ADB Opportunity Day 2 nd Quarter and 1 st Half Year 2019 Business Performance August 9, 2019

1. ADB Opportunity Day 2nd Quarter and 1st Half Year 2019 Business Performance August 9, 2019

2. Agenda 1 Company Overview 2 Performance of ADB for 2nd Quarter and 1st half year 2019 3 Business Update

3. Company Overview 1

4. Company Overview APPLIED DB Public Company Limited (ADB) was established since 2005, from the joint venture between D.B. Chemical Co., Ltd. (1983) and Applied Chemical Industry Co., Ltd. (1985). In 2017, The Company has listed on Market for Alternative Investment (mai).

5. ADB Our product line includes plastic compounds, professional adhesives, silicone sealants, and DIY products for household end-users. Adhesive & Sealant Plastic Compound • ADB Adhesives are specially manufactured to meet international standards for industrial use and household use. • We sell under our house brand and OEM • for customers well-known brand names. • ADB is one of the leading manufacturer of plastic compound especially for wire&cable industry. • Wire & Cable PVC compound • General Grade PVC • Medical PVC Compound • Polypropylene split yarn (PPY) • ADB Sealant is currently repackaged from bulk package and resell in smaller package. • Future project supports the expansion of adhesive & sealant product line corresponding to increasing demand and profitability. *Products manufactured by the Company under OEM brands cannot be publicly disclosed due to non-disclosure agreements and confidentiality

6. Performance of ADB for 2nd Quarter and 1st half year 2019 2

7. Financial performance for Q2/2019 Revenue structure The revenue in Q2/19 decreased significantly from SIL products and DIY products sold to oversea markets; while the compound has rebounded from the lowest point in Q1/2019 709 359

8. Financial performance for Q2/2019 Revenue structure (domestic / international) During the 2nd Quarter, the growth of export was led by revenue from Adhesives delivered to Nigeria customers; followed by DIY delivered to Kenya, Vietnam and Myanmar; while Silicone products has been experiencing price competition from material price drop from major suppliers (Unit: million Baht) 1,421 1,412 1,372 1st Half Year 29% 29% 30% 709 632 28% 25% 359 71% 71% 325 70% 29% 27% 72% 75% 73% 71%

9. Financial performance for year Q2/2019 (Cont.) Revenue structure - Plastic compound (Unit: million Baht) The increasein sales of Plastic Compound in Q2/2019 for THB (50) million or -24% leading by increase in Medical products sold to partner distributor (Showa) and strategies to capture markets through low-to medium grade manufacturers. 724 712 693 25% 26% 29% 1st Half Year 2nd Quarter 75% 74% 377 71% 342 29% 28% 29% 71% 181 164 72% 71%

10. Financial performance for year Q2/2019 (Cont.) Revenue structure - Adhesive & Sealant • The slowdown of shoe industry causing lower sales orders from local adhesive dealers. • From the Sealant BU Total Revenue of THB 167 million, Sealant contributes the highest with THB 82 million, followed by DIY with THB 70 million and trading with THB 14 million; while Sealant (in bulk package) was only THB 2 million (Unit: million Baht) 706 686 680 1st Half Year 56% 53% 56% 332 289 195 61% 58% 145 48% 44% 43% 54% 39% 42% 46%

11. Financial performance for year Q2/2019 (Cont.) Gross profit & gross profit margin • The significant drop of gross margin in is mainly due to: • The increase in pricing competition in Compound business led the lower GP • Lower margin of DIY, Sealants due to fluctuation of raw material price (Unit: million Baht) 17% 1st Half 1st Half Year

12. Financial performance for year Q2/2019 (Cont.) Gross profit & gross profit margin - Plastic compound • Significant drop of Gross Profit and Gross Profit Margin of Plastic compound business from • Slow demand of General Grade PVC and Wire & Cable PVC and delay of infrastructure projects • Price competition from the compound markets (Unit: million Baht) 2nd Quarter 1st Half Year 12% 32

13. Financial performance for year Q2/2019 (Cont.) Gross profit & gross profit margin - Adhesive • The gross profit margin for adhesive was lower in Q2/2019 compared to Q2/2018 due tomarket slowdown in Local Distributor markets and price competition (Unit: million Baht) 2nd Quarter 1st Half Year 19% 1st Half

14. Financial performance for year Q2/2019 (Cont.) Gross profit & gross profit margin – Sealant & DIY • The gross profit margin for adhesive was lower in Q2/2019 compared to Q2/2018 due to the higher cost of the main raw materials for adhesive & sealant product, as well as pricing competition from both domestic and oversea markets (Unit: million Baht) 2nd Quarter 1st Half Year 16% 1st Half

