Analyst Conference Q1/2020 Wednesday, Apr 29, 2020 Measurements - PowerPoint PPT Presentation

Analyst Conference Q1/2020 Wednesday, Apr 29, 2020

Measurements Taken during COVID-19 pandemic P.2 Care for employees and stakeholders Business Management Social Contribution “95% WFH ( Head Office ) as of April 2020” “Proactive and Adaptability”  Top-down communication on stringent BCM policy Negative Pressure Isolation room  Quick decision making via weekly throughout inbound and outbound sites Ex-com team  Zoning implementation and No entry policy for those  Work closely with business partners previously visiting or transiting through risk countries   Stringent BCM implementation to Zero COVID-19 Zone set up at operations sites by ensure business continuity isolating staffs   Management Communication flows for prompt Review capital Expenditure response  Closely monitor credit worthiness of Negative Pressure Isolation Chamber  Compliance to public announcements and regulations customers  Technological support to ensure business  Prudent liquidity management continuity, supported by video conference system , (reduce working cap, preserve cash, Cloud database secure funding)  Promote social distancing , lunch Zoning or lunch  Built contingency cases delivery to office 1) Expedited digital transformation  Screening and spread containment , carrying out daily Modular and Swab Unit e.g. Block chain, E-Market Place Patient Isolation Capsule temperature check before entry, alcohol dispensing (SCG Home, NocNoc), RPA points in public area 2) Accelerated SCG’s growth in  14-day Quarantine allowed with full pay for employees Packaging in food & Hygiene , who have visited or transited to risk countries and had Delivery and Logistic platform, and Modular unit – positive direct and indirect contact with COVID-19 patients pressure, prevent outer air Food Preservation plastics by air tightness, HEPA filter  Sanitization and hygiene outfit for contractors and  and Bio-polar Ion Transparent communications to visitors stakeholders  App to report daily health check and potential contract Aerosol Box with COVID-19 patients, if any Semi-negative pressure to prevent virus spread, HEPA filter, Aerosol Boxes UV germicide Modular unit – positive pressure, prevent outer air by air tightness

P.3 Agenda I. Consolidated Results - Q1/ 20 Consolidated Results - Q1/20 Segments - Financial Updates II. Cement - Building Materials Business III. Chemicals Business IV. Packaging Business V. Summary

Q1/20 Revenues from Sales P.4 Revenues dropped -6% y-o-y mainly from lower chemicals prices. -6% y-o-y MB Flat q-o-q 150,000 120,000 112,379 110,330 109,094 106,177 105,741 90,000 60,000 30,000 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Q1/20 EBITDA P.5 EBITDA decreased y-o-y, mainly due to decreased contribution from Chemicals business and q-o-q from seasonal dividend contribution from associated companies. MB 25,000 EBITDA 20,758 19,805 -21% y-o-y 19,555 20,000 1,326 -26% q-o-q 5,349 15,424 7,548 14,842 Dividend from 173 15,000 95 Associates EBITDA from 10,000 Operations 18,229 -16% y-o-y 15,251 14,747 14,456 13,210 +15% q-o-q 5,000 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Note : EBITDA = EBITDA from Operations + Dividend from Associates

Q1/20 Equity Income P.6 Equity income decreased q-o-q mainly from the chemicals segment. MB -65% y-o-y 5,000 -56% q-o-q 4,000 3,604 3,161 2,836 3,000 2,206 2,031 2,102 2,000 1,798 1,245 1,119 Chemicals 248 1,000 1,398 1,059 1,038 Non-Chemicals 997 912 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Q1/20 Profit for the Period P.7 Earning decreased -40% y-o-y, mainly due to the decline in performance of the Chemicals business caused by lower petrochemicals spreads. MB -40% y-o-y 15,000 -2% q-o-q 11,662 10,000 7,104 7,044 6,971 6,204 5,000 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 430 (3, 185 ) (1,6 83 ) (1, 391 ) Key Items (1,303) 1) Severance pay adjustment (Labor Law) - - (2,035) - - 2 ) Inventory Gain (Loss)* 430 150 (1,0 6 0) (1,150) (1,100) - ( 390 ) ** 3) Impairments & restructuring - (762)** - - - 4) Deferred Tax Assets Reversal (1,063) - - 5) FX Gain (Loss) from Fajar USD Loan - - (8) 59 (563) 6 ) Effect from Indonesia tax rate - - - - 360 Note: * Chemicals Business (Sub + Asso.) ** Q3/19: Mainly CBM 640 MB. Q4/19: Mainly CBM from restructuring Ceramic business

P.8 Agenda I. Consolidated Results - Q 1 / 20 Consolidated Results - Q1/20 Segments - Financial Updates II. Cement - Building Materials Business III. Chemicals Business IV. Packaging Business V. Summary

Q1/20 Segmented Revenue from Sales P.9 Chemicals dropped to 36% while non-Chemicals rose to 64% of total sales in Q1/20 . Q1/19 Q1/20 112,379 MB 105,741 MB (-6% y-o-y) 40% 41% 36% 41% Cement- Cement- Chemicals Chemicals Building Materials Building Materials 19% 23% Packaging Packaging MB 48,310 46,245 46,240 50,000 38,329 40,000 30,000 24,267 21,127 20,000 10,000 0 Q1/19 Q1/20 Q1/19 Q1/20 Q1/19 Q1/20 Cement – Building Chemicals* Packaging* Materials* Note: *figures are before elimination of intersegment transactions.

