Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — FY2019 Earnings Presentation
35 slides from Sri Trang Agro-Industry Public's earnings presentation, Mar 5, 2020
Slide 1: 4Q19 & FY19 Analyst Presentation
STA 4Q19 & FY19 Analyst Presentation 1
Slide 2: Contents
CONTENTS 1. Financial Performance 2. STA Business Highlights 3. Natural Rubber Market Situation 2
Slide 3: Financial Performance
1 FINANCIAL PERFORMANCE 3
Slide 4: Being the Survivor & Gaining Customer Confidence
Being the SURVIVOR & Gaining CUSTOMER CONFIDENCE TSR20 Price Movement in SICOM ($cent/kg.) 160 140.6 $cent/kg 136.5 $cent/kg. (-3.0%) 150 140 130 120 Wintering Season Peak NR Output Apr-18 Apr-19 May-19 Feb-18 Feb-19 May-18 Jul-18 Jul-19 Jan-18 Aug-18 Oct-18 Jan-19 Aug-19 Oct-19 Jan-20 Sep-18 Sep-19
Slide 5: SICOM – Oil Prices
SICOM – Oil Prices 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 220 Avg. = 146.5 (+1.9%) Avg. = 140.0 (-4.4%) Avg. = 132.9 (-5.7%) Avg. = 126.7 (-4.6%) Avg. = 139.4 (+10.0%) Avg. = 151.3 (+8.6%) Avg. = 134.7 (-11.0%) Avg. = 137.0 (+1.7%) 200 Avg. = 140.3 SICOM Price 180 (+2.5%) (US cent : Kg.) 160 140 12
Slide 6: Latex – Butadiene – Acrylonitrile - Forex
Latex – Butadiene – Acrylonitrile - Forex 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Avg. = 110.5 (-10.1%) Avg. = 138.1 (+24.9%) Avg. = 162.2 (+17.5%) Avg. = 114.5 (-29.4%) Avg. = 112.7 (-1.6%) Avg. = 104.6 (-7.2%) Avg. = 118.6 (+13.5%) Avg. = 101.0 (-14.9%) 179.5 (-0.6%) 193.0 (+7.5%) 212.8 (+18.5%) 1
Slide 7: Financial Highlight
Financial Highlight FY18 4Q18 (Unit : THB million) FY19 %YoY 4Q19 3Q19 %QoQ %YoY [Restated] [Restated] Revenue 60,286 73,136 -17.6% 14,881 15,384 -3.3% 16,937 -12.1% Sales volume (tons) 1,103,934 1,330,849 -17.1% 285,594 272,223 4.9% 314,176 -9.1% Avg. selling price (Baht per ton) 43,520 45,979 -5.3
Slide 8: Sales Revenue
Sales Revenue Sales Revenue by Product (THB million) Sales Revenue by Geography 8
Slide 9: Gross Profit
Gross Profit Gross Profit (THB million) Gross Profit – Adjusted (THB million) [Restated] [Restated] [Restated] [Restated] 9
Slide 10: EBIT
EBIT EBIT (THB million) EBIT (THB million) EBIT [Restated] [Restated] 10
Slide 11: Net Profit
Net Profit Net Profit (THB million) Net Profit (THB million) [Restated] [Restated] 11
Slide 12: STA Business Highlights
2 STA Business Highlights | az
Slide 13: About STA: The World's Leading Fully Integrated Natural Rubber Company
About STA: The World’s Leading Fully Integrated Natural Rubber Company Established in 1987 Rubber Plantations Rubber Processing Rubber Gloves 45,000 rai 36 NR processing plants in Thailand, Indonesia and Myanmar 3 locations of glove factories in Thailand (7,200 hectares) of rubber plantations 2.9 mi
Slide 14: Upstream Operations – Rubber Plantations
Upstream Operations – Rubber Plantations Area of Rubber Plantations (2020F) Infrastructure 13% Approx. Tapping Area Immature NR Area 45,000 rai 20% 65% 7,200 HA Other Crops 2% Estimated Mature Plantations 19 Provinces in Thailand 14,000 12,000 Production (tons) Tapping, trees (RHS) 2,500,000 Lampang
Slide 15: Midstream Operations – NR Processing
Midstream Operations – NR Processing 65% of total sales Technically Specified 36 processing facilities Production Capacity (mil. tons) Global NR Consumption (RHS) Engineering capacity (LHS) Rubber [TSR] Capacity*: 2.86 mil. tons/annum Sales volume (LHS) revenue in 2019 3.00 15.00 24 2.10processing f
Slide 16: STA's Tire Manufacturer Customers
STA’s Tire Manufacturer Customers Global Brands 16
Slide 17: Mobile Application STA FRIENDS
Mobile Application STA FRIENDS Objective: To buy raw materials from rubber farmers and dealers in Thailand anywhere and anytime [launched Oct-19] No. of Members: > 3,000 rubber farmers & dealers in STA network 17
Slide 18: Downstream Operations – Finished Products
Downstream Operations – Finished Products Technically 7% Global market share 3 locations of glove factories in Thailand Specified Rubber [TSR] STGT50 bn. pcs. of gloves per annum by 2025 27 19.9 130+ Targeting to achieve Exporting to bn. pcs.installed bn. pcs. capacity per annum sold in 2019 Countri
Slide 19: Our Gloves Products
Our Gloves Products Product Range Product Mix by Volume 15% 11% Examination/ 39% 33% Non-Examination Gloves Nitrile Own Brands 85% 89% Latex 61% 67% OEM Latex Nitrile FY18 FY19 FY18 FY19 Powdered Powder-Free Powder-Free Information as at 31 December 2019 - Comfort 4.8 g - Balance 5.0 g - Comfort 5.0
Slide 20: Sales Volume Breakdown by Region
