Analyst Conference Q1/16 Wednesday, April 27, 2016 AGENDA I. - - PowerPoint PPT Presentation

Analyst Conference Q1/16

Wednesday, April 27, 2016

2

AGENDA

• I. Consolidated Results
• Q1/16 Consolidated Results
• Financial Updates

II. SCG Cement - Building Materials

• III. SCG Chemicals
• IV. SCG Packaging
• V. Summary

3

Revenue from Sales

Q1/16 revenue was relatively sideways y-o-y, and gained +4% q-o-q following the seasonal effect in the cement – building materials business.

+1% y-o-y +4% q-o-q

121,765 124,795 124,275 116,710 109,276 113,818 110,898 105,622 109,998

30,000 60,000 90,000 120,000 150,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 MB

4

NOTE: EBITDA = EBITDA from Operations + Dividend from Associates

EBITDA

Healthy chemicals spreads were the main drivers towards the EBITDA growth of +17% y-o-y and +8% q-o-q.

15,071 15,826 14,203 16,048 18,131 23,281 18,982 18,952 21,116 393 1,189 1,876 1,887 284 1,983 98 979 381 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 27,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 MB

15,464 17,015 16,079 17,935 18,415 25,264

Dividend from Associates

EBITDA

EBITDA from Operations

+17% y-o-y +8% q-o-q +16% y-o-y +11% q-o-q

19,931 19,080 21,497

5

Equity Income

Contributions from chemicals associates were the key factors of the +73% y-o-y and +75% q-o-q gains.

+73% y-o-y +75% q-o-q

1,047 672 533 1,061 752 747 717 878 956 678 445 1,107 565 1,495 2,900 1,456 1,348 2,942 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Chemicals Non-Chemicals

MB

1,725 1,117 1,640 1,626 2,247 3,647 2,173 2,226 3,898

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*Note: SCG Chemicals (Sub + Asso.)

Key Non-recurring 460 (30) 700 (2,710) 1,020 700 (3,630) 1,320 280

1) FX Gain (Loss) (170) 680 130 460 (270) (420) (1,050) 510 490 2) Inventory Gain (Loss)* 180 (80) (130) (2,960) (930) 970 (2,160) 330 (300) 3) Insurance Claim (Sub + Asso.) 450 50 150 120 90 4) Others 1,490 480

+22% y-o-y +18% q-o-q

• 3,000

3,000 6,000 9,000 12,000 15,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 MB

8,381 8,532 7,846 8,856 11,073 13,877 9,001 11,449

Profit for the Period

Profitability was a healthy 13,488 MB, as a result of the solid chemicals earnings which accounted for 66% of SCG’s total Q1/16 profitability.

13,488

7

Segmented Revenue from Sales

The chemicals business accounted for 44% of Revenue in Q1/16.

Q1/16

Cement- Building Materials 39% Packaging 17% Chemicals 44%

Q1/15

Cement- Building Materials 40% Packaging 16% Chemicals 44%

47,081 47,956 17,111 45,880 47,810 18,847 10,000 20,000 30,000 40,000 50,000 MB

Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Cement - Building Materials Chemicals Packaging

8

Segmented Profit for the Period

The growth was from the chemicals business which accounted for 66% of the Q1/16 earnings.

(Mainly SCG Investment and Corporate)

3,558 4,938 878 1,765 3,290 8,980 1,255 40 2,000 4,000 6,000 8,000 10,000 MB

Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Cement - Building Materials Chemicals Packaging Others Sub. 6,038 Sub. 3,443

Q1/15 Q1/16

Other 16% Chemicals Equity Income 13% Chemicals Subsidiaries 31%

Cement- Building Materials 32%

Packaging 8% Chemicals Equity Income 22% Chemicals Subsidiaries 44% Cement- Building Materials 25% Packaging 9% Eq Inc. Eq Inc.

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61% 61% 10% 12% 12% 11% 17% 16% 0% 20% 40% 60% 80% 100% Q1/15 Q1/16

ASEAN 44% ASEAN 41%

China/HK, 24% China/HK, 22%

• S. Asia, 8%
• S. Asia, 10%
• N. Asia, 7%
• N. Asia, 7%

Others, 17% Others, 20%

0% 20% 40% 60% 80% 100% Q1/15 Q1/16

Segments: Export Sales and ASEAN Operation

ASEAN exports and ASEAN operations accounted for 23% in Q1/16, compared to 22% in Q1/15.

