sri trang gloves (thailand) public company...

Sri Trang Gloves (Thailand) Public Company Limited

Opportunity Day

Strictly Private and Confidential

16 September 2020

2

The information contained in our presentation is intended solely for your personal reference only. Please do not circulate this

material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in

reliance upon it. The information may be subject to completion or amendment through the delivery of additional

documentation. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any

security of engage in any transaction. The information contained herein has been obtained from sources that STGT

considers to be reliable; however, STGT makes no representation as to, and accepts no responsibility or liability for, the

accuracy or completeness of the information contained herein. In addition, such information contains projections and

forward-looking statements that reflect our current views with respect to future events, financial performance and result of

STGT’s activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given

that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ

materially from those projected.

The information contained in this presentation is subject to change without notice and STGT does not undertake any duty to

update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent

required by applicable laws and regulations.

Disclaimer

Section 1: Company Overview

4

STGT’s total installed capacity of 32,619 million pieces

per annum is considered world’s #3 rubber gloves

manufacturer Sri Trang

Holdings

Company

Limited (“STH”)

Dr. Viyavood

Sincharoenkul

Other Sincharoenkul

FamilyOthers

50.7% 3.7% 4.9% 5.1% 30.2%

Rubberland

Products

Company

Limited (“RBL”)

5.4%

SDME

100.0%

STU

100.0%

STA

Group Structure

17,041

million pieces

per annum

5,625

million pieces

per annum

9,953

million pieces

per annum

Latex

Powdered

Examination

Gloves

Latex

Powder –

Free

Examination

Gloves

Nitrile

Powder -

Free

Examination

Gloves

Variation of Products

STGT’s Touch of Life Product Presence: More than 140 Countries in Every Continents

since the Establishment until Present

Our Major Sales are from:

AsiaNorth America

Europe

Australia and Oceania

Middle East

South Africa

South America

as of 02/07/2020

STGT At Glance

5

Business Overview

Leading Rubber Glove Producer in the World with Total Installed Capacity of 32,619 MM Pieces per Year(1)

1 Natural Rubber Glove Business

Natural Rubber Powdered Glove (NRPD)

Natural Rubber Powder-Free Glove (NRPF)

2 Nitrile Glove Business (NBR)

STGT produces and distributes its natural rubber gloves and nitrile gloves

through (1) Original Equipment Manufacturer (“OEM”) and (2) STGT’s own

brands and its subsidiaries’ and STA Group’s brands

Revenue Structure OEM VS Own Brands

Sales Volume and Production

Hat Yai,

Songkhla

Karnchanadid,

Surat Thani

Kantang,

Trang

Installed

Capacity(1)

5,625 mm pieces

per year

Main Raw

Material

Concentrated Latex / Synthetic

Rubber Latex

Product Natural Rubber Powder-Free

Glove / Nitrile Glove

Installed

Capacity(1)

17,041 mm pieces

per year (New Hat Yai plant

has adopted an automation

technology with additional

capacity of 3,629 mm pieces

per year)

Main Raw

Material

Concentrated Latex /

Synthetic Rubber Latex

Product Natural Rubber Powdered

Glove / Natural Rubber

Powder-Free Glove /

Nitrile Glove

Hat Yai Plant

Surat Thani Plant

Trang Plant

Installed Capacity(1) 9,953 mm pieces per year

Main Raw Material Concentrated Latex

Product Natural Rubber Powdered Glove

1

2

3

3 Production FacilitiesTotal Installed Capacity of

32,619 mm pieces per year

Note: (1) Installed capacity as of 30 June 2020

NRPD37.8%

NRPF26.9%

NBR35.2%

1H/2020

THB 8,617 mn

based on technical capacity

4,529 5,045 5,513

6,517 7,293

9,134

13,810

4,553 5,003

5,457 6,278

7,381

9,431

13,659

85.2% 89.1% 87.2% 89.6% 95.2%85.5%

92.5%

-50.0%

-30.0%

-10.0%

10.0%

30.0%

50.0%

70.0%

90.0%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

Mill

ion p

ieces

Production volume Sales volume Utilization rate (%) based on technical capacity

OEM83.2%

OBM16.8%

1H/2020

THB 8,617 mn

Business Overview

6

Key Drivers in Rubber Glove Demand

Global Rubber Glove Demand

Growth in Healthcare Industry around the World1

The healthcare industry growth is mainly supported by (1) increase in aging

population (2) supportive government policies and access to medical services

(3) increase in Non-communicable Diseases and (4) spread of epidemic and/or

pandemic diseases

Increasing Usage of Hygienic Products in Developing Countries 2

150

100

10 6 4

0

20

40

60

80

100

120

140

160

United States Europe Republic of China India Africa

Source: The Economist Intelligence Unit as of September 2019

Potential growth of rubber glove demand in developing countries is supported by

accelerated economic growth in such countries, increase in awareness in the

importance of hygiene and potential current low rate of rubber glove usage per

capita in such countries

Pieces per Capita

Source: MARGMA Industry Brief 2019 on the Rubber Glove Industry

USD mm %Healthcare Spending in Each Region in 2018 and 2023 Forecasted Rubber Glove Consumption per Capita in

