Opportunity Day on March 16, 2017 Content Company Profile - - PowerPoint PPT Presentation

Tirathai Public Company Limited

Opportunity Day on March 16, 2017

Content

• Company Profile
• Operating Result of Year 2016
• Outlook 2017
• Forecast 2017-2019
• Q &A

2

Company Profile

3

TIRATHAI & It’s subsidiary

TIRATHAI Public company Limited

TIRATHAI E&S Co.,ltd. Distribution , installation maintenance service of electrical power equipment

Manufacture for Tank and fabricate steel , EPC Conveyor System

JV L.D.S - N.D.P Operation and Maintenance

• f Conveyor System of Hongsa

Power Co. Ltd, (HPC), Laos PDR THAIFINS Co.,ltd. Manufacture for Transformer’s fins and Tank support to Tirathai Plc.,ltd. L.D.S. METAL WORK Co.,ltd. 100% 100% 92.50% 20% 80%

Manufacturer of Distribution and Power Transformers and Repair Service

4

II. Non-transformer

• Arial Derrick Crane
• Steel Fabrication
• Constructions
• Bulk Handling System
• Operation and Maintenance Conveyor Belt

System

• Distribution

Transformer

• Power Transformer
• Transformer Service
• Transformer Repair

Products of Tirathai Group

I.

Transformer

5

• I. Transformer Product &

Service

6

Distribution Transformer Power Transformer Special Transformer Our Main Customers

• 1. Utilities

(PEA,MEA,EGAT)

• 2. Private

2.1 Steel industry 2.2 Sugar industry 2.3 Power Plant 2.4 Energy industry 2.5 International Contractors 2.6 Others

• 3. Export

(ASIA+SE.ASIA) 16% 58% 26%

Utilites Private Export

Transformer Revenue 2016 by Customer

• II. Non Transformer Products

7

• Arial Crane Device

and Digger Derick Unit

• Steel Fabrication
• Construction
• EPC Conveyor Belt

System

• Operating and

Maintenance Service

• f Conveyor Belt

System 73% 27%

Transformer Non transformer

Total Revenue 2015 by Product Group

TRT’s Key Strength

• Experience management team with more than 25 years in the

Transformer business

• Engineering-to-Order
• High Quality Products and Services
• Top three of manufacturer of 300 MVA 230 kV Power Transformer

in Thailand

• Well recognize as a successful player in bulk handling system

including a provider of Operating & Maintenance Service for power plant, mining and related industry

8

Operating Result of Year 2016

9

Consolidated financial Statements

Unit: Million Baht 2013 2014 2015 2016 Total Revenue 2,534.96 2,163.26

2,265.90 2,577.33

Revenue from Sales & Service

2,517.89 2,131.63 2,223.97 2,536.52

Gross Profit 657.94 508.29

411.84 661.01

EBITDA 320.30 170.24

44.87 192.89

EBIT 268.35 66.59 (6.81)

125.81

Net Profit/(Net Loss) attributable to equity holders 177.52 48.64 (45.97) 61.22 Total Assets 2,575.98 2,653.19

3,024.84 3,303.62

Total Liabilities 1,391.62 1,478.97

1,947.70 2,176.83

Shareholders' Equity 1,184.36 1,174.22

1,077.14 1,126.79

Financial Ratio Gross Profit Margin (%) 26.13% 23.85%

18.52% 26.06%

Net Profit (Loss)Margin (%) 6.98% 2.24%

(2.57%) 2.38%

Return on Asset (%) 10.53% 1.85%

(2.05%) 1.87%

Return on Equity (%) 16.08% 4.10%

(5.18%) 5.36%

Book Value Per Share (Par1Baht) 3.85 3.81

3.50 3.66

Earning Per Share 0.58 0.16

(1.15) 0.20

Dividend Per Share 0.30 0.10

0.05 0.13

10

Structure of Incomes by

Group

Customer

2015 2016

Transformer

• 1. Gov+Local

937 1,306 2.Export 650 479

• 3. Transformer

Service 56 82 Total Transformer 1,643 1,867 Non- Transformer

• 4. Steel Structure &

Fabricate 370 161

• 5. Distributing

Digger/Arial truck 99 209

• 6. Operating &

Maintenance 111

299

• 7. Others

41 41 Total non-transformer 621 710 Total 2,264 2,577

11 1,643 1,867 621 426

• 500

1,000 1,500 2,000 2015 2016

Transformer Non-Transformer Million 73% 73% 27% 27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 2015 2016

Transformer Non-Transformer

12 1,643 1,867 621 710 500 1,000 1,500 2,000 2,500 3,000 2015 2016

• Bt. Mil

Transformer Non transformer

Revenues 2016

Transformer 73% Non-Transformer 27%

Total revenue 2016

• An increase in transformer revenue, mainly from private sector which 50%

increase from last year.