% of Sales 29% 27%

Sales Destinations

23% Domestic

ASEAN Operation Export to ASEAN Export to Others

Export Destinations

22%

32,242 MB 29,570 MB

109,998 MB 109,276 MB

10

20,000 40,000 60,000 80,000 100,000 120,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 Export to ASEAN ASEAN Operation

Percentage of total sales from ASEAN Operations:

3% 5% 5% 7% 7% 7% 8% 9% 9% 11% 12%

ASEAN Sales

Segments: Export Sale and ASEAN Operation

Sales to ASEAN (exports and localized operations) grew slightly y-o-y and reached 24,396 MB in Q1/16 (Thai Baht term).

MB

30,936 37,496 43,923 40,566 51,750 61,213 74,465 85,537 100,912 100,150

Vietnam 30% Indonesia 28% Cambodia 13% Myanmar 10% Philippines 9% Other ASEAN 10%

ASEAN Sales by countries

Export to ASEAN by countries ASEAN Operation by countries

Vietnam 42% Indonesia 29%

Cambodia 14% Philippines 12% Myanmar 1% Other ASEAN 2% Indonesia 26% Myanmar 20% Vietnam 16% Cambodia 12% Malaysia 10% Laos 7% Philippines 6% Singapore 3%

(+1% y-o-y)

24,396

11

HVA’s Revenue from Sales

Consolidated:

Business 2013 2014 2015 Q1/16 Cement-Building Materials 41% 42% 41% 41% Chemicals 27% 27% 31% 32%

Chemicals (Includes associates)

50% 50% 53% 55%

Packaging 38% 39% 39% 43% 50,000 100,000 150,000 200,000 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16

HVA as a % of 4% 17% 19% 25% 29% 32% 34% 35% 35% 37% 39% Revenue from Sales

MB

$200m 149,924 136,762 117,992 85,768 59,461 54,865 38,837 7,783 169,071 161,851 $1.2 billion

(+3% y-o-y)

42,262

12

R&D Spending

55% 33% 9% 3% Cement- Building Materials Packaging Chemicals Others

SBU:

% R&D SPENDING ON SALES: 0.3% 0.4% 0.5% 0.6% 0.8% 0.8%

40 370 720 880 921 1,111 1,430 2,068 2,710 3,510 909 1,000 2,000 3,000 4,000 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16

MB

$1m $25m

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AGENDA

• I. Consolidated Results
• Q1/16 Consolidated Results
• Financial Updates

II. SCG Cement - Building Materials

• III. SCG Chemicals
• IV. SCG Packaging
• V. Summary

14

EBITDA on Assets, and EBITDA Margin

EBITDA on Assets = EBITDA / Consolidated Assets EBITDA margin = EBITDA from Operations / Consolidated Sales

Percent (%) EBITDA Margin (%):

23 27 23 22 22 23 26 22 19 16 14 18 14 11 10 13 13 18 19

EBITDA on Total Assets

14 16 16 17 18 21 29 27 26 20 14 15 13 12 12 14 14 16 16 5 10 15 20 25 30 35

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16

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Net Debt

Leverage registered 1.8 times (x), on healthy EBITDA and lower net debt.

243.5 197.1 178.0 175.7 148.4 126.3 114.9 100.6 100.5 103.0 99.9 120.5 122.0 83.6 112.1 137.6 157.8 164.4 162.5 151.7

9.2 7.7 6.4 5.8 5.1 4.1 3.1 1.8 1.9 1.8 2.0 3.1 2.6 1.8 2.4 3.0 2.6 2.5 2.0 1.8

1 2 3 4 5 6 7 8 9 10 50 100 150 200 250

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16

Billion Baht

(Net Debt)

Times (x)

(Leverage)

Net Debt to Equity = 0.6x Net Debt on EBITDA

16

• CAPEX includes debottlenecking, expansion projects, and major turnaround.
• Investments are acquisitions and purchase of shares.

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16

Billion Baht

10.0 3.5 10.3 8.5 5.7 11.9 14.0 19.1 23.6 27.2 42.4 34.5 18.4 32.0 47.0 50.0 45.0 45.2

CAPEX & Investments

Amounted to 10,357 MB in Q1/16, which was mainly from the greenfield & expansion in the cement-building materials business.

