2. 2
Content
I Becoming STARK
Business Background
Management and Shareholding Structure
Investment Highlights
Financial Highlight
II
III
IV
V
VI
STARK Aspiration
4. 4
The Beginning of STARK
SET Approved backdoor listing of STARK
STARK completely divested the existing businesses
(Media) of SMM and fully transformed to STARK
STARK adequately increased its equity through a rights
offering increasing its free float and lowering its gearing
ratio, and prompt for future expansions
STARK successfully signed SPA to purchase 100%
shares in Thipha and Dovina to expand its capacity
and coverage
STARK shareholder meeting approved the
acquisition of ADS (logistic business)
5. 5
World Leading Electric Wire and Cable Company in the Highest Growth Region
3.9%
1.9%
1.9% 2.5%
2.5%
6.0%
North
America
South
America
W-Europe E-Europe
Africa South East Asia
5.2%
Asia-Pacific
Dominant Player in The Region with Highest Global Energy Consumption Growth Rate
Southeast Asia’s growth in electricity demand, at an average of 6% per year, has been among the
fastest in the world, but a number of electricity infrastructure in the region are facing significant
strains.
Low Key Competitive in the region
In Southeast Asia, Stark is the largest wire and cable producer in term of volume. Although China and
India, for instance, has high wire and cable growth rate, their products are low quality and producers in
China are fragmented. Most of their products are used mainly in their country
0.75
0.8
0.91
1.16
1.34
1.5
2.2
2.5
4.6
4.9
5.5
5.8
7.2
13.9
Qingdao
STARK*
Polycab
Jiangnan
Grupo
STARK**
Far East
Walsin
Furukawa
Nexan
Southwire
Sumitomo
Hengtong
Prysmian
#1 in Southeast Asia Electric Wire and Cable
After project Mekong acquisition, Stark will become #1 Largest Electric Wire and Cable
Company in Asia. After fully utilized unused non-used production capacity from project
Mekong and replace the existing low value added products with high value added
products, STARK revenue will have potential growth to USD 1.5 bn
Revenue 2018 : (Unit : USD mm)
Source : Integer Research, Prysmian Website, Nexan Website, and LS Cable Website, and BOL
* Consolidate on 2019 Revenue and **After full intregation
After Full Integration
7. 7
Product and Market Segment
Mass Rapid Transportation
Utility & Infrastructure
Renewable Energy
Submarine Cable
Industry, Oil & Gas, Petrochemical
Building & Construction
System Services
Accessories & Appliance
Copper Rod, Aluminium Rod
Bare Copper and Aluminium Conductors
Building Wires
Internal and External Telecommunication Cables
Low Voltage Power Cables, Control Cables and Instrumentation Cables
Photovoltaic Cables
Medium – Extra High Voltage Power Cables
Lead Sheathed Cables, Corrugated Aluminium, Copper or Stainless Steel
Sheathed Cables
Low Smoke Halogen Free, Flame Retardant and Fire Resistant Cables
8. 8
Only Producer in Thailand and
Vietnam of High Voltage cable for
Underground & Overhead
(EGAT / PEA / MEA / EVN)
High Voltage Testing Room
at 400 kV
High Voltage Mobile Testing Unit
(Only One in Thailand)
World Class Standard with High Technology
Highest Quality with the
Premium A+ Grade
1 4
Vertical Continuous Vulcanization
(VCV) Technology
3
Milliken Conductor
2
Oxygen-Free
Closed System
5
Double Skin Insulation
Production
6 7 8 9
Photovoltaic Cables - PV Cable
(the Only German Standard in Thailand)
To supply to Ducab giant solar farm
Submarine Cable
10
9. 9
South East Asia Competition Landscape
Extra High Voltage
(220 - 500 kV)
High Voltage
(45 - 150 kV)
Medium Voltage
(6 - 36 kV)
Low Voltage
(<3 kV)
Extra Low Voltage
(Instrument & Control wire)
Other
50 Companies
Powerplant
Renewable
Powerplant Petrochemical Petrochemical
Transmission and Distribution
High Raise Building
Individual Consumption
Industrial
Estate
Transportation
10. 10
New Business Opportunities Expansion
High
Technology & Margin
Low
<3kV 6 – 36 kV 220 – 500 kV Special Technology/
Production
45 – 150 kV
Low Voltage Medium Voltage High Voltage Extra High Voltage Special Wire / Cable
• Marine cable
• Fire resistant cable
• Electronic vehicle cable
• Flexible cable for Robotic
• Military grade cable
• Aerospace cable
