L ONG -T ERM R ELATIONSHIP (C ONT D ) S IGNIFICANT GROWTH IN S - - PowerPoint PPT Presentation

GENERAL ENGINEERING PUBLIC COMPANY LIMITED OPPORTUNITY DAY

MARCH 28, 2017

AGENDA

• STRICTLY CONFIDENTIAL -
• GEL OVERVIEW
• OPPORTUNISTIC AND GROWING CONSTRUCTION INDUSTRY
• CONTINUE THE SUCCESS STORY –2017 KEY DRIVERS
• Q&A

GEL OVERVIEW

• STRICTLY CONFIDENTIAL -

KEY MILESTONES AND COMPANY’S TURNAROUND

GEL IS THE MANUFACTURER OF PRE-STRESSED CONCRETE PILE, PRECAST CONCRETE ELEMENTS, GLASS-FIBER REINFORCED CONCRETE,

CONSTRUCTION CHEMICAL MATERIAL AND POST-TENSIONED SLAB.

• STRICTLY CONFIDENTIAL -

OUR PRODUCTS

PRESTRESSED CONCRETE PLIES

• RECTANGULARPILE,

HOLLOW

RECTANGULAR PILE, I-SHAPE PILE, PRESTRESSED CONCRETE SPUN PILES

• BEING EFFICIENT PILES SAVING

TIME AND COSTS OF CONSTRUCTION

• HAVING

THE CAPACITY OF

165,000CUBIC METERS AS AT 31 DEC 2016, 67%

UTILIZATION

PRECAST CONCRETE

• DESIGN

FLEXIBILITY, HIGH PERFORMANCE, LOW MAINTENANCE, FAST CONSTRUCTION, FACTORY CONTROLLED, LOW COST AND LABOR SAVING

• HAVING

THE CAPACITY OF

1,000,000 SQ. METERS AS AT 31 DEC 2016, 58%

UTILIZATION

POST-TENSIONED SLAB

• SAVING ON MATERIALS, WIDER

SPAN, JOINT FREE, WATERPROOF FLOOR, FASTER SPEED OF CONSTRUCTION

• USED FOR CAR PARK BUILDING,

HIGH RISE BUILDING FLOOR

• HAVING

THE CAPACITY OF

600,000 SQ. METERS AT 31 DEC 2016, 76% UTILIZATION

GLASSFIBER REINFORCED CONCRETE

• FIBERGLASS

REINFORCED CONCRETE WITHOUT STEEL REINFORCEMENT

• MAKING PRODUCTS IN VARIOUS

SHAPES WITH RESOLUTION INFORM

• HAVING

THE CAPACITY OF

2,500,000 KG. AS AT 31 DEC 2016, 20% UTILIZATION

SPECIAL CEMENT PRODUCTS

• DENKASPECIAL

CEMENT

–

BEING NON-SHRINK CEMENT & SUPPORTINGAHIGH PRESSURE

• NOISE BARRIER – USED FOR THE

PREVENTION OF NOISE

• POLLUTION. SUPER SKIM COAT

– A THIN PLASTER ADHESION

• HAVING

THE CAPACITY OF

21,00,000 KG. AS AT 31 DEC 2016, >100% UTILIZATION

*GEL is also a distributor of steel products and ready-mixed concrete products

• STRICTLY CONFIDENTIAL -

2016 PERFORMANCE OVERVIEW

SALES BREAKDOWN BY PRODUCT

(UNIT: MILLION BAHT)

1,292 1,586 FY2015 FY2016

PCP PW PT Others

+6% +63% +12% +16%

+23%

• 10%
• 27%
• 13%
• 35%

19% 19% 16% 3% 6% 16% 16% 13% 12% 18% 23% 23% 19% 17%

• 40%
• 20%

0% 20% 40% 60%

• 1,200.00
• 800.00
• 400.00
• 400.00

800.00 1,200.00 1,600.00 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenue from sales %NP %GPM

HISTORICAL RESULT OF THE COMPANY

(UNIT: MILLION BAHT) IN 2016

• REVENUE INCREASED 23%
• COST OF SALES INCREASED AS 2016 IS THE YEAR OF

“LEARNING CURVE”

• “HIGH PRICE COMPETITION” IS A ONE OF KEY FACTOR

THAT EFFECT OVERALL RESULT, THE GROSS PROFIT MARGIN IS STILL REMAIN THE SAME PERCENTAGE FROM PREVIOUS YEAR EVEN SELLING PRICE DROPPED BY 10 % AS GEL HAD FOCUSED ON COST-REDUCTION POLICY.