Efficiency Projects 22% Others 3% Greenfield & Expansion 44% Maintenance 10%

Q1/16

SBU: Types:

69% 14% 13% 4% Others Cement- Building Materials Packaging Chemicals Investment 21% 10.4

17

Interest and Finance Costs

Amounted to a total of 1,550 MB which includes a FX gain of 490 MB, while interest cost was 3.9% at the end of Q1/16.

NOTE: Interest & financial charges include FX gain/loss transactions.

FX gain (loss): 660 940 (690) 640 (770) 490

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/15

MB

15,006 12,995 14,030 11,487 10,038 8,101 5,878 4,762 5,169 5,273 6,089 5,649 4,670 6,048 6,321 8,193 7,266 9,076 1,550

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Financial Highlights & Outlook

Highlights:

• Net Working Capital was relatively sideways at 60,731 MB, with Inventory to Net Sales
• f 42 days, from 41 days in Q4/15.
• Cash & cash under management of 44,436 MB at the end of Q1/16.
• Full subscription to the Apr 1/16 debenture issuance of 25 Billion Baht (4-years, 3.0%)

which replaced the 25 Billion Baht matured debenture (4-year, 4.15%).

Outlook:

• Solid financial position.
• FY2016 CAPEX & Investments of approximately 50,000 MB, with focus on M&A.
• FY2016 depreciation of approximately 24,000 MB, up 3,000 MB y-o-y.

.

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AGENDA

• I. Consolidated Results
• Q1/16 Consolidated Results
• Financial Updates

II. SCG Cement - Building Materials

• III. SCG Chemicals
• IV. SCG Packaging
• V. Summary

20

Revenue from Sales

Sales in Q1/16 decreased -3% y-o-y as a result of strong competition in domestic market.

International Domestic 65% 63% 65% 62% 64% 35% 37% 35% 38% 36%

10,000 20,000 30,000 40,000 50,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 MB

47,081 45,663

• 3% y-o-y

+8% q-o-q 43,570 42,674 45,880

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EBITDA Margin * Total 15% 14% 13% 12% 15% International 10% 11% 10% 8% 10% Domestic 18% 16% 14% 15% 17%

Domestic Structural Prod. 27% 24% 22% 21% 25%

EBITDA Portion International 24% 29% 28% 24% 24%

EBITDA and Profit for the Period

Q1/16 EBITDA dropped -5% y-o-y, mainly attributed to the lower y-o-y domestic cement prices.

7,170 6,435 5,590 5,200 6,845 3,558 2,896 2,073 1,723 3,290 2,000 4,000 6,000 8,000 10,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 MB

EBITDA Profit for the period

• 8% y-o-y

+91% q-o-q

• 5% y-o-y

+32% q-o-q

Note: * EBITDA margin = EBITDA from Operations, excludes divided from associates.

22

Q1/16 Domestic market insight

• Cement demand grew +5% y-o-y in Q1/16, driven mainly by the growth in the

government related projects.

• Ready-mixed concrete (RMC) demand grew +6% y-o-y in Q1/16, but prices

dropped y-o-y to the range of 1,650 – 1,700 baht per cubic meter.

• Demand for housing products (roof ceiling & wall) in Q1/16 was flat y-o-y,

while demand for ceramic tiles dropped -5% y-o-y.

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Domestic sales segmentation

Q1/16 domestic sales in Thailand declined -5%, due to the lower domestic cement prices and trading of non-SCG products.

Grey Cement, 22% RMC 23% Others 5%

Housing Products, 17%

Ceramics 14% Logistic and Others, 19%

29,148 MB (-5% y-o-y) Domestic Sales (Q1/16)

22% 21% 20% 21% 22% 22% 22% 25% 25% 23%

5% 5% 5% 5% 5%

17% 17% 16% 15% 17%

14% 14% 14% 14% 14% 20% 21% 20% 20% 19% 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Structural Products

MB

• 5% y-o-y

+10% q-o-q

30,530 28,840 28,183 26,425 29,148 Note: Domestic business: domestic sales from Thai operations

Structural Products: Grey cement, RMC, Others (mortar, white cement, and lightweight concrete blocks). Housing Products: Roofing products, Board & Wood sub, and Home improvement. Ceramics: includes Sanitary ware and Fittings.

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Domestic cement segments

Cement demand grew +5% y-o-y in Q1/16, driven mainly by the growth in the government related projects.

