Pacific acific Pipe Pipe PCL PCL Opportunity Day 8 March 2017 - PowerPoint PPT Presentation

Pacific acific Pipe Pipe PCL PCL Opportunity Day 8 March 2017 Opportunity Day Pacific Pipe 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. PAP 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 PAP 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. Opportunity Day 2 Pacific Pipe Public Company Limited

Agenda 1. Overview of PAP 2. Economic & Industry Overview 3. Company Performance Opportunity Day 3 Pacific Pipe Public Company Limited

Overview of PAP  Pacific Pipe Public Co.,Ltd was founded in 1972 by Lekapojpanich family, operating under the name of "Tang Mong Seng“ Factory and initially engaging in the production of toy cars.  On March 17, 2004, the company was converted into a listed firm officially known as Pacific Pipe Public Company Limited, engaging in the production and distribution of structural steel pipes and plumbing system steel pipes of many international standards. Opportunity Day 4 Pacific Pipe Public Company Limited

Product Capacities Type Round Pipe Square Pipe Rectangular Pipe Lip C Channel Min: 1/2* (DN 15 mm) Min: 12 x 12 mm Min: 38 x 19 mm Min: 60 x 30 x 10 mm Size Range Max: 16* (DN 400 mm) Max: 300 x 300 mm Max: 400 x 200 mm Max: 250 x 75 x 25 mm In the present, our company has the capability to manufacture black steel pipes and lip channel steel pipes in the total of 450,000 tons, and 50,000 tons of galvanized steel pipes per year. Opportunity Day 5 Pacific Pipe Public Company Limited

Construction industry Architecture Structure of roof Fence Structure Opportunity Day 6 Pacific Pipe Public Company Limited

Manufacture industry Furniture Roller conveyor Pallets Plaything Opportunity Day 7 Pacific Pipe Public Company Limited

Agro – industry Nursery Tractor Opportunity Day 8 Pacific Pipe Public Company Limited

System industrial Conduits Plumbing Fire Pump Opportunity Day 9 Pacific Pipe Public Company Limited

Agenda 1. Overview of PAP 2. Economic & Industry Overview 3. Company Performance Opportunity Day 10 Pacific Pipe Public Company Limited

World Steel Consumption Steel Demand, Finished Steel thousands tones y-o-y growth rate, % Region FY 2015 FY 2016 FY 2017 (F) FY 2017 (F) FY 2016 FY 2017 (F) European Union 166,029 160,309 162,554 10% -3.40% 1.40% Other Europe 33,991 35,852 37,179 2% 5.50% 3.70% C.I.S. 101,374 101,784 103,922 6% 0.40% 2.10% North America 110,945 110,002 113,192 7% -0.90% 2.90% Central and South America 43,899 39,119 40,723 3% -10.90% 4.10% Middle East 26,974 28,805 28,834 2% 6.80% 0.10% Africa 12,791 12,056 12,526 1% -5.70% 3.90% Asia 1,086,170 1,101,887 1,097,480 69% 1.40% -0.40% China 794,356 804,671 802,040 50% 1.30% -0.30% India 89,026 95,355 92,463 6% 7.10% -3.00% Japan 105,134 104,600 105,206 7% -0.50% 0.60% Pakistan 2,892 3,467 3,187 0% 19.90% -8.10% South Korea 69,670 68,555 69,338 4% -1.60% 1.10% Taiwan, China 21,370 21,364 21,436 1% 0.00% 0.30% Oceania 5,717 5,761 5,738 0% 0.80% -0.40% World Steel Demand 1,587,889 1,595,575 1,602,146 100% 0.50% 0.40% Source: World Steel Association Opportunity Day 11 Pacific Pipe Public Company Limited

Thailand Steel Consumption Million MT 20 18 17.80 17.70 17.70 Growth 16/15 17.30 16 16.80 16.70 Import +9.1% 14 14.50 14.00 13.70 12 Production +21.8% 10 10.70 Export +7.6% 8 Total +14.1% 6 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 (F) 2017 (F) Source: ISIT Opportunity Day 12 Pacific Pipe Public Company Limited

Raw Material and Energy Price Trend Steel Price Trend Scrap Billet Slab CNY HRC WTI Coal Coke Iron Ore 600 65 250 550 60 500 200 55 (Iron Ore & Coke) 450 USD per bbl 50 Price Index 400 USD / MT 150 350 45 300 40 250 100 200 35 150 30 50 100 25 50 - - 20 Possibility : Side Way Uptrend in 2017 Hot Roll Coil Price Trend THB HRC CNY HRC Inventory HRC Price HRC (F1) 22 600 800 400 HRC Market Price (USD/MT) 20 550 Actual Zone 700 350 Inventory x 10,000 MT 18 500 THB per kilogram 600 300 16 USD per tons 450 14 500 250 400 12 400 200 350 10 Forecast 300 300 150 8 Zone 250 6 200 100 200 4 100 50 150 2 0 0 - 100 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Source : PAP data center