GROSS PROFIT

(UNIT: MILLION BAHT)

30 71

Q42015 Q42016 245 271 2015 2016

%NPM

• STRICTLY CONFIDENTIAL -

EBITDA AND NET PROFIT LEVEL

THE COMPANY ONLY FY2015 FY2016 EBITDA 77 169 NET PROFIT 42 99 NET GAIN – ONE

TIME TRANSACTION

• NET LOSS – ONE TIME TRANSACTION

DISPOSAL OF INVESTMENTS IN SUBSIDIARIES

36

• ADJUSTED EBITDA

113 169 ADJUSTED NET PROFIT 78 99 EBITDA (THE COMPANY ONLY)

(UNIT: MILLION BAHT)

• 62
• 124
• 76
• 60

26 191 254 113 169

• 18
• 169

145 52 70

• 36
• 62
• 106
• 76
• 228

170 243 324 77 169

• 600
• 400
• 200
• 200

400 600 800 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net one time transactions Operating

NET PROFIT (THE COMPANY ONLY)

(UNIT: MILLION BAHT)

• 72
• 137
• 87
• 73

15 191 174 78 99

• 18
• 169

145 52 70

• 36
• 72
• 119
• 87
• 242

160 242 244 42 99

• 600
• 400
• 200
• 200

400 600 2008 2009 2010 2011 2012 2013 2014 2015 2016

• STRICTLY CONFIDENTIAL -

FINANCIAL STATUS

FINANCIAL STATUS

UNIT: MILLION BAHT

4,788 4,821 1,033 999

CA NON-CA EQUITIES TOTAL LIABILITIES

2016 5,820 5,120

4,304 4,622 816 498

CA TOTAL LIABILITIES NON-CA EQUITIES

2015

• TOTAL ASSETS AS OF DECEMBER 31, 2016 WAS 5,820 MILLION BAHT, AN INCREASED BY 700 MILLION BAHT DUE TO THE INCREASING

OF MACHINERY AND EQUIPMENT

• TOTAL LIABILITIES AS OF DECEMBER 31, 2016 WAS 999 MILLION BAHT, AN INCREASED BY 501 MILLION BAHT DUE TO THE COMPANY

INCREASED LOAN FROM THE FINANCIAL INSTITUTE AND TRADE ACCOUNT PAYABLE

OPPORTUNISTIC AND GROWING CONSTRUCTION INDUSTRY

• STRICTLY CONFIDENTIAL -

2017 OPPORTUNISTIC AND GROWING CONSTRUCTION INDUSTRY

GROWTH FACTORS IN CONSTRUCTION INDUSTRY

• HIGH DEMAND FROM GOVERNMENT

SECTOR FOR INFRASTRUCTURE PROJECTS

36 PROJECTS OF ACTION PLAN IN 2017

WITH TOTAL BUDGET APPROXIMATELY

900 BILLION BAHT

• EEC IN EASTERN SEABOARD WHICH

LONG FOR 5 YEARS (2017 – 2021)

CABINET APPROVED BUDGET OF 7

BILLION BAHT FOR 2017-2018

• HIGHLY DEMAND IN THE

RESIDENTIAL PROJECTS

AREA: CBD AND THE SURROUNDING

AREAS ALONG BTS & MRT LINES

SOURCE : NESDB, INTERNAL STUDY BY GEL TEAM

GEL BECOMING A “TOTAL SOLUTION PROVIDER”

TO STRENGTHEN A POSITION IN AN OPPORTUNISTIC AND CONSTRUCTION INDUSTRY

“TOTAL SOLUTION PROVIDER”

