Shrinkflex (Thailand) PCL.

Opportunity Day
28th February 2023 YE/2022
0
 Disclaimers
The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or
the solicitation of an offer or invitation to purchase or subscribe for share in Shrinkflex (Thailand) Public Company Limited SFT ”) in any
jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment
whatsoever.
In addition, this presentation contains projections and forward looking statements that reflect the Company’s current views with respect
to future events and financial performance. These views are based on a number of estimates and current assumptions which are subject
to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in
many cases are outside the control of the company and its directors. You are cautioned not to place undue reliance on these forward
looking statements, which are based on the current view of the management of the Company on future events. No assurance can be
given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does
not assume any responsibility to amend, modify or revise any forward looking statements, on the basis of any subsequent developments,
information or events, or otherwise. These statements can be recognized by the use of words such as “expects,” “plans,” “will,”
“estimates,” “projects,” or words of similar meaning. Such forward looking statements are not guarantees of future performance and
actual results may differ from those forecast and projected or in the forward looking statements as a result of various factors and
assumptions.

1
 SFT YE/2022 HIGHLIGHTS

Despite challenges, Successfully

Received Award for Trial Production
SFT still delivers 8.3% Implemented Starting to Install
Sustainable of Green
revenue growth and Machines as Planned the Solar Rooftop
Organization Model Packaging
7.3% NPM in New Factory
• In 2022, SFT still display • The Company has • SFT has implemented • During November • From the certification
operating revenue of successfully begun the solar rooftops at the 2022, SFT received which SFT have
Baht 859 million, operation of the new new factory of 600 “Sustainability model received during
increased by 8.3% YoY factory as planned kW, target to start organization in the September 1, 2022 on
mainly from the increase operation in April Thai capital market in “Green Shrink” Label
in order volumes and new • The new machine has 2023 to support Supporting Persons from The Association
projects despite impact added a capacity of electricity cost in the with Disabilities” from of Plastic Recyclers
on costs from exchange 23.8 million meters long term. the Securities and (APR), the Company is
rate fluctuations per year with a target Exchange Commission in the process of
of 50% utilization rate (SEC) beginning production
in 2023 and seeking for new
customers
domestically and
abroad
2
 Agenda

01 Company Overview

02 SFT Strategic Direction

03 Financial Performance

Industry Update and

04
2023 Outlook

3
Business Overview by Business Unit

Revenue Breakdown by Business Unit Revenue Breakdown by Industry

Other
Phama
5%
4.0%2.1% Household 1%
0.2% 4%
0.4%
Cosmetics
7%
859.3
Million THB
Beverage
2022
2022 Food
59%

24%

93.2%

Gravure Shrink Label Digital Shrink Label

93.2% 4.0%
Gravure Cylinder Flexible Packaging

2.1% 0.2%
Stretch Film

0.4%
4
 Agenda

01 Company Overview

02 SFT Strategic Direction

03 Financial Performance

Industry Update and

04
2023 Outlook

5
 2025
“Solution for Packaging and
Labeling”

2023 Become an advance

technology and high-quality
packaging and labeling
solution in SEA
“New Business for Growth” • Operation Go Digital

2022 Offer full-service for labeling

and packaging
• Widen Product Range
• Expand Flexible Packaging
“Building a Sustainable Foundation”
Flexible Packaging Target: 80MB

Enhance Sustainability and

Introduce Flexible Packaging
• Obtain various sustainable certification to
prepare for green-trend and multinational
customers
• Introducing Flexible Packaging 6
1 2
Customer Portfolio Business Line/Service
Expansion Expansion
✓ Capture More Customers and Diversify ✓ Introduce Flexible Packaging to
Industry Coverage upsell and to utilize existing
✓ Resume of exhibitions to display
machines
products to new customers

✓ Attract Multinational Customers through

Certification (GHP+HACCP) and Carbon

3
Footprint

✓ Expand to International Customers (SEA)

Technological & Digital
Enhancement
✓ Move Towards Digitalized Production

Strengthening Existing Capacity Efficiency and Capability Improvement

✓ Expanding production facilities and benefiting through ✓ Utilizing existing capacity
economies of scale ✓ Increasing staff capabilities through continuous training
✓ Strengthen add-on services – NPD (new product development)

7
 1. Customer Portfolio Expansion
SFT continues to ramp up capabilities and capacity to attract new customers and serve existing customer base

✓ Increase product variety ✓ Keeping strategic partners and attract new customers

Ramping Up Shrink Recycle Begin Site Visit Exhibitions

On September 1, 2022, SFT received a SFT will begin site visit in February 2023 to SFT plans to join 4 exhibitions throughout
certification from The Association of Plastic allow new and existing customers to have a 2023, once every quarter
Recyclers (APR) for 4 shrink label products, look at the new factory and the elevated
for production line

Capture new group of customers with Capture new group of customers Food Tech Expo 2023
sustainability factor requests (both • Increasing awareness 8-10 March 2023
domestic and international customers) • Increasing credibility Nongnooch Pattaya

