Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — Q2 2021 Earnings Presentation
33 slides from Sri Trang Agro-Industry Public's earnings presentation, Aug 10, 2021
Slide 1: 2Q21 Presentation
STA 2Q21 Presentation The Stock Exchange of Thailand The Stock Exchange of Thailand SET50 Index SETTHSI Index 10 August 2021
Slide 2: Agenda
Agenda 1. Financial Performance 2. STA Business Highlights 3. Natural Rubber Market Situation 2
Slide 3: Financial Performance
1 FINANCIAL PERFORMANCE 3
Slide 4: Rubber Price Movement
Rubber Price Movement 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 300 AVG. of TSR20 133.5 (-2.5%) 110.8 (-17.0%) 128.1 (+15.6%) 154.5 (+20.6%) 167.0 (+8.1%) 165.3 (-1.0%) RSS3 TSR20 260 SICOM Price 220 (US cent : Kg.) 180 140 100 02-Nov-20 02-Jul-20 02-Aug-20 02-Jul-21 02-Jan-20 02-Apr-20 02-May-20 02-Jan-21 02-A
Slide 5: Sales Volume – NR's Sales Volume Maintained Growth Momentum
Sales Volume –– NR’s Sales Volume Maintained Growth Momentum Glove’s Sales Volume Dropped due to COVID Cases in Factories and Logistics Issue Natural Rubber Products (tons) Glove Products (million pieces) +17.2% -8.9% +30.2% -22.8% -4.5% -15.1% 637,840 13,692 544,109 12,467 326,183 311,657 7,414 6,7
Slide 6: Sales Revenue – Natural Rubber Contributed 56% of Total Revenues
Sales Revenue – Natural Rubber Contributed 56% of Total Revenues Sales Revenue by Product (THB million) Sales Breakdown by Product [2Q21] LTX Gloves +87.5% 1% 44% 61,383 31 RSS 5% 29,831 Mil.Baht TSR 50% +95.4% 28,452 -5.6% 31,580 29,804 32,737 25 Sales Breakdown by Region [2Q21] Others 17 1,650 14
Slide 7: Gross Profit – Robust GPM
Gross Profit – Robust GPM NR’s Gross Profit (THB million) Glove’s Gross Profit (THB million) Blended Gross Profit (THB million) 4,500 15% 24,000 75.9% 80% 72.6% 27,000 50% 4,000 11.7% 68.7% 12.1% 70% 42.9% 20,000 24,000 11.2% 12% 39.9% 3,500 10.5% 60% 36.8% 40% 21,000 3,000 9.2% 16,000 50% 18,000 9%
Slide 8: SG&A, Gain on FX, and Other Gain
SG&A, Gain on FX, and Other Gain SG&A (THB million) Gain on FX from AP & AR, and Other Gain (THB million) Selling Exp. Admin Exp. SG&A/Sales Gain [Loss] on Fx Other Gain [Loss] 8,000 10.0% 600 7,000 400 7.7% 7.4% 8.0% 200 6,000 225 452 51 503 0 89 (31) (110) (24) 5,000 5.8% 5.5% 6.0% -200 5.2% 4,000
Slide 9: EBIT & Net Profit
EBIT & Net Profit EBIT (THB million) - Quarterly Net Profit (THB million) – Quarterly EBIT Financial costs Income tax (expense) Share of profit (loss) from investments in associates & JV Net profit (loss) EBIT margin (%) 25,000 40% 13,000 25.0% 36.0% 20,684 11,002 33.7% 31.3% 105 18.9% 20,000 10,000
Slide 10: Financial Highlight
Financial Highlight (Unit : THB million) 2Q21 2Q20 %YoY 1Q21 %QoQ 6M21 6M20 %YoY FY20 Revenue 29,804 15,256 95.4% 31,580 -5.6% 61,383 32,737 87.5% 75,479 NR Sales volume (tons) 311,657 239,387 30.2% 326,183 -4.5% 637,840 544,109 17.2% 1,032,284 NR Avg. selling price (USD per ton) 1,723 1,346 28.1% 1
Slide 11: Balance Sheet – Very Strong Financial Status
Balance Sheet – Very Strong Financial Status Asset (THB million) Liability & Equity (THB million) 102,268 102,268 93,177 93,117 Cash and cash equivalent 16,455 ST-Debt 27,485 AR 2,477 26,447 22,162 4,932 Inventories 2,725 Current Portion of LT-Debt 11,976 3,899 10,669 9,260 Other current assets 1,72