15. Financial performance for year Q2/2019 (Cont.) Net profit & net profit margin • The net profit margin for 1H/2019 is (26) MB The Net Loss was contributed from the NPM of Compound has Net Loss due to lower of GPM from pricing competition, and rising selling expenses and Sealant Cartridge segment as well as DIY due to the drop in revenue and GP (Unit: million Baht) 2nd Quarter 1st Half Year 2.8%

16. Financial performance for year Q2/2019 (Cont.) Assets • The decrease in asset size is contributed by • The significant increase in PPE in Q2/2019 mainly results of the new machines for new factory expansion of Sealant project and rack system for ADB warehouse • An increase of inventory was mainly due to materials acquired to support Q3-Q4 sealant project production 1,272 1,253 1,208 1,072 948

17. Financial performance for year Q2/2019 (Cont.) Liability As at December 31, 2018 and June 30, 2019, the Company had total liabilities of THB 667million and THB 719 million, respectively. In Q2/2019, ADB acquired Long-term loan from KBANK for THB 80 to replace short-term loan for Sealant Project (Unit: million Baht) 775 667 675 623

18. Financial performance for year Q2/2019 (Cont.) Shareholder’s equity The decrease in shareholders’ equity during Q2/2019 was mainly attributed to the net loss from ADB during the 2nd Quarter for THB (6) million and dividend payment of THB (6) million in May (Unit: million Baht) 585 586 202 202 202 297 273

19. Financial performance for year Q2/2019 (Cont.) Debt to equity The Debt-to-Equity ratio increased to 1.30 at the end Q2/2019, soared from 1.14 in Q4/2018 due to net loss from operation and increase in debt financing of Sealant Project (Unit: Times)

20. Business Update 3

21. Business 1: Plastic Compound Business Strategy Maintain and Increase Market share Cooperate with customer

22. Proportion of Plastic Compound The distribution channels for Plastic Compound for 1H/2019 include: 1) manufacturers 82% 2) distributors 18%

23. Plastic Compound Strategy • Effectively support Plastic compound growing demand in wire and cable industry. • Searching for new market opportunities such as medical grade plastic compound, automotive, electrical and electronic equipmentto expand customer base

24. Plastic Compound Strategy • Research and co-developing the product with customers according to their specific qualifications, applications and implications. ADB strictly complies with the EU’s Restriction of Hazardous Substances (RoHS) directive to avoid using restricted phathalate plasticizer.

25. Business 2: Adhesive Business Strategy Sale Revenue Growth Efficiency of cost of good sold

26. Adhesive Business Strategy Sale Revenue Growth Expand to new market Increase salesperson Investigate possibility to open new channel • Open new market • construction • Furniture • Automotive • Modern trade • E-Channel Maintain Market share of existing customer • Follow up all customers • Others • Others New product Launched • Automotive • OEM • Distributer • Furniture • low voc adhesive • hybrid adhesive • Green label product • Manufacturer • Shoes & Leathers * Ratio of revenue by sale channel (jan-jun 19) * Ratio of revenue by industry (jan-jun 19)

27. ADH Business Strategy 2. Efficiency of Cost of Goods Sold Find replacement materials Expenditure Saving Production Planning • Safety Stock • MOQ • Labor Cost • 7 Waste • Product cost down Inventory Planning Reduce the expense • Manage stock before expired • Manage NC stock • Manage stock that have been • stored for a long time • Electricity • Factory supplies • Office supplies • Admin & Selling expense

28. Business 3: Sealant & DIY Business Strategy *Focus on seeking new customer and close the deal with contacted potential customers both in bulk and retail packaging *Increase promotion programs with existing customers *Introduce new product

29. Sealant & DIY Business Strategy

30. Sealant & DIY Business Strategy

31. Sealant & DIY Business Sealant • Diversification • Market Development • Attending Exhibition • Extend OEM customer product portfolio • More focus in Construction market • Silicone sealant • Acrylic sealant • Hybrid Polymer Sealant • Constructing adhesive • (H Nail /Super Nail) • Product Development • Market penetration • Hybrid Sealant • H Nail – water base • Competitive Price • Intensive Sales Promotion Integrity & innovation & Win – win Orientation Private & Confidential

32. Outlook for the rest of 2019 1st haft of 2019 – Rough Challenging for the rest of 2019 Demand is coming back Business sentiment for 2nd half of 2019 more optimistic

33. Q&A ADB Investor Relations Section E-mail: adb_ir@adb.co.th Tel: 02-409-4040 Ext.1403 Website: www.adb.co.th

34. Thank You • The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Applied DB Public Company Limited (“ADB” and shares in ADB, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. • -This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which ADB operates and general achievement of ADB business forecasts, which will cause the actual results, performance or achievements of ADB to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. • This presentation has been prepared by the ADB. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the ADB or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. • This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. • -This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.