IR PRESENTATION FS Q1 2021 - CREATING INNOVATION AND SUSTAINABILITY FROM FARM TO SHELF - SET
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IR PRESENTATION FS Q1 2021 CREATING INNOVATION AND SUSTAINABILITY FROM FARM TO SHELF
DISCLAIMERS
“ DISCLAIMERS : THIS REPORT HAS BEEN PREPARED BY THAI WAH PUBLIC COMPANY LIMITED (TWPC) PRELIMINARILY
AS A PROPOSAL FOR INFORMATION PURPOSES ONLY ”
This information is given in a summary form and does not purport to be complete. Information in this presentation, including forecast financial information, should not be
considered advice or a recommendation to investors or potential investors about holding, purchasing, or selling securities or other financial products or instruments. It does not
consider your particular investment objectives, financial situation, or needs.
Before acting on any information, you should consider the appropriateness of the information regarding these matters, any relevant offer document, and in particular, you should
seek independent financial advice. All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipated
market, financial or political developments, and, in international transactions, currency risk.
This presentation may contain forward-looking statements, including statements regarding our intent, belief, or current expectations concerning TWPC's businesses and
operations, market conditions, operation, financial condition results, capital adequacy, specific provisions, and risk management practices. Readers are cautioned not to place
undue reliance on these forward-looking statements. TWPC does not undertake any obligation to publicly release the result of any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
While due care has been used to prepare forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject
to uncertainty and contingencies outside TWPC's control. Past performance is not reliable for future performance.
This presentation is being supplied to you solely for your information and may not be reproduced, redistributed, passed on, directly or indirectly to any other person, or published,
in whole or in part, for any purpose. No part of this presentation may be reproduced or taken, or transmitted. This presentation's distribution in other jurisdictions may be
restricted by law, and persons into whose possession this presentation comes should inform themselves about and such restrictions. By accepting this presentation, you agree to
be bound by the preceding restrictions.
Private for Investor Forum
1
01 BUSINESS HIGHLIGHT
STARCH & FOOD BUSINESS
02
Agenda
03 FINANCIAL PERFORMANCE
04 GOING FORWARD & OPPORTUNITIES
05 APPENDIX
2
Business Highlight
“THAI WAH”
FIGHT FOR
COVID-19
TOGETHER
4 4
STRONG MOMENTUM IN 2021
“Strong Momentum in early 2021”
Since COVID-19 in April 2020, TWPC
share price has appreciated 90%
over the last 12 months period and one
of the best performing stocks in the
SET
In 2020 and early 2021 we continue to
drive strong sales and control admin
expenses, even as COVID-19 continues
in 2021, the Company’s cash flow and
operations remain healthy
2021 will be a strong year of profitability
and expansion, with significant growth in
China, Vietnam, Indonesia and new
Bioplastics Business in Q4
Leading all-plant-based Company
with 15 operation bases in Asia
Pacific
Source : The Company
Private for Investor Forum
5
BUSINESS HIGHLIGHTS IN 1Q21
Gross Profit Native Strong Volume Food Business Thai Wah
Margin Sale Growth growth +109% Sale Growth Vietnam
increased to +46% YoY and in China +15% YoY, Delivered Sale
23%, with HVA Sale business mainly from Growth +66%
continued cost Growth +45%, reflected Wholesale YoY, coverage
containment mainly from higher demand channel and over 5,000
measure strong demand accumulated Export Growth outlets
and ASP +5% from Q4’20 +62% YoY
Source : The Company
Private for Investor Forum
6
THAI WAH BUSINESS OVERVIEW
STARCH &
FOOD SPECIALTY
STARCH RELATED
Bio-based &
Bio-degradable
Solutions
Production Base : 6 factories in TH, 2 factories Production Base : 1 factory in TH and 1 factory
in VN and 1 factory in CBD in VN
Capacity : 510K tons, Native 60K tons MDF and Capacity : 23K tons Vermicelli and 4K tons Rice
50K tons Glucose Noodles
Customer Base* : ~81% Export and ~19% Customer Base : ~81% Domestic and ~19%
Domestic (TH only) Export
Private for Investor Forum
7
Starch Business
TO BE A REGIONAL LEADER ACROSS ASEAN AND ASIA
Average Selling Price
Our Leading Position in the Global Market USD/Ton Anticipated
price upward
473 475 473
China and Taiwan 480 trend in 2021 468468
460 463463 458
Leading Supplier of Native Tapioca Starch & Pearl
460 453453 448448
453453453453453 450
443443445
437
Vietnam 440 429 431 433
425 423
Leading Supplier of Glucose Syrup
420
Indonesia 400
Feb/19
Sep/19
Feb/20
Sep/20
Feb/21
Jul/19
Dec/19
Jul/20
Dec/20
Apr/19
Aug/19
Oct/19
Nov/19
Apr/20
Oct/20
Nov/20
Jan/19
Jun/20
Aug/20
Apr/21
Mar/19
Jun/19
May/19
Jan/20
Mar/20
May/20
Jan/21
Mar/21
Leading Supplier of Modified Starch
Current Root and Starch Market Situation
• Current root price is in range of 2.25-2.55 Baht.kg, root price trend to lower toward the end of this period in line with the lower root starch content.
