Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — FY2017 Earnings Presentation
22 slides from Sri Trang Agro-Industry Public's earnings presentation, Mar 7, 2018
Slide 1: FY17 & 4Q17 Analyst Presentation
SRI TRANG AGRO-INDUSTRY PUBLIC COMPANY LIMITED FY17 & 4Q17 ANALYST PRESENTATION 1
Slide 2: Content
CONTENT 1. FY 2017 and 4Q17 Results 2. STA Business Highlights 3. Market Situation & Industry Outlook 2
Slide 3: 1. FY 2017 and 4Q17 Results
1. FY 2017 AND 4Q17 RESULTS * 2015 Sri Trang Agro-Industry Plc.
Slide 4: SICOM Price, Oil Price and THB/USD Movement
THB/USD Crude Oil Price SICOM Price Movement (USD : Bbl.) (US cent : Kg.) 31 33 34 35 37 32 36 Jan-16 100 150 250 300 200 30 40 50 60 70 80 Jan-16 Jan-16 Feb-16 Feb-16 Feb-16 Mar-16 Mar-16 Mar-16 TSR RSS Apr-16 Apr-16 Apr-16 May-16 May-16 May-16 Jun-16 Jun-16 Jun-16 Jul-16 2016 Avg. 2016 Avg. 2016 A
Slide 5: Financial Highlights
Financial Highlights %YoY %QoQ (THB million) FY’16 FY’17 %YoY Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 [4Q17:4Q16] [4Q17:3Q17] Revenue 77,266 89,387 16% 22,510 28,519 22,875 18,224 19,768 -12% 8% Sales volume (tons) 1,494,094 1,323,873 -11% 399,615 388,294 297,824 296,482 341,272 -15% 15% Avg. selling price (B
Slide 6: Revenue by Product
Revenue by Product Revenue – Quarterly (THB million) Revenue – Yearly (THB million) +16% 89,387 -12% 77,266 407 9,859 28,519 292 2,826 6,286 1,705 4,913 2,322 +9% 6,088 9,653 22,510 22,875 488 3,098 34 7,305 1,415 2,623 19,768 1,920 914 18,224 39 2,567 41 2,704 2,057 2,827 1,562 1,488 1,955 Others 2
Slide 7: Sale Volume by Geography
Sale Volume by Geography Sale Volume – Quarterly (tons) Sale Volume – Yearly (tons) +11% -15% 1,494,094 3,506 54,246 73,794 1,323,873 399,615 388,294 +15% 2,138 56,731 1,410 12,858 698 17,342 14,724 341,272 76,132 22,764 397,682 297,824 296,482 221 14,283 90,541 13,770 329,488 86,795 706 514 12,868
Slide 8: Adjusted Gross Profit
Adjusted Gross Profit Adjusted Gross Profit – Quarterly Adjusted Gross Profit – Yearly THB mm Margin % THB mm Margin % 3,000 10.0% 5,000 10.0% 9.0% 2,500 4,686 8.0% 4,000 8.0% 2,563 4,322 2,000 6.0% 5.4% 3,000 6.0% 1,500 4.6% 6.0% 2.9% 4.0% 1,000 1,227 4.8% 2,000 4.0% 2.0% 500 662 913 0.0% 1,000 2.0
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 712 775 403 394 47 83 130 58 728 101 336 629 (1,418) (332) (2,02
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 % 1,000.0 4.0% 1,000.0 2.0% 2.4% 500.0 1.5% 500.0 2.0% 469 0.9% 1.0% - 0.0% 0.0% - 167 8 0.5% (500.0) -2.0% (500.0) -758 0.0% (1,000.0) -4.0% (1,000.0) (1,303
Slide 11: 2. STA Business Highlights
2. STA BUSINESS HIGHLIGHTS 11
Slide 12: Our Global Presence
Our Global Presence 44,680 rai of rubber plantations 70 procurement centers China Thailand USA 36 processing plants Myanmar Vietnam 6 sale & distribution hubs Glove business Singapore 4 factories in Thailand Indonesia 1,323,873 tons 10% share of global 29% share of 14% share of China’s 8% share of G
Slide 13: 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% Estimated Mature Plantations 19 Provinces in Thailand Lampang (rai) 50,000 40,000 Mature plantation Accum. mature plantation 38,121 42,371 44,296 44,680
Slide 14: Midstream Operations – NR Processing
Midstream Operations – NR Processing Production Capacity (mil. tons) 36 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 Total
Slide 15: Downstream Operations – Finished Products
Downstream Operations – Finished Products Examination Gloves 4 Factories in Thailand, the world largest source of concentrated latex 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 b
Slide 16: Global Gloves Consumption
Global Gloves Consumption Global Gloves Demand [bn pcs.] Gloves Consumption Per Capita [2017] 300 Key Drivers Average growth 6-8% per year China 6 Increasing hygiene standards 250 Emerging new health threats India 8 200 Coming into aging population Asia 11 Being indispensable & disposal products
Slide 17: Gloves Capacity and Sales Development
Gloves Capacity and Sales Development Gloves Capacity [mn pcs.] 20,000 17,831 17,831 17,831 18,000 16,028 16,000 14,158 14,000 12,726 13,243 13,243 12,898 12,201 12,000 10,000 8,000 6,000 4,000 2,000 0 2012 2013 2014 2015 2016 2017 2018f 2019f 2020f 2021f Capacity (Million Pieces) 17
Slide 18: 3. Market Situation & Industry Outlook
3. MARKET SITUATION & INDUSTRY OUTLOOK 18
Slide 19: NR World Balance
NR world balance Natural Rubber Demand & Supply Tightening Supply (Unit : million tons) Demand (LHS) Supply (LHS) Supply Surplus / (Deficit) (RHS) (Unit : ‘000 tons) 20 1,000 Global NR supply d is expected at 13.2 911 million tons, +6.1% in 2017 and average 15 800 15.2 15.5 15.9 16.2 +2.4% in the ne
Slide 20: The World's Major NR Consuming and Producing Countries
The World’s Major NR Consuming and Producing Countries 2017 Major suppliers of Natural Rubber 2017 Major consumers of Natural Rubber Others 10% CAMAL 4% Indonesia Others 17% China India 5% 25% Thailand 5% Japan 5% 13.0 39% Vietnam 9% 13.2 mil. tons mil. tons Malaysia 4% Indonesia 5% Malaysia 6% Thai
Slide 21: 2018 Natural Rubber Industry Outlook
2018 Natural Rubber Industry Outlook Supportive Concern • Volatility in Future Market. (5-year • Supply surplus situation • Strong US Economic data historical high of open • Uncertainty in International Trade interest) • Rigid environmental policies in China Policies • Commodity price movement • Cur
Slide 22: Member of Sri Trang Group
member of SRI TRANG GROUP
Sri Trang Agro-Industry Public Company — FY2017 Earnings Presentation on 6ix