Thai Plaspac Public Company Limited · SET:TPAC
Thai Plaspac Public — Q2 2023 Earnings Presentation
29 slides from Thai Plaspac Public's earnings presentation, Aug 30, 2023
Slide 1: Analyst Meeting Q2'23
GLOBAL TRADE PRESENTATION Analyst Meeting LOREM IPSUM DOLOR SIT AMET Q2’23 30 August 2023 Portfolio Presentation
Slide 2: Safe Harbour Statements
Safe Harbour Statements Certain words and statements in this communication concerning THAI PLASPAC PUBLIC COMPANY LIMITED (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operatio
Slide 3: Agenda
Agenda 01 Company Overview …..4 02 Our Growth Strategy ….12 03 Financial Highlights and Key Business Update .…15 3
Slide 4: Company Overview
Company Overview 4
Slide 5: TPAC – A specialty packaging solution provider
TPAC – A specialty packaging solution provider Asia’s fastest TPAC design lab for Market leadership in customised growing packaging all our geographies** innovative company * packaging solutions Diversified Focused on customers base >90% portfolio in F&B 100% monolayer recyclable > 1500 & Pharma whi
Slide 6: New management's radical transformation since change of control in 2016
New management’s radical transformation since change of control in 2016 • Listing on SET • Green field TPAC Change of M&A 3: expansions Incorporation Control and Entry • M&A 4: completed Leadership into UAE Entry into with 2 new plants in India Malaysia • Greenfield entry into Philippines* 1983 2005
Slide 7: Rapidly growing footprint with strong emerging market focus
In the last five years, we have quintupled our manufacturing location to 17 plants & grew our footprint rapidly with a strong emerging market focus Revenue Contribution* 47% India 27% Thailand 16% Malaysia 10% UAE Manufacturing presence in the emerging markets: 9 plants 4 plants 1 plants 2 plants 1
Slide 8: Attaining market leadership in all our geographies
Attaining market leadership in all our geographies Geography Segment Market Share^ Market Position* ▪ Food & Specialty Beverages (Condiments, Spreads, ▪ Leading Rigid plastic Consumer and Oil, Dairy & Ice Creams, Specialty Beverages, Infant Pharma packaging player Nutrition, Gums and Candy, Coffee,
Slide 9: Blue chip customer base of over 1500 customers
Serving Blue Chip customer base across all our segments, in ~ 50 countries. Relationships spanning over multi-decades with a well diversified customer base of > 1500 customers. Global MNCs Pharma Giants Food Giants and Emerging players Thai Champions ✓ Top 10 contribute ~30%, ensuring a low customer
Slide 10: Differentiating through design and new product development
Differentiating through design and new product development led by global R&D team Infant Nutrition Nasal Solutions Nasal spray 3-piece system Temper evident integrated scoop and lid for tfolio for a Pharma MNC r infant nutrition po Intravenous Dispensing ld Common mou Herbs and Spices Solutions Cent
Slide 11: Rigid Monolayer Packaging = Sustainable Packaging
Rigid Monolayer Packaging (PET, PP and PE) = Sustainable Packaging Proven Rigid Monolayer mechanical Circular Packaging recyclability Packaging (PET, PP & PE) TPAC has taken a conscious choice to operate only in rigid monolayer packaging with substrate having proven mechanical recyclability Sustaina
Slide 12: Our Growth Strategy
Our Growth Strategy 12
Slide 13: Expanding addressable market and consolidating market share
Expanding addressable market and consolidating market share Market Size in Niche Market Share of TPAC in Geography Strategy / Way forward Segment Niche segment USD Mn ▪ Expand our offerings to MNC customers ▪ Increase market share in Thailand organically Thailand ▪ Grow Bangna operations after a suc
Slide 14: Our Growth Strategy over the next 3 years
Our Growth Strategy over the next 3 years. Emerging Market Focus India Scalar Play Growth Incremental and Strategy transformative M&A l Value Creation through Synergy 14
Slide 15: Financial Highlights and Key Business Updates
Financial Highlights and Key Business Updates 15
Slide 16: Q2'23 performance: Strong profitability driven by sustainable growth
