Download Global Connections Public Company Limited Opportunity day “2009

Global Connections Public Company Limited
Opportunity day
“2009 Performance
Announcement”
March 3, 2010
1
Today Content
•
•
•
•
•
Company Overview
Plastic and Petrochemical Industry
2009 Performance
AGM rating & CG Rating Result
Q&A
2
Company Overview
 GC has been founded since 1994 by 5
experienced management
Listed to SET
6th Dec.2005
Total Revenue
3,473
MB
4,000
3,390
3,429
3,500
2,665
3,000
 GC is the distributor of 23 leading
producers of plastics and petrochemical
raw materials from around the world.
2,500
 Most of these producers are among the top
3 in the world in that product in terms of
technology & production capacity.
2,000
1,500
1,000
500
76
GC Revenue During 1995 – 2009
20
09
20
07
20
05
20
03
20
01
19
99
19
97
19
95
-
Year
 GC is not an ordinary distributor. On top of
ordinary distribution role, GC provide
technical advice and useful information to
customers since GC position itself to be
Your best partner for solution and service
in Industrial raw material supply.
3
GC role in the market
World without distributor
Suppliers
S1
S2
S3
S4
S5
Sn
Customers
C1
C2
C3
C4
C5
Cn
)
4
GC role in the market
World with distributor
Economy of Scale to Suppliers
Suppliers
S1
)
S2
S3
S4
S5
Sn
Global Connections Public Co., Ltd.
Provided
Customers
Logistic
: warehousing, small delivery, and repacking
Sales & Marketing : end markets/customers
Technical Services
Financing & structuring solution
C1
C2
C3
C4
C5
Economy of Scope to Customers
Cn
5
Where we are in the value chain of Thai
Petrochemical Industry
Petrochemical and plastic producers
Upstream
Intermediate
Olefin&Aromatic
Producers
Downstream
Monomer
producers
(MEG, VCM)
Polymer
producers
(PP, PE, PVC)
Compounders
Global
Connections
End users
Compounders
Masterbatch
producers
Converters
6
Organization Chart
Board of Directors
The Nomination and
Remuneration Committee
Audit Committee
Executive Committee
Internal Audit
President
The President Office
Marketing
Department 1
Marketing
Department 2
Marketing
Department 3
HR &
Administration
Operation
Finance &
Account
7
Board of Directors
1. Mr. Virah Mavichak
Chairman of the Board and
Independent Director
2. Dr. Pisit Leeahtam
Independent Director and
Chairman of Audit Committee
3. Assoc. Prof. Chawalee Pongpatirochna Independent Director and
Audit Committee
4. Mr. Suchart Suphayak
Independent Director and
Audit Committee
5. Mr. Somchai Kulimakin
Vice - Chairman and President
6. Mr. Sumruay Tichachol
Director
7. Mr. Aikachai Sirijantanan
Director
8. Mr. Siri Thirawattanawong
Director
9. Mr. Bhiya Jriyasetapong
Director
8
Major Shareholders
Free Float Overview As of 31/12/2009
Minor Shareholders
% Shares in Minor Shareholders
(Free float)
393 (% Free float)
Overview As of
Total Shareholders
Rank
1
2
3
4
5
25.40%
31/12/2009
438
Major Shareholders (as of 16/03/2009)
