Bangkok: 27 July 2016 – SCG reports Q2/ 2016 and H1/2016 Operating Results, showing a steady increase in profit due to better performance of the chemicals business. The Company also sees a bright future for markets within ASEAN, with high growth potential for the building materials and packaging industries, as the region is a global production and export hub.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for Q2/2016, with registered Revenue from Sales of 68,046 Billion VND (US$ 3,086 Million), a decreased of 4% q-o-q. In consequence, Profit for the Period reached 10,017 Billion VND (US$ 454 Million), an increase of 15% y-o-y, attributed to better earnings in the packaging and chemicals business. SCG’s Profit for the period in the first half of 2016 registered 18,447 Billion VND (US$ 832 Million), an increase of 18% y-o-y, driven primarily by the chemicals business, while Revenue from Sales dropped 2% y-o-y to 136,795 Billion VND (US$ 6,170 Million), primarily reflecting the lower chemicals prices as a result of the drop in naphtha/oil prices, as well as, strong competition and softness in the domestic market in Cement–Building Materials business. Export revenue in the first half of 2016 accounted for 27% of SCG’s total Revenue from Sales, representing a decrease of 9% y-o-y to 37,149 Billion VND (US$ 1,675 Million).

For the first half of 2016, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 51,398 Billion VND (US$ 2,331 Million), close to that of the previous year, and accounting for 38% of the total Revenue from Sales. The Company invested more than 1,486 Billion VND (US$ 67 Million), towards research and development (R&D) during the period. The amount accounts for 1.1% of the total Revenue from Sales. For the second half of 2016, SCG will continue to invest in R&D to innovate products and services that cater to the lifestyles of consumers across ASEAN.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, said: “We see a bright future for markets across the region, with steady growth rates. Especially in Vietnam, demand for building materials and packaging has risen, on the back of the boom of construction industry, with several infrastructure, residential and industrial projects, as the country has become a key production base of the world. Cambodia also continues to see steady growth of industries, while Indonesia has also begun to see improvements in the economy, with construction of several government mega-projects. At the same time, trade around the borders of Thailand and neighboring countries is also doing well.”

“Investments in other countries are progressing according to plan. The cement plant in Myanmar is expected to begin commercial operation in Q3 of 2016, while the plant in Laos is moving faster than scheduled and should be operational in early 2017. SCG will continue to expand investments by focusing on existing business partners and growing our businesses together.”

SCG in ASEAN (ex-Thailand)

For SCG’s operation in ASEAN (ex-Thailand), the Revenue from Sales in Q2/2016 recorded 20% growth y-o-y, amounted to 8,226 Billion VND (US$ 373 Million), which is 12% of SCG’s total Revenue from Sales. The Revenue from Sales in H1/2016 recorded 20% growth y-o-y, amounted to 16,092 Billion VND (US$ 726 Million).

As of 30 June 2016, total assets of SCG amounted to 326,899 Billion VND (US$ 14,861 Million), while the total assets of SCG in ASEAN (ex-Thailand) amounted to 76,219 Billion VND (US$ 3,465 Million), which is 23% of SCG’s total consolidated assets.

SCG in Vietnam

Based on Q2/2016 report, SCG in Vietnam owned 19,177 Billion VND (US$ 872 Million) worth of total asset, an increase of 9% y-o-y. The company reported Q2/2016 Revenue from Sales at 3,876 Billion VND (US$ 176 Million), an 11% increase y-o-y from the packaging business. For H1/2016 Revenue from Sales at 7,212 Billion VND (US$ 325 Million) For the latest movement in Vietnam, SCG released the new corporate advertising campaign named “SCG Brings Happiness to Vietnamese Family” and showcased quality building-material products under the theme ‘A place of happiness” at Vietbuild. Moreover, SCG has celebrated the 10th Anniversary of SCG Sharing the Dream, marking its achievement to fulfill dreams of almost 4,000 Vietnamese students.

About SCG:

SCG, one of the leading conglomerates in the ASEAN region, comprises three core businesses: SCG Cement-Building Materials, SCG Chemicals, and SCG Packaging. With more than 200 companies under its umbrella and approximately 52,500 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.

SCG began its business operations in Vietnam since 1992 with trading business and gradually expanded investment in diversified businesses in the cement-building materials, chemicals, and packaging industries.

Today, with total of 20 companies across Vietnam driven by approximately 6,900 employees, SCG offers variety of premium products and services to markets. Available products in cement-building materials include, concrete roof, fiber cement board, fiber-cement wood substitute products for floor and ceiling, white cement, ready-mixed concrete under the brand ‘SCG’ and wall and floor ceramic tiles under the brand ‘COTTO & Prime’ and sanitary ware & fittings, bathroom fixtures under the brand ‘COTTO’. In the packaging business, available products are reading & writing paper under the brand ‘IDEA’ and corrugated containers, kraft paper and flexible packaging. In the chemicals business, available products are downstream chemicals products such as PE&PP, XLPE, PVC resin and compound, etc. Besides, SCG also has a building materials showroom in Hanoi to welcome customers to experience SCG products and services.

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Mr. Roongrote Rangsiyopash, President and CEO of SCG