailand) Company Limited and Thaikong Public Company Limited

1989

Do Down wnstre tream am Oper erat ations ions – Finishe shed d Product ducts

Techn hnica icall lly y Spec ecifi fied ed Rubbe ber r [TSR]

Targeting to achieve an annual installed capacity of

50 bn. pcs. by 2024 & 70 bn. pcs. by 2028

STGT

6. 6.3

  • bn. pcs.

sold in 1Q20

19 19.9 .9

  • bn. pcs.

sold in 2019

7% 7%

Glob

  • bal market share

re 3

locati ation

  • ns of glove
  • ve

factor tories es in Thailand nd

8

slide-9
SLIDE 9

Our Glove ves s Product ducts

  • Heavy

vy 6.2 g

  • Balan

lance ce4.8 g

  • Comfort

rt 3.5 g

  • Comfort

rt Plu lus s 3.0 g

  • Sense

se 2.5 g

Examina inatio ion/ n/ Non-Exa Exami minatio ion n Glov

  • ves

Latex

Powde wdere red Powde wder-Fre ree

Nitril ile

Powde wder-Fre ree

  • Comf

mfort t 4.8 g

  • Balan

lance e 5.0 g

  • Premi

mium m 5.8 g

  • Comf

mfort t 5.0 g

  • Balan

lance e Comfort t 5.5 g

  • Balan

lanced ed Plu lus s 5.6 g

  • Balan

lance5.8 g

  • Premiu

mium m 6.2 g

Prod

  • duc

uct R t Range nge Our Bra rands

9

Variou

  • us

s distri ributio ion n channels ls to reach all target custome

  • mers

rs

Exhi hibi bition tion Selli lling ng Agent nt Retail ail Busines ness Onlin ine

slide-10
SLIDE 10

Sales s Volu lume me

+29.2 9.2%

%

YoY

Sal ales es Volume me Brea eakd kdown wn by Reg egion

  • n

Informati tion

  • n as at 31 March 2020

Maintain intain our ur market rket shar are e in develop veloped ed marke rkets ts& & Aggre gressive sively ly expand xpand to high grow

  • wth countries

untries

Sales s Volume me

+14.5 4.5%

% QoQ

6. 6.3

  • bn. pcs.

sold in 1Q20

Exporting ing to

+140 40

countri tries es

Nort rth h America 15% 5%

Africa 4% 4%

EU EU 19% 19%

Sout uth h Ameri rica 13% 3%

Middle East 4% 4%

Ocea eania nia 1% 1%

Asia 45% 45%

12% 12% 12% 12% 5% 5%

10 10

Produ duct t Mix by Volume

67% 69% 33% 31% FY1 Y19 3M2 M20 Ni Nitr trile La Late tex 89% 88% 11% 11% 12% FY1 FY19 3M2 M20 Ow Own Bra Brands ds OEM EM

slide-11
SLIDE 11

150 150 148 148 160 160 171 171 180 180 194 194 210 210 233 233 268 268 300 300

50 50 100 150 200 250 300 350 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Globa bal l Glove ve Mar arke ket t Outl tloo

  • ok

Average ge growth h at 10-12% per annum

Global bal Glove ve Deman mand

Source: MARG RGMA

11 11

Globa bal l Market rket Share re in 2019

[bn. pcs.]

Deman mand Ke Keeps ps Growi wing ng & Hidden en Consumption sumption in Emerging rging Markets rkets

Malay laysia sia 67% 67% Thaila land nd 19% 19%

China na 11% 11%

Indon donesia 3% 3% Source: MARG RGMA

+12% 2%

300 300

  • bn. pcs.
slide-12
SLIDE 12

Incre reasing ng Usage of Hygieni ienic Produ ducts ts in Develo lopi ping ng Countries tries

Ke Key Dr Drive vers rs in Rubber er Glove ve Co Consumpt umptio ion

12 12 Growth wth in Health lthcare re Indu dustry stry around nd the World ld

Key Drivers: (1) Increase in aging population (2) Supportive government policies and access to medical services (3) Increase in Non-communicable Diseases

150 150 100 100 10 10 6 4

20 20 40 40 60 60 80 80 100 120 140 160

United edState ates Europe China India Africa

Source: The Economist Intelligence Unit as of September 2019

Potential growth of rubber glove demand in developing countries is supported by accelera rated d econ

  • nomic growt
  • wth

h in such h count untri ries, s, incre rease in awareness ss in the import portance of hygi giene and d potential current low rate of rubber glove usage per capita in such countries

