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1
Global Connections Public Company Limited
Opportunity day
“2009 Performance Announcement”
March 3, 2010
2
• Company Overview
• Plastic and Petrochemical Industry
• 2009 Performance
• AGM rating & CG Rating Result
• Q&A
Today Content
3
GC Revenue During 1995 – 2009
Company Overview
GC has been founded since 1994 by 5 experienced management
GC is the distributor of 23 leading producers of plastics and petrochemical raw materials from around the world.
Most of these producers are among the top 3 in the world in that product in terms of technology & production capacity.
GC is not an ordinary distributor. On top of ordinary distribution role, GC provide technical advice and useful information to customers since GC position itself to be Your best partner for solution and service in Industrial raw material supply.
Total Revenue
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1995
1997
1999
2001
2003
2005
2007
2009 Year
MB
76
2,665
3,3903,429
3,473
Listed to SET6th Dec.2005
4
GC role in the market
Customers
) Suppliers S1 S2 S3 S4 S5 Sn
C1 C2 C3 C4 C5 Cn
World without distributor
5
GC role in the market
World with distributor
) Suppliers S1 S2 S3 S4 S5 Sn
Customers C1 C2 C3 C4 C5 Cn
Economy of Scope to Customers
Economy of Scale to Suppliers
Logistic : warehousing, small delivery, and repacking
Sales & Marketing : end markets/customers
Technical Services
Financing & structuring solution
Global Connections Public Co., Ltd.
Provided
6
Where we are in the value chain of Thai Petrochemical Industry
Olefin&Aromatic
Producers
Monomer
producers
(MEG, VCM)
Global
ConnectionsConverters
Petrochemical and plastic producers
Upstream End usersIntermediate
Compounders
Masterbatch
producers
Compounders
Polymer
producers
(PP, PE, PVC)
