Quarterly Analyst Presentation First Quarter 2021 - 28 May 2021 - Chememan
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Quarterly Analyst Presentation
First Quarter 2021
28 May 2021
1
Disclaimer The information contained in our presentation is intended solely for reference only. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events, financial performance and result of CMAN's activities. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. The information contained in this presentation is subject to change without notice and CMAN does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. Q1 2021 ANALYST PRESENTATION 2
Agenda
Business Overview Financial Outlook
Performance
▪ Company Overview ▪ Recap ▪ Strategic Framework
▪ Operating Assets ▪ Financial Results
▪ Capacity Statement
Q&A
Q1 2021 ANALYST PRESENTATION 3
Chememan Established in 2003, Chememan Plc (CMAN) is the world’s leading producer of lime and lime derivative
chemical products having the largest production capacity in Asia of 1,000,000 TPA.
At A Glance Being a fully-integrated lime producer with strong supply network, CMAN has been renowned as the
preferred supplier of customers in over 30 countries for a myriad of uses across Asia, Australia, and
Africa.
1 2 3
Mineral
Mining Dressing Calcination Hydrator
Plant
Distribute Distribute Distribute
Limestone Quicklime Hydrated
Lime
Grinding Grinding
Plant Plant
Distribute Distribute
Ground Quicklime
CAL
Q1 2021 ANALYST PRESENTATION 4
Operating Assets (as of May 2021)
Vietnam
Ha Long QN Lime Quarry *
Ha Long QN Lime Plant (Quang Ninh) *
Thailand
Tubkwang Quarry
Kangkoi Plant
CalMix ***
India
Prabuddhabaht Plant
Easternbulk Lime Products **
Rayong Plant
Siriman Chemicals India **
Australia
Kwinana DC LEGEND
Quarry
* CMAN’s ownership interest is 80% of Ha Long QN Lime Quarry and Ha Long QN Lime Plant (Quang Ninh) Production Plant
** CMAN’s ownership interest is 50% of Easternbulk Lime Products and Siriman Chemicals India
*** CMAN’s ownership interest is 51% of CalMix Co., Ltd. DC
Q1 2021 ANALYST PRESENTATION 5
Capacity Statement (as of May 2021) Total Installed Capacity 2021: >1,000,000 TPA
Tubkwang (TK) Quarry Tubkwang Crushing Plant Kangkoi (KK) Prabuddhabaht (PBB) Rayong (RY)
Production Facility Production Facility Production Facility
▪ >100m MT limestone ▪ 3 million TPY capacity ▪ >500k TPY QL capacity ▪ >350k TPY QL capacity ▪ >87k TPY HL capacity
mineable reserves
▪ Grinding limestone into ▪ 6 coal-fired lime kilns ▪ 2 natural gas-fired lime ▪ Hydrated lime plant
▪ The current mining smaller sizes kilns
concession is valid until ▪ The largest and most ▪ Situating in the heart of
2040 cost-efficient production ▪ The 2nd largest production Thailand’s Eastern
facility with most facility producing a higher- Seaboard region, one of
▪ Operating under strict advanced lime kiln grade end products Asia’s most successful
mining standards and well technology from Maerz large-scale industrial
above the Thai ▪ Production occurs for developments, which is
government's ▪ Locating only 3 kms from more premium value only 27 kms away from
environmental TK quarry, resulting in customers and to meet Laem Chabang deep
requirements near seamless mining peak demand seaports
and production
integration
CAL Station
▪ 300k TPY capacity combined from 3 locations
▪ Consuming undersized limestone as raw material to achieve mining material balance
Q1 2021 ANALYST PRESENTATION 6
Capacity Statement (as of May 2021)
Ha Long QN Lime (HLL) Ha Long QN Lime (HLL) Easternbulk Lime (EB) Siriman Chemicals India Kwinana
Quarry Production Facility* Production Facility (Siriman) Super Distribution Center
Production Facility
▪ 75m MT limestone ▪ >182k TPY QL capacity, ▪ >47k TPY QL capacity ▪ >47k TPY QL capacity ▪ COD: June 2021
mineable reserves 120k TPY HL capacity (current) (current)
▪ State-of-the-art DC designed
▪ The current mining ▪ 2 coal-fired lime kilns ▪ >47k TPY QL capacity ▪ >47k TPY QL capacity and built >500,000 TPY of
concession is valid until (under construction) (under construction) QL imports by many world-
2046 ▪ The 2nd production base class customers in the
capable for capacity ▪ 1 coal-fired lime kiln ▪ >35k TPY HL capacity region
▪ Operating well above the expansion to over 500k TPY
Vietnam government’s ▪ Significant product demand ▪ 1 coal-fired lime kiln
environmental ▪ Locating only 3 kms away from nearby plants resulted in
requirements from HLL Quarry, resulting the immediate order for a 2nd ▪ Hydrated lime plant
in near seamless mining and lime kiln to be completed in
production integration Dec 2021 ▪ Market territory of Eastern
India
▪ Situating close to 2 deep ▪ Market territory of Southern
seaports – Cai Lan and Hai India
Phong, offering highly
competitive advantages for
future market development
Q1 2021 ANALYST PRESENTATION 7
Proven Performance
Compelling growth through continuous capacity expansion, technological advancement and cost management
