Good morning, ladies and gentlemen. Welcome to SCG Analyst Conference for the fourth quarter of 2025. I'm Harini from the investor relations team, and I'll be your moderator for today's session. We are pleased to welcome all the guests who join our session for both on site and online. For those who join online, kindly change your registered name to be your name_your company, so that we are able to recognize. Today, our management are here to provide you the fourth quarter result and important business updates and outlook. After the presentation, we'll open the floor up for the questions. Today's presenters comprise of SCG management led by Khun Thammasak, the CEO of SCG, who will walk you through consolidated results and provide highlights of the SCG Cleanergy. We have Khun Sakchai, the CEO of SCG Chemicals.
Next, we have Khun Surachai, President of SCG Cement and Green Solution. Khun Wiroat, President of SCG Smart Living and SCG Distribution and Retail, will also be presenting SCG Decor. Followed by Khun Chantanida, CFO of SCG, who will present the financial parts and also SCGP. We have Khun Wachirachai, Chief Sustainability Officer, who will present the sustainability highlight. Now let's start for today's presentation, beginning with Khun Thammasak.
Good morning, Krap. Again, this first analyst call conference of the year. This year is very interesting year, which we'll discuss on what is going on and what is the implication to SCG business strategies. But before we get into that outlook and our plan for this year, let's step back a little bit to 2025. I have to say, 2025, it's one of a very interesting years. Somebody said to me that 2025 is a year of the beginning of the world order breaking down, which is probably true. We will see a changing in the world order in a very rapid scale. Anyway, if you look at the global events, the global trade and environment are still very, very volatile. If you remember, the first half of 2025 see a lot of front-loading.
You see that the GDP growth is still quite okay, but it come from the front-loading. Also the deflation as cheap product price from China flooding into Southeast Asia. You see that the price complex and slow down especially in Q4 of this year. Overall GDP, if you look at it still stay at 3.2% compared to 3.3%, which look like it's still okay. But if you look in detail, you're going to see a drastic change from quarter to quarter. Geopolitical tension still very volatile, and even more volatile this year. That why you see the energy price fluctuate drastically. Chemical business still in trough cycle. If you look at the spread of the key product, HDPE- naphtha, and PP-Naphtha, you could see that it's weakened over the years. This is something we are facing on the global setup of last year.
On the domestic, the Thai baht appreciated THB 2.4 per US dollar on a year-on-year basis. This is quite significant for the dollar surplus business. The sluggish Thai economy, Thai GDP growth stood only at 2.2% compared to 2.5% a year earlier. That is the situation we are facing, but if you look at our result, I have to say, on the cash flow, which is something we are focused on over the past few years already, we ensure that we are going to have a strong cash flow position. I would like to emphasize on the adjusted EBITDA generation, which is THB 55 billion . Why is that? Because this is the EBITDA that generated from the normal business before we take the decision on the restructuring. Restructuring is something that we are mindfully executing to make us stronger. That is why I would like to present this.
This THB 55 billion is something that is better on a year-on-year basis. Earnings, if you adjust before the restructuring cost, we stand at close to THB 5 billion . In Q4, with the slowdown of the economy and also the chemical cycle still touching on a very complex gap, as well as the turnaround season for our cement plant, that is why you see a slightly negative on the earning in Q4. Anyway, on a full year basis, our net debt still declined. This is the homework that we have to submit to you that this is a restructuring that we try to do. We want to make our balance sheet stronger, so we reduce net debt year on year. This is the second year that we are reducing our net debt. Net debt to EBITDA stands at 5.5x.
If you remember at the peak, it was 6.3x. Now we have moved it down even though the business context is still very tough. We still continue to lean our working capital further. If you remember last time we were talking about THB 30 billion, now we lean another THB 10 billion . This is something we are working tirelessly to make sure that our end-to-end supply chain is lean, but not just lean. As you know at the moment, the lean supply chain is probably less important than a resilient supply chain. That is why we are mindful to manage this kind of lean supply chain. Our cash on hand is still pretty strong, THB 32 billion . CapEx, we are tightening our capital expenditure. We targeted, at the beginning of the year, around THB 35 billion-THB 40 billion. You could see that we used only THB 30 billion.
