Analyst Conference Q4/12

Wednesday, Jan 30, 2013

AGENDA
slide 2

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Revenue from Sales

Increased 14% y-o-y, from volume growth in all businesses, but
decreased 4% q-o-q, due to seasonal effects.

slide 3

+14% y-o-y
-4% q-o-q

MB
120,000
100,000

92,478

93,876

Q1/11

Q2/11

94,281

102,884 100,541 104,286 99,890

87,944

80,000
60,000
40,000
20,000
0
Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

EBITDA
Increased 47% y-o-y, with healthy growths in the non-chemicals
businesses, and 2% q-o-q as a result of dividend contribution from
SCG Investment.

MB

15,000

slide 4

EBITDA
13,519

698

12,000

14,161

+47% y-o-y
12,178

3,103

9,000

10,589

10,301

1,080

466

11,520

11,717

+2% q-o-q

139

255

Dividend from
Associates

11,382

11,462

EBITDA from
Operations

2,686

7,984

12,821

534

11,058
9,509

6,000

9,835

9,492

+54% y-o-y

7,450

3,000

+1% q-o-q

0
Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

NOTE: EBITDA = EBITDA from Operations + Dividend from Associates

Q4/12

Equity Income
The chemicals business incurred negative equity income of
305 MB from its associates in Q4/12, compared to the positive equity
income of 1,264 MB for the non-chemicals associates.

slide 5

MB
3,500
3,000

3,041

Non-Chemicals
Chemicals

2,500
1,940

2,000
2,595

1,672

1,500

959

1,465

1,000

1,435

500
0
-500

344
446

237

475

121

-309

567
144
423

1,264
-305

Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

Profit for the Period

Dividend income from SCG Investment, and the recovery from last
years flood contributed to the earnings growth of 116% y-o-y.

slide 6

MB
+116% y-o-y

12,000

+8% q-o-q

10,000

9,207
7,496

8,000

7,377
6,416

5,972

6,000

6,912

4,280

4,000

3,201

2,000
0
Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

AGENDA
slide 7

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Revenue from Sales

The chemicals business accounted for 48% of FY2012 sales, while
construction related businesses was another 38%.

FY2011
368,579 MB

slide 8

FY2012
407,601 MB (+11% y-o-y)

Profit for the Period

The construction related businesses accounted for 49% of the
FY2012 earnings, compared to 33% in FY2011.

FY2011
27,281 MB

slide 9

FY2012
23,580 MB (-14% y-o-y)

SCG Investments earnings are from:

1) dividend income (stake of <20%)
*Chemicals Equity Income dropped by 6,091 MB to -606 MB in FY 2012.
2) equity income (stake of 20% to 50%) Chemical sub. was 14% of FY2012 Profit for the period.

Segments: Export Destinations in FY2012

ASEAN accounted for 39% of the Thai exports.
slide 10

Revenue from Sales

Export Destinations
N.America 1%
S.America2%EU2%
M/E 3%
E.Europe 4%

Global
Export 18%
ASEAN
Export 10%

Oceania 5%
Africa 6%
S.Asia
9%
N.Asia
11%

ASEAN Operations
Export Destinations

- subsidiaries in ASEAN.
- from Thai subsidiaries

ASEAN
39%

China/HK
18%

ASEAN Drivers in FY2012

Indonesia, Vietnam, and Myanmar accounted for 61% of the exports
into the ASEAN region.

Sales from ASEAN Operations

MB

Export to ASEAN (from Thailand)

+39% y-o-y

35,000

31,200

30,000
25,000

22,500
19,000
16,700

20,000
15,000
10,000

slide 11

13,400

Malaysia
10%

14,600

Cambodia
10%
Vietnam
15%

7,700

5,000
0
2006 2007 2008 2009 2010 2011 2012
Percentage of total sales from ASEAN Operations:
3%

Laos
Singapore 6%
6%
Philippines
7%

5%

5%

5%

7%

7%

8%

Indonesia
31%

Myanmar
15%

FY2012 Revenue from Sales & EBITDA

Sales grew 11% y-o-y from higher product prices and volume growth,
while EBITDA dropped 1% y-o-y as a result of the chemicals trough.

