The Siam Cement Public Company Limited (SCC) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. Welcome to SCG Analyst Conference for the Fourth Quarter and Full Year Results of 2024. I am [ Sukinet ] and I will be your moderator for today's session. We highly appreciate to welcome all the guests who joined our session online this morning. For those who already joined the session, please kindly change your online registered name to your name underscore your company. So we are able to recognize. Our management are here to provide you the fourth quarter and full year of 2024 as well as the important business updates. After the presentation, we will open the floor up for the question. Today's presenters comprised of SCG management led by Khun Thammasak Sethaudom, the CEO of SCG, who will walk you through consolidated results and provide highlights of SCG Cleanergy; and SCG management led by Khun Sakchai Patiparnpreechavud, the CEO of SCG Chemicals. Next are our management from business related to Cement and Construction business. Beginning with Khun Surachai Nimlaor, President of SCG Cement and Green Solutions business and Khun Wiroat Rattanachaisit, President of SCG Smart Living and SCG Distribution and Retail business, and we're also presenting SCG Decor, followed by Khun Chantanida Sarigaphuti, CFO of SCG, who will be presenting the financial parts and also SCGP. Then the sustainability part will be highlighted by Khun Chana Poomee, Chief Sustainability Officer. Without further ado, now let's start today's session, beginning with Khun Thammasak.

Good morning. [Foreign Language] I would like to start with happy Chinese New Year. And today, I come to report basically deliver the homework. The homework that we promised in the third quarter last year. If you remember that we declared the strategies to adjust our cost, especially on the Long Son. And also, we are preparing for a resilience for our group to handling the turbulence in the business environment. So we promised a few things that number one, that we promised is we need to restructuring our business. And today, I would like to report that we have done the internal improvement, expense reduction, lean operation. And this, on one hand, result in a onetime charge of approximately THB 1.6 billion that reflect in the last year. And by doing that, we can create an ongoing savings every year on the THB 590 billion, this is after tax. And also, we have declared that we will close down or discontinue nonperforming nonstrategic business. We did that and that will create a saving around THB 760 million that will be ongoing also. So in total, we are talking about THB 1.35 billion saving that we will continue to have ongoing. That's number one we have done. Number two, we are declared that we will cut the working capital in the third quarter. We said that we aim for THB 10 billion cut off the working capital. And thanks to our business unit that try -- work very hard and try to streamline and synchronize the whole end-to-end supply chain. We can reduce the working cap on the Q3 to Q4, we can reduce at THB 16 billion. But if you look at the year-on-year, it's THB 6.2 billion saving on a year-on-year basis. But if you look at from the starting of our campaigns, we can cut more than our target. And dividend from SCG Investment Holding, we have a very strong dividend in the fourth quarter, THB 7.6 billion. In total, last year, we have THB 14 billion in dividend from our investment. So this is as strong as a business unit by itself. And you can see that this continued for more than 15 years. CapEx management. We spent THB 55 billion in 2024, and that includes Fajar acquisition, the remaining of the Fajar acquisition is THB 23 billion. So we trimmed down the spending on the CapEx. And this year, we estimate that we will trim down to THB 30 billion to THB 35 billion, and this includes the LSPE ethane project. So that's something we already delivered. You could see that our EBITDA on 2024 is basically the same level as 2023. So we can have the EBITDA THB 54 billion equivalent -- almost equivalent to 2023. Although we face many business challenge, -- but and also, as you know, the second half of last year, the business -- chemical business at the rock bottom in terms of the industry margin. And also, we took the onetime chart. If you add up, you can see that our actual ongoing EBITDA is better than THB 54 billion. The EBITDA itself is quite healthy and stable. And at the same time, we put on top of the reduction of working capital, which on a year-on-year basis released THB 6.2 billion in the last year. You can see that THB 45 billion from the EBITDA from operation plus dividend plus the THB 6.2 billion on top. That is the cash release from our operation. This allow us to deleverage the debt. That's very important. We are working to deleverage as we promise. The debt reduction to THB 295 billion by the end of last year. That's from THB 