Q2'23 performance: Strong profitability driven by sustainable growth Revenue Core EBITDA Core EPS Core ROE Net Debt/Equity THB 1,644 Mn THB 312 Mn THB 0.35 20% 1.04x QoQ -6% QoQ -9% QoQ -18% QoQ -514 bps YoY -8% YoY +32% YoY +121% YoY +955 bps • Q2’23 represents second highest quarter of record prof
Slide 17: Business wise performance during Q2'23
Business wise performance during Q2’23 Thailand Business India Business • Bangna turnaround complete, turning an EBITDA negative company • Subdued quarter with respect to Q1’23 in terms of both topline and into a high double-digit EBITDA margin business in a span of one year. bottom-line, attributed
Slide 18: Management response to Q2'22 cost inflation
TPAC was hit globally with sudden and dramatic cost inflation and lackluster volumes in Q2’22. This was a test for management, management needed to respond. Management has since responded. Gross Profit Core EBITDA THB Mn THB Mn Management’s response since Q2’22: 1. Add more customers, increase walle
Slide 19: Sustained growth momentum in 2023 profitability
Sustained growth momentum in 2023 profitability on the backdrop of strong H1’23 Revenue Core EBITDA Core EPS THB Mn THB Mn THB H1’23 • Strong growth in the topline and bottomline over the last 5 years giving us the title of Asia’s fastest 01 growing packaging company. 02 • H1’23 Core EPS of THB 0.78
Slide 20: Delivering amidst destocking and high-cost inflationary environment
Delivering amidst destocking and high-cost inflationary environment H1’22 A H2’22 A H1’23 A Δ1 Δ2 Core EBITDA 499 582 654 31.1% 12.4% (THB Mn) Core EBITDA 14.6% 16.2% 19.3% NA NA % Core EPS 0.44 0.57 0.78 77.7% 36.8% (THB) Note: 1. H1’23 A vs H1’22 A 2. H1’23 A vs H2’22 A 20
Slide 21: Strong operating cash flows with Core EBITDA conversion above 80%
Strong operating cash flows generation with a Core EBITDA conversion rate of > 80%. Core EBITDA Operating Cash Flow TPAC is able to generate a healthy cash flow from operations, while growing Core EBITDA at ~ 30% CAGR in last 5 Years 21
Slide 22: Investing 45-50% of Core EBITDA into organic capex
With a strong management team in place in high growth geographies and presence in attractive segments, we are now geared to invest ~45% to 50% of our Core EBITDA into organic capex. Core EBITDA Organic Capex Outflow E H2’FY23 to witness a rise in capex intensity with almost doubling of capex in seco
Slide 23: Continuously deleveraging while investing for growth
Continuously deleveraging over the past one year, while investing for growth Sharp improvement in Net Debt to Equity and Net Debt to LTM Core EBITDA 23
Slide 24: To Summarize
To Summarize Key takeaways Outlook • TPAC is a Specialty packaging solution provider, • Management remains optimistic on sustaining operating in attractive resilient sticky segments of food growth momentum. and pharma, where customers demand differentiated offerings. • Organic growth capex intensity
Slide 25: Making Packaging Better
Making Packaging Better IR Contact: IR@TPACPACKAGING.COM Tel. 02-897-2250-1 Ext. 510 Website: https://www.tpacpackaging.com 25
Slide 26: TPAC Group Corporate Structure
TPAC Group Corporate Structure Thai Plaspac Public Company Limited (Listed on SET) TPAC Packaging (Bangna) TPAC Packaging India Sun Packaging Combi-Pack Sdn. Bhd Company Limited Private Limited Systems (FZC) 100% 100% 89% 80% TPAC Skypet India TPAC Custom Solutions Private Limited Private Limited 80
Slide 27: Strong growth momentum witnessed during Q2'23
Strong growth momentum witnessed during Q2’23 Unit: THB Mn 27
Slide 28: Balance sheet size increasing with investments
Balance sheet size increasing with investments into organic and inorganic ventures Asset Liabilities and Shareholder Equity Unit: THB Million Unit: THB Million 7,404 7,401 7,404 7,401 • Increase in shareholders equity by ~ THB 202 Mn during Q2’23 vs Q4’22 is primarily on account of profit for the qu
Slide 29: Strong cash flow acts as an anchor for growth capex
Strong cash flow acts as an anchor for growth capex and investments Unit: THB Million Cash flow bridge for Q2'23 • With the business performing well, TPAC generated Cash Flows (THB Million) Q2'23 Q1'23 FY2022 strong positive operating cash flow. • Investing activities during Q2’23 primarily includes
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