1 Company Overview 1 Industry Condition and Competition 2 - PowerPoint PPT Presentation

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• Company Overview 1 • Industry Condition and Competition 2 • Financial Status 3 • Future Outlook 4 • Question & Answer 5 2

1 • Company Overview 3

“QTC Energy Public Co., Ltd., conducts the businesses of manufacturing and distributing custom made transformers to domestic and foreign customers and also provides various types of services ( Services) (Manufacturing and distributing)  (Transformers installs services) (Distribution (Small Power (Special  (Scheduled checks and Transformer) Transformer) Transformer) maintenance services)  Transformers repairs and maintenance services) 30 – 5000 KVA 5 – 30 MVA  Transformers rental services)  Its function is to transform Its function is to lower Earthing Transformer is high voltage from distribution voltage from power used spot grand of  (Transformers testing system of Metropolitan source distributed along transformer. services)  Electricity Authority or high voltage transmission Dry-Type Cast Resin is used Provincial Electricity Authority line before transmitting for indoor and restriction  Transformers and electrical to have lower voltage to meet electric current into area system consultancy)  with demands of consumers distribution system such Pad mounted is used for such as factories, dwellings, as wind farm ,Solar farm Group of customer are high buildings, etc. hospital, golf course, wind farm, export. 4

Business Operation Extra High Voltage 265 to 500 kV (mostly AC some HV DC) High Voltage72 kV (Distribution Transformer) (Small Power Transformer) (Special Transformer) 5

Customer Group Customer group Provincial Electricity Authority ( PEA ) , Metropolitan Electricity Public sector : Authority ( MEA ) , Electricity Generating Authority of Thailand ( EGAT ) Private sector : Project subcontractor group and industrial factories Export sector : Australia, Malaysia, Italy, Singapore, Spain, Mexico, etc. 6

We distribute our products under the name of QTC for both domestic and international market which includes Europe, Australia, Asia, Middle East, North America, Africa and ASEAN 7

Vision & Mission Vision Mission • QTC is a world-class • To meet our customer’s manufacture providing performance challenges world – class quality in of their electrical Electric Transformation system with products Equipment and Service and services of international standard 8

Head office 2/2 Soi Krungthep Kritha 8 (5).,Krungthip Kritha Rd., Huamark., Bankapi, Bangkok 10240 Tel: (66) 0-2379-3089-92 Fax: (66) 0-2379-3097 Factory 149 M. 2 Tambol Mabyangporn,Ampur Pluakdaeng , Rayong 21140 9

2 • Industry Condition and Competition 10

Industry situation: Local Forecast of electricity generating and peak demand from 2010 - 2030 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2553 2555 2557 2559 2561 2563 2565 2567 2569 2571 2573 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Peak Demand Installed Capacity Source: The National Power Development (2010-2030) ( PDP 2010) ■ Peak demand increased from 2 3 ,249 MW in 2010 to 52 ,890 MW in 2020, accounting for the average growth of 4.42% per year. ■ Installed capacity increase from 3 1 ,349 MW in 2010 to 65 ,547 MW in 2030, accounting for the average growth of 3.96% per year. ■ Thus, the EGAT, the MEA, and the PEA will have an expansion of installed capacity and the distribution system in order to serve with the rising demand. 11

Industry Situation: Oversea Average growth rate of global electricity generating from 2007 - 2035 5.0 4.0 3.0 2.0 1.0 0.0 United States Canada Mexico OECD Europe Japan South Korea Australia/ New Zealand Total OECD Non-OECD Europe and Eurasia Russia Non-OECD Asia China India Middle East Africa Central and South America Brazil Total Non-OECD Total World Source : International Energy Outlook 2010, U.S. Energy Information Administration ■ The EIA estimates that the growth of electricity generating in each continent across the world till 2035 will increase from 1 8 ,783 billion kW per hour in 2007 to 35,191 billion kW per hour in 2035, accounting for the average growth rate of 2.3% per year. ■ The average growth rate of the electricity generating of the countries outside the OECD is at 3.3% which is higher than the average growth rate of 1.1% of the countries within the OECD. ■ Asia, the region outside the OECD, is the region with the highest electricity generating growth rate 4.1% per year. Organisation for Economic Co-operation and Development – OECD 12

