TRC C Cor orporate orate Pr Presen sentatio tation e 1 st st - - PowerPoint PPT Presentation

SLIDE 1

T - Transparency, Ethics & Integrity - ซื่อสัตย์ โปร่ง ใส ใส่ใจจริยธรรม R - Respect & Trust - เคารพกันและกัน เชื่อมั่นไว้ใจ C - Commitment - มุ่งมั่นสู่คุณภาพ ปลอดภัยทุกเวลา รักษาสิ่งแวดล้อม รับผิดชอบต่อสังคม

TRC C Cor

• rporate
• rate Pr

Presen sentatio tation

The e 1st

st Qtr 2017 Oper

erating ting Per erform

• rmance

nce 1 Jun une e 2017

SLIDE 2

2

Disclaimers

IR Contact: Investor Relations Department Email: ir_trc@trc-con.com

• Tel. +66 2022 7777-87 Ext. 3201, 3207, 3212, 3213

Fax +66 2022 7778

Information disclosed on this presentation includes forward looking information of TRC determined by TRC based on information available at the time, as well as information about risks and factors of uncertainty related to economic trends, intensified competition in the industry, market demand, exchange rates, applicable laws and regulations. Operating results and other information published in the future may vary due to these factors. TRC is in no way responsible for any damage incurred due to the use of information disclosed on this presentation. Further, no obligation to revise and/or publish forward-looking information

• n this presentation based on new information and/or future events.

The information disclosed on this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for securities in TRC in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

SLIDE 3

Key Financial Highlights 27 Future Developments 23 Ongoing Projects 13 Company Overview 4

Content

3

SLIDE 4

 To develop an investment in energy and petrochemical businesses  To deriver the works with quality with recognition of safety within defined timeframe for customers’ highest satisfaction  To run the business under the corporate governance principle focusing on safety, environment, society and community for stable and sustainable growth  To operate the construction business as an EPC contractor (Engineering, Procurement and Construction) for natural gas and crude oil pipeline projects, petrochemical plants and basic infrastructure

Mission

To become an excellent contractor in design, construction of a total solution in energy and infrastructure industries with sustainable growth

Vision

 To acquire the National Total Quality Class (TQC) Award  To continually develop the investment project at least 4 projects  To meet the target of yearly

• perating result of 20%

increase with a total services income of Baht 10,000 million (consolidated financial statements)

Target

Vision & Mission & Target

4

SLIDE 5

5

We are TRC

SLIDE 6

TRC Group Structure

TRC Construction Public Company Limited (Thailand) Paid-up Capital 734 MB

30% 70% Sinopec-TRC Joint Venture (Thailand) PPT’s Provincial Gas Transmission Pipeline Saraburi to Nakorn Ratchasima Project Sinopec International Petroleum Service Corporation (China)

Sahakarn Wisavakorn Co., Ltd. (Thailand) Paid-up Capital 500 MB

99.99% Hydrotek-Sahakarn Joint Venture (Thailand) Construction, Improvement and Expansion of Waterworks, Koh Samui Branch Project 49%

Hydrotek Public Company Limited (Thailand)

51%

6 TRC Utility Co., Ltd.

(Thailand) under establishment

With registered Capital 1 MB

Tap Water Concession of SAO Tasit Project

100% 2.67% 100% 100% 25.12% 22.45%

TRC Investment Limited (Mauritius) TRC International Limited (Hong Kong)

ASEAN Potash Chaiyaphum Public Company Limited (Thailand) Paid-up Capital 2,806 MB

SLIDE 7

7

2005

• Wang Noi-Kaeng

Khoi Cross Country Gas Pipeline (JV with China Petroleum Pipeline (“CPP”) from China)

• Listed on the MAI

2006

• Songkla Transmission Pipeline

2007

• Acquisition Sahakarn Wisavakorn Co.,
• Ltd. as subsidiary by share swap
• Investment in Ratchaploen Co., Ltd.

