2Q2019 Opportunity Day Thursday, September 5, 2019 Agenda - - PowerPoint PPT Presentation

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2Q2019 Opportunity Day Thursday, September 5, 2019 Agenda - - PowerPoint PPT Presentation

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2Q2019 Opportunity Day Thursday, September 5, 2019 Agenda Highlights GGC Going Forward Palm Oil Market Updates Financial Performance Page 2 Disclaimer This presentation includes forward-looking statements that are subject to risks and

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2Q2019 Opportunity Day

Thursday, September 5, 2019

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Agenda

Highlights GGC Going Forward Palm Oil Market Updates Financial Performance

Page 2

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Disclaimer

This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described

  • herein. This presentation contains a number of forward-looking statements including, in particular,

statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. GGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than

  • anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking

statements. Forward-looking statements represent estimates and assumptions only as of the date that they were

  • made. The information contained in this presentation is subject to change without notice and GGC

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.

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Key Highlights

2Q2019 Highlights

+ Natural FA price was being in the competitive range to synthetic FA price + FA Supply was tight due to plant shutdown in EU and China

+ ME plant 2 COD on April 5, 2019. + Mandate of B7 and optional B10 & B20 + Gov. delegated EGAT to purchase additional CPO 200 Ktons

  • n top of 160 Ktons in 1Q19 (EGAT has currently bought 220

Ktons) + CPO inventory level was less than 300,000 tons + Improved ME sales volume 24% YoY

  • Consolidated Adjusted EBITDA -49% YoY
  • ME Adjusted EBITDA -160% YoY

+ FA Adjusted EBITDA +27% YoY

  • High competition of ME led to narrow margin
  • Glycerine price drop from glut supply

ME Business Unit: FA Business Unit: Financial Performance:

  • ME plant 1 had turnaround for maintenance for 11 days
  • FA plant had shutdown for catalyst changing for 20 days

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

Plant Operation :

  • CPKO prices continue downward trend due to

high inventory in international market

Page 4

+ Returning inventory from supplier

Special Issue:

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5.13 4.87 4.84 5.13 4.85

2Q18 1Q19 2Q19 1H18 1H19 2Q18 1Q19 2Q19 1H18 1H19

25.03 20.74 21.17 24.85 20.96

2Q18 1Q19 2Q19 1H18 1H19

20.78 16.04 17.21 20.56 16.63 2Q18 1Q19 2Q19 1H18 1H19

2Q2019 Operation Highlights

ME (EPPO) : THB/Litre

METHYL ESTER (B100) BUSINESS UNIT

Biodiesel Mandate ME EPPO P2F : THB/Kg

GGC’s ME Operational Performance

B7 B7 B7 B7

CPO (DIT) : THB/Kg

ME Plant Utilization Rate

Note: In 2Q19, utilization rate calculated base on nameplate capacity 500,000 ton per year from ME1&ME2

B7

Note: Sales volume was calculated from ME1&ME2. In addition, the company couldn’t realize sales volume from ME2 because it was under test run for commercial operation in 1Q19, 2Q19 and 6M19 as follows; (1) In 1Q19, Sales volume from ME 2 = 15,678 tons (2) In 2Q19, Sales volume from ME 2 during 1-4 April, 19 = 1,615 tons (3) In 6M19. Sales volume from ME 2 = 17,293 tons

Page 5

90,100 94,703 111,590 192,854 206,293

2Q18 1Q19 2Q19 1H18 1H19

Sales Volume (Tons)

116 20

  • 70

296

  • 50

2Q18 1Q19 2Q19 1H18 1H19

Adjusted EBITDA (MB)

108% 102% 81% 113% 90%

2Q18 1Q19 2Q19 1H18 1H19

THB/Kg 2Q18 1Q19 2Q19 1H18 1H19 ME EPPO 28.94 23.98 24.48 28.72 24.23

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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465 573 599 442 586

