The 2018 Performance Announcement Presentation February 2019 Global Connection PCL.
Company Vision Company Mission Ethic Sustainable Doing business with ethics and no Build sustainable growth of profitability legal offense and revenue to be market leader Business Partner Employee Connect the best supplier and bridge advanced Develop knowledge skill and technologies for customer’s best value as expertise to staff as professional. business partner. Work closely with Financial to create a happy workplace Institute as business partner to success 2
Today Content Company Overview Industry Info. and Economic Situation Competitors and Market Outlook Strategic Direction The 2018 Performance IR Report & Investment Highlight Q&A 3
Company Overview Business Unit Over 30 Leading producers Since 1994 - Top 3 in the world - Specialty Engineering Polymer & Rubber Specialty Commodity Chemicals & Polymer Intermediate Statements of Financial Position Performance Overview (Unit : MB.) Sales decreased in 2018 Value -1.82 % (YoY) 3,750 Quantity -1.64 % (YoY) 3,700 107 3 3,650 43 3,727 3,660 3,600 3,550 2017 BU1 BU2 BU3 2018 4
Where we are in the value chain of Thai Petrochemical Industry Petrochemical and plastic producers Petrochemical and plastic producers Petrochemical and plastic producers Upstream Intermediate Compounders End users Downstream Polymer Compounders Monomer Olefin&Aromatic producers producers Converters Master batch Producers (PP, PE, PVC) (MEG, VCM) producers 5
GC’s business platform : total outsourcing business platform Leads the differentiation Economy of Scale to Suppliers Suppliers S1 S3 S4 S2 S5 Sn Logistic : Warehousing, small delivery, and repacking Sales & Marketing : Closely contact Demand forecasting & Inventory planning Provided Technical Services : Troubleshooting : Product, Market and Application Development Financing & structuring solution : Extending our expertise to customer C1 C2 C3 C4 C5 Cn Customers Economy of Scope to Customers 6
Business Overview Our Business Unit BU3 BU2 BU1 SPECIALTY ENGINEERING SPECIALTY CHEMICALS COMMODITY POLYMER POLYMER & RUBBER & INTERMEDIATE • Polyolefins • Nylon, POM, PBT, TEEE, PCT, LCP, PC • Plastic Additives PE: HDPE, LDPE, LLDPE • Black/White MB • Intermediate chemical (C4,C8) • PETG/PCTG, CA • Water cooling system solutions PP: Homo, Block Copo, Random • PS, HIPS, ABS, SAN, SBC • PU • EVA for HMA, Hydrocarbon Resin • Tie Layer Polymer • PE Plastomer, PP Plastomer, TPO • Specialty Polyolefins • TPVs, TPU • TPE, TPR, Reinforcement compound • Glass Fiber (Chop Strand, Long glass) • EPDM , BUTYL Key Suppliers • BR, SBR, FKM • TALC, SILICA, CARBON BLACK • FLAME RETARDANT (ZB, ATO) Others 18% PTT Group 37% BSTE/CABOT/C hiMei/CP/DuPo ExxonM nt/Eastman/Sab ic/Trinseo obil 22% 23% 7
Industry Focus AUTOMOTIVE INDUSTRIAL CONSUMERS PRODUCTS - Interior Part - Electrical & Appliances - Flexible Film & Packaging - Exterior Part - Constructions - Rigid Packaging - - Under hood - Adhesives& Sealant Shoes – Medicals - Others 8
Customer Segment by Sale Percent of Value Others Construction Others 1% 1% 0% Agriculture Construction 2% 1% Packaging 40% Packaging Electrical & 40% Electrical & Electronics Electronics 5% 7% 2018 Petrochemical & 2017 Petrochemical & Intermediate Intermediate 13% 12% Consumer Consumer products & products & Automotive Automotive Household Household 18% 21% 17% 19% 3, 667 MB. 3,735 MB. 9
Customer Segment by Sale Percent of Quantity Others Others Construction Construction 0% 0% 1% 1% Agriculture Agriculture 3% 2% Packaging Electrical & Electrical & Packaging 49% Electronics 49% Electronics 4% 6% Automotive 2017 2018 Automotive 14% 11% Petrochemical Petrochemical & Intermediate & Intermediate Consumer 11% Consumer 11% products & products & Household Household 19% 17% 64,802 Tons 63,742 Tons 10
Major Shareholders Free Float Overview As of December 28 th , 2018 % Shares in Minor Shareholders Total Shareholders 1,615 (Free float) 33.31% Rank Major Shareholders #shares %shares 1 Mr. Somchai Kulimakin 44,499,900 22.25% Mr. Sumruay Tichachol 2 28,625,000 14.31% Mr. Bhiya Jriyasetapong 3 26,125,000 13.06% 4 Mrs. Nisaporn Sirijuntanan 25,780,430 12.89% Total 125,030,330 62.52% 11
Today Content Company Overview Industry Info. and Economic Situation Competitors and Market Outlook Strategic Direction The 2018 Performance IR Report & Investment Highlight Q&A 12
