Company Visit September 26, 2013 1 Company Overview 1 Industry - PowerPoint PPT Presentation

Company Visit September 26, 2013 1

• Company Overview 1 • Industry Condition and Competition 2 • Financial Status 3 • Future Outlook 4 • Question & Answer 5 2

• Company Overview 1 3

“QTC Energy Public Co., Ltd., conducts the businesses of manufacturing and distributing custom made transformers to domestic and foreign customers and also provides various types of services ( Services) (Manufacturing and distributing)  (Transformers installs services) (Distribution (Small Power (Special  (Scheduled checks and Transformer) Transformer) Transformer) maintenance services)  Transformers repairs and maintenance services) 30 – 5000 KVA 5 – 30 MVA  Transformers rental services)  Earthing Transformer is Its function is to transform Its function is to lower high voltage from distribution voltage from power source used spot grand of  (Transformers testing system of Metropolitan distributed along high transformer. services)  Dry-Type Cast Resin is used Electricity Authority or voltage transmission line Provincial Electricity before transmitting electric for indoor and restriction  Transformers and electrical Authority to have lower current into distribution area system consultancy)  Pad mounted is used for voltage to meet with demands system such as wind farm of consumers such as ,Solar farm Group of customer are factories, dwellings, high hospital, golf course, wind buildings, etc. farm, export. 4

Business Operation High Voltage72 kV (Distribution Transformer) (Small Power Transformer) (Special Transformer) 5

Customer Group Customer group Public sector : Provincial Electricity Authority ( PEA ) , Metropolitan Electricity Authority ( MEA ) , Electricity Generating Authority of Thailand ( EGAT ) Private sector : Project subcontractor group and industrial factories Export sector : Australia, Malaysia, Italy, Singapore ,Spain , Mexico, South Africa ,etc. 6

We distribute our products under the name of QTC for both domestic and international market which includes Europe, Australia, Asia, Middle East, North America, Africa and ASEAN 7

World Class ISO26000 TQM (CSR) The Best Award for Good Corporate Governance (Eastern Area) MAI 2016 ISO17025 2012 BEST Awards Industry SMEs 2011 EUROPE AWARD Award. National OHSAS18001 Award 2010 Q-MARK CESI 2009 QTC Energy PCL The committee of KEMA 2008 the best factory 2007 award, 2002. 2003 2002 QTC Transformer Co., Ltd ISO14001 2001 ISO9001 Establish 2000 1996 Quality Transformer Co., Ltd

Vision & Mission Vision Mission • QTC is a world-class • To meet our customer’s manufacture providing performance challenges world –class quality in of their electrical system Electric Transformation with products and Equipment and Service services of international standard 9

Head office 2/2 Soi Krungthep Kritha 8 (5).,Krungthip Kritha Rd., Huamark., Bankapi, Bangkok 10240 Tel: (66) 0-2379-3089-92 Fax: (66) 0-2379-3097 Factory 149 M. 2 Tambol Mabyangporn,Ampur Pluakdaeng , Rayong 21140 10

2 • Industry Condition and Competition 11

Industry situation: Local Forecast of electricity generating and peak demand from 2010 - 2030 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2553 2555 2557 2559 2561 2563 2565 2567 2569 2571 2573 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Peak Demand Installed Capacity Source: The National Power Development (2010-2030) ( PDP 2010) ■ Peak demand increased from 2 3 ,249 MW in 2010 to 52 ,890 MW in 2020, accounting for the average growth of 4.42% per year. ■ Installed capacity increase from 3 1 ,349 MW in 2010 to 65 ,547 MW in 2030, accounting for the average growth of 3.96% per year. ■ Thus, the EGAT, the MEA, and the PEA will have an expansion of installed capacity and the distribution system in order to serve with the rising demand. 12

Industry Situation: Oversea Average growth rate of global electricity generating from 2007 - 2035 5.0 4.0 3.0 2.0 1.0 0.0 United States Canada Mexico OECD Europe Japan South Korea Australia/ New Zealand Total OECD Non-OECD Europe and Eurasia Russia Non-OECD Asia China I ndia Middle East Africa Central and South America Brazil Total Non-OECD Total World Source : International Energy Outlook 2010, U.S. Energy Information Administration ■ The EIA estimates that the growth of electricity generating in each continent across the world till 2035 will increase from 1 8 ,783 billion kW per hour in 2007 to 35,191 billion kW per hour in 2035, accounting for the average growth rate of 2.3% per year. ■ The average growth rate of the electricity generating of the countries outside the OECD is at 3.3% which is higher than the average growth rate of 1.1% of the countries within the OECD. ■ Asia, the region outside the OECD, is the region with the highest electricity generating growth rate 4.1% per year. Organization for Economic Co-operation and Development – OECD 13

