Presentation: Strategic Growth Path Where we are today. SCG s platform, and growth vision. Asian Investment Conference Hong Kong March 19-20, 2018

Transcription

1 Presentation: Strategic Growth Path Where we are today. SCG s platform, and growth vision. Asian Investment Conference Hong Kong March 19-20, 2018

2 SCG s Strategic Growth Path P. 2 Where We Are Today SCG s Platform and Growth Vision

3 P. 3 SCG Financials Revenue from Sales EBITDA Profit for the Period MB MB MB 500, , , , , , ,000 80, ,080 EBITDA 97,816 10,129 16,444 Dividend 60,000 50,000 40,000 56,084 Eq Inc. 17,933 55,041 Eq Inc. 18, ,000 60,000 40,000 87,687 85,636 EBITDA from Operations 30,000 20,000 Sub. 38,151 Sub. 36, ,000 20,000 10,000 0 FY2016 FY FY2016 FY2017 EBITDA 21% 19% Margin: 0 FY2016 FY2017 EPS:

4 FY2017 Segments Assets 573,412 MB Revenue from Sales 450,921 MB KH 2% MM 2% LA 2% PH 1% Others 1% Cement- Building Materials 36% Chemicals 46% VN 8% Packaging 18% ID 9% TH 75% Net Profit 55,041 MB Cement- Building Materials 13% Packaging 8% Others 3% Chemicals Equity Income 27% Chemicals Subsidiaries 49% P. 4

5 Highlight of Vietnam Presence Assets of +$7 Billion upon completion of LSP, versus $1.5 Billion in Cement Building Materials: Ceramic tiles (Prime Group) Packaging: Box Plants Cement Building Materials: Cement Plants Ceramic tiles (Prime Group) Cement Building Materials: White Cement (Buu Long) RMC (Ready-mixed concrete) Concrete Products Chemicals: Long Son Petrochemicals PVC (TPC Vina) PVC pipe & fiting (Binh Minh) Packaging: Packaging paper (VKPC) Box plants Flexible packaging plant P. 5

6 Visibility for Chemicals Business Extends to 2022 Extended peak 6 % 5 % Supply Growth - World Ethylene vs 3-4% demand growth 95% Operating Rates - World Ethylene 4 % 3 % 2 % 5-6 MT shale cracker starts 90% Extended peak 2017 to % % % 5 % World Supply Propylene Growth Supply World Growth Propylene vs demand vs 4-5% growth demand avggrowth of 4-5 % 95% Operating World Propylene Rates World Operating Propylene Rates 4 % 90% 3 % 2 % 1 % % 80% Extended peak 2017 to P. 6

7 SCG s Strategic Growth Path P. 7 Where We Are Today SCG s Platform and Growth Vision

8 Roadmap to Growth Chemicals Globally competitive, with ASEAN focus. Vietnam: LSP Complex ($5.4 billion). Indonesia: Chandra Asri s #2 cracker study. Thailand: Moving up the value chain with HVA. Cement - Building Materials ASEAN: Defendable positions via the integrated RMC business model. Indonesia and CLMV: High growth markets, with decreased oversupply, and enhanced pricing. Asset light focused: Launched in Thailand are logistics for e-commerce, installation services, and home living products retails stores. Packaging Geographical growth in ASEAN through acquisition. Growth of products and offerings through acquisition. Applications & Solutions: Food and E-commerce packaging. P. 8

9 SCG Chemicals Globally competitive, and ASEAN focused. Future Vietnam: LSP cracker (4.5 yr construction) Indonesia: CAP #2 cracker (study phase) 2011 Indonesia: CAP #1 cracker (30% stake) 40% debottleneck in Q4, Thailand: #2 cracker (MOC) 1999 Thailand: #1 cracker (ROC) 1983 Thailand: SCC enters chemicals downstream business P. 9

10 Long Son Petrochemicals (LSP) project in Vietnam P year construction and $5.4 billion. Vietnam s first chemicals complex, as imports amount to 2.5 million ton PE/PP. LSP is competitive with Flexible feedstocks Economies of scale Downstream integration Upon start-up: 70% capacity growth in PE / PP for SCG. LSP site

11 P. 11 Asset light projects in logistics Small Parcel Express Delivery Cold Chain JV with Nichirei Logistics for Temperaturecontrolled logistics. JV with Yamato Asia ( Black Cat ) for small parcel home delivery The 10,500 square meters warehouse is strategically located at Teparak Rd (km.22,), with proximity to the Inland Container Depot and is 103 km. from the Laemchabang sea port. Nationwide

12 P. 12 Roofing installation services Combining products and services TOP HAT roofing solutions Package Attributes Convenience Confidence in product Warrantee provided Competitive package

13 R&D & Innovation Spending MB 5,000 4,000 3,000 2,000 1, ,111 1,430 2,068 2,710 3,510 4,350 4, Beyond Digital + Innovations R&D Spending & Innovation Segments (FY2017) FY2017 HVA % of Sales: 39% R&D Spending on Sales (%): 0.9% R&D and Product Design Team: 1,645 (116 PhD) P. 13

14 R&D and Innovations Collaboration Efforts Chemicals Global innovation network Cement-Building Materials Habitat & living solutions SCG Experience The NEST Joining Global cement & concrete consortium Packaging Co-creation with customers E-Commerce Packaging Food Safety Packaging Corporate Corporate Technology Office Global R&D Network +38 Universities +33 Research Inst Industry partners P. 14

15 Packaging business Focused towards the total packaging solutions P. 15 Total Packaging Solutions Downstream (Solutions) Primary Packaging Solutions Display Packaging Logistics Packaging Plastic Packaging - Flexible - Rigid Fiber Packaging: - Micro flute packaging - Folding carton - Corrugated box - Logistics material - E-Commerce packaging - Food packaging - Pulp mold Upstream (Substrate) Pulp / Paper (Food grade) Film Packaging Paper

16 Solid Performance Record P. 16

17 Thank You For further details, please contact P. 17