Thoresen Thai Agencies Public Company Limited 3Q/17 Opportunity Day Presentation The Stock Exchange of Thailand 27 November 2017
Thoresen Thai Agencies Public Company Limited DISCLAIMER This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. TTA has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and TTA does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 2
Thoresen Thai Agencies Public Company Limited AGENDA COMPANY OVERVIEW 3Q/17 PERFORMANCE MARKET OUTLOOK APPENDICES 3
Thoresen Thai Agencies Public Company Limited THORESEN GROUP AT A GLANCE Established 1904: 100+ years of financial strength Headquartered in Bangkok, Thailand Global presence spanning more than 10 countries in three continents Vision Stock Information (as of 17 November 2017) • Market SET, SET100 “TO BE THE MOST TRUSTED ASIAN • Symbol TTA:TB | TTA:BK INVESTMENT GROUP, CONSISTENTLY DELIVERING ENHANCED • Industry Services STAKEHOLDER EXPERIENCE ” • Sector Transportation & Logistics • First Trade Date 25 Sep 1995 • Paid-up Capital 1,822,464,006 Baht Shareholding Structure (as of 29 September 2017) • Par Value 1 Baht • Market Capitalization Baht 16,129 million or US$ 491 million • Free Float 72.17% • Foreign Limit 49% • Dividend Policy At least 25% of the consolidated net profits after taxes but excluding unrealized foreign exchange gains or losses, subject to the Company’s investment plans and other relevant factors (with additional conditions) 4
Thoresen Thai Agencies Public Company Limited TTA STRATEGIC BUSINESS PORTFOLIO Total Revenues EBITDA 3,576 MB 3,113 MB 661 MB 383 MB 3Q/2016 3Q/2017 3Q/2016 3Q/2017 5
Thoresen Thai Agencies Public Company Limited 3Q/17 HIGHLIGHTS Acquired two second-hand vessels in July and October 2017 as per its continued thrust to renew fleet. Key Event Update Reclassify the business segments into Shipping, Offshore Service, Agrochemical, and Investment. Continued uptrend in freight market resulted in positive consolidated net profits to TTA of Baht 49 Performance million in 3Q/17. Strong consolidated balance sheet with cash and cash equivalents and current investments totaling Financial Position Baht 7.0 billion ending 3Q/17. Strong capital structure reflected by low net interest bearing debts (1) to total equity of 0.05 times. (1) Interest bearing debts net with cash and cash equivalents and current investments 6
Thoresen Thai Agencies Public Company Limited KEY BUSINESS DRIVERS TSG’s TCE rate is related to supply & Baltic Exchange Dry Index demand reflecting in BDI. BDI has continually picked up from its lowest level at 290 in BDI 1,206 BDI 1,105 BDI 718 BDI 673 BDI 1030 February 2016 to an average of 1,137 in 3Q/17 as continued growth in the Chinese iron ore imports, as well as the return to growth in global thermal coal and minor bulk trade. The growth on Chinese iron ore imports was supported by the robust growth in steel production and ongoing shift from the low- 2013 2014 2015 2016 9M 2017 grade domestically produced iron ore to the higher-quality imported iron ore. During 3Q/17, Crude oil remained to be Brent Crude Oil (US$/Barrel) volatile, trading within the range of US$ 46-59 140 per barrel but slowly rose from the lowest 120 level at US$ 27.88 per barrel last year. 100 80 60 40 20 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 7
Thoresen Thai Agencies Public Company Limited AGENDA COMPANY OVERVIEW 3Q/17 PERFORMANCE MARKET OUTLOOK APPENDICES 8