Competitions  Transformer market can be divided into power transformer and distribution transformer. In the past, all transformer sales of the company are sales for distribution transformers, which in this distribution transformer market, there are approximately 6 manufactures. The company is regarded as medium manufacturer who can manufacture high quality transformer for state and private sectors that have received both domestic and international standard certifications. 14

3 • Financial Status 15

Revenue from sales and services Million Baht Million Baht 500 400 417.39 330.08 312.92 400 54.32 300 300 120.67 195.76 217.41 200 159.41 171.67 200 41.2 34.27 99.65 34.84 101.63 237.15 100 55.26 100 68.03 69.61 78.85 70.08 49.47 23.36 0 0 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 1 H 12 1 H 13 services Export secoctor Private sector Public sector The revenue from sales and The first half of 2013, the revenue services in the second quarter of 2013 from sales and services increased by increased by 7.70% from the same year of 5.48% from the same period of last year the first quarter. The revenue decreased by which is our expected business plan. 21.04% from the same period of last year due to the decrease of the sales volume of export 16

Gross Profit Million Baht Million Baht 100 30 85.99 90 160 40% 146.67 25.75% 25 34.91% 80 140 58.62 27.70% 70 26.74% 120 30% 20 18.38% 60 23.64% 100 50 15 16.88% 80 20% 40 58.94 10 60 48.18 30 37.81 33.64 40 10% 20 5 10 20 0 0 0 0% 1H 12 1H 13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin The first half of 2013, the gross The gross profit in the second quarter profit is 85.99 million baht increased by of 2013 increased by 10.37% from the 46.70% from the same period of last year. same year of the first quarter. The revenue increased by 43.22% from the same period of last year due to improved production process. 17

Net Profit Million Baht Million Baht 90.72 70% 25 100 25% 90 60% 20.30 21.59% 20 80 20% 50% 70 40% 15 60 15% 30% 9.76% 50 10 40 10% 20% 6.52% 21.51 5.79 5.60% 30 6.08% 10% 1.82% 5 2.68% 20 5% 11.34 0% 8.96 5.33 10 0 -10% 0 0% 1H 12 1H 13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Net Profit Net Profit Margin Net Profit Net Profit Margin The net profit in second quarter The first half of 2013, net profit is of 2013 increased by 26.56% from the same 20.30 million baht increased by year of first quarter due to product selling 205.25% from the same period of last of a big project such as government and year. government enterprises and private sector. 18

Capital Structure Total Asset Total Liabilities and Shareholders 786.97 800 500 471.87 737.77 460.92 715.06 715.33 421.21 700 655.35 384.68 400 367.57 370.20 600 326.06 306.66 294.12 300 500 243.20 400 200 300 100 200 100 0 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Total Liabilities Total Shareholders's Equity Most of company assets consisted of the land, Most of the debts were current liabilities of the building and equipment , inventory and account normal business operation which consisted of short- receivables at the end of second quarter,2013 there term loan from the bank, accounting for 47.18 and the are proportion follow ; 38.22%,26.58% and 29.45% of account payables, accounting for 23.15 of the total the total asset. debts as of the second quarter of 2013 Shareholders in second quarter of 2013 were 412.21 million baht due to pay dividend amount 62 million baht at of May, 2013.

Financial Ratio Return of Equity Return of Asset 25% 14% 12% 20% 19.68% 11.53% 10% 15% 8% 10% 6% 4% 5.81% 1.90% 2.69% 5% 2.92% 1.25% 2% 1.59% 1.53% 0.81% 0% 0% Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Current Ratio Debt to Equity Ratio 1.20 2.5 1.00 0.99 2.12 2 1.97 0.80 0.80 1.65 0.70 1.5 1.50 1.44 0.60 0.52 0.50 1 0.40 0.20 0.5 - 0 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13