Q1/15 Q2/15 Q3/15 Q4/15

2015

Q1/16

Total Market* (100%)

• 2%

+2%

• 1%

+2% 0% +5% Commercial

(Approximately 20%)

• 6%

+1%

• 3%

0%

• 2%

0%

Gov’t

(Approximately 30%)

+10% +11% +11% +12%

+11%

+21%

Residential

(Approximately 50%)

• 7%
• 3%
• 7%
• 4%
• 5%
• 2%

Note: * Estimated volume market distribution

% Growth ( y-o-y )

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Sale Mix

• Bagged Cement (%)

45 44 40 38 41 40 37 37 39 39 35 35 37

• Bulk Cement (%)

55 56 60 62 59 60 63 63 61 61 65 65 63

Domestic cement price

The average cement price in Thailand remained at the 1,800-1,850 Baht/ton level, despite the q-o-q weakness and the noticeable change y-o-y.

500 1,000 1,500 2,000 2,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Baht/Ton

Average Domestic Price of Grey Cement (Net ex-factory)

2011 2012 2013 2014 2015 2016

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ASEAN market insight

Q1/15 Q2/15 Q3/15 Q4/15 2015 Q1/16

Cambodia

+8% +12% +17% +0%

+9%

+16%

Indonesia

• 1%
• 2%

+4% +6%

+2%

+3%

Myanmar

+17% +19% +7% +2%

+11%

+6%

Vietnam

• 1%

+11% +6% +14%

+8%

+9%*

Cement Demand Growth ( y-o-y )

Note: Indonesia’s cement demand is based on the data from Indonesian cement association (ASI). * Vietnam’s cement demand in Q1/16 included only Jan- Feb.

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International sales segmentation

Q1/16 International sales grew +1% y-o-y, mainly due to the ramp-up of the cement operations in Cambodia and Indonesia.

Q1/2016 ASEAN Operations (Products) Q1/2016 ASEAN Operations (Country)

Indonesia 38% Vietnam 27% Cambodia 23% Philippines 10% Myanmar 2% Ceramic 41% RMC & Precast 22% Grey Cement 23% Building Product 11% Others 3%

38% 39% 44% 47% 43% 31% 30% 26% 25% 28% 31% 31% 30% 28% 29%

3,000 6,000 9,000 12,000 15,000 18,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Trading Exports ASEAN Operations MB

16,551 16,823 15,387 16,249 16,731

+1% y-o-y +3% q-o-q Note: International business = ASEAN Operations, exports from Thailand, and Trading business Housing - Roofing products, Board & Wood sub, and Home improvement. Ceramics - includes Sanitary ware and Fittings. Trading - are mainly trading of non-SCG products

28 49 53 51 51 49 52 49 48 49 20 40 60 80 100 120 140 160 10 20 30 40 50 60 70 80 90 100

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Baht/sqm. M sqm.

Average Price Sales volume

Sales volume & prices for all ASEAN subsidiaries

Flat y-o-y +1% q-o-q

Volume change

Ceramic Tiles

Sales volume was flat y-o-y , following weakness in the Thai market.

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0.3 0.2 0.3 0.4 1.1 1.0 0.8 0.7 1.0

61 62 65 58 57 10 20 30 40 50 60 70 0.0 1.0 2.0 3.0 4.0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Clinker Export Cement Export Average FOB Prices

Sales volume and Average prices (FOB)

$/Ton MT

Cement exports

Exports volume register 1.4 MT in Q1/16, while export prices dropped $4/ton y-o-y as a result of the change in product mix.

Note: FOB price does not include handling charges and discount. THB/USD 32.65 33.27 35.25 35.84 35.67

1.4 1.2 0.8 1.0 1.4

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Outlook

Outlook:

• Domestic cement demand in FY2016 is expected to grow +3% to +5% y-o-y,

depending on the progress of the government’s infrastructure projects and the severity of the ongoing drought conditions. Domestic pricing pressure is expected to continue in light of the strong competition.

• Domestic demand of housing products and ceramic tiles are projected to remain

negative in FY2016.

• In general, ASEAN (ex-Thailand) demand for cement and building materials products

are expected to see continued positive growth.

Plants startup :

• Myanmar cement plant : commercial operation is expected in Q3/16.