  • Pcs. per Capita

Source: MARGMA Industry Brief 2019 on the Rubber Glove Industry

USD mm

%

Health lthcare re Spend nding ng in Each h Region n in 2018 and d 2023 Fore recaste ted d Rubbe ber r Glove Consumpti sumption per Capi pita ta in Develo lope ped d and d Develo lopin ping Countries tries in 2019

Develo eloped ed Countries es Develo eloping Countr trie ies

7.4 3.6 7.1 4.7 3.8 5.0 (8 (8.0 .0) (6 (6.0 .0) (4.0 .0) (2 (2.0 .0) 0.0 .0 2.0 .0 4.0 .0 6.0 .0 8.0 .0 2,0 ,000 4,0 ,000 6,0 ,000 8,0 ,000 10,0 ,000

Mid Middle le East an and A Afr frica ica La Latin tin Ame Americ rica Asia Asia a and Au Austra stralia West E st Europe No North th Ame Americ rica Global 2018 ( (LHS LHS) 2023F ( (LHS LHS) CAGR 2 AGR 2018 -

  • 2023 (

(RHS)

slide-13
SLIDE 13

13 13

Gloves ves ar are e th the e NEW NO W NORMAL AL

slide-14
SLIDE 14

To De Delive ver To

Touch uch Of Of Li Life e on a g

a global al sca cale e

14 14

slide-15
SLIDE 15

FIN INANCIAL ANCIAL PER ERFOR FORMANCE MANCE

2 2

15 15

slide-16
SLIDE 16
  • 50

100 150 200 250 300 350 400 450 500 550 600

Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

575 cent/kg t/kg. 102 cent/ t/kg.

Source : Bloomberg

228 cent/ t/kg.

TSR20 Histor

  • ric

ical l Pric ice Moveme ment nt [2004 – May

y 2020] (US cent nt : Kg.) 104 cent/ t/kg. 105 cent/ t/kg.

STA A is th the e TRUE

UE SURVIVO IVOR

wi with h the lowe west st D/E rati tio

  • in the rubber

bber industr stry y at 1.27 7 times es

16 16

slide-17
SLIDE 17

10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 Jan-19 Fe Feb- b-19 Mar Mar-19 Apr-19 Ma May-19 Jun-19 Jul-19 Aug-19 Se Sep-19 Oct- t-19 Nov Nov-19 Dec Dec-19 Jan-20 Fe Feb- b-20 Mar Mar-20 Apr-20 Ma May-20

1Q19 2Q19 3Q19 4Q19 1Q20

100 120 140 160 180 200 220 Jan-19 Fe Feb- b-19 Ma Mar-19 Apr-19 Ma May-19 Jun-19 Jul-19 Aug-19 Se Sep-19 Oct- t-19 Nov Nov-19 Dec Dec-19 Jan-20 Fe Feb- b-20 Ma Mar-20 Apr-20 Ma May-20 RSS3 RSS3 TSR2 TSR20

SICOM OM Pric ice

(US cent : Kg.)

SICOM COM – Oil Prices ces

Crude Oil l Prices

(USD : Bbl. l.)

ABB BBREVI VIATI TIONS NS RSS : Ribbed smoked sheet LTX: Concentrated Latex TSR : Technically specified rubber, which includes STR and SIR

139.4(+10.0%) 63.9 (-6.1%) 151.3(+8.6%) 69.0 (+7.9%) 134.7(-11.0%) 61.9 (-10.4%) 137.0(+1.7%) 63.0 (+1.9%) 50.7 (-19.6%) 133.5(-2.5%) 108.9 (-18.4%)

  • AVG. of TSR20
  • AVG. of Crude Oil

27.7 (-45.3%)

17 17

slide-18
SLIDE 18

Glov

  • ve Produc

ducts s (million

  • n pieces)

)

Natural l Rubber Produ

  • ducts

s (tons)

ns)

Sal ales es Volume me

285,334 260,783 272,223 285,594

304,721

  • 50,000

100,000 150,000 200,000 250,000 300,000 350,000 1Q19 2Q19 3Q19 4Q19 1Q20 4,857 4,546 5,027 5,483

6,277

1,000 2,000 3,000 4,000 5,000 6,000 7,000 1Q19 2Q19 3Q19 4Q19 1Q20 +6.8% +6.7% +29.2% +14.5%

18 18

slide-19
SLIDE 19

Sal ales es Rev even enue

Sales s Revenue by Prod

  • duct (THB

HB million

  • n)

