Sri Trang Agro-industry Public Co. Ltd. · SET:STA
Sri Trang Agro-industry Public — Investor Day (May 2015)
24 slides from Sri Trang Agro-industry Public's investor day presentation, May 18, 2015
Slide 1: A World Leading Natural Rubber Player
Investor Day Presentation 18 May 2015 A World Leading Natural Rubber Player
Slide 2: Disclaimer
Disclaimer Certain forward looking statements may be made in the course of the presentation. These forward- looking statements generally can be identified by use of statements that include words or phrases such as STA or We or our management “believe”, “expect”, “anticipate”, ”intend”, ”plan”, ”fore
Slide 3: Our Directors Present for the Investor Day 2015
Our Directors Present for the Investor Day 2015 Dr. Viyavood Sincharoenkul Kitichai Sincharoenkul Paul Sumade Lee Chairman & Managing Director Executive Director Executive Director Founding ding me member member of Sri Tra Trang and Joined Sri Tra T Tr Trang rang ang g in i 11988 88 8 and an nd
Slide 4: Agenda
AGENDA I. Sri Trang Business Highlights II. Natural Rubber Industry Snapshot III. Financial Highlights
Slide 5: Fully Integrated and Globally Natural Rubber Supply Chain
Fully Integrated and Globally Natural Rubber Supply Chain Rubber Plantation Processing Sales & Distribution Finished Products • Having our own rubber • World leading capacity at • Having trading and • Largest glove manufacturer plantation in Thailand 1.35 million tons per annum distribution centers
Slide 6: Sri Trang's Strengths
Sri Trang’s Strengths 1 Fully-integrated NR supply chain business model Plantation Processing Sales & Distribution 9 Gain direct access to supply 9 Be flexible to any market 9 First-hand understanding of information conditions and able to manage customer requirements 9 Ability to control the quality
Slide 7: Sri Trang's Strengths (cont'd)
Sri Trang’s Strengths (cont’d) 2 A world largest NR processing Company (10% market share) • Capture all possible market segments with full range of Natural Rubber products • Benefit from economies of scale • Balance the bargaining power with suppliers and customers TSR RSS Con. Latex • Enhance acces
Slide 8: Sri Trang's Strengths (cont'd)
Sri Trang’s Strengths (cont’d) 4 Well-balanced portfolio for coverage of sales and distribution • Cover all class of customers to serve all demand from every corner of the word • Good risk diversification as no single customer accounts more than 8% of our total sale volume • Get direct access to end
Slide 9: Agenda
AGENDA I. Sri Trang Business Highlights II. Natural Rubber Industry Snapshot III. Financial Highlights
Slide 10: World Natural Rubber Balance
World Natural Rubber Balance Unit : million tons 14 12 12.2 11.9 11.8 12.3 12.4 11.6 11.4 10 10.8 10.4 11.0 11.2 11.0 10.1 10.1 10.2 10.1 9.2 9.0 9.7 9.9 9.3 9.7 8 8.7 8.8 7.9 8.1 6 4 2 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015f Demand Supply Supply Surplus Unit : ‘000 tons
Slide 11: World Major NR Producing and Consuming Countries
World Major NR Producing and Consuming Countries Major suppliers of Natural Rubber Major consumers of Natural Rubber (by tonnage) (by tonnage) Others 12% India 6% Indonesia Others 26% 27% China 38% Vietnam 8% Thailand 5% Malaysia 6% Japan 6% China 7% Thailand 35% India 9% USA 8% Note: Information of
Slide 12: Lower Supply Surplus
Lower Supply Surplus NR planting area of main producers Significant drop in supply surplus Unit : 000’Hectares New planting (LHS) Unit : 000’ tons 600 Replanting (LHS) 12,500 1,000 831 Lower supply surplus due to smaller new Total area (RHS) 12,000 500 800 planting area from 2009 onwards 11,500 400