Revenue from sales

FY2011

400,000
300,000

EBITDA

FY2012

MB

slide 12

FY2011

FY2012

MB
407,601
368,579

50,000
40,000

46,253

45,716

EBITDA

5,415

3,545

Dividend

40,838

42,171

EBITDA from
Operations

30,000
200,000

20,000

100,000

10,000

0
EBITDA Margin:
11%

10%

FY2012 Profitability & CAPEX

Earnings were down 14% y-o-y, due to the chemicals trough.
slide 13

Profit for the Period

FY2011

CAPEX & Investments

FY2012

FY2011

FY2012

MB

MB

50,000

50,000

40,000

40,000

47,023

32,053

30,000

27,281

30,000
23,580

20,000

20,000

10,000

10,000

EPS:

22.7

19.7

Note:
- CAPEX includes debottlenecking, expansions, and major turnaround.
- Investments are acquisitions and purchase of shares.

EBITDA on Assets, and EBITDA Margin

slide 14

Percent (%)

EBITDA on Assets

35
30

29

27

25

26

21
20
15

11

14

16

16

17

20

18

14

15

13

12

12

10
5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

EBITDA Margin (%):

24

23

27

23

22

22

23

26

22

19

16

EBITDA on Assets = EBITDA / Consolidated Assets

EBITDA margin
= EBITDA from Operations / Consolidated Sales

14

18

14

11

10

AGENDA
slide 15

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Net Debt
Increased 24.9 Billion Baht from Q4/11, compared to the cash outflow of
60.8 Billion Baht for CAPEX & Investments of 47 Billion Baht and the
dividend payout of 13.8 Billion Baht (H2/11 & H1/12).

slide 16

Billion Baht
300
250
200
150
100

246.7

189.5
179.9 175.8
148.4
126.3
120.5 122.0
114.9
100.6 100.5103.1 99.9

137.0
112.1
83.6

50
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CAPEX and Investments

Amounted to 47,023 MB in FY2012, primarily from the increased
stake in TPC, and the acquisitions of the RMC business (Indonesia),
Siam Global House (Thailand).

slide 17

Billion Baht

70
61.3

60
50

47.0
42.4

40
34.5

30
19.1

20
10

10.3

10.0
3.5

8.5

11.9

23.6

32.0

27.2
18.4

14.0

5.7

0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

- CAPEX includes debottlenecking, expansion projects, and major turnaround.

- Investments are acquisitions and purchase of shares.

Finance Costs
Amounted to 6,321 MB in 2012, with interest cost of 4.3% at the end
of Q4/12.

slide 18

MB

16,000

15,006
14,030
12,995

14,000

11,487

12,000
10,000 9,216
8,000
6,000

10,038
8,101
5,876

4,762 5,169

6,089 5,649
5,273

6,048 6,321
4,670

4,000
2,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

NOTE: Interest & financial charges include FX gain/loss transactions.

Net Debt on EBITDA

not including the investments of approximately 35,000 MB which does
not contribute to additional EBITDA, such as Global House and Chandra
Asri (both associates) and TPC (already consolidated), the net debt on
EBITDA would have registered 2.2 x (times).

slide 19

Times (x)

Net Debt to Equity = 0.9 X

Interest Coverage Ratio

slide 20

Times (x)

Note: Interest Coverage Ratio = EBITDA / Interest Expense

Financial Highlights
slide 21

FY2012 dividend of 11.0 Bt or 13,200 MB (56% of earnings), following

the approval of the H2/12 dividend of 6.5 Bt (59% of H2/12 earnings),
and is payable on Apr 25/13.
Issuance of a 25 Billion Baht (4-year, 4.15% fixed) debenture to
replace the 20 Billion Baht tranche (4-year, 5.35% fixed) that was due
on Nov 1/12.
New 7-year debenture issued on Oct 12/12, totaling 6.5 Billion Baht
with 4.4% fixed coupon, was fully subscribed primarily by institutional
holders.
Cash & Cash Under Management of 38,533 MB at the end of Q4/12.
Net Working Capital was relatively stable q-o-q at 50,394 MB, with
Inventory to Sales at 44 days.

