[PPT] - Corporate Presentation : H1/2019 Performance Opportunity Day On PowerPoint Presentation

SLIDE 1

Corporate Presentation : H1/2019 Performance

Diamond Building Products PCL

Opportunity Day On Thursday 5 September 2019 at 10.10 – 11.10 at SET Meeting Room 603

SLIDE 2

Disclaimer

Note: All currency figures within this presentation are presented in Thai Baht (“THB”) unless otherwise stated.

▪ The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell

r the solicitation of an offer or invitation to purchase or subscribe for share in Diamond Building Products Public Company Limited

(“DRT” and shares in DRT, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. ▪ This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which DRT operates and general achievement of DRT business forecasts, which will cause the actual results, performance or achievements of DRT to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. ▪ This presentation has been prepared by the DRT. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the DRT or any of its agents or advisers,

r any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss

howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. ▪ This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. ▪ This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.

2

SLIDE 3

AGENDA

▪

Company Overview

▪

Financial Performance

▪

Business Expansion

▪

Appendix 3

SLIDE 4

COMPANY OVERVIEW

4

SLIDE 5

Business Overview

▪ Founded in 1985, DRT is one of the top 3 manufacturers and distributors

f

roofing products in Thailand. ▪ DRT’s core products includes tiles, boards & ceilings, siding boards, roof accessories, and some non-roofing products. ▪ DRT mainly distributes its products through agents (mom&pop shops) and modern trade nationwide. ▪ DRT has continued to grow through product improvement and development and gradual production expansion. ▪ DRT is listed on the Stock Exchange of Thailand (SET) with a market capitalization of approximately THB 5,688 million/1. Construction materials market share /2

Siam Cement Group 53% Mahaphant Group 12% DRT 20% Kiternit Group 5% Others 10% Source:

1. www.set.or.th as of August 23, 2019.
2. Ministry of Commerce. Based on FY2017 sales value.

5

SLIDE 6

1985 - 1999 2000 - 2009

2014 2005 Listed on the Stock Exchange

f Thailand

(SET) 2012 Launched its first non-asbestos fibre cement tile 2002 Myriad Materials Co., Ltd became a major shareholder 2006 Launched its first non-asbestos tile Jearanai Tile –

Thai Modern

2001 Changed the name to Diamond Roofing Tiles Co., Ltd. 2013 ▪ Established its firstly

wned distribution

center (DC), located in Khon Kean ▪ Acquired an autoclaved aerated concrete (AAC) plant in Chiangmai ▪ Launched a new production line of autoclaved aerated concrete (AAC) in Saraburi 2015 1985 Established under the name Siam City Tiles and Pipes Co., Ltd.

Launched new products : ▪ Grooved Siding Board ▪ Ventilation Board ▪ Fence

Launched new products : ▪ Jatulon ▪ Decorative Floor ▪ Stair Plank 2016 Launched new products : RLC ▪ Diamond Lintel ▪ Diamond Kitchen Counter ▪ Diamond Door Frame

Launched new Jearanai Tile : ▪ Thai Classic ▪ Elegant ▪ Thai Lanna

2018

Launched new products : ▪ CT-Venice

6

2019

Milestones

SLIDE 7

Strategic Shareholders

Established in 2002 as a holding company to acquire DRT from the previous owner – Siam City Cement Plc.(SCCC)., Myriad Materials is a major shareholder of DRT, having Srivikorn Family and Pradipasen Family as major shareholders. As entrepreneurs of various businesses with long and successful records, the families bring to DRT business know-how’s and expertise in construction and property development markets.

Source: Company estimates as of March 13, 2019.

Myriad Materials 58.9% Srivikorn and Pradipasen Families & Management 4.2% Free-float 36.9% Foreign Institutions 1.2% Thai Institutions 34.1% Thai Individuals 64.7%

Totaling 63.1%

7

SLIDE 8

Production Base

Source: Company estimate as at August 23, 2019.

