March 2018

A.J. PLAST OPPORTUNITY DAY

World Class Film Product For

Ultimate Customer Satisfaction

Disclaimer

The information contained in this presentation is intended solely for your personal

reference only. If you are not an intended recipient, you must not read, disclose, copy, circulate,

retain, distribute or take any action in reliance upon this material.

The information contained in this presentation does not constitute or form any part of

any offer or invitation to purchase any securities and neither the issue of the information nor

anything contained herein shall form the basis of, or be relied upon in connection with, any

contract or commitment on the part of any person to proceed with any transaction.

This presentation is not intended to substitute your own analysis and investigation,

and should not be considered a recommendation to any recipient of this presentation. Some

information 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 current

assumptions which are subject to various risks and which may change over time. No assurance

can be given that future events will occur, that projections will be achieved, or that the company’s

assumptions are correct. Actual results may differ materially from those projected.

AJ snapshot: One-stop BO (biaxially-oriented) film manufacturer

Business description

Top 10 Shareholders

• AJ is a BO (biaxially-oriented) film manufacturer, offering one-stop service for BO film

used primarily in flexible packaging

• Expanded into CPP film and off-line chemical coating film to enhance product

portfolio and add value to existing products

• AJ is capable of producing full range of flexible packaging films which are:

• AJ is founded in 1987 and listed on the SET in 1990

• SET Ticker - AJ

• Bloomberg Code - AJ:TB

Value chain

Upstream

petrochem.

industry

Resin

producer

e.g. IVL,

PTTCH,

UBE,

TPC

BO film

producer

Product

manuf.

e.g. food

processor

(CPF, TUF)

Converter

/ PrinterConsumer

Plastic

resin

Plastic

film

Packaging Finished

goods

1.กลมครอบครวสทธสมพทน 1 56.52

2.กลมครอบครวฉตรพรยะพนธ 6.36

3.กลมครอบครว ชลคดด ำรงกล 3.65

4. บรษท ไทยเอนวดอำร จ ำกด 1.30

5. นำงปรญญำ ขนเจรญสข 1.04

6.นำยทตนนท นำคะศร 1.00

7.นำงรณต ศภพพฒน 0.88

8.นำยโชคชย ธรรมยตกำร 0.69

9.นำยสมเกยรต เทดทลทวเดช 0.68

10.นำยสนตชย เตยวสมบรณกจ 0.63

Financial highlight

(as of 1Q2017)

Product BOPP BOPET BOPA CPP

Capacity (MT/yr) 132,000 62,000 18,000 16,000

0

20000

40000

60000

80000

100000

120000

140000

Production Capacity

Unit: MB 2017 2016 2015 2014 2013

Revenue 7,879 7,032 6,259 6,545 5,452

Net profit 443 121 4 -248 -98

Total

assets8,549 8,495 8,244 8,243 7,542

D/E ratio 1.43 1 .62 1.6 1.62 1.22

P/E 11.32 47.11 - - 54.69

Market

cap.4,793 4,553 2,397 3,535 3,695

Receive promotional

privileges from the Board

of Investment Zone3,

Chonburi Province.

Factory area of over 27.5

acres (112,000 m²)

Strategically located on

Eastern part of Thailand

within the same estate as

Laem Chabang Port, the

main deep sea port of

Thailand

PRODUCTION FACILITY

Schematic of BO Film Industry

BOPA

BOPET

BOPP

Pri

ce/F

unction

Consumption

BOPP BOPET BOPA CPP MET BOPLA COATED

136,000Metric Tons

4 Lines

64,000Metric Tons

2 Lines

18,000Metric Tons

2 Lines

16,000Metric Tons

1 Line

5.8 Meter Y2016

22,000Metric Tons

4 Lines (Wire)1 Line

(Crucible)

5,000Metric Tons

Utilize Another Production

Line’s Capacity

6,000Metric Tons

1 Line

2.5 Meter Y2017

A.J. PLAST’S CAPACITY

TOTAL INSTALLED CAPACITY 262,000 MT per annum

• In-process inspection system for defect detection

• In-line gauge control system

BOPA( LISIM )

