Analyst Conference Q3/13 Wednesday, October 30, 2013

Transcription

1 Analyst Conference Q3/13 Wednesday, October 3, 213

2 AGENDA slide 2 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

3 Revenue from Sales Gained 9% y-o-y from increased sales volume of domestic cement and chemicals products. slide 3 +9% y-o-y MB +7% q-o-q 12, 1, 12,884 1,541 14,286 99,89 19,439 16, ,859 8, 6, 4, 2, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

4 EBITDA Increased 33% y-o-y, benefiting from the recovery in chemicals margins and continued domestic cement growths. The decrease of 11% q-o-q was due to lower seasonal dividend from SCG Investment. slide 4 MB EBITDA 18, 15, 12, 9, 6, 1, ,178 2,686 11,52 11, ,835 9,492 11,382 11,462 12, ,427 17,34 1,817 15, ,487 15,91 +33% y-o-y -11% q-o-q Dividend from Associates EBITDA from Operations +33% y-o-y 3, -3% q-o-q Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 NOTE: EBITDA = EBITDA from Operations + Dividend from Associates

5 Equity Income Increased 131% y-o-y, as the margins of chemicals associates continue to recover from last year. slide 5 MB 2,5 Chemicals Non-Chemicals +131% +9% y-o-y y-o-y +7% -31% q-o-q 2, 1,799 1,897 1, ,39 1, , ,223 1, , -39 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

6 Profit for the Period The earnings growth of 53% y-o-y was driven by the recovery in chemicals margins, domestic cement demand, equity income, and non-recurring gain of 1,71 MB. slide 6 +53% y-o-y MB - 1% q-o-q 1, 9,924 9,793 8, 6, 5,972 6,416 6,912 8,796 4, 4,28 2, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13

7 AGENDA slide 7 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

8 Revenue from Sales The chemicals business accounted for 49% of 9M/13 sales, while the cement building materials business was another 38%. slide 8 9M//12 37,711 MB 9M/13 329,839 MB (+7% y-o-y) Cement Building Materials 36% Chemicals 5% Cement Building Materials 38% Chemicals 49% Paper 14% Paper 13%

9 Profit for the Period The cement building materials business accounted for 45% of the 9M/13 earnings, while chemicals improved from 14% of 9M/12 earnings to 31% of 9M/13 earnings. slide 9 9M/12 16,668 MB 9M/13 28,513 (+71% y-o-y) Other 7% Chemicals 14% Cement -Building Materials 61% Paper 18% Other 13% Cement -Building Materials 45% Chemicals Subsidiaries 24% Chemicals Equity Income 7% Paper 11% Other = Mainly SCG Investment and Corporate

10 Segments: Export Destinations in 9M/13 ASEAN destinations were 44% of the total exports sold from Thailand. slide 1 Revenue from Sales Global Export 15% Export Destinations E.Europe2% EU2% N.America 1% M/E3% S.America 3% Africa 5% ASEAN Export 11% Oceania 7% N.Asia 7% S.Asia 8% China/HK 18% ASEAN 44% ASEAN Operations Export Destinations - subsidiaries outside of Thailand. - from Thai subsidiaries

11 ASEAN Drivers in 9M/13 Three countries (Indonesia, Myanmar, Vietnam) accounted for 59% of SCG s exports into ASEAN, while Sales from ASEAN operations increased 22% y-o-y to 28,3 MB. slide 11 Sales from ASEAN Operations Export to ASEAN (from Thailand) MB 35, 3, 31,2 9M/13: +22% y-o-y Q3/13: +22% y-o-y +8% q-o-q 28,3 Philippines 6% Laos 6% 25, 2, 15, 22,5 19, 13,4 14,6 16,7 Singapore 8% Cambodia 1% Indonesia 32% 1, 5, 7, M/13 Percentage of total sales from ASEAN Operations: 3% 5% 5% 7% 7% 7% 8% 9% Vietnam Malaysia 14% 11% Myanmar 13%

