Q1 2019 Financial Results Chememan Public Company Limited: As A Human Chemical

Q1 2019
Financial
Results
Chememan
Public Company
Limited
Lime
As a Human Chemical
Table of Contents
1. Key Highlights of Q1 2019
2. Financial Performance
3. Progress Update
Chememan Analyst Presentation Q1-2019 2

Key Highlights of Q1 2019
Chememan Analyst Presentation Q1-2019

Key Highlights of Q1 2019
 Capital Injection to CMAN India at the amount of 65 million rupees in Q1 2019

to support investment in Siriman
 KK4 Quicklime Kiln with production capacity of 73,000 tons per year
commenced operation in January 2019
 Joint ventured with 2 German companies and established CalMix Company

Limited to develop, manufacture and sell construction materials, with CMAN
holding 51% stake
 Entered into 10 years natural gas supply contract with PTT Public Company
Limited

Financial Performance of Q1 2019

Financial Highlights of Q1 2019
Unit : Million Baht Q1 2019 Q4 2018 Q1 2018 %QoQ %YoY
Sales Revenue (1) 612 592 597 +3.4% +2.6%
Cost of Sales (not include depreciation & amortization) (353) (334) (356) +5.6% -0.8%
Transportation cost (116) (111) (92) +4.7% +25.4%
Gross Profit (net transportation cost and depreciation & amortization) 143 147 148 -2.6% -3.5%
Gross Profit Margin (net transportation cost and depreciation & amortization) (2) (%) 28.9% 30.6% 29.4%
Other income 3 9 2 -71.2% +28.7%
Selling expenses (9) (9) (8) -4.0% +10.7%
Administrative expenses (42) (48) (36) -11.8% +16.9%
Gain (Loss) on exchange rate (6) 1 (12) N/A N/A
Share of loss from investment in joint ventures (1) (1) (1) +81.9% +79.2%
Non-cash expenses 3 8 5 -58.1% -32.6%
EBITDA 92 109 99 -15.6% -7.8%
Adjust : (a) Gain (Loss) on exchange rate 6 (1) 12 N/A N/A
Adjust : (b) Cost incurred by temporary shutdown of kiln for maintenance 2 4 (0) -58.3% N/A
Normalized EBITDA (3) 99 111 111 -10.8% -10.9%
Normalized EBITDA Margin (%) 16.2% 18.7% 18.6%
Depreciation & Amortization (49) (50) (42) -2.5% +15.3%
Depreciation & Amortization – Cost of sales (45) (46) (40) -2.3% +13.1%
Depreciation & Amortization – Administrative expenses (4) (4) (2) -5.0% +51.8%
Finance costs (10) (8) (18) +19.4% -45.2%
Interest received 1 1 1 -22.1% -1.9%
Adjust : (c) Loan prepayment fee 0 0 0 N/A N/A
Gain (Loss) on tax 2 2 3 -3.3% -18.9%
Normalized Net Profit (3) 43 55 54 -22.6% -20.4%
Normalized Net Profit margin (%) 7.0% 9.4% 9.0%
(a) Gain (Loss) on exchange rate (6) 1 (12) N/A N/A
(b) Cost incurred by temporary shutdown of kiln for maintenance (2) (4) 0 -58.3% N/A
(c) Loan prepayment fee 0 0 0 N/A N/A
(d) Non-cash expenses (3) (8) (5) -58.1% -32.6%
Net profit 32 45 37 -28.5% -13.4%
Net Profit Margin (4) ((%) 6.5% 9.4% 7.4%
Earnings per share (baht) 0.03 0.05 0.05
(1)Sales revenue = Revenue from sales of products and transportation cost
(2)Gross Profit Margin (net transportation and depreciation & amortization) = Gross Profit (net transportation and depreciation & amortization) / (Sales revenue – Transportation cost)
(3) After adjustment of unusual transactions
Chememan Analyst
(4) Net Profit Margin = Net Presentation Q1-2019
Profit / (Sales revenue – Transportation cost) 6
Financial Performance : Sales by products
Sales Quantities
Unit : MT
Limestone
Hydrated Lime
Quicklime 324,733 329,368
305,350
268,855 256,461
146,939 167,187
90,909 147,813
105,421
25,684 24,243 13,850
22,588 26,147
152,262 153,551 134,949 148,330

124,893
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019
Sales Revenues
Unit : THB million
Limestone
Hydrated Lime
Quicklime 647
597 588 592 612
59
39 62 51 69
97 60
98 89 107
459 491 438 483

434
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

Financial Performance : Domestic Vs International
Sales Quantities
Unit : MT
International 324,733 329,368

