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

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    Chememan reported financial results for Q1 2019 with the following key highlights: 1. Revenue increased 2.6% to 612 million baht compared to Q1 2018. Net profit decreased 13.4% to 32 million baht. 2. A new quicklime kiln commenced operation in January 2019, increasing production capacity. Chememan also established a new joint venture, CalMix, to develop construction materials. 3. Financial results were impacted by a 25.4% increase in transportation costs and higher administrative expenses, partially offset by lower finance costs. Normalized EBITDA declined 10.9% and normalized net profit declined 20.4% compared to Q1 2018.

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

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    Chememan reported financial results for Q1 2019 with the following key highlights: 1. Revenue increased 2.6% to 612 million baht compared to Q1 2018. Net profit decreased 13.4% to 32 million baht. 2. A new quicklime kiln commenced operation in January 2019, increasing production capacity. Chememan also established a new joint venture, CalMix, to develop construction materials. 3. Financial results were impacted by a 25.4% increase in transportation costs and higher administrative expenses, partially offset by lower finance costs. Normalized EBITDA declined 10.9% and normalized net profit declined 20.4% compared to Q1 2018.

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    cam-2019

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    20190528-cman-am-1q2019

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    Chememan reported financial results for Q1 2019 with the following key highlights: 1. Revenue increased 2.6% to 612 million baht compared to Q1 2018. Net profit decreased 13.4% to 32 million baht. 2. A new quicklime kiln commenced operation in January 2019, increasing production capacity. Chememan also established a new joint venture, CalMix, to develop construction materials. 3. Financial results were impacted by a 25.4% increase in transportation costs and higher administrative expenses, partially offset by lower finance costs. Normalized EBITDA declined 10.9% and normalized net profit declined 20.4% compared to Q1 2018.

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    42 views30 pages

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

    Uploaded by

    soumyarm942
    Chememan reported financial results for Q1 2019 with the following key highlights: 1. Revenue increased 2.6% to 612 million baht compared to Q1 2018. Net profit decreased 13.4% to 32 million baht. 2. A new quicklime kiln commenced operation in January 2019, increasing production capacity. Chememan also established a new joint venture, CalMix, to develop construction materials. 3. Financial results were impacted by a 25.4% increase in transportation costs and higher administrative expenses, partially offset by lower finance costs. Normalized EBITDA declined 10.9% and normalized net profit declined 20.4% compared to Q1 2018.

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    of 30

    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

    Chememan Analyst Presentation Q1-2019 4


    Financial Performance of Q1 2019

    Chememan Analyst Presentation 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

    Chememan Analyst Presentation Q1-2019 7


    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

    Chememan Analyst Presentation Q1-2019 8


    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%

    Chememan Analyst Presentation Q1-2019


    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 (%)

    Chememan Analyst Presentation Q1-2019 10


    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%

    Chememan Analyst Presentation Q1-2019 11


    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)

    Chememan Analyst Presentation Q1-2019 12


    Analysis by Product – Hydrated Lime

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


    Sales Quantities MT 13,850 26,147 25,684
    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)
    Transportation expense per unit BPT (668) (610) (373)
    Sales Revenue MB 60 107 98
    Domestic MB 25 27 31
    International MB 35 80 67
    Cost of goods sold MB (35) (65) (64)
    Transportation expense MB (9) (16) (10)
    Gross Profit (Net Transportaion) MB 15 27 24
    % Gross Profit Margin (Net Transportation) % 30.2% 29.4% 27.5%

    Chememan Analyst Presentation Q1-2019 13


    Analysis by Product – Hydrated Lime

    Gross Profit Gross Profit Margin


    Q1 Sales Quantities Sales Revenue Price/unit Net transportation Net transportation

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


    Sales Quantities Sales Revenue
    Unit : MT Unit : THB million

    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

    Domestic International % Gross Profit Margin (Net Transportation)

    Chememan Analyst Presentation Q1-2019 14


    Analysis by Product – Limestone and Construction Stone

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


    Sales Quantities MT 167,187 105,421 90,909
    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)
    Transportation expense per unit BPT (138) (174) (130)
    Sales Revenue MB 69 51 39
    Domestic MB 57 50 39
    International MB 12 1 -
    Cost of goods sold MB (34) (28) (25)
    Transportation expense MB (23) (18) (12)
    Gross Profit (Net Transportaion) MB 12 4 2
    % Gross Profit Margin (Net Transportation) % 25.7% 12.2% 8.8%

    Chememan Analyst Presentation Q1-2019 15


    Analysis by Product – Limestone and Construction Stone

    Gross Profit Gross Profit Margin


    Q1 Sales Quantities Sales Revenue Price/unit Net transportation Net transportation

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


    Sales Quantities Sales Revenue
    Unit : MT Unit : THB million

    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

    Domestic International % Gross Profit Margin (Net Transportation)

    Chememan Analyst Presentation Q1-2019 16


    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

    Chememan Analyst Presentation Q1-2019 17


    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

    Chememan Analyst Presentation Q1-2019 18


    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

    Chememan Analyst Presentation Q1-2019 19


    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

    Chememan Analyst Presentation Q1-2019 20


    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
    Chememan Analyst Presentation Q1-2019 21
    Progress Update

    Chememan Analyst Presentation Q1-2019


    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

    Chememan Analyst Presentation Q1-2019 23


    SUPER SILOS – Completed

    • Location Kangkoi Saraburi


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

    Chememan Analyst Presentation Q1-2019 24


    LIMESTONE GRINDING PLANT– Completed

    • Locate at Tubkwang Quarry


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

    Chememan Analyst Presentation Q1-2019 25


    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

    Chememan Analyst Presentation Q1-2019 26


    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.

    Chememan Analyst Presentation Q1-2019 27


    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.

    Chememan Analyst Presentation Q1-2019 28


    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.

    Chememan Analyst Presentation Q1-2019

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