The first half of 2019 Opportunity Day Presentation August 16 th , - - PowerPoint PPT Presentation

The first half of 2019 Opportunity Day Presentation

August 16th , 2019

Content

Company Overview Industry Info and Economic Situation IR Report & Investment Highlight The 2019 Performance Q&A

Company Overview and Strategy

Since 1994

Over 30 Leading producers

• Top 3 in the world -

Business Unit

Performance Overview (Unit : MB.)

Sales decreased in Q1/2019 Value -6 % (YoY) Quantity 6 % (YoY)

Company Overview

Commodity Polymer Specialty Engineering Polymer & Rubber Specialty Chemicals & Intermediate

4

Statements of Financial Position

1,600 1,650 1,700 1,750 1,800 1,850 1,900 1/H2018 BU1 BU2 BU3 1H/2019

1,887 1,775 81 34 3

• Jun. 30, 2019
• Dec. 31, 2018

Performance Overview

Sales Amount 1H-2019 Sales Quantity 1H-2019

• 8.%
• 4%

+15% +5% +8. +80% 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1/H2018 BU1 BU2 BU3 1H/2019

1,887 1,775 81 34 3

Value (MB)

• 5.93%

28,000 29,000 30,000 31,000 32,000 33,000 34,000 35,000

1H/2018 BU1 BU2 BU3 1/H2019

32,668 34,770

1,077 951 74

QTY (Tons)

+6.43%

Ethic

Doing business with ethics and no legal offense

Sustainable

Build sustainable growth of profitability and revenue to be market leader

Employee

Develop knowledge skill and expertise to staff as professional. to create a happy workplace

Business Partner

Connect the best supplier and bridge advanced technologies for customer’s best value as business partner. Work closely with Financial Institute as business partner to success

Company Mission

6

Company Vision

Where we are in the value chain of Thai Petrochemical Industry

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

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

Free Float Overview As of April 18th, 2019

Total Shareholders

1,596

% Shares in Minor Shareholders (Free float) 33.84%

Rank Major Shareholders #Shares %Shares 1

• Mr. Somchai Kulimakin

44,499,800 22.25% 2

• Mr. Sumruay Tichachol

27,125,000 13.56% 3

• Mr. Bhiya Jriyasetapong

26,125,000 13.06% 4

• Ms. Nisaporn Sirijuntanan

25,780,430 12.86% 123,530,230.0 61.77% Sub Total

2000 Distributing agent of AES : Santroprene 1999 Distributing agent of Siam Polystyrene (Thailand) Co., ltd. and Cabot Plastic Hong Kong Ltd.

1994 GC was established by 5 founders with initial registered capital of 2 MB. 1998 Distributing agent of OCV Reinforcement Co., 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 GCM. Exxon Product : Special Compound 2016 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 Trinseo (Styron) and BST Elastomers Co., Ltd. 2006 Distributing agent

• f 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

Company History

Organization Chart

Board of Director Executive Committee Chief Executive Officer Sale & Marketing BU 1 BU 2 BU 3 Business Support Market Development & Laboratory Business Support Finance & Accounting Finance Accounting IT & ERP Logistics Warehouse Transportati

• n

New Business Research and Development & HR New Business Research Development Human resource and Administration Assistant to CEO IR & Company Secretary The Corporate Governance Nomination and Remuneration Committee Audit Committee Internal Audit

Our Business Unit

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
• TALC, SILICA, CARBON BLACK
• FLAME RETARDANT (ZB, ATO)
• Plastic Additives
• Intermediate chemical
• Water and waste solutions

12

Industry Focus

CONSUMERS PRODUCTS

• Flexible Film & Packaging
• Rigid Packaging
• Shoes
• Medicals
• Others

INDUSTRIAL

• Electrical & Appliances
• Constructions
• Adhesives& Sealant

AUTOMOTIVE

• Interior Part
• Exterior Part
• Under hood

13

1st Half 2018

Customer Segment by Sale Percent of Value

14

1st Half 2019 1,775.47 MB.