Developed and Developing Countries in 2019

Forecasted Global Rubber Glove Demand during 2016 - 2022

Raw Material Price

Export Concentrated Latex Price and Import Synthetic Rubber

Latex Price during 2014 – June 2020

Source: Rubber Authority of Thailand (RAOT) and Thai Customs

Note: (1) Based on 60.0% Dry Content of Concentrated Latex

(2) Based on 43.5% Dry Content of Synthetic Rubber Latex

Developed Countries

Developing Countries

140.9 372.9 1,761.7 1,874.8

3,632.1

7,981.3

201.6445.0

2,486.82,363.5

4,386.1

10,170.9

7.4

3.6

7.1

4.7 3.8 5.0

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

0

2,000

4,000

6,000

8,000

10,000

12,000

Middle Eastand Africa

LatinAmerica

Asia andAustralia

West Europe NorthAmerica

Global

2018 (LHS) 2023F (LHS) CAGR 2018 - 2023 (RHS)

20

40

60

80

100

120

Ja

n 1

4

Mar

14

May 1

4

Ju

l 1

4

Se

p 1

4

No

v 1

4

Ja

n 1

5

Mar

15

May 1

5

Ju

l 1

5

Se

p 1

5

No

v 1

5

Ja

n 1

6

Mar

16

May 1

6

Ju

l 1

6

Se

p 1

6

No

v 1

6

Ja

n 1

7

Mar

17

May 1

7

Ju

l 1

7

Se

p 1

7

No

v 1

7

Ja

n 1

8

Mar

18

May 1

8

Ju

l 1

8

Se

p 1

8

No

v 1

8

Ja

n 1

9

Mar

19

May 1

9

Ju

l 1

9

Se

p 1

9

No

v 1

9

Ja

n 2

0

Mar

20

May 2

0

TH

B/K

g

Export Concentrated Latex Price Adjusted Concentrated Latex Price

Import Synthetic Rubber Latex Price Adjusted Synthetic Rubber Latex Price (2)

(1)

212 233 268 300360

425489

10%

15%12%

20%18%

15%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1000

2016F 2017F 2018F 2019F 2020F 2021F 2022F

Bill

ion p

cs

Glove demand YoY growth

Source: MARGMA and STGT forecast

Industry Overview

7

The Major Shareholder, STA, is the Market Leader in Upstream and Midstream Rubber Business

Worldwide Distribution and Various Sales Channels

Strategic Location for Key Suppliers and Custom Privileges

World-class Rubber Glove Manufacturer with the Prominent Market Position in Natural Rubber Glove and

High Growth Company with a Plan to increase capacity by 115% from the existing capacity within 2026

State of the Art Production Facilities

Advantage from Barrier to Entry

Strong Reputation and Best-in-class Products and Services

Visionary Management with Strong Experience in Glove Industry

1

2

3

4

8

7

5

6

STGT’s Investment Highlights

8

Strategic Location for Key Suppliers and Custom Privileges

• STA Group has been a main supplier of concentrated latex and woodchip

Located in the biggest source of concentrated latex provides

STGT with competitive edge over its competitors

STGT Production Facilities

Security of supply: Access to abundance and continuous supply of concentrated

latex ,where STA Group has an engineering production capacity of concentrated

latex of approximately 46,000 tons per month or equivalent to 50.8% of Thailand's

concentrated latex supply in 2019. STGT’s usage of concentrated latex accounted

for only 20.2% of STA’s production capacity in 1Q/2020

Low transportation and inventory handling costs: STGT’s production facilities

are located next to STA Group’s concentrated latex factories and are located near

sea port

Lower fuel cost: Access to abundance of local woodchip as a main fuel source

comparing to natural gas which is typically used by major competitors in Malaysia

Advantage from lower export tariff to USA over Malaysian and Chinese

Players: Privileges from GSP (Generalized System of Preferences)

No burden on an import tax (CESS) of concentrated latex: STGT, as a

domestic manufacturer, is not subject to concentrated latex import tax

Concentrated Latex Synthetic Rubber Woodchip Chemicals

Key Raw Materials

Hat Yai,

Songkhla

Karnchanadid,

Surat Thani

Kantang,

Trang

Installed

Capacity(1)

5,625 mm pieces

per year

Main Raw

Material



Installed

Capacity(1)

17,041 mm pieces

per year

Main Raw

Material



Hat Yai Plant

Surat Thani Plant

Trang Plant

Installed

Capacity(1)


Main Raw

Material

Concentrated Latex

1

2

3




Key Investment Highlights

15 15 24 27 33 36

46 54

61 66

8 4

5 3

10

9

7 5

4

15

24 27

33 36

46

54 61

66 70

2017 2018 2019 2Q 20 2021 2022 2023 2024 2025 2026

Installed capacity per year Additional capacity

63.0%

18.0%

10.0%

3.0%6.0%

Malaysia

Thailand

China

Indonesia

Others

9

World-class Rubber Glove Manufacturer with the Prominent Market Position in Natural Rubber Glove and High Growth

Company with a Plan to increase capacity by 115% of the existing capacity within 2026

STGT capacity expansion plan in 2020 - 20261 STGT Actual Production by Product Type2

Estimated Capacity(1) of Top Manufacturers in 20203

With increasing gloves usage from growing global healthcare industry as well as stringent safety standard for maintaining workplace hygiene, rubber

glove business is considered one of the prominent industry with stable growth potential outlook to fulfill increasingly unmet demand.

