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T - Transparency, Ethics & Integrity - ซอสตย โปรงใส ใสใจจรยธรรม
R - Respect & Trust - เคารพกนและกน เชอมนไวใจ
C - Commitment - มงมนสคณภาพ ปลอดภยทกเวลา รกษาสงแวดลอม รบผดชอบตอสงคม
TRC Corporate Presentation
The 2nd Quarter 2018 Operating Performance
7 September 2018
Disclaimers
IR Contact: Investor Relations Department
Email: [email protected]/ [email protected]
Tel. +66 2022 7777-87 Ext. 3201/ 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
on 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.
2
3
Financial Highlights 27
Future Developments 20
Backlog 10
Corporate Profile & 1H 2018
Significant Events 4
2015 • 1st Transmission Pipeline Life
Extension (28” Recoating Section)
• Srinakarin to Romklao Road • Koh Samui Water Works
Expansion 2016 • LOA for EPCC Surface &
Processing Plant & Facilities from APOT
2017 • Kanlapaphruek Road
Extension • Improvement of Pracharuamjai Road Mitmaitri Road
2005 • Wang Noi-Kaeng Khoi Cross Country Gas Pipeline (JV with China Petroleum Pipeline
(“CPP”), 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 • Revamp Onshore Compressor Station No.1 Project (Consortium with Siemens)
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. (“APOT”)
2013 • Moving to the SET • Navanakorn – Rangsit
Gas Transmission Pipeline • Provincial Gas Transmission Pipeline, Saraburi to Nakhorn Ratchasrima (JV with Sinopec from China) 2014 • Bangchak Biodiesel Plant – Phase II • New Incinerator, TTM
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
Investor For stable recurring
income
Innovative Project Solutions
2018 • Subcontractor for block valve
& facility station of the 5th Transmission Pipeline Project
• EPC of Lubricants Distribution Center& installation Automated Storage and Retrieval System (AS&RS)
4
TRC : Baht 911.2 million
Project Owner: PTT Public Company Limited
Project Contractor Sinopec International Petroleum
Service Corporation, China
Scope of Works: EPCC and Start-up of the 14 block
valve & facility stations under the Fifth
Transmission Pipeline Project Phase 1
Project Value: Baht 755.23 million
Project Period: 33 months
Subcontractor of 14 block valve & facility stations under the Fifth Transmission Pipeline Project, Phase 1 BCM Naphtha and Pygas Pipeline (2 Projects)
Project Owner: SCG Chemicals Company Limited
Scope of Works: Option 1 RTC Area: Baht 74.5 million
Option 2 Interconnecting Pipeline:
Baht 80 million
Project Value: Baht 154.50 million
Project Period: 8 months
1st Quarter 2018: Acquisition of 4 New Projects 1,259 MB)
The Construction of Highway Route No. 4 A. Takua Pa – A. Thai Mueang
Project Owner: Bureau of road construction 1
(The Department of Highways)
Scope of Works: The Construction of Highway Route
No. 4 A. Takua Pa – A. Thai Mueang
between Km.803+000.00 to
Km.813+300.00
Project Value: Baht 347.38 million
Project Period: 600 days
SKW : Baht 347.4 million
5
September 2018: SKW obtained 2 New Projects from Bangkok Metropolitan Administration (1,429 MB)
The construction of overpass bridge,
Na Ranong Intersection
Improvement of Samwa Road
Scope of Works Construction of overpass bridge,
Na Ranong Intersection
Expansion of the existing road and utility system
Project Location Na Ranong Intersection, Klong Toey, Bangkok Samwa Road, Minburi, Bangkok
Contract Value Baht 1,257.08 million Baht 171.54 million
Construction Period 900 days 360 days
Tentative Contract
Signing Date
Within September-October 2018 Within September 2018
6
SKW obtained special class contractor from Department of Highways
on 18 May 2018
Class
Rights to buy bidding
Road Bridge Value of project (Baht)
Special Class
All All No limit
1st Class
1-5, special
- <=500 Million
SKW’s Reputable Clients
7
According to the SET’s announcement on 18 Jun 2018 regarding
SET Index, for the 2nd half of 2018 TRC is still in a list of sSET Index.
