T - Transparency, Ethics & Integrity - ซอสตย โปรงใส ใสใจจรยธรรม
R - Respect & Trust - เคารพกนและกน เชอมนไวใจ
C - Commitment - มงมนสคณภาพ ปลอดภยทกเวลา รกษาสงแวดลอม รบผดชอบตอสงคม
Opportunity Day
TRC Corporate Presentation
The 2nd Qtr 2017 Operating Performance
15 September 2017
2
Disclaimers
IR Contact: Investor Relations Department
Email: [email protected]
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
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.
Key Financial Highlights 29
Future Developments 23
Ongoing Projects 13
Company Overview 4
Content
3
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
operating result of 20%
increase with a total
services income of Baht
10,000 million
2019 Target
Vision & Mission & Target*
4
* Approved by the 6/2014 BOD Meeting in November 2014
5
We are TRC
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)
Paid-up 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
Project completed
New subsidiary
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 APOT • 1st LNTP for Early Works from
APOT (Engineering & Site Preparation)
2017 • 2nd LNTP for Early Works
from APOT (Long Lead Equipment)
• Investment in TRC Utility Co., Ltd., new subsidiary for SAO Tasit – Water Supply System Project 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 Revamp Onshore Compressor Station No.1 Project
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”) 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)
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
8
Core Business & Reputable Clients
Reputable Clients 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
sSET INDEX CONSTITUENTS For calculating the index during 1H 2017 and to be continued in 2H 2017
TRC was elected as one of listed companies for SET 100 & sSET Index
SET 100 INDEX CONSTITUENTS For calculating the index during 2H 2016
9
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
TRC and SKW obtained the ISO System Certification
from SGS (Thailand) Limited
11
Content
Key Financial Highlights 29
Future Developments 23
Ongoing Projects 13
Company Overview 4
12
3347 3,487 3,786
2,480
4,245 4,245
599 124
2,616
1,200
1,584 1,584
54
784
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013 2014 2015 2016 30-Jun-17 30-Jun-17
TRC SKW
13
TRC Group Backlog
31,067
4,000 3,611
6,402
5,829 4 new projects
in the 3rd Qtr 17)
(MB)
3,680
+ New Projects (Already obtained LOI/LOA)
37,068
APOT’s Surface
Processing Plant&
Facilities Project*
(after deduction
1st /2nd LNTP for
Early Works)
20,000
30,000
Backlog as at 30 June 2017
Backlog by Scope of Works
Scope of Works No. of Projects Remaining Value
(MB)
Pipeline 4 1,677
Processing Plant 2* 2,398
Civil Works 7* 1,754
Total 12* 5,829
Pipeline 29%
Civil Works 30%
Processing Plant 41%
Backlog by Company
Company No. of Projects Remaining Value
(MB)
TRC 5 4,245
SKW 7 1,584
Total 12 5,829
TRC
SKW
14
*Project APOT consists of both civil works and processing plant
15
Turnkey Delivery of APOT’s Package 2 Surface Processing and Facilities – Obtained LOA in Feb 2016
Project Owner: ASEAN Potash Chaiyaphum Public
Company Limited
TRC’s Work Value*: USD 245.46 million and Baht
25,789.33 million or approximately Baht 34,089 million
