POLYPLEX (THAILAND) PLC (PTL) Presentation at …...2017/03/16 · India, Thailand, Turkey and USA...
Transcript of POLYPLEX (THAILAND) PLC (PTL) Presentation at …...2017/03/16 · India, Thailand, Turkey and USA...
Thursday, 16 March, 2017
POLYPLEX (THAILAND) PLC
(PTL)
Presentation at the
SET Opportunity Day
Website : www.polyplexthailand.com
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex● Brief Background
● Global Presence
● Group Structure
● Group Capacity
● Long term Strategy
● Value Chain
PET Film ● An Introduction
● Key Segments
Key differentiators● A Clear Competitive Advantage
● Product offering
● Systems & Processes
Financial Highlights 2016-17 (9M)
Industry Outlook
Business Outlook
Q&A
Contents
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Global player with a presence in all key geographies - manufacturing facilities inIndia, Thailand, Turkey and USA complemented by an extensive network ofsales & representative offices and warehouses
Principal business is Polyester (PET) film – a plastic film used in flexiblepackaging and a range of industrial applications.
Integrated operations – captive raw material & a diverse portfolio of downstreamproducts
Total Revenue of THB 12.3 billion and EBITDA (excl. FX loss and impairment) ofTHB1.8 billion (15% of revenue) in FY 2015-16 at PTL Consolidated level
A strong & liquid Balance sheet with low level of leverage of 0.31x as on31-Dec-16 (PTL consolidated - Debt only, net of cash & cash equivalents)
PTL consolidated net worth of THB 9.6 billion as on 31-Dec-16
Polyplex : Brief background
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex : Global Presence
5 Manufacturing Locations in 4 countries
Representative Office / WH in additional 10 countries
USA
MexicoChina
Thailand
Malaysia
India (2)
Turkey
Poland
South Korea
Germany & NL (2)
Italy
Spain
Singapore
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex : Global Presence
India SEA/Far East Asia Europe North America
(Khatima/Bazpur: India) (Rayong: Thailand) (Corlu: Turkey)
(To add from Ashok
Sharma
(Decatur, AL, USA)
2 Thin PET lines
1 Intermediate PET line
1 BOPP line
4 Metallizers
1 Offline Silicon Coater
2 Offline Chemical Coaters
2 PET Resin Plants
2 Thin PET Lines
1 Thick PET Line
1 CPP Line
1 Blown Film Line
4 Metallizers
1 Offline Silicon Coater
2 Extrusion Coaters
3 PET Resin Plants
2 Thin PET Lines
4 Metallizers
2 Offline Chemical Coaters
1 PET Resin Plant
1 Thin PET Line
2 Metallizers
1 PET Resin Plant
Warehouses in India WH/Trading Co. in China
and Rep. Offices in Korea
& Malaysia
WH/Trading Co. in
Netherlands and WH in
Germany, Italy, Poland and
Spain
Warehouses in Mexico &
USA
Integrated Diversified Strategically Located
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex : Group Structure
Polyplex Corporation Limited( PCL / Polyplex India)
INDIA
Polyplex (Asia) Pte.Ltd(PAPL / Polyplex Asia)
SINGAPORE
100%
Polyplex (Thailand) Public Co. Ltd.(PTL / Polyplex Thailand)
THAILAND
33.81%
17.19%
Polyplex Trading (Shenzhen) Co. Ltd.(PTSL / Polyplex China)
CHINA
Polyplex (Singapore) Pte. Ltd. (PSPL / Polyplex Singapore)
SINGAPORE
Polyplex America Holdings Inc.(PAH) USA
100%
100%
100%
Polyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi(PE / Polyplex Europa)
TURKEY
Polyplex USA LLC(PU / Polyplex USA)
USA
100%
100%
TRADING & DISTRIBUTION
MANUFACTURING COMPANY
INVESTMENT COMPANY
OUTSIDE INTEREST
EcoBlue LtdTHAILAND
Private Investor
Public/ Institutional Shareholder
100%
Polyplex Europe B.V.(PEBV / Polyplex Netherlands )
NETHERLANDS
Polyplex Paketleme Çözümleri Sanayi ve Ticaret Anonim Şirketi(PP / Polyplex Turkey)
TURKEY
100%
Investment and Trading & Distribution
33.5%
66.5%
49%
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex : Group capacity
Note: Polyplex’s attractive product portfolio is a key differentiator as compared to competition
55,000
- - -
42,000
- - -
58,000
- -
31,000
- -
-
- - -
28,800
- - -
-
- -
-
- -
35,000
- - -
-
- - -
-
- -
-
- -
-