This is something we are very mindful on this one. Oops, sorry. Come, yeah. Dividend from our investment sector is still pretty strong. You could see that we registered THB 16 billion, against 2024 of THB 14 billion . That is a pretty strong cash flow generation from our investment. Divestment. This is another homework I promised over the years. I have to say that, still on track. Still on track. We still are moving steadily to achieve our milestone, and we will come back to you to report this later on. As we have a very strong dividend, and we have a strong EBITDA generation adjusted before the restructurings, that is why we are very confident to take care of the shareholder on the dividends THB 5 per share. The interim dividend is THB 2.5 that we already paid, and the total dividend will be THB 5.
The payout ratio is 43% based on the reported net profit of THB 14 billion. Let's touch a little bit on the restructurings because 2025 is the year that we stop loss of many business to make sure that we are healthier into the future. We mindfully take the restructuring expense amount to THB 5.3 billion, which is significant. It will yield a recurring saving for us THB 4.3 billion. That is something that if everything else are equal, this year we are stronger on the THB 4.3 billion recurring saving. That's why we have to do it. Of course, it's a very difficult decision. For example, NocNoc that we are fighting over the past few years, and we have a really key talent people are working on this online platform. So very well accepted by the consumer and seller.
However, if you really want to sustain this platform into a regional or global platform, it still requires a lot of cash to be burned. That's why we carefully make a decision on this. We make a decision that we stop this one, and then the impact to our bottom line on THB 1.8 billion. But the recurring loss that the platform generate on our portion only, which is 50%, is around THB 500 million. This is something we take the action on this. Another thing that you see in the Q4 that we try to do is, we decide to stimulate our distribution and retail model in Thailand. Instead of using the centralized management from Bangkok to push the product and the category into the outlet, we think it's wrong.
We have to change to a pool channel where our outlet, the localized outlet, can call the products and the inventory from the center. In the past, there was a mismatch in the inventory pushing from the center to the local. This is something that we have to change, and we have to create a very resilient and adaptive our channel. That's why we have to take this adjustment. Khun Wiroat will explain more in detail on our strategies. To really clean up and make it into a very localized and pool channel. We take the expense on THB 1.359 billion. That's mainly on the inventory and associated to those department. It will create a future saving on the THB 400 million per year. Okay.
We still commit on the HVA and the Smart Value product, which is our main product strategies to cope with the current situation. That is the highlight I would like to emphasize. If you move into the financial result, the sale revenue in the Q4 is THB 126 billion and dropped 3% year-on-year. As I said, Q4 is a tough quarter for all our business. In full years, our sale decreased 3% also. We register at THB 496 billion. Even though we target to have more sale revenue at the beginning of 2025, but if you look at the volume actually increased. Tons increased. However, the price decreased. This is translated into a lower sale by 3% year-on-year. If you look at the destination, something I would like to point out is ASEAN is still vibrant area of growth.
We increased the sale to ASEAN by 2% year-on-year. You see that the shift in the market mix. U.S. has still remained at 1%. Those who still buy from us, still buy from us. Even though there is a lot of turmoil on the tariff, our products still have some uniqueness that still can sell. The next one is on the revenue by segments. You could see that chemicals still represent 42%, packaging 25%, and remaining is cement and building materials. You could see our segments sale dropped year-on-year except the cement and green solution. If you look at EBITDA is a little bit messy, but I just want to point out that if you look at the red figure, THB 55 billion adjusted EBITDA. This is before we take restructuring cost.