2008

• Bangchak Biodiesel Plant -Phase I

2009

• EPC for Flow Line in Sultanate of Oman
• Consortium with Siemens for EPC and

Commissioning of the Revamp Onshore Compressor Station No.1 2010-2011

• Gulf’s 7SPP and IPP

Gas Pipeline 2011

• Ubon-Bio Ethanol
• PTTAR-IRPC

Multiproduct Pipeline 2012

• GUT Gas Pipeline

2012 & 2015-2016

• Investment in ASEAN Potash

Chaiyaphum Plc. by TRC International Ltd. and TRC Investment Ltd. 2013

• Moving to the SET
• Navanakorn –

Rangsit Gas Transmission Pipeline

• Provincial Gas

Transmission Pipeline to Nakhorn Ratchasrima (JV with Sinopec from China) 2014

• Bangchak

Biodiesel Plant - Phase II

• New Incinerator, TTM

2015

• 1st Transmission Pipeline Life

Extension (28” Recoating Section)

• Srinakarin to Romklao Road
• Koh Samui Water Works

Expansion 2016

• LOA for Surface & Processing

Plant & Facilities from ASEAN Potash Chaiyaphum Plc.

• 1st LNTP for Early Works from

APOT 2017

• 2nd LNTP for Early Works

from APOT

• Investment in new subsidiary

for SAO Tasit– Water Supply System Project

Key Corporate Milestone

From “Small Business” to “International Thai Multi-Million Company”

Contractor Bidding with many competitors with lower margin EPC Contractor Providing Engineering, Procurement & Construction services with fewer competitors and higher margin Project Developer

• Utilizing EPC experiences and

become the “ONE STOP SERVICE” for the clients

• TRC is equipped capability of EPC

and undertake large scale projects

SLIDE 8

8

Our Core Business & Reputable Clients

Our Reputable Clients Our Core Business

Pipeline Construction for Energy and Petrochemical Industry Mechanical Installation and Process Plant & Construction for Energy and Petrochemical Industry Project Development and Investment Infrastructure Construction

SLIDE 9

9

sSET INDEX CONSTITUENTS

For calculating the index during 1H 2017

SET 100

For calculating the index during 2H 2016

TRC was elected as one of listed companies for SET 100 & sSET Index

SLIDE 10

Top Corporate Governance Report Awards Outstanding Company Performance Awards Outstanding Company Performance Awards Outstanding Investor Relations Awards

Corporate Governance

CG Scoring

2013

Companies with Very Good CG Scoring

Outstanding CEO Awards

2015

10

SLIDE 11

11

Q1 2017 CSR & News updated

January 2017 : 300 gift sets to encourage willpower of Wat Phornpharuangprasit School’ s students January 2017 : TRC-SKW donated relief materials such as drinking water, dried foods, to representatives of the Bangkok Metropolitan Administration to further deliver to flood victims. March 2017 : IT for Kids at Ban Map Lambit School, Chon Buri Province March 2017 : Organized a tutoring course of “English for O-NET” designed for grade 6 students of Klongkeawyingwittaya School March 2017 : Co-host of the royal funeral rite of the late King Bhumibol Adulyadej

SLIDE 12

Content

Key Financial Highlights 27 Future Developments 23 Ongoing Projects 13 Company Overview 4

12

SLIDE 13

3347 3,487 3,786 2,480 4,284 5,952 599 124 2,616 1,200 1,667 355 54

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2013 2014 2015 2016 31-Mar-17 31-Mar-17

TRC SKW Oman Subsidiaries

13

TRC Group Backlog

APOT’s Surface Processing Plant& Facilities Project* (after deduction 1st /2nd LNTP for Early Works) 31,183

4,000 3,611 6,402 5,951

3 new projects

• btained LOI after

1Q 2017 (MB)

3,680

+ New Projects (Already obtained LOI/LOA)

37,490

SLIDE 14

Backlog as at 31 March 2017

Backlog by Scope of Works

Scope of Works

• No. of Projects

Remaining Value (MB) Pipeline 3 1,722 Processing Plant 2* 2,462 Civil Works 5* 1,767 Total 9* 5,951

Pipeline 29% Civil Works 30%

Processing Plant 41%

Backlog by Company

Company

• No. of Projects

Remaining Value (MB) TRC 4 4,284 SKW 5 1,667 Total 9 5,951

TRC SKW

14

*Project APOT consists of both civil works and processing plant

SLIDE 15

15

Name of Project Client Period Project Value (MB) Type

• 1. 2nd LNTP for Turnkey Delivery of APOT

Project Package 2 Surface Processing and Facilities (Long Lead Equipment for Processing Plant) ASEAN Potash Chaiyaphum Public Company Limited 7 months (Mar 17 – Sep 17) 2,310.72 Process Plant