305,350
Domestic 268,855 256,461 33%
40% 33%
33%
36%
67%
60% 67% 64%
67%
64%
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019
Sales Revenues
Unit : THB million
Internartional 647
597 588 592 612
Domestic
55%
52% 64% 62% 63%
48% 36% 38% 37% 45%
36% Q1/2018 48% Q2/2018 Q3/2018 37%Q4/2018 Q1/2019

Sales by Industries - Q1 2019
Glass & Bottle, 1.2% Others, 3.9%

Iron and Steel, 0.9%
Agriculture, 3.7%
Environment, 4.1%
Chemicals, 1.9%
Bio-plastic, 3.2%
Mining, 42.3%
Building Construction
and Roadways, 10.7%
Pulp - Paper - and PCC,

7.3%
Sugar, 20.8%

Financial Performance : EBITDA & Net Profit
EBITDA Normalized EBITDA

Unit : THB million Unit : THB million
200 20.0%
200 20.0%
180
18.6% 18.1% 18.7% 18.0%
18.3%
17.5% 16.2%
180 18.0%
16.6%
160 16.0%
160
16.3% 16.0%
14.8%
140
15.0% 14.0%
140 14.0%
120 12.0%
120 12.0%
100 10.0%
100 10.0%
80 8.0%
80 8.0%
111 107 111

60 6.0%
113 109 99
60 6.0%
40
99 96 92 4.0%
40
95 4.0%
20 2.0%
20 2.0%
0 0.0% 0 0.0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
EBITDA EBITDA Margin (%) Normalized EBITDA Normalized EBITDA Margin (%)
Net Profit Normalized Net Profit

Unit : THB million Unit : THB million
200 12.0% 200 10.0%
180 11.1% 180
9.0% 9.4% 9.4% 9.0%
10.0%
9.4%
160 160 8.0%
140
8.0%
140
7.0% 7.0%
7.4%
5.8%
120 120 6.0%
100
6.5% 6.0% 100 5.0%
80 80 4.0%
60
4.1% 4.0%
60 3.0%
40 40 2.0%
59 54 55 55
2.0%
20
37 20 45 32
20
37 43 1.0%
0 0.0% 0 0.0%
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Net Profit Net Profit Margin (%) Normalized Net Profit Normalized Net Profit Margin (%)

Analysis by Product - Quicklime
Quicklime Unit Q1/2019 Q4/2018 Q1/2018

Sales Quantities MT 148,330 124,893 152,262
Domestic MT 66,500 48,992 79,680
International MT 81,831 75,901 72,583
Price per unit BPT 3,259 3,473 3,016
COGS per unit BPT (2,207) (2,271) (2,014)
Transportation expense per unit BPT (562) (611) (465)
Sales Revenue MB 483 434 459
Domestic MB 191 140 213
International MB 293 293 246
Cost of goods sold MB (327) (284) (307)
Transportation expense MB (83) (76) (71)
Gross Profit (Net Transportaion) MB 73 74 82
% Gross Profit Margin (Net Transportation) % 18.2% 20.6% 21.1%

Analysis by Product - Quicklime
Gross Profit Gross Profit Margin
Q1 Sales Quantities Sales Revenue Price/unit Net transportation Net transportation
2019 148,330 MT 483 MB 3,259 Baht 73 MB 18.2%

Sales Quantities Sales Revenue
Unit : MT Unit : THB million
850 22.0%
21.1% 20.6%
750
18.2% 18.2%
152,262 153,551 16.8%
143,330
17.0%
650
134,949
124,893 550
491 483
72,583 459 438
12.0%
94,895 81,831 450

434
86,474 75,901
246 293
350
332 7.0%
303 293
250
79,680
66,500
150
58,656 48,474 48,992 213

2.0%
159 191
50
134 140
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 (50)
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 -3.0%
Domestic International % Gross Profit Margin (Net Transportation)

Analysis by Product – Hydrated Lime
Hydrated Lime Unit Q1/2019 Q4/2018 Q1/2018

Domestic MT 8,050 8,541 9,822
International MT 5,800 17,606 15,862
Price per unit BPT 4,317 4,111 3,810
COGS per unit BPT (2,546) (2,474) (2,493)
International MB 35 80 67

Analysis by Product – Hydrated Lime

2019 13,850 MT 60 MB 4,317 Baht 15 MB 30.2%

180
30.2%
29.6%
30.0%
25,684 26,147 160
29.4%
24,243
22,588
28.0%
27.5%
140
120
26.2% 26.0%
98 107
15,862 17,606 97
15,639
100
13,665 13,850 89
24.0%
80
80 60 22.0%
5,800 67 70
60
60
20.0%
40
35
9,822 8,604 8,924 8,541 8,050 18.0%
31
20
27 28 27 25
0 16.0%
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

Analysis by Product – Limestone and Construction Stone
Limestone and Construction Stone Unit Q1/2019 Q4/2018 Q1/2018