TRC has been one of the listed companies for sSET Index calculation since 2017.
TRC was elected as one of listed companies for sSET index of 2H/2018
8
Content
9
Financial Highlights 27
Future Developments 20
Backlog 10
Corporate Profile & 1H 2018
Significant Events 4
TRC Group Backlog
3,487 3,786
2,480
4,635
2,064*
124
2,616
1,200
2,077
2,106
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2014 2015 2016 2017 30-Jun-18
TRC SKW+ 2 new projects in Sep
3,611
6,402
(MB)
3,680
5,599
6,712
30,476
2 New
Projects
from BMA 1,429
30 Jun 18,
4,170
* The Early Works II Project, work value of Baht 2,311 million and Preparation and Refurbishment of Existing Decline Project, work
value of Baht 62.13 million was cut off from backlog due to the delay in the development of APOT's projects. The Company has not
yet been able to sign the EPCC contract with APOT. Therefore, the remaining work value of APOT project of Baht 226 million is
included in the backlog. 10
Backlog as at 30 June 2018
Backlog by Scope of Works
Scope of Works No. of Projects Remaining Value
(MB)
Pipeline System 7 1,476
Civil Work 7 2,316
Processing Plant 2 378
Total 16 4,170
Backlog by Company
Company No. of Projects Remaining Value
(MB)
TRC 9 2,064
SKW 7 2,106
Total 16 4,170
TRC
SKW
Processing
Plant 9%
Pipeline
System 35%
Civil Work
56%
11
Projects on Hand Period
Contract
Value (MB)
Remaining
Value (MB)
TRC Projects:
755.23 709.91
1st Transmission Pipeline Life Extension 3,237.76 504.56
RDCC Catalyst Cooler 492.00 377.56
711.36 226.07
BV4.19 PIG Launcher and Receiver Installation 229.28 123.47
74.50 74.50
BCM Naphtha and Pygas Pipeline (Option 1 RTC Area) 80.00 36.23
Revamp LPG Transfer Pump to Domestic BRP 208.50 10.70
RGC # Sales Gas GSP6 Mixing Header 28.15 0.87
Total TRC Projects 5,816.77 2,063.87
SKW Projects:
1,257.08 1,257.08
Improvement of Pracharuamjai Road – Mitmaitri Road 990.84 914.29
The Kanlapaphruek Road Extenstion 849.72 759.35
Highway Route No. 4 A. Takua Pa, Phang Nga Province 347.38 346.65
171.54 171.54
855.23 16.68
Other 3 projects (@ < 100 MB) 161.26 69.23
Total SKW Projects 4,633.06 3,534.83
Total TRC Group Projects 10,449.83 5,598.69
2021
New Project: Expansion of existing road and utility system,
Samya Road, Minburi, Bangkok
2018 2019 2020
The 5th Transmission Pipeline, Phase 1 (Subcontractor
from Sinopec)
2015
New Project: Construction of overpass bridge, Na Ranong
Intersection
Construction, Improvement and Expansion of Waterworks,
Koh Samui
2017
LNTP for Turnkey Delivery of APOT Project Surface
Processing and Facilities
BCM Naphtha and Pygas Pipeline
(Option 2 Interconnecting Pipeline)
2016
2H 2018 12
Completed 98.1%
Remaining 1.9%
Significant Ongoing Projects
PTT’s 1st Transmission Pipeline Life Extension (3,238 MB) by TRC
Provincial Waterworks Authority’s Construction, Improvement and Expansion of Waterworks, Koh Samui
(855 MB) by Hydrotek Sahakarn JV
Pipeline
C ompleted
84.4%
Remaining
15.6%
Project period: Feb 15 - Aug 19
Project period: Aug15 - Sep 18
PTT’s Revamp LPG Transfer Pump to Domestic BRP (209 MB) by TRC
