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

Good morning, ladies and gentlemen. Welcome back to SCG analyst conference for the fourth quarter 2020 results. As with the previous 3 conferences, we're doing this virtually. [Operator Instructions] We'll open the floor up to questions after our management speaks. [Operator Instructions] Onwards to this morning's program. Today's presenters are as follow, beginning with the consolidated results, the CEO of SCG, Khun Roongrote Rangsiyopash. The financials will be highlighted by the CFO of SCG, Khun Thammasak Sethaudom, who will also touch on SCGP, which has already reported results and held its own analyst conference. For the business units, beginning with the President of the Cement-Building Materials Business, Khun Nithi Patarachoke. He'll be supported by Khun Chana Poomee. And he will be followed by the President of Chemicals Business, Khun Tanawong Areeratchakul. Thank you. And now on to today's exciting program, beginning with Khun Roongrote krub.

Good morning, and welcome to our last quarter result and also the summary of the full year 2020. In the fourth quarter of last year, our revenues was THB 97.2 billion, and that's down 8% year-on-year and 4% Q-on-Q. The drop was coming from the seasonal weak demand of the cement and building materials as well as the lower Chemicals sales volume, and this is due to the planned shutdown of the MOC turnaround. In terms of EBITDA, as you can see here, EBITDA from operations improved year-on-year by 25%. We registered THB 16.7 billion of EBITDA. Including dividend, as you can see, dividend in the fourth quarter from associated companies down significantly, and that's mainly from the associated company in the chemicals sector, from THB 7.5 billion in the fourth quarter of last year to THB 1.5 billion in the year 2020. So EBITDA in the fourth quarter was THB 18.3 billion, and that's down 12% year-on-year and 4% Q-on-Q. In terms of equity income, the -- we registered equity income of THB 3.5 billion, and that's a 22% increase year-on-year and 14% Q-on-Q. Mainly this is due to the improved performance of the Chemicals segment. In terms of profit, we registered profit of THB 8 billion in the fourth quarter of 2020, and that's 13% increased year-on-year and 17% (sic) [ 17% decreased ] Q-on-Q. I would like to also note that, in the fourth quarter of last year, we had impairment of THB 1.5 billion recorded, and that's mainly due to the assets of the cement operations in the -- both Myanmar and Indonesia. On a full year basis 2020, we registered sales of THB 399.9 billion, and that's down by about 9% compared to the prior year. EBITDA is very much flat, THB 74.6 billion, whereas the EBITDA from operations increased significantly to THB 68.1 billion. And that's mainly coming from all business units. In terms of profit, we recorded profit of THB 34.1 billion, with earning per share of THB 28.5 per share. And that's a 70 -- 7% increase from the prior year, thus the increase in all the business units. If we were to include the severance pay adjustment, that's according to the new labor law in 2019, the profit will be very much equal to the 2019. In terms of the revenues from sales segmentation. Chemicals, down slightly from 41% in 2019 to 37% in 2020. Packaging increased proportionally to 23%, and cement and building materials increased slightly to 40%. Chemicals declined in the proportion of the total sales, mainly coming from the last quarter shutdown of the MOC for turnaround as well as the decline in the average chemical prices. Nevertheless, in terms of profit, Chemicals account for about 52% of the total profit of the group, whereas the Cement-Building Materials accounted for 19% and Packaging accounted for 18%. In terms of the segmentations for export. Export, as you can see here, declined from the THB 102 billion in 2019 to THB 88 billion in 2020, and that's the drop by about 12% mainly coming from the decline of the product prices of chemicals as well as the slowdown in the regional economy. At the same time, as you can see, the proportion of the export to China increased significantly from 20% to 25%, and that's really implied that the China economy has recovered quite well. In terms of the ASEAN operations, ASEAN accounts for about 18% of the total sales. And that declined by about 10% from the prior year, but that's mainly from the broad decline in the GDP of ASEAN countries. This is the high-value-added portion in terms of the total sales. We're showing 2 figures. One is the old definition. That's showing 1% increase from the prior year, but from this point onward, we will use the new definition, which is more stringent, but at the same time gearing toward providing metrics for the new -- normal new trends in our overall industries. That's 32%. So please register 32% as the basis for comparison from this point onward. I now would like to turn this to Khun Thammasak for the financial portion.