2Q18 1Q19 2Q19 1H18 1H19

1,570 1,385 1,263 1,677 1,324

2Q18 1Q19 2Q19 1H18 1H19

921 677 554 1,029 615

2Q18 1Q19 2Q19 1H18 1H19

FATTY ALCOHOLS BUSINESS UNIT

CPKO (MPOB) : USD/Ton FA (ICIS) : USD/Ton

Natural Fatty Alcohols regained Competitiveness vs. Synthetic ones

FA Market P2F : USD/Ton

GGC’s FA Operational Performance

Plant Utilization Rate Crude Oil Price (WTI) : USD/BBL

2Q2019 Operation Highlights

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68 55 60 65 57

2Q18 1Q19 2Q19 1H18 1H19

Ethylene Price (USGC) : USD/Ton

582 614 534 626 574

2Q18 1Q19 2Q19 1H18 1H19

2,249 1,565 1,462 2,315 1,514 1,786 1,502 1,255 1,973 1,379

2Q18 1Q19 2Q19 1H18 1H19 30,209 24,798 24,245 54,444 49,043 2Q18 1Q19 2Q19 1H18 1H19

Sales Volume (Tons)

120% 111% 84% 110% 97%

2Q18 1Q19 2Q19 1H18 1H19

170 195 216 434 411

2Q18 1Q19 2Q19 1H18 1H19

Adjusted EBITDA (MB)

Synthetic FA (C1215) Price : USD/Ton Natural Mid Cut FA (C1214) Price : USD/Ton

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Agenda

Highlights GGC Going Forward Palm Oil Market Updates Financial Performance

Page 7

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Applications By Product Value Added to ME Plant 2 (RGL) CGL Captive use to produce RGL with higher value

ME Plant 2 Refined Gylcerine Plant 2 20 KTA Refined Glycerine Crude Glycerine

  • Integrated project with ME Plant 2
  • Enhance value of by-product, Crude Glycerine from ME production
  • Capture market growth of high volume industries

Refined Glycerine Plant 2 Project

Project Timeline 2Q/20 COD CAPEX 326 MB Awarded EPC 2Q/19 Progress:

1) Awarded EPC Contractor and Signed EPC Agreement 2) Start detail engineering work for construction 3) Completed to receive Long Lead Equipment from Licensor

Next Action:

1) Site preparation and soil compression work 2) Finish detail engineering work for construction 3) Start Tank Farm and Process Building foundation work 4) Procurement major equipment for OSBL

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GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Nakhonsawan Biocomplex

Integrated Complex to Produce Biofuel, Biochemicals, Bioplastics from Sugarcane and Electricity/Steam from Biomass

Crushing Mill Utility & Waste

Sugar cane

Phase 1

CAPEX

7,500 MB

(GGC Hold 50%)

Ethanol Plant

Cane Crushing Mill Capacity 24,000 tons/day

  • r 2.4 mm tons per year

Ethanol Plant Capacity 600,000 litres/day or 186 Mlitres/year Biomass Power Plant Capacity 85 MW Steam Capacity 475 Tons/hr

FID Project Timeline 1Q/21 COD 1Q/19 Progress:

▪ Completed Site preparation on May 2019. ▪ EIA (Amendment) has been approved on June 2019 ▪ In the process to awarded EPC contract. ▪ In the process to get BOI license and construction license (Ror. Ngor 4)

Next Action:

▪ To Award EPC and start construction after get license

Palm Oil Market Updates Financial Performance GGC Going Forward Highlights

Page 9

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Agenda

Highlights GGC Going Forward Palm Oil Market Updates Financial Performance

Page 10

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3Q19 Highlights of Palm Oil & Oleochemicals Market

ME Chain ME Price & Spread FA Price & Spread FA Chain

ME:

  • ME demand in 3Q19 will be influenced by;
  • Lower in biodiesel consumption due to rainy season

+ Government prolongs B20 subsidiary program at 5 THB/L from end

  • f Jul’19 to Sep’19

+ Consumption of B20 in Jun’19 = 122 ML/M + Consumption of B10 in Jun’19 = 0.33 ML/M

CPO:

  • Local CPO price is probably traded up side due to

+ Tight CPO supply due to low season + EGAT still has room to purchases CPO

  • Local CPO stock in Q3 is around 300,000 tons

FA:

  • Overall demand in 3Q19 will be influenced by;

+ FA Supply tight due to shutdown plant in Europe & China

  • Concerns of US vs China trade war
  • Depreciation of CNY/USD
  • CPKO price volatile

CPKO:

  • CPKO price will be traded side way due to
  • Uncertainty of demand from Oleochemicals
  • Stock level in Indonesia and Malaysia remains high

