Chememan Public Company Limited Analyst presentation August 2018 - PowerPoint PPT Presentation

Chememan Public Company Limited Analyst presentation August 2018

TABLE OF CONTENT 1. Key Highlight Q2 and 1 st half year of 2018 2. Financial Performance Q2 and 1 st half year of 2018 3. Progress update Strictly Private & Confidential 1

Key Highlight Q2 and 1 st half year of 2018

KEY HIGHLIGHT FOR 1 st HALF YEAR OF 2018 Capacity Expansion In BoD has approved the construction of new kiln quicklime KK4 with the installed capacity of 73,000 • MT/year , expected to spend around 9 months to be completed Thailand Company increased capital in Easternbulk • Capacity Expansion in Easternbulk Production plant is in construction process and expected to start COD within Q1/2019 • India Siriman Production plant is in construction process and expected to start COD within Q3/2019 • CMAN’s IPO Offering CMAN has been listed in SET on March 21, 2018 with offering size of Baht 921.60 million • Net profit attributable to equity holders for Q2/2018 of Baht 58.11 million increased from Q2/2017 by Baht • 39.25 million or 208.06% and increased from Q1/2018 by Baht 20.80 million or 55.76%. The Company’s Net profit attributable to equity holders for 1 st half year of 2018 of Baht 95.41 million increased from the 1 st Performance • half of 2017 by Baht 22.24 million or 30.39% As at 30 June 2018, Total assets is Baht 3,443.75 million, increased by Baht 227.22 million or 7.06% from 31 December 2017 • The Company’s Total liabilities is Baht 1,228.72 million, decreased by Baht 765.11 million or 38.37% from 31 December 2017 Financial Position • Total shareholders’ equity is Baht 2,215.03 million, increased by Baht 992.33 million or 81.16% from 31 • December 2017 Strictly Private & Confidential 3

Financial Performance Q2 and 1st half year of 2018

NORMALIZED EBITDA AND PROFIT COMPARISON Strictly Private & Confidential 5

REVENUE Total Revenue from Sales Classified by Product (THB million) Sales Price Per Unit (BPT) 1,244 1,107 99 113 195 180 647 596 514 59 39 97 LS 98 47 950 HL 88 815 491 459 QL 379 Q2 2017 Q1 2018 Q2 2018 6M 2017 6M 2018 Quicklime Hydrated Lime Limestone Quantity Sales (Tons) Revenue Analysis 237,848 319,837 Total revenue from sales of Q2/2018 attributed to the Company of Baht 647.10 million 49,927 QoQ: Q2/2018 vs Q1/2018 : increased by Baht million 50.55 or 8.47% due to • 41,537 1) higher selling price from export sales 2) higher volumes from quicklime 146,939 90,909 LS and limestone 125,512 25,684 24,243 305,814 YoY: Q2/2018 vs Q2/2017 : increased by Baht 132.62 million or 25.78% from HL 20,125 247,417 • higher volumes from quicklime and hydrated lime (L-T contract) while 152,262 153,551 112,073 QL lower selling price from export sales because of lower in exchange rate Total revenue from sales of 1 st half 2018 attributed to the Company of Baht Q2 2017 Q1 2018 Q2 2018 6M 2017 6M 2018 1,243.66 million increased from 1 st half of 2017 by Baht 136.28 million or 12.31% mainly from higher volumes from quicklime and hydrated lime (L-T contract) Quicklime Hydrated Lime Limestone while lower selling price from export sales because of lower in exchange rate Strictly Private & Confidential 6

REVENUE ANALYSIS by PRODUCT Strictly Private & Confidential 7

COST OF SALES Cost of Sales (THB million) Cost Per Unit (BPT) 829 57 681 126 59 106 432 396 318 32 25 62 64 646 LS 25 55 517 HL 339 307 QL 238 Q2 2017 Q1 2018 Q2 2018 6M 2017 6M 2018 Quicklime Hydrated Lime Limestone LS Usage : QL Yield and Kiln Feed Stone (%) Cost Analysis 75.11% 2.00 80.00% Total cost of sales of Q2/2018 was Baht 432.40 million QoQ: Q2/2018 vs Q1/2018 : increased by Baht million 36.66 or 9.26% due to 1) 1.95 70.00% • 61.93% 62.02% increased in cost per unit by higher production from PBB plant and cost of 57.66% 55.21% 1.90 purchase from other lime producers 2) higher volumes from quicklime and 60.00% 51.44% limestone 1.85 50.00% YoY: Q2/2018 vs Q2/2017 : increased by Baht 114.59 million or 36.06% from • 1.80 1.77 1.77 1) higher volumes from quicklime and hydrated lime (L-T contract) 1.75 1.75 40.00% • 1.73 2) higher cost because of higher production from PBB plant and increasing in 1.75 • 1.71 purchase from other lime producers and 30.00% 1.70 3) classification of certain manpower costs • 20.00% Total cost of sales of 1st half 2018 was Baht 828.14 million increased from 1st half of 1.65 2017 by Baht 147.20 million or 21.61% mainly from 10.00% 1.60 1) higher volumes from quicklime and hydrated lime • 2) higher production from PBB plant even through having lower cost from KK6 1.55 0.00% • kiln Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 3) higher portion of purchase from other lime producers bad tolling • LS Usage : QL Yield Kiln Feed Stone (%) 4) classification of certain manpower costs • Strictly Private & Confidential 8