Estimated Global Rubber Gloves Market Share(2)4

Note: (1) Based on latest annual or quarterly report of each company

(2) MARGMA Industry Brief 2019 on the Rubber Glove Industry

2019 estimated

global demand of

300 bn rubber

gloves p.a.

STGT is the largest

examination glove

manufacturer in Thailand

with glove sales of 19.89

billion pieces in 2019

Unit: Billion Pieces

Unit: Billion Pieces

68% 65% 65% 70% 69% 66% 69%

32% 35% 35% 30% 31% 34% 31%

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

NBR

NR

85

35 33 32 26

Top Glove Hartalega STGT Kossan Supermax

Key Investment Highlights (cont’d)

10

Best-in-Class Technology with Continuous Improvement

• Wide ranges of high-quality rubber gloves and various applications such as healthcare and medical, food

processing, food handling, electronics and aesthetic

• Capability of switching the production between Natural Rubber Powder-Free Gloves and Nitrile Gloves,

providing flexibility to meet client’s demand

• Flexibility to produce 80 types of rubber gloves with more than 11 additional product types under

development

• Comply with various worldwide standards including Medical Application Standard,

Food Processing Standard, Halal Standard and etc.

Expertise in R&D and Non-Stop Innovation

• In-house R&D professionals with extensive experience in developing innovative products

such as high quality lightweight Nitrile Gloves and Natural Rubber Gloves

• Advanced in-house R&D laboratory with lab-scale automation testing under development

Newly Adopted Automation Technology

• At new Hat Yai Factory, STGT has adopted an automation technology and an Internet of Things (IoT) which

help reduce defects and curtail production cost per unit by reducing number of labor by 30% and

increasing productivity by 13%

State of the Art Production Facilities


1,152 1,155 1,144 1,676

2,129

671 542 622

714

949

500 706 696

651

844

337 410 372

418

468

86 93 130

132

235

83 93 147

131

182

20 17 28

39

49

2,849 3,016 3,138

3,761

4,857

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

In m

illio

n T

HB

Sales revenue by region

Asia Europe North America Latin America Middle East Africa Australia,Oceania

Revenue Breakdown by Region in 1H/2020

North America

17.4%

Latin America

10.3%

Europe

Asia


44.2%

19.3%

Middle East

4.3%

Africa

3.6%

11


1.0%

AS 46.6%

AS 27.1%

EU 14.8%

EU 32.8%

US 29.6%

LA12.0%ME 78.6%AF 39.3%AU 25.9%

GrowthQoQ 29.2%


Various distribution channels to reach

all target customers

Exhibition Selling Agent

Retail Business Online

Capital-Intensive Business in Nature

• Rubber glove business requires significant upfront

investments in high technology machinery as well as well-

equipped production plant

3

12

Advantage from Barrier to Entry

3

Barrier to Entry

Licensing Requirements

• As a medical related products, prior approval from FDA or other

relevant regulatory bodies are required to export and market rubber

examination gloves into any countries

• The average time required for approval can last longer than 6 months

depending on the countries

Incumbent’s Advantages due to Learning Curve and Superior

Production Process

• Experience and expertise of long-standing and large manufacturers

enable them to have flexibility in price adjustment and ability to

encounter higher competitions from new players


Section 2: Financial Highlights

2Q 20 Financial Highlights

14

Best in Class Workforce Treatment by External Accredited Organization

Strong Balance Sheet from IPO Fund Raising & Debt Repayment

Record Breaking Profits and Profit Margins

All-Time High Sales Volume and Sales Value

Shortest Ever Cash Cycle Days

Longest Lead Time of Shipment from Very High Backlogs

Industry Remains as “Seller Market” With Continual Price Increase

Speed Up New Capacity to Capture Solid Demand Sooner than Planned

1

2

3

4

8

7

5

6

15

(In million THB)

