Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — FY2022 Earnings Presentation
37 slides from Tpi Polene Public's earnings presentation, Feb 20, 2023
Slide 1: Opportunity Day Presentation – Full Year 2022 Performance
Opportunity Day Presentation – Full Year 2022 Performance 20 February 2023 SET Opportunity Day Presentation1
Slide 2: Disclaimer
Disclaimer: The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in TPI Polene Public Company Limited ( “The Company”) in any jurisdictio
Slide 3: Topics
Topics Business Overview Financial Performance & Position Guidance and Outlook Sustainability and Other Matters 3
Slide 4: The Corporate Structure
The Corporate Structure TPI Polene Public Company Limited Specialty Polymers &Chemicals Construction (48%, 22%) (35%, 48%) Agriculture & Others (<1%) Energy/Utilities (17%, 29%) 70.24% TPI Concrete Co., Ltd. 99.99% TPI All Season Co., Ltd. 99.99% Thai Propoxide Co., Ltd. TPI Polene Power Plc. 99.99%
Slide 5: Key Assets and Features
Key Assets and Features Construction Materials Specialty Polymers/Chemical Segment Energy & Utilities • Specialty Polymers – 158k tpy capacity • Total current capacity 440 MW as below comprising >65% • Cement - 4 lines totaling 13.5m tpy capacity − HVA, customized with in-house proven R&D Green powe
Slide 6: Our Products – over 5,000 SKUs
Our Products – over 5,000 SKUs SET Opportunity Day Presentation 6
Slide 7: Strong Innovation Culture – The Many Firsts In Thailand
Strong Innovation Culture – The Many Firsts In Thailand Innovation creates competitive moats and better-than peers’ margins SET Opportunity Day Presentation 7
Slide 8: Evidence: how the EBITDA performance stacks up?
Evidence: how the EBITDA performance stacks up? Peer comparison EBITDA margins Specialty Polymers’ superior spread profile 1Q22 2Q22 3Q22 4Q22 12M simple avg ConsMat No 1 12.0% 9.8% 7.7% 4.0% 8.4% No 2 22.0% 25.0% 13.0% 7.0% 16.8% TPI Polene 13.0% 19.3% 10.3% 8.7% 12.8% Petrochemical No 1 - operatin
Slide 9: Financial Performance & Position
Financial Performance & Position SET Opportunity Day Presentation 9
Slide 10: Highlights of 4Q22 and 2022
Highlights of 4Q22 and 2022 Common Size THB million 2022 2021 % Growth 2022 2021 4Q22 4Q21 % Growth Revenue 48,133 38,920 24% 100 100 10,699 10,570 1% COGS 35,277 26,391 34% 73 68 8,244 7,160 15% Gross Profit 12,856 12,529 3% 27 32 2,455 3,409 -28% SG&A 5,763 5,394 7% 12 14 1,406 1,452 -3% Finance c
Slide 11: Segment performance 4Q22
Segment performance 4Q22 YoY Growth YoY Growth 21% 72% -10% -45% -17% -35% 19% -83% 1% -32% EBITDA margin ConsMat 9% Specialty Polymers/Chemicals 28% Energy & Utilities 43% Agri & Others -29% Overall 21% SET Opportunity Day Presentation 11
Slide 12: EBITDA margin mostly improving
EBITDA margin mostly improving SET Opportunity Day Presentation 12
Slide 13: Financial Position – falling leverage ratio; defensive cash positioning
Financial Position – falling leverage ratio; defensive cash positioning Funding costs 2022: 3.79% TRIS rating BBB+ * Based on 1) Accounts & other receivables 2) Inventories 3) Accounts & other payables 13
Slide 14: Guidance and Outlook
Guidance and Outlook 14
Slide 15: Key Drivers
Key Drivers • Increased real estate development and renovation activities especially on the back of improving tourism • Infrastructure spending to improve slightly on election spending • Continued product price adjustments on higher energy cost; another round of Ft adjustment to hit electricity cost
Slide 16: Business Plan: Conservative Baseline Assumptions
Business Plan: Conservative Baseline Assumptions 1 lower utilization rate due to plant improvements replacing coal with MSW SET Opportunity Day Presentation 16
Slide 17: Upside Potential: Improving Asset Turnover
Upside Potential: Improving Asset Turnover Asset turnover (x, annualised basis) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Construction Materials 0.31 0.31 0.28 0.30 0.29 0.23 0.25 0.22 0.23 0.25 0.20 0.22 0.31 0.29 0.31 0.25 Specialty Polymer/Chemicals 0.95 1.02
Slide 18: Capex Plan: Setting High ROCE hurdle
Capex Plan: Setting High ROCE hurdle Mainly funded by internal cashflow SET Opportunity Day Presentation 18
Slide 19: Outlook - ConsMat
Outlook - ConsMat SET Opportunity Day Presentation 19