Compared to 2024, also adjusted EBITDA because we have to take the interest and swap gain with this one time out. You could see that the core recurring EBITDA has increased healthily 6%, amid a lot of depressed situation, mainly because we take the restructuring. When you cut loss, you stop loss, you become stronger. This is something that we are mindful of doing, and I think we move to the right direction because our core EBITDA generation has been healthier on the year-on-year basis. On the profit, you could see that the registered profit on the year-on-year is THB 14 billion. Of course, the big chunk is come from the association of the Chandra Asri, which are non-cash yet, but we are endeavor to working to finish, to complete this deal. Later on, when the deal make progress, we can discuss in more detail.
But in general, our adjusted earning, it is close to THB 5 billion . Compared to last year is THB 5.9 billion. But if you look at the context that we take the full year of the Long Son depreciation and the interest. That is why I always point out that please look at us at the EBITDA generation because the net profit will take this depreciation and interest hit to our bottom line. So that is the review of overall 2025. May I pass to P'Sakchai.
[Non-English content] Good morning. Let me start with the highlights of the chemicals last year. The margins, look at the PE margin is quite flat. But PE margin was deteriorated. Quickly look at the financial performance the last year. Adjusted EBITDAs grew by 23% year-on-year, attributed to efforts on efficiency enhancement and cost saving. Also, LSP started up in August 2025 successfully with efficiency improvements. That is our highlights. I would like to move to the details. The olefin utilization rate last year, the industrial average is a little bit lower than SCG Chemicals or three quarter running. We, on average, we run about 85% up to 90%. Look at the spread I just mentioned on the HDPE. Actually, last year is the year of the massive capacity from China coming on stream, both C2 and C3.
You look at the gap of the last years, compare with 2024, it seem flat. We always believe the industrial gap not lower than this, because if the gap is lower than this, you will see the more capacity shut down. Last year also, several capacities also announced almost every month. Later, I will show you. PP gap is a bit lower. Actually, the first three quarters, in line with the PE, the gap. Only last quarter, because of the very high competitions of the propane market, U.S. and Saudi Arabia try to compete in the market share in Asia. That is why propane price at the fourth quarters dropped down sharply. That make the PDH in China can utilize capacity more. That make the PP supply flooding, make the PP price in the market down. That is why PP-Naphtha gap tumbles lowest at $250.
Average, the whole year's PP-Naphtha is about $309. PVC chain improve a little bit from the last year because of the ethylene price is down, make PVC chain gap is improved to the 2024. Oil price is lower than the year before, $68 per barrel. New supplies, in short, is a very high new capacity coming on stream. Demand situation is just moderate, align with the GDP growth. This is the ethylene capacity. Last year, 2025, 14 million tons, the new capacity. Anyway, it also have the capacity that some small ball, some is shut down or even they postpone the turnaround. All in all, it is about 5 million tons. Net new capacity, about 9 million tons. But also the demand globally is also increased about 6 million tons or 7 million tons. So actually last year, the oversupply a little bit more.
Look at this year, ethylene capacity is much less than the last year. Also announce capacity that will be added into the shutdown capacity, another 5 million tons. Net new capacity this year is lower than the last year, is about 4 million tons. On top, if you look at the demand side, as I mentioned, 7 or 8 million tons. It seem this year, market is a little bit tighter than the last year. All in all, is still oversupply. Look at the sale volume the last year and SCG Chemicals after we starting up LSP, we have another 200,000 tons in the last quarter. That is why last year, total sale volume is over 2 million tons. Look at vinyl chain, is the same.
The gap is better and also, even though the last quarter we have the VCM one shutdowns, the operation in the last quarter less than the quarter three, but all years, total sale is higher than last year, up to 730,000 tons. Financials, EBITDAs. Look at adjusted EBITDAs, excluding the LSP and all one-times. You see the EBITDAs, mainly the operation in Thailand and existing operation in Southeast Asia. Adjusted EBITDA, we achieve THB 11,600 million. Even those we reported EBITDA is about THB 4.1 billion. Look at profit. Profit also inline with EBITDA's adjusted profit is higher than the last year. The profit adjusted is about THB 1.2 billion. Anyway, we reported net profit that is including one time, some item is positive, some item negative. All in all, reported net profit is THB 1.46 billion.
