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



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 : 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 : 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 : 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 : 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



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 : Value Chain



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



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



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



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



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



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%



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



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



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

polyplex (thailand) plc (ptl) presentation at …...2017/03/16 · india, thailand, turkey and usa...

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