Mr. Somchai Kulimakin
Mr. Sumruay Tichachol
Mr. Aikachai Sirijantanan
Mr. Bhiya Jriyasetapong
Mr. Siri Thirawattanawong
Sub total
# Shares
% Shares
46,499,800
27,125,000
27,125,000
26,125,000
15,426,000
142,300,800
Current Low Liquidity of GC’s Stock
23.25
13.56
13.56
13.06
7.71
71.15
9
Business Unit
GC
2. Specialty & Engineering
Polymer
1. Commodity Polymer
1.1 Polyolefin
SBU
3.1 Additive
&Adhesive
SBU
1.2 PET&PVC
SBU
2.1 Engineer
&Synthetic
Rubber
SBU
3. Specialty Chemical
2.2 Themo.
Rubber&
Transparency
SBU
3.2 Petrochem.
&Intermediate
SBU
2.3 Styrenic
Plastic
SBU
10
Corporate Value
• Ethics
• Integrity
• Professional & Focus
• Partnership
• Strive for better
11
Plastic and Petrochemicals Industry
12
ภาพรวมของธุรกิจอุตสาหกรรมปิ โตรเคมี
 ราคาสิ นค้ าปิ โตรเคมี และเม็ดพลาสติกแกว่ งตัวลดลงในช่วงปลายไตรมาสที่ 3/2552 จากราคาน้ ามันที่
อ่อนตัวลงและการชะลอการซื้อของจีนก่อนถึงวันชาติ 1 ตุลาคม แต่สถานการณ์เริ่ มกลับมาฟื้ นตัวดี
ขึ้นในช่วงปลายไตรมาส 4/2552 จากราคาน้ ามันที่ปรับขึ้นแตะระดับ 80 เหรี ยญสหรัฐต่อบาร์เรล และ
ทรงตัวในช่วงราคา 70 – 80 เหรี ยญสหรัฐต่อบาร์เรล ได้ตลอดไตรมาส 4/2552 เป็ นผลจากตัวเลข
เศรษฐกิจโลกที่เริ่ มกลับมาขยายตัวดีข้ ึน
 ผลกระทบจากคาสัง่ ศาลปกครองสูงสุ ดที่ให้ระงับ 76 โครงการอุตสาหกรรมที่นิคมมาบตาพุด เมื่อ
วันที่ 29 กันยายน 2552 เริ่ มส่ งผลกระทบต่ออุปทานของวัตถุดิบปิ โตรเคมี และเม็ดพลาสติก ทาให้
ผู้ประกอบการโรงงานแปรรูปทีล่ ดสิ นค้ าคงคลังของเม็ดพลาสติกลงจนต่ามาก ต้ องหันกลับมาซื้อ
ก่ อนจะข้ ามปี เพื่อสร้างความมัน่ ใจว่าจะมีเม็ดพลาสติกป้ อนเครื่ องจักรในการผลิต และราคาเม็ด
พลาสติกกลับสวนทางกับภาษี AFTA ที่จะปรับลดลงเป็ นศูนย์ มีผลตั้งแต่วนั ที่ 1 มกราคม 2553
เป็ นต้นไป
 กาลังซื้อกลับมาเพื่อเติมสิ นค้าคงคลังประกอบกับการฟื้ นตัวอย่างชัดเจนของอุตสาหกรรมหลักที่มี
การใช้เม็ดพลาสติกเป็ นส่ วนประกอบเสริ ม เช่น อุตสาหกรรมรถยนต์ เครื่ องใช้ไฟฟ้ า และ
อิเล็กทรอนิกส์ กลับมาดีต่อเนื่อง เกือบจะใกล้เคียงกับช่วงก่อนเกิดวิกฤติเศรษฐกิจในปี 2551 และคาด
ว่าจะดีต่อเนื่องจนสิ้ นสุ ดไตรมาส 1/2553
13
กราฟแสดงราคาน้ ามันดิบระหว่างปี 2552 - ปัจจุบนั
14
Plastic Producer Type Portion
Source : www.plastic.oie.go.th
15
Plastic Producer by Industry
Source : www.plastic.oie.go.th
16
Product volume by process
Source : www.plastic.oie.go.th
17
2009 Performance
18
Income Statement
Actual Q4
Sales
COGS
Gross Profit
Reversal of allowance for
diminution in value of inventories
Selling & Admin Expenses
Loss(Gain) on Exchange
EBITDA
Depreciation
Interest Expense
Profit Before Other Income
Other Income
Profit before Tax
Tax
Net Profit
2009
712.15
657.18
54.97
0.00
19.66
(1.44)
36.75
2.90
1.23
32.62
2.88
35.50
8.17
27.33
2008
Change
534.90
33%
510.75
29%
24.15
128%
3.00
24.59
0.15
(3.59)
2.97
3.81
(10.37)
4.14
(6.23)
0.28
(6.51)
-100%
-20%
-1060%
-1124%
-2%
-68%
-415%
-30%
-670%
2818%
-520%
Unit : Million Baht
Actual Year
2009
2008
Change
2,647.35 3,410.03
-22%
2,459.78 3,168.53
-22%
187.57
