Evergreen Fibreboard Bhd. · MYX:EVERGRN
Evergreen Fibreboard Bhd — Shareholder Meeting (May 2017)
22 slides from Evergreen Fibreboard Bhd's shareholder meeting presentation, May 19, 2017
Slide 1: 26th Annual General Meeting
26TH ANNUAL GENERAL MEETING Briefing on FYE2016 Financial Results
Slide 2: Disclaimer
Disclaimer This corporate presentation may contain forward-looking statements. All statements other than statements of historical facts contained in this presentation. Including, without limitation, those regarding our financial position, business strategies, plans and objectives of our Group for fu
Slide 3: Table of Contents
Table of Contents About EVERGREEN Financials Business Overview Strategies Company Updates 3
Slide 4: About EVERGREEN
About EVERGREEN
Slide 5: EVERGREEN – A Quick Snapshot
EVERGREEN – A Quick Snapshot Started in 1972 as a timber trading and veneer manufacturing company Across 45 years of track record, the Group has grown from a single product unit to a multi-product entity (e.g. veneer to laminates, to medium density fibreboard (MDF) and particleboard (PB), and th
Slide 6: Financials
7 ”" * FINANCIALS
Slide 7: FY16 Financial Performance Review
FY16 Financial Performance Review Group revenue in FY2016 remained resilient in FY FY FY spite of challenging market environment. RM’m 2014 2015 2016 GP & PAT margins saw progressive growth largely Revenue 918.8 1,012.3 997.8 attributable to favourable exchange rates & cheaper raw material price
Slide 8: Stronger Financial Position to Face Challenges
Stronger Financial Position to Face Challenges RM’m 2015 2016 Increased PPE reflects investments to PPE 846.1 975.9 modernize machineries that will improve Group’s performance in FY2017 and beyond Non-Current Assets 102.5 95.1 Cash of RM160.3m reinforces the ability to Current Assets ex Cash 382
Slide 9: Improved Financial Flexibility to Pursue Growth
Improved Financial Flexibility to Pursue Growth RM’m 2015 2016 Faster collection and inventories reduction Operating cash flows before efforts resulted in 81% increase in net cash 191.4 168.3 INFLOW from operating activities of working capital changes Changes in working capital RM223.8mil and othe
Slide 10: Business Overview
Business Overview
Slide 11: What We Do
What We Do RTA Medium Density Fibreboard (MDF) Furniture 5% Manufacturing of MDF, an Value-Added engineered wood product made MDF by breaking down hardwood or 15% softwood residuals into wood fibres, combining it with wax MDF and resin binder to form panels. 80% Value-added products include melamine
Slide 12: Global Footprint
Global Footprint Africa South Asia 1% Far East Asia 3% 2% America 4% Europe 4% Middle East 48% South East Asia 38% Revenue Far East FYE 2016 Far East Africa Asia Asia Africa South Asia 3% South Asia 2% 4% 4% 3% 4% America America Middle 5% 4% East Europe Middle Europe 39% 2% East 2% 45% South East S
Slide 13: Largest MDF Producer in ASEAN
Largest MDF Producer in ASEAN (‘000) MDF PB Resin RTA (m³) (m³) (MT) (m³) Hat Yai, Thailand Malaysia 620 250 192 12.5 MDF Manufacturing 600,000 m³ Power Generation 18MW Thailand 570 - - - Gurun, Kedah Indonesia 120 - 60 - Resin Manufacturing 96,000 MT Total 1,310 250 252 12.5 Nilai, Negeri Sembilan
Slide 14: Strategies
7 ”" * Strategies
Slide 15: Earnings Growth and Sustainability
Earnings Growth and Sustainability NEW AUTOMATED LINES NEW CATALYST Cost Rationalisation via new Increase Value-Added Products highly automated lines with Higher Margins DISPOSAL OF IMPROVE OPERATIONAL NON-CORE ASSET EFFICIENCY Carve-out of Non-Core & Low Restructure, Upgrade and Performing Asset Mo
Slide 16: New Catalyst
New Catalyst Batu Pahat RTA Plant Objective: Diversify and focus on expanding downstream business with higher margins by acquiring additional RTA furniture lines to increase RTA output capacity Machine: New Italian fully-automated RTA furniture line How: Computer-input settings allows for mu
Slide 17: Restructure and Refurbishment
Restructure and Refurbishment Masai MDF Plant Objective: Consolidate and refurbish to improve machine capability, reduce transportation costs and achieve cost savings through synergistic operations What: Dismantle, refurbish and reinstall Masai MDF line at Segamat plant Why: Urbanisation of
Slide 18: Replace, Upgrade & Modernise / New Catalyst
Replace, Upgrade & Modernise / New Catalyst Segamat Integrated Plant Objective: Produce premium PB with higher margin by replacing, upgrading and combining multiple manufacturing lines, increasing PB production output through streamlined operations Machine: State-of-the-art press unit from Germa
Slide 19: Disposal of Non-Core Asset
Disposal of Non-Core Asset Non-Core Asset Objective: Dispose non-core assets from relocated operations and low performing assets What: 13 acres of land at the discontinued Masai plant In the midst of shifting machineries and equipment to a new site in Segamat 19
Slide 20: Company Updates
Company Updates
Slide 21: Corporate Exercise Updates
Corporate Exercise Updates Private Placement The private placement of 51.29 million new shares was completed on 1 December 2015 with RM105.14m raised Proceeds utilisation updates :- RM’m Proposed Utilisation Actual Utilisation Balance Development & business expansion 40.00 40.0 - Repayment of bo
Slide 22: Thank You
7 ”" * Thank You
Evergreen Fibreboard Berhad — Shareholder Meeting (May 2017) on 6ix