gmg global limited - Finanznachrichten
Corporate Presentation
A Growing Natural Rubber Play
GMG GLOBAL LIMITED A subsidiary of SINOCHEM International
Disclaimer
The presentation is prepared by GMG Global Limited (“GMG” or “the Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.
2
Presentation outline for 2Q12
Financial overview
Business updates
Appendices
3
FINANCIAL OVERVIEW 2Q12
A Growing Natural Rubber Play
2Q12 vs 2Q11 highlights
Revenue
5.1%
S$273.8 million
GPM
2.0pp
13.1%
Tonnage
24.6% y-o-y
59,065mt
NR ASP
23.8% Y-o-y
S$4,636 per ton
pp. Denotes percentage points
5
Revenue highlights for 2Q12 Revenue (S$mil)
• Revenue dipped 5.1% to S$273.8 mil for 2Q12 on lower ASP during the quarter • NR ASP dipped 23.8% from S$6,084 per ton in 2Q11 to S$4,636 per ton in 2Q12 due to lower prevailing NR selling prices during 2Q12
288.4
1Q11
2Q11
312.3
310.8 282.6
273.8
1Q12
2Q12
144.8 110.40 82.74
80.73
1Q10
2Q10
3Q10
4Q10
3Q11
4Q11
Volume and ASP 6,223
6,084
60,000 50,000
3,902
4,233
4,141
7,000 5,636
6,000
5,296
4,729
4,510
4,636
5,000
40,000
4,000
30,000
3,000
20,000
2,000
10,000
1,000 21,205 19,069 26,651 30,624 45,447 47,409 55,413 58,678 62,674 59,065
0
0 1Q10
2Q10
3Q10
4Q10
1Q11 Volume
2Q11
3Q11 ASP
4Q11
1Q12
2Q12
6
ASP/ton
70,000
Volume Tonnage
• Tonnage increased 24.6% to 59,065mt largely from Teck Bee Hang’s processing plants, contribution from ITCA and trading volume from Siat
282.81
Tonnage and GPM Tonnage produced against gross profit margin Tonnage increased from 21,205mt during 1Q10 to 45,447mt during 1Q11 on contribution from Teck Bee Hang. Decreased GPM on higher output from Teck Bee Hang's processing operations
60,000
30.0
28.5 27.0
25.0 24.6
50,000
24.0 20.0
40,000 30,000
15.3
14.8
15.0
16.0 12.9
13.1
11.1
20,000
10.0
Gross profit margin (%)
Tonnage produced (Metric tonnes - MT)
70,000
5.0
10,000 21,205
19,069
26,651
30,624
45,447
47,409
55,413
58,678
62,674
59,065
0
0.0 1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
•
Supplies from own plantations contributed about 13% to the Group’s tonnage, the balance of 87% were procured externally
•
On own plantation supplies, if ASP is above the breakeven plantation costs, the excess is the GP contribution (excess/breakeven=GP)
7
Balance sheet highlights for 2Q12
Balance sheet as at (S$mil)
30-Jun-12
31-Dec-11
233.3
233.9
10.22 cents
10.45 cents
Total loans
115.0
109.8
Total cash and bank balances
404.4
452.2
Shareholders' funds
794.8
808.9
Debt: Equity ratio
0.145
0.136
Plantation Assets Net asset per share
Maintains healthy balance sheet with low gearing.