Yes. Good morning. For financial update, I would like to start with EBITDA on asset. So it's stable around 10x. And if you look at the EBITDA margin, it's about 17%. And last quarter, our net debt is on -- was on the THB 154 billion. And net debt-to-EBITDA, it's 2.1x. Net debt-to-equity is 0.4. In term of the capital expenditure, we spent close to THB 60 billion. This is THB 58 billion for CapEx and investment. And the majority, 65%, come from the greenfield, expansion like Long Son petrochemical complex in Vietnam and Map Ta Phut olefin debottlenecks. So these are the 2 main key projects that used CapEx. Interest and finance costs amount to THB 7 billion, increased year-on-year, is mainly because we adopt TFRS 16. Our interest costs stood at 2.9%. In term of the outlook and highlight. Yesterday, Board recommended dividend payment of THB 14 per share. This is the 49% payout ratio or THB 16.8 billion. So if you remember, we already paid THB 5.5 per share as interim dividend for the first half. So the remaining, it's THB 8.5 per share. Profit is still very resilient. We registered THB 34.1 billion last year and 7% up year-on-year. As Khun Roongrote mentioned, we -- impairments tests resolved (sic) [ result ] in THB 1.5 billion charge in fourth quarter and mainly from Myanmar and Indonesian cement operation. SCC is still very strong balance sheet and very well positioned for growth. That's overall financial situation. In term of the outlook, this year, we estimate our CapEx and investment around THB 65 billion to THB 75 billion. And LSP or Long Son Petrochemicals still account for more than half. For the planned debenture issuance. On April this year's will be THB 15 billion. This replace THB 25 billion dividend that mature in April. And if you watch SCG Packaging, they already plan to issue THB 5.5 billion debenture also. So in total, we reduce our debenture amount around THB 5 billion. Next is on the SCG Packaging. So this is just a one-page summary. Revenues from sale increased 4% year-on-year and registered at THB 92.7 billion last year. EBITDA increased 11% and registered at THB 16.8 billion. The margin, EBITDA margin, improved from 17% to 18%. Net profit margin also improved from 6% to 7%, and the profit registered at THB 6.4 billion. This is 23% improved year-on-year. So overall, SCG Packaging operations is still very strong, and they're still well under their growth target as they announced. So they already closed Sovi and Go-Pak. These are the 2 key deal that they have done. That's it for the SCG Packaging. May I hand over to Khun Nithi krub?

Good morning. I would like to start Cement-Building Materials Business from overall cement demand in ASEAN for this quarter. The demand declined year-on-year, especially in Myanmar because of the lockdown measurement in Yangon and Mandalay to control COVID-19. Apart from COVID, Cambodia and Vietnam also faced one of the worst flooding in a decade from the heavy storm in many areas. These 2 factors contributed to slowdown in cement demand in ASEAN. Back to Thailand. For this quarter, cement demand dropped slightly, 5%, year-on-year. For residential and commercial segment, demand decreased 7% and 8%, respectively, due to the effect on -- COVID-19 on general economy. Cement demand from infrastructure segment remained stable year-on-year, thanks to ongoing public investment that have already gotten government approval. Ready-mixed concrete demand contracted 10% year-on-year due to the slowdown in new investment projects and transportation problems caused by flooding in many areas in October. Housing products demand decreased 8% year-on-year. And that of ceramic tile drops 2% year-on-year as a result of economic slowdown that -- reflecting from the number of condominium and housing projects reduced. For ceramic tile, the sale volume decreased 12% year-on-year due to severe flooding in Cambodia and Vietnam, as mentioned before. ASEAN ex Thailand and other sales segmentation, the sales growth declined 16% year-on-year due to a drop in new investment projects and construction activity caused by COVID-19 outbreak and storm in Vietnam and Cambodia. For domestic sales, in this quarter, sales declined 8% year-on-year, mainly from sluggish demand in all segment, and this caused by flooding in rural area and the COVID-19 cases second wave toward the end of fourth quarter. For -- the revenue from sales in the fourth quarter dropped 11% year-on-year as a result of declining demand in investment projects and construction industry across ASEAN. For