thai green corporate day 23-24 march 2021€¦ · • world-scale chemical crackers undergoing 70%...

Thai Green Corporate Day

23-24 March 2021

PASSION FOR BETTER

P.2

Consolidated overview

Business updates

Chemicals

Cement-Building Materials

Packaging

World-class ESG

Appendix

Agenda

P.3

Full-scale implementation of Business Continuity Management (BCM)

Ensure health and safety of employees via hybrid workplace and continued focus on office

density

Uninterrupted business conduct, supported by virtual conference and digital platform on

cloud

Extend care to partners, proactively use preventive measures to protect supply chains and

sales channels

Countrywide vaccination efforts ongoing

Establish “Zero COVID-19 Zone” in Critical areas, restrict visitors

and minimized employee numbers

Non-infected critical staff operating plants

Apply Screening and spread containment measures:

Temperature screening to every entry to office

Declaration of places and areas travelled to and from

Increase frequency of alcohol cleaning to public area

Touch-less system for door entry

SCG Foundation provides innovative medical equipment and supply needs in

tackling COVID-19 to 6 critical provinces such as Positive Pressure Isolation

Chamber, Patient Isolation Capsule, Small Patient Isolation Capsule for CT Scan, PPE and N95 masks and sets of Thermometer (Thermoscan).

Combatting the resurgence of COVID-19 in Thailand: Group Consolidated

Business Continuity

Screening and Spread containment

Social Responsibility

P.4Solid 2020 earnings delivery in the eye of Covid-19 storm

0

100,000

200,000

300,000

400,000

500,000

FY2019 FY2020

MB

399,939

437,980

Revenue from Sales

60,787

68,112

14,3186,488

0

20,000

40,000

60,000

80,000

100,000

FY2019 FY2020

Dividend

EBITDA from

Operations

MB

EBITDA74,60075,105

EBITDA 13.9% 17.0%

Margin:

EBITDA

20,38224,688

11,6329,456

0

10,000

20,000

30,000

40,000

50,000

FY2019 FY2020

MB

EPS: 26.7 28.5

Profit for the Period

-1%

32,014

Sub.

Eq Inc.

Eq Inc.

Sub.

34,144

*Severance pay adjustment (Labor Law) in 2019 at 2,035 MB

P.5

Strong global recovery drives

robust chemicals demand. IMF

forecasted global GDP growth of

+5.5% prior to the passing of the

U.S.’ $1.9trn stimulus

High chemical spreads sustain

despite the recent surge in oil

prices

U.S. cold snap’s impact on

capacity

MOC Debottleneck is

commissioning, raising capacity

by nearly 10%

Chemical recycling demonstration

plant has started

Commencing ASEAN’s first Melt-

blown PP resin production

Growth execution continues

organically and inorganically

Platform expansion both,

vertically and horizontally

Benefitting from key mega

trends in food packaging, E-

commerce, and hygienic

products

Consolidating position as

ASEAN’s leading packaging

solutions with recent deals done

including SOVI, Go-Pak, and

DUYTAN

Domestic cement demand

began to recover in Jan-Feb’20

with export also trending higher

Cost Optimization is in place

and can sustain momentum

gained in 2020

Progressive rollout of Retail

stores & online channel both in

Thailand and ASEAN

Amid Covid-19 pandemic, CBM

delivered FY2020 core profit

growth of +18% YoY

Momentum and business resiliency carry into 2021

Chemicals business Packaging business Cement-Building Materials

business

P.6

Manufacturer AND Retailer

Cost reduction & efficiency improvement

makes Cement busines a better cash

generator

Increase Services & Solutions offerings to

grow Building Materials business

Grow Retail outlets and Active-omni channel

to tap higher share of ASEAN homeowners’

wallet

Positioned for growth

C. 55% capacity expansion by H1/23

Capacity growth complemented by product

portfolio optimization;

Differentiation via HVA, Innovation, and

Scale Up Chemicals Recycling

Ready for take-off

High-growth with T-model via brownfield

and Merger & Partnership

ASEAN’s largest integrated packaging

solutions provider

Non-cyclical, B2B2C approach, value-based

pricing with margin stability

Upcoming project completions : Batico,

Prepack, Fajar, UPPC

SCG 2-3 years from now…significant growth with radical transformations enhancing competitiveness

Cement and Building Materials Chemicals Packaging (SCGP)

