Thai Vegetable Oil Public Co. Ltd. · SET:TVO
Thai Vegetable Oil Public — Q2 2024 Earnings Presentation
44 slides from Thai Vegetable Oil Public's earnings presentation, Sep 5, 2024
Slide 1: TVO 2Q/2024 Opportunity Day
TVO 2Q/2024 Opportunity Day September 5, 2024 2Q24 Opportunity Day 1
Slide 2: Disclaimer
Disclaimer "The information contained in this presentation is provided exclusively for your personal reference. Additionally, this presentation includes projections and forward-looking statements that express our current expectations regarding future events and financial performance. These views are
Slide 3: Agenda
TVO Overview Agenda 1H Recap Industry Overview and Outlook 2Q24 Financial Performance ESG Q&A 2Q24 Opportunity Day 3
Slide 4: Agenda
TVO Overview Agenda 1H Recap Industry Overview and Outlook 2Q24 Financial Performance ESG Q&A 2Q24 Opportunity Day 4
Slide 5: TVO at a Glance
TVO at a Glance Thai Vegetable Oil TVO has a production TVO produces and distributes Public Company Limited capacity of 6,000 tons of products in both domestic and or TVO soybeans per day. All three international markets. The was established in 1985 factories are located in product are divided into
Slide 6: Major Development
Major Development Revamping the 1-liter- Acquired the asset of bottle design of Nakornchaisri vegetable oil bottles, Refinery Company which saving of Limited, expanding 350,000 kilograms per capacity to 800 tons of Expanding capacity year and developing 2023- 1985 soybean/day, and 1993 to 2,000 tons
Slide 7: Revenue Structure
Revenue Structure 50,000 39,108 3% 40,000 34,196 Packaging & Others 31,308 16% 4% 3% Export 30,000 24,963 13% 18% Soybean Meal 4% 9% Soybean Oil 56% 14,951 20,000 57% 59% 59% 16% 3% 10,000 60% 27% 27% 26% 19% 0 21% 2020 2021 2022 2023 1H2024 Breakdown by Channel Breakdown by product Soybean Oil Expo
Slide 8: TVO Business Overview
TVO Business Overview Animal Edible Soybean Sourcing Food Ingredient Vegetable Oil
Slide 9: TVO Business Overview
TVO Business Overview Animal Edible Soybean Sourcing Food Ingredient Vegetable Oil
Slide 10: Soybean Sourcing
Soybean Sourcing Soybeans Exports Exports 2024/25 181 172 177 Unit: mil.MT 166 165 154 ROW 46 50 US 54 46 62 59 United States Production 125.0 Thailand Export 50.3 Production 0.03 Import 4.0 92 96 105 105 82 79 Brazil 2019/20 2020/21 2021/22 2022/23 2023/24e 2024/25p • TVO prioritizes purchasing soy
Slide 11: TVO Business Overview
TVO Business Overview Soybean Animal Edible Sourcing Food Ingredient Vegetable Oil 2Q24 Opportunity Day
Slide 12: Domestic Soybean Meal Source
Domestic Soybean Meal Source Soybean meal produced by local crusher accounts for 40% of the total supply in the country. 60% Import (~3 mil. tons/year) 40% Local Crushers (~2 mil. tons/year) 2Q24 Opportunity Day 12
Slide 13: Distribution Channel of TVO's animal feed ingredient product
Distribution Channel of TVO’s animal feed ingredient product Feed Miller 70%-80% Livestock Farms 20%-30% 2Q24 Opportunity Day 13
Slide 14: Animal Feed Ingredient Product
Animal Feed Ingredient Product Soybean meal Full Fat Soy TVO Hipro-Meal TVO Soy Hull TVO Dehulled Soybean Meal Full Fat Soy Lecithin TVO Dehulled Full Fat Soy TVO Full Fat Soy 2Q24 Opportunity Day 14
Slide 15: TVO Business Overview
TVO Business Overview Soybean Animal Edible Sourcing Food Ingredient Vegetable Oil 2Q24 Opportunity Day
