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TRANSCRIPT
The 2016 Performance
Announcement Presentation
March 2017
Valued co-creation
Company Overview
Plastic and Petrochemical Industry
The 2016 Performance
IR Report & Investment Highlight
Q&A
Today Content
Company Overview
GC Revenue During 2005 – 2016
Sales was increased in 2016
• Value 9.10% (YoY) • Quantity 16.69% (YoY)
GC has been founded since 1994 by experienced management
GC is the distributor with over
30 leading producers of plastics and petrochemical raw materials from around the world.
Most of these producers are
among the top 3 in the world in that product in terms of technology & production capacity.
GC is not an ordinary
distributor. On top of ordinary distribution role, GC provide technical advice and useful information to customers since GC position itself to be Your best partner for valued co-creation solution and service in industrial raw material supply
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
3,272 3,390
3,473 3,429
2,665
3,678 3,793
3,710
3,172
3,659 3,659
3,985
Where we are in the value chain of Thai Petrochemical Industry.
Olefin&Aromatic
Producers
Monomer
producers
(MEG, VCM)
Converters
Petrochemical and plastic producers
Upstream End users Intermediate
Compounders
Master batch
producers
Compounders
Polymer
producers
(PP, PE, PVC)
Downstream
GC’s role and positioning in the market
Leads the differentiation
Suppliers S1 S2 S3 S4 S5 Sn
Customers C1 C2 C3 C4 C5 Cn
Economy of Scope to Customers
Economy of Scale to Suppliers
Logistic : Warehousing, small delivery, and repacking
Sales & Marketing : Closely contact to end markets/customers
Technical Services : Troubleshooting / Product and Market Development Financing & structuring solution : Extending our expertise to customer
Provided
Major Shareholders Free Float Overview As of December 30th, 2016
Total Shareholders 1,044 Minor Shareholders (Free float) 916
% Shares in Minor Shareholders (Free float) 30.68%
Rank Major Shareholders #Shares % Shares
1 Mr. Somchai Kulimakin 44,499,800 22.25
2 Mr. Aikachai Sirijuntanan 27,125,000 13.56
3 Mr. Sumruay Tichachol 27,125,000 13.56
4 Mr. Bhiya Jriyasetapong 26,125,000 13.06
Sub total 124,874,800 62.44
1994
GC was established by 5
founders with initial registered capital of 2 MB.
1998
Distributing agent of
OCV Reinforcement Co., Ltd
1999
Distributing agent of Siam
Polystyrene (Thailand)
Co., ltd. and Cabot Plastic Hong Kong Ltd.
2005
Listed company and paid-up capital to 200 MB More Product from Exxon : Butyl & Vistamaxx
1994 - 1999 2006 - Current 2000 - 2005
Start business with commodity plastic
Diversify company portfolio from commodity to specialty plastic
Create sustainable growth being the
best partner for solution and service in industrial raw material supply
2011
Distributing agent of
Miliken Chemical,Imerys
Meneral, Timcal Ltd.
Exxon Product : ENABLE, EXCEED
2012
Change Distributing agent of
SCG to PTTPM. Exxon Product : Special Compound
Company History
Invest in PV solar
rooftop project
(23 years remaining
duration power
purchase agreement (PPA) with MEA.)
2004
Distributing agent of
ExxonMobil and
Rio Tinto Mineral Asia
1996
Distributing agent of SCG Plastics Co., ltd.
and Eastman Chemical , which was the start of specialty product distribution.
1997
Distributing agent of
DuPont Performance
Polymers and Chi Mei
2008
Distributing agent of DIC
Exxon Product : PE PP
2010
Distributing agent of BST Elastomers Co., Ltd.
2006
Distributing agent of Nanocor Inc.
