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STRICTLY CONFIDENTIAL DISCLAIMER This presentation material has been prepared solely for informational purposes only. Millcon Steel PLC (MILL) is furnishing it solely for use by prospective investors/analysis in the proposed event. MILL

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STRICTLY CONFIDENTIAL

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STRICTLY CONFIDENTIAL This presentation material has been prepared solely for informational purposes only. Millcon Steel PLC (“MILL”) is furnishing it solely for use by prospective investors/analysis in the proposed event. MILL makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient agrees that MILL 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 purport 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 MILL. Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.

DISCLAIMER

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  • 1. Company Profile
  • 2. Industry Overview
  • 3. Financial Performance
  • 4. Strategy and Direction

Agenda

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Company Overview

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MILL at a Glance

Group Business

99.10% 100.00% 100.00% 99.99% 51.00%

Subsidiaries

45.00% 40.00% 40.00% 50.00%

Associates

Wire rod 500,000 Tons/Yr Rayong, Thailand Billet 650,000 Tons/Yr Rayong, Thailand Scrap Metal 460,000 Tons/Yr Chonburi, Thailand Structural Pipe 96,000 Tons/Yr Bangkok, Thailand Steel Bar 270,000 Tons/Yr Bangkok, Thailand 360,000 Tons/Yr Rayong, Thailand Structural Steel 64,397 Tons/Yr Yangon, Myanmar Trading Company in Thailand Trading Company in Myanmar Engineering Service Construction Management Software

98% 51%

Production Facilities in Thailand Production Facility in Myanmar

25.00%

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623.03 2,662.92 3,239.51 9,416 10,032 9,782 14,966 16,335 13,547 10,177 12,331

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 F2016

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MILL Milestone

Target 2016

2007 IPO 2008 Expand steel bar capacity To 550,000 tons/year Global Financial Crisis 2012 Backward integration project Billet capacity at 500,000 tons/year Thailand’s Political Revolution 2015 JV for Wire rod capacity at 500,000 tons/year Red Shirt Uprising 2005 Trading company 2006 Expand business line to long steel product

 Founded in 1998 and listed on the SET in 2007, Mill has produced variety of steel products to serve diversified needs of customers, such as round bar, deformed bar, lip channel steel, and etc. which has earned both domestic and international standard certification.  Mill has developed its production facilities and capability toward high-grade special products to serve automobile and other industries over time.

Acquisition TSSI asset s

A passion for steel to be high-grade steel business in Thailand and globally

Sale Value: Million Baht

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Industry Overview

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Region Q3/15 Q3/16 % Change China 197,301 203,548 3.2% Japan 26,197 26,328 0.5% India 22,183 24,103 8.7% United States 20,252 19,633

  • 4.2%

Russia 17,974 17,677

  • 1.7%

South Korea 17,337 17,591 1.5% Germany 10,420 10,152

  • 2.6%

Turkey 7,482 8,080 8.0% Brazil 8,176 8,050

  • 1.5%

Ukraine 5,836 5,867 0.5%

  • Steel industry continues to face challenges from China’s economic

slowdown which has created significant impact globally across a range of indicators from volatility in financial markets, sluggish growth in global trade to declining oil and other commodity prices.

  • World steel forecasts that global steel demand will grow by 0.2% to

1,501 Mt in 2016. However, steady growth by 0.5% for steel demand in all markets except China is expected in 2017.

  • Steel demand in the ASEAN 5 (Thailand, Malaysia, Vietnam,

Indonesia, Philippines) is also expected to maintain a growth

rate of around 6% due to their infrastructure building

activities and will reach 75 Mt in 2017.

  • 200

400 600 800 1,000 1,200 United States European Union Asia China Japan Taiwan, China South Korea Thailand 331 288 261 488 497 750 1,119 266

APPARENT STEEL USE KG. PER CAPITA 2015

Overall Steel Industry

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Source : World steel (Uni t : ‘000 Tons)

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Construction Material and Special Application

Steel Supply Chain

Electric arc furnace Cut and Bend service Billet Commercial grade Special grade Wire Rod High end Low and High Carbon Wire Mesh PCW CO2 Wire Bead Wire Deformed Bar Nail PCS Fasteners

Technology to produce special billet

HRC Structural Steel Slab Coil Springs

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        

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Thailand’s Steel Trend

Graph below show Thailand’s Steel Demand and Supply

10 For 2016, Thailand steel consumption has been forecasted at approximately 17.54 Million tons, which is growth by 3.8% - 5.7% from 2015.