2Q 20 1Q 20 %QoQ

2Q 19

(Restated) %YoY

Volume (in million pcs) 7,380.6 6,278.0 17.6% 4,552.7 62.1%

Sales Revenue 4,856.8 3,760.6 29.2% 2,848.7 70.5%

COGS (3,439.3) (3,053.9) 12.6% (2,456.0) 40.0%

Gross profit 1,417.5 706.6 100.6% 392.7 261.0%

Other income 28.7 18.5 55.4% 27.5 4.4%

SG&A (232.5) (211.8) 9.8% (181.2) 28.3%

Gain (loss) on exchange rate, net (76.6) 94.1 -181.4% (20.4) 276.0%

Other gains, net 85.6 (116.4) NM 44.7 91.4%

Operating profit (loss) 1,222.8 491.0 149.1% 263.4 364.2%

EBITDA 1,490.3 716.2 108.1% 460.3 223.8%

EBIT 1,223.8 491.1 149.2% 264.7 362.3%

Finance income 1.0 0.2 471.3% 1.3 -24.5%

Finance costs (38.5) (39.0) -1.1% (50.5) -23.7%

EBT 1,185.2 452.2 162.1% 214.2 453.4%

Tax (128.4) (30.3) 324.2% (34.4) 273.9%

Net profit 1,056.8 421.9 150.5% 179.8 487.7%

GP margin 29.2% 18.8% 10.4% 13.8% 15.4%

EBITDA margin 30.7% 19.0% 11.6% 16.2% 14.5%

Net profit margin 21.8% 11.2% 10.5% 6.3% 15.4%

Financial Ratio

Current ratio 6.01 1.45 314.1% 1.92 212.8%

Cash cycle (days) 23.42 45.64 -48.7% 67.06 -65.1%

IBD/E 0.21 1.39 -84.8% 1.35 -84.4%

Interest coverage ratio 31.75 12.60 151.9% 5.24 505.8%

ROA 15.4% 12.3% 3.2% 6.2% 9.3%

ROE 20.6% 35.0% -14.4% 17.0% 3.6%

2Q 20 Financial Highlights

4,553 5,003 5,457 6,278

7,381

9,431

13,659 -6.7%

9.9% 9.1% 15.0% 17.6%35.9%

44.8%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n p

cs

1,002 1,080 1,129 1,370 1,889 2,061 3,260 834 776 755

1,065 1,256

1,673

2,321

1,012 1,160 1,254 1,325

1,711 2,105

3,036

2,849 3,016 3,138 3,761

4,857

5,840

8,617 -4.8%

5.9% 4.0%19.8%

29.2% 23.1%

47.6%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

NRPD NRPF NBR %Growth

16

Sales Revenue and Sales Growth

Sales Volume and Volume Growth

YoY Growth 70.5%

YoY Growth 62.1%

All Time High Sales Revenue and Volume

1,002 1,080 1,129 1,370 1,889

834 776 755 1,065

1,256 1,012 1,160 1,254

1,325

1,711

2,849 3,016 3,138

3,761

4,857 -4.8%

5.9% 4.0%

19.8%29.2%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

In m

illio

n T

HB

17

Sales revenue by Products

6M 2019 vs 6M 2020

6M 2020

THB 8,617 mm

6M 2019

THB 5,840 mm

18.0%

29.1%

41.0%

5.7%

4.5%

-2.7%

7.9%

14.6%

-7.0%

8.1%

21.4% 37.9%

NRPD35.3%

NRPF28.6%

NBR36.1%

NRPD37.8%

NRPF26.9%

NBR35.2%

35% 36% 36% 36% 39%

29% 26% 24% 28% 26%

36% 38% 40% 35% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

NBR

NRPF

NRPD

Sales Revenue Breakdown

1,152 1,155 1,144 1,676

2,129

671 542 622

714

949

500 706 696

651

844

337 410 372

418

468

86 93 130

132

235

83 93 147

131

182

20 17

28

39

49

2,849 3,016 3,138

3,761

4,857

0

1,000

2,000

3,000

4,000

5,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

In m

illio

n T

HB

Sales Revenue Breakdown

18

Sales revenue by Geography

6M 2019 vs 6M 2020

6M 2020

THB 8,617 mm

6M 2019

THB 5,840 mm

Asia44%

Europe19% North America

18%

Latin America10%

Middle East4%Africa

4%

Australia,Oceania1%

Asia40%

Europe24%

North America17%

Latin America11%

Middle East4%Africa

3%

Australia,Oceania1%

40% 38% 36%45% 44%

24%18% 20%

19% 20%

18%23% 22%

17% 17%

12% 14% 12% 11% 10%

3% 3% 4% 3% 5%3% 3% 5% 3% 4%1% 1% 1% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

Australia,Oceania

Africa

Middle East

Latin America

North America

Europe

Asia

49.7% 51.3% 47.1%51.6% 49.7%

49.3%

50.6%

13.8%14.8% 15.4%

14.9%14.2%

14.3%

14.5%

11.2%10.4% 10.0%

10.2%9.6%

10.5%

9.9%

7.5%7.5% 7.0%

7.1%7.6%

7.0%

7.3%

17.7%

16.0% 20.4%

16.2%

18.9%

18.9%

17.6%

2,462 2,688

2,807 3,054

3,439

5,060

6,493

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

Raw Material Utilities Salary & Wages Depreciation & Amortization Others

19

COGS Breakdown

Note: (1) Including 1) concentrated latex, 2) synthetic rubber and 3) chemicals

(2) Including 1) former, 2) packaging and 3) others

(1) (2)

