CPL GROUP PUBLIC COMPANY LIMITED Q2 & HY 18 OPPORTUNITY DAY PRESENTATION 18 SEPTEMBER 2018

Transcription

1 CPL GROUP PUBLIC COMPANY LIMITED Q2 & HY 18 OPPORTUNITY DAY PRESENTATION 18 SEPTEMBER 2018

2 AGENDA No. TOPIC BY TIME 1 INTRODUCTION TO CPL - VTR - CPL GROUP BUSINESS STRUCTURE 2 FINANCIAL HIGHLIGHTS FOR Q2 18 Khun Niteepong 11:20 11:50 3 MARKET OUTLOOK (Q4 18 TO HY 19) Khun Puvasith 11:50 12:15 4 LONG-TERM & SHORT-TERM CHALLENGES 5 Q&A 12:15 12:35

3 INTRODUCTION TO CPL LET S SEE OUR VTR.

4 CPL GROUP BUSINESS STRUCTURE FINISHED LEATHER BUSINESS TANNING BUSINESS SAFETY BUSINESS Finished leather products: Outdoor leather Athletic leather Suede Production processing: Tanning (7 days) Dyeing (7days) Finishing (7 days) Current capacity: 2.5 Million SF/Month Tanning products: Cow wetblue Pig wetblue Beam-house processing: Soaking (3 days) Liming and fleshing Tanning and others (4 days) Current capacity: Cow = 60,000 hides/month Pig = 70,000 hides/month Safety products: Safety shoes Personal Protective Equipment (PPE) Safety business processing: Safety-shoe manufacturing (20 days) - Cutting, Sewing, Lasting, Soling PPE Authorized distributor Current capacity: Safety shoes = 50,000 pairs/month Expected GP Contribution: 10-12% of its sales Expected GP Contribution: 15-20% of its sales Expected GP Contribution: 40% of its sales

5 FINANCIAL HIGHLIGHTS FOR Q2 18 KEY DRIVERS FOR Q2 18: Key Highlights: FL: For the three-month and six-month period ended 30 June 2018, both sales volume and selling price increased, so the overall revenue of this BU significantly increased by 24.36% and 8.78%, respectively. TB: For the three-month and six-month period ended 30 June 2018, due to the fact that an increase in capacity from new machineries, the volume was double in both cow tanning and pig tanning. Therefore, the overall revenue of this BU almost double. SB: For the three-month and six-month period ended 30 June 2018, the sales volume gradually increased, so the overall revenue of this BU increased by 13.38% and 12.24%, respectively.

6 FINANCIAL HIGHLIGHTS FOR Q2 18 (Cont d) Update Productivity by Main Products (Q2 18): FINISHED LEATHER BUSINESS TANNING BUSINESS SAFETY BUSINESS

7 FINANCIAL HIGHLIGHTS FOR Q2 18 (Cont d) P/L FOR Q2 18: (Unit: MB) Q2/18 Q1/18 QoQ +(-) Q2/17 YoY +(-) 6M/18 6M/17 YoY +(-) Sales Revenue ,351 1, EBITDA (12) (66) Depreciation & Amortization (15) (13) (2) (12) (3) (28) (24) (4) Financial cost (8) (7) (1) (6) (2) (14) (12) (2) Unrealized FX Gain (Loss) Tax expenses (Income) c) d) (8) 11 (19) 3 (11) 3 19 (16) (1) - (1) (12) 11 (1) (21) 20 Net profit (loss) 3 (4) 7 20 (17) (1) 67 (68) EPS (THB/Share) (0.009) (0.039) (0.002) (0.155) THB/USD - average (2.69) (3.13) f) a) b) THB/USD - ending (0.82) (0.82) e) Key Highlights: a) Significant increase in sales by 276 MB for QoQ b) Increase in depreciation by 2 MB due to the increase in new machines for QoQ c) Loss from mark-to-market of exchange rate by 8 MB for this Q. d) Turning from loss 4 MB in Q1 18 to profit 3 MB in Q2 18 e) Significant decrease in net profit due to the extraordinary item (Sold investment in China) last year. f) The exchange rate was fluctuated over the period. However, as USD appreciation, it was favorable to CPL although the overall was not as good as last year.