C ompleted
94.9%
Remaining
5.1%
Project period: Apr 17 - Aug 18 13
Significant Ongoing Projects
Processing Plant
Completion 23.3%
Remaining 76.7%
Project period: Sep 17 - Jun 19
RDCC Catalyst Cooler Project Part 2 Back Pressure Steam Turbine and
Utilities System (492 MB) by TRC
Pipeline PTT’s the Fifth Transmission Pipeline Project, Phase 1, Subcontractor
for The 14 block valve & facility stations from Sinopec (755 MB) by TRC Completion
6.0%
Remaining 94.0%
Project period: Feb 18 - Oct 20
14
Civil Work
Significant Ongoing Projects
Department of Highway’s Extension Kalapapruek Road (850 MB) by SKW C ompleted
10.6%
Remaining
89.4%
Project period: Mar 17 - Aug 19
Improvement of Pracharuamjai Road – Mitmaitri Road (991 MB) by SKW
Project period: Sep 17 - Sep 19
C ompletion
0.2%
Remaining
99.8%
Project period: Feb 18 - Oct 19
Highway Route No. 4 A. Takua Pa – A. Thai Mueang between
Km.803+000.00 to Km.813+300.00 (347 MB) by SKW
C ompleted
7.8%
Remaining
92.2%
15
16
Civil Work
Significant Ongoing Projects
Project period: May 16 - Dec 19
APOT’s Package 2 – 1st Limited Notice to Proceed Early Works of
Surface Processing Plant & Facilities Project (711 MB) by TRC
Completed 68.2%
Remaining 31.8%
Pipeline Journal: World Pipeline June 2018
17
Pipeline Journal (cont.)
18
Content
19
Financial Highlights 27
Future Developments 20
Backlog 10
Corporate Profile & 1H 2018
Significant Events 4
Projects for Bidding
Project Name
Approximate
TRC Group’s Work Value
(Million Baht)
Estimated
Bidding Period
A. Pipeline
A.1 Pipeline for Floating Storage and Regasification
Unit (FSRU) Project from EGAT 3,500 Early of 2019
A.2 The 5th Transmission Pipeline Phase 3 from PTT 1,500 Early of 2019
A.3 New distribution pipeline and modify/reroute
pipeline from PTT 100 - 150 Q4 2018
B. Processing Plant
B.1 Clean Fuel Project (CFP) from Thai Oil
(TRC submitted bid as subcontractor.) 2,000 Q1 2018
B.2 Acrylic Resin Plant 300 Sep 2018
C. Infrastructure
Infrastructure Government Projects
(i.e. Double Track Railway Projects, Road
Improvement & Expansion)
3,000 2H 2018
D. AS/RS Warehouse 2,000 Q4 2018-Q2 2019
20
TRC Potential Project
Clean Fuel Project (CFP)
Thai Oil Group
Floating Storage and Regasification Unit (FRSU)
EGAT
โครงการทอสงกาซธรรมชาตจากสถาน เกบรกษาและแปรสภาพกาซธรรมชาตจากของเหลวเปนกาซแบบลอยน า (FRSU)
ไปยงโรงไฟฟาพระนครใต ระยะทาง 58 กม.
TOP’s EGM held on 27 August 2018 resolved to
approve the investment in the Clean Fuel
Project with the project value of approximately
USD 4,825 or approximately Baht 160,279
million. The period of the project will be 2019 - 2023.
21
FSRU’s 3 Pilot Projects, 2-year cooperation between
EGAT and PTT
• FSRU in northern part of the gulf of Thailand
• FSRU in southern region to substitute for JDA’s
supply
• FSRU in Myanmar for further development with
EGAT’s power plant
SKW & SHC Potential Project
Thailand Smart Metro by Metropolitan Electric Authority
• Project Owner:
TOT Public Company Limited
CAT Telecom Public Company Limited
Metropolitan Electricity Authority
Mass Rapid Transit Authority of Thailand
• 127.3 km.
