Thantawan Industry PCL · SET:THIP
Thantawan Industry PCL — Thantawan Industry — Q3 2020 Earnings Presentation
23 slides from Thantawan Industry PCL's earnings presentation, Nov 16, 2020
Slide 1: Analyst Meeting Nov 16, 2020
Analyst Meeting Nov 16, 2020 10.00 – 12.00 am. Meeting Room1, Suntower A 2563 / 2020
Slide 2: Agenda
AGENDA ▪ Business overview ▪ Financial performance ▪ 2020 Outlook & Future plan
Slide 3: Business Overview
BUSINESS OVERVIEW VISION: To be The Leading Innovative Packaging Solution Provider Worldwide THIP is world leading innovative packaging solution provider Main Products which generate major sale volume are Resealable bags Establish in 1978 and first well known product was “Thantawan Straw” or “หลอดทา
Slide 4: Production Capacity and Utilization
BUSINESS OVERVIEW 1. OMYAI PLANT 2.TOUNGTANA PLANT PRODUCTION CAPACITY AND UTILIZATION ▪ Total Area : 47,000 sqm ▪ Total Area : 7,500 sqm ▪ Total Building : 11 sub-plants, 2 WH ▪ Total Building : 2 sub plants, 1 WH CAPACITY OUTPUT %UTILIZATION ▪ Total Capabilities : 21,000 tons/year ▪ Total Capabili
Slide 5: Our Product Portfolio
OUR PRODUCT PORTFOLIO YTD’20-PRODUCT PORTFOLIO MARKET EXPANSION YTD 2019 VS 2020 Sales YTD: 2,346 MB North America portion14% (+48%YOY) East Asia portion 10% Europe portion 53% (+49% YOY) (+3%YOY) OBM 5% Others General Bags and Gloves 6% 5% Straws 7% ASEAN portion 1% (+22% YOY) Slider Bags 8% Austra
Slide 6: Own-Brand Products: Product Category
OUR OWN-BRAND PRODUCTS PRODUCT CATEGORY
Slide 7: Products Marketplace: Domestic Industry / Online, Export
OUR OWN-BRAND PRODUCTS PRODUCTS MARKETPLACE ▪ DOMESTIC – INDUSTRY / ONLINE Source: www.sunmumshopping.com ▪ EXPORT VN PHL MYS IDN
Slide 8: Products Marketplace: Domestic Modern Trade / Online
OUR OWN-BRAND PRODUCTS PRODUCTS MARKETPLACE ▪ DOMESTIC – MODERN TRADE / ONLINE Source: www.sunmumshopping.com
Slide 9: Products Marketplace: Domestic Modern Trade / Online
OUR OWN-BRAND PRODUCTS PRODUCTS MARKETPLACE ▪ DOMESTIC – MODERN TRADE / ONLINE เพิม่ สินค้า กระดาษ ช้อนส้อม Source: www.sunmumshopping.com
Slide 10: Products Marketplace: Domestic Modern Trade / Online
OUR OWN-BRAND PRODUCTS PRODUCTS MARKETPLACE ▪ DOMESTIC – MODERN TRADE / ONLINE Source: www.sunmumshopping.com
Slide 11: Standard Compliances & Awards
STANDARD COMPLIANCES & AWARDS STANDARD SUPPORT AGENCY ▪ STANDARD & QUALITY SYSTEM CERTIFIED ISO 9001:2015 TIS 685-2540 of Plastic Toy ISO 14001:2015 TIS 776-2552 of Plastic Straws for Food ISO 50001:2011 ▪ HONORS & AWARDS WINNER Visionary Board Award Excellent CG score ▪ ALL DESIGN & INNOVATION AWAR
Slide 12: Agenda
AGENDA ▪ Business overview ▪ Financial performance ▪ 2020 Outlook & Future plan
Slide 13: Sales Revenue
SALES REVENUE Sales growth in Q3’20 from both customer expansion and growing demand after COVID shutdown. +17% YoY CAGR+7% 3,052 3,026 901 2,898 443 445 11% 2,678 426 (15%) (15%) 772 (15%) +30% QoQ 390 2,348 (15%) 14% 696 Domestic 351 15% CAGR+6% (15%) 2,472 2,609 2,581 89% 2,288 (85%) (85%) Interna
