Analyst Meeting H Sep 5 th, Bangkok, Thailand

Transcription

1 Analyst Meeting H Sep 5 th, Bangkok, Thailand

2 Executive Summary NAME BUSINESS TYPE INDUSTRY GROUP REGISTERED CAPITAL Padaeng Industry Public Company Limited ( PDI ) Energy, Materials and Eco Resources 2,260 Billion THB LISTED DATE July 21 st,1987 AUDITOR Deloitte Touche Tohmatsu Jaiyos Co., Ltd. SHARE PRICE (1yr) Low: 11.30THB High: 24.70THB NUMBER OF SHARES 226,000,000 MARKET CAPITALIZATION 5.0 Billion THB (@22.00THB/ share) P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 2

3 Shareholding Structure As of May 4 th, 2017 Others: 44.4% Country Group Holding: 25.0 % Thai NVDR: 5.2% Mr. Navin Chaisevinlikit: 0.7 % Ministry of Finance: 13.8 % Mrs. Nunta Rungnoppakunsri: Bangkok Bank: 0.9 % 3.2 % Mr. Nurak Mahatana - arnont: 0.9 % Mr. Kiat Srichomkhan: 1.4 % Mr. Suphachai Veerabornpong: 2.0 % DBS Bank Ltd: 1.7 % P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 3

4 Company History Establish PDI Listed on SET 1981 Produce and market special high-grade zinc ingots and 1987 Registered capital of 2,260 Million THB alloys 4 sites: Mae Sod Mine and Refinery in Tak, Roaster in Rayong and Head Office in Bangkok 2014 Reorganize into 3 sustainable growth businesses; PDI Energy PDI Materials PDI Eco 2016 Cease conventional zinc business by the end of 2017 Transform to sustainable green business Investments in solar energy in Thailand and Japan 4

5 Vision To be a leader in developing, driving and growing sustainable businesses in Energy, Materials and Eco in Southeast Asia Driven by innovation and balanced concerns, we maximize added value for our clients, with respect to our people, our ecosystems and the environment. We support the communities in which we operate and give the best possible return to our shareholders. P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 5

6 New Corporate Structure Energy Materials Eco Provide energy from renewable sources Provide added value materials from recycled metals Provide waste management solutions for complex industrial waste 6

7 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 LME Stocks (T) USD/THB Zinc Facts As of September 4, 2017; Cash settlement zinc price = 3, USD/Ton Zinc stocks in LME warehouse = 243,725 Tons 1,400,000 Ending stocks Avg. cash settlement 3,500 1,200,000 3,000 1,000,000 2, ,000 2, ,000 1, ,000 1, , P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 7

8 Highlights H1/2017 consolidated net profit increases to a historical high of 523MB, compared to 131 MB in H1/2016 Q2/2017 consolidated net profit of 211MB, significantly exceeding the Q2/2016 net profit of 101MB Main favorable contributions from : - Higher LME price and local premiums - Good performance of PDI s Solar Farms - Gain on sales of a joint venture investment in MCE of 59MB 8

9 LME LME Zinc Price H1/2017 is 50% higher than H1/2016 Average LME Price Q2/2017 is 36% higher than Q2/2016 USD 3,000 2,781 2,598 2,690 2,500 2,000 1,676 1,915 1, ,500 1, Q1/2016 Q1/2017 Q2/2016 Q2/2017 H1/2016 H1/2017 9

10 Financial Highlights MB Revenue, EBITDA, Net Profit 3,000 2,888 2,500 2,510 Revenue ,000 Revenue ,500 1,217 1,517 1,293 1,371 EBITDA Net Profit 1, Q1/2016 Q1/2017 Q2/2016 Q2/2017 H1/2016 H1/

11 OPEX H1/2017 OPEX is 48% lower than H1/2016 mainly from 100% Mae Sod feed used. MB 1,800 1,600 1,612 1,400 1,200 1, Q1/2016 Q1/2017 Q2/2016 Q2/2017 H1/2016 H1/

12 Financial Position Assets (MB) Liabilities (MB) Current Assets Dec 16 % Jun 17 % Current Liabilities Dec 16 % Jun 17 % Cash & Short Term Deposits 1, , Financial Short Term Debt Trade Receivables Account Payables Inventory 1, , Other Other TOTAL 4, , TOTAL 1, , Non Current Assets Dec 16 % Jun 17 % Non Current Liabilities Dec 16 % Jun 17 % Investment in JV Net Provisions Long Term Investment & Loan Other PPE TOTAL Other Equity Dec 16 % Jun 17 % TOTAL 1, , Shareholder Equity 4,017 4, TOTAL 5, , TOTAL 5, , P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 12

13 Asset Revaluation To reflect current value of assets, land, buildings and office condominium have been reviewed. Tak land (554 Rai) and buildings are revalued and increased by 351.3MB. Bangkok office condominium of 1,991 sq.m. are revalued and increased by 133.8MB. Net gains from revaluation after taxes, increase Shareholders equity by 388.0MB. Book Value per share increases by 2.16THB. Fair value has been assessed by an independent appraiser approved by SEC. 13

14 Current Ratio & Debt to Equity Current ratio H1/2017 increases from both increased cash and reduced liabilities after clearing off all short term loans. Debt to equity further decreased from positive results, reduced ST loan and valuation gain Q1/2016 Q1/2017 Q2/2016 Q2/2017 Y2016 H1/ Current Ratio 2016 Current Ratio 2017 Debt to Equity 14

