Investor relations Eng (v2.0) [Read-Only] · Company Presentation 19 June 2020 Corporate Finance &...

Quality that drives your Business

Company Presentation19 June 2020

Corporate Finance & Investor RelationsSET Opportunity Day Q1 2020


Agenda

▌Company Overview

▌Key Investment Highlights

▌Financials

▌Outlook

6/19/2020Union Petrochemical Public Company Limited 2


• A ranking (21st)* Top Chemical Distributor in the Asia Pacific Region and ranked (125th)* globally according to NACD

• Connecting the local manufacturing sector with regional and global supplies

• ~700 active customers

• Comprehensive portfolio of chemical products with additional products being added regularly

• Around 120 employees with ~1/5 being dedicated Sales and Marketing employees

• Dedicated and Diverse logistic infrastructure enables us to meet customer requirements

Company OverviewUPC at a glance


*Source: ICIS - National Association of Chemical Distributors (NACD) Ranking June 2019



Company OverviewBusiness Structure


Purchase Transport StorageFilling

Packaging Labeling

Mixing Blending

FormulatingCustomer Support

Inventory Management

Bundling Transport


Company Overview – Business ModelUPC fulfill a value-adding function in the supply chain

Local Source

Imports

StorageRepackaging

BlendingWarehousing

LogisticsBoth bulk and individual

(Bulk, IBC, Drum, Pail, and Gallon)

Market IntelligenceAll-Style Delivery

Sales & Technical Services

UPC’s Service & Solution

Clients

ProducerUser


Purchase, transport and storage of large quantities of diverse chemicals■ Connected to a large network of local and global chemical manufacturers■ Comprehensive solvent product portfolio■ Continuously expanding selection of products




Packaging Labeling

Mixing Blending



Bundling Transport

ProducerUser


• Repackaging from large to smaller quantities• Filling, labelling, barcoding, palletizing, and tracking• Engaging customers with over 15 dedicated local sales

employees• Mixing and blending according to customer’s

requirements• Formulation and technical support and collaboration with

suppliers and special consultants.




Packaging Labeling

Mixing Blending



Bundling Transport

ProducerUser


• Leverage our logistic capabilities to meet customer delivery requirements

• Provide just-in-time delivery • Mixed / Bundled delivery of products• Utilizing transport for drum return service

• Provide vendor-managed inventory service• Offering one stop solution for customer solvent needs




Packaging Labeling

Mixing Blending



Bundling Transport

ProducerUser



Company OverviewKey Characteristics

Business model

Product portfolio

Customer base

Customer order size

Delivery method

Fixed assets / flexibility

Cost base

Raw material prices

Chemical Producer

B2B Services / Solutions Manufacturing

Diverse / Wide Specific / Narrow

Broad in diverse end-markets Narrow

Small Large

Less-than-bulk or truckload Truckload or larger

Low intensity / Multi-purpose High intensity / Narrow purpose

Variable Fixed

Market Contract


Agenda

▌Company Overview


▌Financials

▌Outlook



Understanding of Local Market Conditions (> 39 years of experience)

Diverse regional supply network

Diverse end-markets

Proven Track Record – Branded Distributor of Esso (Thailand) PCL since 2005

Sound Financials


Key Investment HighlightsUPC – A strong foundation



Key Investment HighlightsDiverse Regional Supply

•Thailand Singapore China

Korea Japan Taiwan

India Europe USA



Key Investment HighlightsDiverse End Market

Agricultural Chemicals

Adhesives Automotive Polymer Synthesis

Rubber Printing Paints & Coatings

Packaging Construction Cosmetics Electronics Industrial Cleaning

Medical, Consumer, Household

Textile and Furniture

- Denotes Major End Markets



Key Investment HighlightsUPC Customer Base – Revenue Distribution

60-70%

20-30%

10-20%The revenue distribution changes on a monthly/yearly basis due to:1. seasonality,2. economic situation,3. market conditions

*The presented figure an estimate based on year 2018 data.

10%Other…

*Customer base is spread out in Industrial Value Chain: Upstream, Downstream, End Industry



Key Investment HighlightsConsistent revenue and profit

Gross Profit(million THB)

Sales Revenue(million THB)

(▼11.75%)(▼5.65%)(▼19.20%)

(▲5.44%)(▲6.33%)

(▲3.44%)(▲0.24%)

(▲10.92%)

(▲27.63%)

(▲24.45%)

16.14%

12.27%

16.43%17.58%

12.96%10.38%10.70%11.73%13.44%

11.15%



Key Investment HighlightsEBITDA and Net Profit

Net Profit(million THB)

EBITDA(million THB)

6.59%

4.27%

8.25%9.23%

5.37%3.80%

4.13%

4.27%7.41%

5.42%

4.22%

2.58%

5.69%

6.48%

3.65%

2.52%2.39%

3.70%

4.81%

3.22%



Key Investment HighlightsDividend

Dividend Policy: Not less than 40% of net profit after corporate income tax and after deducting allowances. All types are subject to the laws and regulations of the company

2.5%

29.0%

2.4%

1.6%2.8%2.3%

5.8%

4.2%

2.1%3.5%


Agenda

▌Company Overview


▌Financials

▌Outlook




Financials – Q1/2020Financial Position - Assets

AssetsMAR 20 DEC 19

CASH & ST INVT. 604.78 661.40 AR 797.16 713.70 INVEN 362.96 404.49 RIGHT OF USE 106.60 -OCA & NOCA 455.14 448.89

2,326.64 2,228.48 455.14 448.89

106.60 -

362.96 404.49

797.16 713.70

604.78 661.40

0

500

1,000

1,500

2,000

2,500

MAR 20 DEC 19

Milli

on T

HB

OCA & NOCA RIGHT OF USE INVEN AR CASH & ST INVT.



