Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — FY2016 Earnings Presentation
20 slides from Sri Trang Agro-Industry Public's earnings presentation, Mar 2, 2017
Slide 1: FY16 & 4Q16 Analyst Presentation
SRI TRANG AGRO-INDUSTRY PUBLIC COMPANY LIMITED FY16 & 4Q16 ANALYST PRESENTATION 1
Slide 2: Content
CONTENT 1. FY 2016 and 4Q16 Results 2. Business Updates 3. Natural Rubber Industry 2
Slide 3: 1. FY2016 and 4Q16 Results
1. FY2016 AND 4Q16 RESULTS a C io ( f at... ® 2015 Sri Trang Agro-Industry Plc. 3 nena ‘SRI TRANG EY
Slide 4: SICOM – Oil Price - FX
SICOM – Oil Price - FX 250 RSS 2015 Avg. 2016 Avg. SICOM Price RSS = 156 ▲ 1% YoY RSS = 165 TSR (US cent : Kg.) 200 TSR = 137 TSR = 138 150 100 Crude Oil Price 80 70 ▼23% YoY (USD : Bbl.) 60 50 40 30 37 36 THB/USD 35 Movement 34 33 ▲3% YoY 32 31 4
Slide 5: Financial Highlights
Financial Highlights (THB million) FY’15 FY’16 %YoY Q4’15 Q3’16 Q4’16 %YoY %QoQ Revenue 61,292 77,266 ▲26% 15,467 19,309 22,510 ▲46% ▲17% Sale volume 1,119,966 1,494,094 ▲33% 302,962 370,467 399,615 ▲32% ▲22% (tons) Avg. selling price 48,858 46,534 ▼5% 45,117 47,266 51,567 ▲14% ▲9% (Baht per ton) Gr
Slide 6: Revenue by Product
Revenue by Product Revenue – Quarterly (THB million) Revenue – Yearly (THB million) RSS TSR Con. Latex Others RSS TSR Con. Latex Others +45.5% +26.1% +16.6% 22,510 77,266 1,903 7,739 18,752 19,309 1,920 61,292 6,088 16,695 2,036 1,798 6,573 15,467 1,432 1,593 2,001 4,774 1,798 1,144 1,316 16,630 56,
Slide 7: Sale Volume by Geography
Sale Volume by Geography Sale Volume – Quarterly (tons) Sale Volume – Yearly (tons) PRC Asia (Ex PRC) USA Europe Others PRC ASIA (Ex. PRC) USA Europe Others +31.9% +33.4% +7.9% 1,494,094 399,615 3,506 363,105 360,906 370,467 1,410 54,246 372 12,858 73,794 880 441 10,240 17,342 11,485 12,556 11,857 1
Slide 8: Adjusted Gross Profit
Adjusted Gross Profit Adjusted Gross Profit – Quarterly Adjusted Gross Profit – Yearly THB mm Margin % THB mm Margin % 2,000 12.0% 5,050 10.0% 10.7% 1,800 5,000 8.1% 10.0% 1,600 4,950 4,981 8.0% 1,400 4,900 6.6% 8.0% 1,200 4,850 6.8% 6.0% 6.0% 4,800 1,000 6.0% 4,750 800 4.5% 4.0% 2.9% 4.0% 4,700 600
Slide 9: Earning Before Interest and Tax (EBIT)
Earning Before Interest and Tax (EBIT) EBIT – Quarterly (THB million) EBIT – Yearly (THB million) Share of profits from associates & a Joint Venture Share of profits from associates & a Joint Venture Operating profits Operating profits 1,952 649 907 92 1,304 8 815 104 188 97 403 112 (8) 101 (180) (1
Slide 10: Net Profit
Net Profit Net Profit – Quarterly (THB million) Net Profit – Yearly (THB million) Net profit Net profit margin % Net profit Net profit margin % 3.0% 1,000 6.0% 1,800 800 4.8% 2.5% 600 4.0% 1,400 1.8% 2.0% 400 2.0% 1,000 1,118 1.5% 200 -47 -166 802 -91 0 1.0% 0.0% 600 -200 Q4 2015 Q1 2016 Q2 2016 Q3
Slide 11: 2. Business Updates
® 2015 Sri Trang Agro-Industry Plc. 11
Slide 12: Upstream Operations - Rubber Plantations
Upstream Operations - Rubber Plantations Area of Rubber Plantations Tapping Under 1% development 13% Under Approx. gestation 50,000 rai 85% 8,000 HA Estimated Mature Plantations 19 Provinces in Thailand Lampang (rai) 50,000 40,000 Mature plantation Accum. mature plantation 35,940 42,013 43,679 44,26
Slide 13: Midstream Operations – NR Processing
Midstream Operations – NR Processing Production Capacity (mil. tons) 35 processing facilities Optimum capacity (LHS) Engineering capacity (LHS) % engineering capacity to global NR production (RHS) Technically Specified Rubber 3.2 22% 24% Type of No. of Total engineering 2.8 19% 21% Product plants ca
Slide 14: 3. Natural Rubber Industry
3. NATURAL RUBBER INDUSTRY 14
Slide 15: 2017 Natural Rubber Industry Outlook
2017 Natural Rubber Industry Outlook Bull Bear • US Economic outlook. • Over capacity management in • Uncertain US Policy. China. • China Economic concern. • EU political uncertainty. • Commodity Price movement. Macro • Potential economic crisis. • NR Supply situation. Fundamental • High Volatility
Slide 16: Fewer new planting activities tightens NR supply
Fewer new planting activities tightens NR supply New planting and replanting area (000’HA) New planting (LHS) Replanting (LHS) Total area (RHS) 600 12,500 500 11,500 400 300 10,500 200 9,500 100 0 8,500 2024f 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f 2017f 2018f 2019f 2020f 2
Slide 17: The World's Major NR Consuming and Producing Countries
The World’s Major NR Consuming and Producing Countries 2016 Major suppliers of Natural Rubber 2016 Major consumers of Natural Rubber Others 12% Others 26% Indonesia China India 5% 26% 39% Vietnam 9% 12.5 12.4 Thailand mil. tons Malaysia mil. tons 5% 5% Japan 5% China 7% Thailand 36% India 8% Europe
Slide 18: Double Digit Growth for New-Vehicle Sales in China
Double Digit Growth for New-Vehicle Sales in China China’s new vehicle sales (unit) Passenger car (LHS) Truck (LHS) % Growth (RHS) 26,000,000 60% 23,000,000 50% 20,000,000 40% 17,000,000 30% 14,000,000 20% 11,000,000 8,000,000 10% 5,000,000 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source : Bl
Slide 19: Natural Rubber Inventory at Qingdao
50,000 0 100,000 150,000 200,000 300,000 250,000 Jan-10 Source : Bloomberg Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Natural Rubber Stock at Qingdao (Ton) Oct-14 Jan-15 Natural Rubber Inventory at Qingdao Apr-15 Jul-
Slide 20: Member of Sri Trang Group
member of SRI TRANG GROUP
Sri Trang Agro-Industry Public Company — FY2016 Earnings Presentation on 6ix