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

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1

• Company Overview

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• Industry Condition and Competition

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• Financial Status

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• Future Outlook

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• Question & Answer

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• Company Overview

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(Distribution Transformer) (Small Power Transformer) (Special Transformer)

• (Transformers installs

services)

• (Scheduled checks and

maintenance services)

• Transformers repairs and

maintenance services)

• Transformers rental

services)

• (Transformers testing

services)

• Transformers and electrical

system consultancy) “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

30 – 5000 KVA 5 – 30 MVA

(Services)

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(Manufacturing and distributing)

Its function is to transform high voltage from distribution system

• f

Metropolitan Electricity Authority

• r

Provincial Electricity Authority to have lower voltage to meet with demands of consumers such as factories, dwellings, high buildings, etc. Its function is to lower voltage from power source distributed along high voltage transmission line before transmitting electric current into distribution system such as wind farm ,Solar farm

• Earthing Transformer is

used spot grand of transformer.

• Dry-Type Cast Resin is used

for indoor and restriction area

• Pad mounted is used for

Group of customer are hospital, golf course, wind farm, export.

Business Operation

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High Voltage72 kV

(Distribution Transformer) (Small Power Transformer) (Special Transformer)

Extra High Voltage 265 to 500 kV (mostly AC some HV DC)

Customer Group

Customer group Public sector : Provincial Electricity Authority (PEA), Metropolitan Electricity 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

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Vision & Mission

Vision

• QTC is a world-class

manufacture providing world –class quality in Electric Transformation Equipment and Service

Mission

• To meet our customer’s

performance challenges

• f their electrical

system with products and services of international standard

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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

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• Industry Condition and Competition

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Industry situation: Local

Forecast of electricity generating and peak demand from 2010 - 2030 ■ Peak demand increased from 23,249 MW in 2010 to 52,890 MW in 2020, accounting for the average growth of 4.42% per year. ■ Installed capacity increase from 31,349 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.

10,000 20,000 30,000 40,000 50,000 60,000 70,000 2553 2555 2557 2559 2561 2563 2565 2567 2569 2571 2573

Peak Demand Installed Capacity Source: The National Power Development (2010-2030) (PDP 2010) 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

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Industry Situation: Oversea

0.0 1.0 2.0 3.0 4.0 5.0 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

Average growth rate of global electricity generating from 2007 - 2035

■ The EIA estimates that the growth of electricity generating in each continent across the world till 2035 will increase from 18,783 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

Source : International Energy Outlook 2010, U.S. Energy Information Administration

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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

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3

• Financial Status

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Revenue Distribution

Million Baht

In 2013, company’s income decreased 16.98% from 2012 due to the economic slowdown and the political situation is still uncertain. As a result, the operator is to delay investment.

228.55 326.10 330.59 270.46 171.19 254.22 372.74 344.05 104.59 108.10 225.24 159.96

200 400 600 800 1000

Year 2010 Year 2011 Year 2012 Year 2013

Export Sector Private Sector Government

504.33 928.57

Million Baht

When compared to the third quarter, income of the fourth quarter’s sale volume increased up to 85.91% due to the increasing of sale volume of private sector and state enterprises that its products were normally delivered in second half of the year 15

237.15 49.47 78.85 18.95 123.25 120.67 68.03 55.26 95.29 125.47 54.32 34.84 34.27 43.45 47.39 5.25 6.07 3.29 4.78 5.92

100 200 300 400 500

Q4/12 Q1/13 Q2/13 Q3/13 Q4/13

Service Export Sector Private Sector Government

774.47 688.42

Gross Profit

Million baht

In the fourth quarters, company’s gross profit margin increased when compared to the pass quarters because

• f increasing of sale volume from state

enterprises sector in the fourth quarters. 16

Million baht

In 2013, gross profit margin decreased in small amount compared to 2012 due to increasing of competition in the market.

146.67 37.81 48.18 31.82 93.72 34.91% 23.64% 27.70% 19.35% 30.66%

0% 10% 20% 30% 40% 20 40 60 80 100 120 140 160 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13

Gross Profit Gross Profit Margin 142.06 208.29 264.25 211.53 27.30% 29.14% 27.54% 26.31%

0% 10% 20% 30% 40% 50 100 150 200 250 300 Year 10 Year 11 Year 12 Year 13

Gross Profit Gross Profit Margin

Net Profit

In 2013, net profit decreased when compared to 2012 due to decreasing of the revenue . In addition, the company has fixed costs of approximately 30-40 percent of total

• expenses. The employee related costs and

depreciation of investments in fixed assets increased. 17 In the fourth quarter, net profit increased up to 48.16 million baht from the third quarter due to product selling of projects of state enterprises and private sector with the due date of delivery in the fourth quarter.