Creating new options/ cross selling to

Thaifex Anuga Asia 2023
existing customers
23-27 May 2023
Impact Bangkok

Higher value product to SFT

Cosmoprof Asia 2023
14-16 September 2023
Queen Sirikit Bangkok
Support Long-Term Sustainable
Strategy
Cosmex 2023
7-9 November 2023
Bitec Bangkok
8
 2. Business Line Expansion: Flexile Packaging
SFT forecast to scale up flexible packaging in 2023 focusing in digital flexible and the introduction of Mono-materials

Flexible Packaging Revenue Flexible Packaging

Unit: Million Baht Enter the flexible packaging market with both conventional offerings and unique monomaterials
green packaging to capture sustainable customers

80.00 Creating Options to customers

Industry Trends
Cross Selling flexible packaging to existing shrink film
customers ✓ By 2030, all plastic
packaging in the EU
Products should be recyclable or
1. Conventional Flexible Packaging reusable
2. Recyclable Flexible Packaging ✓ Flexible packaging
made of mono-
Ready to launch the mono-material packaging with flexible
packaging as to serve the global trend on circular economy
materials has become
➢ MDOPE: Machine Direction Orientation Polyethylene Film a way to achieve this
➢ BOPE: Bi Axial Orientation Polyethylene Film goal
✓ Recyclable and 100%
mono-material
structure, which would
improve recyclability in
packaging with the
1.74
process that can be
continuously repeated
2022 2023 Target in a long-term manner

Flexible Packaging is forecasted to scale up

in Q2/2023 with a forecast to generate 80MB
by YE2023

9
 Capacity, Efficiency and Capability Improvement
SFT Successfully Constructed the New Factory increasing the Capacity of SFT to 43.9 Meters per Quarter while Solar
Implementation is expected to support the cost of electricity

Completion of New Factory Implementation of Solar Panels

An Elevated Factory Operation Long Term Sustainability

Total Capacity Total Capacity
Unit: Meters per Quarter

38,406,384
5,468,616
43,875,000
Solar Panel
600 Kilowatt
Timeline
Generate Electricity

April Support Electricity Cost

2022 New Factory 2023 Q1/2023 Q2/2023 Q3/2023 Q4/2023

10
 Agenda

01 Company Overview

02 SFT Strategic Direction

03 Financial Performance

Industry Update and

04
2023 Outlook

11
 Financial Highlights
SFT has displayed an 6.4% growth in revenue from 2021 to 2022

Total Revenue 2022 Key Performance

Unit: THB million, %
Operating Revenue Gross Profit

+6.4% YoY 185.7

MB
Other Income
859.3
863.3 MB GPM
811.5 0.5%Revenue from
3% other sales
2.2%
3%
21.6%
+12.8% YoY

-11.1% QoQ EBITDA Net Profit

Revenue from
Product
97%
95% Distribution 63.1
235.0 MB
185.2
1%
2%
2%
208.90.3%
2%
126.3
2%
MB NPM
97% 96% 98%
7.3%
Q4/21 Q3/22 Q4/22 2021 2022

Note: Percentage change may differ due to rounding

Remark: Excluding gain from exchange rate 12

 Q4/2022 Revenue and Cost Impact
Impact to SFT

1 Q3/2022 Thailand Flood – Southern Thailand

The monsoon weather that prevailed over the Andaman Sea, Thailand, and the Gulf of Q4 order has been cancel from
Thailand, including Typhoon NORU, which struck Thailand on 28 September 2022, flood resulted in decrease in sales
brought heavy to very heavy rainfall and strong winds. This has resulted in flooding in volume in Q4
over 25 Thai provinces during October 2022.

Exchange Rate – USD Appreciation Appreciation of USD during

2 Unit: Baht per Dollar
36.69
38.28
Q4/22 resulted in higher cost of
good sold and stocks on hand.
33.85 However, as the rate are
32.1 decreasing in Q1/23, raw material
cost will return to normal rate in
late Q1
Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23

Labor Cost + Electricity Cost – From Factory Transition

3
SFT has increased the number of labor to The new factory has experienced spikes in Transition cost results in higher-
support the new factory electricity bill from: than-normal cost for electricity
Number of employees 550 • Temporary transition usage and higher cost of labor when
480 • Higher Ft Rate utilization has not yet been
maximized

1H/22 Q4/22

4
Relocation Cost – One Time Expenses One time expense from moving
Several costs are one-time expenses from the transition of the new factory including the the machine from existing factory
cost to move 1 machine from existing factory into the new factory to new factory

13
 Operating Revenue Breakdown by Product
SFT Revenue resumed YoY corresponding to the increasing demand as well as the price adjustments from the rise in raw
material costs

