3QFY11 Results Briefing SET Opportunity Day SET Opportunity Day 24 - PowerPoint PPT Presentation

Thoresen Thai Agencies Plc Thoresen Thai Agencies Plc. 3QFY11 Results Briefing SET Opportunity Day SET Opportunity Day 24 August 2011

Agenda � 3QFY11 highlights � 3QFY11 highlights � Financial review: Consolidated P&L � 3QFY11 revenue analysis 3QFY11 revenue analysis � Performance Recap by Business Group: � Group Transport � Group Infrastructure � Group Energy � Business outlook � Capital structure and investments � Q&A � Q&A Page 2 | TTA 3QFY11 Results Briefing

3QFY11 Highlights Some positive results from key strategic moves Net Profit � Reconfigured dry bulk shipping fleet generated improved time � Reconfigured dry bulk shipping fleet generated improved time 297 297 Bahtmillion Baht million charter rates 185 � TTA’s dry bulk shipping fleet consisted of 18 vessels with per ‐ vessel 2QFY11 averages of 37,107 DWT and 11.5 years old at the end of 3QFY11 averages of 37,107 DWT and 11.5 years old at the end of 3QFY11 3QFY10 3QFY11 ‐ 115 � Rising profit contributions from Petrolift Inc. , one of TTA’s diversified investments in the Philippines’ leading petroleum tankering company � Good progress was made by Unique Mining Services PCL (“ UMS ”) to reduce its 0 ‐ 5 mm Good progress was made by Unique Mining Services PCL ( UMS ) to reduce its 0 ‐ 5 mm coal inventory , thus some impact on its margins � Protests against all coal businesses in Samut Sakorn are expected to linger , but financial impacts should be limited in the short ‐ term p � Baconco , another diversified business in Vietnam, continued its strong performance with profits of Baht 68 million � Encouraging signs of recovery in Mermaid Maritime PCL’s (“Mermaid”) subsea engineering Encouraging signs of recovery in Mermaid Maritime PCLs ( Mermaid ) subsea engineering business with higher utilisation rates and improvement in day rates � Offshore drilling business outlook is upbeat with a successful USD 80 million fund raising, listing of AOD on Oslo Axess, and the partnership with a strong global offshore drilling g p p g g g company, Seadrill Page 3 | TTA 3QFY11 Results Briefing

Financial Review: C Consolidated P&L lid t d P&L

3QFY11 Consolidated P&L Baht million 3QFY10 2QFY11 3QFY11 %yoy %qoq � Total revenues fell 4% yoy, Revenues from services 3,430 2,747 2,736 ‐ 20% 0% primarily due to shipping Revenues from sales 1,112 1,384 1,640 47% 18% Total revenues Total revenues 4,542 4,542 4,131 4,131 4,376 4,376 ‐ 4% 4% 6% 6% � Sales revenues remained S l i d Cost of services 2,865 2,758 2,360 ‐ 18% ‐ 14% strong with 47% growth yoy Cost of sales 863 1,157 1,421 65% 23% � Total costs increased 1%, thus Total costs 3,728 3,915 3,781 1% ‐ 3% pressuring gross margins yoy pressuring gross margins yoy Gross profits Gross profits 813 813 216 216 595 595 ‐ 27% 27% 176% 176% %Gross margin 18% 5% 14% � But noticeable margin Other operating income 208 323 695 234% 115% improvement qoq to 14% Profits before expenses 1,021 538 1,290 26% 140% � Higher other operating income: Selling expenses 42 46 83 99% 79% g p g Administrative expenses 640 431 606 ‐ 5% 40% � Baht 203 million primarily from Management remuneration 29 35 39 36% 12% gains on sales of vessels Total expenses 711 513 728 2% 42% � Baht 285 million realised gains on Operating profits 311 26 562 81% 2080% USD/JPY currency swap / y p Share of profits in associates and joint venture Share of profits in associates and joint venture 38 38 40 40 48 48 28% 28% 23% 23% agreements EBIT 349 65 611 75% 835% � Higher administrative expenses: Financial costs ‐ 147 ‐ 168 ‐ 201 36% 19% � Baht 190 million impairment Income taxes ‐ 64 ‐ 106 ‐ 85 35% ‐ 19% charges (Dry bulk shipping: charges (Dry bulk shipping: Net profits before minority interests Net profits before minority interests 138 138 ‐ 209 ‐ 209 324 324 135% 135% 255% 255% Minority interests ‐ 47 ‐ 93 28 159% 130% Baht 113 million and Offshore drilling: Baht 77 million) Net profits 185 ‐ 115 297 60% 357% Services revenues from Shipping and Mermaid Sales revenues from Baconco and UMS Page 5 | TTA 3QFY11 Results Briefing

