Opportunity Day FY2017 March 6, 2018 | The Stock Exchange of - PowerPoint PPT Presentation

Enhances lives everyday with The Green Chemical Concept Opportunity Day FY2017 March 6, 2018 | The Stock Exchange of Thailand

Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. GGC has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and GGC does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. Page 2

Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward Page 3

2017 Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Key Achievements Key Achievements January: MOU Bioeconomy August: Prime Minister’s Industry Award 2017- Quality Management August: Enviico Eco-friendly toilet cleaner Page 4

2017 Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Key Highlights Key Highlights ME Business Unit: ME Business Unit: FA Business Unit: FA Business Unit: +Mandate of B5/B7 +Mandate of B5/B7 + Tight supply in Asia and S. America + Tight supply in Asia and S. America +The highest production volume ever +The highest production volume ever induced demand for Natural FA induced demand for Natural FA +Domestic Crude Palm Oil inventory remains +Domestic Crude Palm Oil inventory remains + Natural FA prices were in competitive range + Natural FA prices were in competitive range high high to Synthetic FA to Synthetic FA + Improve FA sales volume compares to 2016 + Improve FA sales volume compares to 2016 + Both ME & FA plants ran at full capacity + Both ME & FA plants ran at full capacity + Improving FY17 Core Performance: + Improving FY17 Core Performance: + Glycerin prices soar due to short supply + Glycerin prices soar due to short supply • • Consoled Adj. EBITDA + 63%yoy Consoled Adj. EBITDA + 63%yoy • • FA Adj. EBITDA + 605%yoy FA Adj. EBITDA + 605%yoy + Kernel Nut Extraction is on operation in Feb + Kernel Nut Extraction is on operation in Feb - CPO prices fallen to the lowest price at - CPO prices fallen to the lowest price at + Refined Glycerin Plant 2 project was + Refined Glycerin Plant 2 project was 19B/kg 19B/kg approved for FID approved for FID - THB continually appreciated over USD - THB continually appreciated over USD Page 5

2017 Operation Highlights Highlights Palm Oil Market Update Financial Performance GGC Going Forward METHYL ESTER (B100) BUSINESS UNIT METHYL ESTER (B100) BUSINESS UNIT CPO (DIT) : THB/Kg CPO (DIT) : THB/Kg Biodiesel Mandate Biodiesel Mandate GGC’s ME Operational Performance GGC’s ME Operational Performance Plant Utilization Rate 112% B7,B5 31.95 100% 101% B5 , B7 B7 B7 30.14 B5 82% B3 59% 24.88 22.43 20.48 4Q16 3Q17 4Q17 FY16 FY17 Sales Volume (Tons) 4Q16 3Q17 4Q17 FY16 FY17 344,173 4Q16 3Q17 4Q17 FY16 FY17 281,688 53,038 97,373 91,716 ME (EPPO) : THB/Lt ME (EPPO) : THB/Lt ME EPPO P2F : THB/Kg ME EPPO P2F : THB/Kg 4Q16 3Q17 4Q17 FY16 FY17 35.09 Adjusted EBITDA (MB) 4.96 4.93 33.60 4.80 4.70 4.41 932 28.76 26.34 24.81 589 143 133 109 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 Page 6

2017 Operation Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward FATTY ALCOHOLS BUSINESS UNIT FATTY ALCOHOLS BUSINESS UNIT CPKO (MPOB) : USD/Ton CPKO (MPOB) : USD/Ton Natural Fatty Alcohols regained Natural Fatty Alcohols regained GGC’s FA Operational Performance GGC’s FA Operational Performance Competitiveness vs. Synthetic ones Competitiveness vs. Synthetic ones 1,505 Plant Utilization Rate 1,304 1,299 1,244 1,156 Crude Oil Price (WTI) : USD/BBL 55 51 49 123% 121% 48 112% 43 105% 98% 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 FA (ICIS) : USD/Ton FA (ICIS) : USD/Ton Ethylene Price (USGC) : USD/Ton Sales Volume (Tons) 738 720 719 704 100,140 111,152 676 2,054 1,983 1,975 1,820 1,759 31,574 32,045 28,048 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 Synthetic FA (C1215) Price : USD/Ton Adjusted EBITDA (MB) Natural Mid Cut FA (C1214) Price : USD/Ton FA Market P2F : USD/Ton FA Market P2F : USD/Ton 2,315 2,321 2,248 1,213 2,094 488 483 2,205 1,685 433 2,186 2,098 316 245 172 201 81 177 1,826 1,576 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 4Q16 3Q17 4Q17 FY16 FY17 Page 7

