FY2017 Opportunity Day Presentation The Stock Exchange of Thailand - PowerPoint PPT Presentation

FY2017 Opportunity Day Presentation The Stock Exchange of Thailand March 9, 2018

Thoresen Thai Agencies Public Company Limited DISCLAIMER This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. TTA has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and TTA does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. 2

Thoresen Thai Agencies Public Company Limited AGENDA COMPANY OVERVIEW FY2017 PERFORMANCE MARKET OUTLOOK APPENDICES 3

Thoresen Thai Agencies Public Company Limited THORESEN GROUP AT A GLANCE  Thoresen Group: established in 1904 : 100+ years of financial strength  TTA: established in 1983 and listed in SET in 1995  Headquartered in Bangkok, Thailand  Global presence spanning more than 10 countries in three continents Vision Stock Information (as of 28 February 2018) • Market SET, SET100 “TO BE THE MOST TRUSTED ASIAN • Symbol TTA:TB | TTA:BK INVESTMENT GROUP, CONSISTENTLY DELIVERING ENHANCED • Industry Services STAKEHOLDER EXPERIENCE ” • Sector Transportation & Logistics • First Trade Date 25 Sep 1995 • Paid-up Capital 1,822,464,006 Baht Shareholding Structure (as of 29 December 2017) • Par Value 1 Baht • Market Capitalization Baht 16,311 million or US$ 518 million • Free Float 72.17% • Foreign Limit 49% • Dividend Policy At least 25% of the consolidated net profits after taxes but excluding unrealized foreign exchange gains or losses, subject to the Company’s investment plans and other relevant factors (with additional conditions) 4

Thoresen Thai Agencies Public Company Limited TTA STRATEGIC BUSINESS PORTFOLIO Total Revenues EBITDA 2,067 MB 2,053 MB 13,360 MB 13,662 MB FY2016 FY2017 FY2016 FY2017 5

Thoresen Thai Agencies Public Company Limited SHIPPING  Strong track record with global presence  Leading Handymax and Supramax dry bulk operator  Outstanding performance from chartered in vessels.  Cost efficient dry bulk operator with focus on cost savings, efficiencies (without compromising safety),  21 and risk management Owned Vessels  11.98 Years (Average age)  Strong customer base  1.13 million DWT (Total Fleet)  53,742 DWT (Average Size) As of Dec 2017 Thoresen Fleet 2008 – 2017 2017 Cargoes Carried 2% 1% Mineral / Concentrate 5% 6% Coal Agricultural Products 34% 7% Steel Products Fertilizer 10% Cement Iron 11% Other General Cargoes 24% Wood Products 50,000/59,999 DWT 40,000/49,999 DWT 10,000/39,999 DWT 6

Thoresen Thai Agencies Public Company Limited OFFSHORE SERVICE Subsea Services (low relative to oil price) • Inspection, Repair & Maintenance (IRM)  Mermaid Maritime Public Company Limited is a Thai • Infrastructure Installation Support • Remotely Operated Vehicle (ROV) Support company listed on SGX (http://www.mermaid- • Cable & Flexible Pipe Laying maritime.com) 8 6+17  National Oil Company Strategy (high barrier to entry) 16 SATURATION AND *  Strong position in lower oil cost producing regions where SUBSEA VESSELS AIR DIVING SYSTEMS ROVs it is predominantly shallow water, hence less impact by fluctuations in oil prices  Continue to offer cable laying service, a diversification opportunity beyond Oil and Gas Drilling Services (relative to oil price)  M&A opportunities through exit of competitors and • Offshore Drilling and Work Over Service available supply of chartered-in vessels in weak market • Accommodation Rig Service  Streamline operation/ process for cost cutting 3 HIGH-SPEC ** JACK-UP RIGS * Subsea vessels comprises 7 owned vessels, of which 3 vessels in cold stack, and 1 chartered-in vessel ** Owned by Asia Offshore Drilling Ltd. in which MML has 33.76% ownership interest 7

Thoresen Thai Agencies Public Company Limited AGROCHEMICAL 100% The leading manufacturer and seller of fertilizer in Vietnam. MILES FROM THE OPEN SEA Leading market position in the Vietnam’s fertilizer market  PM Thoresen Asia Holdings Public Company Limited listed on SET (http://www.pmthoresenasia.com)  Leader NPK Supplier in Vietnam  Biggest private fertilizer producer in Vietnam by 3% capacity  Comprehensive fertilizer production process with over 95 NPK formulas and customized formulas to fulfill customers’ needs  Successful presence in the global market  Ability to speedily launch and develop new innovated Note: Total premium NPK market is estimated at 400,000 ton p.a. products 8

Thoresen Thai Agencies Public Company Limited AGENDA COMPANY OVERVIEW FY2017 PERFORMANCE MARKET OUTLOOK APPENDICES 9

Thoresen Thai Agencies Public Company Limited FY2017 HIGHLIGHTS  Acquired three second-hand vessels and sold two old vessels as per its continued thrust to renew fleet. Key Events/ Changes  Reclassify the business segments into Shipping, Offshore Service, Agrochemical, and Investment.  TTA, through its subsidiary, acquired Pizza Hut business in Thailand from Yum Restaurants International (Thailand) Co., Ltd. to enable the Group to diversify into fast-growing and stable Food & Beverage sector.  The upturn in shipping industry resulted in a turnaround from consolidated net losses to consolidated Performance net profits to TTA of Baht 588 million in FY17, growing 241%YoY.  Strong consolidated balance sheet with cash, cash equivalents, and current investments totaling Baht Financial Position 6.4 billion at year-end 2017.  Healthy capital structure reflected by low net interest bearing debt to equity at 0.07 times at year-end 2017. (1) Interest bearing debts net with cash and cash equivalents and current investments 10

Thoresen Thai Agencies Public Company Limited KEY BUSINESS DRIVERS  TCE rate is related to supply & demand reflecting in Baltic Exchange Dry Index Baltic Dry index (BDI). BDI has continually been on uptrend and picked up from its lowest level at 290 BDI 1,206 BDI 1,105 BDI 718 BDI 673 BDI 1,145 points in February 2016 to the highest level of 1,743 points in December 2017 with an average of 1,145 points for the year 2017, because of continued growth in the Chinese iron ore imports, as well as growth in global seaborne coal and minor bulk trade.  The growth on Chinese iron ore imports was supported by the robust growth in steel production 2013 2014 2015 2016 2017 and ongoing shift to the higher-quality imported iron ore.  Brent crude oil price slowly rose from the lowest level Brent Crude Oil (US$/Barrel) at US$ 28 per barrel last year and surged in 4Q/17 to 140 the highest level at US$ 67 per barrel. The ascent of 120 crude oil’s price in late 2017 was caused by a combination of a steady improvement in the global 100 demand and growing tension in the Middle East. Brent 80 crude oil was volatilely traded in the range between 60 US$ 45 - 67 per barrel with the average of US$ 55 per barrel during 2017. 40 20 0 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 11