Slide 12: Growth Opportunity with Good Dividend Payment
Growth Opportunity with Good Dividend Payment The Company has a dividend policy to pay dividend distributions to shareholders At least 30 percent of its net profit based on the Company’s separate financial statements Declaration Date Record Date Payable Date Amount [Baht per Share] 2021 Aug, 10 2021
Slide 13: STA Business Highlights
2 STA Business Highlights aaa
Slide 14: About STA: The World's Leading Fully Integrated Natural Rubber Company
About STA: The World’s Leading Fully Integrated Natural Rubber Company Established in 1987 Rubber Plantations Rubber Processing Rubber Gloves Downstream Upstream Midstream 34 NR processing plants in Thailand, 3 locations of glove factories in Thailand 45,000 rai 33 Indonesia and Myanmar 2.8 million
Slide 15: Upstream Operations – Rubber Plantation
Upstream Operations – Rubber Plantation Number of Rubber Trees (2021F) TappingTrees Immature Trees 2.34 49% 41% million trees Estimated Mature Plantations Lomsak - Phetchabun 19 Provinces in Thailand 12,000 10,000 Production, tons (LHS) Tapping, trees (RHS) 2,500,000 Lampang Phrae 2,000,000 Sukothai
Slide 16: Upstream Operations – Hemp Plantation
Upstream Operations – Hemp Plantation CCTV CCTV D C Planting Area B A Already submitted the Application for the initial project CCTV CCTV CCTV Restroom Location: Thoen, Lampang, Thailand Facility Area Waste Office CCTV Management Total Area: 5 Rais CCTV Entrance Guardhouse Soil testing: To confirm n
Slide 17: Digital Traceability to Sritrang's Hemp Product
Adding Uniqueness by Providing ‘Digital Traceability’ to Sritrang’s Hemp Product We currently supply Scaling up the plantation following Hemp’s seeds consumers’ demand Hemp’s leaves “Digital Traceability” Hemp’s roots to our contracted customers Sritrang’s hemp products are traceability to create mo
Slide 18: Midstream Operations – NR Processing
Midstream Operations – NR Processing A strong Increase in Market Share Rubber Production in Thailand 34 processing facilities 100% Utilization Rate (%) Capacity*: 2.81 mil. tons/annum 80% 71% 72% 67% STA 30% 24 2.10processing facilities 60% 62% 55% 55% 55% TSR Capacity*: mil. tons/annum 3 0.18proces
Slide 19: Major Customers in Midstream Business
Major Customers in Midstream Business Global Brands 19
Slide 20: Expansion of Concentrated Latex Plants
Expansion of Concentrated Latex Plants Bueng Karn [Expected commercial run in 1Q2022] Investment Budget 900 Million Bath Increase LTX Capacity 104,000 Tons/Year Kanjanadit, Suratthani [Expected commercial run in 4Q2022] Expansion in new plants Narathiwas Land Preparation in Bueng Karn Expansion in e
Slide 21: Downstream Operations – Finished Products
Downstream Operations – Finished Products STGT, is a Flagship Company of Sri Trang Group with 56% shares owned by STA STU STGT SDME Established in 1989 35 3 bn. pcs.installed capacity per annum locations of glove factories in Thailand 28.0 12.5 bn. pcs. bn. pcs. sold in 2020 sold in 6M21 ABBREVIATIO
Slide 22: Our Gloves Products
Our Gloves Products Product Range Revenue breakdown Product Mix by Revenue 20% 29% Examination/ NBR 40% 46% OBM Non-Examination Gloves 80% OEM NRPF 24% 23% 71% NRPD 36% 31% Latex Nitrile FY20 6M21 FY20 6M21 Note: There is a reclassification of OBM products. Powdered Powder-Free Powder-Free Our Brand
