Analyst Conference Q1/16 Wednesday, April 27, 2016
AGENDA I. Consolidated Results - Q1/16 Consolidated Results - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Packaging V. Summary 2
Revenue from Sales Q1/16 revenue was relatively sideways y-o-y, and gained +4% q-o-q following the seasonal effect in the cement – building materials business. +1% y-o-y +4% q-o-q MB 150,000 121,765 124,795 124,275 116,710 109,276 113,818 110,898 105,622 109,998 120,000 90,000 60,000 30,000 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 3
EBITDA Healthy chemicals spreads were the main drivers towards the EBITDA growth of +17% y-o-y and +8% q-o-q. MB EBITDA +17% y-o-y 27,000 25,264 +8% q-o-q 1,983 24,000 21,497 19,931 381 Dividend from 21,000 19,080 17,935 18,415 Associates 979 98 17,015 16,079 284 18,000 15,464 1,887 1,189 EBITDA from 393 1,876 15,000 Operations 12,000 +16% y-o-y 23,281 21,116 18,982 18,952 +11% q-o-q 9,000 18,131 16,048 15,826 15,071 14,203 6,000 3,000 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 4 NOTE: EBITDA = EBITDA from Operations + Dividend from Associates
Equity Income Contributions from chemicals associates were the key factors of the +73% y-o-y and +75% q-o-q gains. +73% y-o-y +75% q-o-q Chemicals MB Non-Chemicals 3,898 4,000 3,647 3,500 3,000 2,500 2,247 2,226 2,942 2,173 2,900 2,000 1,725 1,640 1,626 1,348 1,500 1,495 1,456 678 565 1,117 1,107 1,000 445 1,061 1,047 500 956 878 752 747 717 672 533 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 5
Profit for the Period Profitability was a healthy 13,488 MB, as a result of the solid chemicals earnings which accounted for 66% of SCG’s total Q1/16 profitability. +22% y-o-y +18% q-o-q MB 13,877 15,000 13,488 11,449 11,073 12,000 8,856 9,001 8,532 8,381 7,846 9,000 6,000 3,000 0 -3,000 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Key Non-recurring 460 (30) 700 (2,710) 1,020 700 (3,630) 1,320 280 1) FX Gain (Loss) (420) (170) 0 680 130 460 (270) 510 490 (1,050) 2) Inventory Gain (Loss)* 180 (80) (130) (2,960) (930) 970 (2,160) 330 (300) 3) Insurance Claim 450 50 150 120 0 0 0 0 90 (Sub + Asso.) 4) Others 0 0 0 0 1,490 0 0 480 0 6 *Note: SCG Chemicals (Sub + Asso.)
Segmented Revenue from Sales The chemicals business accounted for 44% of Revenue in Q1/16. Q1/15 Q1/16 Cement- Cement- Chemicals Building Materials Chemicals Building Materials 44% 40% 44% 39% Packaging Packaging 17% 16% MB 47,956 47,810 47,081 50,000 45,880 40,000 30,000 18,847 17,111 20,000 10,000 0 Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Cement - Chemicals Packaging 7 Building Materials
Segmented Profit for the Period The growth was from the chemicals business which accounted for 66% of the Q1/16 earnings. Q1/15 Q1/16 Cement- Building Cement- Chemicals Materials Building Subsidiaries 25% Materials Chemicals 31% 32% Subsidiaries Packaging 44% 9% Chemicals Packaging Equity Income Chemicals 8% 13% Other Equity Income 16% 22% MB 10,000 8,980 Eq Inc. 8,000 6,000 4,938 Sub. 3,558 3,290 4,000 Eq Inc. 6,038 1,765 1,255 2,000 Sub. 878 3,443 40 0 Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Q1/15 Q1/16 Cement - Building Chemicals Packaging Others Materials (Mainly SCG Investment 8 and Corporate )
Segments: Export Sales and ASEAN Operation ASEAN exports and ASEAN operations accounted for 23% in Q1/16, compared to 22% in Q1/15. Sales Destinations Export Destinations 32,242 MB 29,570 MB 109,276 MB 109,998 MB 100% 100% 16% 17% Others, 17% Export to Others Others, 20% 80% 80% N. Asia, 7% 11% N. Asia, 7% 12% Export to ASEAN 23% 22% S. Asia, 8% S. Asia, 10% 12% ASEAN Operation 10% 60% 60% China/HK, China/HK, 24% 22% 40% 40% 61% 61% Domestic ASEAN ASEAN 20% 20% 44% 41% 0% 0% Q1/15 Q1/16 Q1/15 Q1/16 % of Sales 29% 27% 9
