2Q/17 Opportunity Day Presentation The Stock Exchange of Thailand August 23, 2017
DISCLAIMER This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. TTA has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and TTA does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 2
AGENDA COMPANY OVERVIEW 2Q/17 PERFORMANCE MARKET OUTLOOK APPENDICES 3
THORESEN GROUP AT A GLANCE • Established 1904: 100+ years of financial strength • Headquartered in Bangkok, Thailand • Global presence spanning more than 10 countries in three continents Vision Stock Information (as of 21 August 2017) • Market SET, SET100 “TO BE THE MOST TRUSTED ASIAN • Symbol TTA:TB | TTA:BK INVESTMENT GROUP, CONSISTENTLY DELIVERING ENHANCED • Industry Services STAKEHOLDER EXPERIENCE ” • Sector Transportation & Logistics • First Trade Date 25 Sep 1995 • Paid-up Capital 1,822,464,006 Baht Shareholding Structure (as of 31 July 2017) • Par Value 1 Baht • Market Capitalization Baht 17,404.53 million or US$ 523.95 million • Free Float 72.17% • Foreign Limit 49% • Dividend Policy At least 25% of the consolidated net profits after taxes but excluding unrealized foreign exchange gains or losses, subject to the Company’s investment plans and other relevant factors (with additional conditions) 4
OUR STRATEGIC BUSINESS PORTFOLIO Total Revenues EBITDA 3,532 MB 3,597 MB 545 MB 612 MB 2Q/2016 2Q/2017 2Q/2016 2Q/2017 Transport Energy Infrastructure Investment 5
2Q/17 HIGHLIGHTS Key Event • TTA disposed one vessel in April 2017 and acquired two second-hand vessels in May and July 2017 at Update the value of US$ 7.9 million and US$ 13.0 million, respectively, to continue with fleet renewal. • TTA, through its subsidiary, acquired Pizza Hut business in Thailand from Yum Restaurants International (Thailand) Co., Ltd. in June 2017 to enable the Group to diversify into fast-growing and stable Food & Beverage sector. Business Flagship Company QoQ YOY Performance Transport TSG Energy MML Infrastructure PMTA Infrastructure UMS Financial • Strong consolidated balance sheet with cash and short-term investments totaling Baht 7.6 billion at Position ending 2Q/17. • Repay principal of debentures of Baht 2,000 million at maturity in June 2017. 6
KEY BUSINESS DRIVERS TSG’s TCE rate is related to supply & demand Baltic Exchange Dry Index reflecting in BDI. BDI has continually picked up from its lowest level at 290 in February 2016 to an average at BDI 1,206 BDI 1,105 BDI 718 BDI 673 BDI 975 1,006 in 2Q/17 MML’s drilling services is related to oil price while MML’s subsea services is lowly related to it. During 2Q/17, Crude oil remained to be volatile, trading within the range of US$ 44-57 per barrel but slowly rose from the lowest level at US$ 27.88 per barrel last year Coal market prices continued to increase toward the 2013 2014 2015 2016 6M 2017 end of the year 2016 and slightly declined in 1Q/17 and 2Q/17. Brent Crude Oil (US$/Barrel) New Castle Coal Index (US$/Ton) 140 120 100 80 60 40 20 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 7
AGENDA COMPANY OVERVIEW 2Q/17 PERFORMANCE MARKET OUTLOOK APPENDICES 8
THORESEN THAI AGENCIES (TTA) CONSOLIDATED INCOME STATEMENT Net Profits/(Losses) to TTA Revenues Gross Profits EBITDA Net Profits/(Losses) (M.THB) (M. THB) +2% YoY (M.THB) (M.THB) (M.THB) +21% YoY +16% QoQ Net Profits/(Losses) +12% YoY +53% QoQ Net Profits/(Losses) to TTA +58% QoQ +193% YoY Normalized Net Profits Normalized Net Profits to TTA 3,597 +202% QoQ 974 3,532 612 +801% YoY 545 292 808 255 +146% QoQ 215 637 387 191 141 3,103 100 97 87 66 57 11 -31 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 TSG MML PMTA UMS in million Baht 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 2Q/16 1Q/17 2Q/17 Revenues 800 1,029 950 1,751 1,283 1,525 822 538 792 79 181 160 Gross