CONTINUE THE SUCCESS STORY

• STRICTLY CONFIDENTIAL -

CONTINUE THE SUCCESS STORY

2017 KEY DRIVERS

• 1. STRENGTHEN THE CORE
• ATTAIN EXPERIENCED MANAGEMENT TEAM AND COMMITTED TO GOOD CORPORATE GOVERNANCE
• 2. INTEGRATED VALUE CHAIN
• REDUCE COST AND MINIMIZE OPERATIONAL RISK
• 3. NEW MARKET PENETRATION
• LOCATION EXPANSION TO EASTERN SEABOARD AND MYANMAR TO ACQUIRE OVERSEA CUSTOMERS
• 4. EXTEND PRODUCT PORTFOLIO DIVERSIFICATION
• WELL-BALANCED PRODUCT MIX TO ENLARGE MARKET SIZE AND IMPROVE MARGIN
• 5. ENHANCE CUSTOMER BASE AND ESTABLISH LONG-TERM RELATIONSHIP
• BECOME “TOTAL SOLUTION PROVIDER” AND CUSTOMER PARTNERSHIP
• 6. IMPROVE OPERATIONAL EFFICIENCY
• IMPLEMENT CENTRALIZED PLATFORM TO ENSURE INTEGRATED INFORMATION ACROSS WORKING TEAMS

• STRICTLY CONFIDENTIAL -
• 1. STRENGTHEN THE CORE

PROF.DR. BORWORNSAK UWANNO CHAIRMAN OF THE BOARD OF DIRECTORS

• MR. THITIPONG TANGPOONPHONVIVAT

CHAIRMAN EXECUTIVE OFFICER/ DIRECTOR

• DR. TAWAT ANANTANAVANICH

MANAGING DIRECTOR/ DIRECTOR

• MR. SOPHON PHOLPRASIT

VICE CHAIRMAN OF THE BOARD OF DIRECTORS/ INDEPENDENT DIRECTOR

• MR. WUTTICHAI SRESTHABUTRA

DIRECTOR

• MR. WIRACH MORAKOTKARN

INDEPENDENT DIRECTOR

• MRS. PHANNEE JARUSOMBAT

INDEPENDENT DIRECTOR/ AUDIT COMMITTEE

• MR. SUCHAT BOONBANJERDSRI

CHAIRMAN OF THE AUDIT COMMITTEE/ INDEPENDENT DIRECTOR

• DR. VICHYA KREA-NGAM

INDEPENDENT DIRECTOR/ AUDIT COMMITTEE

• ATTAIN TALENTED AND EXPERIENCED MANAGEMENT TEAM AND BOARD OF DIRECTORS
• COMMIT TO GOOD CORPORATE GOVERNANCE, IMPROVING CORPORATE GOVERNANCE RATING 3/5 IN 2016

• STRICTLY CONFIDENTIAL -
• 2. VALUE CHAIN INTEGRATION
• VERTICALLY AND HORIZONTALLY INTEGRATE TO MINIMIZE OPERATIONAL RISK, IMPROVE EFFICIENCY AND REDUCE COST

THROUGHOUT THE VALUE CHAIN

RAW MATERIAL FINISHED PRODUCTS DESIGNER

AND

DEVELOPER CONTRACTOR

VALUE CHAIN SEVEN WIRE CO., LTD. MILLCON THIHA GEL, LTD. OVERSEAS PARTNERSHIP LOCAL SUBSIDIARY MCTRIC CO., LTD. OVERSEAS TECHNOLOGICAL PARTNER

AND MACHINE MAKER

WELL-KNOWN ARCHITECTURES AND

ENGINEERING FIRMS

PROJECT OWNER/ DEVELOPER

PARTNERS

MILLCON STEEL PCL

REINFORCED STEEL PC WIRE/ PC STRAND STRUCTURAL STEEL WIRE ROD

THAILAND MYANMAR

• STRICTLY CONFIDENTIAL -
• SITE EXPANSION TO EASTERN SEABOARD AND MYANMAR TO ACQUIRE NEW CUSTOMERS IN UNTAPPED MARKET
• 3. NEW MARKET PENETRATION

THILAWA INDUSTRIAL ZONE –COMPLETED

• LOCATION: MYANMAR
• 45% JV WITH MILLCON ENGINEERING LTD.
• FACTORY AND DISTRIBUTION OF STRUCTURAL STEEL PRODUCT
• TOTAL INVESTMENT : UP TO 16 MUSD
• CAPACITY : 64,000 TON/YR
• STATUS : COD 3Q16