5.0 MT

FY2019 FY2023 FY2019 FY2020FY2020

+0.35 MTMOCD

debottleneck

+2.95 MTLSP

(Upstream &

Downstream)

FY2021

Service &

solutions

3%

Service &

solutions

5%

2x service &

solution (%)

P.7

42%

38%39% 39%

41%

32%

10%

15%

20%

25%

30%

35%

40%

45%

New definition*

Sustained investments in innovation drives growing proportion of HVA sales: 1/3 of Revenue derived from HVA products, Services & Solutions

R&D spending and Intellectual property

• More than 6 Billion THB invested for R&D and

innovation in FY2020

• No. of existing patents: Approx. 800

Accompanied by New Product Development

and Service & Solution:

Ability to maintain

price premium

throughout business

cycle

Mono-material for recyclable packaging

Construction solutions Green & Hygienic living

Old definition

HVA as percentage of SCG’s Sales

* Criteria for HVA qualification made tougher in 2020 to

encourage increased focus on innovation

P.8

-10.5%

-15%

-23%

29% 33%

67%

2019 2020 2030

SCG’s ESG Progress

Strive to have

Net Zero emissionby 2050

Aim to achieve

67% of revenue

from sales of

Green Choice

products

in 2030

Committed to

reduce water

withdrawal

by

23% in 2025

% Water withdrawal reduction

Circular Economy

% Revenue of Green Choice product

of revenue from sale

Target Energy Consumption reduction by

13% in 2030

Climate Resilience

-7.5% -7.6%

-13%

2019 2020 2030

2019 2020 2025

% Energy consumption reduction

P.9Capitalizing on ASEAN growth

SCG’s dominance• No.1 Integrated Packaging business in ASEAN

• World-scale chemical crackers undergoing 70% capacity expansion

• Regional cement and building materials platform, position to capture growth in retails and solutions.

• Workforce of +50,000 persons

ASEAN’s attractiveness

• GDP is growing 1.5x the rate

of global GDP growth

• With 2x the population size

of the USA

• Half a Billion urban

inhabitants by 2050

ASEAN Sales as %

of total sales

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MB

30,93637,496

43,92340,566

51,750

61,213

74,465

85,537

100,912 100,15097,669

106,597

118,014

3% 5% 5% 7% 7% 7% 8% 9% 9% 11% 12% 14% 15% 17% 18%

115,650

103,887

SCG’s ASEAN Sales (excluding Thailand)

P.10

45.2

34.8

46.1 45.8

77.5

58.3

0

20

40

60

80

100

2015 2016 2017 2018 2019 2020 2021

FY2020 CAPEX & Investment of Registered at 58,308 MB

EBITDA(BB): 82.7 97.8 102.1 86.6 75.0 74.6 NA

Billion Baht

Note:- CAPEX includes debottlenecking, expansion projects, and major turnaround.- Investments are acquisitions and purchase of shares (EV basis).

66%14%

16%

4%

Others

Cement-Building

Materials

PackagingChemicals

SBU:

65%14%

9%

9%

3%

Efficiency

Projects

Others

Greenfield

& Expansion

Maintenance

Types:

Investment

65-75

P.11

3.1

2.6

1.8

2.4

3.0

2.62.5

2.0

1.51.4

1.7

2.4

2.1

1.1

0.9

0.5

0.7

0.90.8 0.8

0.7

0.5 0.5 0.50.6

0.5

0

10

20

30

40

50

60

70

80

90

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CAPEX

excl. projects under construction

Net Debt to EBITDA

Net Debt to Equity

Times (x)

Strong Balance sheet with Cash on hand of 107,150 MB in Q4/20

Chemical’s

TroughStart of LSP

construction

Fajar

AcquisitionGlobal

Financial

Crisis

Note: Net debt to EBITDA = Net debt / Trailing-12-month EBITDA

(2.3x if

annualizing

Fajar’s EBITDA)

CAPEX (BB)

Interest coverage ratio: 7.6x 8.8x 9.9x 13.8x 15.0x 12.0x 13.6x 10.6x

P.12Own access to capital via debentures with effective life of 14 years, at

competitive rates

45,000

40,000

25,000

50,000 50,000

40,000

25,000

2017 2018 2019 2020 2021 2022 2023

Matured

Issue

50,000

@2.8%

(MB)

73% of total SCG’s long -term debts are debenture (Q4/20)

Debentures effective life is 14 years

Matured

Issued

25,000

25,000

10,000

30,000

10,000

15,000

(H2)