Competitions  Transformer market can be divided into power transformer and distribution transformer. In the past, all transformer sales of the company are sales for distribution transformers, which in this distribution transformer market, there are small manufacturers who focus more on price strategy rather than quality, up to medium and large manufacturers who focus on quality products. Therefore, manufacturer in each group would have different customer groups.  The company is regarded as medium manufacturer who can manufacture high quality transformer for state and private sectors that have received both domestic and international standard certifications 13

3 • Financial Status 14

Revenue Distribution Million Baht Million Baht 500 1000 928.57 774.47 5.25 400 800 225.24 54.32 688.42 159.96 504.33 108.10 300 600 5.92 120.67 47.39 372.74 254.22 104.59 344.05 200 400 125.47 3.29 4.78 171.19 6.07 34.27 43.45 34.84 237.15 200 100 55.26 330.59 326.10 68.03 270.46 95.29 228.55 123.25 78.85 49.47 0 18.95 0 Year 2010 Year 2011 Year 2012 Year 2013 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Export Sector Private Sector Government Service Export Sector Private Sector Government When compared to the third quarter, In 2013, company’s income decreased 16.98% from 2012 due to the income of the fourth quarter’s sale volume increased up to 85.91 % due to the economic slowdown and the political increasing of sale volume of private sector situation is still uncertain. As a result, and state enterprises that its products the operator is to delay investment. were normally delivered in second half of the year 15

Gross Profit Million baht Million baht 160 40% 146.67 300 40% 264.25 34.91% 140 30.66% 250 208.29 27.54% 27.70% 211.53 120 30% 30% 27.30% 23.64% 93.72 200 100 29.14% 26.31% 19.35% 142.06 80 20% 150 20% 60 48.18 100 37.81 31.82 40 10% 10% 50 20 0 0% 0 0% Year 10 Year 11 Year 12 Year 13 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin In 2013, gross profit margin decreased In the fourth quarters, company’s gross profit margin increased when in small amount compared to 2012 due to compared to the pass quarters because increasing of competition in the market. of increasing of sale volume from state enterprises sector in the fourth quarters. 16

Net Profit Million baht 100 25% 90.72 140 25% 90 118.4 120 21.59% 80 20% 20% 15.76% 70 100 84.06 60 15% 15% 74.51 48.16 11.77% 80 12.34% 50 9.27% 40 10% 60 10% 43.77 5.60% 6.52% 30 8.40% 3.68% 40 20 8.96 5% 11.34 5% 6.05 20 10 0 0% 0 0% Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Year 10 Year 11 Year 12 Year 13 Net Profit Net Profit Margin Net Profit Net Profit Margin In the fourth quarter, net profit In 2013, net profit decreased when increased up to 48.16 million baht from the compared to 2012 due to decreasing of the third quarter due to product selling of revenue . In addition, the company has fixed projects of state enterprises and private costs of approximately 30-40 percent of total sector with the due date of delivery in the expenses. The employee related costs and fourth quarter. depreciation of investments in fixed assets increased. 17

Capital Structure Total Asset Total Liabilities and Shareholders Million baht Million baht 500 460.92 900 788.97 475.42 735.84 800 380.03 400 570.44 700 326.06 600 300 500 357.42 222.77 260.42 190.41 400 200 134.65 300 100 200 100 0 0 Year 10 Year 11 Year 12 Year 13 Year10 Year11 Year12 Year13 Total Liabilities Total Shareholders's Equity  Fixed assets increased by 21.13 % from the last year due  Most of the debts were current liabilities of to the purchase of the machine in order to increase the the normal business operation which production capacity. consisted of short-term loan from the bank  The inventory decreased by 14.13% from the last year by 28.43% and the account payables by which varies with sales and orders decreased in 2013. 29.18% of the total debts as of the end of year  The account receivables decreased from last year because of decreasing of sale volume. 18

Capital Structure Debt to Equity Ratio Current Ratio 0.80 2.5 0.71 0.60 0.60 2 1.97 1.88 0.55 1.80 0.50 1.5 1.49 0.40 1 0.20 0.5 - 0 Year 10 Year 11 Year 12 Year 13 Year10 Year11 Year12 Year13 Return of Equity Return of Asset 20% 30% 18.12% 28.01% 17.39% 25% 15% 22.12% 20% 19.65% 12.25% 10% 15.88% 9.77% 15% 10% 5% 5% 0% 0% Year 10 Year 11 Year 12 Year 13 Year 10 Year 11 Year 12 Year 13 19