3Q 2017 SET Opportunity Day Presentation 7 Dec 2017 Agenda Section 1 - - PowerPoint PPT Presentation

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3Q 2017 SET Opportunity Day Presentation 7 Dec 2017 Agenda Section 1 - - PowerPoint PPT Presentation

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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

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3Q 2017 SET Opportunity Day Presentation

7 Dec 2017

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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.

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Shareholding and Group Structure

99.50% 100.00% 90.00% 100.00%

Note: * Best Tech is a core company of BTW Group

Best Tech & Engineering Ltd.* (“Best Tech”)

Provide engineering service including modularization, parts fabrication and power plant EPC

BT and Owl Solar 1 Co., Ltd. (“BT Owl”)

Support future project bidding for solar & other renewable projects

Best Tech Industries Co., Ltd. (“BTI”)

Support future expansion in modularization and parts fabrication

Capacity Global Clean Energy Co., Ltd. (“Global Clean”) Steel Fabrication Solar & other renewable projects (to support future project bidding)

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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

UK Brazil Nigeria Australia Japan Egypt UAE Saudi Arabia Vietnam Hungary Indonesia USA Canada India

Our Valued Customers: World-Class Steel Fabrication Achievement

EPC Project Owner

Bahrain Myanmar Singapore Mexico

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Agenda

Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A

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  • 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:

 Materials supply  Design & engineering  Fabrication  Pipe coating and painting  Rubber lining

  • Sample of products

 Circulating water system  Cooling water system  Steam pipes  Steam & hot water pipes  Piping supports

Pressure Vessels and Storage Tanks

  • Sample of products

 Fuel oil tank  Water tank  Blow down tank  Air receiver tank

  • Scope of services:

 Materials supply  Design & engineering  Fabrication  Repairing

Structural Steels

  • Scope of services:

 Materials supply  Design & engineering  Fabrication

  • Sample of products

 Beam and Column  Grinders  Walkways and Gratings

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  • II. Modularization

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Peregrino FPSO

Modularization project for Deaerator Module and Boiler Module on Peregrino FPSO, a ship-shaped floating oil production, storage and

  • ff-take unit, located along the coast
  • f Brazil
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Selective Credential of Modularization

BTW Group has strong expertise and high-experience in several international modularization projects

Brazil Australia

Golar Winter Renovation of FSRU

Customer: Aalborg Industries Scope of Service: Material supply, fabrication and modularization of Deaerator Module and Boiler Module Project Period: Mar 2008 - Nov 2008 Contract Value: EUR 1.3 million

Peregrino FPSO

Customer: Aalborg Industries Scope of Service: Material supply, fabrication and modularization of Deaerator Module and Boiler Module Project Period: May 2008 - May 2009 Contract Value: EUR 3.5 million

Solomon Iron Ore

Customer: RCR Resource Laing O’Rourke Terra Nova Technologies Cimeco Scope of Service: Material supply, fabrication and modularization of

  • Iron Ore Processing Plant
  • Train Load Out
  • Conveyer
  • Crushing Hub

Project Period: Aug 2011 - Sep 2013 Contract Value: USD 218.1 million

Roy Hills

Customer: Samsung C&T Corporation Scope of Service: Material supply, fabrication and modularization of Iron Ore Processing Plant including piping and fittings in the process area Project Period: Mar 2014 - Apr 2015 Contract Value: USD 105.6 million

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  • 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. .

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EPC - Engineering, Procurement, and Construction  Strong project management skill  Well proven long-list of track records in power sector

 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

Future power supply Opportunities

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Selective Credential of Power Plant EPC Contractor

With strong project management skill, BTW Group has become an EPC contactor for power plant projects.

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9.2 MW Mahachai Green Power Plant

Customer: Mahachai Green Power Co., Ltd. Scope of Service: Piping System, Supporting Structure, Boiler Platform, and Deaerator Project Period: Jul 2014 - Feb 2016 Contract Value: THB 58 million

5 MW Solar Farm in Trat

Customer: ETE Management Co., Ltd. Scope of Service: Engineering, design, supply, installation and commission of solar farm Project Period: Aug 2016 – Mar 2017 Contract Value: THB 266 million

5 MW Solar Farm in Prachuap Khiri Khan

Customer: Eastern Technical Engineering Pcl. Scope of Service: Engineering, design, supply, installation and commission of solar farm Project Period: Aug 2016 – Mar 2017 Contract Value: THB 263 million

8 MW Waste For Power (W4P) Project

Customer: Crane Renewable Energy Scope of Service: 8 MW Engineering, design, supply, installation and commission of landfill gas to energy power plant Project Period: Nov 2016 – Apr 2017 Contract Value: THB 36 million

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Agenda

Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A

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Revenue Net Profit

Revenues and Net Profit

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Y2014 Y2015 Y2016 17.3% 34.6% 5.7% Net Profit Margin 9M 2016 9M 2017 2.4%

  • 2.9%

Net Profit Margin

  • 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.

