Diamond Building Products PCL Corporate Presentation : 3Q/2016 - - PowerPoint PPT Presentation

Diamond Building Products PCL

Corporate Presentation : 3Q/2016 Performance

Opportunity Day On Thursday 8 December 2016 at 10.10 – 11.10 at SET Meeting Room 603

Disclaimer

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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.

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AGENDA

• Company Overview
• Financial Performance
• Business Expansion
• Appendix

Company Overview

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Business Overview

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• 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 5,345 million/1. Construction materials market share /2

Siam Cement Group 45% Mahaphant Group 24% DRT 15% Kiternit Group 5% Others 9% Source:

• 1. www.set.or.th as of November 30, 2016.
• 2. Ministry of Commerce. Based on FY2015 sales value.

Milestones

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1985 - 1999 2000 - 2009

2014 2005 Listed on the Stock Exchange of 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” 2001 Changed the name to Diamond Roofing Tiles Co., Ltd. 2013

• Established its firstly owned 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

Strategic Shareholders

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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 August 30, 2016.

Myriad Materials 53.2% Srivikorn and Pradipasen Families & Management 3.7% Treasury Shares (DRT) 9.5% Free-float 33.6% Foreign Institutions 0.3% Thai Institutions 35.1% Thai Individuals 64.6%

Totaling 66.4%

Production Base

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Source: Company estimate as at November 30, 2016.

Existing production facilities Future production facilities Existing distribution center (DC)

Chiangmai

Capacity: 50,000 ton/yr Product:

• Autoclaved aerated

concrete (AAC)

Saraburi

Capacity: 892,000 ton/yr Product:

• Tiles
• Board and ceiling
• Siding board
• Autoclaved aerated

concrete (AAC)

Khon Kean

Capacity : 40,000 ton/yr Product: Tiles

Distribution Center, Khon Kean

Total Capacity FY2016: 982,000 ton/yr

Cholburi

Strategies Behind Our Success

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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.

Product and Service Segmentation

10 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, Ultra Truss,

Services

Roof stripping and installation Re-roofing

Sales of Products 92% Service income 8%

Note: 1. Percentage based on 3Q16 revenues from sales and services.

Distribution Channels

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13% Modern Trade

Leading construction materials and home improvement specialty stores

16% Export

To 9 Destinations in Asia Region

13% Projects

Direct sales to leading residential developers:

• Land & House
• Pruksa
• Supalai
• Sansiri
• Asia Property
• Prinsiri
• Golden Residence

Note: Percentage based on value of 3Q16 sales.

Laos Vietnam Cambodia China Myanmar India Taiwan Philippines Malaysia

Agent (mom&pop )

58%

Agent (mom&pop )

3Q15 12% 60% 12% 16%

Logistic System and Trainings

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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

Diamond … A Trusted Brand

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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.

Source: “BrandAge” Magazine dated February 2016.

เครื่องหมาย มอก. กระเบื้องคอนกรีต แบบลอน & เรียบ THAILAND TRUSTED MARK ตราสัญลักษณ์รับรองสินค้า ประเทศไทย

BrandAge February 2016

ISO 9001 : 2015

Diamond … A Trusted Brand (“Jearanai Tile”)

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“บ้านปลุกปรีดี” ได้รับ “รางวัลอาคารอนุรักษ์ศิลปสถาปัตยกรรมดีเด่น” ประจ าปี 2558 ประเภทอาคาร เคหสถานและบ้านเรือนเอกชน เมื่อวันที่ 10 เมษายน 2558 จาก สมาคมสถาปนิกสยาม ในพระบรมราชูปถัมภ์

(The Association of Siamese Architects under Royal Patronage of His Majesty the King : ASA)

Source: “BrandAge” Magazine dated January 2012.

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

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Financial Performance

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Financial Highlights

1,184 1,140 942 912 1,117 972 211 226 170 158 223 173 95 109 68 59 116 77 200 400 600 800 1,000 1,200 1,400 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16

• Bt. million

Total revenues EBITDA Net profit

3Q16 Net Profit analysis

• 3Q16 Net Profit increased 14% YoY,

This was due to good expansion of export market and decrease in selling and administrative expenses of 1.56%.

% QoQ Growth 1Q15 2Q15 3Q15 4Q15 3Q16 Total revenues 28% (4%) (17%) (3%) (13%) EBITDA 77% 7% (25%) (7%) (22%) Net profit 436% 15% (38%) (13%) (34%) % YoY Growth 3Q15 Total revenues 3% EBITDA 2% Net profit 14%

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Revenues from Sales and Service

18 QoQ 13% YoY 3% 3Q16 Total revenues analysis

• 3Q16 Revenues from sales and Service increased

3% YoY, due to the increase in sales revenue from board products and siding board.