• An increase in non-transformer revenue, mainly from Operation and

Maintenance business which it is the first full year to recognize its revenue of 299 Bt’M compared to last year of 111 Bt’M.

Gross Profit Margin by products QoQ

13

13% 19% 19% 25% 23% 25% 14% 14% 20% 22% 39%

• 38%

47% 28% 47% 47% 27% 27% 15% 38% Q1' 15 Q2' 15 Q3' 15 Q'4 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 2015 2016

Transformer Non transformer

• Improve in gross profit margin both Transformer and Non-Transformer group due

to selective market which need engineering design in all business group of TRT

Total Gross Profit (GP) VS Net Profit Margin (NP) VS SG&A (Consolidated)

14

SG&A still being in line with our budget

19% 26%

• 2%

2% 23% 22%

• 5%

0% 5% 10% 15% 20% 25% 30%

2015 2016

GP NP SG&A

Interest Bearing Debt/Equity Ratio is in line with our business plan

1.12 0.99 1.31 1.25 1.37 1.38 1.49 1.46

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 200 400 600 800 1000 1200 1400 1600 1800 Interest Bearing Debt Interest Bearing Debt/Equity Ratio

Q1 2105 Q2 2105 Q3 2105 Q4 2105 Q1 2106 Q2 2106 Q3 2106 Q4 2106

Interest Bearing Debt/Equity Ratio

Mill Baht Times

15

Outlook 2017

16

Outlook 2017

17

Transformer Group

• Expected total revenue growth 15-20% from 2016.
• Increase in Distribution Transformer Demand especially Utilities

sector due to spending 2016 and 2017 budget starting from 2017.

• Increase in Power Transformer Demand due to increase in

Transformer demand to support ASIAN Grid as per PDP 2015.

• Backlog as of 31.12.2016 of 1,012 Bt’M, of which 861 Bt’M to be

delivered in 2017, 122 Bt’M in 2018 and 29 Bt’M 2019.

• Bids and quotations in process as of 31.12.2016 for transformer

group = 10,857 Bt’M with 20%-25% succession rate.

• Expected gross profit margin 20%-23%

Outlook 2017

18

Non-Transformer Group

• Expected total revenue growth 45%-50%from 2016.
• Expected 27% increase in revenue from operation and maintenance

from 2016 due to having potential service to be awarded in 2017.

• Expected 73% increase in revenue from steel fabrication and EPC

from 2016 due to having backlog to be delivered in 2017 of 302 Bt’M.

• Backlog as of 31.12.2016 of 1,202 Bt’M, of which 602 Bt’M to be

delivered in 2017, 300 Bt’M in 2018 and 300 Bt’M 2019.

• Bids and quotations in process as of 31.12.2016 for non-transformer

group = 2,618 Bt’M with 20%-25% succession rate.

• Expected gross profit margin 20%-23%

TRT Group Backlog As of 31.12.2016

Group

Customer Total (1)+(2)+(3) Delivery in 2017 (1) Delivery in 2018 (2) Delivery in 2019 (3)

