1Q2019 Opportunity Day Thursday, May 16, 2019
Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. GGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and GGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. Page 2
Agenda Highlights GGC Going Forward Palm Oil Market Update Financial Performance Page 3
1Q2019 Highlights Financial Performance Highlights GGC Going Forward Palm Oil Market Updates Key Highlights ME Business Unit: FA Business Unit: + Mandate of B7 + Natural FA prices were being in competitive + Gov. has attempted to build up demand of B20 range to synthetic FA + Extend price subsidies on B20 = B7-5 THB/litre + FA Supply was tight due to plant shutdown in EU (From Feb 19 to Jul 19) and China + Government targets to increase no. of B20 gas station + Improve FA sales volume compares to 1Q2018 to 1,000 stations - High competition led to narrow margin - CPKO prices continue downward trend due to - Glycerine price drop from glut supply high inventory in domestic and international - CPO prices continue downward trend due to high market inventory in domestic and international market Plant Operation : Financial Performance: + ME plant 2 has commenced the commercial - Consolidated EBITDA -32% YoY operation on April 5, 2019. - ME EBITDA -98% YoY + FA EBITDA +192% YoY - FA Plant planned shutdown during 1 - 11 January 2019 for changing catalyst Page 4
1Q2019 Operation Highlights Financial Performance Highlights GGC Going Forward Palm Oil Market Updates METHYL ESTER (B100) BUSINESS UNIT Biodiesel Mandate CPO (DIT) : THB/Kg GGC ’ s ME Operational Performance ME1 Plant Utilization Rate B7 B7 B7 B7 119% 20.34 112% 113% 102% 19.57 16.94 16.04 1Q18 4Q18 1Q19 FY18 Note: Utilization rate calculated base on nameplate capacity of ME1 Sales Volume (Tons) 1Q18 4Q18 1Q19 FY18 374,922 1Q18 4Q18 1Q19 FY18 102,754 97,431 (2) 94,703 (1) ME (EPPO) : THB/Litre ME EPPO P2F : THB/Kg 1Q18 4Q18 1Q19 FY18 Note: The company could only realize the total sales volume 24.66 24.15 from ME plant 1 because ME plant 2 is under testing run for 21.78 5.22 5.14 5.19 4.87 20.74 commercial operation in 4Q18 and 1Q19. (1) In 1Q19, Sales volume from ME plant 2 = 15,678 tons (2) In 4Q18, Sale volume from ME plant 2 = 7,109 tons Adjusted EBITDA (MB) 509 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 180 26 21 THB/Kg 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 ME EPPO 28.51 25.18 23.98 27.91 Page 5
1Q2019 Operation Highlights Financial Performance Highlights GGC Going Forward Palm Oil Market Updates FATTY ALCOHOLS BUSINESS UNIT CPKO (MPOB) : USD/Ton Natural Fatty Alcohols regained GGC’s FA Operational Performance Competitiveness vs. Synthetic ones Plant Utilization Rate 1,138 914 Crude Oil Price (WTI) : USD/BBL 717 677 129% 111% 115% 63 59 65 55 101% 1Q18 4Q18 1Q19 FY18 FA (ICIS) : USD/Ton 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 Ethylene Price (USGC) : USD/Ton Sales Volume (Tons) 114,784 1,784 1,568 669 660 643 1,395 1,365 614 24,235 33,442 24,798 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 FA Market P2F : USD/Ton Synthetic FA (C1215) Price : USD/Ton Adjusted EBITDA (MB) Natural Mid Cut FA (C1214) Price : USD/Ton 877 553 535 471 2,381 419 2,039 1,764 1,565 284 264 196 2,160 1,742 1,562 1,502 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 1Q18 4Q18 1Q19 FY18 Page 6
Agenda Highlights GGC Going Forward Palm Oil Market Update Financial Performance Page 7
Projects Timeline Financial Performance Highlights GGC Going Forward Palm Oil Market Updates Biocomplex Phase 1 Sugarcane : 2.4 mm TPA Refined Glycerin Plant 2 Ethanol : 186 mm LPA Methyl Ester Plant 2 20 KTA 200 KTA COD as of Apr 5, 2019 End End End 2019 2020 2018 Methyl Ester Refined Glycerin Biocomplex Project Plant 2 Plant 2 Phase 1 Methyl Ester Refined Glycerin Sugarcane : 2.4 mm TPA Capacity 200 KTA 20 KTA Ethanol : 186 mm LPA CAPEX 1,650 MB 326 MB 7,500 MB (GGC hold 50%) Site Preparation Project Progress Update COD Awarded EPC 2Q19 Loan Agreement Signed EPC Selection Scheduled COD 5 Apr 2019 2Q20 Early of 1Q21 Page 8
