Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — Q3 2024 Earnings Presentation
36 slides from Tpi Polene Public's earnings presentation, Dec 2, 2024
Slide 1: Opportunity Day – 3Q 2024 Performance
TPI Polene Public Company Limited Opportunity Day – 3Q 2024 Performance 2 December 2024
Slide 2: Disclaimer
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 TPI Polene Public Company Limited ( “The Company”) in any jurisdictio
Slide 3: Topics
Topics Background Performance Review : 3Q and 9M 2024 Trends and Outlook ESG & Sustainability 3
Slide 4: Key Assets and Features
Key Assets and Features ESG Ventures Construction Materials Specialty Polymers/Chemical Products Energy & Utilities Bio-Organic Products For Agriculture /Livestock • Green Cement - 4 lines totaling 10.8m tons clinker capacity and Healthcare Products for Humans 13.5m tons cement basis) • Current capa
Slide 5: Diversified Product Suite
Diversified Product Suite Opportunity Day 5
Slide 6: 2024 Initiatives
2024 Initiatives Green Cement Green Building Products Innovative Specialty Polymers Bio-organic Products for Food Safety and Food Security Green Energy Power Capacity Cost efficiency Opportunity Day
Slide 7: 2024: Initiatives – Sustainability Products
2024: Initiatives – Sustainability Products Green Cement/ Green Building Products* Green Innovation: HVA Products Food Safety/Food Security …towards regenerative agriculture Volume sales GR >10%, Q/Q, Y/Y Nearly 70% of segment Segment sales +47% Q/Q, 24% Y/Y sales Introduced to the market mid 3Q24 *
Slide 8: EBITDA margin comparable to peers; valuation cheaper
EBITDA margin comparable to peers; valuation cheaper Peer comparison: EBITDA margin 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 ConsMat Peer 1 - Cement & Green Solutions only 12.0% 9.8% 7.7% 4.0% 13.8% 14.3% 8.5% 9.0% 16.8% 15.2% 11.9% Peer 2 22.0% 25.0% 13.0% 7.0% 15.2% 15.4% 17.7% 24.5%
Slide 9: Share Price Performance
Share Price Performance High performing High performing Siam City Cement GULF starting to starting to see see profit taking profit taking Overall not Siam Cement, TPI attractive sector; Polene dragged low Ft mainly by negative petrochem trends; Delay in capacity but looks like bidding; lacking negat
Slide 10: Performance Review: 3Q-9M 2024
Performance Review: 3Q-9M 2024
Slide 11: 3Q- 9M P&L Snapshot
3Q- 9M P&L Snapshot THB million 9M 2024 9M 2023 % Y/Y 3Q /2024 2Q/2024 % Q/Q 3Q/2023 % Y/Y Revenue from sale of goods 26,940 33,528 (20) 9,147 8,742 5 10,838 (16) Cost of sales of goods 21,021 25,716 (18) 7,293 6,686 9 8,008 (9) Gross Profit 5,919 7,813 (24) 1,854 2,056 (10) 2,830 (35) SG& A 3,456 4
Slide 12: Segment Snapshot
Segment Snapshot Breakdown Segment 3Q24 Sales % Y/Y 9M24 Sales % Y/Y 3Q24 EBITDA % Y/Y 9M24 EBITDA % Y/Y ConsMat 58% -12% 57% -18% -13% -117% 30% -11% Specialty Polymers/Chemicals 20% -36% 20% -35% 14% -76% 15% -59% Energy & Utilities 22% 2% 22% -4% 97% 13% 55% -4% Agri & Others 0.4% 9% 0.4% 9% 1.9%
Slide 13: Performance Snapshot
Performance Snapshot Quarterly Progression 3Q 24 excl fx drop still high due to modification shutdown Takeaways: EBITDA in the 9M 2024 was down 21% Y/Y dragged particularly by the sizable contraction in 3Q 2024 that in turn was mainly due to large FX losses. Adjusting EBITDA for the forex element, t
Slide 14: Performance Snapshot
Performance Snapshot Performance Profile 9M 2024 % of Sales % of EBITDA EBITDA margin Total Assets Y/Y Growth % of TA EBITDA**/Assets Continuous asset growth ConsMat 57% 30% 12% 86,867 5% 51% 2.2% mainly on renewable power Specialty Polymers/Chemicals 20% 15% 18% 16,003 52% 9% 6.0% capacity and ESG
Slide 15: EBITDA margin quarterly
EBITDA margin quarterly FX driven In 3Q24 Energy & Utilities EBITDA margin was 64%, In 3Q24 ConsMat EBITDA margin was negative due to In 3Q24 the EBITDA margin for Specialty Polymer was a Q/Q improvement FX loss low single digit On a stand alone basis 3Q24 EBITDA margin was Without the loss EBITDA m
Slide 16: Group EBITDA Margin Quarterly and The Longer Cycle
Group EBITDA Margin Quarterly and The Longer Cycle Over the long term, the Group’s EBITDA margin has been rising since 2019 driven by : LTM EBITDA margin – breaking out: 1) Contribution from power Long term mean = 17.9% 2) Contribution from cost efficiency, cost savings program, process & product in
Slide 17: Financial Conditions
Financial Conditions 9M24 capex = THB 7.6 b Gross IBD = minus 4.0 b Net IBD = plus THB 6.3 b * 1) Accounts receivables + other receivables + 2) Inventories - 3) Accounts payables + other payables Opportunity Day 17
