SELIC CORP OPPORTUNITY DAYQUARTER 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

23นักเคม ีและเทคนคิในทมีวจิัยและพัฒนา

4หอ้งปฏบิตักิาร และการ

วเิคราะห์

38ปี แหง่ประสบการณ์ และความเชีย่วชาญใน

อตุสาหกรรม

4เทคโนโลยกีาวทีผ่ลติ

ไดเ้อง

9,120ตนั ก าลงัการผลติ

3-5%ของรายไดท้ีเ่ป็นงบประมาณดา้น

นวัตกรรม

27ประเทศ ครอบคลมุ

ตลาด

กาว solvent

เป็นกาวทีอ่ยูใ่นสถานะของเหลว ใชต้วัท าละลายประเภท Solvent ในกลุม่ของน ้ามนั หรอืทนิเนอร ์

เป็นตวัท าละลาย

กาวน า้

เป็นผลติภัณฑก์าวสงัเคราะหแ์ละใชน้ ้าเป็นตวัละลาย ท าใหก้าวมีสภาพเป็นของเหลว ใช ้

งานง่าย

กาว hot melt

มคีณุลักษณะเป็นของแข็ง ใช ้

งานผา่นความรอ้นเพือ่ใหก้าวละลายกลายเป็นของเหลวเมือ่เนือ้กาวเย็นลง จะยดึตดิวัสด ุ

2 ชิน้เขา้ดว้ยกัน

กาว hot melt PUR

เป็นกาวในกลุม่ hot melt แต่ตา่งกันทีค่ณุสมบัตคิงทน โดยเมือ่เกดิการยดึตดิแลว้จะไม่แปลงสภาพเหมาะกับงานที่ตอ้งการความทนทาน

Adhesive Technologies

Our customers in various industries across 27 countries

Food & beverage Consumer productsPrintingFurnitureConstructionAutomotive FootwearEtc.

FINANCIAL INFORMATION

417.42

434.32

446.20

Q1-3/2016 Q1-3/2017 Q1-3/2018

9M

133.26

153.29150.78

Q3/2016 Q3/2017 Q3/2018

+11.88MB +2.74%

Consolidated FS

- 2.51 MB-1.5%

3M

Revenue growth +2.74% for the 9-month period Slight decline of -1.5% observed for the quarter compared to previous year.

(Unit : MB)

Domestic sales recorded growth while export sales decline

Consolidated FS

The decline in export sales is due to the political uncertainty in South Asia and South Africa regions.

(Unit : MB)

85.16 88.06

68.1462.72

Q3/2017 Q3/2018

Domestic

International

Hotmelt and water based adhesive grow according to plan and align with global market demand

Unit: Million Baht

Solvent

-7.38% YOY(-19.01 MB)

Hotmelt

257.72 238.72

9M/2017 9M/2018

137.51

160.44

9M/2017 9M/2018

Unit: Million Baht

+16.7% YOY(+22.92 MB)

29.35

36.40

9M/2017 9M/2018

Unit: Million Baht

Water Based

+24.0% YOY(+7.05 MB)

Profitability

Consolidated FS

Gross Profit Margin(exclude other revenue)

3.17% 3.52%

1.07%

2017 Q1-3/2017 Q1-3/2018

Net Profit Margin

Gross profit margin decreases by 8.8% from the first 9 month period while net profit margin down to 1.07%.

25.84% 26.76%23.72%

2017 Q1-3/2017 Q1-3/2018

Q3/2018 Net Profit

Consolidated FS

18.72

2.96

4.06

2017 Q3/2017 Q3/2018

Net Profit

3.17%1.93%

0.02%

2017 Q3/2017 Q3/2018

Net profit =0.04MB, decreased due to the Non-Recurring transaction cost of M&A amounted to 4.06 MB in Q3/2018

Non-Recurring Cost 4.06MB

Non-Recurring Cost 2.69% of Revenue

Net Profit Margin

0.04

PMC GROUP ACQUISITION

PMC Group

Type of Business Manufacturer of self-adhesive labels Sales and distribution of PMC’s products in Singapore

Address Khok Kham, Muang Samut Sakhon District, Samut Sakhon 74000

Loyang Industrial Estate #02-20, 30 Loyang Way, 508769

Corporate Type Company Limited Private Company Limited

Registration Date 20 April 2004 1 March 2004

Registered Capital THB 100,000,000 SGD 2

PMC Label materials Pte Ltd.(Singapore)

PMCS

PMC Label materials Co., Ltd.(Thailand)

PMCT

FOUNDER

100.0% 100.0%

Composition of Self-Adhesive Label

Production Process

Self-Adhesive Label

Strong Market Presence 1

Rank one of Top 4 in Thailand Market

3041 2207 1031 772 836 486

9.8%

0.3%3.6%

11.6%

2.9%

0.0%

5.0%

10.0%

15.0%

0

1000

2000

3000

4000

Avery Dennison(Thailand)