(H1)

(H1)

(H1)

(H2)

(H2)

Fixed rate debt

87%

Floating rate debt

13%

Thai Baht, mainly 4 years fixed

Unsecured, unsubordinated

Maturing

25,000

@ 3.1%

40,000

@ 3.0%60,000

@ 3.1%20,500

(Plan)

P.13

0.01.0

3.0

6.0

15.0 15.0 15.0 15.0

7.58.5

12.5 12.5

11.0

15.5

12.5

16.0

19.0 19.018.0

14.0 14.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

% of 0% 16% 25% 36% 49% 56% 61% 59% 54% 42% 40% 55% 56% 51%* 45% 42% 41% 41% 48% 52%** 49%

Net Profit

Dividend: Maintain payout policy of 40% - 50% of profit

Note: * Exclude special dividend

**49% of profit before severance pay adjustment.

Dividend policy established in 2008

100 yr

special

dividend

Baht / Share

H1/20

5.5 bt/sh

H2/20

8.5 bt/sh

(wait for

AGM)

P.14Chemicals Business: Scale, Circular, Innovation

Chemicals

Beyond capacity expansion is

Circular Economy

Designed for recyclability

Mechanical Recycling

Chemical Recycling

Capacity Expansion to

capture rising demand

MOC Debot. & LSP to add

c.70% by 2023

High-Value-Added

products and Solutions

offering

P.15

Tomorrow

(H1/23)Vietnam: Upstream

cracker: 1.6 MT olefins

Downstream:1.35 MT

PE/PP

(HDPE 0.45 MT,

LLDPE 0.5 MT, PP 0.4

MT)

MOCD raises capacity by 7% in 2021 with LSP adding an additional 55% by H1/23

Map Ta Phut Olefins Debottlenecking

Commissioning (Q1/21)

Competitive capacity addition

Add up capacity growth by

+55% in H1/23

EBITDA contribution

Yesterday

(2020)Thailand:

Upstream crackers:

3.1 MT olefins

(2 crackers)

Downstream:

1.9 MT PE/PP

Indonesia:

Upstream crackers:

1.4 MT olefins

Downstream:

1.3 MT PE/PP

Today

(2021)Thailand: MOC

debottlenecking

($485 million)

Upstream

cracker addition:

0.35 MT

3.1 MT olefins

1.9 MT PE/PP

0.35 MT Olefins

MOC debottleneck

2.95 MT

(upstream

/downstream)

LSP

Long son petrochemicals complex (LSP)

66% completion (Q4/20)

Chemicals

P.16Long Son Petrochemicals (LSP) Project details in Vietnam

LSP site

Project Update:

Q4/18: CONSTRUCTION began

Q3/18: FINANCING secured… $3.2 Billion (110,000 Million Baht) loan (14 yr

and competitive LIBOR + rates)

Q2/18: 15yr FEEDSTOCK contract with Qatar Petroleum

(2 MT Propane + Naphtha per year)

Vietnamese government commitments and support

Key licenses obtained

Q4/20 progress at 66%

Competitiveness:

Global scale cracker (up to 1.6 MT olefins)

Flexible feedstocks (propane range of up to 20% to 80%)

Integration downstream (1.35 MT of PE, PP)

Located close to key industrial clusters

Key Contractors:

Consortium of Technip and SK E&C

POSCO E&C

Samsung Engineering

Hyundai Engineering

TTCL

P.17LSP Flexible Feedstock Advantage

Summer = Lower Propane Prices

Winter = Lower Naphtha Prices

LSP is designed to use up to 20% - 80% propane

-150

-100

-50

0

50

100

150

Jan

-16

Feb

-16

Mar

-16

Ap

r-1

6

May

-16

Jun

-16

Jul-

16

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Dec

-16

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jun

-17

Jul-

17

Au

g-1

7

Sep

-17

Oct

-17

No

v-1

7

Dec

-17

Jan

-18

Feb

-18

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Jul-

20

Au

g-2

0

Sep

-20

Oct

-20

No

v-2

0

Dec

-20

Jan

-21

($/T

)

Propane discount (historical)

Benefit for cracker to use propane as feedstock

2016 2017 2018 2019 2020

Chemicals

P.18Circular Economy Roadmap: Design for Recyclability

Mono-material solutions for fully recyclable flexible

Packaging, while maintaining functional properties

Global brand owners’ strong

commitment to Circular Economy

“100% of plastic packaging to

be recyclable by 2025”