8
8
Share statistics as at 26 July 2012
Share data Last price Market capitalisation Shares outstanding Free float (%) Volume (90-day average)
As at 26 July 2012 (SGD) 0.119 911.6 million 7.66 billion 36.4% 10.1 million
9
9
BUSINESS UPDATES
A Growing Natural Rubber Play
Our progress
FY09 72,755mt
1999
2008
2009
FY08 62,802mt
GMG was listed on SGX Catalist
2010
FY10 97,549mt
Sep - Rights Issue raised net proceeds of S$97.4 million
- Sinochem entered as 51% controlling shareholder of GMG - GMG was transferred from SGX Catalist to SGX Mainboard
2011
FY11 206,947mt
Jan - 75% interest in PT GMG Sentosa, Pontianak West Kalimantan Aug - Established G.P. Sentosa in Thailand to explore and seek out investment opportunities Oct - Sud-Cameroun ("SCH") established for 45,000ha greenfield land concession Dec - Acquisition of 55% stake in Teck Bee Hang
2012
2014 target output 450,000mt
Oct - Rights Issue raised net proceeds of about S$344.2 million - 95.5% stake in Inobonto, Indonesia to explore agriculture opportunities which may include palm oil Dec - 60% in ITCA, NR processing plant with 20,000mtpa in Ivory Coast - JV in Ivory Coast with JDB Group to develop NR processing plant with 30,000mtpa
Feb - Established subsidiary in Congo to seek opportunities in rubber plantation and processing facilities - Proposed acquisition into 35% of Siat SA, with plantations and processing facilities in Africa Apr - Hevecam SA secured lease of 4 temporary land concessions for development of rubber plantations: total area of 18,365ha Jul – Completed 35% acquisition into Siat SA as at 17 July 2012
11
Strategy roadmap Target output (tonnage sold) in 2-3 years to
450,000 MT Capability to support large scale estate development in new projects More dynamic growth strategy via M&A opportunities for larger factory operations in rubber producing countries Sinochem took a majority 51% stake in GMG shareholding in 2008 Injects capital, immense distribution network & robust market potential in China 12
APPENDICES
A Growing Natural Rubber Play
African advantage and presence in major rubber producing countries
SOUTH THAILAND
COTE D'IVOIRE, AFRICA
PLANTATION PROCESSING
CAMEROON, AFRICA
WEST AND SOUTH KALIMANTAN, INDONESIA
Overview of operations in key rubber producing countries Land bank
Plantable area
Processing
Cote d’Ivoire
1,560 ha
1,406 ha
56,000 mt
Cameroon, Hevecam
58,365 ha
33,000 ha
55,000 mt
Cameroon, Sudcam - Greenfield
45,000 ha
25,000 ha
-
South Thailand
-
-
200,000 mt
Kalimantan, Indonesia
-
-
60,000 mt
104,925 ha
59,406 ha
371,000 mt
Total
14
Strong parentage – Strategic acquisitions and proxy to China market
250,000
Acquired 55% of Teck Bee Hang
Tonnage sold (mt)
200,000
1,400.0 206,948
Acquired 75% of PT GMG Sentosa in Pontianak, Kalimantan Indonesia
150,000
1,200.0 1,000.0 800.0
Sinochem acquired 51% in GMG
100,000
50,000
Contribution from Teck Bee Hang’s processing
97,548
55,660 53,205 50,013 44,200 48,300 43,666 45,739 44,703
62,802
600.0
72,754 400.0 200.0
0
ASP (S$)
1,118
49.4
1,218
58.8
1,133
56.7
2,594
113.3
2,089
95.6
103.0
2,304
Revenue (S$mil)
175.9
3,161
166.4
3,127
245.6
3,911
Tonnage sold (mt)
180.2
2,477
418.7
4,292
1,194.3
-
5,771
15
Revenue (S$mil)
Tonnage sold against Revenue
Strong parentage – Strategic acquisitions and proxy to China market • Sinochem – Proxy to China market • Sales to Sinochem started in FY2009 and thereafter sales to China through Sinochem remained constant at about 32% of total group revenue
Sales to Sinochem 400.0
31.1%
31.6%
350.0
30%
300.0
20%
200.0 15%
150.0
10%
100.0
% of revenue
25%
23.8%
250.0 S$mil
35%
5%
50.0 0.0 FY2008
42.9
130.2
376.9
FY2009
FY2010
FY2011
Sales to China through Sinochem
0%
% of total revenue to Sinochem
16
Overview of operations Stake
Hevecam SA Cameroon Since 1996
GMG - 90% Cameroon gov – 10%
Sudcam, Cameroon - Greenfield • Acquired in 3Q10 • Planting programme has commenced GMG - 51% Tropical Rubber, Cote d'Ivoire Ivory Coast gov – (TRCI) Since 1995 20% Ivoirienne de Traitement de GMG – 60% Caoutchouc (“ITCA”) FISH – 40% 2011 in Dabou Ivory Coast
Plantation operations
Processing Capacity (Mtpa)
Land bank (ha)
Plantable (ha)
58,365
33,000
55,000
45,000
25,000
-
1,560
1,406
36,000
-
-
20,000
Supply of raw materials for production Own plantation - 90% External parties – 10% Own plantation - 10% External parties – 90% External parties – 100%
PT Bumi Jaya Indonesia (South Kalimantan) Since 2007
51%
-
-
30,000
External parties – 100%
PT GMG Sentosa Indonesia (West Kalimantan) Since Jan 2010
75%
-
-
30,000
External parties – 100%
Teck Bee Hang Since Dec 2010
55%
-
-
200,000
External parties – 100%
104,925 ha 59,406 ha 371,000 mt 17
Rubber supply and demand Supply
Demand
About 70% of the world’s rubber demand is met by Thailand, Indonesia and Malaysia