12 9M/13 Revenue from Sales & EBITDA Sales grew 7% y-o-y from demand growth in all businesses, while EBITDA increased 34% y-o-y from the recovery in chemicals margins and higher domestic demand of cement. slide 12 Revenue from sales 9M/12 9M/13 EBITDA 9M/12 9M/13 MB 4, 35, 3, 25, 2, 15, 1, 37, ,839 MB 45, 4, 35, 3, 25, 2, 15, 1, 33,999 3,29 3,79 45,491 2,486 43,5 EBITDA Dividend EBITDA from Operations 5, 5, EBITDA Margin: 1% 13%

13 9M/13 Profitability & CAPEX Earnings increased 71% y-o-y, from the recovery in chemicals margins, higher domestic demand of cement, increased equity income, and non-recurring gain of 1,71 MB. slide 13 Profit for the Period 9M/12 9M/13 CAPEX & Investments 9M/12 9M/13 MB 2, 28,513 MB 5, 15, 16,668 4, 1, 3, 2, 3,439 28,861 5, 1, EPS: Note: - CAPEX includes debottlenecking, expansions, and major turnaround. - Investments are acquisitions and purchase of shares.

14 EBITDA on Assets, and EBITDA Margin slide 14 Percent (%) EBITDA on Assets M/13 EBITDA Margin (%): EBITDA on Assets = EBITDA / Consolidated Assets EBITDA margin = EBITDA from Operations / Consolidated Sales

15 AGENDA slide 15 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

16 Net Debt Billion Baht, an increase of 2 Billion Baht q-o-q. slide 16 Billion Baht Q1/13 Q2/13 Q3/13

17 CAPEX and Investments Q3/13 CAPEX and Investments of 11,129 MB, and totaling 28,861 MB in 9M/13. slide 17 Billion Baht M/13 Q3/13 Q2/13 Q1/13 - CAPEX includes debottlenecking, expansion projects, and major turnaround. - Investments are acquisitions and purchase of shares.

18 Interest and Finance Costs The Q3/13 interest and finance cost of 2,13 MB includes a FX loss of 156 MB, while interest cost registered 4.1%. slide 18 MB 16, 14, 12, 15,6 14,3 12,995 11,487 1, 8, 6, 4, 9,216 1,38 8,11 5,876 6,89 5,649 6,48 6,321 4,762 5,1695,273 4,67 2, 685 2,181 2, Q1/13 Q2/13 Q3/13 NOTE: Interest & financial charges include FX gain/loss transactions.

19 Net Debt on EBITDA slide 19 Times (x) Net Debt to Equity =.8X

20 Interest Coverage Ratio slide 2 Times (x) Note: -Interest Coverage Ratio = EBITDA / Interest Expense -Interest Coverage Ratio excludes the effect of FX gain/loss.

21 Financial Highlights & Outlook slide 21 Highlights: SCG Cement Building Materials accounted for 6% of the 28,861 MB in CAPEX and Investments during 9M/13. Cash & cash under management of 33,719 MB at the end of Q3/13. Net Working Capital increased to 61,72 MB (mainly SCG Chemicals), with Inventory to Sales at 43 days. Non-recurring gain of 1,71 MB (1,527 MB from the fair investment value adjustment of sanitary ware and fittings assets, and 174 MB from the sale of assets to TOTO). 2 Billion Baht (4-year, 4.25% fixed) debenture issued on Oct 1/13 to replace the matured 1 Billion Baht tranche (4-year, 4.15% fixed). 3. Baht per share Interim Dividend for the 1 Year Anniversary, which is payable on Nov 28/13 (record date Nov 13/13 and book-closing date of Nov 14/13). Outlook: Solid financial position, with healthy fundamentals in all businesses. Continued efforts towards ASEAN growth expansion, with the FY213 CAPEX & Investments of approximately 4, MB.