2009
Exxon Product :
Vistamaxx
1994 1996 1998 2000 2004 2006 2008 2010 2012 2014 2015 2016
2014
Distributing agent of
TechnoGreen and UBE GROUP
2015
Service water cooling
system solutions and
Distributing agent of
3M and Campine
Ethics
Integrity
Professional & Focus
Partnership
Strive for
better
Vision
Corporate Value
The Corporate Governance
Nomination and
Remuneration Committee
Audit Committee
Chief Marketing
Officer 4
Chief Marketing
Officer 3
Chief Marketing
Officer 2 Chief Marketing
Officer 1
Chief Operating
Officer
Internal Audit
New Business Development
Commodities &
Polyolefin
Specialty
Engineering
Polymer &
Rubber
Specialty
Chemicals &
Intermediate
Market
Development &
Sales Support
Executive Committee
Chief Financial Officer
Information
Communications Technology (ICT)
Human resource and Administration
Logistics
Board of Director
Finance &
Accounting &
ERP
Chief Executive Officer
Business
Support
Organization Chart
Corporate Strategy
Maintain existing strong market positioning
Become solid partner with supplier and customer
Offer total professional solution
Be leader in advanced technology product
Grow towards the growing industries
Develop new application/market from initial stage
Corporate Strategy 2017 :
VUCAR
V : Value
creation thru Innovation and Differentiation
U : Uncompromisingness
with Business Growth and Profit commitment
C : Cost
management thru Efficiency and Effectiveness
A : Aligned
investment for Future Growth and Sustainability
R : Research
and Development on Customer Needs in Market-Driven Product Development
BU1 COMMODITY POLYMER
BU3
SPECIALTY
CHEMICALS & INTERMEDIATE
BU2 SPECIALTY
ENGINEERING POLYMER
& RUBBER
• Polyolefins
PE: HDPE, LDPE, LLDPE
(C4,C8)
PP: Homo, Block Copo, Random
• PU
• Tie Layer Polymer
• Specialty Polyolefins
• Nylon, POM, PBT, TEEE, PCT, LCP, PC
• Black/White MB
• PETG/PCTG, CA
• PS, HIPS, ABS, SAN, SBC
• EVA for HMA, Hydrocarbon Resin
• PE Plastomer, PP Plastomer, TPO
• TPVs, TPU
• TPE, TPR, Reinforcement compound
• Glass Fiber (Chop Strand, Long glass)
• EPDM , BUTYL
• BR, SBR, FKM
• TALC, SILICA, CARBON BLACK
• FLAME RETARDANT (ZB, ATO)
• Plastic Additives
• Intermediate chemical
• Water cooling system solutions
Our Business Unit
Customer segment by Sales Percent of Value
Year 2015
62,587 Tons
Year 2016
73,031 Tons
3,646 MB. 3,978 MB.
Agriculture 2% Automotive
19%
Construction 2%
Consumer products & Household
20%
Electrical & Electronics
10% Packaging
34%
Petrochemical & Intermediate
13%
Agriculture 3%
Automotive 17%
Construction 1%
Consumer products & Household
23%
Electrical & Electronics
7% Packaging 36%
Petrochemical & Intermediate
13%
Company Overview
Plastic and Petrochemical Industry
The 2016 Performance
IR Report & Investment Highlight
Q&A
Today Content
Agriculture 3% Automotive
17%
Construction 1%
Consumer products & Household
23%
Electrical & Electronics
7% Packaging
36%
Petrochemical &
Intermediate 13%
• Plastic Market
Size around
920 billion
• 80% is small business size
1.Competitiveness
2.High Value Product from Innovation and
Creativity
3.Environment Friendly : Bioplastic
Plastic Industry Strategy
Thai Plastic Business strategy
Crude Oil Price https://www.thaioilgroup.com/upload/media_file/20170106084548_AnnualOilMarket.pdf