• 2. The Natural Gas Transmission Pipeline

connecting line to Nam Phong's NGV Station The Land Transport Association of Thailand (Nam Phong) 353 days (Jan 17 - Dec17) 58.14 Pipeline 2,368.86

Awarded Projects during 1Q 2017 (already included in 1Q 2017 Backlog)

TRC

Name of Project Client Period Project Value (MB) Type

• 1. Extension Kalapapruek Road
• Department of Rural Roads
• Metropolitan Waterworks Authority
• Metropolitan Electricity Authority

900 days (Mar 17 - Aug 19) 850.00 Civil Work

• 2. Earthworks and Gabion Wall

Amata Natural Gas Distribution Co., Ltd. 7 months (Mar 17 – Sep 17) 8.19 Civil Work 858.19

SKW

SLIDE 16

• Project Owner: PTT Public Company Limited
• Project Value: Baht 58.14 million
• Scope of Works: EPC of pipeline to Nam Pong’s NGV station
• Project Location: Khon Kean Province
• Project Period: 353 days
• Awarded: January 2017

16

Awarded Projects during Jan - May 2017

TRC

The Natural Gas Transmission Pipeline connecting line to Nam Phong's NGV Station 2nd LNTP for Turnkey Delivery of APOT Project Package 2. Surface Processing and Facilities (Long Lead Equipment for Processing Plant)

• Project Owner: ASEAN Potash Chaiyaphum Public

Company Limited

• TRC’s Work Value: Baht 2,310.72 million
• Scope of Works: Mineral Processing Plant, Office

Building, Power Supply and Facilities Utilities

• Project Location: Bamnet Narong District, Chayiaphum

Province

• Project Period: Approximately 3 years
• 2nd Limited Notice to Proceed : 23 March 2017

SLIDE 17

Extension Kalapapruek Road

• Project Owner:
• 1. Department of Rural Roads
• 2. Metropolitan Waterworks Authority
• 3. Metropolitan Electricity Authority
• Project Value: Approximately Baht 850 million (3 contracts)
• Scope of Works: EPC of the extension Kalapapruek Road

for approximately 7.602 km. length together with the involve infrastructure

• Project Location: Kalapapruek Road, Bangkok
• Project Period: 900 days
• Awarded: March 2017

17

Awarded Projects during Jan - May 2017

SKW

Earthworks and Gabion Wall

• Project Owner: Amata Natural Gas Distribution Co., Ltd.
• Project Value: Baht 8.19 million
• Scope of Works: Land reclamation and soil compaction with

Gabion Wall

• Project Location: Rayong province
• Project Period: 7 months
• Awarded: March 2017

SLIDE 18

Completion 79.1% Remaining 20.9%

Significant Ongoing Projects as at 31 March 2017

PTT’s 1st Transmission Pipeline Life Extension (3,725 MB) by TRC Provincial Waterworks Authority’s Construction, Improvement and Expansion of Waterworks, Koh Samui (856 MB) by SKW

Pipeline

18

Completion 59.8% Remaining 40.2%

Project period: Feb 15 - Oct 18 Project period: Aug15 - Feb 17

SLIDE 19

Completion 56.5% Remaining 43.5%

Significant Ongoing Projects as at 31 March 2017

Processing Plant

Thailand Tobacco Monopoly’s EPC for Dry Ice Expanded Tobacco Process, DIET Process (829 MB) by SKW

Civil Work

BMA’s Srinakarin Romklao Road Phase 1 (1,102 MB) by SKW

Completion 81.6% Remaining 18.4%

19 Project period: Dec 15 - Oct 17 Project period: Jul 15 - Oct 17

SLIDE 20

Significant Ongoing Projects as at 31 March 2017

Civil Works

APOT’s Phase I – 1st LNTP Early Works of Surface Processing Plant & Facilities Project (711 MB) by TRC APOT’s Preparation & Refurbishment of Existing Decline (144 MB) byTRC 20