What we have done is our core strategies last years. The first one, as I already mentioned in the beginning of the last years, we have to control cost and also improve the efficiency. We achieve about THB 1.8 billion for cost saving from the operations. The second strategy is very important during the very high competitions, the optimization in the whole chain, from the feedstock. The feedstock, look at the last quarters, gas prices have dropped down. Our asset, we try to maximize using gas, especially LSP. LSP, the last quarters is quite advantaged in comparison with the other naphtha cracker because we can utilize gas up to over 80%. We also optimize the product portfolios and also try to allocate the products to the area that we can get higher net back. The third strategy is HVA.
HVAs, we have to try hard to maintain the HVA portion. Last year, we still achieved 60%. It means some of the commodity, some of the old HVA turn to be commodity. We have to add the new products, the new HVA. That is why we can maintain 60%. This contributes to the price and the margin. There is also discipline on the cash management. We did well, especially the working capitals. Last year we also reduced the working capital significantly, about THB 5 billion. One of the commitments, try to divest the asset that relatively less cash return. We are doing. Of course, we have the small unit in the middle of the last year. That is a recycle in Kosovo that is already closed down. The divestment, now we still try hard to deliver our commitment.
LSP, just at a glance, we started in the second half of August last years. We fully operating with approximately 90% run. As I mentioned at the last quarters, we can utilize the gas over 80%. The LSPE, we looked off it to receive ethane in the year 2028. That is on track, mean on budget and on schedule. The plan, now we already complete the two tank of the ethane. Completed in term of the structures and also the rooftop. This is another small unit, but is really great achievements. We try to develop so-called chemical recycle or advanced recycle. This is the world trend. In the beginning, we quite struggled to run this plant continuously. But the last year, we can achieve run this unit over four months. So it means we can have the sizable recycle naphtha to feed into our crackers.
This is also can serve the brand owner. This year we will run more and with hope for the whole year, we will get the more clean naphtha and to support to the customer. This is the outlook. I think everyone would like to hear what happened and what is going on for the petrochemicals this year. Starting from the beginning of this year, some positive factors, what we have seen. Of course, the supply cut more from December last year and also the beginning of this year. Several new company or several new cracker, they announced to cut the capacity more. For example, Formosa. Formosa, there are three crackers, combined capacity about 2.1 million tons. Now they announced to mothball one line at 700,000 tons, and also announced will shut down another line in the middle of this year.
It means about 2/3 of their capacity will be shut down. Apart from Formosa and also ExxonMobil Chemical, you probably know from the last year. ExxonMobil Chemical, they already announced to close down their cracker in Singapore, the end of the first quarter of this year. Several activities in Korea is also, they used to announce to cut the capacity in the whole country about 25%. But in fact, they cut the capacity more than 25%. This is the factors of the capacity cuts that will release the supply ample in the market. Also, the news of the China stimulus package. This also can be considered as the positive factors, because especially the real estate, the construction sector in China, we hope that after the stimulus package, they will improve. If the construction sector improve, that also favor to the polymer demand, especially PVC.
Also, the Chinese government also announced the regulations, especially PVC export. They used to rebate about 13%, but they announced to stop these subsidies from April 1st. It means that the PVC producer in China will have to absorb the costs higher. Immediately after this news released into the market, PVC price jumped about $40-$50 within a few days. Also, China is also trying to tax on the domestic naphtha. This is under considerations. This is also another good news for the other, but not the producer in China. Of course, the olefin chains, naphtha price still are volatile. You look at the geopolitical. Every time the Iran, U.S., the news of the war is getting serious, that also makes the energy price globally increase, including the naphtha price. In the beginning of this year, actually, naphtha price is quite soft.