15 Share Price & EPS Actual share price reaches THB (As of September 4, 2017) BV/share is 20.81THB Jun 2017, compare to BV/share Dec 2016 of 17.77THB. H1/2017 EPS of 2.32THB, already exceeding Y2016 EPS of 2.11THB. THB

16 2017 Outlook 2017 Results will largely exceed 2016: Production & sales from inventory (approx. 30,000 Tons) Trading of metals (approx. 30,000 Tons) Income from new business mainly solar 16

17 PDI Energy PDI Asia Solar PDI Energy 100% Renewable energy operation (Solar) PDI Mae Ramat PDI Energy 99.99% Renewable energy operation (Solar) P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 17

18 PHOTO CAPTION PDI Energy 2017 PDI s energy projects mainly focus on solar: Owns 50MW, including 38.57MW operating solar farm (2.27MW in Japan and 36.3MW in Thailand) and 10.73MW constructing solar farm in Japan. Projects in Japan 35MW Strategic partnering for government supported co-operative projects up to 20 MW Investment in solar farm on PDI residue ponds up to 80 MW Strategic partnering with Canadian Solar for 200 MW projects in Asia Pacific 18

19 Tak Solar PDI Mae Ramat Solar Farm Acquired Mae Ramat Solar Farm since December 26 th, 2016 Located at Tambol Kanaecheu, Amphur Mae Ramat, Tak province Installed capacity of 6.3 MW for a total investment value of 477 MB PPA: 25 years, selling electricity to the PEA since December 26 th, 6.5 Baht adder Finished its additional plant improvement increase production and sales 19

20 Symbior Solar 30MW Solar Farms acquisition in Thailand Successful acquisition 100% of shares in Symbior Elements Pte., Ltd. with a total value of THB1.3 billion on August 31, Operational Symbior Solar Farms in Prachinburi, Samut Sakhon and Khon Kaen. PPA: 25 years, selling electricity to the PEA since December 2013, 2015 and

21 Nanao : Ryohashiya : PDI Asia Solar Capacity (MW) Installed 2.27 Capacity (MW) Installed 2.20 PPA FIT scheme at 32JPY/kWh, 20 years PPA FIT scheme at 32JPY/kWh, 20 years COD Operational 10% above target COD Q Ryohashiya Nanao Project Value 800 M Nogata : Project Value 800 M Kazano : Nogata Capacity (MW) Installed Capacity (MW) Installed PPA FIT scheme at 36JPY/kWh, 20 years PPA FIT scheme at 32JPY/kWh, 20 years Kazano COD Q COD Q Project Value 4,500 M Project Value 7,500 M P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 21

22 PDI Materials PDI - CRT PDI Materials 60% CRT (Norway) 40% Recycle materials PDI Metals Trading business to serve domestic customers P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 22

23 PDI Materials PDI holds a Joint Venture PDI-CRT (60/40) with Carbon Reduction Technology AS ( CRT ) to recycle metals containing complex industrial waste: Exclusive rights to highly innovative ultra high temperature technology, non existing in Asia Strategic partner with ScanArc Plasma Technologies AB from Sweden. Strong support from Department of Industrial Works ( DIW ) and Industrial Estate Authority of Thailand ( IEAT ) Basic Engineering completed with promising results as for the technical feasibility Commercial operations are expected to start in 2019 Expected investment cost 2,000 MB (800 MB equity) 23

24 PDI CRT Technology and Design Submerged Plasma Technology Recovery Process for EAFD Raw Material Pretreatment Fuming Gas Cooling & Energy Recovery Zinc Oxide Recovery Gas Cleaning EAFD ArcFume Furnace Waste Heat Boiler Bag Filter Active Carbon Filter Zn ZnO Plasma Torch Plasma Torch Vitrified Slag & Alloy Sell crude, unwashed zinc oxide as end product to smelter Buyer 24

25 PDI Metals Continue supplying high quality zinc metals and extensive services Trading sales increasing to 30% of total sales in H1/2017 Target to supply more than 50,000 MT of SHG Zinc and Zinc Alloys to Thai market Continue supporting customers with extensive technical services Enhance logistic service efficiency Advanced communication using LINE, Facebook and PDI Metals / COE Websites Customer engagement activity through Customer Days Metals & Services 25

26 PDI Eco PDI Tak Eco PDI 51% DOWA (Japan) 49% Waste management operation P a d a e n g I n d u s t r y P u b l i c C o m p a n y L i m i t e d A n a l y s t M e e t i n g 26

27 PDI Eco PDI holds a Joint Venture PDI-DOWA (51/49) with DOWA Eco-System ( DOWA ) from Japan to invest in an industrial waste treatment facility in Tak, Thailand: Sorting, landfilling and energy generation from waste collected in North and Central Thailand Kor 2 (focus group) on hold till further notice Strong support from Department of Industrial Works ( DIW ) through MOU Expected investment 600 MB (240 MB equity) Increasing resistance from local community against waste management project in the region 27

28 Disclaimer This presentation may contain forward-looking information that involves risks and uncertainties, including statements about PDI s plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of PDI. Should one or more of these risks, uncertainties or contingencies materialize, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, neither PDI nor any other person assumes any responsibility for the accuracy of these forward-looking statements. 28