SELIC CORP OPPORTUNITY DAY QUARTER 3/2018 DATE: December 18, 2018 - PowerPoint PPT Presentation

SELIC CORP OPPORTUNITY DAY QUARTER 3/2018 DATE: December 18, 2018 Selic Corp Public Company Limited

ABOUT SELIC

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

Facts & Figures 38 23 4 3-5% ของรายได ้ ที่เป็น ปี แห่งประสบการณ์ นักเคมี และเทคนิคใน ห ้ องปฏิบัติการ และการ งบประมาณด ้ าน และความเชี่ยวชาญใน ทีมวิจัยและพัฒนา วิเคราะห์ นวัตกรรม อุตสาหกรรม 27 9,120 4 ตัน ก าลังการผลิต เทคโนโลยีกาวที่ผลิต ประเทศ ครอบคลุม ได ้ เอง ตลาด

Adhesive Technologies กาว solvent กาวน ้า กาว hot melt กาว hot melt PUR มีคุณลักษณะเป็นของแข็ง ใช ้ เป็นกาวที่อยู่ในสถานะ เป็นผลิตภัณฑ์กาว เป็นกาวในกลุ่ม hot melt แต่ งานผ่านความร ้อนเพื่อให ้ กาว ของเหลว ใช ้ สังเคราะห์และใช ้ ตัวท าละลาย น ้าเป็น ต่างกันที่คุณสมบัติคงทน โดย ละลายกลายเป็นของเหลวเมื่อ ประเภท Solvent ในกลุ่ม ตัวละลาย ท าให ้ กาวมี เมื่อเกิดการยึดติดแล ้ วจะไม่ เนื้อกาวเย็นลง จะยึดติดวัสดุ แปลงสภาพเหมาะกับงานที่ สภาพเป็นของเหลว ใช ้ ของน ้ามัน หรือทินเนอร์ 2 ชิ้นเข ้ าด ้ วยกัน ต ้ องการความทนทาน เป็นตัวท าละลาย งานง่าย

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

FINANCIAL INFORMATION

Revenue growth +2.74% for the 9-month period Slight decline of -1.5% observed for the quarter compared to previous year. +11.88MB +2.74% - 2.51 MB 446.20 -1.5% 153.29 150.78 434.32 9M 3M 417.42 133.26 Q1-3/2016 Q1-3/2017 Q1-3/2018 Q3/2016 Q3/2017 Q3/2018 (Unit : MB) Consolidated FS

Domestic sales recorded growth while export sales decline The decline in export sales is due to the political uncertainty in South Asia and South Africa regions. 88.06 85.16 68.14 62.72 Domestic International Q3/2017 Q3/2018 (Unit : MB) Consolidated FS

Hotmelt and water based adhesive grow according to plan and align with global market demand Solvent Hotmelt Water Based +16.7% YOY -7.38% YOY +24.0% YOY (+22.92 MB) (-19.01 MB) (+7.05 MB) 257.72 36.40 160.44 238.72 29.35 137.51 9M/2017 9M/2018 9M/2017 9M/2018 9M/2017 9M/2018 Unit: Million Baht Unit: Million Baht Unit: Million Baht

Profitability Gross profit margin decreases by 8.8% from the first 9 month period while net profit margin down to 1.07%. Gross Profit Margin Net Profit Margin ( exclude other revenue) 26.76% 25.84% 23.72% 3.52% 3.17% 1.07% 2017 Q1-3/2017 Q1-3/2018 2017 Q1-3/2017 Q1-3/2018 Consolidated FS

Q3/2018 Net Profit Net profit =0.04MB, decreased due to the Non-Recurring transaction cost of M&A amounted to 4.06 MB in Q3/2018 Net Profit Net Profit Margin Non-Recurring Cost Non-Recurring Cost 2.69% of Revenue 4.06MB 18.72 4.06 3.17% 1.93% 0.02% 2.96 0.04 2017 Q3/2017 Q3/2018 2017 Q3/2017 Q3/2018 Consolidated FS

PMC GROUP ACQUISITION

PMC Group FOUNDER 100.0% 100.0% PMC Label materials Pte Ltd. PMC Label materials Co., Ltd. (Singapore) (Thailand) PMCS PMCT Type of Business Manufacturer of self-adhesive labels Sales and distribution of PMC’s products in Singapore Address Khok Kham, Muang Samut Sakhon District, Loyang Industrial Estate #02-20, 30 Loyang Way, Samut Sakhon 74000 508769 Corporate Type Company Limited Private Company Limited Registration Date 20 April 2004 1 March 2004 Registered Capital THB 100,000,000 SGD 2

