Performance Announcement Presentation for the 1 st Half of 2017 - - PowerPoint PPT Presentation

Performance Announcement Presentation for the 1st Half of 2017

Company Overview Plastic and Petrochemical Industry The 1H 2017 Performance IR Report & Investment Highlight Q&A

Today Content

Company Overview

GC Revenue During 2007 – 1H/2017

Sales comparison 1H 2016 - 2017

• Value

(1%) (YoY)

• Quantity

(8%) (YoY)

• GC has been founded since

1994 by experienced management

• GC is the distributor with over 30

leading producers of plastics and petrochemical raw materials from around the world.

• Most of these producers are

among the top 3 in the world in that product in terms of technology & production capacity.

• GC is not an ordinary distributor.

On top of ordinary distribution role, GC provide technical advice and useful information to customers since GC position itself to be Your best partner for valued co-creation solution and service in industrial raw material supply

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H - 2017

3,473 3,429 2,665 3,678 3,793 3,710 3,172 3,659 3,659 3,985 2,028

Where we are in the value chain of Thai Petrochemical Industry.

Olefin&Aromatic Producers Monomer producers (MEG, VCM) Converters

Petrochemical and plastic producers Petrochemical and plastic producers Petrochemical and plastic producers

Upstream End users Intermediate

Compounders Master batch producers

Compounders

Polymer producers (PP, PE, PVC)

Downstream

GC’s role and positioning in the market Leads the differentiation

Suppliers

S1 S2 S3 S4 S5 Sn

Customers

C1 C2 C3 C4 C5 Cn

Economy of Scope to Customers Economy of Scale to Suppliers

Logistic : Warehousing, small delivery, and repacking Sales & Marketing : Closely contact to end markets/customers Technical Services : Troubleshooting / Product and Market Development Financing & structuring solution : Extending our expertise to customer

Provided

Major Shareholders

Free Float Overview As of March 10th, 2017 Total Shareholders (Account) 1,132 Minor Shareholders (Free float) 1,001 % Shares in Minor Shareholders (Free float) 32.22%

Rank Major Shareholders #Shares % Shares 1

• Mr. Somchai Kulimakin

44,499,800 22.25 2

• Mr. Aikachai Sirijuntanan

27,125,000 13.56 3

• Mr. Sumruay Tichachol

27,125,000 13.56 4

• Mr. Bhiya Jriyasetapong

26,125,000 13.06 Sub total 124,874,800 62.44

1994 GC was established by 5 founders with initial registered capital of 2 MB. 1998 Distributing agent of OCV Reinforcement Co., Ltd 1999 Distributing agent of Siam Polystyrene (Thailand) Co., ltd. and Cabot Plastic Hong Kong Ltd. 2005 Listed company and paid-up capital to 200 MB More Product from Exxon : Butyl & Vistamaxx

1994 - 1999 2006 - Current 2000 - 2005

Start business with commodity plastic Diversify company portfolio from commodity to specialty plastic Create sustainable growth being the best partner for solution and service in industrial raw material supply 2011 Distributing agent of Miliken Chemical,Imerys Meneral, Timcal Ltd. Exxon Product : ENABLE, EXCEED 2012 Change Distributing agent of SCG to PTTPM. Exxon Product : Special Compound

Company History

Invest in PV solar rooftop project (23 years remaining duration power purchase agreement (PPA) with MEA.) 2004 Distributing agent of ExxonMobil and Rio Tinto Mineral Asia 1996 Distributing agent of SCG Plastics Co., ltd. and Eastman Chemical , which was the start

• f specialty product distribution.

