Siamgas & Petrochemicals Public Co. Ltd. · SET:SGP

Siamgas & Petrochemicals Public — Q4 2018 Earnings Presentation

43 slides from Siamgas & Petrochemicals Public's earnings presentation, May 2019

  1. Slide 1: Q4 2018 Performance Results

    SliahtitAas Q4|2018 PERFORMANCE RESULTS PRESENTATION FOR INVESTOR & ANALYST

  2. Slide 2: Disclaimer

    The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Siamgas and Petrochemicals Public Company Limited (“SGP” and shares in SGP, “shar

  3. Slide 3: Agenda

    AGENDA () SEMGRS * THAILAND BUSINESS OVERSEA BUSINESS e FINANCIAL RESULTS BUSINESS OUTLOOK ~ Q&A

  4. Slide 4: Shareholder structure

    61.3% MANAGEMENT Fund Thai NVDR 14.3% 6.5% Retail 17.9% 38.7% PUBLIC Latest book closing : On 31 AUG 2018 4

  5. Slide 5: Company history and milestones

    Business acquisition Invest in Vietnam | Supergas Business acquisition 10 MW. Power Plant Founded Founded Singapore | Singgas Vietnam | Citygas N. and transmission line the company Marine & land logistic China | Sinosiam Malaysia | Mygaz in Myanmar 1 2 2 2 2 9 0 0 0 0 7 0 1 1 1 6 5 0 3 8 2 2 2 2 0 0

  6. Slide 6: Business operation group

    BUSINESS OPERATION GROUP AILAND LIQUEFIED PETROLEUM GAS LIQUEFIED PETROLEUM GAS (LPG) (LPG) + SINGAPORE ROAD TRANSPORTATION + CHINA - aaam + MALAYSIA (14 MARINE TRANSPORTATION r rd . VIETNAM COMBINE CYCLE POWER CYLINDER § SHANA MANUFACTURING ; [eae MYANMAR OIL RETAIL BUSINESS 4 DIESEL POWER PLANT e

  7. Slide 7: Thailand and Overseas expansion

    Thailand Expand petrol with LPG stations. Expand Filling plants. Overseas The Company is constructing terminal and filling plants in Myanmar. The Company is constructing filling plant in Penang Malaysia. The Company is planning to construct LPG terminal in Indonesia and Bangladesh. 7

  8. Slide 8: Project LPG Terminal Group

    PROJECT LPG TERMINAL (@) GROUP AT. NORTHPORT, MALAYSIA SELAMAT DATANG KE TERMINAL A GAS PETROLEUM CECAIR PELABUHAN KLANG Z Siamgas and Petrochemical Public Company Limited

  9. Slide 9: Terminal North Port

    TERMINAL NORTH PORT (@) GROUP PROJECT SUCCESS >>> Siamgas and Petrochemical Public Company Limited ©)

  10. Slide 10: Terminal North Port

    TERMINAL NORTH PORT PROJECT SUCCESS >>> LPG FILLING HALL 95 % Siamgas and Petrochemical Public Company Limited

  11. Slide 11: Terminal North Port

    TERMINAL NORTH PORT (@) SROUP PROJECT SUCCESS >>> Siamgas and Petrochemical Public Company Limited (1)

  12. Slide 12: LPG business and other business locations

    LPG business OTHER business SHANTOU, SOUTH CHINA | SOGEL HAIPHONG | CITYGAS NORTH ZHUHAI, SOUTH CHINA | SINOSIAMGAS MYANMAR, MAWLAMYING | MLIPP POWERPLANT 230 MW. MYANMAR, ANIN | SMD POWERPLANT & TRANSMISSION LINE 10 MW. HO CHI MINH | SUPERGAS THAILAND | SIAMGAS & UNIQUEGAS EAST MALAYSIA | MYGAZ MAL

  13. Slide 13: Agenda

    AGENDA () SEMGRS *« BUSINESS OVERVIEW * THAILAND BUSINESS * OVERSEA BUSINESS * FINANCIAL RESULTS * BUSINESS OUTLOOK ~ Q&A

