Sri Trang Agro-Industry Public Co. Ltd. · SET:STA
Sri Trang Agro-Industry Public — Q2 2022 Earnings Presentation
34 slides from Sri Trang Agro-Industry Public's earnings presentation, Aug 11, 2022
Slide 1: 2Q22 Presentation
2Q22 Presentation The Stock Exchange of Thailand The Stock Exchange of Thailand SET100 Index SETTHSI Index Excellent Corporate Governance Score Apprised by Thai Institute of Directors August 11, 2022
Slide 2: Agenda
01 Company Overview 02 Financial Performance Agenda 03 Natural Rubber Market Situation 04 Business Highlights 2
Slide 3: Company Overview
y Green ‘SAITRANG GROUP 01 Company
Slide 4: About STA: Established in 1987
About STA: Established in 1987 Upstream Midstream Downstream RUBBER PLANTATIONS RUBBER PROCESSING RUBBER GLOVES 45,000 rai 35 NR processing plants 4 3.1 in Thailand, Indonesia and Myanmar locations of glove factories in Thailand 49 billion pieces of gloves in production 1.3 million tons in productio
Slide 5: Upstream Operations – Rubber Plantation
Upstream Operations – Rubber Plantation Number of Rubber Trees (2022F) TappingTrees 66% 2.29 million trees Immature Trees 34% 19 Province in Thailand Estimated Mature Plantations Production, tons (LHS) Tapping, trees (RHS) 12,000 2,500,000 Lampang Phrae Sukhothai Kalasin Phichit Phayao 10,000 2,000,
Slide 6: Midstream Operations – NR Processing
Midstream Operations – NR Processing 35 NR Capacity Expansion Plan (mil. tons) A Strong Increase in Market Share Installed Capacity Optimum Capacity Rubber Production in Thailand processing facilities 4.50 4.10 4.24 4.00 3.50 3.31 2.86 2.86 2.84 2.81 Capacity*: 3.10 mil. tons/annum 3.00 2.62 STA 2.5
Slide 7: Major Customers in Midstream Business
Major Customers in Midstream Business GLOBAL BRANDS NON-CHINA CHINA 7
Slide 8: Thailand Largest and the World's Top Glove Producer Company
Thailand Largest and the World’s Top 5 Glove Producer Company About STGT: Established in 1989 Product Type Competitive Advantages 1. LATEX POWDERED: NRPD Unique Product Mix Security of Supply Low Transportation and Inventory Handling Costs 2. LATEX POWDER-FREE: NRPF No Burden on Import Tax (CESS) of
Slide 9: Sri Trang Friends
‘SRI TRANG FRIENDS The New Era of Rubber industry through Agri-Tech Ecosystem
Slide 10: Sri Trang Friends Features to create ecosystem in natural rubber industry
Sri Trang Friends Features are to create ECO-SYSTEM in the NATURAL RUBBER INDUSTRY Financial Statement Weather Forecast User Profile Contract Farming Traceability Job Matching Point Management Digital Lending Trading Feature STA Advisor E-commerce Forum/News Update Delivery 10
Slide 11: SRI TRANG is in a SPACESHIP!