MET

12,000Metric Tons

2019

6,000Metric Tons

2018

A.J. PLAST’S NEW INVESTMENT

* Capacity per annum

Well-planned capacity expansion

SEA’s largest BO film producer

in all segments since 2014

Year BOPP BOPET BOPA CPPVALUE

ADDED LINE

1987 • 1st BOPP

1995 • 2nd BOPP • 1st BOPET

2001 • 1st Metallizer

2003 • 3rd BOPP • 2nd BOPET • 2nd Metallizer

2006 • 1st BOPA

2008 • 4th BOPP

2010 • 3rd Metallizer

2011 • 3rd BOPET • 2nd BOPA

2013 • 5th BOPP • 4th BOPET

2014 • 6th BOPP • 1st CPP• 4th & 5th

Metallizer

2015 • 6th Metallizer

2016 • 1st Coater

2018 • 7th Metallizer

2019 • 3rd BOPA

Additional capacity towards leadership

Total Capacity

Equipped with engine to achieve growth: Leader in Southeast Asia

254,000

30,000

• Protect the product from chemical /

biological exposure

Health

• Minimum use of resources

• Easy to empty / recycle

Environment

• Easy to handle, store & transport

Logistics

U.S. packaging industry (2009)

Source: U.S. Census Bureau data & Flexible

Packaging Association estimates

The market is overwhelmed by

various packaging alternatives

Key requirements for packaging

• Easy to manufacture & cost efficient

Economy

• Easy to open, hold & close

• Inform consumers about the product

Usability

• Contain, Inform, Protect, Transport &

Display

Basics

Flexible packaging has gradually

replaced conventional ones

Conventional

Flexible

Flexibility and functionality at competitive cost for producer and affordable price for consumer is key driver of flexible

packaging trend at present

What is the BEST one?

Flexible packaging provides many consumer

conveniences including extended shelf life, easy

storage, microwaveability & resealability

Recent structural changes of packaging industry: Catalyst for BO film demand

FLEXIBLE

PACKAGING (FP)

Resource

Recovery

Sustainability

Advantages

Light

Weighting

FP reduces

waste, energy

consumption &

greenhouse gas

emission

FP waste can be

reproduced into

new FP

FP waste may be

used as feedstock

to produce

gaseous & liquid

fuel

The lightweight package produces “less waste at the first place”

Examples of light weighting between 2005 -2011:

• Barrier enhancement: resulted in 50% less material for the same barrier

• Material toughness: layers reduced up to 50%

• Coextrusion technologies: enable weight reduction of up to 33%

• Equipment innovation: allows some film thickness to be reduced to 50%

Beverage packaging example

Glass bottle

& metal capPlastic PET bottle & cap

Aluminum can

Stand-up flexible pouch

Product weight (g) 236 236 236 199

Packaging weight (g) 198.4 22.7 11.3 5.7

Product-to-Packaging Ratio

1:1 10:1 21:1 35:1

Packaging weight per 100 g product (g)

83.9 9.6 4.7 2.8

MSW /1 landfill per 100 g product (g)

54.5 6.0 2.4 2.8

Energy consumption (MJ/8 oz)

3.36 3.00 0.99 0.45

Emissions (Kg Co2e/8 oz)

0.29 0.18 0.08 0.02

1 2 3 4

Advantages of FP over alternative packaging

Remark: /1 MSW stands for municipal solid waste

Source: FPA (Flexible Packaging Association) Case Studies

• The flexible beverage pouch consumes ½ the amount of energy compared

to the closet alternative

• The flexible beverage pouch generates ¾ less emission than the closet

alternative

• The flexible beverage pouch uses less space in shipping than other

alternatives, reducing transportation emission while saving costs

Flexible packaging (FP) sustainability initiatives

Flexible packaging: Significant value and benefits to the market

Global Flexible Packaging

Industry growing at CAGR

of 4.1% to reach $231

billion by 2018

The global flexible packaging market

will grow at a rate of 3.5% PA until the

year 2018, according to a major new

study by Smithers Pira.

Flexible packaging: Promising growth industry

“The world consumer flexible packaging market has picked up significantly since the global

economic downturn of 2008-9 and is forecast to grow at CAGR of 4.1% during the period

2013-2018, to reach a total of 29.8 million tonnes.”