EBITDA and profit. This quarter, EBITDA declined 20% year-on-year due to abnormal weather and economic slowdown. CBM report a net loss of THB 194 million due to recognition of asset impairment. However, excluding the key extra items, normalized profit for 2020 would register an increase of 18% year-on-year. To sustain our EBITDA and profit, we continuously accelerate sales in active omnichannel to respond to the changing customer needs. Secondly, we expand service solution and new business that generate additional EBITDA without increasing fixed costs. Thirdly, we implement efficiency improvement in operation process with digital technology and ID4, which enable a significant reduction in operation costs. For the outlook, demand will continue on downward trend in the first quarter of 2021, but expect that to be challenged in the second quarter. And we see, we foresee the situation should improve [ largely ] around second half of this year once COVID vaccine is widely distributed. We believe that government spending on infrastructure project will still continue to play a major role in domestic demand -- domestic construction demand. For our part, we continue to concentrate our effort on cost optimization. And the business transformation is the move that we will continue to move into the retail and service solution in 2021. For the company update. Domestic retail franchise added 7 new store in 2020, bringing the total of 18 store nationwide. SCG-Boonthavorn entered an MOU with Hardwarehouse in order to strengthen competitiveness in term of product variety, location and supply efficiency in retail business. And SCG-Boonthavorn flagship store in Cambodia is expected to open in second half of this year. Next, I would like to go into detail of each strategy for CBM this year. Khun Chana, please, krub.

Good morning. May I add on detail of the -- our [ optimization, cost, yield, good result ] in 2020? In this year, we will continue to concentrate on efficiency improvement. First, we will increase the proportion of self-generating power by increasing solar capacity from 64 megawatt in 2020 to 94 megawatt in this year. Together with 108 megawatt from waste heat generation, self-generation capacity will [ exceed ] 200 megawatt. Second, lean and ID4 has been consistently implemented in process improvement along the value chain. This will boost up overall plant equipment efficiency about 3% year-on-year and productivity per head by 20% (sic) [ 28% ] year-on-year increase. Third, amidst rising coal price, we have already secured the [ bandwidth ] and locked in the price for 60%. In addition, we will increase the usage of alternative fuel from 19% in 2020 to 25% in this year. May I pass back to Khun Nithi, please?

[indiscernible] and solution for green and hygienic living. For the new products for cement, we have hydraulic cement that help reduced CO2 emission through clinker substitution. And now we promote extensive use of low-clinker cement via MOU with government, professional, industrial and academic sector. Secondly, for other building materials product, we have sanitary ware touchless [ ceiling ] incorporating with smart sensor to reduce exposure to germs. And we have ultra clean smart board as well as hygienic tile that inhibit the growth of bacteria in home. For the service solution, we have medical solution developed to help prevent COVID-19 widespread, including acute respiratory infection outdoor clinic or ARI and airborne infection isolated -- isolation room or AIIR. This is isolation control room for medical use to ensure safety for medical staff. Both solutions can be built quickly and within budget. We also offer solar roof solution that help homeowners save on electricity bills. And we have decorative solution providing renovation service to homeowners with a wide range of material for building and home. Next one is the last slide, progress of retail and active omnichannel. Firstly, we expand our retail franchise store to 18 store in 14 key province. Secondly, we have SCG Home Boonthavorn MOU with Hardwarehouse, as already mentioned. Thirdly, we have -- this is the result of last year SCG Home online active omnichannel growth 6x, online sales growth, last year. And now we have more than 10,000 SKU products. The next one is Q-Chang. It's the platform for the installer. This grew 4x in 2020. And the last one, the NocNoc marketplace platform grew 6x, with total product SKU reaching around 100,000 item in 2020. That's all from CBM krub. May I pass to [indiscernible]?