Projects Timeline Highlights Palm Oil Market Update Financial Performance GGC Going Forward Biocomplex Refined Glycerine Phase 1 Plant 2 20 KTA Sugarcane : 2.4 mm TPA Ethanol : 186 mm LPA Methyl Ester Plant 2 200 KTA Oleo Specialties 14 KTA Kernel Nut Extraction 90 KTA Feed Intake 2018 2019 2020 Kernel Nut Oleo Specialties Methyl Ester Refined Glycerine Biocomplex Project Extraction Plant 2 Plant 2 Phase 1 (TETSO) Feedstock Intake Methyl Ester Refined Glycerine Sugarcane : 2.4 mm TPA Capacity 14 KTA 90 KTA 200 KTA 20 KTA Ethanol : 186 mm LPA 380 MB 7,650 MB CAPEX 1,650 MB 326 MB TBA (GGC holds 30%) (GGC will hold 50%) Project Progress Update Completed Under Construction BoD approved for FID Feasibility Study FID : 3Q18 Scheduled COD February 2018 3Q18 Targeted : 2Q19 Targeted : 4Q19 4Q20 Page 8

On Schedule - Project Construction Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Kernel Nut Extraction Plant Kernel Nut Extraction Plant Methyl Ester Plant 2 Methyl Ester Plant 2 Page 9

Agenda Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Page 10

1Q18 Highlights of Palm Oil & Oleochemicals Market Highlights Palm Oil Market Updates Financial Performance GGC Going Forward ME Chain ME Price & Spread ME: THB/KG Spread ME CPO • ME demand is healthy due to high biodiesel consumption in 45.0 39.54 traveling season and additional demand from ME stock policy 40.0 � Government requested for co-operation from Biodiesel 34.38 33.26 35.0 30.45 producers to build up ME stock to boost up local CPO price 28.68 27.88 30.0 30.78 CPO: 25.0 25.84 • Palm oil production in 1Q18 will decrease in drought season 24.88 20.0 22.43 • Local CPO stock trends to decrease due to 20.48 15.0 19.10 � Tight CPO supply in winter 10.0 � High ME consumption in travelling season 5.17 4.99 4.98 4.95 4.80 4.85 � 5.0 CPO export cargo • National CPO stock 0.0 � Dec’17 = 485,379T (Normally level around 200,000T) 1Q17 2Q17 3Q17 4Q17 1Q18 FY17 FA Chain FA Price & Spread USD/T FA: Spread FA CPKO 2,500 2,243 • Natural FA prices trend to decline follow CPKO price in 1Q18 2,054 • FA demand shall pick up after New Year and Chinese New Year 1,975 1,896 1,820 2,000 1,783 long weekend period • Low price Natural FA shall boost up demand over Synthetic FA 1,516 1,304 1,500 1,256 1,244 1,156 CPKO: 999 • CPKO price is slow down due to weak demand in 1Q18, 1,000 expectedly from China 584 492 483 • Palm Oil stock in South East Asia remained > 2,000,000T due to 433 424 389 500 yield recovery from El-Nino 0 1Q17 2Q17 3Q17 4Q17 1Q18 FY17 Go to pg.20 Page 11

Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward Page 12

Consolidated Financial Performance Highlights Palm Oil Market Updates Financial Performance GGC Going Forward EBITDA & Adjusted EBITDA* (MB) / EBITDA & Adjusted EBITDA* (MB) / Sales Revenue (MB) Sales Revenue (MB) Adjusted EBITDA Margin* (%) Adjusted EBITDA Margin* (%) 9.3% 19,472 8.6% 6.8% 17,200 6.4% 5.4% 1,802 7,813 6,089 1,460 5,180 5,219 4,120 11,659 11,111 1,903 2,383 2,009 3,277 2,836 1,138 2,111 1,104 658 1,213 4Q16 3Q17 4Q17 FY16 FY17 172 ME Business Unit FA Business Unit Net Profit (MB) & Net Profit Margin (%) Net Profit (MB) & Net Profit Margin (%) 755 5.6% 4.8% 3.4% 2.7% 449 1.1% 932 387 354 802 273 224 589 211 316 303 245 382 81 213 109 937 143 133 101 109 85 59 521 4Q16 3Q17 4Q17 FY16 FY17 55 251 142 ME EBITDA ME Adjusted EBITDA FA EBITDA FA Adjusted EBITDA 4Q16 3Q17 4Q17 FY16 FY17 Consolidated Adjusted EBITDA Margin Page 13