TPBI Public Company Limited - Opportunity Day Presentation Aug 15, 2019 - Set
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TPBI Public Company Limited
Opportunity Day Presentation
Aug 15, 2019
www.tpbigroup.com
Disclaimer
• The information contained in this presentation is for information purposes only and does not constitute an
offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in TPBI
Public Company Limited (“TPBI”) in any jurisdiction nor should it or any part of it form the basis of, or be
relied upon in any connection with, any contract or commitment whatsoever.
• In addition, 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 and its directors. You are cautioned not to place undue reliance on these forward
looking statements, which are based on the current view of the management of the Company on future
events. No assurance can be given that future events will occur, that projections will be achieved, or that the
Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or
revise any forward-looking statements, on the basis of any subsequent developments, information or events,
or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,”
“estimates,” “projects,” or words of similar meaning. Such forward-looking statements are not guarantees of
future performance and actual results may differ from those forecast and projected or in the forward-looking
statements as a result of various factors and assumptions.
www.tpbigroup.comAgenda
Section 1 About TPBI Group
Section 2 Business Overview
Section 3 Financial Highlights
Section 4 Future Plan
www.tpbigroup.com Page 3TPBI Group Overview
Company Profile Share Summary
Number of Shares Outstanding (mm) 416.88
• TPBI Public Company Limited (“TPBI”) was
established by Borrisuttanakul family as a plastic-bag Registered Shares (THB mm) 416.88
trader/producer Paid-up Capital (THB mm) 416.88
• More than 30-year experience led the company Par Value per Share (THB) 1
become the leader of plastic-bag producer in Share Movement ( Apr 19 – June 19)
Thailand High (THB) 5.10
• The company was listed on the Stock Exchange of Low (THB) 4.88
Thailand in the beginning of 2Q16 Average (THB) 5.19
Average Market Capitalization (THB mm) 2,179.93
Average Daily Trading Value (THB mm) 0.23
TPBI is Thailand’s No. 1 total solution Dividend Payout Policy (%) At least 50% of net profit
provider of plastic bag, providing complete
BBLAM,Others, 9.24%
services 11.53%
✓ product design and formula development
✓ manufacturing and procurement
✓ raw material and product testing
Borrisuttanakul family, 79.23%
*Shareholder holding as of the latest book closing date
TPBI’s VISION is “To be a leading packaging manufacturer who achieves sustainable growth together with all
stakeholders”
www.tpbigroup.com Page 4
Source: Company Data, BloombergTPBI Group Products
Revenue Breakdown by Product
▪ TPBI Group’s total sales for 2Q19 is THB 1,383.33 mm, having sales proportion by products as follows:
Revenue Breakdown in 2Q19 Revenue Breakdown in 2Q18
Others
TPBI UK - 14% Others
Trading Garbage bags 16% Garbage and
Flexible Packaging
11% 29% fruit&vetgetable bags
15%
TPBI UK - 23%
Paper
5%
Multi-layer
Flexible blown film
Packaging 9%
12% Fruit&vegetable
bags
4%
Multi-layer
Vest carriers/t- Soft Loop
blown film Soft Loop shirt bags 13% Vest carriers/t-shirt bags
10% 0% 15% 24%
www.tpbigroup.com Page 5
Source: Company DataMarket Diversification
Market Diversification
▪ During 2Q19, approximately 64.93% of total sales are from exports to international markets while 35.07% are
from domestic sales.
In 2Q19 In 2Q18
Australia
12% Australia
25%
Japan
6%
Thailand
Thailand
35%
43%
UK Japan
15% 8%
Other countries UK
7% 5%
Other countries
New ZealandMyanmar 6% USA
USA New Zealand
2% 3% 5% 8%
20%
“TPBI Group distributes their different types of products to various regions to diversify the
risk of relying on a few market”
www.tpbigroup.com Page 6
Note: :*Other countries include South Korea, Singapore, Nigeria, Laos, Cambodia, etc.