PRECAST CONCRETE ELEMENTS —COMPLETED

• LOCATION: CHIANG RAK NOI, PATHUM THANI
• TOTAL INVESTMENT: 440 MTHB
• CAPACITY:
• AUTO FACTORY – 640,000 M3
• SPECIAL FACTORY – 200,000 M3
• STATUS: COD 2Q2015

PRESTRESSED CONCRETE PILES

• LOCATION: CHIANG RAK NOI, PATHUM THANI
• TOTAL INVESTMENT: 280 MTHB
• CAPACITY: 132,000 M3
• STATUS: EXPECTED COD 1Q2017

PC WIRE/ PC STRAND AND COLD DRAWN WIRE

• LOCATION: RAYONG
• TOTAL INVESTMENT: 701 MTHB
• TOTAL CAPACITY: 30,000 TON/YR
• STATUS: EXPECTED COD 3Q2017

• STRICTLY CONFIDENTIAL -
• 4. EXTEND PRODUCT PORTFOLIO DIVERSIFICATION
• IMPROVE PRODUCT MIX TO ENLARGE MARKET SIZE AND CAPTURE HIGHER VALUE OF TOTAL PROJECT

CAPTURE LARGER PROJECT VALUE,

FROM 5% TO 40%

FOUNDATION

• PRE-STRESSED CONCRETE PILE (I/SQUARE)
• BORED PILE (DRY PROCESS)
• SPUN PILE

PRECAST CONCRETE

• SLAB
• WALL
• STAIRS
• BEAM
• LIFT AND STAIRS CORE

SPECIAL CEMENT

• SKIM COAT
• NON SHRINK GROUT

CONSTRUCTION CHEMICAL

• WATER PROOFING
• WATER STOP
• SEALANT
• ADMIXTURE

TRADING

• STEEL
• READY MIXED CONCRETE
• WIRE MESH
• CEMENT
• LIGHTWEIGHT BRICK

FLOORING

• POST-TENSIONED SYSTEM
• ALPHA-TRUSS
• BIAXIAL SLAB

GLASS FIBER REINFORCED CONCRETE

• STRICTLY CONFIDENTIAL -
• 4. EXTEND PRODUCT PORTFOLIO DIVERSIFICATION

(CONT’D)

63% 70% 68% 73% 67% 55% 47% 37% 30% 32% 27% 33% 45% 53% 0% 20% 40% 60% 80% 100% 2010 2011 2012 2013 2014 2015 2016 PCP OTHERS

• EXPANSION IN OTHER PRODUCT RATIO AS WELL AS GROWTH IN REVENUE OVER THE PAST 4 YEARS

2010 – 2016 RATIO OF PILES VS. OTHER PRODUCTS

• STRICTLY CONFIDENTIAL -
• LEAST LIFT & STAIRS CORE
• UNDERGROUND & RETAINING
• STRUCTURE

BATHROOM MODULAR SYSTEM

• 1. ASSEMBLING OF SLAB &

WALL

• 2. M & E/ PLUMBING

INSTALLATION

• 3. TILES & SANITARY WARE

SET UP

DOUBLE WALL

• 1. HIGH SAVINGS POTENTIAL FOR

CONCRETE, REINFORCEMENT STEEL

• 2. REDUCTION OF SLAB DEPTH

AND WEIGHT

• 3. UP TO 35 PERCENT LIGHTER

THAN SOLID SLABS

• 4. LOWER PRICE THAN

CONVENTIONAL SYSTEM

ALUMINUM WINDOW FRAME

“BIGGER MARKET SIZE” THROUGH “INNOVATION”

OFFER PRODUCT INNOVATION TO EXPAND MARKET SIZE AND CAPTURE HIGHER VALUE OF THE PROJECT

• 4. EXTEND PRODUCT PORTFOLIO DIVERSIFICATION

(CONT’D)

BATHROOM MODULAR SYSTEM BIAXIAL SLAB ALUMINUM FRAME IN PRECAST ELEMENT

• STRICTLY CONFIDENTIAL -
• BECOME “TOTAL SOLUTION PROVIDER” AND CUSTOMER PARTNERSHIP, OFFERING A ONE-STOP PRODUCT AND SERVICE, TO