9,375 10,386 9,785 9,474 11,607

1,615 1,561 1,728 1,213 1,302 824 310 786 987 720

3,044 2,885 3,072 3,193 3,837

13 9 12 14 14

14,871 15,151 15,384 14,881 17,481

1Q19 2Q19 3Q19 4Q19 1Q20

Others Gloves LTX RSS TSR

+17.6% +17.5%

[Restated]

TSR 66%

RSS 8%

LTX 4%

Gloves 22%

Sales s Breakdo down wn by Produc duct Sales s Breakdo down wn by Region

ABBREV REVIATI TIONS NS RSS : Ribbed smoked sheet LTX: Concentrated Latex TSR : Technically specified rubber, which includes STR and SIR Domestic 14%

China 45%

Asia (Exculding China&Thailand) 24%

America 10% Europe 6% Others 1%

17,481

Mil.Baht

17,481

Mil.Baht

19 19

slide-20
SLIDE 20

Opera ratin ting Profit t (THB million

  • n)

Gross ss Profit

  • fit (THB million
  • n)

)

Gross s Profit it & O & Oper erat ating ing Profit fit

[Restated] [Restated]

1,053 1,453 970 1,379

2,466

7.1% 9.6% 6.3% 9.3% 14.1% 0% 4% 8% 12% 16% 20%

  • 500

1,000 1,500 2,000 2,500 3,000 1Q19 2Q19 3Q19 4Q19 1Q20

Gross profit Gross profit margin (%)

(434) 552 352 185

1,109

  • 2.9%

3.6% 2.3% 1.2% 6.3%

  • 4%
  • 2%

0% 2% 4% 6% 8% (500)

  • 500

1,000 1,500 1Q19 2Q19 3Q19 4Q19 1Q20

Operating profit (loss) Operating profit margin (%)

20 20

slide-21
SLIDE 21

(434) 552 352 185 1,109

37 36 22 37 99

(397) 588 374 222 1,208

  • 2.7%

3.9% 2.4% 1.5% 6.9%

  • 4%
  • 2%

0% 2% 4% 6% 8% (1,000) (500)

  • 500

1,000 1,500 1Q19 2Q19 3Q19 4Q19 1Q20

Share of profit (loss) from investments in associates & JV EBIT margin (%)

Net Profit

  • fit (THB million
  • n)

EBIT T (THB

HB million

  • n)

EBIT T & N & Net et pr profit it

[Restated]

EBIT

(628) 270 135 74 854

  • 4.2%

1.8% 0.9% 0.5% 4.9%

  • 5.0%
  • 3.0%
  • 1.0%

1.0% 3.0% 5.0% (1,000) (500) 500 1,000 1Q19 2Q19 3Q19 4Q19 1Q20

Net profit (loss) Net profit margin (%)

[Restated]

Operating Profit

21 21

slide-22
SLIDE 22

Financ ancial ial Hi Highlig light ht

*Adjusting for (reversal) allowance of inventory and realized gains /(losses) from hedging activities **Reclassified according to TFRS 7-- Just only FX gains/ (losses) related to AP, AR, loans can be shown in this item ***Reclassified according to TFRS related to financial instruments of currency and commodities

(Unit : THB million) 1Q20 1Q19

[Restated]

%YoY

4Q19

%QoQ

FY19

Revenue 17,481 14,871 17.6% 14,881 17.5% 60,286 Sales volume (tons) 304,721 285,334 6.8% 285,594 6.7% 1,103,934

  • Avg. selling price (USD per ton)

1,430 1,310 9.2% 1,350 5.9% 1,402 Gross profit 2,466 1,053 134.2% 1,379 78.8% 4,854

  • Adj. gross profit*

2,861 622 360.3% 1,307 118.8% 4,635 SG&A (1,258) (1,165)

  • 19.3%

(1,205) 4.4% (4,571) Gains (loss) on exchange rate, net** (37) 132 N/A 185 N/A 569 Other gains (loss)*** (92) (482.7) N/A (247)

  • 62.6%

(478) Operating profit (loss) 1,109 (434) N/A 185 498.1% 656 Share of profit (loss) from investments in JV 99 37 167.5% 37 171.1% 132 EBITDA 1,871 180 940.4% 857 118.2% 3,274 EBIT 1,208 (397)

  • 404.6%

222 444.0% 788 Finance costs, net (200) (228)