Financial Outlook
slide 22

Continued solid financial position.

The existing cash-on-hand and expected EBITDA will continue
to be utilized towards expansion efforts in the ASEAN region.
FY2013 CAPEX and investments is estimated be at the range
of 40,000 50,000 MB.
The Apr 1/13 matured tranche of 20,000 MB (5.15% coupon)
will be refinance by a 25,000 MB issuance (4 year tenure)
whereby the coupon will be finalized at a later date.

HVA Progress
slide 23

AGENDA
slide 24

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

SCGs average domestic cement price

Prices moved upwards q-o-q to the 1,800-1,850 Bt/ton range.
Total Q4/12 domestic demand grew 17% y-o-y but dropped
slightly q-o-q, resulting in the 12% growth for FY2012.

slide 25

Avg Domestic Price of Grey Cement (Net ex-factory)

Baht/Ton
2,500

2,000

1,500

1,000

Sales Mix FY2012

Bagged Mixed Cement
Masonry Cement
Bulk Portland
Bagged Portland

500

Q1

Q2

Q3

2008

Q4

Q1

Q2

Q3

2009

Q4

Q1

Q2

Q3

2010

Q4

Q1

Q2

Q3

2011

Q4

Q1

Q2

28%
5%
56%
11%
Q3

2012

Q4

Export sales volume

Export volume of FY2012 decreased as a result of the rapid
growth in domestic demand.

slide 26

Export Volume and Avg FOB Prices

MT

4.0

3.0

44

44

47

48

49

51

52

55

60.0

1.0

1.8
0.6
0.2
1.1

1.7
0.5
0.1
1.1

USD/Ton

60.0

12.0
51.7

50.0
45.4

40.0
2.0

MT

1.9

1.7
0.5
0.2
1.1

1.2
0.4
0.1
0.7

0.7
0.2
1.1

30.0
1.4

1.4

0.6
0.1

0.6

1.0

0.1

0.7

0.6

0.5
0.1
0.4

0.0

Bulk Cement

45.0

6.5
6.0

20.0
3.0

0.0

Clinker

5.7

1.9
0.6

10.0

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/112 Q3/12 Q4/12

Bagged Cement

9.0

2.4
0.6

4.0

30.0

15.0

2.7
0.0

0.0
FY2011

FY2012

Revenue from Sales in Q4/12

increased 36% y-o-y from higher domestic sales volume and
consolidation of the Indonesian RMC business.
slide 27
Revenue from Sales

Revenue from Sales

Q4/12:

MB
21,000

15,000

-3% q-o-q

MB
17,696 17,161
16,610
16,091
10%
10%

18,000

14,241 13,659 13,768

10%

12,000
28%

11%
29%

9,000

11%

10%

12,581
11%

32%

11%

30%

36%

38%

41%

30%

+36% y-o-y

67,558

70,000

10%

60,000

54,249

50,000

10%

40,000

30%

37%

30,000
6,000
62%
3,000

60%

57%

60%
59%

53%

52%

49%

20,000

60%

53%

FY2011

FY2012

10,000

0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Other
17%

RMC & Precast

Grey Cement

17%
17%
15%
19%
14%
13%
Export Sales, as a % of Revenue from Sales

11%

EBITDA and Profit for the period

The y-o-y growths are from higher domestic cement volume and the
healthy RMC businesses, but dropped q-o-q due to plant
maintenance and higher electricity cost.
EBITDA & Profit for the period
EBITDA:

