vision: asean sustainable business...

Vision: ASEAN Sustainable Business Leader

Strategies: 1. ASEAN Expansion2. High Value Added products & services (HVA)

Industry Leader (Construction Materials) 2015 / 2014 / 2013 / 2012 / 2011

NDR in MalaysiaHosted by Thanachart

Feb 2, 2016

P. 2

Agenda

Strategies & Key Points Business Updates Sustainability & People Financials Appendix

P. 3

ASEAN Expansion: CAPEX and Investment

Majority of the CAPEX & InvestmentCement and Building Materials: Roll out new cement plants, where there are opportunities to grow. Acquire assets in oversupplied markets. Expand new and enhance existing distribution networks across ASEAN. others

Chemicals: Debottleneck Chandra Asri (Indonesian cracker). Flexible feedstock cracker (Vietnamese complex). others

Packaging: Gear towards packaging solution. Improve productivity in the fibrous chain. others

P. 4

Indonesia Vietnam Cambodia Myanmar Laos Philippines

Total Sales (MB) 26,464 30,802 11,282 9,735 2,946 8,991

Total Asset (MB) 45,043 26,600 11,069 11,003 6,623 7,170

Total Staffs 7,135 6,878 475 422 53 1,079

Businesses:• Cement-Building

Materials

• Chemicals

• Packaging

- Cement Plant

- RMC- Ceramics

Tiles- Pipe &

precast- ALC

- Chandra Asri- PVC

- Box Plant

- White Cement

- Concrete Roof

- Ceramic Tiles

- PVC pipe- PVC

- Packaging Paper

- Box Plant

- Cement Plant

- RMC- Concrete

Roof

- Cement Plant

- RMC

- CementPlant

- RMC

- Ceramics

- Packaging Paper

Noted: data as of Dec/15

ASEAN Expansion: SCG’s businesses in FY2015

P. 5

ASEAN Expansion: Sales segments in FY2015

Export Destinations

ASEAN Sales by countries

Sales Destinations

P. 6

ASEAN Expansion: ASEAN Sales (exports + localized operations)

Export to ASEAN by countries ASEAN Operation by countries

0

20,000

40,000

60,000

80,000

100,000

120,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MB

30,93637,496

43,923 40,56651,750

61,21374,465

85,537

100,912 100,150

Export to ASEAN

ASEAN Operation

ASEAN Operations as a % of Sales

3% 5% 5% 7% 7% 7% 8% 9% 9% 11%

(Flat y-o-y)

+6% y-o-y

-6% y-o-y

P. 7

R&D and Product Design Team:2016 budget is approximately 1% of total sales.

364 (Ph.D. = 9) 1,646 (Ph.D. = 114)2007 Jan/16

Note: includes recent acquisition of Norner Group (Norway) 50 R&D staffs (10 Ph.D.)

2. R&D and Product Design Team

1. R&D Spending SBU:

P. 8

HVA Strategy:(High value added products and services)

HVA’s Revenue from Sales

HVA attributes: 5-10% higher margin Performance Solutions provider

Service & Design Branding

Business 2013 2014 2015

Cement-Building Materials 41% 42% 41%

Chemicals 27% 27% 31%Chemicals (Includes associates) 50% 50% 53%

Packaging 38% 39% 39%

P. 9

HVA examples

Cement-Building Materials

“ Color rendered mortar”

“Roofing solution”

“Large format ceramics”

P. 10

Chemicals

“ Medical grade plastic”

“Wire & Cable”“ Automotive Cluster”

“ EU-certified PE water pipe”

“Roto molding”

HVA examples

P. 11

Packaging

“ Lightweight packaging solution”

“Less paper-Same strength”“Up to 25% lighter”

“Glassine paper”“Flexible Packaging”

HVA examples

P. 12


Agenda

P. 13

Revenue & Net profit segments

Other = Mainly SCG Investment and Corporate

Revenue from Sales

Profit for the Period

FY2014487,545 MB


36%

Packaging13%

Chemicals51%

FY2015439,614 MB (-10% y-o-y)


38%

Packaging16%

Chemicals46%

FY201433,615 MB

FY201545,400 MB (+35% y-o-y)

Other15%

ChemicalsEquity Income

8%

Chemicals Subsidiaries

28%Cement-Building Materials

39%

Packaging10%

Other8%

ChemicalsEquity Income

16%

Chemicals Subsidiaries

46%


23%

Packaging7%

P. 14

ASEAN: SCG’s cement plants location in ASEAN

Yangon

Khammouan Plant55 km.

to Thai border

Phnom Penh

Mawlamyine Plant

KampotPlant130 km.

to Phnom Penh

330 km.to Yangon

NEW PLANTS: Start up

Cambodia #2 0.9 MT Sept/15

Indonesia 1.8 MT Nov/15

Myanmar 1.8 MT mid-2016

Laos 1.8 MT mid-2017

6.3 MT

EXISTINGThailand 23 MT

Cambodia #1 1.1 MT

Vietnam 0.2 MT

P. 15

Jakarta

SJW

JakartaJakarta

100 km.65 km.

Jakarta

BogorBogor

65 km.

