Slide 1: Green River Holding Co. Ltd. Results Presentation 2017
GREEN RIVER HOLDING CO. LTD. Stock Code: 8444.TT Results », Presentation » 2017
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Slide 4: Green River Holding Co. Ltd. (8444.TT)
Green River Holding Co. Ltd. (8444.TT)
Slide 5: GRH group structure
GRH GPT GP GRW HM GRP TDICs TNR 4
Slide 6: Applications by our customers
Applications by our customers: Kitchen Cabinets 、Office furniture 、Drawer Units 、Flooring 、Pallets 、Speaker Boxes、Green Buildings 、Eco-Friendly Engineered Building Products 5
Slide 7: Applications by our customers
Applications by our customers: Table tops、Chairs 、 Floorboards、Engineered Building Products and other Decorative Products 6
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Slide 9: 2.1 Development of PB Industry
2.1 Development of PB Industry @ Production: 2.58 Million M? @ Production: 39.21Million M3 @ Population: 604 Million @ Population: 743 Million @ Consumption:4M?/capita‘000 @ PB: 66% of Wood Panels @ Consumption: 50M?/capita‘000 @ Production: 15.15 Million M? @ Population:3.92 Billion @ Production: @
Slide 10: Branches, PB Factory, Sawmills
Branches PB Factory Particle Board 40% Slabs 65% 30% Logs Sawmills Solid Wood 60% 30%
Slide 11: European Forest Resources
European Forest Resources 10 Note 1: FAO-Global Forest Resources Assessment 2015
Slide 12: Asian Forest Resources—The logging ban in nature forest
Asian Forest Resources—The logging ban in nature forest 11 Note1:8th National Forest Inventories (2014)
Slide 13: 2.2 PB encourages sustainable forest development
2.2 PB encourages sustainable forest development PB Production in Europe (M3) 50 1,945% 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 > 40 Years Source: FAOSTAT Forestry; summarized by GRH oe
Slide 14: PB Production in Asia
PB Production in Asia (M3) 12 years 13
Slide 15: Reduce Recycle Recover Reuse
Reduce Recycle Recover Reuse 14
Slide 16: 2.3 PB-Environmental Friendly
2.3 PB-Environmental Friendly Reduce: Particle board manufacturing makes optimal use of residuals and by- products from the forest products industry, turning this waste and recycled material into higher-value products. By its very nature, particle board is among the greenest products available for a
Slide 17: 2.3 PB-Environmental Friendly
2.3 PB-Environmental Friendly @Recoverinten: “* The energy needed for PB production can use the wood waste generated in its own production process as a biomass fuel, reducing the pollution caused by using fossil fuels. «+ It provides a carbon neutral substitute for fossil fuels. Since it only return
Slide 18: 2.3 PB-Environmental Friendly
2.3 PB-Environmental Friendly oR eu S e: [EEA] vroducts »spiration New offers Services New Lower Price Search Q Bea ve Disca rded PB furniture soon ee sonet anthracite can be reused as $78.00 material for PB’ s production. Write a review Design on the environment’s terms. We made this durable kitche
Slide 19: 2.3 PB-Environmental Friendly: Recycle
2.3 PB-Environmental Friendly Recycle: «+ In US, to achieve Eco-Certified Composite (ECC) Sustainability Standard, particle board must be made from a minimum of 75% recycled or recovered fibre; OR at least 50% recycled or recovered fibre AND a minimum of 5% post-consumer fibre.(Note1) «+ According t
Slide 20: Production volume forecast
million m³ 44M 45 40 12% 35 7% 30 25 2% 20 71% 15 10 Source: FAOSTAT Forestry 5 0 2000 2012 2020f Source: POYRY(forecast 2012~2020) 19
Slide 21: 2.4 Asian PB Market is promising
/ 2.4 Asian PB Market is promising ¢ > > 25 Continuous Press Lines 256 PB production Total Production Volume 2016 China lines in China by 5.5 million M?/year Total Production late 2016 F la Volume 25.72 Production Multi-daylight Press Lines Million i 17 eons MB Average Production Volume a 50 thousan
Slide 22: Green Manufacturing Is Only Way to Go for China Wood-based Panels
• • Note1:QIAN,XIAO-YU (Note2) ” Green Manufacturing Is Only Way to Go for China Wood-based Panels Industry” (2016/12) Note 2: QIAN,XIAO-YU, the vice chairman of fibreboard committee of China National Forest Products Industry Association 21
Slide 23: Wood panel mix: MDF, PLY, PB
MDF 25% PLY PB 9% 66% Source: FAOSTAT Forestry ;Summarized by GRH 22
Slide 24: 2.4 Asian PB Market is promising
2.4 Asian PB Market is promising ¢ : , @ Range of Application for Particle Board in Asia > PB in Asia is mainly used for the manufacture of Wooden furniture. > Sources of raw material for Wooden Furniture are: Plywood Wooden Furniture | > Furniture made from engineered wood could be distinguished by
