Global Presence Aesthetic Excellence Business Integrity - - PowerPoint PPT Presentation

OPPORTUNITY DAY | 11 MARCH 2019

Global Presence • Aesthetic Excellence • Business Integrity

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THE BEGINNING OF THE NEW JOURNEY

Agenda

• COMPANY OVERVIEW
• PRODUCTS & SERVICES
• FINANCIAL HIGHLIGHT
• ACTIVITIES & OPPORTUNITIES
• Q & A

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Overview

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TCM Corporation Structure

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Total: 15 subsidiaries

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Proportion of TCMC business

(Historical record 2016-2018)

TCM Flooring 15% TCM Living 54% TCM Automotive 31%

2016 (3,872.07 MB)

TCM Flooring 20% TCM Living 61% TCM Automotive 19%

2017 (7,633.13 MB)

TCM Flooring 35% TCM Living 50% TCM Automotive 15%

2018 (9,546.56 MB)

TCM Global business – our offices

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Flooring business Living business Automotive business

Calhoun UK Singapore HK Macau China India Chiang mai Pathumthani Bangkok Had Yai Samutrprakarn Ayutthaya UAE

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Our Business

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Financial Highlight

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TCMC Consolidated Operating Performance

(FY17 VS FY18 performance)

7,633.14 1,990.84 685.41 347.21 9,546.56 2,859.46 990.76 408.88 2,000 4,000 6,000 8,000 10,000 12,000 Sales Gross profit EBITDA Net profit Unit: MB

YoY Performance

FY2017 FY2018

Diff 25.07% Diff 43.63% Diff 44.55% Diff 17.76%

% to sales

100% 100% 26.08% 29.95% 8.98% 10.38% 4.55% 4.28%

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Business Performance

1,556.85 530.99 169.32 109.53 3,327.05 1,270.32 330.86 229.36 500 1,000 1,500 2,000 2,500 3,000 3,500 Sales Gross profit EBITDA Net profit Unit: MB

YoY Performance*

FY2017 FY2018

Diff 113.70% Diff 139.24% Diff 95.40% Diff 113.56%

% to sales

100% 100% 34.11% 38.18% 10.88% 9.94% 7.04% 7.03%

*TCM Flooring performance excluded Corporate expenses & Interests

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Business Performance

1,424.03 321.64 279.24 177.39 1,431.78 329.45 283.96 176.87 200 400 600 800 1,000 1,200 1,400 1,600 Sales Gross profit EBITDA Net profit Unit: MB

YoY Performance

FY2017 FY2018

Diff 0.54% Diff 2.43% Diff 1.69% Diff

• 0.29%

% to sales

100% 100% 22.59% 23.01% 19.61% 19.83% 12.46% 12.35%

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Business Performance

106.49 26.38 6.35 5.38 110.99 29.22 8.71 7.76 20 40 60 80 100 120

Sales Gross profit EBITDA Operating Income (Alstons&DMMH)

Unit: Million GBP

YoY Performance*

FY2017 FY2018

Diff 4.23% Diff 10.76% Diff 37.27% Diff 44.31%

% to sales

100% 100% 24.47% 26.32% 5.96% 7.85% 5.05% 6.99%

GBP *TCM Living performance excluded Amortization of intangible assets & Interests

6,317.78 6,033.17 2,698.06 3,421.93 0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 2017 2018

Unit: MB

Statement of Financial Position

Total Liabilities Equity 9,015.84 9,455.70 Total Assets 17

TCMC Consolidated Operating Performance

D/E Ratio 2017 2018 2.34

1.76

ROE 2017 2018 12.87%

11.95%

ROA 2017 2018 3.85%

4.32%

EPS (Baht) 2017 2018 0.42

0.36

Current Ratio (Times) 2017 2018 0.72

1.52

Quick Ratio (Times) 2017 2018 0.50

1.01

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TCM Flooring Performance by Quarter

(Q1-Q4 2018)

• 20,000

40,000 60,000 80,000 100,000 120,000 140,000 160,000

• 200,000

200,000 400,000 600,000 800,000 1,000,000 1,200,000 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Unit : ‘000 THB Unit : ‘000 THB

TCM Flooring QoQ Performance

COGS Expenses Operating Income EBITDA

71.72% 65.48% 66.81% 60.44%

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TCM Living Performance by Quarter

(Q1-Q4 2018)

1 1 2 2 3 3 4 4 5 10 15 20 25 30 35 40 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Millions Unit : GBP Millions

TCM Living QoQ Performance

COGS SD&A expense Operating Income EBITDA

74.15% 74.29% 73.91% 72.66%

Activities

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LVT, Flatweaves 2% Axminster 59% Handtufted & Passtufted 3% Broadloom 8% Carpet Tiles 12% Needle Punch 13% Other 3%

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Hospitality Sector Automotive Sector Private Label

(Residential Sector)