Source: Company DataAgenda
Section 1 About TPBI Group
Section 2 Business Overview
Section 3 Financial Highlights
Section 4 Future Plan
www.tpbigroup.com Page 7TPBI’s Business Divisions
Global Trading Consumables Flexibles Paper
Product Mix: Product Mix: Product Mix: Product Mix:
• Reusable bags/ Piping bags/ All • Vest carrier bags/ T-shirt bags/ • Lamination film/ Barrier film/ • Flat & Satchel bag/ Block
products from Consumable, Bio compostable bags/ Fruit & Stretch hood/ Shrink film Bottom/ SOS / Tape Handle /
Flexible, and Paper divisions. Vegetable bags/ Garbage bags/ die cut SOS bags
Loop- handle/ Die cut bags/ • Packaging for frozen food,
Fashion bags/ EMAP film bags ready-to-eat food and others Production Capacity:
Key Markets: • ~ 516 million bags per year
• UK, Australia, and USA. • New Products: Roll Star/ New • Digital Printing
design garbage bags/ New Key Markets:
design bags on roll for fruit and Production Capacity: • UK.
vegetable/ Mail Order bags/ • Multi Layer Film: ~ 11,500 tons
Liner bags/ LLDPE food bags per year
• Flexible Packaging: ~ 150 million
Production Capacity: meters per year
• ~ 62,000 tons per year
Key Markets:
• Thailand, Vietnam, Singapore ,
Key Markets: Australia, and etc.
• Australia, UK, USA, New
Zealand, Japan and etc.
www.tpbigroup.com Page 8Historical Production Capacity and Utilization Rate
Consumables
100,000 84% 86% 100%
85%
80,000 78% 67% 70% 80%
Tons per year
60,000 60% • Consumables capacity is currently around
40,000 40% 62,000 tons per year
20,000 20% • Utilization rate have been in range of 67 - 86%
0 0%
2014 2015 2016 2017 2018 2Q19
Multilayer Blown Film
12,000 91% 95%
10,000 90% • Multilayer blown film capacity is currently
Tons per year
82% 81% 84%
8,000 76% 85%
80% around 11,500 tons per year
6,000 80%
4,000 75%
2,000 70% • Utilization rate have been in range of 76 – 91%
0 65%
2014 2015 2016 2017 2018 2Q19
Flexibles
150 100%
Million Meters per year
80%
67% 67% 80% • With new factory, Flexibles capacity has been
62% 58%
100 45%
60%
increased to over 150 million meters per year
50
40% • Utilization rate have been in range of 45 – 80%
20%
• Capacity expansion requires longer lead time
0 0%
2014 2015 2016 2017 2018 2Q19 than other products
Capacity Output Utilization rate
www.tpbigroup.com Page 9
Source: Company DataAgenda
Section 1 About TPBI Group
Section 2 Business Overview
Section 3 Financial Highlights
Section 4 Future Plan
www.tpbigroup.com Page 10Market Overview
Brent Crude Oil
Volume (RHS) Closing Px
100 600
500
Volume ('000)
80
• Brent crude oil price has been increasing
USD/Barrel
400
60
300 during the second quarter of 2019,
40
20
200 averaging at USD 68.47 per barrel in 2Q19.
100
0 0
Jul 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19
Resin Price
HDPE LLDPE • The resin prices are somewhat influenced
1,500 from crude oil price.
USD/MT
1,300
• The average prices of HDPE and LLDPE
1,100 were 1,061 and 1,005 per MT respectively
900 in 2Q19
ก.ค.-18 ก.ค.-18 ส.ค.-18 ก.ย.-18 ต.ค.-18 พ.ย.-18 ธ.ค.-18 ม.ค.-19 ก.พ.-19 มี.ค.-19 เม.ย.-19 พ.ค.-19 มิ.ย.-19
Foreign Exchange (THB/USD)
THB/US
• Thai Baht has been depreciated during
34
2Q19, averaging at THB 31.61 per USD
33
• TPBI revenue and cost are partially natural-
THB
32 hedged
31
Jul-18 Aug-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
www.tpbigroup.com Page 11
Source: BloombergOperating Results
Total Sales Revenue Gross Profit and Net Profit
1,383
1,224
Profit Margin
1,169
1,200 20.0%
15.0%
THB mm
9.5% 10.5%
800
10.0% 6.7%
5.0% 2.9%
400 1.4%
0.1%
-
Q2/2017 Q2/2018 Q2/2019
-
2Q17 2Q18 2Q19 Gross Profit Margin Net Profit Margin
• In 2Q19, the revenue was increased compared to same period last
Revenue Breakdown year mostly due to higher sales of Garbage bags as well as revenue
from TPBI UK, TPBI Paper and TPBI Australia.