Thai Economic : 2016 & 2017’s Projection
http://www.nesdb.go.th/nesdb_en/article_attach/Economic%20Report%20Q4-2559EN.pdf
Private Consumption – Jan. 2017
http://www.fpo.go.th/FPO/index2.php
Private Investment – Jan. 2017
http://www.fpo.go.th/FPO/index2.php
Company Overview
Plastic and Petrochemical Industry
The 2016 Performance
IR Report & Investment Highlight
Q&A
Today Content
24
STATEMENTS OF COMPREHENSIVE INCOME
Unit : Million Baht
2016 2015 Change 2016 2015 Change
Sales 921.80 934.00 -1% 3,978.55 3,646.46 9%
COGS 864.66 881.52 -2% 3,720.90 3,417.23 9%
Gross Profit 57.14 52.48 9% 257.65 229.23 12%
Selling & Admin Expenses 32.60 31.37 4% 121.41 118.17 3%
Reduction of inventory to net
realisable value (Reversal) 0.00 0.00 0% 0.00 (1.00) 100%
EBITDA 24.54 21.11 16% 136.24 112.06 22%
Depreciation 3.15 2.91 8% 12.03 11.67 3%
Interest Expenses 3.56 3.62 -2% 14.96 14.19 5%
Profit Before Other Income 17.83 14.58 22% 109.25 86.20 27%
Other Income 2.02 1.12 80% 5.44 6.96 -22%
Gain (Loss) on exchange rate (0.52) 2.17 -124% 1.23 5.95 -79%
Profit before Tax 19.33 17.87 8% 115.92 99.11 17%
Tax 3.59 3.42 5% 23.36 19.81 18%
Profit for the year 15.74 14.45 9% 92.56 79.30 17%
Other comprehensive income 0.50 0.00 100% 0.50 0.00 100%
Total comprehensive income 16.24 14.45 12% 93.06 79.30 17%
Actual Q4 Actual Year
25
SALES STRUCTURE
-
10
20
30
40
50
60
70
2012 2013 2014 2015 2016
42.1 28.1 35.1 40.8
51.0
17.2
20.1 19.0
21.7 21.9
0.1
0.0 0.1
0.1 0.1
'000 T
Sales Quantity BU3
BU2
BU1 62.6 59.4 54.2
48.2
73.0
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
71% 58% 65% 65% 70%
29% 42%
35% 35% 30%
0% 0% 0% 0% 0%
Sales Quantity in Percentage BU3
BU2
BU1
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
55% 44% 53% 52% 57%
44% 55% 46% 47% 42%
1% 1% 1% 1% 1%
Sales Value in Percentage BU3
BU2
BU1
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2012 2013 2014 2015 2016
2,041 1,405
1,937 1,915 2,287
1,632
1,737
1,692 1,707 1,661
27
17
18 24 31
Sales Value-Million Baht BU3
BU2
BU1
3,646 3,700
3,159
3,647 3,979
GROSS PROFIT STRUCTURE
26
26
-
50
100
150
200
250
300
2012 2013 2014 2015 2016
80 55 51 67 85
164 177 162
170 180
6 4
5 8
9
Gross Profit By BU BU3 BU2 BU1
236 245 218
274 250
0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 2016
32% 23% 23% 27% 31%
66% 75% 74% 70%
66%
2% 2% 3% 3% 3%
Gross Profit in Percentage BU3 BU2 BU1
3.9% 3.9% 2.6% 3.5% 3.7%
10.1% 10.2% 9.6% 9.9% 10.8%
21.5% 22.4%
30.1% 33.3%
30.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2012 2013 2014 2015 2016
Gross Profit Margin by BU BU1
BU2
BU3
27
27
STATEMENTS OF COMPREHENSIVE INCOME HIGHLIGHT
Profitability Ratio
Revenue & Net Profit
Profit Margin
• GC’s gross profit margin of 2016 was higher
than 2015’s due to the shortage of supply in
some products caused our selling price more
competitive.
• GC’s net profit margin of 2016 has been
increasing compared to 2015’s due mainly to the
higher sales volume and profit margin.
Revenue and Net Profit
In 2016, Sales increased from 2015 around 9%
derived from the rise in sales value of BU1
resulting from the improving in Thai economy and
our sourcing ability of substitute products from
overseas during the locally short of supply period.