312 billion in the third quarter last year when we announced the campaign. So our net debt to equity stands at 0.7x. So this, you could see that our cash flow is very, very strong. And that's why recommend from the Board of Directors to pay the dividend in total of THB 5 per share. And this will recommend to the general shareholder meeting. This represents our intention to take care of our long-term shareholder, our shareholder that we have to take care. If you look at the current price, you could see the yield is around 3.3%. That's something we think we can do because the -- on one hand, we have very strong EBITDA and cash generation. We can reduce the debt and why -- that's why we have to take care of the shareholder. So that's something we can deliver. And in terms of the financing of the ethane project, last week, we announced on the progress of the ethane. So that one, THB 500 million that Khun Sakchai explained from the original cost, THB 700 million, we can squeeze and make it efficient to THB 500 million. So it's a good saving already. And we can -- we plan to use it from our internal source, and that includes the plan of the divestment. This time, I cannot tell much on the divestment, but rest assured that we are working on it, and we are moving on this direction as we promise. So that is the highlight I would like to emphasize. If you look at the detail of sales revenues on a year-on-year basis, sales revenue increased 2%, mainly because of the chemical sales volume increase on the year-on-year. We run a few months of the LSPE project. And EBITDA, again, if you look at the year-on-year, our EBITDA level is more or less the same. So very, very strong in terms of the cash generation. So that is the stability we can assure you. In terms of the profit, you could see that we take the restructuring and we also have the LSP cost that mostly depreciation. So that -- if you exclude the LSP, we should represent profit of THB 2.7 billion in the fourth quarter last year. And if you adjust the onetime charge that we took for the business restructuring, it's even plus for another -- more than almost another THB 1 billion plus. So you could see we took the action to make sure that we are leaner, healthier and more resilient to absorb the volatility that may happen in this year. So that's what I can say on the profit side. And if you look at why our cash flow is still very strong, you could see that cement and building materials and decor of these three business units performance year-on-year improved. This is a net profit improved. Of course, the chemical, the net profits reduced significantly, but mostly from the Long Son and mostly is on the depreciation. So depreciation is something that's noncash, and we basically accumulate the cash back for the future investment. And SCG Packaging dropped mainly on the Indonesian operation, which according to [ Wichan ] a few days ago announced that it started to improve already. So that's the first part I would like to share with you. And may I pass to Khun Sakchai Patiparnpreechavud.

[Foreign Language] So good morning. First of all, I also have to say [Foreign Language], I hope this next year, our situation will be better. Let's start with the macro pictures of the last quarters. The global uncertainties and geopolitical remains resulting in high feedstock and volatilities causing soft demand throughout last quarters. Look at the supply side, the influx of the new capacity from China. Also, it's the quarter that all the players, especially from U.S. releasing the inventory at the year-end. That's causing soft petchem price almost all the products. Olefin chains look at the whole year is quite soft. And the last quarters, the oil price soft a little bit. Anyway, at the year-end, the prices firm because of this global cold weathers. Naphtha prices also follow the Brent oil drop about $20 per tonnes. Look at the spread PE and naphtha is very soft, USD 316 that is very, very low, even softer than the third quarter. And PP it seems better because of the several capacity in China, as they could not run because of the propane price is quite strong. That's why even though also the funding of PPE, [ PDSG ] in China, but the utilization of the last quarter is less. That's why the spread improved a little bit. Look at the volumes, the last quarter, it seems we expand our sales volume released 550,000 tonnes. That's because of the products that from LSP. The third quarter as we test one and we have the products to sell in the fourth quarter. That's why overall sales volume increased. That's also make the whole year's last year increased 16% last year, including LSP, sales volumes lead to almost 1.9 million tonnes. Vinyl chain is also challenging as I used to share because of the construction in China is very weak and the situation still remain. Last quarter, on top of that is also EDC price is quite strong that make the spread drop to 300 