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Strong Financial Position

(THB mn)

Cash and investment Trade/ other receivables Inventory / Work in progress PPE Other asset Operating Liabilities1 Other liability Capital RE and other SE

(THB mn)

Asset Breakdown Liability and Equity Breakdown

  • 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

1

Operating liabilities include trade/ other payables, revenue received in advance, and short-term provision.

Short-term loan

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Key Financial Ratio

Key Financial Ratio

  • Best Tech has high liquidity to conduct large

size of steel fabrication project and has low interest-bearing debt

  • Modified cash cycle, which is calculated by

cash cycle (days) – cash received in advance (days), is presented to provide the precise cash cycle (days) of the company

  • Due to high amount of liquid assets and

low leverage, BTW Group has strong liquidity ratio and leverage ratio

Liquidity ratio

Y2014 Y2015 Y2016 9M 2017

Current Ratio (times) 1.17 2.65 2.45 3.17 Cash Cycle (days) 22.92 43.45 81.18 128.39 Modified Cash Cycle (days) 5.30 16.83 68.17 106.54

Efficiency ratio

Y2014 Y2015 Y2016 9M 2017

Return on fixed assets (%) 274.19 316.74 32.57 5.73 Return on asset (%) 35.88 60.35 6.30

  • 2.16

Return on equity (%) 50.54 80.05 8.57

  • 2.91

Leverage ratio

Y2014 Y2015 Y2016 9M 2017

Total liabilities to total equity (times) 2.38 0.29 0.41 0.27 Interest-bearing debt to total equity (times) 0.73 0.00 0.09 0.00

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Agenda

Section 1 About BTW Group Section 2 Business Overview Section 3 Financial Highlights Section 4 Investment Highlights Section 5 Q&A

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Backlog

EVM2 power plant

Customer Alstom Power Inc Place Scope of Service Mexico Fabrication of Main Steel, Casing, Modules, Inlet Duct, Stair Tower, Secondary Steel & Platforms for 2 HRSGs Project Period Q4 2017 – Q2 2018

MCW piping system of Taketoyo No. 5’s 1,070 MW

Customer MITSUBISHI Hitachi Power Systems, Ltd. Place Aichi, Japan Scope of Service Main cooling water piping system Project Period Q2 2017 – Q4 2019

South Bangkok Power Plant replacement - phase 1

Customer Marubeni Corporation Place Samut Prakan, Thailand Scope of Service Design and Supply in relation to CW Piping Project Period Q3 2017 – Q2 2018

Modular Crush & Screen Project

Customer Crushing Services International Pty Ltd. Place Scope of Service Australia Modularization of Crushing Plant Structures and Screens Project Period Contract Value Q4 2017 – Q1 2018 USD 7.74 million

Backlog as of 30 Sep 2017 = Baht 900 million

3 projects with combined contract value of Baht 389 million (30 Sep 2017 - Baht 321 million Backlog )

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Backlog History Q2 2016 to Q3 2017

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Potential Outlook

  • JIS-H Grade certificate from JSAO was awarded in July 2017, BTW can establish a strong

footprint in steel fabrication construction industry in Japan which presently has high market demand to support Tokyo 2020 Olympic Games

  • Mega projects by government sector will stimulate new project investments &

constructions and related industries such as Eastern Economics Corridor Development (EEC), Suvarnabhumi Phase 2 expansion, High-Speed Railway projects

  • Local power plant projects including EGAT’s power plant, Independent Power Producer

(IPP), Small Power Producer (SPP), Very Small Power Producer (VSPP)

  • Material handling and mining projects in Thailand, Australia, Russia, USA and Africa
  • New or resuming modularization projects supported by higher commodities' price level
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Potential Outlook – Lithium mines in Australia

Reference: https://www.bloomberg.com/news/articles/2017-10-25/ground-zero-for-lithium-giving-australia-lock-on-global-supply https://www.bloomberg.com/news/articles/2017-08-06/electric-car-boom-drives-rush-to-mining-s-90-billion-heartland https://www.bloombergquint.com/china/2016/09/29/china-battery-maker-lishen-banks-on-electric-car-boom-for-ipo

Price & Demand Supply & Production Forecast - 2027 China ‘s Demand

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