Tpi Polene Public Co. Ltd. · SET:TPIPL
Tpi Polene Public — Non-Deal Roadshow (March 2024)
36 slides from Tpi Polene Public's roadshow presentation, Mar 22, 2024
Slide 1: TPI Polene Company Update SET Digital Roadshow
TPI Polene Company Update SET Digital Roadshow 22 March 2024
Slide 2: Disclaimer
Disclaimer: The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in TPI Polene Public Company Limited ( “The Company”) in any jurisdictio
Slide 3: Topics
Topics Background Financial and Outlook ESG and Sustainability
Slide 4: The Corporate Structure
The Corporate Structure TPI Polene Public Company Limited Agriculture, Healthcare & Construction Specialty Polymers &Chemicals Others Energy/Utilities 70.24% TPI Concrete Co., Ltd. 99.99% TPI All Season Co., Ltd. 99.99% Thai Propoxide Co., Ltd. TPI Polene Power Plc. 99.99% 99.99% Thai Nitrate Co., L
Slide 5: Key Assets and Features
Key Assets and Features Construction Materials Specialty Polymers/Chemical Segment Energy & Utilities • Specialty Polymers – 158,000 tons capacity • Cement - 4 lines totaling 13.5m tons capacity − HVA, customized with in-house proven R&D • Total current capacity 440 MW as below comprising >65% − Lar
Slide 6: Comprehensive and diversified product suite
Comprehensive and diversified product suite 22 March 2024 Digital Roadshow 6
Slide 7: Green Cement & Building Products
Green Cement & Building Products* TGO Certified * Official launch June 2023 22 March 2024 Digital Roadshow 7
Slide 8: Reinforced Fibre Cement – Newly Patented Product
Reinforced Fibre Cement – Newly Patented Product The innovative products, could help TPIPL penetrate a wider market. According to IndustryARC’s latest market research the fiber cement market is forecast to grow 6.2% pa reaching USD16.81 billion by 2030. Link: https://lnkd.in/gh9vdUBq 22 March 2024 D
Slide 9: EBITDA margin relatively better than peers; valuation cheaper
EBITDA margin relatively better than peers; valuation cheaper Local peer comparison: EBITDA margin 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 8Q avg ConsMat Peer 1 12.0% 9.8% 7.7% 4.0% 9.5% 9.9% 8.0% 9.0% 9.0% Peer 2 22.0% 25.0% 13.0% 7.0% 15.2% 15.4% 18.0% 24.5% 18.2% TPI Polene 13.0% 19.3% 10.3% 8.7%
Slide 10: Financial and Outlook
Financial and Outlook 22 March 2024 10
Slide 11: FY 2023 performance
FY 2023 performance 2023 EBITDA margin* ConsMat 11% Specialty Polymers/Chemicals 25% Energy & Utilities 60% Agri & Others -6% Overall 23% * Group Basis In 2023 sales dropped 11% YoY while EBITDA generated was down 25% YoY The biggest drop in sales was in the Specialty Polymer Division , down 37% YoY
Slide 12: EBITDA margin resilient
EBITDA margin resilient 22 March 2024 Digital Roadshow 12
Slide 13: EBITDA margin resilient… High Contribution from Energy & Utilities
EBITDA margin resilient… High Contribution from Energy & Utilities * Higher throughput in 4Q23, FY volumes were up 14% YoY * FY23, the lower average price sold EGAT was partly offset by higher price sold to the parent 22 March 2024 Digital Roadshow 13
Slide 14: Financial – defensive cash positioning
Financial – defensive cash positioning Funding costs 2023: 3.9% TRIS rating A- 1st time ever @ A level * Based on 1) Accounts & other receivables + 2) Inventories - 3) Accounts & other payables 22 March 2024 Digital Roadshow 14
Slide 15: Price Trends – per unit basis
Price Trends – per unit basis Price increases in some products Largely stable Price drops in others 22 March 2024 Digital Roadshow 15
Slide 16: Price Trends
Price Trends Price drop due to soft demand Benefits from logistics disruption 22 March 2024 Digital Roadshow 16
Slide 17: Price Trends
Price Trends Variable due to Ft and social policy Stable 22 March 2024 Digital Roadshow 17
Slide 18: Price Trends
Price Trends Energy prices off the 2021/22 highs… … and volatile in gas prices will influence Ft adjustments 22 March 2024 Digital Roadshow 18
Slide 19: Variables to watch… private construction
Variables to watch… private construction Residential Property Presales Lackluster, +1% YoY for 10 companies THB m 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 YoY QoQ 2022 2023 YoY% ANAN 2,191 3,910 4,101 7,349 5,288 4,362 5,163 4,700 -36% -9% 17,551 19,513 11% LPN 2,134 2,623 1,980 1,624 2,786 2,621 2,5
