opportunity day fy2017setlive.thailivestream.com/data-file/events/pdf/...2017 highlights highlights...

Enhances lives everyday withThe Green Chemical Concept

Opportunity DayFY2017

March 6, 2018 | The Stock Exchange of Thailand

Disclaimer

This presentation includes forward-looking statements that are subject to risks and uncertainties,

including those pertaining to the anticipated benefits to be realized from the proposals described

herein. This presentation contains a number of forward-looking statements including, in particular,

statements about future events, future financial performance, plans, strategies, expectations,

prospects, competitive environment, regulation and supply and demand.

GGC has based these forward-looking statements on its views with respect to future events and

financial performance. Actual financial performance of the entities described herein could differ

materially from that projected in the forward-looking statements due to the inherent uncertainty of

estimates, forecasts and projections, and financial performance may be better or worse than

anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking

statements.

Forward-looking statements represent estimates and assumptions only as of the date that they were

made. The information contained in this presentation is subject to change without notice and GGC

does not undertake any duty to update the forward-looking statements, and the estimates and

assumptions associated with them, except to the extent required by applicable laws and regulations.

Agenda

Highlights

Palm Oil Market Update

Financial Performance

GGC Going Forward

2017 Highlights

Palm Oil Market Updates Financial Performance GGC Going ForwardHighlights

Key AchievementsKey Achievements

August: Prime Minister’s Industry Award 2017-

Quality Management

January: MOU Bioeconomy

August: Enviico Eco-friendly toilet cleaner

2017 Highlights


Key HighlightsKey Highlights

+ Kernel Nut Extraction is on operation in Feb+ Refined Glycerin Plant 2 project was

approved for FID

+ Kernel Nut Extraction is on operation in Feb+ Refined Glycerin Plant 2 project was

approved for FID

+ Both ME & FA plants ran at full capacity+ Glycerin prices soar due to short supply + Both ME & FA plants ran at full capacity+ Glycerin prices soar due to short supply

FA Business Unit:+ Tight supply in Asia and S. America

induced demand for Natural FA

+ Natural FA prices were in competitive range to Synthetic FA

+ Improve FA sales volume compares to 2016

FA Business Unit:+ Tight supply in Asia and S. America

induced demand for Natural FA

+ Natural FA prices were in competitive range to Synthetic FA

+ Improve FA sales volume compares to 2016

- CPO prices fallen to the lowest price at 19B/kg

- THB continually appreciated over USD

- CPO prices fallen to the lowest price at 19B/kg

- THB continually appreciated over USD

+ Improving FY17 Core Performance:• Consoled Adj. EBITDA + 63%yoy

• FA Adj. EBITDA + 605%yoy

+ Improving FY17 Core Performance:• Consoled Adj. EBITDA + 63%yoy

• FA Adj. EBITDA + 605%yoy

ME Business Unit:+Mandate of B5/B7

+The highest production volume ever

+Domestic Crude Palm Oil inventory remains high

ME Business Unit:+Mandate of B5/B7

+The highest production volume ever

+Domestic Crude Palm Oil inventory remains high

33.60

26.34 24.81

35.09

28.76

4Q16 3Q17 4Q17 FY16 FY17

30.14

22.4320.48

31.95

24.88

4Q16 3Q17 4Q17 FY16 FY17

2017 Operation Highlights

Palm Oil Market Update Financial Performance GGC Going ForwardHighlights

CPO (DIT) : THB/KgCPO (DIT) : THB/Kg

ME (EPPO) : THB/LtME (EPPO) : THB/Lt

METHYL ESTER (B100) BUSINESS UNITMETHYL ESTER (B100) BUSINESS UNIT

Biodiesel MandateBiodiesel Mandate

ME EPPO P2F : THB/KgME EPPO P2F : THB/Kg

GGC’s ME Operational PerformanceGGC’s ME Operational Performance

Plant Utilization Rate

Adjusted EBITDA (MB)