Slide 25: 2.4 Asian PB Market is promising
ont /, ay 2.4 Asian PB Market is promising ¢. +- @ Customized Furniture market has expanded in China which > improves the demand for particle board in wooden furniture. 2016 was named the first year of Chinese customized furniture: Ready-made furniture using engineered wood panels was mainly made fr
Slide 26: 2.4 Asian PB Market is promising
2.4 Asian PB Market is promising ¢ @Wide range of applications is expected. Applications Kitchen Cabinets Furniture(H&O) Countertops Asia ww ww Europe Door cores Floor underlayment Manufactured home decking Shelving Stair treads {C48 © OOK 25
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Slide 28: 3.1 Competiveness
3.1 Competiveness High production efficiency Logistcal Advantages 27
Slide 29: GPT designed capacity
GPT designed capacity Green River 300,000 420,000 Vanachai 950,000 MIECO 600,000 HeveaBoard 460,000 0 400,000 800,000 1,200,000 Source: Panel Products Industry Club(2017/July) 28
Slide 30: 3.1 Competiveness
3.1 Competiveness Fle ri \/ i Green River to build third PB line, featuring SE Asia’s longest Continuous press....... http://www.panelsfurnitureasia.com/ebook/PFA_JanFeb2018/22/index.html 29
Slide 31: 3.1 Competiveness
3.1 Competiveness @ Abundant material resources > Located in rubber plantations Green River * Single species in material to ensure quality consistency. * Rubber woods are planted as high value cash crops rather than ordinary forestry. Rubber trees are fell and replanted as latex productivity decline
Slide 32: Rubber plantation area in Thailand
North East 520,699(ha) Northern 105,462(ha) Central 346,736(ha) Southern The Thai Rubber Association(2015) 1,920,407(ha) GPT GP 31
Slide 33: Designed Capacity vs Actual Capacity
Production/M3 Designed Capacity Actual Capacity 600,000 500,000 500,000 420,000 400,000 300,000 300,000 200,000 100,000 - GP1 GP2 GPT 32
Slide 34: 3.1 Competiveness
3.1 Competiveness @ Heart of ASEAN, situated at the transportation hub —" Japan “8 China South Korea India Philippine Sea Indonesia
Slide 35: Revenue 2012-2017 (NTD billion)
2016/06 : NTD billion PB Line 2 starts production 4.0 3.46 (115M USD) 3.5 3.0 2.83 2.5 2.33 2.34 2.02 1.95 2.0 1.5 1.0 0.5 - 2012 2013 2014 2015 2016 2017 34
Slide 36: Sales Revenues by product
Sales Revenues by product Particle Boards Solid Woods 100% 30% |__| ——— = 60% |-—— ee Se = <= ———=e i el Tao 67% 20% |— ——— —— —= 0% 2015 2016 2017 35
Slide 37: Sales by region
India Vietnam India Vietnam 0.62% 2.02% 1.32% 3.21% Middle Middle Indonesia Indonesia East East 22.93% 17.53% 0.70% 1.09% Other China China Other 2.25% 18.94% 15.42% 0.61% Korea 9.88% Malaysia Malaysia 47.41% 52.94% Korea 3.12% 36
Slide 38: Annual Margins
Annual Margins -e-Gross Profit Margin ===Operating Profit Margin-PB -e=Operating Profit Margin <=2=Operating Profit Margin-Solid wood 40% 36% 30% 20% 17% 17% a 15% 10% 13% 0% Sos 0% 0% << -10% -6% 2012 2013 2014 2015 2016 2017 37
Slide 39: 3.2 Operating Performance
3.2 Operating Performance NTD dollar EPS 10.0 948 9.0 8.0 7.0 6.0 5.0 - 3.93 as 3.0 2.6 2.0 10 0.65 0.0 = 2012 2013 2014 2015 2016 2017 7.14 38
Slide 40: 3.2 Operating Performance
3.2 Operating Performance Operational Efficiency NTD/000' ITEM 2014 ~—=2015 2016 2017 See 633,896 405,065 703,964 ABORTED) Cash Conversion Cycle 22days 21days 18 days 22 days EBIT 287,070 304,671 652,026 —«825,898 TORT esas 8.19 10.20 10.64 10.85 Multiples 39
Slide 41: Financial Ratios & Dividends Distribution
3.2 Operating Performance Financial Ratios & Dividends Distribution 2014 2015 2016 2017 Debt Ratio 47% 49% 51% 66% ROE 17% 14% 23% 26% EPS 3.93 4.20 7.14 9.48 Dividend-Cash (NTD) 2.00 2.20 3.1 4.2 Dividend-Stock (NTD) - - 0.1 - Payout Ratio 51% 52% 45% 44% 40
Slide 42: NTD Baht MYR
25.88 11.92 11.86 14.38 6.58 -6.82 8.15 9.48 0.64 0.0913 0.1194 0.13 -0.3 0.0364 NTD Baht MYR MYR CYN CYN HKD 15.66 14.76 5.15 6.76 34.67 - 11.91 370.1M 446.70M 62.34M 109M 698.33M 571.64M 32.88M 17.12 9.29 14.58 11.35 5.67 -53.8 6.02 41
Slide 43: Q&A
Q&A
Slide 44: Disclaimer
Disclaimer @ This presentation contains forward-looking statements based on a number of factors such as economic conditions and industry environment which subject to significant risks and uncertainties. @ The actual operating results, financial condition and the business prospects may be different f