q1/2020 performance - listed company

Q1/2020 Performance

19 May 2020

2Siam City Cement Public Company Limited © | All Rights Reserved.

Agenda

Financial Highlights

Market and Business Outlook

Challenges and Opportunities


Net Revenue: Cement demand contraction in key markets underpinned

revenue decrease

10,904 11,115

11,727

11,018

11,879 11,901 11,953 11,860

11,016

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

- 7.3% YoY

- 7.1% QoQ

THB million


EBITDA: Shut down maintenance in TH negate the improved profitability

from stabilized operation in overseas markets

2,004

2,413 2,270

1,790 2,115

1,680

2,369 2,229 2,114

121

99 66

44

198

168

70 100 198 2,125

2,512 2,336

1,834

2,313

1,848

2,439 2,329 2,312

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Operating EBITDA Equity Profit EBITDA

19.5%

22.6%

19.9%

16.6%

19.5%

15.5%

20.4%19.6%

21.0%

- 0.0% YoY

- 0.7% QoQ

Q1/19 – One kiln shut down in LK

Q2/19 – TH two kilns shut down and legal severance provision, VN kiln shut down

Q3/19 – CB kiln shut down

Q4/19 – TH two kilns shut down

Q1/20 – TH two kilns shut down, LK kiln shut down

Note : TH – Thailand

LK – Sri Lanka

VN – Vietnam

BD – Bangladesh

CB – Cambodia

THB million


Net Profit: Net profit decrease YoY mainly driven by TH shut down

maintenance, unfavorable exchange impact and PY gain from assets disposal

833

1,021887

281

1,105

637

936

479

826

216

51

63

83

26

313

37

271

117

7.6%9.2%

7.6%2.5%

9.3%5.4%

7.8%4.0%

7.5%

-70.0%

-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

0

200

400

600

800

1000

1200

1400

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

1,131

950972

750

943

364

950

1,0721,049

Q1/19 – Gain on disposal of assets 87MB

Q2/19 - One-time legal severance provision amounting 249MB

Q4/19 – Assets impairment amounting 176MB from close down of Globe cement in TH and Beton RMX business in VN

- 25.2% YoY

+ 72.4% QoQ


2,858

442 412227 157

2,548

397 481212 122

Cement Concrete & AGG Trading Light Building Materials Others

Q1/19

Q1/20

30.5% 30.2%% GP

19.5% 19.9%23.6% 19.6%

19.3%

Segmented Revenue:

Cement58%

Concrete & AGG14%

Trading19%

Light Building Materials

5%

Others4%

Q1/19: Rev 11,879 MB, GP 32.7%

Cement59%

Concrete & AGG14%

Trading18%

Light Building Materials

5%

Others4%

Q1/20: Rev 11,016 MB, GP 32.5%

Segmented gross profit (before intersegment elimination)