4Q16 3Q17 4Q17 FY16 FY17

B5B7 B5,B7B7

B7,B5B3

Sales Volume (Tons)

4.70 4.80 4.934.41

4.96

4Q16 3Q17 4Q17 FY16 FY17

59%

112%100%

82%101%

4Q16 3Q17 4Q17 FY16 FY17

53,038 97,373 91,716

281,688 344,173

4Q16 3Q17 4Q17 FY16 FY17

143 109 133

932

589

4Q16 3Q17 4Q17 FY16 FY17

2,205

2,094

2,315

1,576

2,3212,248

1,826

2,186 1,685

2,098

4Q16 3Q17 4Q17 FY16 FY17

2017 Operation Highlights


FATTY ALCOHOLS BUSINESS UNITFATTY ALCOHOLS BUSINESS UNIT

CPKO (MPOB) : USD/TonCPKO (MPOB) : USD/Ton

FA (ICIS) : USD/TonFA (ICIS) : USD/Ton

Natural Fatty Alcohols regainedCompetitiveness vs. Synthetic onesNatural Fatty Alcohols regainedCompetitiveness vs. Synthetic ones

FA Market P2F : USD/TonFA Market P2F : USD/Ton

GGC’s FA Operational PerformanceGGC’s FA Operational Performance

Plant Utilization Rate

Sales Volume (Tons)

Adjusted EBITDA (MB)

Synthetic FA (C1215) Price : USD/Ton

Natural Mid Cut FA (C1214) Price : USD/Ton

49 4855

4351

4Q16 3Q17 4Q17 FY16 FY17

Crude Oil Price (WTI) : USD/BBL

Ethylene Price (USGC) : USD/Ton

720 704 738 676 719

4Q16 3Q17 4Q17 FY16 FY17

1,505 1,156 1,304 1,299 1,244

4Q16 3Q17 4Q17 FY16 FY17

1,983 1,8202,054

1,759 1,975

4Q16 3Q17 4Q17 FY16 FY17

177

433488

201

483

4Q16 3Q17 4Q17 FY16 FY17

105%123% 121%

98% 112%

4Q16 3Q17 4Q17 FY16 FY17

28,048 31,574 32,045

100,140 111,152

4Q16 3Q17 4Q17 FY16 FY17

81245 316

172

1,213

4Q16 3Q17 4Q17 FY16 FY17

Projects Timeline

Palm Oil Market Update Financial PerformanceHighlights GGC Going Forward

Refined GlycerinePlant 220 KTA

ProjectKernel Nut Extraction (TETSO)

Methyl EsterPlant 2

Refined GlycerinePlant 2

Oleo Specialties BiocomplexPhase 1

Capacity Feedstock Intake90 KTA

Methyl Ester200 KTA

Refined Glycerine20 KTA

14 KTA Sugarcane : 2.4 mm TPAEthanol : 186 mm LPA

CAPEX 380 MB(GGC holds 30%)

1,650 MB 326 MB TBA 7,650 MB(GGC will hold 50%)

Project Progress Update Completed Under Construction BoD approved for FID Feasibility Study FID : 3Q18

Scheduled COD February 2018 3Q18 Targeted : 2Q19 Targeted : 4Q19 4Q20

2018 2019

Kernel Nut Extraction90 KTA Feed Intake

Methyl Ester Plant 2200 KTA

BiocomplexPhase 1

Sugarcane : 2.4 mm TPA

Ethanol : 186 mm LPA

2020

Oleo Specialties14 KTA

On Schedule - Project Construction

Palm Oil Market Updates Financial PerformanceHighlights GGC Going Forward

Kernel Nut Extraction PlantKernel Nut Extraction Plant Methyl Ester Plant 2Methyl Ester Plant 2

