ADB Opportunity Day Performance 2019 February 27, 2020 Content - PowerPoint PPT Presentation

ADB Opportunity Day Performance 2019 February 27, 2020

Content Company Overview ADB Performance 2019 Our Goal in 2020 - Business Update - Business Trends 2020

1 Company Overview APPLIED DB PCL.

Company Overview 4

ADB Our product line includes plastic compounds, professional adhesives, silicone sealants, and DIY products for household end-users. Adhesive & Sealant Plastic Compound • ADB Adhesives are specially manufactured to meet • ADB is one of the leading manufacturer of plastic international standards for industrial use and household compound especially for wire & cable industry. use. • Wire & Cable PVC compound • We sell under our house brand and OEM • General Grade PVC for customers well-known brand names. • ADB Sealant is currently repackaged from bulk • Medical PVC Compound package and resell in smaller package. • Polypropylene split yarn (PPY) • Future project supports the expansion of adhesive & sealant product line corresponding to increasing demand and profitability. 5

2 FY 2019 Financial Review 6

Financial performance for FY 2019 Revenue Structure The revenue in 2019 decreased due to the slowdown of SIL products and DIY products sold to oversea markets; while the compound has been increasing due to the strong potential growth of Wire & Cable segment. (Unit: million Baht) 1600 1,434 1,412 1,421 1,364 1,372 1400 Domestic 1200 71% Sales 722 686 706 624 679 1000 800 600 International Sales 400 740 726 712 716 most of the 693 29% oversea customers 200 has been impact of 0 Baht appreciation against USD 2015 2016 2017 2018 2019 Plastic Compound Adhesive and Sealant 7

Financial performance for FY 2019 Revenue Structure by Product Group Sealant & DIY Sealant & DIY 387 MB 434 MB Adhesive Adhesive 272 MB 237 MB PVC PVC 507 MB 534 MB GPVC 205 MB GPVC 208MB 2018 2019 8

Financial performance for FY 2019 Profit Segmentation The slightly drop of gross margin in FY2019 is mainly due to: • Lower sales from Industrial Adhesives (Fashion and garment segment) & distributor channel due to price competition in the oversea markets • Silicone sealant and DIY product segments sold to oversea customers had impact from Price competition and Baht Appreciation against USD Gross Profit By Products Gross Profit Margin (Unit: million Baht) 12% 92 20% 350 20% 18% 18% 11% Plastic Compound 79 300 10% 67 16% 14% 14% 14% 286 250 260 15% 37 12% 16% 200 Adhesvie 44 194 10% 191 23% 184 150 68 8% 100 14% 54 4% 16% 50 70 Sealant & DIY 67 21% 36 80 0 0% 2015 2016 2017 2018 2019 Q4/2018 Q4/2019 MB 0 10 20 30 40 50 60 70 80 90 100 2019 2018 2017 9 Gross Profit Gross Profit Margin

Financial performance for FY 2019 Net Profit & Net Profit Margin • The net profit margin for FY 2019 declined from 2018 performance due to the decline of margins in Adhesive products and Sealant segment due to the initial stage of new Sealant Project investment recognized full year of operation in 2019 90 8.0% 80 5.4% 6.0% 70 76 4.4% 60 4.0% 50 2.1% 40 2.0% 30 0.9% 0.2% 29 20 0.0% 10 16 13 3 0 -2.0% -11 2016 2017 2018 2019 Q4/2018 Q4/2019 -10 -3.1% -20 -4.0% Net Profit Net Profit Margin 10

Financial performance for FY 2019 MB Asset 1000 MB Liability 1500 1,253 1,254 775 800 1,208 85 116 120 1,072 125 675 623 667 76 948 135 600 1000 49 547 134 78 535 542 68 448 355 416 292 400 359 330 277 266 267 500 305 213 319 261 200 239 210 212 202 213 365 375 316 328 335 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 A/R Inventory PPE Others A/P ST Loan Others MB 3.00 800 Shareholders’ Equity Debt to Equity 585 586 600 581 2.00 202 202 202 400 83 84 79 2.60 2.47 85 1.00 61 200 300 300 300 1.14 1.16 1.06 210 210 0 - 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 11 Paid-up capital R/E Share premium D/E

Financial Highlight Statements of Financial Position Statements of Cash Flow MB MB 1400 200 1254 1254 1208 143 1200 150 111 1000 100 48 800 42 50 672 667 623 586 585 582 8 600 0 2017 2018 2019 400 -50 -41 -52 200 -100 -115 0 -129 -150 2017 2018 2019 Operating Investing Financing Asset Liabilities Shareholders Equity 12

Key Takeaways of FY2019 and new IFRS Impact Challenging Market Competition Week Sales of New Sealant Project 2020 Outlook on TFRS 9 and TFRS 16 - Reported sales of Adhesive declined due to price falling of Due to the delay of revenue from Sealant Project, oversea revenue from FX impacts initial investment costs led the decline of Sealant First-time adoption of TFRS 9 will have BU performance and GPM - Sealant and DIY Revenue over 2/3 of Segment contributed by negligible effect to the Assets, Liabilities and oversea customers. retained earning through the allowance of doubtful accounts and TFRS 16 with slightly increase in Fixed Assets on operating lease for THB 6 MB, no significant impact on Profit Solid Cash Flow from Operation with Turnaround Profit through Rising Margins effective inventory management - FY 2019, GPM at 13.4% contributed mostly from Q419 GPM Decreasing inventory level both Raw Materials & FG at 18% - The highest profit margin contributed by Plastic Compound leading to the soaring up Cash from Operation over THB 100 MB Business 13

3 Our Goal in 2020 Business Updates | Business Trends 2020

Business Update Collaboration & Work Smart are our key to success Secure | Growth | Reach 15

Plastic Compound Business OEM, Increase domestic Green Products market share Premium Products (ECO-Friendly Products) 16

Adhesive Business Strategy Expand to New Market Including furniture, automotive, construction, industries New Sales Channels Modern Trade E-Channel New Business Solution Strategic partners Strengthen Sales Team To enhance sales performance 17

Sealant & DIY Business Partnership Brand Awareness Strategic partner and distributors Concern of brand value and reputation for good quality both in domestic and oversea New Product Offer Sales Growth (Cross selling/ Through maintain existing sales and growth Bundled Goods) and develop new potential customers. 18

Business Trends 2020 Government Project Trend of Environmental Concern (Green product) Including real estate, construction and infrastructure . Our R&D team is ready for develop new solution to fulfill customer’s needs. Global Challenge -Globalization help us to reach more market through Social Competitor’s Relocation Media, Online Marketing. Some of our main competitor has relocation, this is our good -Global economic slowdown Influenced by COVID-19 opportunity to increase market share. outbreak, Thai baht's appreciation etc. Growth of Technology Advancement Health Care Industry We has always catch up the global trends to serve the changing demand and prepare for change of supply chain. We have two medical production line to support medical product. 19

Thank You Website Head Office Contact www.adb.co.th 252 M.4 Sukhumvit Rd., Investor Relation Section: Prakasa,Muang 02-709-4040 Ext.1406 Samutprakarn, 10240 adb_ir@adb.co.th 20