Sri Trang Agro-Industry Public Co. Ltd. · SET:STA

Sri Trang Agro-Industry Public — FY2014 Earnings Presentation

21 slides from Sri Trang Agro-Industry Public's earnings presentation, Mar 6, 2015

  1. Slide 1: 4Q2014 & FY2014 Presentation: A World Leading Natural Rubber Player

    4Q2014 & FY2014 Presentation 6 March 2015 A World Leading Natural Rubber Player

  2. Slide 2: Disclaimer

    Disclaimer Certain forward looking statements may be made in the course of the presentation. These forward- looking statements generally can be identified by use of statements that include words or phrases such as STA or We or our management “believe”, “expect”, “anticipate”, ”intend”, ”plan”, ”fore

  3. Slide 3: Contents

    Contents • 2014 Highlights • 4Q2014 and FY2014 Results • STA Outlook 2

  4. Slide 4: 2014 Highlights

    er member of SRI TRANG GROUP 2014 Highlights member of SRI TRANG

  5. Slide 5: 2014 STA Highlights

    2014 STA Highlights Sales & Marketing Capacity Expansion • 10% Market Share of World Consumption in 2014 • World’s largest 1.4 Million tons optimum capacity − Industrial record 1.2 millions rubber sold (7% growth) • 26 plants in Thailand and Indonesia manufacturing a full spectrum of NR products − 1

  6. Slide 6: NR market is still under pressure from supply surplus

    NR market is still under pressure from supply surplus – but with significantly lower magnitude than its peak in 2013 mm tons 14 12 12.1 11.9 12.0 12.3 12.4 10 11.0 11.1 11.0 11.3 11.3 10.8 10.4 10.1 10.1 10.2 10.1 9.7 9.9 9.4 9.7 8 8.7 8.8 9.2 9.0 7.9 8.1 6 4 2 0 2003 2004 2005 2006 2007 2008 2009 2

  7. Slide 7: Falling NR price and appreciating USD continued since 2013

    THB/USD Crude Oil Price SICOM Price Movement Movement Movement (USD / Bbl) (US Cent / Kg) 100 200 300 400 28 32 34 30 120 150 30 60 90 01/01/13 01/01/13 01/02/13 02/01/13 02/01/13 02/02/13 316 296 1Q13 1Q13 1Q13 03/01/13 03/01/13 03/02/13 04/01/13 04/01/13 04/02/13 05/01/13 05/01/13 05/02/13 291 245

  8. Slide 8: 4Q2014 and FY2014 Results

    member of SRI TRANG GROUP 4Q2014 and FY2014 Results a = — —

  9. Slide 9: Financial Highlights

    Financial Highlights (THB mm) FY’13 FY’14 %YoY Q4’13 Q4’14 %YoY Q3'14 %QoQ Revenue 92,185 75,530 ▼18% 23,930 17,543 ▼27% 16,812 ▲4% Sale volume 1,126,463 1,204,342 ▲7% 315,186 326,095 ▲3% 284,877 ▲14% (tons) Avg. selling price 79,600 60,583 ▼24% 74,053 51,665 ▼30% 56,756 ▼9% (Baht per ton) Gross pro

  10. Slide 10: Sales volume reached yet another industry record of 1.2 million tons

    Sales volume reached yet another industry record of 1.2 million tons at higher growth (6.9%) than 5.2% global demand growth Sales Volume – Quarterly (tons) Sales Volume – Yearly (tons) PRC Asia (Ex PRC) USA Europe Others PRC ASIA (Ex. PRC) USA Europe Others +3.5% +6.9% +14.5% 1,204,343 1,126,462 879

  11. Slide 11: Under pressure from falling NR price, revenue decreased by 18% despite volume growth

    Under pressure from falling NR price, revenue decreased by 18% despite volume growth Revenue – Quarterly (THB mm) Revenue – Yearly (THB mm) RSS TSR Con. Latex Others RSS TSR Con. Latex Others -18.1% -26.7% +4.3% 92,185 2,519 23,930 6,047 22,765 75,530 590 2,567 2,057 625 5,631 1,698 18,410 17,543 16