Agenda

Highlights

Palm Oil Market Updates


GGC Going Forward

424 584

433 492 389

483

2,243

1,783 1,820

2,054 1,896

1,975

1,516

999 1,156

1,304 1,256 1,244

0

500

1,000

1,500

2,000

2,500

1Q17 2Q17 3Q17 4Q17 1Q18 FY17

USD/T Spread FA CPKO

1Q18 Highlights of Palm Oil & Oleochemicals Market


ME Chain ME Price & Spread

FA Price & Spread FA Chain

ME:• ME demand is healthy due to high biodiesel consumption in

traveling season and additional demand from ME stock policy

� Government requested for co-operation from Biodiesel

producers to build up ME stock to boost up local CPO price

CPO:• Palm oil production in 1Q18 will decrease in drought season

• Local CPO stock trends to decrease due to

� Tight CPO supply in winter

� High ME consumption in travelling season

� CPO export cargo • National CPO stock

� Dec’17 = 485,379T (Normally level around 200,000T)

FA:• Natural FA prices trend to decline follow CPKO price in 1Q18• FA demand shall pick up after New Year and Chinese New Year

long weekend period

• Low price Natural FA shall boost up demand over Synthetic FA

CPKO:• CPKO price is slow down due to weak demand in 1Q18,

expectedly from China

• Palm Oil stock in South East Asia remained > 2,000,000T due to

yield recovery from El-Nino

5.17 4.95 4.80 4.99 4.85 4.98

39.54

34.38

30.45 28.68 27.88

33.26

30.78

25.84

22.43 20.48

19.10

24.88

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

1Q17 2Q17 3Q17 4Q17 1Q18 FY17

THB/KG Spread ME CPO

Go to pg.20

Agenda

Highlights

Palm Oil Market Update


GGC Going Forward

59 143 101 109 85 133

802 932

382

589

213 81 109

245 303 316

658

172

755

1,213

273 224 211

354 387

449

1,460

1,104 1,138

1,802

2,111 3,277 2,836

11,111 11,659

2,009 1,903 2,383

6,089 7,813

4,120 5,180 5,219

17,200

19,472

4Q16 3Q17 4Q17 FY16 FY17

ME Business Unit FA Business Unit

Consolidated Financial Performance


Sales Revenue (MB)Sales Revenue (MB)EBITDA & Adjusted EBITDA* (MB) /Adjusted EBITDA Margin* (%)EBITDA & Adjusted EBITDA* (MB) /Adjusted EBITDA Margin* (%)

4Q16 3Q17 4Q17 FY16 FY17

ME EBITDA ME Adjusted EBITDA FA EBITDA FA Adjusted EBITDA

Consolidated Adjusted EBITDA Margin

Net Profit (MB) & Net Profit Margin (%)Net Profit (MB) & Net Profit Margin (%)

142 55 251

937

521

4Q16 3Q17 4Q17 FY16 FY17

5.4%6.8%

8.6%6.4%

9.3%

3.4%1.1%

4.8% 5.6%

2.7%

Financial Position


Statements of Financial Position

Cash and Cash Equivalent

Account Receivable,

Inventory, and other

Current Assets

PP&E

Non-current Assets

Other Liabilities

Interest Bearing Debt

Shareholders’ Equities

December 31, 2016

Baht 11,631 million

December 31, 2017

Baht 14,535 million

Key Financial Ratios

Repayment Plan Cash Flows

Million Baht

Million Baht

Million Baht

231 280

338

441

567

765

2017 2018 2019 2020 2021 2022

528

935

(2,292)

2,575 1,745

*

*cash from IPO was invested in ME2 of 417 MB and ST investment of 1,700 MB

9,058 7,923 11,073

833 2,689

2,400 0.1x 0.3x 0.2x

0.6x

1.8x 2.1x

-4.0 -

5,000

10,000

15,000

20,000

25,000

30,000

FY15 FY16 FY17

Equity Debt D/E D/EBITDA

528

2,094

(2,464)

2,264 2,422

Beginning

Cash

Operating

Cash Flows

CAPEX &

Investment

Financing Ending

Cash

Performance FY17 vs. FY16


Net Profit : Million Baht

Overall operating profit in FY17 was higher than FY16, attributed to the higher profitability of Fatty Alcohols but offsetting by lower profitability of Methyl Ester.