Existing production facilities Existing distribution center (DC)

Chiangmai

Capacity: 50,000 ton/yr Product: ▪ Autoclaved aerated concrete (AAC)

Saraburi

Capacity: 1,000,000 ton/yr Product: ▪ Tiles ▪ Board and ceiling ▪ Siding board ▪ Autoclaved aerated concrete (AAC)

Khon Kean

Capacity : 50,000 ton/yr Product: Tiles

Distribution Center, Khon Kean

Total Capacity FY2019: 1,100,000 ton/yr

8

SLIDE 9

Strategies Behind Our Success

Product variety & differentiation Strong relationship with distributors Excellent services Prudent financial policies Strong brand awareness

Product delivery with 24 hours with regular training on product handling and safety Strong balance sheet yielding financial flexibility

Extensive distribution network

Over 6,000 nationwide agents and modern trade specialties with growing exporting channel With the main focus in consumer’s needs and satisfaction, product variety and differentiation as well as value for money are keys to retain and enhance market base.

9

SLIDE 10

Product and Service Segmentation

Tiles Board and ceiling

CT, Adamas, Roman tiles, Small corrugated tile, Jatulon Board, Flat sheet, Gypsum, Diamond wall, Autoclaved aerated concrete (AAC)

Siding board Special products

Siding and Artificial wood Roof equipment, Foil, Roof paint, Diamond Truss,

Services

Roof stripping and installation Re-roofing

Sales of Products 92% Service income 8%

Note: 1. Percentage based on H1’19 revenues from sales and services.

New RLC :

▪ Diamond Lintel ▪ Diamond Kitchen Counter ▪ Diamond Door Frame

10

SLIDE 11

Distribution Channels

16% Modern Trade

Leading construction materials and home improvement specialty stores

18% Export

To 9 Destinations in Asia Region

12% Projects

Direct sales to leading residential developers:

▪ Land & House ▪ Pruksa ▪ Supalai ▪ Sansiri ▪ Asia Property ▪ Prinsiri ▪ Golden Residence Note: Percentage based on value of H1’19 sales.

Laos Vietnam Cambodia China Myanmar India Taiwan Philippines Malaysia

Agent (mom&pop )

54%

Agent (mom&pop )

H1’18 11% 55% 16% 18%

11

SLIDE 12

Logistic System and Trainings

Service excellence with timely product delivery and training assistance

▪

Integrated system linking production, inventory, purchase order, and logistics

▪

Reliable product delivery within 24 hours

▪

Full fleet of product delivery via trailers, trucks and overseas shipping

▪

Free trainings for contractors’ employees on product handling & safety precautious

▪

Assistance on logistics & products storage

Trailers Trucks Shipping

12

SLIDE 13

Diamond … A Trusted Brand

BrandAge February 2017

Source: “BrandAge” Magazine dated February 2016.

อันดับ กระเบื้องมุงหลังคา ที่น่าเชื่อถือที่สุด อันดับ แบรนด์ % % 2017 2016 2017 2016 +/- 2 2 ตราเพชร 17.25 14.56 2.69 อันดับ ไม้และวัสดุทดแทนไม้ ที่น่าเชื่อถือที่สุด อันดับ แบรนด์ % % 2017 2016 2017 2016 +/- 4 4 ตราเพชร 7.69 6.31 1.38

Diamond Brand has been known as a high quality tile for nearly 30 years. Through its consistently seeking customer feedback and continuous product development, Diamond Brand is now one of the Thailand’s most trusted brands in tile/1.

ISO 9001 : 2015 เครื่องหมาย มอก. กระเบื้องคอนกรีต แบบลอน และแบบเรียบ THAILAND TRUSTED MARK ตราสัญลักษณ์รับรอง สินค้าประเทศไทย

13

SLIDE 14

14

SLIDE 15

15

New Product : Decra

SLIDE 16

Over decades, DRT has marketed its products through traditional dealers (mom and pop shops). Its strong and aged relationship with these distributors nationwide is one of DRT’s competitive advantages and part of DRT’s continued success.

Distributor … A Strategic Arm

16

SLIDE 17

FINANCIAL PERFORMANCE

17

SLIDE 18

Financial Highlights

1,196 1,128 2,324 1,395 1,255 2,650 314 285 599 356 324 680 236 205 441 324 224 548 140 116 256 212 132 344 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 1Q18 2Q18 H1'18 1Q19 2Q19 H1'19

Bt. million

Total revenues Gross Profit EBITDA Net profit

H1’19 Net Profit analysis ▪

H1’19 Net Profit increased 35% YoY, due to the fact that every distribution channel has expanded significantly, as well as effective cost management has resulted in maintaining profit margin at a good level and the extraordinary item from the sale of unused land of Baht 46.31 million.