Downstream
7
Organization Chart
Board of Directors
Executive Committee
President
Audit Committee
Internal Audit
Marketing
Department 1
Marketing
Department 2
HR & Administration
Operation Finance & Account
The President Office
Marketing
Department 3
The Nomination and Remuneration Committee
8
Board of Directors
1. Mr. Virah Mavichak Chairman of the Board and Independent Director
2. Dr. Pisit Leeahtam Independent Director and Chairman of Audit Committee
3. Assoc. Prof. Chawalee Pongpatirochna Independent Director and Audit Committee
4. Mr. Suchart Suphayak Independent Director and Audit Committee
5. Mr. Somchai Kulimakin Vice - Chairman and President
6. Mr. Sumruay Tichachol Director
7. Mr. Aikachai Sirijantanan Director
8. Mr. Siri Thirawattanawong Director
9. Mr. Bhiya Jriyasetapong Director
9
Major Shareholders
Free Float Overview As of 31/12/2009
Minor Shareholders
(Free float) 393
% Shares in Minor Shareholders
(% Free float) 25.40%
Overview As of 31/12/2009
Total Shareholders 438
Rank Major Shareholders (as of 16/03/2009) # Shares % Shares
1 Mr. Somchai Kulimakin 46,499,800 23.25
2 Mr. Sumruay Tichachol 27,125,000 13.56
3 Mr. Aikachai Sirijantanan 27,125,000 13.56
4 Mr. Bhiya Jriyasetapong 26,125,000 13.06
5 Mr. Siri Thirawattanawong 15,426,000 7.71
Sub total 142,300,800 71.15
Current Low Liquidity of GC’s Stock
10
Business Unit
GC
1. Commodity Polymer
1.1 Polyolefin
SBU
1.2 PET&PVC
SBU
3. Specialty Chemical
3.1 Additive
&Adhesive
SBU
3.2 Petrochem.
&Intermediate
SBU
2. Specialty & Engineering
Polymer
2.1 Engineer
&Synthetic
Rubber
SBU
2.2 Themo.
Rubber&
Transparency
SBU
2.3 Styrenic
Plastic
SBU
11
Corporate Value
• Ethics
• Integrity
• Professional & Focus
• Partnership
• Strive for better
12
Plastic and Petrochemicals Industry
ภาพรวมของธรกจอตสาหกรรมปโตรเคม
ราคาสนคาปโตรเคม และเมดพลาสตกแกวงตวลดลงในชวงปลายไตรมาสท 3/2552 จากราคาน ามนทออนตวลงและการชะลอการซอของจนกอนถงวนชาต 1 ตลาคม แตสถานการณเรมกลบมาฟนตวดขนในชวงปลายไตรมาส 4/2552 จากราคาน ามนทปรบขนแตะระดบ 80 เหรยญสหรฐตอบารเรล และทรงตวในชวงราคา 70 – 80 เหรยญสหรฐตอบารเรล ไดตลอดไตรมาส 4/2552 เปนผลจากตวเลขเศรษฐกจโลกทเรมกลบมาขยายตวดขน
ผลกระทบจากค าสงศาลปกครองสงสดทใหระงบ 76 โครงการอตสาหกรรมทนคมมาบตาพด เมอวนท 29 กนยายน 2552 เรมสงผลกระทบตออปทานของวตถดบปโตรเคม และเมดพลาสตก ท าใหผประกอบการโรงงานแปรรปทลดสนคาคงคลงของเมดพลาสตกลงจนต ามาก ตองหนกลบมาซอกอนจะขามป เพอสรางความมนใจวาจะมเมดพลาสตกปอนเครองจกรในการผลต และราคาเมดพลาสตกกลบสวนทางกบภาษ AFTA ทจะปรบลดลงเปนศนย มผลตงแตวนท 1 มกราคม 2553 เปนตนไป
ก าลงซอกลบมาเพอเตมสนคาคงคลงประกอบกบการฟนตวอยางชดเจนของอตสาหกรรมหลกทมการใชเมดพลาสตกเปนสวนประกอบเสรม เชน อตสาหกรรมรถยนต เครองใชไฟฟา และอเลกทรอนกส กลบมาดตอเนอง เกอบจะใกลเคยงกบชวงกอนเกดวกฤตเศรษฐกจในป 2551 และคาดวาจะดตอเนองจนสนสดไตรมาส 1/2553
13
กราฟแสดงราคาน ามนดบระหวางป 2552 - ปจจบน
14
Plastic Producer Type Portion
15
Source : www.plastic.oie.go.th
Plastic Producer by Industry
16Source : www.plastic.oie.go.th
Product volume by process
17Source : www.plastic.oie.go.th
18
2009 Performance
19
Income Statement
Unit : Million Baht
2009 2008 Change 2009 2008 Change
Sales 712.15 534.90 33% 2,647.35 3,410.03 -22%
COGS 657.18 510.75 29% 2,459.78 3,168.53 -22%
Gross Profit 54.97 24.15 128% 187.57 241.50 -22%
Reversal of allowance for
diminution in value of inventories 0.00 3.00 -100% (21.00) 23.00 -191%
Selling & Admin Expenses 19.66 24.59 -20% 87.01 97.97 -11%
Loss(Gain) on Exchange (1.44) 0.15 -1060% (3.57) (1.36) 163%
EBITDA 36.75 (3.59) -1124% 125.13 121.89 3%
Depreciation 2.90 2.97 -2% 11.56 12.06 -4%
Interest Expense 1.23 3.81 -68% 5.82 15.14 -62%
Profit Before Other Income 32.62 (10.37) -415% 107.75 94.69 14%
Other Income 2.88 4.14 -30% 13.94 17.39 -20%
Profit before Tax 35.50 (6.23) -670% 121.69 112.08 9%
Tax 8.17 0.28 2818% 25.39 35.54 -29%
Net Profit 27.33 (6.51) -520% 96.30 76.54 26%
Actual YearActual Q4
20
Sales Structure
53.1
7.8
1.4
49.0
8.9
1.2
45.3