Flexible packaging: Promising growth industry

BIOBASED PORTFOLIO

BIOMASS for reduction of CO2

BOPP Film

• Anti-fog (cold & hot conditions)• Compose of bio-based polymer• Both sides heat-sealable

U.S.21 CFR FDA Regulation Part 177.1520

HBF Film

• Excellent transparent properties• Available for food contact

World 1st Bio-PA film: EN

A.J. PLAST PLC

Bio-based film for a better tomorrow: GP

No.1 in Southeast AsiaThe lowest cost

producerSustainable growth

• Offer comprehensive range of film products

• Diversify business risk and mitigate volatile

profit

One-stop service

Premium market penetration

• High value-added product

• Target Japanese market

- Massive demand of 280k MT/yr

- Premium price opportunity

- High level of quality requirement

- Technical know-how improvement

• Global shift from traditional to flexible

packaging

• Flexible packaging mainly correlates with

food and consumer product sectors, thereby

indicating sustainable & resilient demand

Flexible packaging trend

• Invest in the state-of-the-art machinery

- Increase productivity

- Reduce energy consumption

- Reduce plastic waste

- Able to produce higher grade films

• Invest at the right timing

• Gain promotional privileges (esp. tax

incentives) from the Board of Investment

Right investment

• Realize greater level of economy of scale as

the company grows

• Deepen sourcing skills to obtain advantage

of material cost minimization

Efficiency improvement

• Continuous Expansion from 2010-2018

• Achieve the largest capacity in all BO film

segments in 2014

Capacity expansion

• Cautiously expand product portfolio to be

the industry leader:

BOPP since 1987, BOPET since 1995,

Metallizer since 2001, BOPA since 2006,

CPP since 2016, and Chemical Coated Film

since 2017

Portfolio enlargement

• Fully dedicate to quality excellence at all

levels of production

Quality excellence

Ho

w t

o A

ch

ieve

th

e G

oa

ls

AJ Plast: Strategies

Complete Product Line Latest Production Fleet

• AJ Plast offers customers with complete product lines for flexible

packaging including BOPP, BOPET, BOPA, CPP and metallized

film.

• Product ranges from high volume commodify products to high

value-added specialized products such as transparent barrier

films

• AJ Plast replaced old machines with smaller capacity, less

efficiency, higher production cost with new ones with larger

capacity, higher efficiency, and lower production cost at

appropriate periods.

• Currently, 70% of production capacity is coming our from

Production line with ages less than 6 years

Benefits Benefits

• One-stop supply for local and export customers

• Lower sales and administration costs per sales value

• Smoother business cycles with less volatility

• Enjoys more frequent product cycles compared with relying on

only one product cycles

• Becomes a lowest cost producer with better efficiency in both

raw material, energy consumption, and manpower

• Enhance competitiveness in local and global market

• Better quality - a ticket to enter and stay in premium market

• More flexibility to produce high value-added products

• Better spare part management – less cost and high machine

reliability

AJ Plast: Unique Positioning

79,427.62

92,795.63 98,689.09

121,263.53

129,362.64

2013 2014 2015 2016 2017

AJ sales quantity (MT)

Financial Results: AJ Sales Quantities (MT)

AJ Total Sales (M. Baht)

5,403.75

6,418.44 6,204.24

6,910.87

7,695.85

2013 2014 2015 2016 2017

Financial Results: AJ Total Sales (M. Baht)

(97.98)

(247.86)

3.79

121.25

443.44

(300.00)

(200.00)

(100.00)

-

100.00

200.00

300.00

400.00

500.00

2013 2014 2015 2016 2017

AJ Net Profit (M. Baht)

Financial Results: AJ Net Profit (M. Baht)

Financial Results: AJ EBITDA (M. Baht)

1,077.05 1,096.60

307.39

156.36

12.28

401.61

478.82

735.02

2010 2011 2012 2013 2014 2015 2016 2017

AJ sales mix by proportion (%)

Diversified customer base: To decrease reliance on any particular economy

• Demand for BOPP production was growing stronger (CAGR (1998-2017) of 8.6%

globally, 15% in China)

• Largest share in packaging film with a huge market of more than 9 million MT per year

• Various kind of specialty film for packaging such as Anti-Fog heat-sealable film, Pearlized

Film, and Matt Film.

• Great opportunity for high future growth due to the better possibility to use environmental-

friendly material and better post-consumer packaging recycling ability.

Source: Industrial Source

BOPP film industry

Source: Industrial Source

BOPP WORLD Demand / Production

BOPP film industry

$546

$516

$465

$369$358

$333

$382

$411 $416

$380$371 $373

$200

$300

$400

$500

$600

Ja

n-1

7

Fe

b-1

7

Ma

r-17

Ap

r-17

Ma

y-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Se

p-1

7

Oct-1

7

Nov-1

7

Dec-1

7

Source: China Industrial Source

BOPP SPREADS

Market Update: Spreads Insight Jan 2017 – Dec 2017

• CAGR (1998 – 2017) of 7.5% for BOPET

•BOPET production capacity was increased drastically during 2011-2015, especially in China

and India causing serious global oversupply of BOPET film

•As investment in new machines was slow down since 2015, and the consumption growth of

BOPET film is growing rapidly, the excess capacity has been mostly absorbed by the

demand.