Stock Gain (Loss) & NRV in FY17 was recognized loss of 664 MB while recorded stock gain of 356 MB in FY16, mainly due to the downward trend of crude palm oil prices this year and the

volatile prices of crude palm kernel oil.

Gain/(Loss) from FX in FY17 was recorded loss of 80 MB against gain in FY16 of 33 MB due to the

impact from the appreciation of the THB, in which the THB was appreciated from 35.9 THB/USD at

the beginning of 2017 to 32.5 THB/USD at the end of the year or 10% appreciation.

Composing of Stock gain in 2016 of 356 MB and Stock loss in 2017 of 664 MB

Agenda

Highlights

Palm Oil Market Updates


GGC Going Forward

Outlook


• Expect B7 for the whole year

• CPO prices remain low due to high domestic inventory

• ME Plant 2 is expected to start up 3Q18

• Expect the market sentiment as same as in 2017

• Oleospecialty deep dive through Oleospecialties Project Investment

METHYL ESTER

• Target FID of 3Q18-awaiting for the legal constraint lift up as well as

the management on the sale of electricity• Roadshow in Japan for the investment in Biocomplex

FATTY ALCOHOLS

BIOCOMPLEX

T H A N K Y O U

Global Green Chemicals Public Company Limited

555/1 , Energy Complex, Building A, 4th Floor,

Vibhavadi Rangsit Road, Chatuchak, Chatuchak,

Bangkok 10900, ThailandTel: +66(0) 2 558 7345 Fax: +66(0) 2 558 7301www.ggcplc.com

For further information or enquiries, please contact our Investor Relations Team : [email protected]

Appendix

Palm Oil & Oleochemicals Market

CP

KO

CP

O

2016 2017

20162017 2018

2018

Go to pg.11

0

200

400

600

800

1,000

1,200

GL price and Spread

Spread RGL CGL

Palm Oil & Oleochemicals Market

Palm Oil Market Updates Financial Performance GGC Going Forward

Gly

ce

rin

e

2016 2017 2018

Go to pg.11

4Q16 3Q17 4Q17 yoy qoq FY16 FY17 yoy

Plant Util ization Rate (%) 105% 123% 121% 16% -2% 98% 112% 14%

Sales Volume (Tons) 28,048 31,574 32,045 14% 1% 100,140 111,152 11%

Sales Revenue (Millon Baht) 2,009 1,903 2,383 19% 25% 6,089 7,813 28%

EBITDA (Mill ion Baht) 213 109 303 42% 177% 658 755 15%

EBITDA Margin (%) 10.6% 5.7% 12.7% 2% 7% 10.8% 9.7% -1.1%

Stock Gain/(Loss) & NRV 132 -136 -14 -110% -90% 486 -458 -194%

Adjusted EBITDA (Mill ion Baht)(1)