3QFY11 Consolidated P&L: Normalised Baht million 3QFY10 2QFY11 3QFY11 %yoy %qoq Revenues from services 3,430 2,747 2,736 ‐ 20% 0% Revenues from sales 1,112 1,384 1,640 47% 18% Total revenues Total revenues 4,542 4,542 4,131 4,131 4,376 4,376 ‐ 4% 4% 6% 6% Cost of services 2,865 2,758 2,360 ‐ 18% ‐ 14% Cost of sales 863 1,157 1,421 65% 23% Total costs 3,728 3,915 3,781 1% ‐ 3% Gross profits Gross profits 813 813 216 216 595 595 ‐ 27% 27% 176% 176% %Gross margin 18% 5% 14% � Normalised by putting extra Other operating income 12 193 206 1647% 7% ordinary items below EBIT Profits before expenses 825 408 801 ‐ 3% 96% Selling expenses 42 46 83 99% 79% � Administrative expenses � Administrative expenses Administrative expenses 459 431 416 ‐ 9% ‐ 4% continue to fall Management remuneration 29 35 39 36% 12% Total expenses 530 513 538 2% 5% Operating profits 296 ‐ 104 263 ‐ 11% 353% Share of profits in associates and joint venture Share of profits in associates and joint venture 38 38 40 40 48 48 28% 28% 23% 23% � “Operational” EBIT (before EBIT before extraordinary items 333 ‐ 65 312 ‐ 6% 583% extraordinary items) Extraordinary items recovering qoq Gains on sales of PP&E 196 99 203 Realised gain on cross currency swap g y p 31 285 Impairment charges ‐ 181 ‐ 190 Financial costs ‐ 147 ‐ 168 ‐ 201 36% 19% Income taxes ‐ 64 ‐ 106 ‐ 85 35% ‐ 19% Net profits before minority interests 138 ‐ 209 324 135% 255% Minority interests ‐ 47 ‐ 93 28 159% 130% Net profits 185 ‐ 115 297 60% 357% Page 6 | TTA 3QFY11 Results Briefing

3QFY11 R Revenue Analysis A l i

3QFY11 Revenue analysis Revenues from dry bulk shipping declining from smaller fleet and low rates f d b lk hi i d li i f ll fl d l FREIGHT REVENUES Baht million 3QFY10 2QFY11 3QFY11 %yoy %qoq Revenues from services 3,430 2,747 2,736 ‐ 20% 0% Freight revenues F i h 2,431 2 431 1 503 1,503 1 212 1,212 ‐ 50% 50% ‐ 19% 19% Offshore service income 881 1,144 1,454 65% 27% yoy Service and commission income 118 99 70 ‐ 40% ‐ 29% ‐ 50% 50% Revenues from sales 1,112 1,384 1,640 47% 18% Total revenues 4,542 4,131 4,376 ‐ 4% 6% 6,000 Revenues Rationale : Baht million 5,000 5 000 � BDI fell 58% yoy � Much smaller fleet size 4,000 1,212 35.6 23.4 average vessels 1,503 2,431 3Q 3QFY10 0 3Q 3QFY11 3,000 3 000 Baltic Dry Indices 1,454 5,000 2,000 1,144 4,000 3,307 881 1 000 1,000 ‐ 58% 58% 2,364 3,000 2,353 1,640 1,384 1,112 2,000 1,365 1,379 0 3QFY10 2QFY11 3QFY11 1,000 Sales revenues 0 Offshore service income Service and commission income 3Q FY10 4Q FY10 1Q FY11 2Q FY11 3Q FY11 Freight charges BDI BSI: Supramax index BHSI: Handysize index Page 8 | TTA 3QFY11 Results Briefing

3QFY11 Revenue analysis Encouraging signs of recovery from offshore services i i f f ff h i OFFSHORE SERVICES Baht million 3QFY10 2QFY11 3QFY11 %yoy %qoq Revenues from services 3,430 2,747 2,736 ‐ 20% 0% Freight revenues F i h 2,431 2 431 1 503 1,503 1 212 1,212 ‐ 50% 50% ‐ 19% 19% Offshore service income 881 1,144 1,454 65% 27% yoy Service and commission income 118 99 70 ‐ 40% ‐ 29% +65% +65% Revenues from sales 1,112 1,384 1,640 47% 18% Total revenues 4,542 4,131 4,376 ‐ 4% 6% 6,000 Revenues SubseaGroup Baht million Utilizationrate % Utilization rate % 5,000 5 000 100 90 4,000 Rationale : 1,212 80 1,503 2,431 � 75% utilisation rate of 75% utilisation rate of 3 000 3,000 70 75.3 subsea group’s assets 1,454 60 2,000 1,144 � 24% increase in DSV’s 56.6 881 50 54.1 average day rates yoy average day rates yoy 1,000 1 000 40 1,640 1,384 1,112 30 0 20 3QFY10 2QFY11 3QFY11 10 10 Sales revenues Offshore service income 0 Service and commission income Freight charges 3QFY10 2QFY11 3QFY11 Page 9 | TTA 3QFY11 Results Briefing

3QFY11 Revenue analysis Other diversified businesses contributing strong sales h di ifi d b i ib i l SALES REVENUES Baht million 3QFY10 2QFY11 3QFY11 %yoy %qoq Revenues from services 3,430 2,747 2,736 ‐ 20% 0% Freight revenues F i h 2 431 2,431 1 503 1,503 1,212 1 212 ‐ 50% 50% ‐ 19% 19% Offshore service income 881 1,144 1,454 65% 27% yoy Service and commission income 118 99 70 ‐ 40% ‐ 29% +47% +47% Revenues from sales 1,112 1,384 1,640 47% 18% Total revenues 4,542 4,131 4,376 ‐ 4% 6% 6,000 Revenues Sales revenues Baht million Baht million 5 000 5,000 1 800 1,800 1,600 901 4,000 1,212 1,400 Rationale : 1,503 2,431 669 1 200 1,200 3 000 3,000 � Baconco’s fertiliser sales 1,000 580 1,454 up 39% yoy as wholesalers 2,000 1,144 800 881 stocked up on supplies due 729 600 708 1 000 1,000 to high agricultural prices 1,640 1,384 400 526 1,112 � UMS’ coal sales up 55% yoy 0 200 3QFY10 2QFY11 3QFY11 from efforts to bring down 0 Sales revenues 0 ‐ 5 mm coal inventory 3QFY10 2QFY11 3QFY11 Offshore service income Service and commission income Freight charges Baconco UMS Others Page 10 | TTA 3QFY11 Results Briefing