Local Players Global Players
Other Local Companies
50 Companies
11. 11
STARK – The Only World Class Standard Wire and Cable Company in South East Asia
Key Certificates
Most of Certificates
None of Certificates
12. 12
The World Class Safety Standard
Middle East
North America Europe
South
America
Africa
Oceania
Asia
Domestic
(Thailand)
15. 15
The World Class Safety Standard
Country
Hong Kong Myanmar Cambodia Philippine India Vietnam Singapore Oman Sri Lanka China
Qtech
Enginerring
PD energy
LTL
Our
Customers
Asia Pacific
16. 16
The World Class Safety Standard
Country
Malaysia Japan South korea Pakistan Indonesia Australia New Zealand Brunei Bangladesh Laos
Asia Pacific
SVT
Our
Customers
17. 17
The World Class Safety Standard
Country
USA Mexico Elsalvador Colombia Brazil Peru
GC Mexico
Our
Customers
America
18. 18
Africa & Middle East
The World Class Safety Standard
Country
South Africa Zambia UAE Jordan
Our
Customers
19. 19
The World Class Safety Standard
Country
UK Ireland
Our
Customers
Europe
20. 20
Manufacturing Plants in Thailand
Manufacturing Plant #1 : Bang Pli (84 + 30 Rais) Manufacturing Plant #2 : Rayong (84 Rais)
Alloy : 15,000 (30%)
Aluminum : 25,000 MT (70%)
Copper : 30,000 MT (80%)
Production Capacity
1) Existing 84 rais = 33.2 acres 1) Existing 44 rais = 17.4 acres
2) Expansion 30 rais = 11.9 acres 2) Expansion 40 rais = 15.8 acres
3) Total 114 rais = 45.1 acres 3) Total 84 rais = 33.2 acres
21. 21
Manufacturing Plants in Vietnam
Manufacturing Plant : Long An, Vietnam
Plastic : 15,000 MT
Aluminum : 65,000 MT (50%)
Copper : 72,000 MT (50%)
Production Capacity
1) Existing 120 rais = 47 acres
2) Expansion 5 rais = 2 acres
3) Total 125 rais = 49 acres
23. 23
Mr. Chanin Yensudchai
Name : Mr. Chanin Yensudchai
Leading Positions:
2019 Chairman – Stark Corporation PCL
2015 – Present Chairman – Phelps Dodge International
Thailand Co.,Ltd.
2014 – Present Chairman – Sherwood Corporation
(Thailand) PCL
2017 – Present Honorary Consul – Ethiopia
Proven Expertise :
• Leadership Talent
• Business Turnaround
• Lean Management
• Merger & Acquisition
• Debt Restructuring
• Strong Entrepreneurship
24. 24
21%
18%
20% 21%
25%
28%
19%
32%
2014 2015 2016 2017 2018
Our Group : Super Impressive Track Record
Wire and Cable Logistic
• Acquisition : 2015
• Business : Electrical Wire and Cable Manufacturing
THB mm 2014 2015 2016 2017 2018
%CAGR
(2016-2018)
Revenue 7,365 6,024 6,722 7,793 10,426 24.5%
Net Profit (115) (88) 327 369 463 18.9%
• Acquisition : 2014
• Business : Energy Related Logistic and Engineering
THB mm 2014 2015 2016 2017 2018
%CAGR
(2016-2018)
Revenue 2,024 2,394 2,326 2,347 2,995 13.5%
Net Profit 149 182 163 217 250 23.8%
Note: The financial information of Logistic is based on Management Accounts
Mid 2020
Completed 2019
25. 25
% Shareholding Structure : Improving Free Float to meet SET 50/100 criteria
Team A Group : 95.6%
Free Float : 4.4%
Team A Group : 90.3%
Free Float : 9.7%
Team A Group : 75% -80%
Free Float : 15% - 20%
Existing After RO (End Sep 19) Distribution the Float
22,489 mm shares 23,182 mm shares Max 25,000 mm shares
Qualified SET 50/100 Criteria
27. 27
PDITL Investment Highlights
I Locate on the World’s Highest Growth Demand & Tax Privileges
Positive Industry Outlook
The Highest Profit Margin among Wire and Cable Company in the World
The Highest Revenue Growth among Wire and Cable Company in the World
Stable EBITDA Margin over Fluctuation of Raw Materials Price
II
III
IV
V
VI
Speedy Operating Cash Cycle
28. 28
Locate on the World’s Highest Growth Demand & Tax Privileges
3.9%
5.2%
2.5%
1.9%
2.5% Asia Pacific
E-Europe
North America
South America
Electricity Consumption Growth Rate 2019
Africa
W-Europe
1.9%
Asia Pacific is the Best Location for Electricity Wire and Cable
Asia Pacific has the highest growth rate for the Electricity Consumption as currently Asia Pacific
economics has the highest growth rate and Electricity Consumption per Capita is relatively low
comparing to North America and Europe. The higher consumption, facility has to change from old to
new, also from low voltage to high voltage to accommodate the consumption and reduce the loss in
transmission.
