Management Roadshow Presentation NamyongTerminal Plc · Integrated Value Chains of Automotive Industry Play Bigger Economic Role for Thailand Extensive interconnection across the

Management Roadshow Presentation Namyong Terminal PlcManagement Roadshow PresentationMarch 2014

Namyong Terminal Plc.

Agenda

Section 1 Industry Overview

Section 2 Company OverviewSection 2 Company Overview

Section 3 Business Overview

Section 4 Financial Performance

Page 1

Automobile Export, the New Rising Star for Thailand’s Export

Thailand’s Export Value Year 1994 – 2013(U it THB billi )

Automobile export overshadowed other sectors and became no. 1 in year 2012

7 2.12

,851

.37

.60 6,11

3.34

6,70

7.99

7,08

2.49

6,91

0.51

CAGR =(Unit: THB billion)7.60

06.31

11.04

1,80

6.68

2,24

8.09

2,21

4.25

2,76

8.06

2,88

4.70

2,92

3.94

3,32

5.63

3,87

3.69

4,43

8.69

4,93

7.3 7

5,30

2 5,

5,19

4. CAGR = 9.44%

1,13

7

1,4

1,4 1 1

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Rank #10

Composition by sectors of Thailand’s export Automobile, parts andaccessories

Computers parts and

Rank #1Rank #3 Rank #1

Rank #1Rank #2

Computers, parts and accessories

Others

Key Event

In 1994, BOI revised automotive policy to support

exports &

In 1996, Commencement of Thailand car

exports

In 2000, Government’s policy to promote Thailand as “Automotive Hub

Toyota moved its factory of pick‐up from Japan to

Thailand & Nissan increased its

1998 2003 2013

Page 2

Source: Ministry of Commerce

exports & distribution of regional plants

exports as Automotive Hub of Asia”

increased its investment

Section 1 : Industry Overview

Integrated Value Chains of Automotive Industry Play Bigger Economic Role for ThailandRole for Thailand

Extensive interconnection across the industrials

Multiplier Effect: One plant

Extensive interconnection across the industrials

Multiplier Effect: One plant

“Honda invested > THB 20,000 mn for a new plant (1,600 Rai) in Prachin Buri, creating more than 2,500 jobs.”

“Ford in 2011 started construction on a THB 13 500 mn state‐of‐the art plant covering more Multiplier Effect: One plant establishment can boost up the capital investment, create several job employment in various industries

Automotive Sector’s Gross Foreign Di I d f 21 14%

Multiplier Effect: One plant establishment can boost up the capital investment, create several job employment in various industries

Automotive Sector’s Gross Foreign Di I d f 21 14%

Ford, in 2011, started construction on a THB 13,500 mn state‐of‐the art plant covering more than 460 Rai at its Rayong site.”

“Mitsubishi has started work on a THB 15,000 mn eco‐car manufacturing plant in Chonburi, the company’s largest‐ever investment in Thailand and its biggest facility outside Japan.”

Direct Investment accounted for 21.14% of total FDI approved by BOI in 2012Direct Investment accounted for 21.14% of total FDI approved by BOI in 2012

Key Automotive Industry Linkage

Employs > 500,000 people in the Automotive Industry

Supporting IndustriesMachinery, Mechanical Tooling & Equipment, Mold & Die, Etc.

C M kTier 1 Tier 2 & 3

Service IndustriesRo/Ro T i l

Car dealers

Upstream Industries

Car Makers Suppliers Suppliers Financial service Utilities Logistic

Health care Advertising & Media Etc.

18 companies > 2,000 companies

Terminal

Upstream IndustriesSteel, Plastic, Rubber, Electronics, Glass, Textile & Leather, Chemical/Oil, Etc.

Institutions & Associations of Entrepreneur

Educational Institutions & Technical Institutions Government

li & i i i

Page 3

Policy & Supporting OrganizationsSource: Thai Autoparts Manufacturers Association, Board of Investment


Ro/Ro Terminal – A Gateway for Car Exports

To export cars or other vehicles, exporters need to

Roll‐on/Roll‐off (Ro/Ro) means a rolling stock cargo which

p , puse Roll‐on/Roll‐off terminal as a gateway to their

destinations.