Self-Adhesive Label Production Process Composition of Self-Adhesive Label

Strong Market Presence 1 Rank one of Top 4 in Thailand Market 4000 15.0% 11.6% 9.8% 3000 10.0% 2000 Revenue Margin 0.3% 5.0% 3.6% 2.9% 1000 3041 2207 1031 772 836 486 0 0.0% Avery Dennison Thai KK Industry Oji Label PMC Label Lintec (Thailand) UPM Raflatac (Thailand) (Thailand) Materials Source: Department of Business Development

2 Stable Financial Performance Revenue EBITDA %EBITDA %NP 852 900 828 811 800 17.3% 700 15.0% 14.8% 600 11.7% 500 9.7% 9.6% 400 300 Net Profit was about 148 200 122 122 10% on average 100 0 2015 2016 2017 Combined FS

High Quality Standard and Compliance 3 • ISO:9001:2008 Certified for Quality Management System Certification from the United Kingdom Accreditation Service (UKAS) • Restriction of Hazardous Substances (ROHS) compliance

4 Good International Distribution Network >12 Countries Worldwide

Various type of Product Category 5 Product Common Prime Label Industrial Label Variable Variable Specialty Paper Films Films Imprintable Imprintable Thermal Transfer Direct Transfer Facestock Paper Film Film Paper or Film Paper of Film Paper of Film Type • Health & • Health & • Product ID • Product ID • Baggage Tags • Advertisement • Industrial • Logistic Tracking • Weighing Scale • Decoration Beauty Aids Beauty Aids • Food & • Food & • Retail Shelf • Security labels Labeling Label • Chemical Drum • Industrial Labeling • Ticketing Beverages Beverages Usage • Pharmaceutic • Consumer Label als packaging • Consumer packaging

Transaction Overview No. of shares % shareholding THB million Transaction PMCT 1,000,000 100% up to 945 Structure and PMCS 2 100% up to 105 Estimated Size Total up to 1,050 Company 99.97% 100.00% 100.00% Structure Post Transaction E.V.A. International Co., PMC Label Materials PMC Label Materials Ltd (EVA) Co., Ltd. (PMCT) Pte, Ltd. (PMCS)

Transaction Overview October November December January 2019 BOD resolution Transaction 19 Share Purchase Timeline SELIC’s EGM 14 4 Transaction complete • The Company will use cash on hand and operating cash flow of Baht 150-200 Sources of million, and a long term loan from a financial institution amounting up to Baht Fund 900 million (this loan has already been approved by the financial institution), as approved by the Board of Directors.

Benefits & Value Creation Opportunities Increase Market Operations Revenues and Expansion and Synergy Profits Coverage

Benefits & Value Creation Opportunities Increase revenues and profits 2017 REVENUE : 2017 EBITDA : combined 1,440.7 Million Baht combined 194.62 Million Baht THB million THB million 1440.7 1500 300 194.62 1000 200 845.7 147.6 595 500 100 47.02 0 0 SELIC PMC Combined SELIC PMC Combined

Benefits & Value Creation Opportunities Increase revenues and profits Combined P&L Selic and PMC FY16 FY17 9M18 Baht in thousands Audited Audited Unaudited Revenue 1,367,231.40 1,437,633.46 1,094,260.92 Cost of sales (1,007,819.33) (1,071,740.35) (816,761.67) Gross profit 359,412.07 365,893.11 277,498.79 - - - Selling expenses (27,218.16) (30,117.76) (19,974.77) Administrative expenses (186,414.79) (191,299.78) (149,796.07) Operating profit 145,779.12 144,475.57 107,727.95 Other income 5,234.98 3,563.48 4,231.88 Gain on forex 3,025.00 5,783.00 1,286.04 EBIT 154,039.10 153,822.05 113,245.87 Finance cost (11,366.44) (6,823.03) (3,614.18) EBT 142,672.66 146,999.02 109,631.69 Income tax (24,920.95) (28,859.47) (19,877.72) Net income 117,751.72 118,139.55 89,753.97

Benefits & Value Creation Opportunities Market Expansion & Coverage Adhesive Value Chain Analysis Opportunity to expand vertically into Converted Product Producer. This offer new channels of distribution for SELIC

Benefits & Value Creation Opportunities Market Expansion & Coverage Product extension in label market • Glue applied label • Self adhesive label

Benefits & Value Creation Opportunities Operations Synergy Overseas Footprint Expansion Technology Synergy Operations Synergy • • Leverage strong oversea Strong R&D focused from • network to expand export SELIC Potential reduction on • market for PMC Adhesive for specialty inventory and raw • Potential of regional office labels such as removable material categorization • in Singapore for MNC stickers, deep freeze Cost and expertise sharing companies resistant labels