the first half of 2018 Opportunity Day Presentation

August 14th , 2018

GC II Your best services for value creation in raw material supply.

Company Overview and Strategy

Industry info and Economic outlook

IR Report

1st half 2018 Performance

Q&A

Today Content

2

3

Since 1994 Over 30 Leading producers - Top 3 in the world -

Your best service for value creation in raw material supply

GC’s Company Overview

Sales decreased in 1st H 2018

Value -6.62% (YoY) Quantity -6.86% (YoY)

Present

2,021

1,887

169

26 9

1400

1500

1600

1700

1800

1900

2000

2100

1H-2017 1H-2018

Comparing GC Sale (MB.) between 1st H 2017 and 1st H 2018

BU1 BU2 BU3

GC’s Vision

4

Ethic Doing business with ethics and no legal offense

Sustainable Build sustainable growth of

profitability and revenue to be market leader

Employee :

Develop knowledge skill and expertise of our staff

Business Partner Connect the best supplier and bridge

advanced technologies for customer’s best value as business partner.

Work closely with Financial Institute as business partner to success

Mission

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

Where we are in the value chain of Thai Petrochemical Industry

5

6

Thailand Plastics Economics Contribution 2015

Thailand Plastics Industry Over View

GC’s role and positioning in the market

Leads the differentiation

7

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

8 Source: Thailand Industry Outlook 2017 Petrochemical, Krungsri Research.

Petrochemical Complex

GC’s Business Unit

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

• TALC, SILICA, CARBON BLACK

• FLAME RETARDANT (ZB, ATO)

• Plastic Additives

• Intermediate chemical

• Water and waste solutions

9

Industry Focus : Key Drivers to growth

CONSUMERS PRODUCTS

- Flexible Film & Packaging

- Rigid Packaging

- Shoes

- Medicals

- Others

INDUSTRIAL

- Electrical & Appliances

- Constructions

- Adhesives& Sealant

AUTOMOTIVE

- Interior Part

- Exterior Part

- Under hood

10

2,021 MB.

1st Half 2017

Customer Segment by Sale Percent of Value

11

1st Half 2018

1,890 MB.

Packaging 40%

Consumer products & Household

20%

Automotive 17%

Petrochemical & Intermediate

11%

Electrical & Electronics

7%

Construction 2%

Others 0%

11

Packaging 40%

Consumer products & Household

17%

Automotive 22%

Petrochemical & Intermediate

13%

Electrical & Electronics

5%

Construction 1%

Others 0%

“Matching Plastic Materials With Your Design”

Seminar

July 5th, 2018

12

Activity : To create value chain

13

GC’s Strategy

1. Boost up market share by keeping retention customers, create

new customers and reactivate inactive customers also utilize our customer database

2. looking for new business development and filling in Product Portfolio to wider product range in order to confirm our

one stop shopping service such as additive and/or chemical including plastic polymer

3. Investing in our own R&D for product creation to strength our

own brand “GC / GIC” 4. Catch up technology fast moving, innovation and disruption

5. Efficiency on cost and working capital management

Competitor Benchmark

14

15

Competitors Financial Performance Data (2017)

GC A B C E F G I K I M Benchmark(Average)

3,727

4,624

3,199 3,018 2,759

2,346

803 632 142

1,477

2,474 2,375

246 100 51 65 149 40 71 107 14 32 49 99 90 15 6 27 29 1 18 42 2

-2 8

24

Sales (MB.) Gross Profit (MB.) Net Profit (MB.)

-6.31% -1.54%

3.76% -0.86%

5.95%

-10.21%

2.83%

15.93%

2.63%

-10.60% -6.59%

-2.64%

Sale growth (%)

Remark: Sale growth (%) calculate by sale in 2016 and 2017

Economic Outlook

16

World Economic 2nd Quarter 2018

In the US, positive earnings momentum and supportive economic data outshone the China-US trade posturing to lift equities.