7 Types of Terminals: in accordance with types of

does not require cranes to be loaded/unloaded but is driven on/off the ship’s decks.

Roll‐on/Roll‐off

Container

1

2

A deep‐sea port and large berth width to facilitate large car carrier vessels

l d t t bil f t i

accordance with types of cargoes Key Characteristics of Ro/Ro Terminal:

3

Container

Fishing

Passenger

2

4

Terminal location is closed to automobile factories for the ease of transportation

Terminal is operated exclusively for auto vehicles as to avoid damage to cars

General Cargo

Bulk Cargo

Li id

6

5 Low pollution from petrochemical and heavy industries that can damage cars

Well‐conditioned and convenient road to the terminal

Page 4

Liquid 7


Ro/Ro Terminals are Only at Laem Chabang Port

Example of Well‐known Ports in Thailand A1A2in Thailand

A5A1

C1

B5B4 B3 B2

B1

A0A2A3A4

B

C

C0

D3 D2 D1D2

C1C2C3

Laem ChabangPort

A

Berth Width/

Ro/Ro Terminal

Container Terminal

Multi‐purpose Terminal

Bulk Cargo Terminal

A Laem Chabang PortE

Terminal Type Berth Width/Depth (Meter) Terminal Operator

A5Ro/Ro

and General Cargo Terminal

697/17 Namyong

gB Bangkok PortC Map Ta Phut PortD Port of SongkhlaE Port of Phuket

D A1 Passenger and Ro/Ro 365/14 NYK

C0Ro/Ro

and General Cargo Terminal

600/16 LRT (NYK and Namyong asshareholders)

Page 5 Section 1 : Industry Overview

Why Laem Chabang Port?

“Several car makers’ plants are clustered in the east of Thailand, in proximity area of Laem Chabang Port”

Eastern of Thailand

Car Makers Location of Plant(s)

Distance from Plants to

in proximity area of Laem Chabang Port

Car Makers Location of Plant(s) Laem ChabangPort

Mitsubishi Laem Chabang Industrial Estate (Chonburi)

6.5 km.

Ford,Mazda

Eastern Seaboard Industrial Estate(Rayong)

35.9 km.

Toyota Ban Pho (Chachoengsao) Gateway City Industrial Estate

(Chachoengsao)

73.9 km. 99.0 km.

(Chachoengsao) Phra Padaeng (Samut Prakarn) 117.0 km.

Nissan Bangna‐Trad Km.21 (Samut Prakarn) 88.3 km.

Isuzu Phra Padaeng (Samut Prakarn) 117.0 km.

H d R j I d i l E 145 0 kHonda Rojana Industrial Estate (Prachin Buri)

Rojana Industrial Estate (Ayutthaya)

145.0 km.

187.0 km.

Laem Chabang Port


Key Components in Exporting Cars Business

Car MakersCar Makers InfrastructureInfrastructure Supporting Car Storage AreaSupporting Car Storage Area

Ro/Ro TerminalRo/Ro Terminal

VesselsVessels

A5A1

B5 B4 B3 B2 B1

A0A2A3Supporting Area

Ro/Ro Terminal

A4

C0

D3 D2

D1D2

C1C2C3Highway No.331Bypass

No.36Motorway from BKK

Laem Chabang PortSukhumvit

Car makers’ plantsare in proximity area of Ro/Ro terminalM i f

Well‐conditioned and convenient road for car carriersH i l

Developed area for car preparation before being loaded

h i l

Deep sea port Close to car makers’

plants and i f

Large scale car‐carrier vessels

Specialized team of d b d

Laem Chabang PortRoad

More convenient for car makers if database can be linked to the system of Ro/Ro terminal

Having several routes to reach the terminal

to the terminal e.g.sticker attached, car cleaning

Close to the terminal Sufficient supporting

convenient for vessels to dock

Low pollution

stevedore on board


area for car storage

Agenda





Page 8

Group Holding Structure

Company Description Leungsuwan F il

Nam Yuen Yong Shipping Co., Ltd.(“Nam Yuen Yong”)