Krub. Good morning krub. Chemical business in the Q4. What we have seen, you can see that crude oil price increased to -- in average to $45 per barrel and mainly due to the we -- what we have seen, that after the vaccine rollout plan happened in many country, the sentiment become better. And at the same time, the depreciation of U.S. dollar resulting from the stimulus package support oil price. And similar to the oil price, the naphtha price also come up and [ are up ] 3%, but if you look at the key product split for, I mean, HDPE, PP and PVC, actually the space is still quite okay. And you see the combination of the demand also improved. And at the same time, [ there's a kind of ] tight supply, supply shortage, in some other country. So this one helps support the gap. For the performance highlight. The MOC turnaround, as I'd reported last time, we postponed turnaround from second quarter to the fourth quarter. And at the time, what -- we reported that will be planned for 45 day. And what we can achieve, we can complete within 38 days, and this one can help to have more -- I mean to reduce the volume loss. And another key highlight: If you may know, that during The fourth quarter, [ there's a kind of ] container shortage and freight shortage. And what -- we have to manage our supply chain, and this one, we can do quite okay. I mean really a negligible impact, so that's why we can push our volume to the market. Look at -- like I mentioned, for the PE gap, in the fourth quarter improved, [ yes, and mainly then ] from the demand recovery and tight supply in Asia. PP and naphtha gap, also the same explanation that also demand recovery in China. And especially actually the -- in the fourth quarter, demand sector like electrical appliance and automotive and packaging sector also improved, and also tight supply because there's some unplanned outage in the region as well. PVC pike in -- for PVC price, of course, the demand also was still quite strong in the -- for example, in China and in India. And that's in the construction sector. [ And this is a kind of ] government project to -- this is like a stimulus package to maintain the economic activity. And at the same time, like I mentioned, there is a tight supply from U.S. and European country. And some of them declared force majeure. What we're talking about, I think 4 million, 5 million ton declared force majeure. So that's why the price come up substantially. The benzene-toluene split. Also, benzene come up. And this is the [ SM ] demand improved in the fourth quarter. And also there's [ arbitrage ] that North Asia can send benzene to U.S. So this one helps improve the gap. I think toluene maintained, I mean, more or less, not -- slightly improved. For MMA gap. I mean fourth quarter improved from the -- actually the automotive demand recovery, like I mentioned. And also there are some both planned and unplanned shutdown in the fourth quarter. That's why we can maintain the -- I mean, the gap. And BD gap fourth quarter improved quite substantial. And this is also again the demand come back from the automotive and some other [ lumber application ]. For sale volume. Sale volume in the fourth quarter, you -- last time, we reported that we expected the volume may decline. We will reduce around 120,000 ton, but as I mentioned, we can finish turnaround 1 week earlier than plan. And we also -- we purchased ethylene and propylene from the market to produce our polyolefin product. And in addition, we also -- we have our inventory that we planned earlier. So that's why the volume lost only 58,000 ton compared to 120,000 ton that we reported earlier. So this one can help improve in term of the performance. And compared to full year, the volume reduced because of the turnaround. PVC sale volume slightly declined, and this is actually mainly from the COVID restriction in Indonesia. So more or less, the volume is not -- I mean quite compare, I mean, full year, only 2% decline. Financial. The revenue slightly dropped 5% Q-on-Q from the lower sale volume because of the turnaround activity and -- but also the price improved. So that's why we minimized the impact from those volume reduction. Look at EBITDA. EBITDA improved 8% Q-on-Q mainly from a higher gap that I mentioned earlier and reduced 12% year-on-year from the lower dividend. And if you compare year-on-year in term -- EBITDA from operation is improved from the better gap. Profit. Similar to the EBITDA, profit earning improved 6% Q-on-Q from higher gap and 108% year-on-year from better gap. And we can manage, I mean, feedstock costing compared to the, I mean, same period last year. And if we compare full year, the profit also improved. The core profits of -- from the operation also -- the subsidiary also improved from the better gap. And what I would like to summary, that last year, actually when the COVID pandemic happened, there are so many thing happened, in fact. And what we did, I will say that, firstly, we focused on our people. I mean we have to make sure that we have our people working in a safe environment and they also have safe health. So we classify a group of people like essential staff, and we also have work-from-home activity. So in our Chemical, we can -- I will say that the -- we start work from homes in the -- March 17. At that time, we -- I think the number, percentage of work from home, around 90%, roughly more than 90%. So this one, we