In addition, our strategy of preserving high
potential customer group was also supporting
sales growth.
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2005 2006 2007 2008 2009
-
5
10
15
20
25
30
35
3,710
3,172 3,659 3,659
3,985
76 70
48
79
93
-
30
60
90
120
150
0
500
1000
1500
2000
2500
3000
3500
4000
2012 2013 2014 2015 2016
Revenue (
Mill
ion B
aht)
Revenue Net Profit
6.31 6.93
5.48 6.29 6.48
2.06 2.21 1.31
2.17 2.34
19.28 17.44
12.08 19.56
21.81
-
5
10
15
20
25
30
35
40
45
50
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2012 2013 2014 2015 2016
Gross Profit Margin (%) Net Profit Margin (%) ROE (%)
ROE Profit
28
28
STATEMENTS OF FINANCIAL POSITION
Unit : Million Baht
Asset 31/12/2016 31/12/2015 Change %
Trade Receivables 700.88 690.51 10.37 2%
Inventory 478.66 501.80 -23.14 -5%
Net Fixed Assets 126.95 126.34 0.61 0%
Total Assets 1,361.09 1,378.40 -17.31 -1%
Liabilities
Short Term Loan 662.03 634.09 27.94 4%
Trade Payables 223.32 270.85 -47.53 -18%
Total Liabilities 929.94 956.30 -26.36 -3%
Equity
Paid up Capital 200.00 200.00 0.00 0%
Share Premium 56.03 56.03 0.00 0%
Retained Earnings 175.12 166.06 9.06 5%
Total Equity 431.15 422.10 9.05 2%
29
29
STATEMENTS OF FINANCIAL POSITION HIGHLIGHT
D/E ratio is relatively lower.
D/E ratio drop less than 2.0 which was decreased after IPO proceeds. However, the higher D/E ratio in
2013-2016 was resulting from the
increase in short term loan.
Continuous increase in current ratio
GC current ratio has been improving
to higher than 1.0x since GC got more
working capital from IPO proceed.
This higher liquidity can reduce GC’s
financial costs.
4.35
2.00 1.70 1.58
1.20 1.10 1.43
1.87 1.80 2.21 2.01
2.27 2.16
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Debt to Equity Ratio
0.94
1.28
1.46 1.37
1.48 1.58
1.46 1.37 1.38 1.32 1.36 1.33 1.34
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Current Ratio
Dividend
(BPS.) Before On X-Date
31-Dec-16 0.20 17-May-17 27-Apr-17 n/a n/a 3.39% *
30-Jun-16 0.22 9-Sep-16 24-Aug-16 5.15 4.88 4.27%
31-Dec-15 0.20 29-Apr-16 18-Apr-16 4.44 4.20 4.50%
30-Jun-15 0.15 4-Sep-15 19-Aug-15 4.04 3.84 3.71%
31-Dec-14 0.08 30-Apr-15 10-Apr-15 4.42 4.30 1.81%
30-Jun-14 0.15 4-Sep-14 18-Aug-14 4.40 4.28 3.41%
31-Dec-13 0.14 30-Apr-14 11-Apr-14 4.46 4.32 3.14%
30-Jun-13 0.18 5-Sep-13 20-Aug-13 4.84 4.60 3.72%
31-Dec-12 0.19 30-Apr-13 12-Apr-13 5.00 4.84 3.80%
30-Jun-12 0.17 6-Sep-12 21-Aug-12 4.96 4.76 3.43%
31-Dec-11 0.16 30-Apr-12 12-Apr-12 4.96 4.86 3.23%