  14. Slide 14: LPG supply and distribution chain

    SGP COMMERCIAL FILLING USERS PLANTS GAS SEPARATION COOKING LPG REFINERIES RETAILERS PLANTS AGENT & FILLING HOUSEHOLD USERS PLANTS SGP INDUST. TERMINALS INDUSTRIAL & USERS DEPOTS LPG IMPORT SGP AUTO-LPG AUTOMOTIVE SGP STATIONS MOTORISTS AGENT AUTO-LPG STATIONS 14

  15. Slide 15: Vessels, terminals, filling plants and stations

    25 8 500 vessels terminals roadtankers 5.Lampang 6.Khonkaen 4.Nakornsawan 1.Bangkok Floating Storage 2.Samutprakan 3.Chachoengsao 7.Suratthani FILLING PLANT & AUTOGAS STATION 8.Songkhla Company Filling Plants x 43 Agent Filling Plants x 144 Company Autogas Stations x 44 Agent Autogas Stations x 521

  16. Slide 16: SGP's market share in Thailand - all sectors

    LPG Sales Volume (‘000 tons) | ALL SECTORS SGP’s market share in Thailand 23.6% 24.1% 24.4% 24.6% YoY: Total -3.0% | SGP -2.2% 4,409 -5.3% 4,177 -1.6% 4,108 -2.4% 4,011 QoQ: Total -0.2% | SGP +0.04% 3,370 3,171 3,107 3,027 1,034 1,004 1,002 -3.3% -0.4% -1.7% 1,039 1,005 1,001 984 783 759 757 251 245

  17. Slide 17: SGP's market share in Thailand - cooking

    LPG Sales Volume (‘000 tons) | COOKING SECTORS SGP’s market share in Thailand 29.1% 29.3% 28.6% 27.5% COOKING PORTION 2,110 2,151 2,164 YoY: Total -1.1% | SGP -3.8% 2,094 +0.8% +1.9% +0.6% QoQ: Total +0.1% | SGP +0.6% 1,484 1,491 1,534 1,570 60% 552 545 545 +1.4% -0.4% -3.5% 610 619 616 594 397 397

  18. Slide 18: SGP's market share in Thailand - automotive

    LPG Sales Volume (‘000 tons) | COOKING SECTORS SGP’s market share in Thailand 16.9% 16.7% 17.5% 19.5% AUTOMOTIVE PORTION 1,731 YoY: Total -10.2% | SGP -2.0% -15.3% 1,466 -10.0% -11.3% 1,319 1,170 QoQ: Total -1.0% | SGP -1.5% 1,439 23% 1,221 1,089 942 317 288 285 -16.3% -5.9% -0.9% 292 245 230 228 26

  19. Slide 19: SGP's market share in Thailand - industrial

    LPG Sales Volume (‘000 tons) | COOKING SECTORS SGP’s market share in Thailand 23.4% 23.6% 24.3% 23.9% INDUSTRY PORTION YoY: Total +4.4% | SGP +3.9% 677 +2.8% +6.3% 638 +6.0% 584 600 17% QoQ: Total +0.4% | SGP +0.3% 483 515 448 459 165 171 172 +3.7% +9.3% +4.4% 155 162 125 130 131 137 142 39 41 41 20

  20. Slide 20: Agenda

    AGENDA () SEMGRS *« BUSINESS OVERVIEW * THAILAND BUSINESS * OVERSEA BUSINESS * FINANCIAL RESULTS * BUSINESS OUTLOOK ~ Q&A

  21. Slide 21: Saudi Aramco CP price changes by year

    9 5 8 4 6 2007 3 2008 7 2009 2010 6 +385.0 -535.0 +387.5 +200.0 7 7 6 6 2 2011 5 2012 5 2013 2014 10 -130.0 +185.0 +182.5 -602.5 6 6 6 4 2 6 4 2 2015 6 2016 6 2017 2018 -92.5 -67.5 +180.0 -150.0 21