Build-up Breakthrough
Q1 2021 ANALYST PRESENTATION 8
Agenda
Business Overview Financial Outlook
Performance
▪ Company Overview ▪ Recap ▪ Strategic Framework
▪ Operating Assets ▪ Financial Results
▪ Capacity Statement
Q&A
Q1 2021 ANALYST PRESENTATION 9
An excellent quarter on all fronts
1Q21 Recap
MAINTAINING SAFE & PROFITABLE OPERATIONS
The World’s Leading Lime Producer ▪ Increase production levels to 55% from 30% in 3Q20
while maintaining COVID-19 protocols and strong safety
record
▪ 1Q21 net income of Baht 55 million
Cost ▪ Highest quarterly EBITDA (excluding special items) of
Optimization Baht 161 million since listed on SET
Advanced Vertical &
Technology & Horizontal IMPLEMENTING OUR STRATEGY
Automation Expansion ▪ Construction of Kwinana Super Distribution Center
To be
>80% complete and ready for operations by June 2021
>2 MTY Lime ▪ Start of commercial operations at Siriman in January 2021
Producer by ▪ Development of 2nd lime kiln expansion project at EB
2025
Agile Ways People
Development POSITIONING FOR THE FUTURE
of Working ▪ Introduction of new organization structure to align roles
Sustainable and responsibilities with future plans
Development ▪ Contact with local financial institutions in countries like
with Good Australia and Vietnam to support business operations
Governance ▪ Discussions on new joint ventures in multiple countries
for limestone mining, lime production facilities, and
downstream product expansion
Q1 2021 ANALYST PRESENTATION 10Strong Consolidated Financial Performance Q1 2021 ANALYST PRESENTATION 11
Q1 2021 Consolidated Sales Performance
CAL 1Q20 2Q20 3Q20 4Q20 1Q21
(MT) 274,927 297,753 257,948 268,414 366,311
Key Highlight Key Highlight
• The above chart includes only sales of QL and HL, and • QL sales revenue increased in 1Q21 from seasonal demand
excludes CAL products of domestic sugar industry
• 1Q21 CAL products’ sales revenue rose as CMAN acquired
new customers from iron and steel industry
Q1 2021 ANALYST PRESENTATION 12Market Portfolio
Key Highlights
▪ CMAN supplies to a broad array of
industrial customers across Asia,
Australia and Africa
▪ Market segmentation of CMAN has
been shifted overtime and more well-
diversified, where mining sectors, pulp
& paper and sugar are major
customers, presenting nearly 50% of
total sales revenues
Q1 2021 ANALYST PRESENTATION 13Agenda
Business Overview Financial Outlook
Performance
▪ Company Overview ▪ Recap ▪ Strategic Framework
▪ Operating Assets ▪ Financial Results
▪ Capacity Statement
Q&A
Q1 2021 ANALYST PRESENTATION 14Strategic Framework
1Q2021 2021 2022 onwards
Thailand ▪ Emphasized on cost optimization ▪ Operating all lime kilns at their full ▪ Exploring new venture opportunity to
▪ Increased production utilization to production capacity enhance market-leading position and
60% from 30% to support demand ▪ Continuing additional cost efficiencies overall portfolio value
recovery and debottlenecking key production areas ▪ Progressing and developing new product
▪ Intensively adjusted customer ▪ Studying new product expansion ▪ Building culture of continuous
portfolios to mitigate the impact of opportunity improvement
increasing freight cost ▪ Executing people development program
▪ Developed new organization structure to enhance alignment of roles and
to align with future plans responsibilities with business strategy
Vietnam ▪ Increased production utilization in ▪ Expanding production capacity by ▪ Starting operation of 3rd lime kiln at
response to growing lime demand in multiple developing 3rd lime kiln at HLL HLL (4Q22)
countries ▪ Penetrating additional markets in Asia
▪ Intensively adjusted customer portfolios to and Oceania
mitigate the impact of increasing freight cost
India ▪ Developed 2nd lime kiln and HL plant ▪ Starting operation of 2nd lime kiln and ▪ Starting operation of 2nd lime kiln at
at EB after the latest kiln expansion has HL plant at EB (Dec) Siriman
been sold out ▪ Studying new joint ventures and product
▪ Stabilizing kiln utilization at Siriman expansion opportunity in other territories
▪ Started operation at Siriman in Jan
Australia ▪ Actively focused on construction of ▪ Starting operation of Kwinana Super DC, ▪ Growing a larger customer base while
Kwinana Super DC to be ready for ready to manage up to 500,000 TPY maintaining excellent distribution services
operation within June 2021 capacity to many world-class customers
throughout Western Australia
Health and safety protection measures for our employees and community remains our top priority as COVID-19 pandemic continues
Q1 2021 ANALYST PRESENTATION 15Agenda
Business Overview Financial Outlook
Performance
▪ Company Overview ▪ Recap ▪ Strategic Framework
▪ Operating Assets ▪ Financial Results
▪ Capacity Statement
Q&A
Q1 2021 ANALYST PRESENTATION 16Thank you for your attention
Contact Us:
Investor Relation Department
+66 2661-9734-8 ext. 110 IR@chememan.com
Q1 2021 ANALYST PRESENTATION 17You can also read
