Chememan Public Company Limited Q1 2018 Analyst Presentation 16 May - - PowerPoint PPT Presentation

Chememan Public Company Limited

Q1 2018 Analyst Presentation

16 May 2018

1

Strictly Private & Confidential

TABLE OF CONTENT

• 1. Key Highlight Q1 2018
• 2. Financial Performance Q1 2018
• 3. Project Progress Update
• 4. Appendix

Key Highlight Q1 2018

3

Strictly Private & Confidential

KEY HIGHLIGHT Q1 2018

Capacity Expansion In Thailand

• KK6 started COD with the installed capacity of 109,500 MT/year.
• BoD has approved the construction of new kiln quicklime KK4 with the installed capacity of 73,000

MT/year, expected to spend around 9 months to be completed.

Capacity Expansion in India

• Company increased capital in Easternbulk.
• Production plant is in construction process and expected to start COD with Q1 2019.

CMAN’s IPO Offering

• CMAN has been listed in SET on March 21, 2018 with offering size of Baht 921.60 million.

The Company’s Performance

• Total revenue from sales in Q1/2018 is Baht 596.55 million, increased from Q4/2017 by Baht 18.89 million or

3.27% (QoQ) and from Q1/2017 by Baht 3.66 million or 0.62% (YoY)

• EBITDA in Q1/2018 is Baht 99.27 million, increased from Q4/2017 by Baht 19.50 million or 24.45% (QoQ) and

decreased from Q1/2017 by Baht 7.88 million or 7.35% (YoY).

• Net profit in Q1/2018 is Baht 37.24 million, increased from Q4/2017 by Baht 18.66 million or 100.43% (QoQ)

and decreased from Q1/2017 by 16.99 or 31.33% (YoY).

The Company’s Financial Position

• As at 31 March 2018, total assets is Baht 3,817.23 million, increased by Baht 600.70 million or 18.68% from

31 December 2017.

• As at 31 March 2018, total liabilities is Baht 1,662.89 million, decreased by Baht 330.94 million or 16.60%

from 31 December 2017.

• As at 31 March 2018, total shareholders’ equity is Baht 2,154.34 million, increased by Baht 931.64 million or

76.20% from 31 December 2017.

Financial Performance Q1 2018

5

Strictly Private & Confidential

NORMALIZED PROFIT COMPARISON

• Normalized profit for Q1/2018 is in the same level comparing to Q1/2017, and increase 124.49% comparing to Q4/2017
• Major effect of loss from exchange rate and pending transportation expense (totaling of Baht 15.45 million) causes

reported profit reduced to Baht 37.24 million, decrease Baht 16.99 million (31.33%) comparing to Q1/2017, however, increase Baht 18.66 million (100.38%) comparing to Q4/2017

Summary Financial Statement Q1/2017 Q4/2017 Q1/2018 %YOY %QOQ Sales 592.89 577.66 596.55 0.62% 3.27% Cost of Sales (363.13) (365.32) (381.71) 5.12% 4.49% Total Gross Profit before cost reallocation MB 229.76 212.34 214.84

• 6.49%

1.18% % Gross Margin 38.75% 36.76% 36.01% Cost Reallocation from SGA

• (14.03)
• Total Gross Profit after cost reallocation

MB 229.76 212.34 200.81

• 12.60%
• 5.43%

% Gross Margin 38.75% 36.76% 33.66% Other incomes MB 6.24 3.41 1.95

• 68.73%
• 42.73%

Selling expense MB (114.93) (118.55) (99.94)

• 13.04%
• 15.70%

Admin expense MB (50.95) (63.30) (50.33)

• 1.22%
• 20.50%

Finance cost MB (13.35) (16.72) (17.93) 34.27% 7.20% Tax MB (2.54) 1.41 2.67

• 205.16%

89.69% Net income MB 54.23 18.58 37.24

• 31.33%

100.38% % Net Profit Margin 9.15% 3.22% 6.24% Adjustment for Normalized Profit Effect of loss from Exchange rate MB (1.73) 4.89 11.77 Pending Transportation Expense MB

• 3.68

Normalized profit MB 52.50 23.47 52.69 0.36% 124.49%

6

Strictly Private & Confidential

436.02 435.59 459.25 91.58 88.45 97.86 65.29 53.62 39.44 592.89 577.66 596.55 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

REVENUE

Total Revenue from Sales Classified by Product (THBmm) Revenue Analysis

Total revenue from sales in Q1/2018 attributed to the Company of Baht 596.55 million.

• QoQ: The revenue in Q1/2018 increased from Q4/2017 by Baht

18.89 million or 3.27% due to the increase of domestic sales from sugar and bioplastics industry.

• YoY: The revenue in Q1/2018 also increased from Q1/2017 by Baht

3.66 million or 0.62% (YoY) since the QL export was boosted by the demand from long-term contract started since end of Q1/2017

135,338 129,020 152,262 21,412 22,537 25,684 194,325 122,598 90,909 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

Quantity Sales (Tons)

3,221.76 3,376.15 3,016.15 4,277.04 3,924.77 3,810.31 335.97 437.36 433.89 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

Sales Price Per Unit (THB per Ton)

7

Strictly Private & Confidential

REVENUE ANALYSIS by PRODUCT – QUICKLIME

Quicklime Q1/2017 Q4/2017 Q1/2018 Quantities MT 135,338 129,020 152,262 Sale revenue MB 436.02 435.59 459.25 Price per unit BPT 3,221.76 3,376.15 3,016.15 Revenue Analysis for Quicklime QoQ : The revenue in Q1/2018 increased from Q4/2017 by Baht 23.66 million or 5.43%, mainly due to an increase in

domestic sales to sugar industry while decrease in export sales from one of quicklime contract was ended in last December. However, The Company had new quicklime contracts with 2 new customers which will start to serve on April 2018 YoY: The revenue in Q1/2018 increased from Q1/2017 by Baht 23.23 million or 5.33%, mainly due to an increase in export from the long-term contracts started since end of March 2017. Moreover, increase in export volumes was about 22,000 tons or 43.93%. Effect to Price per unit in Q1/2018 :

• Incoterm change from CIF/CFR to FOB
• Baht depreciated (average USD/THB was 34.92, 32.76 and 31.33 for Q1/2017, Q4/2017 and Q1/2018, respectively