  22. Slide 22: Propane, butane and Brent crude prices

    Propane [C3] Butane [C4] USD/TON 700 635 655 2017 2018 600 600 580 580 570 570 595 600 560 570 Q1 +140.0 -107.5 655 525 520 495 490 500 505 505 465 470 600 470 500 460 575 575 590 590 560 555 580 Q2 -152.5 +87.5 525 540 415 420 510 390 390 500 480 365 480 480 475 490 400 435 430 420 445 430 440 Q3 +

  23. Slide 23: Offshore trading sales volume

    Sales volume : tons 946,394 Sell to customer in Macau, Hong Kong, Philippines, Vietnam, 736,544 South China, Bangladesh, Cambodia, etc. 664,255 663,564 589,188 543,452 463,104 56,906 2010 2011 2012 2013 2014 2015 2016 2017 2018 +713.8 +43.4 +42.5 -29.9 -11.2 -7.8 +35.5 +28.0 % % % % % % % % 23

  24. Slide 24: Singapore sales volume

    Sales volume : tons 25,683 24,375 21,401 21,772 21,866 Small market with good margin 21,041 Consumer seeks quality product & 17,872 service over price concern 8,793 2010 2011 2012 2013 2014 2015 2016 2017 2018 +103.3 +43.7 -5.1 -13.7 +1.7 +1.7 +0.4 -2.1 % % % % % % % % 24

  25. Slide 25: China sales volume

    Sales volume : tons 1,219,477 1,200,167 Large import LPG market 909,874 in South China Advantage over competitors with large cavern storage Large sale volume with continuous growth rate 338,229 345,645 121,705 87,969 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 -27.7 +284.5 +2.2 +163.2 +31.9 +1.6

  26. Slide 26: Vietnam sales volume

    Sales volume : tons High competition with high 185,274 growth potential 166,814 Consumers gradually switch to LPG instead of fire wood 143,628 67,388 44,785 26,496 19,972 12,380 2010 2011 2012 2013 2014 2015 2016 2017 2018 +114.0 -24.6 +237.4 +173.9 -10.0 -13.9 -68.8 -29.4 % % % % % % % % 26

  27. Slide 27: Malaysia sales volume

    Sales volume : tons 133,642 116,790 91,696 95,600 Market leader with growth potential in East Malaysia 52,592 Expand market to West Malaysia - - - 2010 2011 2012 2013 2014 2015 2016 2017 2018 +74.4 +4.3 +22.2 +14.4 +9.6 % % % % % 27

  28. Slide 28: Total overseas sales volume

    Total 2,156,314 2,025,809 Vietnam 1,782,877 Singapore 1.3% 0.9% Malaysia 6.1% 1,428,978 1,307,220 797,880 Wholesale 629,177 39.0% 78,079 China 2010 2011 2012 2013 2014 2015 2016 2017 2018 52.8% +705.8 +26.8 +79.1 -8.5 +36.4 +13.6 +6.4 +12.2 % % % % % % % % 28

  29. Slide 29: Power business in Myanmar

    Consistent Income Capacity : MW. - High demand in electricity 1,081,187 2017 2018 29

  30. Slide 30: Combined cycle power plant

    230 MW. COMBINE CYCLE POWER PLANT 1.LM 2500 GT G(1) 2.HRSG LM2500 G(1)Boiler a-Rramie 6B iT G2) 3.HRSG Frame 6B G(2)Boiler 5.-MCC Building For Phase(1) Siamgas and Petrochemical Public Company Limited

  31. Slide 31: Combined cycle power plant

    230 MW. COMBINE & ) SIAMGAS —! 6.Steam Turbine ST G(3) 8.Main Control Office 10.66 Control Center 7.Cooling Tower for Phase(1) 9.66 kv Switch Yard 11. 230 Control Office Siamgas and Petrochemical Public Company Limited

