Thoresen Thai Agencies Plc. 1Q FY2010 Analyst Presentation 23 February 2010
Agenda Age a 1Q FY 2010 Financial Highlights I. Business Groups & Segmental Earnings Breakdown II. III. Key Drivers Key Drivers III IV. Business Outlook Q & A V. 2 ‐ TTA 1Q FY2010 Earnings Results
1Q FY 2010 Financial Highlights 1Q FY 2010 Financial Highlights TTA reports 29 98% YoY decrease in revenues to Baht 4 675 55 million (increase 0 42% QoQ) TTA reports 29.98% YoY decrease in revenues to Baht 4,675.55 million (increase 0.42% QoQ). Group gross profits down by 23.03% YoY to Baht 1,176.92 million (decrease 22.79% QoQ). Group gross margin improved to 25.17% from 22.90% last year (versus 32.74% last quarter). p g g p y ( q ) Net losses of Baht 65.09 million versus net profits of Baht 897.13 million and Baht 464.80 million a year and a quarter ago, respectively. Losses per share of Baht 0.09 versus EPS of Baht 1.27 and Baht 0.66 a year ago and a quarter L h f B h 0 09 EPS f B h 1 27 d B h 0 66 d ago, respectively. Annualised return on average shareholders’ equity of ‐ 0.99%. Operating cash flow for 1Q FY 2010 of Baht 60.73 million versus Baht 2,032.08 million and Baht 1,171.11 million a year and a quarter ago, respectively. Net debt of Baht 1,541.65 million versus net cash of Baht 4,873.85 million at 30 September 2009. Net debt of Baht 1,541.65 million versus net cash of Baht 4,873.85 million at 30 September 2009. Cash level remains high at Baht 8,361.46 million. Secured financing facilities of Baht 25,736.88 million. 3 ‐ TTA 1Q FY2010 Earnings Results
Quarterly Group Net Profits & Net Losses Qua e y oup e o i e o e Dry Bulk Shipping Business Had a Net Loss of Baht 41 39 million Dry Bulk Shipping Business Had a Net Loss of Baht 41.39 million Source: TTA 4 ‐ TTA 1Q FY2010 Earnings Results
Income Statement Summary Demand for Transport and Energy Groups Core Assets and Services were Negatively Demand for Transport and Energy Groups’ Core Assets and Services were Negatively Impacted Dry Bulk Consolidated MMPLC Baconco UMS 1Q FY 2010 (Baht million) Shipping Shipping Revenues 4,675.55 2,301.90 1,102.46 706.48 416.79 Gross profit p 1,176.92 431.66 386.83 128.70 80.37 Operating profit ‐ 101.26 ‐ 179.09 129.44 90.71 10.76 SGA expenses 599.66 184.63 103.82 19.95 53.90 Finance costs/-income (1) 107.14 13.44 15.54 ‐ 0.24 12.17 Net profits/-losses ‐ 65.09 ‐ 26.32 65.99 79.80 1.96 Earnings/-Losses per share E i / L h (Baht) ‐ 0.09 N/A N/A N/A N/A Gross margin (%) 25.17% 18.75% 35.09% 18.22% 19.28% GP/SGA (xs) GP/SGA (xs) 196.26% % 233.80% % 372.61% % 645.16% % 149.11% % Note: (1) Finance costs include interest expenses, losses from oil hedging, commitment fees from loans, fees for foreign currency collar contracts offset with interest income and gains on convertible bonds cancellation Source: TTA 5 ‐ TTA 1Q FY2010 Earnings Results
Agenda Agenda 1Q FY 2010 Financial Highlights I. Business Groups & Segmental Earnings Breakdown II. III. Key Drivers III. Key Drivers IV. Business Outlook Q & A V. 6 ‐ TTA 1Q FY2010 Earnings Results
Business Groups p Transport Transport � 35 1 vessel ‐ owning subsidiaries � Fearnleys (Thailand) Ltd. � ISS Thoresen Agencies Ltd. � � PT Perusahaan Pelayaran Equinox h l E i � Thoresen (Indochina) S.A. � Thoresen Shipping FZE Infrastructure � Unique Mining Services PLC Energy � Mermaid Maritime PLC � EMC Gestion S.A.S./Baconco Co., Ltd. � Chidlom Marine Services & Supplies Ltd � Chidlom Marine Services & Supplies Ltd. � Merton Group (Cyprus) Ltd � Merton Group (Cyprus) Ltd. � GAC Thoresen Logistics Ltd. � Gulf Agency Company (Thailand) Ltd. Achieve growth diversification and balance across three core business groups Note 1 : As of 31 December 2009 7 ‐ TTA 1Q FY2010 Earnings Results 7
Group Segments Earnings Results oup eg e Ea i g e u More Balanced Contributions from Transport, Energy & Infrastructure Groups, but More Balanced Contributions from Transport, Energy & Infrastructure Groups, but Weaker Profitability from Two Core Businesses Baht million Transport Energy Infra ‐ Group (1) structure structure Revenues 1Q FY 2,392.39 1,102.46 1,173.28 4,668.13 51.25% 23.62% 25.13% 2010 Baht ‐ 65.09 million million 6,663.25 1Q FY 5,011.42 1,599.92 51.91 2009 75.21% 24.01% 0.78% N/A Accum. 1Q FY 649,265 26,016 N/A GRT* 2010 96.1% 3.9% (Tonnage) Baht millions 1Q FY 2010 1Q FY 2009 1Q FY 833,212 11,619 N/A N/A Transport 19.92 275.95 2009 1.4% 98.6% Net Net 1Q FY 1Q FY ‐ 31 09 31.09 125 61 125.61 75 20 75.20 169.72 169.72 Energy Energy 65.99 65 99 181 37 181.37 ‐ 18.32% 74.01% 44.31% profits/ ‐ 2010 Losses Infrastructure 73.46 ‐ 0.97 1Q FY 285.61 324.18 0.13 609.92 TTA (holding company & ‐ 224.46 440.78 2009 46.83% 53.15% 0.02% inter company eliminations) inter ‐ company eliminations) Note: * Gross Registered Tonnage (GRT) for TTA’s current owned fleet Total ‐ 65.09 897.13 (1) Group excludes operating results of holding companies 8 ‐ TTA 1Q FY2010 Earnings Results
