Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — Investor Presentation (March 2025)
50 slides from Tpi Polene Public's investor presentation, Mar 3, 2025
Slide 1: TPI Polene Opportunity Day Presentation March 3, 2025
TPI Polene Public Company Limited Opportunity Day Presentation March 3, 2025
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 Background Performance Review 2024 Trends and Outlook ESG & Sustainability SET Opportunity Day Presentation 3
Slide 4: Key Assets Featuring ESG Ventures for Sustainability
Key Assets Featuring ESG Ventures for Sustainability Construction Materials Specialty Polymers/Chemical Products Bio-Organic Products For Agriculture /Livestock Energy & Utilities • Green Cement - 4 lines totaling 10.8m tons clinker capacity and Healthcare Products for Humans (13.5m tons cement basi
Slide 5: 2024 Initiatives
2024 Initiatives Green Cement Green Building Products Innovative Specialty Polymers Bio-organic Products for Food Safety & Food Security Green Energy Waste to Energy & Solar Farms Power Capacity Cost efficiency SET Opportunity Day Presentation 5
Slide 6: 2024: Initiatives – Sustainability Products
2024: Initiatives – Sustainability Products Green Cement/ Green Building Products* Green Innovation: HVA Products Food Safety/Food Security …towards regenerative agriculture Volume sales GR >10%, Q/Q, Y/Y Nearly 70% of segment sales Sales growing in 105% Y/Y & Introduced to the market 3Q24 growing 1
Slide 7: 2024 Initiatives: Green Energy (power capacity)
2024 Initiatives: Green Energy (power capacity) Solar farms in Saraburi - 663.195 rai, 61.225MWac Solar roofs at plants All Seasons production facility Fiber Cement Board production facility Long term PPA with TPIPL * raising electricity self-sufficiency * raising the ratio of Green Energy in cement
Slide 8: 2024 Initiatives – Green Energy (Solar Roofs & Waste to Energy)
2024 Initiatives – Green Energy (Solar Roofs & Waste to Energy) Lower day-time The solar roofs in DCs off take from the grid MSW as AFR in the calciner – up to 25% coal replace-ability (installed basis) SET Opportunity Day Presentation 8
Slide 9: 2024 Initiatives – Cost Efficiency/Cost Savings
2024 Initiatives – Cost Efficiency/Cost Savings Overall, consumption of diesel has dropped significantly SET Opportunity Day Presentation 9
Slide 10: 2024 in Review
2024 in Review SET Opportunity Day Presentation 10
Slide 11: Begin with the big picture – delay in TH budget caused slowdown
Begin with the big picture – delay in TH budget caused slowdown Late disbursement in the Fiscal Budget negatively affected public sector works until 3Q 2024, and spilled over into the private sector Slow down is seen in economic activity & financing SET Opportunity Day Presentation 11
Slide 12: Globally, manufacturing activity was also slow
Globally, manufacturing activity was also slow • The Producers Manufacturing Index (PMI) stayed at below 50 indicating contraction • The expected recovery in China did not happen despite the stimulus program launched in the 2H of last year • Slow manufacturing depressed prices of many commodity grad
Slide 13: Overall Profitability
Overall Profitability Common Size Key Product Groups 2023 2024 % YoY THB million FY23 FY24 YoY 2023 2024 Revenues Sales 42,807 35,770 -16.4% 100 100 Cement 21,563 17,229 -20% COGS (inc dep'n) (32,900) (27,945) -15.1% (76.9) (78.1) Specialty 8,321 5,347 -36% Gross Profit 9,907 7,825 -21.0% 23.1 21.9
Slide 14: Sales Performance – slow due to economic conditions
Sales Performance – slow due to economic conditions Sales generation of construction materials - soft • Poor domestic demand is due to slow release of government budget release • Clinker price dumping in the region from Vietnam and China dragged down prices and this is worsened by the strongest Thai
Slide 15: EBITDA - Relatively resilient, thanks to cost benefits
EBITDA - Relatively resilient, thanks to cost benefits EBITDA generation was relatively resilient in 2024 • TPIPL’s business has high degree of operating leverage (DOL), thus when business slows profitability drops more than the rate of decline in sales. • However, we can see EBITDA resilience of TP
Slide 16: Closer look on segment participation in Sales and EBITDA
Closer look on segment participation in Sales and EBITDA • ConsMat remains the largest sales generator ranging around 40-60% for the group but it is not the highest EBITDA contributor • Specialty Polymers/Chemicals had a good run in the recent years. In 2022 it contributed to over 30% in sales and E