  32. Slide 32: Combined cycle power plant

    230 MW. COMBINE CYCLE POWERPLANT GROUP — 12. 230 kv Switch Yard 13. DAW & DIW Tank for Water Treatement 14. Frame 6B GT G(4) For Phase(2) 15. HRSG Frame 6B G(4) Boiler Si s and Petrochemical Public Company Limited Se

  33. Slide 33: Combined cycle power plant

    W ) SIAMNGAS co 18. Frame 6B GT G(5) For Phase(2) 16. Condensate for Phase(2) . 17. Steam Turbine for Phase(2) 19. HRSG Frame 6B G(5) Boiler 20. Cooling Tower Phase(2) Siamgas and Petrochemical Public Company Limited Gs)

  34. Slide 34: Agenda

    AGENDA () SEMGRS *« BUSINESS OVERVIEW * THAILAND BUSINESS * OVERSEA BUSINESS * FINANCIAL RESULTS * BUSINESS OUTLOOK ~ Q&A

  35. Slide 35: Revenue breakdown by business

    Thailand 25.7% Offshore Oversea business 30.3% 42.8% Logistic Other (Service & Other & Dividend) 2017 Thailand 35.6% Oversea 64.4% 0.9% 0.4% 20.1% 2018 34.1% Thailand 31.5% 44.3% Oversea 68.5% 0.8% 0.7% 35

  36. Slide 36: 2018 consolidated revenue of Bt.69,103 m, up 15.9% yoy

    2018 Consolidated revenue of Bt.69,103 m shows a 15.9% yoy growth yoy +15.9% yoy +2.3% qoq -6.9% 69,103 840 62,157 59,629 58,339 980 19,246 886 757 17,927 17,517 111 48,378 Other 16,186 246 228 15,744 684 265 218 Oversea 36,903 34,661 38,403 47,329 27,902 12,115 10,803 13,807 12,197 10,521 Local TH

  37. Slide 37: Full year and quarterly EBITDA

    FULL YEAR AND QUARTERLY EBITDA [BT.M] 6,000 5,000 4,000 3,000 2,000 1,000 2018 Consolidated EBITDA of Bt.2,651 m shows a -48.9% yoy decline EBITDA —@—EBITDA MARGIN , 12% 2,000 - EBITDA —@—EBITDA MARGIN 5,193 1,690 | 10% 1500 - 1,000 - 500 - 116. Q4I2017 Q112018 Q212018 Q3/2018 (500) - 2014 2015 2016

  38. Slide 38: Gross profit and net profit by year and quarter

    1 2 3 4 Gross profit & Net profit by year Gross profit & Net profit by quarter 1 2 3 4 38

  39. Slide 39: 35,804 35,804 31,458 31,458

    35,804 35,804 31,458 31,458 39

  40. Slide 40: Agenda

    AGENDA () — *« BUSINESS OVERVIEW * THAILAND BUSINESS * OVERSEA BUSINESS * FINANCIAL RESULTS * BUSINESS OUTLOOK ~ Q&A

  41. Slide 41: LPG sales volume outlook 2019

    LPG Sales Volume (Tons) Sales volume (TONs) 2016 2017 2018 Outlook 2019 % Growth Thailand 1,016,965.56 1,030,660.58 1,010,383.14 1,050,000.00 3.9% SGP - Thailand Offshore Trading 543,451.66 736,544.45 942,945.98 1,150,000.00 22.0% SGP Offshore Trading China 1,200,167.37 1,219,476.64 1,277,786.33 1,3

  42. Slide 42: Dividend policy and historical dividend payment

    Dividend Policy Historical dividend payment The Company has established the policy to pay dividends to the 2018 0.25 0.20 shareholders at the rate of not less 2017 0.50 1.00 than 40% of the net profit after corporate income tax, accumulated 2016 0.15 0.35 loss brought forward (if any) and 2015 0.20

  43. Slide 43: Questions are welcomed!

    QUESTIONS ARE WELCOMED !

Siamgas and Petrochemicals Public Company — Q4 2018 Earnings Presentation on 6ix