1,890.39 MB.

Agriculture, 2% Automotive, 13% Construction, 1% Consumer products & Household, 17% Electrical & Electronics, 5% Others, 0% Packaging, 40% Petrochemical & Intermediate, 21% Agriculture, 2% Automotive, 19% Construction, 1% Consumer products & Household, 17% Electrical & Electronics, 7% Others, 0% Packaging, 41% Petrochemical & Intermediate, 12%

1st Half 2018

Customer Segment by Sale Percent of Quantity

15

1st Half 2019

34,770 Tons.

32,668 Tons.

Agriculture, 3% Automotive, 14% Construction, 1% Consumer products & Household, 16% Electrical & Electronics, 4% Others, 0% Packaging, 50%

Petrochemical & Intermediate, 12%

Agriculture, 2% Automotive, 12% Construction, 1% Consumer products & Household, 17%

Electrical & Electronics, 5%

Others, 0% Packaging, 50%

Petrochemical & Intermediate, 12%

Company Strategy in 2019 : VALUE

Value

creation thru Innovation and Differentiation

Aligned

investment for future sustainable growth

Lean

management thru Efficiency and Effectiveness

Utilized

customer base and cumulate Big Data

Efficiency

• n Cost

Management 16

GC’s Strategy

1.Boost up market Share by keeping retention customers, create

new customers and reactivate inactive customers also utilize our customer database

2.Looking for new business development and filling in product portfolio to wider product range in order to confirm our one

stop shopping service such as additive and/or chemical including plastic polymer

3.Investing in our own R&D for product creation to strength our

• wn brand “GC/GIC”

4.Catch up technology fast moving, innovation and disruption 5.Efficiency on cost and working capital management

COMPETITOR BENCHMARK

COMPETITORS FINANCIAL PERFORMANCE DATA 2018

Remark: Sales growth (%) calculate by sales in 2017 and 2018

GC A B C D E F G H BENCHMARK

3,660 4,871 3,211 2,828 2,712 2,331 820 667 2,424 2,079 263 350 54 56 136 36 67 106 49 96

86 16 8 21 19

• 2

11 50 7 19 Sales (MB.) Gross Profit (MB.) Net Profit (MB.)

• 1.80%

5.33% 0.36%

• 6.29%
• 1.70%
• 0.63%

2.05% 5.48%

• 2.02%
• 5.51%
• 4.11%

5.18% 28.32%

• 23.29%
• 34.95%
• 288.74%
• 35.80%

17.54%

• 14.49%
• 4.90%

sales growth Profit growth

Economic Outlook

World Economic 𝟑𝒐𝒆Quarter 2019

USA

• Uncertainty of trade war from USA/China.
• Low inflation continually.
• Deceleration of economic growth.
• The forecast of policy rate reducing by FED.

China

• The lowest of GDP growth rate in

the past of thirty years as 6.2%.

• The increase of domestic retail,

manufacturing and industrial sectors.

• The decrease of import and export

cause by trade war and slowly growth of world economy. Eurozone

• High risk of Debt in Italy.
• Tensions rising by trade and Brexit.

Japanese

• Deceleration of economic growth.
• Decrease of Export and domestic

production The global economy was expected to grow at slower rate mainly due to escalated trade tensions between the U.S. and China, causing a decline in global trade volume and investor confidence.

Petrochemical Complex

Source : Thailand Industry Outlook 2019 Petrochemical, Krungsri Research

Crude Oil Price Chart

45 50 55 60 65 70 75 80 2 Jan 19 17 Jan 19 1 Feb 19 16 Feb 19 3 Mar 19 18 Mar 19 2 Apr 19 17 Apr 19 2 May 19 17 May 19 1 Jun 19 16 Jun 19

WTI (Dollars per Barrel) Brent (Dollars per Barrel)

BRENT : 12 Jun 19 @ 61.66 WTI : 23 Apr 19 @ 66.24 BRENT : 25 Apr 19 @ 74.94 WTI : 12 Jun 19 @ 51.13

Source : Energy Information Administration (EIA)

Upside Factor + (P )

• Supply of Libya decreased.
• Iran and Venezuela were boycotted by

USA cause the volume of crude oil export were lowered. Downside Factor – (P )

• USA-China trade war uncertainty which

could impact to global economy.

