Company Visit September 26, 2013 1 Company Overview 1 Industry - - PowerPoint PPT Presentation

September 26, 2013

Company Visit

1

1

• Company Overview

2

• Industry Condition and Competition

3

• Financial Status

4

• Future Outlook

5

• Question & Answer

2

1

• Company Overview

3

(Distribution Transformer) (Small Power Transformer) (Special Transformer)

• (Transformers installs

services)

• (Scheduled checks and

maintenance services)

• Transformers repairs and

maintenance services)

• Transformers rental

services)

• (Transformers testing

services)

• Transformers and electrical

system consultancy) “QTC Energy Public Co., Ltd., conducts the businesses of manufacturing and distributing custom made transformers to domestic and foreign customers and also provides various types of services

30 – 5000 KVA 5 – 30 MVA

(Services)

4

(Manufacturing and distributing)

Its function is to transform high voltage from distribution system

• f

Metropolitan Electricity Authority

• r

Provincial Electricity Authority to have lower voltage to meet with demands

• f

consumers such as factories, dwellings, high buildings, etc. Its function is to lower voltage from power source distributed along high voltage transmission line before transmitting electric current into distribution system such as wind farm ,Solar farm

• Earthing Transformer is

used spot grand of transformer.

• Dry-Type Cast Resin is used

for indoor and restriction area

• Pad mounted is used for

Group of customer are hospital, golf course, wind farm, export.

Business Operation

5

High Voltage72 kV

(Distribution Transformer) (Small Power Transformer) (Special Transformer)

Customer Group

Customer group Public sector : Provincial Electricity Authority (PEA), Metropolitan Electricity Authority (MEA), Electricity Generating Authority of Thailand (EGAT) Private sector : Project subcontractor group and industrial factories Export sector : Australia, Malaysia, Italy, Singapore ,Spain , Mexico, South Africa ,etc. 6

We distribute our products under the name of QTC for both domestic and international market which includes Europe, Australia, Asia, Middle East, North America, Africa and ASEAN

7

1996 2012 2011

Establish

2000

ISO9001

2001

ISO14001

2008

BEST Awards EUROPE AWARD OHSAS18001 Q-MARK CESI

2007

KEMA

2002

The committee of the best factory award, 2002.

2009

SMEs National Award

2010

Industry Award.

The Best Award for Good Corporate Governance (Eastern Area) MAI ISO17025

Quality Transformer Co., Ltd

2003

QTC Transformer Co., Ltd

QTC Energy PCL

2016

World Class TQM

ISO26000 (CSR)

Vision & Mission

Vision

• QTC is a world-class

manufacture providing world –class quality in Electric Transformation Equipment and Service

Mission

• To meet our customer’s

performance challenges

• f their electrical system

with products and services of international standard

9

Head office 2/2 Soi Krungthep Kritha 8 (5).,Krungthip Kritha Rd., Huamark., Bankapi, Bangkok 10240

Tel: (66) 0-2379-3089-92 Fax: (66) 0-2379-3097

Factory 149 M. 2 Tambol Mabyangporn,Ampur Pluakdaeng , Rayong 21140

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2 • Industry Condition and Competition

11

Industry situation: Local

Forecast of electricity generating and peak demand from 2010 - 2030 ■ Peak demand increased from 23,249 MW in 2010 to 52,890 MW in 2020, accounting for the average growth of 4.42% per year. ■ Installed capacity increase from 31,349 MW in 2010 to 65,547 MW in 2030, accounting for the average growth of 3.96% per year. ■ Thus, the EGAT, the MEA, and the PEA will have an expansion of installed capacity and the distribution system in order to serve with the rising demand.

10,000 20,000 30,000 40,000 50,000 60,000 70,000 2553 2555 2557 2559 2561 2563 2565 2567 2569 2571 2573

Peak Demand Installed Capacity Source: The National Power Development (2010-2030) (PDP 2010) 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

12

Industry Situation: Oversea

0.0 1.0 2.0 3.0 4.0 5.0 United States Canada Mexico OECD Europe Japan South Korea Australia/ New Zealand Total OECD Non-OECD Europe and Eurasia Russia Non-OECD Asia China I ndia Middle East Africa Central and South America Brazil Total Non-OECD Total World

Average growth rate of global electricity generating from 2007 - 2035

■ The EIA estimates that the growth of electricity generating in each continent across the world till 2035 will increase from 18,783 billion kW per hour in 2007 to 35,191 billion kW per hour in 2035, accounting for the average growth rate of 2.3% per year. ■ The average growth rate of the electricity generating of the countries outside the OECD is at 3.3% which is higher than the average growth rate of 1.1% of the countries within the OECD. ■ Asia, the region outside the OECD, is the region with the highest electricity generating growth rate 4.1% per year. Organization for Economic Co-operation and Development – OECD

Source : International Energy Outlook 2010, U.S. Energy Information Administration

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Competitions

 Transformer market can be divided into power transformer and distribution

• transformer. In the past, all transformer sales of the company are sales for

distribution transformers, which in this distribution transformer market, there are approximately 6 manufactures. The company is regarded as medium manufacturer who can manufacture high quality transformer for state and private sectors that have received both domestic and international standard certifications.

