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SCG announces Operating Results of Q2 and the first half of 2016, with

an increase in profit from chemicals business. SCG foresees

significant growth potential for ASEAN region as it is the world’s

production base.


Bangkok:  27 July 2016 – SCG reports Q2/2016 and H1/2016 Operating Results, showing a steady increase in profit due to better performance of the chemicals business. SCG also sees a bright future for markets within ASEAN, with high growth potential for the building materials and packaging industries, as the region is a global production and export hub. The Company has also approved a full year dividend payment of 8.5 Baht per share.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unreviewed Operating Results for Q2/2016, with registered Revenue from Sales of  108,874 MB, a decreased of 4% y-o- y. In consequence, Profit for the Period reached 16,027 MB, an increase of 15% y-o- y, attributed to better earnings in the chemicals business. SCG’s Profit for the first half of 2016 registered 29,515 MB, an increase of 18% y-o- y, driven primarily by the chemicals business, while Revenue from Sales dropped 2% y-o- y 218,872 MB, primarily reflecting the lower chemicals prices as a result of the drop in naphtha/oil prices, as well as, strong competition and softness in the domestic market in  Cement–Building Materials business. Export revenue in the first half of 2016 accounted for 27% of SCG’s consolidated Revenue from Sales, representing a decrease of 9% y-o-y to 59,439 MB.

The performances of SCG’s businesses in ASEAN outside of Thailand in Q2/2016 The combined Q2/2016 Revenue from Sales of SCG’s ASEAN production facilities and Thai exports to ASEAN countries amounted to 25,186 MB, representing 23% of SCG’s consolidated Revenue from Sales, a 2% decrease y-o- y. Sales Revenue from SCG’s production bases in ASEAN is at 13,161 MB, which accounted for 12% of the consolidated Revenue from Sales, and an increase of 20% y-o- y. Meanwhile, Revenue from Sales of exports to ASEAN countries is at 12,025 MB, accounting to 11% of the consolidated Revenue from Sales, a 18% decrease y-o- y. Sales Revenue from SCG production based in ASEAN and export to ASEAN for the first half amounted to 49,582 MB, which accounted for 23% of the total revenue from sales, flat y-o- y. As of 30 June 2016, SCG’s total assets in ASEAN excluding Thailand stands at 121,951 MB or 23% of the company’s total assets.

The total assets of SCG as of June 30, 2016 amounted to 523,038 MB.

The Q 2 and first half of 2016 operating results by business units are as follows:

SCG Cement - Building Materials recorded a Q2/2016 Revenue from Sales of 42,984 MB, a decrease of 6% y-o- y and 6% q-o- q due to the pricing variables in the domestic market. The business unit registered Profit for the period of 2,476 MB, a decrease of 15% y-o- y and 25% q-o- q due to lower EBITDA and increased depreciation expense.

Revenue from Sales for the first half of 2016 is at 88,864 MB, a decrease of 4% y-o- y,due to softness in the domestic market which affected pricing and volume growth. Profit for the period dropped 11% y-o- y to 5,766 MB due to lower EBITDA and increased depreciation expense.

SCG Chemicals recorded Q2/2016 Revenue from Sales of 49,529 MB, an increase of 4% q-o- q, owing to product price increase, but decreased 8% y-o- y. The business unit registered Profit for the period of 11,232 MB, increasing 25% q-o- q due to improved company efforts and improvement of equity income from associated companies, and 22% y-o- y from lower feedstock costs. Revenue from Sales for the first half of 2016 is at 97,339 MB, a decrease of 4% y-o- y, primarily reflecting the lower chemicals prices as a result of the drop in naphtha/oil prices and Profit for the Period grew 43% y-o- y to 20,212 MB due to lower feedstock costs.

SCG Packaging recorded Q2/2016 Revenue from Sales of 18,841 MB, flat q-o- q but up 10% y-o- y. The business unit registered Profit for the period of 1,015 MB, decreasing 19% q-o- q. but gaining 33% y-o- y. Revenue from Sales for the first half of 2016 is 37,688 MB, increase of 10% y-o- y, owing to higher sales volume in both the Packaging chain and Fibrous chain and Profit for the period increased 38% y-o- y to 2,270 MB, as a result of healthy EBITDA generations.

For the first half of 2016, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 82,237 MB, close to that of the previous year, and accounting for 38% of the total Revenue from Sales. The Company invested more than 2,378 MB towards research and development (R&D) during the period. The amount accounts for 1.1% of the total Revenue from Sales. For the second half of 2016, SCG will continue to invest in R&D to innovate products and services that cater to the lifestyles of consumers across ASEAN.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, said: “We see a bright future for markets across the region, with steady growth rates. Especially in Vietnam, demand for building materials and packaging has risen, on the back of the boom of construction industry, with several infrastructure, residential and industrial projects, as the country has become a key production base of the world. Cambodia also continues to see steady growth of industries, while Indonesia has also begun to see improvements in the economy, with construction of several government mega-projects. At the same time, trade around the borders of Thailand and neighboring countries is also doing well.

Investments in other countries are progressing according to plan. The cement plant in Myanmar is expected to begin commercial operation in Q3 of 2016, while the plant in Laos should be operational in 2017. SCG will continue to expand investments by focusing on existing business partners and growing our businesses together.”

In addition, The Board of Directors of SCG has approved a H1/16 interim dividend payment of 8.5 Baht per share (10,200 MB), which is payable on August 25, 2016, XD-date on August 8, 2016, record date on August 10, 2016 and book closing date on August 11, 2016.


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