12,984
6,353
3,677 2,540 1,981 1,687 1,410
North America Europe Asia Pacific Thailand South
America
Africa Vietnam
Result from the Growth of Electricity Consumption – Example Thailand
Low kV
39%
43%
17%
45%
43%
11%
Medium kV
High and
Ultra High
kV
As of 2007 As of 2017
Even if Electricity already access to all Thai
population, it does not mean that voltage cable will
support a higher demand in residential and
industrial consumption
Meanwhile, EGAT and PEA tends to use medium
to utra high kV wire cable in order to enhance the
capacity of electricity distribution.
Medium to Utra High kv Cable is in demand for Electricity Expansion
EGAT/EVN increases transmission investment to reduce electricity loss by extending transmission
line and to cover the untapped demand
Electricity Consumption per Capita (kWh per capita)
Distribution
Transmission
I
Tax Privileges of Thailand / ASEANs
• Free Tax Area (FTA) of Thailand and > 20 countries (Japan / India / Oceania / Canada)
• Bilateral and Multilateral agreements of Thailand and many countries
6.0% South East Asia
2007 2017
3.5%
Per Annum
2007 2017
8.0%
Per Annum
29. 29
Positive Industry Outlook
In the near future, the electricity wire and cable will have positive industry outlook to enhance growth rate of the Asia Pacific’s wire and cable consumption including
SMART City, EV Car, and ASEAN grid line
A New Chapter of ASEAN Energy
Disrupt in Electricity Industry SMART City & EV Station
Thailand
Laos
Vietnam
Malaysia
Malaysia
Phillipines
Singapore
Indonesia
East Timer
Cambodia
Myanmar
Pacific Ocean
Existing Interconnections
Planned Interconnections
Power Network Interconnections Helps to Enhance Security, As well As to Tap
Renewable Resources
Changing topology of the Grid
MV and LV networks
Shift in City Infrastructureand
Smart Buildings
Booming Integration of e-mobility
in the local infrastructure
Individual Consumption
Large Buildings and
Industrial Estates
HV Transmission Grid
Integrated
Datacenter
Integrated
Mobility Services
Increase in
Energy Density
Smart Grid Transmission will become
Backbone of the Future Development
ASEAN Grid Line is the efficient utilization of clean energy to meet increasing demand of electricity.
The Grid Line will integrate ASEAN large geographical power transmission infrastructure so that a large
scale renewable energy will be more feasible
Smart City and EV Station will entirely change how people connect with the electricity and information.
Electricity and Smart Grid Transmission are a vital backbone of the future
Source : International Energy Agency, Elseviwer Research paper
II
30. 30
The Highest Profit Margin among Listed Wire and Cable Companies in the World
1.1%
6.9% 7.4%
10.0%
3.6%
5.2%
7.7%
%EBITDA 2018
• STARK focuses on the high margin and high
quality product, where there are lesser
number of competitors, unlike other
competitors that also produce all range of
products. In additional, after Mekong
acquisition, STARK will enter into submarine
cable, the higher product margin product.
Apply lean management by using
following key actions
• Using metal reel instead of wood
reel
• Solar roof to reduce power expense
• Collaborative with PTTGC to
minimize raw materials expense
5.9% 5.6%
4.5%
2016 2017 2018
%SGA to Revenues
Local Champion World Champion
Focus on High Margin Product Operational Excellent through Lean Management
III
• After Mekong acquisition, STARK will utilize
low cost production in Mekong product as
labor and electricity cost is lower than the
existing facility up to 50%. The lower
production cost in Mekong project allow
STARK to achieve higher margin and
increase existing efficiency.