Bandung

Indonesia: SCG’s cement plant location in West Java

P. 16

0

10

20

30

40

50

60

70

80

90

100

Laos Cambodia Myanmar Thailand Indonesia Vietnam

ASEAN cement markets: FY2015

Export

Noted: Estimated information, as of Oct 2015

MT - Domestic demand- Domestic capacity

50

Export

70

6056

9288

54

40

873433

Import3 MTImport

2 MTImport1 MT

60MTin 2016

103MTin 2018 103MT

in 2018

P. 17

ASEAN cement markets

Thailand Cambodia Indonesia Myanmar Laos Vietnam

Demand GrowthFY2015 0% +9% +1% +11% +5% to +7% +8%FY2014 -1% +10% +3% +11% +6% +11%

Market price: ex-factory (FY2015)US$ / ton $50 - $52 $58 - $68 $50 - $60 $53 - $63 $75 - $80 $50 - $56

Local currency / ton 1,800 to 1,850

234,958 to275,468

692,789 to 831,346

68,488 to 81,410

611,245 to651,995

1,094,500 to 1,225,840

FX rate 36.0 4,051 13,856 1,292 8,150 21,890

Note: Indonesia’s cement demand is based on data from the Indonesian cement association (ASI).Vietnam’s cement demand in 2015 included only the first eleven months.

P. 18

Indonesia’s Cement Segments

40 MT

Bagged40%

Bulk60%

Bagged 80%

Bulk 20%

60 MTIndonesia

Thailand

Market Segments (2015) Segmented Strategy

Bulk(majority of volume)

Bagged

RMCJayamix

(subsidiary)

NetworksDistribution

Kokoh(subsidiary)

+ Building Materials

(subsidiary)

+

P. 19

Cement: Thailand supply and demandThai domestic market share of 40%

Thai cement market – all players

Total Domestic Growth Rate (% y-o-y)- 10% -45% 15% -8% -1% 23% 6% 11% 9% -2% -6% -6% 1% 10% 3% 12% 7% -1% 0% 3-5%

Avg. 7%

0

10

20

30

40

50

60

70

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F

MT

ASEAN’s CrisisCapacity 56MT

(60MT in 2016)

Domestic Demand

Demand + ExportUtilization

Approx. 85%

P. 20

Cement: domestic market segments

Total market growth (y-o-y)

FY132014 2015

Q1 Q2 Q3 Q4 FY14 Q1 Q2 Q3 Q4 FY15

7% +4% 0% -3% -3% -1% -2% +2% -1% +2% 0%

Segment portions

Commercial (approx 20%)

20% +1% +14% +5% -4% -8% -6% +1% -3% 0% -2%

Government (approx 30%)

3% -1% +1% -2% -3% +0% +10% +11% +11% +12% +11%

Residential(approx 50%) 6% -1% +1% -1% -2% -3% -7% -3% -7% -4% -5%

P. 21

Thailand: 2.4 trillion Baht infrastructure plan

direct cement demand of approx 10 MT (8-10 years)

Exclude:

1. High speed train ~ 400 billion baht2. Suvarnabhumi airport development ~ 110 billion baht

Note: - updated as of Oct 2015- projects that counted for bidding in 2015-2016 based on the projects in latest action plan 2016

P. 22

Cement: Thailand mass transit

Note: *%progress updated in Sep-Oct 2015 **Already pass PPP committee

MRT: progress updateTotal project value (2015-2016) = 590 billion baht

PROJECT DISTANCE(KM)

BUDGET(Billion Baht) BIDDING %Progress* Complete

Project

Under Construction

Purple Line 23 64 100% Dec-2015

Blue Line** 27 83 68% 2019

Green Line (Baring - Samutprakan) 13 25 65% 2018

Red 26 73 34% 2019

Light Green Line (Mochit - Kukot) 19 59 Beginning 2019

Total 304

Contractor Bidding in 2016

Orange Line 21 110 H1‐ 16 2021

Pink Line ** 35 57 May‐16 2021

Yellow Line** 29 55 May‐16 2020

Light Red + Red 26 22 2016 2020

Purple Line (extension) 24 104 2016‐2017 2022

Total 348

P. 23

PROJECT BUDGET (billion baht) BIDDING

Double Tracks – meter gauge: Jira-Khonkean 26 129 billion baht Chachengsao - KeangKoi 11

PrachuapKhiriKhan-Chumporn 17 H1-16

Nakornpathom-Huahin 20 2016MapKabao-Jira 30 2016Lopburi-Paknam 25 2016

Total 129

Double Tracks – standard gauge: Bangkok – Kangkoi (1st phase) 20 Oct-15

495 billion baht Nongkhai -Kangkoi - Maptaphut N/A

Total 20Motorways: 160 billion baht Pattaya - MapTaPhut 20

Bangpain – NakonRatchasima* 85 Q1-16

Bangyai - Kanjanaburi * 55 Q1-16Total 160

Other Roads: 8 billion baht International Connection + domestic extension 8

Total 8

High Speed Train: 450 billion bahtBKK-Rayong and BKK-Hua Hin 250 studying

Bangkok-Chiangmai (Thailand-Japan) 200 studying

Total 450Grand Total 767

Cement: Provincial Highways and Train Projects

Bangkok-Chiangmai (Thailand-Japan) 200

Note: *Already pass PPP committee

P. 24

Thailand: Domestic cement price of $51/ton.