8

Strictly Private & Confidential

REVENUE ANALYSIS by PRODUCT – HYDRATED LIME

Hydrated lime Q1/2017 Q4/2017 Q1/2018 Quantities MT 21,412 22,537 25,684 Sale revenue MB 91.58 88.45 97.86 Price per unit BPT 4,277.04 3,924.77 3,810.31 Revenue Analysis for Hydrated Lime QoQ and YoY: The revenue in Q1/2018 increasing by Baht 9.41 million and 6.28 million or 10.64% and 6.86%, respectively, mainly due to an increase in domestic sales to bioplastic industry (Sales volumes are 4,900 tons, 6,200 tons and 9,000 tons for Q1/2017 Q4/2017 and Q1/2018, respectively) Effect to Price per unit in Q1/2018 :

• Domestic portion is higher
• Baht depreciated (average USD/THB was 34.92, 32.76 and 31.33 for Q1/2017, Q4/2017 and Q1/2018, respectively

9

Strictly Private & Confidential

REVENUE ANALYSIS by PRODUCT – LIMESTONE

Limestone Q1/2017 Q4/2017 Q1/2018 Quantities MT 194,325 122,598 90,909 Sale revenue MB 65.29 53.62 39.44 Price per unit BPT 335.97 437.36 433.89 Revenue Analysis for Limestone QoQ and YoY: The revenue in Q1/2018, decreased by Baht 14.18 million and 25.85million or 26.45% and 39.59% , respectively, TK plant was temporarily shutdown, limestone is shortage and limit for sales. Moreover, limestone is needed progressively for manufacturing for higher demand of QL and HL Effect to Price per unit in Q1/2018 :

• No export sales in Q1/2018

10

Strictly Private & Confidential

COST OF SALES

278.86 286.19 306.54 50.27 54.71 64.03 34.00 24.41 25.17 363.13 365.31 395.74 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

Cost of Sales (THBmm) Cost Per Unit (THB per Ton)

2,060.47 2,218.18 2,013.20 2,347.73 2,427.82 2,493.11 174.99 199.13 276.91 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

Cost Analysis

Cost of sales in Q1/2018 was Baht 395.74 million.

• QoQ: Cost in Q1/2018 increased from Q4/2017 by Baht 30.42 million
• r 8.33% because Q1/2018 had a relocation of manpower cost

from admin expenses to production cost approximately Baht 14 million, but the actual cost of sales per unit decreased since the COD of KK6 on January 20, 2018 supported the economy of scale.

• YoY: Cost in Q1/2018 also increased from Q1/2017 by Baht 32.61

million or 8.98% due to the relocation effect.

11

Strictly Private & Confidential

COST ANALYSIS by PRODUCT – QUICKLIME

Quicklime Q1/2017 Q4/2017 Q1/2018 Quantities MT 135,338 129,020 152,262 Cost MB (278.86) (286.19) (306.54) Cost per unit BPT (2,060.47) (2,218.18) (2,013.20) Cost Analysis for Quicklime QoQ and YoY :

The cost in Q1/2018, increasing in sale volumes by Baht 20.35 million and 27.68 million or 7.11% and 9.93%, respectively. Cost per unit in Q1/2018 decreased from economic of scale resulted from KK6 kiln was commenced commercially during late January despite there is a relocation of manpower cost from admin expense to production cost. In Addition, production portion of KK and PBB is 3:1, lead to reduce the production cost

12

Strictly Private & Confidential

COST ANALYSIS by PRODUCT – HYDRATED LIME

Hydrated lime Q1/2017 Q4/2017 Q1/2018 Quantities MT 21,412 22,537 25,684 Cost MB (50.27) (54.71) (64.03) Cost per unit BPT (2,347.73) (2,427.82) (2,493.11) Cost Analysis for Hydrated Lime QoQ and YoY: The cost in Q1/2018, increasing by Baht million 9.32 and 13.76 million or 17.04% and 27.37%, respectively, mainly due to an increase in domestic sale volumes to bioplastic industry Cost per unit in Q1/2018 increased from higher in tolling portion and there is a relocation of manpower cost from admin expense to production cost

13

Strictly Private & Confidential

COST ANALYSIS by PRODUCT – LIMESTONE

Limestone Q1/2017 Q4/2017 Q1/2018 Quantities MT 194,325 122,598 90,909 Cost MB (34.00) (24.41) (25.17) Cost per unit BPT (174.99) (199.13) (276.91) Cost Analysis for Limestone QoQ : The cost in Q1/2018 only increasing by Baht 0.75 million or 3.07% YoY: The cost in Q1/2018 decreased by Baht 8.83 million or 25.97%, which was in line with a decrease in LS & LSG sale revenues, as domestic and export sale volumes declined from building and construction industries. Moreover, TK plant was temporarily shutdown, limestone is shortage and limit for sales. Moreover, limestone is needed progressively for manufacturing for higher demand of QL and HL Cost per unit in Q1/2018 increased from

• the fixed cost is retained while TK plant shutdown and effect from relocation of manpower cost
• LSG portion is higher comparing to Q1/2017 and Q4/2017

14

Strictly Private & Confidential

1,161.28 1,157.97 1,002.95 1,929.30 1,496.95 1,317.20 160.98 238.23 156.98 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone

157.17 149.40 152.71 41.31 33.74 33.83 31.28 29.21 14.27 229.76 212.35 200.81 38.8% 36.8% 33.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

• 50.00

100.00 150.00 200.00 250.00 300.00 Q1 2017 Q4 2017 Q1 2018 Quicklime Hydrated Lime Limestone Gross Profit Margin

GROSS PROFIT

Gross Profit (THBmm) and Gross Profit Margin (%)

Gross Profit Per Unit (THB per Ton) Gross Profit Analysis

Gross Profit in Q1/2018 was Baht 200.81 million or 33.70% of revenue from sales, which decreased from Q4/2017 by Baht 11.53 million or 5.43% and also decreased from Q1/2017 by Baht 28.95 million or 12.60% due to the higher cost of production from relocation effect.

