#1SCG Presentation: Strategic Growth Path Where we are today. SCG's platform, and growth vision. CREDIT SUISSE Asian Investment Conference Hong Kong March 19-20, 2018#2SCG's Strategic Growth Path ◉ Where We Are Today SCG's Platform and Growth Vision SCG P. 2#3SCG Financials Revenue from Sales EBITDA SCG Profit for the Period MB 500,000 MB MB 120,000 450,921 60,000 423,442 +6% +4% 56,084 -2% 102,080 EBITDA 55,041 97,816 400,000 100,000 50,000 10,129 16,444 Dividend Eq Inc. 17,933 80,000 Eq Inc. 18,212 40,000 300,000 200,000 100,000 60,000 30,000 87,687 EBITDA 40,000 85,636 from Sub. Operations 20,000 38,151 Sub. 36,829 20,000 10,000 0 0 0 FY2016 FY2017 EBITDA Margin: FY2016 21% FY2017 FY2016 FY2017 19% EPS: 46.7 45.9 P. 3#4FY2017 Segments ID 9% VN 8% Assets 573,412 MB MM LA PH Others ΚΗ 2% 2% 1% 1% 2% Revenue from Sales 450,921 MB Cement- Building Materials 36% TH 75% Packaging 8% Others 3% Packaging 18% Net Profit 55,041 MB Cement- Building Materials 13% Chemicals Equity Income 27% Chemicals 46% Chemicals Subsidiaries 49% SCG P. 4#5Highlight of Vietnam Presence Assets of +$7 Billion upon completion of LSP, versus $1.5 Billion in 2017. SCG HANOI CHINA Haiphong Nam Định LAOS Vinh Gulf of Tonkin Hainan Island Hue THAILAND Gulf of Thailand Cement - Building Materials: ■ Ceramic tiles (Prime Group) Packaging: ■ Box Plants - Cement Building Materials: ■ Cement Plants Ceramic tiles (Prime Group) CAMBODIA Da Nang VIETNAM Qui Nhon (Nha Trang Ho Chi Minh City Cần Thơ Vũng Tàu South China Sea - Cement – Building Materials: ■ White Cement (Buu Long) RMC (Ready-mixed concrete) ■ Concrete Products Chemicals: Long Son Petrochemicals PVC (TPC Vina) • PVC pipe & fiting (Binh Minh) Packaging: ■ Packaging paper (VKPC) ■ Box plants ☐ Flexible packaging plant P. 5#6Visibility for Chemicals Business Extends to 2022 Extended peak SCG 6% Supply Growth - World Ethylene Operating Rates - World Ethylene ...vs 3-4% demand growth 95% 5% 4% 3 % 90% Extended peak 2017 to 2022 5-6 MT shale 2 % cracker starts 1% 0 85% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 6% 5% 4% 3% 2% 1% Supply Growth - World Propylene ...vs 4-5% demand growth 95% Operating Rates - World Propylene 90% 85% Extended peak 2017 to 2022 0 80% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 P. 6#7SCG's Strategic Growth Path Where We Are Today SCG's Platform and Growth Vision SCG P. 7#8Roadmap to Growth SCG Chemicals Globally competitive, with ASEAN focus. Vietnam: LSP Complex ($5.4 billion). Indonesia: Chandra Asri's #2 cracker study. Thailand: Moving up the value chain with HVA. Cement - Building Materials ◉ ASEAN: Defendable positions via the integrated RMC business model. Indonesia and CLMV: High growth markets, with decreased oversupply, and enhanced pricing. Asset light focused: Launched in Thailand are logistics for e-commerce, installation services, and home living products retails stores. Packaging Geographical growth in ASEAN through acquisition. Growth of products and offerings through acquisition. Applications & Solutions: Food and E-commerce packaging. P. 8#9SCG Chemicals Globally competitive, and ASEAN focused. Future Vietnam: LSP cracker (4.5 yr construction) Indonesia: CAP #2 cracker (study phase) 2011 Indonesia: CAP #1 cracker (30% stake) 40% debottleneck in Q4, 2015 Delhi 2010 Thailand: #2 cracker (MOC) 1999 Thailand: #1 cracker (ROC) 1983 Thailand: SCC enters chemicals downstream business SCG Tianjin Dalian Demarcation Line claim Golmud bad Line of Seoul SOUTH Jinan Actual Control Lanzhou Yellow Sea KOREA CHINA Xi'an Zhengzhou Nanjing Kitalorushu Shiko 9 Kyushu Shanghai * Lhasa New NEPAL Kathmandu Kanpur BHUTAN Thimphu Kunming Chengdu Wuhan. Hangzhou East China Sea Nanchang Okinawa Fuzhou DIA BANGLADE Kolkata, gpur Mandalay BURMA Hanoi ad LAOS Vishakhapatnam Rangoon Chiang Vientiane Mai Chennai Bay of Bengal Da Nang THAILAND Andaman Haiphong AR Special Administ Hainan Dao Paracol :Islands VIETNAM South Manila Jaffna Islands Andaman (INDIA) Sea SRI LANKA Colombo AMBODIA Phnom Nicobar Islands (INDIA) Perih Gulf of Thailand Но Banda ceh Guiyang Taipei Guangzhou Taiwan Macau on Kong