Domestic MT 146,467 105,321 90,909
International MT 20,720 100 -
Price per unit BPT 411 481 434
COGS per unit BPT (203) (270) (277)
International MB 12 1 -

Analysis by Product – Limestone and Construction Stone

2019 167,187 MT 69 MB 411 Baht 12 MB 25.7%

120
25.7% 25.0%
167,187
100
20.3% 20.0%
147,813 20,720
146,939 15.0%
300
12.2%
80
20,181 11.8% 69
62
10.0%
105,421 8.8%
59 2 12
100 51
60
90,909 10
5.0%
1
147,513 39
146,467
0.0%
40
126,758
105,321 60 57 -5.0%
90,909 50 50
20
39
-10.0%
0 -15.0%
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

Production Capacity
Quicklime Production Hydrated Lime Production
169,826 MT
154,694 MT
146,375 MT
135,156 MT 138,075 MT
35% 19%
27% 23% 22%
21,118 MT 21,544 MT
81% 20,663 MT
65% 78% 19,973 MT
73% 77%
18,048 MT
Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019
KK PB RY
Remarks : - Only 1 quicklime kiln at PB was operated in Q3 2018, Q4 2018 & Q1 2019
- KK1 quicklime kiln was temporary shut down for maintenance as per scheduled maintenance plan in Q3 2018
- KK3 quicklime kiln was temporary shut down for system connection with KK4 in Q4 2018
- KK4 quicklime kiln commenced operation in Q1 2019

Balance Sheet
Asset (THB million) Liabilities & Equity (THB million)
3,824 3,914 3,824 3,914

343
439
3,217 3,217
2,782 2,782 438
1,162
1,318
414
2,950 3,037
2,478 1,556
2,132 1,298
2,223 2,253
1,070 1,223
739 875 877
650
2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019
Current Asset Non-Current Asset Equities Interest Bearing Debt Others

Sources & Uses of Fund : Q1 2019
Unit : THB million
Source of Fund Use of Fund
Cashflow from Operation 92 Acquisition of Property, Plant & Equipment 123

Long-term loan proceeds 161 Increase in working capital 51
Short-term loan received 17 Interest paid 11
Interest income & others 0 Income tax paid 0
Exchange Translation 3 Investment in Joint Ventures 49
Long-term loan repayment 28
Debt repayment 7
Increase in cash 4
SOURCE OF FUND 272 USE OF FUND 272
Beginning Cash 126

Ending Cash 130

Ratios
Current ratio Interest-bearing Debt to Equity ratio

Unit : times Unit : times
1.27x
1.54x 1.21x
1.41x
1.02x
0.59x
0.68x 0.52x
FY2016 FY2017 FY2018 Q1 2019 FY2016 FY2017 FY2018 Q1 2019

Exchange Rate – THB against USD & AUD
34.00
33.50
33.00
Q2-2018
Q3-2018 Q4-2018
USD 32.50
Q1-2018
31.71
32.12
33.15 32.99
Q1-2019
32.00
31.79
31.50
31.00
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19
26.00
Q1-2018
25.50 25.19
Q2-2018
25.00 24.54
24.50
Q3-2018
AUD 24.00 24.52
Q1-2019
Q4-2018 22.91
23.50
23.93
23.00
22.50
22.00
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19
Progress Update

Progress Update – Thailand
Installed Commercial
Project Ownership Estimated
Location Capacity Operation
CAPEX (MT/year) Date
To increase production capacity : Thailand

Tubkwang 108,000
Limestones grinding plant 100% 101.85 MB Completed
Quarry
To reduce cost of production : Thailand
4 Big Silos
Kangkoi, 116.0 MB
Super silo 100% capacity Completed
Saraburi
12,000 MT
Project Ownership Estimated Commercial Operation

Location Date
Investment
Business Expansion: Thailand

CALMIX COMPANY LIMITED
Joint venture established
Saraburi,
To develop, manufacture 51% 30.6 MB End of Sep 2019
Thailand
and distribute construction
materials

SUPER SILOS – Completed
• Location Kangkoi Saraburi

• Storage Capacity 12,000 MT
• Completed, Start operating in
April 2019

LIMESTONE GRINDING PLANT– Completed
• Locate at Tubkwang Quarry

• Installed Capacity 108,000 MT / year
• Completed, Start operating in May 2019

Progress Update – Business in India
Installed Commercial
Project Owner Estimated
Location ship Capacity Operation
Investment (MT/year) Date
To expand the business : India

EASTERNBULK LIME 47,450 of
PRODUCTS PRIVATE LIMITED Quicklime
Tuticorin, 65 million INR
Joint venture established 50% 73,000 of Y 2019
Tamil Nadu
Quicklime manufacturing Ground
and distributing company Limestone
SIRIMAN CHEMICALS INDIA 109,500 of
PRIVATE LIMITED Quicklime
Visakhapatnam, 130 million
Joint venture established 50% Y 2020
Andhra Pradesh INR 87,600 of
lime manufacturing and
Hydrated Lime
distributing company

