1Q 1Q20 2020 20 Op Oppor ortuni tunity ty Da Day 12 June - - PowerPoint PPT Presentation

Construction A to Z

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1Q 1Q20 2020 20 Op Oppor

• rtuni

tunity ty Da Day

12 June 2020

DI DISC SCLAIMER LAIMER

 The contents of the presentation provide by CAZ (Thailand) Public Company Limited (the “Company”) is provided as information for discussion purpose only.  Some of the information in this presentation may contain projections or other forward looking statements regarding future events such as plans, business strategies, future market or industrial situations. Thus, actual situations may differ from what is projected in this presentation due to the unexpected environment which might be better or worse that anticipated. The reader must make his/her own assessment of the relevance, accuracy and adequacy of the information contained in this presentation. Including, may consider necessary or appropriate for the purpose of such assessment.  Also, the information included in this forward-looking statement may be change by the Company without notice and then the Company dose not take any duty to update any relevant information.

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

3

Outlook

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

4

Outlook

Introduction

Business and Vision

Vision

A most competitive construction contractor who creates sustainable prosperity in Thailand.

Mission

• Excellent construction capability, competitive

fabricator.

• Set engineering capability, entered into oversea

market.

• Strong EPC player in Asia Pacific Region.

CAZ‘s major business range is Construction Total Service & Management System (Procurement, Construction, and Shop Fabrication) To provide clients with the best possible service in all phases of project from A to Z such as Civil & Architectural, Structural, Tank & Vessel, and Heaters Fabrication work, Piping & Mechanical erection, etc.

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Manpower

Staff 524 people, Worker 3,824 people

Pro roje jects cts 14 14 49 49

As of 31 Mar 2020

Finished On-going Backlog

2,220 2,220

2014 Establishe ished d in Februar ary

• Integrated

Production Control System program to improve project cost management

2015 Strong g Pa Partner ership ship

• Partnering with

TAKUNI

• Our first EPC project,

PTT ASAHI SAR

• Integrated Welding

Control System & Spool Tracking Management System to improve our quality

2016 New office ce and Workshop shop

• Acquired 51% of JKEC

Co., Ltd as subsidiary

• Purchase 108 Rai of

Land and Factory

• Thailand’s biggest

Spherical Tank project, PTT Tank’s Propylene tank, 332 MB as EPC

2018 18 Solid Growth th

• PTT LNG Cold Water

Project, 643 MB as EPC project

• Certified ASME

Stamp for Pressure Vessel, Tank Fabrication

2017 Susta taina nabilit ity

• Additionally acquired

JKEC to be 73% of total shares

• Highest Backlog of

2,472 MB

• Awarded PTT GC ORP

SMP Project 1,570 MB and PTT GC PO Civil Project 451 MB 6

2019 IPO & First t Trading ng

• Offered 80
• rdinary million

shares as the Initial Public Offering, Trading in mai on 22 Jan'19

742 MB 651 MB 1,019 MB 1,387 MB 2,035 MB Revenue : 272 MB

Thai Oil LAB PTT ASHAI SAR PTT Tank’s Propylene tank PTTLNG CWG PTTGC OPR SMP 1st Trading day New shop expansion

New shop Expansi nsion

• n
• Expand Factory

#2 to increase revenue by Fabrication sales increase

1Q2020

Introduction

Milestone

612 MB

• Awarded
• TOP Piping Spool 379 MB
• HMC STR Fab 118 MB

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ISO 9001:2015 Certificate ASME Certificate of Authorization

 CAZ has developed Quality Management

System to control Total Quality which is included Quality Assurance, Quality Control and Quality Audit

 Renewed Certificate of ISO 9001:2015 on 14.

• Sep. 2018

 Under Implementation of ISO 14001:2015 &

45001:2018 schedule to achieve within 2Q 2020

Introduction

Quality Standards and Certificates

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CAZ has been awarded as Outstanding Partner from Samsung Engineering which shows that we are the best partner to complete projects successfully. This award is giving to the best company oversea.