SRI TRANG is in a SPACESHIP! KEEP MOVING OUT OF THE TRADITIONAL RUBBER BUSINESS Bye… Our Competitors 11
Slide 12: Awards in terms of ESG
Awards in terms of ESG The Stock Exchange of Thailand SET100 Index The Stock Exchange of Thailand SETTHSI Index Excellent Corporate Governance Score Apprised by Thai Institute of Directors 12
Slide 13: Financial Performance
02 Financial Performance 13 13
Slide 14: Rubber Price Movement
100 180 220 260 300 140 02-Jan-20 02-Feb-20 1Q20 02-Mar-20 133.5 (-2.5%) 02-Apr-20 RSS3 02-May-20 2Q20 02-Jun-20 110.8 (-17.0%) 02-Jul-20 TSR20 Quarterly Average TSR20 Prices 02-Aug-20 3Q20 02-Sep-20 128.1 (+15.6%) 02-Oct-20 02-Nov-20 Rubber Price Movement 4Q20 02-Dec-20 154.5 (+20.6%) 02-Jan-21 02-
Slide 15: Financial Highlight
Financial Highlight (Unit : THB million) 2Q22 2Q21 %YoY 1Q22 %QoQ 6M22 6M21 %YoY FY21 Revenue 27,973 29,804 -6.1% 28,000 -0.1% 55,973 61,383 -8.8% 118,275 NR Sales volume (tons) 352,951 311,657 13.2% 348,971 1.1% 701,921 637,840 10.0% 1,294,724 NR Avg. selling price (USD per ton) 1,774 1,720 3.1% 1,
Slide 16: Sales Volume
Sales Volume Natural Rubber Products (tons) Glove Products (million pieces) ▲10.0% YoY 701,921 ▲24.6% YoY 15,537 ▲13.2% YoY ▲1.1% QoQ ▲33.3% YoY 352,951 ▼3.5% QoQ 637,840 7,629 12,467 348,971 311,657 7,908 5,723 2Q21 1Q22 2Q22 6M21 6M22 2Q21 1Q22 2Q22 6M21 6M22 16
Slide 17: Sales Revenue – 77% contribution from NR business in 2Q22
Sales Revenue – 77% contribution from NR business in 2Q22 Sales Revenue by Product (THB million) Sales Breakdown by Product [2Q22] Gloves TSR RSS LTX Gloves Others 23% LTX ▼8.8% YoY 2% 27,973 Mil.Baht 61,383 RSS TSR 31 6% 69% 55,973 39 ▼6.1% YoY 13,466 28,452 ▼0.1% YoY 794 Sales Breakdown by Region
Slide 18: Gross Profit
Gross Profit NR’s Gross Profit (THB million) Glove’s Gross Profit (THB million) Blended Gross Profit (THB million) NR's GP NR's GPM Glove's GP Glove's GPM GP GPM 36.7% 39.9% 68.7% 72.6% 12.1% 12.1% 13.0% 11.7% 12.6% 16.2% 15.2% 15.7% 22.5% 25.4% 24,503 28.1% 5,339 20,658 3,842 2,798 2,541 10,951 8,9
Slide 19: SG&A, Gain on FX, and Other Gain
SG&A, Gain on FX, and Other Gain SG&A (THB million) Gain (Loss) on FX and Other Gain (Loss) (THB million) Selling Expense Admin. Expense %SG&A/Sales Gain (Loss) on FX Other Gain (Loss) 8.5% 9.3% 8.9% 5.8% 5.5% 115 274 159 503 139 4,982 110 30 51 49 86 135 (114) (1,218) 1,042 (63) 3,364 2,595 941 2,3
Slide 20: EBIT & Net Profit
EBIT & Net Profit EBIT (THB million) Net Profit (THB million) Share of profit (loss) from investment in associates and JV Operating profit (loss) Finance costs Income tax expense EBIT margin (%) EBIT Net profit (loss) Net profit margin (%) 31.3% 33.7% 16.9% 17.9% 5.4% 4.1% 4.7% 8.6% 6.9% 7.7% 20,685
Slide 21: Consistent Paying The Dividend
Consistent Paying The Dividend 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] 2022 $ Aug 10, 2022 Aug 24, 202
Slide 22: Natural Rubber Market Situation
03 Natural Rubber Market Situation 22
Slide 23: Indonesia's Rubber Prices Are Less Competitive!