Thoresen Thai Agencies Public Company Limited THORESEN THAI AGENCIES (TTA) CONSOLIDATED INCOME STATEMENT Net Profits/(Losses) Revenues Gross Profit EBITDA Net Profits/(Losses) to TTA (M.THB) (M.THB) (M.THB) (M.THB) (M.THB) Net Profits/(Losses) to TTA Net Profits/(Losses) -16% YoY Normalized Net Profits/(Losses) Normalized Net Profits/(Losses) to TTA 661 974 3,597 -23% QoQ 3,576 612 292 -42% YoY 893 215 255 -37% QoQ 191 -13% YoY 753 207 -13% QoQ 383 +609% YoY 135 3,113 -81% YoY -77% QoQ 79 -91% QoQ 49 43 26 7 8 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 in million Baht TSG MML PMTA 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 Revenues 811 950 896 1,807 1,525 976 793 792 735 Gross Profits 82 287 257 583 434 178 237 219 215 EBITDA 29 227 213 443 277 49 106 100 86 (223) 95 74 262 124 (69) 77 74 57 Net Profits/(Losses) Net Profits/(Losses) to TTA (223) 95 74 152 72 (40) 52 51 39 Gross Margin (%) 10% 30% 29% 32% 28% 18% 30% 28% 29% 4% 24% 24% 25% 18% 5% 13% 13% 12% EBITDA Margin (%) Net Profit Margin (%) -27% 10% 8% 14% 8% -7% 10% 9% 8% Note As of 30 September 2017, TTA held TSG @ 100%, MML @ 58.2%, and PMTA @ 68.5% Continued uptrend in freight market resulted in positive consolidated net profits to TTA of Baht 49 million in 3Q/17. Total revenues dropped mainly resulted from lower revenues of MML due to lower vessel utilization in 3Q/17. 9
Thoresen Thai Agencies Public Company Limited THORESEN THAI AGENCIES (TTA) CONSOLIDATED FINANCIAL POSITION – Strong financial position to support growth Unit: Million Baht 41,620 Debenture Cash and Cash 35,927 ST Loan Equivalents + Other Liabilities Short-term Investments Interest Bearing Debts Current Assets Property, Plant, and Equipment Total Equity Other Non-Current Assets LT Loan As of December 31, 2016 As of September 30, 2017 Key Financial Ratio Strong consolidated balance sheet with cash and cash equivalents and current investments totaling Baht 7.0 billion ending 3Q/17. Interest bearing debts decreased mainly from repaying principal of debentures of Baht 2,000 million at maturity. Strong capital structure with net IBD to equity ratio as low as 0.05 times ending 3Q/17. Total equity as of 3Q/17 decreased from year end 2016 mainly from foreign currency translation difference for foreign operations. Thai Baht was stronger against US dollar from an average of 35.29 Baht/US$ in 2016 to an average of 34.27 Baht/US$ in 9M/17. 10
Thoresen Thai Agencies Public Company Limited THORESEN SHIPPING GROUP (TSG) TCE rate significantly improved and the utilization rate remained at high level Thoresen’s Fleet Utilization Rate Thoresen TCE Rate* vs. Cost Structure (per vessel day) 30 year lowest point at 290 BDI 718 BDI 673 BDI 1030 BSI 666 BSI 596 BSI 802 2015 2016 9M 2017 TSG’s average TCE Rate was at US$ 8,288 per day, comprising Revenue vs Cost Structure (per vessel day) owned fleet TCE rate US$ 8,152 per day and gain from chartered-in vessels of US$ 136 per day TSG’s average TCE Rate improved 51% YoY from US$ 5,473 per day in 3Q/16, but decreased 4% QoQ from US$ 8,614 per day in 2Q/17. Owned fleet utilization rate remained at high level at 99%. At ending September 2017, TSG owned 21 vessels with an average size of 53,188 DWT and an average age of 12.04 years. With latest vessel acquisition in October 2017, TSG owned 22 vessels with an average size of 53,438 DWT and an average age of 11.92 years. * Thoresen TCE Rate = Owned Vessel TCE Rate + Chartered-In Rate 11 ** Cash cost = Owner’s Expenses + SG&A + Dry -docking Expenses
Thoresen Thai Agencies Public Company Limited THORESEN SHIPPING GROUP (TSG) Revenues Gross Profit EBITDA Net Profit Normalized Net Profit (M.THB) (M.THB) (M.THB) (M.THB) (M.THB) +149% YoY +214% YoY +627% YoY +133% YoY -22% QoQ 96 950 +10% YoY -11% QoQ -22% QoQ 287 -6% QoQ 95 -6% QoQ 74 227 257 74 213 896 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 811 82 29 (152) 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 3Q/16 2Q/17 3Q/17 (223) Revenues increased from Baht 811 million in 3Q/16 to Baht 896 million in 3Q/17 or up 10% YoY. Gross profits improved to Baht 257 million, surging 214% YoY. Gross margin also improved from 10% in 3Q/16 to 29% in 3Q/17. EBITDA significantly improved to Baht 213 million or 627% YoY with EBITDA margin of 24%. A turnaround on net profits from net losses of Baht 223 million in 3Q/16 to net profits of Baht 74 million in 3Q/17, or up 133% YoY. 12
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