Source :Iron and Steel Institute of Thailand Source : Krungsri Research Thai Production and Sales Car Forecast

1,243 1,363 1,499 7.00% 8.80% 8.60% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 2016F 2017F 2018F

  • 500

1,000 1,500 2,000

Billion Baht

Total Construction Value Total Construction Growth

Construction Investment Trend

Construction , 59.10% Automotive, 17.60% Machinery, Ship Building & Industrial, 10.40% Appliance, 8.60% Packaging, 3.70% Other, 0.60%

Thailand steel demand breakdown

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AD issues in Thailand steel

Thailand measurement protection

Product Country Measurement protection Period Wire rod - Low carbon China Tax rate 12.81% - 31.15% of C.I.F 5 year (Start 10 Mar 2016) Wire rod - High carbon China Tax rate 5.17% - 33.98% of C.I.F 5 year (Start 16 May 2014) HRC China Tax rate 30.91% of C.I.F. 5 year (Start 23 May 2015) Malaysia Tax rate 23.57% - 42.51% of C.I.F. 5 year (Start 16 May 2015) Boron added HRC China Tax rate 14.28% - 19.47% of C.I.F 5 year (Start 26 Dec 2012) Pipe Korea Tax rate 11.96% - 51.53% of C.I.F 5 year (Start 15 Sep 2016) Taiwan Tax rate 2.38% - 29.04% of C.I.F 5 year (Start 15 Sep 2016) China Tax rate 145.31% of C.I.F 5 year (Start 15 Sep 2016) Vietnam Tax rate 310.74% of C.I.F 5 year (Start 15 Sep 2016) Remark

  • Billet – If import billet commercial and special grad not taxable.
  • Steel bar - TIS’s steel bar must produces from Electric Arc Furnace.
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  • Thailand’s steel demand contracted by more than

3% in 2015. This was mainly due to the political problem in the country which has a negative impact

  • n the country’s economic growth.
  • Nevertheless, local demand of Wire Rod in Thailand

has been quite stable.

(Unit : Million Tons)

Thailand’s Steel Consumption

12 Thailand’s demand of wire rod has been consistently under supply for several years Source :Iron and Steel Institute of Thailand

7.48 6.94 7.02 6.88 6.79 6.50 5.80 14.01 14.65 16.91 17.73 17.34 16.73 13.55 2010 2011 2012 2013 2014 2015 9M' 2016 Million Tons

APPARENT FINISHED STEEL PRODUCT AND CONSUMPTION IN THAILAND

Production Consumption

4.62 4.76 5.64 5.96 6.17 6.14 5.45 9.39 9.88 11.27 11.77 11.17 10.59 8.10 2010 2011 2012 2013 2014 2015 9M' 2016 Million Tons

FINISHED STEEL CONSUMPTION IN THAILAND

Long Product Flat Product

0.84 0.92 0.81 0.59 0.43 0.41 0.39 1.21 1.18 1.87 1.99 2.07 2.00 1.56

2010 2011 2012 2013 2014 2015 9M' 2016

Wire rod

2.82 2.73 3.24 3.40 3.51 3.61 3.45 2.61 2.75 3.44 3.65 3.76 3.85 3.71

2010 2011 2012 2013 2014 2015 9M' 2016

Steel Bar

Production Consumption

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Financial Performance

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415.75 781.62 1,252.61

4% 6% 9%

0% 2% 4% 6% 8% 10%

  • 200.00

400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 2014 2015 9M'2016 Gross Profit GPM 2,760 2,869 3,181 3,550 4,795 5,221 4,528 12,330 14,545 xxx 165,265 176,135 198,397 269,771 386,679 370,356 343,513 809,569 xxx

  • 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

  • 5,000

10,000 15,000 20,000 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 2015 F2016

Tons Million Baht

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MILLCON STEEL - Financial as of 9M’2016