level. The volumes also dropped out caused by the incidents happened in the last quarter that make our VCM 1 chuck down. Overall, last quarter, we sell 140,000 make overall year also less than the last year. Overall sales volume of PVC is about 650,000 tonnes. Look at the financials, the revenues, of course, increased following by the increase in the volume. EBITDA still dropped from the last year, but still at THB 7.3 billion. If we just deduct onetime gain from [ IRS ], that's about THB 5.2 billion. In terms of profit, last quarter is the first -- was the first quarter that we have to realize all the depreciation of LSP because LSP COD on the October 1st last year. That made overall record loss at THB 3.4 billion last quarter. The whole year is also a record loss at THB 7.99 billion, but that's mainly caused by LSP. LSP alone without [ IRS ] is about THB 10 billion loss. Anyway, you look at the existing operation, especially in Thailand, even though last year is a really, really tough year, but we still have a little bit profit almost THB 100 million. Outlook. I just put the colors of this first half of this year. Look at the situation, the capacity addition is still ongoing from China. At the same time, the demand is still challenging. We also hope after everything stable, demand and the confidence of the buyer will be improved. Expected the margin at the first quarter, the second quarter is still low. So the spread -- low spread from the last quarter will prolong, especially first quarter. And I also look at the second quarter will be more or less the same. But I don't think the spread will be softer because of this level, the supplier, especially in Asia cannot survive. You will see the many players in Asia has announced the capacity cut. Right now, not only LSP and also the others in Philippines is also announced shutdown for probably 2 quarters or 3 quarters as well as the producer in Korea. And coming, we will announce more if the margin is still low at this level. That's why I don't think the margin will be softer. Look at the Vinyl chain. The vinyl chain, also the ongoing capacity addition from China. And also, we also hope the real estate and construction recovery caused by Chinese stimulus and global easing monetary policy. That is -- we also hope the demand side of the vinyl chain will be improved. At the same time, the EDC cost that is very strong at the last quarter and now getting better because of the new supply from Korea and also U.S. I also hope if this trend about the energy price will right now, following with the Trump policy to do more the fossil that if the crude oil softer, this is also positive to petchem business. And this year, we also continue our effort to reduce the working capital. And of course, during this very challenging situation, we also have to manage the plan carefully, especially in the optimization with products with market and also try to accelerate HVA. For LSP, the expenses in this year, just simple, just we have to absorb the cost about THB 1.2 billion a month. That 40% is noncash, about THB 500 million. That is depreciation. I just want to recap this project that we already announced from the last few months and just recap what is the key part of our ethane projects. In fact, this ethane retrofit, we are not the first one. This is just alive with the first movers such as [indiscernible] that they already utilize ethane from U.S. in 2016, '17. So it's proven the logistics and also the performance of ethane could contribute to the bottom line. Our ethane that we look at in the next 5 or 10 years because of the trend of natural gas consumption increasing that will make the ethane as the component of -- one of the component of the natural gas is abundant. We look at the ethane price compared with naphtha. We will get at least USD 250 per tonne. We make the contract -- we plan to bring in ethane to LSP above 1 million tonne. And one of the highlight of LSP -- you may know LSP is a highly scarce configuration. So basically, we can consume propane up to 70%. This is also good for LSP once we decided to modify the plant, we could make it cheaper and faster. And good news in the beginning, we have got the approval from Board to spend up to USD 700 million for this CapEx, including the plant modification and also the ethane storage tank. Now our team effort and also try to save some costs and also decide that we can significantly lower CapEx to $500 million. That makes our project return is quite short term. Also in terms of the funding of the projects, we're going to use our SEG cash flow. Definitely, SEG debt will not increase. What we have done in the past few months, actually, we speed up in all of the work stream. And I used to share to bring in ethane the importance in addition to signing the contract of the ethane provider, we also have to make sure all the logistics from U.S. to Vietnam. And also at our plant, we also have to build