Quality that drives your Business
Company Presentation19 June 2020
Corporate Finance & Investor RelationsSET Opportunity Day Q1 2020
Quality that drives your Business
Agenda
▌Company Overview
▌Key Investment Highlights
▌Financials
▌Outlook
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Quality that drives your Business
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Quality that drives your Business
• A ranking (21st)* Top Chemical Distributor in the Asia Pacific Region and ranked (125th)* globally according to NACD
• Connecting the local manufacturing sector with regional and global supplies
• ~700 active customers
• Comprehensive portfolio of chemical products with additional products being added regularly
• Around 120 employees with ~1/5 being dedicated Sales and Marketing employees
• Dedicated and Diverse logistic infrastructure enables us to meet customer requirements
Company OverviewUPC at a glance
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*Source: ICIS - National Association of Chemical Distributors (NACD) Ranking June 2019
Quality that drives your Business
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Company OverviewBusiness Structure
Quality that drives your Business
Purchase Transport StorageFilling
Packaging Labeling
Mixing Blending
FormulatingCustomer Support
Inventory Management
Bundling Transport
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Company Overview – Business ModelUPC fulfill a value-adding function in the supply chain
Local Source
Imports
StorageRepackaging
BlendingWarehousing
LogisticsBoth bulk and individual
(Bulk, IBC, Drum, Pail, and Gallon)
Market IntelligenceAll-Style Delivery
Sales & Technical Services
UPC’s Service & Solution
Clients
ProducerUser
Quality that drives your Business
Purchase, transport and storage of large quantities of diverse chemicals■ Connected to a large network of local and global chemical manufacturers■ Comprehensive solvent product portfolio■ Continuously expanding selection of products
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Company Overview – Business ModelUPC fulfill a value-adding function in the supply chain
Purchase Transport StorageFilling
Packaging Labeling
Mixing Blending
FormulatingCustomer Support
Inventory Management
Bundling Transport
ProducerUser
Quality that drives your Business
• Repackaging from large to smaller quantities• Filling, labelling, barcoding, palletizing, and tracking• Engaging customers with over 15 dedicated local sales
employees• Mixing and blending according to customer’s
requirements• Formulation and technical support and collaboration with
suppliers and special consultants.
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Company Overview – Business ModelUPC fulfill a value-adding function in the supply chain
Purchase Transport StorageFilling
Packaging Labeling
Mixing Blending
FormulatingCustomer Support
Inventory Management
Bundling Transport
ProducerUser
Quality that drives your Business
• Leverage our logistic capabilities to meet customer delivery requirements
• Provide just-in-time delivery • Mixed / Bundled delivery of products• Utilizing transport for drum return service
• Provide vendor-managed inventory service• Offering one stop solution for customer solvent needs
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Company Overview – Business ModelUPC fulfill a value-adding function in the supply chain
Purchase Transport StorageFilling
Packaging Labeling
Mixing Blending
FormulatingCustomer Support
Inventory Management
Bundling Transport
ProducerUser
Quality that drives your Business
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Company OverviewKey Characteristics
Business model
Product portfolio
Customer base
Customer order size
Delivery method
Fixed assets / flexibility
Cost base
Raw material prices
Chemical Producer
B2B Services / Solutions Manufacturing
Diverse / Wide Specific / Narrow
Broad in diverse end-markets Narrow
Small Large
Less-than-bulk or truckload Truckload or larger
Low intensity / Multi-purpose High intensity / Narrow purpose
Variable Fixed
Market Contract
Quality that drives your Business
Agenda
▌Company Overview
▌Key Investment Highlights
▌Financials
▌Outlook
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Quality that drives your Business
Understanding of Local Market Conditions (> 39 years of experience)
Diverse regional supply network
Diverse end-markets
Proven Track Record – Branded Distributor of Esso (Thailand) PCL since 2005
Sound Financials
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Key Investment HighlightsUPC – A strong foundation
Quality that drives your Business
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Key Investment HighlightsDiverse Regional Supply
•Thailand Singapore China
Korea Japan Taiwan
India Europe USA
Quality that drives your Business
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Key Investment HighlightsDiverse End Market
Agricultural Chemicals
Adhesives Automotive Polymer Synthesis
Rubber Printing Paints & Coatings
Packaging Construction Cosmetics Electronics Industrial Cleaning
Medical, Consumer, Household
Textile and Furniture
- Denotes Major End Markets
Quality that drives your Business
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Key Investment HighlightsUPC Customer Base – Revenue Distribution
60-70%
20-30%
10-20%The revenue distribution changes on a monthly/yearly basis due to:1. seasonality,2. economic situation,3. market conditions
*The presented figure an estimate based on year 2018 data.