But after the situation of Iran, U.S. getting more serious, immediately the crude oil price is higher and also naphtha price is higher. Anyways, if you look at the big pictures, supplies of the crude oil will be higher this year. Especially if the political tension relieve. Venezuela, Iran, hopefully the longer terms they will be peaceful. That also contributes to the feedstock price. We all really hope this situation will make the naphtha cracker is more competitive. Okay. That's all for my part. I would like to pass to Nimlaor. Thank you.
Thank you. Good morning Krap. I would like to start from the top three in 2025. In 2025, EBITDA grew by 25% year on year, driven by a clear focus on low-carbon cement products, cost saving, and continuous improvement in our operation. We also successfully launched low-carbon cement Gen 3, or we call them calcined cement. This is the newest version of our low-carbon cement. That's fully aligned with our net zero roadmap and ready for the upcoming carbon tax in the near future. The sale volume growth across ASEAN market, so we can capture this opportunity also. Move on to the market situation. For the Thai market, cement demand in the quarter four decreased by 2% year on year due to soft demand. You know that we have flooding in central and southern Thailand in the quarter four.
However, for the whole year, demand increased by 2% year-on-year, mainly from public projects. The market in ASEAN also improved compared to the same period last year, particularly in Vietnam and Cambodia. Revenue from sale in the quarter four, revenue declined slightly at 3% quarter-on-quarter due to soft demand that I mentioned earlier. However, for the whole year, sale revenue registered at THB 82.7 billion, grew 1% year-on-year, mainly from price increasing. For the EBITDA in the quarter four, registered at THB 3.2 billion. For the whole year, EBITDA registered at THB 14.4 billion, increased by 25%, mainly from sale revenue growth and cost reduction and selling price increasing. Move on to the profit. The profit for the period registered at THB 1.2 billion.
For the whole year, registered at THB 5.8 billion, increased significantly year-on-year, mainly from the same reason that I mentioned earlier. For the business highlight in the quarter four, we led the transition to low-carbon cement in Thailand and ASEAN. We achieved the penetration rate of 82%. We also became the first mover in Thailand and ASEAN for adoption of calcined clay cement or LCG, low-carbon cement Gen 3. This help us to reduce carbon emission by over 30%. In order to gain more market share in the residential segment, we launched a smart value product in Thai and ASEAN market by optimization between quality and affordability. Another highlight on innovative construction material. We have expanded the application of our ultra high performance concrete technology across a wide range of infrastructure projects.
This technology offer superior strength and longer service life, while also supporting cost efficiency and lower environmental impact. For the business outlook, we foresee a continued growth in Thailand construction market in this year, driven by public projects, while we see continued growth in the regional also. For our effort, we continue working on cost reduction, optimizing our business portfolio and expanding our low-carbon product. So that all for my part. Thank you. May I pass to P'Wiroat.
Good morning, everyone. I would like to address three highlights for the SCG Smart Living and Solution and Retails. First, we are undergoing the strategic business restructuring, designed to drive long-term operational efficiencies. Second, we are seeing Vietnam emerge as a primary growth engine within the ASEAN market. Finally, regarding our core strategy, SVP now accounts for THB 2,800 million in sales, making a significant milestone of our portfolio's transition. For the outlook in Thailand, the market situation first is non-residential segment continue to grow from increasing UI application, while government project shows steady demand. However, residential segment is softening due to the high household debt and loan rejection. For regional market, Vietnam showed strongest demand from the pre-holiday construction rush. In term of the financials, this quarter revenue experienced a decline. However, our performance still outpaced overall market in challenging environment.
In terms of the EBITDA, our business dropped in both Q4 and all year last year. It was primarily driven by retail business streamline efforts aimed at the long-term efficiencies. For the net profit, it was impacted by streamline retail business. However, excluding impact of retail streamlining initiative, overall performance remained positive for both quarter and full years. Now turning to the SCG Smart Living business highlight. This year we have prioritized two pillar track, expanding our market reach to innovation and driving cost discipline. Starting with our SVPs, we successfully scaled product range of distribution channels, which led to SVP accounting for THB 2,800 million in sales, reflecting 2% of year-on-year growth. In terms of the new development, we have launched CPAC Smooth Plus HVA roof to offering durability and modern and smooth finish. Finally, our focus on operation excellence remained cost strength to deliver the saving around THB 286 million.
