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

Other Local

SCG