2011: Sector Leader of Building Materials & Fixtures 2011-2008: - PowerPoint PPT Presentation

2011: Sector Leader of Building Materials & Fixtures 2011-2008: Ranked Gold Class 2004: member since Ranking by SAM Bank of America Merrill Lynch CalGEMs Conference Ritz-Carlton Laguna Niguel June 12 – 13, 2012

Agenda Slide 2 � Strategy � Sustainability � Business Updates � Financials � Appendix

Business segments today Slide 3 Revenue from Sales Q1/11 Q1/12 92,478 MB 102,884 MB (+11% y-o-y) Recurring Profit for the Period Chemicals Q1/11 Q1/12 Subsidiaries 9,207 MB 12% 5,972 MB (-35% y-o-y) Chemicals Equity Income 7% SCG Investment 1) dividend income (stake of <20%) 2) equity income (stake of 20% - 50%)

Strategy Slide 4 GROWTH 1) Expansion in ASEAN 2) H igh V alue A dded products & services (HVA) DISCIPLINED “Cash return on investment” hurdle of 15% “Dividend payout” policy of 40-50%

CAPEX cycles Slide 5 Investments, and M&A Current Phase 2011 - 2015 � CAPEX of +150,000 MB � Cash-flow financed Past Phase � Cash on hand of 44,827 MB 2006 - 2010 � Mostly M&A � CAPEX of 146,026 MB ($4.7Bill) � Mostly ASEAN � Cash-flow financed � Mostly green field � Mostly Thailand ...ASEAN expansion of core businesses

ASEAN assets Slide 6 ASEAN ASEAN assets = 52,900 MB ($1.8 Billion or 14% of total assets ) Note: as of Apr/12

ASEAN segments Slide 7 ASEAN is an increasing part of SCG. ASEAN ASEAN as a % of SCG consolidated 2006 2007 2008 2009 2010 2011 Q1/12 Sales from ASEAN % 3% 5% 5% 7% 7% 7% 6% Operations MB 7,700 13,400 14,600 16,700 20,200 23,700 6,367 Assets % 14% 3% 5% 5% 7% 7% 13% MB 6,800 13,000 14,500 22,500 26,700 47,000 52,900 HR* % 5% 10% 11% 11% 12% 19% 27% Staffs 1,180 2,628 2,974 3,225 3,777 6,519 10,157 * Including SCG's international staff (Thai) Note: as of May/12

SCG’s capacity ranking Slide 8 ASEAN Thailand ASEAN Downstream Chemicals 1 1 7.2 million tons Packaging Paper 1 1 1.9 million tons Cement 1 2 24 million tons Building Products 1 1 149 million sqm of ceramics Note: as of May/12

Export destinations in Q1/12 Slide 9 ASEAN accounted for 38% of all exports. ASEAN 5% ASEAN 38%

Regional growth opportunities Slide 10 Low Consumption per Capita in ASEAN ASEAN Note: figures for 2011

ASEAN investments since Jan/11 Slide 11 Indonesia ASEAN Lightweight Concrete Block May/12 � Greenfield plant of 6 mill sqm, with start-up in early 2014 1,250 MB Boral Indonesia Feb/12 � Leading ready-mixed concrete (RMC) with 2.2 mill cubic metre. 4,300 MB � Businesses includes concrete pipes, precast concrete, quarries, and limestone reserves for expansion. Sep/11 Chandra Asri Petrochemicals � 13,500 MB 30% stake, with expected conclusion of project upgrades, such as cracker debottleneck, downstream expansions, and cost efficiency initiatives. KOKOH: distribution � 22 distribution centre Jun/11 � +10,000 wholesalers / retailers. 3,100 MB KIA: ceramic tiles � Domestic market share of 10% � Capacity of 27 mill sqm.

ASEAN investments since Jan/11 Slide 12 Philippines & Vietnam ASEAN Philippines: Ceramics Mar/12 � Mariwasa is a leading ceramics player in the Philippines, 150 MB with 12 mill sqm. � Increased stake to 83% (from 46%). Vietnam: PVC pipe producers Mar/12 � Acquired 17% stake in Binh Minh Plastics (south Vietnam) 1,200 MB � Acquired 23% stake in Tien Phong Plastics (north Vietnam) � Combined PVC pipe capacity of 150,000 tons. Vietnam: White cement grinding plant Jan/12 � Buu Long (0.2 MT) is Vietnam’s primary producer of 200 MB white cement. Vietnam: Box plant Jan/11 � Alcamax (53,000 tons) has a leading domestic market share 750 MB with large multinational clients.

