Meetings with Investors January, 2012

Transcription

1 2011 Leader: Building Material & Fixtures Sector Ranked Gold Class: 2011, 2010, 2009, 2008 DJSI member since: 2004 Ranking by SAM Meetings with Investors January, 2012

2 Agenda Slide 2 Snapshot Strategy Sustainability PVC Business

3 Business Segments 9M/11 Revenue from Sales 280,635 MB (+25% y-o-y) Distribution Building 10% Materials 9% Cement 15% Paper 15% Chemicals 51% Distribution 4% Building Materials 6% Net Profit 24,080 MB (+16% y-o-y) SCG Investment 12% Cement 24% Chemicals Subsidiaries 20% Chemicals Equity Income 22% Paper 12% Slide 3 SCG Investment s net profit is from: 1) dividend income (stake of <20%) 2) equity income (stake of 20% - 50%)

4 Export Destinations 9M/11 ASEAN was 39% of exports, versus 5% for both EU and N. America. Slide 4 5% ASEAN 39%

5 Net Debt Includes cash of 49,662 MB ($1.7 Billion) Debt Profile Slide 5 Net Debt / EBITDA = 2.2 times Net Debt / Equity = 0.7 times 91% are Thai Baht 73% are at fixed rates Interest cost of 4.5%

6 Net Debt on EBITDA Slide 6 Net Debt / Equity = 0.7 times

7 Agenda Slide 7 Snapshot Strategy Sustainability PVC Business

8 Strategy Slide 8 GROWTH 1) ASEAN expansion in existing businesses 2) High Value Added Products & Services (HVA) DISCIPLINE Cash return on investment hurdle of 15% Dividend payout policy of 40-50%

9 SCG s next CAPEX cycle Slide CAPEX of +150,000 MB Cash-flow financed Cash on hand of 49,662 MB CAPEX of 146,000 MB Mostly M&A Cash-flow financed Mostly green field...continued expansion of core businesses.

10 SCG s incremental capacity Slide 12 Slide 10

11 ASEAN expansion SCG s capacity ranking in ASEAN. Thailand Slide 11 ASEAN Downstream Chemicals million tons Packaging Paper million tons Cement million tons Building Products mill sqm of ceramics NOTE: includes recent acquisition of Chandra Asri Petrochemical

12 ASEAN expansion ASEAN accounts for 12% of assets, and 19% of staffs. Slide 12 ASEAN asset base of 44,200 MB Total Assets 23,100 Mil THB NOTE: includes recent acquisition of Chandra Asri Petrochemical

13 ASEAN expansion Regional growth opportunities Slide 13

14 2011 Indonesian acquisitions Indonesia is a key strategic ASEAN country with a large population base and high growth potential. Chandra Asri Petrochemicals (CAP) Acquired 30% stake from Temasek Holdings, and CAP. CAP is a world scale integrated chemical complex, producing PE, PP, styrene monomer and other olefins products. Indonesia has attractive demographics, high growth, and ample demand. Significant synergies today, and future opportunities tomorrow. Kokoh - Distributor of building materials Nationwide network of 22 distribution centre and +10,000 wholesalers and retailers. KIA Ceramic tiles producer Market share of 10% and capacity of 27 M sqm. SCG s total capacity has increased to 149 M sqm (from 122). Slide 14

15 Other recent investments Slide 15 Acquisition of Vietnamese box plant, valued 750 MB Alcamax has a capacity of 53,000 tons and has a leading Vietnamese market share with clients who are both large multinational and leading domestic producers. Capacity expansion of modular homes, valued 2,900 MB SCG Heim s capacity was expanded to 1,000 homes per year, from 200 earlier. SCG Heim is joint venture with Sekisui Heim of Japan.

16 HVA s key performance indicators HVA on Revenue from Sales target of 50% by Slide 16

17 Systematic Training Roadmap Competent staffs are key. Slide 20 Slide 17.

18 Corporate Scholarships Began in 1973, with +400 scholarships granted. Slide 21 Slide 18

19 Agenda Slide 19 Snapshot Strategy Sustainability PVC Business

20 Slide 20 Ranked Global Sector Leader (Building Materials & Fixtures) in 2011 by SAM. From , SCG also was ranked Gold Class and has been a member of the DJSI since DJSI represents the top 10% of the largest 2,500 stocks in the Dow Jones Global Total Stock Market Index, based on long-term Economic, Environmental and Social criterias. DJSI was established in 1999, and is the first truly global index to track sustainability initiatives of listed companies. More than 60 global funds in 16 countries allocate their asset portfolio in accordance to the DJSI. For further details:

21 DJSI Sector Overview Building Materials & Fixtures Slide 21

22 SCG eco value Thailand s first eco label, accounting for 15% of sales. Slide 22

23 SCG eco value Thailand s first eco label, accounting for 13% of sales in 9M/11. Slide 23

24 Future of SCG eco value and HVA Slide 24 SCG eco value HVA Most of the new SCG eco value = HVA

25 Agenda Slide 25 Snapshot Strategy Sustainability PVC Business

26 Shareholders approval required for the purchase of additional shares in Thai Plastic and Chemicals (TPC). Slide 26 TPC is the ASEAN leader in the PVC business Thailand Vietnam 566,000 tons 200,000 tons Indonesia 120,000 tons Total 886,000 tons

27 Ranking of PVC producers (KTA). Slide 27 ASEAN ASIA

28 TPC s product flow (by value). Slide 28 Internal External EDC 25% 75% VCM 60% 40% PVC resin PVC resin 70% Compound 10% Fabricated product 20%

29 HVA product in the PVC business. Slide 29 PVC Resin HVA Grade Applications PVC HVA Blood bag Credit cards Finished Product

30 PVC price gap Slide 30 USD/ton Jan/11 Jan/12

31 TPC s shareholders Slide 31 Others 23.89% Sellers 30.47% SCG 45.64% Sellers -CPBE 18.44% -Mr. Yos Euarchukiati 5.23% -Mrs. Vilaiphan Euarchukiati 3.26% -Mrs. Lawal Techapaiboon 1.98% -Mr. Sak Euarchukiati 1.21% -Charoon Euarchukiati Foundation 0.34% Total 30.47%

32 Thank You Slide 32