1Q20 Financial Results CMAN Operations Over 1 million tons per - - PowerPoint PPT Presentation

1Q20 Financial Results

Chememan Analyst Presentation Q1-2020

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CMAN

Operations Over 1 million tons per year

Chememan Analyst Presentation Q1-2020

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• Sales revenue rose to 653 MB with recognition of sales from Ha Long QN

Lime (HLL).

• Gross Profit increased to 33.5% from transportation cost reduction and

Baht depreciation.

• EBITDA at 142 MB grew QoQ by 79.4%, with EBITDA margin at 21.8%
• Net Profit at 32 MB, compared to net loss of 4 MB in previous quarter
• Interim dividend for year-end period of 2019 declared at Baht 0.02 per

share, paid on 14 May 2020.

Key Highlights of 1Q20

Chememan Analyst Presentation Q1-2020

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1Q20 Profit & Loss Statement

Unit : Million Baht 1Q20 4Q19 1Q19 %QoQ %YoY Sales Revenue 653 616 612 +6.1% +6.8% Cost of Sales (not include depreciation & amortization) (357) (350) (353) +1.9% +1.1% Transportation cost (117) (132) (116)

• 11.1%

+1.1% Gross Profit (net transportation cost and depreciation & amortization) 179 134 143 +34.0% +25.2% Gross Profit Margin (net transportation cost and depreciation & amortization) (%) 33.5% 27.7% 28.9% Other income 10 7 3 +41.6% +258.1% Selling expenses (19) (14) (9) +39.9% +123.1% Administrative expenses (51) (57) (42)

• 10.0%

+22.2% Gain (Loss) on exchange rate 28 1 (6) +2,237.3%

• 591.5%

Gain (Loss) on forward contract (4) (0) N/A +985.1% Non-cash expenses (1) 8 2

• 111.3%
• 142.4%

EBITDA 142 79 92 +79.4% +55.4% Adjust : (a) Gain (Loss) on exchange rate (28) (1) 6 +2,237.3%

• 591.5%

Adjust : (b) Gain (Loss) on forward contract 4 N/A +985.1% Adjust : (c) Cost incurred by temporary shutdown of kiln for maintenance 1 1 1

• 11.8%
• 35.1%

Normalized EBITDA 119 79 99 +50.7% +20.3% Normalized EBITDA Margin (%) 18.2% 12.8% 16.2% Depreciation & Amortization (76) (59) (49) +27.8% +55.3%

Depreciation & Amortization – Cost of sales (69) (55) (45) +25.0% +53.1% Depreciation & Amortization – Administrative expenses (7) (4) (4) +66.2% +82.2%

Finance costs (28) (18) (10) +59.4% +187.0% Interest received 1 2 1

• 6.8%

+162.5% Share of loss from investment in joint ventures 3 (2) (1)

• 229.0%
• 327.3%

Gain (Loss) on tax (12) 2 2

• 584.1%
• 647.9%

(Profit) Loss attributable to non-controlling interests of the subsidiary 6 3 +145.6% +1,801.0% Normalized Net Profit attributable to equity holders of the company 14 6 42 +123.4% +32.8% Normalized Net Profit Margin attributable to equity holders of the company (%) 2.1% 1.0% 6.9% (a) Gain (Loss) on exchange rate 28 1 (6) +2,237.3%

• 591.5%

(b) Gain (Loss) on forward contract (4) (0) N/A +985.1% (c) Cost incurred by temporary shutdown of kiln for maintenance (1) (1) (1)

• 11.8%
• 35.1%

(d) Non-cash expenses 1 (8) (2)

• 111.3%
• 142.4%

Profit (Loss) attributable to equity holders of the company 38 (1) 33

• 3,331.4%

+16.5% Profit (Loss) attributable to non-controlling interests of the subsidiary (6) (3) (0) +145.6% +1,801.0% Net Profit (Loss) 32 (4) 32

