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Opportunity Day: The Third Quarter of Y2020 Performance

November 12, 2020

Content

Business Update Company Overview ADB Performance

Q3/2020

COMPANY OVERVIEW

1

4

Company Overview

5

Adhesive & Sealant

• ADB Adhesive are specially manufactured to meet international standards for industrial use and household use.

• We sell under our house brand and OEM for customers well-known brand names.

ADB

• ADB Sealant is currently repackaged from bulk package and resell in smaller package.

•Future project supports the expansion of adhesive & sealant product line corresponding to increasing demand and profitability.

•ADB is one of the leading manufacturer of plastic compound especially for wire&cable industry. • Wire & Cable PVC compound

• General Grade PVC

• Medical PVC Compound

Plastic Compound

Our product line includes plastic compounds, professional adhesives, silicone sealants, and DIY products for household end-users.

Q3/2020 COMPANY PERFORMANCE

2

Financial performance for Q3/2020

Revenue structure

The revenue in Q3/20 increased from the solid growth of Plastic Compound Segment; while the Adhesive and Sealant Revenue have been negative impact from COVID 19

693 716 739

188 225 531 597

293 272 237

59 49

181 139

386 434 387

111 105

278 255

0

200

400

600

800

1000

1200

1400

1600

2017 2018 2019 Q3/2019 Q3/2020 9M/2019 9M/2020

Plastic Compound Adhesive Sealant & DIY

(Unit: million Baht)

51%

21%

28%

1,412 1,372

379

991

3rd Quarter 1,363

50%

19%

31%

54%

17%

29%

9 Months

358

990

54%

18%

53%

16%

31%

59%

13%

28%

+6%

Domestic

Sales

International

Sales

23%

77%

The significant growth in sales of Plastic Compound in Q3/2020 for THB +37 million or +19%QoQ leading by outperform in Medical Grade PVC in GPVC Segment

188 225

49

59

Plastic Compound

Adhesive

Adhesive was hit by the impact of local business shutdown during COVID 19 pandemic in local markets and some delay of oversea shipment to Nigeria customers

Q3/2020 Business Segment Performance

Sealant

For Sealant Business, most of the revenue dropped mainly from the oversea business shutdown globally; especially DIY products sold to AEC and Kenya customers

111

105

28%

60%

14%

26%

Financial performance for Q3/2020

Gross profit & gross profit margin

The rising gross margin is driven by: • Lower main raw materials used in production for all Business Units; • Tighten up cost control mechanism through the budget control systems

Q3/2020 Business Gross Profit Margin

286

191 194 184

55

79

116

190

20%

14% 14% 14% 15%

21%

12%

19%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

2016 2017 2018 2019 Q3/2019 Q3/2020 9M/2019 9M/2020

Gross Profit Gross Profit Margin

79

44

70

92

37

54

17 10

15

40

11

28 29 27

33

102

30

58

0

20

40

60

80

100

120

PVC Compound Adhesive Sealant

18%

9%

18%

14%

27%

12%

23%

2018 2019 Q3/19-20 9M19-20 2018 2019 Q3/19-20 9M19-20

Plastic Compound

Solid demand of General Grade PVC and Wire & Cable PVC and the growth of infrastructure projects and Market expansion

ADHESIVE The lower cost of the main raw materials for adhesive, as well as lower

production unit in response to the lower demand during COVID 19 in 2020 Sealant The significantly lower of raw materials for sealant products led the higher in

GP of all Silicone cartridge segment, DIY products, and supporting goods

11%

12%

10%

16% 15%

17% 22%

15% 21%

16%

17%

2018 2019 Q3/19-20 9M19-20

Financial performance for Q3/2020

Net Profit & Net Profit Margin

The net profit margin for 9M/2020 is +50 MB. The Rising profit was contributed from the NPM of Compound Business and less price competition due to the relocation of all wire & cable production unit of one of the major competitors while Sealant BU can hold off the loss from new factory investment with the contributions of Silicone cartridge and DIY products

111

29

13

3

13

27

-13

50

2.1%

0.9%

0.2%

3.7%

7.0%

-1.3%

5.1%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

-20

-10

0

10

20

30

40

50

60

2017 2018 2019 Q3/2019 Q3/2020 9M/2019 9M/2020

Net Profit Net Profit Margin

2.5%

Financial performance for Q3/2020

111

948 1,072

1,208 1,253

1,254

Asset

675

775

623 619

Shareholders’ Equity

Debt to Equity

MB MB

MB

365 375 316 328 335 378

213 267 319 305 261 290

292 355 448 535 542 522 78 76

125 85 116 54

0

200

400

600

800

1000

1200

1400

2015 2016 2017 2018 2019 Q3/2020 A/R Inventory PPE Others

1,309

210 239 212 202 213 184

330 416

277 359 266 228

135 120

134 106 193

207

0

200

400

600

800

1000

2015 2016 2017 2018 2019 Q3/2020 A/P ST Loan Others

Liability

667 672

210 210 300 300 300 300

61 85 83 84 79 124

0

100

200

300

400

500

600

700

2015 2016 2017 2018 2019 Q3/2020 Paid-up capital R/E Share premium

586

202 202 202 202

273 279

585 581 626

2.47 2.60

1.06 1.14 1.16 0.99 -

0.50

1.00

1.50

2.00

2.50

3.00

2015 2016 2017 2018 2019 Q3/2020

Financial performance for Q3/2020

Key Takeaway

111

Outstanding performance in 2020 leading from

PVC Segment in Wire & Cable and Sealant

Products during peak seasonal sales and

Medical PVC with perform solid growth during

COVID-19

Resilient profit among COVID-19 pandemic

as local markets leads the rising

performances while strictly cost control

has been implemented during uncertainty

economic environment

Continue higher gross margin throughout 3

BU as ADB gains benefits from lower

chemical materials carry forward from Q2

stocks

Strong Financial Stability with Net Debt to

Equity at 0.99X and DSCR at 11.24X leading

to the future business expansion for future

growth sustainability

1

2

3

4

Business Update

3

New Business Trends

Eco-Friendly Mega Trend

Our R&D team is working for develop new eco-friendly product to fulfill customer’s needs and for environmental sustainability plan.

Medical Product for Life

We are going to upgrade some production’s facility to support the

increasing need of plastic compound for medical product.

Plastic Compound Business

Adhesive Business

We have planned to increase product variety to provide adhesive solution for new customer segments.

Adhesive Solution

New Strategic Partner We are looking for new business opportunity and trying to cooperate with potential oversea manufacturer focusing on adhesives and raw material technology to develop new product and drive the green innovation.

New formulation for building solution to fulfill real estate customer’s requirement

Sealant Business

Q&A

Thank You

17

www.adb.co.th

Contact

Investor Relation Section: 02-709-4040 Ext.1406

adb_ir@adb.co.th

Website Head Office

252 M.4 Sukhumvit Rd., Prakasa,Muang

Samutprakarn, 10240