13.2% 31.7% 32.7%


Revenue by countries: overall subdued cement demand in key markets

led to revenue decline

Q1/19

Q1/20

THB million

Group SCCC FY

Thailand

Overseas

11,879 11,016

- 3.5% yoy

- 16.1% yoy

- 7.3% yoy

70:30(%)TH:Overseas

2,979

8,037

3,553

8,326

Chip Mong INSEE Cement*

1,360

Siam City Cement Vietnam

- 16.2% yoy1,3451,605

%Portion 14% 12%

Siam City Cement Lanka

- 19.7% yoy1,250

1,557

%Portion 13% 11%

Siam City Cement Bangladesh

- 1.8% yoy

%Portion 3% 4%

391

Siam City Cement & TH subsidiaries

- 3.5% yoy

*Not consolidated with shareholding of 40%

73:27

8,0378,326

%Portion 70% 73%

1,328+ 2.4% yoy

384


EBITDA by countries: Overseas markets improved performance driven by

stabilized operation while TH performance affected by shut down maintenance

18 12

Siam City Cement Bangladesh

- 29.0% yoy

428465

Chip Mong INSEE Cement*

%Portion 0.8% 0.5%

Siam City Cement Lanka

+ 135.1% yoy57

%Portion 3% 6%

Siam City Cement & TH subsidiaries

%Portion 88% 78%

- 11.2% yoy1,798

Q1/19

Q1/20

THB million

Siam City Cement Vietnam

+ 72.0% yoy214

368

%Portion 9% 16%

Group SCCC FY

Thailand

Overseas

2,313 2,312

- 11.2% yoy

+ 77.9% yoy

0.0% yoy

19.5% 21.0%%EBITDA

104 1172,417 2,429

One-time Charge

Recurring EBITDA

514

1,798

289

2,024

88:12 78:22%TH:Overseas

+ 8.6% yoy

1,798

*Not consolidated with shareholding of 40%

2,024

428134


Financial gearing: Balance sheet deleveraging continued as priorities

Q1/20 Balance Sheet

THB million

Leverage Ratio

Assets76,678

Cash and Cash

Equivalents

6,131

Total Assets

Other Liabilities

15,841

Total Financial

Debt*

33,191

Total Shareholders'Equity

* Net of amortized cost

NFD: 27,457NFD: 27,061

Eq: 34,011Eq: 33,777

0.81x 0.80x

2.97x 2.93x

0.00x

1.00x

2.00x

3.00x

4.00x

5.00x

0

20,000

40,000

60,000

Q1/19 Q1/20

Times (x)THB million

Net Financial Debt Total Equity

Net Financial Debt/Total Equity Net Financial Debt/EBITDA

Total

Shareholders'

Equity

33,777

Total Liabilities and

Shareholders’ Equity


Financial debt profile: 3.0bn debenture due in 2020 will be refinanced

using borrowing from banks with favorable financing cost

Group Consolidated (THB equivalent)

• 87% of group debt are in THB held by Thai corporates.

• 87% of the group debt are at fixed interest rates which is THB debt.

• Long-term debt secured at an average interest rate of 3.5% for a 8 year average tenure

Unit : Million THB (MB)

Total: 31,241 MB

THB Currency, 27,330 MB 87.5%

VND Currency2,258 MB 7.2%

LKR Currency1,567 MB 5.0%

IDR Currency86 MB 0.3%

3,000

4,500

2,000

5,0004,500

446

344

7,127

77

4,248

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Debt Maturity Profile (Group)

S/T Loan

L/T Loan

Debenture

7,693


15.81

20.8522.10

19.91

17.02

6.59

10.14 10.59

13.00

15.00 15.00 15.00 15.00

10.00

8.00 8.00

82%

72%68%

75%

88%

152%

79%

76%

0%

20%

40%

60%

80%

100%

120%

140%

160%

0

5

10

15

20

25

2012 2013 2014 2015 2016 2017 2018 2019

EPS DPS Payout Ratio Payout Policy

Dividend Payout: 2019 total dividend was at 8 THB/share

EP

S &

D

PS

(T

HB

) Div

ide

nd

Pa

yo

ut

Dividend Yield* 3.81% 3.55% 3.46% 4.70% 5.51% 4.40% 4.88% 4.21%

Source: SET, for Y2019 use closing price as of December 30, 2019 at 190 Baht

Dividend payout policy at 60%


Agenda





Cement Price Performance: Subdued cement demand contraction is

expected to be persistent and may have negative impact to cement price

1,100Jan-19Jan-16 Jan-17 Jan-20Jan-18

SCCC Price Index

Y2017

Y2016

A sharply decline in price over

SCCC’s profitable segments

Cement price initiates recovery

Turning point

Y2018

Consistently executes price

improvement plan

Y2019

Drive profitability from

good pricing

governance and

product management

Y2020

Intensify market

competition led

declining cement

price


Coal Price: Downward trending of coal price resulting in lower energy

cost

10

30

50

70

90

110

130

Jan-15 Oct-15 Jul-16 Apr-17 Jan-18 Oct-18 Jul-19 Apr-20

Indonesian coal Index

ICI Index(6500 GAR)

ICI Index(5800 GAR)

ICI Index(5000 GAR)

ICI Index(4200 GAR)

ICI Index(3400 GAR)

USD/ton


Market Outlook (Cement, Concrete and Light Building Materials)

Cambodia + Curfew lifted

- Market is slowing down especially bulk segment while bag remains strong

- Intensified competition from additional supply capacities by new entrance competitor

expects to weigh on price pressure and imported cement (from SCCC) for border

sales

Vietnam + GDP growth is expected to slow down, but consensus estimate to return in medium

and long term

+ COVID-19, contained in Vietnam but impacting FDI and construction demand

- Price pressure from market oversupply situation

- Constructions license freeze HCMC continue

Sri Lanka + Government imposed higher import taxes on imported cement

- Curfew lifted except during night for Colombo

- Lower house builder segment demand due to fund unavailability

- Possibility of Government projects put on hold as priority is the welfare of the public

Bangladesh + Lockdown eased

- Slowdown in construction and major projects.

