3Q 2017 SET Opportunity Day Presentation 7 Dec 2017
Agenda Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A Disclaimer: Information contained in our presentation is intended solely for your personal reference only. In addition, our presentation may contain projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks and uncertainties. No assurance is given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. Page 1
Shareholding and Group Structure Solar & other renewable projects Steel Fabrication (to support future project bidding) 99.50% 100.00% 90.00% 100.00% Capacity Best Tech & Engineering Ltd.* Best Tech Industries Co., Ltd. BT and Owl Solar 1 Co., Ltd. Global Clean Energy Co., Ltd. (“Best Tech”) (“BTI”) (“Global Clean”) (“BT Owl”) Provide engineering service including Support future expansion in modularization Support future project bidding for solar & other renewable projects modularization , parts fabrication and and parts fabrication power plant EPC Note: * Best Tech is a core company of BTW Group Page 2
Our Business BTW Group focuses on achieving our quality commitment by delivering innovative integrated steel fabrication services worldwide Full-scope of project management to deliver high-quality service on time Proven track record across the world High-standard with professional services recognized through international certifications Our Valued Customers: World-Class Steel Fabrication Achievement EPC Canada UK Hungary USA Japan UAE Bahrain India Egypt Saudi Arabia Myanmar Vietnam Project Owner Mexico Nigeria Brazil Indonesia Singapore Australia Page 3
Agenda Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A Page 4
I. Parts Fabrication With extensive fabrication shops and fully equipped facilities, BTW Group can fabricate wide-range of Parts Fabrication Piping System Scope of services: Sample of products Materials supply Circulating water system Design & engineering Cooling water system Fabrication Steam pipes Pipe coating and painting Steam & hot water pipes Rubber lining Piping supports Pressure Vessels and Storage Tanks Scope of services: Sample of products Materials supply Fuel oil tank Design & engineering Water tank Fabrication Blow down tank Repairing Air receiver tank Structural Steels Scope of services: Sample of products Materials supply Beam and Column Design & engineering Grinders Fabrication Walkways and Gratings Page 5
II. Modularization Peregrino FPSO Modularization project for Deaerator Module and Boiler Module on Peregrino FPSO, a ship-shaped floating oil production, storage and off-take unit, located along the coast of Brazil Page 6
Selective Credential of Modularization BTW Group has strong expertise and high-experience in several international modularization projects Golar Winter Renovation of FSRU Peregrino FPSO Customer: Aalborg Industries Customer: Aalborg Industries Scope of Material supply, Scope of Material supply, Service: fabrication and Service: fabrication and modularization of modularization of Deaerator Module Deaerator Module and Boiler Module and Boiler Module Brazil Project Period: Mar 2008 - Nov 2008 Project Period: May 2008 - May 2009 Contract Value: EUR 1.3 million Contract Value: EUR 3.5 million Solomon Iron Ore Roy Hills Customer: RCR Resource Customer: Samsung C&T Laing O’Rourke Corporation Terra Nova Technologies Scope of Material supply, Cimeco Service: fabrication and Scope of Material supply, fabrication modularization of Iron Service: and modularization of Ore Processing Plant - Iron Ore Processing Plant including piping and - Train Load Out fittings in the process - Conveyer area - Crushing Hub Project Period: Mar 2014 - Apr 2015 Australia Project Period: Aug 2011 - Sep 2013 Contract Value: USD 105.6 million Contract Value: USD 218.1 million Page 7
III. Power Plant EPC Contractor Given its strength in project management and foreseeable growth in power supply, BTW Group has diversified business into power plant EPC. . EPC - Engineering, Procurement, and Construction Opportunities Resilient demand for power promoting growth in power supply Renewable energy power expansion plan PDP 2015 with target in 2036 = 19,684.40 MW Power capacities as of Aug 2017 = 10,101.78 MW Future power supply = 9,582.62 MW Strong project management skill Well proven long-list of track records in power sector Future power supply Page 8
Selective Credential of Power Plant EPC Contractor With strong project management skill, BTW Group has become an EPC contactor for power plant projects. 8 MW Waste For Power (W4P) Project 9.2 MW Mahachai Green Power Plant Customer: Crane Renewable Energy Customer: Mahachai Green Power Co., Ltd. Scope of 8 MW Engineering, design, Service: supply, installation and Scope of Piping System, Supporting commission of landfill gas Service: Structure, Boiler Platform, to energy power plant and Deaerator Project Nov 2016 – Apr 2017 Project Jul 2014 - Feb 2016 Period: Period: Contract THB 36 million Contract THB 58 million Value: Value: 5 MW Solar Farm in Trat 5 MW Solar Farm in Prachuap Khiri Khan Customer: ETE Management Co., Ltd. Customer: Eastern Technical Engineering Pcl. Scope of Engineering, design, Service: supply, installation and Scope of Engineering, design, commission of solar farm Service: supply, installation and commission of solar farm Project Aug 2016 – Mar 2017 Period: Project Aug 2016 – Mar 2017 Period: Contract THB 266 million Value: Contract THB 263 million Value: Page 9
Agenda Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A Page 10
Revenues and Net Profit Net Profit Revenue Net Profit Margin Net Profit Margin 9M 2016 9M 2017 Y2014 Y2015 Y2016 2.4% -2.9% 17.3% 34.6% 5.7% During Y2014 – Y2015, major revenue and profits came from Modularization work Roy Hills Project For Y2016, revenue and profit decreased due to 1) lower project sizes and profit margins of Parts Fabrication and Power Plant EPC (as compared to Modularization) and 2) higher competition during global economic slowdown In 9 months of 2017, total revenues increased due to revenue recognition of some large projects awarded in 3Q 2016 such as parts fabrication works for Alba Combined-Cycle Power Plant Project in Bahrain and Mae Moh Power Plant Project in Lumpang Province and solar-farm projects. Page 11
Strong Financial Position Asset Breakdown Liability and Equity Breakdown (THB mn) (THB mn) Short-term loan Cash and investment Operating Liabilities 1 Other liability Trade/ other receivables Capital Inventory / Work in progress RE and other SE PPE Other asset 1 Operating liabilities include trade/ other payables, revenue received in advance, and short-term provision. • Major components of assets and liabilities relates to working capital to support the operation • Thus, change in asset/ liability varied by size and total value of the on-going projects at the time • On 9 May 2017, BTW paid dividend of Baht 0.07 per share , amounting to Baht 52.92 million in total Page 12
Key Financial Ratio Key Financial Ratio Liquidity ratio Y2014 Y2015 Y2016 9M 2017 Current Ratio (times) 1.17 2.65 2.45 3.17 • Best Tech has high liquidity to conduct large Cash Cycle (days) 22.92 43.45 81.18 128.39 size of steel fabrication project and has low Modified Cash Cycle (days) 5.30 16.83 68.17 106.54 interest-bearing debt • Modified cash cycle , which is calculated by Efficiency ratio Y2014 Y2015 Y2016 9M 2017 cash cycle (days) – cash received in advance Return on fixed assets (%) 274.19 316.74 32.57 5.73 (days), is presented to provide the precise Return on asset (%) 35.88 60.35 6.30 -2.16 cash cycle (days) of the company Return on equity (%) 50.54 80.05 8.57 -2.91 • Due to high amount of liquid assets and Leverage ratio Y2014 Y2015 Y2016 9M 2017 low leverage, BTW Group has strong Total liabilities to total equity (times) 2.38 0.29 0.41 0.27 liquidity ratio and leverage ratio Interest-bearing debt to total equity 0.73 0.00 0.09 0.00 (times) Page 13
Agenda Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A Page 14
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