241.50
-22%
(21.00)
87.01
(3.57)
125.13
11.56
5.82
107.75
13.94
121.69
25.39
96.30
23.00
97.97
(1.36)
121.89
12.06
15.14
94.69
17.39
112.08
35.54
76.54
-191%
-11%
163%
3%
-4%
-62%
14%
-20%
9%
-29%
26%
19
Sales Structure
BU3
BU2
BU1
BU3
BU2
BU1
Sales Quantity
62.4
'000 T
1.4
70
60
50
40
30
20
10
7.8
59.1
58.9
1.2
1.7
8.9
12.0
53.9
52.0
1.3
1.3
Sales Quantity in Pecentage
2.3%
100%
12.6%
15.1%
85.1%
82.9%
20.3%
20.8%
18.2%
76.8%
76.8%
79.3%
9.5
49.0
45.3
41.4
41.2
40%
20%
2006
2007
2008
2009
Year
0%
2005
Sales Value
3,258
4,000
3,000
2.5%
60%
53.1
2005
3,500
2.4%
2.9%
80%
11.2
-
BU3
BU2
BU1
2.1%
167
666
3,378
149
822
3,456
186
BU3
BU2
BU1
3,410
149
2,647
138
983
968
2006
2007
2008
2009
Sales Value in Percentage
5.1%
4.4%
5.4%
4.4%
5.2%
100%
20.5%
24.3%
28.4%
28.4%
27.6%
74.4%
71.2%
66.2%
67.2%
67.2%
80%
2,500
730
60%
2,000
1,500
40%
2,424
2,406
2,287
2,293
1,000
1,779
20%
500
0%
2005
0
2005
2006
2007
2008
2009
2006
2007
2008
2009
20
Gross Profit Structure
BU3
Gros s Profit By BU
BU2
BU1
฿280
257
259
38
33
BU3
BU2
BU1
Gross Profit in Percentage
219
฿260
฿240
201
100%
17%
11%
41%
49%
43%
40%
15%
13%
52%
52%
33%
35%
12%
176
฿220
25
80%
฿200
24
฿180
29
฿160
133
135
60%
107
฿140
฿120
85
72
40%
฿100
฿80
฿60
75
฿40
42%
87
86
20%
92
91
฿20
46%
0%
฿0
2005
2006
2007
2008
2005
2009
2006
2007
2008
BU1
BU2
BU3
Gross Profit Margin by SBU
No. of Supplier
BU1
BU2
BU3
9
12
6
2009
25.0%
22.4%
20.0%
17.5%
16.8%
20.3%
17.1%
15.0%
13.9%
13.0%
10.8%
13.6%
11.7%
10.0%
5.0%
3.6%
3.7%
5.2%
4.0%
3.1%
0.0%
2005
2006
2007
2008
2009
21
P&L Highlights
Revenue & Net Profit
4000
120
Revenue (Million Baht)
3,390
3,272
3,429
96
108
3000
35100
2,665
2500
3080
77
2000
2560
67
20
1500
40
1000
37
15
20
500
Net Profit (Million Baht)
3,473
3500
10
0
0
2005
2006
2007
Revenue
2008
2009
5
Net Profit
2005
2006
2007
2008
2009
Profitability Ratio
Profit Margin
8.0
ROE
35
31.81
7.0
6.00
6.94
7.08
6.0
21.35
21.74
20
3.64
4.0
3.14
15.99
2.0
1.0
30
25
5.01
5.0
3.0
7.09
25.82
15
2.24
1.97
10
1.12
5
0.0
2005
2006
Gross Profit Margin (%)
2007
2008
Net Profit Margin (%)
2009
ROE (%)
Revenue and Net Profit
 In 2009, Sales decreased from 2008 around
22.37 % resulting from the impact of global
economic downturn.
Profit Margin
 GC’s gross profit amount has been decreased from
THB 242 million in 2008 to be THB 188 million in
2009 because of the decrease in sales volume as
well as the dropping of selling price in accordance
with oil price fluctuation. However, the sales
revenue and gross profit margin had been
improving since ending Q2/2009 due to the
improvement of purchasing power and the increase
in selling price led by higher oil price.
 GC’s net profit margin of 2009 is around 3.64%
higher than 2.24% in 2008. This was due to the
allowance for diminution in value of inventory and
allowance for doubtful debts made during 2008.