MB

slide 28

EBITDA
MB

+42% y-o-y

15,000

-12% q-o-q

10,000

14,824
12,781

5,000
4,000

3,386

3,193
2,519

2,447
1,990

2,000

3,476

3,476

3,000
2,241

3,957

3,915

3,755

2,453

FY2011

2,119

2,072

1,848

5,000

MB
1,209

Profit for the period:

1,000

FY2012

Profit for the period

15,000

+75% y-o-y
-14% q-o-q

7,288

0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

EBITDA 26
Margin (%)

25

23

19
22

24
23

21
24

22

9,163

10,000

5,000

20
FY2011

FY2012

Outlook
slide 29

Continued strong domestic demand from all sectors, thanks to

positive economic outlook.
Residential sector, especially upcountry, will benefit from new
construction projects and better household income.
Infrastructure continues to grow from the governments budget
allocation towards implementation of flood protection
programs.
Commercial sector outlook is positive as a result of new
investments, particularly in upcountry.
Export volume is anticipated to decrease further as a result of
continued domestic demand growth.

AGENDA
slide 30

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Product Segmentation
slide 31

Ceramic Tile
Jan-Dec
47%

Roof
26%

2012
Board &Wood sub
16%

Others
11%

Insulation
Landscape
Lightweight concrete
Others

Ceramic Tile
Domestic sale volume dropped on seasonal factor but supported
by increased demand in regional market

slide 32

Sale volume & prices for all ASEAN subsidiaries.

Baht/sqm.

Million SQM.
70

160

Average Price

140

60
+18% y-o-y
50
40
30

-1% q-o-q

Sale Volume
25

25

33
28

35

33

32

120
100
80

27
60

20

40

10

20

0
Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

Revenue from Sales

Increased 21% y-o-y in FY2012, as a result of the growth in the
residential markets (renovations and new homes), in addition to the
consolidation of ceramics plants in the Philippines.

slide 33

Growth of Revenue from Sales (y-o-y)

MB

25%
19%

15%
9%

18%

11%

10%

41,340

23%
34,171

25,000

+23% y-o-y
20,000
15,000
10,000

-6% q-o-q

Revenue from Sales

8,690

8,554

8,913

Q1/11

Q2/11

Q3/11

10%

9%

10,315 10,665 10,502 9,858

8,014

5,000
0

Export Ratio:
10%

Q4/11

9%

Q1/12

Q2/12

Q3/12

Q4/12

9%

9%

9%

9%

FY2011

9%

FY2012

9%

EBITDA & Profit for the period

In FY2012, EBITDA and Net Profit increased 32% y-o-y and 100% y-o-y,
respectively, primarily from the Thai domestic construction activities.
However, Q4/12 performance dropped q-o-q as a result of the seasonal
factors.

slide 34

EBITDA
+71% y-o-y

MB
1,800

1,917

EBITDA

-15% q-o-q

1,743

5,060

1,620
1,415

1,432

1,404

1,381

1,400

FY2011
809

1,000

893

Profit for the period

600

524

527

6,661

678

FY2012

Profit for the Period

768

610

507

2,949
-21% q-o-q
1,476

200

-82

-200
Q1/11

Q2/11

Q3/11

Q4/11

EBITDA Margin*:
16%
16%

15%

10%

Q1/12

19%

Q2/12

16%

* EBITDA margin = EBITDA from Operations / Consolidated Sales

Q3/12

15%

Q4/12

13%

FY2011

FY2012

14%

16%

Updates and Outlook

slide 35

Investment Updates
Q1/13 startup of the newly completed 2,900 MB fiber-cement plant in
Saraburi.
The condition precedent of Prime Group (Vietnamese ceramics
manufacturer) is expected to be completed in Q1/13.
Outlook
Q1/13 is expected to see strong seasonal demand in the Thai market.
Continued demand growth from the residential market in up-country,
benefiting from improved farming income.
Demand recovery of the housing sector (horizontal) in Bangkok, while
demand from the condominium sector (vertical) continues to be
healthy.
Expected cost pressures, especially labor and electricity.

