Diamond Building Products PCL Corporate Presentation : Q1/2017 - - PowerPoint PPT Presentation

Diamond Building Products PCL

Corporate Presentation : Q1/2017 Performance

Opportunity Day On Wednesday 8 June 2017 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 6,183 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 June 1, 2017.
• 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

• 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 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

2016 Launched new products : RLC

• Diamond Lintel
• Diamond Kitchen Counter
• Diamond Door Frame

Launched new Jearanai Tile :

• Thai Classic
• Elegant
• Thai Lanna

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 March 8, 2017.

Myriad Materials 53.2% Srivikorn and Pradipasen Families & Management 3.7% Treasury Shares (DRT) 9.5% Free-float 33.6% Foreign Institutions 0.4% Thai Institutions 76.8% Thai Individuals 22.8%

Totaling 66.4%

Production Base

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Source: Company estimate as at May 29, 2017.

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

Chiangmai

Capacity: 50,000 ton/yr Product:

• Autoclaved aerated

concrete (AAC)

Saraburi

Capacity: 882,000 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 FY2017: 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, Diamond Truss,

Services

Roof stripping and installation Re-roofing

Sales of Products 92% Service income 8%

Note: 1. Percentage based on 1Q17 revenues from sales and services.

New RLC :

• Diamond Lintel
• Diamond Kitchen

Counter

• Diamond Door Frame

Distribution Channels

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14% Modern Trade

Leading construction materials and home improvement specialty stores

18% Export

To 9 Destinations in Asia Region

11% Projects

Direct sales to leading residential developers:

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

Note: Percentage based on value of 1Q17 sales.

Laos Vietnam Cambodia China Myanmar India Taiwan Philippines Malaysia

Agent (mom&pop )

57%

Agent (mom&pop )

1Q16 11% 58% 12% 19%

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

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 2017

ISO 9001 : 2015

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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 … 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.

Launched new Jearanai Tile in 2016 : 3 Models Jearanai Tile : The original model : Thai Modern

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

1,144 1,117 972 931 1,144 1,165 242 116 77 69 242 238 129 116 77 69 *129 136 200 400 600 800 1,000 1,200 1,400 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17

• Bt. million

Total revenues EBITDA Net profit 1Q17 Net Profit analysis

• 1Q17 Net Profit increased 5% YoY, due to

the increase in sales from every distribution channel, and also from the reduction of manufacturing costs and selling expenses. 17

% QoQ Growth 1Q16 2Q16 3Q16 4Q16 1Q17 Total revenues 25% (2%) (13%) (4%) 25% EBITDA 53% (8%) (22%) (2%) 40% Net profit 120% (10%) (34%) (10%) 96% % YoY Growth 1Q16 Total revenues 2% EBITDA (2%) Net profit 5%

Remark : 1Q17 Net Profit analysis * Included the extra profit from the sale of unused land of Baht 23.12 million. If the extra profit had not been included in the net profit of previous year, the net profit would increase by 27.66% YoY.

Revenues from Sales and Service

18 1Q17 Total revenues analysis

• 1Q17 Revenues from sales and Service increased

5% YoY, due to the increase in sales revenue from roof tiles, siding board, board and autoclaved aerated concrete.

Tiles 51% Board & ceilings 15% Siding boards 18% Special products 6% Other products 2% Service 8%

1Q17 Revenues breakdown

1,110 1,114 967 927 1,110 1,160 200 400 600 800 1,000 1,200 1,400 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 THB million Tiles Board & ceilings Siding boards Special products Other products Service

YoY 5% QoQ 25%

822 812 720 669 822 843 200 400 600 800 1,000 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 THB million Raw materials Utilities Depreciation Labour Services Permanent labour

Raw materials 55% Utilities 7% 7% Labour 2% Services 11% 7% 5% Others 6%

1Q17 Costs breakdown

Depreciation maintenance Permanent labour

Costs of Sale and Service Breakdown

19 1Q17 Costs analysis

• 1Q17 Costs of sales and Service increased 3% YoY, due to the increase in

sales volume of 6.52 percent.

Costs 1Q16 2Q16 3Q16 4Q16 1Q17 Variable costs 71% 70% 69% 64% 70% Fixed costs 19% 20% 20% 24% 19% Service costs 10% 10% 11% 12% 11%

YoY 3% QoQ 26%

154 155 150 166 154 149 50 100 150 200 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 THB million Personnel Promotion Packaging Others

SG&A Expenses

20 1Q17 SG&A analysis

• 1Q17 SG&A expenses decreased 3% YoY, due to the decrease in

marketing and sales promotion expenses.

Personnel 48% Promotion 13% Packaging 11% Others 28%

1Q17 SG&A breakdown QoQ 10%

288 302 247 259 288 317 26% 27% 25% 28% 26% 27%

• 10%

0% 10% 20% 30% 40% 50% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 % Margin THB million

Gross Profit

Gross profit (LHS) GP Margin/1

Profit Margins

21 YoY 10% QoQ 23% QoQ

96%

YoY 2% QoQ 40% Gross Profit EBITDA Net Profit

242 223 173 170 242 238 129 116 77 70 129 136 21% 20% 18% 18% 21% 20% 11% 10% 8% 7% 11% 12%

• 10%

0% 10% 20% 30% 200 400 600 800 1,000 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 % 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 5%

129 116 77 70 129 136 250 287 107 66 250 296 100 63 63 63 100 25 5 3 5 4 5 4

• 136

142

• 50

100 150 200 250 300 350 400 1Q16 2Q16 3Q16 4Q16 1Q16 1Q17 THB million

Net Profit CFO Repayment Long Term Interest paid Dividends paid

Cash Flows

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1Q17 cash flows analysis

• 1Q17, บริษัทฯ มีก ำไรสุทธิ 136 ล้ำนบำท, มีกระแสเงินสดจำกกำร

ด ำเนินงำน 296 ล้ำนบำท ซึ่งเพียงพอต่อกำรจ่ำยช ำระเงินกู้ระยะยำว เงิน ปันผล และดอกเบี้ยจ่ำย

Capital Structure

23 1Q17 debt analysis

• As at end of 1Q17, net interest-bearing debt

to equity was 0.30 times, which is decreased from end of the previous year, due to the increase in equity but decrease in debt .