22
GC’s Performance over two years
* All GP calculate before transportation cost
Profit Margin
GC's Sales & Gross Profit by Quarter in 2008-2009
9%
1,400
1,200
1,000
800
600
400
200
-
90
83
76
1,001
50
990
67
70
72
801
623
712
535
511
28
25
50
8.14%
30
(10)
Sales 2008
Sales 2009
Q3
GP2008
Q4
GP2009
8.23%
5%
5.14% 4.96%
3%
3.87%
4.11%
3.84%
4.26%
3.25%
2%
2.24%
1%
Q2
8.37%
7.64%
4%
10
Q1
8.03%
6%
59
885
8% 8.37%
7%
1.11%
-1.22%
0%
Q1
2008
Q2
Q3
Q4
Gross Profit Margin
Q1
Q2
2009
Q3
Q4
Net Profit Margin
Balance Sheet
Unit : Million Baht
Asset
Accounts Receivable
Inventory
Net Fixed Assets
Total Assets
Liabilities
Short Term Loan
Accounts Payable
Total Liabilities
Equity
Paid up Capital
Share Premium
Retained Earnings
Total Equity
31/12/2009
385.57
266.31
145.20
828.09
31/12/2008
Change
283.23 102.34
305.69 -39.38
154.14
-8.94
771.52
56.57
%
36%
-13%
-6%
7%
220.00
174.95
432.95
290.00
102.34
420.67
-70.00
72.61
12.28
-24%
71%
3%
200.00
56.03
139.11
395.14
200.00
56.03
94.81
350.85
0.00
0.00
44.30
44.29
0%
0%
47%
13%
24
Balance sheet Highlight
Debt to Equity Ratio
5.00
D/E ratio is relatively lower.
 D/E ratio is less than 2.0 which decreased
after IPO proceeds .
4.35
4.00
3.00
2.00
2.00
1.70
1.58
1.20
1.10
2008
2009
1.00
2004
2005
2006
2007
Current Ratio
2.00
1.50
1.00
1.46
1.37
2006
2007
1.28
1.48
1.58
Continuous increase in current ratio
 GC current ratio has been improving to
higher than 1.0x since GC got more working
capital from IPO proceed.
 This higher liquidity can reduce GC’s
financial costs.
0.94
0.50
2004
2005
2008
2009
25
CASH FLOW
FOR THE YEARS ENDED 31 DECEMBER 2009 AND 2008
(Unit : Thousand Baht)
Cash flows from operating activities
Net income before tax
Adjustments to reconcile net income before tax to net cash provided by
(paid from) operating activities :Income from operating activities before changes in operating assets
and liabilities
Operating assets (increase) decrease
Trade accounts receivable
Inventories
Other current assets
Other non-current assets
Operating liabilities increase (decrease)
Trade accounts payable
Accrued expenses
Other current liabilities
Cash flow from operating activities
Cash paid for interest expenses
Cash paid for corporate income tax
Net cash flows from operating activities
2009
2008
121,691
112,080
(3,965)
55,929
117,726
168,009
(102,347)
60,373
341
15
263,700
(116,199)
(588)
(806)
72,541
3,028
2,265
153,942
(5,773)
(16,625)
131,544
(87,847)
(1,067)
(2,806)
222,396
(14,368)
(45,386)
162,642
CASH FLOW
FOR THE YEARS ENDED ENDED 31 DECEMBER 2009 AND 2008
(Unit : Thousand Baht)
Cash flows from investing activities
Acquisition of equipment
Proceeds from sales of motor vehicles and equipment
Net cash flows used in investing activities
Cash flows from financing activities
Decrease in short-term loans from financial institutions
Cash paid for liabilities under finance lease agreements
Decrease in long-term loan
Dividend paid
Interim dividend paid
Net cash flows used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2009
2008
(2,625)
425
(2,200)
(3,536)
2,044
(1,492)
(70,000)
(4,439)
0
(24,000)
(28,000)
(126,439)
2,905
18,010
20,915
(40,000)
(5,992)
(19,950)
(52,000)
(40,000)
(157,942)
3,208
14,802
18,010
Dividend Payout
Dividend Payout Ratio
11th
10/03/08
100%
84%
80%
77%
75%
74%
2006
2007
source :
SET news
on 10.03.08
To be top 50
dividend yield stock
83%
with continuous growth
Positioning of GC Stock
60%
2005
2008
2009
Dividend Payment Record
Operation
Dividend
Payment
Period Ending
(BPS.)