Sales Volume Breakdown by Region Maintain our market share in developed markets & Expressively expand to high growth countries Others Others 7% 10% 10% Europe 24% 16.9 bn. pcs. Asia 39% +17.5% Europe 24% 19.9 bn. pcs. Asia 41% 9% 9% sold in 2018 sold in 2019 4% America America 1% 27% 28% Information
Slide 21: Global Glove Market Outlook
Global Glove Market Outlook Demand Keeps Growing & Hidden Consumption in Emerging Markets Global Glove Demand Global Market Share in 2019 [bn. pcs.] 350 +10% 330 Average growth at 10-12% per annum 300 Indonesia 300 3% 268 China 250 233 11% 210 194 300 200 171 180 150 148 160 Thailand Malaysia 150 19
Slide 22: Key Drivers in Rubber Glove Consumption
Key Drivers in Rubber Glove Consumption Growth in Healthcare Industry around the World Increasing Usage of Hygienic Products in Developing Countries Healthcare Spending in Each Region in 2018 and 2023 Forecasted Rubber Glove Consumption per Capita in 2018 (LHS) 2023F (LHS) CAGR 2018 - 2023 (RHS) Dev
Slide 23: Aggressively Expand to Capture Market Demand
Aggressively Expand to Capture Market Demand Capacity Expansion 3 Production Facilities 1 5.7 bn. pcs. per annum Total Installed [bn. pcs.] +53% 50 50 Capacity of 45 40 35 +16% +20% 33 27.2 2 14.9 bn. pcs. per annum bn. pcs. per year 30 27 25 +54% 23 Surat Thani 20 15 15 Expand ~4 bn.pcs. each year
Slide 24: STGT's IPO Plan
STGT’s IPO Plan Pre-IPO Post-IPO STA and RBL(1) STH(2) Dr. Viyavood Sincharoenkul Others Sincharoenkul Family(3) STA and RBL(1) STH(2) Dr. Viyavood Family(3) Others Public 81.08% 5.39% 7.09% 1.93% 4.51% 55.95% 3.72% 4.89% 1.33% 3.11% 31.00% Remark: (1) Rubberland Products Company Limited (2) Sri Tra
Slide 25: Our Competitive Edges
Our Competitive Edges Raw Material / Latex Supply No export tax charged [No CESS expense] This makes our latex cost 1.2 Baht/Kg. cheaper than other players outside Thailand. Closed to the biggest source of latex which is the main raw material for “Latex Gloves” No concern over gas price : Our produc
Slide 26: Rubber Glove Business Flow
Rubber Glove Business Flow 26
Slide 27: Natural Rubber Market Situation
3 NATURAL RUBBER MARKET SITUATION 27
Slide 28: Global NR Situation
Global NR Situation Natural Rubber Demand & Supply (Unit : million tons) Demand (LHS) Supply (LHS) Supply Surplus / (Deficit) (RHS) (Unit : ‘000 tons) 20 840 800 15 16.0 16.4 16.7 17.0 612 15.1 15.4 15.7 13.8 14.0 14.4 14.8 13.2 13.8 10 12.2 12.1 12.7 10.8 11.0 11.0 11.4 331 400 15.1 15.4 15.7 16.1
Slide 29: NR Supply
NR Supply 2020F Major Producers ~80% of NR output came from ASEAN 2020F global production growth = 2.3% 100% America Malaysia 4% Others 6% 80% CAMAL 5% Africa India 5% Thailand 36% 60% Other ASIA Cote d'Ivorie 6% 14.05 40% mil. tons 20% ASEAN China 6% 0% Vietnam 9% Indonesia 22% 2016 2017 2018 2019
Slide 30: NR Demand
NR Demand 2020F Major NR Consumers NR Consumption Diversification 2020F global growth in consumption = 1.9% 100% Others 17% 80% Malaysia 4% China 60% America EU Indonesia 5% 14.01 39% 40% ASEAN Japan 5% mil. tons Other Asia 20% China Thailand 6% USA 7% 0% India 8% EU 9% 2016 2017 2018 2019 2020 NR C
Slide 31: Commodity Price Movement & SHFE Stocks
Commodity Price Movement & SHFE Stocks Commodity Price Movement SICOM - TSR20 Brent Crude Oil Price Bloomberg Commodity Index 35% 25% 15% 5% -5% Jan-19 Jan-20 Oct-19 May-19 Feb-19 Jun-19 Aug-19 Feb-20 Apr-19 Mar-19 Nov-19 Dec-19 Jul-19 Mar-20 Sep-19 Qingdao & SHFE Stocks, China [tons] 700,000 SHFE Q
Slide 32: TSR20 Historical Price Movement [2004 – 2020]
100 150 - 200 250 300 350 400 450 500 550 600 50 Jan-04 Apr-04 Jul-04 Source : Bloomberg Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 102 cent/kg. Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oc
Slide 33: Appendix: ESG Policy
GREEN RUBBER COMPANY For over 30 years, Sri Trang Group has been operating in a socially and environmentally responsible manner and the symbol “Green” signifies our commitment to sustainability and tansparency. “Taking a Step Forward as the Green Rubber Company” Green Company © y aspect of our opera
Slide 34: Profile
Profile Symbol STA Shareholding Structure NC12 Others Sincharoenkul 28% Family 2017 CG Score Excellence 19% Anti-Corruption Certified by Thai CAC Foreign STH 22% Closing Price Baht 11.80 per share [28/02/2020] Institutions 52-Week High/Low Baht 16.90 per share 20% Baht 9.45 per share Thai Institutio
Slide 35: Contact Investor Relations
Contact Investor Relations Tel: (+66)2-207-4500 Ext. 1402 E-Mail: IR@sritranggroup.com 35
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