For the SCG Distribution and Retail focusing on growth to technology and integration. First, we have integrated our loyalty program into one CRM through SCG Family Plus+ to deliver a better customer experience. This allows seamless point conversion with our partner across our distribution channel. In addition, we are enhancing homi, that AI feature, for the better understand customer need. Essentially, the value of our customer is accurate, simplified, and smoother journey. Most importantly, it helped us to improve lead to sales. In terms of the SCG strategic direction for the retail, we are streamlined the business, improve flexibility and responsiveness to local demand. Our direction is focused on the four pillar. One is the shifting from centralization to localization and allow us to leverage our dealer expertise and local advantage to respond more efficiency to market specific need.
Consequently, this localized approach even driver a reduction of overall inventory level by minimize demand and supply mismatch at the local level. We continue to expand our product and solution offering with strong emphasis NDD, HVA, SVP. Finally, we are strengthening cost competitiveness to more efficiencies like merchandising, sourcing, and logistics support from the SCG. That's all the strategic direction for the retails. For the outlook, we saw that Thailand is in the election period in this year. The election momentum, we expect to keep the market stable with the government investment as a key driver. Regionally, Vietnam is set to expand, driven by real estate cycle and public infrastructure. To navigate this, our internal effort and priority will focus on four key areas. First, we are optimize our portfolios with smart value product to reach more customer.
At the same time, we continue to drive strategic cost efficiency and lean automation to sharpen our competitive edge. We are also strengthening our core business capabilities while streamline the retail portfolios. Finally, we will accelerate AI and digital adoption to enhance our operational efficiency across the board. For the SCG Decor, the EBITDA exclude non-recurring is THB 3.3 million, and net profit is THB 1,010 million, increased 4% and 50% year-on-year respectively. If we were to exclude Thai baht appreciation impact, EBITDA would increase 7% year-on-year. For the revenue in Q4 basis, SCG Decor registers revenue of THB 5.3 million on year-on-year basis. Overseas revenue was impacted by appreciate of the Thai baht. In terms of the profitability, SCG Decor has a EBITDA of THB 746 million and a net profit THB 188 million increased year-on-year from continuous effort in cost reduction.
Excluding non-recurring item for FX impact, EBITDA net profit grow gain even positive. That all for my part, sir. [Non-English content]
Good morning. Let me start with the recap of the financial performance of SCG Packaging. Revenues for full year was about THB 124 billion, down 6% year-on-year. As Wiroat mentioned, I think the volume has increased because of we are seeing a strong demand, especially in the Asian region. The price has went down more. That's why the revenue was down by 6% year-on-year. However, with the lower raw material price, coupled with the fact that they have continued to work on the efficiency in terms of the cost management, EBITDA and net profit improved year-on-year. EBITDA was about THB 17.2 billion, with the net profit of about THB 4 billion. They were able to increase the EBITDA margin by 2%- 14% last year. On the Q4 figures, I think pretty much follow the same pattern. Sales revenue was down, while the EBITDA and net profit improved QoQ.
Moving on to the financials. Actually, this page, I think the highlight is that we have keep our promise and our commitment that we will focus on the financial stability and the deleveraging. Top left on the working capital, you have seen that we have been able to bring down the working capital by about almost THB 11 billion year-on-year, and THB 27 billion from the middle of 2024. You can hear from all the PP business unit that this is something that we have been implementing across all the business unit, and that's why we would be able to achieve the declining working capital. Net debt also reduced about THB 15 billion year-on-year. Now we have net debt of about THB 280 billion, with a net debt to EBITDA of 5.5 x.
