Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — Q1 2023 Earnings Presentation
39 slides from Tpi Polene Public's earnings presentation, Jun 6, 2023
Slide 1: TPI Polene: 1Q23 Company Update SET Opportunity Day Presentation
TPI Polene: 1Q23 Company Update SET Opportunity Day Presentation 6 June 2023 1 SET Opportunity Day
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 Business Overview Financial Performance & Position Guidance and Outlook Sustainability and Other Matters Knowledge Sharing 3
Slide 4: The Corporate Structure
The Corporate Structure TPI Polene Public Company Limited Specialty Polymers &Chemicals Construction (57%, 14%) (24%, 29%) Agriculture & Others (<1%) Energy/Utilities (19%, 59%) 70.24% TPI Concrete Co., Ltd. 99.99% TPI All Season Co., Ltd. 99.99% Thai Propoxide Co., Ltd. TPI Polene Power Plc. 99.99%
Slide 5: Key Assets and Features
Key Assets and Features Construction Materials Specialty Polymers/Chemical Segment Energy & Utilities • Specialty Polymers – 158k tpy capacity • Total current capacity 440 MW as below comprising >65% • Cement - 4 lines totaling 13.5m tpy capacity − HVA, customized with in-house proven R&D Green powe
Slide 6: Our Products – over 5,000 SKUs
Our Products – over 5,000 SKUs SET Opportunity Day
Slide 7: Strong Innovation Culture – The Many Firsts In Thailand
Strong Innovation Culture – The Many Firsts In Thailand Another Milestone 1 June Major launch of Green Cement and Building Materials Innovation creates competitive moats and better-than peers’ margins SET Opportunity Day
Slide 8: Evidence: how the EBITDA performance stacks up?
Evidence: how the EBITDA performance stacks up? 1Q22 2Q22 1H avg 3Q22 4Q22 1Q23 Specialty Polymers’ superior spread profile ConsMat Player 1 12.0% 9.8% 10.9% 7.7% 4.0% 10.0% Player 2 22.0% 25.0% 24.0% 13.0% 7.0% 15.2% TPI Polene 13.0% 19.3% 16.1% 10.3% 8.7% 5.2% Petrochemical Player 1 - operating on
Slide 9: Local peer comparison - share price performance
Local peer comparison - share price performance * Mildly Bearish Mildly positive Bearish Bottoming, Bottomed, waiting for Trend down, 200D R news Still bearish Speculative Accumulate Down trend, Waiting for looking for confirmation Accumulate bottom Comparative Valuation SCC SCCC TPIPL EPG GULF TPIP
Slide 10: Financial Performance & Position
Financial Performance & Position SET Opportunity Day 10
Slide 11: Highlights of 1Q23
Highlights of 1Q23 Common Size Growth THB million 2022 2021 % Growth 2022 1Q23 2021 1Q22 1Q23 YoY QoQ Revenue 48,133 38,920 24% 100 100 100 12,435 11,283 -9% 5% COGS 35,277 26,391 34% 73 79 68 9,032 8,881 -2% 8% Gross Profit 12,856 12,529 3% 27 21 32 3,402 2,402 -29% -2% SG&A 5,763 5,394 7% 12 12 14
Slide 12: Segment performance 1Q23
Segment performance 1Q23 YoY Growth YoY Growth -57% 8% -55% -37% 18% 0% -62% -26% -32% -9% EBITDA margin ConsMat 5% Specialty Polymers/Chemicals 26% Energy & Utilities 62% Agri & Others 19% Overall 21% SET Opportunity Day 12
Slide 13: EBITDA margin weathering the slowdown well
EBITDA margin weathering the slowdown well SET Opportunity Day
Slide 14: Financial Position – falling leverage ratio; defensive cash positioning
Financial Position – falling leverage ratio; defensive cash positioning Funding costs 1Q23: 4% TRIS rating A - first time ever @ A level * Based on 1) Accounts & other receivables 2) Inventories 3) Accounts & other payables SET Opportunity Day 14
Slide 15: Guidance
Guidance 15
Slide 16: Key Drivers – short term
Key Drivers – short term • Increased real estate development and renovation activities especially on the back of improving tourism • Infrastructure spending to improve slightly, though might temporarily slow if budget spending is delayed (new government) • Product price adjustments still continues t
Slide 17: Business Plan: Maintain Baseline Assumptions For Now
Business Plan: Maintain Baseline Assumptions For Now 1 lower utilization rate due to plant improvements replacing coal with MSW SET Opportunity Day 17
Slide 18: Upside Potential: Improving Asset Turnover
Upside Potential: Improving Asset Turnover Asset turnover (x, annualised basis) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Construction Materials 0.31 0.31 0.28 0.30 0.29 0.23 0.25 0.22 0.23 0.25 0.20 0.22 0.31 0.29 0.31 0.25 0.32 Specialty Polymer/Chemicals
