Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — Q3 2017 Earnings Presentation
19 slides from Sri Trang Agro-Industry Public's earnings presentation, Nov 29, 2017
Slide 1: 3Q17 Analyst Presentation
SRI TRANG AGRO-INDUSTRY PUBLIC COMPANY LIMITED 3Q17 ANALYST PRESENTATION 1
Slide 2: Content
CONTENT 1. 3Q17 Results 2. Business Updates 3. Natural Rubber Industry 2
Slide 3: 1. 3Q17 Results
1. 3Q17 RESULTS reert * 2015 Sri Trang Agro-Industry Plc.
Slide 4: SICOM – Oil Price - FX
SICOM – Oil Price - FX 3Q16 4Q16 1Q17 2Q17 3Q17 Avg. = 131.87 Avg. = 167.02 (+26.7%) Avg. = 209.37 (+25.4%) Avg. = 152.93 (-27.0%) Avg. = 153.74 (+0.5%) SICOM Price 300 (US cent : Kg.) 250 RSS TSR 3Q17 = 170.7 200 3Q17 = 141.1 150 100 -21% Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-
Slide 5: Sale Revenue by Geography
Sale Revenue by Geography Revenue by Product (THB million) Revenue by Geography (THB million) +27.1% +27.1% 69,619 69,619 729 367 4,615 7,155 5,914 4,724 54,755 54,755 3,498 2,338 7,698 96 1,917 17,350 3,498 2,783 4,168 -20.3% 5,249 -20.3% 14,013 22,875 22,875 28,573 49,674 226 34 18,224 1,510 18,22
Slide 6: Adjusted Gross Profit
Adjusted Gross Profit Gross Profit Adjusted Gross Profit Gross profit (THB mn) Gross profit margin (%) Adj. gross profit (THB mn) Adj. gross profit margin (%) 5,000 8.0% 5,000 7.3% 8.0% 7.2% 6.9% 6.0% 4,000 6.0% 4,000 5.4% 4,024 3,792 4.6% 4.0% 3,000 3.5% 3,000 3,235 4.0% 2.0% 2,402 2,000 2,000 2.0%
Slide 7: Net Profit
Net Profit EBIT (THB million) Net Profit (THB million) 2,000 2,000 3.5% 1,500 1,500 2.5% 1,000 1,000 83 301 0.9% 1.5% 0.8% 500 500 629 614 83 167 545 0.5% 0 0 -0.5% -2,026 -1,060 -2,080 -1,906 -0.5% -500 -500 -1.5% -1,000 -1,000 -1,500 -1,500 -2.5% -3.5% -2,000 -2,000 -3.5% Q2 2017 Q3 2017 9M’16 9M’
Slide 8: Financial Highlights
Financial Highlights (THB million) Q2’17 Q3’17 %YoY %QoQ 9M’16 9M’17 %Change Revenue 22,875 18,224 -6% -20% 54,755 69,618 27% Sales volume (tonnes) 297,824 296,482 -20% -0.5% 1,094,479 982,600 -10% Avg. selling price (Baht per ton) 67,886 51,793 10% -24% 44,697 63,196 41% Gross profit (811) 1,314 27
Slide 9: 2. Business Updates
* 2015 Sri Trang Agro-Industry Plc.
Slide 10: Upstream Operations - Rubber Plantations
Upstream Operations - Rubber Plantations Area of Rubber Plantations Tapping Under development 1% 1% Approx. 44,680 rai 7,150 HA Under gestation 98% 19 Provinces in Thailand (rai) 50,000 Estimated Mature Plantations Mature plantation Accum. mature plantation 42,371 44,296 44,680 40,000 38,121 Lampang
Slide 11: Midstream Operations – NR Processing
Midstream Operations – NR Processing Production Capacity (Mil Tonnes) 37 processing facilities Optimum capacity (LHS) Engineering capacity (LHS) % optimum capacity to global NR production (RHS) % optimum capacity to global NR consumption (RHS) Technically Specified Rubber 3.2 24% Type of No. of Tota
Slide 12: Downstream Operations – Finished Products
Downstream Operations – Finished Products Examination Gloves Glove business 4 factories in Thailand One of the world’s top five (Thailand’s largest) glove manufacturers Latex / Nitrile examination gloves for medical and industrial purposes Capacity increase from 14,000 million pieces to 16,000 milli
Slide 13: 3. Natural Rubber Industry
3. NATURAL RUBBER INDUSTRY 13
Slide 14: NR world balance
NR world balance Natural Rubber Demand & Supply Tightening Supply (Unit : million tonnes) Demand (LHS) Supply (LHS) Supply Surplus / (Deficit) (RHS) (Unit : ‘000 tonnes) Diminishing total areas of plantation, 20 1,000 particularly in CAMAL country 911 15 800 Skilled labor scarcity 15.8 16.2 16.6
Slide 15: The World's Major NR Consuming and Producing Countries
The World’s Major NR Consuming and Producing Countries 2017 Major suppliers of Natural Rubber (forecast) 2017 Major consumers of Natural Rubber (forecast) Others 10% Others 26% CAMAL 4% Indonesia China India 6% 25% 38% 12.9 12.9 mil. tonnes Vietnam 9% Thailand 5% mil. tonnes Japan 5% Malaysia 5% Tha
Slide 16: Price performance of SICOM STR20 and NR & CR stock at Qingdao
Price performance of SICOM STR20 and NR & CR stock at Qingdao STR20 Price movement comparing to other commodities SICOM - STR20 Brent Crude Oil Price Bloomberg Commodity Index 40.0% 30.0% 20.0% Reversal trend between NR price 10.0% & crude oil price 0.0% Sep-17 Jul-17 Feb-17 Mar-17 Mar-17 Jun-17 Aug
Slide 17: Average Trading Volume in SICOM & SHFE
Average Trading Volume in SICOM & SHFE Average Trading Volume of TSR20 in SICOM (Tonnes/Day) 4,000 AVG in 2016: 2,000 Tonnes/Day AVG in 9M’17: 2,500 Tonnes/Day [ 26%] 3,500 3,000 2,500 2,000 1,500 1,000 500 - Apr-16 Apr-17 Jul-16 Jul-17 May-16 Aug-16 May-17 Aug-17 Oct-16 Mar-17 Jan-16 Jan-17 Mar-16
Slide 18: 2017 Natural Rubber Industry Outlook
2017 Natural Rubber Industry Outlook Supportive Concern • Strong US Economic data • Uncertain US policy • Outperform China economic data • Unfavorable Brexit negotiation result • International tension among countries • High volatility of NR price (especially in Macro futures markets) • NR fundamenta
Slide 19: Sri Trang Group
member of SRI TRANG GROUP
Sri Trang Agro-Industry Public Company — Q3 2017 Earnings Presentation on 6ix