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1
POLYPLEX (THAILAND) PUBLIC COMPANY LIMITED
Friday, 4 June 2010
Presentation at the SET Opportunity Day
Website : www.polyplexthailand.com
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
2
About Polyplex group
PET film Industry
Performance Overview
Utilization of capacities
Financials
Table of contents
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Financials
Industry Comparison
Status of Projects under implementation
Business Outlook / Conclusion
3
About Polyplex Group – Global Presence
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Manufacturing Locations – India (PCL), Thailand (PTL) & Turkey (PE)
Distribution Companies – USA (PA) & China (PTSL).
Warehouses – 12 in USA, 3 in Mexico, 1 in Poland & 1 in Guangzhou, China
Factories
Warehouses
4
• We’re a fully integrated, global manufacturer of plastic films
• Our vision is to continuously grow, create value and establish global leadership in the plastic film
business
About Polyplex Group
TurkeyTurkeyIndiaIndiaThailandThailand
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
business
• We’re moving towards establishing ourselves as a preferred packaging substrate provider as against
a PET film supplier
• We’re expanding to meet demand in new geographies and for new applications like Extrusion
lamination, Silicone Coated release films etc
• Judicious mix of On-shore, Off-shore and Near-shore strategy
• Our operational model of distributed manufacturing enables us to meet customer needs efficiently and
in a cost competitive manner
• We currently have three manufacturing locations - India, Thailand and Turkey and have distribution
set up in USA and in China
5
16.5% 53.5%
100%
30%
9.88%Polyplex (Thailand) Plc.
(PTL)General Public
Polyplex (Asia) Pte. Ltd.(PAPL)
Polyplex Corporation Ltd.(PCL)
About Polyplex Group - Structure
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
100%
100%
80.24%
9.88%
Polyplex (Americas) Inc. (PA)
Foreign Share holderPolyplex Europa Polyester Film Sanayi Ve Ticaret Anonim Sirketi
(PE)
Polyplex (Singapore) Pte. Ltd.(PSPL)
Polyplex (Trading) Shenzhen Co. Ltd. (PTSL)
100%
6
About Polyplex (Thailand) – Region wise sales break up
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Note: Above region wise break up is based on Sales Value at Polyplex (Thailand) Consolidated level
• Total sales value in 2009-10 has increased by 4% to THB 7,125 million over 2008-09.
• Share of North American market has decreased to 22% in 2009-10 as compared to 26% in the
previous year, even though the sale volume has increased by 5%, mainly on account of lower
selling price this financial year.
• Share of European markets have gone up from 34% to 38% mainly because of increased
volumes by Polyplex Europa, in the European markets.
7
About Polyplex Group –Global ranking in PET thin film
Polyplex group is the 3rd largest
producer of Thin PET films in the
world.
About 8% capacity share in PET
thin films
Significant presence & operations
in all large markets - Manufacturing
228200
151138
0
50
100
150
200
250
'000 M
T
Thin PET Films Capacity Ranking
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Polyplex Group FY Polyplex Group FY 20102010--11 11 end Capacity (PET) (MT end Capacity (PET) (MT p.ap.a))
in all large markets - Manufacturing
setup in India, Thailand & Turkey
and Marketing setup in USA and
China.
Investing in new PET line in
Thailand. The new line is expected
to commence commercial
production in FY 2012-13
Source: PCI Films ,Company Information
Location PET Film Captive PET resin Metallized PET film
India 51,000 77,600 11,800
Thailand 42,000 57,000 11,000
Turkey 58,000 57,600 11,000
POLYPLEX GROUP 151,000 192,200 33,800
� Due to attainment of high utilization levels (>100%), all attainable capacities within the group have been restated from FY 2009-10 onwards
� BOI approved capacities in Thailand remain unchanged.
