Tipco co Asphal alt t Public lic Co Comp mpan any Limi mited ted (TASC ASCO) O) 3-2019 Opportunity Day (Q2 2019 Operational Results) 15 th August 2019
Dis isclaime claimer This presentation material has been prepared solely for informational purposes only. TASCO is furnishing it solely for use by prospective investors / analysts in the proposed event. TASCO makes no representations or warranties as to the accuracy or completeness of such information. By accepting this material each recipient agrees that TASCO 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 TASCO. Reference in this Disclaimer to this shall include references to the Appendices (if any) hereto.
Agenda Q2 2 20 2019 19 Financi ancial l Pe Perfor formance mance 1 Q2 2 20 2019 19 Highlights hlights 2 H2 2 20 2019 19 Out utlook look 3 Q&A 4
Sa Sale les s & Se Servic vices es Re Revenue enue & Sa Sale les s Volume lume Sales les & Services rvices Revenu venue Unit: Mil. THB 27,632 • Sales and services stood at Baht 10,783.9 million, reflecting an increase of 87.02% from the same period of last year and 52% 10,784 9,571 7,032 7,091 increased from Q1 2019 attributed to significant increased in sale 5,766 5,263 volume Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Year Ye ar 2019 2018 Sales les Volume ume Unit: Mil. Ton • 91% increase in sales volume from the same period of last year 1.54 as a result of continuous and increased crude supply together 0.65 0.49 with high production reliability at our refinery in Q2 2019 0.40 0.34 0.38 0.32 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Year Ye ar 2019 2018
Operating perating Gr Gross ss Pr Profit fit • Gross profit of Q2 2019 was satisfactory given that the market Oper erating ting Gross oss Pr Profit ofit prices fluctuated within range bound. In addition, the Company Unit: Mil. THB has charged out to the Profit and Loss a hedging loss of Baht 2,364 35.6 million in this quarter which did not qualify for hedge accounting and also recorded a hedging gain of Baht 112.6 1,168 916 808 million as Other Comprehensive Income (OCI). 607 518 431 • Cost of sales and services in Q2 2019 stood at Baht 9,822.4 Q1 Q2 Q3 Q4 Year million or 91.08% (87.73% in corresponding quarter in 2018) of sales and services before the allowance for diminution in value 2019 2018 of inventory and hedging Gross ss profi fit mar argin in (%) Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 FY FY • The apparent reduction of gross margin was mainly due to 2019 2019 16.5% 8.5% higher gross margin in the corresponding quarter of 2018 2018 2018 11.5% 9.0% 11.5% 4.5% 8.6% therein the sales volume was low and in an uptrend market condition
EBITD ITDA A & Ne Net Pr Profit fit EBITDA ITDA • The Group’s cashflow generated from operations excluding fire Unit: Mil. THB insurance claim stood at Baht 744.7 million increased by 57% 2,457 over Q1 2019 1,169 1,195 588 538 474 • The Group’s cashflow generated from operations including fire 162 insurance claim stood at Baht 1,195 million increased by 103% Q1 Q2 Q3 Q4 Year over Q2 2018 2019 2018 Net t Profit ofit After ter Tax ax • The Net Profit After Tax of Baht 1,052.9 million for the Q2 2019 Unit: Mil. THB represented 206% increased in corresponding quarter of 2018 1,053 718 564 304 344 132 6 Q1 Q2 Q3 Q4 Year 2019 2018
Debt bt to E Equity quity Ratio io Debt bt/Equity quity Rati tio 1.13 1.00 0.68 0.02 0.01 0.004 Q2 2018 Q1 2019 Q2 2019 Total liabilities/Total equity LT debt/Total equity • The Group’s consolidated debt to equity ratio (D/E ratio) reached 1.13 comparing to 0.68 in corresponding period of 2018 due to increase in working capital financing for higher crude inventory.
