NO. (SUTHA-SET) 012/2022/EN

15 August 2022

Subject : Clarification of Q2/2022 and 6M/2022 the total revenues and the Net profit change more than 20%

To : The President of the Stock Exchange of Thailand

Attachment: Management Discussion and Analysis for the period ended 30 June 2022

Golden Lime Public Company Limited ( the " Company" ) would like to report operating performance for 3-month and 6-month period ended 30 June 2022 compared to the same period last year.

In the consolidated financial statements for 3-month period ended 30 June 2022, the total revenue of Golden Lime and its subsidiaries was THB 383.62 million, an increase of THB 92.66 million

(32% ). The net profit was THB 25.94 million, an increase of THB 18.07 million or 230 % , compared to Q2/2021.

In the consolidated financial statements for 6-month period ended 30 June 2022, the total revenue of Golden Lime and its subsidiaries was THB 776.38 million, an increase of THB 141.55 million (22% ). The net profit was THB 58.13 million, an increase of THB 20.54 million or 55 % , compared to H1/2021.

We have pleasure in enclosing the operation result report for more details information.

Yours faithfully,

Mr. Geza Emil Perlaki

Managing Director

1

Golden Lime Public Company Limited

MANAGEMENT DISCUSSION AND

ANALYSIS

For period ended 30 June 2022

1.Highlights

  • Health and safety: There were three lost time injuries in Q2 2022
  • Sales revenue (consolidated): 382mTHB in Q2 2022 compared with 290mTHB in Q2 2021 an increase of 32%; 773mTHB in H1 2022 compared with 632mTHB in H1 2021 an increase of 22%
  • EBITDA (consolidated): 68mTHB in Q2 2022 compared with 55mTHB in Q2 2021 an increase of 23%, and 144mTHB in H1 2022 compared with 134mTHB in H1 2021 an increase of 7%
  • Net income: 26mTHB in Q2 2022 compared with 8mTHB in Q2 2021 a significant increase, and 58mTHB in H1 2022 compared with 38mTHB in H1 2021 an increase of 55%
    Commenting Mr. Geza Perlaki, Golden Lime Managing Director said:
    Economic environment: major macro trends that left a mark on GL's business performance in this quarter 1/ weakening Thai Baht due to interest rate increase cycle well under way in developed economies, (addressing the inflation problem derived form an overstimulated economy in 2020/2021) resulting in interest rate disparity USD vs THB, and consequentially a weak THB, 2/ energy price shocks due to the Ukraine conflict, resulting in ultra-high petcoke, coal, crude and diesel prices, 3/ still elevated demand for container shipments, that keep the maritime freight costs at historic peaks limiting the export competitiveness of low value density products like lime, on certain markets, 4/ inflation globally (8-10% in the US/EU, 7% in TH, 2-3% in CN and JP) out of long term trends, that represented (beside energy) additional cost management challenges, 5/ a still sluggish Thai economic recovery in Q2, that is, while gaining momentum, still a laggard vs global trends, with only +1.1 quarterly and estimated +3% annualized GDP growth this year, due to slow post-Covid reopening and a still underperforming tourism industry, compensated to certain extent by the strong export performance.
    Market trends: The lime market segments that performed well were steel, chemical, and export markets in general. The sugar season was also stronger and longer into Q2 than in previous years, due to increased cane volumes (while still far from the 2018 peak year). Construction activity showed also improved performance, that however only impacts the early-phase products (steel, RMX stone) and not yet the mid-phase (AAC) or the finishing-phase (marble) demand, that will follow with a 6-12 months delay.
    Combustible costs: The energy markets (oil, coal) worldwide experienced in Q2 2022 the highest price hikes seen in recent history, on top of the already significant increase in 2021 and Q1 2022, this is partly attributable to the market distortion of the Ukraine conflict and related western sanctions on Russian oil, gas, and coal, but partly to the overheated economic activity in parts of the world where the 2020/2021 stimulus was exceptionally strong. This energy price shock (that impacts direct combustible costs, but also raw-material limestone extraction expenses, internal and external logistics expenses, and more) necessitated a steady and significant increase of all burn product prices, that are at this point in average +20-30% above last year same period.

Golden Lime Public Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

2

FOR PERIOD ENDED 30 JUNE 2022

The core BURNT PRODUCT (quicklime and dolomitic lime) sales volume experienced in Q2 2022 a volume increase, due to overall stronger domestic and export market demand. The revenue realization, combined effect of volume and price, increase in +30% range.

The crude AGGREGATE product costs increased significantly, due to the diesel price increase, and the effect of inflation on other costs, while sales showed some improvement of the RMX and flue gas treatment related chemical stone sales, still the performance was below of same quarter last year. Also, TMC still carries elevated stock levels, something that will only normalize after full recovery of the construction activity in Thailand, until that the WC carried in finished crude products will remain high into 2023. The improvement capex to boost the RMX stone purity above standard market levels is expected also bear fruits in Q3 and Q4.

