Opportunity Day Stock Exchange of Thailand Quarter 1, 2017 Enhances lives everyday with The Green Chemical Concept
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.
Agenda GGC Business Overview Strategic Direction 1Q/17 Financial Highlights Page 3
Agenda GGC Business Overview Strategic Direction 1Q/17 Financial Highlights Page 4
GGC – Green Flagship A Prominent Player in Oleochemical Business Aiming to Become a Leading Green Chemical Company GGC’s Post -IPO Shareholding Structure Key Milestones Biocomplex Completed Phase 1 COD (7) Kernel Nut Public corporate Extraction restructuring Plant COD (7) for spin-off LEADING GREEN CHEMICAL 2019 72.29 (1) - 75.00% 25.00 – 27.71% (1) 2018 COMPANY 2017 2016 2015 Founded Biocomplex 2008 Phase 2 TOL and TFA Converted 2006 into a PLC ME Plant 2 COD (7) and renamed 2005 Commenced >99.99% (3) 30.00% (4) 50.00% (5) 50.00% (2) 50.00% to GGC Operations Acquired JV TETSO 50% in TEX Biocomplex Invested in 30% interest in TETSO Note: (1) In the case that full over – allotment options are exercised (2) Held by BASF Thai Company Limited (3) Other 2 shares are held by individuals (4) Remaining 70.00% are held by Eastern Palm Oil Company Limited (5) Remaining 50.00% are to be held by Kaset Thai International Company Limited (KTIS) (7) Scheduled COD Page 5
Overview of GGC’s Value Chain Strong Foothold of Upstream Businesses and Integrating into Downstream Businesses Basic Oleochemicals Raw Material End Use Operating Performance Overview Oleochemicals Derivative Sales Revenue Breakdown B100 (used to By Business Unit Palm Oil Methyl Ester produce Biodiesel, 1Q/17 : Total 4,246 MB transportation fuel) (CPO) (ME) Home Care 38% Fatty Alcohols Sulfates 62% Fatty Alcohols Palm Kernel Oil Fatty Alcohols Personal Care Ethoxylates (CPKO) (FA) (FAEO) Adjusted EBITDA Breakdown Industrial Aids By Business Unit Fatty Alcohols Ether Sulfates 1Q/17 : Total 345 MB Pharmaceuticals 47% 53% Refined Glycerine Personal Care (Glycerine or GL) Chewing Gum / Candy ME Business Unit (ME + GL) FA Business Unit GGC’s Product TEX’s Product Page 6
GGC’s Key Strengths GGC, the Designated Green Chemical Flagship Company of the PTTGC Group, a Leading Oleochemical Player with Growth Opportunities in the Downstream Businesses 1 Advanced technology from international manufacturer Technologically advanced production Feedstock flexibility plants and commitment for continuous Cost competitiveness Production yield competitiveness improvement Reliability – minimal unplanned downtime High Reliability- Minimal Downtime (1) Superior ME Profitability THB / ton 9.0% 5,000.00 7.5% 0.1 7.2% 4,500.00 0.09 EBITDA per ton 99.99% 4,000.00 0.08 3,500.00 0.07 99.78% 3,000.00 0.06 Plant Operating EBITDA Margin 2,500.00 0.05 99.64% Period 2,000.00 0.04 3,147 2,936 2,847 1,500.00 0.03 1,000.00 0.02 500.00 0.01 0.00 0 2014 2015 2016 2014 2015 2016 2 ME and FA positioned as premium products with high quality Strong brand equity with high-quality Internationally recognizable brand renowned for its quality products and service standards Strong operational standard highly recognized and awarded RSPO certified in line with global trends Brand Sustainability Awards Certifications Note: (1) Operating period is based on amount of time without unplanned shutdown over total hours in a year (365 days * 24 hours) Page 7