EASTERNBULK LIME PRODUCTS PRIVATE LIMITED – IN PROGRESS
Civil Update
 PEB structure of QL handling has completed.
 Roads and drains work will be completed by July
2019.
 PEB structure of LS handling under installation will
be completed by September 2019.
Mechanical Update
 Installation of refractory has completed.
 Equipment for Coal Grinding mill system under
installation will be completed by May 2019.
 Equipment for QL handling under installation
will be completed by May 2019.
Commissioning Update
 Kiln commissioning will be start by May 2019.
 Coal Grinding mill commissioning will be start
by May 2019.
 QL handling commissioning will be start by May
2019.

SIRIMAN CHEMICALS INDIA PRIVATE LIMITED – IN PROGRESS
Civil and Mechanical Progress

 Kiln shell erection has start, expected to finish in
August 2019.
 Coal grinding mill building; concrete work 100%, steel
work and hopper/silo are under erection.
 QL handling civil work are under construction.

Thank You
Disclaimer
Some statements made in this material are forward-looking statements with the relevant
assumptions, which are subject to various risks and uncertainties. These include statements
with respect to our corporate plans, strategies and beliefs and other statements that are not
historical facts. These statements can be identified by the use of forward-looking
terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue”
“plan” or other similar words.
The statements are based on our management’s assumptions and beliefs in light of the
information currently available to us. These assumptions involve risks and uncertainties
which may cause the actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or implied by such
forward-looking statements.
Please note that the company and executives/staff do not control and cannot guarantee the
relevance, timeliness, or accuracy of these statements.

Q1 2019 Financial Results Chememan Public Company Limited: As A Human Chemical

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Q1 2019 Financial Results Chememan Public Company Limited: As A Human Chemical

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Q1 2019

1. Key Highlights of Q1 2019

Chememan Analyst Presentation Q1-2019 2

Chememan Analyst Presentation Q1-2019

 Capital Injection to CMAN India at the amount of 65 million rupees in Q1 2019

 Joint ventured with 2 German companies and established CalMix Company

Chememan Analyst Presentation Q1-2019 4

Chememan Analyst Presentation Q1-2019

152,262 153,551 134,949 148,330

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

459 491 438 483

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

Chememan Analyst Presentation Q1-2019 7

International 324,733 329,368

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019

48% 36% 38% 37% 45%

36% Q1/2018 48% Q2/2018 Q3/2018 37%Q4/2018 Q1/2019

Chememan Analyst Presentation Q1-2019 8

Glass & Bottle, 1.2% Others, 3.9%

Pulp - Paper - and PCC,

Chememan Analyst Presentation Q1-2019

EBITDA Normalized EBITDA

111 107 111

Net Profit Normalized Net Profit

200 12.0% 200 10.0%

180 11.1% 180

9.0% 9.4% 9.4% 9.0%

Chememan Analyst Presentation Q1-2019 10

Quicklime Unit Q1/2019 Q4/2018 Q1/2018

Chememan Analyst Presentation Q1-2019 11

2019 148,330 MT 483 MB 3,259 Baht 73 MB 18.2%

94,895 81,831 450

58,656 48,474 48,992 213

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 (50)

Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 -3.0%

Domestic International % Gross Profit Margin (Net Transportation)

Chememan Analyst Presentation Q1-2019 12

Hydrated Lime Unit Q1/2019 Q4/2018 Q1/2018

Chememan Analyst Presentation Q1-2019 13

Gross Profit Gross Profit Margin

2019 13,850 MT 60 MB 4,317 Baht 15 MB 30.2%

25,684 26,147 160

Domestic International % Gross Profit Margin (Net Transportation)

Chememan Analyst Presentation Q1-2019 14

Limestone and Construction Stone Unit Q1/2019 Q4/2018 Q1/2018

Chememan Analyst Presentation Q1-2019 15

Gross Profit Gross Profit Margin

2019 167,187 MT 69 MB 411 Baht 12 MB 25.7%

Domestic International % Gross Profit Margin (Net Transportation)

Chememan Analyst Presentation Q1-2019 16

Quicklime Production Hydrated Lime Production

Chememan Analyst Presentation Q1-2019 17

Asset (THB million) Liabilities & Equity (THB million)

3,824 3,914 3,824 3,914

2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019

Current Asset Non-Current Asset Equities Interest Bearing Debt Others

Chememan Analyst Presentation Q1-2019 18

Unit : THB million

Source of Fund Use of Fund

Cashflow from Operation 92 Acquisition of Property, Plant & Equipment 123

SOURCE OF FUND 272 USE OF FUND 272

Beginning Cash 126