  12. Slide 12: Decrease in Adjusted Gross Profit was also due mainly to pressure from global NR price

    Decrease in Adjusted Gross Profit was also due mainly to pressure from global NR price, but it is picking up in H2 2014 Adjusted Gross Profit – Quarterly (THB mm) Adjusted Gross Profit – Yearly (THB mm) THB mm Margin % THB mm Margin % -0.5% -23.3% +16.5% 2,600 10.0% 7,000 10.0% 2,400 2,200 6,000 8.0

  13. Slide 13: EBIT fell correspondingly to gross profit and increase in admin expenses

    EBIT fell correspondingly to gross profit and increase in admin expenses, but profits from associates & JV remain strong due to lower RM costs EBIT – Quarterly (THB mm) EBIT – Yearly (THB mm) Share of profits from associates & a Joint Venture % of profits from Share of profits from associates & a Jo

  14. Slide 14: Despite lower finance costs and tax expense, Net Profit was outweighed by unfavorable NR price

    Despite of lower finance costs and lower tax expense, Net Profit was outweighed by unfavorable NR price and demand appetite Net Profit – Quarterly (THB mm) Net Profit – Yearly (THB mm) Net profit Net profit margin % Net profit Net profit margin % -97.0% -43.0% -97.1% 1,000 3.0% 2,000 3.0% 2.7% 1,820

  15. Slide 15: Our Cash Flow remains strong and can sufficiently support business operation

    Our Cash Flow remains strong and can sufficiently support business operation, investment and financing activities 2014 Cash Flow (THB mm) Operations Investment Financing 14,000 + 9,270mm - 2,372mm - 6,659mm +10,086 -816 12,000 -2,890 10,000 +940 -5,181 +526 -8 8,000 6,000 -1,600 4,000 -832 +13 2,132

  16. Slide 16: STA continue to expand our capacity and footprint in main and emerging NR producing countries

    STA continue to expand our capacity and footprint in main and emerging NR producing countries with focus on TSR Total Capital Expenditure (THB mm) Capital Expenditure by Products (THB mm) 5,000 TSR RSS Conc. Latex Plantations Others 4,000 3,982 3,000 2,804 2,923 2,890 1.2% 2.7% 1.5% 1.4% 2,000 1,000

  17. Slide 17: Financial Ratios

    Financial Ratios ROA ROE Cash Cycle 4.50% 9.19% 9.37% 83.3 7.46% 75.2 78.3 3.36% 3.59% 64.1 2.53% 5.11% FY2011 FY 2012 FY 2013 FY 2014 FY2011 FY 2012 FY 2013 FY 2014 FY2011 FY 2012 FY 2013 FY 2014 Debt / equity Net debt / equity Interest Coverage 1.22 1.10 1.12 4.18 1.21 0.86 4.00 0.94 0.73 0.84 3.7

  18. Slide 18: Outlook

    member of SRI TRANG GROUP Outlook member of SRITRANG GROUP) LL 17

  19. Slide 19: 2015 Outlook

    2015 Outlook Target Capex Plan Capex Plan Capacity : 1.7 mil tons CAPEX 2015f 2016f % capacity to NR global demand Effective production capacity (THB mm) (mil. Tons) Sale volume : 1.4 mil tons Capacity Expansion 1,850 175 13% 13% 11% Adj. GP margin : 5 - 7% 11% Plantation 480 520 NP margin : 1.5 - 2

  20. Slide 20: Our Business Strategies

    Our Business Strategies Upstream Production Business Capacity • Continue to utilise and plant rubber trees on lands • Consistently expand our production footprint in top already acquired producing and emerging NR countries • Leverage from insights in raw material market • Achieve and leverage on eco

  21. Slide 21: Q&A Investor Relations Department

    Q&A Investor Relations Department Tel: +662 207 4500 Fax: +662 108 2244 Email: IR@sritranggroup.com 20

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