Sri Trang Agro-industry Public Co. Ltd. · SET:STA
Sri Trang Agro-industry Public — Investor Day (May 2012)
22 slides from Sri Trang Agro-industry Public's investor day presentation, May 15, 2012
Slide 1: A World Leading Natural Rubber Player
Investor Day Presentation 15 May 2012 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 Executive Directors of Sri Trang
Our Executive Directors of Sri Trang Dr. Viyavood Sincharoenkul Kitichai Sincharoenkul Paul Sumade Lee Chairman & Managing Director Executive Director Executive Director Founding member of Sri Trang and Joined Sri Trang in 1988 and has served Joined Sri Trang in 2004 and appointed appointed as Chair
Slide 4: Business Updates
member of SRI TRANG GROUP Business Updates member of SRITRANG GROUP Serre — ~ ne
Slide 5: Fully integrated natural rubber supply chain
Fully integrated natural rubber supply chain Sales & Finished Plantation Procurement Processing Distribution Products Thailand is the China is world Produced from world largest Thailand and Indonesia control more than largest natural Thailand and natural rubber half of world supply rubber consuming
Slide 6: World largest midstream natural rubber producer
World largest midstream natural rubber producer Ribbed Smoked Full range of natural rubber products Sheet (RSS) • Serve all downstream businesses & capture all possible market segments • Create production efficiency Excellent diversification Technically Specified Rubber (TSR) • Uniquely-diversified
Slide 7: Midstream strategy update
Midstream strategy update Capacity expansion to meet 12-15% market share Strengthen procurement capability tons p.a. 2011 (completed) RSS Latex TSR 1,600,000 1.6 m • Mukdaharn-TH 1,400,000 18% • Star expansion-IND • Streamline procurement process to get direct access to 1,200,000 1.1 m farmers/deale
Slide 8: Midstream strategy update (Cont'd)
Midstream strategy update (Cont’d) Increase coverage of customers/markets Enhance the utilisation of existing assets Nokian Tyres P.L.C Finland Hangzhou Zhongce Rubber Co. Ltd. Double Coin Holdings Ltd. • Increase utilisation rate of existing old assets, RSS and Continental A.G. Shandong Linglong Ru
Slide 9: Potential profitable growth from upstream
Potential profitable growth from upstream Thailand as our focus for upstream Chiang Rai Chiang Mai Selectively invest in suitable land Lampang • Land/soil selection is tested and approved by Sukhothai Utaradit professionals Sakon Nakhorn Pitsanulok • No investment in dispute land or forestry Pichit
Slide 10: Upstream strategy update
Upstream strategy update 8,000 ha in 2014 Thailand origination • Balance location mix for long-term management Tapping • Ensure sufficiency of saplings both from suppliers and in-house development • Get necessary supports and advice from professionals 40 ha • Synergise acorss natural rubber value ch
Slide 11: Increase competitive edge of downstream business
Increase competitive edge of downstream business Increase competitive edge of glove business Downstream strategy update 10,532 Million pieces 9,830 • Command stronger bond of customers relationship through 8% 9,557 building own brands distribution 8,778 • Strengthen leading positioning of latex glov
Slide 12: Our commitment to a better society & community
Our commitment to a better society & community Provide blood donation to Plantation Red Cross • Only develop plantations on land approved Educational tools donation by the government for the cultivation of school rubber trees • Demonstrate clear evidence of ownership of our land Donate survival bags
Slide 13: Financial Highlights
member of SRI TRANG GROUP Financial Highlights member of SRITRANG GROUP’ 12
Slide 14: A period of uncertainties
A period of uncertainties • Achieved 951,935 tons sold in FY 2011, 5% slightly below A record sale volume from our annual target due to global economic turbulence. • 265,612 tons sold in Q1 2012, up 6% YoY and 19% QoQ • Total revenue grew 60% to THB 133,704 million in FY2011. • Average selling price
Slide 15: Revenue Breakdown by Product
Revenue Breakdown by Product Quarterly (THB mm) Yearly (THB mm) RSS TSR Con. Latex Others RSS TSR Con. Latex Others -20.3% +59.5% +4.0% 133,704 2,386 36,700 10,236 35,232 617 33,636 3,177 556 2,482 660 2,519 29,266 28,136 83,845 485 553 1,932 1,721 2,059 8,169 96,139 26,257 24,776 24,726 20,380 21,9
Slide 16: Revenue Breakdown by Geography
Revenue Breakdown by Geography Quarterly (THB mm) Yearly (THB mm) -20.3% +59.5% +4.0% 15
Slide 17: Adjusted GP and GPM
Adjusted GP and GPM* Quarterly (THB mm) Yearly (THB mm) THB mm Margin % THB mm Margin % 3,500 -78.3% 10% 7,000 +18.4% 10% -42.7% 7,140 8.3% 3,000 6,000 6,049 3,030 8% 8% 7.2% 2,500 5,000 5.6% 6% 6% 2,000 4,000 5.3% 4.1% 1,500 1,970 3,000 4% 4% 2.9% 1,000 1,148 2,000 2.2% 991 2% 2% 500 658 1,000 0 0%
Slide 18: SICOM Price and F/X
SICOM Price and F/X Q1’ 11 Q2’ 11 Q3’ 11 Q4’ 11 Q1’ 12 SICOM Price Movement RSS TSR Q1’ 11 Q2’ 11 Q3’ 11 Q4’ 11 Q1’ 12 THB/USD Movement 17
Slide 19: Net profit and Net profit margin
Net profit and Net profit margin Quarterly (THB mm) Yearly (THB mm) Net profit Net profit margin % Net profit Net profit margin % -77.8% -65.4% +160.6% 1,800 8% 4,000 3,841 8% 1,783 3,500 6% 6% 1,300 4.9% 3,000 4.6% 4% 4% 2,500 800 1.4% 2% 2,000 2% 1.0% 300 0.8% 395 1,500 1,329 268 -0.2% 0% -69 0% Q
Slide 20: Return on Assets and Return on Equity
Return on Assets and Return on Equity EBITDA (THB mm) EBITDA margin 8.4% 5,579 6.7% 3,883 3,311 2.6% 2.5% 1,581 FY2008 FY 2009 FY 2010 FY 2011 FY2008 FY2009 FY2010 FY2011 ROA ROE 43.1% 36.1% 11.7% 12.6% 8.64% 9.2% 2.6% 3.4% FY2008 FY2009 FY2010 FY2011 FY2008 FY2009 FY2010 FY2011 19
Slide 21: Robust leverage and coverage ratios
Robust leverage and coverage ratios Debt / equity Net debt / equity 2.62 2.45 2.16 2.03 1.95 1.74 1.24 1.12 FY2008 FY2009 FY2010 FY2011 FY2008 FY2009 FY2010 FY2011 Interest Coverage Debt = Total liabilities Equity = Total equity 18.85 Assets = Total assets Net debt = debt – cash 10.90 Cash = cash an
Slide 22: member of
member of SRI TRANG O&A GROUP member of SRITRANG GROUP* 21
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