Indonesia’s Rubber Prices Are Less Competitive! Price (US cent/kg.) 225 194 193 197 192 194 200 190 189 192 191 192 192 192 189 186 186 185 183 SIR 177 (FOB Price) 175 175 177 179 175 SICOM TSR 20 171 173 174 172 171 168 169 164 150 164 164 164 163 162 157 125 100 Jan-21 Feb-21 Mar-21 Apr-21 May-21
Slide 24: Indonesia Supply Output
Indonesia Supply Output 4.0 3.8 3.6 3.5 3.5 3.4 3.2 3.2 3.2 3.1 3.1 3.1 3.0 3.0 3.0 2.9 2.8 2.8 2.7 2.6* 2.6 2.4 2.2 2.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022F NR Supply (Million Tons) *Inhouse research 24
Slide 25: Global NR Seasonality: Normal Peak Season in Each Region
Global NR Seasonality: Normal Peak Season in Each Region Region Country January February March April May June July August September October November December China East Asia (Yunnan) East Asia China (Hainan) Africa Ivory Coast Africa Ghana SE Asia Vietnam South India Asia Thailand- Northeast SE Asia
Slide 26: 2022 Global NR Seasonality: Shorter Wintering Season in Thailand
2022 Global NR Seasonality: Shorter Wintering Season in Thailand & Delayed Peak Season in Indonesia Region Country January February March April May June July August September October November December China China (Yunnan): East Asia Delayed Peak Season (Yunnan) Hainan LTX output should be 5,000 – Ea
Slide 27: NR's Supply from Northeast Area Plays a Crucial Role
NR’s Supply from Northeast Area Plays a Crucial Role [Unit: Million Rai] Thailand’s Natural Rubber Supply by Region 2022F Thailand’s NR Supply South East & Other Northeast North Chiang Rai Bueng Kan Udon Thani 5.2 5.3 5% 5.0 5.1 4.9 4.9 4.9 5.0 0.3 0.3 0.2 0.3 0.3 27% 4.4 4.4 4.3 4.5 0.2 0.2 0.3 4.2
Slide 28: Global NR Situation
Global NR Situation Natural Rubber Demand & Supply (Unit : million tons) Demand (LHS) Supply RHS) Surplus/ (deficit) % STA market share (Unit : ‘000 tons) 18 840 17.5% 18.8% 800 9.7% 8.1% 10.3% 12.9% 10.0% 9.1% 17.0 15 11.8% 16.4 16.7 9.8% 9.9% 9.2% 15.5 15.8 16.1 14.8 15.1 13.8 13.9 14.3 12 13.2 13
Slide 29: NR Supply & Demand
NR Supply & Demand 2022F Major NR Producers NR Production from Top 10 Producers 2022F global production growth = +3.5% YoY 2021 2022 Others 7% +3.1% Malaysia 3% 4,948 4,801 India 5% Thailand 34% +4.6% CAMAL 6% 3,018 2,886 China 6% 14.27 +1.5% +3.5% -16.1% +5.5% +7.3% mil. tons +6.8% +6.9% +0.5% 1,27
Slide 30: Business Highlights
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Slide 31: Capacity Expansion Plan in NR Business
Capacity Expansion Plan in NR Business 2024 F 4.24 (3.27) Engineering Capacity increases +50% 4.01 2023 F million Tons/yr (3.16) million Tons/yr 3.31 2021 2024F 2022 F (2.52) million Tons/yr 2021 2.81 2.84 (1.91) 2020 (1.94) million Tons/yr million Tons/yr 2019 2.86 (1.95) 2.86 million Tons/yr (1.90
Slide 32: Aggressive Expansion in TSR Plants
Aggressive Expansion in TSR Plants Chiang Rai Add Cap: 70,080 tons/year Total Cap: 70,080 tons/year Bueng Kan Investment Budget Loei Add Cap: 87,600 tons/year Add Cap: 140,160 tons/year Total Cap: 245,280 tons/year Total Cap: 183,960 tons/year Sakon Nakorn Approx. 8,800 THB million Myanmar Add Cap:
Slide 33: Expansion of Concentrated Latex Plants
Expansion of Concentrated Latex Plants Bueng Kan Add Cap: 52,560 tons/year Total Cap: 52,560 tons/year [Commercial run in 2Q2022] Investment Budget 950 THB million Increase LTX Capacity 1H2022 +52,560 Tons/Year 183,960 Tons/Year ✓ Bueng Kan 2H2022 +131,400 Tons/Year Expansion in new plants Expansion
Slide 34: THANK YOU
THANK YOU Follow us on: Contact Investor Relations Tel: (+66)2-207-4500 Ext. 1402 and 1404 E-Mail: IR@sritranggroup.com
Sri Trang Agro-Industry Public Company — Q2 2022 Earnings Presentation on 6ix