Operating Revenue by Product YoY 2022 vs 2021

Unit: THB million, % Operating Revenue was Baht 859.3 million, increased by Baht 65.7 million
or 8.3% mainly due to:
• Gravure Printing: increased by Baht 62.1 million mainly due to increase in
+8.3% YoY orders from both existing customers and new customers, and price adjustments
• Digital Printing: increased by Baht 2.2 million mainly due to new customers
acquired trade exhibition and new product launches of customer
• Flexible Packaging: started revenue recognition totaling Baht 1.7 million
• Gravure Cylinder: decreased by 7.0% due to repeated use of cylinder and
859.3 Stretch larger order of printing per new cylinder purchased
• Stretch Film: increased by 44.1% due to orders from new customers
793.6 0.4% Film
2% 0.2% Gravure
0.3% 4% YoY Q4/2022 vs Q4/2021
2% Cylinder
4% Operating Revenue was Baht 208.4 million, increased by Baht 24.1 million
Flexible or 13.1% mainly due to:
Packaging • Gravure Printing: increased by Baht 20.6 million mainly due to growth of
existing customers in the Beverage and Pharmaceutical Industry, new
Digital
+13.1% YoY customers, and price adjustments
Printing • Digital Printing: increased by Baht 3.0 million mainly due to new customers
acquired trade exhibition and new product launches of customer
-9.5% QoQ • Flexible Packaging: started revenue recognition totaling Baht 0.4 million
• Gravure Cylinder: decreased by 5.3%, due to repeated use of cylinder and
Gravure larger order of printing per new cylinder purchased
93% • Stretch Film: grew by 37.5% mainly due to orders from new customers
93% Printing
230.3 QoQ Q4/2022 vs Q3/2022:
184.3 208.4
0.3% 0.4% Operating Revenue was Baht 208.4 million, decreased by Baht 21.9 million
0.3% 2% 0.5% or 9.5% mainly due to:
2% 5% 2% 0.2%
4% • Gravure Printing: decreased by Baht 18.9 million mainly due to lower
3% purchasing volumes from the slowdown of customers affected by the floods
93% 93% • Digital Printing: decreased by Baht 2.2 million mainly due to lower purchasing
95%
volume by customers in cosmetic and food industry
• Flexible Packaging: decreased by Baht 0.9 million due to lower in purchasing
volume
Q4/21 Q3/22 Q4/22 2021 2022 • Gravure Cylinder: decreased by 8.0%, due to repeated use of cylinder and
larger order of printing per new cylinder purchased
• Stretch Film: increased by 44.3% mainly due to orders from new customers
Note: Percentage change may differ due to rounding

14
 Customer Profile
Beverage still dominates SFT portfolio but pharmaceutical displays strong growth both YoY and QoQ

By Industry
Unit: THB million, %
%YoY %QoQ 12M
859.3 Total +13.0% -9.5% +8.3%
793.6 1% Pharmaceutical +190.2% +36.4% +30.3%
5% Other +15.9% -3.9% +6.0%
0.5%
2% 5% Household -9.0% -21.7% +21.0%
4% 7% Cosmetics +5.1% -12.6% -3.5%
8%

230.3 24% Food -11.2% -15.0% +3.6%

0.6% 208.4 25%
2%
5%
184.3 7% 1.0%
2%
0.4% 4%
2% 7%
5% 23%
8% 22%
27%

59% 59% Beverage +26.5% -6.9% +10.9%

62% 64%
57%

Q4/21 Q3/22 Q4/22 2021 2022

• The Company’s Portfolio is still dominated by the Beverage Industry, by which in Q4/2022, the Company Beverage Industry has displayed growth YoY of
26.5%, a slight decline QoQ due to the flood resulting in delays of orders, but a positive comparing 2021 and 2022 of +10.9%
• In terms of YoY (comparing Q4/22 with Q4/21, most category has experienced an increase in sales especially in pharmaceutical and beverage industry
• However, when comparing QoQ, most industry has experienced a decline mainly from the delay of orders however pharmaceutical displays a positive
trend
• As to when comparing 2021 and 2022, SFT has increased the share of customer from the pharmaceutical industry and the household industry while key
industries such as beverage and food still displays growth
15
 Efficiency
Despite the decrease in utilization rate QoQ, production volume has increased from 2021 to 2022 for digital printing and cylinder

Gravure Production Volume Capacity Digital Production Volume Capacity Capacity Cylinder

Unit: ‘000 meters, % Utilization Unit: ‘000 meters, % Utilization Unit: ‘000 meters, % Utilization

59.5% 77.4% 65.3% 74.3% 69.8% Utilization

Rate
40.9% 40.3% 47.6% 51.4% 43.6% 44.0% 48.7%Utilization
26.9% 31.1% 31.7% Rate
Total Utilization Total
153,626 Capacity Rate 7,200 7,200 Capacity
144,594
5,466 Total
Capacity

3,929

107,455
38,406 38,406 38,406 107,157 Production 1,800 1,800 1,800
Volume 1,367 1,367
982 3,166 3,509 Production
Production Volume
1,582 1,732
22,856 29,730 25,067 559
Volume
856 925 785
264 425
Q4/21 Q3/22 Q4/22 2021 2022 Q4/21 Q3/22 Q4/22 2021 2022 Q4/21 Q3/22 Q4/22 2021 2022

• The utilization of gravure printing in Q4/22
has decreased from the pervious quarter
mainly from the flood which caused a
delay in order
• The overall capacity in 2022 has increased
from implementation of new machines while
the yearly utilization rate slightly decreased
mainly due to lower volume
• Digital printing has also been impacted QoQ • Cylinder utilization rate increased from
from the flood which reduce the number of 2021 to 2022 from new SKUs and projects
orders which requires new cylinder
• 2021 to 2022 displays a higher production
volume of digital printing
• The remaining capacity will be utilized to
support the production of flexible
packaging in this upcoming year

