Enhances lives everyday with The Green Chemical Concept Opportunity Day Quarter 3, 2017 November 21, 2017 | 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.
Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward
Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward
3Q17 Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Key Highlights in the quarter ME Business Unit: FA Business Unit: + Domestic Crude Palm Oil inventory + Tight supply in China and India induced remained high during raining season demand for natural FA + B7 applied for the full quarter + Natural FA prices were in competitive range to Synthetic FA + Achieved high sales volume of 31,574 tons + Both ME & FA plants ran at high U-rates + Improving 9M17 Core Performance: • + Optimized inventory level: Consoled Core EBITDA + 55%yoy • FA Core EBITDA + 841%yoy ME stock loss lower 93%qoq FA stock loss lower 57%qoq. + Construction projects : on schedule - Continual fall in CPO price led to soft product price - THB continually appreciated over USD - Biocomplex Phase 1 : timeline shifts Page 5
3Q17 Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward METHYL ESTER (B100) BUSINESS UNIT GGC’s ME Operational Performance CPO (DIT) : THB/Kg Biodiesel Mandate Plant Utilization Rate 112% 106% 101% 34.18 B7 B7,B5 90% 32.55 B5 , B7 B5,B7 72% B3 B7,B5 B3 26.35 25.84 22.43 3Q16 2Q17 3Q17 9M16 9M17 Sales Volume (Tons) 252,457 3Q16 2Q17 3Q17 9M16 9M17 228,650 3Q16 2Q17 3Q17 9M16 9M17 60,433 85,879 97,373 ME (EPPO) : THB/Lt ME Market P2F : THB/Kg 3Q16 2Q17 3Q17 9M16 9M17 37.58 Adjusted EBITDA (MB) 35.59 4.95 4.97 4.79 4.29 4.31 30.09 29.74 789 26.34 459 251 184 111 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 Page 6
3Q17 Highlights Highlights Palm Oil Market Updates Financial Performance GGC Going Forward FATTY ALCOHOLS BUSINESS UNIT GGC’s FA Operational Performance CPKO (MPOB) : USD/Ton Natural Fatty Alcohols regained Competitiveness vs. Synthetic ones Plant Utilization Rate 1,398 1,230 1,224 Crude Oil Price (WTI) : USD/BBL 1,156 999 123% 113% 109% 108% 53 95% 48 48 45 43 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 FA (ICIS) : USD/Ton Sales Volume (Tons) Ethylene Price (USGC) : USD/Ton 72,092 79,107 727 703 704 712 1,949 1,828 661 1,783 1,820 1,685 21,046 27,643 31,574 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 Synthetic FA (C1215) Price : USD/Ton FA Market P2F : USD/Ton Adjusted EBITDA (MB) Natural Mid Cut FA (C1214) Price : USD/Ton 901 476 584 2,657 2,440 481 2,205 244 433 1,685 1,852 96 209 149 1,828 1,949 1,820 1,783 1,576 -11 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 3Q16 2Q17 3Q17 9M16 9M17 Page 7
Projects in the pipeline Highlights Palm Oil Market Updates 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 Kernel Nut Extraction 90 KTA Feed Intake 2017 2018 2019 2020 2021 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 7,615 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 : 3Q/18 Scheduled COD 4Q/17 4Q/18 Targeted : 2Q/19 Targeted : 4Q/19 4Q/20 Page 8 BOD 3Q’18 – Apr’ Jan’ Q’ –
On Schedule - Project Construction Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Kernel Nut Extraction Plant Methyl Ester Plant 2 Page 9
Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward
Q4 Highlights of Palm Oil & Oleochemicals Market Highlights Palm Oil Market Updates Financial Performance GGC Going Forward ME Chain ME Price & Spread ME: Spread ME CPO THB/KG • ME demand is expected to be better than last quarter 50.0 However, demand in Oct’17 was still low due to rain and 42.39 43.45 38.84 39.54 flood situation in many areas 37.60 40.0 Demand is expected to ramp up again in travelling season 34.38 33.90 34.18 33.55 30.14 30.78 during Nov’17 - Dec’17 30.45 29.84 29.58 25.84 30.0 25.16 CPO: 22.43 21.59 • Q4, Palm oil production will decrease with seasonal trends • 20.0 National CPO stock Aug’17 : 426,591 T Sep’17 : 466,080 T 10.0 5.27 4.95 4.79 4.95 5.08 4.29 4.67 3.88 3.88 0.0 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Oct'17 2017 (F) FA Chain FA Price & Spread FA: Spread FA CPKO • USD/T FA demand is healthy because HPC producers are preparing to 2,500 2,243 stock and produce products for coming Christmas & New Year 2,041 1,983 festival 1,737 1,828 1,783 1,820 1,806 2,000 • FA price is expected to increase follow CPKO price and high 1,265 1,398 1,505 1,516 1,490 demand 1,332 1,500 CPKO: 1,156 1,119 1,027 999 • CPKO price increase due to lower production (seasonal trends) 1,000 • Demand is expected to pick up ahead of long holiday at the end of 584 the year. 464 443 424 433 500 257 219 177 149 0 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Oct'17 2017 (F) Page 11
Agenda Highlights Palm Oil Market Update Financial Performance GGC Going Forward
Consolidated Financial Performance Highlights Palm Oil Market Updates Financial Performance GGC Going Forward EBITDA & Adjusted EBITDA* (MB) / Sales Revenue (MB) Adjusted EBITDA Margin* (%) 14,253 13.7% 13,080 9.5% 6.8% 6.8% 6.1% 5,431 4,080 1,360 5,180 4,826 3,901 9,000 8,822 1,903 1,192 1,923 1,307 3,277 2,903 2,593 3Q16 2Q17 3Q17 9M16 9M17 449 885 901 ME Business Unit FA Business Unit 96 751 660 Net Profit (MB) & Net Profit Margin (%) 453 355 349 476 743 789 5.2% 6.1% 1.9% 1.5% 239 1.1% 228 211 244 160 459 109 163 298 188 251 795 184 102 111 65 -11 204 270 3Q16 2Q17 3Q17 9M16 9M17 71 55 ME EBITDA ME Adjusted EBITDA FA EBITDA FA Adjusted EBITDA Consolidated Adjusted EBITDA Margin 3Q16 2Q17 3Q17 9M16 9M17 Page 13
Financial Position Highlights Palm Oil Market Updates Financial Performance GGC Going Forward Statements of Financial Position Key Financial Ratios Million Baht Other Liabilities Cash and Cash Equivalent Net IBD/EBITDA Interest Bearing Debt ROE ROA Net IBD/Equity 2.4 Account Receivable, 2.2 13.2 Inventory, and other 1.9 11.0 10.1 1.8 Current Assets 1.0 5.8 10.7 Shareholders’ Equities 4.4 8.7 0.3 0.3 7.3 PP&E 0.2 0.2 0.2 4.4 3.2 Non-current Assets 30 Sep 1631 Dec 1631 Mar 1730 Jun 1730 Sep 17 30 Sep 1631 Dec 1631 Mar 1730 Jun 1730 Sep 17 September 30, 2017 December 31, 2016 Baht 11,631 million Baht 14,501 million Repayment Plan Cash Flows Million Baht Million Baht 2,575 1,745 2,400 1,837 765 1,212 935 567 528 528 441 (2,303) * 338 280 (2,292) 231 Beginning Operating CAPEX & Financing Ending Cash Cash Flows Investment Cash 2017 2018 2019 2020 2021 2022 *cash from IPO was partially invested as current investment of 1,800 MB Page 14
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