• Export price is in range of 470-485 USD/ton, opportunities from higher demand from China to produce alcohol and corn starch price in China have
continued rising since last year.
• Supply of tapioca root has reduced during this period because close to low season and there is heavy rain throughout some plantation area.
• CMV situation decreased to ~200K rai
Source : MOC, TTTA, TTSA, The Company
Private for Investor Forum
9GROWTH IN EXPORT OF THAI TAPIOCA INDUSTRY
Native Starch* Modified Starch
Unit : M. Tons Unit : M. Tons
2
3.28 3.13 2
4
3.01 2.92 2.94 2.84 2.78 2
2.45
3
1
2.24 1.01 1.03 1.04 1.03
0.95 0.95
3 1
+56% 1 0.85 0.90 0.91
+25%
2
1
2
1.07
1
0.69
1
0.27 0.34
0
1 0
0
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21
*Including HS Code 11081400000 and 11062010000 (CF)
Pearl Chip
Unit : ‘000 Tons Unit : M. Tons
100 9
90 8
6.78 7.26
6.41 6.45
80 7
5.76
4.61
70
6
60
45.6 5 3.99
50
35.4 36.3 40.8 3.16 +95%
31.8 2.48
4
40
27 28.1 29.7 -8%
30
23.5 3
1.73
20 11.9 11.0
2
0.89
1
10
0
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 1Q21
1Q21
Source : Thai Tapioca Starch Association, Thai Customs
Private for Investor Forum
10TAPIOCA MARKET OUTLOOK - THAILAND
Total Native Starch Export by Country Total Native Starch Export by Country – Year Q1’21
30.23 30.02 32.36 30.56 30.94 28.32
16
26.60 27.88 35. 00
25.30
22.01 21.91
30. 00
14
12
25. 00
Philippines
8.66 8.70 8.92 8.91 8.70 9.00 , 3%
8.14
20. 00
10
7.91 8.03 Malaysia
7.30 7.10 15. 00
China,
8
10. 00
, 3% 76%
6
5.0 0 Other,
4
0.0 0 8%
2 -5.00
Taiwan, 7%
0
Japan, 2%
-10.00
USA, 1%
Plant Area (M. Rai)
Total Native Starch Export from Thailand to China Total Native Starch Export from Thailand to Taiwan
Unit : ‘000 Tons Unit : ‘000 Tons
1,759
1,611
2000
1800 1,560 1,539 1,523 600
1600
1,322 500
1400
400
270 286 308
813
1200
1000
300
252 258 232
800
600
370 200
400
60 71
100
200
0 0
2015 2016 2017 2018 2019 2020 1Q21 2015 2016 2017 2018 2019 2020 1Q21
Source : The Company, The Thai Tapioca Trade Association, and DITP
Note : Data was by Volume , HS Code of Native is 11081400000 and 11062010000 (CF)
Private for Investor Forum
11Food Business
OFFERING A BROADER RANGE OF CHOICE AND CONVENIENCE
Revenue from Sales
Non -
Unit : MB High Chemical Product &
1,453 1,565 Product Preservativ Food Safety
1,600 1,379 1,430
1,400
Quality es & Certificate
1,200 Gluten-Free
1,000
800
437
600
400
380
200
0
2017 2018 2019 2020 1Q21
Sales Breakdown by Channel – Thailand
Other
8%
Export
19%
1Q21 Wholesale
Van Sale 50%
12%
Modern Trade
12%
Source : The Company
Private for Investor Forum
13CONTINUE TO STRENGTHEN OUR NATIONAL COVERAGE
Phitsanulok
Chiang
Mai
Udon
Thani
26%
Roi Et
growth YoY
for 1Q21
Korat
✓ 12% Contribution
Bangla
n ✓ Nationwide Distribution
Chonb
uri
covering 74 provinces, over
Bangk
ok 4,000 outlets
✓ Strong growth in main cities.
