Opportunity Day M a r c h 1 4 , 2 0 1 8 Executive Summary NAME - - PowerPoint PPT Presentation

M a r c h 1 4 , 2 0 1 8

Opportunity Day

NAME Padaeng Industry Public Company Limited (“PDI”) BUSINESS TYPE Energy, Materials and Eco INDUSTRY GROUP Resources REGISTERED CAPITAL 2.26 Billion THB LISTED DATE July 21, 1987 AUDITOR Deloitte Touche Tohmatsu Jaiyos Co., Ltd. SHARE PRICE (1yr) Low: 17.80THB High: 31.00THB NUMBER OF SHARES 226,000,000 shares MARKET CAPITALIZATION 5.9 Billion THB (@26.50 THB/ share)

Executive Summary

2

O p p o r t u n i t y D a y

Timeline

1981

• Establish PDI.
• Produce and market special high-grade zinc

ingots and alloys

• 4 sites: Mae Sod Mine and Refinery in Tak,

Roaster in Rayong and Head Office in Bangkok

Company History

1981 - Present 1987

• Listed on SET.
• Registered capital of 2,260 Million THB

Timeline

2014

Energy Materials Eco

• Reorganize into 3 sustainable growth

businesses.

2016

• Transform to sustainable green business
• Investments in solar energy in Thailand and Japan.
• Cease conventional zinc business by the end of 2017

3

O p p o r t u n i t y D a y

Shareholding Structure

October 31, 2017

Country Group Holding:

25.00 %

Ministry of Finance:

13.81 %

Bangkok Bank:

3.23 %

Thai NVDR:

7.63 %

• Mr. Suphachai Veerabornpong:

1.61 %

• Mr. Wiwat Kowitsophon:

1.31 %

• Mrs. Nunta

Rungnoppakunsri:

0.89 %

• Mr. Nurak

Mahatanaarnont:

0.95 %

• Mr. Tawach Tantimate:

1.01 %

Others:

43.73%

Nortrust Nominees:

0.85 %

4

O p p o r t u n i t y D a y

To be a leader in developing, driving and growing sustainable businesses in Southeast Asia.

OUR VISION

Driven by innovation and balanced concerns, we maximize added value for our clients, with respect to our people, our ecosystems and the environment. We support the communities in which we operate and give the best possible return to our shareholders.

5

O p p o r t u n i t y D a y

Energy Materials Eco

Provide energy from renewable sources Provide added value materials from recycled metals Provide waste management solutions for complex industrial waste

Corporate Structure

6

O p p o r t u n i t y D a y

Cease Zinc Business

7

Mae Sod Mine

(1982-2016)

Rayong Roaster

(1995-2016)

Tak Smelter

(1984-2017)

Number of employees reduced from 986 in 2012 to 72 in 2018

Own land 1,657 rai (265 ha) Forestry leased land 840 rai (134 ha) 51 rai (8 ha)

O p p o r t u n i t y D a y

Highlights 2017

Consolidated net profit 905 MB, the highest in 10 years

+19%

Total Revenues 6,357 Million THB

+50%

Dividend 1.50 THB/Share

+89%

Net Profit 905 Million THB

Main favorable contributions from:

• Strong sales performance with

surging LME zinc prices, up 40%

• Sustained solid local market

premiums

• Gain on sales of investment in

MCE of 59 MB

• Increasing contribution of PDI’s

Solar Farms 8

+40%

Average LME 2,894 USD/Ton

O p p o r t u n i t y D a y

Highlights 2017 ‘Cont’

2017 has been a very successful year

• Achieved strategic make-over plans to end its conventional zinc operations
• Moved full-scale ahead into zinc trading under "PDI Metals"
• Acquired 6 operating solar farms in Thailand with a total capacity of 30

MW from Symbior Solar

• Finalized construction of 11 MW Nogata solar farm in Japan
• Obtained certificate as a member of the Private Sector Collective Action

Coalition Against Corruption (CAC)

• Achieved higher CG scores and attained “Very Good” classification level

9

O p p o r t u n i t y D a y

5,340 3,066 6,357 1,296 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Revenue OPEX

