Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — Q1 2024 Earnings Presentation
41 slides from Tpi Polene Public's earnings presentation, May 31, 2024
Slide 1: SET Opportunity Day 1Q 2024
TPI Polene Public Company Limited SET Opportunity Day 1Q 2024 1
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 Review on 1Q 2024 ESG and Sustainability 3
Slide 4: Key Assets and Features
Key Assets and Features Construction Materials Specialty Polymers/Chemical Segment Energy & Utilities • Specialty Polymers – 158,000 tons capacity • Cement - 4 lines totaling 10.8m tons clinker capacity − HVA, customized with in-house proven R&D • Total current capacity 440 MW as below comprising >6
Slide 5: Comprehensive and diversified product suite
Comprehensive and diversified product suite 31 May 2024 Opportunity Day 5
Slide 6: Focus 2024: Green Cement & Building Products
Focus 2024: Green Cement & Building Products* TGO Certified * Official launch June 2023 31 May 2024 Opportunity Day 6
Slide 7: Focus 2024: Reinforced Fibre Cement – Newly Patented Product
Focus 2024: Reinforced Fibre Cement – Newly Patented Product The innovative products, could help TPIPL penetrate a wider market. According to IndustryARC’s latest market research the fiber cement market is forecast to grow 6.2% pa reaching USD16.81 billion by 2030. Link: https://lnkd.in/gh9vdUBq 31
Slide 8: Focus 2024: Bio-organics and Bio-synthetics – Sustainable Agriculture
Focus 2024: Bio-organics and Bio-synthetics – Sustainable Agriculture 31 May 2024 Opportunity Day 8
Slide 9: EBITDA margin comparable to peers; valuation cheaper
EBITDA margin comparable to peers; valuation cheaper Local peer comparison: EBITDA margin 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 ConsMat Peer 1 12.0% 9.8% 7.7% 4.0% 9.5% 9.9% 8.0% 9.0% 17.0% Peer 2 22.0% 25.0% 13.0% 7.0% 15.2% 15.4% 18.0% 24.5% 24.0% TPI Polene 13.0% 19.3% 10.3% 8.7% 5.2% 11.7
Slide 10: Review on 1Q 2024
Review on 1Q 2024 31 May 2024 10
Slide 11: First Quarter 2024
First Quarter 2024 ConsMat - 21% lower ConsMat – 248% higher Specialty Polymers/Chemicals – 28% lower Specialty Polymers/Chemicals – 54% lower Energy Utilities – 7% lower Energy Utilities – 22% lower Overall = 20% lower Overall = 6% higher Specialty Polymer was the biggest drag in EBITDA Power was r
Slide 12: First Quarter 2024
First Quarter 2024 Profit and Loss Statement Common Size THB million 1Q23 1Q24 % Growth 1Q23 1Q24 Revenue 11,283 9,051 -20% 100 100 COGS (8,881) (7,042) -21% (78.7) (77.8) Gross Profit 2,402 2,010 -16% 21.3 22.2 SG&A (1,383) (1,162) -16% (12.3) (12.8) Finance cost (470) (627) 34% (4.2) (6.9) Tax exp
Slide 13: Margin trends
Margin trends 31 May 2024 Opportunity Day 13
Slide 14: Margin trends
Margin trends 31 May 2024 Opportunity Day 14
Slide 15: Power EBITDA resilient
Power EBITDA resilient • Throughput higher YoY mainly because of TG7 • Lower QoQ because of technical issue at TG7 and lower throughput at WH as cement plants were on maintenance shutdown • EBITDA higher QoQ but lower YoY due to lower selling price, Ft 31 May 2024 Opportunity Day 15
Slide 16: Trends – price on per unit basis
Trends – price on per unit basis Lower prices YoY, QoQ in cement & hydraulic Largely stable Higher prices in mortar Volume softer due to holidays Volume lower due to holidays and slow infra roll-out, slow private sector esp residential 31 May 2024 Opportunity Day 16
Slide 17: Trends – price on per unit basis
Trends – price on per unit basis Mild recovery in prices 29 April 2024t the start of Prices holding steady the quarter fizzled as utilization rate for EVA Volume lower footwear slowed Volume steady 31 May 2024 Opportunity Day 17
Slide 18: Trends – price on per unit basis
Trends – price on per unit basis Prices better QoQ but throughput lower Stable 31 May 2024 Opportunity Day 18
Slide 19: Financial Condition – still conservative liquidity stance
Financial Condition – still conservative liquidity stance * Based on 1) Accounts & other receivables + 2) Inventories - 3) Accounts & other payables 31 May 2024 Opportunity Day 19
Slide 20: Trends
Trends Energy prices off the 2021/22 highs… … and volatile in gas prices will influence Ft adjustments 31 May 2024 Opportunity Day 20
Slide 21: Variables to watch… private construction
Variables to watch… private construction Residential Property Presales Lackluster Property stimulus has been announced so we wait and see if it can stimulate demand Lower interest rate could support demand recovery Source: KGI 31 May 2024 Opportunity Day 21
Slide 22: Variables to watch… public construction
Variables to watch… public construction New Contracts Public and Quasi Public Mostly Small Works CK STEC Newly signed projects in 2023 small in value, medium term implementation period Source: Companies Presentation 31 May 2024 Opportunity Day 22