China, currently consuming about 30% of world’s NR supply, will provide impetus for NR demand in 2012
ANRPC forecasted 10.297 million mt for 2012 with a view of lower y-o-y production of 9.5% from Thailand and Malaysia. Expected reduced rubber tapping activities due to dip in spot prices. (ANRPC April 2012 Natural Rubber Trends and Statistics)
Demand for NR driven by largely the tyre sector; which depends on tyre production and rubber weight per tyre
Long-term supply shortage Increasing trend of rubber plantations in major rubber producing countries making way for palm oil plantations, thus reducing supply of natural rubber
According to LMC International Rubber Bulletin April 2012, tyres sales expected to reduce further in 2012 from decreasing sales in second half of 2012
Growth of supply will be constrained by the limited arable land for rubber planting and the competitive crops such as palm oil, high labour cost and long production cycle
Tyre sales estimated on the original equipment tyre sales from number of vehicles produced and replacement tyre sales. The number of vehicles on the road may provide a gauge on replacement tyre demand 18
Rubber supply and demand 12,000 10,000
• 2009 consumption dipped by about 9% due to the recession. However, consumption recovered about 14% in 2010
8,000 6,000 4,000 2,000 0 1998
1999
2000
2001
2002
2003
2004
Natural rubber production Year
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Natural Rubber 6,634 6,577 6,762 7,332 7,326 8,020 8,746 8,904 9,791 9,801 10,036 9,617 10,384 10,699
Production Synthetic Rubber 9,880 10,390 10,870 10,483 10,877 11,341 11,961 12,100 12,653 13,387 12,743 12,087 13,987 14,400
2005
2006
2007
2008
2009
2010
2011
Natural rubber consumption Consumption
Total Rubber 16,514 16,967 17,632 17,815 18,203 19,361 20,707 21,004 22,444 23,188 22,779 21,704 24,371 25,099
Natural Rubber 6,570 6,650 7,340 7,333 7,556 7,952 8,718 9,200 9,677 10,144 10,173 9,390 10,765 10,584
Synthetic Rubber 9,870 10,280 10,830 10,253 10,874 11,348 11,840 11,900 12,691 13,264 12,603 11,754 13,845 14,390
Total Rubber 16,440 16,930 18,170 17,586 18,430 19,300 20,558 21,100 22,368 23,408 22,776 21,144 24,610 24,974
Source: International Rubber Study Group (IRSG) Rubber Statistical Bulletin
19
Rubber supply and demand • As seen in the graph in the previous slide, supply and demand is generally balanced
Tyres in China vs key tyre producing countries (million units)
1,461
1,449
512
546
2007
2008
1,544
1,605
776
832
2010
2011
• Synthetic rubber consumption remains constant at about 56% to 58% of total rubber consumption
1,321
655 2009
• On a longer term outlook, demand is expected to grow steadily • Increasing tyre production in China from 2007 to 2011 (Chart on the top left)
Total tyres in key tyre producing countries China's total tyre production
Key tyre producing countries include France, Germany, Italy, Japan, South Korea, USA and others
40 30
22.8 21.1
33.9 15.3 30.4 32.5 25.8 27.3 24.3
20 10
20 6.3
10 0
-2.5
5.5
-7.5
3.6
0.2
3.3
-10
2008 2009 2010 2011 2012 2015 2018 2020 Volume (Mil MT) Sources from IRSG and Bloomberg
0
Annual Growth %
Annual growth (%)
Volume (mil MT)
Consumption of total rubber
• Policies may affect demand for Chinese Light Vehicle (LV) tyres: • Motor vehicle tyres sold in EU must have performance certified in terms of fuel efficiency, braking and noise by November 2012 • Timely removal of US tariff on imports of Chinese LV tyres Sources: LMC International Rubber Bulletin April 2012 International Rubber Study Group Rubber Statistical Bulletin
20
Thank You! - Q&A
For further enquiries, please contact Financial PR Pte Ltd EL LEE/ Alicia CHENG [email protected] /[email protected] Tel: 6438 2990 / Fax: 6438 0064 www.financialpr.com.sg
21 www.gmg.sg
A Growing Natural Rubber Play
GMG GLOBAL LIMITED A subsidiary of SINOCHEM International
Disclaimer
The presentation is prepared by GMG Global Limited (“GMG” or “the Company”) and is solely for the purpose of corporate communication and general reference only. The presentation is not intended as an offer to sell, or to solicit an offer to buy or to form any basis of investment decision for any class of securities of the Company in any jurisdiction. All such information should not be used or relied on without professional advice. The presentation is a brief summary in nature and do not purport to be a complete description of the Company, its business, its current or historical operating results or its future business prospects. This presentation is provided without any warranty or representation of any kind, either expressed or implied. The Company specifically disclaim all responsibilities in respect of any use or reliance of any information, whether financial or otherwise, contained in this presentation.