Growth in lost some steam in Q2, reflecting aggressive financial deleveraging and authorities’ efforts to crack down on shadow banking. Against the context of an escalating trade war with the US and the currency depreciated relative to the US dollar

Eurozone equities also delivered gains. The European Central Bank announced that interest rates will remain at current levels through summer 2019.

Japanese equities advanced despite the rising trade tensions. The Japanese yen lost ground against a generally stronger dollar.

17

0102030405060708090

Jan03,

2017

Mar30,

2017

Jun26,

2017

Sep21,

2017

Dec15,

2017

Mar16,

2018

Jun14,

2018

WTI

Brent

Do

llars

per

Bar

rel

Crude Oil Price Chart

Crude Oil Spot Price Chart

Since January 2017 – July 2018

Available from Web Page : http://www.eia.gov/dnav/pet/pet_pri_spt_s1_d.htm

Source:

18

Upside Factor • US pulled out of Iran nuclear deal

and would re-impose economic sanctions

• Geopolitical tension and supply disruption

Downside Factor • US-China Trade war uncertainty

which could impact to global economy

• Saudi could raise output to offset any potential supply shortage

+

-

Thai Economic Performance in 2nd Quarter, 2018

Thai economy continued to gain further traction and would achieve higher growth, It was projected to continue expanding at 4.4 and 4.2 percent in 2018 and 2019, respectively driven by both domestic and external demand.

Merchandise exports and Tourism

31.32 31.38 31.19

31.55

32.00

33.12

Jan Feb Mar Apr May Jun

Exchange rate as of the end of each month (Baht/Dollars)

Source: Press Release on Economic and Monetary Conditions, June 2018

Investment in Machinery and Equipment

Source: Monetary Policy Report, June 2018 19

Export

20

21

Source: Automotive Group – The Federation of Thai Industries (FTI) and analyzed by Automotive Intelligence Unit (AIU) – Thailand Automotive institute (TAI)

Thailand’s Production, Sale and Export Numbers of Motor Vehicle as of 2011 - 2017

1,457,795

2,453,717 2,457,057

1,880,007 1,913,002 1,944,417 1,988,823

1,056,569

795,250

1,436,047 1,330,672

881,832 799,632 768,788 871,650 489,118

735,627

1,026,671 1,128,152

1,128,102 1,204,895 1,188,515 1,139,696

561,960

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2011 2012 2013 2014 2015 2016 2017 1H2018

Production Sale Export

Unit(s)

22

Business opportunity : Thailand in EEC development policy

First half of 2018 : increase and expand 2,504 plants 1. Food industry 2. Plastic Industry 3. Rubber Products Industry 4. Electrical Appliances and Equipment

Source : bangkokbiznews July 10, 2018

Higher EEC Zone Factory Operation Permission

24

IR Report

-

100,000

200,000

300,000

400,000

500,000

600,000

4.00

4.20

4.40

4.60

4.80

5.00

5.20

5.40

5.602

/4/6

1

5/4

/61

11

/4/6

1

18

/4/6

1

23

/4/6

1

26

/4/6

1

2/5

/61

7/5

/61

10

/5/6

1

15

/5/6

1

18

/5/6

1

23

/5/6

1

28

/5/6

1

1/6

/61

6/6

/61

11

/6/6

1

14

/6/6

1

19

/6/6

1

22

/6/6

1

27

/6/6

1

Tra

de

vo

lum

e (

sh

are

s)

GC

Clo

sin

g p

rice

(T

H))

GC Trade Volume (shares) GC Closing price (THB)

4.00

5.00

6.00

7.00

8.00

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,850

2/4

/61

12

/4/6

1

25

/4/6

1

7/5

/61

16

/5/6

1

25

/5/6

1

6/6

/61

15

/6/6

1

26

/6/6

1

GC

Clo

sin

g P

rice

(T

HB

)

SE

T IN

DE

X

SET INDEX GC Closing Price (THB)

Benchmark GC Average Petro

Industrial*

P/E** Ratio 11.66 17.65

Dvd Yield (%) 8.13 5.56

ROE*** 18.15 14.17Source : SETTRADE’s website on June 29th 2018

Closing Price Q2/2561 Q1/2561 High 5.45 5.45 Low 4.98 5.10

Average 5.15 5.30 -2.83% (QoQ) 2.32% (QoQ)