22 HVA Progress slide 22

23 AGENDA slide 23 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

24 Q3/13 Market Insight slide 24 Domestics: Domestic cement demand grew 5% y-o-y and q-o-q, mainly from the commercial sector, and resulted in the 9M/13 growth of 7% y-o-y. Domestic RMC sales grew 11% y-o-y and 1% q-o-q, with an average price range of 1,75-1,8 baht per cubic meter. Sales of building products remained soft y-o-y and q-o-q, attributed to the high based effect of the post-flood reconstruction in 212. Regional: Indonesian cement demand in 9M/13 grew approximately 5% y-o-y, slightly softer due to sluggish commodity prices, rainy and stalled infrastructure projects. Cambodian cement demand in 9M/13 posted strong growth at 12% y-o-y, attributed to the infrastructure segment. Myanmar s cement demand in 9M/13 grew 19% y-o-y, driven by the construction of high-rise and other projects.

25 SCG Cement-Building Materials Sales breakdown in 9M/13. slide 25 9M/13 Sales: 13,976 MB 1.Structural: 33% Grey cement RMC Mortar White cement Lightweight concrete International 23% International business: ASEAN operations* Exports from Thailand Trading business 2.Housing: 12% Roofing products Board & Wood sub Home improvement Domestic 61% Ceramic 16% 3.Logistics and others: 16% Ceramic: (Thailand, Indonesia, Philippines, Vietnam, and all exports) Ceramic tiles (Floor & Wall) Sanitary ware & Fittings Notes: * ASEAN operations - subsidiaries outside of Thailand

26 SCG Cement-Building Materials Sales breakdown in Q3/13. slide 26 Total Domestic Structure 45,612 MB Ceramic 19% International 21% 27,367 MB 15,51 MB Logistic & Others 27% Housing 18% Others 1% RMC 47% Domestic 6% Structural 55% Grey cement 43% Notes: 1. Ceramic: - Ceramic tiles (Floor & Wall tiles only), Sanitary ware and Fittings. - Thailand, Indonesia, Philippines, Vietnam, and all exports. 2. International: ASEAN operations (sub. outside of Thailand), Exports from Thailand, and Trading. 3. Domestic: 3.1 Structural - Grey cement, RMC, Mortar, White cement, and Lightweight concrete. 3.2 Housing - Roofing products, Board & Wood sub, and Home improvement. 3.3 Logistics and others

27 Domestic Cement price Domestic cement price increased to the 1,9-1,95 Bt/ton level. slide 27 Baht/Ton 2,5 Average Domestic Price of Grey Cement (Net ex-factory) 2, 1,5 1, 5 - Sales Mix Q3/13 Bagged Mixed Cement 29% Bulk Portland 6% Bagged Portland 11% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

28 Cement exports Export volume dropped.5 MT y-o-y, in light of the domestic volume growth. slide 28 MT Export volume and Average price (FOB) $/Ton Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Clinker Cement Average FOB Prices

29 Ceramic Tiles Consolidation of Prime Group in Q2/13. slide 29 M sqm Sales volume & prices for all ASEAN subsidiaries Average Price Sales volume Effect from the consolidation Volume change +57% y-o-y +2% q-o-q 5 51 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Baht/sqm

30 Revenue from Sales Grew 15% y-o-y as a result of increased domestic sales of cement and RMC, in addition to the consolidations of Prime Group (Vietnam ceramics) and the sanitary ware and fittings businesses. slide 3 MB +15% y-o-y 5, 4, 37,93 38,693 39,742 38,172 43,237 5,188 42,127 6,74 45,612 8,666 +8% q-o-q Ceramic* 3, 1,89 9,689 9,579 International 2, 1, 27,239 25,697 27,367 Domestic Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 *Ceramic: Ceramic tiles (Floor & Wall tiles only), Sanitary ware and Fittings.

31 * EBITDA margin = EBITDA from Operations / Consolidated Sales EBITDA and Profit for the Period Profitability grew 55% y-o-y, added by the non-recurring gain of 1,71 MB (1,527 MB from the fair investment value adjustment of sanitary ware and fittings assets, and 174 MB from the sale of assets to TOTO). slide 31 (MB) Q1/13 Q2/13 Q3/13 MB 8, Total EBITDA: 6,629 6,416 6,852 Domestic: 4,739 4,448 4,926 Structural: 3,966 3,816 4,215 7, 6, EBITDA 6,42 5,69 5,983 5,15 6,629 6,416 6,852 5, % y-o-y +7% q-o-q 5, 4, 3, Profit for the period 3,83 3,469 2,956 2,91 4,42 3, % y-o-y +58% q-o-q 2, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 EBITDA Margin*: Total 17% 14% 15% 13% 15% 15% 15% Domestic: % 17% 18% Structural: % 27% 28%