The milled GCC markets performed adequately, demand for both GL and TMC milled limestone products is improving, with new entrants to the market on the demand side further improvement is expected.

The MARBLE activity of TMC is experiencing continued headwinds: demand was still low, and even if construction projects restart in H1 2022, with an improving Thai economy, the effect on ornamental stone will be delayed by 6 to 12 months

Beside the SOLAR (I) plant in operation for 1.5 years now, in May regular operation of the Solar (II) phase also started, with 3rd phase being considered for H2 2022 project start (operations from 2023) As result of the FLEX-FUEL I program, GL was able to use in Q2 multiple solid fuels, overall balancing pricing trends between petroleum-coke,raw-coal, and milled-coal in the mix. Going forward further diversification is planned under the FLEX FUEL II program launched earlier this year.

The ENGINEERING division revenues and margin realization of GLE on external markets (to a Thai domestic and an Indonesian export customer) continued to impact the consolidated result positively.

2.Outlook

The FUEL combustible cost will undoubtedly continue to represent the key challenge in all FY 2022 and 2023. GL will use all possible measures to mitigate this cost increase, including FLEX-FUEL I and the FLEX FUEL II projects diversifying its energy mix, but will inevitably need to continue to pass the any energy cost effect further to customers also in Q3 and beyond.

GL will continue to pursue its NEW PRODUCT DEVELOPMENT initiatives for the steel and construction markets, as well as and DOWNSTREAM projects into sugar, chemical and steel customers in H2 2022 and in 2023, with revenue impact expected next year only.

We expect in H2 and 2023 a gradual improvement in the Thai macro environment, despite global recession fears an improving GDP in Q4 and Q1 next year, on a supposedly rebounding tourism sector (15% of the economy) and domestic demand. With a plateauing steel and chemical demand, a gradually improving construction activity, forecasted strong 2022-2023 sugar season (over 100Mt cane) we expect a generally a strong H2 2022 and Q1 2023, that with a supposedly returning marble demand in H2 2023, makes management look optimistically into the near future of Golden Lime and Thai Marble.

Golden Lime Public Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

3

FOR PERIOD ENDED 30 JUNE 2022

3.Financial highlights (based on Thai FRS)

Q2 2022 Income Statement Summary as of 30 June 2022 compared to Q2 2021:

Q2 2022

Q2 2021

Q2 2020

YoY change

YoY % change

Q22022 vs Q22021

Q22022 vs Q22021

Unit: Million Thai Baht (THB)

Sales and service income

382.10

289.81

231.92

92.29

32%

Other income

1.52

1.15

177.58

0.37

32%

Total revenues

383.62

290.96

409.50

92.66

32%

Cost of sales and services

287.43

214.77

171.51

72.66

34%

Gross profit

94.67

75.04

60.41

19.63

26%

Gross profit margin

25%

26%

26%

SG&A

63.19

59.09

49.30

4.10

7%

EBITDA

67.78

55.06

220.72

12.72

23%

EBITDA margin

18%

19%

54%

Depreciation and amortization

34.78

37.96

32.03

-3.18

-8%

EBIT

33.00

17.10

188.69

15.90

93%

Finance cost

-8.46

-9.92

-8.03

-1.46

-15%

Income tax expenses

1.39

0.68

-3.39

-0.71

104%

Net income for period

25.93

7.86

177.27

18.07

230%

Earnings per share (THB)

0.09

0.03

0.59

0.06

230%

H1 2022 Income Statement Summary as of 30 June 2022 compared to H1 2021:

FY 2022

FY 2021

FY 2020

YoY change

YoY % change

FY2022 vs FY2021

FY2022 vs FY2021

Unit: Million Thai Baht (THB)

Sales and service income

772.75

632.45

526.19

140.30

22%

Other income

3.63

2.38

178.39

1.25

53%

Total revenues

776.38

634.83

704.58

141.55

22%

Cost of sales and services

573.77

455.19

379.63

118.58

26%

Gross profit

198.98

177.26

146.56

21.72

12%

Gross profit margin

26%

28%

28%

SG&A

129.10

121.69

107.30

7.41

6%

EBITDA

143.69

134.05

278.21

9.64

7%

EBITDA margin

19%

21%

39%

Depreciation and amortization

70.18

76.10

60.56

-5.92

-8%

EBIT

73.51

57.95

217.65

15.56

27%

Finance cost

-17.47

-18.85

-13.36

-1.38

-7%

Income tax expenses

2.09

-1.51

-7.74

-3.60

-238%

Net income for period

58.13

37.59

196.55

20.54

55%

Earnings per share (THB)

0.19

0.13

0.66

0.07

55%

Golden Lime Public Company Limited

MANAGEMENT DISCUSSION AND ANALYSIS

4

FOR PERIOD ENDED 30 JUNE 2022

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Golden Lime pcl published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 13:13:20 UTC.