Surat
Thani ✓ Key channel to distribute a
full range of products,
including new products
Source : The Company
Private for Investor Forum launched to the market. 14WE HAVE SHIFTED OUR STRATEGIES TO BE MORE DIRECT - TO CONSUMER
Modern Trade and Online Channels Find us at leading stores
▪ Gain more share of shelf and increase number of outlets
▪ Cover products range from mass to premium tiers
▪ Coverage ~18,000 MT outlets nationwide
Source : The Company
Private for Investor Forum
15EW
✓ Consumers are turning to take care of the
issue of health more.
✓ Choose ingredients that are beneficial for
Healthy rather than just looking at the price
ORMAL
✓ Purchase of ingredients to cook for yourself
Instead of eating outSIGNIFICANT GROWTH AND GLOBAL MOMENTUM
TWPC has expanded its businesses beyond
Thailand and now our products are available
over 30 countries around the world.
62%
growth in
1Q21
Targeting double-digit growth, with contributions > 20%
Expand more “Volume” especially in EU, and North Asia / Grow Brand penetration in CLMV
Private for Investor Forum
17DEVELOPING STRONG MARKET LEADERSHIP IN VIETNAM
Son La 66%
growth YoY
Nghe An
for 1Q21
Ha Tinh
Hue
Quang
Nam
Gia Lai
Phu Yen
Khanh
Binh
Lam Hoa
Phuoc
Binh Dong
Dong Duong
Long An
Thap Dong Nai Binh Thuan
An Giang Tien Giang
Can Tho Ba Ria –
Ben Vung Tau
Kien Tre
Giang
Source : The Company
Private for Investor Forum
18Financial Performance
PERFORMANCE IN Q1’21 VS Q1’20
Consolidated Sales
• Native Sales increased 46% YoY mainly from strong demand from
Unit : MB
a shortage which is main market, aligned with the industry, while
2,200 57 2,138
2,100
227 ASP increased 5% YoY.
2,000
1,900 304 • HVA Sales increased 45% from a recovery sign in key countries.
1,800
1,700 • Food delivered 15% growth mainly from strong momentum of
1,600 1,550
1,500 export and wholesale channel, driven from the government’s
1,400
1,300 financial support scheme of “Kon-la-Krung”, “Thai-chana”, and
1,200
Sale Q1'20 Native HVA Food Sale Q1'21 “Rao-Rak-Kan” .
Sales Breakdown Q1’20 Q1’21 Change
by Business MB % MB % MB %
Native 665 43% 969 45% 304 46%
HVA 505 33% 732 34% 227 45%
Food 380 24% 437 21% 57 15%
Total Sales 1,550 100% 2,138 100% 588 38%
Source : The Company
Private for Investor Forum
20EBITDA FOR Q1’21 HAS GROWN 35%
Revenue from Sales EBITDA
7,248 7,323 7,090 557 571
8,000 600
526
500
6,000 400
317
4,000 300 234
2,138
1,550 200
2,000 100
0 0
2018 2019 2020 1Q20 1Q21 2018 2019 2020 1Q20 1Q21
Gross Profit Net Profit (After MI)
18.9% 21.6% 22.7% 5.3% 6.0%
16.4% 15.7% 30. 0%
800
3.1% 0.9% 0.5% 10.0%
2,0 00 20. 0%
700
10. 0%
0.0%
600
1,5 00
1,185 1,190 1,114 0.0 %
500 One-time -10.0%
1,0 00
-10.0%
400 profit 43 MB -20.0%
484 -20.0%
300
197
335 82 128 -30.0%
68
-30.0%
200
500
-40.0%
100
38 -40.0%
0 -50.0%
0
-50.0%
2018 2019 2020 1Q20 1Q21 2018 2019 2020 1Q20 1Q21
GP Margin NP Margin
Source : The Company
Private for Investor Forum
21SALES BREAKDOWN 1Q21
Sales Breakdown by Business
Food, • Native sale volume increased 41% YoY, mainly from China
21%
market, while ASP increase 5%.