2
Presentation outline for 2Q12
Financial overview
Business updates
Appendices
3
FINANCIAL OVERVIEW 2Q12
A Growing Natural Rubber Play
2Q12 vs 2Q11 highlights
Revenue
5.1%
S$273.8 million
GPM
2.0pp
13.1%
Tonnage
24.6% y-o-y
59,065mt
NR ASP
23.8% Y-o-y
S$4,636 per ton
pp. Denotes percentage points
5
Revenue highlights for 2Q12 Revenue (S$mil)
• Revenue dipped 5.1% to S$273.8 mil for 2Q12 on lower ASP during the quarter • NR ASP dipped 23.8% from S$6,084 per ton in 2Q11 to S$4,636 per ton in 2Q12 due to lower prevailing NR selling prices during 2Q12
288.4
1Q11
2Q11
312.3
310.8 282.6
273.8
1Q12
2Q12
144.8 110.40 82.74
80.73
1Q10
2Q10
3Q10
4Q10
3Q11
4Q11
Volume and ASP 6,223
6,084
60,000 50,000
3,902
4,233
4,141
7,000 5,636
6,000
5,296
4,729
4,510
4,636
5,000
40,000
4,000
30,000
3,000
20,000
2,000
10,000
1,000 21,205 19,069 26,651 30,624 45,447 47,409 55,413 58,678 62,674 59,065
0
0 1Q10
2Q10
3Q10
4Q10
1Q11 Volume
2Q11
3Q11 ASP
4Q11
1Q12
2Q12
6
ASP/ton
70,000
Volume Tonnage
• Tonnage increased 24.6% to 59,065mt largely from Teck Bee Hang’s processing plants, contribution from ITCA and trading volume from Siat
282.81
Tonnage and GPM Tonnage produced against gross profit margin Tonnage increased from 21,205mt during 1Q10 to 45,447mt during 1Q11 on contribution from Teck Bee Hang. Decreased GPM on higher output from Teck Bee Hang's processing operations
60,000
30.0
28.5 27.0
25.0 24.6
50,000
24.0 20.0
40,000 30,000
15.3
14.8
15.0
16.0 12.9
13.1
11.1
20,000
10.0
Gross profit margin (%)
Tonnage produced (Metric tonnes - MT)
70,000
5.0
10,000 21,205
19,069
26,651
30,624
45,447
47,409
55,413
58,678
62,674
59,065
0
0.0 1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
•
Supplies from own plantations contributed about 13% to the Group’s tonnage, the balance of 87% were procured externally
•
On own plantation supplies, if ASP is above the breakeven plantation costs, the excess is the GP contribution (excess/breakeven=GP)
7
Balance sheet highlights for 2Q12
Balance sheet as at (S$mil)
30-Jun-12
31-Dec-11
233.3
233.9
10.22 cents
10.45 cents
Total loans
115.0
109.8
Total cash and bank balances
404.4
452.2
Shareholders' funds
794.8
808.9
Debt: Equity ratio
0.145
0.136
Plantation Assets Net asset per share
Maintains healthy balance sheet with low gearing.