the solid tank as well as the plant modification. This key milestone achievements that we just signed a contract in this month with ethane and logistics provider in U.S., namely enterprise product partners that the contract we signed 1 million tonne. The price is based on the Mongabay view. This is the price indicators using in U.S. And also, we signed 3 of 5 VLEC. Anyway, we still have the two ships remaining. The first 3 ships we make charter agreement with Mitsui OSK MOL. The logistic cost is a long-term ship [indiscernible] open cost by users. For ethane installers, we already select the contractors. Anyway, right now, we are in the last step to finalize the contract and the contract will be signed in the next month. So I already explained the highlight of this LSP retrofit and all of this key milestone achieving and also still have some key ongoing contract and also the key tasks that our team is still working hard to achieve as the plan. And also the license and permit that we have to get approval from Vietnamese government. Now we're also doing parallelly. Next, to update also another achievement that we already announced last month. We just acquired one of the recycled company named Teamplas. We acquired 51% of the share, the Teamplas capacity, 36,000 tonnes a year. And this recycle company is actually is one of the best in South Asia. The capability of this recycles is they can recycle the [indiscernible] plastic, mainly focused on the rigid plastic. So to bring back of the U.S. and also the part of the automotive and guiding and make the formulation and can supply back to the electrical appliance and also automotive industry. And we really hope this move will bring us to enter to this ecosystem, not only in Thailand, that also have the potential to expand the business to the Southeast Asia. This is also the recycles that our activity is to keep expansion. As we already announced, we have investment in surplus [indiscernible]. That is -- this year, we also will expand the capacity. And also in Thailand, apart from the mechanical recycle, we also have the advanced recycle. That is -- we have big progress, and we are going to improve some of the -- our mechanical part. And we hope this new equipment will improve our yield of this advanced recycle. We will try and share this progress in the next quarter. Totally, if we can achieve this will be about 2,000 tonnes and potentially can expand much more than this. That's all of my part. Pass to [indiscernible].

Thank you [indiscernible]. Good morning [Foreign Language] I start from the revenue. Revenue in the fourth quarter, revenue slightly dropped by 1% year-on-year, but EBITDA increased by almost 160%, while our profit improved significantly, mainly from our energy transition effort and our production efficiency improvement. And also, we did streamline our business operation. And for the whole year, EBITDA improved almost 30% and profit also improved significantly compared to last year. For Thailand cement market, overall cement demand in the fourth quarter increased almost 5% year-on-year, significantly improved compared to the previous quarter. And our ready-mix concrete demand increased 3% in the fourth quarter, in line with our cement demand growth. And while the ASEAN cement market also improved compared to the same period last year, particularly in Vietnam and Cambodia, mostly from government spending budget. For the last year, our alternative fuel usage up to 45%, increased 5% from the previous year, mainly from developing a new decarbonization technology. And in terms of product portfolio, the replacement of OPC with our low carbon cement has increased from 63% last year to 87% in 2024. So our low carbon concrete sorry, our low carbon concrete has been well accepted by real estate developer for quality of use, for example, housing and condominium project as well as a precast factory. And we continue to optimize strategic location across ASEAN operation to expand export of low-carbon cement to the global market, including U.S., Canada and Australia. And last month, we opened a new market by exporting our first shipment of low-carbon cement from South Vietnam factory to Oceania. And for the outlook, we foresee that continued growth in Thailand construction market in this year, mostly driven by government projects and private investment. And we are seeing continued growth in the regional also. And for the future effort, we continue working on cost reduction by increasing our alternative fuel and renewable energy uses. This could help us a lot. For last year, we achieved cost saving around THB 1.4 billion from our cost reduction program. And we continue to expand our green product into new potential market. U.S., Australia and Oceania, as I mentioned earlier and lastly, we ensure to -- for the biomass supply by expanding the cultivation of energy nationwide. So that's all from my part. May I pass to Khun Nimlaor.