Average Domestic Price of Grey Cement (Net ex-factory)

Bulk Cement (%) 55% 56% 58% 61% 63%

Sale Mix- Bagged Cement (%) 49 44 42 42 45 44 40 38 41 40 37 37 39 39 35 35

0

500

1,000

1,500

2,000

2,500

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Baht/Ton

2010 2011 2012 2013 2014 2015

P. 25

Thailand: SCG’s cement exports (FOB prices)

4.76.0 7.1 7.6

6.2 6.1 6.8 7.0 8.1 8.2 7.6 7.3 6.4 5.74.0 4.4 4.4

22 24 22 2124

27

34 35 34

40 3841

45

5257

61 61

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Export Volume (MT)

Export Prices$/ton

Bagged cement % : 11% 17% 31% 30% 42% 61% 66% 82%

P. 26

Housing Products Ceramics Tiles (floor & wall)1. Roofing Tiles

2. Fiber Cement Products (ceiling and wall)

Types of tiles• Fiber Cement roof tiles• Concrete roof tiles• Ceramic roof tiles

SCG’s others products

SCG’s capacity 225 mill sqm.Thailand 106Vietnam 75Indonesia 32Philippines 12

P. 27

SCG’s ASEAN subsidiaries

SCG’s ceramic sales

35

50 51 50 49 53 51 51 49 52 49 48

0

20

40

60

80

100

120

140

160

0102030405060708090

100

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Baht/sqm.M sqm.

Average Price

Sales volume

Effect from the consolidation

P. 28

SCG Chemicals: ASEAN portfolio

Flexible products (metathesis)

Thailand VietnamCrackers (SCG 2/3, DOW 1/3)

ROC (1999)Rayong Olefins

1.2 MT C2 + C3

MOC (2010)Map Ta Phut

Olefins1.7MT C2 + C3

Downstream

Subsidiaries Associates

PEPP

PVCOthers

Dow Mitsui

Chemicals Mitsubishi

Rayon BST

Indonesia Cracker (SCG 30%)

CAP (1995)Chandra Asri

0.9 MT C2 + C3

De-bottleneck(Late-2015)

1.3 MT C2 + C3

CrackerLong Son Petrochemicals

(LSP) - $4.5 Billion

+1 MT C2 + C3

Downstream

Subsidiaries Associates

PEPPSMBD

Michelin SSBR (2017 start)

Project DetailsJV basis

Located in Southern Vietnam

P. 29

Chemicals outlook

PE (C2) consumer goods

PP (C3) capital goods

MMA (C4) consumer / capital goods

PVC construction related

BD (C4) rubber substitutes

PTA textiles industry

olefins

aromatics

P. 30

Historical margin: HDPE – Naphtha

0

100

200

300

400

500

600

700

800

900

1,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$/ton

Trough $300/ton

Trough$400/ton

Asian crisisUS crisis

EU crisis

P. 31

%

3%

8%

5%

1%

3%2%

3%

Ethylene world supply growth

Incremental supply growth (MT):

4% 4% 4% 4%

3% 3% 4% 4%

2.8 4.4 4.6 4.7 4.7 3.5 10.5 6.9 2.0 5.0 3.4 5.0 5-6 6-7 6-7 6-7 6-7

Note: as of June/15

4% 4%

0123456789

10

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

P. 32

Ethylene world capacity: Naphtha + conventional gas = 90% of world’s capacity

Ethylene world capacity (2020)

New capacity by region (2016 - 2020)

16%25%

32%27%

31%15%

14%

32%37%

5%

5%

54%

6%

33%

19%

20%

22%

Naphtha

Conventional Gas

New shale gas cracker

CTO + MTOand Others

N. Asia

North America

Europe

Middle East

South EastAsia

8 crackers = 5% of the world’s capacity. 6 yrs required from planning to startup

near Mongolia (coal reserves) with water scarcity. 5x greater water usage than conventional. 2.5x higher investment cost than conventional. deleted from China’s investment tax promotion.

P. 33

%

3%

7%

4%

2%

5%

4%

6%

Propylene world supply growth

Incremental supply growth (MT):

4%

5%

6%

3%4% 3% 3%

1.8 2.4 3.3 4.1 4.8 2.8 5.9 4.1 2.1 4.4 3.8 6.2 5-6 5-6 4-5 3-4 3-4

Note: as of June/15

5%

4%

6%

0

1

2

3

4

5

6

7

8

9

10

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

P. 34

29%

14%

9%

48%

Propylene world capacity: Naphtha + refinery = 77% of world’s capacity

Propylene world capacity(2020)

Naphtha

CTO & MTO& others

Refinery

PDH

Liquid based (naphtha & refinery) are 77% of the world’s capacity, and are global price setters

PDH (shale + LPG) amount to 18 MT or 14% of the world’s capacity

New capacity by region (2016 – 2020)

3%

20%

61%

12%

4%

North Asia(mainly PDH)

EuropeMiddle East

North America

South EastAsia

P. 35

HDPE – Naphtha Price Gap

Note: Prices refer to SEA regional prices

P. 36

PP – Naphtha Price Gap

Note: Prices refer to SEA regional prices

P. 37

PVC

Note: Prices refer to FE regional prices

P. 38

Price gaps of associates

Note: BD and MMA prices refer to SEA regional prices , PTA prices refer to Asian regional prices

P. 39

SCG Packaging:

Packaging Chain - Rengo’s 30% stake in box businesses and Vietnam’s packaging paper plants.

Fibrous Chain - Nippon Paper’s 30% stake.

Recycled Paper(Imported + Local)

Packaging Paper2.3 MT

• Tertiary (1.0 MT)

• Secondary

• Primary

Tree farmed eucalyptus

(mainly contract farm)

Woodchip Pulp0.47 MT

• Dissolving Grade Pulp (textile)

• Hygienic Food Application

• Printing and Writing

Baling station(across ASEAN)

P. 40

Packaging chain prices

Note: regional prices

P. 41Note: regional prices

Fibrous chain prices

P. 42

SCG Investment:FY2015 contribution was 2,564 MB in equity income, and another 2,337 MB from dividend income.