Progress : Prototype of medium barrier packaging

with properties comparable to traditional packaging

for liquid detergent, vacuum sealed food and rice

(major in PE based)

Sealing layer

Barrier layer

Printing layer

SCG’s offerings:

Multi-layer

Multi-material

Packaging solutions

P.19Circular Economy Roadmap: Mechanical recycling

SCG entered high-quality post-consumer

recycled (PCR) resin business via partnership

with global brand owners and inhouse

formulation technology

“SCG Green PolymerTM”

• Own formulation under the brand “SCG Green

PolymerTM” for high-quality PCR HDPE for

consumer & household packaging

• Commercialization targeted by Q2/21

• Developed PCR booster to enhance recycled

packaging properties

Chemicals

Recycled resin demand is likely to grow at double the pace of conventional resin

In-house SMXTM technology contributes to

plastic-waste reduction in two ways:

1. Lower material used, higher durability

In blow-moulding applications, SMX requires

10% less resin to create HDPE bottles with

the same properties as required by

customers.

2. Increase proportion of post-consumer

recycled resin (PCR)

When used in conjunction with PCR resin in

certain applications, up to 2.5x more PCR can

be used when mixed with SMX and still yield

the same strength.

“SMX Technology lets your

end-products move

beyond traditional

boundaries of performance”

PCR booster:

P.20

Chemicals

Circular Economy Roadmap: Chemical Recycling

• Co-develop recycling technology and establish Circular

Plas Co. Ltd. with a local partner

• Technology utilizes catalyst, resulting in energy savings

from lower processing temperature

• Able to used mixed plastic waste without sorting

• Produce recycled feedstock for green polymer production

• Lower carbon footprint vs. plastic waste-to-incineration

or waste-to-landfill

• Green polymer produced is “Like-virgin” plastic resin and can be used to produce food-grade packaging

• 5,000 tons per year capacity, with scope for further expansion

Thailand’s first chemical recycling pilot plantSorting&

Shredding

Chemical Recycling

Recycled feedstock

Petrochem plant

New Plastic

Post-consumer

plastic

Recycled resin demand is likely to grow at double the pace of conventional resin

P.21

Chemicals

2012 2013 2014 2015 2016 2017 2018 2019 2020

HDPE SCG Price HDPE Commodity Price

Continued R&D focus through inhouse research,

partnerships, and acquisitions enables the creation of

HVA products with superior selling price and profit

Innovation network supports the creation of HVA with price premium over commodity

Fundamental Chemistry

Advance Material Laboratory

Advance Material Market Research

New Plastic Application

Composite Materials Lab

Catalyst

Anti Microbial Dental Plaster

ASTEC 1-4, AMTEC, I2P Internal Lab Center

Joining Global cement &

concrete consortium

P.22

Chemicals

• A hub of innovative ideas answering the

needs of consumers

• A place for SCG to collaborate ideas and

design with customers, and run prototype,

quality testing, computer simulations

• Helps expedite production development process prior to real manufacturing

SCG’s Idea-to-Product center (I2P) provides customer interface and product

development

P.23

Chemicals

Key Attributes:

SCG Chemicals is 1 of the 2 players globally

Less material consumption for sustainable future

10% thinner and more hydraulic flow volume

10% higher throughput, improving efficiency and shortening project time while increasing project savings

50% higher abrasion resistance

Premium pricingSc

an fo

r V

ideo

serve solid demand for construction & infrastructure

Used in Industrial application (Water & Gas & Mining)

first ever 20-km submarine water Pipeline to solve

water scarcity in SAMUI Island (Thailand)

PE is one of the best material used in pipe industry

PE 112, the first PE black compound

SCG’s HVA for infrastructure

P.24

• Excellent substitute for metals accommodates a diverse

range of designs • Thinner walls and lighter weight without compromising

the strength, thus reducing the total weight of the vehicle,

this offers fuel economy and greater eco-friendliness in terms of energy consumption and Co2 reduction

• Resin helps lessen gate string defects and improves

the overall quality of the product, which in turn reduces

waste and Co2 emissions during production

PP compound

SCGTM PP P1085J

SCG’s HVA for automotive industry

• The largest PP Compound manufacturer for automotive

parts in ASEAN with 25 years of experience as a market

leader.