12.0
1.7
41.4
11.2
1.3
41.2
9.5
1.3
-
10
20
30
40
50
60
70
'000 T
2005 2006 2007 2008 2009 Year
Sales QuantityBU3BU2BU1
62.4 59.153.9
58.952.0
85.1%
12.6%
2.3%
82.9%
15.1%
2.1%
76.8%
20.3%
2.9%
76.8%
20.8%
2.4%
79.3%
18.2%
2.5%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009
Sales Quantity in PecentageBU3
BU2BU1
2,424
666
167
2,406
822
149
2,287
983
186
2,293
968
149
1,779
730
138
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2005 2006 2007 2008 2009
Sales ValueBU3
BU2
BU13,258 3,378 3,456 3,410
2,647
74.4%
20.5%
5.1%
71.2%
24.3%
4.4%
66.2%
28.4%
5.4%
67.2%
28.4%
4.4%
67.2%
27.6%
5.2%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009
Sales Value in PercentageBU3BU2BU1
21
Gross Profit Structure
No. of SupplierBU1 9BU2 12BU3 6
75
72
29
87
107
25
86
133
38
91
135
33
92
85
24
฿0
฿20
฿40
฿60
฿80
฿100
฿120
฿140
฿160
฿180
฿200
฿220
฿240
฿260
฿280
2005 2006 2007 2008 2009
Gross Profit By BUBU3
BU2
BU1
219
259257
201
176
Gross Profit Margin by SBU
4.0%5.2%
11.7%
22.4%
17.1%
3.6%3.1%
3.7%
10.8%
13.0%13.9%
13.6%
20.3%16.8%17.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2005 2006 2007 2008 2009
BU1
BU2
BU3
43%
41%
17%
40%
49%
11%
33%
52%
15%
35%
52%
13%
46%
42%
12%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009
Gross Profit in PercentageBU3BU2BU1
22
P&L Highlights
Profitability Ratio
Revenue & Net Profit
Profit Margin
GC’s gross profit amount has been decreased from
THB 242 million in 2008 to be THB 188 million in
2009 because of the decrease in sales volume as
well as the dropping of selling price in accordance
with oil price fluctuation. However, the sales
revenue and gross profit margin had been
improving since ending Q2/2009 due to the
improvement of purchasing power and the increase
in selling price led by higher oil price.
GC’s net profit margin of 2009 is around 3.64%
higher than 2.24% in 2008. This was due to the
allowance for diminution in value of inventory and
allowance for doubtful debts made during 2008.
Revenue and Net Profit
In 2009, Sales decreased from 2008 around
22.37 % resulting from the impact of global
economic downturn.
3,2723,390 3,429
2,665
3,473
96
77
108
67
37
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009
Rev
enue
(Mill
ion
Bah
t)
0
20
40
60
80
100
120
Net
Pro
fit (M
illio
n B
aht)
Revenue Net Profit
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2005 2006 2007 2008 2009
-
5
10
15
20
25
30
35
6.00
5.01
7.08 7.096.94
3.64
2.24
3.14
1.97
1.12
21.74
25.82
21.35
15.99
31.81
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2005 2006 2007 2008 2009
-
5
10
15
20
25
30
35
Gross Profit Margin (%) Net Profit Margin (%) ROE (%)
ROEProfit Margin
GC’s Performance over two years
* All GP calculate before transportation cost
Q1
2008Q2 Q3 Q4 Q1 Q2
2009Q3 Q4
4.11%
3.25%
1.11%-1.22%
2.24%
4.26%
3.87% 3.84%
8.37%
7.64%8.14%
5.14% 4.96%
8.03%8.37%
8.23%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Profit Margin
Gross Profit Margin Net Profit Margin
GC's Sales & Gross Profit by Quarter in 2008-2009
1,001885
990
535511
623801
712
28
59
8376 72
25
50
67
-
200
400
600
800
1,000
1,200
1,400
Q1 Q2 Q3 Q4
(10)
10
30
50
70
90
Sales 2008 Sales 2009 GP2008 GP2009
24
Balance Sheet
Unit : Million Baht
Asset 31/12/2009 31/12/2008 Change %
Accounts Receivable 385.57 283.23 102.34 36%
Inventory 266.31 305.69 -39.38 -13%
Net Fixed Assets 145.20 154.14 -8.94 -6%
Total Assets 828.09 771.52 56.57 7%
Liabilities
Short Term Loan 220.00 290.00 -70.00 -24%
Accounts Payable 174.95 102.34 72.61 71%
Total Liabilities 432.95 420.67 12.28 3%
Equity
Paid up Capital 200.00 200.00 0.00 0%
Share Premium 56.03 56.03 0.00 0%
Retained Earnings 139.11 94.81 44.30 47%
Total Equity 395.14 350.85 44.29 13%
25
Continuous increase in current ratio
GC current ratio has been improving to
higher than 1.0x since GC got more working
capital from IPO proceed.