15

Strictly Private & Confidential

SG&A

107.87 111.83 92.24 7.06 6.72 7.70 50.95 63.30 50.33 165.88 181.85 150.27

Q1 2017 Q4 2017 Q1 2018

Transportation cost Other selling expenses Administrative expenses

Selling, General and Administration Expenses(THBmm)

SGA Analysis

Selling expenses in Q1/2018 was Baht 99.94 million.

• QoQ: Selling expenses in Q1/2018 decreased from Q4/2017 by Baht

18.61 million or 15.70% because (1) freight charge on Q4, which was a peak season, was higher than Q1 and (2) the domestic’s transportation cost decreased due to the in-house supply of vehicles instead of outsource.

• YoY: Selling expenses in Q1/2018 also decreased from Q1/2017 by

Baht 14.99 million or 13.04% due to the decrease in export transportation cost (change from CIF/CFR to FOB incoterm) Administration expenses in Q1/2018 was Baht 50.33 million. The administration cost decreased from Q4/2017 by Baht 12.97 million or 20.49% and decreased from Q1/2017 by Baht 0.62 million or 1.22%. This was resulted from (1) the relocation of manpower cost from admin expenses to production cost, (2) the decrease of advisory cost, and (3) the increase of foreign exchange loss.

16

Strictly Private & Confidential

13.35 16.72 17.93

2 4 6 8 10 12 14 16 18 20

Q1 2017 Q4 2017 Q1 2018

Financial Cost (THBmm)

2.54 (1.41) (2.67)

• 3
• 2
• 1

1 2 3

Q1 2017 Q4 2017 Q1 2018

Corporate Income Tax Expense (Income)(THBmm)

Financial Cost Analysis

Financial Cost in Q1/2018 was Baht 17.93 million.

• QoQ: Financial cost in Q1/2018 increased from Q4/2017 by Baht

1.21 million or 7.24% due to the increase in interest expense from short-tern loan.

• YoY: Financial cost in Q1/2018 also increased from Q1/2017 by Baht

4.58 million or 34.31%. This is due to the increase in long-tern loan from Baht 823 million to Baht 1,214 million

Tax Income (Expense) Analysis

Tax income in Q1/2018 was Baht 2.67 million, which increased from Q4/2017 by Baht 1.26 million or 89.36% and increased from Q1/2017 by Baht 5.21 million or 205.12%. This is due to loss from the business segment that was not granted promotional certificates.

17

Strictly Private & Confidential

107.15 79.83 99.27 18.1% 13.8% 16.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

• 20.00

40.00 60.00 80.00 100.00 120.00

Q1 2017 Q4 2017 Q1 2018

EBITDA EBITDA Margin 54.23 18.58 37.24 9.1% 3.2% 6.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

• 20.00

40.00 60.00 80.00 100.00 120.00

Q1 2017 Q4 2017 Q1 2018

NP NP Margin

EBITDA(1) (THBmm) and EBITDA margin (%) Net Profit (THBmm) and Net Profit Margin (%)

EBITDA vs. NET PROFIT

Notes: (1) EBITDA is defined as operating profit before changes in working capital from cash flow statement.

EBITDA vs. Net Profit Analysis

• EBITDA in Q1/2018 were Baht 99.27 million.
• increased from Q4/2017 by Baht 19.50 million or 24.45% (QoQ) because economic of scale from KK plant expansion, transportation expense

reduce due to low season, and manageable of inland transport

• decreased from Q1/2017 by 7.88 or 17.35% (YoY) due to effect from depreciation of Baht comparing to USD
• Net profit in Q1/2018 attributed to the Company of Baht 37.24 million. The net profit in Q1/2018 increased from Q4/2017 by Baht 18.66 million or

100.43% (QoQ) and decreased from Q1/2017 by 16.99 or 31.33% (YoY) due to above mentioned

18

Strictly Private & Confidential

Assets (THBmm)

Balance Sheet

2,222.63 2,782.22 3,216.53 3,817.23

2015 2016 2017 Q1 2018

1,305.36 1,711.92 1,993.83 1,662.89

2015 2016 2017 Q1 2018

Liabilities (THBmm)

917.26 1,070.30 1,222.70 2,154.34

2015 2016 2017 Q1 2018

Equities (THBmm)

Assets Analysis

As at 31 March 2018, total assets were Baht 3,817.23 million, increased by Baht 600.70 million or 18.68% from 31 December 2017. The increase was resulted from (1) the increase in cash and cash equivalents, which was mostly from cash received from IPO, and (2) PPE from KK6 and TK crushing plant expansion.

Liabilities and Shareholders’ Equity Analysis

• As at 31 March 2018, total liabilities were Baht 1,662.89 million,

decreased by Baht 330.94 million or 16.60% from 31 December 2017, which was resulted from the decrease in short-term loan and trade and

• ther payables.
• As at 31 March 2018, total shareholders’ equity was Baht 2,154.34

million, increased by Baht 931.64 million or 76.20% from 31 December 2017, which was resulted from share premium of share issuance on March 21, 2018.

19

Strictly Private & Confidential

Current Ratio (x)

Ratios

Debt to Equity(x)

0.69x 1.02x 3.02x

0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x

Q1 2017 Q4 2017 Q1 2018 1.49x 1.63x 0.77x

0.00x 0.20x 0.40x 0.60x 0.80x 1.00x 1.20x 1.40x 1.60x 1.80x

Q1 2017 Q4 2017 Q1 2018

Project Progress Update

21

Strictly Private & Confidential

PROJECT PROGRESS UPDATE

Project Location Country Ownership Estimated CAPEX Installed Capacity (MT/year) Commercial Operation Date To increase production capacity

New Quicklime kiln (KK6) Kangkoi, Saraburi Thailand 100% 221.0 THBm 109,500 Q1 2018 (completed) Crushing plant at Tubkwang quarry Kangkoi, Saraburi Thailand 100% 131.0 THBm 3,102,500 Q2 2018 Quicklime grinder machine Kangkoi, Saraburi Thailand 100% 17.0 THBm 120,000 Q1 2018 (completed)

To reduce cost of production

Warehouse and big silo Kangkoi, Saraburi Thailand 100% 94.3 THBm 1 Warehouse and 4 Big Silos

