db tisco thailand commodity corporate day - padaeng · db tisco thailand commodity corporate day...
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db TISCO Thailand Commodity Corporate
DAY
March 17th , 2017
@TISCO Tower, Bangkok, Thailand
Executive Summary
NAME Padaeng Industry Public Company Limited (“PDI”)
BUSINESS TYPE Energy, Materials and Eco
INDUSTRY GROUP Resources
REGISTERED CAPITAL 2,260,000,000 THB
LISTED DATE 21st July 1987
AUDITOR Price Waterhouse and Coopers (“PwC”)
SHARE PRICE (1yr) Low: 11.30 THB High: 24.7 THB
NUMBER OF SHARES 226,000,000
MARKET CAPITALIZATION 4.5 Billion THB (@20.10THB/ share)
2
Mr. Suphachai Veerabornpong:
2.1 %
DBS Bank Ltd:
2.7 %
Mr. Kiat Srichomkhan:
1.2 %
Country Group Holding:
25.0 %
Ministry of Finance:
13.8 %
Bangkok Bank:
3.2 %
Mrs. Nunta Rungnoppakunsri:
0.9 %
Mr. Nattapong Panjaworayan:
0.9 %
Thai NVDR:
5.7%
Shareholding Structure As of March 14th, 2017
Others: 43.5%
3
Mr. Nurak Mahatana -arnont:
0.9 %
Company History
1981 • Establish PDI • Produce and market special high-grade zinc ingots and alloys
2014 • Reorganize into 3 sustainable
growth businesses; • PDI Energy • PDI Materials • PDI Eco
1987 • Listed on SET • Registered capital of Baht 2,260
million
2016 • Close Mae Sod Mine due to
depletion and start to cease conventional zinc business by
the end of 2017
• 4 sites: Mae Sod Mine and Refinery in Tak, Roaster in Rayong and Head Office in Bangkok
• Transform into sustainable green business and realize the first investment in solar energy
4
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.
To be a leader in developing, driving and growing sustainable businesses in Energy, Materials and Eco in Southeast Asia
Vision
5
New Corporate Structure
6
Energy Materials Eco Provide energy from renewable sources
Provide added value materials from recycled
metals
Provide waste management solutions for complex industrial
waste
• As of March 15th, 2017 ; • Cash settlement zinc price = 2,752 USD/Ton • Zinc stocks in LME warehouse = 379,275 Tons
Zinc Facts
Ending stocks
Avg. cash settlement
7
-
500
1,000
1,500
2,000
2,500
3,000
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Jan-1
0
Feb-1
0
Mar-
10
Apr-
10
May-1
0
Jun-1
0
Jul-10
Aug-1
0
Sep-1
0
Oct
-10
Nov-1
0
Dec-
10
Jan-1
1
Feb-1
1
Mar-
11
Apr-
11
May-1
1
Jun-1
1
Jul-11
Aug-1
1
Sep-1
1
Oct
-11
Nov-1
1
Dec-
11
Jan-1
2
Feb-1
2
Mar-
12
Apr-
12
May-1
2
Jun-1
2
Jul-12
Aug-1
2
Sep-1
2
Oct
-12
Nov-1
2
Dec-
12
Jan-1
3
Feb-1
3
Mar-
13
Apr-
13
May-1
3
Jun-1
3
Jul-13
Aug-1
3
Sep-1
3
Oct
-13
Nov-1
3
Dec-
13
Jan-1
4
Feb-1
4
Mar-
14
Apr-
14
May-1
4
Jun-1
4
Jul-14
Aug-1
4
Sep-1
4
Oct
-14
Nov-1
4
Dec-
14
Jan-1
5
Feb-1
5
Mar-
15
Apr-
15
May-1
5
Jun-1
5
Jul-15
Aug-1
5
Sep-1
5
Oct
-15
Nov-1
5
Dec-
15
Jan-1
6
Feb-1
6
Mar-
16
Apr-
16
May-1
6
Jun-1
6
Jul-16
Aug-1
6
Sep-1
6
Oct
-16
Nov-1
6
Dec-
16
Jan-1
7
Feb-1
7
Mar-
17
USD
/TH
B
LME
Sto
cks
(T)
Highlights 2016
• Posted a consolidated 478 MB net profit, +216% compared to 151 MB in 2015
• Main favorable contributions from:
o Improved sales revenue +6% mainly from increased LME price and local sales premium
o THB depreciation against USD
o Improved operational efficiency and reduced OPEX by 11%
• Marked substantial success with the investment in the first Solar farm in Japan and the
acquisition of Mae Ramat Solar Farm in Tak, Thailand
• Decided to leave Mae Sod Clean Energy, not profitable business
• Proposed gross annual dividend of 1.00THB/per Share
8
2016 has been a very successful year, operational results exceeded 2015 :
7,602
5,466 5,593
4,868 5,149
-276 -307
836 816
1,198
-569 -522
461
151
478
-800
-600
-400
-200
0
200
400
600
800
1000
1200
1400
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Million THB EBITDA
Net Profit
Million THB Revenue
2012 2013 2014 2015 2016
Revenue, EBITDA, Net Profit
Financial Highlights
9
OPEX
10
• 2016 OPEX is 11% lower than previous year mainly from reduced energy costs and savings of operating expenses.
