2Q2016 Results - Opportunity Day 19 August 2016 1 Disclaimer: - - PowerPoint PPT Presentation

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2Q2016 Results - Opportunity Day

19 August 2016

Disclaimer: This presentation herein should be used for investor information only. It should not be used as an offer or invitation to purchase or sell BJCHI shares. Additionally, this presentation contains forward-looking statements and assumptions that are subject to risks and

• uncertainties. Investors or readers using this material need to be prudent when they make

investment decisions.

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Agenda

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Industry Outlook & Forward Strategies Project Progress 2Q2016 Results Backlog & Hi-Potential Projects Q&A

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Key Focus

 Oil & Gas Industry

• Being key source of revenue in 2016
• Successfully deliver Topside Modules (01B) as EPC

 Mining Industry

• None of Australian projects undertaken now due to

slowdown but start to foresee the recovery in mining industry

• Still receive bidding inquiry form from several mining

project owners  Renewable Energy Industry

• Ample opportunities with the growing trend of using

renewable energy sources

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Global View

242 238 254 261 267 274 282 299 311 375 413 451 491 533 200 400 600 800 1,000

2011 2012 2020F 2025F 2030F 2035F 2040F

Total OECD Total Non-OECD

World Energy Consumption

Quadrillion Btu

Source: EIA (as of May 11, 2016)

110.97 27.59 45.35

50 100 150

Dollar Per Barrel

Brent Crude Oil

Oil Price Movement

• “Underinvestment” will quickly deplete the future

availability of reserves and production

• The global upstream industry will need to spend a

minimum capex of about USD 3 trillion during 2016- 2020 to ensure its long-term sustainability

• More than 200 key crude and natural gas projects

are expected start operations by 2025.

• Brazil is expected to have the highest number of
• ffshore planned projects globally, followed by the

UK and the US.

Source: ICD-Research & upstreamonline

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Why LCCs Strategies..?

On-going Investment How to maintain Business Environment Slower Pace of Global Economies Dip in Energy Prices Forced to keep their investment Search for cheaper options

Source: Petrobras

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Australian Market – Market Outlook

 Consumption of most commodities was stronger than expected in early 2016, largely stemming from increased construction activity in China.  Australia is expected to export increasingly Iron Ore by 14% in 2017 from 2015.  India’s demand for commodities is likely becoming high. The country’s economic growth (7.7% in 2015) helped lift millions from poverty who will significantly be the key driver for Commodities like coal and Iron ore.  In late June BHP Billiton announced plans to increase its budget to US$900 million largely on exploration activities.  There were 127 projects at the Feasibility Stage and their collective project value is estimated to be AUD 182 billion actually increased 27 percent from AUD143 billion in early 2015

717 767 818 874 344 371 390 413 115 104 90 80 2014 2015 2016F 2017F

World Iron Ore Export

Australia Brazil The Rest of The World

Million tons

39 26 13 12 11 10 6 4 3 2 1

• NO. OF PROJECTS

Coal Other Commodities LNG, Oil and Gas Infrastructure Iron ore Gold Copper Nickel Lead, Zinc, Silver Uranium Alumina Source: Department of Industry

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Brazilian Market - Petrobras Outlook

Investment Categories (US$.Bil) Budget % Exploration and Production 80.0 81% Refining, Transportation and Marketing 10.9 11% Gas and Power 5.4 5% Other Areas 2.1 2% Total 98.4 100%

Source: BMP 2015-2019

2.22 2.70

2015 2020

Brazilian Oil Production

mbpd

 The investment amounts were also focused largely on E&P, particularly in the pre-salt layer.  The new Brent crude price is projected to be 45 US$/barrel under Petrobras’ s new business plan.  Lifting cost reduced from US$ 10.4/boe to US$ 7.6/boe*  In 2015, Petrobras reached positive free cash flow for the first time after 7 years.