Cost of Goods Sold Remains In Good Shape

269 275 242 251

231 265

241

272 262

272 235

235

272

235

626

603

575

599

658

619 631

541 537

514

486 466

537

475

-

100

200

300

400

500

600

700

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

TH

B

Raw material cost per 1,000 pcs Other COGS per 1,000 pcs ASP (per 1,000 pcs)

Increase of ASP and Healthier Margins

20

Average Selling Price and Costs per 1,000 Pieces

ASP QoQ Growth

9.9%

ASP YoY Growth

1.9%

ASP YoY Growth

5.2%

COS/Kpcs YoY Growth

-13.8%

COS/Kpcs QoQ

Growth -4.2% COS/Kpcs YoY

Growth -11.4%

21

Gross Profit and Gross Profit Margin

393 328 330

707

1,418

789

2,124

13.8% 10.9% 10.5%

18.8%

29.2%

13.5%

24.7%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

Gross profit %Margin

YoY Growth 169.3%

QoQ Growth 100.6%

YoY Growth 361.0%

• GPMs are indifferent

across product types

in 2Q 2020

Continual Increase of Gross Profit

28% 26% 27% 28%32%

28%

30%

37% 35% 29%33%

36%

36%

34%

4% 4% 5%4%

5%

5%

5%

2% 2% 2%1%

1%

2%

1%

12% 9% 10%

13%

9%

13%

11%

16% 24% 27%21%

17%

17%

19%

181 192

203 212

233

337

444

0

50

100

150

200

250

300

350

400

450

500

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

Transportation Salary & Wages Office rental Depreciation and Amortization Other Fee Others

Selling & Admin Expenses

22

Note: (1) includes commission, insurance, consultation, bank fee

(1)

• Without extraordinary share-based expenses

from ESOP, our logistic cost increased

marginally due to slightly increase of CIF

incoterm.

• Other SG&As remained unchanged QoQ

SG&A Breakdown

265 172

254

491

1,224

486

1,715

196 204

205

225

267

387

492

460 376

459

716

1,490

873

2,207

16.2%12.5% 14.6%

19.0%

30.7%

15.0%

25.6%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

EBIT DA EBITDA Margin

Historical Record of EBITDA

23

EBITDA and EBITDA Margin

YoY Growth 152.8%

QoQ Growth 108.1%

YoY Growth 223.8%

Interest and Tax Expenses

24

5,846 5,527

3,625

947 1,036

615

264 90

62

7,057 6,653

4,302

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Dec 19 Mar 20 Jun 20

In m

illio

n T

HB

Long term Current portion of LT loan Short term

51 39 39

2.95%2.27%

2.81%

6.01% 5.69% 5.36%

-5.00%

-3.00%

-1.00%

1.00%

3.00%

5.00%

7.00%

0

10

20

30

40

50

60

70

80

4Q 19 1Q 20 2Q 20

In m

illio

n T

HB

Interest expense Effective interest rate MLR

Short term & Long term loan Interest expense

4,750

6,798

4,243

34%

66%

100%

10%

60%

110%

160%

210%

260%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2018 2019 1H 2020

In m

illio

n T

HB

Loan from local institutions (Ex. RAOT portion)

Loan under RAOT program

% Loan under RAOT

Loan under RAOT program • We have benefited from RAOT subsidy

program for the interest paid to the

banks at the rate of 3% which will last till

2026.

• Ultimately, our expansion is financed by

interest-free loans.

• Going forward, 100% of our term-loan will

be under RAOT interest subsidy program

25

• With new committed

investment in the future, our

effective tax rate will remain at

single digit.

• Thanks to tax heaven scheme

from the Board of Investment

in Thailand (BOI) for the 5-8

years tax free for new

investment.

• The investment plan together

with location to achieve

capacity beyond 70 bn pcs

under consideration.

32,619 35,716

45,828

54,379

60,997

65,940 70,191

7.5%

7.1%

5.7% 5.7%

6.3%

7.7%7.4%

-

20,000

40,000

60,000

80,000

100,000

120,000

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2020 2021 2022 2023 2024 2025 2026m

illio

n p

cs

Installed capacity (RHS) Estimated effective tax rate (LHS)