Crude Oil Price 2018 $74 $53 $46 13 https://www.mckinsey.com/solutions/energy-insights/global-oil-supply-demand-outlook-to-2035/~/media/231FB01E4937431B8BA070CC55AA572E.ashx
Demand / Supply of Oil Price The oil price continued to rise in 1H 2018 – yet a Q4 2018 renewed supply build-up contributed to a steep 40% price drop https://www.mckinsey.com/solutions/energy-insights/global-oil-supply-demand-outlook-to-2035/~/media/231FB01E4937431B8BA070CC55AA572E.ashx 14
Crude Oil Price 2018 https://www.mckinsey.com/solutions/energy-insights/global-oil-supply-demand-outlook-to-2035/~/media/231FB01E4937431B8BA070CC55AA572E.ashx 15
Thai Economic Projection of 2019 GDP 2018 (%YoY) = 4.1 = 3.5 – 4.5 2019F(%YoY) In 2018, The Thai economy expanded by 4.1 percent, up from 4.0 percent in 2017 and was recorded as the fastest expansion in 6 years. The Thai economy in 2019 is projected to grow in the range of 3.5 – 4.5 percent, supported by (i) a favorable growth momentum of private consumption (ii) an improvement of private investment attributed by rising capacity utilization and increased BOI’s investment applications (iii) an acceleration of public investment following progresses of key public infrastructure projects (iv) a recovery of tourism sector in line with normalizing trend of tourist numbers and receipts (v) a clearer redirection of global trade, production, and investment which will help ease the impacts from global slowdown. Source: www.nesdb.go.th 16 http://www.nesdb.go.th/nesdb_en/ewt_dl_link.php?nid=4360&filename=Macroeconomic_Planning
Thai Baht Exchange Rate (USD to THB) ฿33.65 24 Jul 18 ฿32.49 Average ฿31.41 ฿31.31 31 Jan 19 27 Mar 18 In 2018, the average exchange rate was at 32.49 baht per US dollar, appreciating by 4.42 percent from 2017. 17 https://tradingeconomics.com/thailand/currency
Today Content Company Overview Industry Info. and Economic Situation Competitors and Market Outlook Strategic Direction The 2018 Performance IR Report & Investment Highlight Q&A 18
Competitor sales analysis 2016 – 2017 (MB.) 4,697 4,630 4,624 4,215 3,979 3,727 3,199 3,083 2,759 2,648 2,604 2,612 2,346 2,474 Benchmark avg. = 2400 MB. 1,652 1,477 803 781 632 545 GC A B C D E F GC H I 2016 2017 Benchmark avg. 2017 : Sales income average of Plastic Distributor business around 2,400 Million Baht Remark : Benchmark of Sales income 2017 is the average including some small sizes business. 19
Competitor sales analysis 2016 – 2017 (MB.) 2017 • BU1_Commodity 1,976.42 MB, 8% • BU2,3_Specialty and Other 1,751.08 MB, 7 % GC, 3,727 , I, 4,215 , 16% 14% • BU1_Commodity 2,287 MB, 9% • BU2,3_Specialty and Other 1,691 MB, 6% 2016 H, 2,474 , 9% A, 4,624 , 18% GC, 1,477 , 6% GC, 3,979 , 15% I, 4,630 , 17% B, 3,199 , 12% F, 632 , 2% E, 803 , 3% D, 2,346 , 9% H, 2,648 , 10% A, 4,697 , 17% C, 2,759 , 11% GC, 1,652 , 6% B, 3,083 , F, 545 , 2% 11% D, 2,612 , E, 781 , 3% 10% C, 2,604 , 9% 20
Plastic Consumption Thailand plastics conversion value 2017 Value - 31.90% Value + 5.59% Volume + 2.04% Volume + 2.37% Value - 1.48% Value + 19.57% Volume - 2.65% Volume + 4.75% Value + 9.82% Value - 3.92% Volume + 6.43% Volume + 9.52% 2016 2016 Value - 18.88% Value + 25.12% Volume - 12.79% Volume + 20.07% Value + 3.09% Value - 4.14% Volume + 9.18% Volume + 2.00% Value + 14.04% Value + 16.63% Volume + 6.70% Volume + 1.80% Updated on: June, 2018 Source: PTIT Data, Modified by PITH 21 http://plastic.oie.go.th/IndustryStructure.aspx
Thailand Plastic Industry 2017 2017 2016 22 ที�มา: http://plastic.oie.go.th/IndustryStructure.aspx
Thailand Plastic Industry 2017 Plastic manufacturers in Thailand +0.10 % -0.61% +0.10 % +0.06 % +1.62 % +0.02 % +1.66 % +4.15 % +1.00 % -0.61 % -1.10 % 23 ที�มา: http://plastic.oie.go.th/IndustryStructure.aspx
Today Content Company Overview Industry Info. and Economic Situation Competitors and Market Outlook Strategic Direction The 2018 Performance IR Report & Investment Highlight Q&A 24
Company Strategy in 2019 : VALUE Value Aligned creation thru investment Lean Innovation and for future Utilized Differentiation management sustainable thru Efficiency customer growth and base and Efficiency Effectiveness cumulate on Cost Big Data Management 25
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