Slide 14: Market Portfolio by Geography
MARKET PORTFOLIO BY GEOGRAPHY TOTAL SALES Q3-2019 TOTAL SALES Q3-2020 TOTAL SALES-2019 VS 2020 772 TOTAL +17% 901 North America East Asia Thailand 466 Australia East Asia Europe +14% 10% 8% 530 ASEAN North America 13% 9% Australia 4% Others 74 4% Others North America +67% Thailand 1% 123 2% 16% 1% 1
Slide 15: Our Portfolio Sales
OUR PORTFOLIO SALES Sales by main product group Zipper and Slider Bags Shrinking demand in drinking straw from global anti-plastic but Zipper bags and slider bags are both the key driver. urbanization trend and hygiene concern boost up sales of resealable bags. 901 3,052 3,026 2,892 5% 6% +16% 2,678
Slide 16: Profit
PROFIT Record high of %GP in Q3’20 from both low raw material cost as well as Gross Profit productivity improvement. Unit: Million baht 26% Resin Price in 2016-2020 21% 21% 233 1,400 164 145 1,300 1,200 Q3 ’19 Q2 ’20 Q3 ’20 USD/ton 1,100 Net Profit Unit: Million baht 13% 10% 1,000 8% 116 79 900 59 8
Slide 17: Sustainable Growth and Earning
SUSTAINABLE GROWTH AND EARNING Free of Interest-bearing debt and high cash level make us ready for future inorganic growth. %Dividend Yield D/E Ratio 6.7 5.3 4.2 0.32 0.30 2.8 0.28 0.25 2.4 0.24 0.22 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Q3’20
Slide 18: Agenda
AGENDA ▪ Business overview ▪ Financial performance ▪ 2020 Outlook & Future plan
Slide 19: Global Resealable Packaging Industry & Trend
GLOBAL RESEALABLE PACKAGING INDUSTRY & TREND In 2020, Resealable bag market was worth $20 billion with CAGR of 7.2% to reach $32 billion in 2027, while the Zippers packaging accounted for 20% of the total Size and growth Packaging megatrends are expected to evolve in response to the COVID-19 crisis
Slide 20: Zipper Markets Size and Growth by Country
ZIPPER MARKETS SIZE AND GROWTH BY COUNTRY USA is the main market of North America while ASIA has the highest consumption USA Market Size&Growth JAPAN Market Size&Growth Unit:$ Million 425 Mio.THB Unit:$ Million 307 Mio.THB +8% 1,107 1,133 THIP = 14 Mio.USD +9% 380 382 1,035 326 346 THIP = 10 Mio.USD
Slide 21: Strategy Beyond COVID-19
STRATEGY BEYOND COVID-19 Strategic Direction on Business ▪ Increase own-brand ▪ Market ▪ Expedite online-volume Expansion ▪ Penetrate ASEAN market and expand USA sales revenue ▪ Product ▪ Offer innovative products with circular economy concept Development ▪ Build brand awareness Business ▪ Capacity
Slide 22: Sustainable Design Concept
SUSTAINABLE DESIGN CONCEPT ▪ CIRCULAR ECONOMY Focus on Products / Material & Process / Business Model Re-Think/reduce Re-Use Re-Pair Re-Cycle Re-Newable Re-Cover
Slide 23: Disclaimer
DISCLAIMER This document is addressed solely to participants of the meeting for the purposes of their information only and is not to be distributed, in whole or in part, to any other person without prior written consent of Thantawan Industry PLC. (“THIP”). This document and the information contained