monday, 23 march, 2015 website : · 23/03/2015 · concentric diversification into bopp & cpp...

Monday, 23 March, 2015

Presentation at the

SET Opportunity Day

Website : www.polyplexthailand.com

Thailand Turkey USA

© 2015 Polyplex (Thailand) Public Company Limited

Confidential Information intended for the immediate recipient only

PET Film business – Value chain

BOPET Film Industry

Polyplex group

Polyplex – Business Strategy

PTL : Financial Performance

Industry Outlook

Contents



END

PRODUCTS

PLASTIC AND INTERMEDIATE

PRODUCTS RAW MATERIALS

BASIC

PETROCHEMICALS

NATURAL

RESOURCE

S

Natural

Gas

Oil

Ethylene MEG

Para

Xylene PTA

PP

RESIN

PET

Resin B

A

S

E

F

I

L

M

S

Polyplex’s area of operation

M

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T

A

L

L

I

Z

I

N

G

C

O

A

T

I

N

G

I

N

D

U

S

T

R

I

A

L

B

U

Y

E

R

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&

C

O

N

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Polypropylene

PET Film business - Value Chain



BOPET Film Industry

BOPET is mainly segmented into Thin & Thick Films

oThin Film : 50 Micron & Under (75% of total BOPET)

oThick Film : Over 50 Micron (25% of total BOPET)

The industry capacity is mainly divided based on above Thickness segments.

Some lines are designed to produce intermediate range of Films from 12µ to 100µ

Major End use of BOPET Film are

oImaging & Graphics

oMagnetic Tape

oPackaging & Metalizing : Main Segment for POLYPLEX

oElectronics / Electricals

oOther Industrial



BOPET Global Demand & Supply

BOPET Thin Film 'KMT" 2008 2014E BOPET Thick Film 'KMT" 2008 2014E

Capacity 2,024 4,436 Capacity 738 1,489

Production 1,811 2,986 Production 597 844

Capacity Utilisation % 89% 67% Capacity Utilisation % 81% 57%

Demand 1,811 2,986 Demand 597 844

Imaging & Graphics 7 4 Imaging & Graphics 147 126

Magnetic Tape 28 13 Magnetic Tape 1 1

Packaging & Metallising 1,258 2,226 Packaging & Metallising 46 69

Electrical/ Electronics 95 233 Electrical/ Electronics 332 553

Other industrial 423 510 Other industrial 71 95

• Largest End use :Flexible Packaging - which accounts for more than two-third of total Thin Film

used.

• Thin Film demand has historically witnessed a CAGR of about 9% Per Annum (2008-14) and

expected to grow at CAGR of about 7-8%.

• Thick Film market has grown at a CAGR of about 6% per annum (2008-14) and is expected to

grow at CAGR of about 5-6%.

• The above CUF is based on “Name Plate” Capacity. Achievable peak CUF is 85%-90% for Thin

Film and 75% - 80% for Thick Film against Name Plate Capacity



Polyplex – Global Presence

Turkey: Plant 3 India : Plant 1 & Plant 4

Thailand: Plant

2

USA : Plant 5

Factories

Warehouses

•Manufacturing Locations – India (PCL), Thailand (PTL),Turkey (PE) & USA (PUL)

•Distribution Companies – USA (PUL) , China (PTSL), Netherlands (PEBV), Turkey (PP).

•Warehouses –USA/Mexico/Poland/China



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

80%

34.50%

16.50%

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

20%

Public/ Institutional Shareholder

49%

FMCG 100%

Polyplex Europe B.V.(PEBV / Polyplex Netherlands )

NETHERLANDS

Polyplex Paketleme Çözümleri Sanayi ve Ticaret Anonim Şirketi(PP / Polyplex Turkey)

TURKEY

100%

Provision of shared services

Investment and Trading & Distribution



Polyplex: Business Strategy

•We’re a fully integrated, global manufacturer of plastic films with

Concentric Diversification into BOPP & CPP

•Our vision is to continuously grow, create value and establish global

leadership in the plastic film business

•We have expanded to meet demand in new geographies and for new

applications.

•Continually balance our Product & Market Portfolio to increase stability

of our Earnings.

•Judicious mix of On-shore, Off-shore and Near-shore strategy.



GROWTH

● The investments made over last 2-3 years would help the company to achieve significant Top line growth as well as generate higher returns for the shareholders in the long run, when the new projects are ramped up to optimum capacity utilization levels.