Slide 18: Trends
Trends
Slide 19: Trends – coal low, gas volatile
Trends – coal low, gas volatile Coal prices off the 2021/22 highs… … and volatile gas prices may influence Ft adjustments Source: Investing.com Gas price trend is constructive to higher Ft but wholesale electricity pricing has been politicized and the formula may no longer work Thus, higher gas pric
Slide 20: Variables to watch… capex budget disbursement
Variables to watch… capex budget disbursement • Government’s capex surged at the at the closing of the fiscal year – September • However, SoE investments remain below trend • Several public infrastructure projects have been announced, and roll out has begun • As expected, La Nina brought floods but
Slide 21: Gross capital formation
Gross capital formation Private activity sluggish Strong rebound in public sector capital formation Government must sustain higher gross capital formation capex to restore private sector confidence Opportunity Day 21
Slide 22: Variables to watch… private construction
Variables to watch… private construction Residential Property Still Lackluster Private sector gross capital formation was down 6% in 3Q24 Source: BOT Opportunity Day 22
Slide 23: Variables to watch… construction overseas
Variables to watch… construction overseas Short Term Potential Drivers To Help Absorb Excess Capacity In the Region • Reconstruction from flood - Dubai experienced major floods in PH: Infrastructure Project List No. of Projects Indicative Project Cost Indicative Project Cost succession & and the Pal
Slide 24: Variables to watch… manufacturing
Variables to watch… manufacturing PMI up to the end of Sept show chronically weak manufacturing globally. Spread on polymers (HDPE-NPH proxy) indicates adverse price trend as the effect of weak demand is exacerbated by continuous influx of new supply Weak Struggling to cross the 50 points line This
Slide 25: Variables to watch… manufacturing
Variables to watch… manufacturing Improved operating rates high season arrives for low intensity manufacturing (proxy is footwear) General manufacturing – footwear proxy improved as per cycle For PV application remains weak Operating rate projections based on update from market sources Source: ICIS
Slide 26: Variables to watch – manufacturing
Variables to watch – manufacturing Some signs of minor improvement in spreads; could be beneficial to TPIPL’s Specialty Polymer’s Division HVA EVA has higher price vs normal EVA but spread is about the same LDPE continues to have better spread than HD/LLDPE reflecting tight supply / better demand as
Slide 27: High HVA participation improved Q/Q
High HVA participation improved Q/Q Opportunity Day 27
Slide 28: ESG and Sustainability
ESG and Sustainability Validation and Corporate Merits Others (Update on Pending Litigation)
Slide 29: On The Path To Net Zero In TPI Green Cement and Mortar
On The Path To Net Zero In TPI Green Cement and Mortar Low hanging Deep tech TPIPL’s Task Force on Climate-Related Financial Disclosure 2023 Opportunity Day 29
Slide 30: ESG Strides in 9M 2024 – TPIPL
ESG Strides in 9M 2024 – TPIPL TPIPL Environment 1H 2024 % of Total 9M2024 % of Total 2023 2022 Waste fuel replacing coal (tons) 140,659 12.9% 185,046 12.1% 361,827 360,675 Reduction of GHG (tons CO2e) 833,313 18.5% Y/Y basis 1,100,219 -17.16% Y/Y basis 975,510 1,010,336 Recycled effluents via re-fi
Slide 31: On The Path To Net Zero: TPIPP
On The Path To Net Zero: TPIPP TPIPP – T-Ver Certificates TPIPP – Renewable Energy Certificates Opportunity Day 31
Slide 32: Validation and Corporate Merits
Validation and Corporate Merits Multiple citations for its innovative, pioneering products/processes leveraging on homegrown R&D talents For its engagement in deploying of advanced and high technologies: Opportunity Day 32
Slide 33: Validation and Corporate Merits
Validation and Corporate Merits Opportunity Day 33
Slide 34: Validation and Corporate Merits
Validation and Corporate Merits Opportunity Day 34
Slide 35: Validation & Corporate Merits
Validation & Corporate Merits Opportunity Day 35
Slide 36: Litigation Case – Pending At The Supreme Court
Litigation Case – Pending At The Supreme Court The Court ordered the Company by Environmental Acts B.E. 2535 to either Charge/ Case Case Date Plaintiff status Offense Refill Rocks Pay (Mil. Tons) OR (Mil. Baht) Sor Vor 4/2559 8/7/2015 Department of 31.52 4,047 Pending the Supreme Court Consideration
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