1997 Distributing agent of DuPont Performance Polymers and Chi Mei 2008 Distributing agent of DIC Exxon Product : PE PP 2010 Distributing agent of BST Elastomers Co., Ltd. 2006 Distributing agent of Nanocor Inc. 2009 Exxon Product : Vistamaxx 1994 1996 1998 2000 2004 2006 2008 2010 2012 2014 2015 2016 2014 Distributing agent of TechnoGreen and UBE GROUP 2015 Service water cooling system solutions and Distributing agent of 3M and Campine

Ethics Integrity Professional & Focus Partnership

Strive for better Vision Corporate Value

The Corporate Governance Nomination and Remuneration Committee Audit Committee

Chief Marketing Officer 4 Chief Marketing Officer 3 Chief Marketing Officer 2 Chief Marketing Officer 1

Chief Operating Officer Internal Audit New Business Development

Commodities & Polyolefin Specialty Engineering Polymer & Rubber Specialty Chemicals & Intermediate Market Development & Sales Support

Executive Committee Chief Financial Officer

Information Communications Technology (ICT) Human resource and Administration

Logistics

Board of Director

Finance & Accounting & ERP

Chief Executive Officer

Business Support

Organization Chart

Corporate Strategy

Maintain existing strong market positioning Become solid partner with supplier and customer Offer total professional solution Be leader in advanced technology product Grow towards the growing industries Develop new application/market from initial stage

Corporate Strategy 2017 : VUCAR

V : Value

creation thru Innovation and Differentiation

U : Uncompromisingness

with Business Growth and Profit commitment

C : Cost

management thru Efficiency and Effectiveness

A : Aligned

investment for Future Growth and Sustainability

R : Research

and Development on Customer Needs in Market- Driven Product Development

BU1

COMMODITY POLYMER

BU3

SPECIALTY CHEMICALS & INTERMEDIATE

BU2 SPECIALTY

ENGINEERING POLYMER & RUBBER

• Polyolefins

PE: HDPE, LDPE, LLDPE (C4,C8) PP: Homo, Block Copo, Random

• PU
• Tie Layer Polymer
• Specialty Polyolefins
• Nylon, POM, PBT, TEEE, PCT, LCP, PC
• Black/White MB
• PETG/PCTG, CA
• PS, HIPS, ABS, SAN, SBC
• EVA for HMA, Hydrocarbon Resin
• PE Plastomer, PP Plastomer, TPO
• TPVs, TPU
• TPE, TPR, Reinforcement compound
• Glass Fiber (Chop Strand, Long glass)
• EPDM , BUTYL
• BR, SBR, FKM
• TALC, SILICA, CARBON BLACK
• FLAME RETARDANT (ZB, ATO)
• Plastic Additives
• Intermediate chemical
• Water cooling system solutions

Our Business Unit

Customer segment by Sales Percent of Value 1H/2016 38,212 Tons 35,074 Tons 2,051 MB. 2,021 MB. 1H/2017

Packaging 40% Consumer products & Household 20% Automotive 17% Petrochemical & Intermediate 11% Electrical & Electronics 7% Construction 2% Others 0% Packaging 35% Consumer products & Household 23% Automotive 16% Petrochemical & Intermediate 14% Electrical & Electronics 8% Construction 1% Others 0%

(8%) (1%)

Company Overview Plastic and Petrochemical Industry The 1H 2017 Performance IR Report & Investment Highlight Q&A

Today Content

Crude Oil Price

14

Source : http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=1y

Crude oil prices continue to face pressure. Rising

• il output in Libya and

Nigeria could rein in surging US crude

• exports. Effected down

trend to plastic resin price.

15

Export value expanded well, following improved international demand.

Source : Bank of Thailand

16

Production index remained stable, since local demand is not so good and the discharge of some industrial inventory.

Source : Bank of Thailand

17

Consumption factors are not strong, although improved in agricultural revenue. But the consumer confidence index has declined due to concerns agricultural price trends

Source : Bank of Thailand

18

• Private investment

indicators shrink slightly, notice from the construction investment indicators.

• Government spending

shrunk.

