Thongchai OranrigsupakVice President ,Thai Metal Packaging AssociationOctober 31 – November 1, 2017

Thailand metal packaging marketis it bull or bear?

Founded on March 13, 1972

Founders Mr. Worawit Suthirachai

Mr. Kukiat Wongves

Mr. Montri Chayavivatkul

Former name Tinplate Canmaker Association

สมาคมผผลตภาชนะแผนเหลกวลาส

Current name Thai Metal Packaging Association

สมาคมบรรจภณฑโลหะไทย

Membership 26 companies

History of TMPA

THAI METAL PACKAGING ASSOCIATION

TMPA MEMBERS www.tmpa.or.th

SAHAMITR

Chairman: 1972 - current

Year Name Company

1972 Mr. Soonthorn Puranithee

นาย สนทร ปรานธ

Soonthorn Industries Co. Ltd.

บรษท สนทรเมทลอนดสทรส จ ากด

Mr. Kukiat Wongves

นาย กเกยรต วองเวศนSahadharawat Co. Ltd.

บรษท สหธาราวฒน จ ากด

Mr. Vira Dejthamrong

นาย วระ เดชธ ารงSwan Industries (Thailand) Co. Ltd.

บรษท สวอน อนดสทรส (ประเทศไทย) จ ากด

2002 - 2006 Mr. Sathit Chayavivatkul

นาย สาธต ชยาววฒนกลStandard Can Co. Ltd.

บรษท แสตนดารดแคน จ ากด

2006 - 2008 Mr. Vichien Teeyaprechaya

นาย วเชยร ตยปรชญา

Universal Can Co. Ltd.

บรษท ยนเวอรแซลแคน จ ากด

2008 - 2011 Mr. Viboon Trakulpoonsub

นาย วบลย ตระกลพนทรพยPoonsub Can Co. Ltd.

บรษท พนทรพยแคน จ ากด

2011 - 2017 Mr. Woratin Phisarnphong

นาย วรทน พศาลพงศSahadharawat Co. Ltd.

บรษท สหธาราวฒน จ ากด

VISION

To promote and support Thai metal packaging industry to be excellence in quality among the world class standard and promote metal packaging in terms of safety to consumers and environmental friendly.

MISSION

• To act and coordinate with members, governmental authorities, other associations and related supply chain suppliers

• To support members with their own manufacturing process to be green factory with environmental friendly as well asresearches in order to develop the product standard to be accepted in the world market

• To coordinate the negotiation on the tinplate prices with the domestic tinplate suppliers and report the tinplate situation as well as other key raw materials

• To provide technical knowledge to members and activities to strengthen the member relationship

• To assist members to solve the obstacles in order to enable the metal packaging industrial growth with sustainability

TMPA TRIP TO METPACK & INTERPACK GERMANY - MAY 2017

CANS IN THAILAND

TYPE OF CANS APPLICATION

FOOD CAN 2 PCS. DRD CANS FOR TUNA, SEAFOOD, PET FOOD

3 PCS. CANS FOR FRUITS & VEGETABLES, COCONUT MILK, COFFEE, JUICE

GENERAL AEROSOL CANS, MILK, CROWNS, SNACKS, COOKIES OR FANCY CANS

PAILS , DRUMS, SQUARE TINSOIL, PAINTS, VEGETABLE OIL

CANS AND ENDS

2014 2015 20162017

forecast 2017 (band)

Real GDP 0.9 2.9 3.2 3.6 3.3-3.9

Trade Balance (US$ Bil.) 17.2 26.8 36.5 29.4 29.1-29.7

– Export of Goods (%Growth) -0.4 -5.6 0.1 4.7 4.4-5.0

– Import of Goods (%Growth) -7.9 -10.6 -5.1 9.7 9.4-10.0

Current Account (US$ Bil.) 15.2 32.1 39.0 42.3 42.0-42.6

Current Account (% GDP) 3.7 8.0 11.7 9.5 9.2-9.8

Headline Inflation 1.9 -0.9 0.2 0.8 0.5-1.1

Core Inflation 1.6 1.0 0.7 0.6 0.-0.9

Jan-Dec2014

Jan-Dec2015

Jan-Dec2016

Tuna 82,122 72,874 76,040

Seafood 12,589 13,062 10,809

Pineapples 16,052 18,676 20,373

Sweetcorn 6,627 6,150 6,910

Fruit & Vegetables 6,615 6,287 6,602

Total 124,005 117,048 120,733

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

in M

illio

n B

aht

Thailand Canned Food Products 2014-2016 in Baht

Source: Thai Food Processors’ Association

Jan-Dec2014

Jan-Dec2015

Jan-Dec2016

Tuna 2,555 2,163 2,170

Seafood 392 387 308

Pineapples 499 556 579

Sweetcorn 206 183 197

Fruit & Vegetables 206 187 188

Grand total 3,857 3,475 3,444

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

in M

illio

n U

S D

olla

rs

Thailand Canned Food Products 2014-2016 in US Dollars

Source: Thai Food Processors’ Association

Source: Thailand Food Processors’ Association

Tuna63%

Seafood9%

Pineapple17%

Sweetcorn6%

Fruit & Vegetables

5%

Canned Food Category 2016

Tuna

Seafood

Pineapple

Sweetcorn

Fruit & Vegetables

SEAFOOD 45%

FRUITS & VEGETABLE

S 25%

OTHERS 30%

MARKET SEGMENTATION - THAILAND

70% of steel cans in Thailand are food cans. 45% of food cans are seafood cans.

