SCG Ceramics Public : Management Discussion and Analysis Quarter 2 Ending 30 Jun 2022 (Reviewed)

	August 9, 2022
No.:	COTTO 017/2022
To:	Director and Manager, the Stock Exchange of Thailand
Subject:	Management's Discussion and Analysis (MD&A) for the period of Q2/22 and 6M/22, ended June 30, 2022
	(Reviewed)

SCG Ceramics Public Company ("The Company") hereby submits the reviewed interim consolidated financial statements and management discussion and analysis ( MD&A) for the period of Q2/ 22 and 6M/ 22, ended June 30, 2022. Details of the operating results are as follows:

For the period Q2/22, consolidated revenue from sales amounted to 3,376 MB, increased 19% y-o-y. Total sales volume increased 14% y-o-y from both domestic and export while average selling price increased 5% y-o-y. Profit for the period amounted to 167 MB, decreased 6% y-o-y and EBITDA amounted to 371 MB, decreased 3% y-o-y due to continuously increasing in energy cost and raw material cost. However, improving cost management and production efficiency were continuously conducted in order to mitigate the impact of high production costs.

For the period 6M/22, revenue from sales registered at 6,606 MB, increased 17% y-o-y due to an increase in total sales volume from both domestic and export to stand at 39.7 million sq.m, increased 14% y-o-y, thanks to an increase demand while average selling price increased 3% y-o-y. Profit for the period amounted to 378 MB, increased 4% y-o-y and EBITDA amounted to 790 MB, increased 1% y-o-y.

Table1: Consolidated financial Summary

Unit: Million Baht		Q2	%change	%change	Jan.- Jun.	%change
			2022	Y-o-Y	Q-o-Q	2021	Y-o-Y
Revenue from Sales	3,376	19%	4%	6,606	17%
Profit for the Period	167	-6%	-21%	378	4%
EBITDA		371	-3%	-12%	790	1%
Earning per Share (Baht)	0.03	-6%	-21%	0.06	4%
Note:	EBITDA	= Earnings before interest, tax, depre.&amortization
	Profit for the Period	= Profit for the Period attributable to owners of the parent

1

For the period of Q2/22, finance costs amounted to 1 MB, which was stable y-o-y, from the interest expense on the lease contract under Thai Financial Reporting Standards no. 16 "Leases" (TFRS 16) . The company had no short-term and long-term loan from financial institute.

Table2: Debt Profile

Unit: Million Baht			Q2	Q1	Q4	Q2
			2022	2022	2021	2021
Short-Term Loan			-	-	-	-
Baht			-	-	-	-
Foreign			-	-	-	-
%of Total Loan			n/a	n/a	n/a	n/a
Total Loan			-	-	-	-
Cash and cash equivalents		1,346	1,692	1,324	1,056
Total Net Debt (Net Cash)		(1,346)	(1,692)	(1,324)	(1,056)
Financial Ratios			Q2	Q1	Q4	Q2
			2022	2022	2021	2021
EBITDA on Assets (%)		13%	14%	12%	13%
Current Ratio (times)		3.0	2.9	3.7	3.1
Quick Ratio (times)		1.4	1.5	1.7	1.3
Interest Coverage (times)		397.1	471.2	242.3	469.6
Net Debt to EBITDA (times)		n/a	n/a	n/a	n/a
Net Debt to Equity (times)		n/a	n/a	n/a	n/a
Debt to Equity (times)		0.3	0.3	0.2	0.3
Return on Equity (%)		8%	9%	6%	8%
Note:	Net Debt	=	Total debt (interest bearing exclude lease liabilities ), less cash and cash equivalents
	EBITDA	=	Earnings before interest, tax, depre.&amortization
	EBITDA on Assets	=	Annualized EBITDA, to Total Consolidated Assets
	Current Ratio	=	Curerent Assets, to current liabilities
	Quick Ratio	=	Cash+short term investments+receivable, to current liabilities
	Interest Coverage	=	EBITDA, to interest expense
	Net Debt to EBITDA	=	Net debt, to annualized EBITDA
	Net Debt to Equity	=	Net debt, to equity & non-controlling interest
	Debt to Equity	=	Total Liabilities, to equity & non-controlling interest
	Return on Equity	=	Annualized Net profit, to average total shareholder's equity
			(not including non-controlling interest)

2

As of June 30, 2022, Total assets amounted to 12,259 MB, where current assets amounted to 6,729 MB, property, plant and equipment amounted to 4,704 MB and others non-current assets amounted to 826 MB.

Total liabilities amounted to 2,910 MB, where trade and other current payables liabilities amounted to 2,021 MB, others current liabilities amounted to 201 MB and others non-current liabilities amounted to 688 MB.

Total equity attributable to owners of the parent amounted to 9,349 MB, which 100% of total shareholder's equity.

Table3: Statement of Financial Position

Unit: Million Baht	June	December	June
	2022	2021	2021
Total Assets	12,259	11,521	11,568
Current Assets	6,729	5,872	5,770
Cash, cash equivalent	1,346	1,324	1,056
Short term investment	200	-	-
Trade and other current receivables	1,721	1,348	1,404
Inventories	3,032	2,770	2,823
Land development for sale	430	430	487
Property, plant and equipment	4,704	4,825	4,928
Others non-current Assets	826	824	870
Total Liabilities	2,910	2,271	2,565
Current Liabilities	2,222	1,597	1,880
Trade and other current payables	2,021	1,487	1,698
Loans	-	-	-
Others	201	110	182
Others non-current Liabilities	688	674	685
Total Shareholders' equity	9,349	9,250	9,003

Sincerely yours,

(Numpol Malichai)

Managing Director

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