SCG InvestmentManaged by the CFO

Siam Kubota Leasing

Siam Kubota Metal Tech

Siam Toyota Manufacturing (4%)

Automotive business

Toyota Motor Thailand (10%)

Siam Yamato Steel (10%)

OthersAgricultural business

Siam Kubota Corp (40%)

Musashi Auto Parts (21%)

Maxion Wheels (30%)

Aisin Takaoka Group (30%)

Note: 10% divestment of Michelin(Thailand) in Q1/15

P. 43


Agenda

P. 44

Systematic training roadmap

*

*

*

*

*

* = international programs

P. 45

External training programs

Program Current Since Classes Staffs

AMP – Advanced Management Program HarvardWharton

19822007

327

8114

EDP – Executive Development Program IMDColumbia

20142007

14

45177

MAP – Management Acceleration Program Duke CE 2015 1 56

MDP – Management Development Program WhartonDuke

19802011

314

1,474225

Marketing Excellence Program Kellogg 2006 9 615

Note: as of Nov/15

P. 46

Corporate scholarship: 490 scholarships since 1973

MBA Engineering and Specialist as of Sept/15

Note: 391 scholars are active, others have mostly retiredCurrent 57 students: MBA 11, Engineering 32, Specialist 14

P. 47

: ranked “Gold Class” which is top group for each sector.

: initial year of DJSI membership.

2015-2008

2015 / 2014 / 2013 / 2012 / 2011 : Industry Leader(Construction Materials)

2004

DJSI was established in 1999 as the first global index to monitor sustainability of listed companies.

+60 global funds in 16 countries follow the DJSI. For further details: www.sustainability-index.com

DJSI: Dow Jones Sustainability Index

P. 48

DJSI: SCG’s rankings in 2015

Year Gold Silver Bronze

2015 SCG* Cementos Argos, Grupo Argos LafargeHolcim

2014 SCG* Cementos Argos, Grupo Argos Holcim

2013 SCG* Cementos Argos, Grupo Argos, Holcim Lafarge

2012 SCG* Duratex, Owens Corning, TOTO

Asahi Glass, CRH, Holcim, Italcementi

2011 SCG* CRH, Holcim, Owens Corning

Asahi Glass, Italcementi, Lafarge

2010Panasonic Electric Works *,

SCG, Holcim CRH, Italcementi,

Lafarge, Owens Corning Boral, Geberit, Weyerhaeuser

2009Panasonic Electric Works *,

SCG, Holcim, CRH Boral, Lafarge Italcementi

2008 Holcim *, SCG, CRH, Panasonic Electric Works

‐ Italcementi, Lafarge

2007 Holcim * SCG, CRH, Panasonic Electric Works

Italcementi, Asahi Glass

Note: *Industry Leader

P. 49


Agenda

P. 50

Net debt:Internal leverage target of 2.5 times (Net debt / EBITDA)

Debt profile in FY2015:• Net Debt / EBITDA = 2.0x• Net Debt / Equity = 0.7x• 98% are Thai Baht• 93% are fixed • Interest cost of 3.9%• Cash on hand of 40,729 MB

243.5

197.1

178.0 175.7

148.4

126.3114.9

100.6 100.5 103.0 99.9

120.5 122.0

83.6

112.1

137.6

157.8 164.4 162.5

9.2

7.7

6.45.8

5.1

4.1

3.1

1.8 1.9 1.8 2.0

3.12.6

1.82.4

3.02.6 2.5

2.0

0

1

2

3

4

5

6

7

8

9

10

0

50

100

150

200

250

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Billion Baht(Net Debt)

Times (x)(Leverage)

Net Debt on EBITDA

P. 51

CAPEX & Investments:Forecasted FY2016 CAPEX & Investments of approximately 50,000 MB.

- CAPEX includes debottlenecking, expansion projects, and major turnaround.- Investments are acquisitions and purchase of shares.

P. 52

0.01.0

3.0

6.0

15.0 15.0 15.0 15.0

7.58.5

12.5 12.511.0

15.5

12.5

16.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Dividend payout

Note: Dividend policy established in 2008

Payout policy = 40-50%

100 yrspecial

dividend

Baht / Share

% ofNet Profit 0% 16% 25% 36% 49% 56% 61% 59% 54% 42% 40% 55% 56% 51% 45% 42%

P. 53

Mainly retail investors.

No debt covenant.

Thai Baht, mainly 4 years fixed.

“A” rating by Fitch.

Unsecured, unsubordinated.

NOTE: - Debentures amount to 166,500 MB, as of Nov/15.- 10 Bill Baht (4 years, 3.40% fixed) debenture was issued on Nov 2/15 to replace the matured 10 Bill Baht

tranche (4-years, 4.50% fixed).- The Apr 1/16 maturity will be refinance with a 25 Bill Baht issuance (25 Bill Baht with a 4 year tenure).

Debenture profile

Debenture Maturity Table

40,000

30,000

15,000

25,000

50,00045,000

40,000

25,000

0

10,000

20,000

30,000

40,000

50,000

60,000

2012 2013 2014 2015 2016 2017 2018 2019

MBOutstandingMatured

P. 54


Agenda

P. 55

Company background

Founded in 1913. Listed in 1975 on the SET. Market cap approximately of $14.3 Billion (as of Jan/16) Free float of 70%.

Key figures (FY2015): Net Sales 439.6 Billion Baht ($12.8 Billion) EBITDA 82.7 Billion Baht ($ 2.4 Billion) Net Profit 45.4 Billion Baht ($ 1.3 Billion) Assets of 510.0 Billion Baht ($14.1 Billion) 53,096 staffs (regional staff: 31% of total staff).