Slide 16: Thailand's Consumer Soybean Oil Market
Thailand’s Consumer Soybean Oil Market Soybean oil has a market share of 17% of “Angoon” Soybean Oil dominates the Soybean oil the total Thai edible oil market. market in Thailand with a market share of 62% Thai edible oil Thai soybean oil market share Others market share 16% Palm Oil 79% Soybean Oi
Slide 17: Edible Vegetable Oil Markets
Edible Vegetable Oil Markets 70% 30% Domestic Exports Food Industries Non-Food Industries ▪Canned Tuna ▪Paint Industry ▪Salad oil ▪Raw Materials ▪Chili Paste ▪Animal Feed ▪Fried Food 2Q24 Opportunity Day 17
Slide 18: 2Q24 Opportunity Day
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Slide 19: 2Q24 Opportunity Day
2Q24 Opportunity Day
Slide 20: Good Health Great Taste
ORY GOOD HEALTH GREAT TASTE 2Q24 Opportunity Day
Slide 21: Agenda
TVO Overview Agenda 1H24 Recap 2H24 Outlook Financial Performance ESG Q&A 2Q24 Opportunity Day 21
Slide 22: 2Q24 Key Highlights
2Q24 Key Highlights Gross Net Sales Profit Profit 7,238 784 550 THB mn 20.3% YoY 580% YoY 1,463% YoY THB mn THB mn 6.2% QoQ 49.5% QoQ 78.4% QoQ • Decline of unit selling • Highest GP in 7 quarters, • Highest NP in 7 quarters price in every category, mainly came from the following the higher GP. foll
Slide 23: Supply
SUPPLY Exports US Soybeans Production Brazil and Argentina Production Argentina Brazil Production mil.MT 220 130 53.2 54.0 Unit: mil.MT 202 Yield BU/Acre 177 186 187 125 51.9 51.7 170 176 174 159 155 161 51.0 120 50.6 50.6 51.0 115 49.2 49.5 153 169 97 115 121 129 140 131 110 48.0 96 123 162 105 47.
Slide 24: Demand
DEMAND Exports China SBM Stocks China Quarterly Pig Inventory -4% YoY Unit: 10,000 MT Annual China Soybean Imports (Oct-Sep) Unit: mil.MT 108 mil.MT (23/24) Source: JCI China, USDA ทีม ่ า: USDA 2Q24 Opportunity Day 24
Slide 25: 2Q24 Opportunity Day
ทีม ่ า: USDA 2Q24 Opportunity Day 25
Slide 26: Local Demand
LOCALExports DEMAND Thailand Chicken Inventory (mil.head) Thailand Pig Inventory (mil.head) +8% +3% YoY YoY 13.6 11.8 12.3 335 343 10.9 300 306 2021 2022 2023 1H2024 2021 2022 2023 1H2024 Thailand Chicken Meat Export (‘000 MT): 6 months Thailand Pig Margin (Baht/Kg.) 17.0 14.3 +2.6% 10.4 9.9 11.0 5.
Slide 27: Narrowing Price Gap between Soybean Oil and Palm Oil
Narrowing Price Gap between Soybean Oil and Palm Oil 18.00 Soybean Oil – Palm Oil Spread Unit: Baht/Litre 16.00 14.00 15.44 11.63 12.00 12.81 10.00 8.00 6.00 7.81 4.00 Jul-23 Jul-24 Mar-23 Sep-23 Nov-23 Apr-23 Mar-24 Apr-24 Jan-23 Feb-23 Aug-23 Dec-23 Jan-24 Feb-24 May-23 Oct-23 May-24 Jun-23 Jun-24
Slide 28: Agenda
TVO Overview Agenda 1H Recap Industry Overview and Outlook Financial Performance ESG Q&A 2Q24 Opportunity Day 28
Slide 29: Soybeans Perspective for 2024/2025
SOYBEANS Soybeans Perspective for 2024/2025 Soybeans have the largest supply cushion La Niña Event U.S. Planting Brazil Planting Argentina Planting 1Q 2Q 3Q 4Q 5 Nov 2024 United States presidential election ทีม ่ า: USDA 2Q24 Opportunity Day 29
Slide 30: S.American Soybeans Production
S.American Soybeans Production The likely return of La Niña, S.American weather impacting new crop yields USDA forecasts Brazil's soybean production for the 2024/25 August season at 169 million tons, the highest on record. Production Yield 56.0 180 mil.MT Bu/acre 54.0 54.0 53.1 170 2019 2020 2021 52
Slide 31: Fund Position Short Coverage