Scope of Works: Mineral Processing plant, Office
Building, Power Supply and Facilities Utilities
1. 26 km. Water Pipe line with Associated Facilities
2. Infrastructure and early works
3. Power Plant
4. Process building an area
5. Crystallization Plant
6. 7 km. Pipe Conveyor, Tailing Pond with
Associated Facilities
7. E&I, Interface & Commissioning
Tentative EPCC Contract Signing Date: Within
December 2017 * Details of Work Value
Early Works (1st & 2nd LNTP) 3,022 MB
Remaining EPCC Contract 31,067 MB
Total 34,089 MB
Project Owner: PTT Public Company Limited
Scope of Works: EPC of Revamp LPG Transfer Pump to
Domestic
Project Location: Gas Separation Unit Rayong Province
16
3 New Projects in the 2nd Qtr 2017 (Total 307.33 MB)
TRC
Revamp LPG Transfer Pump to Domestic BRP
Project Value: Baht 208.50 million
Project Period: 510 days
Contract Signing Date: 13 June 2017
: Baht 208.50 million
Concrete barrier type I and Approach
Concrete barrier type D:Project Construction
of a bridge over the Moei River in Mae Sot
between km.13+200 - km.14+500
Project Owner: Lampang Road Construction
Center Department of Highway
Project Value: Baht 0.71 million
Scope of Works: EPC Concrete barrier type I and
Approach Concrete barrier type D
Project Location: Mae Sot, Tak Province
Project Period: 45 days
Contract Signing Date : 27 April 2017
17
3 New Projects Awarded in the 2nd Qtr 2017 SKW
Improvement Nature Trail into National Park Office
Project Owner: Nakhonsithammarat Province
Project Value: Baht 98.12 million
Scope of Works: Improvement Nature Trail into National Park
Office Hat-Khanom-Mu-Ko-Thale-Tai phase Ao Thong Yang - Ao
Thong Yee
Project Location: Nakhonsithammarat Province
Project Period: 8 months
Contract Signing Date: 18 May 2017
: Baht 98.83 million
Completed 82.7%
Remaining 17.3%
Significant Ongoing Projects as at 30 June 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
Completed 64.3%
Remaining 35.7%
Project period: Feb 15 - Oct 18
Project period: Aug15 - Dec 17
Completed 63.6%
Remaining 36.4%
Significant Ongoing Projects as at 30 June 2017
Processing Plant Thailand Tobacco Monopoly’s EPC for Dry Ice Expanded Tobacco Process, DIET Process (833 MB) by SKW
Civil Work BMA’s Srinakarin Romklao Road Phase 1 (1,102 MB) by SKW
Completed 89.5%
Remaining 10.5%
19
Project period: Dec 15 - Oct 17
Project period: Jun 17 - Nov 19
Extension Kalapapruek Road (885.7 MB) by SKW Completion
0.2%
Remaining 99.8%
Project period: Jul 15 - Jan 18
Significant Ongoing Projects as at 30 June 2017
APOT’s Package 2 – 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 - Dec 17
Civil Work
APOT’s Package 2 – 2nd LNTP Early Works for Long Lead Item of
Processing Plant Equipment (2,300 MB) by TRC
Completion 0.0%
Remaining 100.0%
Project period: Mar17 - Aug 18
21
4 New Projects in the 3rd Qtr 2017
Project Name Project Owner/
Client
Work
Value
(MB)
Project
Period Status
SKW
1. Construction Thong Nian Water Supply Station
and Laying of water supply pipes
Provincial Waterworks
Authority Khanom Branch 47.80 240 days
(Jul 17-Mar 18)
EPC Contract signed
on 12 Jul 17
2. Laying of raw water distribution Pipeline in
Quality Coffee Products Ltd.
