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Corporate Presentation March 2017 Strictly Private and Confidential - - PowerPoint PPT Presentation

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Corporate Presentation March 2017 Strictly Private and Confidential 1 No. 1 Mining Contractor in TCLMV With 34 Successful Years of Heavy Mining Main Business: Full-service Mining Contractor Founded: 1970 Registered capital: 1,150

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Strictly Private and Confidential

Corporate Presentation

March 2017

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Strictly Private and Confidential

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“No. 1 Mining Contractor in TCLMV” With 34 Successful Years of Heavy Mining Main Business: Founded:

Registered capital:

  • No. of Shares:

Listing:

Full-service Mining Contractor 1970

1,150 Million Baht 1,150,000,000 Shares October 26, 2016

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Strictly Private and Confidential

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“No. 1 Mining Contractor in TCLMV” With 34 Successful Years of Heavy Mining

Operates 2 Largest Coal Mines: Mae Moh & Hongsa Mines New Project is Tin Mine in Myanmar Backlog: 39,000 THB Million Baht (approx.) 45 Engineers and 1,000+ Employees

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  • Large Capital Investment

Need Proven Track Records Need Highly Experienced Mine Experts

  • New Projects Bidding : 150,000 MB+
  • Mae Moh Contracts 9-10-11 and

Hongsa Contracts G & H

  • New Mines Opening:
  • Coal Mines, Tin Mines, Potash Mines etc.

Mining Construction Industry (TCLMV)

  • High-Barrier to Entry
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  • Mining Construction Industry (TCLMV)

Oligopoly Market with 2 large Players

SQ has over 50% market shares SQ: The Only Mining Expert in CLMVT

  • Largest Team of Experienced Mine Experts
  • Extensive Mine Equipment
  • Strongest 34-year Mine Experiences & Track

Records

  • Overall Mining Expertise

Strictly Private and Confidential

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“ Highly Experienced Management and Operational Team with Proven Track Record "

฀ Management and Operational team with over 30 years of experience in coal mining industry ฀ Well established relationship with sponsors Management and Operational Team with Extensive Experiences in Mining Industry

  • Mr. Somboon Maneenawa

Chairman of the Board

  • Past experience:

−EGAT Governor (1992-1995)

  • Mr. Nopphan Muangkote

Chairman of Executive Committee

  • Director at International Business Lawyers Co., Ltd. and PF

Controls Group Ltd (Present)

  • Independent Director at AEONTS, AMATA and Charoensin

Property Co., Ltd. (Present)

  • Mr. Sasavat Sirison

Chief Executive Officer

  • Over 28 years of experience with SQ
  • Mr. Vitavat Sirison

Chief Operation Officer

  • Over 23 years of experience with SQ
  • Mr. Pavat Sirison

Chief supply chain manager

  • Over 10 years of experience with SQ
  • Mr. Kavit Sirison

Chief Financial Officer

  • Director of Microfinance Strategy Development department at Ministry
  • f Finance(2010-2012)
  • Mr. Ouychai Klaitubtim

Mae Moh Director

  • Over 40 years of experience in mining industry
  • Mr. Jaturaporn Boonyasatit

Executive Committee member

  • Over 45 years of experience in mining industry
  • Over 35 years of experience with SQ
  • Mr. Sarin Wannalee

Executive Committee member

  • Over 29 years of experience with SQ
  • Over 35 years of experience in mining industry
  • Mr. Vitoon Chinwanichai

Hongsa Director

  • Over 30 years of experience in mining industry
  • Mr. Chatree Keatkongkeaw

Project manager

  • Over 29 years of experience in mining industry
  • Over 19 years of experience with SQ
  • Mr. Pornpong Chaijaroen

Project manager

  • Over 26 years of experience in mining industry

Strictly Private and Confidential

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Business Overview

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Stable Revenue via Long-Term Contract w Credible Sponsors

Credible Counterparties Supported by Respective Government

‘SQ’ Business Model

  • Long-term Contract
  • Stable Revenue with

Growth

  • Credible Sponsors
  • Oligopoly Business
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Mae Moh Power Plant

Existing Capacity

Coal Usage : approx. 15 mil. tons/ year

Units 4 – 7 8 – 13 Total Installed Capacity 4 x 150 MW 6 x 300 MW 2,400 MW

Mae Moh Project Overview

Mae Moh Mine Planning

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ScopeofWorks Contract Volume Contract Value (THBmm) SQ’sBacklog(endof2016) Volume Value(THBmm) Job 1Soilexcavationandtransportation Job 2Coalexcavationandtransportation 375.0m.BC M 31.0m.tons 21,641 1,230 365.3m.BCM 31.0m.tons 20,598 1,230 22,871 21,828