Slide 23: Global Glove Market Outlook
Global Glove Market Outlook Double Digit Growth for Long-Term Global Glove Demand Global Glove Demand [bn. pcs.] 500 25% Global Market Share 450 Estimation for 2021 20% 400 20% Indonesia 350 17% China 3% 15% 10% 300 15% 12% Thailand 250 10% 18% Malaysia 200 420 10% 67% 360 150 300 268 100 212 233 5%
Slide 24: Low Glove Consumption per Capita in Emerging Market
Low Glove Consumption per Capita in Emerging Market 24
Slide 25: Strategic Location for Key Suppliers and Tax Privileges
Strategic Location for Key Suppliers and Tax Privileges New Capacity & CAPEX 11,419 10,209 150,000 6,487 5,782 10,000 3,661 4,183 1,799 130,000 Installed capacity mn pcs. (LHS) 102,544 - 110,000 Additional mn pcs. (LHS) 90,683 90,000 82,029 11,861 (10,000) Installed capacity 71,320 8,654 CAPEX THB m
Slide 26: Natural Rubber Market Situation
3 NATURAL RUBBER MARKET SITUATION 26
Slide 27: Global NR Purchases: Peak Season in Each Region
Global NR Purchases: Peak Season in Each Region Region Country January February March April May June July August September October November December East Asia China (Yunnan) East Asia China (Hainan) Africa Ivory Coast Africa Ghana SE Asia Vietnam South AsiaIndia SE Asia Thailand SE Asia Cambodia SE
Slide 28: Global NR Situation
Global NR Situation Natural Rubber Demand & Supply (Unit : million tons) Demand (LHS) Supply (LHS) Supply Surplus / (Deficit) (RHS) (Unit : ‘000 tons) 18 500 15 16.1 16.4 16.6 331 15.5 15.8 300 14.8 15.2 13.8 13.6 14.2 12 13.2 13.6 12.7 12.5 242 12.2 12.1 165 9 122 123 100 61 71 6 (52) (68) (66) (86
Slide 29: NR Supply & Demand
NR Supply & Demand 2021F Major NR Producers NR Production from Top 10 Producers 2021F global production growth = +6.5% YoY .+3.6% 2020 2021 Others 4% 4,670 4,506 Malaysia 4% +10.0% India 5% Thailand 3,081 CAMAL 6% 34% 2,800 +4.9% China 6% 13.86 +16.1% +3.9% +20.7% +2.2% +10.5% +2.1% +1.9% mil. tons
Slide 30: Snapshot of World Rubber Statistics
Snapshot of World Rubber Statistics Global NR Production Trend Global NR Consumption Trend 4% 1.60% 20% 19.00% 2% 0% 15% -0.70% 10% -2% -1.50% 5.00% -4% 5% -6% -5.10% 0% -5.50% -0.90% -8% -5% -3.10% -6.80% -10% -10% -12% -15% -12.20% -15.30% -14% -20% 2019 2020 2Q20 3Q20 4Q20 1Q21 2019 2020 2Q20 3Q2
Slide 31: News Update: Anti-Dumping Duty
News Update: Anti- Dumping Duty Excepting for: 21.74% - Hankook Tire & Technology Co. Ltd.: 27.05% - Nexen Tire Corp: 14.72% Korea U.S. DEPARTMENT OF COMMERCE INITIATES ANTIDUMPING Excepting for: DUTY AND COUNTERVAILING DUTY INVESTIGATIONS OF 84.74% - Cheng Shin Rubber Ind. Co. Ltd.: 20.04% IMPORTS
Slide 32: Awards in terms of ESG
Awards in terms of ESG SRI TRANG ROUP @=r AAAAA “Sustainable Growth” THAILAND + Good Corporate Governance + CG and AGM score SUSTAINABILITY SET + Anti-comrption + Member of The Private Sector Collective 2020 The Stock Exchange of Thailand SETTHSI Index Increased production and Expand market share Ac
Slide 33: Contact Investor Relations
Contact Investor Relations Tel: (+66)2-207-4500 Ext. 1402 E-Mail: IR@sritranggroup.com 33
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