Warehouse: Q4 2017 (completed), Big silo: Q4 2018 – Q2 2019

To expand the business

Joint venture established lime manufacturing and distributing company Visakhapatnam, Andhra Pradesh India 50% 87.5 THBm 109,500 of Quicklime 2019 87,600 of Hydrated Lime Joint venture established Quicklime manufacturing and distributing company Tuticorin, Tamil Nadu India 50% 115.0 THBm

(without borrowing due to religious limitation of alliance)

47,450 of Quicklime 2019 73,000 of Grinding Limestone

22

Strictly Private & Confidential

New Quicklime kiln (KK6)

Update status Q1’2018

• Location at Kangkoi Saraburi
• Installed capacity 109,500 TPY
• COD on Jan 20, 2018
• Actual CAPEX 209.0 THBm

23

Strictly Private & Confidential

Crushing plant at Tubkwang quarry

Update status Q1’2018

• Location at Kangkoi Saraburi
• Capacity increase 1,825,000 TPY
• Chemical line completed 100%
• Construction line completed 95%
• Actual investment end of Q1

2018 = 102.0 THBm

24

Strictly Private & Confidential

Quicklime grinder machine

Update status Q1’2018

• Location at Kangkoi Saraburi
• Installed capacity 120,000 TPY
• COD on Jan 24, 2018
• Actual CAPEX = 17.0 THBm

25

Strictly Private & Confidential

New Warehouse

Update status Q1’2018

• Location Kangkoi Saraburi
• Storage Capacity 4,000 MT
• Operation date on

February 15, 2018

• Actual CAPEX = 10.7 THBm

26

Strictly Private & Confidential

Big Silo

Update status Q1’2018

• Location Kangkoi Saraburi
• Storage Capacity 12,000 MT
• Construction in progress

end of Q1 2018 10 %

• Actual investment end of

Q1 2018 = 6.26 THBm

27

Strictly Private & Confidential

Even after IPO : New Quicklime kiln (KK4)

Update status Q1’2018

• Location at Kangkoi Saraburi
• Installed capacity 73,000 TPY
• Board approved April 04,2018
• Start foundation in April 2018
• Estimated CAPEX = 235.0 THBm

Appendix

29

Strictly Private & Confidential

SUMMARY COMPANY FINANCIAL INFORMATION

Q1/2017 Q4/2017 Q1/2018 Q1/2017 Q4/2017 Q1/2018 Quicklime Quantities MT 135,338 129,020 152,262 Sale revenues MB 436.02 435.59 459.25 BPT 3,221.76 3,376.15 3,016.15 Cost MB (278.86) (286.19) (295.04) BPT (2,060.47) (2,218.18) (1,937.68) Gross Profit before cost reallocation MB 157.17 149.40 164.21 BPT 1,161.28 1,157.97 1,078.47 Gross Margin before cost reallocation % 36.05% 34.30% 35.76% Reallocate Cost from SGA MB

• (11.50)

BPT

• (0.00)

Gross Profit after cost reallocation MB 157.17 149.40 152.71 BPT 1,161.28 1,157.97 1,002.95 Gross Margin after cost reallocation % 36.05% 34.30% 33.25% Hydrated lime Quantities MT 21,412 22,537 25,684 Sale revenues MB 91.58 88.45 97.86 BPT 4,277.04 3,924.77 3,810.31 Cost MB (50.27) (54.71) (63.74) BPT (2,347.73) (2,427.82) (2,481.82) Gross Profit before cost reallocation MB 41.31 33.74 34.12 BPT 1,929.30 1,496.95 1,328.48 Gross Margin before cost reallocation % 45.11% 38.14% 34.87% Reallocate Cost from SGA MB

• (0.29)

BPT

• (0.00)

Gross Profit after cost reallocation MB 41.31 33.74 33.83 BPT 1,929.30 1,496.95 1,317.20 Gross Margin after cost reallocation % 45.11% 38.14% 34.57% Limestone Quantities MT 194,325 122,598 90,909 Sale revenues MB 65.29 53.62 39.44 BPT 335.97 437.36 433.89 Cost MB (34.00) (24.41) (22.93) BPT (174.99) (199.13) (252.28) Gross margin MB 31.28 29.21 16.51 BPT 160.98 238.23 181.61 Gross Margin before cost reallocation % 47.92% 54.47% 41.86% Reallocate Cost from SGA MB

• (2.24)

BPT

• (0.00)

Gross Profit after cost reallocation MB 31.28 29.21 14.27 BPT 160.98 238.23 94.43 Gross Margin after cost reallocation % 47.92% 54.47% 36.18%

30

Strictly Private & Confidential

CMAN’s IPO Offering Summary

• 50,000,000

100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 21 Mar 18 5 Apr 18 20 Apr 18 5 May 18 1 2 3 4 5 6

Closing Price (Baht) Volume (million shares)

Volumn CMAN

1st Day Close 4.36 (+14% from IPO) IPO Price: 3.84

Price performance Company Information

Company Name Chememan Pubic Company Limited (“CMAN”) Market Capitalization as of 14 May 2018 3,897.60 mn THB Market/Sector SET/ Petrochemical Listed Date 21 March 2018 Offering Size THB 921.6 mm IPO Price THB 3.84 Top 10 Shareholders as of 21 March 2018

• 1. Mr. Chai Srivikorn:

27.90%

• 2. Buranachart Co.,Ltd:

26.26%

• 3. DEUTSCHE BANK AG LONDON:

1.21%

• 4. Mrs. Songsri Siengsakul:

1.07%

• 5. Mr. Apichat Laochinda:

0.95%

• 6. Miss Pannin Kitiparaporn

0.94%

• 7. Mr. Chatwut Tanchantarapong

0.93%

• 8. Miss Korakot Srivikorn

0.91%

• 9. Mr. Charn Srivikorn

0.91%

• 10. Mr. Suwat Tunlayadechanont

0.85%

Current Price: 4.06 Source: SETSMART, as 10 May 2018

Operation Performance Q1 2018

32

Strictly Private & Confidential

CURRENT PRODUCTION FACILITY AND INSTALLED CAPACITY

• 2. Prabuddhabaht Plant (at Saraburi)

PB1 = 182,500 MT/year PB2 = 182,500 MT/year Grand total 365,000 MT/year

• 3. Kangkoi Plant (at Saraburi)

