Evergreen Fibreboard Bhd. · MYX:EVERGRN

Evergreen Fibreboard Bhd — Shareholder Meeting (May 2019)

24 slides from Evergreen Fibreboard Bhd's shareholder meeting presentation, May 24, 2019

  1. Slide 1: 28th Annual General Meeting: Briefing on FYE2018 Financial Results

    28TH ANNUAL GENERAL MEETING Briefing on FYE2018 Financial Results

  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 Financials Business Overview Strategies 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 47 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 Overview

    Business Overview

  7. Slide 7: What We Do

    What We Do RTA Medium Density Fibreboard (MDF) Furniture 5% Manufacturing of MDF, an Value-Added engineered wood product made MDF by breaking down hardwood or 15% softwood residuals into wood fibres, combining it with wax MDF & PB and resin binder to form panels. 80% Value-added products include mel

  8. Slide 8: Global Footprint

    Global Footprint Africa Far East Asia South Asia 6% 4% 1% America 4% Middle East 41% Europe 4% South East Revenue Asia 40% FYE 2018 Far East Africa Far East Africa Asia South Asia 1% Asia 3% South Asia 8% 2% 3% America 1% Middle America 4% East 5% Europe 34% 4% Europe Middle 3% East 48% South East A

  9. Slide 9: Largest MDF Producer in ASEAN

    Largest MDF Producer in ASEAN (‘000) MDF PB Resin RTA (m³) (m³) (MT) (m³) Hat Yai, Thailand Malaysia 620 250 192 12.5 MDF Manufacturing 600,000 m³ Power Generation 18MW Thailand 570 - - - Gurun, Kedah Indonesia 120 - 60 - Resin Manufacturing 96,000 MT Total 1,310 250 252 12.5 Nilai, Negeri Sembilan

  10. Slide 10: Financials

    7 ”" * FINANCIALS

  11. Slide 11: FY18 Financial Performance Review

    FY18 Financial Performance Review FY FY FY  Group revenue in FY2018 improved due to full- RM’m year output volume from PB as well as higher 2016 2017 2018 MDF output. Revenue 997.8 1,024.1 1,105.5  Margins declined due to MDF and PB pricing under pressure from increased capacities and Gross Profit

  12. Slide 12: Resilient Financial Position to Face Challenges

    Resilient Financial Position to Face Challenges RM’m 2017 2018  Cash of RM107m reinforces the ability to PPE 1,012.0 1,014.2 fund business expansion and dividend Non-Current Assets 99.4 80.3  Drop in cash balance due to payment of dividends and repayment of bank facilities Current Assets ex Cash 3

  13. Slide 13: Financial Flexibility to Pursue Growth

    Financial Flexibility to Pursue Growth RM’m 2017 2018 Operating cash flows before  The Group was able to maintain a stable 160.4 103.1 working capital changes INFLOW of operating cashflow of Changes in working capital RM103mil before working capital changes and other operating (46.5) (58.0) despite

  14. Slide 14: Challenges

    7 ”" * CHALLENGES

  15. Slide 15: Challenges in 2019

    Challenges in 2019 MACROECONOMICS & POLICIES  Heightened competition  More MDF and PB capacities coming online in SEA region, oversupply situation  Worsen competition for raw material which may drive up costs  Selling price comes under more pressure  Volatile USD  USD might weaken if American

  16. Slide 16: Challenge Management

    CHALLENGE MANAGEMENT

  17. Slide 17: Managing Challenges

    MANAGING CHALLENGES STRATEGIES & TEAM EFFORTS  Responding to heightened competition  Continue to promote, grow and strengthen downstream activities  Shift away from generic products to more technically sophisticated products (low emissions, thin boards, humidity or fire resistant boards)  Consol

  18. Slide 18: Opportunities

    OPPORTUNITIES

  19. Slide 19: Opportunities in 2019

    Opportunities in 2019 MACROECONOMICS & POLICIES  Weaker Ringgit Outlook  Bank Negara’s interest rate reduction has triggered Ringgit selling and could result in a weaker Ringgit over the longer term.  Lower Interest Rate  Lower interest rate could spur domestic consumer spending, benefiting the

  20. Slide 20: Strengths

    7 ”" * STRENGTHS

  21. Slide 21: Stability through diversity

    Stability through diversity Vertically Integrated Operations & Wide Customer Base  Sustainably Integrated Operations • Manufacture adhesives for in-house needs • Experienced in managing rubber wood log harvesting concessions • Produce different kinds of engineered wood (e.g. MDF, PB, sawntimber) •

  22. Slide 22: Stability through diversity

    Stability through diversity Diversified base of operations  Manufacturing presence in Malaysia, Thailand and Indonesia  Each country allows access to different markets • Malaysia – Great infrastructure, top 10 furniture exporter in world • Thailand – Top rubber producer, plentiful raw material • I

  23. Slide 23: Captive Market over Malaysian Furniture Industry

    Captive Market over Malaysian Furniture Industry Centre of Malaysian Furniture Industry is Literally in Our Backyard  Large Captive Local Market • Evergreen is a long established Malaysian MDF supplier with a strong reputation • Malaysia is among the top 10 furniture exporting countries in the worl

  24. Slide 24: Thank You

    7 ”" * Thank You

Evergreen Fibreboard Berhad — Shareholder Meeting (May 2019) on 6ix