• 959.9%
• 1.5%

Net Profit (Loss) Margin (%) 5.9%

• 0.8%

6.5% Earnings (Loss) per share (baht) 0.04 0.00 0.03

Chememan Analyst Presentation Q1-2020

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Domestic Vs. International Sales

Unit : THB million

Sales Revenues

Unit : MT

Sales Quantities

1Q19 2Q19 3Q19 4Q19 1Q20 Domestic International

561 612 55% 45% 653 58% 58% 42% 42% 584 60% 40% 616 64% 36%

1Q19 2Q19 3Q19 4Q19 1Q20 Domestic International

329,368 456,383 38% 62% 33% 67% 303,842 29% 71% 72% 28% 365,612 464,604 60% 40%

Chememan Analyst Presentation Q1-2020

Mining, 38% Pulp - Paper - and PCC, 14% Sugar 13% Building Construction and Roadways, 11% Chemicals, 6% Fiber glass, 4% Agriculture, 3% Bio-plastic, 3% Environment, 3% Iron and Steel, 2% Glass & Bottle, 2% Others, 0% 6

Customer Segmentation 1Q20

Gold Mining, 35%

Chememan Analyst Presentation Q1-2020

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EBITDA & Net Profit

99 81 71 79 119 16.2% 14.4% 12.1% 12.8% 18.2%

1Q19 2Q19 3Q19 4Q19 1Q20 Normalized EBITDA Normalized EBITDA Margin

Net Profit

Unit : THB million

Normalized Net Profit (attributable to equity holders of the company)

Unit : THB million

EBITDA

Unit : THB million

Normalized EBITDA

Unit : THB million

92 64 54 79 142 15.0% 11.4% 9.3% 12.9% 21.8%

• 10.0%

1Q19 2Q19 3Q19 4Q19 1Q20 EBITDA EBITDA Margin 32 (9) (23) (4) 32 6.5%

• 1.9%
• 4.8%
• 0.8%

5.9%

• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

1Q19 2Q19 3Q19 4Q19 1Q20 Net Profit Net Profit Margin 42 24 1 6 14 6.9% 4.2% 0.1% 1.0% 2.1%

• 40.0%
• 35.0%
• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

1Q19 2Q19 3Q19 4Q19 1Q20 Normalized Net Profit Normalized Net Profit Margin

Chememan Analyst Presentation Q1-2020

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Balance Sheet

2,253 2,188 2,138 2,199 2,235 1,318 1,493 1,629 2,628 2,833 343 335 415 775 732

1Q19 2Q19 3Q19 4Q19 1Q20 Equities Interest Bearing Debt Others 877 950 1,039 1,149 1,173 3,037 3,066 3,144 4,453 4,627 1Q19 2Q19 3Q19 4Q19 1Q20 Current Asset Non-Current Asset

Asset (THB million) Liabilities & Equity (THB million)

3,914 4,016 4,182 5,602 5,800 3,914 4,016 4,182 5,602 5,800

Chememan Analyst Presentation Q1-2020

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Unit : THB million

Sources of Fund Uses of Fund

Cashflow from operation 142 Acquisition of Property, Plant & Equipment 51 Long-term loan received 200 Acquisition of intangible assets 15 Short-term loan received 31 Increase in working capital 70 Interest income & others 9 Interest and fee payment 27 Income tax paid 1 Investment in Joint Ventures 6 Long-term loan repayment 99 Other debt repayment 9 Increase in cash 91 Exchange Translation 13 SOURCE OF FUND 382 USE OF FUND 382 Beginning Cash 215 Ending Cash 306

Sources & Uses of Fund

Chememan Analyst Presentation Q1-2020

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Key Financial Ratios

Interest-bearing Debt to Equity ratio

Unit : times

Current ratio

Unit : times

1.54x 1.56x 1.20x 0.69x 0.67x 1Q19 2Q19 3Q19 4Q19 1Q20 0.59x 0.68x 0.76x 1.20x 1.27x 1Q19 2Q19 3Q19 4Q19 1Q20