AGENDA
slide 36

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Q4/12 Market Insight

.better margins despite seasonal year-end demand softness.
slide 37

Market Insight
With anticipated demand for new year and Lunar new year, naphtha prices
moved up 3% q-o-q to $944/ton, while crude oil prices remained stable at
$111/bbl.
Ethylene and HDPE prices also jumped 7% q-o-q to $1,286/ton and 4% q-o-q
to $1,393/ton, respectively. PP prices also increased 1% q-o-q to $1,463/ton.
HDPE margins bounced up 5% q-o-q to $449/ton, despite the year-end
destocking season. PP margin remained quite flat q-o-q at $519/ton.
Benzene margins surged 55% q-o-q from strong demand in China.
MMA price recovered as producers had been cutting operating rates.
However, BD prices were still in the downward trend due to slow demand.
PVC price improved 5% q-o-q to $963/ton due to announcement of Petronas
closing down vinyl business, but margin slightly decreased by 2% to
$452/ton from higher EDC price.

HDPE Naphtha Price Gap

HDPE margins moved up to $449/ton from better HDPE prices
q-o-q, despite seasonal year-end softness.

slide 38

HDPE-N Gap

$/ton

+2% y-o-y

1,750

+5% q-o-q

1,500

HDPE
Ethylene

1,250
1,000

Naphtha

750
500
250
0
Q1/11
HD-Naphtha
Spread ($/T)

456

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

396

443

441

375

494

428

449

434

Note: Prices refer to SEA regional prices

437

Q1/13
to date
487

PP Naphtha Price Gap

PP margins remained stable above the $500/ton level, with a
good sign of higher margins in Q1/13.

slide 39

PP-N Gap

$/ton

- 3% y-o-y

2,000

- 2% q-o-q

1,750
PP

1,500
Propylene

1,250
Naphtha

1,000
750
500
250
0
Q1/11
PP-Naphtha
Spread ($/ton)

717

Q2/11

Q3/11

691

650
649

Note: Prices refer to SEA regional prices

Q4/11
535

Q1/12
408

Q2/12
551
502

Q3/12

Q4/12

529

519

Q1/13
to date
562

PVC
PVC margins remain healthy, despite the hike of EDC and
ethylene prices.
$/ton

slide 40

PVC Gap

+11% y-o-y

1,750

- 2% q-o-q

1,500
Ethylene

1,250
1,000

PVC
VCM

750
500

EDC

250
0
Q1/11
PVC-EDC/C2 323

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

437

444

406

424

518

463

452

Spread ($/ton)
Prices refer to FE regional prices

403

464

Q1/13
to date
426

Benzene & Toluene

BZ-N margins surged 55% q-o-q, due to strong demand from
China and tight supply in North America.

slide 41

Benzene Gap

$/ton
1,800

+396% y-o-y

1,600

+55% q-o-q
Benzene
Toluene

1,400
1,200
1,000

Naphtha

800
600
400
200
0
BZ-Naphtha
TL-Naphtha

Q1/11

Q2/11

224
111

137
116

BZ-Spread ($/ton)
TL Spread ($/ton)

Q3/11
148
208
148
169

Note: Prices refer to SEA regional prices

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

84
239

155
214

223
262

268
251

415
372

265
275

Q1/13
to date
468
404

Price Gaps of Associates

MMA-Naphtha: Improved margin from cuts in operating rates.
BD-Naphtha:
Squeezed, as demand has yet to pick up.
PTA-PX:
Continued depressed margins.
MMA-Naphtha $/ton
BD-Naphtha $/ton

slide 42

PTA-PX $/ton

3,500

400

3,000

350
BD-Naphtha

300

2,500

250

2,000

200
1,500
1,000

MMA-Naphtha

150

PTA-PX

100

500

50

0
Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12 Q4/12
to date

Polyolefins Sales Volume

volume dropped 10% q-o-q from seasonally slower demand
while FY2012 volume increased 6% with capacity ramp up.

