2019 Financial Results Analyst Meeting Presentation Agenda - - PowerPoint PPT Presentation

2019 Financial Results

Analyst Meeting Presentation

Chememan Analyst Presentation 2019

March 2020 | 2

Agenda

Business Overview Business Expansion Update Financial Performance

Chememan Analyst Presentation 2019

March 2020 | 3

2019 Investment Activities

January

• Set up CalMix Co., Ltd. with German

partners to manufacture construction materials in Thailand

• Commenced KK4 Quicklime Kiln with

production capacity of 73,000 TPY July

• Commenced Easternbulk Lime Products

Private Limited in Tuticorin of India November

• Acquired 80% portion of capital

contribution of Ha Long QN Lime Co., Ltd. in Vietnam

Business Overview

Chememan Analyst Presentation 2019

March 2020 | 4

Thailand

 3 major operations in Thailand, Vietnam and India (supplies > 1 MTY);  2 limestone quarries in Thailand and Vietnam;  2 DCs in WA (1 additional under planning)

• Tubkwang Quarry
• Tubkwang Crushing Plant
• Kangkoi Plant
• Prabuddhabaht Plant
• Rayong Plant
• CalMix

India

• Chememan India
• Easternbulk Lime Products
• Siriman Chemicals India

Vietnam

• Ha Long QN Lime Quarry
• Ha Long QN Lime Plant
• Northman

Australia

• Henderson DC
• Kalgoorlie DC
• Kwinana DC

CMAN Geographical Footprints

Business Overview

Chememan Analyst Presentation 2019

March 2020 | 5

CMAN Group Structure (as of December 2019)

Business Overview

Chememan Analyst Presentation 2019

March 2020 | 6

Thailand Tubkwang Quarry > 100,000,000 MT Tubkwang Crushing Plant 3,000,000 TPY Kangkoi Plant > 500,000 TPY Prabuddhabaht Plant > 350,000 TPY Rayong Plant > 80,000 TPY Easternbulk Lime Plant > 45,000 TPY Siriman Chemicals India Plant > 50,000 TPY Ha Long QN Lime Quarry 60,000,000 MT Ha Long QN Lime Plant > 200,000 TPY Henderson DC & Kalgoorlie DC 150,000 TPY Kwinana DC 300,000 – 500,000 TPY Vietnam Australia (Distribution) India

Quarry / Crushing Plant Lime Plant Distribution Center

Lime Capacity > 1 million TPY (2020)

Business Overview

Chememan Analyst Presentation 2019

March 2020 | 7

• Exports to > 25 countries across 3 continents in Asia, Australia, and Africa

Business Overview

CMAN International Presence

Chememan Analyst Presentation 2019

March 2020 | Mining, 43% Sugar, 12% PCC, Pulp & Paper 12% Building Construction & Roadways, 10% Fiber glass, 4% Agriculture, 4% Bio-plastic, 4% Environment, 4% Chemicals, 3% Iron & Steel, 2% Glass & Bottle, 1% Others, 1% 8

Business Overview

Customer Segmentation 2019

Chememan Analyst Presentation 2019

March 2020 | 9

Financial Performance

4Q19 Profit & Loss Statement

Unit : Million Baht 4Q19 3Q19 4Q18 %QoQ %YoY Sales Revenue 616 584 592 +5.4% +4.0% Cost of Sales (not include depreciation & amortization) (350) (361) (334)

• 3.0%

+4.8% Transportation cost (132) (111) (111) +18.8% +19.0% Gross Profit (net transportation cost and depreciation & amortization) 134 112 147 +19.3%

• 9.0%

Gross Profit Margin (net transportation cost and depreciation & amortization) (%) 27.7% 23.7% 30.6% Other income 7 7 9 +1.5%

• 27.1%

Selling expenses (14) (13) (9) +1.9% +53.2% Administrative expenses (57) (47) (47) +19.9% +22.0% Gain (Loss) on exchange rate 1 (11) 1