Efficiency in Production Capability
Source : Prysmian Website, Nexan Website, and LS Cable Website, and BOL
31. 31
The Highest Revenue Growth among Listed Wire and Cable Companies in the World
%Revenue CAGR (16 - 18)
Local Champion World Champion
Number of Domestic Customers Number of International Customers
CAGR (15-18)
77.2%
CAGR (15-18)
47.1%
N/A
(1.7%)
3.2%
24.5%
11.3%
13.2%
5.6%
IV
Source : Prysmian Website, Nexan Website, and LS Cable Website, and BOL
Focus on High Growth Region
South East
Asia
90%
Focus on high growth region especially South
East Asia, the highest growth region in the
world
32. 32
Speedy Operating Cash Cycle
60.9
34.1
183.4
167.1
102.7
Average Cash Conversion Cycle (CCC) (16 - 18)
A/R 98.6 104.7 46.6 154.2 78.1 75.4 80.7
Inventory 101.4 89.6 72.8 128.1 66.1 76.6 67.0
A/P 16.6 27.2 16.7 250.2 83.3 93.1 122.2
58.9
25.5
Highest Cash Generation in Local Markets Comparable Cash Generation with Global Players
V
33. 33
Stable EBITDA Margin over Fluctuation of Raw Materials Price
VI
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
3000
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2014 2015 2016 2017 2018
Aluminum Copper
Cash Cost Profit %*
*Calculation base on (Gross Profit + Depreciation)/Core Revenue
Acquisition ended
of 2015
35. 35
STARK : “Super Incubator”
Products & Services Extension
Products
• Special cables (Fire resistant cable / Aero Space cable / Military
grade cable / Flexible cable for robotic / Electric Vehicle cable)
• Busbar copper
Services
• Infrastructure projects • EPC Contract
• Concession • Joint venture
Copper Polymer
Aluminum
Premium Raw Material Infrastructure Projects on Emerging Markets
• Thailand
• Vietnam
• South Asia
• Middle East
• Africa
• Eastern Europe
Strong Penetration Channels
• Accessory components (Low / Medium / High)
• Expand through traditional and modern trade
in various of potential countries
Thailand ASEAN International
Global Markets Distribution
Leadership Talent
• Learning environment
• Lean global management
• Academic supports
Professional Alliances
• Raw material
• Manufacturing collaborations
• Financial institutions
• Professional advisors
• Academic institutions
37. 37
Key Financial Figure
Revenue 6,797 7,911 10,514 7,245 7,675 24.4% 5.9%
EBITDA 707 774 1,049 759 774 21.8% 2.1%
%EBITDA 10.4% 9.8% 10.0% 10.5% 10.1%
Net Profit 247 278 387* 258 269* 25.3% 4.5%
%NPM 3.6% 3.5% 3.7% 3.6% 3.5%
Asset 7,849 10,001 12,403 n/a 13,065 25.7% n/a
Debt 3,240 3,555 3,800 n/a 4,260 8.3% n/a
Liability 6,994 8,945 10,831 n/a 10,197 24.4% n/a
Total Equity 855 1,056 1,572 n/a 2,868 35.6% n/a
%ROA 3.1% 2.8% 3.1% n/a 2.7% n/a n/a
%ROE 28.9% 26.3% 24.7% n/a 12.5% n/a n/a
D/E 3.79 3.37 2.42 n/a 1.49 n/a n/a
Remark : Adjust the listing expense and extra expenses related to backdoor listing including additional audit fee, FA fee and legal fee
• 2016 – 2018, STARK successfully turned around
Phelps Dodge by improving product mix to capture
high margin products, penetrate into other
distribution channel especially project base and B2C
channel.
• 9M18 VS 9M19, the first ninth month of 2019,
STARK revenue increased only 5.9% due to drop in
copper price approx. 15% YoY and the delay of
government project to Q4 2019
• 2016 – 2018, STARK successfully turned around
Phelps Dodge and EBITDA has significantly
increased in approx. same rate as revenue and
margin can be maintained during fluctuation of raw
materials at 10% on average.
• 9M18 VS 9M19, the first ninth month of 2019,
STARK EBITDA had slightly increase due to drop in
copper price
• 2016 – 2018, STARK had relatively high D/E ratio
due to the extra debt from LBO, however after
backdoor listing, STARK raised equity by issuing the
Rights Offering (RO) and completed by the end of
September 2019, then continue repaid debt in Q4
2019, and D/E ratio reduced to less 1.0x.
