S.Kijchai Enterprise Public Company Limited (“SKN”)Page 16. Strictly Private & Confidential....

S.Kijchai Enterprise Public Company Limited (“SKN”)

Opportunity Day Q1 2018 15 June 2018

Strictly Private & Confidential

The information (“Confidential Information”) contained in this presentation is strictly confidential and is provided by S.Kijchai Enterprise Public Company Limited (the “Company”) to yousolely for your reference. Neither this presentation nor any part thereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicatedor otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, withoutthe prior written consent of the Company. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from theconference room where such documents are provided without express consent from the Company. Although care has been taken to ensure that the Confidential Information in thispresentation is accurate, and that the opinions expressed are fair and reasonable, the Confidential Information is subject to change without notice, its accuracy is not guaranteed, hasnot been independently verified and it may not contain all material information concerning the Company. None of the Company, or any of their respective members, directors, officers,employees or affiliates nor any other person accepts any liability (in negligence, or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or itscontents or otherwise arising in connection therewith.

This presentation is for information purposes only and does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to orrecommendation to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract, commitment or investmentdecision in relation thereto in Thailand or any other jurisdiction. Any such purchase should be made solely on the basis of the information contained in the announcements to the StockExchange of Thailand relating to such securities. No reliance may be placed for any purposes whatsoever on the information set forth in this presentation or on its completeness.

This presentation contains projections and forward‐looking statements that reflect the Company's current views with respect to future events and financial performance. These viewsare based on a number of estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and thesemay change over time and in many cases are outside the control of the Company. You are cautioned not to place undue reliance on these forward looking statements. No assurance canbe given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. Such forward‐looking statements are not guarantees of futureperformance and accordingly, the actual results, financial condition, performance or achievements of the Company may differ materially from those forecasted and projected or in theforward‐looking statements.

Disclaimer

AGENDA

Section 1 About SKN

Section 2 Business Overview

Section 3 Financial Highlights

Section 4 Investment Projects

SECTION 1 : About SKN


KEY MILESTONES

S.Kijchai MDF was awardedthe ISO 9001 and MUTU certification international

S.Kijchai Parawood Co., Ltd. expanded its business into furniture manufacturing business and was renamed to S.Kijchai Co., Ltd.

S.Kijchai Family started to operate its sawmill plant under S.Kijchai ParawoodCo., Ltd. in Rayong Province

S.Kijchai MDF started its commercial

operation and exported its first MDF Board

S.Kijchai MDF was awarded BOI

certificate

S.Kijchai Family and SahakijFamily jointly established S.Kijchai MDF Co., Ltd. (“S.Kijchai MDF”) as a MDF Board manufacturer

MDF

S.Kijchai Family started to operate its particle plant under

S.Kijchai Wood Panel Co., Ltd.

Particle

S.Kijchai Family and Sahakij Family started to operate plywood plant under

S.Plywood Co., Ltd.

Plywood

S.Kijchai MDF was awarded the ISO 14001 and was renamed to S.Kijchai Enterprise Plc. (SKN) and increased its registered capital from THB 600 mn to THB 800 mn for the IPO

Sahakij Family started to operate its sawmill plant under SahakijKlaeng Co., Ltd.

SahakijFamily

70%30%S.Kijchai Family

S.Kijchai Family established S.Kijchai Capital Co., Ltd. (“SKC”) as a holding companyand restructure shareholding structure in SKN

67% 30%3%

SahakijFamily

S.KijchaiFamily

SKC


PRODUCT AND MARKET OVERVIEW

Products Overview

Key Current Market1/

“With the capability to produce high quality MDF Board’s to meet customer’s expectation and requirement of most international environmental standard for wood-based panel, SKN’s potential markets

cover most countries in the world”

North America

Africa

South East Asia

East Asia

South Asia

Middle East

Note: 1/ Based on sales in 2016

Thin: 2.5 ‐ 4.0 mm Medium: 4.1 ‐ 9.0 mm

Thickness Width ≤

8 Feet

European Standard:• E1: formaldehyde ≤ 8/100 grams of glue • E2: formaldehyde ≤ 30/100 grams of glue

US’s Standard: • CARB P2: formaldehyde emission ≤ 0.11 ppm

Class of Formaldehyde:

Density

≈700-800 kg/m3Key Features Uniform density properties ‐ resemble to

nature wood Smooth surface for laminating Easy to work into shapes and finishing

SKN offers custom-made MDF Boards made by rubber woods. SKN’s customers can specify their desired size, thickness and class of formaldehyde.