1,180 1,137 940 908 1,114 967 200 400 600 800 1,000 1,200 1,400 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 THB million Tiles Board & ceilings Siding boards Special products Other products Service

Tiles 47% Board & ceilings 18% Siding boards 18% Special products 7% Other products 2% Service 8%

3Q16 Revenues breakdown

889 828 699 672 812 720 100 200 300 400 500 600 700 800 900 1,000 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 THB million Raw materials Utilities Depreciation Labour Services Permanent labour

Raw materials 53% Utilities 7% 9% Labour 2% Services 11% 6% 6% Others 6%

3Q16 Costs breakdown

Depreciation maintenance Permanent labour

Costs of Sale and Service Breakdown

19 YoY 3% QoQ 11% 3Q16 Costs analysis

• 3Q16 Costs of sales and Service increased 3% YoY, due to an increase in

sales volume of 5.79 percent but there was a decrease in depreciation.

Costs 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 Variable costs 71% 70% 67% 67% 70% 69% Fixed costs 18% 19% 21% 22% 20% 20% Service costs 11% 11% 12% 11% 10% 11%

165 166 152 153 155 150 50 100 150 200 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 THB million Personnel Promotion Packaging Others

SG&A Expenses

20 3Q16 SG&A analysis

• 3Q16 SG&A expenses decreased 2% YoY, due to the decrease in

depreciation and amortization of Baht 3.50 million but increase in other expenses of Baht 1.50 million.

Personnel 41% Promotion 21% Packaging 10% Others 28%

3Q16 SG&A breakdown QoQ 3%

291 309 241 236 302 247 25% 27% 26% 26% 27% 25%

• 10%

0% 10% 20% 30% 40% 50% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 % Margin THB million

Gross Profit

Gross profit (LHS) GP Margin/1

Profit Margins

21 YoY 3% QoQ 18% YoY 14% QoQ

34%

YoY 2% QoQ 22% Gross Profit EBITDA Net Profit

211 226 170 158 223 173 95 109 68 59 116 77 18% 20% 18% 17% 20% 18% 8% 10% 7% 6% 10% 8%

• 10%

0% 10% 20% 30% 200 400 600 800 1,000 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 % 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.

95 109 68 59 116 77 314 264 77 47 287 107 100 130 100 100 63 63 11 9 6 8 3 5

• 126

126

• 136

142

• 50

100 150 200 250 300 350 400 1Q15 2Q15 3Q15 4Q15 2Q16 3Q16 THB million

Net Profit CFO Repayment Long Term Interest paid Dividends paid

Cash Flows

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3Q16 cash flows analysis

• 3Q16, บริษัทฯ มีก ำไรสุทธิ 77 ล้ำนบำท, มีกระแสเงินสดจำกกำร

ด ำเนินงำน 107 ล้ำนบำท และ 9M16, บริษัทฯ มีก ำไรสุทธิ 323 ล้ำนบำท, มีกระแสเงินสดจำกกำรด ำเนินงำน 644 ล้ำนบำท ซึ่ง เพียงพอต่อกำรจ่ำยช ำระเงินกู้ระยะยำว เงินปันผล และดอกเบี้ยจ่ำย

Capital Structure

23 3Q16 debt analysis

• As at end of 3Q16, net interest-bearing debt

to equity was 0.51 times, which is increased from end of the previous quarter, due to the decrease in equity and increase in debt .

Long- term 3% Short- term 97%

Interest bearing debt THB 999 million

Average interest rate of 2.30% p.a. as follows

• Fixed interest rate of 2.96-4.28 % p.a.
• Floating interest rate of 1.67-1.68% p.a.

57 22 57 59 14 28 46 67 53 192 610 930 1,486 1,212 838 566 549 999 1,859 2,047 2,214 2,300 2,245 2,324 2,453 1,913 1,848 0.07 0.29 0.39 0.62 0.53 0.35 0.21 0.25 0.51

0.00 0.20 0.40 0.60 0.80 500 1,000 1,500 2,000 2,500 3,000 3,500 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 1Q16 2Q16 3Q16

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

Fixed 16% 84% Floating

Share Information and Dividend

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Source: www.set.or.th as of November 30, 2016.

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

Par value: THB 1.00 Listed share: 1,048 million shares Market capitalization: THB 5,345 million Foreign limit: 49.00%

Share information

Stock price : THB 5.00 per share P/E 12.67 Times P/BV 2.62 Times Dividend yield 5.42%

0.29 0.39 0.47 0.46 0.53 0.43 0.29 0.33 0.25 0.30 0.36 0.38 0.40 0.38 0.27 0.25 86% 77% 77% 83% 75% 88% 93% 76% 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

% Tons per year EPS DPS Dividend payout (RHS)

Income Statements

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P&L Highlight (in THB million) 3Q16 2Q16 % YoY change 3Q15 % QoQ change 9M16 9M15 % YoY change REVENUES Revenues from sales and services 967 1,114 -13.2% 940 2.9% 3,191 3,256

• 2.0%

Other incomes 5 2 139.6% 3 89.5% 41 7 494.1% Total revenues 972 1,117 -12.9% 942 3.2% 3,232 3,263