% QoQ Growth 1Q19 2Q19 Total revenues 36% (10%) Gross Profit 40% (9%) EBITDA 94% (31%) Net profit 142% (38%) % YoY Growth H1’19 Total revenues 14% Gross Profit 13% EBITDA 24% Net profit 35%

18

SLIDE 19

Revenues from Sales and Service

H1’19 Total revenues analysis

▪

H1’19 Revenues from sales and Service increased 11% YoY, due to the increase in revenue from sales

f almost every type of products, including the

roofing tiles, autoclaved aerated concrete blocks, siding boards and trusses.

Tiles 49% Board & ceilings 15% Siding boards 17% Special products 8% Other products 3% Service 8%

H1’19 Revenues breakdown

1,192 1,125 1,329 1,251 2,317 2,580 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 1Q18 2Q18 1Q19 2Q19 H1'18 H1'19 THB million Tiles Board & ceilings Siding boards Special products Other products Service

QoQ 6% YoY 11%

19

SLIDE 20

878 840 973 927 1,718 1,900 500 1,000 1,500 2,000 1Q18 2Q18 1Q19 2Q19 H1'18 H1'19 THB million Raw materials Utilities Depreciation Labour Services Permanent labour

Raw materials 54% Utilities 7% 5% Labour 3% Services 11% 8% 5% Others 7%

H1’19 Costs breakdown

Depreciation maintenance Permanent labour

Costs of Sale and Service Breakdown

H1’19 Costs analysis

▪

H1’19 Costs of sales and Service increased 11% YoY, due to the increase in product sales volume of 8.15 percent and increase in raw material cost, salary and benefits of the employees, gas expenses and repair and maintenance expenses. YoY 11% QoQ 5%

Costs 1Q18 2Q18 1Q19 2Q19 H1’18 H1’19 Variable costs 70% 70% 71% 70% 70% 71% Fixed costs 19% 19% 17% 19% 19% 18% Service costs 11% 11% 12% 11% 11% 11%

20

SLIDE 21

141 142 155 163 283 318 50 100 150 200 250 300 350 1Q18 2Q18 1Q19 2Q19 H1'18 H1'19 THB million Personnel Promotion Packaging Others

SG&A Expenses

YoY 12% H1’19 SG&A analysis

▪

H1’19 SG&A expenses increased 12% YoY, due to the increase in marketing and sales promotion expenses, salary and benefits of the employees and other selling expenses.

Personnel 52% Promotion 4% Packaging 11% Others 33%

H1’19 SG&A breakdown QoQ 5%

21

SLIDE 22 314 285 356 324 599 680 26% 25% 26% 26% 26% 26%

10%

0% 10% 20% 30% 40% 50% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1Q18 2Q18 1Q19 2Q19 H1'18 H1'19 % Margin THB million

Gross Profit

Gross profit (LHS) GP Margin/1

Profit Margins

YoY 13% QoQ 9% QoQ

38%

YoY 24% QoQ 31% Gross Profit EBITDA Net Profit

236 205 324 224 441 548 140 116 212 132 256 344 20% 18% 23% 18% 19% 21% 12% 10% 15% 11% 11% 13%

10%

0% 10% 20% 30% 200 400 600 800 1,000 1Q18 2Q18 1Q19 2Q19 H1'18 H1'19 % Margin THB million

EBITDA and Net Profit

EBITDA Net Profit EBITDA Margin/1 Net profit Margin/1 Note: 1. Includes revenues from services and other income.

YoY 35%

22

SLIDE 23

140 116 80 70 212 132 273 90 37 66 254 151

63
2

1 2 4 2 1

171

171

171
50

100 150 200 250 300 350 400 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 THB million

Net Profit CFO Repayment Long Term Interest paid Dividends paid

Cash Flows

H1’19 cash flows analysis

▪

H1’19, บริษัทฯ มีก ำไรสุทธิ 344 ล้ำนบำท, มีกระแสเงินสด

จำกกำรด ำเนินงำน 405 ล้ำนบำท ซึ่งเพียงพอต่อกำรจ่ำยเงิน ปันผล และดอกเบี้ยจ่ำย

23

SLIDE 24

Capital Structure

30 June 2019 debt analysis

▪

As at end of 30 June 2019, net interest- bearing debt to equity was 0.15 times, which is decreased from end of the previous year, due to the increase in equity but decrease in debt . Short Term debt THB 368 million

Average interest rate of 1.91% p.a. as follows

Floating interest rate of 1.60-2.00% p.a.