PTTLNG Outstanding Service PTT LNG Cold Water Generation SAMSUNG ENGINEERING Outstanding Service PTT Wangnoi Compressor Station SAMSUNG ENGINEERING Outstanding Partner Among all partners

Introduction

Award of Appreciation from Client

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

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Outlook

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EP EPC

Engineer neering ing Pro rocureme rement nt Construc struction ion

SMP P & E& & E&I Civ ivil il Other ers

St Stee eel St Structu ucture re Mechanica ical Piping ping Elec ectrical trical & Ins nstru rume ment nt

Civil vil and Buildin ding Shop Fabrication ation Tank k Fabrication ation Pressur ssure e Vessel sel Fabricat atio ion

Bangchak Enclosed Ground Flare (EGF)

Ground Flare Installation

Contract Amount : 272 MB April 2018– June 2020

PTT GC Olefins Reconfiguration

Structure & Equipment Erection & Piping Work

Contract Amount : 1,319 MB May 18 ~ July 20

THAIOIL Clean fuel

Civil Work & Equip. Foundation

Contract Amount : 921 MB December 2019 – May 2022

PTT Tank Terminal

4,000 tons Spherical Tank, Transfer Pump, Ground Flare & Etc.

Contract Amount : 345 MB December 2016 – October 2018

Scope of Services

Business Units

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Maptaphut Sattahip Laem m Chab abang ng

Piping Shop (Alloy) Blasting Shop Piping Shop (CS SAW Welding) Painting Shop Pipe support Piping Shop (CS) Labor Camp Admin Building Engineering Building Piping Shop (CS) Painting Shop Painting Auto Blasting M/C Piping Shop (SUS)

Piping Factory #1 : 258,000 m2 (108 Rai), Shop Area : 30,000 m2, Laydown :86,000 m2

Factor tory y #2

CAZ

10 KM

Location

Pipe Cutting & Beveling

Scope of Services

Head Office & Piping Fabrication Shop

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Scope of Services

Structure Fabrication Shop

* CAZ will increase capacity 50% more with new shop

Steel Fabrication Shop 40 m x 180 m Machine Shop

• Misc. Fab Shop
• Misc. Fab Shop

Painting & Blasting Shop

STR Factory #2 (Pluak Dang Work Shop) : 127,000 m2 (79 Rai), Shop Area : 10,200 m2, Laydown Area : 116,800 m2

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Scope of Services

Ongoing Projects Status

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

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Outlook

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Open New STR Factory #2 Renovate Piping Shop

 STR shop has been move New location, CAZ will increase capacity 50% more with new shop  All existing shops have been renovated to work for piping work.

1Q2020 Overviews

Key Highlight 1Q 2020

Renovate gantry crane column and wall open Office Building (2 Floor) & Main Shop Miscellaneous Shop

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Award New Projects

 THAIOIL Clean Fuel ; Piping Spool Fabrication



Scope of work : Piping shop fab 400,000 Dia inch



Contract period : May 2020 – Jul 2021



Contract amount : 379 Million Baht



Location : Chonburi province  HMC Polymers Structure Fabrication



Scope of work : Steel STR 1,900 Ton



Contract period : Apr 2020 - Dec 2020



Contract amount : 118 Million Baht



Location : Rayong provice

1Q2020 Overviews

Key Highlight 1Q 2020

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Social Distancing Safeguarding the health of employees

 Social Distance  Screening  Hand Sanitizer Gel  Work Site Control

1Q2020 Overviews

Priority of Responses to COVID-19

Check the body temperature to all employees Provide alcohol gel for hand cleaning at all company area. Social distancing for employees at least 1 meter

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

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Outlook

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Financial Performance

Ongoing Projects Status

Project Group Contract Amount Portion

• Acc. Sales

(From Start to 1Q 20) Progress Backlog EPC 510 10% 488 96% 23 SMP / E&I 1,403 27% 1,102 79% 301 Civil 2,364 46% 868 37% 1,496 Fab & Others 882 17% 481 55% 401

