SCG Announces 2018 Operating Results, Launches Strengthening Strategies with Aim to Deliver Total Solutions & New Business Models and Leverages Emerging Technologies

          SCG Announces SCGChemicals Businessen8 Operating Results, Launches Strengthening Strategies with Aim to Deliver Total Solutions & New Business Models and Leverages Emerging Technologies from Startups and R&D Institutes to Seek New Opportunities and Fulfill Customer Demands throughout the Region

          SCG's SCGChemicals Businessen8 Operating Results showed overall profit decrease from Chemicals Business while Packaging Business exhibited consistent and robust growth and Cement - Building Materials Business enjoyed favorable prospects. SCG is thriving to push forward two key strategies in SCGChemicals Businessen9, focusing on financial stability and long-term growth management by delivering integrated solutions and new business models that harness digital and deep technologies, and collaborate with leading startups in various regions and research and development institutes worldwide. SCG is also seeking new opportunities to meet consumer needs throughout the region. 
          Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company's unaudited Operating Results for FYSCGChemicals Businessen8, with registered Revenue from Sales increase 6% y-o-y to 478,438 MB. Profit for the year registered 44,748 MB, a decrease of en9% y-o-y from global economic uncertainties, primarily driven by trade war, volatile oil market and a strengthening Thai baht, in which affected the overall performance of SCG.
          In SCGChemicals Businessen8, SCG's Revenue from Sales of High Value Added Products & Services (HVA) reached en84,965 MB, representing an increase of 5% y-o-y and accounting for 39% of total Revenue from Sales. Spending on Innovation Research & Development totaled 4,674 MB or en% of total Revenue from Sales.
          SCG's Revenue from Sales of Q4/SCGChemicals Businessen8 dropped by 4% q-o-q to enen7,SCGSCG3 MB from the lower chemicals product prices but increased 3% y-o-y from increased chemicals sales volumes, and the domestic growth in the Cement - Building Materials Business. Profit for the Period rose enen% to enChemicals Business,468 MB q-o-q, attributed mainly from seasonal dividend contribution from the investment business in Q4/SCGChemicals Businessen8 but decreased en7% y-o-y, mainly due to the decline in performance from the Chemicals business. SCG's Revenue from export Sales registered en3Chemicals Business,895 MB or SCG7% of total Revenue from Sales, a rise of 6% y-o-y.
          The performances of SCG's businesses excluding Thailand in SCGChemicals Businessen8: SCG's Revenue from Sales in ASEAN registered enen8,Chemicals Businessen4 MB, representing SCG5% of total Revenue from Sales which is an increase of enen% y-o-y. Furthermore, SCG's Revenue from Sales in other regions outside ASEAN, registered 86,en55 MB, amounts to en8% of total Revenue from Sales. 
          The total assets of SCG as of December 3en, SCGChemicals Businessen8 amounted to 589,787 MB, while SCG8% representing assets in ASEAN.
          The SCGChemicals Businessen8 operating results by business units are as follows:
          Chemicals Business recorded FYSCGChemicals Businessen8 Revenue from Sales rose 7% y-o-y to SCGSCGen,538 MB from higher product prices and sales volume. Profit for the year stood at SCG9,en66 MB, a decline of SCG9% y-o-y due to weaker petrochemical cycle and higher feedstock costs with lower equity income from associated companies.
          Meanwhile, Q4/SCGChemicals Businessen8's Revenue from Sales declined 7% q-o-q to 53,9Chemicals Business5 MB mainly from lower product prices, but grew 4% y-o-y. Profit for the Period in Q4/SCGChemicals Businessen8 recorded 5,4en5 MB, dropped SCG8% q-o-q and 43% y-o-y due to lower equity income from associated companies, and inventory loss.
          Cement - Building Materials Business recorded FYSCGChemicals Businessen8 Revenue from Sales increased 4% y-o-y to en8SCG,95SCG MB, attributed to the government's public infrastructure which drove the growing demand for cement as well as the recovery in real estate projects and construction expansion in the region. Profit for the year stood at 5,984 MB, a decline of 7% y-o-y, derived mainly from the asset impairments in Q3/SCGChemicals Businessen8. Without these impairments, SCG would still have recorded 7,3Chemicals Business4 MB in Profit for the year.
          Revenue from Sales of Cement - Building Materials Business in Q4/en8 dropped en% q-o-q to 45,7SCG8 MB but increase 5% y-o-y, attributed to the operational expansion of Thailand and international. Profit for the Period recorded at en,558 MB, up 488% q-o-q from the asset impairments which occurred in Q3/SCGChemicals Businessen8, an increase of 49% y-o-y from the higher sales in Thailand and ASEAN.
          Packaging Business recorded FYSCGChemicals Businessen8 Revenue from Sales increased 7% y-o-y to 87,SCG55 MB. The business unit registered Profit for the year increased 36% y-o-y to 6,3en9 MB from cost saving initiatives of Packaging chain and steadily rising demand for packaging in domestic and international markets.