Source : Bank of Thailand

Company Overview Plastic and Petrochemical Industry The 1H 2017 Performance IR Report & Investment Highlight Q&A

Today Content

20 20

1H/2017 Performance

• Cr. Picture : https://supplychain.llnl.gov/performance-information

21

Statements of Comprehensive Income

Unit : Million Baht 2017 2016 Change 2017 2016 Change Sales 948.69 996.46

• 5%

2,020.73 2,050.69

• 1%

COGS 897.95 929.43

• 3%

1,899.03 1,916.76

• 1%

Gross Profit 50.74 67.03

• 24%

121.70 133.93

• 9%

Selling & Admin Expenses 29.93 29.11 3% 60.88 59.68 2% Reduction of inventory to net realisable value (Reversal) 3.00 0.00 100% 3.00 (1.50) 300% EBITDA 17.81 37.92

• 53%

57.82 75.75

• 24%

Depreciation 3.12 3.01 4% 6.30 5.90 7% Interest Expenses 3.95 4.10

• 4%

7.72 7.53 3% Profit Before Other Income 10.74 30.81

• 65%

43.80 62.32

• 30%

Other Income 3.00 0.80 275% 5.00 1.73 189% Gain (Loss) on exchange rate 0.17 1.18

• 86%

1.82 2.08

• 13%

Profit before Tax 13.91 32.79

• 58%

50.62 66.13

• 23%

Tax 3.20 6.69

• 52%

10.05 12.96

• 22%

Deferred Tax Expenses (0.68) (0.12) 467% (0.21) 0.78

• 127%

Profit for the period 11.39 26.22

• 57%

40.78 52.39

• 22%

Actual Q2 Actual 1st_Half

22

Sales Structure

0% 20% 40% 60% 80% 100%

2013 2014 2015 2016 1H/2017

58% 65% 65% 70% 69% 42% 35% 35% 30% 31% 0% 0% 0% 0% 0% Sales Quantity in Percentage

BU3 BU2 BU1

0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 1H/2017

44% 53% 52% 57% 56% 55% 46% 47% 42% 43% 1% 1% 1% 1% 1% Sales Value in Percentage

BU3 BU2 BU1

• 10

20 30 40 50 60 70

2013 2014 2015 2016 1H/2017

28.1 35.1 40.8 51.0 24.1 20.1 19.0 21.7 21.9 11.0 0.0 0.1 0.1 0.1 0.0

'000 T

Sales Quantity

BU3 BU2 BU1

62.6 35.1 54.2 48.2 73.0

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2013 2014 2015 2016 1H/2017

1,405 1,937 1,915 2,287 1,138 1,737 1,692 1,707 1,661 871 17 18 24 31 12 Sales Value-Million Baht

BU3 BU2 BU1

3,646 2,021 3,159 3,647 3,979

Gross Profit Structure

23 23

• 50

100 150 200 250 300 2013 2014 2015 2016 1H/2017

55 51 67 85 34 177 162 170 180 92 4 5 8 9 4 Gross Profit By BU

BU3 BU2 BU1

236 245 218 130

274 0% 20% 40% 60% 80% 100%

2013 2014 2015 2016 1H/2017

23% 23% 27% 31% 26% 75% 74% 70% 66% 71% 2% 3% 3% 3% 3% Gross Profit in Percentage

BU3 BU2 BU1

3.9% 2.6% 3.5% 3.7% 3.0% 10.2% 9.6% 9.9% 10.8% 10.6% 22.4% 30.1% 33.3% 30.2% 29.4%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

2013 2014 2015 2016 1H/2017

Gross Profit Margin by BU

BU1 BU2 BU3

24 24

Statements of Comprehensive Income Highlight

Profitability Ratio

Revenue & Net Profit

Profit Margin

• GC’s gross profit margin of 1st Half_2017 was

lower than 1st Half_2016’s due to the sharp drop in selling price led by oil price fluctuation. This also caused a severe price war among the traders.

• GC’s net profit margin of 1st Half_2017 has been

decreasing compared to 1st Half_2016’s due mainly to the lower sales value and profit margin as well as an increase in some operating expenses. Profit Margin

• GC’s gross profit margin of 1st Half_2017 was

lower than 1st Half_2016’s due to the sharp drop in selling price led by oil price fluctuation. This also caused a severe price war among the traders.