Million BHT 478 905

Net Profit

100 200 300 400 500 600 700 800 900 1,000 Million BHT

Financial Highlights

Revenue, OPEX, Net Profit

10

2016 2017

Revenue OPEX

ROE 20.00% ROA 14.00%

O p p o r t u n i t y D a y

Assets (MB) Liabilities (MB)

Current Assets Dec 16 % Dec 17 % Current Liabilities Dec 16 % Dec 17 % Cash & Short Term Deposits 1,412 25 1,579 21 Financial Short Term Debt 205 4 141 2 Trade Receivables 315 6 484 7 Account Payables 242 4 480 6 Inventory 1,854 33 567 8 Other 823 15 275 4 Other 469 8 643 8 TOTAL 4,050 72 3,273 44 TOTAL 1,270 23 896 12 Non Current Assets Dec 16 % Dec 17 % Non Current Liabilities Dec 16 % Dec 17 % Investment in JV Net 44 1 56 1 Provisions 306 174 2 Long Term Investment & Loan 565 10 533 7 Long Term Loan 1,049 14 PPE 645 12 2,541 34 Other 205 3 Other 289 5 1,006 14 TOTAL 306 1,428 19 TOTAL 1,543 28 4,136 56 Equity Dec 16 % Dec 17 % Shareholder Equity 4,017 5,085 69 TOTAL 5,593 100 7,409 100 TOTAL 5,593 100 7,409 100

Financial Position

11

O p p o r t u n i t y D a y

Share Price

Actual share price reaches 28.50 THB (As of March 13, 2018)

9.35 16.20 12.40 20.10 21.30 28.50 0.00 5.00 10.00 15.00 20.00 25.00 30.00

2013 2014 2015 2016 2017 2018

THB

12

Note : closing price at end of year

O p p o r t u n i t y D a y

Dividend to Shareholders

13

0.00 0.30 0.40 0.20 1.00 1.50

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60

2012 2013 2014 2015 2016 2017

O p p o r t u n i t y D a y

THB

Warrant

14

O p p o r t u n i t y D a y

Type of Securities Warrants to purchase ordinary shares of Padaeng Industry Public Company Limited

• No. 1 (PDI-W1)

Number of Warrants 75,333,333 units Number of Ordinary Shares Reserved to Accommodate for Exercise of Warrants 75,333,333 shares at the par value of 10 THB per share (representing 33.33% of the total paid-up shares of company as of 7 March 2018) Method of Allocation Allocate to the existing shareholders at the ratio of 3 existing ordinary shares for 1 unit

• f Warrant (only for the shareholders as of May 3, 2018 (Record Date))

Date of Issue of Warrants May 5, 2018 Offering Price per Unit 0 THB (zero) Tenor 3 years from the date of issue of Warrants Exercise Ratio 1 warrant : 1 ordinary share Exercise Price 33.00 THB per share Listing Date Within May 2018 Exercise Period Last Business Day of every May and November of each calendar year The First Exercise Date November 15, 2018 The Last Exercise Date May 15, 2021 Expiry Date May 15, 2021 Agency for Warrant Exercise Country Group Security

B u s i n e s s G r o w t h

15

O p p o r t u n i t y D a y

PDI Energy

PDI Asia Solar: 13 MW in Japan PDI Thai Solar: 37 MW in Thailand

16

O p p o r t u n i t y D a y

• Target to reach 150 MW in 2018 with the total investment of 5,000 MB (1,500 MB equity)
• Owns 50 MW operating solar farms (13 MW in Japan and 37 MW in Thailand)
• Developing projects in Japan up to 30 MW
• Potential investment on PDI residue ponds up to 80 MW
• Strategic partnering with Canadian Solar for 200 MW projects in Asia Pacific

PDI Energy

PDI’s energy projects mainly focus on solar:

17

Nogata 11 MW in Japan

O p p o r t u n i t y D a y

PDI Mae Ramat (Tak) 6.3 MW PDI Samut Sakhon 1 6 MW PDI Samut Sakhon 2 4 MW PDI Prachinburi 1 8 MW PDI Prachinburi 2 8 MW PDI Prachinburi 3 3 MW PDI Khon Kaen 1MW