Cash on hand remains strong at about THB 52 billion, while we have been trying to working around in terms of the interest cost, and we were able to reduce the average interest by 0.2% down to 3.3% last year. This is the net debt to EBITDA that I would like to highlight. Because P' Thammasak mentioned about the adjusted EBITDA, because we have implemented a number of restructuring last year. So if we were to adjust using the adjusted EBITDA to calculate our leverage, actually it's at about 5.1 x. Another commitment on the capital expenditure spending. We ended up last year at about THB 30.7 billion, and you can see roughly one third of that was spent for the maintenance and the cost saving. This year, we would expect that the capital expenditure spending would roughly be around the same at about THB 30 billion.
So that conclude my part, and pass on to P'Wachirachai .
Good morning. I would like to provide some highlights on sustainability. On the first slide, in 2025, our greenhouse gas emission end up at 29 million tons, which is in line with our Science-Based Target. We continue to track this over the years. To do so, to initiate the decarbonization initiative toward net zero, we need collaboration. One of the highlight is our Saraburi Sand Box, which is the model that we proactively engage with the public-private people partnership in Saraburi province and have a very good progress. This initiative now being registered and recognized by World Economic Forum, which is presented earlier this month at Davos as a part of the examples of process to collaborate to achieve net zero pathways. Other highlights include the initiative which is in line with inclusive green growth to collaborate with others, to push forward the decarbonization.
This is what we call the NSAP or Natural Accelerated Program, which SCG collaborate with a lot of organization. You can see in the logo that many organization work with us to educate the participant, targeting SMEs on the issue of climate and net zero initiative. In 2025, we have 106 participants joined, most of which are SMEs. We have very good turns out and good feedback. We continue to do this program this year as a second batch. The last slide is another program targeting SMEs. We cooperate with Federation of Thai Industries, Department of Industrial Promotion, and Office of SMEs Promotion to do the open -house and invite SMEs to visit our factories to learn about how to decarbonization effectively. In the first season, we have 1,300 participants join the program and have a very good feedback as well.
This year we also have another second seasons and have a very good people join. That conclude my highlights on sustainabilities.
Next one is on the clean energies. This segment still keep going. You could see the strong demand for the clean energy, especially when you see the demand for the data center and the others advanced industry. We still accumulate the megawatt in operation. Now we register at 442 MW. In the pipeline that we are working to move into the operation is 461 MW. Beyond those solar megawatt, we are working on the heat battery, which we believe that this is a very piece of important technologies to store the surpassed energy. Because the building block of the smart grid for clean energy, you need a high-efficiency storage. The first second generation heat battery has been inaugurated in Saraburi last year. There are many new release on the 33 MWh storage capacity, and very as high as 97% energy storage efficiency.
This can produce the unit in Saraburi, it can produce 3 tons of steam per hour. That can run 24 hour. Whether you have daylight or not daylight, they can run 24 hours. And can reduce the 5,000 tons of the CO2 per year. That is the thing that we are demonstrate the latest technology in the Rondo Heat Battery. Apart from the Rondo Heat Battery, another thing we are still pushing forward, and I think it's very important for Thailand, is the smart grid. The smart grid, which is the backbone of the renewable energies distribution. We are pleased with in term of the SCG strategies, we are pleased with the new solar high-efficiency perovskite. That one we are in developments on that part. And of course, the GenAI for forecasting to tuning the clean energy generation.
BESS, that we already test the model with Toyota. The latest one is on the grid forming optimization. This a little bit technical work, but, again, I just want to register briefly, then later on we will open it up and see how it's important for the modern energy sector in Thailand. That is the progress of the clean energy. Overall, if you look at the outlook for 2026. 2026 is probably another, in my opinion, more volatile years compared to 2025. Everyone are pointing out that the slow now in global economy, slow now in Thai economy, that's something we begin the year with this type, the onset. However, one thing that we start to see is everyone are seeking out to find new opportunities in the volatile world. You see that very crowded World Economic Forum in Davos this year.
