Opportunity Day - Stock Exchange of Thailand...2017/05/23 · Scheduled COD 4Q/17 4Q/18 Targeted :...
Transcript of Opportunity Day - Stock Exchange of Thailand...2017/05/23 · Scheduled COD 4Q/17 4Q/18 Targeted :...
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Opportunity Day
Stock Exchange of Thailand
Quarter 1, 2017
Enhances lives everyday withThe Green Chemical Concept
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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 describedherein. 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 andfinancial performance. Actual financial performance of the entities described herein could differmaterially from that projected in the forward-looking statements due to the inherent uncertainty ofestimates, forecasts and projections, and financial performance may be better or worse thananticipated. Given these uncertainties, readers should not put undue reliance on any forward-lookingstatements.
Forward-looking statements represent estimates and assumptions only as of the date that they weremade. The information contained in this presentation is subject to change without notice and GGCdoes not undertake any duty to update the forward-looking statements, and the estimates andassumptions associated with them, except to the extent required by applicable laws and regulations.
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Agenda
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GGC Business Overview
Strategic Direction
1Q/17 Financial Highlights
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Agenda
Page 4
GGC Business Overview
Strategic Direction
1Q/17 Financial Highlights
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GGC – Green Flagship
A Prominent Player in Oleochemical Business Aiming to Become a Leading Green Chemical Company
GGC’s Post-IPO Shareholding Structure Key Milestones
TETSOJV
Biocomplex
Public
72.29(1) - 75.00%
>99.99%(3) 30.00%(4)50.00% 50.00%(5)
25.00 – 27.71%(1)
2015
2008
2005
2006
Founded
TOL and
TFA
Commenced
Operations
Completed
corporate
restructuring
for spin-off
Converted
into a PLC
and renamed
to GGC
Acquired
50% in TEX
Invested in
30% interest
in TETSO
2016
LEADING
GREEN
CHEMICAL
COMPANY
ME Plant 2 COD(7)
2018
2017
Kernel Nut
Extraction
Plant COD(7)
Biocomplex
Phase 1 COD(7)
2019
Biocomplex
Phase 2
50.00%(2)
Note: (1) In the case that full over–allotment options are exercised (2) Held by BASF Thai Company Limited (3) Other 2 shares are held by individuals (4) Remaining
70.00% are held by Eastern Palm Oil Company Limited (5) Remaining 50.00% are to be held by Kaset Thai International Company Limited (KTIS) (7) Scheduled COD
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http://www.google.co.th/url?url=http://www.ftipc.or.th/category_inside.php?category_id=13&rct=j&frm=1&q=&esrc=s&sa=U&ei=nO5ZVc-gBcKPuATU-YO4Cw&ved=0CBcQ9QEwAQ&sig2=mlzhxe3lz1ueVlSpnazqLA&usg=AFQjCNHf56YdE6i54WILyk6TAqWSLxQgtA
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Overview of GGC’s Value Chain
Strong Foothold of Upstream Businesses and Integrating into Downstream Businesses
Home Care
Industrial Aids
Personal Care
Chewing Gum /
Candy
Personal Care
Pharmaceuticals
End Use
B100 (used to
produce Biodiesel,
transportation fuel)
GGC’s Product TEX’s Product
Raw MaterialBasic
Oleochemicals
Oleochemicals
Derivative
Methyl Ester
Fatty AlcoholsFatty Alcohols
Ethoxylates
Refined Glycerine
Fatty Alcohols Ether Sulfates
Fatty Alcohols Sulfates
(FAEO)
(ME)
(FA)
Palm Kernel Oil
Palm Oil
(CPO)
(CPKO)
(Glycerine or GL)
Operating Performance Overview
62%38%