ESTABLISH LONG-TERM RELATIONSHIP

FROM DESIGN TO FINISH

COST OPTIMIZATION MANUFACTURING ENGINEERING DESIGN DELIVERY AND

INSTALLATION

TOTAL SOLUTION PROVIDER

• 5. ENHANCE CUSTOMER BASE AND ESTABLISH

LONG-TERM RELATIONSHIP

• STRICTLY CONFIDENTIAL -
• SIGNIFICANT GROWTH IN SALES OVER THE PAST 4 YEARS FROM BOTH CURRENT AND NEW CUSTOMERS

95% 75%

5% 25% CURRENT CUSTOMER NEW CUSTOMER

SALES RATIO—CURRENT AND NEW

• AVERAGE SALES/YR (2013-2016) ALMOST TRIPLED THE

VALUE, INCREASING FROM 820 MB TO 2,370 MB

• PERCENTAGE OF NEW CUSTOMERS EXPANDED FROM 5% TO

25%

641 763 1,057 1,558 1,785 2,992 3,139 1.6

2.0 2.6 4.3 5.3 9.4 9.0

500 1,000 1,500 2,000 2,500 3,000 3,500 1 2 3 4 5 6 7 8 9 10 2010 2011 2012 2013 2014 2015 2016 SALES AVERAGE SALES/CUST

2010 – 2016 SALES AND AVERAGE SALES/CUSTOMER (MB)

• AVERAGE SALES/CUSTOMER INCREASED FROM 4.3 TO 9.0 MB

SINCE DEPLOYING “TOTAL SOLUTION PROVIDER” STRATEGY

BIGGER BASKET SIZE

IMPLEMENTING TOTAL SOLUTION PROVIDER

• 5. ENHANCE CUSTOMER BASE AND ESTABLISH

LONG-TERM RELATIONSHIP (CONT’D)

AVERAGE SALES 2010-12 AVERAGE SALES 2013-16

• AVG. SALES/YR = 820 MB.

• STRICTLY CONFIDENTIAL -
• GROWING NEW CUSTOMERS ACROSS PRODUCT LINES
• PERCENTAGE OF NEW CUSTOMER SIGNIFICANTLY GREW IN YEAR 2016
• 5. ENHANCE CUSTOMER BASE AND ESTABLISH

LONG-TERM RELATIONSHIP (CONT’D)

CUSTOMER RATIO (2015-2016)

80.16% 71.45% 19.84% 28.55% 2015 2016 SALES BY CURRENT CUSTOMER SALES BY NEW CUSTOMER

• NEW CUSTOMER RATIO GREW BY 8.7% IN YEAR 2016

80% 62% 92% 66% 20% 38% 8% 34%

Piles PW/GRC/PT SC Trading

CUSTOMER RATIO BREAKDOWN BY PRODUCT LINE (2015-2016)

• PERCENTAGE OF NEW CUSTOMERS IN CORE PRODUCTS

SIGNIFICANTLY GREW IN YEAR 2016 88% 74% 93% 78% 12% 26% 7% 22% Piles PW/GRC/PT SC Trading

2015 2016

• STRICTLY CONFIDENTIAL -
• 6. IMPROVE OPERATIONAL EFFICIENCY
• IMPLEMENT CENTRALIZED PLATFORM TO ENSURE INTEGRATED INFORMATION ACROSS WORKING TEAMS
• SHORTEN TIME WITH BETTER ACCURACY AND HIGHER QUALITY

AUTOMATIC SOLUTIONS –INTEGRATION BY BIM (BUILDING INFORMATION MODEL)

BIM – BUILDING INFORMATION MODEL

• STANDARDIZED CENTRAL MODEL WITH PLATFORM-INDEPENDENT VISUALIZATION
• INTEGRATE ALL KEY-FUNCTION MODULE WITH REAL TIME SYNCHRONIZATION
• ALL PARTIES CAN WORK TOGETHER REAL TIME EVEN IN DIFFERENT PLATFORMS

