Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — Q3 2014 Earnings Presentation
18 slides from Sri Trang Agro-Industry Public's earnings presentation, Nov 14, 2014
Slide 1: A World Leading Natural Rubber Player
Third Quarter 2014 Presentation 14 November 2014 A World Leading Natural Rubber Player
Slide 2: Disclaimer
Disclaimer Certain forward looking statements may be made in the course of the presentation. These forward- looking statements generally can be identified by use of statements that include words or phrases such as STA or We or our management “believe”, “expect”, “anticipate”, ”intend”, ”plan”, ”fore
Slide 3: Q3 2014 Results
ee member of SRI TRANG GROUP Q3 2014 Results ember of SRITRANG GROUP) ——L
Slide 4: Financial Highlights – Q3 2014
Financial Highlights – Q3 2014 (THB million) FY’12 FY’13 %YoY Q3'13 Q3'14 %YoY Q2'14 %QoQ Revenue 99,639 92,185 ▼7% 21,495 16,812 ▼22% 18,410 ▼9% Sale volume 975,604 1,126,463 ▲15% 279,687 284,877 ▲2% 284,913 ▼0.01% (tons) Avg. selling price 99,966 79,600 ▼20% 74,422 56,756 ▼24% 62,497 ▼9% (Baht per
Slide 5: Revenue overview
Revenue overview Revenue breakdown by product (THB mm) Revenue breakdown by geography (THB mm) RSS TSR Con. Latex Others -21.8% -21.8% -8.7% -8.7% 23,930 590 22,765 21,495 2,057 625 680 1,698 1,511 18,410 603 16,812 1,254 644 1,302 18,097 17,373 16,470 13,853 12,666 2,834 3,186 3,069 2,700 2,200 Q3
Slide 6: Revenue by Geography and GP per Ton
Revenue by Geography and GP per Ton Revenue breakdown by geography (tons) Adjusted Gross Profit* per Ton (THB) THB mm +1.9% -32.4% -0.0% +587.0% Note*: Adjusted Gross Profit = Gross Profit after adjusting for (reversal) allowance of inventory cost and realised forex gains / losses 5
Slide 7: Gross profit and gross profit margin
Gross profit (“GP”) and gross profit margin (“GPM”) GP After adjusting for allowance (reversal) of Gross Profit inventory cost and realised forex gains/losses THB mm GPM % THB mm Margin % -33.2% -31.2% +38.7% +588.3% 6
Slide 8: SICOM Price and F/X
SICOM Price and F/X SICOM Price Movement Avg. price 225 212 184 RSS 156 (US cent : Kg.) 198 173 163 TSR 148 259 253 234 231 THB/USD Movement Avg. = 31.9729 32.2304 7
Slide 9: Earning before tax, net profit and net profit margin
Earning before tax, net profit and net profit margin Earning before interest expense & tax (THB mm) Net profit (THB mm) and net profit margin Share of profits from associates & a Joint Venture % of profits from Net profit Net profit margin % associates & a Joint Operating profits Venture to PBIT +10
Slide 10: Return on Assets and Return on Equity
Return on Assets and Return on Equity EBITDA (THB mm) EBITDA margin -1.5% +62.5% ROA ROE *Annualised basis 9
Slide 11: Capital expenditure
Capital expenditure Total capital expenditure (Baht mm) Capital expenditure by products (%) Total estimated effective production capacity (million tons) and %utilisation rate 10
Slide 12: Working capital overview
Working capital overview Trade receivables days Days Working Capital Cycle Inventory turnover days Days Cash turnover cycle (days)1 Days 100 78.1 80.8 75.2 80 64.1 60 Trade payables days 40 Days 12 9.8 20 9.5 10 6.5 7.2 0 8 FY2011 FY2012 FY2013 9M 2014* 6 4 1 Cash turnover days = Trade receivable da
Slide 13: Robust leverage and coverage ratios
Robust leverage and coverage ratios Debt / equity Net debt / equity Interest Coverage Debt = Total liabilities Equity = Total equity Assets = Total assets Net debt = debt – cash Cash = cash and cash equivalents + fixed deposits at financial institutions Interest Coverage = EBITDA/finance costs 12
Slide 14: Our Business & Industry Updates
Our Business & Industry Updates 13
Slide 15: Our Business Strategy Updates
Our Business Strategy Updates Enhance Continuously Enter into Upstream Procurement Expand Rubber Plantation Stronghold Capacity • To procure raw materials at more • To have an excellent integrated system • To gain higher market share for long- favorable prices in new rubber to build long-term relati
Slide 16: Target & Capex
Target & Capex Target CAPEX Plan CAPEX 2014f 2015f 2016f Production capacity : 1.4 mil tons (Unit: THB mn.) Sale volume : 1.2 mil tons Capacity 1,850 1,100 500 Adj. GP margin : 5-7% Expansion Plantation 975 460 500 Net profit margin : 1.5 - 2.5% Maintenance 450 350 250 Dividend policy : 30% of net p
Slide 17: Industry Updates
Industry Updates NR industry • NR Industry continues to be pressured by stuttering global economy, ample supply, and unfavorable market sentiment in China. • In longer outlook, recovery signs of global economy and positive growth prospect for the year 2015 could improve NR market sentiment. NR deman
Slide 18: Q&A Investor Relations Department
Q&A Investor Relations Department Tel: +662 207 4500 Fax: +662 108 2244 Email: IR@sritranggroup.com 17
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