Slide 17: Solid contribution by the Power/Utilities is due to plant efficiency
Solid contribution by the Power/Utilities is due to plant efficiency Solid power performance: Higher plant efficiency and generally higher throughput naturally lowers per unit fixed cost Production cost was also declining due to recent investments in cost savings, plant efficiency and fuel substitut
Slide 18: Geographic footprint
Geographic footprint THB million 2023 % Share 2024 % Share % YoY Thailand 31,149 73% 29,788 83% -4% China 6,167 14% 2,539 7% -59% Bangladesh 1,976 5% 244 1% -88% Australia 1,126 3% 1,215 3% 8% India 391 1% 475 1% 22% Philippines 730 2% 797 2% 9% Others 1,270 3% 712 2% -44% 42,807 35,770 Highly Thail
Slide 19: Financial Position – leverage manageable
Financial Position – leverage manageable TPIPL TRIS rating A-; Outlook Negative TPIPP TRIS rating A-; SCAP “a” Cash/cash equivalents down from THB20.7 billion in 2023 to THB9.6 billion in 2024 Cash was used to retire short term loan Cash/sales ratio remains good at 27%, still a defensive stance SET
Slide 20: Trends
Trends SET Opportunity Day Presentation 20
Slide 21: How about the long cycle? TPIPL has evolved progressively
How about the long cycle? TPIPL has evolved progressively Unlike peers TPIPL deployed capex in ESG investments And, in just over a decade its EBITDA generation more improving both efficiency and product quality but no than doubled the rate of sales growth, by a whopping acquisition in the last decad
Slide 22: The Long Cycle
The Long Cycle LTM EBITDA margin – break out: Long term mean = 17.8 % F/C >26-30% High cycle mean = 25.2% 2025-27 Low cycle mean = 10.6% Base Case Group’s EBITDA margin has been rising since 2019 driven by : 1) Contribution from cost efficiency, cost savings program, process & product innovation 2)
Slide 23: Highlighting Specialty Polymer – spreads on mean reversion
Highlighting Specialty Polymer – spreads on mean reversion extended trough Petrochemical trends is a boom-bust cycle Quick explanation in the collapse of EVA case • It takes a long time to build a plant and when • PV panel boom trebled the polysilicon price making EVA as attractive capacity comes it
Slide 24: The Big Picture: growth penciled in the FY24/25 fiscal budget
The Big Picture: growth penciled in the FY24/25 fiscal budget For FY24/25 budget, Thai Government priorities in areas that are coincidentally relevant to TPIPL Very Late Release Slowdown Momentum Firm SET Opportunity Day Presentation 24
Slide 25: The Big Picture: government capex spending has improved
The Big Picture: government capex spending has improved Government’s capital expenditure in the first three months of the fiscal year showed significant increase, more than double the spending in the same period of the previous fiscal year Capex spending by state-owned agencies has also improved, bu
Slide 26: Partial list of TH infrastructure projects in the pipeline
Partial list of TH infrastructure projects in the pipeline As the Thai-Chinese High Speed Railway approaches completion, it is expected to trigger real estate development in the areas along the route, as usually the case – multiplier effect Not included in the list of projects is the One Stop Entert
Slide 27: The World: stable growth; Stronger growth in the ASEAN
The World: stable growth; Stronger growth in the ASEAN Estimate Projections % 2023 2024 2025 2026 World 3.3 3.2 3.3 3.3 Strong growth in Thailand’s Advanced Economies 1.7 1.7 1.9 1.8 Euro Area 0.4 0.8 1.0 1.4 proximity markets – the ASEAN Emerging Market & Developing Economies 4.4 4.2 4.2 4.3 averag
Slide 28: Some ongoing construction in the ASEAN
Some ongoing construction in the ASEAN Short Term Potential Drivers Help Absorb Excess Capacity In the Region • Seawall to save Jakarta from sinking - Groundwater levels in the northern coast of Java have decline 1 - 25 cm per year while the sea levels rise 1-15 cm per year, causing tidal floods of
Slide 29: Globally, manufacturing has improved slightly in the US
Globally, manufacturing has improved slightly in the US • Year-to-date, the Producers Manufacturing Index (PMI) is still mostly below the 50-line • However, the US PMI has improved expansion significantly and is now on expansionary mode. This is a good sign because this is the world’s largest econom
Slide 30: Globally, polymer outlook remains poor due to new capacity
