Chememan Public Company Limited Analyst Meeting : Q3-2018 16 - PowerPoint PPT Presentation

Chememan Public Company Limited Analyst Meeting : Q3-2018 16 November 2018

Table of Contents Highlights Key 1. Key Highlights of Q3 2018 Performance Financial 2. Financial Performance Progress Update 3. Progress Update Chememan Analyst Presentation Q3-2018 2

Key Highlights of Q3-2018 Highlights Key Performance Financial Progress Update Chememan Analyst Presentation Q3-2018

Key Highlights of Q3-2018 Highlights Key  Refinance : Chememan was able to improve the existing financing package through refinancing, which help to lower the financing cost by one-third. This transaction had one-time fee of approximately 10 million baht. Performance Financial  KK1 : In Q3 2018, KK1 quicklime kiln was temporary shut down as per repair and maintenance schedule. The maintenance took 68 days to complete at the expenses of around 6 million baht. Progress Update Chememan Analyst Presentation Q3-2018 4

Financial Performance of Q3-2018 Highlights Key Performance Financial Progress Update Chememan Analyst Presentation Q3-2018

Financial Highlights of Q3 2018 Unit : Million Baht Q3 2018 Q2 2018 Q3 2017 %QoQ %YoY Sales Revenue 588 647 513 -9.2% +14.6% Cost of Sales (not include depreciation & amortization) (351) (389) (292) -9.7% +20.2% Highlights Transportation cost (106) (116) (94) -8.7% +12.1% Key 131 143 127 -8.1% +3.4% Gross Profit (net transportation cost and depreciation & amortization) Gross Profit Margin (net transportation cost and depreciation & amortization) (%) 27.2% 26.8% 30.3% 6 9 6 -31.9% +4.0% Other income (9) (8) (7) +9.5% +21.3% Selling expenses (40) (42) (53) -5.7% -24.5% Administrative expenses Performance (5) 17 (2) N/A N/A Gain (Loss) on exchange rate Financial (1) (1) (0) -10.3% N/A Share of loss from investment in joint ventures 83 117 71 -29.4% +17.2% EBITDA 5 (17) 2 N/A N/A Adjust : (a) Gain (Loss) on exchange rate 6 0 1 N/A N/A Adjust : (b) Cost incurred by temporary shutdown of kiln for maintenance 93 100 74 -6.2% +26.9% Normalized EBITDA Normalized EBITDA Margin (%) 15.9% 15.4% 14.3% (47) (48) (40) -0.5% +18.2% Depreciation & Amortization Progress Update -1.2% +17.7% Depreciation & Amortization – Cost of sales (43) (44) (37) +7.3% +24.9% Depreciation & Amortization – Administrative expenses (4) (4) (3) (20) (11) (16) +83.1% +27.3% Finance costs 11 0 0 N/A N/A Adjust : (c) Loan prepayment fee 4 (0) 3 N/A +46.1% Gain (Loss) on tax 41 41 21 +1.6% +98.1% Normalized Net Profit Normalized Net Profit margin (%) 7.0% 6.3% 4.1% (5) 17 (2) N/A N/A (a) Gain (Loss) on exchange rate (6) (0) (1) N/A N/A (b) Cost incurred by temporary shutdown of kiln for maintenance (11) 0 0 N/A N/A (c) Loan prepayment fee Net profit 20 58 18 -66.3% +10.7% Net Profit Margin (%) 3.3% 9.0% 3.4% Chememan Analyst Presentation Q3-2018 6

Financial Highlights of 9M 2018 9M 2018 9M 2017 %YoY Unit : Million Baht Sales Revenue 1,831 1,620 +13.0% Highlights (1,095) (899) +21.8% Cost of Sales (not include depreciation & amortization) Key Transportation cost (314) (302) +4.2% Gross Profit (net transportation cost and depreciation & amortization) 422 420 +0.5% Gross Profit Margin (net transportation cost and depreciation & amortization) (%) 27.8% 31.8% 12 13 -7.7% Other income Selling expenses (25) (21) +14.8% (112) (153) -26.6% Administrative expenses Performance Financial Gain (Loss) on exchange rate 1 (2) N/A (3) (0) N/A Share of loss from investment in joint ventures 295 257 +14.8% EBITDA (1) 2 N/A Adjust : (a) Gain (Loss) on exchange rate Adjust : (b) Cost incurred by temporary shutdown of kiln for maintenance 6 1 N/A Normalized EBITDA (3) 300 260 +15.6% Normalized EBITDA Margin (%) 16.4% 16.0% (137) (119) +15.5% Progress Depreciation & Amortization Update (127) (111) +14.6% Depreciation & Amortization – Cost of sales (10) (8) +28.4% Depreciation & Amortization – Administrative expenses Finance costs (49) (46) +7.1% 11 0 N/A Adjust : (c) Loan prepayment fee Gain (Loss) on tax 7 (1) N/A 131 94 +40.1% Normalized Net Profit Normalized Net Profit margin (%) 7.2% 5.8% 1 (2) N/A (a) Gain (Loss) on exchange rate (b) Cost incurred by temporary shutdown of kiln for maintenance (6) (1) N/A (11) 0 N/A (c) Loan prepayment fee 115 91 Net profit +26.6% Net Profit Margin (%) 6.3% 5.6% Chememan Analyst Presentation Q3-2018 7