Sales Revenue Breakdown
By Business Unit
1Q/17 : Total 4,246 MB
Adjusted EBITDA Breakdown
By Business Unit
1Q/17 : Total 345 MB
ME Business Unit (ME + GL)
FA Business Unit
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47%53%
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GGC’s Key Strengths
Advanced technology from international manufacturer
Feedstock flexibility
Cost competitiveness
Production yield competitiveness
Reliability – minimal unplanned downtime
ME and FA positioned as premium products with high quality
Internationally recognizable brand renowned for its quality
Strong operational standard highly recognized and awarded
RSPO certified in line with global trends
GGC, the Designated Green Chemical Flagship Company of the PTTGC Group, a Leading Oleochemical Player with
Growth Opportunities in the Downstream Businesses
Technologically advanced production
plants and commitment for continuous
improvement
Strong brand equity with high-quality
products and service standards
99.78%99.64%
99.99%
2014 2015 2016
Plant OperatingPeriod
High Reliability - Minimal Downtime(1)Superior ME Profitability
2,936 3,147 2,847
7.5%9.0%
7.2%
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.1
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
5,000.00
2014 2015 2016
EBITDA per ton
EBITDA Margin
1
Brand Sustainability Awards Certifications
2
THB / ton
Note: (1) Operating period is based on amount of time without unplanned shutdown over total hours in a year (365 days * 24 hours) Page 7
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GGC’s Key Strengths (cont’d)
GGC, the Designated Green Chemical Flagship Company of the PTTGC Group, a Leading Oleochemical Player with
Growth Opportunities in the Downstream Businesses
Located in Rayong with proximity to various partners, suppliers, customers etc.
Connecting pipelines to supplier (for hydrogen) and customer (for FA to TEX)
allows cost and quality advantages
Advantage in developing new products and quality of existing product that requires
Hydrogen as raw material
Designated green chemical flagship of PTTGC
Long-standing business relationships with PTT Group, PTTGC Group and
other business partners i.e. Shell, Esso, SPRC and Unilever
Strategic Location in the Map Ta
Phut Industrial Complex with
Proximity to Suppliers and
Customers
Strategic relationship with PTT
Group, PTTGC and global industry
leaders
TEX10%
Others45% PTT
Group
45%
2016 Sales Breakdown by Customer
PTT Group
Current facilities
Future projects
3
4
CLMV
Biocomplex
ME plant II ME & FA plant
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Agenda
GGC Business Overview
Strategic Direction
1Q/17 Financial Highlights
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Aspiration to Become a Leading Green Chemical Company
Our Strategies in Completing the Three Pillar Growth Roadmap
Product Portfolio Aspiration
Under the Three Pillar Strategy
Maintaining leadership position in our current business1
Continuously pursuing operational excellences to improve profitability2
Expanding customer base and maintaining relationship with existing valuable customers3
Emphasizing on R&D for high value products4
Expansion into specialty oleochemicals5
Moving toward biochemicals and bioplastics6
Biofuel
ME Ethanol
FAEO
GLFA
Special-
ties
Bioplastics
Our Strategies
Palm Base
Biochemicals
Sugar Base
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Bio
chemicals
Bio
Plastics
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Oleo Specialties
Refined Glycerine
Plant 220 KTA
Projects in the pipeline
ProjectKernel Nut