Completion 48.7% Remaining 51.3% Completion 54.3% Remaining 45.7%

Project period: May 16 - Dec 17 Project period: Jan 16 - Jun 17

SLIDE 21

21

3 new projects after 31 Mar 17 which already obtained LOI

Project Name Project Owner/ Client Work Value (MB) Project Period Status Pipeline by TRC Revamp LPG Transfer Pump to Domestic BRP PTT Public Company Limited 208.50 17-Month EPC Contract to be signed by Q2 2017 Civil Works by SKW The Improvement Nature Trail into National Park Office Hat-Khanom-Mu-Ko-Thale-Tai phase Ao Thong Yang - Ao Thong Yee Nakhon Si Thammarat Province 98.12 8-Month EPC Contract to be signed by Q2 2017 Construction Thong NianWater Supply Station and Laying of water supply pipes Provincial Waterworks Authority Regional Office 4 48.13 8-Month EPC Contract to be signed by Q2 2017 Total 3 Projects 354.75

SLIDE 22

Content

Key Financial Highlights 27 Future Developments 23 Ongoing Projects 13 Company Overview 4

22

SLIDE 23

List of Potential Bidding Projects during Jun - Dec 2017

Project Name Approximate TRC Group’s Work Value (Million Baht) Estimated Project Period A. Pipeline A.1 Gas Transmission Pipeline Projects 3,000 2017 - 2021 A.2 Other Pipeline Projects 500 2017 onwards

• B. Processing Plant

B.1 Glycerin Plant 300 2017 B.2 Other Projects 500 2017 onwards

• C. Infrastructure

Infrastructure Government Projects 3,500 2017 onwards Total 7,800 23

SLIDE 24

24

New Investment Project : Under New Subsidiary Establishment

SAO Tasit– Water Supply System Project

Type of Project : Build-Own-Operate (“BOO”) Project Name : Tap Water Concession of SAO Tasit Location : T.Tasit, A.Pluak-Daeng, Rayong Plant Capacity : Phase 1 – total 2,400 cu.m. per day Phase 2 – total 4,800 cu.m. per day Source of Raw Water: Klong Kram (priority), Klong Rawoeng, and Nong Pla Lai Reservoir Initial Investment : 46.5 MB for Phase 1 and additional 6.5 MB for Phase 2 TWCA* : to be signed with SAO Tasit within July 2017 (* Tap Water Concession Agreement) Construction Period: within 6 months after TWCA signed Expected COD : December 2017 Concession Period : 3yrs + 3yrs +… [extendable every 3 yrs]

SLIDE 25

Key Success Factor

• Raw Water Secure
• Project is located nearby natural canals namely Klong Kram and Klong Rawoeng which

having flow rate at approx. 68,000 and 73,000 cu.m./day respectively.

• Project is planned to build its own reservoir at capacity 60,000 cu.m. to divert and store

water from Klong Kram.

• Project also can divert water from Nongplalai Reservior at 7,200 cu.m./day which

already allowed by RID under the quota of SAO Tasit.

• Cost of Raw Water
• No cost for water diversion from natural canals.
• Cost of raw water from Nongplalai at only 50 stang paid to RID.
• Good Service and Quality of Tap Water
• Engage O&M service from local supplier who is in charge of existing services of SAO

Tasit and provides service to K-Water who being tap water concessionaire in Pluakdaeng.

• Well plan for periodic monitoring and surveying.

25

SLIDE 26

Content

Key Financial Highlights 27 Future Developments 23 Ongoing Projects 13 Company Overview 4

26

SLIDE 27

Q1 2017 & Q1-Q4 2016 Performance

(Unit: Million Baht)

27

Q1 2017 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Y 2016 %YoY %QoQ Construction services income

952.14 1,104.34 433.25 1,170.17 989.54 3,697.30

• 13.78%
• 3.78%

Total revenues

954.19 1,112.50 439.15 1,172.56 1,012.69 3,736.90

• 14.23%
• 5.78%

Cost & expenses (excluded depreciation, amortisation and gain (loss) on FX)