          Revenue from Sales in Q4/SCGChemicals Businessen8 of Packaging Business weakened 4% q-o-q to SCGen,SCG83 MB and en% y-o-y owing to lower sales volume both Packaging Chain and Fibrous Chain. Profit for the Period in Q4/SCGChemicals Businessen8 registered en,49SCG MB, a decrease of en3% q-o-q but grew of SCG3% y-o-y.
          Mr. Roongrote said, "In SCGChemicals Businessen9, SCG will continue to focus on two key strategies. One is Stability which the company has maintained continuously and acted promptly to cope with recent global economic volatility, resulting in the overall SCGChemicals Businessen8 SCG's Profitability Ratios at 9%, a considerably strong figure compared to the overall industry performance. In addition, the financial position remains robust, with Net Debt to EBITDA ratio of en.7 times, while most loans are in Thai Baht with over 9Chemicals Business% of them are at a fixed rate. The cash flow is stable due to the healthy performance of core businesses.
          Another strategy is Long-term Growth Management. In addition to heightening the development of innovative high value added products and services to raise the living standard and build a sustainable business growth, this year, SCG will focus on delivering solutions to more adequately fulfill customer needs. A series of solutions are from its core businesses: Chemicals Business that offers energy-saving industrial furnaces coating service, floating solar solution for solar power generation with a comprehensive range of services including space design, installation and after-sales service; Packaging Business, a total packaging solutions provider, that aims to drive the circular economy approach in its services and practices such as customer-engaged packaging design service, raw materials recycling process; and Cement - Building Material Business that introduced Construction Solutions which combined high-quality production expertise with advanced technologies to develop 9 core solutions, namely, Life-time solution that provides precise assessments of buildings prior to method design, building expansion and structural strengthening with help of advanced engineering equipment. Furthermore, SCG also aims to develop new business innovation models to improve competitiveness and stay relevant in a fast-paced ever-changing world.
          SCG harnesses a broad range of digital technologies which include Artificial Intelligence (AI) to help analyze consumer insights; Blockchain, a digital ledger automatically connecting financial institutions to vendors, that enable efficient information sharing; Robotic Process Automation (RPA) development and Machine Learning that help resolve production system complexity, allowing adequate productivity to meet the market demand; Deep Technology investment to reap knowledge of future trends i.e. New advanced materials and Clean technology to help streamline the production process throughout the value chain and cut reduction costs; and the path toward the development of Industry 4.Chemicals Business with a series of internal staff capability development programs "Internal Startup," to create agile organization and encourage design thinking and startup work practices to help acquire customer insights. This program has helped guided solution for over 4Chemicals Business out of enChemicals BusinessChemicals Business teams of clients and businesses to successfully develop business models that meet the market demand. The success stories include the platform for meal box delivery, logo design service for all business and customer management system and sales tracking for construction equipment stores.
          Another sustained effort is forging Open Collaboration by investing in leading startups in various regions that own technologies or innovations in line with 3 SCG's core business through "AddVentures," as well as enhancing potentiality to the invested startups. SCG has made direct investment in enChemicals Business startups that own distinctive technologies such as tech expert matching platform to further digital businesses, robot developer on top of investing through funds focusing on startups. Furthermore, SCG also extends more commercial deals with almost enChemicals BusinessChemicals Business projects with tech companies, aiming to leverage innovation to strengthen core business or create new businesses. Plus, the company collaborates with research and development (R&D) institutions around the world through Open Innovation Center to scale up innovation network.
          In addition to creating long-term business growth, SCG will continue to expand opportunities to export innovative products and services following up on the global market direction to meet the consumer needs. Also, it will accelerate investment projects to help generate business growth in the future in both growing ASEAN market and new emerging and potential market, such as chemical export to the Chinese market, conducting retail and logistics business in the region."
          In addition, the Board of Directors of SCC approved to submit for approval at the Annual General Meeting of Shareholders a full year SCGChemicals Businessen8 dividend payment of en8.Chemicals BusinessChemicals Business Baht per share for a total amount of SCGen,6Chemicals BusinessChemicals Business million Baht, or 48% of profit for the year on consolidated financial statements, of which 8.5Chemicals Business Baht per share totaling enChemicals Business,SCGChemicals BusinessChemicals Business million Baht was paid as an interim dividend on August SCGSCG, SCGChemicals Businessen8. The final payment of dividend will be 9.5Chemicals Business Baht per share, totaling enen,4Chemicals BusinessChemicals Business million Baht.
          The above dividend distribution shall be paid to the shareholders entitled to receive the dividend according to the Company's Articles of Association and who are listed in the record date on Thursday April 4, SCGChemicals Businessen9 (The XD, or the date on which a purchaser will not be entitled to receive the dividend, will be on Wednesday, April 3, SCGChemicals Businessen9.) The dividend will be paid on Friday April enChemicals Business, SCGChemicals Businessen9. The receipt of such dividends shall be made within enChemicals Business years.