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Backlog Backlog 2016 2025 2015 2017 2018 2019 2020 2021 2022 2023 2024

Strictly Private and Confidential

‹#› 1.4 5.1 9.6 365.4

Job 1: Soil excavation (m.BCM)

Cumulative Planned Cumulative Actual / Backlog

7.5 31.0

Job 2: Coal excavation (m.tons)

Cumulative Planned Cumulative Actual / Backlog

Contract Counter Parties : Project Duration :

Mae Moh 8 Backlog

Mae Moh 8

EGAT / SQ January 2016 – December 2025

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ScopeofWorks Contract Volume Contract Value (THBmm) SQ’sBacklog(endof2016) Volume Value(THBmm) Job 1Soilexcavationandtransportation Job 2Coalexcavationandtransportation Job 3Soiltransportation(excavationbyEGAT) 365.0m.BC M 50.0m.tons 40.0m.BCM 18,602 2,463 842 43.7m.BCM 5.4m.tons

  • m.BCM

1,981 244 99 (m.BCM)

400.

21,906 2,324

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Mae Moh 7 Backlog

EGAT / ITD-SQ November 2008 – April 2020

133.7

300.

365

Total

98

Performed prior to 2012 Joint Operation (Full scope)

Job 1: Soil excavation

37.5 25. 12.5 0. 62.5 50.

50

Total

11

Performed prior to 2012

16.8

Joint Operation (Full scope) 200. 100. 0.

Job 2: Coal excavation (m.tons)

5

10. 0. Total Performed prior to 2012 Joint Operation (Full scope)

Job 3: Soil excavation by EGAT (m.BCM)

50. 40. 30. 20.

40

8.3

140 105 70 35

41.4

2014

69.2

2015

91.5

2016

Cumulative Planned Cumulative Actual 27.0 13.7

2012 2013 14.0 10 5 20 15 2.7 2012 5.4 2013 7.6 2014 10.0 2015 2016

Cumulative Actual

11 8 4 15 7.1 2014 8.3 2015 8.3 2016

Cumulative Actual

3.6 0.4 2012 2013

  • None -

Strictly Private and Confidential Mae Moh 7

Contract Counter Parties : Project Duration :

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Installed Capacity (MW) Utilized Capacity (MW)

1 626 551 2 626 551 3 626 551 Total 1,878MW 1,653M W

Strictly Private and Confidential

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Hongsa Project Overview

Total Coal Resource : Approx. 577.4 m.tons Potential Future Projects:

  • During 25 years of its concession, Hongsa Power (HPC) requires services for the excavation of soil

and coal of 1,250 m.BCM and 370.8 m.tons, respectively

  • Of which, the excavation of 437 m.BCM soil and 205.6 m.tons coal are yet being awarded.

Dumping Area Dumping Area

Mining Area

Existing Capacity Coal Usage : approx. 14 m.tons/ year

Hongsa Project

Hongsa Mine Planning

Myanmar Project

Mae Moh 8 Mae Moh 7

Hongsa Power Plant

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ScopeofWorks Contract Volume Contract Value (THBmm) SQ’sBacklog(endof2016) Volume Value(THBmm) Job 1Soilexcavationandtransportation Job 2Coalexcavationandtransportation 207.0m.BC M 82.5m.tons 8,481 3,262 186.5m.BCM 79.6m.tons 7,624 3,140

11,743 10,764

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Backlog Backlog 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Strictly Private and Confidential

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Hongsa Project Backlog

Job 1: Soil excavation (m.BCM) Job 2: Coal excavation (m.tons)

5.2 14.5 19.7 186.5

Cumulative Planned Cumulative Actual Backlog

2.9 2.9 79.6

Cumulative Actual Backlog

Note: * Actual production is as of 1H/2016

Hongsa Project

Myanmar Project

Mae Moh 8

HPC / SQ June 2015 – December 2026

Mae Moh 7

Contract Counter Parties : Project Duration :

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Project ProjectValue ProjectDuration Phase1:TinConcentrate 3,672THBmm 2017-2024

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Myanmar Project

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2,324 10,764 13,088

  • 2,324
  • 34,916
  • 38,616

10,000 20,000 MM7 Hongsa MM8 Myanmar Total

Stable Revenue via Long-Term Contract with Credible Sponsors

Highly Visible Backlog with over THB 39 bm for the Next 11 Years ฀ SQ current project operations are Mae Moh 7, Hongsa Phase D and Mae Moh 8 With Remaining Backlogs THB 39 BM for the Next 10 Years