Seaborne transportation, Ship agent

Namyong Terminal Plc. (“Namyong”)

A5 Terminal operator, Laem Chabang PortS i id

Family

100%

Other Storage services provider: car storage area and warehousing

Sapphire RoRo (Thailand) Limited (“SRT”)

A pure holding company

L h b I i l R C0 T i l

Nam Yuen YongOther

shareholders

20% 20%27%

Public

33%

100%

Laemchabang International Ro‐Ro Terminal Limited (“LRT”)

C0 Terminal operator, Laem Chabang Port

SRT

20%

LRT80%

Page 9 Section 2 : Company Overview

Key Milestones

March 2002

Acquired total shares of Banpu Terminal Co., Ltd.; the terminal operator of A5, from Banpu Plc.

April 2010

Renewed the Car Terminal Facility and Service Agreement with 5 shipping lines

May 2002

Proposed a new business plan to the Port Authority of Thailand (“PAT”) for altering into Ro/Ro terminal operator

Service Agreement with 5 shipping lines for a period of 10 years (May 1, 2010 –April 30, 2020).

Nov 2013

d d l fRo/Ro terminal operator.

Signed the Car Terminal Facility and Service Agreement with 5 shipping lines for a period of 8 years (May 1, 2002 – April 30, 2010).

Increased paid‐up capital from THB 414.50 mn to THB 620.00 mnand listed in the Stock Exchange of Thailand

July 2004

October 2004 Renamed the company to be

“Namyong Terminal Co., Ltd.” June 2012C t d i t bli li it d Signed the amendment agreement

with the PAT to alter into Ro/Ro and general cargo terminal operator.

April 2012

Jointly invested with NYK Group in LaemchabangInternational Ro‐Ro Terminal Limited (“LRT”); the terminal operator of C0.

Converted into public company limited.

Page 10

Note: 5 shipping lines are Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha Ltd., Mitsui OSK Lines, Ltd., Wallenius Wilhelmsen Logistics AS and Toyofuji Shipping Co., Ltd.

terminal operator of C0.

Section 2 : Company Overview

Agenda





Page 11

Namyong Group Business Overview

Terminal Services Storage Services Others

Stevedore on boardh f

For exporting and importing Roll‐on/Roll‐off (Ro/Ro) and General Cargo (GC)

1. Car storage Supporting area for car Shifting service

Office space rental Equipment rental Etc.

Namyong

(Ro/Ro) and General Cargo (GC). Supporting area for car storage before being loaded to the terminal.

Proximity areas to A5 terminal.

Namyong

AA552. Warehouse

Covered storage Open yard

For exporting and importing Roll‐on/Roll‐off (Ro/Ro) and General Cargo (GC).

Nil (Cars to be loaded at C0 use the supporting area for car storage of Namyong).

Shifting service Equipment rental

LRT

CC00

Page 12 Section 3 : Business Overview

Terminal Services at A5

Terminal’s General InformationItems Details

R ll /R ll ff (R /R ) d G l C

Provide a full scope of Terminal services for car export & import as well as general cargo

Type Roll‐on/Roll‐off (Ro/Ro) and General Cargo (GC) Terminal

Total Area 248,000 sq.m.

Length 697 Meters

Location

Depth 17 Meters

No. of Berth 3 Berths

Max. vessel size to dock 80,000 DWT

BOI Privilege (for Phase3*) 8 years (1 March 2007 – 28 Feb 2015)g ( ) y

A5 Terminal

A5 Terminal is located in Zone A of LaemChabang Port Chonburi Province It is at theChabang Port Chonburi Province. It is at theentrance of the watercourse which isconvenient for large vessels to move in and outof the wharf.