Agenda Highlights GGC Going Forward Palm Oil Market Update Financial Performance Page 9
2Q19 Highlights of Palm Oil & Oleochemicals Market Highlights GGC Going Forward Palm Oil Market Updates Financial Performance Highlights Palm Oil Market Updates Financial Performance GGC Going Forward ME Chain ME Price & Spread ME: THB/KG Spread ME CPO 45.0 • ME demand in Q2/19 remains healthy due to supportive Biodiesel 39.5 40.0 policies from government; 34.4 33.3 - Target to implement B10 as an optional fuel for diesel car in May ’ 19 35.0 30.5 28.6 28.5 28.9 29.0 27.9 - B20 demand is accelerating with increase no. of B20 stations 30.0 25.2 24.0 23.7 - Government also plans to extend B20 subsidiary program at 5 THB/L 30.8 25.0 from end of May ’ 19 to Jul ’ 19 25.8 24.9 20.0 22.4 20.5 20.3 20.8 20.2 - Gap of ME (B100) vs B7 price encourages some users to use ME 15.0 19.6 16.9 16.0 15.3 (B100) directly 10.0 5.2 CPO: 5.1 5.0 4.8 4.9 5.1 5.0 5.2 5.3 5.2 4.9 5.6 5.0 • Local CPO price is slightly firmer amid healthy demand from EGAT and 0.0 Biodiesel producers 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Apr-19 FY17 FY18 • Local CPO stock Mar ’ 19: 434,244 tons Apr ’ 19: 383,957 tons FA Chain FA Price & Spread USD/T FA: Spread FA CPKO 2,500 2,243 2,054 • 1,975 FA demand is still healthy amid tight supply 1,783 1,820 1,784 2,000 • Natural FA price still has advantage over Synthetic FA 1,570 1,521 1,395 1,365 1,263 1,568 1,516 999 1,156 1,304 1,138 • Some Chinese producers were forced to shutdown due to strict Safety 1,244 1,500 919 882 717 677 570 914 and Environmental 1,000 CPKO: 424 584 433 488 419 468 463 535 553 580 483 471 500 • CPKO price is moving sideway due to ending of palm harvesting season in Malaysia and Indonesia 0 • However, CPKO price is still pressured by high inventory level 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Apr-19 FY17 FY18 Page 10
Opportunity: Potential to increase Biodiesel blending rate Financial Performance Highlights GGC Going Forward Palm Oil Market Updates Highlights Palm Oil Market Updates Financial Performance GGC Going Forward 2019 Forecast B20 Demand Forecast ML/M 90.00 82.1 81.3 80.5 73.2 75.00 66.6 60.5 55.0 60.00 50.0 40.0 45.00 25.7 30.00 16.7 15.00 8.8 0.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *GGC expected B20 from diesel passenger car maximum consumption 157 ML/M -> B100 30.2 ML/M ( additional from B7 19.6 ML/M) ✓ MOEN reported B 20 consumption in Apr’19: ̴ 40 ML (increased by 55% from previous month) ✓ As of Mar ’19, there are 207 stations(B20) nationwide and expanding up to 1,000 stations by the end of this year ✓ 20 subsidiary program at 5 THB/L from end of May’19 Jul’19 Government also plans to prolong B Page 11
Opportunity: Potential to increase Biodiesel blending rate Financial Performance Highlights GGC Going Forward Palm Oil Market Updates Highlights Palm Oil Market Updates Financial Performance GGC Going Forward B10 Development Timeline 15 th May 2019 Next Step 15 th May 2019 MOF announced B10 Mandate 22 nd Apr 2019 the Excise Tax DOEB for additional 11 st Mar 2019 announced B10 Biodiesel and B100 97 models of Blending Ratio JAMA specification as recommends JAMA suggestion B100 and B10 accepted B20 specification; B100, MG < 0.4% wt. B10 Water < 200 ppm Page 12
Agenda Highlights GGC Going Forward Palm Oil Market Update Financial Performance Page 13
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