Native,
2,138 MB • HVA sale volume increased 32% majorly from CF, MS and
45%
Glucose, while ASP increase 7%.
HVA*, • Convert to sell more in CNY currency (21% in Q4’20 to 23% in
34%
Q1’21) to mitigate USD Foreign exchange rate fluctuation.
*HVA products – Glucose, Coarse flour, Pearl, Alpha starch and NPD products
Sales Breakdown by Country (Operation base) Sales Breakdown by Currency
China
CNY
23%
23%
THB
31%
2,138 MB
Vietnam Thailand 2,138 MB
17% 60% VND
17%
USD
Note Trading office in China started operation in Q3’16 & Indo started operation in Q1’20
Source : The Company 29%
Private for Investor Forum
22STRONG FINANCIAL AND WORKING CAPITAL 1Q21
Strong Cash with Low D/E Ratio Balance Sheet Composition
Unit : MB Unit : MB
Financial
Debt, 1,816 100% CL 1,298
2,500 Cash & Financial
80% CA, Non-CL,
investment, 1,352
2,000 3,969 1,903
60%
1,500 40%
Non-CA Equity,
1,000 20% 4,626 5,394
500 0%
- - Interest bearing ) = 0.34
D/E (Debt BV = 6.13 BAHT/share
Operating Cash flow Dividend Payout
Unit : MB Unit : MB 311%
143% 174% 300%
500 57%
800 655 671 39%
571 400 100%
466 High Inventory 264 282 282
due to high 300 -100%
400 season of roots 200 118 118 -300%
100 -500%
0
1Q21 0 -700%
2017 2018 2019 2020 1Q21 2016 2017 2018 2019 2020
-400 -317 Dividend payout ratio
Source : The Company 2017 / 2018 – 0.32 BAHT/share,
Private for Investor Forum 2019 – 0.134 BAHT/share,
2020 – 0.134 BAHT/share, XD on 11 May and pay on 21 May 21 23Going
Forward ROSECOTM
SeriesCAPEX 2021E
CAPEX 2021E PIPELINE PROJECT IN 3-YEARS
▪ HVA Products (Pearl / Coarse Flour /
CAPACITY
20 % EXPANSION
High-Grade Starch)
15% ▪ Food Expansion in Thailand and Vietnam
20 % 300-350 MB
15% ▪ Thai Wah Starch in Cambodia (Phase II)
GREENFIELD
60 % ▪ Energy Saving Projects
PROJECT
▪ New Business Line - Bioplastic
▪ Starch & Starch-Related Food Products
M&A
Annual Maintainance focus on Thailand & CLMV
Efficiency Improvement /
Energy Saving Project
Capacity Expansion
Capital Expenditures are flexible to phase
and adjust as appropriated
Source : The Company
Private for Investor Forum
25Y2021 OUTLOOK
Growth Target
• Sustainable high-single-digit Growth
• Consistently improve operating margins through operational excellence and improving our portfolio
• Keep a strong Balance sheet and positive cash flow. Selectively invest in key ROI projects and M&A opportunities
Starch BU Food BU Specialties BU
• Market expansion to key countries. • Grow Export market and increase • Commence Bioplastic Line and
• HVA capacity expansion to shift coverage expansion for the domestic develop Plant-based resources.
portfolio toward premium products. market. • Reduce environmental impact along
• Delivered Operational excellence • Grow market share in Vietnam with creating value to argi-food
• Green factory through leading products across all sectors through Bioplastics solution.
key channels. • Deliver innovation towards health,
• Focus on launching new products to nutrition, and sustainability.
capture healthy & convenience trends
Key Challenges
• FX volatility
• Global economic uncertainty
• High Vessel freight and container shortage
• CMV and Drought
• Covid impact resulted in global economics recession
Private for Investor Forum
26Q&A
WE WANT TO HEAR YOUR FEEDBACK !!