• Capability of material development based on car

manufacturer specifications

Tape and Sheet

Rod & Bar Seat structure

Battery cover & housing

Samples of Light-weight Parts Made from Fiber Composites

Auto brands that

have been

supplied with PP

Compound

P.25

Chemicals

PP Meltblown Resin to seize new opportunity in

healthcare

• First PP Meltblown production in ASEAN to be

used in the production of melt-blown fabric.

• Anti-viral coating “V-Guard Filter”, used in in

surgical mask to prevent particle dust (PM 2.5) and virus.

• Surgical mask application ready to commercialize;

next step is Personal Protective Equipment (PPE)

and air filter.

SCG’s HVA for medical applications

PP non-woven fabric PP melt-blown extrusion

Softer and thicker PP non-

woven fabric

Example of

Products for

meltblown fabric

P.26

Chemicals

Capitalizing on extending chemicals peak cycle

Key enablers:

Strong economic data is expected on the back of global vaccination efforts

US$1.9trn stimulus should bring the U.S. back to normal rapidly

Robust demand enables steadily high HDPE spread even amid rising oil price

Supply tightness from U.S. cold front and container shortage

Ongoing requirement for consumption-related plastic

Chemicals

747 734

673

716

468500

5.0%

4.0%3.5%

6.5%5.8%

4.7%4.2%

3.0%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

peak

C2 Supply growth HDPE gap (US$/ton)

trough

C2 global supply growth (RHS)

peak

708

(Mar 19/21)

P.27Chemicals: HDPE-Naphtha Price Gap (Commodity grade)

Chemicals

HDPE-N

Naphtha

Ethylene

HDPE

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20Q1/21

To Date

This

Week

HDPE- Naphtha 573 539 457 301 398 486 522 592 585 708

Spread ($/ton)

HDPE-C2 165 256 150 101 159 203 171 133 179 285

C2-Naphtha 409 283 308 201 239 283 351 460 406 423

Brent ($/bbl) 64 68 62 63 51 33 43 45 61 67

Naphtha ($/ton) 519 541 494 540 440 274 397 408 558 602

468

Note: Prices refer to SEA regional prices as of 19 Mar 2021

$/ton

0

300

600

900

1,200

1,500

1,800

500

P.28Chemicals: PP – Naphtha price gap

0

300

600

900

1,200

1,500

1,800

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 1/19/2021 to date

PP-N

Naphtha

Propylene

PP

$/ton

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20Q1/21 This

To Date Week

PP-Naphtha 611 599 590 516 551 601 577 736 796 888

Spread ($/ton)

PP-C3 292 344 222 200 205 230 191 257 364 340

C3-Naphtha 320 255 368 316 347 370 386 479 432 548

Brent ($/bbl) 64 68 62 63 51 33 43 45 61 67

Naphtha ($/ton) 519 541 494 540 440 274 397 408 558 602

579

Note: Prices refer to SEA regional prices as of 19 Mar 2021

616

P.29Chemicals: PVC

Chemicals

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20Q1/21

To date

This

Week

PVC-EDC/C2 335 335 445 449 437 398 455 524 597 769

Spread ($/ton)391

Note: Prices refer to CFR ASIA as of 19 Mar 2021

0

300

600

900

1,200

PVC

EDCPVC-EDC/C2

Ethylene

$/ton

454

P.30Cement-Building Materials: Cost, Customer adaptation and Transformation

Cement and

Building Materials

BIMLY Technology,

seamless

collaboration

and waste reduction

Services and

Solutions Offerings

Service & SolutionsCost Management Retail

Offline Retail Outlets &

Online Market Platform

Renovation

Sustain and Drive Margin

Energy pellets replacing

coal

P.31

Revenue

Delivered core profit growth of 18% in 2020 amid overall demand weakness

Performance Highlights:

EBITDA and profit increased y-o-y, as a result of continuous efficiency improvement strategy.

This was despite overall demand weakness caused by COVID-19 pandemic, as shown by revenue decrease.