Slide 13: NR Demand Driven by Tyre Industry
NR Demand Driven by Tyre Industry NR demand mainly driven by world activities NR mainly used in tyre industry (by tonnage) 6% GDP (LHS) NR consumption (RHS) 20% 5% 15% Non-tyre 31% 4% 10% 3% 5% 2% 0% Tyre 69% 1% -5% 0% -10% -1% -15% Global vehicle trend (Million units) Global tyre production trend (
Slide 14: Natural Rubber Price Interaction
Natural Rubber Price Interaction NR price VS. fundamental demand/supply NR price VS. Oil price 6,000 300 200% (Unit : ‘000 tons) 5,000 200 150% (USD per tons) 4,000 100 0 100% 3,000 (100) 50% 2,000 (200) 1,000 (300) 0% 0 (400) -50% Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jul-07 Jul-0
Slide 15: Agenda
AGENDA I. Sri Trang Business Highlights II. Natural Rubber Industry Snapshot III. Financial Highlights
Slide 16: Financial Highlights
Financial Highlights (THB million) FY’13 FY’14 %YoY Q1’14 Q1’15 %YoY Q4’14 %QoQ Revenue 92,185 75,530 ▼18% 22,765 14,512 ▼36% 17,543 ▼17% Sale volume 1,126,463 1,204,342 ▲7% 308,456 268,892 ▼13% 326,095 ▼18% (tons) Avg. selling price 79,600 60,583 ▼24% 71,777 48,265 ▼33% 51,665 ▼7% (Baht per ton) Gr
Slide 17: THB/USD, Crude Oil and SICOM Price Movement
THB/USD Crude Oil Price SICOM Price Movement Movement Movement (USD / Bbl) (US Cent / Kg) 100 200 300 400 30 32 34 28 120 100 40 60 80 01/01/13 01/02/13 01/02/13 02/01/13 02/02/13 02/02/13 1Q13 03/01/13 03/02/13 03/02/13 04/01/13 04/02/13 04/02/13 05/01/13 05/02/13 05/02/13 2Q13 06/01/13 06/02/13 06
Slide 18: Sale Volume Breakdown by Geography (Tons)
Sale Volume Breakdown by Geography (Tons) Sales Volume – Quarterly (tons) Sales Volume – Yearly (tons) PRC Asia (Ex PRC) USA Europe Others PRC ASIA (Ex. PRC) USA Europe Others -12.8% +6.9% -17.5% 1,204,343 1,126,462 879 4,102 52,350 50,356 75,534 84,363 308,456 326,095 284,913 0 500,647 348 284,877
Slide 19: Revenue Breakdown by Product
Revenue Breakdown by Product Revenue – Quarterly (THB mm) Revenue – Yearly (THB mm) RSS TSR Con. Latex Others RSS TSR Con. Latex Others -18.1% -36.3% -17.3% 92,185 2,519 6,047 75,530 22,765 2,567 625 5,631 1,698 18,644 17,543 838 16,812 1,254 696 643 14,512 1,303 1,377 70,774 1,534 17,373 1,147 57,5
Slide 20: Adjusted GP and GPM
Adjusted GP and GPM* Adjusted Gross Profit – Quarterly (THB mm) Adjusted Gross Profit – Yearly (THB mm) THB mm Margin % THB mm Margin % -37.0% -23.3% -19.8% 1,800 10.0% 7,000 10.0% 1,708 1,600 6,000 7.7% 8.0% 6,049 1,400 7.4% 8.0% 7.5% 6.7% 1,343 5,000 1,200 6.6% 6.0% 4,642 1,129 6.0% 1,000 1,077 4,
Slide 21: EBIT
EBIT EBIT – Quarterly (THB mm) EBIT – Yearly (THB mm) Share of profits from associates & a Joint Venture % of profits from Share of profits from associates & a Joint Venture % of profits from associates & a Joint associates & a Joint Operating profits Operating profits Venture to PBIT Venture to PBI
Slide 22: Net profit and Net profit margin
Net profit and Net profit margin Net Profit – Quarterly (THB mm) Net Profit – Yearly (THB mm) Net profit Net profit margin % Net profit Net profit margin % -26.0% -43.0% +2,228.0% 500 3.0% 2,000 3.0% 2.7% 450 456 1,820 2.5% 2.5% 400 1,600 402 350 2.0% 2.0% 2.0% 2.0% 300 1.8% 1,200 297 250 1.5% 1.5%
Slide 23: Financial Ratios
Financial Ratios ROA ROE Cash Cycle 4.50% 9.19% 9.37% 83.3 7.46% 75.2 78.3 3.36% 3.59% 64.1 2.53% 5.11% FY2011 FY 2012 FY 2013 FY 2014 FY2011 FY 2012 FY 2013 FY 2014 FY2011 FY 2012 FY 2013 FY 2014 Debt / equity Net debt / equity Interest Coverage 1.22 1.10 1.12 4.00 1.21 0.86 3.87 0.94 0.73 3.74 0.8
Slide 24: Q&A
member of SRI TRANG Q&A mn member of SRITRANG chOuUr Se 23
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