slide 43

- 4% y-o-y
- 10%q-o-q

Ton

1,607,000

800,000

1,698,000

700,000
600,000
500,000
400,000

397,000 380,000 396,000

433,000 433,000

464,000
416,000

385,000

300,000
200,000
100,000
0
Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

FY2011

FY2012

PVC Sales Volume

PVC sales volume decreased 5% q-o-q, following the VCM plant
turnaround and seasonal year-end softness in demand.

slide 44

Stable y-o-y
- - 5% q-o-q

Ton
Thailand Production

250,000

695,000

27%

28%

73%

72%

FY2011

FY2012

Regional Production

200,000

185,000

150,000

27%

159,000

28%

172,000 169,000 172,000 175,000 178,000 170,000

26%

27%

27%

29%

30%

26%

100,000
50,000

685,000

73%

72%

74%

73%

73%

71%

70%

74%

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

Note: *Regional Sales = Sales volume from PVC operations in Vietnam and Indonesia

Revenue from Sales

the 5% increase of FY2012 revenue was attributed to the
increase in sales volume.

slide 45

+7% y-o-y
MB

- 5% q-o-q

100,000
Overseas Operations
90,000
Domestic Operations
80,000
70,000
60,000
52,900
52,051 49,249
48,404 49,495 48,841 46,189 3% 49,339
50,000
3%
3%
4%
4%
4%
4%
3%
40,000
30,000
96% 96% 97%
97% 97%
96%
96%
97%
20,000
10,000
0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

192,929
4%

96%

FY2011

203,539
3%

97%

FY2012

Note: * Overseas operations = Sales revenue from PVC operations in Vietnam and Indonesia

EBITDA
reduced 40% q-o-q as a result of lower seasonal sales volume,
and turnaround of the VCM plant (PVC operations).

slide 46

- 9% y-o-y
- 40% q-o-q

MB

14,394

12,000

Dividend

10,000

EBITDA

4,866

8,000

8,628

6,000

4,926

4,000

698

2,000

2,752

2,673

2,038

971
1,702

4,228

3,151

4,790
2,868
2,005

445
1,560

894

466
428

2,538
330

3,036

9,528

111

1,830

2,925

36
1,794

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

EBITDA
Margin

9%

4%

3%

3%

1%

1%

6%

5,477
FY2011 FY2012

4%

Note: EBITDA = EBITDA from Operations + Dividend from Associated Companies

5%

3%

Profit for the Period

the 76% decrease of FY2012 profit was as a result of the
chemicals trough and drop in equity income from associates.

slide 47

- 73% y-o-y

MB

- 92% q-o-q

10,000

11,190

Equity Income
Subsidiaries and Others

7,500
5,000

5,485
4,788
3,230

2,595

2,499

2,500

1,465
1,435
2,193

1,064

1,765

672

682
-10

1,240
476
764

2,690

2,270
144

-84
-921
-1,005

2,126

5,705
185
490
-305

3,296
-606

(2,500)

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

FY2011 FY2012

Outlook
slide 48

Increase in oil prices, following positive economic news in the US

and China, and naphtha should follow suit.
For polyolefins, prices tend to move up as turnaround plans in Middle
East will lead to tight supply in Q1/13, coupled with improved buying
activities after the Lunar New Year.
PP Compound demand continues to be robust from backlog order of
car production in Thailand.
MMA demand remains quite stable with flat margins q-o-q.
Healthy PVC demand from the construction industry. However, EDC
prices are expected to move up due to tight supply.
Continued challenges in the BD and PTA businesses.
Estimated 5 MTA of new ethylene capacity addition in FY2013, which
includes the late Q1/13 start up of the 1 MTA cracker in Singapore.