16
 Cost of Goods Sold
SFT cost of good sold increase YoY mainly from increase in cost of raw materials due to exchange rates

Cost of Goods Sold ~30% China Polyester PET Prices

Unit: CNY per metric ton
Unit: THB million, %
+25.1% YoY
-2.0% QoQ 8,890 9,000
8,620 8,620
8,400 8,530
8,020 7,990 8,110 8,130
179.2 175.7 7,760 7,800
7,560 7,490
7,237 7,140 7,175
140.4

Cost of Goods
Sold
Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan Feb
Oct21 Nov21 Dec21 Jan22 Feb22 Mar22 Apr22 May22 Jun22 Jul22 Aug22 Sep22 Oct22 Nov21 Dec21 Jan23 Feb 23

~70% Polyvinyl Chloride (PVC) Prices

Unit: CNY per metric ton

Q4/21 Q3/22 Q4/22

+27.0% YoY 13,955
-6.1% QoQ

127.2 119.5 9,019

94.1 Cost of Raw 8,282
Materials 5,992 6,155
Produced in the
Quarter
8-Oct-21 8-Nov-21 8-Dec-21 8-Jan-22 8-Feb-22 8-Mar-22 8-Apr-22 8-May-22 8-Jun-22 8-Jul-22 8-Aug-22 8-Sep-22 8-Oct-22 8-Nov-22 8-Dec-22 8-Jan-23
Oct21 Nov21 Dec21 Jan22 Feb22 Mar22 Apr22 May22 Jun22 Jul22 Aug22 Sep22 Oct22 Nov21 Dec21 Jan23 Feb 23

Q4/21 Q3/22 Q4/22

Source: SunSirs commodity data group, Investing.com 17

 Gross Profit and Gross Profit Margin
SFT has been affected by higher costs of plastic, electricity, and costs related to business expansion however the company has
continued to focus on cost management

Gross Profit and Gross Profit Margin

YoY 2022 vs 2021:
Unit: THB million, % Gross Profit was Baht 185.7 million, decreased by Baht 39.8 million
or 17.6% due to:
• Increase in plastics cost from Thai Baht depreciation
• Increase in FT (Float time) electricity costs, temporary higher cost per
23.8% 28.4% electricity unit at the new factory and cost related to business expansion
22.2% 21.6% Gross Profit Margin • However, the Company manage by purchase more raw materials
15.7%
domestically, raw material stocks in advanced and price adjustments
• Gross Profit Margin was 21.6%, decreased from 28.4% in 2021
due to:
• Increase in plastics cost, electricity costs, and cost related to business
-17.6% YoY
expansion

225.5 YoY Q4/2022 vs Q4/2021:

Gross Profit was Baht 32.6 million, decreased by Baht 11.4 million
or 25.9% due to:
185.7 • Increase in plastics cost from Thai Baht depreciation
-25.9% YoY • Increase in FT (Float time) electricity costs, temporary higher cost per
-36.2% QoQ electricity unit at the new factory and cost related to business expansion
• However, the Company manage by purchase more raw materials
domestically, raw material stocks in advanced and price adjustments
Gross Profit Margin was 15.7%, decreased from 23.8% in Q4/2021
Gross Profit due to:
• Increase in plastics cost, electricity costs, and cost related to business
expansion

51.1 QoQ Q4/2022 vs Q3/2022:

44.0
32.6 Gross Profit was Baht 32.6 million, decreased by Baht 18.5 million
or 36.2% due to:
• Lower purchasing volume by customers affected by the floods
Gross Profit Margin was 15.7%, decreased from 22.2% in Q3/2022
Q4/21 Q3/22 Q4/22 2021 2022 due to:
• Lower in production volume
Note: Percentage change may differ due to rounding

18
 Selling and Administrative Expense
SG&A increased mainly due to employee compensation to support business expansion and costs related to the exhibition
including one-time expense in the relocation of machines to the new factory

SG&A
YoY 2022 vs 2021:
Unit: THB million, %
SG&A was Baht 105.9 million, increased by Baht 8.0 million or 8.2%
due to:
13.6% SG&A to • Increased in employee compensation to support business expansion
11.0% 12.6% 12.1% 12.3%
• Increased the costs associated with the exhibition
Total • The recognition of cost related to product certification and one-time
Revenue expense in the relocation of machines to the new factory
• SG&A to Total Revenue was 12.3%, increased slightly from
12.1% in 2021 due to:
• Increased in employee compensation to support business expansion
• The relocation of machines to the new factory
+8.2% YoY

YoY Q4/2022 vs Q4/2021:

SG&A was Baht 26.3 million, increased by Baht 1.1 million or 4.4%
105.9 due to:
97.9 • Increased in employee compensation to support business expansion
Selling • Increased the costs associated with the exhibition
SG&A to Total Revenue was 12.6%, improved from 13.6% in
+4.4% YoY
36% Expense
33% Q4/2021 due to:
• The reduction of employee’s bonus in accordance with the Company’s
+1.9% QoQ One-time item policy
3% 4%
Adminis- QoQ Q4/2022 vs Q3/2022:
trative
Expense SG&A was Baht 26.3 million, increased by Baht 0.5 million or 1.9%
25.2 25.8 26.3 65% 60% due to:
31% 38% 38% • Increased the costs associated with the exhibition
0.7% 0.1% 4% • One-time expense in the relocation of machines to the new factory
69% 62% 58% SG&A to Total Revenue was 12.6%, increased from 11.0% in
Q3/2022 due to:
Q4/21 Q3/22 Q4/22 2021 2022 • The relocation of machines to the new factory