Good morning, everyone. Today, we will begin with the construction materials in Thailand situation. Thailand building material market in the fourth quarter dropped 30%, mainly from the slow demand in the Residential segment. However, there are positive signs in the Nonresidential and Government segments. For the regional market, Indonesia market is seeing steady growth despite uncertainty in government investment. Vietnam market continued to grow, while Cambodia market remains slow. For Smart Living and Distribution Retail financial highlights, for the whole year performance, we increased net profit by 19% from the last year, thanks to cost efficiency, while sales and EBITDA are slightly declined due to the soft demand. And the third quarter EBITDA and net profit dropped mainly from the onetime expense from operation and business restructuring. Let's move to the Smart Living business effort. For smart building material system, we prioritize delivering innovation and sustainable product that enhance the customer experience while reducing our carbon footprint at the same time. Example, [indiscernible] is our constructed from sustainable bamboo and rapidly renewable resource that offer customer nature [indiscernible]. We're also the first company in Thailand to achieve carbon footprint of product certification for our [indiscernible], demonstrating our commitment to comply with the Climate Change Act. Moreover, our ongoing cost-saving initiative view allowed THB 363 million from efficiency improvement. For the Smart Solution, in response to higher PM 2.5 level and impact on customer health, we have developed a new series of the active air quality solution that the system deliver better indoor air quality and offer the customization to suit individual design that we show you that outside the meeting room. For the distribution and retails, we continue to expand globally. In the first quarter, Mitra10 in Indonesia opened new -- 4 new branches, bringing the total is 56 store. And the [indiscernible] also opened 3 new branches, reaching to the total 16 stores. We also entered in [indiscernible] agriculture machinery market and expand the business in Korea. For the outlook, we expect growth in government spending in both Thailand and regionals. For the residential market in Thailand, we anticipate modest sales growth driven by the remaining housing stock. However, we still aim to grow the business with the strategy, optimize product mix to compete in affordable product segment and expand green product portfolio to align with the industry trend, drive a significant growth in the solution and use the technology and AI for better customer experience, growth in international business in ASEAN and SAMEA that all for Smart Living and Distribution and Retail. The next one is SCG Decor. Let's move to the SCG Decor performance. In 2024, net profit and EBITDA increased 147% and 4% year-on-year, respectively, while the revenue and sales decreased 10% from the last year. Moreover, the company incurred approximately THB 100 million onetime expense due to the recent restructuring and flooding in Maliwada, Philippines in the end of the last year. Excluding this nonrecurring expense, the net profit increased by 11% year-on-year, while EBITDA decreased by 3%. EBITDA margin and net profit margin, excluding the nonrecurring expense improved from the last year. For the Q4 last year, net profit EBITDA and revenue from sales declined from the last year and quarter without the impact of the scale down solar business, the revenue decline would be 8.7% year-on-year. If excludes the nonrecurring expense from the net profit and EBITDA would decrease only 1% and 12% year-on-year, respectively. Net profit margin was at 3%, improving from 2.6% in last year and remaining stable. The EBITDA margin was 12.2%, maintaining similar level to the last year. That's all for my part. Pass to [indiscernible].

