Sahamitr Pressure Container Public Co. Ltd. · SET:SMPC
Sahamitr Pressure Container Public — H1 2018 Earnings Presentation
42 slides from Sahamitr Pressure Container Public's earnings presentation, Aug 14, 2018
Slide 1: Opportunity Day-1H18 Presentation
Sahamitr Pressure Container Public Company Limited Opportunity Day-1H18 Presentation Presented by: Mr. Surasak Urpsirisuk Mrs. Patama Laowong 14 August 2018 0
Slide 2: Agenda
Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights IV. Business Outlook 1
Slide 3: Agenda
Agenda I. SMPC Overview • Profile • Products • Process II. Industry Overview III. Financial Highlights IV. Business Outlook 2
Slide 4: Profile
I. SMPC Overview : Profile • Established in 1981 & Listed in SET 1991 • Produces many types of LPG and other low-pressure containers with current production capacity at 8.2 million cylinders per year • Located in Bangkok, Thailand 3
Slide 5: Key Milestones
I. SMPC Overview : Profile Key Milestones • • Capacity increased to 10 million by end of 2018 ESG100 Award from Thaipat Institute for 3 consecutive years • Paid-up capital increased to THB 532 million due to ESOP 2018 “SMPC has continuously developed its business exercise since its establishment to
Slide 6: Awarded ESG100 Company 2016-2018
I. SMPC Overview : Profile Awarded ESG100 Company 2016-2018 On May 17, 2018, The company was informed that we received “ESG100 Company 2018” from Thaipat Institute for top 100 publicly listed companies that are most outstanding in terms of Environmental, Social and Governance (ESG) performance. The
Slide 7: UP Investor SUMMIT 2018 & CII Partnership SUMMIT 2018
I. SMPC Overview : Profile UP Investor SUMMIT 2018 & CII Partnership SUMMIT 2018 During February 22-26, 2018, the company with Ministry of Commerce attended UP Investor SUMMIT 2018 and CII Partnership SUMMIT 2018 event at Uttar Pradesh and Andhra Pradesh, India to promote our company, products and s
Slide 8: WLPG MYANMAR SUMMIT 2018
I. SMPC Overview : Profile WLPG MYANMAR SUMMIT 2018 During March 28-29, 2018, the company attended WLPG MYANMAR SUMMIT 2018 event at Yangon, Myanmar to promote our products and services to prospective and current customers 7
Slide 9: Thailand Week 2018 DHAKA
I. SMPC Overview : Profile Thailand Week 2018 DHAKA During April 23-26, 2018, the company attended Thailand Week 2018 at Pan Pacific Sonargaon Dhaka Hotel, Dhaka – Bangladesh to promote our company, products and services to prospective and current customers in Bangladesh. 8
Slide 10: World-Class Cylinder Manufacturer
I. SMPC Overview : Profile World-Class Cylinder Manufacturer “Currently, SMPC is still maintain its marketing position as one of the Top 3 LPG cylinder manufacturers in global market with various customers based in almost 100 countries ” List of Top 10 Cylinder Manufacturers SMPC’s Present in Global
Slide 11: Key Success Factors
I. SMPC Overview : Profile Business Key Success Factors “Experienced in LPG cylinder business about 37 years, SMPC, currently, is one of the world-leading manufacturer who offers variety of products and service with excellent quality assurance” 1. Quality Product and Service Excellence 2. Process Im
Slide 12: Wide Ranges of Product Coverage
I. SMPC Overview : Products Wide Ranges of Product Coverage Household LPG Cylinder Automotive LPG Cylinder Cylindrical Type Toroidal Type 2-piece Cylinder 3-piece Cylinder Size: 25 – 133 liters Size: 0.9 – 36 liters Size: 43 - 450 liters (0.5 - 16 kg.) (18 – 200 kg.) Other Cylinders Methyl Bromide L
Slide 13: Our customers and Others Customers
I. SMPC Overview : Products (Customer) Our customers And Others Customers 12
Slide 14: LPG Cylinder Production Process
I. SMPC Overview : Process LPG Cylinder Production Process 2-piece Body Circumferential Welding Heat Treatment Steel Coils 3-piece Cutting & Forming Accessories & Parts Welding Longitudinal Welding Hydrostatic Test & Pressure Tests Complete Cylinder Air Leak Test Valve Tightening Painting Surface Pr