PDI Thai Solar

Project Capacit y Land (rai) COD Years Left Tariff Scheme

PDI Prachinburi 1 8+8 MW 183

Dec 2015

23.5 FiT Scheme

5.66 THB

PDI Prachinburi 2 PDI Prachinburi 3 3 MW 50

Apr 2016

24 PDI Samut Sakhon 1 6+4 MW 88

Dec 2015

23.5 PDI Samut Sakhon 2 PDI Khon Kaen 1 MW 20

Jul 2013

21 Adder Scheme

8 THB

PDI Mae Ramat (Tak) 6.3 MW 102

Dec 2013

21 Adder Scheme

6.5 THB

Total 36.3 MW 341

18

O p p o r t u n i t y D a y

Nanao2.27

MW

Nogata 10.73

MW

Nanao Nogata

Capacity (MW) Installed

2.27 10.73

PPA

FIT scheme at 32JPY/kWh , 20 years FIT scheme at 36JPY/kWh , 20 years

COD

Operational

10% above target

March 1, 2018 Project Value

800 M¥ 4,500 M¥

PDI Asia Solar

19

O p p o r t u n i t y D a y

PDI Materials

• Recycling materials

PDI CRT

• Trading business

PDI Metals

20

O p p o r t u n i t y D a y

• Target to supply more than 50,000 MT of SHG Zinc and Zinc Alloys to Thai market
• Continue supporting customers with extensive technical services
• Enhance logistic service efficiency
• Advanced communication using LINE, Facebook and PDI Metals / COE Websites
• Customer engagement activities

PDI Metals

Continue supplying high quality zinc metals and extensive services

21

O p p o r t u n i t y D a y

• Exclusive rights to highly innovative ultra high temperature technology, non existing in Asia
• Strategic partner with ScanArc Plasma Technologies AB from Sweden
• Strong support from Department of Industrial Works (“DIW”) and Industrial Estate Authority of Thailand (‘IEAT”)
• Basic Engineering completed with promising results as for the technical feasibility
• Commercial operations are expected to start in 2020
• Expected investment cost 1,700 MB (850 MB equity)

PDI-CRT

Joint venture to recycle metals containing complex industrial waste:

22

O p p o r t u n i t y D a y

1000 ˚C

Submerged Plasma Technology Process

Melt Zone Reduction Zone 180 ˚C

Recyclables

M

Zinc Oxide Clean Off-gas

Combustion Zone Plasma Torch

Electricity Air LNG/LPG

Plasma Torch

Vitrified Slag & Alloy

ArcFume Furnace Waste Heat Boiler Bag Filter Active Carbon Filter

ZnO

Sell crude, unwashed zinc oxide as end product to smelter

Buyer Raw Material Pretreatment Fuming Gas Cooling & Energy Recovery Zinc Oxide Recovery Gas Cleaning

23

O p p o r t u n i t y D a y

PDI Eco

• PDI 51% DOWA (Japan) 49%.
• Waste management

PDI Tak Eco

24

O p p o r t u n i t y D a y

PDI holds a Joint Venture PDI-DOWA (51/49) with DOWA Eco- System (“DOWA”) from Japan to invest in an industrial waste treatment facility in Tak, Thailand:

PDI Eco

• Sorting, landfilling and energy generation from waste collected

in North and Central Thailand

• Kor 2 (focus group) planned early 2018
• MOU with Department of Industrial Works (“DIW”)
• Expected investment 600 MB (240 MB equity)

Press Site Visit ESBEC

25

O p p o r t u n i t y D a y

2018 Outlook

Growth the new businesses

• Full-scale zinc trading business of 50,000 tons
• Operate Nogata 11 MW solar farm in Japan
• Increase revenues from energy
• Target to reach 150 MW in renewable energy
• Improve performance of operating solar farms
• Obtain all required permits for PDI Tak Eco
• Optimize management of existing assets
• Execute PDI-CRT investment decision

26

O p p o r t u n i t y D a y

27

Q&A

O p p o r t u n i t y D a y