Fund Position Short Coverage Soybean CBOT 1st Nearby R Record short = 186k Source: X 2Q24 Opportunity Day 31
Slide 32: Demand Outlook
Demand Outlook Soybean meal Consumption Soybean oil Consumption 290.0 5.4 70.0 5.2 5.2 64.6 0.40 270.0 65.0 61.4 0.35 254.6 5.0 60.0 0.26 0.30 250.0 266.3 4.8 0.23 4.9 55.0 0.25 230.0 4.6 50.0 0.20 4.4 210.0 4.2 45.0 0.15 190.0 4.0 40.0 0.10 World Thailand World Thailand 5% 6% 5% 13% YoY YoY YoY YoY
Slide 33: Agenda
TVO Overview Agenda 1H Recap Industry Overview and Outlook 2Q24 Financial Performance ESG Q&A 2Q24 Opportunity Day 33
Slide 34: Revenue, Gross Profit & GPM, Net Profit & NPM
Unit: MB 18,545 6% QoQ 19% HoH 14,951 20,000 18,000 16,000 9,084 14,000 7,713 7,238 12,000 10,000 8,000 6,000 Revenue 4,000 2,000 - 2Q2023 1Q2024 2Q2024 1H2023 1H2024 Unit: MB 50% QoQ 10.8% 398% HoH 3,000 6.8% 8.8% 15.0% 1.3% 1.4% 2,500 10.0% 2,000 1,309 5.0% Gross Profit 784 1,500 0.0% 525 263 115
Slide 35: Current Ratio, D/E Ratio, ROA, ROE
Current Ratio D/E Ratio 4 3.71 3.5 3.03 0.73 3 2.49 2.62 0.80 1.96 0.70 2.5 0.60 0.46 0.35 0.36 2 0.50 0.25 1.5 0.40 0.30 1 0.20 0.5 0.10 0 0.00 2020 2021 2022 2023 1H2024 2020 2021 2022 2023 1H2024 ROA (%) ROE (%) 22.19 25 25 19.27 18.62 20 16.63 20 16.25 15 12.83 15 7.85 7.19 8.09 6.00 10 10 5 5 0
Slide 36: EPS, Dividend Payout Ratio, Dividend, Dividend Yield
EPS (Baht/Share) Dividend Payout Ratio (%) 2.56 3 99 120 2.5 2.05 100 83 86 83 1.80 62 2 80 0.97 1.5 60 1 0.82 40 0.5 20 0 0 2020 2021 2022 2023 1H2024 2020 2021 2022 2023 1H2024 4.00 3.50 Dividend (Baht/Share) Dividend Yield (%) 3.00 2.50 2.20 8 7.33 5.62 7 2.00 1.70 6 0.90 4.07 1.50 1.12 5 3.89 3.
Slide 37: Agenda
TVO Overview Agenda 1H Recap Industry Overview and Outlook 2Q24 Financial Performance ESG Q&A 2Q24 Opportunity Day 37
Slide 38: ESG Strategy
Integrate a Green Culture in the operation throughout the product lifecycle. ESG STRATEGY TVO’s sustainability strategy aligns with global Sustainable Development policies and is closely connected to the UN Sustainable Development Create balanced shared value for Goals (SDGs), with a strong commitme
Slide 39: Road Map To Net Zero
GREENHOUSE GAS EMISSION 2021 2030 2022-2030 2035 2045 2060 Base year Increase Solar Roof 20% Reduction Carbon Net Zero Production Installation From Base Neutrality Capacity year Road Map To Net Zero Net Zero OUR STRATEGIC ACTIONs Improve Energy Increase Renewable Carbon Capture Implement Carbon Effi
Slide 40: Highlight ESG Achievement
Highlight ESG Achievement 85 % Use of Renewable 7,500 Ton CO2e Reduction Energy compared to baseline 2021 2Q24 Opportunity Day 40
Slide 41: Award and Recognition
Award and Recognition ESG100 in 2024 FDA Quality Award 2024 TVO listed in the ESG100 year 2024 for the TVO has been honored with the FDA Quality 9th consecutive year from Thaipat. Award 2024 in the category of outstanding food establishment by Ministry of Public Health. 2Q24 Opportunity Day 41
Slide 42: Capacity expansion plan
Capacity expansion plan TVO1 Improvement Progress New Capacity 7,000 tons Expected to be commercialize Within 2024 Enhance production efficiency with modern technology, resulting in increased production capacity and create a cost competitive advantage 2Q24 Opportunity Day
Slide 43: Q&A
Q&A 2Q24 Opportunity Day 43
Slide 44: Thank You
Thank You Contact: IR@tvothai.com 2Q24 Opportunity Day 44
Thai Vegetable Oil Public Company Limited (TVO) — Q2 2024 Earnings Presentation on 6ix