Stock Volume Q2/2561 Q1/2561 High 510,300 1,005,200 Low 6,100 15,300

Average 121,636 178,983

Total 7,298,150 11,096,922

25

Investor Relations Report

1sthalf 2018 Performance

26

STATEMENTS OF COMPREHENSIVE INCOME

Unit : Million Baht

2018 2017 Change 2018 2017 Change

Sales 917.70 948.69 -3% 1,887.06 2,020.73 -7%

COGS 847.02 897.95 -6% 1,740.96 1,899.03 -8%

Gross Profit 70.68 50.74 39% 146.10 121.70 20%

Selling & Admin Expenses 39.22 29.93 31% 81.07 60.88 33%

Reduction of inventory to net

realisable value (Reversal) 0.00 3.00 -100% 0.00 3.00 -100%

EBITDA 31.46 17.81 77% 65.03 57.82 12%

Depreciation 2.43 3.12 -22% 4.92 6.30 -22%

Interest Expenses 2.83 3.95 -28% 5.53 7.72 -28%

Profit Before Other Income 26.20 10.74 144% 54.58 43.80 25%

Other Income 2.30 3.00 -23% 3.97 5.00 -21%

Gain (Loss) on exchange rate (1.51) 0.17 -988% 1.24 1.82 -32%

Profit before Tax 26.99 13.91 94% 59.79 50.62 18%

Tax 6.61 3.20 107% 15.37 10.05 53%

Deferred Tax Expenses 0.76 (0.68) 212% 0.57 (0.21) 371%

Profit for the period 19.62 11.39 72% 43.85 40.78 8%

Actual Q2 Actual 1st_Half

27

SALES STRUCTURE

-

10

20

30

40

50

60

70

2014 2015 2016 2017 1H/2018

35.1 40.8 51.0

42.7

20.9

19.0 21.7

21.9 22.0

11.7

0.1 0.1

0.1 0.1

0.1

'000 T

Sales Quantity BU3

BU2

BU1

62.6 64.8

54.2

32.7

73.0

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 1H/2018

65% 65% 70% 66% 64%

35% 35% 30% 34%

36%

0% 0% 0% 0% 0%

Sales Quantity in Percentage BU3

BU2

BU1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 2015 2016 2017 1H/2018

1,937 1,915 2,287 1,976

969

1,692 1,707 1,661

1,714

897

18 24 31

37

21

Sales Value-Million Baht BU3

BU2

BU1

3,646 3,727

1,887

3,6473,979

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 1H/2018

53% 52% 57% 53% 51%

46% 47% 42% 46% 48%

1% 1% 1% 1% 1%

Sales Value in Percentage BU3

BU2

BU1

28

GROSS PROFIT STRUCTURE

-

50

100

150

200

250

300

2014 2015 2016 2017 1H/2018

51 67 85 63 35

162 170

180 189

113

5 8

9 11

7

Gross Profit By BU BU3 BU2 BU1

155

245 218

263 274

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 1H/2018

23% 27% 31% 24% 22%

74% 70% 66% 72% 73%

3% 3% 3% 4% 5%

Gross Profit in Percentage BU3 BU2 BU1

2.6% 3.5% 3.7% 3.2% 3.6%

9.6% 9.9% 10.8% 11.0% 12.6%

30.1% 33.3%

30.2% 31.3% 34.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2014 2015 2016 2017 1H/2018

Gross Profit Margin by BU BU1BU2BU3

29

STATEMENTS OF COMPREHENSIVE INCOME HIGHLIGHT

Profitability Ratio

Profit Margin

• GC’s gross profit margin of 1H/2018 was higher than

1H/2017’s due to higher selling price in Q2/2018

resulting from plant maintenance shutdown of some

producers. In addition , during Q2/2017 there was a

severe price war among traders led by oil price

fluctuation.

• GC’s net profit margin of 1H/2018 has been

increasing compared to 1H/2017’s due mainly to the

higher gross profit margin.

