Golden Lime: Stability And Growth in Diversified Markets SET - PowerPoint PPT Presentation

Golden Lime: Stability And Growth in Diversified Markets SET Opportunity Day 2Q 2018 Bangkok, Sept 18 th 2018 1

Disclaimer This presentation contains “forward - looking” statements of Golden Lime Public Company Limited (the “Company”) that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical fact contained herein, including, without limitation, those regarding the future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets where the Company participates or is seeking to participate and any statements preceded by, followed by or that include the words “target”, “believe”, “expect”, “aim”, “intend”, “will”, “may”, “anticipate”, “would”, “plan”, “could”, “should, “predict”, “project”, “estimate”, “foresee”, “forecast”, “seek” or similar words or expressions are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as at the date of this presentation, and the Company does not undertake any duty or obligation to supplement, amend, update or revise any such statements. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved. For an further enquiries please contact Investor Relations: Phone: +66 (0) 2017 7461 – 3 Email: irsutha@goldenlime.co.th 9/18/2018 2

PURPOSE OF THE PRESENTATION  Introduce Golden Lime  Update on latest financial results H1 2018  Share with you Golden Lime’s growth strategy Source : Golden Lime quarterly SET reporting 9/18/2018 3

Golden Lime Business Description and History With + 45% domestic market share , One of Thailand’s largest lime players Headquartered in Nonthaburi , 3 legal entities, 4 production sites “Think Lime, On the Thai Stock Exchange (SET) since 2014 Think Golden Lime” (ticker : SUTHA) • Established in 2003 • Main shareholder CE Lime (Thailand) “Carmeuse Eastern” • Current Managing Director Mr. Geza Company with a large technical knowhow back by Emil Perlaki Carmeuse Group using best available technologies. 9 vertical kilns and several hydrators and milled limestone units Committed to Sustainability 9/18/2018 4

How The Lime Making Process Works……. 9/18/2018 5

Golden Lime Has Manufacturing Facilities In Saraburi Which Is Well Positioned Close To Major Customers 95% of sugar industry is  The key tool for producing lime is the kiln which concentrated in the come in various configurations North and center of Thailand  Golden Lime has a number of European designed kilns as well as an in-house designed ‘EOD’ kiln  The EOD kiln has also been sold to external lime producers in places like Indonesia through our subsidiary Golden Lime Engineering Bangkok Thai steel industry Saraburi region concentrated around Bangkok 9/18/2018 6

Supply Security Offers Our Customers Peace Of Mind While Fuel Flexibility Allows Management Of Variable Costs  Golden Lime has 9x150ktpd kilns located Saraburi / Lopburi region across 3 different locations:  Chongsarika: 6x150tpd kilns  HuayPaiWay: 1 x 150tpd kiln  Saraburi Quicklime: 2 x 150tpd kiln GL ChongSarika  This gives supply security to our customers that cannot afford to stop their manufacturing processes due to a lack of lime GL Napralan*  Alongside the supply security Golden Lime SQL Prabuthapaht also has fuel flexibility as the new acquisition of Saraburi Quicklime uses bituminous coal GL HuayPaiWay  This allows Golden Lime to choose the most efficient fuel source and given this is 20% of the input costs it’s a valuable lever versus those on only one fuel  We also have operations in Napralan with facilities for hydrating and milling * No kilns – downstream processing 9/18/2018 7

Golden Lime Has A Diversified Customer Base Operating Across A Wide Range Of Industries  Golden Lime’s customer base is spread across a wide variety of industries which means that if one industry is negatively impacted product can be switched to another industry with more positive conditions  Although lime can be a small component of a customers’ manufacturing process (eg steel 6%) it is at the same time a vital component therefore customer loyalty is high  Along with traditional lime users such as steel, sugar and construction Golden Lime is also now present in newer product segments such as water treatment and specialty chemicals  Various growth areas are also being developed in aero concrete blocks and specialty lime products for industries like steel that give better value in use versus standard lime or other products 9/18/2018 8