8 FINANCIAL HIGHLIGHTS FOR Q2 18 (Cont d) CASHFLOW FOR Q2 18: Unit: Million THB Operating Cash Flow Investments A 6M/18 6M/17 Operating Cash Flow B 6M/18 6M/17 Investments (106.67) (24.54) Net income & Non-cash adj. (32.83) CAPEX (PP&E) (110.34) (27.05) Change in working capital (97.57) Others A+B Financing 6M/18 6M/17 Free cash flow (12.76) Financing Loan proceeding 1, , Cash and Cash equivalent Beginning Changes Ending Loan repayment (1,077.05) (964.30) Interest (12.48) (9.64) Dividend (2.32) - Key Highlights: Significant improvement in operating cash flow Significant investment in new machineries Increase in financing activities due to business expansion

9 ASSETS EQUITY ASSETS EQUITY LIABILITIES LIABILITIES FINANCIAL HIGHLIGHTS FOR Q2 18 (Cont d) FINANCIAL POSITION: 30 JUN MAR DEC 17 FINANCIAL RATIOS: LIQUIDITY RATIO ASSETS 2,607 2,198 2,067 LIABILITIES 1,535 1, EQUITY 1,072 1,071 1,075 Current Ratio: Quick Ratio: Jun 18 2,607 MB 1,535 MB 31 DEC Jun Dec Jun Dec 17 2,067 MB 992 MB D/E RATIO ,072 MB 1,075 MB 30 Jun Mar Dec 17 Total assets increased from Cash on hand 130 MB, Accounts receivable 152 MB, Inventory 158 MB, and PPE 96 MB. Total liabilities increased from Short-term loan from financial institutions 118 MB, Accounts payable 384 MB, Long-term loan from financial institutions 23 MB, and Finance lease liabilities 16 MB. Average (%) per annum Cost of Debt 30 Jun Mar Dec % 3.99% 3.33%

10 MARKET OUTLOOK (Q4 18 TO HY 19) Meat Packer Slaughter House Meat Raw Hides Beam House Tanning Process Raw Hides Wet Blue Market Sentiment: Impact to CPL Group: Tannery Dyeing & Finishing Process Wet Blue Finished Leather Factory Footwear, Car Seat, Gloves, Bags, etc. Finished Leather Leather Products Positive = Neutral = Negative =

11 MARKET OUTLOOK (Q4 18 TO HY 19) (Cont d)

12 LONG-TERM & SHORT TERM CHALLENGES BUSINESS UNITS YEAR 2017-NOW TARGET HOW TO? FINISHED LEATHERS AVERAGE MSF/MONTH S-TERM MSF/MONTH L-TERM MSF/MONTH BRAND CONNECTIVITY QUALITY AND DELIVERY - CHANGE IN MACHINERIES - MANPOWER EFFICIENCY NEW INNOVATIVE PRODUCT DEVELOPMENT COW SKIN TANNING AVERAGE 60,000 HIDES/MONTH S-Term 80,000 HIDES/MONTH L-Term 120,000 HIDES/MONTH QUALITY AND DELIVERY - CHANGE IN MACHINERIES - MANPOWER EFFICIENCY SCHEDULING MANAGEMENT PIG SKIN TANNING AVERAGE 70,000 HIDES/MONTH 90,000 HIDES/MONTH SAFETY BUSINESS AVERAGE 52 MB /MONTH GROWTH RATE 5-10% YEARLY SEEKING FOR NEW MARKET OPPORTUNITIES SEEKING NEW PARTNER FOR VARIETY OF NEW PRODUCT DEVELOP OUR OWN INNOVATIVE SAFETY PRODUCT

13 CPL GROUP PUBLIC COMPANY LIMITED VISION Innovative Solutions to Your Sustainable Growth Creative Performance Lifestyles in Leather & Safety Products ตอบโจทย ด วยนว ตกรรม เต บโตร วมก นอย างย งย น

14 Q & A