ASEAN investments since Jan/11 Slide 13 Thailand ASEAN Box plant Mar/12 � Acquisition of Tawana Container (61,000 tons) 410 MB � Resulting in SCG’s capacity of 855,000 tons (46% internal integration). LLDPE cast film Mar/12 � 45% JV with Mitsui Chemicals Tohcello 1,400 MB � 15,000 tons of T.U.X. LLDPE cast film, a HVA product. PVC producer Mar/12 � Increased stake to 90% (from 46%) in Thai Plastic and Chemicals, 11,500 MB a regional integrated PVC producer. Modular home producer May/11 � Capacity increased to 1,000 homes, from 200. 2,900 MB � SCG Heim is a JV with Sekisui Heim of Japan

Cement expansion Slide 14 ASEAN Under Study Capacity Asset � Indonesia 1.5 – 3.0 MT integrated cement (Green field) � Myanmar 1.5 – 3.0 MT integrated cement (Green field) Capacity Since Asset Existing � 0.2 MT 2012 white cement grinder (M&A) Vietnam � 1 MT 2008 integrated cement (Green field) Cambodia � 23 MT 1913 integrated cement (Green field) Thailand

Chemicals expansion Slide 15 ASEAN Vietnam Complex: � JV Agreement (Feb 9/12) with partners: � QPI Vietnam (subsidiary of Qatar Petroleum Int’l) � PetroVietnam, and Vinachem � Thai Plastic and Chemicals (SCG stake of 90%) Future Location Start-up Stake Olefins Capacity SCG 28% Vietnam Complex Vietnam 2017-2018 1,400 (TPC 18%) (Flex-feed cracker) Olefins Capacity (ton) Existing Location Start-up Stake Ethylene Propylene Total 1) ROC Complex Thailand 1999 SCG 64% 800 400 1,200 2) MOC Complex Thailand 2010 SCG 67% 900 800 1,700 3) Chandra Asri Indonesia 1995 SCG 30% 600 320 920 Existing Total 3,820

HVA = High Value Added Products & Services Slide 16 HVA on Sales target of 50% by 2015, from subsidiaries. HVA Note: as of Apr/12

Systematic training roadmap Slide 17 Competent staffs are key... .

SCG’s external training programs Slide 18 Programs Current Since Years Staffs Harvard 1982 31 65 AMP - Advanced Management Program Wharton 2007 6 11 EDP - Executive Development Program Columbia 2007 6 172 Wharton 1981 32 1,307 MDP - Management Development Program Duke 2011 2 111 Marketing Excellence Program Kellogg 2006 7 406 Note: as of Apr/12

Corporate scholarship program Slide 19 Began in 1973, with 406 scholarships granted. . Note: Note: Note: Note: 301 scholarships are active, others have mostly retired Current 50 students (42 overseas): MBA 15, Engineering 32, Specialist 3

Agenda Slide 20 � Strategy � Sustainability � Business Updates � Financials � Appendix

Slide 21 � : Global Sector Leader (B uilding Materials & Fixtures) by SAM 2011 � 2011-2008 : ranked “Gold Class” which is top group for each sector. � 2004 : initial year of DJSI membership. � DJSI was established in 1999 as the first truly global index to monitor sustainability initiatives of listed companies. � +60 global funds in 16 countries follow the DJSI.. � For further details: www.sustainability-index.com

DJSI sector overview Slide 22 Building Materials & Fixtures SUSTAINABILITY LEADERS As of September 8, 2011 DJSI World DJSI Europe DJSI North America DJSI Asia/Pacific Industry Company Country Leader Universe Member Universe Member Universe Member Universe Member Number of Companies 45 8 10 3 5 1 10 3 ASAHI GLASS CO LTD Japan BORAL LTD Australia CRH PLC Ireland HOLCIM LTD Switzerland LAFARGE SA France United States of OWENS CORNING America SCG Thailand TOTO LTD Japan United States of WEYERHAEUSER CO America

Agenda Slide 23 � Strategy � Sustainability � Business Updates � Financials � Appendix

SCG Chemicals Integrated and competitive operations. Slide 24 Chemicals Regional Player Thailand - Fully Integrated Crackers Cracker #1 (1999) Cracker #2 (2010) 1.7 MT C2 & C3 1.2 MT C2 & C3 Downstream Subsidiaries Associates PE Dow PP Mitsui Mitsubishi Rayon PVC Others Others +50% of PE/PP are exported to +110 countries

SCG Chemicals Slide 25 Investment in the propylene-rich cracker Chemicals Propylene-rich cracker Typical crackers Naphtha-based Gas-based Naphtha-based ‘000 tons ‘000 tons ‘000 tons 1200 1200 1200 ethylene ethylene ethylene 900 900 900 propylene by-products 600 600 600 propylene by-products 300 300 300 0 0 0 '000 tons '000 tons '000 tons SCG’s 2 nd SCG’s 1 st cracker cracker (2010) (1999) 1.7 MT 1.2 MT

Historical margin: HDPE – Naphtha Slide 26 Trough is supported by the $400/ton global conversion cash cost Chemicals Price Gap $/ton 1,000 900 800 700 600 500 400 Avg global conversion 300 cash cost of $400/ton Avg global conversion ex-feedstock 200 cash cost of $300/ton, 100 ex-feedstock 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Global ethylene incremental supply growth Slide 27 Chemicals Ramp-up Capacity Effective Nameplate Capacity MT 12 10.5 10 8 6.9 ~ 5.0 ~ 5.0 6 ~ 5.0 3.4 4 ~ 2.5 2 0 2009 2010 2011 2012 2013 2014 2015 Incremental supply growth 3% 8% 5% 2% 3% 3% 3% Note: as of Jun/12, estimated by ground breaking basis

HDPE – Naphtha Price Gap PE margins are at trough levels Slide 28 Chemicals $/ton 1,750 1,500 HDPE 1,250 1,000 Ethylene Naphtha 750 500 250 0 Q2/12 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 to date 456 396 443 441 375 465 HD-Naphtha 434 Spread ($/T) Note: SEA regional prices Conversion rate: 1 PE = 1 Ethylene