Not just to listen to Trump, but bilateral meeting is fully booked and everyone are seeking to find bilateral agreement and develop the business around the world. For Thailand, we also join Deputy Prime Minister Anutin to pushing Thailand on the global stage to present the attractiveness and potential of Thai sector, Thai economic sector and Thai consumer to international investor. That is something we are do our part. If you look at in term of the SCG strategies, I just want to highlight three thing. One is the Vietnam. Why it has to be Vietnam? Actually, a broader picture is ASEAN. You already see that amid turmoil in the polarized world, we are double down on ASEAN, which is a very high economic growth. We grow 2% year -on -year and especially in Vietnam. Vietnam still have a very good steady growth.
Of course, they have some inherent problem within Vietnam, of course, that we recognize. However, the opportunity is still there. We are planning to grow Vietnam from 9% of our sale last year. It could be 15% of our sale in 2030. That is the potential of Vietnam. If you look at our strategy this year, of course, I say the onset is very tough, but we still expect to perform better EBITDA in 2026 compared to 2025, mainly because we are stronger. That is why I think we could be very resilient in this year. The CapEx, we are still very disciplined on the CapEx expenditure because some analysts ask me why SCG do not invest a lot. Because we have a very strong cash flow. Because the world order is still very volatile. Something that quite sure bet is ASEAN.
You are fighting there and here, but ASEAN still quite calm and still growing. The sure bet is ASEAN, so that is why we grow ASEAN first. There are other areas that are still growing. Africa, still growing. But it is not there yet in term of the stabilities. Whether we ignore the Africa, no. We are still selling to Africa. We are doing a lot of business there. However, to make a major big investment, that has to be careful. That is what we try to do. Interest expense will be at approximately THB 11 billion. The action plan that we commit to the board is to create, improve structural competitiveness. That is what we try to do. You could see that last year we do a lot on stop bleeding, stop business, stop bleeding. That make us healthier. That is obvious.
Now we are changing the mode to build muscle, change the structural competitiveness. You could see the project like, oops. The project like LSPE, the ethane, that will enhance our competitiveness and low-carbon cement. There are many project that I haven't announced yet, but that is aiming to make us stronger into the volatile world. You have to see that sector like packaging and decor and chemical and the cement, actually these are still get going, continue to growth. Packaging, you see a steady 5%, 6% growth. Why? Because there are a lot of relocation to Southeast Asia in term of the capacity and industry relocate to Southeast Asia. Everyone needs packaging. That is why packaging still has a very healthy growth. SCG Decor is going to focus on the high value glazed porcelain capacity in, for example, in Vietnam.
That is a very clear target that we have to ramp up this glazed porcelain, which is high margin compared to the conventional ceramic. Of course, chemical already mentioned ethane project in Vietnam. HVA and the others thing that like the digital solution, the liabilities, the AI, that chemical has done very well on that. Cement still growing in Vietnam and also the low-carbon cement in the regions. I have to conclude that this year we still focus on the financial discipline. We still aim at lower our overall debt. Actually, we have option to increase the CapEx and get going quicker. However, the priority at the moment, we still feel that lower the debt first. In term of the cut closed non-performing business would be minimal because we already done whatever we should done in the last years.
Going forward, we will be more kind of building the muscle. I would like to say I try to build a six-pack, but actually, I cannot do it by myself. But the business six-pack, that what we try to do. And the emphasis on transformative project that I mentioned. Effort on the efficiency project, AI driven. AI is very important. That AI and robotics, this is something that go together, will be very important for industry competitiveness. HVA green product and smart value product, that P'Wiroat already explained that we are double down. Of course, along with the decarbonization.
It sound that the decarbonization may be on the retreat, but in my opinion, if you look at the global warming that really hit us, it just matter of time that the world will wake up and say, "This is important for our livable world." But anyway, we are stick to our gun. We are moving forward with the decarbonization, and we do in a way that is very practical. It is not like ballooning the cost. Actually, we do it in a way that make us more competitive and execute growth in Vietnam as planned. That I already explained. Krap, that is the all on the setup for this year.