Note: Percentage change may differ due to rounding

19
 EBITDA and EBITDA Margin
EBITDA decreased QoQ and YoY from higher raw material costs and costs related to new factory due to the new factory is
currently operated in testing

EBITDA and EBITDA Margin

YoY 2022 vs 2021:
Unit: THB million, % EBITDA was Baht 126.3 million, decreased by Baht 58.0 million or
31.5% and EBITDA Margin was 14.6%, decreased from 22.7% in
2021 due to the lower Earning Before Interest and Tax (EBIT) mainly
22.7% from increase in plastics costs, electricity costs and selling and
15.4% 17.2% 14.6%
6.1% administrative expense from costs related to exhibition and the
EBITDA Margin
relocation of machines to the new factory as well as costs to
support business expansion.

-31.5% YoY
YoY Q4/2022 vs Q4/2021:
EBITDA was Baht 12.8 million, decreased by Baht 15.8 million or
184.3 55.2% and EBITDA Margin was 6.1%, decreased from 15.4% in
Q4/2021 due to the lower Earning Before Interest and Tax (EBIT)
mainly from increase in plastics costs, electricity costs and selling
-55.2% YoY and administrative expense from costs related to exhibition and
the relocation of machines to the new factory as well as costs to
-68.2% QoQ 126.3
support business expansion.

QoQ Q4/2022 vs Q3/2022:

EBITDA EBITDA was Baht 12.8 million, decreased by Baht 27.5 million or
40.3
28.6 68.2% and EBITDA Margin was 6.1%, decreased from 17.2% in
Q3/2022 due to the lower Earning Before Interest and Tax (EBIT)
12.8
mainly from increase in plastics costs, electricity costs and selling
and administrative expense from costs related to exhibition and
the relocation of machines to the new factory as well as costs to
Q4/21 Q3/22 Q4/22 2021 2022
support business expansion.

Note: Percentage change may differ due to rounding

20
 Net Profit and Net Profit Margin
Net Profit declined YoY due to rising costs of plastic however the Company will continue to manage cost by purchase more raw
materials domestically and adjustment in selling price

Net Profit and Net profit Margin

YoY 2022 vs 2021:
Unit: THB million, % Net profit Baht 63.1 million, decreased by Baht 48.5 million or
43.5% and Net Profit Margin was 7.3%, decreased from 13.7% in
2021 mainly due:
13.7% • Increase in plastics cost from Thai Baht depreciation
9.8% Net Profit • Increase in cost related to exhibition and business expansion
7.0% 7.3% Margin
• Recognition of loss from exchange rate Mark to Market
0.04% • However, the Company manage by purchase more raw materials
domestically, raw material stocks in advanced and price adjustments

-43.5% YoY
YoY Q4/2022 vs Q4/2021:
Net profit Baht 0.1 million, decreased by Baht 12.9 million or
111.6 99.2% and Net Profit Margin was 0.004%, decreased from 7.0% in
Q4/2021 mainly due:
-99.2% YoY • Increase in plastics cost from Thai Baht depreciation
• Increase in cost related to exhibition and business expansion
Recognition of loss from exchange rate Mark to Market
-99.6% QoQ • However, the Company manage by purchase more raw materials
domestically, raw material stocks in advanced and price adjustments
63.1

QoQ Q4/2022 vs Q3/2022:

23.1 Net Profit Net profit was Baht 0.1 million, decreased by Baht 23.0 million or
99.6% and Net Profit Margin was 0.04%, decreased from 9.8% in
13.0 Q3/2022 mainly due to:
0.1 • Increase in plastics cost from Thai Baht depreciation
• Increase in cost related to business expansion
• Recognition of loss from exchange rate Mark to Market
Q4/21 Q3/22 Q4/22 2021 2022

Note: Percentage change may differ due to rounding

21
 Statement of Financial Position

Asset Liabilities and Owner’s Equity

Unit: THB million, % Unit: THB million, %
+10.9% +10.9%
1,046.4 1,046.4
3.4
13.0
0% Short-Term Liabilities
943.8 33.5 3% 943.8 57.3
56.8 5% 1% 1% Others
8.0 59.3
Others 2% 17.4 31.0 3% 1% 9.1 8.3 5% Loans from Financial Institution
73.4 1% 72.8
Right of Use 8% 156.9 6% Lease Liabilities
Cash and cash 99.1 241.1 23% 8% 107.5
11% 11% 15%
equivalents Account Payable

Inventory 23% 217.0

164.0 16%

Trade and other 18% 172.2

receivables 738.0 756.4 72% Owner's Equity
78%
70.6
Other Financial 7%
Current Asset 520.0 50%
Property, Plant and 31% 294.1
Equipment