• Year 2017- 2021
22
SKW Potential Project: AS&RS Warehouse
Project Owner: PTT Oil and Retail Business Public
Company Limited (PTTOR)
Project Value: Approximate of Baht 550- 600 million
Scope of Works: EPC of Lubricants Distribution Center,
Installation Automated Storage and
Retrieval System (AS&RS)
Project Location: Amphur Bang Pakong,
Chachoengsao Province
Project Period: 450 days
New innovative project under cooperation of strategic partner
23
Auto Motion Works Co., Ltd. (AMW), Leader manufacture of Automated Storage and Retrieval System (AS/RS)Technology
References:
• World Ceramic Center Co., Ltd., Head Office
• Scotch Industrial (Thailand) Co., Ltd., Bangbuathong, Nonthaburi
• Siam Global House Public Company Limited, Distribution Center, Wangnoi, Ayudhaya
• King Power Srivaree, Samut Prakarn
• Thai Summit Eastern Seaboard Autoparts Industry Co., Ltd., Rayong
24
Business 2018 2019 2020 2021 2022 Total %
Natural gas 3,854 2,463 1,759 1,676 1,040 10,792 3%
Natural gas transmission
pipeline 26,049 17,841 5,819 6,437 755 56,901 17%
Oil and international trading 14,169 71 6 6 6 12,258 3%
Petrochemical & Refining 21,033 4 4 4 5 21,050 7%
Head office and others 7,038 3,532 4,142 4,259 3,789 22,760 6%
Joint investment and
investment in PTT wholly-
owned entities
176,470 21,969 10,771 8,987 4 218,201 64%
Total 246,613 45,880 22,501 21,369 5,599 341,962 100%
PTT’s 5-year Investment Plan (2018 – 2022)
(Unit: Million Baht) I. PTT’s news reported to the SET on 22 December 2017
* PTT’s board of directors meeting held on June 18, 2018 has reviewed investment plan to reflect the operation and current
circumstances as well as effective budgeting by reducing the 2018 investment plan from Baht 246,613 million to Baht 221,294
million. The reduction is mainly from the investment projects of oil and transmission pipeline business.
II. Revised 2018 Investment from 246,613 MB to 221,294 MB (18 June 18*)
Reducing10.27%
25
Thailand’s EEC
Source: Ministry of Industry’s presentation of “Eastern Economic Corridor Development Project” Driving Forward …. dated 15 February 2017
26
Content
27
Financial Highlights 27
Future Developments 20
Backlog 10
Corporate Profile & 1H 2018
Significant Events 4
Operating Performance : 1H/2018
471 482
1,394
954
Q1/2018 Q2/2018 1H/2017 1H/2018
2% QoQ
32% YoY
Unit : MB
Revenue
1H/2017 1H/2018
55
-12
123
43
Q1/2018 Q2/2018 1H/2017 1H/2018
9
-45
31
-36
Q1/2018 Q2/2018 1H/2017 1H/2018
65% YoY
122% QoQ
EBITDA
164% QoQ 217% YoY
16.4
20.321.5
19.017.2
7.7 7.8
3.82.2
-3.8
-5.0
5.0
15.0
25.0
1H/2017 1H/2018
Gross Profit Margin Net Profit (Loss) Margin
Gross Profit Margin & Net Profit Margin
%
Profit (loss) for the period
28
Gross Profit
Q1 2018 117 MB 25.1%
Q2 2018 45 MB 9.5%
6-M 2018 162 MB 17.2%
Net Profit
Q1 2018 9 MB 1.9%
Q2 2018 -46 MB -9.4%
6-M 2018 -37 MB -3.8%
Service Income
1,388 942
32% YoY
Construction Services Income
1,796
1,075
782 538
1,159
345
237
166
742
950
369
238
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2016 201 1H/2017 1H/2018
Civil Work
Processing Plant
Pipeline System
3,697
2,370
1,388
942
Unit : MB
18%
57%
25%
369
237
782
238
166
538
Civil Work Processing Plant Pipeline System
Construction Services Income Comparison with last year (MB)
1H/2017 1H/2018
1st Half Comparison
29
30
Construction Services Income
2014 2015 2016 2017 2018