Revenue by Product
• There are an increase in sales of Multi-layer blown film and new
1,400
173 products of TPBI UK, TPBI Paper and TPBI Australia which is in line
179 195 145 with the Company’s policy to shift into higher value-added
73
900 165 181 171 products.
THB mn
101 112 141
400
• The gross profit margin was higher due to an increase in sales of
724 736 680
higher value-added products such as garbage bags and film as well
as a recognition of gross profit from an investment in TPBI UK, TPBI
Q2/2017 Q2/2018 Q2/2019 Paper and TPBI Australia.
Consumables Multi-layer blown film Flexibles
Paper packaging Trading Others
www.tpbigroup.com Page 12
Source: Company DataOperating Results (Cont.)
Operating Result in 2Q19 compare 2Q18
In THB mm 2Q19 2Q18
YoY In 2Q19, the Company has lower profit margin compare to
THB mm % the same period last year mainly due to following factors:
Sales 1,383.33 1,224.34 158.99 12.99%
• single-use plastic bag ban policies across many countries.
Cost of Sales 1,237.68 1,141.65 96.03 8.41% However, the Company received garbage bags’ orders
from a new foreign customer since the beginning of the
Gross Profit 145.65 82.69 62.96 76.14%
second quarter which cause positive effect to the
Other Income 18.50 21.44 (2.94) (13.71%) Company. This is also in line with business transformation
policy of the Company as a result of change in customer’s
SG&A 149.57 80.00 69.57 86.97% demand of global packaging industry
EBITDA 85.71 80.86 4.85 6.00%
• High production expenses occurred from relocating of all
production capacity to new factory of the Company’s
Net Income 0.84 17.73 (16.89) (95.26%) subsidiary for lower production cost (T.A.K. packaging)
EPS (THB) 0.017 0.040 (0.023) (57.92)
Despite of these factors, the company had net profit in this
quarter. However, profitability in this second quarter is
lesser compare to the same period of previous year
GP Margin (%) 10.53% 6.75% 3.78% 56.00%
EBITDA Margin
6.20% 6.60% (0.4%) (0.06%)
(%)
NP Margin (%) 0.06% 1.45% (1.39%) (95.86%)
www.tpbigroup.com Page 13
Source: Company DataOperating Results (Cont.)
Operating Result in 2Q19 compare 1Q19
In THB mm 2Q19 1Q19
YoY To clearly reflect operating results of the Company during
THB mm % the transformation period, the Company intends to compare
Sales 1,383.33 1,356.10 27.23 2.00%
operating results between the current quarter and the
previous quarter (between 2Q19 and 1Q19). the Company
Cost of Sales 1,237.68 1,223.50 14.18 1.16% has higher profit margin compare to 1Q19 due to following
factors.
Gross Profit 145.65 132.60 13.05 9.84%
Other Income 18.50 16.72 1.78 10.66% • the Company reduces the dependence of selling single-
use plastic bag in the international markets and replace
SG&A 149.57 154.82 (5.25) (3.39%) such by expanding to new products and new markets.
EBITDA 85.71 68.86 16.85 24.47%
Production capacity of the Company has been expanded
to produce garbage bags, soft-loop bags, paper
Net Income 0.84 (19.39) 20.23 104.33% packaging and trading business.
• The Company is able to control better production cost
EPS (THB) 0.017 (0.038) 0.055 144.74%
and SG&A because of receiving many orders of
consumables from foreign customers.