921.67 992.01 371.85 1,024.04 789.95 3,177.84

• 7.09%

16.67%

EBITDA before Share of loss from investments in associate & Fx

32.52 120.49 67.30 148.52 222.74 559.05

• 73.01%
• 85.40%

Gain (Loss) on exchange rate

• 34.38

0.46 6.83

• 8.12
• 10.70
• 11.54 -7645.30%

221.30%

Share of loss from investments in associate

• 10.25
• 4.95
• 8.72
• 9.70
• 9.56
• 32.94

106.91% 7.14%

EBITDA

• 12.10

115.99 65.41 130.70 202.47 514.57

• 110.44%
• 105.98%

Depreciation and amortisation

• 26.95
• 27.20
• 28.98
• 29.28
• 28.64
• 114.10
• 0.90%
• 5.91%

Profit (Loss) before finance cost and income tax expenses

• 39.05

88.80 36.43 101.42 173.83 400.48

• 143.98%
• 122.47%

Finance cost

• 3.68
• 2.52
• 3.95
• 5.67
• 4.89
• 17.03

46.00%

• 24.73%

Income tax income (expenses)

1.74

• 23.03
• 13.13
• 26.18
• 36.00
• 98.34
• 107.55%
• 104.83%

Profit (Loss) for the period

• 41.00

63.25 19.35 69.57 132.94 285.11

• 164.82%
• 130.84%

Non-controlling interests of the subsidiaries

• 0.56
• 2.84
• 1.76
• 0.68
• 0.38
• 5.65
• 80.18%

49.74%

Profit (Loss) attributable to equity holders of the Company

• 40.44

66.09 21.11 70.24 133.32 290.76

• 161.19%
• 130.33%

Gross Profit Margin

10.80% 15.30% 25.02% 16.78% 27.98% 20.30%

Net Profit (Loss) Margin

• 4.24%

5.94% 4.81% 5.99% 13.16% 7.78%

D/E Ratio (Time(s))

0.86 1.03 0.95 0.94 0.86 0.86

SLIDE 28

Cash Flows

28

Cash, 94 MB Assets, 4,894 MB

(excluded cash)

Liabilities, 2,265 MB

Equity, 2,644 MB

D/E Ratio at 0.86 Time

Consolidated Q1 2017 Q1 2016 2016 Operating CF (220) (205) (389) Investing CF (28) (749) (1,038) Financing CF 233 208 247 Net Cash (15) (746) (1,180) Beginning Cash 109 1,289 1,289 Ending Cash 94 543 109

(Unit: Million Baht)

As at 31 Dec 2017

SLIDE 29

29

Total Revenue & Profit

Pipeline

81.6% 53.3% 48.1% 63.9% 55.3%

Process plant

0.2% 38.8% 31.0% 24.2% 17.5%

Civil

16.2% 6.0% 19.9% 11.1% 26.9%

Other services

1.0% 0.0% 0.0% 0.2% 0.1%

Other incomes

1.0% 1.9% 1.1% 0.6% 0.2%

Total Revenue Gross profit & Net Profit

557 638 751 169 96 215 306 291 66

• 40

18.0% 16.4% 20.3% 15.3% 10.8 6.9% 7.7% 7.8% 5.9%

• 4.2% -5.0

0.0 5.0 10.0 15.0 20.0 25.0

• 100

100 200 300 400 500 600 700 800 2014 2015 2016 1st Qtr 2016 1st Qtr 2017

Gross Profit Net Profit (Loss) Gross Profit Margin Net Profit (Loss) Margin

(MB) (%)

2,551 2,108 1,796 708 528 7 1,535 1,158 268 167 507 236 742 123 257 30 1 2 1 32 75 40 6 2

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 2014 2015 2016 1st Qtr 2016 1st Qtr 2017 (MB)

3,127 3,955 3,736 1,112 954

SLIDE 30

TRC and its subsidiaries Industry Group**

0.91 0.89 0.86 1.03 0.86 2.53 2.46 2.34 2.37 2.31

0.00 0.50 1.00 1.50 2.00 2.50 3.00 2014 2015 2016 31-Mar-16 31-Mar-17 16.91 15.99 11.28 14.71 7.09 13.11 12.26 7.09 9.76 8.58

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 2014 2015 2016 1st Qtr 2016 1st Qtr 2017

(%)

ROE & D/E

Time(s)

Return on Equity Debt to Equity Ratio

30

2013: PROPCON, CONMAT, PROP 2014 onwards: CONS

Bond Covenant: 2 times

SLIDE 31

31