Estimated Effective Tax Rate 2020 - 2026

Estimated Effective Tax Rate

180 105

181

422

1,057

328

1,479

7.2% 3.5% 5.8%11.2%

21.8%

5.6%

17.2%

-200.0%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 6M 19 6M 20

In m

illio

n T

HB

Net profit %Margin

26

Net profit and Net profit Margin

YoY Growth

350.3%

QoQ Growth 150.5%

YoY Growth 487.7%

Record Breaking of Net Profit

27

Asset Liabilities and Shareholders’ Equity

Key Financial Ratios

• Strong balance sheet from shorter cash

cycles and lower debt leverage

• IBD/E Ratio was 0.21x in 2Q 2020

significantly decrease from 1.39x in 2019

due to prepayment of the loan and the

increase in funds from IPO

581

14,376

1,612

1,769

1,612

1,613

8,562

8,690

221

221

628

808

13,216

27,476

0

5,000

10,000

15,000

20,000

25,000

30,000

YE19 Jun-20

In m

illio

n T

HB

Cash and Cash Equivalent Accout Receivables Inventories

PPE Goodwill Other Assets

264 62 1,393 2,110

6,793 4,240

364

519

4,402

20,546

13,216

27,476

0

5,000

10,000

15,000

20,000

25,000

30,000

YE19 Jun-20

In m

illio

n T

HB

Account Payable ST-Loan from Financial instituitions

LT-Loan from Financial instituitions Other Liabilities

Shareholders' Equity

1.390.21

2.00

0.34

4.6%

10.8%

13.9% 14.4%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

0.00

1.00

2.00

3.00

4.00

2019 6M 2020

IBD/E D/E ROA ROE

Strongest Ever Balance Sheets

Shortest Cash Cycle

28

58 61 58 51

42 35

50

60 53

52

50

45

(37)(48) (47) (46) (47) (52)

70 73

64 57

45

28

(120)

(100)

(80)

(60)

(40)

(20)

-

20

40

60

80

(60)

(40)

(20)

-

20

40

60

80

100

120

140

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

AR days Inv. days AP days Cash cycle (days)

• Credit

tightening

• Higher % of

advance

payment to

secure orders

• Empty of FG at

factory

• Minimal WIP

gloves

15,130 15,130 15,130

23,606

27,153

8,476

3,547

5,466

15,130 15,130

23,606

27,153

32,619

2016 2017 2018 2019 2Q 20

mill

ion p

cs

Installed capacity per year Additional capacity

Capacity Development During the Past 5 years

29

Installed capacity per year

Hat Yai (HY)

Trang (TG)

Surat Thani (SR)

Section 3: Business Outlooks

2 2

9

12

16

22

0

5

10

15

20

25

NR gloves NBR gloves

mo

nth

s

Dec-19 Jun-20 Aug-20

31

Lead Time of Product Shipment

• Backlogs have overflown to

Dec 2021 for NR and Mid 2022

for NBR gloves.

• Streamlining production to

yield highest output to capture

the demand.

• Gap of spot price and normal

selling price become narrower.

• ASP is in a reflection of strong

demand and continual price

increase.

Current Shipment Lead Time (Backlogs)

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

31-Dec-19 31-Jan-20 29-Feb-20 31-Mar-20 30-Apr-20 31-May-20 30-Jun-20 31-Jul-20 13-Aug-20

World’s Cases of COVID-19

32

Cumulated confirm cases

In this month, the first corona virus death was reported outside China. France announced the first coronavirus death in Europe and US also reported a death. A cruise ship in Japan quarantined thousands.Italy saw a major surge in cases, Iran emerged as a second focus point and Latin America reported its first case. The disease the virus causes was name to COVID-19.

U.S. officials approved widespread testing and declared a national emergency. U.S. led the world in confirmed cases and more states in US issued stay-at-home directives.The E.U. barred most travelers from outside the bloc.India announced a 21-day lockdown

Cases surged in Russia. The global death toll surpassed 200,000.

Found that the coronavirus reached France in December. Infections in Latin America continue to rise.Coronavirus deaths in the U.S. passed 100,000.

Coronavirus tore into regions previously spared.Coronavirus cases in Africa topped 200,000.The outbreak surged, with clusters on several continents.Southern U.S. states saw sharp rise in cases.

Iran announced new lockdown measures.U.S. deaths surpassed 130,000.Brazil’s president tested positive.Hong Kong shut down schools amid a third wave.Tokyo raised its pandemic alert level.A study in South Korea found that older children spread the virus comparably to adults.India reached a million coronavirus cases, and lockdowns were reimposed.Israel announced new restrictions.

11 Jan 2020, China reported its first death. After that other countries, including U.S., confirmed cases. Wuhan, a city of more than 11 million, was cut off by the Chinese authorities. The W.H.O. declared a global health emergency.

31 Dec 2019, Chinese authorities treated dozens of cases of pneumonia of unknown cause.

1,152 1,155 1,144 1,676

2,129

671 542 622

714

949

500 706 696

651

844

337 410 372

418

468

86 93 130

132

235

83 93 147

131

182

20 17 28

39

49

2,849 3,016 3,138

3,761

4,857

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2Q 19 3Q 19 4Q 19 1Q 20 2Q 20

In m

illio

n T

HB

Sales revenue by region

Asia Europe North America Latin America Middle East Africa Australia,Oceania

Revenue Breakdown by Region in 1H/2020

North America

17.4%

Latin America

10.3%

Europe

Asia


44.2%

19.3%

Middle East

4.3%

Africa

3.6%

33


1.0%

AS 46.6%AS 27.1%

EU 14.8%

EU 32.8%

US 29.6%

LA12.0%ME 78.6%AF 39.3%AU 25.9%Growth

QoQ 29.2%

• Higher % of geography

breakdown to US and EU

(where the NBR gloves are

in deep shortage) shall be

seen in 3Q 2020 onwards.