Slide 20: Variables to watch… public construction
Variables to watch… public construction New Contracts Public and Quasi Public Mostly Small Works CK STEC Source: Companies Presentation 22 March 2024 Digital Roadshow 20
Slide 21: Variables to watch… construction overseas
Variables to watch… construction overseas Short Term Potential Drivers : Cement Export Market • Reconstruction from flood - Dubai experienced its first major flood & and the Palm Islands have begun sinking. This will add on to the planned megaprojects estimated to cost USD 30 billion • Seawall to sa
Slide 22: Variables to watch… manufacturing
Variables to watch… manufacturing Operating rates of key EVA conversion industries losing momentum PMI data up to the end of Feb still indicate weak manufacturing activities globally. Euro Zone PMI has been improving Source: SCI-IBU, Bloomberg 22 March 2024 Digital Roadshow 22
Slide 23: Variables to watch – manufacturing
Variables to watch – manufacturing Spread is improving as EVA price is catching up Sources: ICIS 22 March 2024 Digital Roadshow 23
Slide 24: Variables to watch…manufacturing
Variables to watch…manufacturing Source: ICIS 22 March 2024 Digital Roadshow 24
Slide 25: TPIPL position in the market
TPIPL position in the market High EVA - Adhesive & Cable HVA EVA EVA – Solar Film EVA – Foam & coating Profit LDPE Difficulty 22 March 2024 Digital Roadshow 25
Slide 26: EBITDA and Capex - Guidance
EBITDA and Capex - Guidance • Achieved 2023 EBITDA was THB10,055 million hitting guided target Capex – including advances paid for PPE • Guidance for 2024 EBITDA is THB11,323 million, + 12.6% YoY • Major capex continuing plant modification - 150MW coal-fired power • Two new small MSW projects Key dr
Slide 27: Environment, Social and Governance (ESG)
Environment, Social and Governance (ESG)
Slide 28: Carbon-Related Merits
Carbon-Related Merits TPIPP – T-Ver Certificates TPIPP – Renewable Energy Certificates 22 March 2024 Digital Roadshow 28
Slide 29: Our Carbon Situation (Scope 1)
Our Carbon Situation (Scope 1) MSW related carbon merits EUA – Carbon Allowance Price Fossil free by 2026 Source: TPIPP SET Opportunity Day Presentation 22 March 2024 Digital Roadshow 29
Slide 30: Green Cement – basis for Green Building Products
Green Cement – basis for Green Building Products 22 March 2024 Digital Roadshow 30
Slide 31: Replacing coal with MSW in the clinker production process
Replacing coal with MSW in the clinker production process * For more details: Link https://drive.google.com/file/d/1h3yYa8c2eoeSM7U2NZ-Ut_qmICfdJyU-/view?usp=share_link * Other local cement producers use IW – industrial wastes 22 March 2024 Digital Roadshow 31
Slide 32: CDE for Limestone Scrap – reduce mineral waste
CDE for Limestone Scrap – reduce mineral waste For more details: https://www.cdegroup.com/about/case-studies/tpi-thailand 22 March 2024 Digital Roadshow 32
Slide 33: EV Dump Trucks for Quarrying
EV Dump Trucks for Quarrying 2022 - 2023 On April 7, 2023 Yutong officially shipped 10 YTK90E battery electric mining trucks, which will be delivered to TPI Polene Public Company Limited (TPIPL), the second largest cement producer in Thailand, for transporting stone between mines. For more details h
Slide 34: Litigation Case – Pending At The Supreme Court
Litigation Case – Pending At The Supreme Court The Court ordered the Company by Case Charge/ Environmental Acts B.E. 2535 to either Case Plaintiff status Date Offense Refill Rocks Pay (Mil. Tons) OR (Mil. Baht) Sor Vor 4/2559 8/7/2015 Department of 31.52 4,047 Pending the Supreme Court Consideration
Slide 35: Validation of Our ESG and BCG Efforts
Validation of Our ESG and BCG Efforts TPIPL: Best Sustainable Development 2023 3G Excellence Awards - CSR Activities 2023 Best Corporate Governance Company in Thailand 2023 Brands & Business Magazine International Business Magazine Global Business Review Magazine 3G - Global Good Governance TPIPP 3G
Slide 36: End of Presentation Q&A Thank You
End of Presentation Q&A Thank You
TPI Polene Public Company — Non-Deal Roadshow (March 2024) on 6ix