Good morning, and happy Chinese New Year to everyone. Let me start with the -- a very quick recap on SCG Packaging. They have their own analyst conference on Tuesday. So just -- sorry on the full year financial performance, revenue was roughly about THB 132 billion, up 3% from last -- from 2023. That's pretty much from the higher sales volume in the downstream business. However, if you look at the EBITDA and net profit, it was down 9% on the EBITDA from 2023 and 30% on the net profit. That's -- I think it's quite common factor in terms of the drop because of the lower selling price, the higher raw material cost on the recovered paper and also the higher financing costs as well. Just a reminder that they took a full consolidation on the FAJAR in Indonesia starting from the Q4. That's also the part of the reason of the lower profit down to THB 3.7 billion last year. On the financials, I think this page should look quite familiar to all of you. Top left, the cash at the end of Q4 was -- remained strong at THB 53 billion. Bottom left on the long-term debt proportion, if you could recall in the past, debenture roughly represent about 75% of the long-term debt. It has increased to 84% in Q4. That's because we have prepaid all the long-term loan at the LSP. Also, the proportion of the interest rate component as a result of the repayment of that floating rate loan at LSP, the fixed rate proportion has increased to 91%. But what I would like to update you is that we have issued the debenture in Q4 of last year, and we continue to receive a very well responded from our bondholders. The resubscription rate of that issuance was quite high at 91%. This is another deliverables that we promised okay? If you could recall, we were talking about deleveraging, okay? And if you look comparing from Q3, our net debt was THB 311 billion. We brought it down to THB 295 billion at the end of last year. And as Khun Thammasak mentioned, that's a number of factors, the collaboration of each BU that helped bring down working capital from half year by THB 16 billion. That results in the released working cap, that means we have higher cash. Also in terms of the CapEx which I'll mention in the next slide that we control the spending on the capital expenditure and investment. So that's result in the net debt to EBITDA, although it still remained high at 5.5x, it reduced from the 6.3x at the end of September, and we will continue to deleverage and bring our net debt-to-EBITDA ratio down this year. CapEx and investment. 2024, we spent a total of THB 55 billion. But if you look at the top of the -- on the chart, I mean, at 2024, we spent THB 23 billion for Fajar share acquisition. So without that, the total CapEx was roughly about THB 33 billion, which was lower than what we have communicated at the beginning of last year at about THB 40 billion. This year, we will -- our plan CapEx spending would roughly in the range of THB 30 billion to THB 35 billion, and that includes the LSP E10 project, the spending this year, which we plan about THB 6 billion. That concludes my part. May I pass on to Phumi Chana.

Sorry. Last year, 2024. SCG absolute gas emission still have done well in line with the [indiscernible] target. Total emission is about 26.25%, assuming that normalized with the asset utilization come up with 29% still lower than what we expect. This is what thanks to our good innovation and collaborative action with our business partner, we could ramp up the AF, alternative fuel usage to 29%. In the Cement business, the AF is you said up 5% to 45%. It is -- can also get the cost competitiveness benefit. Another major contribution to our achievement is our low carbon cement and concrete, which is the key level with growing important foster inclusive green growth. Having previously highlight energy cost competitiveness, is another perspective on the revenue from the green product that SCG named the SCG Green Choice label. Last year, revenue from sale of the Green Choice product was THB 275.6 billion, account for 54% from the total revenue and also mainly from the low carbon cement and concrete, followed by the SCG green polymer and SCGP green carbon, and we can reduce about nearly 1 million tonnes of the carbon dioxide that in line with what we commit with the [indiscernible] target. Last is the highlight from [indiscernible] that we actively collaborate with our stakeholders using the public-private people partnership. We can showcase during COP29 in Azerbaijan and also World Economic Forum in New York Climate Week. As the industry cluster driving net zero transition, our key success that I want to emphasize will also benefit to our industry in Thailand is the energy transition that we can do very good progress with the EGAT to do the floating solar in the [indiscernible] and also trying to expand in another area. And this is potentially we can also test the third-party assessment in [indiscernible] . Second, Thailand, and this is standard for the new cement hydraulic cement name TIS2594 and 2567 will mandatory stay but using in this year. With our extensive network stakeholder, we have collaborated to expand project in waste management, low-carbon agriculture, land use and forestry to highlight inclusivity in the [indiscernible] province that all from SCG. May pass to Khun Thammasak.