• Prices have been

increasing across all

types of gloves.

• NBR latex prices adjusted

more aggressively than

NR latex during 3Q 2020.

• Ultimately in long-term ,

STGT will benefit from the

rebased higher selling

prices whereby raw

materials remain relatively

favorable to margins.

Key Investment Highlights

Committed Expansion Plan Fasten Up

34

Strategic Location for Key Suppliers and Tax Privileges

Hat Yai,

Songkhla

Karnchanadid,

Surat Thani

Kantang,

Trang

Installed

Capacity(1)

5,625 mm pieces

per year

Main Raw

Material



Installed

Capacity(1)

17,041 mm pieces

per year

Main Raw

Material



Hat Yai Plant

Surat Thani Plant

Trang Plant

Installed

Capacity(1)


Main Raw

Material

Concentrated Latex

1

2

3




Project SR2 (1Q 21)

Installed

Capacity

2,177 mm pieces

per year

Main Raw

Material



Project SR3 (2Q 21)

Installed

Capacity

3,992 mm pieces

per year

Main Raw

Material



Sadao,

Songkhla

Project Sadao1 (3Q 21)

Installed

Capacity

2,903 mm pieces

per year

Main Raw

Material



Project Sadao2 (1Q 22)

Installed

Capacity

7,258 mm pieces

per year

Main Raw

Material



Chumphon

Project CP (4Q 22)

Installed

Capacity

8,709 mm pieces

per year

Main Raw

Material



Project TG3-4 (4Q 23)

Installed

Capacity

13,064 mm pieces

per year

Main Raw

Material



7 Additional Production

Facilities

Total Installed Capacity of


10 Production Facilities

Total Installed Capacity of


in 2026

New

New

New

New

New

New

Update Expansion SR2

35

32,619 32,619 35,716 45,828

54,379 60,997

65,940 3,097

10,112

8,551

6,618

4,943 4,250

32,619 35,716

45,828

54,379

60,997

65,940

70,191

1,803

7,432

5,234 4,094

2,100 2,402

613

(25,000)

(20,000)

(15,000)

(10,000)

(5,000)

-

5,000

10,000

-

20,000

40,000

60,000

80,000

100,000

120,000

2020 2021 2022 2023 2024 2025 2026

Mill

ion p

cs

Installed Capacity and CAPEX

36

2020 – 2026 CAPEX(1)

Note: (1) CAPEX for the expansion to achieve the installed capacity of 70 billion pieces (excluding land purchase)

Growth 115.2%

Growth 40.5%

8,155 8,201 8,544 9,044 9,926 10,660 11,182 11,708

47 343 499

883 734

522 526

570

8,201 8,544 9,044

9,926 10,660

11,182 11,708

12,278

1,898 2,034 2,048 2,406 1,099 1,286 1,605 2,246

(25,000)

(20,000)

(15,000)

(10,000)

(5,000)

-

5,000

10,000

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22

Mill

ion p

cs

Installed capacity mn pcs. (LHS) Additional mn pcs. (LHS) CAPEX THB mn. Ex. Land (RHS)

CAPEX Unit: In million THB

Gloves in Scarcity Worldwide

37

22

22

22

22

24

24

26

26

26

27

28

28

29

29

29

32

32

33

35

35

35

36

39

41

41

45

47

49

53

57

58

60

66

74

74

75

77

80

80

81

89

91

97

101

115

116

128

137

149

160

179

193

202

211

229

252

272

338

349

477

567

758

869

1778

2132

0 500 1000 1500 2000 2500

New Zealand

Nigeria

Cyprus

Austria

Morocco

Slovakia

Sweden

Kenya

Egypt

Czech Republic

Kazakhstan

Myanmar

Cambodia

Ukraine

Ireland

Kuwait

Jordan

Hungary

Nepal

Bulgaria

Taiwan

Qatar

Saudi Arabia

Belgium

Chile

Greece

Ecuador

Panama

Mexico

Japan

Brazil

Sri Lanka

Romania

Argentina

Netherland

Switzerland

Colombia

Pakistan

Russia

Portugal

Philippines

Hong Kong

France

Israel

South Africa

Australia

Poland

Vietnam

Indonesia

Bangladesh

Germany

Canada

Korea

Peru

Spain

Italy

UAE

Turkey

Singapore

UK

Malaysia

China

USA

India

Thailand

Order Enquiries from Emails

• Enquiries for gloves order from new

customers average over 100 emails

per day from over 140 countries

throughout the world.