Transformer

• 1. GOV+Local

653 566 87

• 2. Export

359 295 35 29 3.Transformer Service

• Total transformer

1, 012 861 122 29

Non- Transformer

• 4. Steel Structure

& Fabricate

302 302

• 5. Distributing

Derrick/Arial truck

• 6. Operating &

Maintenance

900 300 300 300

Total non- transformer

1,202 602 300 300 Total 2,214 1,463 422 329

Transformer 46% Non- Transformer 54%

Transformer Non-transformer

19

Bids and Quotations in Process As

• f 31 December 2016

Customer M’ Baht 1.MEA 2,000 2.PEA 2,500 3.EGAT 3,587 4.Local 1,800 5.Export 970

• 6. Transformer Service
• 7. Distributing Derrick/Arial crane

1,500

• 8. Steel Structure & Fabricate

1,118 Total 13,475

** Expect to receive the above orders approximately 20-25%

20

Forecast 2017 - 2019

21

Forecast % Growth from last year 2017 2018 2019 Revenue growth from last year 25%-30% 19% 8% Expected Revenue from Transformer Group as % of Total Revenue 68% 63% 64% Expected Revenue from Non- Transformer Group % of Total Revenue 32% 37% 36% Expected gross margin 20-23% 20%-23% 20%-23% SG&A Growth 4% 5% 5% SG&A as % of sales 17%-18% 15% 15%

Investment Progress of New Distribution Transformer Plant

22

Detail

Time Schedule  Construction of Factory and office

March2015 – March 2016

 Installation of machinery and equipment April - August 2016  Test Run

September - November 2016

 Start the production December 2016

Investment Progress of New Distribution Transformer Plant

23

1,000 1,500

4,000 7,500

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Before Investment After Investment Distribution transformer Power Transformer

MVA

5,000 9,000

Increase Transformer Production Capacities

from 5,000 MVA to 9,000 MVA or 80% Increase After Investment

24

25

APPENDIX

26

APPENDIX TRT GROUP

27

Summary of PDP 2015

28

Summary of PDP 2015

*ที่มา : www.eppo.go.th

29

III. Special Transformer Capacity 1-10 MVA Rated Voltage 36 kV. Capacity 5-300 MVA Rated Voltage 230 kV.

II. Distribution Transformer

Capacity 1-100 MVA Rated Voltage 36 kV.

Products of Tirathai

I. Power Transformer

30

Transmission line 500, 230, 115 kV Transmission line 230, 115, 69 kV

PRIVATE SUBSTATION

Big Industry > 10 MVA

Transmission line 230, 115, 69 kV MEA’S SUBSTATION ~60 MVA 6.6, 22, 33 24 kV 6.6, 3.3 416/240, 400/230 kV Distribution line 24, 12/24 kV Distribution line 22, 33 kV Infrastructure & Housing 416/240 V Industry & Big Building 400/230 V PEA’S SUBSTATION ~60 MVA Step up Transformer Power Plant

Transmission Line

31

Distribution Transformer ≤ 3,000 kV – 10,000 kV Voltage ≤ 33 kV Power Transformer ≤ 100 MVA Voltage ≤ 132 kV Power Transformer >100 – 500 MVA Voltage ≤ 230 kV

TRT 11%

TRT 33% ABB 34% Daihen 33%

TRT Local Market Share

TRT 25% DAIHEN 25% ABB 25% FUJI TUSO 25%

32

Government Sector Private Sector

Main Customers

28

Sub-contractor

Laos Cambodia Vietnam Philippin e Malaysia Singapore Indonesia Brunei Myanmar Japan China India Sri Lanka Oman Saudi Arabia Syria Iran Azerbaijan Ghana Australia Nepal Argentin a Trinidad & Tobago Canada Republic

• f Korea

South Africa Papua New Guinea United Arab Emirates

Export Countries

30

TRT Competitive Advantage TRT

Production Standards Corporate Compliance

Short Circuit Test Certificate

Test Laboratory

PM Export for Local Brand Awards

ISO Accreditation

HIGH-POWER LABORATORY NETHERLAND

TESTING

• No. 0140

ISO/IEC 17025

certified by TISI

ISO 9001

certified by MASCI

ISO 14001

certified by MASCI

TIS 18001

certified by MASCI

OHSAS 18001

certified by MASCI

1999 2008

• CG Score 2016 – Good
• TRIS Rating for Company

and Bond in 2016 = BBB

Technology Developed from

35

2016

HV Gas Insulated Switchgear Aerial Crane Device and Digger Derrick Unit

Tirathai E&S Co.,Ltd.

Products of TRT E&S

36

TERMINAL STATION POWER PLANT

230, 500 kV

SUBSTATION

12, 22,24,33 kV 69, 115 kV

240/416 , 230/400 V

Power Network Products

Tirathai E&S Co.,Ltd.

37

Products of L.D.S.

Transformer Tank Drying Oven

38

Products of L.D.S.

39

Hongsa Power Plant Project

40

Products of L.D.S.

Belt Conveyor system

41