THB mm 40,000 3,700 30,000 21,828 Note: As of December 2016

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Total Value of Contracted Work (Backlog)

Project

  • 1. Mae Moh Project
  • Contract 7
  • Contract 8
  • 2. Hongsa Project

Project Year

2009-2020 2016-2025 2015-2026

Remaining Project Value

2,323 THB mm 21,828 THB mm 10,764 THB mm

  • 3. Myanmar Tin Project 2017-2024

3,672 THB mm Total up to 2026 38,587 THB mm

Strictly Private and Confidential

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Key Financial Highlights – Stable Revenue with EBITDA Margin Growth

1,736 1,841 1,585 1,445 1,238

  • 247

731 146 74 56

  • 29
  • 30

625 1,250 1,875

Total Revenues (THB.m)

2,500 2012 2013 2014 2015 2016

1,810 1,897 1,614 1,868

MM7 & 7/1 Others MM8 Hongsa

2,890

897

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Key Financial Highlights – Stable Revenue with EBITDA Margin Growth

Profits (THB.m)

501 480 381 490 828 613 648 557 683 101 141 49 89 323 33.9% 34.1% 34.5% 36.6% 41.4% 1,196 10% 50%

  • 25

356 738 1,119 1,500 2012 2013 2014 2015 2016

Gross Profit EBITDA % EBITDA (RHS) NI

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2,867 2,749 4,489 6,004 2,527 2,360 3,749 340 389 740 2,251 3.72 3.00 1.12 3,753 2.9808 2.6081 3.2585 2.15 (14) (9) (3) 3 8 2,500 5,000 7,500

Assets, Liabilities and Shareholder’s Equity (THB.m)

10,000 5.65 2013 2014 2015 2016

Assets Liabilities Shareholder's Equity IBD/Equity IBD/EBITDA

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Overall Financial Position

4.6% 1.8% 2.5% 6.2% 21.81% 20.82% 20.58%

  • 10%

0% 20% 10%

Ratios (Times)

30% 2013 2014 2015 2016

ROA

26.23%

ROFA

Note: * Annualized net profit to calculate key ratios for 3Q2016

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Business Outlook 2017-2020

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Myanmar Tin Mines etc. Vietnam Coal Mines Cambodia Coal Mines Thailand Laos Mae Moh Phase 8, Potash Mine Coal Mines, Gold Mines, Copper Mines

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Corporate Strategies: Growing in ‘TCLMV’

  • 1. Increase Revenues from ‘Existing Core Customers’

Bidding: EGAT, Mae Moh Contract # 9 “Est Project Value: 30,000 THB Million Baht”

Strictly Private and Confidential

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“Promising Growth” From Continuing Projects

Project Project Year Total Production  Phase 9 2019 – 2030 400 m BCM  Phase 10 2026 – 2037 460 m BCM  Phase 11 2029 – 2045 460 m BCM

Mae Moh Mine

Project Bidding Year Total Production  Phase G 2019 190 m BCM  Phase H 2025 213 m BCM

Hongsa Mine

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Project Description BidOpe n Project Duration

Phase9

  • Soilexcavation460millionBCM
  • Projectvalueapprox.30,000THBmm

2017

2019–2030

Phase10

  • Soilexcavation490millionBCM
  • Projectvalueapprox.35,000THBmm

2024

2026–2037

Phase11

  • Soilexcavation490millionBCM
  • Projectvalueapprox.40,000THBmm

2027

2029–2045 Strictly Private and Confidential

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Mae Moh Project

Potential Future Projects:

Remaining Coal Resource :

  • Approx. 300 million tons
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Corporate Strategies: Growing in ‘CLMV’

  • 2. Expand ‘New’ Coal- Mine ‘Customers’

Seeking Coal Mine Work for Power Plant project in Laos Received ‘Letter of Intent’

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Project Description

Phase1

  • SitePreparation:1,000THBmm

Phase2

RoadandInfrastructure MineConstructionBidding

Strictly Private and Confidential

NEW COAL MINE

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Corporate Strategies : Growing in ‘CLMV’

  • 3. Expand into New “Non-Coal” Long-Term Mine Projects

Tin Mines in Myanmar

One of World’s largest Tin Reserve

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Project ProjectValue ProjectDuration Phase1:TinConcentrate 3,672THBmm 2017-2024

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Myanmar Project

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Summary

“No. 1 Mining Contractor in CLMVT”

Secure 39,000 Million Baht Backlog for 10 Years Revenues Among Highest Gross Margin (29%)

& Highest Net Margin ( 11.2%) in Contractor Sectors More Stable and Predictable Income for 10 years Growing Earnings from Increased Business Volumes & New Projects

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Q&A