8
8
Share statistics as at 26 July 2012
Share data Last price Market capitalisation Shares outstanding Free float (%) Volume (90-day average)
As at 26 July 2012 (SGD) 0.119 911.6 million 7.66 billion 36.4% 10.1 million
9
9
BUSINESS UPDATES
A Growing Natural Rubber Play
Our progress
FY09 72,755mt
1999
2008
2009
FY08 62,802mt
GMG was listed on SGX Catalist
2010
FY10 97,549mt
Sep - Rights Issue raised net proceeds of S$97.4 million
- Sinochem entered as 51% controlling shareholder of GMG - GMG was transferred from SGX Catalist to SGX Mainboard
2011
FY11 206,947mt
Jan - 75% interest in PT GMG Sentosa, Pontianak West Kalimantan Aug - Established G.P. Sentosa in Thailand to explore and seek out investment opportunities Oct - Sud-Cameroun ("SCH") established for 45,000ha greenfield land concession Dec - Acquisition of 55% stake in Teck Bee Hang
2012
2014 target output 450,000mt
Oct - Rights Issue raised net proceeds of about S$344.2 million - 95.5% stake in Inobonto, Indonesia to explore agriculture opportunities which may include palm oil Dec - 60% in ITCA, NR processing plant with 20,000mtpa in Ivory Coast - JV in Ivory Coast with JDB Group to develop NR processing plant with 30,000mtpa
Feb - Established subsidiary in Congo to seek opportunities in rubber plantation and processing facilities - Proposed acquisition into 35% of Siat SA, with plantations and processing facilities in Africa Apr - Hevecam SA secured lease of 4 temporary land concessions for development of rubber plantations: total area of 18,365ha Jul – Completed 35% acquisition into Siat SA as at 17 July 2012
11
Strategy roadmap Target output (tonnage sold) in 2-3 years to
450,000 MT Capability to support large scale estate development in new projects More dynamic growth strategy via M&A opportunities for larger factory operations in rubber producing countries Sinochem took a majority 51% stake in GMG shareholding in 2008 Injects capital, immense distribution network & robust market potential in China 12
APPENDICES
A Growing Natural Rubber Play
African advantage and presence in major rubber producing countries
SOUTH THAILAND
COTE D'IVOIRE, AFRICA
PLANTATION PROCESSING
CAMEROON, AFRICA
WEST AND SOUTH KALIMANTAN, INDONESIA
Overview of operations in key rubber producing countries Land bank
Plantable area
Processing
Cote d’Ivoire
1,560 ha
1,406 ha
56,000 mt
Cameroon, Hevecam
58,365 ha
33,000 ha
55,000 mt
Cameroon, Sudcam - Greenfield
45,000 ha
25,000 ha
-
South Thailand
-
-
200,000 mt
Kalimantan, Indonesia
-
-
60,000 mt
104,925 ha
59,406 ha
371,000 mt
Total
14
Strong parentage – Strategic acquisitions and proxy to China market
250,000
Acquired 55% of Teck Bee Hang
Tonnage sold (mt)
200,000
1,400.0 206,948
Acquired 75% of PT GMG Sentosa in Pontianak, Kalimantan Indonesia
150,000
1,200.0 1,000.0 800.0
Sinochem acquired 51% in GMG
100,000
50,000
Contribution from Teck Bee Hang’s processing
97,548
55,660 53,205 50,013 44,200 48,300 43,666 45,739 44,703
62,802
600.0
72,754 400.0 200.0
0
ASP (S$)
1,118
49.4
1,218
58.8
1,133
56.7
2,594
113.3
2,089
95.6
103.0
2,304
Revenue (S$mil)
175.9
3,161
166.4
3,127
245.6
3,911
Tonnage sold (mt)
180.2
2,477
418.7
4,292
1,194.3
-
5,771
15
Revenue (S$mil)
Tonnage sold against Revenue
Strong parentage – Strategic acquisitions and proxy to China market • Sinochem – Proxy to China market • Sales to Sinochem started in FY2009 and thereafter sales to China through Sinochem remained constant at about 32% of total group revenue
Sales to Sinochem 400.0
31.1%
31.6%
350.0
30%
300.0
20%
200.0 15%
150.0
10%
100.0
% of revenue
25%
23.8%
250.0 S$mil
35%
5%
50.0 0.0 FY2008
42.9
130.2
376.9
FY2009
FY2010
FY2011
Sales to China through Sinochem
0%
% of total revenue to Sinochem
16
Overview of operations Stake
Hevecam SA Cameroon Since 1996
GMG - 90% Cameroon gov – 10%
Sudcam, Cameroon - Greenfield • Acquired in 3Q10 • Planting programme has commenced GMG - 51% Tropical Rubber, Cote d'Ivoire Ivory Coast gov – (TRCI) Since 1995 20% Ivoirienne de Traitement de GMG – 60% Caoutchouc (“ITCA”) FISH – 40% 2011 in Dabou Ivory Coast
Plantation operations
Processing Capacity (Mtpa)
Land bank (ha)
Plantable (ha)
58,365
33,000
55,000
45,000
25,000
-
1,560
1,406
36,000