311-Jan-21
December 2021 301-Jan-22
December 2022 31 1-Jan-21
December 2021 30 1-Jan-22
December 2022

Asset YoY Liabilities and Owner’s Equity

YoY
Total assets was Baht 1,046.4 million, increased by Baht 102.6
million or 10.9% mainly due to:
• Cash and cash equivalents: decreased mainly due to the investment
for new machineries and new factory to support business expansion
• Inventory: increased due to an increased of plastic film inventory to
support customers’ orders
• Other Financial Current Asset: decreased due to the investment for
new machineries and new factory to support business expansion
• PPE: increased due to the investment for new machineries and
activities during the construction of the new factory
Note: Percentage change may differ due to rounding
Liabilities was Baht 290.0 million, increased by Baht 84.2 million or
40.9% mainly due to:
• Account Payable: increased due to higher purchase of raw materials to
support order volume growth and investment in new factory to support
business expansion
• Lease Liabilities: decreased due to rental repayment as scheduled
• Loans from Financial Institution: increased due to higher loan with
financial institutions to support business expansion
Owner’s Equity was Baht 756.4 million, increased by Baht 18.4 million
mainly due to the increase in operating profit
22
 Cash flow Statement

12 Months Cash Flow Statement

Unit: THB million

+101.0 -151.2

99.1

-56 -18.0
31.0

Cash and Cash Cash flow from Cash flow from Cash flow from Cash and Cash
Equivalents at Operating Investing Financing Equivalents at
31 December 2021 Activities Activities Activities 30 Sep 2022

• Cash Flow from Operating Activities • Cash Flow from Investing Activities • Cash Flow from Financing Activities
increased from beginning balanced mainly decreased from beginning balanced mainly decreased from beginning balance due to:
from the: due to:

• Realization of operating profit • Investment in fixed assets • Dividend payment

• Repayment of lease liabilities and
short-term loans

23
 Key Financial Ratios

ROE (%) ROA (%)

16.01%
12.51%
11.24%
8.73%
8.44% 6.34%

Q4/21 Q3/22 Q4/22 Q4/21 Q3/22 Q4/22

D/E Ratio (Times) Current Ratio (Times)

0.38
0.30 3.99
0.28
2.78
2.38

Q4/21 Q3/22 Q4/22 Q4/21 Q3/22 Q4/22

24
 Dividend Payment

SFT Announce to pay dividend of 0.07 Baht per Share

Dividend Payment
Unit: THB million

111.6

SFT announced on 22nd February 2023 for dividend payment

67
from profits of the operation results for the fiscal year ended
63.1 Net Income
31 December 2022 of Baht 0.07 per share, totaling not
exceed 30,800,000 Baht

44.66
30.80 Dividend
Payment

2021 2022
Payout (% of NI)
40% 50%

22 Feb 23 8 Mar 23 9 Mar 23 19 May 23

Announce Dividend Announce Record Date of
Payment Rate XD Date Dividend Payment

2023 Timeline
%

25
 Agenda

01 Company Overview

02 SFT Strategic Direction

03 Financial Performance

Industry Update and

04
2023 Outlook

26
 Thailand Economic Outlook

GDP by Sector Business and Consumer Confidence Index

Unit: Billion Baht
Forecasted

CAGR
2011-2022
62.1 61.2 Business
18,913 Confidence
59.0 57.8 58.5 58.4 56.6
17,367 56.8 56.3 56.3 56.3 56.3 56.3 Index
16,889 Agriculture 54.5
16,373 16,167
15,489 15,661 8.8% +1.4%
8.1%
14,590 8.2% 8.7%
8.7% Consumer
13,743 8.4%
12,91513,230 8.5% Industry 48.4 Confidence
12,357 8.9% 32.5%
10.1%
31.1% +3.2% Index
11,307 11.3% 32.2%
30.6% 32.3% 43.8 42.6 43.7
11.5% 32.5% 42.1 43.0
11.6% 32.8% 39.2 38.0
38.1
34.2%
33.4%
36.5 37.2 36.4
34.2%
34.6%
35.3%
29.0
Service
22.3
59.1% 59.6%
60.8%
60.7% 59.0%
58.7% +4.9%
57.7% 58.7%
55.7%
53.9% 54.4%
53.1%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023F 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

• Overall, Thailand GDP is growing at +3.6% CAGR, driven by service
sectors at +4.8% CAGR for last 10 years, indicating that packaging
industry is favoured by uptrend of service sectors
• While GDP in 2020 display slump period according to Covid-19
situation
• Business Confidence Index is expected to remain steady over past few
years until 2024
• While Consumer Confidence shows an uptrend since 2020 which
consumers are spending money, indicating higher consumption and
expect to reach at 43.7 by the end of year 2024