Steel Price Trend Steel Price Trend MACD Analysis 2 years back data 120 days back data THB HRC Scrap Billet Slab CNY HRC MACD 15 Days MACD 35 Days 25.00 600 550 20.00 500 450 THB per kilogram 15.00 400 USD per tons 350 10.00 300 250 3.50 5.00 200 30 2.50 150 (20) 1.50 - 100 0.50 (70) (0.50) (120) (1.50) MACD - CNY HRC MACD - THB HRC Opportunity Day 14 Pacific Pipe Public Company Limited

RM and Energy Price Trend Raw Material and Energy Price Trend MACD Analysis 2 years back data 120 days back data WTI Coal Coke Iron Ore Iron Ore 15 Days Iron Ore 35 Days WTI 130.00 65.00 250.00 95.00 120.00 60.00 85.00 110.00 200.00 75.00 55.00 100.00 65.00 50.00 90.00 (Iron Ore & Coke) 55.00 150.00 USD per bbl Price Index 45.00 80.00 45.00 40.00 70.00 35.00 100.00 60.00 25.00 35.00 9 11 30.00 4 50.00 (1) 6 25.00 (6) 20.00 - 1 (11) (16) (4) MACD - Iron Ore MACD - WTI Opportunity Day 15 Pacific Pipe Public Company Limited

Import Pipe Per Month 100,000 Start Investigation Announced 90,000 Process for AD Pipe Temporary 80,000 from China & S.Korea Rate for AD Net Weight Tons x 1,000 Pipe from 70,000 China & 60,000 S.Korea 50,000 in Dec 40,000 30,000 20,000 10,000 - China Other Country Opportunity Day 16 Pacific Pipe Public Company Limited

Agenda 1. Overview of PAP 2. Economic & Industry Overview 3. Company Performance Opportunity Day 17 Pacific Pipe Public Company Limited

Company Performance EPS DPS Dividend Yield Listed: FY 2004 12.86% 1.20 14.00% Market cap: THB 5,082 million (1 Mar.17) 12.00% 1.00 Par: 1 THB/Share 0.99 7.92% 10.00% 0.80 0.78 8.00% 0.60 5.04% Shareholding 0.55 6.00% 3.60% Structure 0.40 0.33 0.40 4.00% Free float 0.25 0.21 0.20 0.00% 2.00% 0.16 24.38% - - 0.00% (0.12) (0.20) -2.00% 2012 2013 2014 2015 2016 Dividend payout ratio 126.92% 75.76% 76.19% 72.73% Dividend policy > 40% 0.00% 2012 2013 2014 2015 2016 Opportunity Day 18 Pacific Pipe Public Company Limited

Company Performance EB EBITD ITDA & Ne Net t pr prof ofit it Total Revenue EBITDA Net Profit Net profit (%) Millions Baht Metric Tons Millions Baht 326,226 7,600 350,000 301,482 900 811 10.00% 279,779 7,400 300,000 260,137 800 666 8.00% 7,200 700 250,000 600 7,000 6.00% 200,000 500 379 7.64% 6,800 7,471 400 4.00% 5.45% 150,000 6,600 2.58% 7,150 300 546 7,020 156 2.00% 100,000 407 200 6,400 6,615 100 181 50,000 0.00% 6,200 - 6,000 - (100) -0.65% -2.00% -43 FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 Production Utilization Production Utilization 100% 83% 80% 74% 73% 80% 67% 60% 2014 2015 40% Cap New Plant Cap 20% 450,000 mt 350,000 mt 0% FY2013 FY2014 FY2015 FY2016 FY2017 (F) Opportunity Day 19 Pacific Pipe Public Company Limited 19

Company Performance Statement of financial position Inventory Turnover (month) (Millions) Inventory (Millions) Inventory turnovers (Mth) THB : 3,318 THB : 3,708 Millions Baht Months 1,800 3.00 446 STL 2.80 2.79 1,600 866 Cash 2.50 441 580 606 1,400 2.34 234 CL A/R 249 556 51 Non-CL 1,200 2.00 1.99 478 1,000 Inventory 1,149 847 Share 1.50 800 Holder's 18 103 Equity CA 600 1.00 2,557 2,011 400 PPE + 1,456 1,404 0.50 Non CA 200 1,393 1,575 847 1,149 - - FY2013 FY2014 FY2015 FY2016 A/S A/S Li + E Li + E As at Dec 31,2015 As at Dec 31,2016 Opportunity Day 20 Pacific Pipe Public Company Limited