Slide 15: Agenda
Agenda I. SMPC Overview II. Industry Overview • Overview • Growth Opportunities • Campaign III. Financial Highlights IV. Business Outlook 14
Slide 16: About the Industry
II. Industry Overview About the Industry • The report show that Global LPG production in 2016 increased from 2015 by 5.75%. • Almost half of the world’s demand for LPG is as a residential fuel where much of it is used for cooking. Source: WLPGA Annual Report 2017 15
Slide 17: Predicted Global LPG Consumption
II. Industry Overview Predicted Global LPG Consumption • Predicted global LPG consumption is gradual growth each year, so there are abundant opportunities for SMPC to grow. • This high temperature of LPG makes it an excellent fuel for cooking, especially in Asia where the use of the wok demands a fi
Slide 18: Large Room for Household LPG Demand Growth in Selected Areas
II. Industry Overview Large Room for Household LPG Demand Growth in Selected Areas Percentage of Population Using Solid Fuels (%) “There are rapidly increasing demands of LPG especially in Africa and Asia due to household and economic expansion. SMPC, therefore, believes that our major market still
Slide 19: LPG Consumption Growth in Developing Countries
II. Industry Overview : Growth Opportunities LPG Consumption Growth in Developing Countries “With its environmental friendly usage and energy efficiency, LPG is currently promoted to replace heating with firewood; therefore, there is a great opportunity to grow in those regions, e.g. Africa” Major T
Slide 20: Cooking for Life Campaign by World LPG Association
II. Industry Overview : Campaign Cooking for Life Campaign by World LPG Association “A campaign of the global LPG industry, aims to transition ONE BILLION people from cooking with traditional fuels as well as other dirty and dangerous fuels such as Kerosene to cleaner-burning LPG by 2030” • Exposure
Slide 21: Agenda
Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights • Utilization Rate • Sales Revenue • Financial Ratios IV. Business Outlook 20
Slide 22: Operational Statistics: Utilization Rate 1Q17-2Q18
III. Financial Highlights : Utilization Rate Operational Statistics Utilization Rate (%) 1Q17-2Q18 Sales Volume (Million Cylinders) Utilization Rate 1.9 1.9 • Utilization Rate of 2018 increased because 1.8 1.8 of more production volume from constant demand from Asia and Africa. 1.6 1.6 Capacity (mil
Slide 23: Operational Statistics: Utilization Rate 2013-1H18
III. Financial Highlights : Utilization Rate Operational Statistics Utilization Rate (%) 2013-1H18 Sales Volume (Million Cylinders) Utilization Rate 6.9 5.7 4.7 4.1 3.7 3.2 Capacity 2011-2013 2014 2015-2016 2017 2018 (million cylinder) Per Year 5.0 5.5 6.2 7.7 8.2 Per Quarter 1.25 1.38 1.55 1.93 2.0
Slide 24: Sales Revenue by Product Category 1Q17-2Q18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sales Revenue by Product Category : 1Q17-2Q18 Sales Revenue (Million Baht) 2Q18 1,230 1,199 1,207 1,126 1,030 972 1,230 million baht 23
Slide 25: Sales Revenue by Product Category 1H17-1H18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sales Revenue by Product Category : 1H17-1H18 Sales Revenue (Million Baht) 1H18 2,437 2,325 2,002 2,437 million baht 24
Slide 26: Sales Revenue by Product Category 2013-1H18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sale Revenue by Product Category : 2013 -1H18 Sales Revenue (Million Baht) 4,327 3,469 2,876 2,826 2,437 2,121 25
Slide 27: Sales Revenue by Geography 1Q17-2Q18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sales Revenue by Geography : 1Q17 – 2Q18 2Q18 Sales Revenue (Million Baht) 1,199 1,207 1,230 1,126 1,030 972 1,230 million baht 26
Slide 28: Sales Revenue by Geography 1H17-1H18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sales Revenue by Geography : 1H17 – 1H18 1H18 Sales Revenue (Million Baht) 2,325 2,437 2,002 2,437 million baht 27