Please fill this quick survey and let us
know your thoughtsAppendix
HISTORY OF THAI WAH GROUP
▪ Acquisition of assets
from Maesot Starch &
▪ Leader in Thailand in Tungsten and Tin Ore Maesot Biogas
Mining Move to Banglane ▪ 100% TDC Owned
▪ 1952, started to produce and export Expansion of starch District and create ▪ Issued 1 B Bond
tapioca starch in Chonburi Province mill business in Thailand’s single
▪ 1953, started to produce mung bean Thailand largest vermicelli
vermicelli in Bangkok factory TWS resumed Operate
trading on the SET in TWBP, TWVN
2013 and TVCBD
TWS to go under rehabilitation process
1947 1950s – 1960s 1963 1970s – 1980s 1985 1990s – 2000s 2001 – 2007 2015 – 2017 2018 2019 2020 2021
1985 1989
The founding TWS listed TWFP listed
of Thai Wah in on the SET on the SET
Rangoon “Thai Wah No.1” first tapioca ▪ Shareholders’ meeting of the two
subsequently ▪ Expansion of the starch
business company approved the business
moved to business to drive export ▪ Operate
and export out, combination between TWS and
Bangkok volume and enter into Vietnam TWIN
leader and pioneer in TWFP, by amalgamation process in
market ▪ 100%
Thailand Oct’15
▪ Market leadership of vermicelli VTC
in Double Dragon, Double Kilin ▪ Operate Thai Wah International Owned
brands Trade (Shanghai) in Q3’16
▪ Automated vermicelli ▪ Successfully increased 33.33%
production line shares of TDC in Oct 2017, currently
hold 66.67% shares
Private for Investor Forum
29ROOT PRICE AND STARCH EXPORT PRICE
The ‘Mealy bug’ disease Move in the same trend Corn starch price in China
spread out in Thailand significant increased from
& neighborhood CNY 2,500-2,700 to CNY Baht/Kg.
USD/Ton Corn starch price also 3,400-3,700 (more than
increase 50%) and shortage cassava 5.00
600 China stops subsidy Corn roots situation in Vietnam
that drags tapioca price 4.50
drop.
4.00
500
3.50
3.00
400
2.50
300 Government 2.00
intervenes root
1.50
price 2.5 Baht/Kg The ‘Srilanka Mosaic
for this crop. virus’ disease spread
200 1.00
out in VN & Cambodia
& low productivity of 0.50
cassava root.
100 0.00
Jun-10
Jun-11
Jun-12
Jun-13
Jun-14
Jun-15
Jun-16
Jun-17
Jun-18
Jun-19
Jun-20
Dec-20
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Sep-13
Sep-10
Sep-11
Sep-12
Sep-14
Sep-15
Sep-16
Sep-17
Sep-18
Sep-19
Sep-20
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Starch Export Price Root Price
Source : The Thai Tapioca Trade Association
Private for Investor Forum
30TAPIOCA PRODUCTION OUTLOOK
Raw material recovery from the bottom in 2019
More lands planting tapioca while lands infected by Cassava Mosaic Virus increase
Unit : Million Tons
Country 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21*
Thai 22.01 21.91 26.60 30.23 30.02 32.36 30.56 30.94 27.88 25.30 28.32
Vietnam 8.60 9.90 9.74 9.76 10.21 10.74 10.91 10.27 9.85 10.11 10.60
Cambodia 4.25 8.21 7.61 7.54 7.93 11.94 13.22 12.46 13.75 14.59 15.84
Laos 0.50 0.36 1.06 1.25 1.63 2.38 2.41 1.56 3.32 3.91 4.48
Total 35.36 40.38 45.01 48.78 49.79 57.42 57.10 55.23 54.80 53.91 59.24
Source : ASEAN Food Security Information System (AFSIS) / Agromonitor / https://www.gso.gov.vn / https://gda.maff.gov.kh/documentcategory/tcJh0D0H4r
Note : *forecast data from TTSA, Ministry of Agriculture and Cooperatives, The Company
Private for Investor Forum
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