The first half of 2019 Opportunity Day Presentation August 16 th , 2019
Content Company Overview Industry Info and Economic Situation IR Report & Investment Highlight The 2019 Performance Q&A
Company Overview and Strategy
Company Overview Business Unit Over 30 Leading producers Since 1994 - Top 3 in the world - Specialty Engineering Polymer & Rubber Specialty Commodity Chemicals & Polymer Intermediate Statements of Financial Position Performance Overview (Unit : MB.) Sales decreased in Q1/2019 Jun. 30, 2019 Dec. 31, 2018 1,900 Value -6 % (YoY) Quantity 6 % (YoY) 81 1,850 3 34 1,800 1,887 1,750 1,700 1,775 1,650 1,600 4 1/H2018 BU1 BU2 BU3 1H/2019
Performance Overview +6.43% Value (MB) QTY (Tons) 74 1,900 35,000 - 5.93% 951 81 1,850 34,000 +80% 3 1,077 1,800 34 33,000 +8. 1,750 - 8.% 32,000 +15% - 4% +5% 1,887 34,770 1,700 31,000 32,668 1,650 1,775 30,000 1,600 29,000 1,550 28,000 1,500 1H/2018 BU1 BU2 BU3 1/H2019 1/H2018 BU1 BU2 BU3 1H/2019 Sales Amount 1H-2019 Sales Quantity 1H-2019
Company Vision Company Mission Ethic Sustainable Doing business with ethics and no Build sustainable growth of profitability legal offense and revenue to be market leader Business Partner Employee Connect the best supplier and bridge advanced Develop knowledge skill and technologies for customer’s best value as expertise to staff as professional. business partner. Work closely with Financial to create a happy workplace Institute as business partner to success 6
Where we are in the value chain of Thai Petrochemical Industry Petrochemical and plastic producers Intermediate End users Upstream Downstream Compounders Polymer Compounders Monomer Olefin&Aromatic Converters producers producers Master batch Producers (MEG, VCM ) (PP, PE, PVC) producers
GC’s role and positioning in the market Leads the differentiation Economy of Scale to Suppliers S1 S2 S3 S4 Suppliers S5 Sn Logistic : Warehousing, small delivery, and repacking Sales & Marketing : Closely contact to end markets/customers Provided Technical Services : Troubleshooting / Product and Market Development Financing & structuring solution : Extending our expertise to customer C1 C3 C4 C5 C2 Cn Customers Economy of Scope to Customers
Free Float Overview As of April 18 th , 2019 % Shares in Minor Shareholders Total Shareholders 1,596 (Free float) 33.84% Rank Major Shareholders #Shares %Shares 1 Mr. Somchai Kulimakin 44,499,800 22.25% Mr. Sumruay Tichachol 2 27,125,000 13.56% Mr. Bhiya Jriyasetapong 3 26,125,000 13.06% 4 Ms. Nisaporn Sirijuntanan 25,780,430 12.86% Sub Total 123,530,230.0 61.77%
Company History 1994 - 1999 2000 - 2005 2006 - Current Create sustainable growth being the Start business with Diversify company portfolio best partner for solution and service commodity plastic from commodity to specialty in industrial raw material supply plastic 2010 2004 1996 2014 Distributing agent of Distributing agent of Distributing agent of SCG Plastics Co., ltd. Distributing agent of ExxonMobil and Rio Trinseo (Styron) and and Eastman Chemical , which was the start TechnoGreen and Tinto Mineral Asia BST Elastomers Co., Ltd. of specialty product distribution. 2008 UBE GROUP Distributing agent of DIC 1997 2015 Exxon Product : PE PP Distributing agent of 2006 Service water DuPont Performance Distributing agent 2009 cooling Polymers and of Nanocor Inc. Exxon Product : system solutions Chi Mei Vistamaxx 1994 1996 1998 2000 2004 2006 2008 2010 2012 2014 2015 2016 1999 2011 2016 1994 Distributing agent of Siam Distributing agent of Invest in PV solar GC was established by 5 Polystyrene (Thailand) rooftop project founders with initial Miliken Chemical, Imerys (23 years remaining registered capital of 2 MB. Co., ltd. and Cabot Plastic Meneral, Timcal Ltd. duration power Hong Kong Ltd. Exxon Product : ENABLE, purchase agreement 1998 EXCEED 2000 (PPA) with MEA.) Distributing agent of 2012 Distributing agent of AES : Santroprene OCV Reinforcement Co., Ltd Change Distributing agent of 2005 SCG to GCM . Exxon Product : Special Listed company and paid-up capital to 200 MB Compound More Product from Exxon : Butyl & Vistamaxx