still have a good efficiency even though we have work from home. And in term of the operation, we have -- we classified area like critical area and essential staff, and we have a plan to make sure that we can land our plan. And maintain our supply chain. And also we communicate closely with our customer. And in term of sale and product mix, as you may know, that in the second and third quarter, there's a lot of activity happen. I mean the lockdown in many country and product from some segment like automotive and some [ durable ] product, the demand declined, depending on country and depending on sector. So what we did and what -- still what we're doing now, we manage our product mix and we also manage the destination of the product. So that's why we can maintain our plan landing at full capacity and we can sail out product. And in addition, what I mentioned last -- that in the fourth quarter, we have -- we felt the difficulty about container shortage and fleet shortage, but again we can manage and we can push our product volume to the market quite successfully. The key project and turnaround activity for LSP, the project in Vietnam. Actually [ there is a kind of ] impact from -- for the equipment delivery, yes. And also some supervisor cannot travel to Vietnam, but what we managed in term of the construction, we did a lot of improvement. We have developed [ a kind of ] what we call the modular construction approach so we can expedite construction. At the same time, we have what we call the remote supervision. So we can have supervisor. They can supervise through the remote application. So this one can help our -- we can expedite to improve the schedule. For the MOC turnaround. As I mentioned, this time, in addition to -- we complete 1 week earlier than planned, but this turnaround, I will say that we -- what we call we did -- we call clean turnaround. We managed to make sure that there's no impact to the community as well. And MOCD: This is the expansion project for MOCD. We complete tie-in during the turnaround. And this one, we can manage the construction during the COVID pandemic quite well. There is no COVID case in our plant, and we believe that we can start up ahead schedule. And in term of cost management, we -- in term of CapEx, we prioritize investment. And at the same time, we look at our overhead expense, and we can reduce the overhead expense as well. In term of feedstock -- because last year, like I mentioned, the oil price quite volatile and feedstock also quite volatile. So we have to manage this one. And I will say that we managed from time to time during the COVID pandemic quite well. So that's why we still maintain a good gap. And outlook. Outlook, this -- now we see that in other countries like in European country or even in Thailand we have a new, I will say, what they call new wave or second wave of -- but the oil price -- we -- what we have seen now, the oil price still maintain at around $55 to $56 per barrel because, the Saudi Arabia, they cut production more [ or 1 more ] million barrel per days. So that's why the oil price still maintain. And at the same time, as I mentioned, the weakened -- weakening U.S. dollar can also support the oil price. We do believe that [ oil price ] will stay at the [ reasonably well ]. And naphtha, the demand is stronger after the -- some cracker, they have turnaround activity last quarter. So they resumed their operation. And there's -- new capacity come up as well. And then for polyolefin. Polyolefin, I think, in term of demand, we have a good sign, that like I mentioned, since the fourth quarter, like Packaging segment, automotive and electrical appliance, I think this is that demand improved quite substantial, but at the same time, what we have observed is the new additional supply come up as well. And PVC, in term of demand, is still quite strong for the construction activity and if -- it in country like China and in India, but at the same time, the producer -- that they have declared force majeure. They start -- they have already lift force majeure since the end of the last quarter. So this is -- I think this is, on one hand, the demand is still okay, but we have to monitor the supply side. And company update. This is -- I would like to update that -- you may have heard about circular economy. What we would like to update, that now we develop what we call the chemical recycling. And I will show you more detail later, but we complete the construction of what we call the demonstration unit. The capacity is 4,000 ton a year in Rayong. And let me come back to circular economy initiative. Yes, I do believe that you -- if you follow the -- our SCG initiative for circular economy. We -- since the -- I think a few years ago, we focused a lot on circular economy initiative. For example, for community, we have activity to collaborate with community to let them -- to educate and let them separate the waste, and they can have more value from the waste. And we have developed the digital platform, what we call, KoomKah. This one can help in term of the waste separation. In addition, we also collaborate with many partner. And for example, this is the project that -- what we did last year, what we called Recycled Plastic Road. If it -- we used the waste plastic that we combine with asphalt and we can produce the plastic road. And we also collaborate with some -- I mean like Bangchak, that we