Source(s): NESDC 27
 Flexible Packaging

Thailand Packaging Industry

Breakdown By Packaging Material Flexible Packaging 2022 Breakdown
Unit: Million Units CAGR Beauty and Personal Care Dog and Cat Food Packaging
Forecasted 2017-2026
Packaging 3%
58,147 Paper-based 3%
56,611 Home Care Packaging
55,134 4% +3.8%
53,630 4%
52,094 4%
Metal 5%
49,825 48,619 50,436 4% 10% +1.3%
47,591 48,338 4%
4% 10% 10%
Liquid
Beverages Packaging
4% 4% 10% By Package
4% 4% 10% 11% Carton 6%
10% 10% 10% 11% 11% Usage in 2022
11% 11% 11% +1.7%
11%
12% 11% 11% 16% Glass 13,985
12% 12% 16% Food
17% 16% +0.4% Million units
17% Packaging
18% 17% 17%
19% 18% 83%
Flexible
27% 27% Packaging
27% 27%
27% 27% +2.9%
26% 26% 27%
26% Blister and Strip Packs
Flexible Paper 1% Aluminium Foil
Rigid plastic Stand-Up Pouches 2% 0%
30% 31% 31% 31% 31% +3.1%
29% 30% 30% 30% 30% 6%
Flexible Aluminium/Plastic
6%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Flexible Paper/Plastic
By Package
7% Type in 2022
• Overall, Packaging industry show uptrend at 2.3% CAGR from 2017-2026, led
Flexible
by material share of rigid plastic around 31% followed by flexible packaging 13,985
Aluminium/Paper
27% Million units
7%
Flexible Plastic
• Flexible packaging is mainly used for food packaging (83%) and made of 71%
flexible plastic accounts for 71%

28
SFT 2023 OUTLOOK “New Business for Growth”
& Business Guidance
SFT targets 1,000MB Revenue in 2023
Growing Shrink Label
• Recovery of orders and improvement in margin (as exchange impact will be reduced and recover at the end of Q1/2023)
• Presenting new Options of 100% recyclable Green Shrink Film Certified by APR to support both domestic, exports
and international customers
• Seeking for new customers and maintaining existing ones
• Improving utilization rates of 6 machines

Full Operation of Flexible Packaging

• Provide conventional and recyclable flexible packaging of mono-materials (untapped market in Thailand) with
focus on largest and fastest growing industries: household & food sector
• Target 50% utilization of new machine to produce flexible packaging

Recovery of Electricity Cost

• Implementation of Solar Panel in new factory to support energy cost in long term target to operate in April 2023
with Total capacity of 600 Kilowatt
• The electricity meter in the new factory will be implemented in Feb 2023, which will bring the Ft rate back down to
usual

Continuous ESG
• SFT continues to move forward towards sustainability both operationally and internally

29
 Thank You
Please kindly provide feedback
for further improvements

IR Contact: Alissaya Tsoi

Tel. 038-540000, 038-538832 Fax. 038-538833, 038842032
Website: www.shrinkflexthailand.com 30
Appendix

31
At a Glance
Total Labeling High performing NPD &
Solution Professional Employees

Gravure & Digital Safe & secure Shipping

Printing System Service with availability of
Stretch Film product

Shrink Label from Product Expansion into

PVC & PET Flexible Packaging

1 1
st Highly
16 Years
st
The Diverse
shrink label company commercialized digital of history in shrink label industries including
listed on MAI printing in SEA experiences and expertise beverage, food, cosmetics,
with continuous in-house household and
R&D innovation pharmaceutical

32
 Company Overview: Key Milestones

Completion of
New Factory
Import and
distribute stretch Obtained “Green
Started to use 9 films Shrink” Label from
colors rotogravure The Association of
Printing System Registered as a Plastic Recyclers
Expand its services Public company (APR)
by designing and
Initial production Received the manufacturing Increased the paid Introduced Flexible
Invested in
capacity of 2,000 Green Industry molds (Printing capital of 60 Packaging
additional digital
rolls per month Cylinder) Million THB

2022
Certificate Level 2 printers.

2008 2013 2016 2018 2020

2007 2011 2014 2017 2019 2021

Established with Receive license Introduced Digital Received the Invested in 10 Implement ESG
registered capital ISO9001:2008 Printing System Digital Printing color gravure Policy
of 20 Million THB Innovation Award printers and Ink
Purchased 10- from HP Inc maker Invested New
Invest in 9-color color Gravure Gravure Printing
Investment in Gravure Printing Printers Certified with ISO Signed a power Machine
Gravure Printing Machine 9001: 2015 generating system
Participated in a contract Received HP
program to reduce Awards
energy costs
Obtained GHP/
HACCP Certificate

33
Company Overview: SFT Strengths

Highly Experienced in Shrink Label with High Recurring Projects from new and
over 14 years of operation existing customer base

Relatively Low Competition due to being Continuous Business Line Expansion to

the first commercialized Digital Shrink Label serve dynamic demand of customers
producer in SEA

High Barriers to Entry (require expertise, New Product Development Team to facilitate
high financial investment and team to ensure clients and to attract large customers
quality is met)

Strong Customer Base (large, well known Relatively Invulnerable from Economic
customers with strong performance) Changes (not affected by COVID-19
pandemic)

34
 Industry Outlook – Shrink Label

Shrink Label Market Growth by Geography (2020-25) Annual Growth Rates of Shrink Label Market in Thailand

12.2%
10.7%

9.0% 8.6% 8.9% 9.2% 8.9%

8.3% 8.6%
7.8%

4.9%

High Growth Medium Growth Low Growth 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F