• GC’s net profit margin of 1st Half_2017 has been

decreasing compared to 1st Half_2016’s due mainly to the lower sales value and profit margin as well as an increase in some operating expenses. Revenue and Net Profit 1st Half_2017, Sales value decreased from 1st Half_2016's around 2% due to the decline in sales value of BU1 as a result of shrinking in purchasing power. 3,172 3,659 3,659 3,985 2,028 70 48 79 93 41

• 30

60 90 120 150 500 1000 1500 2000 2500 3000 3500 4000

2013 2014 2015 2016 1H/2017

Revenue (Million Baht)

Revenue Net Profit

6.93 5.48 6.29 6.48 6.02 2.21 1.31 2.17 2.34 2.02 17.44 12.08 19.56 21.81 18.90

• 5

10 15 20 25 30 35 40 45 50 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

2013 2014 2015 2016 1H/2017

Gross Profit Margin (%) Net Profit Margin (%) ROE (%)

ROE

Profit Margin

25 25

Statements of Financial Position

Unit : Million Baht Asset 30/6/2017 31/12/2016 Change % Trade Receivables 721.28 700.88 20.40 3% Inventory 525.83 478.66 47.17 10% Net Fixed Assets 122.16 126.95

• 4.79
• 4%

Total Assets 1,407.29 1,361.09 46.20 3% Liabilities Short Term Loan 708.31 662.03 46.28 7% Trade Payables 227.55 223.32 4.23 2% Total Liabilities 975.36 929.94 45.42 5% Equity Paid up Capital 200.00 200.00 0.00 0% Share Premium 56.03 56.03 0.00 0% Retained Earnings 175.90 175.12 0.78 0% Total Equity 431.93 431.15 0.78 0%

26 26

Statements of Financial Position Highlight

D/E ratio is relatively lower. D/E ratio drop less than 2.0 which was decreased after IPO proceeds. However, the higher D/E ratio in 1st Half_2017 was resulting from the increase in short term loan and dividend paid out during Q2/2017. D/E ratio is relatively lower. D/E ratio drop less than 2.0 which was decreased after IPO proceeds. However, the higher D/E ratio in 1st Half_2017 was resulting from the increase in short term loan and dividend paid out during Q2/2017. Continuous increase in current ratio GC current ratio has been improving to higher than 1.0x since GC got more working capital from IPO proceed. This higher liquidity can reduce GC’s financial costs. Continuous increase in current ratio GC current ratio has been improving to higher than 1.0x since GC got more working capital from IPO proceed. This higher liquidity can reduce GC’s financial costs.

