2q 2020 opportunity day · looking statements regarding future events such as plans, business...

Construction A to Z

1

2Q 2020 Opportunity Day11 Aug 2020

DISCLAIMER

The contents of the presentation provide by CAZ (Thailand) Public Company Limited (the“Company”) is provided as information for discussion purpose only.

Some of the information in this presentation may contain projections or other forwardlooking statements regarding future events such as plans, business strategies, futuremarket or industrial situations. Thus, actual situations may differ from what is projectedin this presentation due to the unexpected environment which might be better or worsethat anticipated. The reader must make his/her own assessment of the relevance,accuracy and adequacy of the information contained in this presentation. Including, mayconsider necessary or appropriate for the purpose of such assessment.

Also, the information included in this forward-looking statement may be change by theCompany without notice and then the Company dose not take any duty to update anyrelevant information.

Introduction

Agenda

Financial Performance

Scope of Services

2Q 2020 Overviews

3

Outlook

Introduction

Agenda


Scope of Services

2Q 2020 Overviews

4

Outlook

Introduction

Business and Vision

VisionA most competitive construction contractor who

creates sustainable prosperity in Thailand.

Mission- Excellent construction capability, competitive

fabricator.

- Set engineering capability, entered into oversea

market.

- Strong EPC player in Asia Pacific Region.

CAZ‘s major business range is Construction Total

Service & Management System (Procurement,

Construction, and Shop Fabrication)

To provide clients with the best possible service

in all phases of project from A to Z such as Civil

& Architectural, Structural, Tank & Vessel, and

Heaters Fabrication work, Piping & Mechanical

erection, etc.

5

ManpowerStaff 513 people, Worker 3,620 peopleProjects 1552

As of 30 Jun 2020

Finished On-going Backlog

2,231

2014

Established in

February•Integrated

Production Control

System program to

improve project cost

management

2015

Strong

Partnership• Partnering with

TAKUNI

• Our first EPC project,

PTT ASAHI SAR

• Integrated Welding

Control System & Spool

Tracking Management

System to improve our

quality

2016

New office and

Workshop • Acquired 51% of JKEC

Co., Ltd as subsidiary

• Purchase 108 Rai of

Land and Factory

• Thailand’s biggest

Spherical Tank project,

PTT Tank’s Propylene

tank, 332 MB as EPC 2018

Solid Growth • PTT LNG Cold Water

Project, 643 MB as

EPC project

• Certified ASME

Stamp for Pressure

Vessel, Tank

Fabrication

2017

Sustainability • Additionally acquired

JKEC to be 73% of total

shares

• Highest Backlog of

2,472 MB

• Awarded PTT GC ORP

SMP Project 1,570 MB

and PTT GC PO Civil

Project 451 MB

6

2019

IPO &

First Trading• Offered 80

ordinary million

shares as the

Initial Public

Offering, Trading in

mai on 22 Jan'19

742 MB 651 MB

1,019 MB1,387 MB

2,035 MB

Revenue : 272 MB

Thai Oil LAB PTT ASHAI SAR PTT Tank’s Propylene tank PTTLNG CWG PTTGC OPR SMP 1st Trading day New shop expansion

New shop

Expansion• Expand Factory

#2 to increase

revenue by

Fabrication sales

increase

2Q 2020

Introduction

Milestone

1,175 MB

• Awarded

- TOP Piping Spool379 MB

- HMC STR Fab118 MB

- PTTLNG NF SM 401 MB

7

ISO 9001:2015 CertificateASME Certificate of Authorization

CAZ has developed Quality Management

System to control Total Quality which is

included Quality Assurance, Quality Control

and Quality Audit

Renewed Certificate of ISO 9001:2015on 14.

Sep. 2018

Under Implementation of ISO 14001:2015 &

45001:2018 schedule to achieve within 4Q

2020 (based on Covid-19 pandemic)

Introduction

Quality Standards and Certificates

8

CAZ has been awarded as Outstanding Partner from Samsung Engineering which shows that

we are the best partner to complete projects successfully. This award is giving to the best

company oversea.