So on the green energy that we are still growing steadily. Last year, we can achieve the 24% growth in the green megawatt. You could see that from 680 total megawatt to 840. Hence our megawatt -- green megawatt that's already in generation this top up to 255 megawatts already. So we still have a steady growth on this green energy. So another development, which I think is quite important for green energy transition for Thailand is the third-party access platform. So we are part of the sandbox of the ERC on this third-party access. So the MOU has been signed with the ERC and the solar supply and the user. So there are several customer and producer and the customer that already collaborate on this third-party platform sandbox. Hence collaboration with the leading renewable energy platform company and the EGAT to implement the forecasting model and the supply for the supply accuracy. So this opportunity for clean energies to scale up the private PPA, for example, the data center that really need to have the clean energy. If we have third-party access, we open and implement in Thailand, we can install more of the solar and wind. And this is going to be a foundation of the clean energy transition and also attract the data center. So we can expand the third-party access model. We can explore the technology like smart grid and monitoring life on the implementation. Another exciting development on the clean energy is the Rondo heat battery. Our installation in Thailand in Saraburi, construction progress is now 61% and expect to complete by second quarter this year. And that will enhance the overall efficiency of the energy storage and will demonstrate how we can use the surplus solar and keep efficiency as a heat and then reuse it in the industrial use. So that's for the clean energies. Now in summary, I would like to give a little bit of outlook. This year, 2025 will be a very dynamic year in my opinion. Global economics may be according to IMF, you could see 3.3%. Several downside risk of the trade war of the volatility that will happen. I hope that this thing will steer through, but the global GDP is very volatile. China GDP estimated at 4.6% and the huge Chinese government stimulus will -- hopefully will rebalance the impact from the trade war, make sure, including rate cuts that leave CNY 10 trillion that will put into reduce the financial pressure of the local government. That will definitely impact shore up the Chinese economy Brent. This is probably one of the good news as the U.S. are working to lower the oil price, producing more of the oil and gas. So we see that the Brent will decline to $75 per barrel in this year. This is the forecast compared to $81 last year. So if the Brent reduce, Naphtha price will reduce, and that will improve the chemical margin. So -- but another thing that I start to observe -- I observed this for several months already that chemical industrial margin are likely to settle lower than this because every time there is a sign of the margin compression below this, people start shut down the operation immediately. And we start to see that many operator -- petrochemical operators now shut down [indiscernible]. In Europe last year, the quick estimation at the moment is more than 10% of the capacity [indiscernible]. And this year will probably be [indiscernible]. Cement and construction and the related industry benefit from recovery of the demand, especially on the government-led project. So last year, we -- first half of last year, if you still remember, there's a problem of the budget delay. But this year, we don't see that issue. Our strategy. So you could see that we have a very strong EBITDA, very strong cash flow. And our campaigns on lean and restructuring of our nonperforming also help us to release more cash, make us healthier. That allow us to repay the debt. So this is a resiliency that we are seeing in our business. So if we can continues to reduce the debt like this, definitely, we will be stronger and stronger, even though the business environment could be more volatile. Chemical margin and chemical business, of course, we have a full depreciation of the long term, but that is noncash. So that's something we take it and we want to maintain the cash and make sure that we optimize the business. The margins are likely to go lower than this. That means we are at the certain level of the margin already. So that means the volatility will push up. That's something we could see if the oil price going down. Construction materials in Thailand, our low-carbon cement generation tool will take into the FX and will help us to improve the margin. The government budget, government-related project will shore up the industry. And if you look at Vietnam and Indonesia, for example, Vietnam estimate GDP growth at close to 8%, last year 6%. So this will definitely help in terms of the overall improvement of our operation and Indonesia also around 5% to 6%. So that is the growth engine of the region, which we have a quite large operation in both markets. We still see that our operation in Vietnam and Indonesia is a very strategic investment that will pay back in the medium to long term because the market is growth and the business environment is still very favorable. So that's why we implement the ethane for the LSP and the SCG Packaging took the action to shore up the profitability of the Indonesian operation. So that long term, that will really, really contribute to the shareholder return. Ceramic business going well and due to the regional market improvement and especially on the Sanitary Ware segment. So our strategy that we announced last year, third quarter last year, we demonstrate the progress. We show the resiliency, the strength of our business. And then our long-term -- medium- to long-term transformation like ethane at the LSP, we already proved that the critical issue we already complete, secure the ethane that many people ask whether we can do it or not because the terminal in the U.S. is really tight. We already show that we can do it. And the logistics with this the VLEC shipyard are really tight. We already get the contract and already secured the whole logistic charter. So these are the things that we believe that we come to the right direction, just a matter of the execution that we will continue this campaign and we will pay back to the -- not only to the long term, but also the medium term and the short term. Thank you.