• According to Mordor Intelligence Research, Asian countries show the highest growth compared to other regions of the world and are forecasted to
gain the largest market share, with 45% of the total, followed by Europe with 25% and North America with 18%, in 2022. Thailand’s market is
forecasted to grow continuously within a range of 7.8-12.2% annually during 2021-2026 due to the following driving factors:

Rise of E-commerce
1 Rise in the urbanized 2 Increasing 3 4
Increasing emphasis which creates rising
population and rise application of shrink
on the use of more trends for light weight
in demand for sleeves in various
sustainable materials packaging among
packaged food industries
logistics companies

Source: Kasikorn Research Center, ResearchMOZ, Mordor Intelligence 35

 Shrink Label Cannot be Replaced

360 Label
Can print any patterns, text or pictures onto the whole sheet unlike other types which may
have sticking limitations

Contours to Special Shapes

Can shrink to any material, whether it is metal, glass, plastic, or special shaped bottles

Temper - Evident (Capseal Safety)

Unique Prevent unpacking and preserve products before reaching consumers

Characteristics Increase Recyclability

Helps reduce global warming as film can be removed before recycling bottles
of Shrink Label
Moisture Resistant
Does not tear and change shape when contact with water

Reduce Bottle Stock

Minimizes the number of bottle storage and also saves space

Abrasion Resistant
With color printing technology on the inside of the label, helps prevent scratches and
maintains pictures and text quality

36
 Regulatory Trends

Thailand's roadmap on plastic waste management 2018 - 2030

Objective of the roadmap is to reduce and stop the use of plastic and replace it with environmentally friendly materials

Trends Effects Effect to SFT

Environmentally Customers seek for Customers change Customers change

Less plastic use More Recycling more environmentally packaging to less packaging to other
friendly
Products friendly labels plastic composition materials

SFT Response

1 rPET Recycled PET 2 PLA Bioplastic - Made from renewable resources

✓ Low Carbon Footprint (saving raw ✓ Derived from renewable resources like
materials by requiring less energy) corn starch or sugar cane

✓ Recyclable (reducing waste) ✓ Biodegradable

✓ Strong Environmental Credentials ✓ Price remains similar to normal plastic -

Cost efficient to produce

37
 Thailand’s Flexible Packaging Market has been growing at a rate of
3.7% CAGR between 2020 – 2021 driven by consumer behavior.

Thailand’s Flexible Packaging Market Volume Thailand's Flexible Packaging Key Drivers
Unit: Million Units
(2020-21) (2021-25F)
Thai consumers’ hectic lifestyle and the need for “on-
15,201 Others* (+2.5%) (+3.7%) the-go” items drive the need for convenient and small
Flexible Paper (+2.1%) (+2.0%)
13,540 13,948 1% 2% packages
13,051 1% 2% 6% Stand-up Pouch (+4.0%) (+2.6%)
1% 2% 1% 2% 6% 7% Flexible Paper/
6% 6% Plastic (+5.4%) (+2.6%)
7% 7% 13% Flexible Aluminum/ Demand driven by the food and beverage industry,
7% (+3.3%)
13% 13% Paper/ Plastic (+4.4%) retailers, and the hospitality sector
13%

Lingering effects of COVID-19 caused an increase in

ecommerce and food deliveries which requires
71% 71% Flexible Plastic (+3.5%) (+2.9%) packaging
71% 71%

Thailand's Flexible Packaging Trends

Increasing focus on sustainability, the industry is

2020 2021 2022F 2025F attempting to move away from plastics into a more bio-
flexible product.
Home Care
Flexible 6%
Beauty and
Personal Care
More brand owners are shifting to use flexible
packaging due to operational benefits, better ability to
Packaging 2%
Food meet consumer needs, and reduced cost

Market Share 83% 6%

Beverages
Dog and
2021 3%
Cat Food Increasing demand for smart packaging for various
sectors: retail, storage, etc.

Source: Euromonitor
*Others include Aluminum Foil, Blister Packs, and Strip Packs 38
 Shrink Label is forecasted to increase 5.8% in 2023 with strong
support from Food & Beverage, Household, and Cosmetic Industry

Thailand’s Shrink Label Market Food and Beverage

Unit: THB Million Unit: THB Million

359,178 Rising demand for

301,418
254,972 32% Food convenient products
186,557 217,334
12,184 30% according to change
26% 28%
25%
11,189 72% 70% 68% Beverage in consumer
75% 74%
behavior
10,246
9,688 2021 2022F 2023F 2024F 2025F

8,471 Household Cleaning Products

Unit: THB Million

People are paying

29,815 30,947 32,456 33,589 34,721
more attention on
hygiene due to the
pandemic of Covid-
19
2021 2022F 2023F 2024F 2025F

Cosmetics Industry
Unit: THB Million

Grow consistently
2021 2022F 2023F 2024F 2025F 147,390 157,616 167,512 with beauty trend
125,610 136,927
and recovery of
Thailand Shrink Label Market is expected to increase by 5.8% consumer spending
from 2022 to 2023F and out-of-home
And is expected to grow at activities
2021 2022F 2023F 2024F 2025F

Source: Euromonitor, Statista

39