• The concern about crude oil supply will be

increased after valid OPEC’s agreement.

H H L L

Thai Economic Performance 𝟑𝒐𝒆Quarter 2019

31.41 31.64 31.98 32.10 31.92 30.92

31 Jan 2019 28 Feb 2019 29 Mar 2019 30 Apr 2019 31 May 2019 28 Jun 2019

Exchange rate as of the end of each month (Baht/Dollars)

• Exchange rate appreciated cause the export and touism

decreased.

• MPI in June was 5.54% that decreasing 2.64% (YoY)

cause world economy has been slowly grown.

• Private investment was slowly increased.

The Thai economy expanded at a slowly was affected by the slowdown in trading partner

• economies. Domestic demand continued to

support the economic growth.

Source : Monetary Policy Report June 2019, Bank of Thailand

Manufacturing Production Index (MPI)

Source : Monetary Policy Report June 2019, Bank of Thailand

Thailand’s Production, Sale and Export Numbers of Motor Vehicle as of 2013-2019

2,457,057 1,880,007 1,913,002 1,944,417 1,988,823 1,056,569 1,065,945 1,330,672 881,832 799,632 768,788 871,650 561,960 559,861 1,128,152 1,128,102 1,204,895 1,188,515 1,139,696 489,118 523,770 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2013 2014 2015 2016 2017 1H-2018 1H-2019

Production Sale Export Unit(s)

Business Opportunity : Thailand in EEC (New S-Curve )

• Value added

1.Automotive parts 2.Smart electronic devices 3.Tourism 4.Biotechnology 5.Fuel industry

• Value shift

6.Robot industry 7.Comprehensive medical industry 8.Food processing industry 9.Transportation industry 10.Digital industry

Focus Group

Source : August 2019 “S-CURVE” , The Eastern Economic Corridor (EEC)

IR REPORT

Investor Relations Report

SET INDEX Closing Price (THB)

Closing Price (THB) Trade Volume (Thousand Shares)

Bench Mark GC Average Petro Industrial* P/E Ratio** 11.39 11.36 Dividend Yield (%) 7.62 5.63 ROE (%) *** 21.51 15.10

Closing Price

GC Q2/2019 Q1/2019

High

5.4 5.30

(12 Apr 2019) (28 Mar 2019)

Low

5.05 5.00

(30 Apr 2019) (22 Jan 2019)

Average

5.19 5.17

0.39% (QoQ) 1.97% (QoQ)

Stock Volume

GC Q2/2019 Q1/2019

High

516,132 184,600

(17 Apr 2019) (4 Mar 2019)

Low

1,401

(13 Jun 2019) (28 Jan 2019)

Average

71,557 44,015

62.57% (QoQ)

• 21.76% (QoQ)

Total

4,293,399 2,728,931

57% (QoQ)

• 20% (QoQ)

100 200 300 400 500 600 4.8 4.9 5 5.1 5.2 5.3 5.4 5.5

GC-Volume (Share-Thousand Shares) GC-Closing Price(THB/Shares)

H L

12-04-2062 (5.4) 30-04-2062 (5.05)

4.50 5.00 5.50 6.00 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 2/1/62 11/1/62 22/1/62 31/1/62 11/2/62 21/2/62 4/3/62 13/3/62 22/3/62 2/4/62 12/4/62 25/4/62 8/5/62 17/5/62 29/5/62 10/6/62 19/6/62 28/6/62 9/7/62 19/7/62 31/7/62 9/8/62

SET INDEX GC Closing Price (THB)