Corporate Sector Installation & Service

TCM FLOORING: PRODUCTS

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TCM Flooring Sales Strategies

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CUST STOMERS RS: : HOSPITALITY + BOUTIQUE & RESIDENTIAL

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*

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ADDRESSABLE HOSPITALITY MARKET:

Brintons 21% Royal Thai 22% Ulster 7% Crossley 5% Couristan 5% Shanhua 5% OW 4% Haima 4% Other European Mills 4% Other Chinese Mills 23%

Growth Initiatives 2019

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PEOPLE

• Strategic New Hires to Increase Growth in US,

Singapore & EMEA

• Agents Signed in Mexico & Japan

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KEY SECTOR: CRUISE

27 New Builds LAUNCHED IN 2018 Harmony of the Seas

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KEY SECTOR: AIRPORTS

RECENT COMPLETIONS: HK Airport: 85,000 square meters Changi Airport Suvarnaphumi Airport

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KEY SECTOR: PRIVATE JETS

Market Size: $45 Million Royal Thai: $.5 Million

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KEY SECTOR: RTPL/RESIDENTIAL

Market Size: US: $140 Million EMEA: $50 Million ASIA: $20 Million Royal Thai: US: $1.5 Million EMEA: $1.6 Million ASIA: $0.2 Million

TCM Flooring Sales Strategies

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CUST STOMERS RS: : CORPORATE, EDUCATION, HEALTHCARE

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CARPET TILE MARKET

33 2016 2017 2018 Domestic 3,564,366 3,909,094 3,962,033 Export 6,373,629 6,326,199 7,620,672 6.37 6.33 7.62 3.56 3.91 3.96 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 Unit: USD Millions

Total Sales Carpet tiles (Domestic & Export)

Total 9,937,995 10,235,293 11,582,705

CARPET TILE MARKET

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Growth Initiatives 2019

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KEY MARKETS: INDIA, BRAZIL, NEW ZEALAND

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CARPETS INTER: THE RECYLCING MANUFACTURER

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EC ECOS OSOF OFT T US USES ES ROUG OUGHL HLY Y 50X5 X550 ML. ML. RECYCLED PET PET BO BOTT TTLES ES FOR OR EVE EVERY Y SQ SQUAR ARE E METE METER R OF OF PROD ODUC UCT .

Consolidating Activities

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Operation Restructuring

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Before

Carpets Inter TCMC RT office

• verseas

Customers

Export Domestic

Manufacture Distributor Brand: CI, RT Manufacture Distributor Brand: RT

Customers Customers Customers

Suppliers for

• ther products

(Flatweave, LVT, Wooden floor)

UCM Customers Customers

Manufacture Distributor OEM

*Total number of staff = 2,203 people (as of Dec’17)

* * *

Operation Restructuring

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After

Carpets Inter + UCM TCMC RT office

• verseas

Customers

Export Domestic

Manufacture Distributor Brand: CI Distributor Brand: RT

Customers Customers Customers

Suppliers for

• ther products

(Flatweave, LVT, Wooden floor)

Customers

CI brand only

Overseas partners (ITC function)

Contract manufacturing

*Total number of staff = 1,739 people (as of Jan’19)

* *

Drive Manufacturing Profitability

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• Centralised purchasing and raw

material savings, experience and economy of scale purchases.

• Centralised planning and optimised

plant scheduling.

• Wool Yarn Manufacturing plant

upgrade.

• Investment in new technology high-

speed Axminster looms.

• Global implementation of an integrated

ERP IT system.

• Consolidate manufacturing into one

factory.

Factory production

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Axminster

• Target yr2019: 1.65 M. sqm/year
• No. of machine: 43, plus 2 high speed

looms

Hand tufted

• Target yr2019:
• Luxury grade 15,000 sqm/year
• Commercial grade 50,000 sqm/year

Pass tufted

• Target yr2019: 35,000 sqm/year
• No. of machine: 14 machines

Carpet Tiles

• Target yr2019: 1.05 million sqm/year
• No. of machine: 14 machines

Needle Punch

• Target yr2019:
• 4.08 million sqm/year
• No. of machine: 4 machines

Activities

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TCM Living restructuring

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Working groups

Alstons DMMH

Manufacturing Procurement ERP Finance Accounting & Reporting

A&J First Asia Flagship store

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A&J First Asia Flagship store

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A&J First Asia Flagship store

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A&J First Asia Flagship store

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A&J First Asia Flagship store

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A&J First Asia Flagship store - Launch events

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Q&A

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Contact :

Address : TCM Corporation Plc. 238 Vipavadee Rangsit rd., Sanambin, Don Muang, Bangkok 10210 Tel : +66 (0) 2 533 6393

Investor Relations :

E-mail : ir@tcm-corporation.com Tel : +66 (0) 2 656 0305 ext. 30

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Global Presence • Aesthetic Excellence • Business Integrity