Organization Chart Board of Director The Corporate Governance Nomination and Remuneration Audit Committee Committee Executive Committee Internal Audit Chief Executive Officer IR & Company Secretary Assistant to CEO Business Finance & New Business Research Sale & Marketing Logistics Support Accounting and Development & HR BU 1 Finance Warehouse New Business Market Research Development Development & Laboratory BU 2 Accounting Human resource and Transportati Administration on Business BU 3 IT & ERP Support
Our Business Unit BU2 SPECIALTY BU3 BU1 ENGINEERING POLYMER SPECIALTY COMMODITY POLYMER & RUBBER CHEMICALS & INTERMEDIATE • Polyolefins • Nylon, POM, PBT, TEEE, PCT, LCP, PC • Plastic Additives PE: HDPE, LDPE, LLDPE (C4,C8) • Black/White MB • Intermediate chemical PP: Homo, Block Copo, Random • PETG/PCTG, CA • Water and waste solutions PU • PS, HIPS, ABS, SAN, SBC • • Tie Layer Polymer • EVA for HMA, Hydrocarbon Resin • Specialty Polyolefins • PE Plastomer, PP Plastomer, TPO • TPVs, TPU • TPE, TPR, Reinforcement compound • Glass Fiber (Chop Strand, Long glass) • EPDM , BUTYL • BR, SBR • TALC, SILICA, CARBON BLACK • FLAME RETARDANT (ZB, ATO) 12
Industry Focus CONSUMERS PRODUCTS AUTOMOTIVE INDUSTRIAL - Flexible Film & Packaging - Interior Part - Electrical & Appliances - Rigid Packaging - Constructions - Exterior Part - Shoes - Under hood - Adhesives& Sealant - Medicals - Others 13
Customer Segment by Sale Percent of Value Agriculture, Agriculture, 2% 2% Automotive, Automotive, Petrochemical 19% 13% & Petrochemical & Intermediate, Intermediate, Construction, 12% 21% 1% Construction, 1% Consumer 1 st Half 2019 products & 1 st Half 2018 Household, 17% Consumer Packaging, products & Household, 41% 17% Packaging, 40% Electrical & Electronics, 5% Others, 0% Electrical & Electronics, Others, 0% 7% 1,890.39 MB. 1,775.47 MB. 14
Customer Segment by Sale Percent of Quantity Agriculture, Agriculture, 2% 3% Automotive, Automotive, 12% Petrochemical & Petrochemical & 14% Construction, Intermediate, Intermediate, 12% 12% 1% Construction, 1% Consumer Consumer products & 1 st Half 2019 products & 1 st Half 2018 Household, Household, 17% 16% Packaging, Electrical & Electrical & Packaging, 50% 50% Electronics, 5% Electronics, 4% Others, 0% Others, 0% 32,668 Tons. 34,770 Tons. 15
Company Strategy in 2019 : VALUE Value Aligned creation thru Lean investment Innovation and Utilized for future Differentiation management sustainable customer thru Efficiency Efficiency growth base and and Effectiveness cumulate on Cost Big Data Management 16
GC’s Strategy 1.Boost up market Share by keeping retention customers, create new customers and reactivate inactive customers also utilize our customer database 2.Looking for new business development and filling in product portfolio to wider product range in order to confirm our one stop shopping service such as additive and/or chemical including plastic polymer 3.Investing in our own R&D for product creation to strength our own brand “GC/GIC” 4.Catch up technology fast moving, innovation and disruption 5.Efficiency on cost and working capital management
COMPETITOR BENCHMARK
COMPETITORS FINANCIAL PERFORMANCE DATA 2018 17.54% 28.32% -4.90% -1.80% 5.33% -6.29% -1.70% 5.48% 2.05% -0.63% -2.02% -5.51% 5.18% 0.36% -4.11% -14.49% -23.29% -34.95% -35.80% 4,871 sales growth Profit growth 3,660 3,211 -288.74% 2,828 2,712 2,331 2,424 2,079 820 667 263 350 67 136 36 56 106 54 96 49 -2 19 86 11 50 16 8 21 19 7 GC A B C D E F G H BENCHMARK Sales (MB.) Gross Profit (MB.) Net Profit (MB.) Remark: Sales growth (%) calculate by sales in 2017 and 2018
Economic Outlook
World Economic 𝟑 𝒐𝒆 Quarter 2019 The global economy was expected to grow at slower rate mainly due to escalated trade tensions between the U.S. and China, causing a decline in global trade volume and investor confidence. USA -Uncertainty of trade war from USA/China. -Low inflation continually. -Deceleration of economic growth. -The forecast of policy rate reducing by FED. China -The lowest of GDP growth rate in Eurozone the past of thirty years as 6.2%. -High risk of Debt in Italy. -The increase of domestic retail, -Tensions rising by trade and Brexit. manufacturing and industrial sectors. -The decrease of import and export Japanese cause by trade war and slowly -Deceleration of economic growth. growth of world economy. -Decrease of Export and domestic production
Petrochemical Complex Source : Thailand Industry Outlook 2019 Petrochemical, Krungsri Research
Recommend
More recommend
