Sahamitr Pressure Container Plc.

Transcription

1 Sahamitr Pressure Container Plc. Opportunity Day -1H16 Presentation Presented by: Mr. Surasak Urpsirisuk Mrs. Patama Laowong 24 August

2 Sahamitr Pressure Container Plc. Opportunity Day -1H16 Presentation Presented by: Mr. Surasak Urpsirisuk Mrs. Patama Laowong 24 August

3 Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights IV. Business Expansion 2

4 Agenda I. SMPC Overview Profile Products Process II. II. Financial Industry Overview Highlight III. III. Business Financial Expansion Highlights IV. Business Expansion 3

5 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 6.2 million cylinders per year Located in Bangkok, Thailand 4

6 I. SMPC Overview : Profile Key Milestones SMPC has continuously developed its business since its establishment to be one of the worldleading manufacturers in liquefied petroleum gas (LPG) cylinder business Certified to CAC Standard (Anti-Corruption) and awarded ESG100 from Thaipat Institute Paid-Up capital increased from Baht million to Baht million due to ESOP exercise Invested in new machines and in the process of modifying existing machines, expected capacity to increase 1 million cylinders by the end of Established as a limited company with a capital of 6.4 million baht under the Ekahitanond family to manufacture LPG cylinders for both domestic and global markets with beginning capacity of approximately 60,000 cylinders per year Invested in the construction of new plant facility (factory 3) in 2012 and finished in 2013 Launched of new products; parts and components for automotive and Light-Weighted Cylinder Operation at the new factory was initiated, hence, the production capacity was increased to 2.4 million cylinders per year Raised the annual production capacity up to 5 million cylinders Being the first Thai cylinder manufacturer who accredited the ISO 9002 standard Capacity increased to 5.5 million cylinders per year and then to 6.2 million cylinders per year, respectively SET Award Best Company Performance Being the first Thai cylinder manufacturer who accredited with Thailand Industrial Standard Institution s TIS (latest revision) for automotive LPG cylinders; cylindrical types and toroidal types Officially awarded the product standard certification (TIS) for LPG cylinders Registered as a listed company in the Stock Exchange of Thailand Commenced the construction of a new production facility project at Bangkhunthien-Chaitalay Rd., to keep up with the ever increasing demands 5

7 I. SMPC Overview : Profile Certified to CAC On May 30, 2016, Mr. Surasak Urpsirisuk, Managing Director, as a company s representative, received certificate of Thailand's Private Sector Collective Action Coalition Against Corruption (CAC) from CAC Council, The Institute of Directors (IOD) 6

8 I. SMPC Overview : Profile Awarded ESG100 Company 2016 On June 29, 2016, Mr. Surasak Urpsirisuk, Managing Director, as a company s representative, received ESG100 Company 2016 from Thaipat Institute for top 100 publicly listed companies that are most outstanding in terms of Environmental, Social and Governance (ESG) performance 7

9 I. SMPC Overview : Products Wide Ranges of Product Coverage Household LPG Cylinder Automotive LPG Cylinder Cylindrical Type Toroidal Type 2-piece Cylinder Size: liters ( kg.) 3-piece Cylinder Size: liters ( kg.) Size: liters Other Cylinders Methyl Bromide Lubricant Specialty Gas Air Tank Size: liters 8

10 I. SMPC Overview : Products Our customers And Others Customers 9

11 I. SMPC Overview : Process LPG Cylinder Production Process 2-piece Body Circumferential Welding Heat Treatment Steel Coils Cutting & Forming Accessories & Parts Welding 3-piece Longitudinal Welding Hydrostatic Test & Pressure Tests Complete Cylinder Air Leak Test Valve Tightening Painting Surface Preparation 10

12 Agenda I. SMPC Overview II. Industry Overview Overview Growth Opportunities Campaign III. Financial Highlights IV. Business Expansion 11

13 II. Industry Overview About the Industry Gas which is one of petroleum products decrease in concurrent with crude oil price. As a result, more low-income consumers are able to access LPG Source: WLPGA Annual Report

14 II. Industry Overview Large Room for Household LPG Demand Growth in Selected Areas Percentage of Population Using Solid Fuels in 2013 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 has abundant opportunities to grow Source: World Health Organization (2014) 13

15 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 Trends for LPG Cooking Fuel Efficiency Major Trends for LPG Cutting woods is conventional method for cooking heat which results in deterioration of natural resource LPG is an environmental friendly energy source Compared to other solid cooking fuels widely used in developing countries, LPG provides higher heat value at the same weight with significantly less pollutions Using LPG as cooking gas becomes more popular among households in developing countries worldwide Some developing countries, such as Kenya, cuts tariff to promote citizen to use LPG as cooking gas Some governments subsidize LPG for household uses Many countries try to educate people to replace firewood with cooking gas Source: World Bank (1995), Energy Policies and Multitopic Household Surveys - World Bank (2006) 14

