Global Presence Aesthetic Excellence Business Integrity - PowerPoint PPT Presentation

Global Presence • Aesthetic Excellence • Business Integrity OPPORTUNITY DAY | 11 MARCH 2019

THE BEGINNING OF THE NEW JOURNEY 2

Agenda • COMPANY OVERVIEW • PRODUCTS & SERVICES • FINANCIAL HIGHLIGHT • ACTIVITIES & OPPORTUNITIES • Q & A 3

Overview 4

TCM Corporation Structure Total: 15 subsidiaries 5

Proportion of TCMC business (Historical record 2016-2018) 2016 (3,872.07 MB) 2018 (9,546.56 MB) 2017 (7,633.13 MB) TCM TCM TCM TCM Flooring Automotive Flooring Automotive 15% TCM 15% 20% 19% Automotive TCM 31% Flooring 35% TCM TCM TCM Living Living Living 54% 61% 50% 6

TCM Global business – our offices UK HK Calhoun Macau Chiang mai UAE China Pathumthani India Bangkok Had Yai Singapore Samutrprakarn Ayutthaya Flooring business Living business Automotive business 7 7

Our Business 8

9

10

11

Financial Highlight 12

TCMC Consolidated Operating Performance (FY17 VS FY18 performance) YoY Performance 12,000 Diff 25.07% 9,546.56 10,000 7,633.14 8,000 Unit: MB 6,000 Diff 43.63% 4,000 Diff 2,859.46 44.55% Diff 1,990.84 17.76% 2,000 990.76 685.41 408.88 347.21 0 Sales Gross profit EBITDA Net profit FY2017 FY2018 % to sales 100% 100% 26.08% 29.95% 8.98% 10.38% 4.55% 4.28% 13

Business Performance Diff YoY Performance* 113.70% 3,500 3,327.05 3,000 2,500 2,000 Unit: MB Diff 139.24% 1,556.85 1,500 1,270.32 Diff 1,000 Diff 95.40% 113.56% 530.99 500 330.86 229.36 169.32 109.53 0 Sales Gross profit EBITDA Net profit FY2017 FY2018 % to sales 100% 100% 34.11% 38.18% 10.88% 9.94% 7.04% 7.03% * TCM Flooring performance excluded Corporate expenses & Interests 14

Business Performance YoY Performance Diff 0.54% 1,600 1,431.78 1,424.03 1,400 1,200 1,000 Unit: MB 800 Diff Diff 600 2.43% 1.69% Diff -0.29% 329.45 400 321.64 283.96 279.24 177.39 176.87 200 0 Sales Gross profit EBITDA Net profit FY2017 FY2018 % to sales 100% 100% 22.59% 23.01% 19.61% 19.83% 12.46% 12.35% 15

Business Performance GBP Diff YoY Performance* 4.23% 120 110.99 106.49 100 80 Unit: Million GBP 60 Diff 10.76% 40 29.22 Diff Diff 26.38 37.27% 44.31% 20 8.71 7.76 6.35 5.38 0 Sales Gross profit EBITDA Operating Income (Alstons&DMMH) FY2017 FY2018 % to sales 100% 100% 24.47% 26.32% 5.96% 7.85% 5.05% 6.99% * TCM Living performance excluded Amortization of intangible assets & Interests 16

TCMC Consolidated Operating Performance Statement of Financial Position Current Ratio (Times) Quick Ratio (Times) 2017 2018 2017 2018 10,000.00 9,455.70 1.01 1.52 0.50 0.72 9,000.00 3,421.93 2,698.06 8,000.00 7,000.00 D/E Ratio ROA 6,000.00 6,317.78 2017 2018 2017 2018 Unit: MB 6,033.17 5,000.00 2.34 1.76 4.32% 3.85% 9,015.84 4,000.00 3,000.00 ROE EPS (Baht) 2,000.00 2017 2018 2017 2018 1,000.00 11.95% 0.36 12.87% 0.42 0.00 2017 2018 Total Assets Total Liabilities Equity 17

TCM Flooring Performance by Quarter (Q1-Q4 2018) TCM Flooring QoQ Performance 1,200,000 160,000 140,000 1,000,000 120,000 800,000 100,000 Unit : ‘000 THB Unit : ‘000 THB 600,000 60.44% 80,000 66.81% 65.48% 400,000 71.72% 60,000 200,000 40,000 0 20,000 Q1/2018 Q2/2018 Q3/2018 Q4/2018 -200,000 - COGS Expenses Operating Income EBITDA 18

TCM Living Performance by Quarter (Q1-Q4 2018) TCM Living QoQ Performance 40 4 Millions Millions 35 4 30 3 25 3 Unit : GBP 72.66% 20 2 74.29% 74.15% 73.91% 15 2 10 1 5 1 0 Q1/2018 Q2/2018 Q3/2018 Q4/2018 COGS SD&A expense Operating Income EBITDA 19