Slide 19: Capex Plan: setting high ROCE hurdle
Capex Plan: setting high ROCE hurdle • Funding secured hence de-risked • High ROCE is because most of these projects are cost savings • Production facilities are also relatively new, better technologies SET Opportunity Day 19
Slide 20: Outlook
Outlook SET Opportunity Day 20
Slide 21: ConsMat should see improved outlook
ConsMat should see improved outlook The Global cement market was valued at USD327 billion in 2021 and USD231 billion of that was in Asia-Pacific. Global cement market is forecast to grow 5.1% pa hitting USD482 billion in 2029, c. 75% of will be in AsiaPac. Non-residential demand of cement has always
Slide 22: Power throughput and price post adder expiry
Power throughput and price post adder expiry 22 SET Opportunity Day
Slide 23: Historical Ft - likely to remain positive & high relative to recent history
Historical Ft - likely to remain positive & high relative to recent history Unit : Stang/kWh Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2023 - residence 93.43 93.43 93.43 91.19 91.19 91.19 2023 - others 154.92 154.92 154.92 154.92 2022 1.39 1.39 1.39 1.39 24.77 24.77 24.77 24.77 93.43 93.43 9
Slide 24: Future Plans Already in Allocated Capex
Future Plans Already in Allocated Capex • MSW Power Plants Awarded - Songkhla 7.92 MW - Nakhon Ratchasima 9.9 MW Other Renewables Solar Farm Wind Farm Installed capacity: 61.226 MWp Installed capacity: 5MW 92m kWh/yr 10m kWh/yr COD: 2023-2024 COD: 2024 Investment: 1,700 MB Investment 180 MB Annual R
Slide 25: Specialty Polymer – Development of High HVA
Specialty Polymer – Development of High HVA High EVA - Adhesive & Cable HVA EVA EVA – Solar Film EVA – Foam & coating Profit LDPE Difficulty SET Opportunity Day
Slide 26: Specialty Polymer – Expansion of VAE
Specialty Polymer – Expansion of VAE ZV1055 – High speed hotmelt (MFI-800) Increase EVA powder - Roughly 10% premium over top hotmelt adhesive installed capacity grade; a potential EBITDA increment of 15-20 million 6,000 TPY baht annually at current prices. Already operational Making the total capac
Slide 27: Specialty Polymer – China Is the Main Growth Driver
Specialty Polymer – China Is the Main Growth Driver Source: SCI-IBU, ICIS SET Opportunity Day
Slide 28: Polymers – commodity and specialty grades: spot prices (Asia)
Polymers – commodity and specialty grades: spot prices (Asia) Soft market overall but is bottoming Source: ICIS Petrochemical SET Opportunity Day
Slide 29: Sustainability and Other Matters
Sustainability and Other Matters SET Opportunity Day 29
Slide 30: Our Bio-Circular-Green (BCG) Economy Proposition
Our Bio-Circular-Green (BCG) Economy Proposition Carbon Merits of TPIPP Another Milestone 1 June Major launch of Green Cement and Building Materials SET Opportunity Day
Slide 31: Sustainability 2022
Sustainability 2022 SET Opportunity Day 31
Slide 32: Proud Moments: 2022
Proud Moments: 2022 Inclusion into SET Thailand Sustainability Investment List SET Opportunity Day
Slide 33: Litigation Cases
Litigation Cases The Court ordered the Company by Case Charge/ Environmental Acts B.E. 2535 to either Case Plaintiff status Date 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 Primary Industry The violatio
Slide 34: Litigation Cases (cont’d)
Litigation Cases (cont’d) Court ordered Charge/ Case Date Plaintiff Value (Mil. status Offense Baht) 2/6/2017 Tham Phra The court called the Company to Depend on the value The Central Administrative Court Phothisat be an interpleader for the claim of rock used dismissed the lawsuit Temple that the D
Slide 35: Knowledge Sharing
Knowledge Sharing SET Opportunity Day 35
Slide 36: References
References * Note: 1Q23 demand for ceramics – Jan-Feb actual, Mar is estimate Source: SET Filing, Listed Company Presentation SET Opportunity Day 36
Slide 37: References (cont’d)
References (cont’d) Energy prices is trending down c. 30% below 2022 peak Still soft trends in plastics but Global PMI for ASEAN manufacturing is improving SET Opportunity Day 37 Sources: ICIS, S&P Global
Slide 38: References (cont’d)
References (cont’d) SET Opportunity Day 38
Slide 39: End of Presentation Q&A Thank You
End of Presentation Q&A Thank You 39
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