Million baht 90.72 8.96 11.34 6.05 48.16

21.59% 5.60% 6.52% 3.68% 15.76%

0% 5% 10% 15% 20% 25% 10 20 30 40 50 60 70 80 90 100

Q4/12 Q1/13 Q2/13 Q3/13 Q4/13

Net Profit Net Profit Margin 43.77 84.06 118.4 74.51

8.40% 11.77% 12.34% 9.27%

0% 5% 10% 15% 20% 25% 20 40 60 80 100 120 140

Year 10 Year 11 Year 12 Year 13

Net Profit Net Profit Margin

Capital Structure

Total Asset

357.42 570.44 788.97 735.84 100 200 300 400 500 600 700 800 900 Year10 Year11 Year12 Year13 134.65 190.41 326.06 260.42 222.77 380.03 460.92 475.42 100 200 300 400 500 Year 10 Year 11 Year 12 Year 13 Total Liabilities Total Shareholders's Equity

Total Liabilities and Shareholders

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Million baht Million baht

• Fixed assets increased by 21.13 % from the last year due

to the purchase of the machine in order to increase the production capacity.

• The inventory decreased by 14.13% from the last year

which varies with sales and orders decreased in 2013.

• The account receivables decreased from last year because
• f decreasing of sale volume.
• Most of the debts were current liabilities of

the normal business operation which consisted of short-term loan from the bank by 28.43% and the account payables by 29.18% of the total debts as of the end of year

Capital Structure

0.60 0.50 0.71 0.55

• 0.20

0.40 0.60 0.80 Year 10 Year 11 Year 12 Year 13

Debt to Equity Ratio

12.25% 18.12% 17.39% 9.77% 0% 5% 10% 15% 20% Year 10 Year 11 Year 12 Year 13 19.65% 22.12% 28.01% 15.88% 0% 5% 10% 15% 20% 25% 30% Year 10 Year 11 Year 12 Year 13

Return of Asset Return of Equity Current Ratio

1.49 1.97 1.80 1.88 0.5 1 1.5 2 2.5 Year10 Year11 Year12 Year13

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Dividend Payment Policy The company has policy for payment of annual dividends not less than fifty percent

• f the net profit after deduction of juristic person income taxes and allocation of reserve funds

in compliance with the law. However, the company may consider dividend payments differing from the set policy, depending upon business performance, financial liquidity, economic conditions and necessity to use current capital in order to manage operations and expand the company’s business.

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• Future Outlook

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Growth Targets

35.21% 35.00% 27.27% 26.67% 43.00% 39.68% 47.27% 39.33% 23.94% 20.00% 22.73% 21.33% 1.17% 2.00% 2.73% 12.67%

200 400 600 800 1000 1200 1400 1600 2012 2013 2014 2017 Service Export Sector Private Sector Government

Million baht

1,500 MB

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940 MB 1,000 MB 36% 6 % 1,100 MB 10 %

Revenue Structure and Strategy

Revenue / 2014 1,100

Government 30-35% Local 40-45% Export 15-20% Service 15-20%

• Develop products

to meet spec demanded by public sector

• Seek for some partners

to increase distribution channels and/or services.

• Increase products to

cover all demands of all customer groups.

• Build and promote

good relationship with distributors and major customers.

• Appoint distributors

in new market.

• Enhance capability of

distributors in selling and service providing. 23

Million Baht

Order Backlogs At Of March ,2014 : 230.17 Million Baht

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0.77 210.25 19.15 Government Private Sector Export Sector

Contact us : QTC Energy PCL. 2/2 Soi Krungthep Kritha 8 (5)., Krungthep Kritha Rd., Huamark., Bangkapi, Bangkok 10240 Thailand. Tel (IR) : (66) 0-2379-3089-92 ext 241 Fax: (66) 0-2379-3099 E-mail : ir@qtc-energy.com www.qtc-energy.com

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