Activities 20

TCM FLOORING: PRODUCTS Installation & Service Other Automotive Sector LVT, Flatweaves 3% 2% Needle Punch 13% Corporate Sector Carpet Tiles 12% Hospitality Sector Axminster 59% Broadloom 8% Handtufted & Passtufted 3% Private Label (Residential Sector) 21 21

TCM Flooring Sales Strategies 22

CUST STOMERS RS: : HOSPITALITY + BOUTIQUE & RESIDENTIAL * 23

ADDRESSABLE HOSPITALITY MARKET: Brintons Other Chinese 21% Mills 23% Other European Mills 4% Haima Royal Thai 4% 22% OW 4% Ulster Shanhua 7% 5% Couristan Crossley 5% 5% 24

Growth Initiatives 2019 25

PEOPLE Strategic New Hires to Increase Growth in US, • Singapore & EMEA Agents Signed in Mexico & Japan • 26

KEY SECTOR: CRUISE 27 New Builds LAUNCHED IN 2018 Harmony of the Seas 27

KEY SECTOR: AIRPORTS RECENT COMPLETIONS: HK Airport: 85,000 square meters Changi Airport Suvarnaphumi Airport 28

KEY SECTOR: PRIVATE JETS Market Size: $45 Million Royal Thai: $.5 Million 29

KEY SECTOR: RTPL/RESIDENTIAL Market Size: US: $140 Million EMEA: $50 Million ASIA: $20 Million Royal Thai: US: $1.5 Million EMEA: $1.6 Million ASIA: $0.2 Million 30

TCM Flooring Sales Strategies 31

CUST STOMERS RS: : CORPORATE, EDUCATION, HEALTHCARE 32

CARPET TILE MARKET Total Sales Carpet tiles (Domestic & Export) 14.00 Millions 12.00 3.96 10.00 3.91 3.56 Unit: USD 8.00 7.62 6.00 6.37 6.33 4.00 2.00 0.00 2016 2017 2018 Domestic 3,564,366 3,909,094 3,962,033 Export 6,373,629 6,326,199 7,620,672 Total 9,937,995 10,235,293 11,582,705 33

CARPET TILE MARKET 34

Growth Initiatives 2019 35

KEY MARKETS: INDIA, BRAZIL, NEW ZEALAND 36

CARPETS INTER: THE RECYLCING MANUFACTURER EC ECOS OSOF OFT T USES US ES ROUG OUGHL HLY Y 50X5 X550 ML. ML. RECYCLED PET PET BO BOTT TTLES ES FOR OR EVE EVERY Y SQUAR SQ ARE E METE METER R OF OF PROD ODUC UCT . 37

Consolidating Activities 38

Operation Restructuring Before Customers RT office Customers Customers overseas Suppliers for Export other products Carpets * * * UCM TCMC (Flatweave, Inter LVT, Wooden Domestic floor) Manufacture Manufacture Manufacture Distributor Distributor Distributor OEM Brand: CI, RT Brand: RT Customers Customers Customers *Total number of staff = 2,203 people (as of Dec’17) 39

Operation Restructuring After Customers RT office Customers Customers overseas Overseas partners CI brand only (ITC function) Export Contract * Suppliers for manufacturing Carpets Inter * TCMC other products + UCM Domestic (Flatweave, Distributor LVT, Wooden Manufacture Brand: RT floor) Distributor Brand: CI Customers Customers *Total number of staff = 1,739 people (as of Jan’19) 40

Drive Manufacturing Profitability • Centralised purchasing and raw material savings, experience and economy of scale purchases. • Centralised planning and optimised plant scheduling. • Wool Yarn Manufacturing plant upgrade. • Investment in new technology high- speed Axminster looms. • Global implementation of an integrated ERP IT system. • Consolidate manufacturing into one factory. 41

Factory production Axminster Hand tufted • Target yr2019: 1.65 M. sqm/year • Target yr2019: • No. of machine: 43, plus 2 high speed • Luxury grade 15,000 sqm/year looms • Commercial grade 50,000 sqm/year Pass tufted Carpet Tiles • Target yr2019: 35,000 sqm/year • Target yr2019: 1.05 million sqm/year • No. of machine: 14 machines • No. of machine: 14 machines Needle Punch • Target yr2019: • 4.08 million sqm/year • No. of machine: 4 machines 42

Activities 43

TCM Living restructuring Alstons DMMH Working groups Finance Manufacturing ERP Accounting & Procurement Reporting 44

A&J First Asia Flagship store 45

A&J First Asia Flagship store 46

A&J First Asia Flagship store 47

A&J First Asia Flagship store 48

A&J First Asia Flagship store 49

A&J First Asia Flagship store - Launch events 50

Q&A Contact : Address : TCM Corporation Plc. 238 Vipavadee Rangsit rd., Sanambin, Don Muang, Bangkok 10210 Tel : +66 (0) 2 533 6393 Investor Relations : E-mail : ir@tcm-corporation.com Tel : +66 (0) 2 656 0305 ext. 30 Download presentation file here 51

Global Presence • Aesthetic Excellence • Business Integrity 52