Green River Holding Co., Ltd. · TPEX:8444
Green River — Investor Presentation (December 2017)
50 slides from Green River's investor presentation, Dec 5, 2017
Slide 1: Green River Holding Co. Ltd. Stock Code: 8444.TT
ak 7A] A (BBR Green River Holding Co. Ltd. Stock Code: 8444.TT
Slide 2: Agenda
1.Company Overview………………..……….…….2 2.Product Overview……………….…….……..5 3.Business Environment….…….…….……9 4.Operation Overview……….…………...30 5.Competitiveness and Prospects….…..39 6.Q&A………………….…………………………………45 1
Slide 3: Company Overview
Company Overview
Slide 4: 1.1 Company Overview
1.1 Company Overview Green River Holding Co. Ltd. (8444.TT) Year of Founding: 2011 Year of Listing: 2015 Chairman: Hsieh, Jung-Hui CEO: Huang, Teng-Shih Operating Number of Thailand 895 (2017.09) Headquarters: Employees: Market NTD 11.29 billion Capitalization: (USD 376.3 million) 2016: 20173Q: Oper
Slide 5: Group structure
Green River Holding Co. Ltd. 100% 100% 100% 100% Green River Wood Green River Happy Magic Green River Panels & Lumber Panels Trang International (Thailand) Co., Ltd. Manufacturing (Thailand) Co., Ltd. Limited (Thailand) Co., Ltd. 48.39% 85% Green River TDIC South Parawood Co., Ltd Co.ltd. 100% Thail
Slide 6: Product Overview
Product Overview
Slide 7: 2.1 Main Products
2.1 Main Products Panels: Particle Board Melamine Faced Chipboard (MFC) Applications by our customers: Kitchen Cabinets 、Office furniture 、Drawer Units 、Flooring 、Pallets 、Speaker Boxes、Green Buildings 、Eco-Friendly Engineered Building Products Green Sustainability Technological Cost Effective Fashi
Slide 8: 2.1 Main Products - Solid Wood
2.1 Main Products Solid Wood Applications by our customers: Table tops、Chairs 、 Floorboards、Engineered Building Products and other Decorative Products 7
Slide 9: 2.2 Production Process - PB
2.2 Production Process - PB Log Chipping Flaking Drying Classifying Slab Trimming Mat Glue Cooling Pressing Sifting Forming Blending Stacking Cutting-to- Finished Sanding Packing size Panels 8
Slide 10: Industry Overview
Industry Overview
Slide 11: 3.1 Development of PB Industry - Europe
3.1 Development of PB Industry - Europe Europe at present Europe in the past (1961) 70 Years PB Production: 39.21Million m3 PB Production: 2.58 Million m3 PB: 66% of wood panels PB Industry in budding phase Population: 743 Million Population: 604 Million Consumption: 50m3/capita ‘000 Asia at present
Slide 12: Development Path of European PB Industry
3.1 Development of PB Industry - Europe Development Path of European PB Industry 2016: 1949: With a population 743 Germany was Million and 39.21 the first in the million m3 of PB Budding PB Industry: world to start production, the When postwar automatic consumption of PB is reconstruction began, pro
Slide 13: PB Production in Europe - Steady Growth
3.1 Development of PB Industry - Europe PB Production in Europe - Steady Growth (m3) Trend 1,945% 40 years Source: FAOSTAT Forestry; summarized by Green River Holding co. ltd 12
Slide 14: Percentage of European Engineered Wood Production, 2016
3.1 Development of PB Industry - Europe Percentage of European Engineered Wood Production, 2016 (PB, Plywood and MDF) MDF 25% PLY PB 9% 66% Source: FAOSTAT Forestry ; summarized by Green River Holding co. ltd PB accounts for up to 66% of Engineered wood panels in Europe， Europe，mainly resulting from
Slide 15: European Forest Resources
3.1 Development of PB Industry - Europe European Forest Resources With the awareness of environmental protection and sustainability, under a comprehensive policy and regulation, the area of planted forest in Europe has increased 0.17% to 1,015 million hectares since 1999. Nowadays, 25% of the world’
Slide 16: Particle Board - Green, Eco-friendly, Sustainable Resources
3.1 Development of PB Industry - Europe Particle Board - Green, Green, eco- eco-friendly and using Sustainable Resources Green: Green: Particle board manufacturing makes optimal use of residuals and by- products from the forest products industry, turning this waste and recycled material into higher-
Slide 17: Particle Board - Eco-friendly and Sustainable
3.2 Development of PB Industry – Europe Particle Board - Green, eco- eco-friendly and using Sustainable Resources Eco- Eco-friendly and Sustainable 1. Europe’s annual wood consumption is estimated at 160 million tonnes. This includes 15 million tonnes of recycled wood. (Note 2). Vienna has made an i
Slide 18: Lower Manufacturing Cost of Particle Board