Key y Ratios ios and Histor storical ical Dividend ividend et 2/ 2/ ity 1/ 1/ Return eturn on Ass sset Return eturn on Equit Unit: % Unit: % 2019 2018 2019 2018 15.4 10.3 12.3 9.1 8.5 11.2 6.6 6.2 8.1 7.7 4.5 4.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2/ Return is based on sum of last 12 months net profit 1/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax Histor storica ical l Dividend idend Unit: Baht per share Payout ratio 36% 27% 45% 74% 84% Divi vidend dend Poli licy 1.20 The Company has a policy to pay dividends of not less than 60% 0.90 0.90 of its consolidated net profit of each fiscal year. Interim dividend 0.40 0.30 0.20 0.13 The Company is pleased to announce an interim dividend of 0.40 0.10 0.00 Baht/share for the year 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expense pense relating lating to fi fire re inciden cident t and insura surance nce cla laim im • During the six-month period ended 30 June 2019, Loss/( ss/(Gain) Gain) from om the fire re 2018 2018 Q1 2019 Q2 2019 The refinery incurred additional operating expense of incide ident nt (Unit: it: Mil. . THB) Baht 170 million in operating expense for crude 289.9 2/ (378) 3/ Damaged Assets - storage, logistic handling and other related Related expenses to the expenses, attributable to the fire incident . Some of 68.2 143 (44.5) these expenses will be recurring until the damaged incident 1/ crude tanks are back in service Total al 358.1 .1 143 143 (422.5) 2.5) 1/ include cost of floating storage unit rental, demurrage, tanks repair and other expenses 2/ carrying value of damaged assets-written off to Profit & Lost statement • In May 2019, the refinery received a partial payment 3/ partial insurance claim based on replacement cost of damaged assets of insurance claim in connection with damaged assets and related expenses to MYR 60 million or approximately Baht 450 million
Status St us of f crude ude storage rage of f KBC refinery finery Refi finer nery y crude de storage orage Floating ating Storage rage Unit t 2 repaired tanks 2 damaged tanks • 2 repaired tanks are scheduled to be done in Q4 2019 • Rental period last during mid-February 2019 to • 2 damaged tanks are scheduled to done in Q1 2020 February 2020
Q2 2 20 2019 19 - Highlights ghlights Crude de • 4 crude cargos received during the Q2 2019 • Total crude receiving of 8 cargos in first half of 2019 well exceeded target Refi finer nery • Refinery was processing at high utilization rate • New construction and repair of crude storage tanks are underway according to plan
Q2 2 20 2019 19 - Highlights ghlights Domest mestic ic Market ket • Q2 2019 sale volume was benefiting from delay of budget disbursement in Q4 2018 • Entering into low working season Intern ternation ational al Market rket • Strong demand in China, Malaysia and Vietnam markets, especially in China market
Asphalt phalt Se Sell lling ng Pr Price ce vs. . Ic Ice e Brent ent Pr Price ice Unit: t: USD/b /barrel arrel 90.0 Avg. asphalt selling price Avg. Ice Brent price 80.1 74.9 76.0 80.0 71.4 70.1 67.2 68.1 65.3 70.0 61.5 71.2 60.0 57.3 68.3 63.6 60.0 63.8 54.7 52.2 63.3 63.5 50.9 62.2 51.1 46.9 47.1 57.9 45.8 50.0 55.2 53.8 51.2 48.2 45.3 40.0 44.7 38.0 37.4 38.5 30.0 34.7 20.0 10.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019
Highlig hlights hts : A Asphal phalt t Volume lume & Asphalt phalt Revenue venue St Structu ucture re Asphalt phalt sales les volume ume by marke rket t Main n Intern ternation ational al Markets rkets Unit: % Domestic International China Q1 2019 Q2 2018 Q2 2019 65% 72% 83% Vietnam 35% 28% 17% Million on tons 0.34 0.40 0.65 Q2 2018 Q1 2019 Q1 2019 Indonesia Asphalt phalt Revenue venue (Exc xc. . Non asphalt phalt & ser ervice vice incom ome) Unit: % Domestic International Q2 2019 Q2 2018 Q1 2019 Malaysia 55% 68% 80% 45% 32% 20% Australia 4.61 Billion on Bah aht 9.21 5.97 Q2 2018 Q1 2019 Q2 2019
H2 2 20 2019 19 Out utloo look k – Crude ude & Re Refi fine nery ry Crude ude • Existing inventory in-hand is adequate to maintain refinery production until Q1 2020 • Target receiving of 15 crude cargos in 2019 Ref efiner inery • 2 repaired tanks will be resumed operation in Q4 2019 • Renewal of Floating Storage Unit until Feb 2020 • 2 new tanks construction will be scheduled to be completed in Q1 2020
H2 2 20 2019 19 Out utloo look k – Domes mestic tic & In Inter ernational national ma market rket Dome omesti stic c Market ket • 2020 fiscal government budget delay from Q4 2019 to Q1 2020 • Expected stimulus budget from new government to support GDP growth Inte ternati rnationa onal l Market ket • Benefit from consistence crude supply • Peak season in Indonesia and Vietnam
THANK YOU www.tipcoasphalt.com
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