Sales of service & solution increased to 5% of top line in FY2020 (FY2019 = 3%)

EBITDA Profit

Total revenue -7% y-o-y

Sales of service &

solution up from 3%

to 5% of revenues

Cement and

Building Materials

Core EBITDA 2020

+10% y-o-y*

2019 2020

21,00921,591

24,40522,178

Core Profit 2020

+18% y-o-y*

2019 2020

5,4556,422

8,7937,449

*Without Severance pay

adjustment, impairments, and

ceramics business restructuring

65% 66%

29%27%

6%7%

2019 2020

184,690171,720

P.32

Lock in coal price and increase alternative fuel use

Secured and priced 60% of planed coal consumption with plans to do more

• Increase proportion of alternative fuel from agricultural waste and other waste in cement manufacturing process from 19% in 2020 to 25%

in 2021

Cement and

Building Materials

Increase self - generated power

Increase solar capacity from 67 MW in 2020 to 94 MW in 2021, in

addition to 108 MW in Waste Heat Power Generation(WHG)

Adopt lean and ID4 to increase OEE* and

Productivity per head

By digitized throughout value chain e.g. Smart Maintenance

System and Advance Process Control

OEE 3% y-o-y

Productivity per head 28% y-o-y

agricultural

waste

Energy

Pellet

RDF Indrustrial

Waste

*Overall Equipment Effectiveness (OEE) in 2020 = 2%

FY 2020 productivity increase per head = +17% y-o-ySelf-generated power in 2019 = 42 MW

More efficiency improvements planned for 2021Carry out continuous efficiency improvement to sustain profitability and competitiveness

P.33

Cement and

Building Materials

Provide customers with Innovation & Service Solutions

Construction Solution

Maintain leadership in

government and infrastructure

segment via “cutting-edge”

technologies

Living Solution,

A total home renovation solution that

creates everyone’s dream space by

delivering ultimate living experience

P.34

Cement and

Building Materials

Increase the number of RETAIL

FRANCHISE STORES to 18 in 14

key provinces in 2020 with an aim to

increase coverage to more than 30

provinces in 2021.

3

1

18 Stores

2019

2020

11 Stores

SCG HOME BOONTHAVORN

signed MOU with Hardware

House Co. Ltd. to expand

products offerings to include

hardware and hand tools.

Q-Chang’s GMV, on-demand living

services & solution platform, grew 4X in

2020.

2 4

In 2020, gross merchandise

volume (GMV) of the Active

Omni-Channel (SCGhome.com)

grew 6X with over 10,000 SKUs

available.

Air conditioner

cleaning serviceGarage

Installation

Insulation

Service

Re-Roof

Service

Leading Solutions

5NocNoc, marketplace for home

building and improvement, grew 6x with

a total of 114k SKUs on offer in 2020

SCG HOME

BOONTHAVORN

Cambodia plans to

launch a new flagship

store in H2/21.

Transformation to Retail and Active Omni-Channel

P.35Domestic Market Situation: Thailand’s cement demand dropped -1% in 2020 but showed signs of recovery in January-February 2021

+6%+8%

+12%

+6% +6% +7%

0%2%

-7%

7%

1% 0%

-3%-1%

+4%

+2% 0% +1%-1%

1% -4%2%

1%

-7%

-25%

-15%

-5%

5%

15%

25%

Governmental38% - 42% of volume

Residential & Commercial 58% - 62% of volume

FY2018

+3% y-o-yThailand’s Cement

Demand Growth

FY2019

+1% y-o-y

2020

-1% y-o-y

Cement and

Building Materials

P.36

3 8 7

39

69

62

10 8 11

60

113

98

0

20

40

60

80

100

120

Laos Cambodia Myanmar Thailand Indonesia Vietnam

Export

MT

Export

93

51

2020 Demand

2020 Capacity

Regional Market Situation: Demand softness amid Covid-19 pandemic in 2020, with vaccination programs on the horizon

SCG’s Capacity (MT) 1.8 2.0 1.8 23.0 1.8 3.2

Demand Growth

FY2020 - -5% -13% -1% -9% -5%

FY2019 - +31% +2% +1% 0% -2%

Ex-factory price (Q4/20)

US$/ton $35-$40 $65-$70 $65-$70 $55-$60 $40-$45 $45-$50

Semen Indonesia 52*

Indocement 26

Others 25

SCG 23

Siam City 16

TPIPL 13

Others 8

*Semen Indonesia: 15 MT was from Lafarge Holcim Cement and

Building Materials

P.37

ASEAN LEADER IN INNOVATIVE &

SUSTAINABLE PACKAGING SOLUTIONS

Growth

through organic

expansion, and

merger & partnership

(M&P)