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AGENDA

• I. Consolidated Results
• Q1/16 Consolidated Results
• Financial Updates

II. SCG Cement - Building Materials

• III. SCG Chemicals
• IV. SCG Packaging
• V. Summary

32

Q1/16 q-o-q change Notes Crude (Brent) $34/bbl

• $10/bbl (-23%)

Oil market remained oversupplied but started to recover from the bottom Naphtha $344/ton

• $101/ton (-23%)

Naphtha continued to drop from low demand due to cracker turnaround Ethylene $1,012/ton

• $21/ton (-2%)

Marginally declined despite a sharp fall in crude owing to firm downstream demand Propylene $649/ton +$62/ton (+11%) Tighter regional supply from unplanned shutdown of on-purposed units HDPE $1,103/ton

• $50/ton (-4%)

Dropped only slightly as healthy demand supported the price PP $934/ton

• $64/ton (-6%)

HDPE-Naphtha $759/ton +$51/ton (+7%) Gaps widened owing to firm demand PP-Naphtha $589/ton +$35/ton (+6%) EDC $234/ton +$18/ton (+8%) Price was in uptrend due to tight supply PVC $727/ton

• $36/ton (-5%)

Seasonal demand still supported PVC despite low oil price PVC-EDC/C2 $302/ton

• $47/ton (-13%)

Spread narrowed from tight EDC and decline in PVC prices MMA-Naphtha $955/ton

• $70/ton (-7%)

Oversupply in China BD-Naphtha $546/ton +$262/ton (+92%) Tight supply from the on-going regional plants unplanned shutdown PTA-PX $66/ton +$2/ton (+3%) New capacity offset by loss of existing capacity due to technical problem

Q1/16 Market Situation

33

300 600 900 1,200 1,500 1,800 $/ton HDPE-N Gap Naphtha Ethylene HDPE

Note: Prices refer to SEA regional prices

HDPE – Naphtha Price Gaps

HDPE spread widened to $759/ton q-o-q due to firm downstream demand

Q1/16 HDPE-N + 9% y-o-y + 7% q-o-q

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 To date

HDPE-Naphtha

620 618 691 802 694 812 774 708 759 819

Spread ($/ton)

682 747

HDPE-C2

113 121 125 234 161 (11) 264 120 91 53

C2-Naphtha

507 496 565 568 532 823 510 588 668 766

` `

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Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 To date PP-Naphtha 626 632 716 819 664 785 672 554 589 741 Spread ($/ton) 698 669 PP-C3 192 304 328 433 325 408 397 412 285 381 C3-Naphtha 434 328 388 385 339 376 275 142 305 360

300 600 900 1,200 1,500 1,800 PP-N Gap Naphtha PP Propylene

PP – Naphtha Price Gaps

PP spread widened to $589/ton q-o-q from healthy demand.

Note: Prices refer to SEA regional prices

$/ton Q1/16 PP-N

• 11% y-o-y

+ 6% q-o-q

`

35

300 600 900 1,200 1,500 1,800 PVC EDC PVC-EDC/C2 Ethylene

PVC

PVC spread narrowed down to $302/ton as EDC edged up slightly from tight supply and as PVC marginally declined amid low oil price.

Note: Prices refer to FE regional prices

$/ton

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 to date PVC-EDC/C2 336 307 336 348 350 283 339 349 302 330 Spread ($/ton) 332 324

Q1/16 PVC-EDC/C2

• 14% y-o-y
• 13% q-o-q

` `

36

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 to date BZ-Naphtha 355 323 394 299 161 228 196 146 212 239 TL-Naphtha 193 153 258 191 159 235 203 212 260 264 BZ-Spread 343 183 TL Spread 199 202

300 600 900 1,200 1,500 1,800

Benzene & Toluene

BZ-Naphtha: Benzene price rose with continuing strong SM price. TL-Naphtha: Gap improved from strong Chinese import demand to restock low inventory.

Toluene

Naphtha

Note: Prices refer to SEA regional prices

$/ton Q1/16 Toluene-N + 64% y-o-y + 23% q-o-q

Benzene

Q1/16 Benzene-N + 32% y-o-y + 45% q-o-q

` ` ` `

37

50 100 150 200 250 300 300 600 900 1,200 1,500 1,800

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 to date MMA-N 1,120 1,131 1,240 1,558 1,499 1,291 1,222 1,025 955 936 PTA-PX 68 63 70 75 46 92 57 64 66 88 BD-N 452 329 556 410 238 581 527 284 546 628 Note: BD and MMA prices refer to SEA regional prices, PTA prices refer to Asian regional prices

Price Gaps of Associates

MMA-Naphtha: Spread declined on the back of oversupply in China. PTA-PX: New capacity offset by loss of existing capacity due to technical problem. BD-Naphtha: Tight supply from regional plants unplanned shutdown.