Agenda Agenda 1Q FY 2010 Financial Highlights I. Business Groups & Segmental Earnings Breakdown II. III. Key Drivers III. Key Drivers IV. Business Outlook Q & A V. 9 ‐ TTA 1Q FY2010 Earnings Results
Key Drivers : Transport Group ey i e a po oup Transport Group : Dry Bulk Shipping Losses Transport Group : Dry Bulk Shipping Losses The dry bulk shipping business was exposed to lower TCE rates (due to its liner and spot emphasis), fewer vessel days, and higher owner expenses per day. The primary factors for our lower TCE rates were: � Increasing bunker prices that reduced our TCE rates for spot charters, liner and COA services; � � A fleet that was captive within less profitable Southeast Asia and Persian Gulf waters due to our liner trade; and � Lower demand for our fleet due to the age and size of our ships, as the market prefers larger and g p , p g younger vessels. Total vessel days capacity was 3,449, as we continue to sell & scrap our owned fleet and reduce our chartered ‐ in vessels. We sold M.V. Thor Jasmine, M.V. Thor Sailor, and M.V. Thor Commander during g this quarter. Since the beginning of this year, we have sold two more vessels: M.V. Thor Tribute and M.V. Thor Spirit. 10 ‐ TTA 1Q FY2010 Earnings Results
Key Drivers: Transport Group (cont’d) ey i e a po oup ( o ) We are in the process of closing down our liner service over the next few months. We are in the process of closing down our liner service over the next few months. � Our liner service has repeatedly underperformed on profitability when compared to our other service offerings; � Going forward for the next few years, outlook for liner freight rates is expected to be poorer given the competitive landscape of the container shipping industry; � During this quarter, we made a provision of Baht 27.71 million in severance benefits and other administrative costs for closing our liner services; d i i i f l i li i Strategy for Dry Bulk Shipping Operation to improve performance: � By reducing the number of vessel days open to spot charters; y g y p p ; � By streamlining some of our less profitable services including strategically not renewing some of our poorly rated COA contracts; � By closing down our liner trade; By closing down our liner trade; � By moving more capacity available to COA and time charter opportunities in different geographical areas; � � B By higher emphasis on costs control; hi h h i t t l � By timing fleet renewal options. 11 ‐ TTA 1Q FY2010 Earnings Results
Dry Bulk Shipping Operating Summary Dry Bulk Shipping Operating Summary Vessel Operating Expenses Breakdown Vessel Operating Expenses Breakdown % Breakdown 1Q FY 2010 1Q FY 2009 4Q FY 2009 1,864.53 4,136.34 2,041.30 Vessel Operating Expenses (Baht million) 18.72% 15.61% 8.87% Port & Cargo Exp Bunker Exp p 27.78% 26.70% 28.91% Time Charter Hire 19.44% 35.12% 29.34% Crew Exp 9.90% 6.02% 10.74% Repair /Maintenance Repair /Maintenance 19.84% 19.84% 10.18% 10.18% 18.87% 18.87% Insurance 3.01% 1.20% 2.47% Others 1.31% 5.17% 0.80% Source: TTA 12 ‐ TTA 1Q FY2010 Earnings Results
TTA Achieved a TC rate Performance of US$ 9,207 per Vessel Day in 1Q FY 2010 l i Y Source: TTA 13 ‐ TTA 1Q FY2010 Earnings Results
1Q FY 2010 Cargo Volume of 2.33 million Revenue Tonnes Tonnes 1Q FY 2010 1Q FY 2009 GENERAL MACHINERY & GENERAL CARGOES / MACHINERY & EQUIPMENT CARGOES / OTHERS EQUIPMENT Q 0.03% 0.03% CEMENT CEMENT OTHERS OTHERS 4.59% 0.43% FERTILIZER FERTILIZER 1.08% 1.84% 746,631.626 31.86% 23.64% STEEL PRODUCTS STEEL 25.33% PRODUCTS 20.94% COAL 7.22% AGRICULTURAL COAL AGRICULTURAL PRODUCTS 10.52% 10 52% PRODUCTS PRODUCTS 7.98% IRON ORE 15.58% 6.17% IRON ORE PAPER / CHEMICALS 5.44% WOODEN PAPER / WOODEN MINERALS / MINERALS / 2.17% PRODUCTS PRODUCTS CONCENTRATES CONCENTRATES 14.52% 7.50% 3.44% 9 72% 9.72% 3.16 million Revenue Tonnes 3.16 million Revenue Tonnes 2 33 million Revenue Tonnes 2.33 million Revenue Tonnes Source: TTA 14 ‐ TTA 1Q FY2010 Earnings Results
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