PTTLNG Outstanding Service PTT LNG Cold Water Generation

SAMSUNG ENGINEERING Outstanding Service PTT Wangnoi Compressor Station

SAMSUNG ENGINEERING Outstanding Partner Among all partners

Introduction

Award of Appreciation from Client

Introduction

Agenda


Scope of Services

2Q 2020 Overviews

9

Outlook

10

EPC

Engineering

Procurement

Construction

SMP & E&I Civil Others

Steel Structure

Mechanical

Piping

Electrical & Instrument

Civil and Building Shop Fabrication

Tank Fabrication

Pressure Vessel

Fabrication

Bangchak Enclosed

Ground Flare (EGF) Ground Flare Installation

Contract Amount : 272 MB

April 2018– June 2020

PTT GC Olefins

ReconfigurationStructure & Equipment Erection &

Piping Work

Contract Amount : 1,367 MB

May 18 ~ July 20

THAIOIL Clean fuel Civil Work & Equip. Foundation


December 2019 – May 2022

PTT Tank Terminal4,000 tons Spherical Tank, Transfer

Pump, Ground Flare & Etc.


December 2016 – October 2018

Scope of Services

Business Units

11

MaptaphutSattahip

Laem Chabang

Piping Shop (Alloy)

Blasting Shop

Piping Shop (CS SAW Welding)

Painting Shop

Pipe support

Piping Shop (CS)

Labor Camp

Admin Building

Engineering Building

Piping Shop (CS)

Painting Shop

Painting Auto Blasting M/CPiping Shop (SUS)

Piping Factory #1 : 258,000 m2 (108 Rai),Shop Area :30,000 m2, Laydown :86,000 m2

Factory #2

CAZ

10 KM

Location

Pipe Cutting & Beveling

Scope of Services

Head Office & Piping Fabrication Shop

12

Scope of Services

Structure Fabrication Shop

* CAZ will increase capacity 50% more with new shop

Steel Fabrication Shop

40 m x 180 m

Machine Shop

Misc. FabShop

Misc. FabShop

Painting & Blasting Shop

STR Factory #2 (Pluak Dang Work Shop) : 127,000 m2 (79 Rai),Shop Area : 10,200 m2,Laydown Area : 116,800 m2

13

Scope of Services

Ongoing Projects Status

Introduction

Agenda


Scope of Services

2Q 2020 Overviews

14

Outlook

15

Open New STR Factory #2

Renovate Piping Shop

STR shop has been move New location, CAZ will increase capacity 50% more with new shop

All existing shops have been renovated to work for piping work.

2Q2020 Overviews

Key Highlight 2Q 2020

Renovate gantry crane column

and wall openOffice Building (2 Floor)& Main Shop

Miscellaneous Shop

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Award New Projects

PTTLNG Nong Fab LNG Receiving Terminal Project (STR / Mech)

Scope of work : Steel STR Fab & Erection 2,800 Ton / Mechanical erection work

Contract period : Jul 2020 -Aug 2021

Contract amount : 401 Million Baht

Location : Rayong province

PTTLNG Nong Fab LNG Receiving Terminal Project (Jetty Piping)

Scope of work : Jetty Top Side Piping work (140,000 DB), Painting & Insulation Work

Contract period : Jul 2020 -Aug 2021

Contract amount : 863 Million Baht

Location : Rayong province

2Q2020 Overviews

Key Highlight 2Q 2020

17

Social DistancingSafeguarding the health of employees

Social Distance Screening

Hand Sanitizer Gel

Work Site Control

2Q 2020 Overviews

Priority of Responses to COVID-19

Check the body temperature to all employees

Provide alcohol gel for hand cleaning at all company area.

