Diamond Building Products PCL Corporate Presentation : Q1/2017 - PowerPoint PPT Presentation

Diamond Building Products PCL Corporate Presentation : Q1/2017 Performance Opportunity Day On Wednesday 8 June 2017 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 ’ s core products includes tiles, boards & Siam DRT 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 6,183 million /1 . Source: 1. www.set.or.th as of June 1, 2017. 2. Ministry of Commerce. Based on FY2015 sales value. 5

Milestones 2016 2014 2012 Launched new Launched its first products : non-asbestos  Jatulon fibre cement tile  Decorative Floor 2005 1985  Stair Plank Listed on the Established Stock Exchange under the name of Thailand Siam City Tiles Launched new products : RLC (SET) and Pipes Co.,  Diamond Lintel Ltd .  Diamond Kitchen Counter  Diamond Door Frame 1985 - 1999 2000 - 2009 2001 Changed the 2015 2006 name to 2013 Launched its first Diamond  Established its firstly owned distribution non-asbestos tile Roofing Tiles center (DC), located in Khon Kean Jearanai Tile – Co., Ltd .  Acquired an autoclaved aerated concrete • Thai Modern (AAC) plant in Chiangmai 2002  Launched a new production line of Myriad Materials Co., Ltd became a autoclaved aerated concrete (AAC) in major Saraburi shareholder Launched new Jearanai Tile : Launched new products :  Thai Classic  Grooved Siding Board  Elegant  Ventilation Board  Thai Lanna  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. Treasury Shares Foreign Thai (DRT) 9.5% Individuals Institutions Srivikorn and 22.8% Pradipasen Families 0.4% & Management 3.7% Thai Institutions 76.8% Free-float 33.6% Totaling 66.4% Myriad Materials 53.2% Source: Company estimates as of March 8, 2017. 7

Production Base Total Capacity FY2017: 982,000 ton/yr Chiangmai Khon Kean Capacity: 50,000 ton/yr Capacity : 50,000 ton/yr Product: Product: Tiles  Autoclaved aerated concrete (AAC) Distribution Center, Khon Kean Saraburi Capacity: 882,000 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 May 29, 2017. 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% Services Tiles Board and ceiling Roof stripping and installation CT, Board, Flat sheet, Gypsum, Diamond wall, Adamas, Autoclaved aerated concrete (AAC) Roman tiles, Small corrugated tile, Jatulon Re-roofing Siding board New RLC :  Diamond Lintel Siding and Artificial wood  Diamond Kitchen Counter  Diamond Door Frame Special products Roof equipment, Foil, Roof paint, Diamond Truss, Note: 1. Percentage based on 1Q17 revenues from sales and services. 10

Distribution Channels 1Q16 14% Modern Trade 12% Leading construction materials and home improvement specialty stores Agent 19% 58% Agent (mom&pop ) (mom&pop ) 11% 57% 18% 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 1Q17 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 . เครื่องหมาย มอก. กระเบื้องคอนกรีต แบบลอน & เรียบ BrandAge February 2017 ISO 9001 : 2015 อันดับ กระเบื้องมุงหลังคา ที่น่าเชื่อถือที่สุด อันดับ % % แบรนด์ 2017 2016 2017 2016 +/- 2 2 ตราเพชร 17.25 14.56 2.69 THAILAND TRUSTED MARK อันดับ ไม้และวัสดุทดแทนไม้ ที่น่าเชื่อถือที่สุด ตราสัญลักษณ์รับรองสินค้า อันดับ % % ประเทศไทย แบรนด์ 2017 2016 2017 2016 +/- 4 4 ตราเพชร 7.69 6.31 1.38 13 Source: “ BrandAge ” Magazine dated February 2016.