Golden Lime Has Two Large Strategic Shareholders With Vast Experience Both In Thailand And Globally 9/18/2018 9

PURPOSE OF THE PRESENTATION  Introduce Golden Lime  Update on latest financial results H1 2018  Share with you Golden Lime’s growth strategy Source : Golden Lime quarterly SET reporting 9/18/2018 10

Golden Lime H1 2018 Financials Revenue, EBITDA and Net Income Golden Lime – Total Revenues Golden Lime – EBITDA In million THB In million THB 113 105 80 534 424 414 77 70 429 369 133 128 121 116 548 549 518 505 102 102 428 436 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019 H1 H2 H1 H2 Golden Lime – Net Income  Sales volume and revenue increase in 2017 was further In million THB accelerated by the capacity addition and the SQL acquisition in H1 54  Synergies via the integration of SQL into GL , and new 26 product developments from 2019, are expected to improve 44 36 further the revenue and profit generation in 2019 23 23 74 70  EBITDA also increased significantly particularly in the core 57 48 45 46 business which saw a 22mTHB yr-on-yr increase in 2Q after the full consolidation effect of Saraburi Quicklime 2013 2014 2015 2016 2017 2018 2019  Net Income was relatively stable as depreciation increased H1 H2 with the addition of Kiln 7 9/18/2018 11

Golden Lime H1 2018 Financials ROA (Return on Assets) And ROE (Return on Equity) Golden Lime – Return on Assets Golden Lime – Return on Equity In million THB In million THB 28.3% 15.0% 15.6% 15.6% 10.0% 12.2% 7.0%7.4% 7.5% 11.3%  While ROA (Return on Assets) was year-on-year this is a positive trend given that Golden Lime has added significantly to its asset base in the form of a new kiln located in a new production facility  ROE (Return on Equity) increased 28% due to the higher net income in H1 2018 vs H2 2017 9/18/2018 12

Golden Lime H1 2018 Financials Dividend: A Regular Cash Stream For Investors Golden Lime – Dividend History Golden Lime – EBITDA/Dividend In million THB 0.30 2.64 1.55 1.78 3.22 4.05 3.79 2.84 2.51 1.13 2014 2015 2016 2017 2018 H1 H2 0.15 0.15 0.15 0.15 Golden Lime – Net 0.10 0.08 0.09 0.08 Income/Dividend 0.50 0.81 0.59 0.94 1.78 1.56 1.53 1.20 0.50 H1 H2 H1 H2 H1 H2 H1 H2 H1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 H1 H2 Golden Lime Dividend History Future Plan For Dividends  Since going public Golden Lime has paid a  Golden Lime will continue to pay out regular dividend’s regular dividend on a bi-annual basis  A board decision was taken to pay out quarterly as  The stated policy is for at least 40% of net opposed to bi-annual income to be paid out but as evidenced this has  Currently the size of the dividend will be decided on a historically been higher quarterly basis  In H1 the payout of 0.08THB was 24mTHB total  The aim is to have more regular sized dividend pay- and the current plan is to be at least in line with outs so it becomes more predictable for investors 2017 in terms of total dividend payout for 2018 9/18/2018 13

Acquisition Of Saraburi Quicklime And New Kiln 7 Increased Capacity And Customer Base New Kiln 7 Commissioned  150 tonnes per day (50 kt/yr) Additional Capacity  Project ongoing to push the capacity higher  20-30mTHB* EBITDA Impact  Low labor and SG&A cost  Fuel optimization program started Next Steps  Plan to use this kiln for high value add products Saraburi Quicklime  300 tonnes per day (100 kt/yr) Acquisition Additional  Project ongoing to push the capacity higher Capacity  40-50mTHB* EBITDA Impact  Additional order book particularly in steel  Further synergies in SG&A and variable costs Next Steps expected in 2019 * Internal forecast 9/18/2018 14

PURPOSE OF THE PRESENTATION  Introduce Golden Lime  Update on latest financial results 2Q 2018  Share with you Golden Lime’s growth strategy Source : Golden Lime quarterly SET reporting 9/18/2018 15