Financial Performance Sales Quantities Highlights Unit : MT 898,938 Key 864,358 Limestones 385,661 Hydrated Lime 444,089 Quicklime 72,515 324,733 67,129 305,350 255,567 Performance Financial 146,939 147,813 440,763 124,252 353,140 24,243 22,588 25,591 153,551 134,949 105,724 Q3/2017 Q2/2018 Q3/2018 9M 2017 9M 2018 Sales Revenues Progress Unit : THB million Update 1,831 1,620 160 Limestones 163 283 Hydrated Lime 288 Quicklime 647 588 513 1,388 59 1,169 62 97 50 89 108 491 438 354 Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 Chememan Analyst Presentation Q3-2018 8

Financial Performance EBITDA Normalized EBITDA Highlights Unit : THB million Unit : THB million Key 400 17.0% 400 20.0% 18.1% 350 16.5% 18.0% 16.4% 350 16.1% 15.8% 16.0% 16.0% 300 16.0% 15.9% 300 14.1% 13.7% 14.0% 250 15.5% 15.4% 250 12.0% 200 15.0% 200 10.0% 300 8.0% Performance 295 150 14.5% 150 14.3% 260 257 Financial 6.0% 100 14.0% 100 4.0% 117 100 93 50 13.5% 50 83 74 71 2.0% 0 0.0% 0 13.0% Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 EBITDA EBITDA Margin (%) Normalized EBITDA Normalized EBITDA Margin (%) Net Profit Normalized Net Profit Progress Update Unit : THB million Unit : THB million 200 10.0% 200 8.0% 9.0% 180 9.0% 7.2% 180 7.0% 7.0% 160 8.0% 160 6.3% 140 7.0% 6.0% 5.8% 140 6.3% 120 6.0% 5.0% 5.6% 120 100 5.0% 4.1% 100 4.0% 80 4.0% 80 3.4% 3.3% 3.0% 131 60 115 3.0% 60 91 94 2.0% 40 2.0% 40 58 41 41 1.0% 20 1.0% 18 20 20 21 0 0.0% 0 0.0% Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 Net Profit Net Profit margin (%) Normalized Net Profit Normalized Net Profit margin (%) Chememan Analyst Presentation Q3-2018 9

Analysis by Product - Quicklime Quicklime Unit Q3/2018 Q2/2018 Q3/2017 9M 2018 9M 2017 Highlights Sales Quantities MT 134,949 153,551 105,724 440,763 353,140 Key Domestic MT 48,474 58,656 55,320 186,810 189,907 Export MT 86,474 94,895 50,403 253,953 163,234 Price per unit BPT 3,243 3,199 3,350 3,149 3,311 Ex-fac price per unit BPT 2,464 2,436 2,543 2,440 2,552 Performance Financial Cost per unit BPT (2,190) (2,208) (2,220) (2,135) (2,128) Sales Revenue MB 438 491 354 1,388 1,169 Domestic MB 134 159 147 506 503 Export MB 303 332 207 882 666 Cost of Sales MB (295) (339) (235) (941) (752) Progress Update QL cost MB (267) (305) (211) (859) (683) Transportation cost to AU MB (29) (34) (24) (82) (69) Transportation expense MB (76) (83) (61) (231) (199) Gross Profit (Net Transportaion) MB 66 69 58 216 219 % Gross Profit Margin (Net Transportation) % 18.2% 16.8% 19.8% 18.7% 22.5% Chememan Analyst Presentation Q3-2018 10

Quicklime Quicklime Sales Quantity Highlights Key Unit : MT + 25% YoY 440,763 353,140 Export 253,953 Domestic 163,234 - 12% QoQ Performance Financial 153,551 134,949 105,724 94,895 189,907 186,810 86,474 50,403 55,320 58,656 48,474 Q3/2017 Q2/2018 Q3/2018 9M 2017 9M 2018 Quicklime Sales Revenue Progress Update Unit : THB million 1,600 25.0% 1,388 22.5% 1,400 19.8% 20.0% 1,169 18.7% 1,200 18.2% 16.8% 1,000 882 15.0% 666 800 10.0% 600 491 438 354 400 332 5.0% 303 207 503 506 200 159 147 134 0 0.0% Q3 2017 Q2 2018 Q3 2018 9M 2017 9M 2018 Domestic Export Gross Profit Margin (net transportation) Chememan Analyst Presentation Q3-2018 11

Analysis by Product – Hydrated Lime Q3/2017 Hydrated Lime Unit Q3/2018 Q2/2018 9M 2018 9M 2017 Highlights Sales Quantities MT 22,588 24,243 25,591 72,515 67,129 Key Domestic MT 8,924 8,604 5,521 27,350 17,224 Export MT 13,665 15,639 20,070 45,165 49,904 Price per unit BPT 3,922 3,990 4,236 3,905 3,990 Performance Ex-fac price per unit BPT 3,343 3,305 3,381 3,307 3,422 Financial Cost per unit BPT (2,463) (2,549) (2,499) (2,502) (2,525) Sales Revenue MB 89 97 108 283 288 Domestic MB 28 27 18 86 55 Export MB 60 70 91 197 233 Progress Update Cost of sales MB (56) (62) (64) (181) (170) (52) HL cost MB (58) (61) (170) (160) (4) Transportation cost to WH in AU MB (4) (3) (11) (9) Transportation expense MB (10) (13) (19) (32) (49) Gross Profit (Net Transportaion) MB 23 22 26 70 69 % Gross Profit Margin (Net Transportation) % 29.6% 26.2% 28.8% 27.7% 29.0% Chememan Analyst Presentation Q3-2018 12