38. 38
Future Financial Prospect
Revenue 15,000 11,500 1,300 27,800
EBITDA 1,500 840 325 2,665
%EBITDA 10.0% 7.3% 25.0% 9.6%
Revenue 15,000 24,000 1,300 40,300
EBITDA 1,800 2,880 325 5,005
%EBITDA 12.0% 12.0% 25.0% 12.4%
2019 After Integration
27,800
40,300
2019 After Integration
2,665
5,005
After the integration, the revenue could increase to THB 40,300 mm due to
Utilize the remaining capacity of Mekong
Shift economic products to produce at Mekong, provide additional
room for PDITL to produce high margin product including high volt
cable
Utilize recently completed HV facility of Mekong to tapped HV
demand in Vietnam and overseas
Enter into super high margin product – Submarine Cable from
available facility of Mekong
After the integration, the EBITDA and margin could increase to THB 5,005
mm and 12.4% due to
Utilize the remaining capacity of Mekong
Utilize lower production cost facility (Mekong), Mekong’s Labor
and Electricity are 50% lower than existing facility (PDITL)
Consolidate purchase order of raw materials
Utilize recently completed HV facility of Mekong to tapped HV
demand in Vietnam and overseas
Enter into super high margin product – Submarine Cable from
available facility of Mekong
42. 42
Key Synergies of Mekong Project
1 CompetitiveAdvantages from “Cost Leadership”
2 Net Working Capital Enhancement
3 Promptly Utilizing Capacities
4 New Facilities of Specialized Cables (HV & Submarine Cables)
Raw Material Cost
>85.0%
Labor + Other Cost
<15.0%
Cost Breakdown of
Wire Cable
Labor Cost (USD per Day)
Electricity Cost (USD/kwh)
72.3
10.0
6.6 5.7 5.2
0.19
0.13 0.10 0.07
0.25
Newly build HV facility to
support high demand in
domestic and
international markets
Strategic location for
developing “Submarine
Cables”
B
A
B
A
70% - 80%
%Utilization rate
50% - 60%
30% - 40%
Unlock untapped opportunities
from ready capacity rooms
The machines are well
maintenance with industry
standards
No significant CAPEX to support
strong growth potentials
A/R Days 154.2 45.5
Inventory Days 128.1 64.1
A/P Days 250.2 51.3
Cash Conversion Days 32.1 58.3
Stronger negotiation
power to secure more
favorable terms to the
Group
Net working capital
enhancement from better
terms from suppliers
43. 43
PDITL : Project Mekong’s Area for Growth
PDITL has a proven record in domestic and international operation and is now ready to take another milestone to expand its production based to Vietnam. With the purposed
business strategy, PDITL can ignite an exponential growth into Mekong Cable and Metal to turnaround from inactive cable manufacturer into market leader manufacturer
Turnaround Strategy to Mekong Cable and Mekong Metal
Expand Medium to
High Voltage
Production Line
Cost Saving Programs
and Production
Utilization Improvement
Distribution Network
Expansion in Domestic
and Oversea
Inactive Cable
Manufacturer
Active Cable
Manufacturer
Top Tier ASEAN
Manufacturer
ASEAN
Market Leader
Turnaround Strategy to achieve a rapid growth
Mekong Cable already invested in medium to high voltage production line but does not have
product know how to operate and finish the production assembly and testing certificate
PDITL is a global cable manufacture with a vast knowledge of medium and high cable. Hence,
PDITL can leverage its existing human and technology to help Mekong Cable to fill out the
missing piece and run this production line within 2 quarters
Because the current utilization rate is below than 50.0%, Mekong Cable and Metal have
experienced a cost leakage, pressuring its gross profit margin and reducing its competitive
advantage overall in cost of production
PDITL will ignite a stipulated growth in Mekong Cable and Metal to utilize the vacant capacity
with the world standard lean management program to find the new-s curve to the Company
PDITL will use its success story in Thailand to expand a distribution network and increase B2C
channel in Vietnam. Moreover, with more favorable credit facility, PDITL can offer more
competitive credit term to customer
Mekong Cable is located at a strategic location to export into countries such as Philippine,
Indonesia and Australia with cheaper cost of transportation than Thai Cable Manufacturer