-
-
20,000
Supply of raw materials for production Own plantation - 90% External parties – 10% Own plantation - 10% External parties – 90% External parties – 100%
PT Bumi Jaya Indonesia (South Kalimantan) Since 2007
51%
-
-
30,000
External parties – 100%
PT GMG Sentosa Indonesia (West Kalimantan) Since Jan 2010
75%
-
-
30,000
External parties – 100%
Teck Bee Hang Since Dec 2010
55%
-
-
200,000
External parties – 100%
104,925 ha 59,406 ha 371,000 mt 17
Rubber supply and demand Supply
Demand
About 70% of the world’s rubber demand is met by Thailand, Indonesia and Malaysia
China, currently consuming about 30% of world’s NR supply, will provide impetus for NR demand in 2012
ANRPC forecasted 10.297 million mt for 2012 with a view of lower y-o-y production of 9.5% from Thailand and Malaysia. Expected reduced rubber tapping activities due to dip in spot prices. (ANRPC April 2012 Natural Rubber Trends and Statistics)
Demand for NR driven by largely the tyre sector; which depends on tyre production and rubber weight per tyre
Long-term supply shortage Increasing trend of rubber plantations in major rubber producing countries making way for palm oil plantations, thus reducing supply of natural rubber
According to LMC International Rubber Bulletin April 2012, tyres sales expected to reduce further in 2012 from decreasing sales in second half of 2012
Growth of supply will be constrained by the limited arable land for rubber planting and the competitive crops such as palm oil, high labour cost and long production cycle
Tyre sales estimated on the original equipment tyre sales from number of vehicles produced and replacement tyre sales. The number of vehicles on the road may provide a gauge on replacement tyre demand 18
Rubber supply and demand 12,000 10,000
• 2009 consumption dipped by about 9% due to the recession. However, consumption recovered about 14% in 2010
8,000 6,000 4,000 2,000 0 1998
1999
2000
2001
2002
2003
2004
Natural rubber production Year
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Natural Rubber 6,634 6,577 6,762 7,332 7,326 8,020 8,746 8,904 9,791 9,801 10,036 9,617 10,384 10,699
Production Synthetic Rubber 9,880 10,390 10,870 10,483 10,877 11,341 11,961 12,100 12,653 13,387 12,743 12,087 13,987 14,400
2005
2006
2007
2008
2009
2010
2011
Natural rubber consumption Consumption
Total Rubber 16,514 16,967 17,632 17,815 18,203 19,361 20,707 21,004 22,444 23,188 22,779 21,704 24,371 25,099
Natural Rubber 6,570 6,650 7,340 7,333 7,556 7,952 8,718 9,200 9,677 10,144 10,173 9,390 10,765 10,584
Synthetic Rubber 9,870 10,280 10,830 10,253 10,874 11,348 11,840 11,900 12,691 13,264 12,603 11,754 13,845 14,390
Total Rubber 16,440 16,930 18,170 17,586 18,430 19,300 20,558 21,100 22,368 23,408 22,776 21,144 24,610 24,974
Source: International Rubber Study Group (IRSG) Rubber Statistical Bulletin
19
Rubber supply and demand • As seen in the graph in the previous slide, supply and demand is generally balanced
Tyres in China vs key tyre producing countries (million units)
1,461
1,449
512
546
2007
2008
1,544
1,605
776
832
2010
2011
• Synthetic rubber consumption remains constant at about 56% to 58% of total rubber consumption
1,321
655 2009
• On a longer term outlook, demand is expected to grow steadily • Increasing tyre production in China from 2007 to 2011 (Chart on the top left)
Total tyres in key tyre producing countries China's total tyre production
Key tyre producing countries include France, Germany, Italy, Japan, South Korea, USA and others
40 30
22.8 21.1
33.9 15.3 30.4 32.5 25.8 27.3 24.3
20 10
20 6.3
10 0
-2.5
5.5
-7.5
3.6
0.2
3.3
-10
2008 2009 2010 2011 2012 2015 2018 2020 Volume (Mil MT) Sources from IRSG and Bloomberg
0
Annual Growth %
Annual growth (%)
Volume (mil MT)
Consumption of total rubber
• Policies may affect demand for Chinese Light Vehicle (LV) tyres: • Motor vehicle tyres sold in EU must have performance certified in terms of fuel efficiency, braking and noise by November 2012 • Timely removal of US tariff on imports of Chinese LV tyres Sources: LMC International Rubber Bulletin April 2012 International Rubber Study Group Rubber Statistical Bulletin
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