Progressive towards

enhanced “Solutions-

based” business

model

“Consumer-linked”,

with strategies to meet

dynamic changes

SCG PACKAGING: Growth Execution, T-Model, Sustainable practice

Sustainable

business model and

practice

P.38BUSINESS SUMMARY in 2020

• Embrace highest safety level for

employees, production & products

• Stabilize & optimize supply chain

against customer’s demand

volatility

Proactive Measures

• Ensure supply chain

dependability

• Proactively calibrate forecasting

• Launch alluring and efferent

products & services

• Elevate customers’ experience

with “Inspired Solutions Studio”

• Complete IPO equity raising, &

start debenture filing process

• Execute post-IPO M&P of SOVI, &

continued brownfield expansions

• Elevate synergy at FAJAR & VISY

• Commercialize recyclable products

KEY HIGHLIGHTS

Serving Customers

Growth & Sustainability

Financial Performance

P.39Growth strategy – Organic and Inorganic via Merger & Partnership

Successfully executed more than 18 deals in past 10 years2

Thailand

Fibrous chainIntegrated packaging chain

Prepack Indocorr Conimex

2014 2015 2017 2017 2018 2019 2019 2020

Organic Inorganic

GDP Plus

(+ 1-2% organic growth1)

• Grow wallet share with

existing customers

• Increasing ASP given

value-added products

Strategic fit

• Scale

• Geography (ASEAN Plus)

• Market share

• Access to customers

• Products

• Technology

• Integration level

Apply proven T model from Thailand to overseas

Future

growth

2021

revenue

Bolt-on

M&Ps

Equity

financing

Bolt-on

M&Ps

Source: Company filings, Frost & Sullivan

Note:

1. Based on the average historical organic revenue growth

2. As of 31 December 2019

FUTURE

GROWTH

2021 2021(SPA signed)

P.40

400,000 Ton/year

Final Completion

Q2/2021

Packaging paper

220,000 Ton/year

Final Completion

Q3/2021

53 million m2 /year

Final Completion

Q3/2021

84 million m2 /year

LATEST MERGER &

PARTNERSHIP

(M&P) after IPO

M&P of SOVI

(2,700 MB)

A leading consumer Packaging to

strengthen SCGP consumer goods

portfolio especially food & beverage

M&P of Go-Pak UK

(4,000-5,500MB)

Food service packaging business to

strengthen "T-Model" in Vietnam, focusing

on downstream packaging expansion

M&P of DUYTAN

(Expected closing Mid-2021)

Expansion of rigid plastic packaging

in Vietnam. DUYTAN’s capacity

116,000t/y, Revenues Bt6.1bn

ORGANIC

EXPANSION

Flexible Packaging

Completion in early

Q4/2020

Indonesia PhilippinesVietnam Thailand

DEC 2020 JAN 2021 FEB 2021

UPPC

Paper machine#3

Fajar

Plant#2

Batico

Plant#2Prepack

Plant#2

Growth executions – Upstream and Downstream

P.41

50% 35%

Packaging paper Corrugated boxmarket share market share

• Packaging solutions

• Foodservices

• PPP

• Fiber-based packaging

• Packaging paper

• Recycle stations

27%

13%1

25%

4%

25%


• Foodservices2

• PPP


• Packaging paper

• Recycling stations


• Foodservices

• PPP


• Packaging paper



• Foodservices

• PPP


• Packaging paper


T-Model enhances platform’s competitiveness

Proven T-model

Malaysia to be export hub for

foodservices products for the region

Replicate proven T-model from Thailand to oversea<<

Thailand Vietnam Indonesia Philippines

As-is

To-be

32 m Foodservices

Note :

1. With expected consolidation of SOVI in December 2020

2. With expected finalize share purchase agreement GO-PAK in December 2020

Progressive towards enhanced “Solutions-based” business model

70 m 97 m 271 m 108 m

To enlarge T-model To leverage on large scale of upstream

& accelerate downstream expansion

Forward integration through the chain with M&P

Organic InorganicOrganic Inorganic Organic Inorganic Organic Inorganic

2019 plant2machine3plant2 plant2

2020

2021

2021

Indocorr

2017

2019

P.42Sustainable practice – Circular economy model and raw material sourcing

P.43SCG: A world-class ESG company

Commitment to comply via specific target

A Member of WBCSDsince 2000

Number #1 in the world and ranked in

the Gold Class as Industry Leader in

Construction Materials of Dow Jones

Sustainability Indices (“DJSI”) in 2020

The first ASEAN member of the DJSI since 2004

P.44Climate Resilience : Explore New Opportunity and Innovation towards Net Zero

StrategiesIncreasing share of

biomass and

renewables fuel

Enhancing Energy

Efficiency

R&D of technology to

achieve Net Zero

Developing products

services & solutions that

reduce emissions

Forestation &

rehabilitation

as Carbon Sink

Raising awareness among employees and stakeholders

Strive to comply with Paris Agreement’s goal of limiting global temperature increase to well-below 1.5’C following science based target