30-Jun-11 0.24 9-Sep-11 25-Aug-11 5.90 5.55 4.07%
31-Dec-10 0.26 29-Apr-11 18-Apr-11 5.80 5.50 4.48%
30-Jun-10 0.24 10-Sep-10 26-Aug-10 5.50 5.20 4.36%
31-Dec-09 0.26 30-Apr-10 16-Apr-10 4.72 4.22 5.51%
30-Jun-09 0.14 11-Sep-09 27-Aug-09 3.28 3.28 4.27%
31-Dec-08 0.12 30-Apr-09 16-Apr-09 2.40 2.40 5.00%
30-Jun-08 0.20 12-Sep-08 26-Aug-08 4.84 4.60 4.13%
31-Dec-07 0.26 30-Apr-08 17-Mar-08 4.06 3.90 6.40%
30-Jun-07 0.14 7-Sep-07 21-Aug-07 3.46 3.32 4.05%
31-Dec-06 0.15 27-Apr-07 9-Mar-07 2.92 2.78 5.14%
30-Jun-06 0.10 8-Sep-06 22-Aug-06 2.64 2.54 3.79%
31-Dec-05 0.14 28-Apr-06 10-Mar-06 2.46 2.48 5.69%
* Calculate from closing price on 22-Feb-16 @ 5.90 baht
Operation
Period EndingPayment Date X-Date
Price with X-Date Dividend Yield
(cal. From before
X-Date Price)
DIVIDEND PAYMENT RECORD
31
31
DIVIDEND PAYOUT RATIO
108
77 96
124
80 76 70 48
79 93
74%84% 83% 80%
99% 95% 91% 97%88% 90%
0%
20%
40%
60%
80%
100%
120%
140%
-
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Div
ide
nd
Pa
yo
ut
Ra
tio
Ne
t P
rofi
t (M
illio
n B
ah
t)
Net Profit (Million Baht.) Dividend Payout Ratio
Company Overview
Plastic and Petrochemical Industry
The 2016 Performance
IR Report & Investment Highlight
Q&A
Today Content
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
5.10
3/1
0/5
9
6/1
0/5
9
11/1
0/5
9
14/1
0/5
9
19/1
0/5
9
25/1
0/5
9
28/1
0/5
9
2/1
1/5
9
7/1
1/5
9
10/1
1/5
9
15/1
1/5
9
18/1
1/5
9
23/1
1/5
9
28/1
1/5
9
1/1
2/5
9
7/1
2/5
9
13/1
2/5
9
16/1
2/5
9
21/1
2/5
9
26/1
2/5
9
29/1
2/5
9
Trade Volume (Shares)
GC Closing Price (THB)
Volume Trade GC Closing Price
STOCK MOVEMENT
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
5.10
1,300
1,350
1,400
1,450
1,500
1,550
1,6003/1
0/5
9
12/1
0/5
9
21/1
0/5
9
2/1
1/5
9
11/1
1/5
9
22/1
1/5
9
1/1
2/5
9
14/1
2/5
9
23/1
2/5
9
GC
Clo
sin
g P
rice (
TH
B)
SE
T IN
DE
X
SET INDEX GC Closing Price
4.20
4.30
4.40
4.50
4.60
4.70
4.80
4.90
5.00
5.10
750
800
850
900
950
1,000
1,0503
/10
/59
12/1
0/5
9
21/1
0/5
9
2/1
1/5
9
11/1
1/5
9
22/1
1/5
9
1/1
2/5
9
14/1
2/5
9
23/1
2/5
9
GC
Clo
sin
g P
rice
PE
TR
O
IND
EX
PETRO INDEX GC Closing Price
5.69
8.92
10.45
9.13 9.78
8.85
7.29 7.23 6.86
5.22
8.22 7.66
4.50 4.70
2.30
5.50
(0.90)
3.30 3.81
3.02 2.18 1.89
(0.90)
0.19
3.00
4.50
2.32 1.88
0.83 1.55
2.85 2.43 2.25
1.73 1.40 1.40
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GC's Dividend Yield
Inflation Rate Avg 1 Year Deposit Interest Rate GC's Dividend Yield
37
37
THANK YOU, QUESTIONS ARE WELCOME