30 30

Q2/2019 Performance

31

STATEMENTS OF COMPREHENSIVE INCOME

Unit : Million Baht 2019 2018 Change 2019 2018 Change Sales 855.35 917.70

• 7%

1,775.40 1,887.06

• 6%

COGS 789.85 847.02

• 7%

1,639.14 1,740.96

• 6%

Gross Profit 65.50 70.68

• 7%

136.26 146.10

• 7%

Selling & Admin Expenses 32.20 39.22

• 18%

62.34 81.07

• 23%

Reduction of inventory to net realisable value (Reversal) (0.50) 0.00

• 100%

0.00 0.00 0% EBITDA 33.80 31.46 7% 73.92 65.03 14% Depreciation 2.36 2.43

• 3%

4.79 4.92

• 3%

Interest Expenses 3.32 2.83 17% 6.28 5.53 14% Profit Before Other Income 28.12 26.20 7% 62.85 54.58 15% Other Income 0.99 2.30

• 57%

2.16 3.97

• 46%

Gain (Loss) on exchange rate 2.51 (1.51)

• 266%

4.12 1.24 232% Profit before Tax 31.62 26.99 17% 69.13 59.79 16% Tax 6.79 6.61 3% 13.42 15.37

• 13%

Deferred Tax Expenses (0.18) 0.76

• 124%

0.15 0.57

• 74%

Profit for the period 25.01 19.62 27% 55.56 43.85 27% Actual Q2 Actual 1st_Half

32

SALES STRUCTURE

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 2015 2016 2017 2018 1H/2019

1,915 2,287 1,976 1,869 887 1,707 1,661 1,714 1,757 864 24 31 37 34 24 Sales Value-Million Baht

BU3 BU2 BU1

3,979 3,660 1,775 3,646 3,727

0% 20% 40% 60% 80% 100% 2015 2016 2017 2018 1H/2019

52% 57% 53% 51% 50% 47% 42% 46% 48% 49% 1% 1% 1% 1% 1% Sales Value in Percentage

BU3 BU2 BU1

• 10

20 30 40 50 60 70

2015 2016 2017 2018 1H/2019

40.8 51.0 42.7 40.7 22.0 21.7 21.9 22.0 22.9 12.6 0.1 0.1 0.1 0.1 0.2

'000 T

Sales Quantity

BU3 BU2 BU1

73.0 63.7 62.6 34.8 64.8 0% 20% 40% 60% 80% 100%

2015 2016 2017 2018 1H/2019

65% 70% 66% 64% 63% 35% 30% 34% 36% 36% 0% 0% 0% 0% 1% Sales Quantity in Percentage

BU3 BU2 BU1

GROSS PROFIT STRUCTURE

33 33

• 50

100 150 200 250 300 2015 2016 2017 2018 1H/2019

67 85 63 66 42 170 180 189 202 98 8 9 11

11

5 Gross Profit By BU

BU3 BU2 BU1

145 274 245

279 263 0% 20% 40% 60% 80% 100%

2015 2016 2017 2018 1H/2019

27% 31% 24% 24% 29% 70% 66% 72% 72% 67% 3% 3% 4% 4% 4% Gross Profit in Percentage

BU3 BU2 BU1

3.5% 3.7% 3.2% 3.6% 4.7% 9.9% 10.8% 11.0% 11.5% 11.3% 33.3% 30.2% 31.3% 33.1% 21.1%

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

2015 2016 2017 2018 1H/2019

Gross Profit Margin by BU

BU1 BU2 BU3

34 34

STATEMENTS OF COMPREHENSIVE INCOME HIGHLIGHT

Profitability Ratio

Revenue & Net Profit

Profit Margin

• GC’s gross profit margin of 1H/2019 was lower than

1H/2018’s due to the severe price competition in some products of BU2.