Short- term 100%

Interest bearing debt THB 678 million

Average interest rate of 1.82% p.a. as follows

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

22 57 59 14 28 21 64 610 930 1,486 1,212 838 918 678 2,047 2,214 2,300 2,245 2,324 1,896 2,031 0.29 0.39 0.62 0.53 0.35 0.47 0.30

0.00 0.20 0.40 0.60 0.80 500 1,000 1,500 2,000 2,500 3,000 3,500 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 1Q17

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

Fixed 11% 89% Floating

Share Information and Dividend

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Source: www.set.or.th as of June 1, 2017.

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 6,183 million Foreign limit: 49.00%

Share information

Stock price : THB 5.90 per share P/E 14.04 Times P/BV 2.75 Times Dividend yield 5.08%

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

% Tons per year EPS DPS Dividend payout (RHS)

Income Statements

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P&L Highlight (in THB million) 1Q17 1Q16 % YoY change REVENUES Revenues from sales and services

1,160 1,110 4.5%

Other incomes

5 34

• 85.4%

Total revenues

1,165 1,144 1.8%

COSTS Costs of sales and services

843 822 2.6%

Other costs

• 0.0%

Total costs

843 822 2.6%

Selling and administrative expenses

149 154

• 2.7%

Operating profit

173 169 2.5%

Finance costs

4 5

• 19.4%

Income tax

33 34

• 3.2%

Net profit

136 129 4.8%

Balance Sheets

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Balance Sheet (in THB million) Mar 31, 2017 Dec 31, 2016 % change Assets Cash & cash equivalents 64 21 212.4% Trade & account receivables 671 592 13.4% Inventories 577 622

• 7.3%

Other current assets 7 5 44.4% Total current assets 1,319 1,239 6.5% Property, plant, and equipment 1,839 1,892

• 2.8%

Non-current assets 105 106

• 1.0%

Total assets 3,263 3,238 0.8% Liabilities Short-term loans 603 818

• 26.3%

Current portion of long-term loans 75 100

• 25.0%

Other current liabilities 423 295 43.6% Total current liabilities 1,101 1,213

• 9.2%

Long-term loans

• 0.0%

Other non-current liabilities 131 129 1.1% Total liabilities 1,232 1,342

• 8.2%

Equities Retained earnings 1,172 1,037 13.1% Total equities 2,031 1,896 7.2%

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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 2017 - 2019

• 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 : TV Spot

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Radio Spot & In Store Media

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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Printed Advertising

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

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Printed Advertising

Printed Ads. 2017 : เคาน์เตอร์ / คานทับหลัง / อิฐมวลเบา / กระเบื้องเจียระไน / ไม้รั้ว / ไม้ตกแต่ง

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35

Billboard & Digital Billboard

36

Project Reference

37

Marketing Communication : Signboard

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Catalog & Leaflet

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Premium

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Product Display : Stand Show

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Product Display : Booth

Modern Trade : Global House Grand Opening

โกบอลเฮ้าส์ สุราษฎร์ธานี Grand Opening 04.03.2017 โกบอลเฮ้าส์ นครศรีธรรมราช Grand Opening 05.03.2017 GBH กาญจนบุรี : Grand Opening 18.03.60 GBH ประจวบฯ : Grand Opening 19.03.60

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43

Modern Trade Activities

ไทวัสดุ คนไทหัวใจเพชร 2560

Division Sales 2 จาก 34 สาขา + 5 OPT. สนญ. : เยี่ยมชม NT10 / CT5 / คลัง CT / คลัง FC อบรมผลิตภัณฑ์ จตุลอน ไม้ป ิ ดกันนก ไม้พื้น ฝ้าระบายอากาศ Lintel & Counter และบริการถอดแบบ ติดตั้งหลังคา

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Modern Trade : Promotion

ไทวัสดุ : โปรโมชั่น บริการติดตั้งหลังคา ไทวัสดุ : Line@Thaiwatsadu : 4 May 2017

Product Training : อบรมพนักงานขาย สัมมนาช่าง

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Product Training : สาธิตการติดตั้ง และการใช้งานสินค้า

46

Marketing Activities : Export

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Export Marketing Communications

Signboard / Banner / Poster

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Export Marketing Communications

Cambodia : Poster Laos : Jatulon Premium Cambodia : Name card Cambodia : Installation Manual

50

Export Marketing Communications

Product Display / Stand

51

Export Marketing Activities

Cambodia : Mar. 2017 : Product & Installation Training

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Laos DIAMOND Party & Visit Customers, Jan. 2017

Export Marketing Activities

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Myanmar Visit Customers Jan. – Feb. 2017

Export Marketing Activities

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India : Plant Visit Feb. 2017

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) 55

CSR Activities 2017

ตราเพชร ดูแลพนักงานใส่ใจชุมชน เอื้อเฟื้อสังคม

บริจาคสินค้าให้กับแขวงการทางจังหวัด สระบุรีเพื่อสร้างบ้านพักให้กับพนักงาน

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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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