3.2 Development of PB Industry – Europe Lower Manufacturing Cost of Particle Board Lower Material Cost： Cost： Particle board is manufactured from waste wood: Thinings from sawlog plantation forests Slabs, off-cuts, shavings, sawdust from sawmills, furniture factories Other lignocellulosic materials
Slide 19: Wide Range of Applications
3.3 Development of PB Industry - Europe Wide range of Applications COMMON USES FOR PARTICLEBOARD (Note1)： •Kitchen Cabinets •Office and Residential Furniture •Countertops •Door Cores •Floor Underlayment •Manufactured Home Decking •Shelving •Stair Treads By replacing solid wood in a variety of applic
Slide 20: Current status in European PB Industry - Bigger is Stronger
3.1 Development of PB Industry - Europe Current status in European PB Industry— Bigger is Stronger. Stronger. Particleboard manufacturing is a volume business. Kronospan is the largest European PB producer. It has more than 40 production sites and 11million m3 per year of PB production capacity. (ht
Slide 21: Development Path of Asia PB Industry
3.4 Development of PB Industry - Asia Development Path of Asia PB Industry 塑合板產業發展及現況 2016: With population 4.44 Billion and 33.62 million m3 of PB 2004: production, the The first installation consumption of PB is 8 m3 in Asia of a per 1000 people in Asia. continuous press for (Average per capita PB
Slide 22: PB Production in Asia (m3)
3.4 Development of PB Industry - Asia PB Production in Asia (m3) Growth 121% Source: FAOSTAT Forestry ;summarized by GRH 12 years 21
Slide 23: Particle Board Production Volume in Asia - Analysis 2016
3.4 Development of PB Industry - Asia Particle board Production Volume in Asia -Analysis 2016 2016 China 256 PB production lines in China by late 2016 25.72 Million m3 Production Volume 2016 Asia (Note2) 17.86 million m3 (P.23) 33.52 Million m3 (Note 1) 2016 Thailand Old and small PB factories 3.57M
Slide 24: Particle Board Production Volume in China - Analysis 2016
3.4 Development of PB Industry - Asia Particle board Production Volume in China - Analysis 2016 25 Continuous Press Lines Total Production Volume 256 PB production lines 5.5 million m3 Many small factories are re- capitalized or shutdown in China by late 2016 under the huge cost of Production Volume
Slide 25: Percentage for Asian Engineered Wood Panels Production, 2016
3.4 Development of PB Industry - Asia Percentage for Asian Engineered Wood Panels Production, Production, 2016 (PB, Plywood and MDF) PB MDF 14% 30% PLY 56% Source: FAOSTAT Forestry ;Summarized by GRH PB accounts for 14% 14% of Engineered wood panels in Asia， Asia，mainly resulting from 1. Late introd
Slide 26: Asian Forest Resources
3.4 Development of PB Industry - Asia Asian Forest Resources Forest area in Asia has increased 0.17% to 5.93 billion ha since 1999 which is 14.82% of world forest area. However, a high proportion of planted forests has concealed the fact that natural forests are disappearing rapidly throughout Asia.
Slide 27: Green, Eco-Friendly and Sustainability
3.4 Development of PB Industry - Asia Green、 Green、Eco- Eco-Friendly and Sustainability In response to environmental issues such as global warming，Asian countries are facing the destruction of the environment from estrepement and will need to take rescue actions, such as： 22.3亞洲塑合板產業發展及現況 1. Thailan
Slide 28: China Environment Protection Comprehensive List and Environmental Law
3.4 Development of PB Industry - Asia China published ”Environment Protection Comprehensive List ” & ”Most restrictive environmental Law” ： Plywood, PB and fiber boards are included in the list of highly polluting and environmentally risky products. Moreover, engineered wood which complies with envi
Slide 29: Advantage on Cost
3.4 Development of PB Industry - Asia Advantage on Cost Material Cost： Cost： With every country in Asia extending its limitation of deforestation, the cost of round wood from natural forests is increasing gradually. Plywood relies on round wood which will become increasingly expensive. However, PB u
Slide 30: Range of Application for Asian Particle Board
3.4 Development of PB Industry - Asia Range of Application for Asian Particle Board PB in Asia is mainly used for the manufacture of Wooden furniture Sources of raw material for Wooden Furniture are: Plywood Engineered Particle Board Wooden Wood Furniture Solid Wood Fiber Board Furniture made from e
Slide 31: Customized Furniture Market Rising in China
3.4 Development of PB Industry - Asia Customized Furniture market has risen in China which improves the demand for particle board in wooden furniture. 2016 was named the first year of Chinese customized furniture ： Ready-made furniture using engineered wood panels was mainly made from MDF in China u