57 59 14 28 21 24 20 34 32 930 1,486 1,212 838 918 525 511 198 368 2,214 2,300 2,245 2,324 1,896 1,995 2,076 2,288 2,255 0.39 0.62 0.53 0.35 0.47 0.25 0.24 0.07 0.15

0.00 0.20 0.40 0.60 0.80 500 1,000 1,500 2,000 2,500 3,000 3,500 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1Q19 2Q19

Times THB million Cash & current investment Interest bearing debts Equity Net D/E

24

SLIDE 25

Share Information and Dividend

Source: www.set.or.th as of August 23, 2019.

Dividend policy is not less than 50% of normal net profit

Par value: THB 1.00 Listed share: 948 million shares Market capitalization: THB 5,688 million Foreign limit: 49.00%

Share information

Stock price : THB 6.00 per share P/E 11.13 Times P/BV 2.52 Times Dividend yield 6.00%

0.29 0.39 0.47 0.46 0.53 0.43 0.29 0.33 0.39 0.43 0.44 0.25 0.30 0.36 0.38 0.40 0.38 0.27 0.25 0.30 0.36 0.36 86% 77% 77% 83% 75% 88% 93% 76% 77% 84% 82% 0% 20% 40% 60% 80% 100% 0.0 0.2 0.4 0.6 0.8 1.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

% THB per share EPS DPS Dividend payout (RHS)

25

SLIDE 26

Income Statements

P&L Highlight (in THB million) 2Q19 2Q18 % YoY change 1Q19 % QoQ change H1’19 H1’18 % YoY change REVENUES Revenues from sales and services

1,251 1,125 11.2% 1,329

5.9%

2,580 2,317 11.3%

Other incomes

4 3 71.7% 66

93.4%

70 6 1046.4%

Total revenues

1,255 1,128 11.3% 1,395

10.0%

2,650 2,324 14.1%

COSTS Costs of sales and services

927 840 10.3% 973

4.8%

1,900 1,718 10.6%

Other costs

0.0%
0.0%
0.0%

Total costs

927 840 10.3% 973

4.8%

1,900 1,718 10.6%

Selling and administrative expenses

163 142 15.1% 155 5.7% 318 283 12.3%

Operating profit (EBIT)

165 146 13.2% 266

38.1%

432 322 34.0%

Finance costs

1 2 -16.8% 2

36.9%

4 4

3.1%

Income tax

32 29 10.4% 53

39.9%

84 63 33.6%

Net profit

132 116 14.3% 212

37.6%

344 256 34.6%

26

SLIDE 27

Balance Sheets

Balance Sheet (in THB million) Jun 30, 2019 Dec 31, 2018 % change Assets Cash & cash equivalents

32 20 57.5%

Trade & account receivables

650 553 17.5%

Inventories

755 762

1.0%

Other current assets

11 31

63.4%

Total current assets

1,448 1,366 6.0%

Property, plant, and equipment

1,746 1,695 3.0%

Non-current assets

83 77 8.7%

Total assets

3,277 3,138 4.4%

Liabilities Short-term loans

368 511

28.0%

Other current liabilities

496 411 20.6%

Total current liabilities

864 922

6.3%

Other non-current liabilities

158 139 13.2%

Total liabilities

1,022 1,062

3.7%

Equities Retained earnings

976 796 22.5%

Total equities

2,255 2,076 8.6%

27

SLIDE 28

BUSINESS EXPANSION

28

SLIDE 29

Growing with Strategies

Revenue Growth Target ≥ 5% pa. Gross Profit Margin

25-27%

Total Debt to Equity

≤1.0x

Growth strategies 2018 - 2020

▪

Expand production capacity and product variety to high margin specialties

▪

Channel sales mix adjustment /1:

Growing the business with prudent financial policy

Modern Trade

12%

15% Export

18%

20% Project

11%

15%

Note: 1. Percentage based on total sales.