Chemicals

Paper

P. 56

Shareholders

Local 66%– Institution / Retail 36%– CPB 30%

Foreign 34%– Foreign Board 25%– NVDR 9%

Dec/15

- CPB (Crown Property Bureau ) = Asset management arm of monarchy

Foreign 34%

Foreign Board25%

NVDR9%

Thai (Retail / Institution)

36%

Thai(CPB)30%

70% Free float

P. 57

Board of Directors

Management Committee

CFO & Investment

SCG Packaging

SCG Chemicals

President & CEO

Audit Committee

Internal Audit Office

Corporate Administration

SCG Investment

Governance and Nomination Committee

Remuneration Committee

SCG Cement - Building Materials

Organization chart

P. 58

Operational history

Crisisof

1997Organic growth

Takeover New industries

1913 - 1970’s 1970’s - 1980’s 1980’s - 1990’s

“Historic roots” “Opportunistic” “Partner of choice”

Cement Construction Materials Steel

Ceramics Paper & Packaging

Chemicals Automotive Electrical

1998 - 2003

Restructure

2004 - onwards

ASEAN&

HVA

Cement – Building Materials Chemicals Packaging Investment

Today…..

P. 59

ASEAN’s consumption per capita

Cement

Note: data as of 2014

PackagingChemicals(PE+PP)

P. 60

Cement – Building Materials: Prime Group: additional 15% stake Global House Int’l: 50% JV with Siam Global House towards regional construction-related retail Mortar: 2 MT capacity expansion (Lampang and Khon Kaen) - H1/16 start Woodchip Cement Board: 55% stake M&A in Panel World, with cap of 2.4 Mill sqm. Cement plants: 6.3 MT (Laos, Myanmar, Indo, Cambodia) - Q2/15 - Q2/17 starts. Ceramic (Italy): 33% JV, 5 Mill sqm. - started Q1/15 Precast concrete: two precast plants totaling 2.4 Mill sqm. - started Q1/15 MG Stone Slabs: 400,000 sqm. green-field - H2/15 start

Chemicals: Norner Group (Norwegian innovation and technology): 51% stake M&A Debottleneck of Chandra Asri (Indonesia): Ethylene capacity gained up 43% - end of 2015 start LDPE coating grade (HVA) of 60,000 tons, totaling 152,000 tons per year, by mid-2016 in Thailand

Packaging:Packaging chain: Packaging paper in Vietnam: 243,000 tons expansion.- Q2/17 start Flexible Packaging: BATICO in Vietnam, Prepack in Thailand, total capacity 520 Mill sqm. Box plants: Indoris in Indonesia, 90% stake M&A, 8,000 tonsFibrous chain: Glassine paper (HVA): Upgrade paper machine for 60,000 tons/yr - Q2/16 start Nippon paper’s 30% stake in SCG Paper’s Fibrous chain. Divestment of TBSP (transaction value of approximately 720 million Baht).

(2,190 MB)(200 MB)

(2,800 MB)(550 MB)

(39,000 MB - $1,300 M)(506 MB)

(2,500 MB)(1,500 MB)

(340MB)

(4,125 MB)(3,000 MB)

(290 MB)

(1,825 MB)

transaction is approximately 720 million Baht.

Recent Expansion Announcements:

P. 61

Cement – Building Materials: Regional construction-related retail – 50% JV with Siam Global House Sep/14 (200 MB) Mortar expansion of 2 MT in Lampang and Khon Kaen Sep/16 (2,800 MB) Panel World 55% stake M&A (2.4 Mill sqm. + 2.4 Mill sqm. in Q4/14) Jul/14 (550 MB) Florim Ceramiche (Italy) – 33% JV (5 mill sqm in Italy, starting in H1/15) (HVA) Apr/14 (506 MB) Precast concrete – 2 plants by mid-2015. Oct/13 (2,500 MB) Greenfield MG Stone Slabs (400,000 tons), start-up in 2015. (HVA) July/13 (1,500 MB) Purchase all shares of Monier Group. July/13 (650 MB) Purchase share of TOTO in sanitary ware (to 71.4% from 35.7%) and fitting assets (to 90.6% from 44.8%). May/13 (2,600 MB) Logistics (temp-controlled) JV with Nichirei Logistics Group. (HVA) Apr/13 (575MB) Construction retail trade - 30% stake M&A in “Siam Global House PLC.” Oct/12 (~10,000 MB) Mortar expansion of capacity by 50% to 3.1 million tons. July/12 (1,000 MB)

Packaging Flexible Packaging Business, with a 72% stake M&A in “Prepack” (HVA) Jan/15 (1,500 MB) Upgrade paper machine for 60,000 tons/yr Glassine paper (HVA), expected startup in early 2016 Apr/14 (1,825 MB) Nippon paper’s equity injection for a 30% stake in SCG Paper’s Fibrous chain Aug/13 M&A (75%) of two box plants (121,000 tons). May/13 (888 MB) Greenfield Packaging Paper (400,000 tons), start-up within 2014 Oct/12 (6,700 MB) Greenfield Machine Glazed Paper (43,000 tons), 45% JV with Nippon Paper Group. (HVA) Jun/12 (2,200 MB) Upgrade existing pulp facilities to produce Dissolving Grade Pulp. (HVA) July/12 (400 MB) M&A of box plant (Tawana - 61,000 tons). Mar/12 (410 MB)