630.88 591.63

427.3 453.59

309.07 309.0762.59 50.3

66.352.02

29.88 1.92348.98

289.11

451.59530.84

0

500

1000

1500

2000

2500

MAR 20 DEC 19

Milli

on T

HB

RE OTHER CAPITALOCL & NOCL LONGTERM LEASE CURRENT LEASEAP ST LOAN

Financials – Q1/2020Financial Position – Liabilities & Shareholders Equity

Liabilities & Shareholders ' EquityMAR 20 DEC 19

ST LOAN 451.59 530.84AP 348.98 289.11CURRENT LEASE 29.88 1.92LONGTERM LEASE 66.35 2.02OCL & NOCL 62.59 50.3

CAPITAL 309.07 309.07OTHER 427.3 453.59RE 630.88 591.63

2,326.64 2,228.48


733.58

109.71

29.43

794.70

133.86

49.83

0

100

200

300

400

500

600

700

800

900

Net Sale GP EAT

Milli

on T

HB

MAR 2019 MAR 2020


Financials – Q1/2020Comprehensive Income

Net Sale & GP & EAT - Quarter 1MAR 2020 MAR 2019

Net Sale 794.70 733.58 GP 133.86 109.71 EAT 49.83 29.43

+61.12+8.33%

+24.15+22.01%

+20.40+69.32%



Financials – Q1/2020Performance by Chemical Product Group

499

21322

734

529

22442

795

17%

23%

3%

15%

16%

19%

2%

17%

0%

10%

20%

30%

0

100

200

300

400

500

600

700

800

900

General chemicals Special chemicals Other products Total

Milli

on T

HB

Sales Revenue 2019

Sales Revenue 2020

% Gross Profit Q1 2019

% Gross Profit Q1 2020



General chemicals

, 499, 68%

Special chemicals

, 213, 29%

Other products, 22, 3%

General chemicals, 529, 67%

Special chemicals, 224, 28%

Other products, 42, 5%

Sales Revenue Q1 2019 Sales Revenue Q1 2020

Financials – Q1/2020Performance by Chemical Product Group



Financials – Q1/2020Key Financial Ratio

Key Financial Ratio

MAR - 20 MAR - 19 Year 2019

Current Ratio 2.12 2.00 2.13Inventory Day 53 63 52Supplier Payment Period ( Days) 47 49 47Account Receivable Collection Period ( Days) 84 105 104

Profitability (3 months) (3 months) (12 months)

Sale Growth (%) 8.33% -11.57% -11.76%GP Margin (%) 1.89% 0.91% 3.86%EAT (%) 69.32% -26.50% 44.22%


Agenda

▌Company Overview


▌Financials

▌Outlook



• We continue to secure product supply for our customers


OutlookOutlook for 2020

• Health and Safety of our employees remains top priority• Adaptation to “New Normal” is necessary for both our services and solutions

• Outlook for 2020 is highly influenced by the impact of the Covid-19 pandemic on the Thai Economy and its recovery.

• Highly challenging economic conditions expected in Q2 and H2 of 2020, particularly in Major End Markets – Automotive and Paints and Coatings



Outlook – Q2/2020Outlook of Trends by Customer Segment

Agricultural Chemicals

Adhesives Automotive Polymer Synthesis

Rubber Printing Paints & Coatings

Packaging Construction Cosmetics Electronics Industrial Cleaning

Medical, Consumer, Household

Textile and Furniture

=▲▼ Trends


• Increase focus on Segments with Upwards Trend:

• Packaging• Industrial Cleaning• Medical/Consumer/Household• Cosmetics• Agricultural Chemicals

• Operational Excellence• Optimizing our supply chain to prepare for

“New Normal” market


OutlookBusiness Development Outlook

Business Focus

Polymer Solvents

Industrial CleaningMedical

ConsumerHousehold

OperationalExcellence


CONTACT

• Investor Relations• Busara Harnongart• Phone: 02-881-8288• Fax: 02-881-9135• Email: [email protected]• Web: www.unionpetrochemical.com

• Disclaimer• This presentation may contain estimates and forward-looking statements based on current assumptions and forecasts

made by Union Petrochemical PCL and other information currently available to the company. Various known and unknown risk, uncertainties and other factors could lead to material differences between the actual future results, financial situation,development or performance of the company and the estimates given here. Union Petrochemical PCL does not intend and does not assume any liability whatsoever to update these estimates and forward-looking statements to conform them to future events or developments. Additionally some information contained in this document is based on estimates or assumptions of Union Petrochemical and there can be no assurance that the estimates or assumptions are or will prove to be accurate.


Investor relations Eng (v2.0) [Read-Only] · Company Presentation 19 June 2020 Corporate Finance &...

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Transcript of Investor relations Eng (v2.0) [Read-Only] · Company Presentation 19 June 2020 Corporate Finance &...