YoY 9M’2016 growth Sale Volume 104% Sale Value 65%

Sale Value breakdown 9M’ 2016

  • In 9M’2016, sale value increased 65% and sale volume increased

104% or 563,447 tons compared to 9M’2015 as Millcon Burapa sold billets to KMS for wire rod production. Sale value from billet selling dramatically rose 235%

Sale Volume and Value

Million Baht Steel Bar 53% Structural Steel 3% Wirerod 5% Billet 35% Trading and Other 4% Million Baht

Compare Sale value Breakdown 9M’2016 9M’2015 YoY As a result of Steel Bar Wire Rod Structural Steel Billet Other 8,196 815 592 4,543 399 6,513

  • 419

1,356 498 26%

  • 41%

235%

  • 23%
  • Market expansion
  • Launched new products of group
  • Market expansion
  • Sell to KMS and also export

Total 14,545 8,787 65%

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994 995 51 389 705 299 705 299

2015 9M'2016 2015 9M'2016 Operating Net one time transactions

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MILLCON STEEL - Financial as of 9M’2016

(Unit: Million Baht)

Net Profit EBITDA

756 688 1,699 1,294

2015 9M’2016 EBITDA on FS Net Profit (Loss) on FS 1,699 756 1,294 688 Net Gain for the period as a result of:

  • 1. One time transaction
  • Profit from sale machinery
  • Profit from selling asset (land 175 rai)

154 938 415 Total One time gain Transaction 1,092 415 Net loss for the period as a result of:

  • 1. One time transaction
  • Expense FA for MSS
  • Interest from loan for MSS
  • Special grade testing
  • Allowance

41 96 58 116 116 Total One time Loss Transaction 387 116 Adjusted EBITDA Adjusted Net Profit 994 51 995 389

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Non-CA 11,460 Equities 5,860 Non-CA 10,617 Equities 6,243 CA 7,844 Total liabilities 13,444 CA 7,860 Total liabilities 12,234

2015 30 Sep 2016

Million Baht

IBD: Interest Bearing Debt in THB mm

Debt Breakdowns Q3/2016 Financial Status

MILLCON STEEL – Financial as of 9M’2016 (Con’t)

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  • Total assets as of September 2016 was 18,477 million baht,

decreased by 759 million baht due to the fact that one of associated company changed its status to be a joint venture company.

  • Total liabilities as of September 2016 was 12,234 million

baht, declined by 1,210 million from loan repayment. 19,236

2.95 2.67 2.29 1.75 2.43 2.20 1.98 1.20 2013 2014 2015 Y2016F

D/E IBD/E

Debt / Equity

18,477

Working Capital, 7,693.86 Long-Term loan for melt shop, 699.50 Others, 168.53

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Strategy & Direction

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Business Strategy

Creating Value with Each Initiative 1 Construction Material & Engineering

 CUT and BEND Project Study for capacity expansion  PEB Project Produce Pre-Engineered Buildings (PEB) to add value to products  Online Program Invest in platform to be an online sale channel to distribute products to end- user customers  Pre-study

  • Steel plant

2016 – 2020 business strategy to Sustainability 2 Specialty Steel 3 Synergy Business

 Special Grade Billet Aim to produce special grade billets 100% of capacity  Pre-study

  • SBQ
  • Wire processing

 Busduct Project Study & plan to produce an electrical power distribution and transmission

  • f high currents with communication

capabilities in large buildings  Solar Rooftop Project To sustain cost saving in long term  Logistics Project To set up joint venture company for

  • perating logistics business

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Millcon Thiha Co., Ltd.

  • Established Millcon Thiha Co., Ltd.

as a trading company to sell steel and construction materials Millcon Thiha Gel Co., Ltd.

  • Established Millcon Thiha Gel Co.,
  • Ltd. at Thilawa Special Economic

Zone to manufacture structural steels with capacity of 64,397 tons/ year JV with partnes

  • Trading and manufacturing PEB &

steel products

  • Capacity of PEB production:
  • Mainframe 18,000 tons/year
  • Secondary part and Roof & Wall

36,000 tons/year

  • Expand PEB production in Vietnam

and Myanmar Expand markets in Cambodia and Laos

  • In the future, our company may

expand our bases to overseas in the same way as Myanmar

  • We started to expand our markets

by trading with Cambodia and Laos

Strategic Move

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  • 1-