produce the lube -- or packaging from the recycled packaging. This is some circular economy initiative, but in a big picture for the circular economy, I will say that this is -- will be one of our key strategy that we will move forward. If you look at circular economy. I will give you a big picture for this, but the forecast for this time will be chemical recycling, okay? For the first one, design for recyclability. This is typical when we look at the packaging. In the past many years, if you need to have a very good packaging, typically, packaging, the [ purview ], we need to keep the shelf life of the product. So when they decide at that time packaging, we will have many layer, what we call multi layer, multi material. In term of circular economy, if we would like to have a very good circular economy approach, we have to have a very good design. So our concept, we -- what we call the mono -- multi layer but mono material. We use only one -- same material. So what we can do, we can recycle the material easily compared to the previous design. So this one can help, and we will launch the new product this year. The mechanical recycle. This is very simple. I mean this one, when we collect the [ waste plastic ], if you -- I think you can say that -- a very good example in European country. They have a waste collection, and after that, they clean up and they produce the plastic pellet from those packaging again. But in addition, for our approach, we also develop [ a kind of ] formulation, special formulation, for the -- what we call post-consumer resin. That -- typically the property of the post-consumer resin is not that good compared to the working material, but what we're doing now, we develop what we call the PCR [ booster ] of the formulation. That what we're doing now. We can improve the property as well. So this one, we're still in the testing product with the [ brand owner ]. The chemical recycling, I will explain later in detail. And bioplastic. This is the -- another initiative. We have both [ direction ] biodegradable that we collaborate with partner and also bioplastic. Bioplastic is like if you -- we can produce the plastic from the agricultural product. And this one, we can reduce the carbon footprint. So this project, we also collaborate with some potential partner. And when we have [ our focus ], we can come back and report to you again. May I show the -- wait. We have some... [Presentation]

Okay, well, for the chemical recycling, I think, as you have seen from the video, that what we're doing now, from plastic waste, what we can do. When -- we collect and we make it become a smaller piece, and we put in our [ electric process ]. And after that, we can produce what we call the renewable feedstock that we can put in the -- in our cracker. This is our picture of the demonstration plant. And I will say that -- maybe I can give more detail of that. In term of the chemical recycle, if we compare, typically -- as I explained earlier for the mechanical recycle, typically, mechanical recycle, you can use for the consumer product. And for chemical recycle, because of the technology can -- we can produce what we call renewable feedstock, so it's mean that we can feed our feedstock to our cracker and we produce our product again. So the product property, more or less, same as the virgin material. So it's mean that the application will be we can use in more application like a [ food contact ] product. And in term of costs, I think I -- this time, I will say that, based on our pilot test and indicative figure, I -- okay. We -- typically we will need another 3 to 6 month to do the testing and tuning the process. And after that, I think we will see the -- I mean the actual figure, but in term of the -- both investment and in term of renewable feedstock that we produce, I will say that it's quite competitive compared with the typical feedstock. So this is the update for the chemical recycle. And MOCD. As I mentioned earlier, we now -- we are in the commissioning process. And we expect that we will have a commercial operation in early Q2. LSP. Now they are progressed 66%. And like I said, mainly, for example, jetty already complete; the pipe rack; and some of the tank, [indiscernible] tank complete. And we put a lot of heavy equipment already. So we do believe we still -- we can -- after expedite and we can keep, maintain our schedule. Okay, that's all for the chemical. And the next one, this is the new report and Khun Roongrote would like me to explain, the sustainability. Actually I do believe that now there are many stakeholder. They focus a lot on the sustainability, what they call like ESG. Now I will say that a lot of, I mean, stakeholder -- like not only investor. I mean some other stakeholder. The opinion leader, they're also quite interested in the sustainability, so this quarter, we start to report what -- actually I will say that we -- if you're talking about a sustainable strategy and approach, we did for many years already, but this time we try to recap to give you and [ forecast ] on some -- on the area that is quite important and we will keep update quarter by quarter. Look at we -- actually we would like to report in that 3 separate area: environmental -- environment, social and governance. In term of environment, the most important one is the carbon reduction, the greenhouse gas emission reduction. Actually, we -- from the last -- our SD symposium, we announced to have a net zero carbon emission by 2050. Actually this is a quite long period. And we would like to make sure that we can achieve, so in term of the -- we have -- we set some plan in the short term and medium term. In 2015 (sic) [ 2025 ], we believe that we can reduce 20% of [ all our ] greenhouse gas emission. And 2030, we can reduce 28%, so this is also quite significant. And at the same time, we also further study because for the greenhouse gas, typically, a lot of company -- I mean if we check in other country. They use a lot of technology to do the carbon capture or carbon dioxide conversion. So we are still in the pilot state to do those carbon technology, and when we have more update, we will come back and report to you again. For the water withdrawal, our target, we will reduce the -- 23% in 2025. And another one, in what we call the SCG Green Choice product and revenue from sale, we plan to have -- 2030, we would like to have revenue from sale around 67%. This one, like a product that you can use less energy. You will have product that have less carbon dioxide emission, for example. So this is quite -- also quite important. For social activity, I think last year is quite good example that -- what we did during the COVID pandemic. I think we -- what -- you may have seen that for the social activity we will have a lot of innovative COVID application that we help supply commodity and hospital staff. We have like negative patient room that we produce that -- and we support a lot of community and government and also in ASEAN as well. So this is some activity that -- what we did last year. And in term of the KPI that's -- what we have for social, we target to have a 0 case for the human right violation. And for the governance, governance we conduct our business. I think this is -- I will say that this is one of our core value. So we have code of conduct that we still follow, this one. And we also have a lot of -- we try to understand what we will improve more and more in term of governance. For example, the composition of the independent of the -- director, not -- no less than 50%; and to ensure the transparency and diversity and overseeing the interest of stakeholder. This is in line with what we did and what we're doing now. And if we look at our performance in term of the ESG. The -- last year, I think you may know that we joined DJSI since 2004, I think, for 17 years, I guess, yes, 17 years. And last year, we received #1 in term of world and ranked in the gold class. And we also become industry leader in the construction material of the DJSI. And in term of Thailand corporate excellence award, we have the [ very ] excellence award in the human resource and for 18 consecutive years, and financial management as well. And we have distinguished for the leadership excellence, sustainable development and excellence in term of product and service for the Thailand corporate excellence award. And we also have a human right award last year and corporate -- we got rated excellent in term of corporate governance report for the Thai-listed company last year as well. So I think this is -- I do hope you see in the first time that -- what we try. And we will try to see what else that we can, if we need to give more information, we will develop from time to time. And that's all I have for the sustainability krub. May I put -- may I pass back to [ Khun Roongrote krub ]?

Thank you. In summary. Last year was a very challenging year not only in terms of the pandemic's but also in terms of the economics environment. It's not easy to find anyone who's that -- not being affected by this COVID-19. Nevertheless, SCG has survived, and actually, toward the end of the year, we emerged financially quite strong. And what's important is that we continue to be able to serve our customer well, and all our employees have been safe. I think in terms of the 3 business units: Chemicals, we have been able to capitalize the low costs of the raw materials. At the same time, the -- we have achieved in terms of the 2 major projects. One is the MOCD debottlenecking and turnaround. That was turnaround was done and the debottlenecking is expected to start very soon, but at the same time, the major projects in Vietnam continue to progress well. As of today, the progress is over 70%. Packaging, we have been able to success in terms of the IPO. At the same time, we have been able to deliver the kind of growth that we promised. In terms of CBM, this is the business that I think have been affected the most and going to be affected for quite more, some time by the pandemic's. Nevertheless, the result, we have been able to show some bottom line improvement year-on-year despite of the impairment of the assets in Indonesia and Myanmar. I think what's also important is that we have made progress in terms of the overall journey of the business transformation that we have the -- we have intended to. Projects like active omnichannel, service solution have made some progress. I think we're quite pleased with that. I think the -- as you all know, the crisis is far from over, but we're quite optimistic in terms of our ability to deliver the kind of change and value addition that we all hope to see. And at the same time, the -- we are very much ready for any changes in the environment and also the industry structures going forward. So this is all for 2020.