*The barrel of oil equivalent (BOE)

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Forward Strategies

 Well-Prepared among changes in business environment

• Be flexible to any industries not just in Oil & Gas (if having other
• pportunities like Mining, Infrastructure, Renewable Energy)
• Enter into other regions such as and markets in the near future (US and

Asia)

• Aim to secure larger-scale projects

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Forward Strategies (Cont’)

 Maintain and Improve Competitive Advantages

• Keep delivering on-time with competitive prices
• Continue building successful track record with major clients

 Be capable of being partially EPC

• Undertake and take lesson learn the pilot project (TUPI)
• Help BJCHI expand its full products and services
• Enhance its capability and more chances for securing large-scale projects with major

and more well-known clients

Agenda

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Industry Outlook & Forward Strategies Project Progress 2Q2016 Results Backlog & Hi-Potential Projects Q&A

No. Project Industry Nationality Status

1 Replicant FPSO Compression Modules – TUPI Project Oil & Gas Upstream Ongoing – to be completed in 2Q17 EPC-BJCHI 2 Petrobras P75/P77 FPSO Modules –QGI Project Oil & Gas Upstream Ongoing – to be completed in 4Q16 EPC-QGI Oil & Gas Inc.

Project Progress

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TUPI BV Project

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Project in advanced stages of modularization for 02B

TUPI BV Progress - VDO

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QGI Project (P75)

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P75 M01

4 Modules being undertaken for QGI Project P75

P75 M09A P75 M09B P75 M15

QGI Project (P77)

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4 Modules being undertaken for QGI Project P77

P77 M01 P77 M09A P77 M09B P77 M15

QGI Project (P75/P77)

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Agenda

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Industry Outlook & Forward Strategies Project Progress 2Q2016 Results Backlog & Hi-Potential Projects Q&A

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2Q2016 Results

1H15 1H16 %HoH

2,256 3,869 71% 2,236 3,821 71% 20 48 138%

• 36
• 6
• 85%
• 1,644
• 3,169

93% 228 160

• 30%

345 530 54%

• 4

0.5

• 114%

341 530 56% 26.5% 17.1% 15.1% 13.7%

Description 2Q15 2Q16 %YoY

Total Revenue 853 1,766 107% Contracted Revenue 737 1,720 133% Other Income 116 46

• 60%

Other - FX Gain (Loss) 104 14

• 87%

COGS

• 549
• 1,499

173% SG&A

• 124
• 71
• 43%

Earnings Before Taxes 179 191 7% Tax Expense 1 0.3

• 70%

Net Income 180 192 7% GPM 25.5% 12.8% NPM 21.1% 10.9%

54 1,134 497 410 465 118 1,581 935 306 293 90

27 148 126 60

500 1,000 1,500 2,000 2,500 1Q15 2Q15 1Q16 2Q16 APLNG QGI TUPI 01-02B TUPI 03B CL / Roy Hill TSE Other 20

Revenue Breakdown

2Q16 % Revenue Breakdown

Unit: mil.bt

1,508 853 2,117 1,766

Agenda

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Industry Outlook & Forward Strategies Project Progress 2Q2016 Results Backlog & Hi-Potential Projects Q&A

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Backlog

% Backlog Breakdown Backlog (End of 2Q2016)

No. Project Remaining Value (mil.THB) 1 Petrobras P75/P77 515 2 TUPI (01B & 02B) 141 3 TUPI (03B) 2,437 Total 3,093

High Potential Projects

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No. Project Name Industry Location Scope of work Exp.Period 1 Bauxite Project Mining Australia Steel Work 2H16 2 Iron Ore Project Mining Australia Structural Steel and Plate Work 2H16 3 Oil Storage Tank Oil Malaysia Steel Work 2H16 4 LNG Project Gas USA Modules 2H16 5 Ammonia Project Petrochemical USA Piping Spool 2H16

Agenda

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Industry Outlook & Forward Strategies Project Progress 2Q2016 Results Backlog & Hi-Potential Projects Q&A

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BJC HEAVY INDUSTRIES PUBLIC COMPANY LIMITED Address : 594 Moo 4, Makhamkoo Sub-district, Nikompattana District , Rayong , Thailand Telephone : +66-(0)-3889-3709 - 10 Fax : +66-(0)-3889-3711 Website : www.bjc1994.com E-mail : ir@bjc1994.com

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