Extraction (TETSO)
Methyl EsterPlant 2
Refined GlycerinePlant 2
Oleo Specialties BiocomplexPhase 1
CapacityFeedstock Intake
90 KTAMethyl Ester
200 KTAMethyl Ester
20 KTATBA
Sugarcane : 2.4 mm TPAEthanol : 186 mm LPA
CAPEX380 MB
(GGC holds 30%)1,650 MB TBA TBA
7,615 MB(GGC will hold 50%)
Project Progress Update Under Construction Under Construction Feasibility Study Feasibility Study FID : 4Q/17
Scheduled COD 4Q/17 4Q/18 Targeted : 4Q/18 Targeted : 4Q/19 4Q/19
2017 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
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Agenda
GGC Business Overview
Strategic Direction
1Q/17 Financial Highlights
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1Q/16 4Q/16 1Q/17 % YoY % QoQ
Sales Revenue (Millon Baht) 3,124 2,111 2,642 -15% 25%
Plant Utilization Rate (%) (1) 102% 59% 86% -16% 27%
Sales Volume (Tons) (2) 88,345 53,038 69,205 -22% 30%
Sales Volume (Million Litres) 102 61 80 - 0 30%
Adjusted EBITDA (Million Baht)(3) 303 143 163 -46% 14%
Adjusted EBITDA Margin (%) 9.7% 6.8% 6.2% -3.5% -0.6%
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
1Q/16 4Q/16 1Q/17 % YoY % QoQ
Sales Revenue (Millon Baht) 1,211 2,009 1,604 32% -20%
Plant Utilization Rate (%) 98% 105% 89% -8% -16%
Sales Volume (Tons) 25,321 28,048 19,890 -21% -29%
Adjusted EBITDA (Million Baht)(1) 19 91 181 833% 99%
Adjusted EBITDA Margin (%) 1.6% 4.5% 11.3% 9.7% 6.8%
Note : (1) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV
Quarter 1/2017 Highlights by Business Unit
Fatty Alcohols Business Unit Highlights
B5-B3 B5B7B7-B3
*Biodiesel mandate B7 – effective from May 8, 2017
Methyl Ester Business Unit (B100) Highlights
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Biodiesel Mandates & Trend of CPO DIT Price Trend of CPKO MPOB Price
Biodiesel mandate
• Gradual growth of regional CPKO supply,
• CPKO price started to declined mid 1Q/17
• Gradual growth of local CPO supply• Biodiesel mandate was B5 during 1Q/17
GGC’s Fatty Alcohols Business Unit PerformanceGGC’s Methyl Ester Business Unit Performance
B7*
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Consolidated Operating Performance
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4,335 4,120 4,246
1Q/16 4Q/16 1Q/17
Sales Revenue (MB) EBITDA & Adjusted EBITDA* (MB)
EBITDA Margin & Adjusted EBITDA* Margin (%)
407
272 312 323
234
345
9.4%
6.6%
7.3%7.5%
5.7%
8.1%
1Q/16 4Q/16 1Q/17
EBITDA Adjusted EBITDA
EBITDA Margin Adjusted EBITDA Margin
YoY: -2%QoQ: +3%
EBITDA
YoY: -23%QoQ: +15%
Adjusted
EBITDA
YoY: +7%QoQ: +48%
269
142 145
6.2%
3.4% 3.4%
1Q/16 4Q/16 1Q/17
Net Profit Net Profit Margin
Net Profit (MB) & Net Profit Margin (%)
1Q/16 4Q/16 1Q/17
Ad
juste
d E
BIT
DA
Bre
akd
ow
n
By B
usin
ess U
nit
Sa
les R
eve
nu
e
Bre
akd
ow
n
By B
usin
ess U
nit
ME Business Unit FA Business Unit
Note : Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV
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Performance Quarter 1/2017 vs. Quarter 4/2016
142 145
72 71
47 49
Q4/2016 Operating Profit Stock Gain FX Other Q1/2017Stock Gain/(Loss)
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Overall operating profit in Q1/17 was higher than Q4/16,mainly from increasing in spread of Fatty
Alcohols following market P2F.
Stock Gain (Loss) in Q1/17 was loss of 33 MB while there was stock gain in Q4/2016 of 38 MB
,mainly from Fatty Alcohols due to the continuous rise in price of crude palm kernel oil during the
whole quarter.
Gain/(Loss) from FX in Q1/17 was loss 24 MB against gain in Q4/2016 of 23 MB due to baht
appreciation in Q1/17 while baht depreciation in Q4/16.