4.35 2.00 1.70 1.58 1.20 1.10 1.43 1.87 1.80 2.21 2.01 2.27 2.16 2.26

• 0.50

1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H/17

Debt to Equity Ratio

0.94 1.28 1.46 1.37 1.48 1.58 1.46 1.37 1.38 1.32 1.36 1.33 1.34 1.33

• 0.50

1.00 1.50 2.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H/17

Current Ratio

Dividend (BPS.) Before On X-Date

30-Jun-17 0.18 8-Sep-17 23-Aug-17 n.a. n.a. 3.43%* 31-Dec-16 0.20 17-May-17 27-Apr-17 5.60 5.40 3.57% 30-Jun-16 0.22 9-Sep-16 24-Aug-16 5.15 4.88 4.27% 31-Dec-15 0.20 29-Apr-16 18-Apr-16 4.44 4.20 4.50% 30-Jun-15 0.15 4-Sep-15 19-Aug-15 4.04 3.84 3.71% 31-Dec-14 0.08 30-Apr-15 10-Apr-15 4.42 4.30 1.81% 30-Jun-14 0.15 4-Sep-14 18-Aug-14 4.40 4.28 3.41% 31-Dec-13 0.14 30-Apr-14 11-Apr-14 4.46 4.32 3.14% 30-Jun-13 0.18 5-Sep-13 20-Aug-13 4.84 4.60 3.72% 31-Dec-12 0.19 30-Apr-13 12-Apr-13 5.00 4.84 3.80% 30-Jun-12 0.17 6-Sep-12 21-Aug-12 4.96 4.76 3.43% 31-Dec-11 0.16 30-Apr-12 12-Apr-12 4.96 4.86 3.23% 30-Jun-11 0.24 9-Sep-11 25-Aug-11 5.90 5.55 4.07% 31-Dec-10 0.26 29-Apr-11 18-Apr-11 5.80 5.50 4.48% 30-Jun-10 0.24 10-Sep-10 26-Aug-10 5.50 5.20 4.36% 31-Dec-09 0.26 30-Apr-10 16-Apr-10 4.72 4.22 5.51% 30-Jun-09 0.14 11-Sep-09 27-Aug-09 3.28 3.28 4.27% 31-Dec-08 0.12 30-Apr-09 16-Apr-09 2.40 2.40 5.00% 30-Jun-08 0.20 12-Sep-08 26-Aug-08 4.84 4.60 4.13% 31-Dec-07 0.26 30-Apr-08 17-Mar-08 4.06 3.90 6.40% 30-Jun-07 0.14 7-Sep-07 21-Aug-07 3.46 3.32 4.05% 31-Dec-06 0.15 27-Apr-07 9-Mar-07 2.92 2.78 5.14% 30-Jun-06 0.10 8-Sep-06 22-Aug-06 2.64 2.54 3.79% 31-Dec-05 0.14 28-Apr-06 10-Mar-06 2.46 2.48 5.69% * Calculated from closing price on 15/8/2017 @ 5.25 baht

Operation Period Ending Payment Date X-Date Price with X-Date Dividend Yield (cal. From before X- Date Price)

Dividend Payment Record

27

12 years listed, 24 times Dividend Paid, total ฿4.27 compare with IPO ฿2.34

28 28

Dividend Payout Ratio

108 77 96 124 80 76 70 48 79 93 41

74% 84% 83% 80% 99% 94% 91% 97% 88% 90% 88% 0% 20% 40% 60% 80% 100% 120% 140%

• 20

40 60 80 100 120 140 Dividend Payout Ratio Net Profit (Million Baht) Net Profit (Million Baht.) Dividend Payout Ratio

Company Overview Plastic and Petrochemical Industry The 1H 2017 Performance IR Report & Investment Highlight Q&A

Today Content

30

Investor Relations Report

Benchmark GC Average Petro Industrial*

P/E** Ratio 13.78 14.52 Dvd Yield (%) 6.36 3.78 ROE*** 25.79 17.62

*** *** ROE as on 30 June 2017 with the Statement of Financial for the year-end 2016

Source : SETTRADE’s website as on 31 March 2017

• 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00

2/3/60 10/3/60 20/3/60 28/3/60 5/4/60 18/4/60 26/4/60 5/5/60 16/5/60 24/5/60 1/6/60 9/6/60 19/6/60 27/6/60 5/7/60 14/7/60 24/7/60

GC Volume Trade

GC Closing (Baht) GC ปริมาณรวม (หุ้น) GC ราคาปิด (บาท) 26/6/60, 7.50 4.00 5.00 6.00 7.00 8.00 1,500 1,510 1,520 1,530 1,540 1,550 1,560 1,570 1,580 1,590 1,600

4/1/60 13/1/60 24/1/60 2/2/60 14/2/60 23/2/60 6/3/60 15/3/60 24/3/60 4/4/60 18/4/60 27/4/60 9/5/60 19/5/60 30/5/60 8/6/60 19/6/60 28/6/60 7/7/60 19/7/60 31/7/60

GC ราคาปิด (บาท) SET INDEX SET INDEX GC ราคาปิด (บาท) ปี 2560 GC Q1/2560 Q1/2560 Q4/2559 Q3/2559 Q2/2559 Q1/2559 ราคาปิ ด Closing Price 7.50 6.25 5.05 5.25 5.00 4.38