- - -
10,000
- - -
-
- -
-
- -
-
- - -
4,645
- - -
-
- -
-
- -
-
77,600
- -
-
80,500
- -
-
57,600
-
-57,600
-
-
-
28,500
-
-
-
21,700
-
- -
17,700
-
-
8,700
- - -
270
- - -
865
- - -
146
- - - -
100
200
300
400
500
600
700
800
900
1,000
-
25,000
50,000
75,000
100,000
BaseFilm
PETFilm
Resin
METFilm
CoatedFilm
BaseFilm
PETFilm
Resin
METFilm
CoatedFilm
BaseFilm
PETFilm
Resin
METFilm
CoatedFilm
BaseFilm
PETFilm
Resin
METFilm
PET-Thin PET-Thick BOPP CPP Blown PP PET Film Resin Metallizer Coated Films
INDIA
Mn
Sqm
MT
THAILAND USATURKEY
Polyplex (Thailand) Public Company Limited
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Complete Solution Provider for select applications such as Flexible Packaging,Photo Voltaic Backsheets, Labels etc.
Expand specialty portfolio in all chosen fields of business (Thin PET, ThickPET, BOPP, CPP, Extrusion coating, Silicon Coating and Blown PP/PE)
Efficient and cost effective “End to End” Supply chain
Local Technical Service and Sales team (GLOCAL)
Differentiation and Innovation at most optimal cost
Automation of Systems and Processes
Care for Environment
Polyplex : Long Term Strategy
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyplex : Value Chain
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Polyester (PET) Film : An Introduction
PET Film constitutes bulk of our base film capacity
It is a versatile plastic film with a wide range of applications
The industry / product is usually segmented across the following attributes:
● Thickness
Thin Films - 8-50 micron
Thick Films - 50-350 micron
There are also several intermediate thickness lines with capability across a
subset of thin and thick films
Typically there is a lack of supply substitutability between thin films lines and
thick film lines
● Application
Flexible Packaging - By far the dominant use for PET films
Industrial - A myriad of usage across several individual applications / industries
Electronic / Electrical - Another key segment of usage
● Functional properties
Films can be differentiated by type / mix of PET resins used as input, inline
coatings or variations in processing conditions
Polyplex (Thailand) Public Company Limited
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PET Films : Key Segments
Packaging
● Continues to grow – expected 7-9% for next 10 years (Historical 11%)
● Emerging economies (India/ China) – 8%-10%
● Other growing economies (SA/ SEA) – 6-8%
● Future economies – Africa
● Segment Market Share – 50-60%
Industrial & Electrical (General Purpose)
● Industrial and Consumer discretionary applications
● Economic and Technological changes influence growth
Optical
● Flat Screen
● Touch Screen
● Growth governed by changing life style and higher disposable incomes
Photovoltaic (PV)
● Significant demand growth expected
● Speed of penetration/ Cost of Module/ Government Policy will drive demand
Magnetic Media and Imaging Graphics overtaken by digitization
Polyplex (Thailand) Public Company Limited
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Key Differentiators : A Clear Competitive Advantage
Global Presence Steady Growth Focus on Differentiation
Wide Product Range Value Added Sales Sustainable Solutions
Base Films: Thin PET, Thick
PET, BOPP, CPP, Blown Film
(PP/PE)
Forward Integration: Al.Met,
AlOx Met, offline chemical
coating, silicon coating,
extrusion coating
11% = 10 Years CAGR in SalesAsia31%
North America
33%
Europe33%
ROW3%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Sal
es -
Mill
ion
TH
B
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Plain Film Value Added Film
Polyplex (Thailand) Public Company Limited
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Packaging substrates
● 8 to 350 Micron PET films
● BOPP
● CPP
● Blown PP/PE
Wide Surface Treatments Options
● One & Both side coating
● Several Chemical Treatment Types
Off-line Coated/Treated Products
● Siliconized Films
● Thermal Films (PE & EVA)
● Transparent Barrier (AlOx, PVDC etc..)