Net Profit : Million Baht
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Performance Quarter 1/2017 vs. Quarter 1/2016
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269
145
33 128
23 6
Q1/2016 Operating Profit Stock Gain FX Other Q1/2017
Overall operating profit in Q1/17 was slightly higher than Q1/16,mainly from increasing in
spread of Fatty Alcohols following market P2F while there was decrease in sales volume of
Methyl Ester as a result of biodiesel mandate being B5 in Q1/16 while it was B7 in quarter 1/2016.
Stock Gain (Loss) in Q1/17 was loss of 33 MB while there was stock gain in Q1/2016 of 95 MB ,
mainly from Fatty Alcohols due to the continuous rise in price of crude palm kernel oil during the
whole quarter.
Gain/(Loss) from FX in Q1/17 was loss 24 MB against loss in Q1/16 due to baht appreciation in
Q1/17 more than Q1/16.
Stock Gain/(Loss)
Net Profit : Million Baht
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Strong Financial Position
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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
March 31, 2017
Baht 11,845 million
Key Financial Ratios
0.7
1.0 1.0
1.8 1.9
0.1 0.2 0.2
0.3 0.3
31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 31 Mar 17
Net IBD/EBITDA
Net IBD/Equity
10.7
12.8 13.2
11.0 10.1
9.4
11.1 10.7
8.7 7.3
31 Mar 16 30 Jun 16 30 Sep 16 31 Dec 16 31 Mar 17
ROE ROA
Repayment Plan Cash Flows
231 280
338
441
567
765
2017 2018 2019 2020 2021 2022
Million Baht
Million Baht
528
916
631 159
84
Beg Cash OperCF CA+In Financing Ending Cash
Million Baht
BeginningCash
OperatingCash Flows
EndingCash
FinancingCAPEX &Investment
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Appendix
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Consolidated Income Statement
Page 19
Unit (Million Baht)
MB % MB % MB % MB % MB %
Sales Revenue 4,335 100 4,120 100 4,246 100 (89) (2) 126 3
Feedstock (3,483) - 80 (3,354) - 81 (3,347) - 79 135 (4) 7 (0)
NRV (11) - 0 0 0 - - 11 (100) (0) (100)
Product to Feed Margin 841 19 766 19 899 21 58 7 133 17
Other Variable Costs (363) - 8 (302) - 7 (355) - 8 8 (2) (52) 17
Fixed Costs (130) - 3 (130) - 3 (139) - 3 (9) 7 (9) 7
Stock Gain/(Loss) 95 2 38 1 (33) - 1 (128) (135) (71) (187)
SG&A (49) - 1 (112) - 3 (71) - 2 (21) 43 41 (37)
Other Income 13 0 12 0 10 0 (3) (20) (2) (14)
EBITDA 407 9 272 7 312 7 (95) (23) 40 15
Depreciation and Amortization (130) - 3 (139) - 3 (138) - 3 (8) 6 1 (1)
EBIT 278 6 133 3 174 4 (8) (3) 1 1
Finance Costs (7) - 0 (22) - 1 (22) - 1 (15) 219 (1) 3
FX Gain/(Loss) (1) (1) - 0 22 1 (24) - 1 (23) 2,089 (46) (208)
Shares of profit/(loss) from investment 24 1 24 1 30 1 6 25 6 26
Income Tax Expenses 0 0 (15) - 0 (12) - 0 (13) (4,967) 3 (18)
Net Profit 293 7 142 3 145 3 (148) (51) 3 2
Profit/(Loss) attributable to - - - - - - - - - -
Owners of the company 269 6 142 3 145 3 (124) (46) 3 2
Non-controlling interest 24 1 - - - - (24) (100) - n.a.