AGENDA
slide 49

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Packaging Paper
AOCC prices rise due to tighter supply from the US and higher
Chinese orders to meet year-end quotas, while Packaging Paper
prices maintained.
$/Ton

slide 50
Q4

Jan/13

600
Packaging Paper

505

510

235

230

505

505

495-515

220

215-235

Q4

Jan
2013

450

300

Wastepaper (AOCC)
190

150

0
Q1

Q2
2010

Note: regional prices

Q3

Q4

Q1

Q2
Q3
2011

Q4

Q1

Q2
Q3
2012

Packaging Paper:
Domestic sales volume rose 9% y-o-y, mainly due to market
recovery from flood in Q4/11. Total FY2012 increased 6%
y-o-y in both Thailand and regional operations.
000 tons

000 tons

500
450
400

428
93

431
103

437
97

350
300

49

52

420
100

442
102
52

57

460

460

450

+7% y-o-y 2,000

-2% q-o-q 1,800

111

109

53

62

102

1,600

1,715
393
(23%)

1,812
424
(23%)

1,400
66

1,200

62

250

220
(13%)

233
(13%)

1,000

200
150

slide 51

+9% y-o-y
285

275

283

258

288

296

289

282

800

-2% q-o-q 600

100

400

50

200

1,101
(65%)
(64%)

1,155
(67%)
(64%)

0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12
Regional Sales*
Thailand Export
Thailand Domestic

Note: *Sales Volume from Philippines and Vietnam

FY2011

FY2012

Printing & Writing Paper (Fibrous)

Long-fiber pulp prices increased owing to pulp producers supply
management and paper producers stock replenishment. Short-fiber
prices weakened slightly in anticipation of new pulp capacity in Brazil.

slide 52

$/Ton
Q4

Jan/13

830

820

805 - 825

630

650

640 - 660

630

620 610 630

1,200
P&W Paper
855

Long Fiber

900

690

Short Fiber
600

605

885

690

650

300
Q1

Q2
2010

Note: regional prices

Q3

Q4

Q1

Q2
Q3
2011

Q4

Q1

Q2
Q3
2012

Q4

Jan
2013

Printing & Writing Paper (Fibrous)

Domestic demand recovered from last years flood, resulting in a 21%
y-o-y increase in sales, but dropped 9% q-o-q from seasonal demand at yearslide 53
end. Total FY2012 dropped 2% y-o-y from decreased export sales due to
regional demand softness.
000 tons
140
120

131
32

125
30

126

+5% y-o-y 000 tons

600
-6% q-o-q

126
119

31

110

30

100

27

122
115

500

492

483

130
(26%)

107
(22%)

24
26
400

37
80

300
60

99
40

95

96

95

92

98

+21% y-o-y
89

-9% q-o-q

200

73

362

376

(74%)

(78%)

FY2011

FY2012

100

20
0

0
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12

Domestic

Export

Financials
Lower results q-o-q, due to weaker volume and prices in the P&W
(Fibrous) business, coupled with higher production and maintenance
expenses, in addition to the fire at PPPC. FY2012 results improved from
higher sales volume and efficiency in Packaging Chain.
MB
15,000

MB
13,700 13,873

14,298

13,985

14,456 14,585 14,404

12,968

12,000

4,000
57,430

FY2011

FY2012

3,000
2,370

2,348

54,839

-1% q-o-q

2,547
2,350

Revenue from Sales (MB)

+11% y-o-y

Revenue from Sales (Left)

9,000

slide 54

2,215

EBITDA (MB)
8,811

2,273
1,986

EBITDA (Right)

8,844

2,000

+27% y-o-y

6,000

1,566
1,054

1,007

-13% q-o-q
1,010

918

FY2011

1,101

1,000

851

3,000

598

FY2012

Profit for the period (MB)

3,331

3,560

FY2011

FY2012

16%

15%

352

+70% y-o-y

-30% q-o-q

Profit for the period (Right)