Eastern Water Resources
Development and
Management Public
Company Limited
15.42 120 days
(Sep 17-Jan 18)
EPC Contract signed on
24 Aug 17
Total 2 Projects 63.22
Project Name Project Owner/
Client
Work
Value
(MB)
Project
Period Status
TRC
1. BV4.19 PIG Launcher and Receiver Installation
Project (Obtained LOI in Aug)
PTT Public Company
Limited 229.28 455 days
(Sep 17- Jun 18)
EPC Contract to be signed
within Sep 17
2. RDCC Catalyst Cooler Project Part 2 Back
Pressure Steam and Utilities System (Obtained
LOI in Aug)
IRPC Public Company
Limited 492.00 21 months
(Sep 17-Jun 19)
EPC Contract to be signed
within Oct 17
Total 2 Projects 721.28
Content
Key Financial Highlights 29
Future Developments 23
Ongoing Projects 13
Company Overview 4
22
List of Potential Bidding Projects during Sep-Dec 2017
Project Name
Approximate
TRC Group’s Work Value
(Million Baht)
Estimated
Project Period
A. Pipeline
A.1 The 5th Gas Transmission Pipeline,
Phase II 3,000 2018 – 2021
A.2 Other Pipeline Projects 2,000 2H 2017 – 2018
B. Processing Plant
Glycerin Plant 450 2H 2017 – 2018
C. Infrastructure
Infrastructure Government Projects
(I.e. Double Track Railway Projects) n/a 2018 onwards
Total 5,450
23
24
The Fifth Transmission Pipeline Project - Phase 2
Project Name: The Fifth Transmission Pipeline Project - Phase 2
Project Value: Approximately Baht 9,175 million
Description of Project: - 42" onshore pipeline from the downstream of midline block valve station
(BV 5. 8) to the existing PTT pipeline network at RA#6 Mixing Station, 12 block
valve stations and 2 dispatching facilities
- The pipeline length is approximately 200 km passing through Chachoengsao,
Prachinburi, Ayutthaya, Bangkok, Pathumthani and Nonthaburi provinces
Project Period: 32 months
Bidding Period: October - November 2017
Awarded Period: Early of 2018
Potential Bidding Projects
25
Potential Awarded Projects
Project Owners & Project Value:
1. Bangkok Metropolitan Administration 367.3 MB
2. Metropolitan Waterworks Authority 195.2 MB
3. TOT Public Company Limited 9.5 MB
4. Metropolitan Electricity Authority 418.8 MB
Total 990.8 MB
Prachruamjai-Mitmaitree Road (Submitted bid by SKW)
Scope of Works: Expansion of the existing road, construction
of canal bridge and utility system
Project Period : 24 months
(Pracharuamjai - Mitmaitree Road, Length approximately of 7- 8 Km.)
26
Potential Awarded Projects
Project Owner: Provincial Waterworks Authority
Project Value: Approximately Baht 522 million
Scope of Works: Improvement Waterworks for
Chaiyaphum - Ban Khwao at
Chaiyaphum Province
Project Period: 420 days
Improvement Waterworks for Chaiyaphum – Ban Khwao Project (Submitted bid by Sahahydro Joint Venture*)
* Shareholders consist of Hydrotek 51% and SKW 49%
27
Investment Project
SAO Tasit– Water Supply System Project
(by TRC Utility Co., Ltd., new subsidiary of SKW)
Type of Project: Build-Own-Operate
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: 31 MB for Phase 1 and
additional 6.5 MB for Phase 2
Tap Water Concession Agreement: signed with SAO Tasit
on 24 July 2017
Construction Period: within 6 months after TWCA signed
Expected COD: December 2017
Concession Period: 3 years + 3 years +… [extendable every 3 years]
Content
Key Financial Highlights 29
Future Developments 23
Ongoing Projects 13
Company Overview 4
28
29
3 months (MB) 6 months (MB)
2nd Qtr 17 1st Qtr 17 + / (-) 2nd Qtr 16 + / (-) 1H 2017 1 H 2016 + / (-)
Construction services income 435.94 952.14 -516.20 433.25 2.69 1,388.07 1,537.59 -149.52
Total revenues 439.86 954.19 -514.33 439.15 0.71 1,394.05 1,551.65 -157.60