KK1 = 54,750 MT/year KK2 = 109,500 MT/year KK3(1) = 73,000 MT/year KK5(2) = 109,500 MT/year KK6(3) = 109,500 MT/year Grand total 529,250 MT/year

• 4. Rayong Plant (at Rayong)

Grand total 87,600 MT/year

Notes: (1) KK3 COD on September 14, 2016 (2) KK5 COD on August 12, 2016 (3) KK6 COD on January 20, 2018 (4) KK4 start foundation in April 2018

Saraburi Rayong

Mineable reserve 115 million MT

• 1. Tubkwang Quarry (at Saraburi)

KK4(4) = 73,000 MT/year

33

Strictly Private & Confidential

CURRENT PRODUCTION FACILITY AND INSTALLED CAPACITY (CONT’D)

Prabuddhabaht Plant (at Saraburi)

236,121 212,927 220,362 40,101 365,000 365,000 365,000 90,000 64.69% 58.34% 60.37% 44.56% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

• 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000

2015 2016 2017 3M 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

Quicklime Plant

34

Strictly Private & Confidential

87,145 105,970 86,296 25,853 109,500 109,500 109,500 27,000 79.58% 96.78% 78.81% 95.75% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 50,000 100,000 150,000 200,000 250,000

2015 2016 2017 3M 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

KK2

51,603 53,356 53,275 13,957 54,570 54,570 54,570 13,500 94.56% 97.78% 97.63% 103.39% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 20,000 40,000 60,000 80,000 100,000 120,000

2015 2016 2017 3M 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

KK1

Kangkoi Plant (at Saraburi)

11,980 63,828 17,270 21,800 73,000 18,000 54.95% 87.44% 95.94% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

2016 2017 3M 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

KK3(1)

40,772 106,944 27,329 42,600 109,500 27,000 95.71% 97.67% 101.22% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 50,000 100,000 150,000 200,000 250,000

2016 2017 3M 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

KK5(2)

Notes: (1) KK3 COD on September 14, 2016 (2) KK5 COD on August 12, 2016 (3) KK6 COD on January 20, 2017

CURRENT PRODUCTION FACILITY AND INSTALLED CAPACITY (CONT’D)

21,865 27,000 80.98% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 10,000 20,000 30,000 40,000 50,000 60,000

Q1 2018

Actual Capacity (MT) Installed Capacity (MT) Utilzation Rate (%)

KK6(3)

35

Strictly Private & Confidential

SUMMARY OF QUICKLIME ACTUAL PRODUCTION CAPACITY

225,834 236,121 212,927 220,362 40,101 148,236 138,748 212,079 310,343 106,274

• 50,000

100,000 150,000 200,000 250,000 300,000 350,000

2014 2015 2016 2017 3M 2018 MT Prabuddhabaht plant Kangkoi plant

36

Strictly Private & Confidential

Hydrated Lime Plant

50,745 72,037 81,503 21,118 87,600 87,600 87,600 21,600 57.93% 82.23% 93.04% 97.77% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

2015 2016 2017 3M 2018

Actual Capacity Installed Capacity Utilzation Rate

Rayong Plant (at Rayong)

CURRENT PRODUCTION FACILITY AND INSTALLED CAPACITY (CONT’D)

Company & Business Overview

38

Strictly Private & Confidential

Conversion (MT) 1.80 : 1.00 1.00 : 1.28 Chememan Public Company Limited (“Company”) is a mineral and chemical company that transforms natural resources into basic chemicals, specialty chemicals, and synthetic products. Company’s current operations serve markets in Asia, Australia and Africa. Throughout the years, the company has been well recognized as a leader in the lime industry in Asia. Company continues to expand both horizontally and vertically to domestic

and international location.

LIME PROCESSES

Notes: (1) Lime is defined as Quicklime and Hydrated lime products. (2) From report of mineable reserve for limestone mining (as of October 2016)

TUBKWANG QUARRY WITH MINING CONCESSION LIME PRODUCTION PLANT

Type of Quarry Area Location Age of Concession Mineable Reserve

Mining Limestone 230-1-41 rai Tubkwang, Saraburi 25 Years

(June 24, 2015 – June 23, 2040)

115 million MT(2)

Province District Number of Kiln Installed Capacity (MT/year) Type of Production

Saraburi Kangkoi 5 Kilns 456,250 Quicklime

Prabuddhabaht

2 Kilns 365,000 Quicklime Rayong Pluakdaeng 1 Hydrator 87,600 Hydrated Lime

CHEMEMAN AT A GLANCE

The top 10 leading producer in the global lime(1) industry as well as targeting to reach 1 million MT/year

• f lime capacity by 2020

MOVING FORWARD TO REACH

TUBKWANG QUARRY

QUICKLIME

CaO

HYDRATED LIME

Ca(OH)2

HYDRATION HEAT

(CALCINATION)

MINING

LIMESTONE

CaCO3

+ Heat → O →

39

Strictly Private & Confidential

365.00 365.00 365.00 365.00 419.75 616.85 616.85 799.35 799.35 908.85 1,226.40

2003 2004 2006 2008 2011 2013 2015 2016 2017 2018E 2019E

Quicklime's capacity (Thousand MT) Hydrated lime's capacity (Thousand MT)

Granted 25 years mining concession for Tubkwang quarry

The concession which covers the same area of former one will expire in 2040.