•As a result, the Spread between BOPET film and PET resin is improving recently indicating

a good sign for BOPET market recovery.

Source: Industrial Source

BOPET film industry

Source: Industrial Source

BOPET WORLD Demand / Production

BOPET film industry

Source: China Industrial Source

$344

$296

$317

$250

$192

$224$234

$244

$306

$331

$365

$405

$100

$200

$300

$400

$500

Ja

n-1

7

Fe

b-1

7

Ma

r-17

Ap

r-17

Ma

y-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Se

p-1

7

Oct-1

7

Nov-1

7

Dec-1

7BOPET SPREADS

Market Update: Spreads Insight Jan 2017 – Dec 2017

•Since 2016, the demand of BOPA film in China was increased by 15% PA while BOPA

production capacity expansion was not fast enough to serve the sudden change in demand,

causing the spike in the spread to abnormal level.

•Moving to end of 2016, BOPA film was under shortage especially in China, bumping the

price up 25% in fourth quarter and the trend continued until mid of 2017 when the market

started becoming more stable.

•New BOPA production capacity will be coming out in 2018 making more balance between

market demand and supply causing spread came down to more reasonable and realistic

level, but still much higher than average spread in the last 5 years (approx. USD 600-

700/MT).

Source: Industrial Source

BOPA film industry

Source: Industrial Source

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

To

ns

Demand Production Demand Production

BOPA WORLD Demand / Production

BOPA film industry

$3,397

$3,312$3,343

$3,258

$2,373

$2,200$2,258

$2,603

$2,765

$2,460$2,512

$2,410

$2,000

$2,300

$2,600

$2,900

$3,200

$3,500

Ja

n-1

7

Fe

b-1

7

Ma

r-17

Ap

r-17

Ma

y-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Se

p-1

7

Oct-1

7

Nov-1

7

Dec-1

7BOPA SPREADS

Source: China Industrial Source

Market Update: Spreads Insight Jan 2017 – Dec 2017

• Largest, Fastest, and most technologically advanced BOPA line in the World

equipped with Linear Motor Simultaneous Stretching technology.

• Most productive BOPA line with best quality BOPA film ever exists.

• No local competitor in this film market segment.

• Schedule to start up end of 2018 and commercially launch in 1st Quarter 2019

Line No. 1 & 2 Line No. 3

Final Width 5 meter 6.6 meter

Line Speed 220 m/min 250 m/min

Stretching Technology Sequential Stretching Simultaneous Stretching

Productivity and Efficiency Good Best

Film Mechanical Properties

and Printability

Good Best

New BOPA Line (No.3): Simultaneous Stretching Line

Foundation Installation StartupStart check

2Q 2018 3Q 2018 Dec 2018

Project’s Milestone

30% Progress

Foundation work

Recent status

New BOPA Line (No.3): Progress Update

30% Progress

Foundation work

Recent status

Progress on-site on 27 Mar 2018

New BOPA Line (No.3): Progress Update

• Flexible Packaging industry is a continuously growing industry with consistent historical

track record of 7%-8% growth per annum

• AJ Plast is one of three comprehensive packaging film manufacturer in the World

providing a complete range of plastic packaging films to cover all market segments.

• With economy of scale and the newest fleet of production lines, together with its

competitive supply chain, A.J. Plast could achieve lowest production cost to compete

worldwide.

• AJ Plast is immune to high volatility business cycle risk due to its product variety.

• BOPA market is still highly profitable while BOPET market is moving uptrend. Keeping

eyes on the next cycle of BOPP.

Conclusions

AJ Customer Base

Reduce dependency and minimize particular country risk

Avoid anti-dumping measure enforcement

Individual country (except TH & JP) is targeted to contribute

no greater than 5% of AJ’s total sales

Taiwan

Vietnam

Japan

China

Malaysia

U.S.A. Hong Kong

Australia

Switzerland

Italy

Philippines

SingaporeIndonesia

Thailand

England

Germany

Nigeria

Mexico

Diversified customer base: To decrease reliance on any particular economy