Evergreen Fibreboard Bhd. · MYX:EVERGRN

Evergreen Fibreboard Bhd — Investor Presentation (March 2016)

28 slides from Evergreen Fibreboard Bhd's investor presentation, March 2016

  1. Slide 1: ASEAN's Largest MDF Producer - Corporate Presentation

    ASEAN’s Largest MDF Producer CORPORATE PRESENTATION March 2016

  2. Slide 2: Disclaimer

    Disclaimer This corporate presentation may contain forward-looking statements. All statements other than statements of historical facts contained in this presentation. Including, without limitation, those regarding our financial position, business strategies, plans and objectives of our Group for fu

  3. Slide 3: Table of Contents

    Table of Contents About EVERGREEN Business Overview Financials Outlook Strategies Conclusion Company Updates 3

  4. Slide 4: About EVERGREEN

    About EVERGREEN

  5. Slide 5: EVERGREEN – A Quick Snapshot

    EVERGREEN – A Quick Snapshot  Started in 1972 as a timber trading and veneer manufacturing company  Across 44 years of track record, the Group has grown from a single product unit to a multi-product entity (e.g. veneer to laminates, to medium density fibreboard (MDF) and particleboard (PB), and th

  6. Slide 6: Business Review

    7 ”" * Business Review

  7. Slide 7: What We Do

    What We Do RTA Medium Density Fibreboard (MDF) Furniture 5% Manufacturing of MDF, an engineered wood product made Value-Added by breaking down hardwood or MDF softwood residuals into wood 20% fibres, combining it with wax MDF and resin binder to form panels. 75% Value-added products include melamine

  8. Slide 8: Global Footprint

    Global Footprint Africa Far East Asia South Asia 3% 2% 3% America 5% Europe 3% Middle East 45% South East Asia 39% Revenue FYE 2015 Far East Far East Africa Africa Asia Asia South Asia 1% South Asia 3% 4% 4% 3% 3% America 3% America Middle 4% Middle Europe East East 2% Europe 39% 39% 2% South East S

  9. Slide 9: Why Engineered Wood?

    Why Engineered Wood? Medium Density Fibreboard (MDF) Particleboard (PB)  Isotropic, so no tendency to split  Lighter and lower cost than plywood and MDF  Consistent in strength and size  More uniform than plywood  Excellent substrate for veneer, paper foil, melamine and easy to  Can be laminat

  10. Slide 10: Largest MDF Producer in ASEAN

    Largest MDF Producer in ASEAN (‘000) MDF PB Resin RTA (m³) (m³) (MT) (m³) Hat Yai, Thailand Malaysia 620 120 192 12.5 MDF Manufacturing 570,000 m³ Power Generation 18MW Thailand 570 - - - Gurun, Kedah Indonesia 120 - 60 - Resin Manufacturing 96,000 MT Total 1,310 120 252 12.5 Nilai, Negeri Sembilan

  11. Slide 11: Financials

    Financials

  12. Slide 12: Financial Highlights

    Financial Highlights FYE FYE FYE  Group revenue in FYE 2015 surpassed RM’m RM1b due to higher selling price 2013 2014 2015 Revenue 938.7 942.0 1,014.5  Resilient and growing EBITDA Gross Profit 127.5 166.6 296.3  GP & PAT margins saw progressive growth EBITDA 34.2 81.4 191.3 largely attributable

  13. Slide 13: Financial Flexibility to Pursue Growth

    Financial Flexibility to Pursue Growth FYE FYE  Net gearing improved 69.2% to 0.08x, RM’m 2014 2015 indicating stronger flexibility to undertake growth strategies PPE 777.0 845.8  Long term borrowings obtained at attractive Non-Current Assets 76.9 83.6 rates to fund new capex plans Current Assets

  14. Slide 14: Outlook

    Outlook

  15. Slide 15: Industry Recap

    Industry Recap 2015 End 2013 - 2014  Demand continued to improve especially in Middle East and Asian 2010 - 2013  Excess capacity gradually markets absorbed by market over this period  Raw material prices  Aggressive expansion led to remained low overcapacity  Raw material prices normalized  S

  16. Slide 16: Global Outlook

    Global Outlook MDF  Global consumption of MDF is booming thanks to expanding furniture industry and strong housing growth in Asia, South America, Australasia, Eastern Europe and Russia  Consumption of MDF in the major producing countries is forecast to increase by 15% from 80.7 million m³ in 2012

  17. Slide 17: Strategies

    7 ”" * Strategies

  18. Slide 18: Earnings Growth and Sustainability

    Earnings Growth and Sustainability NEW AUTOMATED LINES NEW CATALYST Cost Rationalisation via new Increase Value-Added Products highly automated lines with Higher Margins DISPOSAL OF IMPROVE OPERATIONAL NON-CORE ASSETS EFFICIENCY Carve-out of Non-Core & Low Restructure, Upgrade and Performing Assets

  19. Slide 19: Cost Rationalisation Exercise

    Cost Rationalisation Exercise Batu Pahat MDF Plant  Objective: Enhance efficiency of manufacturing process and reduce overhead costs  Machine:  New chipping line with high degree of automation  Anthon CTS, new automated state-of-the-art finishing line (sanding, cut-to-size and packaging) from Ge

  20. Slide 20: New Catalyst

    New Catalyst Batu Pahat RTA Plant  Objective: Diversify and focus on expanding downstream business with higher margins by acquiring additional RTA furniture lines to increase RTA output capacity  Machine: New Italian fully-automated RTA furniture line  How:  Computer-input settings allows for mu

  21. Slide 21: Restructure and Refurbishment

    Restructure and Refurbishment Masai MDF Plant  Objective: Consolidate and refurbish to improve machine capability, reduce transportation costs and achieve cost savings through synergistic operations  What: Dismantle, refurbish and reinstall Masai MDF line at Segamat plant  Why:  Urbanisation of

  22. Slide 22: Replace, Upgrade & Modernise / New Catalyst

    Replace, Upgrade & Modernise / New Catalyst Segamat Integrated Plant  Objective: Produce premium PB with higher margin by replacing, upgrading and combining multiple manufacturing lines, increasing PB production output through streamlined operations  Machine: State-of-the-art press unit from Germa

  23. Slide 23: Disposal of Non-Core Assets

    Disposal of Non-Core Assets Non-Core Assets & Rubber Plantation  Objective: Dispose non-core assets from relocated operations and low performing assets  What:  13 acres of land at the discontinued Masai plant  In the midst of shifting machineries and equipment to a new site in Segamat  4,410 ac

  24. Slide 24: Conclusion

    7 ”" * Conclusion

  25. Slide 25: Key Take-aways

    Key Take-aways ASEAN’s Largest MDF Producer 1  As the largest producer with 1,310,000m³ MDF capacity, the Group enjoys economies of scale  Strong network with log suppliers, freight providers and distribution channels Integrated Facilities with High Automation 2  The Group has integrated manufact

  26. Slide 26: Company Updates

    Company Updates

  27. Slide 27: Corporate Exercise Updates

    Corporate Exercise Updates Private Placement  The private placement of 51.29 million new shares was completed on 1 December 2015 with RM105.14m raised  Proceeds utilisation updates as at 17 February 2016:- RM’m Proposed Utilisation Actual Utilisation Balance Intended timeframe Development & busine

  28. Slide 28: Thank You

    7 ”" * Thank You

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