Reducing Volatility in Earnings

● Geographic Diversification – Thin PET film line in US would help the company to increase its presence further in US which is a net importer of PET film

● Product portfolio expansion – Thick PET film line in Thailand gives the Company an opportunity to participate in high end segments of PET film industry.

● Downstream Integration – Saralam Line 2 in Thailand, Offline Coater in Turkey and the new Metallizers in Thailand and Turkey

● Upstream Integration – Blown PP line in Thailand.

Opening up of a Liaison office in Korea will help the Company to increase its presence in one of the largest market for PET film in the region (Both Thin and Thick PET)

Continuing operational efficiency to remain a focus area for the company

KEY DRIVERS FOR POLYPLEX



Polyplex Group capacities– March 2015

42,000

- - -

58,000

- -

31,000

- -

28,800

- - -

-

- -

-

- -

-

- - -

-

- -

-

- -

10,000

- - -

-

- -

-

- -

4,645

- - -

-

- -

-

- -

-

80,500

- -

-

57,600

-

- 57,600

-

- -

- -

- -

-

-

-

-

- -

21,700 -

- -

17,700

-

-

8,700 - - -

865

- - -

146

- - - -

100

200

300

400

500

600

700

800

900

1,000

-

75,000

150,000

225,000

Base Film PET FilmResin

MET Film CoatedFilm


MET Film CoatedFilm


MET Film

PET-Thin PET-Thick BOPP CPP Blown PP PET Chips Bottle Grade PET Resin Metallizer Coated Films

Mn Sqm MT

THAILAND TURKEY USA



Financial Highlights 2013-14 (9M)

PARTICULARS 9M 2014-15 9M 2013-14 YoY %

Sales -MT (All types of film)

116,372

102,730 13%

Total Revenues - Million THB 9,286 7,836 18%

EBITDA - Million THB

773

(150) 615%

EBITDA (Excluding unrealized FX gain/loss)

- Million THB 713 265 169%

Profit before Tax - From continued operations

– Million THB

247 (689) 136%

Exceptional Loss from discontinued operations

(excl. minority share) – Million THB

(126) (12) (916)%

Profit after tax - From continued operations (excl.

minority share) – Million THB

319 (460) 169%

Reported Profit after Tax (excluding minority

interest) – Million THB 194 (473) 141%



Financial Highlights – Historic Net Profit trend

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-142014-15

(9M)

Sales Revenue 3,300 4,719 6,399 6,860 7,125 11,183 10,143 9,230 10,703 9,017

Net Profits 561 342 814 1,042 1,039 3,883 1,358 402 (480) 194

NP margin 17.00% 7.24% 12.71% 15.19% 14.59% 34.72% 13.38% 4.36% -4.48% 2.15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

(1,000)

500

2,000

3,500

5,000

6,500

8,000

9,500

11,000

Ne

t P

rofit a

s a

% o

f S

ale

s

Mill

ion B

aht

Financial Year

Historic Sales revenue & Net profits (Consolidated)

Sales Revenue Net Profits NP margin

• Net Profit of 2014-15 (9M) is after the exceptional loss from discontinued operations, amounting to THB 126 million

excluding minority share. The adjusted NP margin excluding this exceptional loss is 3.54%.



Sales Mix – Increasing share of value added products

* Value added films include Chemically Coated films, Metallized Film (PET + CPP), Thermal Laminated

film, Silicone Coated film etc which have higher value addition as compared with normal plain film.

Note: Above data is for PTL (consolidated) based on Sales quantity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

81%

70% 65% 61%

60% 58% 56% 54% 51% 52%

19% 30%

35%

39% 40% 42% 44% 46% 49% 48%

Plain film Value added film



The expected global growth in flexible packaging over the next 3-4 years is about 7-8% pa

New applications like Optical & PV etc will continue to drive the growth of Thick PET film. Overall expected growth of Thick PET film to be at a rate of 5% - 6% per annum.

Dis-proportionate capacity additions in China and India have created an over supply situation. The over supply situation could last further for 1 – 2 years

Margins to remain under pressure during the over supply years but low crude oil prices to help keep the major raw material prices at low levels

Companies with low cost, better product range and global reach will have the advantage over the competition

Lower profit margins would deter new players from entering the industry for next few years. Also existing players would add capacity more judiciously.

Industry Outlook



Q&A



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

monday, 23 march, 2015 website : · 23/03/2015 · concentric diversification into bopp & cpp...

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