ARCHITECT STRUCTURAL ENGINEER MEP PLANNING ENGINEER PROJECT MANAGER BIM COORDINATOR ENGINEER

REAL-TIME SYNCHRONIZATION

• STRICTLY CONFIDENTIAL -

WITH BIM & SYNERGY, WE ARE READY FOR…

• MORE CUSTOMER SATISFACTION - MEET CUSTOMER REQUIREMENT FASTER
• SELLING PROCESS DEVELOPMENT - SHORTEN LEAD TIME FOR THE DESIGN/ COST ESTIMATION
• BETTER EFFICIENCY IN PROJECT MANAGEMENT
• HIGHER QUALITY PRODUCTS – OUR R & D CONTINUES DEVELOPING THE BETTER QUALITY PRODUCT
• FASTER TEAMWORK - WE ARE ALL CONNECTED WITH SYNCHRONIZED INFORMATION REAL TIME
• 6. IMPROVE OPERATIONAL EFFICIENCY—BIM

PROJECT HIGHLIGHTS

• STRICTLY CONFIDENTIAL -

RESIDENTIAL BUILDING & HOUSING

IDEO WUTTHAKAT IDEO MOBI SUKHUMVIT EASTGATE GOLDEN PRESTIGE WATCHARAPOL BAAN KLANG MUANG, RATCHAYOTHIN

• STRICTLY CONFIDENTIAL -

DEPARTMENT STORE

SIAM PARAGON CENTRAL CHAENG WATTANA PALIO, KHAO YAI

• STRICTLY CONFIDENTIAL -

GOVERNMENT OFFICE BUILDING

NONTHABURI MUNICIPAL COURT THE OFFICE OF THE ADMINISTRATIVE COURTS OF THAILAND AQUARIUM AND ECOLOGY MUSEUM, FISHERIES OFFICE AT SONGKLA

• STRICTLY CONFIDENTIAL -

TEMPLE/ RELIGIOUS BUILDING

BODH GAYA OR MAHABODHI, WAT PANYANANTARAM WAT PHRATAT PHA SORN KAEW, PHETCHABUN PATHUMRAT DHAMMA JEDI, NONGKHAI

• STRICTLY CONFIDENTIAL -

VARIOUS TYPES OF BUILDING

PHAYATHAI 2 HOSPITAL IMPACT EXHIBITION HALL, MUANG THONG THAINI PARK & RIDE BUILDING, MRT LADPRAO

Q&A

• STRICTLY CONFIDENTIAL -

DISCLAIMER

THIS PRESENTATION MATERIAL HAS BEEN PREPARED SOLELY FOR INFORMATIONAL PURPOSE ONLY. GEL IS

FURNISHING IT SOLELY FOR USE BY PROSPECTIVE INVESTOR/ANALYSIS IN THE PROPOSED EVENT. GEL MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OF COMPLETENESS OF SUCH INFORMATION. BY ACCEPTING THIS MATERIAL EACH RECIPIENT AGREES THAT GEL SHALL NOT HAVE ANY LIABILITY FOR ANY REPRESENTATIONS (EXPRESS OR IMPLIED) CONTAINED IN, OR FOR ANY OMISSIONS FROM THIS PRESENTATION.

THE INFORMATION CONTAINED HEREIN DOES NOT MEAN TO BE ALL-INCLUSIVE OR TO CONTAIN ALL OF THE

INFORMATION THAT MAY BE MATERIAL TO THE RECIPIENT’S DECISION. EACH RECIPIENT OF THE INFORMATION AND DATA CONTAINED HEREIN SHOULD PERFORM ITS OWN INDEPENDENT INVESTIGATION AND ANALYSIS OF THE TRANSACTION AND THE CREDITWORTHINESS OF GEL. REFERENCE IN THIS DISCLAIMER TO THIS SHALL INCLUDE REFERENCE TO THE APPENDICES (IF ANY) .

THANK YOU

Head office & Factory:

44/2 Group 2 Tivanont Rd., Bangadee, Muang, Patumtanee 12000 Thailand Tel : 66(0)-2501-1055, 66(0)-2501-2020 Fax : 66(0)-2501-2134, 66(0)-2501-2468 E-mail : gel@gel.co.th