Region Luzon China Sea hh Spratly Islands Sulu Sea PHILIPPINE! Zamboanga Davao Mindanao P Medan Equator MALAYSIA Kuala Lumpur Bandar Seri Begawan BRUNEL MALAYSIA Borneo Colebes Sea Manado Indian Ocean 3 D Singapore SINGAPORE Pada Pontianak Sumatra INDONESIA Palembang Kendari Bengkulu Java Sea Makassar Ambon Banda Sea andung Surabaya Java Dili Kupang EAST TIMOR Christme leland P. 9#10Long Son Petrochemicals (LSP) project in Vietnam HANOI CHINA Haiphong Nam Định LAOS Vinh Gulf of Tonkin Hainan Island THAILAND Gulf of Thailand CAMBODIA Hue Da Nang VIETNAM Qui Nhon Nha Trang Ho Chi Minh City Cần Thơ Vũng Tàu South LSP site га SCG 4.5 year construction and $5.4 billion. Vietnam's first chemicals complex, as imports amount to 2.5 million ton PE/PP. LSP is competitive with... Flexible feedstocks Economies of scale Downstream integration Upon start-up: 70% capacity growth in PE/PP for SCG. P. 10#11Asset light projects in logistics Small Parcel Express Delivery SCG EXPRESS JV with Yamato Asia ('Black Cat') for small parcel home delivery. Cold Chain SCG Nichirei Logistics JV with Nichirei Logistics for Temperature- controlled logistics. Frozen < -25°c Frozen -18°c Chill 2°c to 6°c - - ภาคเหนือ ภาคกลาง และ ภาคตะวันตก wsunno in Beful woul wwwww Ustounitial ภาคใต้ anus maki unanfossue NEW gn New SCG EXPRESS DELIVER YOUR HAPPINESS EXPRESSI SCG Ice Cream Frozen Foods Dairy products Fruit& Vegetable 2017 พื้นที่เปิดให้บริการ ภาคอีสาน Vo quad na 2018 พื้นที่เปิดให้บริการ The 10,500 square meters warehouse is strategically located at Teparak Rd (km.22,), with proximity to the Inland Container Depot and is 103 km. from the Laemchabang sea port. <U. -20 -30. -40. -30 กรุงเทพ และปริมณฑล uuny inuend unsugu ภาคตะวันออก unsunun Unus 3004 mala hrud Quans Andme Nationwide P. 11#12Roofing installation services Combining products and services "TOP HAT" roofing solutions Package Attributes • Convenience SCG • Confidence in product Warrantee provided . Competitive package P. 12#13R&D & Innovation Spending MB 5,000 4,350 4,178 4,000 3,510 3,000 2,710 2,068 2,000 1,430 1,000 720 880 921 1,111 370 40 0 2004 2007 2008 2009 SCG 2018 Beyond Digital + Innovations 2010 2011 2012 2013 2014 2015 2016 2017 R&D Spending & Innovation Segments (FY2017) FY2017 HVA % of Sales: 39% Others 10% Packaging 14% R&D Spending on Sales (%): 0.9% R&D and Product Design Team: 1,645 Cement- Building Chemicals 54% Materials (116 PhD) 22% P. 13#14R&D and Innovations Collaboration Efforts Chemicals Global innovation network UNIVERSITY OF OXFORD norner The Polymer Explorers Cement-Building Materials Habitat & living solutions SCG Experience The NEST Packaging Corporate SCG ПЭПОСЕТ Joining Global cement & concrete consortium Co-creation with customers E-Commerce Packaging Food Safety Packaging EAZY STEAM Enjoy Corporate Technology Office SCG Open Innovation Center COOL TA-Q-BIN Buñu OC-BC SPRESS Global R&D Network ⚫ +38 Universities . +33 Research Inst. +140 Industry partners P. 14#15Packaging business Focused towards the total packaging solutions Downstream (Solutions) Primary Packaging Solutions Plastic Packaging - Flexible - Rigid Sunkist PISTACHIOS Total Packaging Solutions Display Packaging - Micro flute packaging Colgate Plax Colgate 12 HOU Plax 12 HOUR PROTECTION Logistics Packaging - Corrugated box - Logistics material SCG - E-Commerce packaging Fiber Packaging: - Food packaging - Pulp mold Fest Upstream (Substrate) Pulp / Paper (Food grade) Film - Folding carton Colgate Innoa Chang 47 -GIA Packaging Paper Chang CLASSIC P. 15#16Solid Performance Record SCG MB Global Chemicals Trough Thai Political Protest Global Financial Crisis Global Thai Thai Chemicals Political Flood Trough Protest MB 500,000 120,000 Sales (LHS) 100,000 400,000 EBITDA (RHS) 80,000 300,000 200,000 100,000 Net Profit (RHS) 60,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 40,000 20,000 DPS (Baht) Payout % 1.0 3.0 6.0 15.0 15.0 15.0 15.0 7.5 8.5 12.5 12.5 11.0 15.5 12.5 16.0 19.0 19.0 16% 25% 36% 49% 56% 61% 59% 54% 42% 40% 55% 56% 51% 45% 42% 41% 41% P. 16#17Thank You For further details, please contact [email protected] SCG P. 17