Slide 29: Sales Revenue by Geography 2013-1H18
III. Financial Highlights : Sales Revenue Operational Statistics (Cont’d) Sales Revenue by Geography : 2013 – 1H18 Sales Revenue (Million Baht) 4,327 3,469 2,876 2,826 2,437 2,121 28
Slide 30: Financial Ratios: Margins and Profit 1Q17-2Q18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) GPM, EBITDA Margin and NPM (%) 1Q17-2Q18 Gross Profit, EBITDA and Net Profit (MB) 1Q17-2Q18 • GPM, EBITDA Margin and NPM of 2Q18 increased from 1Q18 due to weaker value of Baht and an increase in sale price as from an incre
Slide 31: Financial Ratios: Margins and Profit 2013-1H18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) GPM, EBITDA Margin and NPM (%) 2013-1H18 Gross Profit, EBITDA and Net Profit (MB) 2013-1H18 30 Remarks * NPM of 2015 (NO DTA) = 11% Exchange Rate Steel Price
Slide 32: Financial Ratios: Debt and Interest Coverage 1Q17-2Q18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) IBD* to Equity Ratio, IBD* to EBITDA Ratio (times) Financial Cost (million baht), Interest Coverage Ratio (times) 1Q17-2Q18 1Q17-2Q18 Times million baht Times • IBD to Equity and IBD to EBITDA Ratio of 2Q18 increased from 2
Slide 33: Financial Ratios: Debt and Interest Coverage 2013-1H18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) IBD* to Equity Ratio, IBD* to EBITDA Ratio (times) Financial Cost (million baht), Interest Coverage Ratio (times) 2013-1H18 2013-1H18 Times million baht Times 32 Remarks * IBD = Interest Bearing Debt
Slide 34: Financial Ratios: Asset Turnover, ROE and ROA 1Q17-2Q18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) Fixed Asset Turnover and Asset Turnover (Times) ROE and ROA (%) 1Q17-2Q18 1Q17-2Q18 • Fixed Asset Turnover of 2Q18 slightly decrease from prior period because the company acquired new land in 1Q18 • Asset Turnover of 2Q18 s
Slide 35: Financial Ratios: Asset Turnover, ROE and ROA 2013-1H18
III. Financial Highlights : Financial Ratios Operational Statistics (Cont’d) Fixed Asset Turnover and Asset Turnover (Times) ROE and ROA (%) 2013-1H18 2013-1H18 34
Slide 36: Dividend Payment History
III. Financial Highlights : Financial Ratios Dividend Payment History 2014 2015 2016 2017 1H18 FS publication day 2/12/2015 2/11/2016 15/2/2017 14/2/2018 10/8/2018 Price per share 7.58 11.00 16.60 13.40 12.90 Dividend per share 0.35 0.44 0.64 0.60 0.30 Earning Per Share 0.59 0.85 1.02 1.00 0.53 Divi
Slide 37: Agenda
Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights IV. Business Outlook 36
Slide 38: 2018 Target and Future Growth Strategy
IV. Business Outlook 2018 Target and Future Growth Strategy Projected Sales Volume (million cylinders) Projected Utilization (%) Capacity 2011-2013 2014 2015-2016 2017 2018 2019(F) (million cylinder) Per Year 5.0 5.5 6.2 7.7 8.2 10.0 Per Quarter 1.25 1.38 1.55 1.93 2.05 2.50 37 Remarks: *Capacity wi
Slide 39: 2018-2019 Business Plan
IV. Business Outlook 2018-2019 Business Plan 2018 (Short) Process Improvement • Debottlenecking • Waste Reduction Capacity Enhancement • Target Capacity: 10 million cylinders 2019 (Medium-Long) by 2018 Feasibility Study on investing for both domestic and aboard • Joint with strategic partner 38
Slide 40: 2018 Attend International Exhibition
IV. Business Outlook 2018 Attend International Exhibition 39
Slide 41: Disclaimer
Disclaimer This document is addressed solely to participants of the meeting for the purposes of their information only and is not to be distributed, in whole or in part, to any other person without prior written consent of Sahamitr Pressure Container PLC. (‘SMPC’ or ‘the Company’). This document, an
Slide 42: Thank You Q&A
THANK YOU Q&A Contacts : – Tel: 02-895-4139-54 – E-mail: ir@smpcplc.com – Website: www.smpcplc.com Trusted Cylinder for Your Home Trusted Partner for Your Business 41
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