• GC’s net profit margin of 1H/2019 has been

increasing compared to 1H/2018’s. This was due to an increase in allowance for doubtful accounts in 1H/2018. Revenue and Net Profit In 1H/2019, sales value decreased from 1H/2018’s around 6% due to the decline in selling price resulting from the global economy slowdown which was the effect of the US-China trade conflict. However, the sales volume of 1H/2019 was increased by 6% compared to 1H/2018’s. 3,659

3,985 3,741 3,673 1,782 79 93 90 86 56

• 30

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

2015 2016 2017 2018 1H/2019

Revenue (Million Baht)

Revenue Net Profit

6.29 6.48 6.64 7.17 7.67 2.17 2.33 2.40 2.35 3.13 19.56 21.69 20.44 19.17 24.33

• 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

2015 2016 2017 2018 1H/2019

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

ROE

Profit Margin

35 35

STATEMENTS OF FINANCIAL POSITION

Unit : Million Baht Asset 30/6/2019 31/12/2018 Change % Trade Receivables 601.66 577.59 24.07 4% Inventory 535.81 545.73

• 9.92
• 2%

Net Fixed Assets 111.01 109.75 1.26 1% Total Assets 1,275.12 1,268.47 6.65 1% Liabilities Short Term Loan 591.33 606.44

• 15.11
• 2%

Trade Payables 182.99 173.21 9.78 6% Total Liabilities 812.64 817.54

• 4.90
• 1%

Equity Paid up Capital 200.00 200.00 0.00 0% Share Premium 56.03 56.03 0.00 0% Retained Earnings 206.45 194.90 11.55 6% Total Equity 462.48 450.93 11.55 3%

36 36

STATEMENTS OF FINANCIAL POSITION HIGHLIGHT

D/E ratio is relatively lower.

• D/E ratio drop from 4.35 times since

2004 which was decreased after IPO

• proceeds. However, the lower D/E ratio

in 1H/2019 compared to ending 2018 was resulting from the decline in short-term loan. 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.

2.27 2.16 1.79 1.81 1.76

• 0.50

1.00 1.50 2.00 2.50 2015 2016 2017 2018 1H/2019

Debt to Equity Ratio

1.33 1.34 1.43 1.43 1.44

• 0.50

1.00 1.50 2.00 2015 2016 2017 2018 1H/2019

Current Ratio

DIVIDEND PAYMENT RECORD

37

Dividend (BPS.) Before On X-Date

30-Jun-19 0.22 9-Sep-19 22-Aug-19 n/a n/a 4.15%* 31-Dec-18 0.22 30-Apr-19 17-Apr-19 5.40 5.10 4.07% 30-Jun-18 0.18 7-Sep-18 20-Aug-18 5.30 5.05 3.40% 31-Dec-17 0.22 30-Apr-18 12-Apr-18 5.45 5.15 4.04% 30-Jun-17 0.18 8-Sep-17 23-Aug-17 5.25 5.10 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 5/8/2019 @ 5.30 baht

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

38 38

DIVIDEND PAYOUT RATIO

108 77 96 124 80 76 70 48 79 93 90 86 56 74% 84% 83% 80% 99% 94% 91% 97% 88% 91% 89% 93% 79%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

• 20

40 60 80 100 120 140 160 180

Dividend Payout Ratio Net Profit (Million Baht) Net Profit (Million Baht.) Dividend Payout Ratio

GC’S DIVIDEND YIELD

4.50 4.70 2.30 5.50 (0.90) 3.30 3.80 3.00 2.20 1.90 (0.90) 0.19 0.66 1.07 0.92 1.40 1.48 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 7.47 7.47 4.15

(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 2017 2018 1H2019 Inflation Rate Average 1 year Deposit GC's Dividend Yield (%)

Remark : Source Bank of Thailand https://www.bot.or.th/Thai/Statistics/EconomicAndFinancial/Pages/StatMacroEconomi cIndicators.aspx*Interest rate is a average interest rate from Bank of Thailand

40 40

Thank you, Questions are welcome

41 41

CREDIT INSURANCE

• Start the fifteenth year agreement of Trade Credit Insurance with New Hampshire

Insurance Company (AIG Thailand)

• Threshold or non qualify loss = 50,000 Baht
• Cover 90% immediately of approved customer (maximum 150 MB + Sub limit for DCL = 15 MB)