Q1 726 774 1,104 952 465
Q2 687 927 434 436 477
Q3 802 871 1,170 452
Q4 880 1,308 989 530
Year End 3,095 3,880 3,697 2,370
726 774
1,104952
465687
927
434 436 477
802871
1,170
452880
1,308
989
530
3,095
3,880
3,697
2,370
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2018 (F) 2,500-2,800
(MB)
6-M 2018 942
Operating Profit Margin & Net Profit Margin
2014 2015 2016 2017 6-Month 2017 6-Month 2018
% Operating Profit 9.13 9.62 11.60 8.18 5.60 0.50
% Net Profit 6.87 7.74 7.78 3.81 2.23 -3.83
-4.00
0.00
4.00
8.00
12.00Operating profit
%
2014 2015 2016 2017 6-M 2017
6-M 2018
Operating Profit (MB) 285.97 380.24 162.61 285.97 78.00 4.78
Net Profit (Loss) (MB) 214.92 305.96 214.92 126.36 31.31 (36.49)
31
726 685 645
1,331 1,266 1,256
72 48 50
2,874 2,599 2,698
-
1,000
2,000
3,000
4,000
5,000
31 Dec 16 31 Dec 17 30 Jun 18
Assets
Current assets
Other non-current assets
Investment in associate and Investment in joint ventures
Property, plant and equipment
5,003
4,598 4,649
(MB)
Financial Position
2,684 2,756 2,706
1,838 1,367 1,321
404
400 546
77
76
-
1,000
2,000
3,000
4,000
5,000
31 Dec 16 31 Dec 17 30 Jun 18
Liabilities and Shareholders' Equity
Non-current liabilities
Loans and debentures
Current liabilities
Shareholders' equity
5,003
4,598 4,649
(MB)
(APOT: 1,259)
(APOT: 1,234)
(APOT: 1,328)
32
58%
1%
27%
14%
2%
12%
28%
58%
Debenture Issuance and Expiration
Issuance Date
Maturity Date
Issuanc
e
Amount (MB)
Outstandi
ng
Amount (MB)
Debenture Holders
Interest
Rate (Per Year)
8 Jul 2015 8 Jul 2017 (2 years)
100 - (Expired)
10 persons 4.68%
10 Mar 2016
10 Mar
2018 (2 Years)
200 - (Expired)
10 persons 4.40%
12 Jul 2017 12 Jul 2018 (1 year)
100 - (Expired)
10 persons 4.50%
15 Mar 2018
17 Mar
2020 (2 years&2
days)
180 180 9 persons 4.80%
Outstanding debentures as at 7 Sep 18
180
I) Debentures Baht 500 million
II) Debentures Baht 2,000 million Still not issue 33
Cash Flows
370259
88396
14
37
Sources of Cash Uses of Cash
472
692
Change in Cash (220 MB)
Increase in
translation
adjustment (0.73 MB)
Ending Cash
115 MB
Beginning Cash
336 MB
S-T loan
received &
debenture issuance
Cash from operation
Withholding tax refund Change in working capital (376 MB) & income tax paid (20 MB)
Debt service repayment & dividend paid (12 MB)
Investment in equipment (22 MB)
and capital increase in SH Crossing by SKW (15 MB)
6-Month 2018 Sources and Uses of Cash (MB)
Financing
Activities: + 111 MB
Operating
Activities: (294 MB)
Investment Activities: (37 MB)
Net CF: (220 MB)
34
TRC Group Industry Group (Construction Services)
0.89 0.860.67
0.950.72
2.462.34
2.47 2.58
0.00
0.50
1.00
1.50
2.00
2.50
3.00
30 Jun 17 30 Jun 18
15.99
11.28
3.38
12.31
0.92
12.26
7.09
2.56
9.05
3.43
0.00
5.00
10.00
15.00
20.00
30 Jun 17 30 Jun 18
(%)
Financial Ratio & Covenants to Debenture Holders
Time(s) Return on Equity Debt to Equity Ratio
0.06
0.160.15
0.20
0.00
0.05
0.10
0.15
0.20
0.25
31 Dec 15 31 Dec 16 31 Dec 17 30 Jun 18
Time(s)
104.12
26.8816.28 11.96
0.00
20.00
40.00
60.00
80.00
100.00
120.00
30 Jun 2018
EBITDA to Interest Time(s)
TRC TRC
Interest Bearing Debt to Equity Covenant: > = 4 times Covenant: < = 2 times
35
If you have any question please feel fee to contact Investor Relations Department
Email: [email protected] or [email protected]
Tel. +66 2022 7777-87 Ext. 3201/ 3213
Fax +66 2022 7778