Product Portfolio includes
● Colored Films
● Digital & Print Media Films
● Shrink Film
Continuously Growing
Key Differentiators : Product offering
Polyplex (Thailand) Public Company Limited
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Key Differentiators : Systems & Processes
Products compliant with:FDA, EC, REACH andJapan Food SanitationLaw
Quality Assurance systemintegrated into our ERPsystems
TPM Work Philosophy
Reporting ofenvironmental andsocial performance asper the Global ReportingInitiative (GRI) 3.1guidelines
4 patents + 8 applicationsunder process
Well defined riskmanagement framework
Industry Memberships
Polyplex (Thailand) Public Company Limited
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Financial Highlights 2016-17 (9M)
Previous financial year hadexceptional loss items – AssetImpairment, DTA reversal andsignificant forex losses.
Overall improvement inoperational performance atThailand and subsidiaries – resultof continuous focus on productionefficiency and improvement inmargins/ rationalization of productmix
Drop in sales revenue despitehigher volumes– Lower salesrealization due to drop in key rawmaterial
Forex Gains –on forex Loanrestatement at Thailand and USA
Raw material volatility - Increasein RM in Q3 impacted margins dueto time lag in adjusting sellingprices. RM continues to be onincreasing trend.
Continued focus on Costreduction and improvement inproduction efficiency
PARTICULARS UOM 9M 2016-17 9M 2015-16 YoY %
Sales (All types of film) MT 128,591 125,867 2%
Total Revenues Mn THB 8,614 9,116 -6%
EBITDA Mn THB 1,632 (7)
Unrealized FX (loss) gain Mn THB (7) (234) -97%
Exceptional (loss) /gain - Impairment loss Mn THB - (349) 100%
Normalized EBITDA Mn THB 1,639 576 185%
Normalized PBT Mn THB 1,092 279 291%
Exceptional Tax Loss - DTA reversal Mn THB - (269) 100%
Normalized PBT (after minority interest) Mn THB 1,092 548 99%
Polyplex (Thailand) Public Company Limited
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Expected growth
● Thin PET 7-8% p.a. (driven by Flexible packaging)
● Thick PET 5-6% p.a. (driven by Optical & Solar)
Overall demand supply scenario is expected to be in customer’s favor for next 1-2 years
Trend of Asian/ Far-East Asian countries experiencing higher growth rate and the
developed economies of Europe and US witnessing lower growth rate expected to
continue.
Margins continue to be under pressure due to raw material price volatility.
Regionalized supplies preferred due to volatile crude prices, FX movement and
seasonality in businesses.
Industry Outlook
Polyplex (Thailand) Public Company Limited
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STRATEGIC FOCUS AND DIRECTION FOR NEXT 2 YEARS
Maximize Asset utilization
● Ramp up of the newer assets commissioned in 2013 & 2014 – Thick Film and Thermal Lamination line
● Further rationalization of the product mix
● Improve operating efficiencies – Focus on waste reduction and lower product down gradation
Small downstream investments considered to improve overall profitability (metallizer lines)
Expand profit margin by increasing DPAC sales (Differentiated Products, Applications andCustomers)
● Product portfolio expansion – Target to penetrate the high end segment of Thick PET film industry.
● Expand sales of niche products using newly commissioned downstream assets: Extrusion coating inThailand, Offline Coating and AlOx coating in Turkey
Improving market reach and market penetration: Move closer to the customer, offering differentiatedvalue propositions in terms of product, service and quality, investing in representative offices, distributionsetups and network of commission agents across the globe.
Continuing efforts to reduce operating costs
Reduce Net current assets ( NCA) levels –Focus on inventory reduction
Investing in sustainable business practices
● Reduce carbon footprint
● Reduce solid waste generation and water consumption
● Provide sustainable solution for film based process waste through Ecoblue – (PTL investment inrecycling business)
● Community service
Business Outlook
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Q&A
Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
The views expressed here contain information derived from publicly available sources that have not been
independently verified. No representation or warranty is made as to the accuracy, completeness or
reliability of the information. Any forward looking information in this presentation has been prepared on the
basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied
upon as a recommendation or forecast by Polyplex (Thailand) Public Co., Ltd. Nothing in this release
should be construed as either an offer to sell or a solicitation to buy or sell shares in any jurisdiction.
Thank You