Year

1+2 Coface 1 May 2005 – 30 April 2007 = 4,456,890 Baht 3 Coface 1 May 2007 – 30 April 2008 based on sales 1,200 MB x 0.182% x 70% = 1,525,000 Baht 4 AIG 1 May 2008 – 30 April 2009 based on sales 1,400 MB x 0.10% x 75% = 1,050,000 Baht

5 AIG 21 May 2009 – 31 May 2010 based on sales 1,200 MB x 0.22% x 75% = 1,980,000 + AFL 1,000,000 Baht

6 AIG 1 June 2010 – 31 May 2011 based on sales 2,000 MB x 0.25% x 75% = 3,750,000 + AFL 1,000,000 Baht 7 AIG 1 June 2011 – 30 June 2012 based on sales 2,700 MB x 0.10% x 75% = 2,193,750 + AFL 1,000,000 Baht 8 AIG 1 July 2012 – 30 June 2013 based on sales 2,400 MB x 0.095% x 75% = 1,710,000 + AFL 1,000,000 Baht

9 AIG 1 July 2013 – 30 June 2014 based on sales 2,400 MB x 0.085% x 75% = 1,530,000 + No AFL

10 AIG 1 July 2014 – 30 June 2015 based on sales 2,400 MB x 0.080% x 75% = 1,440,000 + No AFL 11 AIG 1 July 2015 – 30 June 2016 based on sales 2,400 MB x 0.075% x 75% = 1,350,000 + No AFL 12 AIG 1 July 2016 – 30 June 2017 based on sales 2,400 MB x 0.075% x 75% = 1,350,000 + No AFL 13 AIG 1 July 2017 – 30 June 2018 based on sales 2,400 MB x 0.070% x 75% = 1,260,000 + No AFL 14 AIG 1 July 2018 – 30 June 2019 based on sales 2,400 MB x 0.070% x 75% = 1,260,000 + No AFL 15 AIG 1 July 2019 – 30 June 2020 based on sales 3,200 MB x 0.070% x 75% = 1,680,000 + No AFL + Threshold 50,000 Baht

42 42

Financial Ratio

Q2' 2019 2018 2017 2016 2015 Liquidity Ratio Current Ratio Time 1.44 1.43 1.43 1.34 1.33 Collection Period Day 62.57 60.16 64.02 63.58 62.74 Inventory Turnover Period Day 59.38 53.66 48.93 47.43 49.38 Payment Period Day 19.56 18.68 20.83 23.91 23.28 Cash Cycle Day 102.39 95.14 92.12 87.10 88.84 Profitability & Efficiency Ratio Gross Profit Margin % 7.67 7.17 6.64 6.48 6.29 Net Profit Margin % 3.13 2.35 2.40 2.33 2.17 ROE % 24.33 19.17 20.44 21.69 19.56 ROA % 8.74 6.84 6.88 6.76 6.22 Financial Policy Ratio D/E Ratio Time 1.76 1.81 1.79 2.16 2.27

43 43

A/R as of June 2019 and it’s position after one month

30/06/2019 % Received 31/07/2019 Balance

Not yet due

455,404,807.37 72.4 164,321,244.62 291,083,562.75

Overdue Up to 1 month

133,149,261.48 21.2 125,313,396.01 7,835,865.47

1-3 months

17,309,525.74 2.8 14,693,750.24 2,615,775.50

3-6 months

236,737.50 0.0 0.00 236,737.50

6-12 months

0.00 0.0 0.00 0.00

Over 12 months

22,862,077.40 3.6 0.00 22,862,077.40

Total

628,962,409.49 100.0 304,328,390.87 324,634,018.62

Less :Allowance for doubtful debts

(27,300,000.00)

Trade accounts receivable-net

601,662,409.49

44 44

Purchase Portion

0% 20% 40% 60% 80% 100% 2015 2016 2017 2018 1H/2019

61% 60% 62% 63% 60% 39% 40% 38% 37% 40%

Import Local