  • 12.0%

(188) 6.3% (856) Tax Income (expense) (80) 10 N/A 76 N/A 16 Net profit 854 (628) N/A 74 1053.9% (149) GP margin 14.1% 7.1%

702.5

9.3%

484.0

8.1%

  • Adj. GP margin*

16.4% 4.2%

1,218.6

8.8%

758.0

7.7% Operating profit margin 6.3%

  • 2.9%
925.9

1.2%

510.0

1.1% EBITDA margin 10.7% 1.2%

949.2

5.8%

494.0

5.4% Net profit margin 4.9%

  • 4.2%
910.7

0.5%

438.9
  • 0.2%

22 22

slide-23
SLIDE 23

Bal alan ance ce Shee eet

27,802 27,419

3,175 3,175 2,247 2,275 1,196 1,195 1,369 1,869 1,689 1,927

13,494 13,478 4,978 6,183 2,382 3,066

31-Dec-19 31-Mar-20

Cash and cash equivalent AR Inventories Other current assets Other non-current assets Investments Rubber and Palm plantations Goodwills PPE

Asse set t (THB

HB million) n)

58,331

Liability lity & Equity y (THB

HB million) n)

25,488 26,639

9,345 8,372

992 1,043 352 659

16,949 17,342

2,529 2,915

31-Dec-19 31-Mar-20

AP ST-Debt Other Current Liability Other Non-Current Liability LT-Debt Equity

ROA ROE D/E Net Intere rest st Bearing ng Debt/ Equity

1Q20

5.75X 75X 13.11 11X 1.27X 27X 1.16X 16X 60,558

FY19

  • 0.25

25X

  • -0.57

57X 1.29X 29X 1.20X 20X 58,331 60,558

23 23

slide-24
SLIDE 24

NAT ATURAL URAL RUBB BBER ER MA MARKET RKET SIT ITUATION UATION

3 3

24 24

slide-25
SLIDE 25

0% 0% 20% 20% 40% 40% 60% 60% 80% 80% 100% 100% 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020

Ame Americ rica Afr Africa ica Ot Other r AS ASIA AS ASEAN AN

NR Supply ly [Bef

efore re COVID ID-19] 19]

Indo dones nesia ia 22%

Thail ilan and d 36%

Vietnam nam9% 9% China na 6% 6% Cote d'Iv Ivori

  • rie6%

6%

India5% 5% CAMAL AL 5% Malays ysia ia4% 4% Others rs6% 6%

14.05

  • mil. ton
  • ns

2020F globa bal produ ducti tion n growth wth = 2.3%

2020F 0F Major r Produc ucers rs

25 25

~80% of NR output came from ASEAN AN

100 200 300 400 500 600 700 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

(Unit: ‘000 H.A.)
  • Expect

ct to be less s than 50,000 ha each year

  • Drop largely

ely in Thailan land and Indonesia sia 50 50 100 150 200 250 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

10, 0,000 00 10, 0,500 00 11, 1,000 00 11, 1,500 00 12, 2,000 00 12, 2,500 00 13, 3,000 00 13, 3,500 00

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

New Plant nting ing Area Re Re-Pl Plant nting ing Area

(Unit: ‘000 H.A.)
  • Durin

ing 2019-2020, the growth is expected cted from Malay aysi sia a and Vietnam. am.

  • The major risk is the limit

itatio ation of capital tal financin cing to small all farmers. s.

Total l Area

(Unit: ‘000 H.A.)
  • Durin

ing 2010-2014, total tal planti ting area in A Asia-Pacif cific c region jump mped ed sharply ly ~20%.

  • In the next decade,

e, total al rubber er area is expected cted to drop more than 500,000 ha or ~ ~4%. Source : IRSG, July 2019

slide-26
SLIDE 26

China na 39% 39%

EU EU 9% 9% Indi dia8% 8% USA7% 7% Thailand nd6% 6%

Japan5% 5% Indonesia sia5% 5% Malays ysia ia4% 4% Others rs17% 17%

2020F F Major r NR Consume mers rs

2020F globa bal growth wth in consu nsumpti tion n = 1.9%

14.01 14.01

  • mil. ton
  • ns

NR De Dema mand d [Bef

efore re COVID ID-19] 9]

NR Consump mptio ion n Dive versi rsific ficatio ion

26 26

Source : IRSG, July 2019

(Unit: ‘000 tons)

