Diamond Building Products PCL Corporate Presentation : 3Q/2016 - PowerPoint PPT Presentation

Diamond Building Products PCL Corporate Presentation : 3Q/2016 Performance Opportunity Day On Thursday 8 December 2016 at 10.10 – 11.10 at SET Meeting Room 603

Disclaimer  The information contained in 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 share in Diamond Building Products Public Company Limited ( “ DRT ” and shares in DRT, “ shares ” ) 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.  This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which DRT operates and general achievement of DRT business forecasts, which will cause the actual results, performance or achievements of DRT to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation.  This presentation has been prepared by the DRT. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the DRT or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.  This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.  This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. Note: All currency figures within this presentation are presented in Thai Baht ( “ THB ” ) unless otherwise stated. 2

A GENDA Company Overview  Financial Performance  Business Expansion  Appendix  3

Company Overview 4

Business Overview Construction materials market share /2 Others 9%  Founded in 1985, DRT is one of the top 3 Kiternit Group 5% manufacturers and distributors of roofing products in Thailand . DRT  DRT ’ s core products includes tiles, boards & Siam 15% Cement ceilings, siding boards, roof accessories, and some Group 45% non-roofing products.  DRT mainly distributes its products through agents Mahaphant (mom&pop shops) and modern trade nationwide. Group 24%  DRT has continued to grow through product improvement and development and gradual production expansion.  DRT is listed on the Stock Exchange of Thailand (SET) with a market capitalization of approximately THB 5,345 million /1 . Source: 1. www.set.or.th as of November 30, 2016. 2. Ministry of Commerce. Based on FY2015 sales value. 5

2014 Milestones Launched new products : 2012  Jatulon Launched its first  Decorative Floor non-asbestos fibre cement tile  Stair Plank 1985 2001 2005 Established under Changed the name to Listed on the Stock the name Siam City Diamond Roofing Exchange of Thailand Tiles and Pipes Co., Tiles Co., Ltd . (SET) Ltd . 1985 - 1999 2000 - 2009 2015 2013 2002 2006  Established its firstly owned distribution Myriad Materials Co., Launched its first Ltd became a major non-asbestos tile center (DC), located in Khon Kean shareholder “ Jearanai Tile ”  Acquired an autoclaved aerated concrete (AAC) plant in Chiangmai  Launched a new production line of autoclaved aerated concrete (AAC) in Saraburi Launched new products :  Grooved Siding Board  Ventilation Board  Fence 6

Strategic Shareholders Established in 2002 as a holding company to acquire DRT from the previous owner – Siam City Cement Plc.(SCCC)., Myriad Materials is a major shareholder of DRT, having Srivikorn Family and Pradipasen Family as major shareholders. As entrepreneurs of various businesses with long and successful records, the families bring to DRT business know-how ’ s and expertise in construction and property development markets. Foreign Treasury Shares (DRT) 9.5% Institutions Srivikorn and 0.3% Pradipasen Families Thai & Management Individuals 3.7% 64.6% Thai Institutions 35.1% Free-float 33.6% Totaling 66.4% Myriad Materials 53.2% Source: Company estimates as of August 30, 2016. 7

Production Base Total Capacity FY2016: 982,000 ton/yr Chiangmai Khon Kean Capacity: 50,000 ton/yr Capacity : 40,000 ton/yr Product: Product: Tiles  Autoclaved aerated concrete (AAC) Distribution Center, Khon Kean Saraburi Capacity: 892,000 ton/yr Cholburi Product:  Tiles  Board and ceiling  Siding board  Autoclaved aerated concrete (AAC) Existing production facilities Future production facilities Existing distribution center (DC) Source: Company estimate as at November 30, 2016. 8

Strategies Behind Our Success With the main focus in consumer’s needs and Product satisfaction, product variety and differentiation as variety & well as value for money are keys to retain and differentiation enhance market base. Over 6,000 nationwide Product delivery with 24 hours with Extensive Excellent agents and modern trade regular training on product handling distribution services specialties with growing and safety network exporting channel Strong Strong balance relationship Strong brand Prudent financial sheet yielding with awareness policies financial flexibility distributors 9

Product and Service Segmentation Sales of Products 92% Service income 8% Board and ceiling Services Tiles Board, Flat sheet, Gypsum, Diamond wall, CT, Adamas, Roman tiles, Roof stripping and installation Autoclaved aerated concrete (AAC) Small corrugated tile, Jatulon Siding board Special products Siding and Artificial wood Re-roofing Roof equipment, Foil, Roof paint, Ultra Truss, Note: 1. Percentage based on 3Q16 revenues from sales and services. 10

Distribution Channels 3Q15 13% Modern Trade 12% Leading construction materials and home improvement specialty stores Agent 16% 60% Agent (mom&pop ) (mom&pop ) 12% 58% 16% Export To 9 Destinations in Asia Region 13% Projects China Direct sales to leading residential developers:  Land & House Taiwan India  Pruksa Laos  Supalai Myanmar Philippines Vietnam  Sansiri  Asia Property Cambodia  Prinsiri Malaysia  Golden Residence Note: Percentage based on value of 3Q16 sales. 11

Logistic System and Trainings Service excellence with timely product delivery and training assistance  Integrated system linking production, inventory, purchase order, and logistics  Reliable product delivery within 24 hours  Full fleet of product delivery via trailers, trucks and overseas shipping  Free trainings for contractors ’ employees on product handling & safety precautious  Assistance on logistics & products storage Shipping Trailers Trucks 12

Diamond … A Trusted Brand Diamond Brand has been known as a high quality tile for nearly 30 years. Through its consistently seeking customer feedback and continuous product development, Diamond Brand is now one of the Thailand ’ s most trusted brands in tile /1 . BrandAge February 2016 ISO 9001 : 2015 เครื่องหมาย มอก. กระเบื้องคอนกรีต แบบลอน & เรียบ THAILAND TRUSTED MARK ตราสัญลักษณ์รับรองสินค้า ประเทศไทย Source: “ BrandAge ” Magazine dated February 2016. 13

Diamond … A Trusted Brand (“ Jearanai Tile ”) “ บ้านปลุกปรีดี ” ได้รับ “ รางวัลอาคารอนุรักษ์ศิลปสถาปัตยกรรมดีเด่น ” ประจ าปี 2558 ประเภทอาคาร เคหสถานและบ้านเรือนเอกชน เมื่อวันที่ 10 เมษายน 2558 จาก สมาคมสถาปนิกสยาม ในพระบรมราชูปถัมภ์ (The Association of Siamese Architects under Royal Patronage of His Majesty the King : ASA) Source: “ BrandAge ” Magazine dated January 2012. 14

Distributor … A Strategic Arm Over decades, DRT has marketed its products through traditional dealers (mom and pop shops). Its strong and aged relationship with these distributors nationwide is one of DRT ’ s competitive advantages and part of DRT ’ s continued success . 15

Financial Performance 16