- Likelihood of prolonged COVID-19 impact due to poor health care system

/infrastructure and health awareness among mass people


Agenda





Business Challenges and Opportunities

OpportunitiesChallenges

Short and medium

term impacts from

Covid-19

Persistent geopolitical

uncertainty

Government stimulus

and acceleration of

infrastructure projects

Excess capacities in

the region

Subdued residential

construction activities

Profitability improvement

through margin management

and lean operational structure

Lower coal and diesel cost


Supplementary


Corporate and Industry Awards

SCCC has received “Thailand Sustainability Investment (THSI) 2019” award from the Stock

Exchange of Thailand. SCCC has been categorized in the listed company group with market capitalization

between 30-100 billion baht. This reflects SCCC’s commitment in pursuing sustainable development into

business practices.

“Thailand Sustainability Investment (THSI) 2019” Award



The Thailand’s Top Corporate Brand Values 2019

in Construction Material Sector – 3rd consecutive year

Awarded by Chulalongkorn Business School in collaboration with The Stock Exchange of

Thailand

Obtained in 2019

FTSE4Good Certificate - 2nd consecutive renewal

Awarded by FTSE International Limited and Frank Russel Company (FTSE Russel),

June 2019

CSR-DPIM Continuous Award and Green Mining Award 2019

Awarded by the Department of Primary Industries and Mines, Ministry of Industry

CSR-DIW Continuous Awards 2019(Corporate Social Responsibility)

Awarded to SCCC, INSEE Ecocycle, Mortar and Siam City Power, by the Department of

Industrial Work, Ministry of Industry

Thailand Green and Smart Mining Awards 2019

Awarded to SCCC by the Ministry of Natural Resources and Environment



Thailand ICT Excellent Awards 2018 (5 Awards)

Excellence Awards - INSEE Digital Connected Plant Project and INSEE SMART Pay

Project

Distinguished Awards - INSEE People Planning Development Analytics Project, Capex

Management Project, and Smart Delivery Project

Awarded by the Thailand Management Association (TMA)

Best Industrial Waste Management Award

Gold Plus Level - Non-hazardous Solid Blending

Gold Level - Liquid Blending, Alternative Resource in cement production, Spay cans

recycle, and Light bulbs recycle

Awarded to INSEE Ecocycle (Saraburi Platform and Chonburi Platform) and SCCC (Plant 1

& 3), by the Department of Industrial Works, Ministry of Industry

‘Excellent’ recognition level of Corporate Governance of Thai Listed

Companies - 4th Consecutive year

Awarded to Siam City Cement Public Company Limited, by Thai Institute of

Directors Association (IOD)

Green Industry Award Level 5 - Green Network (Renewal)

Awarded by Department of Industrial Works, Ministry of Industry

Obtained in 2019


Leadership and People Development

World Coaching Congress & Awards - Operational Performance Improvement (OPI)

Coach Capability Development

Awarded by World HRD Congress, February 2019

The ATD Excellence in Practice Awards - Operational Performance Improvement

(OPI) Coach Capability Development

Awarded by ATD, USA, May 2019

Training & Development Excellence Awards (5 Awards)

Best In Class Coaching Leadership - awarded by World HRD Congress, India

2018 Excellence in Practice Award Winners - awarded by The Association for Talent

Development (ATD) at U.S.A.

Best Leadership Development Program for Worker and Organization with Innovation

HR Practices award awarded by Asia’s Best Employer Brand Awards & Asia’s Training &

Development Excellence Awards 2019 at Singapore

Excellence in Training Award – Overall Award on Results Based Training - awarded by

World HRD Congress, India, July 2019

Obtained in 2019

q1/2020 performance - listed company

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