Note:
8
About Polyplex – Group capacities FY 2010-11
Location PET FilmMT pa
PET resin MT pa
BOPP FilmMT pa
CPP FilmMT pa
MetallizerMT pa
Off-line Coater # Million Sq.mtspa**
India 51,000 77,600 35,000 - 11,800 160
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
# Off- line coater represents Silicone Coating line in India and Extrusion Coating line in Thailand
** Does not include the new Silicone Coating line (under implementation) in Thailand – Expected to commence operation in FY 2011-12
*** Also the new PET line project (with a capacity of about 31,000 MTPA, has not been included in the above table
Thailand 42,000 57,000 - 10,000 15,200 150
Turkey 58,000 57,600 - - 11,000 -
Group capacity 151,000 192,200 35,000 10,000 38,000 310
9
PET Film Industry– Global capacity utilization
82%
90% 87%91%
88%82%
75% 73%77%
74% 76%
40%
50%
60%
70%
80%
90%
100%
400,000
800,000
1,200,000
1,600,000
2,000,000
CA
PA
CIT
Y U
TIL
ISA
TIO
N
MT
THIN PET FILM (incl. M. MEDIA)
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
● The capacity utilization rates for Thin film in the last 3 years have remained stable at about 75%
● Demand growth for 2010 is expected to be about 8%.
Source: Company / Industry estimates (Figures of 2009 based on provisional data)
30%
40%
-
400,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CA
PA
CIT
Y U
TIL
ISA
TIO
N
MERCHANT MARKET SIZE MERCHANT CAPACITY CAPACITY UTILISATION
10
• Packaging, Industrial and Electrical (PIE) segments – fastest growing segments with an average
growth of about 6% p.a. in the past few years. Growth in demand for 2010 is expected to be at about
8%.
• Mix of fiscal stimulus, exports, market growth and inventory adjustments are driving a recovery in the
flexible packaging segment from the lows of 2009.
• Leading film producers in developed economies like Japan, Korea etc are moving towards higher
PET Film Industry – Global trends and outlook
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
• Leading film producers in developed economies like Japan, Korea etc are moving towards higher
value added products, thereby creating a supply gap for near future in PET base film in packaging
segment.
• Addition to global capacity during the next 1-2 years is expected to be about 4%-5% per annum.
• Raw material prices are expected to remain unstable due to volatility in global crude oil prices and
fluctuations in demand
• Free Trade Agreements between various countries have thrown up opportunities as well as
challenges.
11
Performance Overview - Completion of Projects
Thailand*
Apr/ Nov
2003
Sep 2004
Feb 2005
July 2005
April 2008
PET Film – Line 1 & 2
Chip Plant –Batch /Continuous
Metallizer-1
Extrusion Coated Film Turkey*
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
May 2008 Metallizer -2
PET Film – Line 1
Metallizer - 1
Metallizer -2
Chip Plant
PET Film - Line 2
December
2005
March
2006
December
2006
May 2008
May 2008
March 2010 Cast Polypropylene Film
* Commencement of commercial production
Expected H1
FY 2011-12Silicone Coating line
12
Performance Overview -Capacity Utilization -Thailand
2006-07 2007-08 2008-09 2009-10
88%95%
90%97%
71%91%
67%74%
0%
25%
50%
75%
100%
125%%
Capacity Utilization rate- Thailand
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
●Due to attainment of higher productivity levels ( > 100% in the past), the attainable capacity of plain PET had
been restated to 42,000 MT pa for 2 lines from FY 2009-10 onwards. Comparatives utilization rates of earlier
years, reworked based on restated capacity
●BOI approved capacity remains unchanged at 48,000 MT for 2 lines of plain film
2006-07 2007-08 2008-09 2009-10
Plain Film 88% 95% 90% 97%
Metallized Film 71% 91% 67% 74%
Financial Year
Plain Film Metallized Film
13
Performance Overview -Capacity Utilization – Turkey
2006-07 2007-08 2008-09 2009-10
Plain Film 81% 92% 74% 89%
81%
92%
74%
89%
50%
83%
57%
72%
0%
25%
50%
75%
100%%
Capacity Utilization rate- Turkey
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Plain Film 81% 92% 74% 89%
Metallized Film 50% 83% 57% 72%
Financial Year
Plain Film Metallized Film
●Due to attainment of higher productivity levels ( > 100% in the past), the attainable capacity had been restated
to 58,000 MT pa for 2 lines from FY 2009-10 onwards. Comparatives utilization rates of earlier years, reworked
based on restated capacity
●In FY 2009-10, Turkey has been able to ramp up utilization levels of the 2nd film line which started commercial
production in May 2008
14
20%
40%
60%
80%
100% Started operation in Thailand
with manufacture of only
commodity films
Within 2 years, set up a
capacity for manufacturing
value added metallized film
Share of value added
products will increase along
Performance Overview –Shift in sales mix
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
0%
Plain Film Value added film*
Plain Film 81% 75% 71% 63% 62%
Value added film* 19% 25% 29% 37% 38%
2005-06 2006-07 2007-08 2008-09 2009-10
products will increase along
with increase in utilization
rates of second Metallized
film line and Extrusion coated
film line
Helps business to de-risk
from cyclical industry
movements* Value added films include Chemically Coated films, Metallized Film and Thermal
Laminated film which have higher value addition as compared with normal plain film.