10%Other…
*Customer base is spread out in Industrial Value Chain: Upstream, Downstream, End Industry
Quality that drives your Business
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Key Investment HighlightsConsistent revenue and profit
Gross Profit(million THB)
Sales Revenue(million THB)
(▼11.75%)(▼5.65%)(▼19.20%)
(▲5.44%)(▲6.33%)
(▲3.44%)(▲0.24%)
(▲10.92%)
(▲27.63%)
(▲24.45%)
16.14%
12.27%
16.43%17.58%
12.96%10.38%10.70%11.73%13.44%
11.15%
Quality that drives your Business
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Key Investment HighlightsEBITDA and Net Profit
Net Profit(million THB)
EBITDA(million THB)
6.59%
4.27%
8.25%9.23%
5.37%3.80%
4.13%
4.27%7.41%
5.42%
4.22%
2.58%
5.69%
6.48%
3.65%
2.52%2.39%
3.70%
4.81%
3.22%
Quality that drives your Business
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Key Investment HighlightsDividend
Dividend Policy: Not less than 40% of net profit after corporate income tax and after deducting allowances. All types are subject to the laws and regulations of the company
2.5%
29.0%
2.4%
1.6%2.8%2.3%
5.8%
4.2%
2.1%3.5%
Quality that drives your Business
Agenda
▌Company Overview
▌Key Investment Highlights
▌Financials
▌Outlook
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Quality that drives your Business
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Financials – Q1/2020Financial Position - Assets
AssetsMAR 20 DEC 19
CASH & ST INVT. 604.78 661.40 AR 797.16 713.70 INVEN 362.96 404.49 RIGHT OF USE 106.60 -OCA & NOCA 455.14 448.89
2,326.64 2,228.48 455.14 448.89
106.60 -
362.96 404.49
797.16 713.70
604.78 661.40
0
500
1,000
1,500
2,000
2,500
MAR 20 DEC 19
Milli
on T
HB
OCA & NOCA RIGHT OF USE INVEN AR CASH & ST INVT.