81 245 316 290% 29% 172 1,213 605%

Adjusted EBITDA Margin (%) 4.0% 12.9% 13.3% 9% 0% 2.8% 15.5% 12.7%

Note : (1) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV

4Q16 3Q17 4Q17 yoy qoq FY16 FY17 yoy

Plant Util ization Rate (%) (1) 59% 112% 100% 69% -11% 82% 101% 19%

Sales Volume (Tons) (2) 53,038 97,373 91,716 73% -6% 281,688 344,173 22%

Sales Volume (Million Litres) 61 113 106 73% -6% 326 398 22%

Sales Revenue (Millon Baht) 2,111 3,277 2,836 34% -13% 11,111 11,659 5%

EBITDA (Mill ion Baht) 59 101 85 44% -16% 802 382 -52%

EBITDA Margin (%) 2.8% 3.1% 3.0% 0.2% -0.1% 7.2% 3.3% -3.9%

Stock Gain/(Loss) & NRV -83 -8 -48 -42% 530% -130 -206 58%

Adjusted EBITDA (Mill ion Baht)(3) 143 109 133 -7% 22% 932 589 -37%

Adjusted EBITDA Margin (%) 6.8% 3.3% 4.7% -2.1% 1.4% 8.4% 5.0% -3.3%

Note : (1) Nameplate Capacity 300,000 Tons per year (2) Coversion ratio: 0.865 Tons = c.1,000 Litres

(3) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV

Key Performance By Business Unit

ME

TH

YL

ES

TE

R (

B100)

BU

SIN

ES

S U

NIT

ME

TH

YL

ES

TE

R (

B100)

BU

SIN

ES

S U

NIT

FA

TT

Y A

LC

OH

OL

S B

US

INE

SS

U

NIT

FA

TT

Y A

LC

OH

OL

S B

US

INE

SS

U

NIT

Consolidated Income Statement

Note : (1) Including Gain/(Loss) from FX and Derivatives

(2) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV

MB % MB % MB % MB % MB % MB % MB % MB %

Sales Revenue 4,120 100 5,180 100 5,219 100 1,099 27 39 1 17,200 100 19,472 100 2,272 13

Feedstock (3,341) - 81 (4,167) (80) (4,078) (78) (737) 22 88 (2) (13,936) (81) (15,131) 78 (1,195) 9

NRV (0) - 0 18 0 (1) (0) (1) - (18) (103) (0) (0) (2) 0 (2) na.

Product to Feed Margin 779 19 1,031 20 1,140 22 361 46 109 11 3,264 19 4,339 22 1,075 33

Other Variable Costs (326) - 8 (468) (9) (448) (9) (122) 37 20 (4) (1,403) (8) (1,693) 9 (290) 21

Fixed Costs (130) - 3 (130) (3) (149) (3) (19) 15 (20) 15 (522) (3) (555) 3 (33) 6

Stock Gain/(Loss) 49 1 (161) (3) (61) (1) (110) (226) 99 (62) 356 2 (662) 3 (1,018) (286)

SG&A (112) - 3 (72) (1) (114) (2) (3) 2 (42) 58 (283) (2) (342) 2 (59) 21

Other Income 12 0 11 0 20 0 8 63 10 92 48 0 52 0 3 7

EBITDA 272 7 211 4 387 7 115 42 176 84 1,460 8 1,138 6 (321) (22)

(139) - 3 (143) (3) (143) (3) (4) 3 (1) 0 (545) (3) (564) 3 (20) 4

EBIT 134 3 68 1 244 5 110 83 176 258 915 5 574 3 (341) (37)

Finance Costs (22) - 1 (12) (0) (8) (0) 14 (63) 4 (31) (60) (0) (57) 0 2 (4)

FX Gain/(Loss) (1) 22 1 (22) (0) (8) (0) (30) (135) 14 (65) 33 0 (80) (0) (113) (345)

Shares of profit/(loss)

from investment 24 1 15 0 27 1 3 13 12 82 104 1 87 0 (17) (17)

Income Tax Expenses (15) - 0 6 0 (4) (0) 11 (73) (10) (173) (30) (0) (2) 0 28 (94)

Net Profit 143 3 55 1 251 5 108 76 196 359 962 6 521 3 (441) (46)

Owners of the company 142 3 55 1 251 5 109 77 196 359 938 5 521 3 (416) (44)

- - - - - - - - - - 24 - - - - -

Adjusted EBITDA (2) 224 5 354 7 449 9 226 101 95 27 1,104 6 1,802 9 699 63

Former shareholder before

business restrucuring

4Q16 yoyyoy qoq FY16 FY174Q173Q17Unit (Million Baht)