COD of KK3 and KK5

(at Kangkoi)

COD of KK2

(at Kangkoi) COD of Hydrated Lime Plant (at Rayong)

Started construction of KK6

(at Kangkoi)

COD of KK1

(at Kangkoi)

Shifting fuel oil to natural gas

• f Prabuddhabaht plant

Started construction of mineral dressing plant

(at Kangkoi)

Obtained mining concession for Tubkwang quarry

at Kangkoi, Saraburi expired in 2016

Acquired Quicklime’s plant

at Prabuddhabaht, Saraburi including 2 kilns (PB1 and PB2)

2003 2004 2006 2008 2011 2013 2015 2016 2017

COMPANY MILESTONES

COD of KK6 Start construction of KK 4 (at Kangkoi)

2018E

Expected COD

• f India plants

2019E

40

Strictly Private & Confidential

365,000 365,000 365,000 346,750 456,250 529,250 87,600 87,600 87,600

799,350 908,850

197,100 47,450

1,226,400

2017 2018 2019

Visakhapatnam, India(1)

SUMMARY OF CHEMEMAN’S CAPACITY AND EXPANSION PLAN

Notes: (1) Joint venture with alliances in India to establish lime plant which ownership proportion is equal to 50%

Total installed capacity classified by lime plant (in MT/year)

Chememan capacity will increase from

799,350 MT to 1,226,400 MT

from 2017 – 2019

• 1. Quicklime plant
• 2. Hydrated lime plant

Tuticorin, India(1) Rayong plant Prabuddhabaht plant Kangkoi plant

41

Strictly Private & Confidential

PRODUCTION PROCESS

Mining Mineral Dressing Plant Calcination Hydrator Operating at Kangkoi and Prabuddhabaht Plant Tubkwang Quarry Operating at Rayong Plant

LIMESTONE QUICKLIME HYDRATED LIME

Distribute

LIMESTONE GRINDING QUICKLIME GRINDING

Main Product HYDRATION HEAT

(CALCINATION)

Grinding Plant

1

Lime production begins with extraction of limestone from quarry.

2

Heated limestone at high temperature in the calcination process, it transforms into quicklime.

3

Quicklime can be processed into Hydrated Lime through a hydration process. Grinding Plant Distribute Distribute Distribute Distribute Main Product

42

Strictly Private & Confidential

LIME PRODUCTS

• 1. Quicklime (CaO)

Quicklime or Calcium Oxide is the output from calcination process of limestone. Chememan’s is a high calcium quicklime containing less impurities. It is a white, alkaline and crystalline solid.

• 2. Hydrated Lime (Ca(OH)2)

Hydrated Lime or Calcium Hydroxide is a dry power produced by combining quicklime with a sufficient amount of water through a hydrator.

• 3. Limestone (CaCO3)

Limestone or Calcium Carbonate is an

• utput

from

• pencast

mining at Tubkwang quarry where is a mineable reserve containing Ultra – High Calcium Limestone.

Quicklime Grinding Quicklime Hydrated Lime Limestone Grinding Limestone

43

Strictly Private & Confidential

OVERALL APPLICATION OF LIME PRODUCTS

The below diagram illustrates lime application for each end use segment classified by the company’s products.

Pulp & Paper

Glass and Bottle

Eliminate contamination in production process

Building Materials

Specialty Fiber Glass

Used in production processes of advance engineering materials

Waste and Water Treatment Iron & Steel Precious Metals and Non-ferrous Metals Chemicals Agricultural Farm

• Sugar Products

Separate contaminant from raw sugar and refined sugar

• Precious Metals and

Non-ferrous Metals

Neutralize Acid-base of wastewater and chemicals used in mining process

• Chemicals

Used as ingredient of basic chemicals production such as sodium alkalies and calcium carbide

• Agricultural Farm

− Improve soil quality and treat acid soil − Neutralize Acid-base for shrimp farming − Used as animal feed ingredient as the source of Calcium

• Waste and Water

Treatment

− Eliminate sulfur dioxide generated by

• peration of power

plant and waste incinerator − Lead to precipitate, separate suspension and reduce water hardness in water production

• Building Materials

− Used as ingredient of cement, autoclaved aerate concrete block and other construction materials − Strengthen mortars − Adjust area condition before construction

• Pulp & Paper

− Chemicals Recovery − Strengthen paper structure − Used as component of Precipitated Calcium Carbonate(PCC)

• Iron & Steel

Eliminate contaminant from smelting iron and high quality iron production

Bioplastics

Used in fermenting process of sugar and cassava, which is a basic ingredient of bioplastics production

Sugar Products

Industry Overview

45

Strictly Private & Confidential

99 132 171

2011 2016 2021E

QUICKLIME AND HYDRATED LIME MARKET IN THAILAND

Hydrated Lime Quicklime

Demand in Thailand (Thousand MT)

Thailand has allocated a budget of THB2.4 trillion for developing the nation’s port, rail, and road infrastructure by 2022, which is expected to stimulate lime demand in end user segments such as steel, building material. Demand for quicklime remains supported by healthy growth of building material (AAC blocks, mortar) market due to construction growth, rapid urbanization, and improved economic condition. According to the World Steel Association, the steel industry is likely to grow at a steady pace of 3.3%, and increasing opportunities for lime from 2016 to 2021. The Thai Pulp and Paper Industries Associate (TPPIA) anticipates that the paper industry would witness growth of 4% to 6% from 2016 to 2021, significantly impacting demand for lime over the same period.

1

Thailand is the second largest sugar exporter and fifth largest producer globally. More demand is likely to create robust growth in long term.

2 3 5 4

Driving factors for lime industry in Thailand

194

20%

184

19%

165

17%

136

14%

136

14%

• 1. Construction: due to thrust on

infrastructure projects from government and boost to residential construction

• 2. Sugar: a well–established sugar industry with

significant global exports

• 3. Steel and Metal
• 4. Pulp & Paper
• 5. Chemicals

20%

(194,000 MT)

19%

(184,000 MT)

17%

(165,000 MT)

14%

(136,000 MT)

14%

(136,000 MT) Source: DPIM, USGS, Forecast by Frost & Sullivan

634 778 970

2011 2016 2021E Top 5 Lime end use segments in 2016

Along with upward trend of Quicklime and Hydrated Lime’s demand in Thailand, there is an opportunity on sales growth for CHEMEMAN.

46

Strictly Private & Confidential

0.54 10.70 38.87 8.53

0.54 11.51 38.97 11.47

• 150.00%
• 100.00%
• 50.00%

• 10.00

India Australia Laos Philipplines Export quantity by Chememan Export quantity from Thailand

QUICKLIME AND HYDRATED LIME MARKET IN SELECTED COUNTRIES

Notes: (1) Selected countries refer to Thailand, India, Australia, Vietnam, Japan, South Korea, China and Taiwan.