32 Outlook and Project Updates slide 32 Outlook: Forecasted FY213 Thai cement demand of approximately 5% y-o-y. Indonesia cement demand may experience some softness in Q4/13, due to higher interest rate and softer property market. Project updates: Indonesia cement plant: On process with facility and access constructions, as well as mining preparation, with production expected in H2/15. Myanmar cement plant: On process with the final selection of construction contractors, with operation expected in H1/16. Cambodia cement plant: The second line expansion has begun civil construction, with operation expected by mid-215. Precast concrete investment: Investment of approximately 2,5 MB to build two precast plants, with expected commercial run in mid year 215.

33 AGENDA slide 33 I. Consolidated Results - Q2/13 Consolidated Results - H1/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

34 Q3/13 Market Insight HDPE-N and PP-N margins narrowed because of the increase in feedstock costs. slide 34 Market Insight: Crude oil price increased by 6% q-o-q to $11/bbl, attributed to political unrest in the Middle East. In line with crude oil price, naphtha price increased by 7% q-o-q to $92/ton. Ethylene price increased by 5% q-o-q to $1,322/ton. HDPE price increased by 3% q-o-q to $1,489/ton. The larger increase in naphtha price reduced HDPE-Naphtha margin by 3% q-o-q to $568/ton. Propylene price increased by 3% q-o-q to $1,336/ton. PP price increased by 3% q-o-q to $1,518/ton. The larger increase in naphtha price reduced PP-Naphtha margin by 3% q-o-q to $597/ton. PVC margins (PVC-EDC/C2) increased by 13% q-o-q but down by 6% y-o-y to $435/ton BD-Naphtha margin plummeted by 57% q-o-q because of ongoing sluggish demand for synthetic rubber in China.

35 HDPE and PP Naphtha Price Gaps Despite 3% lower gaps q-o-q caused by higher feed costs, HDPE-N gap increased by 33% y-o-y to $568/ton and PP-N gap also moved up to $597/ton or up by 13% y-o-y, following better demand. slide 35 $/ton 1,2 1, HDPE-N Gap +33% y-o-y - 3% q-o-q PP-N Gap +13% y-o-y -3% q-o-q Naphtha PP-N HDPE-N 2 Q1/12 Q2/12 Q3/12 Q4/12 HDPE-Naphtha Spread ($/ton) 437 PP-Naphtha Spread ($/ton) 52 Note: Prices refer to SEA regional prices Q1/13 Q2/13 Q3/13 Q4/13 to date

36 Prices refer to FE regional prices PVC Higher PVC margins up by 13% q-o-q to $435/ton due to tight PVC and cost push from ethylene. slide 36 $/ton 1,75 1,5 1,25 1, PVC Gap: - 6% y-o-y +13% q-o-q Ethylene PVC VCM EDC Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 to date PVC-EDC/C Spread ($/ton) 464

37 Benzene & Toluene BZ-N margins decreased q-o-q because of higher feedstock cost, while SM plant turnaround in East Asia and poor phenol demand caused benzene price to drop. slide 37 $/ton 1,8 1,6 1,4 1,2 1, Benzene Gap + 21% y-o-y - 23% q-o-q Benzene Toluene Naphtha 2 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 to date BZ-Naphtha TL-Naphtha BZ-Spread ($/ton) 265 TL Spread ($/ton) 275 Note: Prices refer to SEA regional prices

38 Note: BD and MMA prices refer to SEA regional prices, PTA prices refer to Asian regional prices Price Gaps of Associates MMA-Naphtha: BD-Naphtha: PTA-PX: Declined due to rising feedstock cost. Negative margin due to poor synthetic rubber demand in China. Increased Chinese demand for US$-denominated PTA. slide 38 MMA-Naphtha $/ton, BD-Naphtha $/ton 3,5 BD-N Gap - 82% y-o-y PTA-PX Gap + 2% y-o-y PTA-PX $/ton 4 3, - 57% q-o-q + 22% q-o-q 2,5 BD-Naphtha 3 2, 1,5 MMA-Naphtha 2 1, 5 PTA-PX Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 to date 1 BD-Naphtha 2,45 1,574 1, Spread ($/ton) 1,481 PTA-PX Spread ($/ton) 87