Order Enquiries From Online Channels

38

2019-2020

217 153 40 253

65

2,445

148

3,514

73

3,852

115

6,936

90

5,227

86 - 79 - 116 -155

-171

-

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

www.sritranggroup.com www.sritranggloves.com Facebook: SriTrangGloves Thailand Facebook: I'M GLOVE BLACK

Facebook: Sri Trang Gloves Global Facebook: SriTrangGloves Vietnam Line@

• Enquiries for gloves

order from all online

channels increased

drastically over 600%

from 2019

212 233 268 300 360 425 489

10%

15%12%

20%18%

15%

-20%

-10%

0%

10%

20%

30%

0

100

200

300

400

500

600

700

800

2016F 2017F 2018F 2019F 2020F 2021F 2022F

Bill

ion p

cs

Glove demand YoY growth

39

Global Rubber Glove Demand

Source: MARGMA and STGT forecast

Export Concentrated Latex Price and Import Synthetic Rubber

Latex Price during 2014 – June 2020

Source: Rubber Authority of Thailand (RAOT) and Thai Customs

Note: (1) Based on 60.0% Dry Content of Concentrated Latex

(2) Based on 43.5% Dry Content of Synthetic Rubber Latex

20

30

40

50

60

70

80

90

100

110

120

Ja

n 1

4

Mar

14

May 1

4

Ju

l 1

4

Se

p 1

4

Nov 1

4

Ja

n 1

5

Mar

15

May 1

5

Ju

l 1

5

Se

p 1

5

Nov 1

5

Ja

n 1

6

Mar

16

May 1

6

Ju

l 1

6

Se

p 1

6

No

v 1

6

Ja

n 1

7

Mar

17

May 1

7

Ju

l 1

7

Se

p 1

7

Nov 1

7

Ja

n 1

8

Mar

18

May 1

8

Ju

l 1

8

Se

p 1

8

Nov 1

8

Ja

n 1

9

Mar

19

May 1

9

Ju

l 1

9

Se

p 1

9

Nov 1

9

Ja

n 2

0

Mar

20

May 2

0

TH

B/K

g

Export Concentrated Latex Price Adjusted Concentrated Latex Price Import Synthetic Rubber Latex Price Adjusted Synthetic Rubber Latex Price(2)(1)

Raw Material Price

Forecasted Global Rubber Glove Demand during 2016 - 2022

Solid Demand Under Covid & Post Covid as “New Normal”

Best in Class Workforce Treatment

40

BSCI Rating as of July 2020

HY: Most updated rating done in Jul 2020 as overall “A” rating

SR: Most updated rating done in Jul 2019 as overall “B” rating

TG: To be done in Sep 2020

• We have been scored and

ranked by highly reputable

accredited social auditing

“BSCI” as a highest rating of

“A” in all aspects.

• Our workforce is well

balanced at local:foreign

workers 55:45

• We have treated our

workforce with full

compliance with laws and

regulations.

• We have never experienced

having a forced labor issue

with any regulators or

customers worldwide.

41

Strong Reputation and Best-in-class Products and Services

Operational excellence with international standards/certificates

Source: Company

Sustainability

Certificates

Product

Certificates

Factory

Management

Certificates

Standards

ISO 9001: 2015 DIN EN ISO

13485: 2016

ISO 13485: 2016 ISO 22000: 2005

Thai Industrial

Standards

MDD 93/42/EEC

Class I

MDD 93/42/EEC

Class I Sterile

PPE (EU)

2016/425

Category III

ISO 14001: 2015 Business Social

Compliance

Initiative

Green Industry

international

standard base in

USA

European

specification

requirement

Australian/

New Zealand

standard

Japanese

standard

Chinese

standard

Brazil

standard

Touch Of Life

Sri Trang Gloves Thailand

Over 30 years, STGT brand has been built and

successfully integrated into Thai society as one of the

most successful rubber glove producer in Thailand

STGT offer a wide range of high-quality natural rubber and

nitrile examination gloves as well as general-purpose disposable

gloves, both powdered and powder-free, catering to a wide variety

of applications to satisfy and adapt to the changing lifestyle of

consumers

Successful Development Of Rubber Glove

Business Model

Forest

Stewardship

Council

Certificates

Our Pride of Awards and Industry Recognition

42

Our Corporate Social Activities

43

Activities

• Donates gloves 1 mn pcs. to Chinese government

• Donates gloves 2 mn pcs. to Ministry of Public

Health

• Donates gloves in total of 1.1 mn pcs. to

governor, hospitals and organizations in

Songkhla, Surat Thani and Trang provinces

• “Sharing a Touch of Love” project, giving 1,000

lunch boxes to people affected by COVID-19 in

Songkhla, Surat Thani and Trang provinces

Chinese Government

Ministry of Public Health

Governor of Trang Province

Kanjanadit Hospital

Governor of Songkhla Province

Surat Thani Hospital

Donate lunch boxes

Helping Chronic patient Empowering disability persons

Thai Red Cross

44

Investor Relation:

Call: +66 2207 4500 Ext. 1404

Email: [email protected]

www.sritranggloves.com

Contact Us

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