Date
31-Dec-09
30-Jun-09
31-Dec-08
30-Jun-08
31-Dec-07
30-Jun-07
0.26
0.14
0.12
0.20
0.26
0.14
30-Apr-10
11-Sep-09
30-Apr-09
12-Sep-08
30-Apr-08
7-Sep-07
X-Date
Price with X-Date
before
19-Apr-10
27-Aug-09
16-Apr-09
26-Aug-08
17-Mar-08
21-Aug-07
Dividend Yield
on x-date (cal. From X-Date
N/A
3.28
2.40
4.84
N/A
3.18
2.40
4.60
4.06
3.46
3.90
3.32
N/A
4.27%
5.00%
4.13%
6.40%
4.05%
28
Competitors and Benchmarking
29
Competitor Analysis and Benchmarking
Earning Result of 2009 and 2008
Stock
GC
UKEM
WG
Net profit (Bm)
2009
2008
96.3
49.5
134.1
76.5
47.3
140.4
EPS (B)
%chng Q4/09 Q4/08 %QoQ Q3/09 %QoQ 2009
26%
5%
-4%
27.3 - 6.5
8.8 - 16.0
30.5
22.2
519%
155%
37%
31.0
9.5
36.8
-12%
-7%
-17%
2008
2007
%chng
0.38
0.07
7.9
0.54
0.06
7.35
0.48
0.08
7.50
2008
%chng
0.38
0.07
7.86
26%
5%
-5%
The Year 2008
Stock
Net Profit (Bm)
2009
GC
UKEM
WG
2008 2007
96.3
76.5 108.5
49.5
47.3
37.1
134.1 140.4 131.1
EPS (B)
%chng 2009
26%
5%
-5%
0.48
0.08
7.5
26% Par = THB 1
5% Par = THB 0.25
-5% Par = THB 10
30
CG & AGM Rating Result
31
CG Rating Result for the year 2009
Average score
90%
88%
บริ ษทั
SET 50 Index
SET 100 Index
88%
บริ ษทั จดทะเบียนโดยรวม
82%
78%
80%
82%
84%
86%
88%
90%
32
CG Rating Result for the year 2009
Corporate Governance Report of Thai Listed Companies 2009
120%
100%
91%
95% 95% 94%
83%
80%
93%
92%
88% 89%
86% 85%
90%
93% 94%
96%
88% 88%
79%
79%
77% 78%
90%
82%
68%
60%
40%
20%
0%
บริ ษัทจดทะเบียนโดยรวม
SET 100 Index
SET 50 Index
บริ ษัท
33
CG Rating Result for the year 2009
ผลการประเมินการกากับดูแลกิจการบริษัทจดทะเบียนประจาปี
จากทั้งหมด 290 บริษทั
52 บริ ษทั
14 บริ ษทั
GC
2009
86 บริ ษทั
Below good
2552
Below good 60-0
Good 70-79
Very good 80-89
Excellent 90-100
Good
Very Good
138 บริ ษทั
34
AGM Rating Result for the year 2009
Total 497 Companies
99.0
83.0
คะแนนสูงสุด
คะแนนต่าสุด
36.3
คะแนนเฉลี่ย
100.0
-
20.0
40.0
60.0
80.0
คะแนน GC
100.0
35
Thank you,
Questions are welcome
36
Credit Insurance
• Start the fifth year agreement of Trade Credit
Insurance with New Hampshire Insurance
Company (AIG Thailand)
• Threshold or non qualify loss at THB 300,000.
• Cover 90% immediately of approved customer
(maximum THB 100 Million)
37
Financial Ratio
Liquidty Ratio
Current Ratio
Collection Period
Inventory Turnover Period
Payment Period
Cash Cycle
Profitability & Efficiency Ratio
Gross Profit Margin
Net Profit Margin
ROE
ROA
Financial Policy Ratio
D/E Ratio
2009
2008
Time
Day
Day
Day
Day
1.58
47.24
41.86
20.29
68.81
1.48
45.20
29.44
16.61
58.03
%
%
%
%
7.09
3.64
25.82
12.04
7.08
2.24
21.35
8.91
Time
1.10
1.20
38
A/R as of December 2009
and it’s position after one month pass
Not yet due
Post due
Up to 1 month
1-3 months
3-6 months
6-12 months
Over 12 months
Total
31/12/2009
%
Receive
31/01/2010
271,837,979.64
68.2
106,961,670.81
164,876,308.83
101,877,116.18
8,777,691.51
4,450,986.75
810,433.63
10,819,236.65
25.6
2.2
1.1
0.2
2.7
96,054,559.50
8,717,664.51
621,490.00
0.00
0.00
5,822,556.68
60,027.00
3,829,496.75
810,433.63
10,819,236.65
398,573,444.36
100.0
212,355,384.82
186,218,059.54
Less : Allowance for doubtful
(13,000,000.00)
Trade accounts receivable-net
385,573,444.36
Balance
39
Purchase Portion
% USD Purchase Portion
Import
Other Local
SCG
100%
20.9%
19.1%
18.8%
26.8% 24.5%
80%
24.0%
27.1%
25.3%
23.0% 20.9%
55.1%
53.8%
55.9%
50.2% 54.6%
60%
40%
20%
0%
2005
2006
2007
2008
2009
40