MMA-Naphtha

MMA-Naphtha $/ton, BD-Naphtha $/ton PTA-PX $/ton

BD-Naphtha PTA-PX

38

Q1/15 Q1/16

260,000 283,000 274,000 280,000 310,000 262,000 274,000 289,000 274,000 178,000 180,000 173,000 193,000 190,000 180,000 208,000 184,000 217,000

100,000 200,000 300,000 400,000 500,000 600,000 700,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 PP PE

Polyolefin Sales Volume

Q1/16 sales volume increased 4% q-o-q with resilient market demand, especially in Thailand.

Ton

438,000 463,000

217,000

447,000 473,000 442,000

190,000 310,000 274,000

491,000 500,000 500,000 482,000 473,000 491,000

• 2% y-o-y

+ 4% q-o-q

39

Q1/15 Q1/16 50,000 100,000 150,000 200,000 250,000 300,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 ASEAN Operations Domestic Operations

PVC Sales Volume

Q1/16 sales volume grew 7% q-o-q on the back of seasonal demand and 15% y-o-y due to increased VCM capacity from debottlenecking in Q2/15.

Note: *ASEAN Operations = Sales volume from PVC operations in Vietnam and Indonesia

161,000 176,000

203,000 177,000

169,000 177,000 179,000

69% 70% 68% 70% 68% 70% 65% 35% 30% 32% 30% 32% 30% 31%

188,000

66% 34%

189,000

64% 36%

Ton + 15% y-o-y + 7% q-o-q

203,000

35% 65%

181,000

71% 29%

40

20,000 40,000 60,000 80,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

Note: * ASEAN operations = Sales revenue from PVC operations in Vietnam and Indonesia

Revenue from Sales

Q1/16 revenue slightly improved at 47,810 MB q-o-q due to higher sales volume.

60,826 64,958 64,337 57,997 47,956 MB 53,636 47,956 47,810 51,591

0% y-o-y 1% q-o-q

47,250 47,810 Q1/15 Q1/16

Flat

41

4,834 4,671 5,745 6,151 6,600 13,169 10,861 9,921 11,390 153 970 1,863 1,755 111 1,452 42 744 131

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Dividend EBITDA from Operations Q1/15 Q1/16

6,600 Note: EBITDA = EBITDA from Operations + Dividend from Associated Companies

EBITDA

Q1/16 EBITDA slightly increased q-o-q to 11,652 MB on enhanced spreads

EBITDA 8% 7% 9% 11% 14% 25% 21% 21% 24% 14% 24% Margin 5,641 4,987 7,608 7,906 6,711 MB 14,621 10,903

11,390 111

+ 72% y-o-y + 8% q-o-q

10,665 11,521

6,711

131

11,521

42

Q1/15 Q1/16

678 445 1,107 565 1,495 2,900 1,456 1,348 2,942

2,000 4,000 6,000 8,000 10,000 12,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Equity Income Subsidiaries

NCI (330) (240) (650) (740) (680) (3,600) (1,540) (1,140) (2,820) (680) (2,820) (Non controlling interest) Inventory 180 (80) (130) (2,960) (930) 970 (2,160) 330 (300) (930) (300) Gain (Loss)**

8,980 2,259

Profit for the Period

Profit increased to 9,111 MB mainly due to improved equity income from associated companies

*Sub/Asso : 67%/33% **Note: SCG Chemicals (Sub + Asso)

4,188

2,942

3,534

1,495

MB 2,480 9,182

4,938 8,980

6,838

+ 82% y-o-y + 19% q-o-q

7,530 4,938

43

Outlook

• Crude – gradually recovers due to easing oversupply situation
• Naphtha – naphtha following crude price amid cracker turnaround season
• Polyolefin – cost push from continued rising feedstock prices from cracker turnaround

season

• PVC – strong demand from healthy season for agriculture and construction

Company highlight:

• Chandra Asri (30%): ramping up, following the debottleneck in late-2015
• Longson Petrochemical (46%): in progress of negotiating with potential partners
• Rayong Olefins (consolidated): 40-day cracker shutdown for scheduled maintenance in

Q4/16

• Thai Plastic and Chemicals (consolidated): 23-day VCM plant shutdown for scheduled

maintenance in Q2/16

44

AGENDA

• I. Consolidated Results
• Q1/16 Consolidated Results
• Financial Updates

II. SCG Cement - Building Materials

• III. SCG Chemicals
• IV. SCG Packaging
• V. Summary

45

Packaging Paper

Packaging paper prices maintained due to stable-to-soft demand in the region while AOCC prices dropped due to low demand in China during Chinese New Year.