16 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 to indoor air pollution from cooking using solid fuels-traditional biomass or coal causes the premature deaths of an estimated 4 million people annually from lung cancer, cardiovascular disease, pneumonia and chronic obstructive pulmonary disease, as well as ill-health. To this extent, WLPGA initiated the cooking for life campaign in Existing customers of SMPC The research shown that 2.8 billion people, especially in Africa and East asia, lack access to non-solid fuel (LPG) Most of those countries are our current customers; as a result, SMPC can enjoy abundant opportunities if they shift to LPG in the future Source COOKING FOR LIFE: 15

17 Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights Utilization Rate Sales Revenue Financial Ratios IV. Business Expansion 16

18 III. Financial Highlights : Utilization Rate Operational Statistics Utilization Rate (%) 1Q15-2Q16 Capacity (million cylinder) Per Year Per Half Year Per Quarter Production volume of 2Q16 slightly dropped from 1Q16 because of fewer working days (Songran Holiday) 17

19 III. Financial Highlights : Utilization Rate Operational Statistics Utilization Rate (%) 1H15-1H16 Capacity (million cylinder) Per Year Per Half Year Per Quarter Production Volume continuously increased since EURO remained consistency at the end of 1H15 18

20 III. Financial Highlights : Sale Revenue Operational Statistics (Cont d) Sales Revenue by Product Category : 1Q15 2Q16 Sales Revenue (Million Baht) 2Q million baht 19

21 III. Financial Highlights : Sale Revenue Operational Statistics (Cont d) Sales Revenue by Product Category : 1H15-1H16 Sales Revenue (Million Baht) 1H16 1,590 1,561 1,236 1,561 million baht 20

22 III. Financial Highlights : Sale Revenue Operational Statistics (Cont d) Sales Revenue by Geography : 1Q15 2Q16 Sales Revenue (Million Baht) 2Q million baht Africa and Asia are still the key customers, occupied almost 70% of total sales 21

23 III. Financial Highlights : Sale Revenue Operational Statistics (Cont d) Sales Revenue by Geography : 1H15-1H16 Sales Revenue (Million Baht) 1H16 1,590 1,561 1,236 1,561 million baht 22

24 III. Financial Highlights: Financial Ratios Operational Statistics (Cont d) GPM, NPM and EBITDA Margin (%) Gross Profit, Net Profit and EBITDA (million baht) NPM of 2Q15 are higher than other quarters due to DTA derived from using allowance for doubtful account as deductible expenses in income tax calculation. If it is excluded DTA effect, NPM of 2Q15 will be approximately 8% GPM gradually increase due to an decrease in steel price, weaker value of Baht Currency and lower manufacturing overhead per unit resulting from an increase in production quantities 23

25 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) Times million baht Times the Company succeeded in negotiating the lower interest rate. Consequently, Financial cost is decrease and financial ratio is better than prior periods Remarks * IBD = Interest Bearing Debt 24

26 III. Financial Highlights: Financial Ratios Operational Statistics (Cont d) Fixed Asset Turnover and Total Asset Turnover (Times) ROA and ROE (%) ROE of 2Q15 is higher than prior periods due to DTA derived from using allowance for doubtful account as deductible expenses in income tax calculation. If it is excluded DTA effect, ROE of 2Q15 will be approximately 23% 25

27 III. Financial Highlights: Financial Ratios Dividend Payment History Baht per Share H16 FS publication day 12/02/ /02/ /08/2016 Price per share Dividend per share Dividend Yield per year 4.6% 4.0% 5.0% Remarks: The Company began paying Dividend since

28 Agenda I. SMPC Overview II. Industry Overview III. Financial Highlights IV. Business Expansion 27

29 IV. Business Expansion 2016 Target and Future Growth Strategy Projected Sales Volume (million cylinders) Projected Utilization (%) * SMPC expects to enjoy 15-20% growth in sales volumes in all cylinder types from the upcoming demands from both domestic and global The Company may need to make new investment during 2016 to 2017 in order to support future sales Remarks * In 2014, Full capacity is 5.5 million cylinders per year. Since 2015, full capacity is 6.2 million cylinders per year 28

30 IV. Business Expansion Business Plan 2016 (Short) 2017 (Medium - Long) Process Improvement and capacity enhancement Debottlenecking Waste Reduction Environmental Awareness ISO Feasibility Study on investing for both domestic and aboard 100% Own-factory Joint with strategic partner 29

31 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, and the information contained herein, is in preliminary form and is subject to revision by SMPC at its discretion. Although reasonable care has been taken to ensure that the information contained in this document is fair and accurate, SMPC has not independently verified such information. Accordingly, SMPC and representatives i) make no representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and ii) expressly disclaim any and all liability based, in whole or in part, on such information, errors therein or omissions therefore. Without any due diligence, all information addressed herein is based on our understanding. 30

32 THANK YOU Q&A Contacts : Tel: ir@smpcplc.com Website: Trusted Cylinder for Your Home Trusted Partner for Your Business 31