Sub-Total 5,159 100% 2,939 57% 2,220

Mil THB

1Q2020 2Q2020

 HMC Polymers STR Fab : 118 M THB

Project Group Contract Amount Portion

• Acc. Sales

(2Q) Progress Backlog SMP / E&I 118 118

Total 5,277 2,338

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272 742 651 1,019

2017 2016 2015 2014 2018

1,387

Revenue enue

(Million Baht)

2015 2016 2017

Pro rofit fitabilit bility

(Percentage)

2018 11.1 8.3 53.0 22.9 2015 2016 2017 2018 10.1 11.6 10.0 10.5 9.0 8.2 1.1 1.7 2.2 3.8 3.7 3.3

Gross Profit Net Profit Net et Pro rofit fit

(Million Baht)

2019

2,034

2019 2019 75.5

670 942 2,472 2,287 Backlog 230 612

2020 (1Q20)

2,220

20.1 2020 (1Q20) 2020 (1Q20)

Financial Performance

Overall Highlight

Re Reven enue ue

(Million Baht)

414.3 611.8 1Q2019 1Q2020 19.2 20.1 1Q19 1Q20

Net et pro rofit fit attri ribut bute e to parent nt

(Million Baht)

Gro ross ss Pro rofit fit

(Million Baht)

46.1 50.3 1Q2019 1Q2020

47.7%

Increased

 Revenue increased of 197.5 MB due to recognized revenue from backlog carried forward of Y2019. Main projects were from SMP and Civil segment.  Including, recognized revenue from new projects award during period.  As of 31 Mar 2020, has backlog of 2,220 Million Baht.

9.2%

Increased

 Gross profit increased of 4.2 MB.  1Q2020 gross profit margin was 8.2% compared with 1Q2019 which was 11.1%. A few dropped, due to improved budget cost control for projects in order to update all cost to be close with current costs (1 project was on process of deliver to client).

4.2%

Increased

 1Q2020 net profit margin was 3.3% compared with 1Q2019 which was 4.6%. A few dropped, due to improved budget cost control for

• projects. Including of finance cost

increased by short term loan which

• ccurred on mid of 2019 for

projects’ working capital.

Financial Performance

1Q2020 Performance summary (Y-o-Y)

31 31 4 186 186 222 222 565 565 574 10 10 20 20 539 539 564 564 156 156 169 169 327 327 344 344 217 217 226 226 385 385 382 382 64 64 88 88 494 494 514 514

Cash Account Receivable Unbilled receivable Inventory PPE Others Accout Payable Advance received Bank Loan Other liabilities Equity

1, 1,488 8 Million n Baht Assets 31 Dec 2019 1, 1,554 4 Millio lion n Baht L/A & Equity 31 Mar 2020

Asset ets Increa reased

 Account receivable increased from last year around 20%. Due to increasing of transfer right of controlling asset and billing invoice to customers for construction contracts on.  PPE and intangible assets increased 8% or increased of Baht 25 Million due to renovate & improve of the new shop at Pluangdang district. Including, invested into construction tool and equipment for support new projects.

Liabilit ilities ies & Equit uities ies Increa reased

 Account payable increased due to material purchasing and subcontractors for projects.  Contract liabilities comprised of advance received from customers of Baht 218 Million, and income received in advance of Baht 8 Million. Both increased resulted from revenue recognized and advance received from projects.  Equities increased by 4.08% due to operating results for 3-month period.