• 0.9%

COSTS Costs of sales and services 720 812 -11.4% 699 3.0% 2,354 2,414

• 2.5%

Other costs

• 0.0%
• 0.0%
• 0.0%

Total costs 720 812 -11.4% 699 3.0% 2,354 2,414

• 2.5%

Selling and administrative expenses 150 155

• 3.0%

152

• 1.6%

458 481

• 4.8%

Operating profit 102 150 -31.6% 91 12.1% 421 368 14.3% Finance costs 5 4 38.5% 6

• 19.2%

14 26

• 47.5%

Income tax 20 30 -31.2% 18 15.5% 84 70 20.5% Net profit 77 116 -33.9% 68 14.0% 323 272 18.6%

Balance Sheets

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Balance Sheet (in THB million) Sep 30, 2016 Dec 31, 2015 % change Assets Cash & cash equivalents 53 28 85.0% Trade & account receivables 551 596

• 7.5%

Inventories (if any) 618 682

• 9.3%

Other current assets 6 30

• 80.2%

Total current assets 1,228 1,335

• 8.1%

Property, plant, and equipment 1,951 2,144

• 9.0%

Non-current assets 109 114

• 4.1%

Total assets 3,288 3,593

• 8.5%

Liabilities Short-term loans 836 450 85.8% Current portion of long-term loans 138 288

• 52.2%

Other current liabilities 341 332 2.9% Total current liabilities 1,315 1,069 23.0% Long-term loans 25 100

• 75.0%

Other non-current liabilities 101 100 1.0% Total liabilities 1,440 1,269 13.5% Equities Retained earnings 989 944 4.7% Total equities 1,848 2,324

• 20.5%

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Business Expansion

Growing with Strategies

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Revenue Growth Target ≥ 5% pa. Gross Profit Margin

25-27%

Total Debt to Equity

≤1.0x

Growth strategies 2016 - 2018

• 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.

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Appendix

Marketing Activities : Domestic

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Corporate Marketing : TVC

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TVC : CT / Jatulon Spot Workpoint Channel ; Super มวยไทย Saturday 4.00 – 6.00 p.m.

Corporate Marketing : Radio Spot

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Radio Spot :

• 1. คือ...ตราเพชร (Corporate)
• 2. CT / 3. ลอนคู่ / 4. ไม้ฝา

(ร้องโดย แมงปอ ชลธิชา อาร์สยาม)

ปั๊ม ปตท. Jiffy 150 สาขาทั่วประเทศ และ Modern Trade ทั่วประเทศ

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Corporate Marketing : Printed Advertising

Printed Ads. : CT / Adamas / Roman Tile / Jearanai / Artificial Wood / Board / อิฐมวลเบา บ้านและสวน, Weekend, BrandAge, คู่สร้างคู่สม

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Corporate Marketing : Billboard

จ.ตราด จ.นราธิวาส ถ.มิตรภาพ จ.สระบุรี

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Corporate Marketing : Project Reference

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DIAMOND STYLE Young Designer Contest 2016

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Event : Baan & Suan Fair 2016

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Modern Trade : Home Expo & Grand Opening

25 มิ.ย. 59 Thai Watsadu Contractor Conference & Meeting Party @Hatyai

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Marketing Communication : Signboard

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Marketing Communication : POP / Banner / Premium

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Marketing Communication : Product Display

Product Training :

อบรมพนักงานขาย สัมมนาและทดสอบฝ ี มือช่าง

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Product Training : สาธิตการติดตั้ง การ ใช้งานสินค้า

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Marketing Activities : Export

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45

Export Marketing Communications

Signage / Banner / Poster

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Export Marketing Communications

Banner

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Export Marketing Communications

Product Display / Stand

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India : Plant Visit Aug. 2016 India : ACETECH Exhibition 2016

Export Marketing Activities

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Myanmar : Diamond Party 2016 in Yangon, Oct 2016 China International Furniture Fair, Sep. 2016

Export Marketing Activities

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Cambodia : CAMBUILD 2016 : WINNER Best at Show Award

Export Marketing Activities

CG Activities

บริษัทฯ ได้รับ ESG-100 เป็นองค์กรที่มีความรับผิดชอบต่อสังคม สิ่งแวดล้อมและมีธรรมาภิบาลจาก สถาบันไทยพัฒน์ และเข้าเป็นสมาชิก เครือข่ายหุ้นส่วนต้านทุจริตเพื่อประเทศไทย (PACT Network)

บริษัทฯ ได้รับรองการเป็นสมาชิกของแนวร่วมปฏิบัติของภาคเอกชนไทยในการ ต่อต้านทุจริต (ACT)

บริษัทฯได้รับรางวัล Investors’ Choice Award จากสมาคมส่งเสริมผู้ลงทุนไทย จากการ ประเมินคุณภาพการประชุมสามัญผู้ถือหุ้น (AGM) เต็ม 100 คะแนนต่อเนื่อง 6 ปี

บริษัทฯ ได้รับรางวัล 5 ดาว ( ) กลุ่มดีเลิศ (Excellent) บริษัทฯ ได้รับ รางวัลประเมินคุณภาพ AGM คะแนนเต็ม 100 (ดีเลิศ) 51

CSR Activities 3Q16

ตราเพชร ดูแลพนักงาน ใส่ใจชุมชน เอื้อเฟื้อสังคม

บริจาคกระเบื้องให้ชุมชนในพื้นที่ จ.สระบุรี

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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

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