Thai KK Industry Oji Label(Thailand)

PMC LabelMaterials

Lintec (Thailand) UPM Raflatac

Revenue

Margin

Source: Department of Business Development

2

Net Profit was about 10% on average

828 811852

122 122 148

14.8% 15.0%

17.3%

9.6% 9.7%

11.7%

0

100

200

300

400

500

600

700

800

900

2015 2016 2017

Revenue EBITDA %EBITDA %NP

Stable Financial Performance

Combined FS

3

• ISO:9001:2008 Certified for Quality Management System Certification from the United Kingdom Accreditation Service (UKAS)

• Restriction of Hazardous Substances (ROHS) compliance

High Quality Standard and Compliance

Good International Distribution Network4

>12 CountriesWorldwide

Various type of Product Category

Product Common Paper

Prime Label Films

Industrial Label Films

Variable Imprintable

Thermal Transfer

Variable Imprintable

Direct Transfer

Specialty

FacestockType

Paper Film Film Paper or Film Paper of Film Paper of Film

Usage

• Health & Beauty Aids

• Food & Beverages

• Pharmaceuticals

• Consumer packaging

• Health & Beauty Aids

• Food & Beverages

• Consumer packaging

• Product ID• Industrial

Labeling• Chemical Drum

Label

• Product ID• Logistic Tracking

Label• Industrial Labeling

• Baggage Tags• Weighing Scale• Retail Shelf• Ticketing

• Advertisement• Decoration• Security labels

5

Transaction Overview

Transaction Structure and Estimated Size

No. of shares % shareholding THB million

PMCT 1,000,000 100% up to 945

PMCS 2 100% up to 105

Total up to 1,050

PMC Label Materials Co., Ltd. (PMCT)

E.V.A. International Co., Ltd (EVA)

PMC Label Materials Pte, Ltd. (PMCS)

99.97% 100.00% 100.00%

Company Structure Post

Transaction

Transaction Overview

Transaction Timeline

October November December January 2019

BOD resolution

Share Purchase

SELIC’s EGM

Transaction complete

19

14

4

Sources of Fund

• The Company will use cash on hand and operating cash flow of Baht 150-200 million, and a long term loan from a financial institution amounting up to Baht 900 million (this loan has already been approved by the financial institution), as approved by the Board of Directors.

Benefits & Value Creation Opportunities

Increase Revenues and

Profits

Market Expansion and

Coverage

Operations Synergy

Benefits & Value Creation Opportunities

Increase revenues and profits

THB million

595

845.7

1440.7

0

500

1000

1500

SELIC PMC Combined

47.02

147.6

194.62

0

100

200

300

SELIC PMC Combined

THB million

2017 REVENUE : combined 1,440.7 Million Baht

2017 EBITDA : combined 194.62 Million Baht

Benefits & Value Creation OpportunitiesIncrease revenues and profits

Combined P&L Selic and PMC

Baht in thousandsFY16

AuditedFY17

Audited9M18

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

Adhesive Value Chain Analysis

Opportunity to expand vertically into Converted Product Producer. This offer new channels of distribution for SELIC

Market Expansion & Coverage

Benefits & Value Creation Opportunities

Market Expansion & Coverage

Benefits & Value Creation Opportunities

Product extension in label market• Glue applied label• Self adhesive label

Operations Synergy

Benefits & Value Creation Opportunities

Overseas Footprint Expansion

• Leverage strong oversea network to expand export market for PMC

• Potential of regional office in Singapore for MNC companies

Technology Synergy

• Strong R&D focused from SELIC

• Adhesive for specialty labels such as removable stickers, deep freeze resistant labels

Operations Synergy

• Potential reduction on inventory and raw material categorization

• Cost and expertise sharing

Q & A

This Presentation is not intended to provide the basis for any investment decision, nor to substitute your own analysis and investigation, and should not be considered as a recommendation to any recipient of this Presentation. Some statements made in this presentation are forward-looking statements, which are subject to various risks and uncertainties. These include statements with respect to the Company’s corporate plans, strategies and beliefs and other statement that are not historical facts. These statement can be identified by the use of forward-looking terminology such as “may”, “will”, “expect” , “intend”, “estimate”, “continue”, “plan” or other similar words.

The statements are based on the assumptions and beliefs of the Company’s management in light of the information currently available to the Company. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Nothing in this Presentation is, or should be, relied on as promise or representation of the Company as to the future.

270 Liapkhlongphasicharoenfangtai Road, Nongkhaem, Bangkok 10160, THAILAND

Phone : +662 807 3347Email : explore@seliccorp.com

Website : www.seliccorp.comFacebook : Selic.Thailand