39 Polyolefins Sales Volume Stable volume q-o-q, with increased export primarily to China. slide 39 Ton 6, -.2% y-o-y + 1% q-o-q 1,282, 1,366, 5, 4, 433, 464,416, 446,457, 463, 385, 3, 2, 1, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13

40 PVC Sales Volume Stable volume q-o-q, with resilient demand in Thailand and ASEAN. slide 4 Ton 25, 2, 15, + 7% y-o-y -.2% q-o-q Domestic Operations ASEAN Operations 172, 175, 19, 19, 178, 178, 17, 27% 29% 3% 26% 3% 3% 31% 525, 558, 29% 3% 1, 5, 73% 71% 7% 74% 7% 7% 69% 71% 7% Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13 Note: *ASEAN Operations = Sales volume from PVC operations in Vietnam and Indonesia

41 Revenue from Sales Revenue increased 7% q-o-q, attributed to higher product prices and sales volume. slide 41 MB +7% y-o-y 75, 6, 45, Domestic Operations ASEAN Operations 52,9 52,51 53,478 3% 49,339 49,249 3% 4% 4% 3% 52,359 4% +7% q-o-q 55,831 4% 154,29 4% 161,668 4% 3, 97% 96% 97% 97% 96% 96% 96% 96% 96% 15, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13 Note: * ASEAN operations = Sales revenue from PVC operations in Vietnam and Indonesia

42 EBITDA EBITDA increased 11% y-o-y, attributed to rising overall margin. slide 42 MB 7, 6, 5, 4, 3, 2, 1, + 11% y-o-y + 1% q-o-q EBITDA from Operation Dividend 6,112 5, ,32 3,235 2,868 3, ,945 1,83 4,218 2, ,925 2,923 1, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 14,885 1,799 6,798 13,86 3,115 3,683 9M/12 9M/13 EBITDA 1% 1% 6% 4% 5% 8% 11% 2% 8% Margin Note: EBITDA = EBITDA from Operations + Dividend from Associated Companies

43 Profit for the Period Profit for the Period increased 67% y-o-y, following higher overall margin and improved performance of associated companies. slide 43 MB 4, 3, 2, 1, -1, + 67% y-o-y + 44% q-o-q Subsidiaries and Others 3,791 Equity Income 82 2,629 2,64 2, ,24 2, , ,53 1, Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13-1,5 + 6,555 MB 9,6 2,113 6,947 2,55 2, , Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13

44 Outlook and Project Updates slide 44 Outlook: Seasonal demand softness pre-holiday season, while additional supply is expected following plant turnarounds in Q3/13. Map Ta Phut Olefins (MOC): 45-day cracker shutdown for scheduled maintenance in late Q4/13. Project Update: Long Son Petrochemical Project (46% SCG stake): Sumitomo Mitsui Banking Corporation was appointed as financial adviser. Project value is approximately $4.5 billion, and construction is expected over a 4-year period once funding has been secured. Chandra Asri Petrochemical (3% SCG stake): $13 million equity rights issue for the cracker expansion in H2/15 and the synthetic rubber JV with Michelin once approved by shareholders.

45 AGENDA slide 45 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

46 Packaging Paper AOCC prices picked up owing to Chinese paper producers stock replenishment. Packaging paper prices weakened, due to regional demand softness. slide 46 $/Ton 6 Q3 Oct/13 Packaging Paper Wastepaper (AOCC) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct Note: regional prices

47 Packaging Paper: Domestic sales volume rose 6% y-o-y from healthy demand in food & beverage and consumer products segments. slide 47 tons tons 1,4 1,4 1,2 1,2 1, 1, 8 +3% y-o-y +3% q-o-q 8 1,362 1, (24%) (23%) (12%) (12%) % y-o-y +4% q-o-q (65%) (64%) (65%) (67%) Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 ASEAN Operations* Thailand Export Thailand Domestic 9M/12 9M/13 Note: *Sales Volume from Philippines and Vietnam