Note: Above data is for PTL (standalone) based on Sales quantity
15
Performance Overview –PTL PET film VA trends
0.83
1.05
1.18
1.63 1.65 1.70
1.53
1.23 1.24
1.39 1.36
0.85
1.10
1.35
1.60
$/K
g
VA trends -Plain & Met. Film
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
VA levels in 2009-10 have returned to normal levels, from the abnormal levels seen in Q2 & Q3
of 2008-09
Q1 2008-09 Q2 2008-09 Q3 2008-09 Q4 2008-09 Q1 2009-10 Q2 2009-10 Q3 2009-10 Q4 2009-10
Plain Film $ /Kg 0.83 1.05 1.18 0.79 0.65 0.67 0.78 0.74
Met.Film $ /Kg 1.63 1.65 1.70 1.53 1.23 1.24 1.39 1.36
0.83 0.79
0.65 0.67
0.78 0.74
0.60
0.85
16
Performance Overview -Financial Highlights
17.00%
7.24%
12.71%
15.19% 14.59%
4%
6%
8%
10%
12%
14%
16%
18%
1,500
2,250
3,000
3,750
4,500
5,250
6,000
6,750
7,500
Net
Pro
fit
as a
% o
f S
ale
s
Millio
n B
ah
t
Historic Sales revenue & Net profits (Consolidated)
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
2005-06 2006-07 2007-08 2008-09 2009-10
Sales Revenue 3,300 4,719 6,399 6,860 7,125
Net Profits 561 342 814 1,042 1,039
NP margin 17.00% 7.24% 12.71% 15.19% 14.59%
0%
2%
4%
-
750
1,500
Financial Year
Sales Revenue Net Profits NP margin
17
• Increase in consolidated sales revenue in 2009-10 by about 3.86%, mainly due to
additional volumes coming from better capacity utilizations in Turkey as well as
in Thailand.
• Revenue growth would have been higher, but for the lower selling prices in 2009-
10 over 2008-09, especially in the first half of 2009-10
• Consolidated Net profits for 2009-10 have marginally decreased by 0.25% over
Performance Overview - Profitability (Consolidated)
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
• Consolidated Net profits for 2009-10 have marginally decreased by 0.25% over
previous year.
• Exchange gain of Bt 63 million as against an exchange gain of Bt 128 million last
year (lower by Bt 65 million) has also contributed in lower Net profits on a
consolidated basis
• Cost of sales 2009-10 as compared with 2008-09 has increased to 75.7% from
73.75%, mainly due to decrease in selling prices in 2009-10 as compared to 2008-
09.