Chemicals Increase stake in BST from 26% to 49%. Nov/13 (8,028 MB) LDPE coating grade of 60,000 tons, totaling 152,000 tons per year. Apr/13 (2,475 MB) Greenfield LLDPE cast sheet film (15,000 tons), 45% JV with Mitsui Chemicals Tohcello. (HVA) Mar/12 (1,400 MB) Increased stake in Thai Plastic and Chemicals to 91% (from 46%). Mar/12 (11,500 MB)

Recent Expansions: Thailand only

Note: as of Jun/15

P. 62

SCG’s capacity (2015)

Chemicals - Naphtha Cracker (consolidated) Chemicals - Associates (equity accounting) Ethylene 1,700,000 tons Dow Chemicals JV (50%) Propylene 1,200,000 tons - LLDPE 650,000 tonsChemicals - Downstream (consolidated) - Propylene Oxide 390,000 tons HDPE 920,000 tons - Specialty Elastomer 220,000 tons LDPE + LLDPE 220,000 tons - PS 140,000 tons PP 720,000 tons - SM 300,000 tons PVC (Thai, Indo, Viet) 886,000 tons - Synthetic Latex 18,000 tons

Mitsui Chemicals JV (20% - 50%)Cement - Building Materials (consolidated) - PTA (50%) 1,440,000 tons Grey Cement (TH, KH, ID) 27 million tons - PET (20%) 133,000 tons Ready-Mixed Concrete 550 batching plants - PP Compound (46%) 168,000 tons (Thai, Cam, Myan, Indo, Laos, Viet) - LLDPE Cast Film (45%) 15,000 tons White Cement (Thai, Viet) 0.4 million tons Mitsubishi Rayon JV (47%) Ceramic Tiles (Thai, Indo, Phil, Viet) 225 M sqm - MMA 175,000 tons Roofing Tiles (Thai, Cam, Phil, Viet) 89 M sqm - Cast Sheets 20,000 tons Ceiling & Wall Products 99 M sqm Chandra Asri JV(30%) Autoclaved Lightweight Concrete 27 M sqm - Ethylene 600,000 tons

- Propylene 320,000 tonsPackaging (consolidated) - HDPE / LLDPE 336,000 tons Packaging Paper (Thai, Phil, Viet) 2,306,000 tons - PP 480,000 tons Box (Thai, Malay, Sing, Viet, Indo) 1,013,000 tons - SM 340,000 tons Printing & Writing Paper 570,000 tons Bangkok Synthetic (49%) Short Fibre Pulp 470,000 tons - Butadiene 140,000 tons

- SBR 80,000 tons

P. 63

Incremental capacity

-2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Chemicals Upstream (Cracker) - ('000 tons) Packaging - ('000 tons) Ethylene (subsidary) 800 800 800 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700 Printing & Writing Paper 365 570 570 570 570 570 570 570 570 570 570

Propylene (subsidary) 400 400 400 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 Packaging Paper 1,660 1,660 1,880 1,880 1,880 1,880 1,956 2,306 2,306 2,306 2,549Chandra Asri (30% stake) Box 550 637 692 741 795 855 1,013 1,013 1,013 1,013 1,013

Ethylene - - - - 600 600 600 600 600 860 860 - - - - - - - 43 43 43 43

Propylene - - - - 320 320 320 320 320 470 470

Flexible Packaging - - - - - - - 17 17 19 19

(Thai + Vietnam)

Chemicals Downstream - ('000 tons) Cement - (MT) HDPE (subsidiary) 520 520 520 920 920 920 920 920 920 920 920 Grey Cement (TH, KH, MM, ID, LA) 23 24 24 24 24 24 24 24 27 29 30 PP (subsidiary) 320 320 320 720 720 720 720 720 720 720 720 White Cement (TH, VN) 0.2 0.2 0.2 0.2 0.2 0.4 0.4 0.4 0.4 0.4 0.4

PVC (90% stake in TPC) 858 828 766 886 886 886 886 886 886 886 886 Mortar 0.9 1.3 1.3 1.3 2.1 2.1 2.1 3.2 4.1 6.6 6.6

Chemicals Downstream (JV) - ('000 tons) Building Products - (M sqm) LLDPE (Dow JV) 300 300 300 650 650 650 650 650 650 650 650 Ceramic Tiles 95 122 122 122 149 149 225 225 225 225 225

Specialty Elastomers (Dow JV) - - - - 220 220 220 220 220 220 220 Ceramic Italian JV - - - - - - - - 5 6 6

Propylene Oxide (Dow JV) - - - - 390 390 390 390 390 390 390 Ceiling & Wall product (TH) 37 43 54 58 60 68 86 99 99 100 100

SSBR (BST JV) - - - - - - 50 50 50 100 100 Lightweight concrete (TH, ID) 15 15 15 15 15 15 21 27 27 30 30

- - - - - - - 15 15 15 15 Modular Home (Sekisui Heim JV) - - - 200 200 200 1,000 1,000 1,000 1,000 1,000

MMA (Mitsubishi Rayon JV) 85 85 85 175 175 175 175 175 175 175 175

- - 20 20 20 20 20 20 20 20 20

HDPE / LLDPE (CAP JV) - - - - 336 336 336 336 336 336 336

PP (CAP JV) - - - - 480 480 480 480 480 480 480 SM (CAP JV) - - - - 340 340 340 340 340 340 340

Cast Sheets (Mitsubishi Rayon JV)

Machine Glazed Paper (Nippon Paper JV)

LLDPE cast sheet film (Mitsui Tohcello JV)