Cost & expenses 333.05 983.00 -649.95 394.00 -60.95 1,316.05 1,412.75 -96.69 Share of loss from investments in
associate -7.32 -10.25 -2.92 -8.72 -1.40 -17.57 -13.67 3.90
Profit (Loss) before finance cost and
income tax expenses 99.49 -39.06 138.54 36.43 63.06 60.43 125.23 -64.80
Finance cost -4.37 -3.68 0.69 -3.95 0.42 -8.05 -6.47 1.58
Income tax income (expenses) -24.05 1.74 25.78 -13.13 10.91 -22.31 -36.16 -13.86
Profit (Loss) for the period 71.07 -41.00 112.07 19.35 51.73 30.07 82.60 -52.52 Non-controlling interests of the
subsidiaries -0.49 -0.56 -0.07 -1.76 -1.27 -1.05 -4.60 -3.54
Profit (Loss) attributable to equity
holders of the Company 71.56 -40.44* 112.00 21.11 50.46 31.13 87.19 -56.07
Growth n/a 239% -64%
Gross Profit Margin 38.60%** 10.80% 25.02% 19.04% 18.04% Net Profit (Loss) Margin 16.27% -4.24% 4.81% 2.23% 5.62% D/E Ratio (Time) 0.86 0.74 0.95
The 2nd Qtr & 6-month 2017 Performance
* In the 1st Qtr, TRC Group recorded loss of 40.44 MB mainly due to 33 MB loss from foreign exchange loss ** A high gross profit margin in the 2nd Qtr 2017 at 39% due to effective project cost management
30 30
(MB)
Financial Position
1,378
2,421 2,684 2,695 50
185 276 75
1,203
1,966
2,043 1,920
-
1,000
2,000
3,000
4,000
5,000
31 Dec 14 31 Dec 15 31 Dec 16 30 Jun 17
Liabilities & Equity
Current
Non-current liabilities
Equity
4,572
5,0034,690
2,631
(MB)
Investment in APOT*
:50*
:455*
Shareholding in APOT 4.48% 12.25% 26.22% 25.13%
Debentures*
:100*
:200* :100*
:300*
(including debentures)
(Including current portion of debentures in 2016 and 2017)
2,551
2,108 1,796
849 782
7
1,535
1,158
428 237
507
236
742
261 369
30
1
3
32
75
40
11 6
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2014 2015 2016 6-M 2016 6-M 2017
(MB)
3,127
3,955 3,736
1,552 1,388
31
Total Revenue & Profit
Pipeline 81.6% 53.3% 48.1% 54.7% 56.1%
Process plant 0.2% 38.8% 31.0% 27.6% 17.0%
Civil Work 16.2% 6.0% 19.9% 16.8% 26.5%
Other services 1.0% 0.0% 0.0% 0.2% 0.0%
Other incomes 1.0% 1.9% 1.1% 0.7% 0.4%
Total Revenue Gross profit & Net Profit
557638
751
277 264215
306 291
87 31
18
16
2 3 .0
1 .0
6
8
0.0
5.0
10.0
15.0
20.0
25.0
0
100
200
300
400
500
600
700
800
2014 2015 2016 6-M 2016 6-M 2017
Gross Profit Net Profit Gross Profit Margin Net Profit Margin
(MB) (%)
• Most of construction service income in the 1H 2017 derived from long term projects carried forwarded from pervious year
such as the 1st Transmission Pipeline Life extension Project-Recoating Section, Dry Ice Expanded Tobacco Process,
Construction, Improvement and Expansion of Waterworks at Koh Samui, Srinakarin to Romklao Road, Phase I.
TRC Group Industry Group
0.91 0.89 0.860.95
0.74
2.53 2.462.34 2.38 2.35
0.003 0.060.16 0.20 0.18
0.00
0.50
1.00
1.50
2.00
2.50
3.00
31-Dec-14 31-Dec-15 31-Dec-16 30-Jun-16 30-Jun-17
16.9115.99
11.2812.31
8.98
13.1112.26
7.09
9.05
4.88
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2014 2015 2016 2Q 2016 2Q 2017
(%)
ROE & D/E
Time(s)
Return on Equity Debt to Equity Ratio&
Interest Bearing Debt to Equity
32
Industry Group’s D/E
Industry Group’s ROE
Covenant to Debenture’s Holders: Interest Bearing Debt to Equity <=2.00 times
TRC Group’s interest bearing debt to equity
33
Issuance Date
Maturity Date Amount (MB)
Debenture Holders
Interest Rate (Per year)
8 Jul 2015 8 Jul 2017 (Expired)
100 10 persons 4.68%
10 Mar 2016 10 Mar 2018 (2-Year)
200 10 persons 4.40%
12 Jul 2017 12 Jul 2018 (1-Year)
100 10 persons 4.50%
Total Issuance 400
Outstanding Debentures 300
Debenture Issuance by Way of Private Placement
(Approved by the 2015 AGM)
I) Debenture Baht 500 million
II) Debenture Baht 2,000 million Still not issue
34