SELIC CORP OPPORTUNITY DAY QUARTER 3/2017 DATE: November 10, 2017 - PowerPoint PPT Presentation

SELIC CORP OPPORTUNITY DAY QUARTER 3/2017 DATE: November 10, 2017 Selic Corp Public Company Limited

Disclaimers • This Presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this Presentation. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. Thes e statement can be identified by the use of forward- looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words. • The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be, relied on as promise or representation of the Company as to the future.

AGENDA Company Overview Financial Performance Business Strategy Q & A

Key Milestones Selic Industry 2 product Invest and i. Successfully Selic established launched : progressing on launched HMPUR Transformation Water Based Innovation with product, the only and Hot Melt R&D lab and production in Chemists Thailand ii. Listed in MAI 2524 2548 255 0 255 9 25 60 1981 2005 2007 2016 2017

Company Vision & Mission มุ่งสู่การเป ็ นผู้น าใน Adhesive To be a global leader in Technologies ครบวงจรระดับโลก vision adhesive technologies with ด้วยนวัตกรรมที่ล ้าสมัย creative innovation นวัตกรรมที่สมบูรณ์แบบเพื่อทุก Comprehensive innovation to mission คุณภาพชีวิตอย่างยั่งยืน improve your quality of life

We provide solutions for adhesive, our offer includes customized products and services that match our customers’ needs.

We Breath Innovation, Never Stop Innovating Innovation is embedded in our work, it is who we are • Our innovation lab considered the best Adhesive laboratory in ASEAN • Investment of R&D / innovation 3-5% of sales revenue • 23 chemists working in R&D

Adhesive Technologies Hot Contact Water HM PUR Cement Based Melt Solvent based Water based Hot melt PU Reactive hot melt 8

Adhesive Technologies Hot Contact Water HM Cement Based Melt PUR Solvent based What it is Industry Applications Contact cements or solvent-based Leather adhesives that can be applied by Footwear spraying, rolling, extruding and/or Automotive accessories brushing. It works very well on Construction substrates that are difficult to bond Furniture with normal water based adhesives. Wooden works 9

Adhesive Technologies Hot Contact Water HM Cement Based Melt PUR Water based What it is Industry Applications Water based adhesive are made with Food & beverages natural and synthetic materials. It Toilet paper offers high temperature stability, high Consumer products adhesion strength, fixed and Packaging consistent product properties and Envelope better ageing stability as well as environmentally friendly. 10

Adhesive Technologies Hot Contact Water HM Cement Based Melt PUR Hot Melt What it is Industry Applications Thermoplastic hot melt adhesives or Food and beverages ‘hot glues’ are engineered to provide Automotive convenience and high performance for Packaging modern users. Book binding Printing 11

Our customers in various industries across 27 countries Food & beverage Consumer products Printing Furniture Construction Automotive Footwear Etc.

AGENDA Company Overview Financial Performance Business Strategy Q & A

Sales Revenues continues to grow Indicates strong demand of adhesive from the market both domestic and international Y on Y Growth Y on Y Growth + 16.90 MB + 20.03 MB + 4.05% + 15.03% 434.32 153.29 9M 3M 417.42 133.26 Q1-3/2016 Q1-3/2017 Q3/2016 Q3/2017 Total Sales Unit : MB Consolidated FS

Sales growth driven by strong growth of export Year on year international sales growth follow- through company’s international direction + 0.46 MB + 16.44 MB DOMESTIC INTERNATIONAL + 0.19% + 9.69% 248.3 186.02 247.84 169.58 Q1-3/2016 Q1-3/2017 Q1-3/2016 Q1-3/2017 Sales Rev (Unit : MB) 9M Consolidated FS

Adhesive sales grows as planned Q1-3/2017 (9M) Adhesive Sales (Million Baht) 429.26 +3.88% YOY 429.26 Million Baht (+16.04 MB) 413.22 Q1-3/2016 Q1-3/2017

Adhesive Sales continues to grow Solvent Water Based Hot Melt -4.20% YOY +38.09% YOY +25.83% YOY (-11.11 MB) (+8.01 MB) (+28.07 MB) 264.4 29.04 136.73 21.03 108.66 253.29 Q1-3/2016 Q1-3/2017 Q1-3/2016 Q1-3/2017 Q1-3/2016 Q1-3/2017 Unit : Million Baht Unit : Million Baht Unit : Million Baht Company only 9 months

Profitability Impact of GP resulted from increase of cost for raw materials and stronger Thai Baht Investment in Sales activities including human resources cause the foreseeable drop of net profit. Gross Profit Margin Net Profit Margin (exclude other revenue) 29.93% 29.66% 26.76% 6.96% 6.65% 3.52% 2016 Q1-3/2016 Q1-3/2017 2016 Q1-3/2016 Q1-3/2017 Consolidated FS 9 months

AGENDA Company Overview Financial Performance Business Strategy Q & A

Overall Direction Focused markets Cambodia Vietnam Myanmar Australia *Source : The World Bank : An Update on Vietnam’s GDP Growth Forecast 6.9 6.3 6.9 - Recent Economic Developments, July 2017 2017* Adhesive demand projection 2020 : Hot melt % CAGR 6.98 (volume) , 7.42 (value) Hot melt technology Industry sectors Applications 1. Hot melt High Performance Packaging + labelling 2. Hot melt : Pressure Sensitive Automotive parts 3. Hot melt : PUR Furniture Clear box Source : Markets and Market Strategy Analysis

Industry Segment Focus Implementing segment market strategy to build focus and expertise to accelerate sales Projected 2020 market size 15,768 M 10,531 M 3,903 M 8,481 M 7,732 M 1,724 M (million USD) CAGR % 3.4 4.91 3.07 5.58 5.69 4.61 (2015 – 2020) Packaging & Construction Furniture & Electronic Automotive Leather & labelling woodworking parts Footwear Source : ADHESIVES MARKET SIZE, BY APPLICATION, 2013 – 2020 ($MILLION), Market and Market Strategy Analysis

Team setup and actively go to market Investment in human capital utilize into new market development Market Exploratory Furniture & Construction woodworking Market survey Automotive Electronic Customer portfolio parts building

Customer Centric Internal transformation Customer Re-structure Vertical oriented team focused Building relationship through customer experience

Building brand visibility Digital channels 1. 2. % Click-through rate 4.91 4.45 4.43 4.11 3.76 Apr-17 May-17 Jun-17 Jul-17 Aug-17

Exhibition and Events Interpack 2017 May 4-10, 2017 : Dusseldorf, Germany

Exhibition and Events PROPAK ASIA 2017 June 14-17, 2017 : Bitec Bangkok Booth design : Digital Fabrication Structure to showcase the innovation of Selic Theme concept : Your Perfect Glue : offering based on customer requirements

Exhibition and Events PACK PRINT 2017 September 20-23, 2017 : Bitec Bangkok Packaging adhesive solution

Updates On Production Facility 1. Filling and packing Quarter 1, 2018 Colling belt Expected Trial installed installing Run 2. New machines November- December Quarter 1, 2018 Mixers Expected Trial installation Run

AGENDA Company Overview Financial Performance Business Strategy Q & A

Q & A

270 Liapkhlongphasicharoenfangtai Road, Phone : +662 807 3347 Website : www.seliccorp.com Nongkhaem, Bangkok 10160, THAILAND Email : explore@seliccorp.com Facebook : Selic.Thailand