• 111.4%
• 8.4%

Non-cash expenses 8 7 7 +13.9% +5.0% EBITDA 79 54 110 +45.7%

• 27.8%

Adjust : (a) Gain (Loss) on exchange rate (1) 11 (1)

• 111.4%
• 8.4%

Adjust : (b) Cost incurred by temporary shutdown of kiln for maintenance 1 6 4

• 84.2%
• 74.9%

Normalized EBITDA 79 71 112 +11.5%

• 29.5%

Normalized EBITDA Margin (%) 12.8% 12.1% 18.9% Depreciation & Amortization (59) (54) (50) +10.2% +18.5%

Depreciation & Amortization – Cost of sales (55) (50) (46) +11.2% +19.7% Depreciation & Amortization – Administrative expenses (4) (4) (4)

• 2.2%

+4.1%

Finance costs (18) (13) (8) +37.7% +115.0% Interest received 2 1 1 +27.1% +119.4% Share of loss from investment in joint ventures (2) (4) (1)

• 48.2%

+220.6% Gain (Loss) on tax 2 (1) 2

• 511.9%
• +9.4%

(Profit) Loss attributable to non-controlling interests of the subsidiary 3 1 +742.7% +122.2% Normalized Net Profit attributable to equity holders of the company 6 1 57 +1,017.7%

• 89.2%

Normalized Net Profit Margin attributable to equity holders of the company (%) 1.0% 0.1% 9.7% (a) Gain (Loss) on exchange rate 1 (11) 1

• 111.4%
• 8.4%

(b) Cost incurred by temporary shutdown of kiln for maintenance (1) (6) (4)

• 84.2%
• 74.9%

(c) Non-cash expenses (8) (7) (7) +13.9% +5.0% Profit (Loss) attributable to equity holders of the company (1.2) (22.6) 47.6

• 94.8%
• 102.5%

Profit (Loss) attributable to non-controlling interests of the subsidiary (3) (0) (1) +742.7% +122.2% Net Profit (Loss) (4) (23) 46

• 83.9%
• 108.0%

Net Profit (Loss) Margin (%)

• 0.8%
• 4.8%

9.7% Earnings (Loss) per share (baht) 0.00

• 0.02

0.05

Chememan Analyst Presentation 2019

March 2020 | 10

Financial Performance

Y2019 Profit & Loss Statement

Unit : Million Baht

2019 2018 %YoY Sales Revenue 2,372 2,423

• 2.1%

Cost of Sales (not include depreciation & amortization) (1,408) (1,429)

• 1.5%

Transportation cost (475) (425) +11.7% Gross Profit (net transportation cost and depreciation & amortization) 490 569

• 14.0%

Gross Profit Margin (net transportation cost and depreciation & amortization) (%) 25.8% 28.5% Other income 21 19 +10.7% Selling expenses (45) (33) +35.4% Administrative expenses (184) (159) +15.6% Gain (Loss) on exchange rate (24) 2

• 1,362.5%

Non-cash expenses 31 19 +66.8% EBITDA 290 417

• 30.6%

Adjust : (a) Gain (Loss) on exchange rate 24 (2)

• 1,362.5%

Adjust : (b) Cost incurred by temporary shutdown of kiln for maintenance 16 10 +60.0% Normalized EBITDA 329 425

• 22.5%

Normalized EBITDA Margin (%) 13.9% 17.5% Depreciation & Amortization (211) (187) +12.8%

Depreciation & Amortization – Cost of sales (196) (173) +13.0% Depreciation & Amortization – Administrative expenses (15) (14) +10.5%

Finance costs (52) (57)

• 9.3%

Interest received 4 3 +54.0% Adjust : (c) Loan prepayment fee 11

• 100.0%

Share of loss from investment in joint ventures (10) (4)

• 156.3%

Gain (Loss) on tax 8 9

• 11.3%

(Profit) Loss attributable to non-controlling interests of the subsidiary 4 1 +174.5% Normalized Net Profit attributable to equity holders of the company 72 200

• 64.0%

Normalized Net Profit Margin attributable to equity holders of the company (%) 3.0% 8.3% (a) Gain (Loss) on exchange rate (24) 2