5.2 5.0 4.8 4.9 5.1 5.1 5.3 5.2 4.9 4.8 5.0 5.2 4.9 39.5 34.4 30.5 28.6 28.5 28.9 29.0 25.2 24.0 24.5 33.3 27.9 24.2 30.8 25.8 22.4 20.5 20.3 20.8 20.2 16.9 16.0 17.2 24.9 19.6 16.6 0.0 10.0 20.0 30.0 40.0 50.0 1Q172Q173Q174Q171Q182Q183Q184Q181Q192Q19 FY17 FY18 1H19 THB/KG Spread ME CPO 424 584 433 488 419 468 463 535 573 599 483 471 586 2,243 1,783 1,820 2,054 1,784 1,570 1,521 1,395 1,385 1,263 1,975 1,568 1,324 1,516 999 1,156 1,304 1,138 919 882 717 677 554 1,244 914 615 500 1,000 1,500 2,000 2,500 1Q172Q173Q174Q171Q182Q183Q184Q181Q192Q19 FY17 FY18 1H19 USD/T Spread FA CPKO

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GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Opportunity: Potential to increase Biodiesel blending rate

B20 Demand

  • MOEN reported B20 consumption in Jul’19 = 170 ML/M (increased by 39% from previous month)
  • Number of B20 gas station is expanded to 1,373 stations in Jul’19
  • Government also announced to prolong B20 subsidiary program at 5 THB/L until end of Sep’19 and will start to

subsidize at 3 THB/L as of Oct 1, 19

ML/Mth

B10 Demand

Consumption of B20

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  • MOEN reported B10 consumption in Jul’19 = 0.58 ML/M
  • B10 program is in early stage with 44 gas stations in Jul’19 and expected to expand up to 245 stations by the end of this year
  • B10 high pure is cheaper than B7 at 1 THB/L until end of Sep’19 and will start to subsidize at 2 THB/L as of Oct, 19.

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights 0.9 2.5 3.5 3.6 3.5 5.2 8.8 16.7 25.8 43.5 73.2 122.1 170.3 50 100 150 200 Jul'18 Aug'18 Sep'18 Oct'18 Nov'18 Dec'18 Jan'19 Feb'19 Mar'19 Apr'19 May'19 Jun'19 Jul'19

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Agenda

Highlights GGC Going Forward Palm Oil Market Updates Financial Performance

Page 13

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Consolidated Financial Performance

Sales Revenue (MB)

EBITDA & Adjusted EBITDA* (MB) / Adjusted EBITDA Margin* (%)

2Q19 2Q18 1Q19

ME EBITDA ME Adjusted EBITDA FA EBITDA FA Adjusted EBITDA Consolidated Adjusted EBITDA Margin

Net Profit (MB) & Net Profit Margin (%)

1H19

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1H18 2,690 1,714 2,325 5,464 4,039 1,546 1,102 965 3,403 2,067

4,236 2,816 3,290 8,867 6,106

2Q18 1Q19 2Q19 1H18 1H19

ME Business Unit FA Business Unit

106 116 2 20

  • 55
  • 70

269 296

  • 53
  • 50

31 170 139 195 143 216 79 434 282 411 137 286 141 215 88 146 348 730 229 361

6.8% 7.6% 4.4% 8.2% 5.9%

Note:. (1) In 2Q18, net profit was recorded -1,853 MB which was included tax income from deferred tax assets amounting to 84 MB and expenses from raw materials derogation amounting to 2,004 MB. (2) In 1H18, net profit was recorded -1,789 MB which was included tax income from deferred tax assets amounting to 84 MB and expenses from raw materials derogation amounting to 2,004 MB.

  • 1,853

22

  • 22
  • 1,789

2Q18 1Q19 2Q19 1H18 1H19

  • 43.7%

0.8%

  • 0.7%
  • 20.2%

0.0%

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Financial Position

Statements of Financial Position

Cash and Cash Equivalent Account Receivable, Inventory, and other Current Assets PP&E Non-current Assets Other Liabilities Interest Bearing Debt Shareholders’ Equities December 31, 2018 Baht 13,084million

Key Financial Ratios Repayment Plan Cash Flows

Million Baht

Million Baht Million Baht

528 935 (2,292) 2,575 1,745

*

*Cash from IPO was spent in ME2 project of 1,150 MB and WC 308 MB Ending Cash had not included short-term investment of 500 MB June 30, 2019 Baht 12,667 million

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7,923 11,073 9,708 9,730 9,708 2,689 2,400 2,120 2,121 1,953 FY16 FY17 FY18 1Q19 2Q19