This higher liquidity can reduce GC’s
financial costs.
D/E ratio is relatively lower.
D/E ratio is less than 2.0 which decreased
after IPO proceeds .
Balance sheet Highlight
Debt to Equity Ratio
4.35
2.001.70 1.58
1.20 1.10
-
1.00
2.00
3.00
4.00
5.00
2004 2005 2006 2007 2008 2009
Current Ratio
0.94
1.281.46 1.37
1.481.58
-
0.50
1.00
1.50
2.00
2004 2005 2006 2007 2008 2009
CASH FLOW FOR THE YEARS ENDED 31 DECEMBER 2009 AND 2008
(Unit : Thousand Baht) 2009 2008
Cash flows from operating activities
Net income before tax 121,691 112,080
Adjustments to reconcile net income before tax to net cash provided by
(paid from) operating activities :- (3,965) 55,929
Income from operating activities before changes in operating assets
and liabilities 117,726 168,009
Operating assets (increase) decrease
Trade accounts receivable (102,347) 263,700
Inventories 60,373 (116,199)
Other current assets 341 (588)
Other non-current assets 15 (806)
Operating liabilities increase (decrease)
Trade accounts payable 72,541 (87,847)
Accrued expenses 3,028 (1,067)
Other current liabilities 2,265 (2,806)
Cash flow from operating activities 153,942 222,396
Cash paid for interest expenses (5,773) (14,368)
Cash paid for corporate income tax (16,625) (45,386)
Net cash flows from operating activities 131,544 162,642
CASH FLOW FOR THE YEARS ENDED ENDED 31 DECEMBER 2009 AND 2008
(Unit : Thousand Baht) 2009 2008
Cash flows from investing activities
Acquisition of equipment (2,625) (3,536)
Proceeds from sales of motor vehicles and equipment 425 2,044
Net cash flows used in investing activities (2,200) (1,492)
Cash flows from financing activities
Decrease in short-term loans from financial institutions (70,000) (40,000)
Cash paid for liabilities under finance lease agreements (4,439) (5,992)
Decrease in long-term loan 0 (19,950)
Dividend paid (24,000) (52,000)
Interim dividend paid (28,000) (40,000)
Net cash flows used in financing activities (126,439) (157,942)
Net increase in cash and cash equivalents 2,905 3,208
Cash and cash equivalents at beginning of year 18,010 14,802
Cash and cash equivalents at end of year 20,915 18,010
28
Dividend Payment Record
Dividend Payout
Positioning of GC Stock
To be top 50
dividend yield stock
with continuous growth
11th10/03/08
77%75% 74%
84% 83%
60%
80%
100%
2005 2006 2007 2008 2009
Dividend Payout Ratio
Operation Dividend Payment X-Date Dividend Yield
Period Ending (BPS.) Date before on x-date (cal. From X-Date
31-Dec-09 0.26 30-Apr-10 19-Apr-10 N/A N/A N/A
30-Jun-09 0.14 11-Sep-09 27-Aug-09 3.28 3.18 4.27%
31-Dec-08 0.12 30-Apr-09 16-Apr-09 2.40 2.40 5.00%
30-Jun-08 0.20 12-Sep-08 26-Aug-08 4.84 4.60 4.13%
31-Dec-07 0.26 30-Apr-08 17-Mar-08 4.06 3.90 6.40%
30-Jun-07 0.14 7-Sep-07 21-Aug-07 3.46 3.32 4.05%
Price with X-Date
source : SET news on 10.03.08
29
Competitors and Benchmarking
30
Earning Result of 2009 and 2008
Competitor Analysis and Benchmarking