Applying economic tools

to promote GHG emissions

reduction

Drive to Net Zero emission by 2050

Solar Energy

System Solutions

Low carbon

hybrid cement

SCG 3D Forest

project

AI in Energy

ManagementEnergy saving by

over 40,000GJ/yr

P.45

10.9%

10.7%10.5%

11.4%

13.6%

14.3%

2015 2016 2017 2018 2019 2020

2015 2016 2017 2018 2019 2020

SCG Implementation: 14.3% in Alternative Fuel use in 2020

38 solar farms producing 126.27 Gigawatt-hours

in renewable power, saving 73,527 Tons of CO2/year

Energy Mix : Rising alternative fuel consumption and renewable power production

P.46

Product: SCG Green Choice

Target to achieve 67% of revenue

from environmentally-friendly product

sales by 2030

Water withdrawal reduction

Circular Economy: Make, Use, Return

Target to achieve

water withdrawal

reduction 23% by 2025

Waste collection & reuse

MODULAR-PRECAST-CUT TO SIZE

Reduce waste from construction

Mono-material for fully recyclable flexible

packaging

100% recyclability while maintaining functional properties

FEST FOOD PACKAGING

Substitute for Styrofoam containers,

recyclable food-grade products

In 2020, SCG has 60

partners, helping us

aggregate 120 tons of used

paper back for recycling at

SCG plant

Innovation: Designed for sustainable development

Chemicals Recycling Plant

REDUCE

Increase water

usage efficiency by

improving

manufacturing

process

Invest in R&D to

boost waste water

treatment for recycle

Thailand’s 1st

self-declared eco

label according to

ISO14021

Reserve waste

water and recycle

water to be reused

before discharging

to the public

Thailand’s 1st demonstration plant

in Rayong with production capacity of approximately 5,000

tons per year, where a capacity expansion plan is in sight.

Packaging Recycling Plant

P.47Agenda

Consolidated overview

Business updates

Chemicals

Cement-Building Materials

Packaging

World-class ESG

Appendix

P.48SCG’s capacity

Note: updated Jan/21

P.49Incremental capacity

Note: updated Jan/21

• Fajar is 1.4MT packaging capacity

• VISY packaging capacity is in 2019 (Rigid Packaging)

• SOVI consolidation in Jan/21

P.50SCG Cash Flow Statement

Unit: Million THB

P.51Segmented Financials: Revenue & Assets

Revenue (MB) 2013 2014 2015 2016 2017 2018 2019 2020

Consolidated 434,251 487,545 439,614 423,442 450,921 478,438 437,980 399,939

Cement-Building materials 174,642 185,423 178,988 170,944 175,255 182,952 184,690 171,720

Chemicals 209,997 248,118 200,433 188,163 206,280 221,538 177,634 146,870

Packaging 59,135 64,614 70,907 74,542 81,455 87,255 89,070 92,786

Assets (MB) 2013 2014 2015 2016 2017 2018 2019 2020

Consolidated 440,633 465,823 509,981 539,688 573,412 589,787 634,733 749,381


Chemicals 192,063 183,884 185,583 193,465 193,183 213,263 230,543 283,614

Packaging 65,169 73,987 83,218 85,369 91,312 93,246 139,513 172,429

P.52Segmented Financials: EBITDA & Profit for the Year

EBITDA (MB) 2013 2014 2015 2016 2017 2018 2019 2020

Consolidated 61,265 66,493 82,690 97,816 102,080 86,641 75,105 74,600


Chemicals 20,342 26,142 42,900 60,713 63,656 46,117 32,262 30,965

Packaging 9,473 9,718 10,831 10,884 12,431 14,866 15,159 16,884

Profit for the Period (MB) 2013 2014 2015 2016 2017 2018 2019 2020

Consolidated 36,522 33,615 45,400 56,084 55,041 44,748 32,014 34,144


Chemicals 11,292 12,461 28,488 42,084 41,273 29,166 15,480 17,667

Packaging 3,587 3,448 3,463 3,565 4,719 6,319 5,268 6,457

Thank You

For further details, please contact [email protected]

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