0.3 0.2 0.2 0.2 0.2 1.8 2.1 2.3 2.5 2.4

169 441 567 765 2019 2020 2021 2022

2,387 659

  • 205

3,535

Beginning Cash Operating Cash Flows CAPEX & Investment Financing Ending Cash

694 GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Performance 2Q19 vs. 2Q18

Operating Profits

In 2Q19, operating profits was lower than 2Q18, mainly from these factors;

  • The lower profitability of ME due to aggressive market competition
  • A decrease in refined glycerine price regarding to supply glut
  • An increase in company’s expenses such as severance pay rate (300 days to 400 days), advisory fee for raw

material issue and maintenance expense for shutdown plants

  • Increasing of FA profitability due to high market P2F

Stock Gain/(Loss) & NRV

In 2Q19, the company recognized Stock Loss & NRV of 58 MB due to downward trend in CPO & CPKO prices. However, it was improved from 2Q18 by 91 MB due to improving inventory management.

Gain/(Loss) from FX

The company recorded FX loss of 2 MB in 2Q19 due to THB appreciated by 3.0%. While, FX gain of 44 MB in 2Q18 due to THB depreciated by 6.4%. Palm Oil Market Updates Financial Performance GGC Going Forward Highlights Net Profit : Million Baht

  • 1,853
  • 22

FX = -46 Others = -8

2Q18

Extra Item NI 2Q18 bef. Extra Items Operating Profits Stock Loss & NRV FX & Others NI 2Q19 bef. Extra Items Extra Item

2Q19

Extra Items

In 2Q19, the company had an extraordinary item from returning inventory from supplier of THB 14 MB. While, in 2Q18, the company recorded extraordinary items from inventory derogation incident of THB 1,920 MB.

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GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Performance 2Q19 vs. 1Q19

Operating Profits

In 2Q19, operating profits was lower than 1Q19, attributed to the lower EBITDA of methyl ester business due to increasing of company’s expenses as follow;

  • The severance pay rate (300 days to 400 days)
  • The advisory fee for raw material procurement process issue
  • Increasing of maintenance expense for shutdown plants

Stock Gain/(Loss) & NRV

In 2Q19, the company recognized Stock Loss & NRV of 58 MB while recorded Stock Loss & NRV of 74 MB in 1Q19, primarily due to CPO price upward.

Palm Oil Market Updates Financial Performance GGC Going Forward Highlights

Extra Items

In 2Q19, the company had an extraordinary item from returning inventory from supplier of THB 14 MB while recorded in 1Q19 of THB 2 MB.

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Net Profit : Million Baht

22

  • 22

1Q19

Extra Item NI 1Q19 bef. Extra Items Operating Profits Stock Loss & NRV FX & Others NI 2Q19 bef. Extra Items Extra Item

2Q19

20

GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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Performance 1H19 vs. 1H18

Operating Profits

In 1H19, operating profits was lower than 1H18, mainly from these factors;

  • The lower profitability of ME due to aggressive market competition
  • A decrease in refined glycerine price regarding to supply glut and
  • An increase in company’s expenses such as severance pay rate (300 days to 400 days), advisory fee for raw

material procurement process issue and maintenance expense for shutdown plants

Stock Gain/(Loss) & NRV

In 1H19, the company recognized Stock Loss & NRV of 132 MB due to downward trend in CPO & CPKO

  • prices. However, it was improved from 1H18 by 250 MB due to improving inventory management.

Gain/(Loss) from FX

In 1H19, the company recorded FX loss of 5 MB due to THB appreciated by 5%. While, FX gain of 17 MB in 1H18 due to THB depreciated by 2.3%

Net Profit : Million Baht

  • 1,789

1H18

Extra Items NI 1H18 bef. Extra Items Operating Profits Stock Loss & NRV FX & Others NI 1H19 bef. Extra Items Extra Items

1H19

FX = -22 Others = -6

Extra Item

In 1H19, the company had an extraordinary item from returning inventory from supplier of THB 16 MB. While, in 1H18, the company recorded extra items from inventory derogation incident of THB 1,920 MB.