Profit/(Loss) attributable to

Depreciation and Amortization

CPKO

Profitability Enhancement thru’ vertical integration

JV with experienced partner in Kernel Nut Extraction for Fatty Alcohols feedstock security and cost saving

StartedConstruction

ProjectTimeline

CAPEX380 MB

1Q18

COD

3Q16

Kernel Nut Extraction (TETSO)90 KTA (Feedstock Intake Cap)

Kernel Nut Fatty Alcohols

• GGC holds 30% in JV (TETSO) with Eastern Palm Oil, experienced partner• Location : Nongyai, Chonburi (Close to palm oil plantation)• Security of CPKO supply• Competitiveness enhancement

• Competitive CPKO cost • Logistic cost saving from better proximity to FA plant

Project Progress

Overcoming Capacity Limitation via Expansion of ME Plant 2

Expanding GGC’s ME Plant to Future Capture Demand while Maximizing Profitability

Plant Optimization

Serve as

base plant

as can operate at

low cost

Support

demand at

different mandate

level by

alternating

feed type

Maximize Profitability

ME Plant 1ME Plant 2

� Feed Flexibility when deemed economical

� Optimal feed use

� Minimize initial investments and operating cost

Refined Palm Oil

(RPO)

Crude Palm Oil

(CPO)

Methyl Ester

300 KTA

Methyl Ester

200 KTA

Refine

Glycerine

31 KTA

Crude

Glycerine

123.9% Utilization(1)

ME Plant 1

ME Plant 2

Crude Palm Oil

(CPO)

Others

i.e. palm stearin or

mixed feed

Map Ta Phut, Rayong

Nongyai, Chonburi

Flexibility

Efficiency

Jul/16

FIDProjectTimeline

Project Progress

CAPEX1,650 MB

Apr/17 4Q/18

CODFoundation StonePlacement Ceremony

Applications

Enhance Value of By-Product(RGL#2)

CGL captive use to produce RGL with higher value

ProjectTimeline

CAPEX326 MB

2Q/19

Targeted : CODUnder Feasibility Study

ME Plant 2 Refined Gylcerine Plant 220 KTA

Refined GlycerineCrude Glycerine

• Integrated project with ME Plant 2• Capture market growth of high volume industries

Biocomplex - Leveraging on Thailand’s Bioeconomy

Integrated Complex to Produce Biofuel, Biochemicals, Bioplastics from Sugarcane and Electricity/Steam from Biomass

Phase 2

Biochemical / Bioplastic Plant

Cane Juice

or other RMs

Crushing Mill

Ethanol Plant

186 mm litre

per annum

2.4 mm tons / annum

Cane

Juice

Ethanol

other RMs;

HTM,

Molasses

Sugar cane

Plantation

Electricity to grid

Utility & Waste

Co-Generation

Sugar cane

Phase 1

Electricity

Bagasses

Waste

Electricity

End Applications

Oil Fracking

E&E Construction

Durable

Packaging Film / Fiber Auto High Value Added

Pharma/Cosmetic Ingredient

BioplasticsBiochemicals

3Q/18

FIDProjectTimeline

Biocomplex Phase 1CAPEX

7,615 MB4Q/20

CODStartConstruction

3Q/18

Phase 1

Location : Nakornsawan

GGC will hold 50% in JV with KTIS Under EIA approval process

Key Investment Decision Criteria:

• Amendment of related regulation

• Approval to procure electricity by PEA

Higher - Value Downstream Products

Specialty Oleochemicals Development towards higher profitability

ProjectTimeline

CAPEXTBA

4Q/19

Targeted COD

Fatty Alcohols

Multi Purpose Reactor Specialty Oleochemicals

“Recipe”

Special FeedstocksRaw Materials

For Property Enhancement

Ingredients in HPC products

• Downstream integration with high margin products, • Help reduce country import• Target markets: Thailand, and CLMV

Under Feasibility Study

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