NR Consump mptio ion n in Non-Tir Tire Indust stry ry

0% 0% 20% 40% 60% 80% 100% 2016 2017 2018 2019 2020 Ame Americ rica EU EU AS ASEAN AN Ot Other r As Asia ia Chin ina

NR Consump umptio ion n in Tire Indust ustry ry

0.0 1.0 2.0 3.0 4.0 5.0 6.0 2,000 4,000 6,000 8,000 10,000 12,000 2017 2018 2019 2020 2021 Ame Americ rica EU EU AS ASEAN AN Ot Other r As Asia ia Chin ina % G Gro rowth

(Unit: ‘000 tons) (%) (%)

  • 4
  • 4.0
  • 2
  • 2.0

0.0 2.0 4.0 6.0 1,000 2,000 3,000 4,000 5,000 2017 2018 2019 2020 2021 Ame Americ rica EU EU AS ASEAN AN Ot Other r As Asia ia Chin ina % G Gro rowth

slide-27
SLIDE 27

Dr Drop in th the gl e global al NR co consumpt mption ion

Source : IRSG, Monthly Rubber Bulletin, April 2020

Internatio ernational nal Rubber bber Study dy Group up

5,497 1,183 1,132 1,006 800 712 1,406 274 275 238 194 172 489 94 100 102 69 64 416 74 77 79 58 56 China EU India USA Thailand Japan 2019 4Q19 Mar'19 Mar'20

  • 15%
  • 21%
  • 23%
  • 22%
  • 16%
  • 13%

27 27

Natural l Rubber Consum sumptio ion n of Main Consuming ming Countri ries s

slide-28
SLIDE 28

80 100 120 140 160 180 200 220 240

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20

170 70 cent/kg kg. 110 10 cent/ t/kg kg.

Source : Bloomberg

157 57 cent/kg kg.

TSR20 Pric ice Moveme ment nt [2016

2016–May 2020] (US cent : Kg.) 104 04 cent/kg kg.

120 20 cent/ t/kg kg.

The e Di Diffi ficu cult lt Time mes

28 28

230 30 cent/ t/kg kg. 150 50 cent/kg kg. 160 60 cent/kg kg. 123 23 cent/kg kg. 135 35 cent/kg kg. 124 24 cent/kg kg.

+45% +87% +26% +31% +21%
  • 30%
  • 41%
  • 29%
  • 21%
  • 69%
slide-29
SLIDE 29

BU BUSIN INESS ESS OUTL TLOOK OOK

4

29 29

slide-30
SLIDE 30

Strategy rategy fo for Mid idstream stream Operati eration

  • ns

s – NR Proce

  • cessing

ssing

Objective: To buy raw materials from rubber farmers and dealers in Thailand anywhere and anytime

  • No. of Members: > 3,000 rubber farmers &

dealers in STA network

Launch h mobil ile applicatio ion

“STA FRIENDS”

Enhance

produc ucti tion

  • n efficiency

iciency

Acquir ire

highe her r market rket shar are

  • Implement

ment automa

  • mation
  • n & censori
  • ring

ng system in production process

  • Reduc

uce energy rgy cons nsum umpt ption n e.g. adapting production process to be shorter & smarter, using more biomass and reducing the use of LPG etc.

  • Keep our

r position

  • n as the reliable

ble supplier r for rubber users all over the world

  • Gain

n more market share among ambiguous market environment

market share ~22%

  • f Thailand

nd production duction in 2019 019

market share ~25 25-30%

  • f Thailand

nd produc duction

  • n

in 2020 020

STA STA

30 30

STA STA ≠ In Industry dustry

slide-31
SLIDE 31

Strat rategy egy for r Do Downstream stream Operat erations ions – Gl Glove ve Bu Busi siness ness

Source: MARG RGMA Industry Brief 2019 on the Ru Rubber Gl Glove Industry and Co Compa pany

[bn. pcs.]