Social distancing for employees at least 1 meter

Introduction

Agenda


Scope of Services

2Q 2020 Overviews

18

Outlook

19


Ongoing Projects Status

Project

GroupContract Amount Portion

Acc. Sales

(From Start to 2Q 20)Progress Backlog

EPC 530* 8% 494 97% 36

SMP / E&I 3,094* 47% 1,331 60% 1,763

Civil 2,283 34% 1,080 47% 1,203

Fab & Others 709 11% 597 84% 112

Total 6,616 100% 3,502 61% 3,114

Mil THB

Announcement on 13 July 2020

PTTLNG Nong Fab LNG Receiving Terminal Project (Jetty Piping) : 863 M THB

PTTLNG Heater : 20.3 M

20

272

742651

1,019

2017201620152014 2018

1,387

Revenue(Million Baht)

2015 2016 2017

Profitability(Percentage)

2018

11.18.3

53.022.9

2015 2016 2017 2018

10.111.6

10.0 10.59.0

7.9

1.1 1.7 2.23.8 3.7

2.9

Gross Profit Net Profit

Net Profit (Million Baht)

2019

2,034

2019

2019

75.5

670 942 2,472 2,287Backlog 230

1,175

2020 (2Q20)

2,231

33.5

2020 (2Q20)

2020 (2Q20)


Overall Highlight

Revenue 3 Months (Million Baht)

540.3

563.7

2Q2019 2Q2020

Revenue6 Months (Million Baht)

4.3%Increased

3 Months

Revenue increased of 23.4 MB due to recognized revenue from backlog carried forward of Y2019. Main projects were from SMP and Civil segment.

Including, recognized revenue from new projects award during period.


2Q 2020 Performance summary (Y-o-Y)

954.7

1,175.5

2Q2019 2Q2020

23.1%Increased

6 Months

Revenue increased of 220.8 MB due to recognized revenue from backlog carried forward of Y2019. Main projects were from SMP and Civil segment.

Including, recognized revenue from new projects award during period.

As of 30 June 2020, has backlog of 2,231.3 Million Baht.

Moreover, announcement of new projects on 13 July 2020 of 883.3 Million Baht. Lead the Company has backlog of 3,114.6 Million Baht.

Gross Profit 3 Months (Million Baht)

48.3

42.6

2Q2019 2Q2020

11.9%Decreased

3 Months

Gross profit decreased of 5.7 MB. 2Q 2020 gross profit margin was 7.6% compared

with 2Q2019 which was 8.9%. A few dropped, due to improved budget cost control for projects in order to update all cost to be close with current costs (Impact from COVID-19 pandemic cause the Company has to adjust labor & other costs).



94.4

92.9

2Q2019 2Q2020

Gross Profit 6 Months (Million Baht)

1.6%Decreased

6 Months

Gross profit decreased of 1.5 MB. Gross profit margin of 6 months was 7.9%

compared with same period of 2019 which was 8.9%. A few dropped, due to improved budget cost control for projects in order to update all cost to be close with current costs (Impact from COVID-19 pandemic cause the Company has to adjust labor & other costs).

Net Profit 3 Months (Million Baht)

21.6

13.5

2Q2019 2Q2020



40.8

33.5

2Q2019 2Q2020

Net Profit 6 Months (Million Baht)

37.6%Decreased

3 Months

Net profit decreased of 8.1 Million Baht. Net profit margin was 2.4% compared with 2Q2019

which was 4.0%. Main reasons which net profit dropped, due to

- Improved budget cost control for projects.- Including of finance cost increased by short term

loan which occurred on mid of 2019 for projects’ working capital. Also for increasing liquidities for projects during of COVID-19 pandemic.

17.9%Decreased

6 Months

Net profit decreased of 7.3 Million Baht. Net profit margin was 2.9% compared with 2019

which was 4.3%. Main reasons which net profit dropped, due to

- Improved budget cost control for projects.- Including of finance cost increased by short term

loan which occurred on mid of 2019 for projects’ working capital. Also for increasing liquidities for projects during of COVID-19 pandemic.

31 8

186 225

565 518

10 20

539 575

156188

327 340

217 227

385 376

64 93

494499

Cash Account Receivable Unbilled receivable

Inventory PPE Others

Accout Payable Advance received Bank Loan

Other liabilities Equity

1,488 Million Baht

Assets

31 Dec 2019

1,554 Million Baht

L/A &

Equity

30 Jun 2020

Assets

Increased Account receivable increased from last year

around 21%. Due to increasing of transfer right of controlling asset and billing invoice to customers for construction contracts on.