• 1,362.5%

(b) Cost incurred by temporary shutdown of kiln for maintenance (16) (10) +60.0% (c) Loan prepayment fee (11)

• 100.0%

(d) Non-cash expenses (31) (19) +66.8% Profit (Loss) attributable to equity holders of the company 0.8 162.6

• 99.5%

Profit (Loss) attributable to non-controlling interests of the subsidiary (4) (1) +174.5% Net Profit (Loss) (3) 161

• 101.8%

Net Profit (Loss) Margin (%)

• 0.2%

8.1% Earnings (Loss) per share (baht) 0.00 0.18

Chememan Analyst Presentation 2019

March 2020 | 11

Domestic Vs. International Sales

Financial Performance

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Domestic International 4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Domestic International

329,368 256,461 36% 64% 33% 67%

Unit : THB million

Sales Revenues

592 612 55% 45% 37% 63%

Unit : MT

Sales Quantities

64% 36% 60% 40% 2,423 1,155,399 1,463,420 303,842 29% 33% 71% 67% 58% 59% 42% 41% 561 2,372 72% 28% 365,612 584 60% 40% 616 63% 37% 464,598 60% 40%

Chememan Analyst Presentation 2019

March 2020 | 12

EBITDA & Net Profit

Financial Performance

112 99 81 71 79 425 329 18.9% 16.1% 14.4% 12.1% 12.8% 17.5% 13.9%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Normalized EBITDA Normalized EBITDA Margin

Net Profit

Unit : THB million

Normalized Net Profit (attributable to equity holders of the company)

Unit : THB million

EBITDA

Unit : THB million

Normalized EBITDA

Unit : THB million

110 92 64 54 79 417 290 18.6% 15.0% 11.4% 9.3% 12.9% 17.2% 12.2%

• 10.0%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 EBITDA EBITDA Margin 46 32 (9) (23) (4) 161 (3) 9.7% 6.5%

• 1.9%
• 4.8%
• 0.8%

8.1%

• 0.2%
• 30.0%
• 25.0%
• 20.0%
• 15.0%
• 10.0%
• 5.0%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Net Profit Net Profit Margin 57 41 24 1 6 200 72 9.7% 6.8% 4.2% 0.1% 1.0% 8.3% 3.0%

• 40.0%
• 30.0%
• 20.0%
• 10.0%

4Q18 1Q19 2Q19 3Q19 4Q19 2018 2019 Normalized Net Profit Normalized Net Profit Margin

Chememan Analyst Presentation 2019

March 2020 | 13

Balance Sheet

Financial Performance

1,223 2,223 2,199 1,556 1,162 2,628 438 439 775

2017 2018 2019 Equities Interest Bearing Debt Others 739 875 1,149 2,478 2,949 4,453 2017 2018 2019 Current Asset Non-Current Asset

Asset (THB million) Liabilities & Equity (THB million)

3,217 3,824 3,824 3,217 5,602 5,602

Chememan Analyst Presentation 2019

March 2020 | 14

Unit : THB million

Sources of Fund Uses of Fund

Cashflow from operation 290 Acquisition of Property, Plant & Equipment 305 Long-term loan received 789 Acquisition of intangible assets 9 Short-term loan received 380 Increase in working capital 151 Interest income & others 22 Interest and fee payment 52 Exchange Translation 6 Income tax paid 1 Restricted Bank Deposits 45 Investment in Subsidiary 452 Investment in Joint Ventures 113 Long-term loan repayment 176 Other debt repayment 26 Dividend paid 67 Increase in cash 89 SOURCE OF FUND 1,485 USE OF FUND 1,485 Beginning Cash 126 Ending Cash 215

Sources & Uses of Fund

Financial Performance

Chememan Analyst Presentation 2019

March 2020 | 15

Key Financial Ratios

Financial Performance

Interest-bearing Debt to Equity ratio

Unit : times

Current ratio

Unit : times

1.02x 1.41x 0.69x 2017 2018 2019 1.27x 0.52x 1.20x 2017 2018 2019

Chememan Analyst Presentation 2019

March 2020 |

20.00 21.00 22.00 23.00 24.00 25.00 26.00 30.00 30.50 31.00 31.50 32.00 32.50 33.00 33.50 34.00