Note: regional prices

150 300 450 600 $/Ton

Packaging Paper Recovered Paper (AOCC) Apr/16

165-175 445-455

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

480 180

Q1

470

Q2/15

190

Q3/15

460 190

Q4/15

450 180

Q1/16

450 170

46

59% 57% 57% 57% 60% 20% 21% 21% 21% 19% 21% 22% 22% 22% 21%

528 539 552 561 584

100 200 300 400 500 600 700 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

ASEAN Operations* Thailand Export Thailand Domestic

Packaging Paper

Total sales volume increased 4% q-o-q and 11% y-o-y mainly from higher domestic sales.

’000 tons Note: *Sales Volume from Philippines and Vietnam

(65%) (67%)

59% 60% 20% 19% 21% 21%

528 584

100 200 300 400 500 600 700 Q1/15 Q1/16

+11% y-o-y + 4% q-o-q +12% y-o-y + 9% q-o-q

47

Fibrous (Printing & Writing Paper)

Printing & Writing paper prices declined from poor demand. Short fiber pulp prices dropped sharply due to oversupply and low demand.

200 400 600 800 1,000

Short Fiber P&W Paper Long Fiber

$/Ton

715-725 575-585

Apr/16

485-495 795

645

595

Q1

Note: regional prices

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15

785

660

630

Q3/15

755

630

645

Q4/15

735

595

620

Q1/16

725

580

525

48

Fibrous (Printing & Writing Paper)

Total sales volume increased 6% q-o-q owing to improved domestic demand and higher export sales, but flat y-o-y.

75% 72% 25% 28%

123 123

50 100 150 Q1/15 Q1/16

75% 73% 73% 72% 72% 25% 27% 27% 28% 28%

123 119 118 116 123

50 100 150 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Export Domestic ’000 tons

Flat

• 3% y-o-y

+ 6% q-o-q

Flat y-o-y + 6% q-o-q

49

Revenue from Sales

Revenue from Sales in Q1/16 increased 2% q-o-q and 10% y-o-y mainly from higher domestic sales in Packaging chain.

12,390 12,621 13,341 13,645 14,104 4,721 4,551 4,876 4,762 4,743

17,111 17,172 18,217 18,407 18,847

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Fibrous Chain Packaging Chain MB 12,390 14,104 4,721 4,743

17,111 18,847

Q1/15 Q1/16

Flat

72% 73% 73% 74% 75% 72% 75% Packaging as percent

• f total

+10% y-o-y +2% q-o-q

50

2,693 2,512 2,580 3,046 3,143 878 764 645 1,176 1,255 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16

+43% y-o-y + 7% q-o-q

878 1,255 Q1/15 Q1/16

MB

16% 17% 16% 17%

EBITDA Margin

EBITDA EBITDA

Profit for the period (MB)

EBITDA and Profit for the Period

Improved performance in Q1/16 both q-o-q and y-o-y mainly due to higher sales volume and cost improvement.

2,693 3,143

Q1/15 Q1/16

EBITDA (MB) +17% y-o-y + 3% q-o-q

Profit for the period Profit for the period

Packaging 17% 16% 15% 15% 18% Fibrous 13% 11% 12% 12% 14% EBITDA Margin Total 16% 15% 14% 17%* 17%

*Remark : Include gain from sale of TBSP shares.

Gain from sale

• f TBSP shares

51

Outlook

Outlook:

• Demand for packaging in Thailand expects to soften after peak period in Q1 and long

holiday in Q2, while regional demand expects to remain stable.

• Regional packaging paper prices expect to maintain due to stable demand.
• Recovered paper prices expect to be flat as no new factor to push up prices.
• Short-fiber pulp prices expect to drop further due to competition, although long fiber

prices expect to maintain.

52

Thank You

Summary

For further details, please contact invest@scg.co.th