Revenue and Net Profit

In 1H/2018, Sales value decreased from 1H/2017’s

around 7% due to the decline in sales value of BU1 as

a result of soften private consumption.

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

5.48 6.29 6.48 6.64

7.74

1.31 2.17 2.33 2.40 2.32 12.08 19.56

21.69 20.44 19.72

-

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

2014 2015 2016 2017 1H/2018

Gross Profit Margin (%) Net Profit Margin (%) ROE (%)

ROE Profit Margin

3,659 3,659 3,985

3,741

1,892

48

79 93 90

44

-

30

60

90

120

150

0

500

1000

1500

2000

2500

3000

3500

4000

2014 2015 2016 2017 1H/2018

Revenue (

Mill

ion B

aht)

Revenue Net Profit

Revenue & Net Profit

30

STATEMENTS OF FINANCIAL POSITION Unit : Million Baht

Asset 30/6/2018 31/12/2017 Change %

Trade Receivables 672.33 611.90 60.43 10%

Inventory 463.34 467.30 -3.96 -1%

Net Fixed Assets 112.88 116.95 -4.07 -3%

Total Assets 1,289.86 1,242.08 47.78 4%

Liabilities

Short Term Loan 534.14 575.00 -40.86 -7%

Trade Payables 271.51 179.44 92.07 51%

Total Liabilities 845.33 797.40 47.93 6%

Equity

Paid up Capital 200.00 200.00 0.00 0%

Share Premium 56.03 56.03 0.00 0%

Retained Earnings 188.50 188.65 -0.15 0%

Total Equity 444.53 444.68 -0.15 0%31

STATEMENTS OF FINANCIAL POSITION HIGHLIGHT

D/E ratio is relatively lower. D/E ratio drop from 4.35 times since

2004 which was decreased after IPO proceeds. However, the higher D/E

ratio in 1H/2018 compared to ending 2017 was resulting from the increase in trade accounts payable.

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.

2.01 2.27 2.16

1.79 1.90

-

0.50

1.00

1.50

2.00

2.50

2014 2015 2016 2017 1H/18

Debt to Equity Ratio

1.36 1.33 1.34 1.43 1.40

-

0.50

1.00

1.50

2.00

2014 2015 2016 2017 1H/18

Current Ratio

32

Dividend

(BPS.) Before On X-Date

30-Jun-18 0.18 7-Sep-18 20-Aug-18 n/a n/a 3.46%*

31-Dec-17 0.22 30-Apr-18 12-Apr-18 5.45 5.15 4.04%

30-Jun-17 0.18 8-Sep-17 23-Aug-17 5.25 5.10 3.43%

31-Dec-16 0.20 17-May-17 27-Apr-17 5.60 5.40 3.57%

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%

* Calculated from closing price on 3/8/2018 @ 5.20 baht

Operation

Period EndingPayment Date X-Date

Price with X-Date Dividend Yield

(cal. From before

X-Date Price)

DIVIDEND PAYMENT RECORD

DIVIDEND PAYOUT RATIO

108

77 96

124

80 76 70

48

79 93 90

44

74%84% 83% 80%

99%94% 91%

97%88% 91% 89%

82%

0%

20%

40%

60%

80%

100%

120%

140%

-

20

40

60

80

100

120

140

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

34

4.50 4.70

2.30

5.50

(0.90)

3.30 3.81

3.02

2.18 1.89

(0.90)

0.20 0.70

3.00

4.50

2.32 1.88

0.83 1.55

2.85 2.43 2.25

1.73 1.40 1.40 1.40

5.69

8.92

10.45

9.13 9.78

8.85

7.29 7.23 6.86

5.22

8.22 7.84 7.62

(2.00)

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Inflation Rate Avg 1 Year Deposit Interest Rate GC's Dividend Yield (%)

Remark : Source Bank of Thailand http://www2.bot.or.th/statistics/ReportPage.aspx?reportID=409

*Interest rate is a average interest rate from Bank of Thailand

GC’S DIVIDEND YIELD

35

Thank you, Questions are welcome