Proportion of Quicklime exports from Chememan to selected countries (Thousand MT), 2016

Source: Chememan Public Company Limited, Frost & Sullivan Analysis Source: Chememan Public Company Limited, Frost & Sullivan Analysis

Proportion of Hydrated Lime exports from Chememan to selected countries (Thousand MT), 2016

46.71 30.50 8.60 0.91 25.37 8.52 2.35

48.09 33.00 8.80 0.92 55.72 8.54 2.79

• 150.00%
• 100.00%
• 50.00%

• 20.00

India Australia Japan South Korea Laos Indonesia Philipplines Export quantity by Chememan Export quantity from Thailand

10.0%

• f Total

imports into the country

40.1% 96.6% 2.0% 40.1% 8.5% 8.4% 3.9%

• f Total

imports into the country

47.2% 99.1% 19.9% 121,926 138,081 143,059

2011 2016 2021E

28,192 31,822 32,591

2011 2016 2021E

Demand of Quicklime in selected countries(1) (Thousand MT) Demand of Hydrated Lime in selected countries(1) (Thousand MT)

Source: Frost & Sullivan Analysis Source: Frost & Sullivan Analysis

= Chememan’s export portion of total imports into the country

In the end use segments, there exist healthy long-term growth prospects for Quicklime and Hydrated Lime which encourage opportunity for future market growth both in Thailand and selected countries.

Even though Chememan dominates major market share from Thailand exports, there is still a room of opportunity from demand

• f those countries such as India, Australia

and ASEAN countries to be fulfilled.

47

Strictly Private & Confidential

INDUSTRY OUTLOOK IN SELECTED COUNTRIES

Australia Taiwan Japan South Korea Vietnam China India

China

The demand of quicklime and hydrated lime is expected to remain flat. Due to excess production capacity in steel sector, government is scaling down operations which could impact demand for lime.

India

Demand for quicklime, hydrated lime, and limestone is expected to remain robust given its strong link to high-growth industries such as construction, steel production, and cement manufacturing.

Vietnam

The quicklime market is projected to reach 1.3 million MT by 2021, driven by steel consumption and production. − The Vietnamese government pursues to replace all polluting manual- burning lime kilns by 2020 and allow only producers who have permission to export. Thus, export quantities of lime from Vietnam is expected to reduce. − According to the amendment given by Vietnam’s Ministry of Finance, lime exporter cannot credit for input VAT, which becomes a cost of product companies. − Chememan is likely to have price competitiveness when exporting from Thailand.

Japan

Japan currently meets its quicklime and hydrated lime demand on little reliance from import. Due to government policies, Japan’s import quantities trends to reduce.

South Korea

Steady growth in automotive, shipbuilding and construction sector is likely to drive demand for quicklime and hydrated lime.

Taiwan

Future growth will be driven by applications

• f ground calcium carbonate, precipitated

calcium carbonate, quicklime, and hydrated lime in industries such as steel, water treatment, sewage treatment, and chemicals.

Australia

Quicklime and hydrated lime is stimulated by urbanization, growing investment in infrastructure, and industrial applications. According to environmental restriction, the supply of quicklime produced by shell sand trends to decline, which paves the way for increased imports from Thailand, Vietnam, and Malaysia.

Investment Highlight

49

Strictly Private & Confidential

• 1. CHEMEMAN is the only company processing both mining concession and

lime production plants

25 years mining concession on Tubkwang quarry Lime production plants

• Tubkwang quarry contains Ultra –

High Calcium Limestone

consisting of 98.0% of Calcium Carbonate(1). With high quality raw material, Chememan is capable of delivering high quality product to customers.

• 115 million MT mineable reserve

estimated by GMT(2) secures that company has enough raw material to feed current capacity and expansion plan.

• There is a barrier to entry for new
• competitors. According to mining

concession regulation, they provide priority to first concession

• wner.

Notes: (1) Based on Frost & Sullivan (S) Pte. Ltd. (“Frost &Sullivan”) Independent Market Research on Quicklime, Hydrated Lime and Limestone (2) GMT Corporation Co., Ltd is a consulting company specialized in geological, environmental, engineering resources exploration.

• Tubkwang quarry is located

nearby Kangkoi lime production plants.

• Provide efficient logistics in terms of

time and cost from carrying limestone to lime production process

• Processing both concession on

Tubkwang quarry and lime production plants help company be able to control cost and product quality more efficient than

• thers who neither process

concession nor plants.

50

Strictly Private & Confidential

365,000 365,000 365,000 346,750 456,250(1) 529,250 87,600 87,600 87,600

799,350 908,850

197,100 47,450

1,226,400

2017 2018 2019

Notes: (1) Including new Quicklime kiln (KK6) with incremental 109,500 MT/year of installed capacity (2) Based on Frost & Sullivan (S) Pte. Ltd. (“Frost &Sullivan”) Independent Market Research on Quicklime, Hydrated Lime and Limestone as of June 30, 2017 (3) Joint venture with alliances in India to establish lime plant which ownership proportion is equal to 50% (4) Based on information shared by The Company

Total installed capacity classified by lime plant (in MT/year)

• 1. Quicklime plant
• 2. Hydrated lime plant

Tuticorin, India(3) Visakhapatnam, India(3) Rayong plant Prabuddhabaht plant Kangkoi plant

40% of total Quicklime and Hydrated Lime’s installed capacity in Thailand(2)

29.1%

Others 70.9%

81%

Others 19% Chememan Chememan

21.2%

Others 78.8%

Chememan

84%

Others 16%

Chememan Quicklime Quicklime Hydrated Lime Hydrated Lime

Estimated market share in Domestic market (%), 2016 Estimated market share in Thailand’s export market (%), 2016

Source: Frost & Sullivan Source: Frost & Sullivan Source: Frost & Sullivan Source: Frost & Sullivan

• 2. Thailand’s largest lime producer

Quicklime kilns in Thailand – Installed capacity (as of 31st Dec’16)(4)

Company Name Installed Capacity (MT/year)

Chememan 711,750

Competitor 1 328,500 Competitor 2 248,200 Competitor 3 146,000 Others 299,320 Total 1,733,750

Hydrated Lime kilns in Thailand – Installed capacity (as of 31st Dec’16)(4)

Company Name Installed Capacity (MT/year)

Chememan 87,600

Competitor 1 86,400 Competitor 2 86,400 Competitor 3 69,120 Others 85,296 Total 414,816

Chememan dominates major lime market share, especially in Thailand export market. These competitive advantage

affirms that the company product quality is accepted

both in domestic and international market. The large scale of installed capacity and ongoing expansion plan reduces production cost per unit which creates Economies of Scale.