(26 มิ.ย. 60) (31 ม.ค. 60) (30 ธ.ค. 59) (18 ส.ค. 59) (10 มิ.ย. 59) (23 ม.ค. 59)

5.30 5.00 4.50 4.44 4.20 4.04

(3 พ.ค. 60) (5 ม.ค. 60) (10 ต.ค. 59) (12 ก.ย. 59) (18 เม.ย. 59) (4 ม.ค. 59)

6.99 5.67 4.81 4.87 4.58 4.25

23.22% (QoQ) 17.94% (QoQ)

• 1.15% (QoQ)

6.23% (QoQ) 7.76% (QoQ) 1.72% (QoQ)

ปริมาณการซื)อขาย Volume (share) 36,077,449 11,224,500 1,128,290 1,178,702 4,066,221 12,510,400

(26 มิ.ย. 60) (26 ม.ค. 60) (3 พ.ย. 59) (15 ก.ค. 59) (9 มิ.ย. 59) (5 ม.ค. 59)

1,000 31,124 100 100 200 3,201

(11 เม.ย. 60) (20 มี.ค. 60) (30 พ.ย. 59) (30 ก.ย. 59) (28 เม.ย. 59) (31 มี.ค. 59)

1,844,879 688,174 105,273 209,844 328,589 718,844

168.08% (QoQ) 553.70% (QoQ)

• 49.83% (QoQ)
• 36.14% (QoQ)
• 54.29% (QoQ)
• 75.91% (QoQ)

110,692,747 42,666,794 6,526,932 13,010,329 18,729,582 45,287,189

159% (QoQ) 554% (QoQ)

• 49.83% (QoQ)
• 30.54% (QoQ)
• 58.64% (QoQ)
• 75.52% (QoQ)

ปี 2559 ปริมาณเฉลี8ย ปริมาณรวม ปริมาณสูงสุด ปริมาณตํ8าสุด ราคาปิ ดเฉลี8ย ราคาปิด-สูงสุด ราคาปิด-ตํ8าสุด

GC's Dividend Yield

Remark : Source Bank of Thailand http://www2.bot.or.th/statistics/ReportPage.aspx?reportID=409 *Interest rate is a average interest rate from Bank of Thailand **GC's Dividend Yield (Yearly) : Dividend per share / before X-Date Price *** Annualized from 1H 2017 dividend pay yield at 3.43% 4.50 4.70 2.30 5.50 (0.90) 3.30 3.81 3.02 2.18 1.89 (0.90) 0.19 3.00 4.50 2.32 1.88 0.83 1.55 2.85 2.43 2.25 1.73 1.40 1.40 1.40 5.69 8.92 10.45 9.13 9.78 8.85 7.29 7.23 6.86 5.22 8.22 7.84 6.86 (2.00) 0.00 2.00 4.00 6.00 8.00 10.00 12.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017

GC's Dividend Yield

Inflation Rate Avg 1 Year Deposit Interest Rate GC's Dividend Yield (%)

***

32

Investment Highlight

An Organization of Unique Characteristics: Visionary, experienced, hands-on management team & knowledgeable staffs, Long term relation with trade partner and also Financial Institute Distributorship of the world renowned producers in plastics & petrochemicals (mostly in the top three ranking of the world in term of Advance Technology & Production Capacity) Products variety which render complete range of raw materials to best suit the customers' requirement (one stop shopping service) Sustainable growth with systematic risk management : Bad debt (trade credit insurance), foreign exchange exposure and price fluctuation Diversified and well balanced sources of revenue from various industries Regular (twice a year) Dividend payment with high yield. (Fully statutory reserve) for the past 12 years. Top 50’s dividend yield of The SET in the range of 5-10% per annum Good Corporate Governance : with very good level

Your best partner for value co-creation solution and service in industrial raw material supply

33

Thank you, Questions are welcome