Source: Iron & Steel Institute of Thailand

2011 2012 2013 2014 2015 2016

Tinplate 374,133 361,028 353,895 375,149 339,611 385,079

Tinfree 239,565 235,650 225,616 236,363 242,490 274,181

Total 613,699 596,678 579,511 611,512 582,101 659,260

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Me

tric

To

n

TINPLATE & TINFREE DEMAND - THAILAND 2011 - 2016

Jan-Dec 2014 Production Import Export Consumption

Tin plate 224,794 152,954 2,599 375,149

Tin free 201,964 34,487 88 236,363

Total 426,758 187,441 2,687 611,512

Jan-Dec 2015 Production Import Export Consumption

Tin plate 171,426 170,216 2,031 339,611

Tin free 182,945 59,596 51 242,490

Total 354,371 229,812 2,082 582,101

Jan-Dec 2016 Production Import Export Consumption

Tin plate 149,596 237,235 1,752 385,079

Tin free 171,921 102,280 20 274,181

Total 321,517 339,515 1,772 659,260

Jan-Aug 2017 Production Import Export Consumption

Tin plate 90,894 187,592 2,373 276,113

Tin free 94,743 59,563 8 154,298

Total 185,637 247,155 2,381 430,411

Thailand Consumption of tinplate and tinfree (Ton)(Including production, import and export data)

Since 2016, steel sheet import quantity has been more than steel sheet production quantity.

The Outlook of Thailand Metal Packaging

Market Size and Historic growth

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Size of Thai Metal Packaging (million Baht)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20167.3% 3.0% 9.5% -6.5% 8.6% 11.5% 2.5% -4.7% 8.7% 1.0% 1.2%

Growth Rate

There are about 45 metal packaging companies in Thailand classified by revenue as follows,

• Large companies (more than 2 billion Baht) including Swan, Lohakij, Crown Group, TBC, Bangkok Can, NCI, Poonsub Group, APC, Soonthorn Group, Standard Can and Royal Can

• Medium Companies (500-2,000 million Baht) including Saha Group, Oriental Can, Tritact, Thanaserm.

• Small Companies (50-500 million Baht) including Benjamit, Omax, PP Can, LPK, etc

• Micro Companies (less than 50 million baht) 15 Companies

Thai Metal Packaging Companies.

Source: TMPA , Business Data Warehouse, Department of Business Development

Market share by revenue.

Source: Business Data Warehouse, Department of Business Development

88%

7% 5%

1%

Large Companies

Medium Companies

Small Companies

Micro Companies

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Small Companies

Medium Companies

OC

TR

TS

SD (Group)

RC

NCI

STD

SMI (Group)

APC

PSC (Group)

BC

TB

CWN (Group)

SW

LC

Total Revenue of Thai metal packaging companies (Million Baht)

Source: Business Data Warehouse, Department of Business Development - Only main revenue.Include metal, aluminum can , exclude aluminum tube.

• Large and small companies still focus on metal packaging.

• Medium companies diversify to plastic packaging.

• The market share of large companies expand to 88% in 2016 from 85% in 2013

• The market share of Top five companies expand to 55% in 2016 from 51% in 2013

Thai Metal Packaging Companies.

Key Advantage of Metal Packaging.

• Metal cans are the best choice of packaging for the sterilized food, in term of temperature resistance, shelf life, and the fast production speed for both packaging manufacturers and food packers.

• Strength of metal packaging

• Aesthetic: printing quality, luster property.

Key Opportunities.

• The GDP growth of Asean countries, especially Lao, Cambodia and Myanmar, continue to support the Thai packaging growth.

• The high growth of food industry in Thailand.

• Sustainability issues: Metal can be recycles multiple times with no loss to product quality and structural qualities

•Thailand is the crossroads of ASEAN and RCEP.

• China’s One Belt, One Road

Key Threats.

• Increase use of PET, PP and other plastics packaging in the food and beverage industries to replace metal and glass containers.• Advanced technology in plastic packaging in term of innovative materials and production such as retort pouch, in mould labeling rigid container, and multi-layers rigid packaging.• New excise taxes will cause "moderate" rises in the prices of alcoholic beverages and sugary drinks.• AEC (Asean Economic Community): Free Flow of Investment among Asean Countries.

Summary of Thailand Metal Packaging.

• There is no new direct competitor due to high value of investment and low return in metal packaging industry.• The high value metal packaging market continues to grow. However, the size of market is small.• The size of metal packaging market significantly depends on the export of tuna and pineapple products.• The growth rate of Thai metal packaging market was 1% in 2015 and 2016. • This year, beverage packaging market was estimated to reduce about 10% due to the excise taxes increase. • This year, referring to the forecast of TMPA, the growth rate of Thailand metal packaging market will be only 1%.

Thailand Metal Packaging Market

Thailand Metal Packaging Market

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