Thick: 9.1 ‐ 25.0 mm

Furniture Factory

Constructors Laminate Factory

Major Customers

Wholesalers / Distributors


KEY CHARACTERISTICS AND APPLICATION

BUILT‐IN CASING INTERIOR / WALL

FURNITUREFLOOR DOOR

Easy to work into shapes and finishing

High screw holding strength & Bendable

Uniform density properties -resemble to nature wood

Strong load bearing

No grain or knots

MDF board is widely used for numerous interior functions and decoration purpose, such as furniture, door, casing and floor

Smooth surface for laminating


Customers Production planning

Orders placement & Confirmation

Raw materials procurement

Suppliers

Raw materials preparation Woods intake

(First-in, First-out)Woods de-barking Woods chipping

Chip binStorage for the next 24 hours production

ProductionAutomated continuous process

Pre-heating Refiner Dryer

Orders placement & procurement

Forming

Sawing

Master Board

CoolingSanding & Cut-to-Side

Continuous pressing

PackingDelivery

QC

Fiber binUrea Formaldehyde

BUSINESS FLOWS

QC(Appearance) (Qualification)


FACILITIES

SKN, MDF Board manufacturer and exporter with the state-of-art facilities as well as strategic location adjacent to major ports

Area 144 Rai 3 Ngarn 13 Sq.Wa

Products Custom‐made MDF Board • Width: maximum of 8 feet• Length: maximum of 18 feet• Thickness: 2.5 ‐ 25.0 mm

Production Capacity 240,000 m3/year

Major Machinery Brand: Dieffenbacher

Operation Hour 24/7

BOI Privilege Awarded BOI in 2011

SKN Facilities located at Klaeng, Rayong

Map Ta Phut Port

Laem Chabang Port

SECTION 2 : BUSINESS OVERVIEW


Global upward trends for MDF board

CAGR2 of MDF board production volume (2000 – 2016) had outnumbered other wood‐based panels production volume with CAGR of 4% for the same period

11%

1. Source: Food and Agriculture Organization of the United States2. CAGR = Compounded annual growth rate

Thailand is among the fastest growing MDF exporters

Thailand ranks no. 4 for global MDF exports in 2016#4CAGR1 sales growth of Thai exporters in terms of value (2000 – 2016) had outperformed almost all players in the world top 10

10%

GLOBAL MARKET

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Million M3 Total global wood-based panel production volume1


51%

15%

49%

85%

Q 1 2 0 1 7 Q 1 2 0 1 8

INCOTERMFOB CNF

OVERVIEW

Q1 2017, 54%

Q1 2017, 46%

Q1 2018, 46%

Q1 2018, 54%

Sale ChannelAgents SKN

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2017 Q1 2018

Utlization rate


55%35%

7%

3%

Q1 201742%

32%

23%

3%

Q1 2018

Middle East

Asia

Others

Domestic

OVERVIEW

Country Distribution


SECTION 2 : FINANCIAL HIGHLIGHTS


HISTORICAL PERFORMANCE

(THB mn)

Performance of 1st quarter 2018 -2017

330

377

97 124

32 51

0

50

100

150

200

250

300

350

400

Q1/2017 Q1/2018

Revenue Gross Profit Margin Net Profit Margin

Q1/2017 Q1/2018

Gross Profit Margin 29.24% 32.89%

Net Profit Margin 9.69% 13.53%

Key Financial Ratios

Q1/2017 Q1/2018

Efficiency Ratios

Return on Assets (%)6.67 7.41

Return on Equity (%) 18.42 8.91

Q1/2017 Q1/2018

Financial Policy Ratios

Debt to Equity (times) 1.83 0.26

Interest Coverage Ratio (times) 5.68 13.78


BALANCE SHEET COMPOSITION

Assets Breakdown Liabilities and Equity Breakdown

2,9402,940

2,5992,599

(THB mn)(THB mn)

50 60

194 141

2,242 1,596

59 46

48 30

347 726

Mar'2018 Dec'2017

Cash and CashEquivalent

Account Receivable

Inventory

PPE

Advance payment forpurchase machinery

Other Assets304 252

1226 1226

800 800

78 71

77 10

30 39

425 201

Mar'2018 Dec'2017

Account Payable

Cash Advance Receivedfrom Customers

Long‐term Loan

Other Liabilities

Paid‐up Capital

Premium on sharecapital

Retained Earnings


2017 2018 Q1-2017 Q1-2018

million million million % million million million %

Exporting Revenue

USD 41.35 45.46 4.11 9.94 9.10 11.45 2.35 25.82

Baht 1,451.58 1,529.93 78.35 5.40 318.85 358.72 39.87 12.50

ChangeChange

35.535.11

34.6835.2234.94

34.1433.22

32.78

31.37

29

30

31

32

33

34

35

36

Q1 Q2 Q3 Q4

Exchange rate USDTHB

Year 2016 Year 2017 Year 2018

Action1. Closely monitor to any

situations that might affects the exchange rate

2. Use hedging tools such as Forward Contact

Appreciation of Baht


SECTION 4 : Investment Projects


2nd Production Line

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Installation

Infrastructure

Progress

Finish Ongoing


Glue Project

Main PurposesKey investment

‐ SKN internal consumption

‐ R&D Center

‐ Sell to Other wood processing

‐ 100 MB.Registered Capital

‐ 300 MB.investment cost

‐ 3 Years BOI privilege

Q&A


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