Q1/11

Q2/11

Q3/11

Q4/11

Q1/12

Q2/12

Q3/12

Q4/12

EBITDA Margin

Business Segments
Continued performance improvement in the Packaging Chain, while the
Printing & Writing (Fibrous) Chain saw a decrease in performance due to
lower volume and prices, and higher production costs following the midyear fire at PPPC.
Packaging Chain

slide 55

Printing & Writing (Fibrous) Chain

MB

MB
40,371

40,000

37,704

+7% y-o-y

40,000

30,000

30,000

20,000

20,000

17,135

Stable y-o-y

17,059

+24% y-o-y

10,000

10,000

6,713

5,434

3,377

2,131

0
FY2011

EBITDA
Margin

-37% y-o-y

FY2012

14%

Revenue from Sales

FY2011

17%

EBITDA
Margin
EBITDA

20%

FY2012
12%

Updates and Outlook

slide 56

PPPCs Plant Fire Update

PPPC resumed pulp line and utilities in late-Nov/12 and in the process of fine-tuning
operations, with full operations expected in the early 2013.

Outlook
Expected improved domestic and regional demand, following the economic recovery of
the major economies, especially in China.
Packaging Chain
Wastepaper prices are expected to increase, due to Chinese paper producers stock
replenishment ahead of the Chinese New Year in Feb/13. Forecasted paper prices
are to remain flat due to ample supply in China and within the region.
Printing & Writing (Fibrous) Chain
Continued rise of digital reading will place further pressure on paper demand.
Expected pulp prices to maintain or decrease from sluggish paper demand and
sufficient paper producers stocks.

AGENDA
slide 57

I.

II.
III.
IV.
V.
VI.

Consolidated Results
- Q4/12 Consolidated Results
- FY2012 Summary
- Financial Updates
Cement
Building Materials
Chemicals
Paper
Summary

Summary
slide 58

Thank You

For further details, please contact invest@scg.co.th

Appendix
slide 59
Sales (MB)

2008

2009

2010

2011

2012

Assets (MB)

2008

2009

2010

2011

2012

Consolidated

293,230 238,664 301,323 368,579 407,601

Consolidated

285,776 315,992 359,219

373,789 395,573

Chemicals

136,527 101,115 144,317 192,929 203,539

Chemicals

138,504 165,964 165,087

176,036 176,837

Paper

47,110

42,729

51,714

54,839

57,430

Paper

51,089

47,942

50,127

52,463

58,439

Cement

49,999

46,661

48,954

54,249

67,558

Cement

60,770

60,681

61,018

60,115

66,808

Building Materials

23,351

26,873

30,719

34,171

41,340

Building Materials

22,654

22,991

24,796

35,845

43,512

EBITDA (MB)

2008

2009

2010

2011

2012

Profit for the Period (MB)

2008

2009

2010

2011

2012

Consolidated

38,783

47,116

45,949

46,253

45,716

Consolidated

16,771

24,346

37,382

27,281

23,580

Chemicals

12,598

19,482

16,024

14,394

8,628

Chemicals

6,136

12,556

22,609

11,190

2,690

Paper

6,660

7,901

9,129

8,811

8,844

Paper

1,658

2,286

3,490

3,331

3,560

Cement

11,272

11,616

10,810

12,781

14,824

Cement

6,006

6,214

6,014

7,288

9,163

Building Materials

4,085

4,907

5,489

5,060

6,661

Building Materials

778

1,617

1,872

1,476

2,949

EBITDA Margin (%)

2008

2009

2010

2011

2012

EBITDA / Assets (%)

2008

2009

2010

2011

2012

Consolidated

12%

18%

14%

11%

10%

Consolidated

14%

15%

13%

12%

12%

Chemicals

7%

17%

9%

5%

3%

Chemicals

9%

12%

10%

8%

4%

Paper

14%

18%

18%

16%

15%

Paper

13%

16%

16%

17%

15%

Cement

23%

25%

22%

24%

22%

Cement

19%

19%

19%

21%

22%

Building Materials

16%

18%

17%

14%

16%

Building Materials

18%

21%

20%

14%

16%

For further details, please contact invest@scg.co.th