Stock Net profit (Bm) EPS (B)
2009 2008 %chng Q4/09 Q4/08 %QoQ Q3/09 %QoQ 2009 2008 %chng
GC 96.3 76.5 26% 27.3 6.5- 519% 31.0 -12% 0.48 0.38 26%
UKEM 49.5 47.3 5% 8.8 16.0- 155% 9.5 -7% 0.08 0.07 5%
WG 134.1 140.4 -4% 30.5 22.2 37% 36.8 -17% 7.50 7.86 -5%
The Year 2008
Stock Net Profit (Bm) EPS (B)
2009 2008 2007 %chng 2009 2008 2007 %chng
GC 96.3 76.5 108.5 26% 0.48 0.38 0.54 26% Par = THB 1
UKEM 49.5 47.3 37.1 5% 0.08 0.07 0.06 5% Par = THB 0.25
WG 134.1 140.4 131.1 -5% 7.5 7.9 7.35 -5% Par = THB 10
CG & AGM Rating Result
31
32
Average score
78% 80% 82% 84% 86% 88% 90%
82%
88%
88%
90%
บรษท
SET 50 Index
SET 100 Index
บรษทจดทะเบยนโดยรวม
CG Rating Result for the year 2009
33
91%
83%79%
90%
68%
82%
95%
86%88%
93%
77%
88%
95%
85%89%
94%
78%
88%
94%92% 93%
96%
79%
90%
0%
20%
40%
60%
80%
100%
120%
บรษทจดทะเบยนโดยรวมSET 100 Index
SET 50 Index
บรษท
Corporate Governance Report of Thai Listed Companies 2009
CG Rating Result for the year 2009
CG Rating Result for the year 2009
34
ผลการประเมนการก ากบดแลกจการบรษทจดทะเบยนประจ าป 2552
2009
Below good 60-0
Good 70-79
Very good 80-89
Excellent 90-100
จากทงหมด 290 บรษท
Very Good
Good
Below goodGC52 บรษท
138 บรษท
86 บรษท14 บรษท
AGM Rating Result for the year 2009
35
- 20.0 40.0 60.0 80.0 100.0
100.0
36.3
83.0
99.0
คะแนนสงสด
คะแนนต าสด
คะแนนเฉลย
คะแนน GC
Total 497 Companies
36
Thank you, Questions are welcome
37
Credit Insurance
• Start the fifth year agreement of Trade Credit Insurance with New Hampshire Insurance Company (AIG Thailand)
• Threshold or non qualify loss at THB 300,000.
• Cover 90% immediately of approved customer (maximum THB 100 Million)
38
Financial Ratio
2009 2008
Liquidty Ratio
Current Ratio Time 1.58 1.48
Collection Period Day 47.24 45.20
Inventory Turnover Period Day 41.86 29.44
Payment Period Day 20.29 16.61
Cash Cycle Day 68.81 58.03
Profitability & Efficiency Ratio
Gross Profit Margin % 7.09 7.08
Net Profit Margin % 3.64 2.24
ROE % 25.82 21.35
ROA % 12.04 8.91
Financial Policy Ratio
D/E Ratio Time 1.10 1.20
39
A/R as of December 2009 and it’s position after one month pass
31/12/2009 %
Receive
31/01/2010 Balance
Not yet due 271,837,979.64 68.2 106,961,670.81 164,876,308.83
Post due
Up to 1 month 101,877,116.18 25.6 96,054,559.50 5,822,556.68
1-3 months 8,777,691.51 2.2 8,717,664.51 60,027.00
3-6 months 4,450,986.75 1.1 621,490.00 3,829,496.75
6-12 months 810,433.63 0.2 0.00 810,433.63
Over 12 months 10,819,236.65 2.7 0.00 10,819,236.65
Total 398,573,444.36 100.0 212,355,384.82 186,218,059.54
Less : Allowance for doubtful (13,000,000.00)
Trade accounts receivable-net 385,573,444.36
40
Purchase Portion
55.1%
24.0%
20.9%
53.8%
27.1%
19.1%
55.9%
25.3%
18.8%
50.2%
23.0%
26.8%
54.6%
20.9%
24.5%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009
% USD Purchase PortionImport
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SCG
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