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GGC Going Forward Palm Oil Market Updates Financial Performance Highlights

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T H A N K Y O U

Global Green Chemicals Public Company Limited

555/1 , Energy Complex, Building A, 4th Floor, Vibhavadi Rangsit Road, Chatuchak, Chatuchak, Bangkok 10900, Thailand Tel: +66(0) 2 558 7306 Tel: +66(0) 2 558 7345 Fax: +66(0) 2 558 7301 www.ggcplc.com

For further information or enquiries, please contact our Investor Relations Team : ir@ggcplc.com

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Appendix

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Palm Oil & Oleochemicals Market

14.76

CPKO CPO

2016 2017 2018

Glycerine

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29.6 30.1 29.0 32.3 33.9 33.5 37.5 34.0 31.1 30.0 29.6 30.8 31.4 32.0 29.0 26.9 26.8 23.8 23.1 22.1 22.1 21.6 20.7 19.1 19.1 21.3 20.4 19.0 20.2 23.2 21.6 20.1 19.0 17.9 16.2 16.7 17.0 16.3 15.3 16.5 19.8 15.00 20.00 25.00 30.00 35.00 40.00 45.00 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 924.0 1,002.0 1,156.0 1,286.0 1,205.0 1,304.0 1,276.0 1,438.0 1,481.0 1,375.0 1,515.0 1,625.0 1,776.0 1,584.0 1,188.0 950.0 1,065.0 982.0 989.0 1,126.0 1,352.0 1,332.0 1,338.0 1,243.0 1,256.0 1,148.0 1,009.0 985.0 916.0 854.0 871.0 903.5 871.2 777.3 668.3 705.8 748.9 679.4 601.7 569.6 557.1 533.9

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 200 400 600 800 1000 1200 1/1/2016 1/2/2016 1/3/2016 1/4/2016 1/5/2016 1/6/2016 1/7/2016 1/8/2016 1/9/2016 1/10/2016 1/11/2016 1/12/2016 1/1/2017 1/2/2017 1/3/2017 1/4/2017 1/5/2017 1/6/2017 1/7/2017 1/8/2017 1/9/2017 1/10/2017 1/11/2017 1/12/2017 1/1/2018 1/2/2018 1/3/2018 1/4/2018 1/5/2018 1/6/2018 1/7/2018 1/8/2018 1/9/2018 1/10/2018 1/11/2018 1/12/2018 1/1/2019 1/2/2019 1/3/2019 1/4/2019 1/5/2019 1/6/2019 Spread(USD/Ton) RGL(USD/Ton) CGL(USD/Ton)

2019

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Methyl Ester Business 2Q2019 2Q2018 % YoY 1Q2019 % QoQ 1H2019 1H2018 % YoY

Utilization (%)

81%(1) 108%

  • 27%

102%

  • 21%

90% 113%

  • 23%

Sales Volume (ton)(2)

111,590(4) 90,100 24% 94,703(3) 18% 206,293(5) 192,854 7%

Sales Volume (million litre)(6)

129 104 24% 109 18% 238 223 7%

Sales Revenue (million baht)

2,325 2,690

  • 14%

1,714 36% 4,039 5,464

  • 26%

EBITDA (million baht)

  • 55

106

  • 152%

2

  • 2,850%
  • 53

269

  • 120%

EBITDA margin (%)

  • 2.4%

3.9%

  • 6.3%

0.1%

  • 2.5%
  • 1.3%

4.9%

  • 6.2%

Stock Gain/(Loss) & NRV(million baht)

15

  • 10
  • 250%
  • 18
  • 183%
  • 3
  • 27

89%

Adjusted EBITDA (million baht)(7)

  • 70

116

  • 160%

20

  • 450%
  • 50

296

  • 117%

Adjusted EBITDA Margin (%)

  • 3.0%

4.3%

  • 7.3%

1.2%

  • 4.2%
  • 1.2%

5.4%

  • 6.6%

Key Performance By Business Unit

Note: (1) Nameplate Capacity 500,000 tons per year from ME1 & ME2 (2) Methyl Ester sales volume shown in table has already included sales volume from methyl ester plant 2. (3) In 1Q/2019, GGC had sales volume from methyl ester plant 2 of 15,678 tons. However, the company could only realize the total sales volume from methyl ester plant 1 because methyl ester plant 2 was under testing run for commercial operation. (4) In 2Q/2019, GGC noticed the commercial operating of methyl ester plant 2, on April 5, 2019, as a result, sales volume of methyl ester during April 1-4, 2019 amounting to 1,615 tons could not be recorded in profit/loss statement. (5) In 1H/2019, GGC had sales volume from methyl ester plant 2 of 17,293 tons which could not be recorded in profit/loss statement because it was under testing run for commercial operation. (6) Conversion ratio: 0.865 Tons = 1,000 Liters (7) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV

Page 22

METHYL ESTER (B100) BUSINESS UNIT

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Fatty Alcohols Business 2Q/2019 2Q/2018 % YoY 1Q/2019 % QoQ 1H/2019 1H/2018 % YoY Utilization (%) 84% 120%

  • 36%

111%

  • 27%

97% 110%

  • 13%

Sales Volume (Ton) 24,245 30,209

  • 20%

24,798

  • 2%

49,043 54,444

  • 10%

Revenue from Sales (million baht) 965 1,546

  • 38%

1,102

  • 12%

2,067 3,403

  • 39%

EBITDA (million baht) 143 31 361% 139 3% 282 79 257% EBITDA margin (%) 14.8% 2.0% 12.8% 12.6% 2.2% 13.6% 2.3% 11.3% Stock Gain/(Loss) & NRV

  • 73
  • 139

47%

  • 56
  • 30%
  • 129
  • 355

64% Adjusted EBITDA (million baht)(1) 216 170 27% 195 11% 411 434

  • 5%

Adjusted EBITDA Margin (%) 22.4% 11.0% 11.4% 17.7% 4.7% 19.9% 12.8% 7.1%

Key Performance By Business Unit

FATTY ALCOHOLS BUSINESS UNIT Note: (1) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV

Page 23

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MB % MB % MB % MB % MB % MB % MB % MB % Sale Revenue 3,290 100 4,236 100 (946) (22) 2,816 100 474 17 6,106 100 8,867 100 (2,761) (31) Feedstock (2,388) (73) (3,285) (78) 897 (27) (1,975) (70) (413) 21 (4,363) (71) (6,807) (77) 2,444 (36) Net Realizable Value (NRV) 10 0 - 0 10 n.a. (7) (0) 17 (243) 3 0 2 0 1 50 Product to Feed Margin 912 28 951 22 (39) (4) 834 30 78 9 1,746 29 2,062 23 (316) (15) Variable Costs (486) (15) (485) (11) (1) 0 (403) (14) (83) 21 (889) (15) (980) (11) 91 (9) Fixed Costs (177) (5) (130) (3) (47) 36 (133) (5) (44) 33 (310) (5) (256) (3) (54) 21 Stock Gain/(Loss) (68) (2) (149) (4) 81 (54) (67) (2) (1) 1 (135) (2) (384) (4) 249 (65) SG&A (107) (3) (83) (2) (24) 29 (112) (4) 5 (4) (219) (4) (155) (2) (64) 41 Other Income 14 0 33 1 (19) (58) 22 1 (8) (36) 36 1 61 1 (25) (41) EBITDA 88 3 137 3 (49) (36) 141 5 (53) (38) 229 4 348 4 (119) (34) Depreciation and Amortization (131) (4) (133) (3) 2 (2) (111) (4) (20) 18 (242) (4) (272) (3) 30 (11) EBIT (43) (1) 4 0 (47) (1,175) 30 1 (73) (243) (13) (0) 76 1 (89) (117) Net Financial Costs (4) (0) (8) (0) 4 (50) (4) (0) - n.a. (8) (0) (13) (0) 5 (38) FX Gain/Loss(1) (2) (0) 44 1 (46) (105) (3) (0) 1 (33) (5) (0) 17 0 (22) (129) Share of Profit/(Loss) from investment 16 0 27 1 (11) (41) 1 0 15 1,500 17 0 47 1 (30) (64) Income Tax Expenses (3) (0) - - (3) n.a. (4) (0) 1 (25) (7) (0) 4 0 (11) (275) Net Profit bef extra items (36) (1) 67 2 (103) (154) 20 1 (56) (280) (16) 0 131 1 (147) (112) Item from raw materials derogation 14 0 (2,004) (47) 2,018 (101) 2 0 12 600 16 0 (2,004) (23) 2,020 (101) Tax income from deferred tax assets

  • - 84 2 (84) (100)
  • - -

n.a.

  • - 84 1 (84) (100)

Extra item net of tax(2) 14 0 (1,920) (45) 1,934 (101) 2 0 12 600 16 0 (1,920) (22) 1,936 (101) Net Profit after extra items (22) (1) (1,853) (44) 1,831 (99) 22 1 (44) (200) 0 (1,789) (20) 1,789 (100) QoQ 1H2019 1H2018 YoY 2Q2019 2Q2018 YoY 1Q2019

Consolidated Income Statement

Notes : (1) Including Gain/(Loss) from FX and Derivatives (2) Extra items were the items from raw material derogation and tax income from deferred tax assets

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