Net Profit 293 7 142 3 145 3 (148) (51) 3 2
Note : (1) Including Gain/(Loss) from FX and Derivatives
Adjusted EBITDA (2) 323 7 234 6 345 8 22 7 111 48
Note : (1) Including Gain/(Loss) from FX and Derivatives
(2) Adjusted EBITDA refers to EBITDA excluding impact of Stock Gain/(Loss) and NRV
1Q/16 4Q/16 1Q/17 YoY QoQ
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One-Time Expenses in 4Q/16 and 1Q/17
(1) One-Time Expenses in 4Q/16 : 45 MB
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407
272
312 323
234
345
9.4%
6.6%
7.3%7.5%
6.8%
8.3%
1Q/16 4Q/16 1Q/17
EBITDA
Adjusted & Normalized EBITDA
EBITDA Margin
Adjusted & Normalized EBITDA Margin
45(1)
8(2)
(2) One-Time Expenses in 1Q/17 : 8 MB
IPO Related Expenses : c.7 MB
Asset Write-Off Expenses : c.23 MB
Litigation Expenses : c.15 MB (primarily recorded in 3Q/17 : 5 MB)
IPO Related Expenses : c.8 MB
Adjusted & Normalized EBITDA (MB)Adjusted & Normalized EBITDA Margin (%)
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Value Chain of the Chemical Industry
Page 21Note: Value chain is simplified and exemplified for educational purposes, therefore it does not reflect the whole chain
Petrochemical(1)
Feedstock Upstream Downstream End Applications
High Value Add
Oil fracking
3D/4D PrintingE&E Construction
Durable
Packaging Film / Fiber Auto
Green Chemical(1)
Feedstock Upstream Downstream End Applications
High Value Add
Oil fracking
Phama/Cosme
tic Ingredient
3D/4D PrintingE&E Construction
Durable
Packaging Film / Fiber Auto
Biofuel
HPC Additives
Agro-Green Solutions Lubricants
E&P
(Crude Oil Base)
Refinery/
Aromatics/
Olefin
LDPE, LLDPE, HDPE
Phenol, Acetone, PU, PC
Cellulosic
(Sugar Base)
Oleo
(Palm Base)
Biochemical Bioplastics
Ethanol
Bio
fuel
Bio
pla
stics/
Bio
ch
em
ica
l
ME
FA
Gycerine
Fatty Acid
FAEO
FAES
Oleo
specialties Bio
ch
em
ica
l
Phama/Cos-
metic Ingredients
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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
FIDProject
Timeline
Project Progress
CAPEX
1,650 MB
Apr/17 4Q/18
CODFoundation Stone
Placement Ceremony
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Applications
By Product Value Added to ME Plant 2 (RGL)
CGL captive use to produce RGL with higher value
Project
Timeline
CAPEX
TBA
4Q/18
Targeted : CODUnder Feasibility Study
ME Plant 2 Refined Gylcerine Plant 2
20 KTARefined GlycerineCrude Glycerine
• Integrated project with ME Plant 2
• Enhance value of by-product, Crude Glycerine from ME production
• Capture market growth of high volume industries
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CPKO
Profitability Enhancement thru’ vertical integration
JV with experienced partner in Kernel Nut Extraction for Fatty Alcohols feedstock security and cost saving
Started
ConstructionProject
Timeline
CAPEX
380 MB
4Q/17
COD
3Q/16
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
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Higher - Value Downstream Products
Specialty Oleochemicals Development towards higher profitability
Project
Timeline
CAPEX
TBA
4Q/19
Targeted COD
Fatty Alcohols
Multi Purpose Reactor Specialty Oleochemicals
“Recipe”
Special Feedstocks
Raw 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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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
4Q/17
FIDProject
Timeline
Biocomplex Phase 1
CAPEX
7,615 MB4Q/19
CODStart
Construction
4Q/17
Phase 1
Location : Nakornsawan
GGC will hold 50% in JV with KTIS
Under EIA approval process
Key Investment Decision Criteria:
• Amendment of Sugar Act
• Approval to procure electricity by PEA
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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, Thailand
Tel: +66(0) 2 558 7300 Fax: +66(0) 2 558 7301www.ggcplc.com
For further information or enquiries, please contact our Investor Relations Team
Contact: Puvadol Vasudhara (IR Manager)
Email: [email protected] Tel: +66(0) 2 558 7307