51

Strictly Private & Confidential

• 3. Long-term relationship and insightfully understand customers need

Providing additional services and assistances to facilitate customers operation such as

provide silos built on customer plant to reduce transportation cost and increase efficiency of logistics and inventory management. Insightfully understanding in lime application and business characteristic helps company develop

suitable product to satisfy customers need.

Maintaining sustainable relationship and obtaining trust from customers, Chememan can enter into

long-term sales agreement of various end user industry.

1 2 3

52

Strictly Private & Confidential

There is a room of opportunities in lime exporting market.

• Demand for Quicklime and

Hydrated Lime in Thailand and selected countries is likely to record a CAGR of 0.5% from 2016 to 2021.

• ASEAN’s GDP growth in 2016 is

recorded 4.9% and expects to register a CAGR of 5.2% from 2017 to 2021.

• There is a growth signal from

Australia’s end users of Quicklime and Hydrated Lime.

• 4. Diversify customer’s segments and regions
• Reduce concentration risk on customer’s segment and region

− Since Chememan sales do not depend on a specific customer segment or region, this variety reduces customer concentration risk by enhancing company diversification. − High potential growth of customer base country stimulates expected upward trend on company sales.

• The opportunity to expand target market

− A variety of end use segments and countries creates a room of opportunity from available demand to be fulfilled. − The success in exporting to one customer leads to expansion in another customer’s partner as a chain. More than 10 end use segments Customer base is covered by more than 20 countries with high potential growth

53

Strictly Private & Confidential

• 5. Available facility to enhance production capacity and expand the market

Kangkoi plant is available for expansion.

Currently, there are KK1-KK3 and KK5 in operation. Moreover, new quicklime capacity (KK6) is estimated to COD within Q1 2018. We have already expanded production capacity in

• verseas to become a supported platform for

market expansion in aspects of source of supply and customer bases.

Onshore Offshore

54

Strictly Private & Confidential

Kamol Sowattanaskul

Vice President - Business Development

• 6. Expertise and experienced board and management team

Majority of management team members have solid business and technology background and track record Adisak Lowjun

Chief Executive Officer

• Master’s degree in Business

Administration (Finance), University

• f Texas at Arlington, USA
• Bachelor of Engineering,

Chulalongkorn University

Suwat Tunlayadechanont

Deputy Chief Executive Officer

• Master of Engineering

Administration, The George Washington University, USA

• Bachelor of Engineering

(Mechanical Engineering), Chulalongkorn University

Krissanapong Tatirungsunsook

Vice President - Operations (Mining)

Komgrit Panom-upatam

Vice President - Operations (Production)

Wanus Petchruarn

Vice President - Maintenance

Pathomphob Jainkiatfu

Vice President - Operations Services

Nisaluck Mungpalchol

Vice President – Finance & Accounting

Boonlert Thungkatikajonkit

Vice President – Commercial Division 2

Kosol Pittayaprasertkul

Vice President – Supply Chain, Vice President – Commercial Division 1 (Acting)

Apichat Laochinda

Vice President - Engineering

Piengkamol Kraidej

Vice President – Human Resources & Administration

Panom Praiyontip

Vice President - Business Development

Nattapond Kongsompong

Vice President – Corporate Affairs

Wutthichai Tankuranand

Chief Financial Officer

• Master’s degree in Business

Administration, University of Michigan (Ann Arbor), USA

• Bachelor of Engineering (Electronic

Engineering), Chulalongkorn University

Other members of senior management team

Sunee Wattanapholmongkol

Vice President - Business Development

Business Strategy

56

Strictly Private & Confidential

• Chememan’s human resource is gathered by expert and experienced

personnel in various related fields.

• Insightfully understanding in lime application, business characteristic and

customer demand stimulates efficiency of production technology development.

• Up-to-date production technology helps company be able to sever suitable

product to customers and enhance productivity.

• Company primarily considers about efficiency of resource management.
• Owning ultra high-calcium limestone quarry (Tubkwang, Saraburi) makes a

competitive advantage for company in aspect of controllable quality and cost.

• 1. To become a global lime industry leader
• Chememan aims to expand capacity from 0.8 million MT/year to 1.0 million

MT/year within 2020.

• Company continuously searches for suitable supply together with ongoing R&D.
• These expansion not only increase productivity, but also expand customer

bases and business partner.

1.1

Expand capacity based both in Thailand and overseas

1.2

Maintain optimal efficiency in limestone resource

1.3

Develop production technologies to enhance producing capability

1.4

Recruit, retain and develop skillful team

57

Strictly Private & Confidential

• Well-organized in financial cost and liquidity makes company be capable of

supporting various projects in the future.

• Expansion of production capacity creates Economics of scale, which reduces

cost per unit.

• Company provides Kangkoi Plant as manufacturing and distributing bases, 2

distribution centers in Australia and 2 under constructing based in India.

• Supported by comprehensive distribution center helps company manage

logistic system efficiently and thoroughly reach target customers.

• 2. To create earning growth
• Chememan not only seeks for new customers, but also maintains existing one to

create sustainable profitability.

• As lime application is suite for various end use segments, Chememan is able to

reduce customer concentration risk by diversifying target market.

2.1

Variety of customer’s segment and region

2.2

Comprehensive distribution center

2.3

Economies of scale

2.4

Optimize financial cost efficiently

58

Strictly Private & Confidential

• Following the concept of concomitance between social and business,

company is willing to take responsibility to education, religious, environment and community work.

• Environment concern initially takes into account by stringent policy and action

plan as well as straightly following regulation in order to preserve safety and healthy environment condition.

• The important key leading to company sustainable growth is customers.
• Company puts effort to maintain relationship with customers by keeping high

standard of product quality and delivering suitable product application to customers.

• 3. For sustainable development
• Human resource is the most valuable driver in organization.
• Company took a serious action in recruiting, training, developing processes as

well as providing opportunities in career path for employees.

3.1

Robust, develop, and retain employees

3.2

Satisfy customers’ desirability

3.3

Friendly environment

3.4

Social responsibility