Quality that drives your Business
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630.88 591.63
427.3 453.59
309.07 309.0762.59 50.3
66.352.02
29.88 1.92348.98
289.11
451.59530.84
0
500
1000
1500
2000
2500
MAR 20 DEC 19
Milli
on T
HB
RE OTHER CAPITALOCL & NOCL LONGTERM LEASE CURRENT LEASEAP ST LOAN
Financials – Q1/2020Financial Position – Liabilities & Shareholders Equity
Liabilities & Shareholders ' EquityMAR 20 DEC 19
ST LOAN 451.59 530.84AP 348.98 289.11CURRENT LEASE 29.88 1.92LONGTERM LEASE 66.35 2.02OCL & NOCL 62.59 50.3
CAPITAL 309.07 309.07OTHER 427.3 453.59RE 630.88 591.63
2,326.64 2,228.48
Quality that drives your Business
733.58
109.71
29.43
794.70
133.86
49.83
0
100
200
300
400
500
600
700
800
900
Net Sale GP EAT
Milli
on T
HB
MAR 2019 MAR 2020
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Financials – Q1/2020Comprehensive Income
Net Sale & GP & EAT - Quarter 1MAR 2020 MAR 2019
Net Sale 794.70 733.58 GP 133.86 109.71 EAT 49.83 29.43
+61.12+8.33%
+24.15+22.01%
+20.40+69.32%
Quality that drives your Business
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Financials – Q1/2020Performance by Chemical Product Group
499
21322
734
529
22442
795
17%
23%
3%
15%
16%
19%
2%
17%
0%
10%
20%
30%
0
100
200
300
400
500
600
700
800
900
General chemicals Special chemicals Other products Total
Milli
on T
HB
Sales Revenue 2019
Sales Revenue 2020
% Gross Profit Q1 2019
% Gross Profit Q1 2020
Quality that drives your Business
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General chemicals
, 499, 68%
Special chemicals
, 213, 29%
Other products, 22, 3%
General chemicals, 529, 67%
Special chemicals, 224, 28%
Other products, 42, 5%
Sales Revenue Q1 2019 Sales Revenue Q1 2020
Financials – Q1/2020Performance by Chemical Product Group
Quality that drives your Business
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Financials – Q1/2020Key Financial Ratio
Key Financial Ratio
MAR - 20 MAR - 19 Year 2019
Current Ratio 2.12 2.00 2.13Inventory Day 53 63 52Supplier Payment Period ( Days) 47 49 47Account Receivable Collection Period ( Days) 84 105 104
Profitability (3 months) (3 months) (12 months)
Sale Growth (%) 8.33% -11.57% -11.76%GP Margin (%) 1.89% 0.91% 3.86%EAT (%) 69.32% -26.50% 44.22%
Quality that drives your Business
Agenda
▌Company Overview
▌Key Investment Highlights
▌Financials
▌Outlook
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Quality that drives your Business
• We continue to secure product supply for our customers
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OutlookOutlook for 2020
• Health and Safety of our employees remains top priority• Adaptation to “New Normal” is necessary for both our services and solutions
• Outlook for 2020 is highly influenced by the impact of the Covid-19 pandemic on the Thai Economy and its recovery.
• Highly challenging economic conditions expected in Q2 and H2 of 2020, particularly in Major End Markets – Automotive and Paints and Coatings
Quality that drives your Business
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Outlook – Q2/2020Outlook of Trends by Customer Segment
Agricultural Chemicals
Adhesives Automotive Polymer Synthesis
Rubber Printing Paints & Coatings
Packaging Construction Cosmetics Electronics Industrial Cleaning
Medical, Consumer, Household
Textile and Furniture
=▲▼ Trends
Quality that drives your Business
• Increase focus on Segments with Upwards Trend:
• Packaging• Industrial Cleaning• Medical/Consumer/Household• Cosmetics• Agricultural Chemicals
• Operational Excellence• Optimizing our supply chain to prepare for
“New Normal” market
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OutlookBusiness Development Outlook
Business Focus
Polymer Solvents
Industrial CleaningMedical
ConsumerHousehold
OperationalExcellence
Quality that drives your Business
CONTACT
• Investor Relations• Busara Harnongart• Phone: 02-881-8288• Fax: 02-881-9135• Email: [email protected]• Web: www.unionpetrochemical.com
• Disclaimer• This presentation may contain estimates and forward-looking statements based on current assumptions and forecasts
made by Union Petrochemical PCL and other information currently available to the company. Various known and unknown risk, uncertainties and other factors could lead to material differences between the actual future results, financial situation,development or performance of the company and the estimates given here. Union Petrochemical PCL does not intend and does not assume any liability whatsoever to update these estimates and forward-looking statements to conform them to future events or developments. Additionally some information contained in this document is based on estimates or assumptions of Union Petrochemical and there can be no assurance that the estimates or assumptions are or will prove to be accurate.
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