29

SLIDE 30

APPENDIX

30

SLIDE 31

31

Marketing Activities Domestic

SLIDE 32

32

Advertising : “S.W.A.T.” ; Digital TV & Online Platform

SLIDE 33

33

Printed Advertising

SLIDE 34

34

Out of Home Media / Billboard / In Store Media

SLIDE 35

35

Facebook; Thai / Khmer / Burmese

SLIDE 36

36

Youtube & Instagram : DIAMONDBrandOfficial

SLIDE 37

37

Mobile Application : DIAMOND Brand

SLIDE 38

38

Product Display

SLIDE 39

39

Product Display

SLIDE 40

40

Stand Show & Sales Kit

SLIDE 41

41

Premium

SLIDE 42

42

Promotion

SLIDE 43

Agent Seminar & Grand Sales 2019 : 11 May 2019

43

SLIDE 44

44

Agent Seminar & Outing : May – Jun. 19

SLIDE 45

45

Modern Trade : Grand Opening New Store

ไทวัสดุ สาขานครปฐม

ไทวัสดุ สาขาบ้านฉาง

ไทวัสดุ สาขาศรีมหาโพธิ

SLIDE 46

Booth : Thai Watsadu : Baan & Beyond Expo 2019 : Feb. – Mar.

46

SLIDE 47

47

Event : Thai Watsadu Contractor Night @Surin 3rd Aug. 19

SLIDE 48

Thai Watsadu Workshop @Saraburi Plant : 5, 12 Mar. 19

48

SLIDE 49

Exclusive Interview : “Wealthythai” เผยแพร่ 12 ก.ค. 62 Photo Release : 24 มิ.ย. 62 คณะกรรมการ บริษัทฯ เยี่ยมชมสายการผลิตโรบอต

Public Reletions : “RID ROBOPACK”

49

SLIDE 50

50

Product Knowledge Training & Seminar

SLIDE 51

51

Product Knowledge Training & Seminar

SLIDE 52

52

DIAMOND Architect Contest 2019

SLIDE 53

53

Marketing Activities Export

SLIDE 54

54

Website & Catalog : English, Burmese, Khmer, Vietnamese, Chinese & Thai

SLIDE 55

55

Laos : Agent Signage & Stand show

SLIDE 56

56

Laos : Stand show & Product Display

SLIDE 57

57

Myanmar : Showroom

SLIDE 58

58

Myanmar : Product Knowledge Training

SLIDE 59

59

Cambodia : Product Knowledge Training & Workshop

SLIDE 60

CG Activities 2019

บริษัทฯ ได้รับ ESG-100 เป็ นองค์ กรที่มี ความรับผิดชอบต่อสังคม สิ่งแวดล้อมและมีธรร มาภิบาลจาก สถาบันไทยพัฒน์ เมื่อวันที่ 26 ส.ค. 2562

บริษัทฯ ได้รับรองการต่ออายุ เป ็ นสมาชิกของแนวร่วม ปฏิบัติของภาคเอกชน ไทย ใน การต่อต้านทุจริต (CAC)

บริษัทฯ ได้รับรางวัล 5 ดาว ( ) กลุ่มดีเลิศ (Excellent)

บริษัทฯ ได้รับ รางวัลประเมินคุณภาพ AGM ปี 2561 เท่ากับ 100 คะแนน (ดีเลิศ)

รับรางวัล "องค์กรนวัตกรรม“ เมื่อวันที่ 5 ต.ค. 61

รับมอบฉลากประหยัดพลังงาน ประสิทธิภาพสูง เมื่อวันที่ 14 ม.ค. 62

ได้รับรางวัล“หุ้นยั่งย น” (THSI) ประจ าปี 2561 ต่อเน ่องเป ็ นปีที่ 2

60

SLIDE 61

CSR Activities 2019

ตราเพชร ดูแลพนักงานใส่ใจชุมชน เอื้อเฟื้อสังคม

จุดตรวจหลักและบริการประชาชน เพื่อป้องกันและลด อุบัติเหตุทางถนนช่วงเทศกาลสงกรานต์ ปี 2562 บริษัทฯ มอบหมวกให้กับ นายวิสุทธิ์ คงสุจริต สวัสดิการ และคุ้มครองแรงงานจังหวัดสระบุรี เพื่อน าไปแจก ประชาชนที่มาร่วมงานพระราชพิธีบรมราชาภิเษก

61

SLIDE 62

Diamond Building Products Public Company Limited

69-70 Moo 1, Mitraphap Road - km. 115, Tambon Talingchan, Amphur Muang, Saraburi 18000 Tel: 0-3622-4171-8 Fax: 0-3622-4187 Call Center : 0-2619-2333 Website: www.dbp.co.th

THANK YOU

For further information & enquiries, please contact our investor relations at:

Telephone: 0-3622-4171-8 Ext. 193 Email: corpcenter@dbp.co.th

62