GGC’s Key Strengths (cont’d) GGC, the Designated Green Chemical Flagship Company of the PTTGC Group, a Leading Oleochemical Player with Growth Opportunities in the Downstream Businesses 3 Strategic Location in the Map Ta Located in Rayong with proximity to various partners, suppliers, customers etc. Connecting pipelines to supplier (for hydrogen) and customer (for FA to TEX) Phut Industrial Complex with allows cost and quality advantages Proximity to Suppliers and Advantage in developing new products and quality of existing product that requires Customers Hydrogen as raw material CLMV Biocomplex ME & FA plant ME plant II Current facilities Future projects 4 Strategic relationship with PTT Designated green chemical flagship of PTTGC Group, PTTGC and global industry Long-standing business relationships with PTT Group, PTTGC Group and other business partners i.e. Shell, Esso, SPRC and Unilever leaders 2016 Sales Breakdown by Customer PTT Group Others 45% PTT Group 45% TEX 10% Page 8
Agenda GGC Business Overview Strategic Direction 1Q/17 Financial Highlights Page 9
Aspiration to Become a Leading Green Chemical Company Our Strategies in Completing the Three Pillar Growth Roadmap Product Portfolio Aspiration Under the Three Pillar Strategy Biochemicals Biofuel Bioplastics Palm Base Sugar Base FA GL Bio Bio ME Ethanol Plastics chemicals Special- FAEO ties Our Strategies 1 Maintaining leadership position in our current business 2 Continuously pursuing operational excellences to improve profitability 3 Expanding customer base and maintaining relationship with existing valuable customers 4 Emphasizing on R&D for high value products 5 Expansion into specialty oleochemicals 6 Moving toward biochemicals and bioplastics Page 10
Projects in the pipeline Biocomplex Phase 1 Methyl Ester Plant 2 200 KTA Sugarcane : 2.4 mm TPA Ethanol : 186 mm LPA Refined Glycerine Plant 2 Oleo Specialties Kernel Nut Extraction 20 KTA 90 KTA Feed Intake 2017 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 Methyl Ester Sugarcane : 2.4 mm TPA Capacity TBA 90 KTA 200 KTA 20 KTA Ethanol : 186 mm LPA 380 MB 7,615 MB CAPEX 1,650 MB TBA TBA (GGC holds 30%) (GGC will hold 50%) Project Progress Update Under Construction Under Construction Feasibility Study Feasibility Study FID : 4Q/17 Scheduled COD 4Q/17 4Q/18 Targeted : 4Q/18 Targeted : 4Q/19 4Q/19 Page 11
Agenda GGC Business Overview Strategic Direction 1Q/17 Financial Highlights Page 12
Quarter 1/2017 Highlights by Business Unit Methyl Ester Business Unit (B100) Highlights Fatty Alcohols Business Unit Highlights • Gradual growth of local CPO supply • Gradual growth of regional CPKO supply, • Biodiesel mandate was B5 during 1Q/17 • CPKO price started to declined mid 1Q/17 Biodiesel Mandates & Trend of CPO DIT Price Trend of CPKO MPOB Price Biodiesel mandate B7* B7-B3 B7 B5-B3 B5 *Biodiesel mandate B7 – effective from May 8, 2017 GGC’s Methyl Ester Business Unit Performance GGC’s Fatty Alcohols Business Unit Performance 1Q/16 4Q/16 1Q/17 % YoY % QoQ 1Q/16 4Q/16 1Q/17 % YoY % QoQ Sales Revenue (Millon Baht) 1,211 2,009 1,604 32% -20% Sales Revenue (Millon Baht) 3,124 2,111 2,642 -15% 25% Plant Utilization Rate (%) 98% 105% 89% -8% -16% Plant Utilization Rate (%) (1) 102% 59% 86% -16% 27% Sales Volume (Tons) 25,321 28,048 19,890 -21% -29% Sales Volume (Tons) (2) 88,345 53,038 69,205 -22% 30% Adjusted EBITDA (Million Baht) (1) 19 91 181 833% 99% Sales Volume (Million Litres) 102 61 80 - 0 30% Adjusted EBITDA Margin (%) 1.6% 4.5% 11.3% 9.7% 6.8% Adjusted EBITDA (Million Baht) (3) 303 143 163 -46% 14% Note : (1) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV Adjusted EBITDA Margin (%) 9.7% 6.8% 6.2% -3.5% -0.6% Note : (1) Nameplate Capacity 300,000 Tons per year (2) Coversion ratio: 0.865 Tons = c.1,000 Litres Page 13 (3) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV
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