3,962
3,118 3,129
3,447
3,066
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
2012 2013 2014 2015 2016
MB
Financial Position
Assets (MB) Liabilities (MB)
Current Assets 2016 % 2015 % Current Liabilities 2016 % 2015 %
Cash & Short term Deposits
1,412 25 1,201 23 Financial short term debt 205 4 233 5
AR 315 6 284 6 AP 242 4 95 2
Inventory 1,854 33 2,430 47 Other 823 15 323 6
Other 469 8 50 1
TOTAL 4,050 72 3,935 77 TOTAL 1,270 23 651 13
Non Current Assets 2016 % 2015 % Non Current Liabilities 2016 % 2015 %
Long term investment 555 10 67 1 Provisions 306 5 675 13
Loan MCE 53 1 105 2 Other 0 0 198 4
PPE 645 12 952 19 TOTAL 306 5 873 17
Other 290 5 46 1 Equity 2016 % 2015 %
TOTAL 1,543 28 1,170 23 Shareholder equity 4,017 72 3,581 70
TOTAL 5,593 100 5,105 100 TOTAL 5,593 100 5,105 100
11
Current Ratio & Debt to Equity
12
Debt to Equity Current Ratio
2.42 2.39
3.45
6.04
3.19
0.58
0.78
0.67
0.43 0.39
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2012 2013 2014 2015 2016
• Current Ratio in 2016 decreased according to payment schedule of closure cost • 2016 D/E ratio reached its lowest level in 5 years
Dividend to shareholders • For 2016, PDI’s Board of Directors proposes a dividend of 1.00 THB/share
13
0.00
0.30
0.40
0.20
1.00
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2012 2013 2014 2015 2016
THB
Share Price • At the closing of 2016, share price reached 20.10 THB. • Actual share price reaches 18.80 THB ( As of March 15th ,2017), against a book value of 17.77
THB at 2016 closing.
14
12.80
9.35
16.20
12.40
20.10
0.00
5.00
10.00
15.00
20.00
25.00
2012 2013 2014 2015 2016
THB
2017 Results are likely to exceed 2016:
2017 Outlook
• Production & sales from inventory (approx. 30,000 Tons)
• Trading of metals (approx. 30,000 Tons)
• Transfer of assets to PDI-CRT
• Income from new business mainly solar
15
• Projects in Japan 35 MW
• Acquisition of a 6 MW solar farm in Mae Ramat is finalized
• Strategic partnering for government supported co-operative projects up to 20 MW
• Investment in solar farm on PDI residue ponds up to 80 MW
• Total investment so far 2,300 MB (600 MB equity)
2017 PDI’s energy projects will mainly focus on solar:
Energy
16
150 MW Solar
Japan Solar
Nogata
Kazano
Ryohashiya
Nogata
Nanao
Kazano
Nanao Ryohashiya
Capacity (MW) Installed
2.27
PPA FIT scheme at
32JPY/kWh , 20 years
COD Operational
10% above target
Capacity (MW) Installed 10.73
PPA FIT scheme at
36JPY/kWh , 20 years
COD Q2 2017
Capacity (MW) Installed 2.20
PPA FIT scheme at
32JPY/kWh , 20 years
COD Q3 2017
Capacity (MW) Installed 19.50
PPA FIT scheme at
36JPY/kWh , 20 years
COD Q4 2018
17
• Acquired Mae Ramat Solar Farm since December 26th, 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 26th , 2013 @ 6.5 Baht adder
• Additional plant improvement ongoing to increase production and sales
Tak Solar
18
Mae Ramat Solar Farm
• 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 ongoing with the final report expected in May, 2017
• Expected investment 1,600 MB (600 MB equity)
PDI holds a Joint Venture PDI-CRT (60/40) with Carbon Reduction Technology AS (“CRT”) to recycle metals containing complex industrial waste:
Materials
19
PDI - CRT
20
Submerged Plasma Technology
Recyclables
Clean Off-gas
Zinc Oxide Vitrified glass
• Sorting, landfilling and energy generation from waste collected in North and Central Thailand
• Kor 1 (Public Scoping) of EHIA process recently finished, Kor 2 (focus group) under preparation
• Strong support from Department of Industrial Works (“DIW”) through MOU
• Expected investment 600 MB (240 MB equity) to be finalized in 2019
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:
Eco
21
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.
Disclaimer
22