Q1/20 Segmented Profit for the Period P.10 Chemicals Earnings accounted for 26% of Total Profit in Q1/20 compared to 50% in Q1/19. Q1/19 Q1/20 11,662 MB 6,971 MB (-40% y-o-y) Chemicals Cement- Chemicals Subsidiaries Building Materials Subsidiaries 22% Cement- 25% Chemicals 31% Building Materials (26%) 4% Equity Income 40% (50%) Other Packaging 10% Chemicals 14% Packaging Equity Income Other 24% 19% 11% MB 8,000 5,908 6,000 Eq Inc. 2,206 4,000 2,838 2,778 1,778 1,732 1,622 Sub. 2,000 1,311 3,702 248 Eq Inc. 700 1,530 Sub. 0 Q1/19 Q1/20 Q1/19 Q1/20 Q1/19 Q1/20 Q1/19 Q1/20 Cement - Building Chemicals* Packaging* Other* Materials* Note: *figures are before elimination of intersegment transactions.

Q1/20 Segments: Export Sales and ASEAN Operations P.11 ASEAN exports and operations were 28% of total sales. Sales Segments (by markets) Export Segments (by markets) 26,593 MB 24,319 MB 112,379 MB 105,741 MB Others Others 14% 15% 13% Others 14% N. Asia N. Asia 13% 13% 24% 28% ASEAN* (ex-Thailand) S. Asia S. Asia 14% 16% China/HK China/HK 14% 21% Thailand 61% 58% (domestic) ASEAN ASEAN (ex- (ex-Thailand) Thailand) 43% 39% Q1/19 Q1/20 Q1/19 Q1/20 Export as 24% 23% % of Sales Note: *ASEAN = ASEAN Operations + Export to ASEAN

P.12 Agenda I. Consolidated Results - Q 1 / 20 Consolidated Results - Q1/20 Segments - Financial Updates II. Cement - Building Materials Business III. Chemicals Business IV. Packaging Business V. Summary

Q1/20 EBITDA on Assets, and EBITDA Margin P.13 EBITDA on assets (excluding projects under construction) EBITDA on assets Percent (%) 20 17.8 17.8 16.2 15.2 14.9 15 14.0 14.0 13.6 13.0 1 3.0 14.7 12.0 12.0 11.2 11.8 10 10.0 5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1/20 EBITDA Margin (%): 14 18 14 11 10 13 13 18 21 19 16 14 14 Note: EBITDA on Assets = Trailing-12-month EBITDA / Total Consolidated Assets EBITDA margin = EBITDA from Operations / Consolidated Sales

Q1/20 Net Debt P.14 Leverage increased to 2.7 x mainly due to debt drawdown for projects under construction. Net debt to EBITDA Billion Baht Net debt to EBITDA (excluding projects under construction) Times (x) (Net Debt) (Leverage) 200 6 190.4 181.4 180 164.4 162.5 5 157.8 160 147.5 146.9 145.0 137.6 140 4 122.0 120.5 120 112.1 3.0 3.1 100 3 2.7 2.6 2.6 2.5 83.6 2.4 2.4 80 2.0 1.8 1.7 2 1.5 60 1.4 1.9 1. 8 40 1. 5 1 20 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1/20 Net Debt to Equity = 0.6 Note: Net debt to EBITDA = Net debt / Trailing-12-month EBITDA

Q1/20 CAPEX & Investments P.15 Registered at 12 ,26 1 MB in Q1/20 due to ongoing project constructions (LSP and MOCD) . Q1/20 Types: SBU: Others Others Investment 4% 3% 6% Maintenance Cement-Building 10% Materials 21% Efficiency Greenfield Chemicals Billion Baht Projects & Expansion 55% 100 Packaging 65% 16% 20% 80 77.5 60 50.0 47.0 46.1 45.8 40 45.0 45.2 42.4 34.8 34.5 32.0 27.2 20 18.4 12.3 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1/20 - CAPEX includes debottlenecking, expansion projects, and major turnaround. - Investments are acquisitions and purchase of shares (EV basis).

Q1/20 Interest and Finance Costs P.16 Amounted to a total of 3,113 MB, while interest cost stood at 3.0% . MB 10,000 9,076 9,000 8,193 8,000 7,573 7,266 7,112 6,836 7,000 6,442 6,321 6,089 6,048 6,000 5,649 5,273 5,000 4,670 4,000 3,113 3,000 FX. loss 2,000 1,000 1,810 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1/20