PPE and intangible assets increased 14% or increased of Baht 36 Million due to renovate & improve of the new shop at Pluangdang district. Including, invested into construction tool and equipment for support new projects.

Liabilities &

Equities

Increased

Account payable increased due to material purchasing and subcontractors for projects.

Contract liabilities comprised of advance received from customers of Baht 176 Million, and income received in advance of Baht 51 Million. Both increased resulted from revenue recognized and advance received from projects.

Equities increased by 1% due to operating results for 6-month period. Including, interim dividend payment on May 2020, of 30 Million Baht (0.1071 per share).

Significant changed


2Q 2020 Statement of financial position

Leverage Ratio (times)

1.79

0.57

2.10

0.85

-

1.00

2.00

3.00

Debt to Equity Interest Bearing Debt

2Q2019 2Q2020

Efficiency Ratio (%)

21.8

8.2

13.6

6.6

0.0

5.0

10.0

15.0

20.0

25.0

Return on Equity Return on Asset

2Q2019 2Q2020

25


Financial Ratio

Introduction

Agenda


Scope of Services

2Q 2020 Overviews

26

Outlook

* As PTT Group (PTT LNG, Thai Oil, PTT GC, IRPC) invested

for MEGA Project, Down Stream project also shall be

continuously invested (HMC PP, BST, Dow Chemical & etc)

PTTGC / HMC – Award 2,139 M. Baht from 62,600 M.

Baht (3.4%)

2018 Propylene Oxide Project (11,200 M.Baht)

2018 Polyols Project (20,000 M.Baht)

2018 Olefins Reconfiguration Project (22,400 M.Baht)

2019 HMC Polymer Expansion Project (9,000 M.Baht)

2019 Kuraray Project (21,000 M. Baht)

2020 Aromatic Reconfiguration Project (10,000 M.Baht)

2021 Olefins Modification Project (4,700 M.Baht)

IRPC

2019 Paraxylene Plant Project (30,000 M.Baht)

2020 Olefins Expansion Project (20,000 M.Baht)

2021 Diesel Hydro Treating (7,000 M.Baht)

2021 DHDS (12,500 M.Baht)

Business Outlook

Customer Investment

27

2018 Terminal 27.5 MTPA (30,000 M.Baht)

2020 EGAT 5 MTPA

2026 Terminal 35 MTPA

2031 Terminal 45 MTPA

LNG Terminal

Thai Oil

2019 Clean Fuel Project (140,000 M.Baht)

2019 Improvement (4,000 M.Baht)

*Annual Maintenance (1,320 M.Baht)BCP – Award 314 M. Baht from 8,400 M. Baht

(3.7%)

2018 Continuous Catalyst Regeneration Unit (8,400 M.Baht)

2020 DHDS (10,000 M.Baht)

: On going Project : CAZ On going Project

- Award 1,992 M. Baht from 30,000 M.

Baht (6.6%)

- Award 1,300M. Baht from 140,000 M. Baht

(0.9%)

** EURO V Project investment of Baht 50 Billion for 6 Oil Refinery companies (Thai Oil, PTTGC,ESSO, IRPC and Star Petroleum Refining Plc. (SPRC) and BCP).

Business Outlook

Potential project bidding of 2H 2020

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No.

Industries Business unitPeriod duration

(Months)Project value(Million Baht)

Status

1. GAS Piping Jul 20 ~ May 21 860 changed to 863 Awarded on July

2. GAS STR / Mech Jul 20 ~ May 21 401 Awarded on July

3. Refinery SMP Sep 20 ~ Apr 22 1,500

4. Refinery* E&I Work Dec 20 150 Changed to 350

5. Petrochemical* General Contractor Dec 20 1,400

6. Petrochemical* General Contractor Dec 20 ~ Oct 22 1,500

Total 6,014

Note ; * Alternative project bidding

Q & A

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