Slide 23: Variables to watch… budget disbursement could boost demand
Variables to watch… budget disbursement could boost demand Government’s capex spending has gradually improved MoM and could pick pace after budget approval in 26 April. Expedited construction activities are likely given tight time frame because fiscal year 2024/25 budget will soon begin discussion;
Slide 24: Variables to watch… construction overseas
Variables to watch… construction overseas Short Term Potential Drivers : Cement Export Market • Reconstruction from flood - Dubai experienced major floods in succession & and the Palm Islands have begun sinking. This will add on to the planned megaprojects estimated to cost USD 30 billion • Seawall
Slide 25: Variables to watch… manufacturing
Variables to watch… manufacturing Operating rates forecast lowered due to weaker orders in footwear in China PMI data up to the end of Feb still indicate weak manufacturing activities globally and amidst 3-5% supply growth spreads * of commodity grade petrochems have the tendency to go below convers
Slide 26: Variables to watch – manufacturing
Variables to watch – manufacturing The rebound in spread fizzled as EVA price dropped more than VAM Dow CEO sees strong demand across several sectors – Bloomberg TV https://youtu.be/vQf0GcvwCqU?si=sobUdEaseRjMfAtN Sources: ICIS 31 May 2024 Opportunity Day 26
Slide 27: Variables to watch…manufacturing
Variables to watch…manufacturing Source: ICIS 31 May 2024 Opportunity Day 27
Slide 28: TPIPL market position – High HVA is a bit ahead of the 80% FY target
TPIPL market position – High HVA is a bit ahead of the 80% FY target High EVA - Adhesive & Cable HVA EVA EVA – Solar Film EVA – Foam & coating Profit LDPE Difficulty 31 May 2024 Opportunity Day 28
Slide 29: EBITDA and Capex – maintain guidance
EBITDA and Capex – maintain guidance 2023 EBITDA breakdown 2024 P ConsMat 38% Specialty Polymers/Chemicals 14% Energy & Utilities 48% Agri & Others 0.19% • Achieved 2023 EBITDA was THB10,055 million hitting guided target Capex – including advances paid for PPE • Guidance for 2024 EBITDA is THB11,323
Slide 30: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG) 30
Slide 31: Sustainability Scorecard for 2023
Sustainability Scorecard for 2023 Environmental Aspect End of 2023 TPIPL Units % Remarks Enviromental Management WTE replacing coal - achievable level 25%** 361,827 14% % of total fuel 60-ton EV trucks 41/4/14 EV trucks/EV wheel loader/converted diesel Reduction in energy consumption (GJ) 33,609,162
Slide 32: Sustainability Scorecard for 2023
Sustainability Scorecard for 2023 Social Responsibility Aspect End of 2023 Units % Remarks Corporate Responsibility (TPIPL) Donations (products) for public benefits 27.92 million baht Employment Opportunities New jobs 562 Seniors and disabilities 46 Human rights violations zero violations Disposal o
Slide 33: Carbon-Related Merits
Carbon-Related Merits TPIPP – T-Ver Certificates TPIPP – Renewable Energy Certificates 31 May 2024 Opportunity Day 33
Slide 34: Our Carbon Situation (Scope 1)
Our Carbon Situation (Scope 1) MSW related carbon merits EUA – Carbon Allowance Price Fossil free by 2026 Source: TPIPP SET Opportunity Day Presentation 31 May 2024 Opportunity Day 34
Slide 35: Green Cement – basis for Green Building Products
Green Cement – basis for Green Building Products 31 May 2024 Opportunity Day 35
Slide 36: Replacing coal with MSW in the clinker production process
Replacing coal with MSW in the clinker production process * For more details: Link https://drive.google.com/file/d/1h3yYa8c2eoeSM7U2NZ-Ut_qmICfdJyU-/view?usp=share_link * Other local cement producers use IW – industrial wastes 31 May 2024 Opportunity Day 36
Slide 37: CDE for Limestone Scrap – reduce mineral waste
CDE for Limestone Scrap – reduce mineral waste For more details: https://www.cdegroup.com/about/case-studies/tpi-thailand 31 May 2024 Opportunity Day 37
Slide 38: EV Dump Trucks for Quarrying
EV Dump Trucks for Quarrying 2022 - 2023 On April 7, 2023 Yutong officially shipped 10 YTK90E battery electric mining trucks, which will be delivered to TPI Polene Public Company Limited (TPIPL), the second largest cement producer in Thailand, for transporting stone between mines. For more details h
Slide 39: Litigation Case – Pending At The Supreme Court
Litigation Case – Pending At The Supreme Court The Court ordered the Company by Environmental Acts B.E. 2535 to either Charge/ Case Case Date Plaintiff status 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
Slide 40: Validation of Our ESG and BCG Efforts
Validation of Our ESG and BCG Efforts 31 May 2024 Opportunity Day 40
Slide 41: End of Presentation Q&A Thank You
End of Presentation Q&A Thank You 31 May 2024 41
TPI Polene Public Company — Q1 2024 Earnings Presentation on 6ix