1Q19 22.91 2Q19 22.49 1Q18 31.71 2Q18 32.12 3Q18 33.15 1Q19 31.79

USD AUD

2Q19 31.74 3Q18 24.52 2Q18 24.54 4Q18 23.93 4Q18 32.99 1Q18 25.19 3Q19 30.88 3Q19 21.42

16

4Q19 30.45 4Q19 21.04

FX: THB against USD & AUD

Financial Performance

Chememan Analyst Presentation 2019

March 2020 |

Business Expansion Update

Business Expansion Update

Project Location Owner ship Estimated Investment Installed Capacity (MT/year) Commercial Operation Date India SIRIMAN CHEMICALS INDIA PRIVATE LIMITED Joint venture Lime manufacturing and distributing company Visakhapatnam, Andhra Pradesh 50% 61.3 MB 109,500 of Quicklime Q2 2020 87,600 of Hydrated Lime Vietnam HA LONG QN LIME COMPANY LIMITED Indirect Subsidiary Lime manufacturing and distributing company with limestone mining concession Quang Ninh, Vietnam 80% 454.9 MB 219,000 of Quicklime 20 November 2019 120,000 of Hydrated Lime EASTERNBULK LIME PRODUCTS PRIVATE LIMITED Joint venture Quicklime manufacturing and distributing company Tuticorin, Tamil Nadu 50% 137.6 MB 47,450 of Quicklime 10 July 2019 73,000 of Ground Limestone CALMIX COMPANY LIMITED Joint venture, to develop, manufacture and distribute construction materials Saraburi, Thailand 51% 30.6 MB Y 2020

Thailand Project Location Ownership Estimated Investment Commercial Operation Date 17

Chememan Analyst Presentation 2019

March 2020 | 18

51% Joint Venture in Thailand

CalMix Co., Ltd.

CalMix Co., Ltd.

• Construction & Installation :
• Feeding raw materials into Silos
• System testing and obtaining mixing formula in Jan 2020
• Product testing in Jan 2020
• Commercial operation estimated on : Y2020
• Installed capacity : max. 100,000 tons/year (For the

1st phase, the operating capacity will be 10,000 tons/year) Business Expansion Update

Chememan Analyst Presentation 2019

March 2020 | 19

Easternbulk Lime Products Private Limited

50% Joint Venture in Tuticorin, India

Easternbulk Lime Products Private Limited

• Construction & Installation completed
• Commercial operation commenced on

10 July 2019

• Installed capacity of quicklime production

: 47,450 tons per year

• Installed capacity of ground limestone production

: 73,000 tons per year Business Expansion Update

Chememan Analyst Presentation 2019

March 2020 | 20

Siriman Chemicals India Private Limited

50% Joint Venture in Visakhapatnam, India

Siriman Chemicals India Private Limited

• Kiln machinery installation progress 90% and refractory

installation shall start in March.

• Coal grinding mill building completed. Machinery

installation progress 80% .

• QL handling civil works progress 90%
• Commercial operation expected to commence in

Q2 2020. Business Expansion Update

Chememan Analyst Presentation 2019

March 2020 |

Ha Long QN Lime Company Limited

80% Indirect Subsidiary in Quang Ninh, Vietnam

Ha Long QN Lime Company Limited

• A multi-member limited liability company established

since 3 August 2018

• Locate in Quang Ninh Province, near Hai Phong Port
• Operate limestone mining and manufacturing of lime

products

• Mineral exploitation license, expire on 11 May 2046
• CMAN acquired 80% capital contribution via

Northman Company Limited on 20 November 2019 Business Expansion Update

Chememan Analyst Presentation 2019

March 2020 | 22

Disclaimer

The information contained in our presentation is intended solely for reference only. Please do not circulate this

• material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any

action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of CMAN's activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. The information contained in this presentation is subject to change without notice and CMAN does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.