Chememan Analyst Presentation Q1-2020

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FX: THB against USD & AUD

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17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 30.00 30.50 31.00 31.50 32.00 32.50 33.00 33.50 34.00

1Q19 22.91 2Q19 22.49 1Q18 31.71 2Q18 32.12 3Q18 33.15 1Q19 31.79

USD AUD

2Q19 31.74 3Q18 24.52 2Q18 24.54 4Q18 23.93 4Q18 32.99 1Q18 25.19 3Q19 30.88 3Q19 21.42 4Q19 30.45 4Q19 21.04 1Q20 31.45 1Q20 20.96

Chememan Analyst Presentation Q1-2020

Business Expansion Update

Project Location Owner ship Estimated Investment Installed Capacity (MT/year) Commercial Operation Date India SIRIMAN CHEMICALS INDIA PRIVATE LIMITED Joint venture Lime manufacturing and distributing company Visakhapatnam, Andhra Pradesh 50% 61.3 MB 109,500 of Quicklime Q3 2020 87,600 of Hydrated Lime Vietnam HA LONG QN LIME COMPANY LIMITED Indirect Subsidiary Lime manufacturing and distributing company with limestone mining concession Quang Ninh, Vietnam 80% 454.9 MB 219,000 of Quicklime 20 November 2019 120,000 of Hydrated Lime EASTERNBULK LIME PRODUCTS PRIVATE LIMITED Joint venture Quicklime manufacturing and distributing company Tuticorin, Tamil Nadu 50% 137.6 MB 47,450 of Quicklime 10 July 2019 73,000 of Ground Limestone CALMIX COMPANY LIMITED Joint venture, to develop, manufacture and distribute construction materials Saraburi, Thailand 51% 30.6 MB Y 2020

Thailand Project Location Ownership Estimated Investment Commercial Operation Date 12

Chememan Analyst Presentation Q1-2020

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51% Joint Venture in Thailand

CalMix Co., Ltd.

CalMix Co., Ltd.

• Construction & Installation :
• Feeding raw materials into Silos
• System testing and obtaining mixing formula in Jan 2020
• Product testing start in Jan 2020
• Commercial operation estimated on : Y2020
• Installed capacity : max. 100,000 tons/year (For the

1st phase, the operating capacity will be 10,000 tons/year)

Chememan Analyst Presentation Q1-2020

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Easternbulk Lime Products Private Limited

50% Joint Venture in Tuticorin, India

Easternbulk Lime Products Private Limited

• Construction & Installation completed
• Commercial operation commenced on

10 July 2019

• Installed capacity of quicklime production

: 47,450 tons per year

• Currently run at full production capacity,

generating net profit since beginning of 2020.

Chememan Analyst Presentation Q1-2020

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Siriman Chemicals India Private Limited

50% Joint Venture in Visakhapatnam, India

Siriman Chemicals India Private Limited

• Kiln machinery installation progress 90% and refractory

installation expected to start in June.

• Coal grinding mill building completed. Machinery

installation progress 80% .

• QL handling civil works progress 90%
• Commercial operation expected to commence in

Q3 2020.

Chememan Analyst Presentation Q1-2020

Ha Long QN Lime Company Limited

80% Indirect Subsidiary in Quang Ninh, Vietnam

Ha Long QN Lime Company Limited

• A multi-member limited liability company established

since 3 August 2018

• Locate in Quang Ninh Province, near Hai Phong Port
• Operate limestone mining and manufacturing of lime

products

• Mineral exploitation license, expire on 11 May 2046
• CMAN acquired 80% capital contribution via

Northman Company Limited on 20 November 2019

• Kiln improvement during Q1 2020 – Q3 2020, thus

not running at its full capacity

Chememan Analyst Presentation Q1-2020

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Disclaimer

The information contained in our presentation is intended solely for reference only. Please do not circulate this

• material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any

action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of CMAN's activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. The information contained in this presentation is subject to change without notice and CMAN does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.