the 1st qtr 2017 operating...
TRANSCRIPT
T - Transparency, Ethics & Integrity - ซอสตย โปรงใส ใสใจจรยธรรม
R - Respect & Trust - เคารพกนและกน เชอมนไวใจ
C - Commitment - มงมนสคณภาพ ปลอดภยทกเวลา รกษาสงแวดลอม รบผดชอบตอสงคม
TRC Corporate Presentation
The 1st Qtr 2017 Operating Performance
1 June 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 27
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
(consolidated financial
statements)
Target
Vision & Mission & Target
4
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)
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
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
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
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
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
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
Content
Key Financial Highlights 27
Future Developments 23
Ongoing Projects 13
Company Overview 4
12
3347 3,487 3,786
2,480
4,284
5,952
599 124
2,616
1,200
1,667
355
54
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 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
obtained LOI after
1Q 2017
(MB)
3,680
+ New Projects (Already obtained LOI/LOA)
37,490
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
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
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
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
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
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
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
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
Content
Key Financial Highlights 27
Future Developments 23
Ongoing Projects 13
Company Overview 4
22
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
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]
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
Content
Key Financial Highlights 27
Future Developments 23
Ongoing Projects 13
Company Overview 4
26
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
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
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
16996
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
0
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
TRC and its subsidiaries Industry Group**
0.91 0.89 0.861.03
0.86
2.53 2.462.34 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
16.9115.99
11.28
14.71
7.09
13.1112.26
7.09
9.768.58
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
31