Profits 62 193 287 541 294 434 207 153 219 24 20 22 EBITDA (3) 176 227 436 149 277 89 38 100 8 (1) 5 Net Profits/(Losses) (196) 46 95 274 26 124 63 2 74 (11) (17) (14) Net Profits/(Losses) to TTA (196) 46 95 159 15 72 42 2 51 (10) (15) (13) Gross Margin (%) 8% 19% 30% 31% 23% 28% 25% 28% 28% 30% 11% 14% EBITDA Margin (%) 0% 17% 24% 25% 12% 18% 11% 7% 13% 10% 0% 3% Net Profit Margin (%) -25% 4% 10% 16% 2% 8% 8% 0% 9% -14% -9% -9% Note As of 30 June 2017, TTA held TSG @ 100%, MML @ 58.2%, PMTA @ 68.5%, and UMS @ 90.1% Transport Energy Infrastructure Investment Total revenues rose 16% QoQ to Baht 3,597 million as most of its businesses have picked up from their low quarter in 1Q/17 to the seasonal growth in 2Q/17 and remained flat YoY. Continued uptrend in freight market resulted in better consolidated net profits to TTA of Baht 215 million in 2Q/17, up 146% QoQ and 801% YoY. 9
THORESEN THAI AGENCIES (TTA) CONSOLIDATED FINANCIAL POSITION – Strong financial position to support growth Unit: Million Baht 41,620 Debenture Cash and Cash 36,876 Equivalents + ST Loan Other Liabilities Short-term Investments Interest Bearing Debts Current Assets Property, Plant, and Equipment Total Equity Other Non-Current Assets LT Loan As of December 31, 2016 As of June 30, 2017 Key Financial Ratio • Strong consolidated balance sheet with cash and short-term investments totaling Baht 7.6 billion at ending 2Q/17. • Interest bearing debts decreased mainly from repaying principal of debentures of Baht 2,000 million at maturity. • Strong capital structure – Net IBD to equity ratio as low as 0.04 times as at ending 2Q/17. • Total equity as of 2Q/17 decreased from year end 2016 mainly from foreign currency translation difference for foreign operation. Thai Baht was stronger against US dollar from an average of 35.29 Baht/US$ in 2016 to an average of 34.71 Baht/US$ in 6M/17. 10
THORESEN SHIPPING GROUP (TSG) TCE rate significantly improved and the utilization rate remained at high level Thoresen TCE Rate* vs. Cost Structure (per vessel day) Thoresen’s Fleet Utilization Rate Avg # of Owned Fleet Avg # of Chartered-In Owned Fleet U-Rate 100.0% 100.0% 100.0% 99.1% 98.0% 97.6% 35.00 100.0% 30.00 90.0% 7.9 8.2 25.00 8.4 6.1 4.9 4.7 80.0% 20.00 30 year lowest 15.00 70.0% point at 290 22.2 21.6 20.8 10.00 19.8 19.6 19.2 BDI 718 BDI 673 BDI 975 60.0% BSI 666 BSI 596 BSI 781 5.00 2015 2016 6M 2017 - 50.0% 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17 • TSG’s average TCE Rate was at US$ 8,614 per Revenue vs Cost Structure (per vessel day) day, outperformed market TC Avg BSI of US$ 8,602 per day. • TSG’s average TCE Rate improved 70% YoY from US$ 5,079 Owner's expenses SG&A Dry-docking expenses per day in 2Q/16 and increased 23% QoQ from US$ 7,015 per Finance costs, net Depreciation Thoresen TCE Rate day in 1Q/17. • TSG’s average TCE rate consisted of owned fleet TCE rate US$ 9,000 10,000 8,614 9,000 8,000 8,403 per day and gain from chartered-in vessels of US$ 211 7,015 8,000 7,000 6,511 per day 7,000 6,000 5,473 5,079 6,000 • 5,000 3,747 Owned fleet utilization rate remained at high level at 98%. 5,000 3,465 3,592 3,574 3,472 4,000 3,612 3,597 4,000 915 • 965 678 1,071 580 3,000 740 At ending June 2017, TSG owned 20 vessels with an average 3,000 567 541 573 564 528 508 2,000 658 624 633 592 630 620 2,000 size of 52,908 DWT and an average age of 11.93 years. With 1,000 1,468 1,492 1,533 1,435 1,000 1,403 1,404 latest vessel acquisition in July 2017, TSG owned 21 vessels 0 0 1Q/16 2Q/16 3Q/16 4Q/16 1Q/17 2Q/17 with an average size of 53,188 DWT and an average age of 11.82 years. * Thoresen TCE Rate = Owned Vessel TCE Rate + Chartered-In Rate 11 ** Cash cost = Owner’s Expenses + SG&A + Dry-docking Expenses
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