Globally, polymer outlook remains poor due to new capacity Evolving trends 192 million tons total– excess capacity in six polymer building blocks • McKinsey says that the cycle may have bottomed but looks to a modest improvement in market conditions • According to ICIS, waves of closures will contin
Slide 31: TPIPL's strategy – product and market positioning
TPIPL’s strategy – product and market positioning Ad hoc strategy: give more weight on LDPE and on markets offering favorable net back margins SET Opportunity Day Presentation 31
Slide 32: Price situation in LDPE and EVA
Price situation in LDPE and EVA L-LDPE doing better SET Opportunity Day Presentation 32
Slide 33: Key energy variables
Key energy variables Coal prices off the 2021/22 highs… … and volatile gas prices may influence Ft adjustments Source: Investing.com Coal prices is seeing some uptick ahead of Ramadan but overall outlook is likely to subdued on slow demand and China expanding domestic production in 2025 Gas price tr
Slide 34: 2025 Guidance
2025 Guidance SET Opportunity Day Presentation 34
Slide 35: Guidance – key performance variable
Guidance – key performance variable THB million 2023 2024 2025 Base Case Growth Target Sales - net 42,807 35,770 +8-10% Segment EBITDA ConsMat 2,604 2,789 +50-60% Specialty Polymer/Chemicals 2,635 1,223 flat Energy, Utilities 4,822 4,783 -10-12% Agriculture/others (6) 35 flat Group EBITDA 10,055 8,8
Slide 36: Guidance – capex plan
Guidance – capex plan THB m Program 2021-2025 Deployed Remaining 2025 2026 2027 2028 TPIPL 8,504 7,079 1,425 1,425 - - - TPIPP 13,637 8,941 4,696 4,011 443 173 68 Group 22,141 16,020 6,121 5,436 443 173 68 Additional Capacities Additional expectations: Saraburi solar farms 1-3 = 71.4 MWac Expected R
Slide 37: Guidance – key leverage metrics
Guidance – key leverage metrics Financials Net IBD Net IBD /Equity Net IBD/EBITDA EBITDA/Interest Key M etrics THB b x x x 2023A 64 1.0 6.4 3.5 2024A 71 1.1 8.0 2.7 2025G 72 1.1 7.1 3.0 2026G 66 0.9 5.7 3.5 2027G 58 0.8 4.5 4.1 Notes: EBITDA, Equity projections are based on base case assumptions As
Slide 38: ESG and Sustainability
ESG and Sustainability SET Opportunity Day Presentation 38
Slide 39: On The Path To Net Zero In TPI Green Cement and Mortar
On The Path To Net Zero In TPI Green Cement and Mortar Low hanging Deep technology TPIPL’s Task Force on Climate-Related Financial Disclosure 2023 SET Opportunity Day Presentation 39
Slide 40: On The Path To Net Zero: TPIPP
On The Path To Net Zero: TPIPP TPIPP – T-Ver Certificates Monetization potential looks promising: IDXCarbon has been created SETCarbon may follow this year TPIPP – Renewable Energy Certificates SET Opportunity Day Presentation 40
Slide 41: Validation and Corporate Merits
We Build The Validation and Corporate Merits Future Highly Rated in SET ESG and CG by IOD Corporate Governance Rating SET ESG Rating Maintained from 2023 Moved higher from 2023 “AAA” is the highest SET ESG rating SET Opportunity Day Presentation 41
Slide 42: TPIPL and TPIPP Are Constituents of ESG100 of Thaipat
TPIPL and TPIPP Are Constituents of ESG100 of Thaipat SET Opportunity Day Presentation 42
Slide 43: Certified Products – Various Agencies
Certified Products – Various Agencies SET Opportunity Day Presentation 43
Slide 44: Certification: IS 13601 (India) only one in five worldwide
Certification: IS 13601 (India) only one in five worldwide SET Opportunity Day Presentation 44
Slide 45: Corporate Merits
We Build The Corporate Merits Future Multiple citations for its innovative, pioneering products/processes leveraging on homegrown R&D talents For its engagement in deploying of advanced and high technologies: SET Opportunity Day Presentation 45
Slide 46: Corporate Merits
We Build The Corporate Merits Future SET Opportunity Day Presentation 46
Slide 47: Corporate Merits
We Build The Corporate Merits Future SET Opportunity Day Presentation 47
Slide 48: Corporate Merits
We Build The Corporate Merits Future SET Opportunity Day Presentation 48
Slide 49: Corporate Social Engagements
We Build The Corporate Social Engagements Future Experience/Knowledge sharing, crucial to advance industry and society Exposure to new ideas Higher levels of inspiration Improved relationships Sharing of good practices Better decision making More effective communication 49
Slide 50: End of presentation Thank you Q&A
End of presentation Thank you Q&A SET Opportunity Day Presentation 50
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