Segments: Export Sale and ASEAN Operation Sales to ASEAN (exports and localized operations) grew slightly y-o-y and reached 24,396 MB in Q1/16 (Thai Baht term). ASEAN Sales Export to ASEAN by countries MB Singapore 120,000 Export to ASEAN 3% Philippines 100,912 100,150 6% ASEAN Operation 100,000 Laos 85,537 7% 80,000 74,465 Indonesia 26% 61,213 60,000 Malaysia 51,750 10% 37,496 43,923 40,566 (+1% y-o-y) 40,000 30,936 24,396 20,000 Cambodia 12% Myanmar 20% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 Vietnam 16% Percentage of total sales from ASEAN Operations: 3% 5% 5% 7% 7% 7% 8% 9% 9% 11% 12% ASEAN Operation by countries ASEAN Sales by countries Other Myanmar ASEAN 1% 2% Other ASEAN 10% Philippines Philippines 12% 9% Vietnam 30% Vietnam Myanmar Cambodia 42% 10% 14% Cambodia 13% Indonesia Indonesia 28% 29% 10
HVA’s Revenue from Sales Consolidated: MB 200,000 169,071 161,851 149,924 136,762 150,000 117,992 100,000 85,768 $1.2 billion 59,461 54,865 42,262 (+3% y-o-y) 38,837 50,000 $200m 7,783 0 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 HVA as a % of 4% 17% 19% 25% 29% 32% 34% 35% 35% 37% 39% Revenue from Sales Business 2013 2014 2015 Q1/16 Cement-Building Materials 41% 42% 41% 41% Chemicals 27% 27% 31% 32% 50% 50% 53% 55% Chemicals (Includes associates) Packaging 38% 39% 39% 43% 11
R&D Spending Others SBU: 3% Packaging 9% MB Cement- Chemicals Building 4,000 Materials 55% 3,510 33% 3,000 2,710 2,068 2,000 1,430 $25m 1,111 921 909 880 1,000 720 $1m 370 40 0 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 % R&D SPENDING ON SALES: 0.3% 0.4% 0.5% 0.6% 0.8% 0.8% 12
AGENDA I. Consolidated Results - Q1/16 Consolidated Results - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Packaging V. Summary 13
EBITDA on Assets, and EBITDA Margin EBITDA on Total Assets Percent (%) 35 29 30 27 26 25 21 20 18 20 17 16 16 16 16 15 14 14 14 14 13 15 12 12 10 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 EBITDA Margin (%): 23 27 23 22 22 23 26 22 19 16 14 18 14 11 10 13 13 18 19 EBITDA on Assets = EBITDA / Consolidated Assets 14 EBITDA margin = EBITDA from Operations / Consolidated Sales
Net Debt Leverage registered 1.8 times (x), on healthy EBITDA and lower net debt. Billion Baht Times (x) (Net Debt) (Leverage) 243.5 250 10 9 9.2 197.1 200 8 178.0 175.7 7.7 7 157.8 164.4 162.5 151.7 148.4 150 6 6.4 137.6 126.3 5.8 120.5 122.0 5 114.9 112.1 5.1 100.6 100.5 103.0 99.9 100 4 83.6 4.1 3 3.1 3.1 3.0 2.6 2.6 50 2 2.5 2.4 2.0 2.0 1.9 1.8 1.8 1.8 1.8 1 Net Debt on EBITDA 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 Net Debt to Equity = 0.6x 15
CAPEX & Investments Amounted to 10,357 MB in Q1/16, which was mainly from the greenfield & expansion in the cement-building materials business. Q1/16 SBU: Types : Others Others 3% 4% Maintenance Packaging 10% 13% Cement- Greenfield & Billion Baht Chemicals Investment Building Expansion 80.0 14% 21% Materials 44% 69% 70.0 Efficiency Projects 22% 60.0 50.0 50.0 47.0 45.2 45.0 42.4 40.0 34.5 32.0 30.0 27.2 23.6 19.1 20.0 18.4 14.0 10.4 11.9 10.0 10.3 10.0 8.5 5.7 3.5 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/16 - CAPEX includes debottlenecking, expansion projects, and major turnaround. 16 - Investments are acquisitions and purchase of shares.
Interest and Finance Costs Amounted to a total of 1,550 MB which includes a FX gain of 490 MB, while interest cost was 3.9% at the end of Q1/16. MB 16,000 15,006 14,030 14,000 12,995 12,000 11,487 10,038 10,000 9,076 8,193 8,101 8,000 7,266 6,321 6,089 5,649 6,048 5,878 6,000 5,169 5,273 4,762 4,670 4,000 2,000 1,550 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/15 FX gain (loss): 660 940 (690) 640 (770) 490 17 NOTE: Interest & financial charges include FX gain/loss transactions.
Financial Highlights & Outlook Highlights: � Net Working Capital was relatively sideways at 60,731 MB, with Inventory to Net Sales of 42 days, from 41 days in Q4/15. � Cash & cash under management of 44,436 MB at the end of Q1/16. � Full subscription to the Apr 1/16 debenture issuance of 25 Billion Baht (4-years, 3.0%) which replaced the 25 Billion Baht matured debenture (4-year, 4.15%). Outlook: � Solid financial position. � FY2016 CAPEX & Investments of approximately 50,000 MB, with focus on M&A. � FY2016 depreciation of approximately 24,000 MB, up 3,000 MB y-o-y. 18 .
AGENDA I. Consolidated Results - Q1/16 Consolidated Results - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Packaging V. Summary 19
Recommend
More recommend