Capacity Expansi sion

  • n

3 phase

ses s of capa pacity ty expa pans nsion n to achi hieve an annu nual l capa pacity ty at 100

100 bn.pc

  • pcs. by 2032

High Demand d & High Growt wth Expand to Capture re Market Demand

15 15 27 27

50 50

100 100

8 4 5 17 17 20 20

70 70

30 30 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 100 100

2017 2017 2018 2018 2019 2019 2020 2020 Phas hase I 2024 2024 Phas hase II 2028 2028 Phase III 2032 2032 +52% +203%

33 33

+112%

31 31

slide-32
SLIDE 32

STGT’s IPO Plan

STA and RBL(1) STH(2)

  • Dr. Viyavo

vood

  • d

Sinc ncha haroe roenk nkul ul Family(3) Others rs

Remark: (1) RubberlandProducts Company Limited (2) Sri Trang Holdings Company Limited (3) Including 1) Mr. KitichaiSincharoenkul, 2)Mr. Lee Paul Sumade, 3) Ms. Voradi Sincharoenkul, 4) Mr. Somwang Sincharoenkul, and 5) Mr. VeerasithSinchareonkul

81.0 .08% 8% 5.39% 7.09% 1.93% 4.51%

Pre re-IPO IPO Post-IPO IPO

STA and d RBL(1)

1)

STH(2)

2)

  • Dr. Viyavo

vood

  • d

Sinchar haroe

  • enk

nkul Family(3)

3)

Other hers

55.9 .95% 5% 3.72% 4.89% 1.33% 3.11%

Publ blic

31.0 .00% 0%

Numb mber er of newly-iss ssued ed ordinary y shares s not exceed

eding ng 31.00% of total al paid-up capital tal of STGT

For more information, please find https://market.sec.or.th/public/ipos/IPOSEQ01.aspx?TransID=280831

Type of B Busi sines ess Manufacturing and marketing business of natural rubber gloves and nitrile gloves Secondary y Market The Stock Exchange of Thailand (SET) Industr stry y Group / Sector tor Consumer Products / Personal products & Pharmaceuticals Statu atus Approved

  • No. of I

IPO No more than 444,780,000 newly issued shares divided into (1) 432,780,000 newly issued shares to general public, institutional investors and sponsors (2) 2,000,000 newly issued shares to directors, executives and employees of Sri Trang Agro-Industry PCL and its subsidiaries (3) STGT's ESOP Program separated to 4,000,000 newly issued shares offered to directors, executives and employees of STGT and its subsidiaries on the IPO date, the other 6,000,000 newly issued shares will be offered 1-2 years after IPO Financia cial l Adviso sor Finansa Securities Limited

32 32

slide-33
SLIDE 33

AP APPEN ENDIX DIX ES ESG Polic icy

33 33

slide-34
SLIDE 34

Pr Profile file

Symbo bol

STA NC12 C12

2017 CG Score re

Excellence

Anti-Corru Corrupti ption

Certified by Thai CAC

Closi sing ng Price 52 52-Week High/ h/Low

Baht 17.70 per share [15/05/2020] Baht 17.90 per share Baht 9.45 per share

Outsta tandi nding ng Share res

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

Marke rket t Capitaliz italization tion

Baht 27.19 billion [15/05/2020]

P/E [times]

20.39 [15/05/2020]

% Free Float

55.06% [Total shareholders : 11,014 Shareholders as of

[28/02/2020]

Dividend ndPolicy icy

Approximately 30% 0% of net profi rofit in a financial year but not in excess of retained earnings (with additional conditions)

Shareholding holding Structure re

Top 10 10 Shareh eholder ers s [as at 28/02/2020] %

1 Sri Trang Holding (“STH”) 22.38 2 Sincharoenkul family 18.75 3 Thai NVDR Co., Ltd 6.63 4

  • Mrs. Promsuk Sinchareonkul

2.93 5 CITIBANK NOMS SPORE PTE LTD 2.63 6 Thai R.T.N. Holding Co., Ltd. 2.46 7 CITIGROUP GLOBAL MARKETS LIMITED-PB CLIENT-NRBS COLLATERAL 1.72 8 SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 1.62 9 UOB KAY HIAN PRIVATE LIMITED 1.47 10 BANK JULIUS BAER & CO. LTD, SINGAPORE 1.21

Sinc ncha haroe roenk nkul ul Fami mily 19% 19% STH 22% 22% Thai NVDR 6% 6% Thai Instit stitut utions ns 5% 5% Foreign gn Instit stitut utions ns 20% 20% Others rs 28% 28% 34 34

slide-35
SLIDE 35

Group up St Structur ucture

35 35

slide-36
SLIDE 36

Aw Awar ards ds in n te term rms of ESG

[The Business Social Compliance Initiative(BSCI) is a leading supply chain management system that supports companiesto drivesocial complianceand improvements within the factories and farms in their global supply chains.]

36 36

slide-37
SLIDE 37

37 37 Conta tact t Investor stor Relations tions Tel:(+66)2-207-4500 Ext. 1402 E-Ma Mail il:IR@sritranggroup.com