Slide 32: Future of Particle Board in Asia
3.4 Development of PB Industry - Asia Future of Particle Board in Asia Wide range of applications is expected ： PB in Europe is used in the manufacture of kitchen cabinets, office and residential furniture, countertops, door cores, floor underlayment, manufactured home decking, shelving and stair tr
Slide 33: Operating Performance
Operating Performance 32
Slide 34: 4.1 Annual Consolidated Revenues
4.1 Annual Consolidated Revenues NTD Billion 3.00 Sales CAGR +9% (2012~2016) 2.83 2.63 2.50 2.33 2.34 YoY+36% (3Q16) 1.95 2.02 1.95 1.94 2.00 1.50 1.00 0.50 - 2011 2012 2013 2014 2015 2016 3Q-17 3Q-16 1H2016 : PB Line 2 starts production 33
Slide 35: 4.2 Sales Revenues by Product
4.2 Sales Revenues by product 100% 14% 22% 80% 33% 60% 40% 86% 78% 67% 20% 0% 2015 2016 3Q-17 Particle Board Solid Wood 34
Slide 36: 4.3 Market Sales Analysis - PB
4.3 Market Sales Analysis - PB 3Q- 3Q-2017 Q3- Q3-2017 India India Vietnam 1.03% Vietnam China Indonesia 0.32% 2.77% China Indonesia 3.52% 26.33% 14.04% 17.69% 19.39% Middle East Middle East 1.07% 2.12% Other Other 0.73% 0.75% Korea Malaysia Malaysia 8.14% 48.43% Korea 44.71% 8.96% 1H-2017 2016 Othe
Slide 37: 4.3 Market Sales Analysis - Solid Wood
4.3 Market Sales Analysis - Solid Wood 3Q-2017 Q3-2017 Thailand Thailand 6.94% 5.27% Other 0.31% China China 92.75% 94.73% 1H-2017 2016 Thailand Thailand 7.32% 8.09% Others 0.44% Others 0.53% China China 92.24% 91.38% 36
Slide 38: 4.4 Annual Margins
4.4 Annual Margins Operating Profit Margin Gross Profit Margin Operating Profit Margin-PB Operating Profit Margin-Soildwood 40% 36% 35% 32% 30% 30% 26% 25% 22% 21% 21% 20% 16% 15% 15% 13% 10% 8% 5% 3% 0% -5% -10% 2012 2013 2014 2015 2016 3Q-17 37
Slide 39: 4.5 Annual EPS after Tax
4.5 Annual EPS after Tax NTD 9.0 8.48 EPS 8.0 7.14 7.0 6.0 5.0 4.2 3.93 4.0 3.0 2.6 2.0 1.0 0.65 0.0 2011 2012 2013 2014 2015 2016 3Q-17 38
Slide 40: 4.6 Operational Efficiency
4.6 Operational Efficiency Item FY14 FY 15 FY 16 1H17 Cash and cash equivalents 633,896 405,065 703,964 3,792,973 Trade receivables, net 93,189 97,340 143,998 208,134 Trade receivables turnover 19 18 16 18 Inventories 78,812 101,709 148,910 189,275 Inventories turnover 19 24 25 26 Note and Trade pay
Slide 41: 4.7 Financial Ratios & Dividends Distribution
4.7 Financial Ratios & Dividends Distribution 3Q 2014 2015 2016 2017 Debt Ratio 47% 49% 51% 66% ROE 17% 14% 23% 31%* EPS 3.93 4.20 7.14 8.48 Dividend-Cash 2.00 2.20 3.1 - Dividend-Stock - - 0.1 - Payout Ratio 51% 52% 45% - *ROE is calculated on an annualised basis 40
Slide 42: Competitiveness and Prospects
Competitiveness and Prospects
Slide 43: 5.1 Competitiveness - Highly-automatic production line
5.1 Competitiveness Highly-automatic production line Production efficiency is better than other companies because of using the new equipment from German. 42
Slide 44: 5.2 Competitiveness - Core technologies
5.2 Competitiveness Core technologies Production criteria are controlled precisely, such as formaldehyde emission, dimensional stability, thickness swelling rate of water absorption and profile density…etc. Self-developing glue formula to reduce the costs. Particle Board have been adopted by the EU
Slide 45: 5.3 Expanding production scale
5.3 Competitiveness Expanding production scale New Particle board line (GPT) To be established in Trang province. 500,000 m3 per year Largest capacity in Thailand Located in rubber plantation area Close to sea port for export. Machinery to European Standard Upgrading existing PB line GPT PB Line 2 h
Slide 46: 5.4 Geographical Advantages
5.4 Competitiveness Geographical Advantages Bangkok GPT GP 45
Slide 47: 5.5 Business Prospect
5.5 Business Prospect Short- Short- •Enlarging capacity by horizontal expansion. term •Reducing cost by investing in own resin plant. strategy •Expanding sales market from Northeast Asia to Middle Long- Long- East. term •Horizontal expansion by increase in product portfolios. •Expansion through merg
Slide 48: Q&A
Q&A
Slide 49: 48
48
Slide 50: Disclaimer
Disclaimer This presentation contains forward-looking statements based on a number of factors such as economic conditions and industry environment which subject to significant risks and uncertainties。 The actual operating results, financial condition and the business prospects may be different from
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