18
Performance-Overview -Financial Highlights
5,000
6,000
7,000
8,000
9,000
5,899
5,599 5,618 24 162
24
80 61
Asset base - Consolidated (In million baht)
8,881
8,299
5,3835,602
8,840
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
-
1,000
2,000
3,000
4,000
2005-06 2006-07 2007-08 2008-09 2009-10
1,813 1,680 2,377
3,202 3,161
3,765 3,997
Financial Year
Current Assets Net Fixed assets Non-current assets
19
Performance Overview – Stock price performance
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
● Current Share price of PTL (as on 3.06.2010) of Baht 7.60 per share is 5..8 times earnings per share ( P/E) (based on 2009-10 EPS) and 1.2
times book value (P/BV).
● Dividend payout is Bt 0.52/share for the FY 2009-10, out of which Bt 0.345/share has been paid as interim dividend in Feb 2010 and
Bt 0.175/share has been recommended by the Board as the final dividend payout, subject to Shareholder approval
•Share price on the last trading day of each quarter
•Share price and Book Value is THB / Share
•P/E Ratio is based on trailing FOUR Quarters Earnings Per Share (excluding current quarter)
Performance
13.43% 6.29% -(3.88)%
7.42% 5.95% -(3.29)%
11.29% 19.15% -(10.74)%
18.29% 14.49% 5.44%
Net Profit Margin
ROA
ROE
EBITDA Margin
PTL*(FY 2009-10)
AJ*(FY 2009)**
TFI*(FY 2009)
Industry Comparison –Financial highlights
22
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Financial Position
1.45 0.55 0.45
0.52 2.32 2.05
12.46 4.11 0.02
2.64 1.17 0.97
Current Ratio
Debt to Equity
Interest Coverage Ratio
DSCR
Note : Interest Coverage Ratio = EBIT / InterestDSCR = EBITDA / (Interest + Current Portion of Long Term Loan)
*From SET filings (unconsolidated)**Includes income from scrap sale – 53.8 Million baht
21
Projects under Implementation Projects under Implementation –– Silicone Coating lineSilicone Coating line
• New investment approved by the board on May 26th 2009
• Investment size – USD 22 million, including working capital.
• Location –Thailand
• Target markets – Europe, US and Asia
• Applications – Used as a release liner for Label liners, graphic arts, medicalliners and Shingle Tapes
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
liners and Shingle Tapes
• Capacity – Dependant on the product mix being run on the line and can varysignificantly across different product types – 200 million sq.mts to 600 millionsq.mts
• Financial closure achieved.
• Ordering of main equipments completed
• Tender for civil work being floated.
• Expected to be operational in H1 of 2011-12.
22
Business Outlook / Conclusion
• Current global supply and demand situation, is likely to be in favor of PET filmsuppliers.
• The demand in flexible packaging segment in South-East Asia region isexpected to grow at10%-12% p.a.
• New PET line investment of Polyplex, which was earlier kept on hold, hasbeen revived, to capture the growth potential of the region as well as cater to thein-house requirement.
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
in-house requirement.
• Raw material and Currency fluctuation will impact the profitability of thecompany.
• Concentric diversification into CPP and other value added products like Thermallamination and Silicone coated films will help to de-risk the business from cyclicalnature of PET film industry.
23
Polyplex Polyplex (Thailand) Plc.(Thailand) Plc.
Polyplex Polyplex (Thailand) Plc.(Thailand) Plc.
Questions & Answers
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Questions & Answers
24
Polyplex Polyplex (Thailand) Plc.(Thailand) Plc.
Polyplex Polyplex (Thailand) Plc.(Thailand) Plc.
The views expressed here contain information derived from publicly available sources that have notbeen independently verified. No representation or warranty is made as to the accuracy,completeness or reliability of the information. Any forward looking information in this presentationhas been prepared on the basis of a number of assumptions which may prove to be incorrect. Thispresentation should not be relied upon as a recommendation or forecast by Polyplex (Thailand)Public Co., Ltd. Nothing in this release should be construed as either an offer to sell or a solicitation
© 2010 Polyplex (Thailand) Public Company Limited
Confidential Information intended for the immediate recipient only
Saraopp Saracpp Saralam Saracote Sarafil
Disclaimer
Public Co., Ltd. Nothing in this release should be construed as either an offer to sell or a solicitationto buy or sell shares in any jurisdiction.