GP Margin (%) 10.53% 9.78% 0.75% 7.67%
EBITDA Margin
6.20% 5.08% 1.12% 22.05%
(%)
NP Margin (%) 0.06% (1.43%) 1.49% 104.20%
www.tpbigroup.com Page 14
Source: Company DataBalance Sheet Composition
Assets Breakdown Liabilities and Equity Breakdown
(THB mm) (THB mm)
5,040 Cash & ST Investment 5,040 Interest-bearing-debt
2Q19: THB 165 mm 2Q19: THB 1,701 mm
2Q18: THB 374 mm 15.7% 2Q18: THB 1,488 mm
437 780
1,893 39.6% Inventories 5.7%
2Q19: THB 929 mm Net Debt
2,220 1,694 1,737 35.1% 2Q19: THB 2,516 mm
2Q18: THB 792 mm 30.2%
53% 444 2Q18: THB 2,130 mm
8.6%
85 A/R
1% 2Q19: THB 758 mm Share Capital
2Q18: THB 795 mm 2,610 64.1% 49.2% 2Q19: THB 417 mm
2,435 2,657 51.8% 2,478
46% PP&E
2Q18: THB 400 mm
2Q19: THB 2,657 mm
2Q18: THB 2,434 mm
2Q18 2Q19 2Q18 2Q19
Total shareholders' equity Total current liabilities
PP&E Other non-current assets Total current assets Total non-current liabilities
Key Financial Ratios
Gross Debt to Equity Net Debt to Equity Current Ratio Cash on Hand
2Q19: 0.69x 2Q19: 0.13x 2Q19: 1.09x 2Q19: 165 mm
2Q18: 0.57x 2Q18: 0.43x 2Q18: 1.31x 2Q18: 374 mm
Source: Company Data
www.tpbigroup.com Page 15Agenda
Section 1 About TPBI Group
Section 2 Business Overview
Section 3 Financial Highlights
Section 4 Future Plan
www.tpbigroup.com Page 16TPBI 2019 Outlook
Vest Carrier Bags/ T- • Continue to maintain market shares in existing market as well as obtain
Shirt Bags purchase orders from new customers in order to maximize production capacity
• Utilize production capacity shifted from Vest Carrier in order to serve stronger
Reusable Bags demands from oversea countries such as USA, Australia and other European
Consumable countries
Products
• Increase production capacity to meet an increase in demands from oversea
Garbage Bags
countries, especially from USA
• Continue to increase market shares of other plastic bags in order to optimize
Other Plastic Bags
product portfolio risk and support margins
• Invested in new Multilayer Blown Film. Focusing on sales to domestic
Multilayer Blown
manufacturer in food industry while looking for an opportunity in other market
Film
Flexible both domestic and overseas
Packaging
• New factory has been operated since Sept 2018. Currently focusing on utilize
Flexible Packaging
an increase in production capacity and enhance production efficiency
• TPBI’s paper bags production and sale base in UK will continue to increase its
TPBI UK -
Paper Bags market shares in UK and other nearby country. In addition, R&D and feasibility
Paper
study are going to be conducted for an investment opportunity in Thailand
TPBI UK - Plastic and Other • Utilize TPBI’s expertise in import and export in international market to serve
Trading Bags customer’s demand for plastic and other bags
www.tpbigroup.com Page 17Updated Actions and Future Plan
Organic Growth Inorganic Growth
Market Expansion Flexible Packaging & Film Merger & Acquisition
• Transformation project to divert • Relocation of all production • Focus in strengthen and expand
into more new products and capacity to the new factory M&A subsidiary companies.
markets. New consumables
products will help to optimize • Expected capacity (per year basis)
product portfolio risk and support • Current: 150 million meters
margins • Phase II: 200 million meters
• Expand new designs
garbage bag orders • Expand Digital Printing orders.
• Expand transformation
products capacity • Invested in new Multi Layer Blown
Film machine
• 11,500 tons per year
www.tpbigroup.com Page 18
Source: Company DataInvestor Relations
• TPBI Public Company Limited
42/174 Moo 5, Raiking Sampran Nakorn pathom 73210 Thailand
• Tel: +66 (0)2 4290354-7
• Fax: +66 (0)2 4290358
• E-mail: ir@tpbigroup.com
www.tpbigroup.com Page 19You can also read