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3 • Financial Status

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Revenue from sales and services

23.36 70.08 237.15 49.47 78.85 69.61 101.63 120.67 68.03 55.26 99.65 41.2 54.32 34.84 34.27

100 200 300 400 500

Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

services Export secoctor Private sector Public sector

Million Baht

195.76

The first half of 2013, the revenue from sales and services increased by 5.48% from the same period of last year which is our expected business plan.

217.41

100 200 300 400

1 H 12 1 H 13

312.92 330.08

The revenue from sales and services in the second quarter of 2013 increased by 7.70% from the same year of the first quarter. The revenue decreased by 21.04% from the same period of last year due to the decrease of the sales volume of export 16

159.41 417.39 171.67

Million Baht

Gross Profit

The gross profit in the second quarter

• f 2013 increased by 10.37% from the

same year of the first quarter. The revenue increased by 43.22% from the same period

• f last year due to improved production

process. 17 The first half of 2013, the gross profit is 85.99 million baht increased by 46.70% from the same period of last year.

33.64 58.94 146.67 37.81 48.18 16.88% 26.74% 34.91% 23.64% 27.70%

0% 10% 20% 30% 40% 20 40 60 80 100 120 140 160 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Gross Profit Gross Profit Margin

Million Baht Million Baht

58.62 85.99 18.38% 25.75%

5 10 15 20 25 30 10 20 30 40 50 60 70 80 90 100 1H 12 1H 13

Gross Profit Gross Profit Margin

Net Profit

The first half of 2013, net profit is 20.30 million baht increased by 205.25% from the same period of last year. 18

5.33 21.51 90.72 8.96 11.34

2.68% 9.76% 21.59% 5.60% 6.52%

0% 5% 10% 15% 20% 25% 10 20 30 40 50 60 70 80 90 100

Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Net Profit Net Profit Margin

The net profit in second quarter

• f 2013 increased by 26.56% from the same

year of first quarter due to product selling

• f a big project such as government and

government enterprises and private sector.

Million Baht Million Baht

5.79 20.30 1.82% 6.08%

• 10%

0% 10% 20% 30% 40% 50% 60% 70% 5 10 15 20 25

1H 12 1H 13

Net Profit Net Profit Margin

Capital Structure

Total Asset

306.66 367.57 326.06 243.20 294.12 384.68 370.20 460.92 471.87 421.21

100 200 300 400 500 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Total Liabilities Total Shareholders's Equity

Total Liabilities and Shareholders

Most of company assets consisted of the land, building and equipment , inventory and account receivables at the end of second quarter,2013 there are proportion follow ; 38.22%,26.58% and 29.45% of the total asset. Most of the debts were current liabilities of the normal business operation which consisted of short- term loan from the bank, accounting for 47.18 and the account payables, accounting for 23.15 of the total debts as of the second quarter of 2013 Shareholders in second quarter of 2013 were 412.21 million baht due to pay dividend amount 62 million baht at of May, 2013.

655.35 737.77 786.97 715.06 715.33 100 200 300 400 500 600 700 800 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Financial Ratio

0.80 0.99 0.50 0.70 0.52

• 0.20

0.40 0.60 0.80 1.00 1.20 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Debt to Equity Ratio

0.81% 2.92% 11.53% 1.25% 1.59% 0% 2% 4% 6% 8% 10% 12% 14% Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 1.53% 5.81% 19.68% 1.90% 2.69% 0% 5% 10% 15% 20% 25% Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Return of Asset Return of Equity Current Ratio

1.50 1.44 1.97 2.12 1.65 0.5 1 1.5 2 2.5 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

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Dividend Payment Policy The company has policy for payment of annual dividends at no less than fifty percent of the net profit after deduction of juristic person income taxes and allocation of reserve funds in compliance with the law. However, the company may consider dividend payments differing from the set policy, depending upon business performance, financial liquidity, economic conditions and necessity to use current capital in order to manage

• perations and expand the company’s business.

4 • Future Outlook

22

Growth Targets

35.21% 35.00% 26.67% 41.5% 39.68% 39.33% 23.94% 20.00% 21.33% 1.17% 3.5% 12.67%

200 400 600 800 1000 1200 1400 1600 2012 2013 2017 Service Export sector Private sector Public sector

Million baht

1,500 MB

23

940 MB 1,000 MB 50% 6 %

Revenue Structure and Strategy

Revenue / 2013 1,000

Government 30-35% Local 40-45% Export 15-20% Service 2-5%

• Develop products

to meet spec demanded by public sector

• Seek for some

partners to increase distribution channels and/or services.

• Increase products to

cover all demands of all customer groups.

• Add name lists in Vender

list for consulting group and designer group.

• Build and promote

good relationship with distributors and major customers.

• Appoint distributors

in new market.

• Enhance capability
• f

distributors in selling and service providing. 24

Million Baht

Order Backlogs At Of Sep ,2013 : 256.64 Million Baht

25

19 166 71 Public Private Export

Contact us : QTC Energy PCL. 2/2 Soi Krungthep Kritha 8 (5)., Krungthep Kritha Rd., Huamark., Bangkapi, Bangkok 10240 Thailand. Tel (IR) : (66) 0-2379-3089-92 ext 241 Fax: (66) 0-2379-3099 26