48 Fibrous (Printing & Writing Paper) Short-fiber pulp prices fell sharply from price competition in the Chinese market, while long-fiber prices maintained. Regional paper prices followed suit, with continued declining regional demand. $/Ton 1,2 Q3 slide 48 Oct/13 P&W Paper 9 Long Fiber Short Fiber Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Oct Note: regional prices

49 Fibrous (Printing & Writing Paper) Domestic sales volume decreased y-o-y from demand softness in publication and commercial materials segment. slide 49 tons 4 tons (22%) 77 (22%) 2-9% y-o-y -3% q-o-q % y-o-y 1-1% q-o-q (78%) (78%) Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13 Domestic Export

50 Financials Declining financials q-o-q, mainly from price and margin pressure in both chains, coupled with lower sales volume of the Fibrous Chain. Performance for 9M/13 improved from higher sales volume and improved efficiency in the Packaging Chain. slide 5 MB 16, 14, 12, 13,985 14,456 14,585 14,44 Revenue from Sales (Left) 15,74 14,34 14,871 +2% y-o-y +4% q-o-q MB 4, 3, Revenue from Sales (MB) 43,26 44,285 1, 2,215 2,37 2,273 2,789 2,498 2,239 9M/12 9M/13 EBITDA (MB) 6,858 7,526 8, 6, 4, EBITDA (Right) 1,1 1, , ,342 1,32-1% y-o-y -1% q-o-q 791 2, 1, 9M/12 9M/13 Profit for the period (MB) 2,962 3,165 2, Profit for the period (Right) -7% y-o-y -23% q-o-q Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 9M/12 9M/13 16% 17% EBITDA Margin

51 Business Segments Lower results in the Packaging Chain and the Fibrous Chain q-o-q, mainly due to price and margin pressure in both chains, coupled with lower sales volume of the Fibrous Chain. slide 51 Packaging Chain Fibrous Chain MB 12, 1, 8, 1,413 1,159 1,691 +3% y-o-y +5% q-o-q MB 12, 1, 8, Stable y-o-y 6, 4, 2, 1,857 1,948 1,821 Q3/12 Q2/13 Q3/13-2% y-o-y -7% q-o-q 6, 4, 2, 4,172 4,181 4, Q3/12 Q2/13 Q3/13 Stable q-o-q Stable y-o-y - -24% q-o-q EBITDA 18% 19% 17% Margin EBITDA 1% 13% 1% Margin Revenue from Sales EBITDA

52 Outlook and Project Updates slide 52 Outlook: -Packaging Chain Wastepaper: Regional prices expected to hike, mainly due to higher Chinese orders to meet yearend quotas. Paper prices expected to remain under pressure from seasonal demand softness at year-end. -Fibrous (Printing & Writing) Chain Short-fiber pulp prices expected to maintain. Long-fiber pulp prices expected to firm up, due to tight supply from major producers maintenance downtime in North America and Europe. Intensified regional competition and oversupply continue to put pressure on paper prices. Project updates: Thai Containers Group (SCG Paper stake of 7%) acquired a 9% stake in PT Primacorr Mandiri (Indonesia) in Sep/13 (37, tons/year), boosting SCG Paper s total box capacity to 1,13, tons/year. SCG Paper signed a Memorandum of Understanding with Nippon Paper Industries (NPI) to form a strategic joint venture in SCG Paper s Fibrous Chain (NPI s equity injection for a 3% stake), expected to conclude within Q2/14. Smooth and faster-than-plan startup of Dissolving Grade Pulp line and VKPC s debottleneck. Approx. 1-month maintenance downtime of Paperboard line s debottleneck in Kanchanaburi in Q4/13.

53 AGENDA slide 53 I. Consolidated Results - Q3/13 Consolidated Results - 9M/13 Summary - Financial Updates II. SCG Cement - Building Materials III. SCG Chemicals IV. SCG Paper V. Summary

54 Summary slide 54 Thank You For further details, please contact