Total CapacityCapacity at year end

Total CapacityCapacity at year end

P. 64Note: EBITDA includes dividend received

EBITDA

Dividend from associated companies

EBITDA from OperationsMB

28,584 33,704

50,359 46,936 49,38043,246

34,20644,046 41,943 40,838 42,171

58,452 61,148

79,346

1,8343,484

4,267 6,5717,771

6,762

4,577

3,070 4,006 5,415 3,545

2,8135,345

3,344

0

20,000

40,000

60,000

80,000

100,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

30,41837,188

54,626 53,50757,151

50,008

38,78347,116 45,94946,253 45,716

61,26566,493

83,218

P. 65

Equity Income

Non-Chemicals

Chemicals

5,485

(606)

2,774 2,795

7,199

2,536

2,784

4,2143,123 1,880

2,263

1,706

1,966

2,049

1,289

2,167

3,772 3,313

3,094

-1,000

1,000

3,000

5,000

7,000

9,000

11,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MB

5,677

6,747

9,808 9,9349,096

8,243

4,669

6,7747,200

8,390

1,561

6,546 6,108

3,1413,962

5,5946,811

7,2165,980

2,9635,234

6,341

10,293

P. 66

Profit for the period

EPS(Bt/share) 12.2 16.6 30.4 26.9 24.5 25.3 14.0 20.3 31.2 22.7 19.7 30.4 28.0 37.8

Divestment

Non-Chemicals

Chemicals

5,256 7,705

17,973 16,263 17,54513,767

5,86912,681 12,641 9,763

2,58510,788 12,461

28,488

5,886

10,101

15,83214,450 12,612

12,074

10,610

11,727 14,74615,535

20,399

23,360 21,123

15,100

3,462

2,148

2,6781,523

-706

4,511

292

-62

9,995

1,983596

2,37431

1,812

-10,000

0

10,000

20,000

30,000

40,000

50,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MB

14,604

19,954

36,48332,236 29,451 30,352

16,771

23,58024,346

37,382

27,281

36,52233,615

45,400

P. 67

Financials: SCG Cement-Building Materials

Revenue from Sales

69% 65% 67% 64% 65% 63% 65% 62%

31% 35% 33% 36% 35% 37% 35% 38%

0

50,000

100,000

150,000

200,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

InternationalDomestic

MB

47,512 46,378 46,382 45,151 47,081 45,663 43,570 42,674 66% 64%

34%36%

2014 2015

185,423178,988

FY2015 Sales-3% y-o-y

P. 68


* EBITDA margin = EBITDA from Operations / Consolidated Sales

EBITDA Margin *Total 16% 15% 14% 13% 15% 14% 13% 12% 14% 14%

International 9% 9% 9% 10% 10% 11% 10% 8% 10% 10%Domestic 18% 16% 16% 15% 18% 16% 14% 15% 17% 16%Domestic Structural Pro 28% 26% 25% 21% 27% 24% 22% 21% 25% 23%

EBITDA PortionInternational 19% 25% 23% 28% 24% 29% 28% 24% 24% 26%

7,605 6,747 6,388

5,943

7,170 6,435

5,590 5,200

4,114 3,445 3,072

2,549 3,558

2,896 2,073 1,723

0

2,000

4,000

6,000

8,000

10,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

MB

EBITDA

Profit for the period

2014 2015

2014 2015

EBITDA (MB)-9% y-o-y

Profit (MB)-22% y-o-y

26,683 24,395

13,18010,250

P. 69

Note: Domestic business: domestic sales from Thai operations Structural Products: Grey cement, RMC, Others (mortar, white cement, and lightweight concrete blocks).Housing Products: Roofing products, Board & Wood sub, and Home improvement.Ceramics: includes Sanitary ware and Fittings.


Domestic Sales Segments

23% 23% 20% 21% 22% 21% 20% 21%

22%22% 23% 24% 22% 22% 25% 25%

5%5% 5% 5% 5% 5% 5% 5%

16%16% 15%

14%17%

17% 16% 15%

14%14% 15%

13%14%

14% 14%14%

20%

20% 22%23%

20%21% 20%

20%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Structural Products

MB

32,91929,959 31,066

28,79630,530

28,840 28,18326,425

Grey Cement,

21%

RMC 24%

Others, 5%

Housing Products,

16%

Ceramics14%

Logistic and

Others, 20%

113,978 MB(-7% y-o-y)

FY2015 Domestic Sales

P. 70Note: International business = ASEAN Operations, exports from Thailand, and Trading business

Housing - Roofing products, Board & Wood sub, and Home improvement.Ceramics - includes Sanitary ware and Fittings.Trading - are mainly trading of non-SCG products


International Sales Segments

39% 39% 40% 43% 38% 39% 44% 47%

28% 27% 24% 22% 31% 30% 26% 25%

33%34%

35% 35% 31% 31%30% 28%

0

3,000

6,000

9,000

12,000

15,000

18,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Trading

Exports

ASEANOperations

MB

14,59316,419 15,316 16,355 16,551 16,823

15,387 16,249

Myanmar39%

Cambodia14%

Laos11%

Others ASEAN

5%

North Asia5%

South Asia5%

Others21%

FY2015 Exports

FY2015 ASEAN Operations (Products)

Ceramic46%

RMC & Precast

27%

Grey Cement

14%

Building Product

9%

Others4%

FY2015 ASEAN Operations (Country)