Signif ifica icant nt change nged

Financial Performance

1Q2020 Statement of financial position

Leverage erage Ratio io

(time mes)

1.70 0.38 38 2.03 0.83

• 1.00

2.00 3.00

De Debt to E bt to Equity quity Int Inter erest est Bear earing Deb Debt 1Q2 Q2019 1Q2 Q2020

Efficiency iciency Ratio tio

(%) (%)

17.8 .8 9.6 15.2 .2 7.6 0.0 5.0 10.0 15.0 20.0

Re Retu turn on E Equity ity Re Retu turn on A Asset 1Q2 Q2019 1Q2 Q2020

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Financial Performance

Financial Ratio

Introduction

Agenda

Financial Performance Scope of Services 1Q2020 Overviews

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Outlook

Business Outlook

Eastern Economic Corridor Development

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Source: Ministry of Industry’s presentation of “Eastern Economic Corridor Development Project” Driving Forward, 15 February 2017

Combined Public and Private Investments at least

1.5 Trillion baht ($43Billion USD) in the first 5 years

U-Tapao international airport New Cities / Hospitals

200,000 mil baht ($5.7 Bill USD) 400,000 mil baht ($11.5 Bill USD)

Tourism

200,000 mil baht ($5.7 Bill USD)

Industry

500,000 mil baht ($14 Bill USD)

Motorway

350,300 mil baht ($1 Bill USD)

Dual-track railway

640,300 mil baht ($1.8 Bill USD)

High-speed train

158,000 mil baht ($4.5 Bill USD)

Laem Chabang port

88,000 mil baht ($2.5 Bill USD)

Map Ta Phut port

10,150 mil baht ($0.3 Bill USD)

Target

Note : Estimated investment amount shown

* As PTT Group

up (PTT LNG, Thai Oil, , PTT GC, IRPC) invest ested ed for MEGA Project, ct, Down Stre ream m project ct also shall be c conti tinuo nuous usly y invest sted d (HMC PP, B BST, Dow Chemica cal & et etc)

PTTGC GC / HMC C – Award

rd 2,1 ,139 M. Baht t from rom 62,60 ,600 M. Baht t (3.4%)

2018 Propylene Oxide Project (11,200 M.Baht) 2018 Polyols Project (20,000 M.Baht) 2018 Olefins Reconfiguration Project (22,400 M.Baht) 2019 HMC Polymer Expansion Project (9,000 M.Baht) 2019 Kuraray Project (21,000 M. Baht) 2020 Aromatic Reconfiguration Project (10,000 M.Baht) 2021 Olefins Modification Project (4,700 M.Baht)

IRPC

2019 Paraxylene Plant Project (30,000 M.Baht) 2020 Olefins Expansion Project (20,000 M.Baht) 2021 Diesel Hydro Treating (7,000 M.Baht) 2021 DHDS (12,500 M.Baht)

Business Outlook

Customer Investment

26 2018 Terminal 27.5 MTPA (30,000 M.Baht) 2020 EGAT 5 MTPA 2026 Terminal 35 MTPA 2031 Terminal 45 MTPA

LNG Termi mina nal Thai Oil

2019 Clean Fuel Project (140,000 M.Baht) 2019 Improvement (4,000 M.Baht) *Annual Maintenance (1,320 M.Baht)

BCP – Award

ard 314 M. Baht from rom 8,400 M. Baht (3.7%) %)

2018 Continuous Catalyst Regeneration Unit (8,400 M.Baht) 2020 DHDS (10,000 M.Baht)

: On going Project : CAZ On going Project

: CAZ Bidding Project

• Award

ard 728 M. Baht t from rom 30,000

• M. Baht

t (2.4% 4%)

• Award

ward 1,30 300M 0M. . Baht t from

• m 14

140,0 0,000 00 M. Baht t (0.9%)

Business Outlook

Potential project bidding of 2H 2020

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No. Industries Business unit Period duration (Months) Project value (Million Baht) 1. GAS Piping Jul 20 ~ May 21 860 2 GAS STR / Mech Jul 20 ~ May 21 401 3. Refinery SMP Jul 20 ~ Apr 22 1,500 4. Refinery* E&I Work Jul 20 ~ Dec 20 150 5. Oil & Gas* General Construction Aug 20 ~ Jun 21 900 Total 3,811 Note ; * Alternative project bidding

Q & A

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