COST ANALYSIS by PRODUCT Quicklime Q2/2018 Q1/2018 Q2/2017 1St 2018 1St 2017 Quantities MT 153,551 152,262 112,073 305,814 247,417 Cost per unit – QL increased entirely by Cost - Higher production from PBB plant and cost of purchase from other lime producers while having benefit from KK6 QL cost MB (305.33) (286.87) (213.67) (592.20) (471.75) kiln Transportation cost to WH in AU MB (33.74) (19.67) (24.33) (53.40) (45.10) Total cost MB (339.07) (306.54) (237.99) (645.60) (516.85) Q2/2018 vs Q2/2017 and 1st half year of 2018 vs 2017, Cost per unit increased QL cost BPT (1,988) (1,884) (1,906) (1,936) (1,907) - Reallocation of manpower cost from admin expense to Transportation cost to WH in AU BPT (220) (129) (217) (175) (182) production cost while having benefit from KK6 kiln Cost per unit BPT (2,208) (2,013) (2,124) (2,111) (2,089) Cost per unit (net reallocation cost) BPT (2,135) (1,938) (2,124) (2,037) (2,089) Cost per unit – HL Q2/2018 vs Q1/2018, increased Hydrated lime Q2/2018 Q1/2018 Q2/2017 1St 2018 1St 2017 - Higher in tolling portion Quantities MT 24,243 25,684 20,125 49,927 41,537 Cost Q2/2018 vs Q2/2017 and 1st half year of 2018 vs 2017, HL cost MB (58.19) (59.88) (52.40) (118.07) (99.75) decreased Transportation cost to WH in AU MB (3.60) (4.15) (2.90) (7.75) (5.81) - Lower of quicklime usage from PBB plant (lower Total cost MB (61.79) (64.03) (55.29) (125.82) (105.56) production cost) Cost per unit HL cost BPT (2,400) (2,331) (2,604) (2,365) (2,401) Cost per unit – LS Q2/2018 vs Q1/2018, decreased Transportation cost to WH in AU BPT (149) (162) (144) (155) (140) - Lower sale volumes of ground limestone Cost per unit BPT (2,549) (2,493) (2,747) (2,520) (2,541) Cost per unit (net reallocation cost) BPT (2,540) (2,482) (2,747) (2,510) (2,541) Q2/2018 vs Q2/2017 and 1st half year of 2018 vs 2017, increased Limestone Q2/2018 Q1/2018 Q2/2017 1St 2018 1St 2017 - Reallocation of manpower cost from admin expense to Quantities MT 146,939 90,909 194,325 237,848 319,837 production cost Cost - Cost increased from tie-in TK plant LS cost MB (31.54) (25.17) (24.52) (56.71) (58.53) Transportation cost to WH in AU MB 0.00 0.00 0.00 0.00 0.00 Total cost MB (31.54) (25.17) (24.52) (56.71) (58.53) Cost per unit LS cost BPT (215) (277) (126) (238) (183) Transportation cost to WH in AU BPT - - - - - Cost per unit BPT (215) (277) (126) (238) (183) Cost per unit (net reallocation cost) BPT (177) (252) (126) (206) (183) Strictly Private & Confidential 9

GROSS PROFIT NET TRANSPORTATION THB million and % Per Unit (BPT) 24.36% 300 25.00% 23.45% 21.53% 1,045.12 20.01% 250 955.88 935.36 913.61 20.00% 18.58% 827.92 219 207 15 643.95 648.50 10 613.15 200 566.79 520.81 43 15.00% 46 150 108 92.48 76.77 67.95 51.38 10.00% 48.12 2 98 99 100 8 24 9 Q2 2017 Q1 2018 Q2 2018 6M 2017 6M 2018 17 22 160 151 Quicklime Hydrated Lime Limestone 5.00% 50 82 72 69 0 0.00% Q2 2017 Q1 2018 Q2 2018 6M 2017 6M 2018 Quicklime Hydrated Lime Limestone GP net Transport Strictly Private & Confidential 10