Indonesia39%

Vietnam34%

Cambodia16%

Philippines8%

Myanmar3%

P. 71Note: EBITDA = EBITDA from operations + dividend from associated companies

Financials: SCG Chemicals’ EBITDA

4,834 4,671 5,745 6,151 6,600

13,16910,861 9,921153 970

1,863 1,755 111

1,452

42 744

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

DividendEBITDA from Operations

FY14 FY15

21,401

EBITDA 8% 7% 9% 11% 14% 25% 21% 21% 9% 20% Margin

5,6414,987

42,900

7,608 7,906 6,711

MB

14,621

10,903

4,74140,551

2,349

26,142

10,665

P. 72

Financials: SCG Chemicals’ profitability

* Sub/Asso : 65%/35% **Note: SCG Chemicals (Sub + Asso)

FY14 FY15

678 4451,107 565

1,495

2,9001,456

1,348

0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

Equity Income

Subsidiaries

NCI (330) (240) (650) (740) (680) (3,600) (1,540) (1,140) (1,960) (6,960) (Non controlling interest)

Inventory 180 (80) (130) (2,960) (930) 970 (2,160) 330* (2,990) (1,790) Gain (Loss)**

2,480 2,2594,188

7,199

3,534

2,795

MB

4,938

9,182 12,461

28,488

6,838 7,530

P. 73

Financials: SCG Packaging

2,7892,569

2,1522,208

2,6932,512 2,580

3,046*

1,255

887715 591

878764

645

1,176*

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15

+99% y-o-y

+82% q-o-q

3,448 3,463

FY2014 FY2015

MB

15% 15%*15% 15%*EBITDA Margin

EBITDAEBITDA

Profit for the period (MB)

9,718

10,831

FY2014 FY2015

EBITDA (MB)+38% y-o-y

+18% q-o-q

Profit for the periodProfit for the period

Packaging 19% 18% 15% 15% 17% 16% 15% 15%Fibrous 15% 12% 12% 9% 13% 11% 12% 12%

EBITDA Margin

Total 17% 16% 13% 13% 16% 15% 14% 17%*

Gain from sale of TBSP shares

Flat

P. 74

Financials segmented

Sales & Assets (MB):

Sales (MB) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Consolidated 120,353 128,201 148,865 192,395 218,265 258,175 267,737 293,230 238,664 301,323 368,579 407,601 434,251 487,545 439,614Cement 24,183 27,269 30,552 36,658 41,630 44,123 44,087 49,999 46,661 48,954 54,249 67,558

Building Materials 13,046 16,129 18,147 20,542 22,227 22,745 21,281 23,351 26,873 30,719 34,171 41,340 174,642 185,423 178,988

Distribution 53,326 52,191 56,551 68,558 76,070 81,519 86,440 102,672 86,641 96,898 111,920 126,690

Chemicals 38,152 42,394 50,767 75,185 86,084 122,645 130,223 136,527 101,115 144,317 192,929 203,539 209,997 248,118 200,433

Packaging 26,995 29,305 33,564 38,265 40,306 42,645 43,890 47,110 42,729 51,714 54,839 57,430 59,135 64,614 70,907

Assets (MB) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Consolidated 174,804 167,388 176,566 191,081 199,370 226,264 248,256 285,776 315,992 359,219 373,789 395,573 440,633 465,823 509,981

Cement 59,618 60,624 56,315 54,801 55,953 57,791 60,132 60,770 60,681 61,018 60,115 66,808


Distribution 7,813 6,864 6,631 7,765 8,560 10,610 11,143 10,903 10,110 12,177 16,234 24,463

Chemicals 54,284 57,762 67,254 75,186 78,656 109,391 123,205 138,504 165,964 165,087 176,036 176,837 192,063 183,884 185,583

Packaging 25,844 28,720 32,813 39,128 38,575 40,734 46,454 51,089 47,942 50,127 52,463 58,439 65,169 73,987 83,218

P. 75

EBITDA & Profit for the Period (MB):

Financials segmented: continued

EBITDA (MB) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Consolidated 28,884 30,418 37,188 54,626 53,507 57,151 50,008 38,783 47,116 45,949 46,253 45,716 61,265 66,493 82,690

Cement 7,615 7,917 11,581 13,175 13,235 12,200 10,198 11,272 11,616 10,810 12,781 14,824


Distribution 1,268 1,214 602 1,541 1,546 1,498 1,576 1,739 1,581 1,440 1,532 1,564

Chemicals 6,443 6,452 9,851 23,642 19,653 26,199 22,611 12,598 19,482 16,024 14,394 8,628 20,342 26,142 42,900

Packaging 8,205 9,536 9,819 9,840 9,496 9,634 7,943 6,660 7,901 9,129 8,811 8,844 9,473 9,718 10,831

Profit for the Period (MB) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Consolidated 7,634 14,604 19,954 36,483 32,236 29,451 30,352 16,771 24,346 37,382 27,281 23,580 36,522 33,615 45,400

Cement 859 2,006 5,313 6,582 7,916 6,652 5,463 6,006 6,214 6,014 7,288 9,163

Building Materials 410 1,521 2,253 2,700 3,071 1,939 950 778 1,617 1,872 1,476 2,949 16,092 13,180 10,250

Distribution 680 586 251 968 1,079 1,021 939 1,211 1,077 1,061 1,075 1,035

Chemicals 2,611 5,285 7,777 20,523 16,656 17,574 16,982 6,136 12,556 22,609 11,190 2,690 11,292 12,461 28,488

Packaging 3,272 4,079 4,424 4,122 3,689 3,574 2,353 1,658 2,286 3,490 3,331 3,560 3,587 3,448 3,463

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