Slide 20: Demand outlook positive
Demand outlook positive Overall ConsMat price index falling on lower steel prices but level still high Cement price index show higher prices CCI – Buying a house is improving; favorable demand backdrop Global cement demand CAGR is 5.1% pa 2022-2027; export outlook SET Opportunity Day Presentation 20
Slide 21: ConsMat should see improved outlook
ConsMat should see improved outlook The Global cement market was valued at USD327 billion in 2021 and USD231 billion of that was in Asia-Pacific. Global cement market is forecast to grow 5.1% pa hitting USD482 billion in 2029, c. 75% of will be in AsiaPac. Non-residential demand of cement has always
Slide 22: Outlook – Renewable Power
co) Outlook — Renewable Power 22
Slide 23: Ft likely to remain high; cost push pressure remains
Ft likely to remain high; cost push pressure remains Higher energy prices is likely to be a medium term trend; Ft adjustments may revisit the 2008-2015 positive cycle Unit : Stang/kWh Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2022 1.39 1.39 1.39 1.39 24.77 24.77 24.77 24.77 93.43 93.43
Slide 24: Future Plans Already in Allocated Capex
Future Plans Already in Allocated Capex • MSW Power Plants Awarded - Songkhla 7.92 MW - Nakhon Ratchasima 9.9 MW Other Renewables Solar Farm Wind Farm Installed capacity: 61.226 MWp Installed capacity: 5MW 92m kWh/yr 10m kWh/yr COD: 2023-2024 COD: 2024 Investment: 1,700 MB Investment 180 MB Annual R
Slide 25: Outlook - Specialty Polymers
Outlook - Specialty Polymers 25
Slide 26: Specialty Polymer – Development of High HVA
Specialty Polymer – Development of High HVA High EVA - Adhesive & Cable HVA EVA EVA – Solar Film EVA – Foam & coating Profit LDPE Difficulty SET Opportunity Day Presentation
Slide 27: Specialty Polymer – Expansion of VAE
Specialty Polymer – Expansion of VAE ZV1055 – High speed hotmelt (MFI-800) Increase EVA powder - Roughly 10% premium over top hotmelt adhesive installed capacity grade; a potential EBITDA increment of 15-20 million 6,000 TPY baht annually at current prices. Already operational Making the total capac
Slide 28: Specialty Polymer – Synergy in VAE
Specialty Polymer – Synergy in VAE Corrugated Labeling Furniture Paper Core Parquet Synergy of having Paper EVA Resin, VAE Emulsion, 18,000 TPY and VAE Powder: - Share infrastructure, raw materials - Utilized waste steam and waste Ethylene purge gas from EVA high pressure process - Reduce raw materi
Slide 29: Specialty Polymer – China Is the Main Growth Driver
Specialty Polymer – China Is the Main Growth Driver Source: SCI-IBU, ICIS SET Opportunity Day Presentation
Slide 30: Specialty Polymer: Spot Prices (Asia)
Specialty Polymer: Spot Prices (Asia) Source: ICIS Petrochemical SET Opportunity Day Presentation
Slide 31: Sustainability and Other Matters
Sustainability and Other Matters 31
Slide 32: Our Bio-Circular-Green (BCG) Economy Proposition
Our Bio-Circular-Green (BCG) Economy Proposition Capex 2021-2026 Investment EBITDA pa ROCE Payback Projects in the implementation pipeline Internal projections THB m THB m % Years EVA powder and new HVA product Specialty Polymer Power plant modification from coal to MSW - Efficiency & expansion 1,08
Slide 33: Sustainability 2022
Sustainability 2022 SET Opportunity Day Presentation 33
Slide 34: Proud Moments: 2022
Proud Moments: 2022 Inclusion into SET Thailand Sustainability Investment List SET Opportunity Day Presentation 34
Slide 35: Litigation Cases
Litigation Cases The Court ordered the Company by Case Charge/ Environmental Acts B.E. 2535 to either Case Plaintiff status Date Offense Refill Rocks Pay (Mil. Tons) OR (Mil. Baht) Sor Vor 4/2559 8/7/2015 Department of 31.52 4,047 Pending the Supreme Court Consideration Primary Industry The violatio
Slide 36: Litigation Cases (cont’d)
Litigation Cases (cont’d) Court ordered Charge/ Case Date Plaintiff Value (Mil. status Offense Baht) 2/6/2017 Tham Phra The court called the Company to Depend on the value The Central Administrative Court Phothisat be an interpleader for the claim of rock used dismissed the lawsuit Temple that the D
Slide 37: End of Presentation Q&A Thank You
End of Presentation Q&A Thank You 37
TPI Polene Public Company — FY2022 Earnings Presentation on 6ix