Diamond Building Products PCL Corporate Presentation: Year 2014 - PowerPoint PPT Presentation

Diamond Building Products PCL Corporate Presentation: Year 2014 Performance Opportunity Day On Thursday 19 March 2015 at 09.00 – 10.00 at SET 1101 Room (11 th floor.)

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 (“Bt.”) unless otherwise stated. 2

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

Company Overview 4

Business Overview Construction materials market share /2  Founded in 1985, DRT is one of the top 3 Others 10% manufacturers and distributors of roofing Kiternit products in Thailand . Group 6%  DRT’s core products includes tiles, boards & ceilings, siding boards, roof accessories, and some Siam non-roofing products. DRT 15% Cement Group 46%  DRT mainly distributes its products through agents (mom&pop shops) and modern trade nationwide. Mahaphant  DRT has continued to grow through product Group 23% improvement and development and gradual production expansion.  DRT is listed on the Stock Exchange of Thailand (SET) with a market capitalization of approximately Bt. 5,219 million /1 . Source: 1. www.set.or.th as of March 10, 2015. 2. Ministry of Commerce. Based on FY2013 sales value. 5

Milestones 1985 2001 2005 2012 Established under Changed the name to Listed on the Stock Launched its first the name Siam City Diamond Roofing Exchange of Thailand non-asbestos fibre Tiles and Pipes Co., Tiles Co., Ltd . (SET) cement tile Ltd . 1985 - 1999 2000 - 2009 2013 2002 2006 Myriad Materials Co.,  Established its firstly owned distribution center Launched its first Ltd became a major (DC), located in Khon Kean non-asbestos tile shareholder  Acquired an autoclaved aerated concrete (AAC) “ Jearanai Tile ” plant in Chiangmai  Launched a new production line of autoclaved aerated concrete (AAC) in Saraburi 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. Srivikorn and Foreign Pradipasen Families Thai Institutions & Management 4% Individuals 5% 63% Thai Institutions Free-float 32% 36% Totaling 64% Myriad Materials 60% Source: Company estimates as of March 12, 2015. 7

Production Base Total Capacity FY2014: 982,000 ton/yr Chiangmai Capacity: 50,000 ton/yr Khon Kean Product:  Autoclaved aerated Capacity : 40,000 ton/yr concrete (AAC) Product:  Tiles Distribution Center, Khon Kean Saraburi Capacity: 892,000 ton/yr Product:  Tiles  Board and ceiling  Siding board  Autoclaved aerated Suratthani concrete (AAC) Existing production facilities Future production facilities Existing distribution center (DC) Source: Company estimate as at March 10, 2015. 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, Gran Onda, Adamas, Roman tiles, Roof stripping and installation Autoclaved aerated concrete (AAC) Small corrugated tile, Jatulon Siding board Special products Siding and Synthetic wood Roof equipment, Foil, Roof paint, Ultra Truss, Re-roofing Granito, Ceramic roof, Metal sheet, Paint Note: 1. Percentage based on FY2014 revenues from sales and services. 10

Distribution Channels FY2013 14% Modern Trade Leading construction materials and home improvement specialty stores 14% Agent 64% 12% Agent (mom&pop ) (mom&pop ) 10% 60% 15% Export To 9 Destinations in Asia Region 11% 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 FY2014 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 Trailers Trucks Shipping 13

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 . 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

Prudent Financial Policy Stable growth with strong balance sheet 4,429 4,250 3,896 3,707 3,325 2,789 2,590 2,500 2,386 2,063 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total revenues (Bt.mil) /1 Low level of debt to equity allowing financial flexibility 0.62 0.53 0.39 0.29 0.23 0.18 0.13 0.07 0.05 0.03 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Net interest-bearing debt to equity Note: 1. Excludes non-recurring items and includes other income, gains on FX rate, and gains on sales of assets classified as hold for sale. 16

Financial Performance 18