Note: * Phase 3 includes berth 3 and car storage area zone 2A, 2B, 3A, 3B, 3Dand 11E (total approx. 281 rai)

Berth 1 + Berth 2 = 527 Meters

Terminal Services at A5 (Cont’d)

Terminal Services at A5 compose of:

h l f h f b h1. Berth Hire Service to shipping lines for the use of berth in docking their vessels at berth

2. Wharfage Service to shipping lines for the use of berth in moving cars on and off vessels

3. WharfHandling

Service to car makers for moving cars within the terminal

4. Storage Service to car makers for short‐term storing cars on terminal before exporting andcars on terminal before exporting and receiving imported cars/cargoes

247,000 sq.m.which can accommodate

> 15,000 Carsat the same time

Importing

Exporting and

Importing Process

Import Receiving Pre‐loading BerthExporting and Importing Procedures

ExportingP

Area Area Area Area

Page 14

Process

Checking Point and Scan Barcode

Section 3 : Business Overview

Terminal Services at A5 (Cont’d)

IT Program Developed & Used by A5 Terminal

Port Management System (PMS)

Prepares yard planning and ship schedule

Pure Car Carrier System (PCS)

Records and organizes data of exporting and importing cars

Beyond Ro/Ro Port (BRP)

Analyzes and interprets overall terminal’s operation and performance such as number of cars loaded through A5, Berth hours, etc.

“The Most Advanced IT Ro/Ro Terminal

In‐house business intelligenceRo/Ro Terminal

Management System in Asia” Wireless handheld in wide terminal area

Effective yard planning with minimal car accident

Zero errors


A5 ‐ Highest Market Share Terminal for Car Export

20%A5 the highest market

80 %A5Terminal has the highest market share of > 80% of total Thailand’s cars export.

Note: Using average market share between 2011 ‐ 2013

E t d & I t d C Th h A5 T i l

640 922 677,942 774,341

634 901

895,651 926,798

800,000

1,000,000

4.56%

6.97%5.71%CAGR = 13.33%

Exported & Imported Car Through A5 Terminal

From year 2003 – 2013, total car through A5 terminal has increased year

Units

234,069 325,581

423,307 524,013

640,922 ,

476,605

634,901

400,000

600,000

94.38%93.45% 94.50%

93 68%

95.44%93.92%

94.55%

93.03% 94.29%

9.43%

6.56%

5.62%

6.55%5.50%

6.32%

6.08%

through A5 terminal has increased year by year with CAGR of 13.33%

Number of cars through A5 has ,

‐

200,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

91.11%90.57%

93.44%

94.38% 93.68% 94.55%8.89% continually increased, except in year

2009 when there was a worldwide financial crisis and in year 2011 when severe flooding crisis occurred.

Export Import


*If includes the number of exported & imported cars through C0 Terminal, the growth rate is 13.71%.

Storage Services – Car Storage

Namyong has a supporting area for car storage before being loaded to the terminal,located in a close proximity to A5 Terminal

≈ 523,683 sq.m.≈ 523,683 sq.m. of car storage area which can

accommodate

> 32,457 Cars at the same time

Serve clients’ needs for having car storage area closed to the terminal

Note: Information as of 31 December 2013

Lists of car storage customers: storage area closed to the terminal.

More convenient and rapid car loading.Car storage area

Warehouse area

Terminal area


Storage Services ‐Warehouse

Namyong also provides warehousing service by having both covered storage (ready‐built warehouse) and open yard, which most of cargoes stocked are automotive parts.

Details of Rentable Warehousing Areas

Covered Storage: 94,826 sq.m.Capable to support cargo’s weight up to

4 tons/sq.m.

Open yard: 46,880 sq.m.

T t l h f ≈ 141 706 sq m

qExample lists of warehousing customers:

Total warehouse areas of ≈ 141,706 sq.m. Note: Information as of 31 December 2013


Key Success Factors

TRUSTWORTHINESS1 TRUSTWORTHINESS

SERVICE QUALITY & EFFICIENCY Namyong is trusted by global logistics companies

1

2

SUPERIOR LOCATION & COMPLETE FACILITIES

g g pand car makers

3

HIGH EXPERTISE & LONG EXPERIENCE4

Logistics Company PartnersCar Maker Partners


Terminal Services at C0

Terminal’s General InformationItems Details

Namyong holds 20% in LRT who operates C0 Terminalwith an option to purchase another 29%

Type Roll‐on/Roll‐off (Ro/Ro) and General Cargo (GC) Terminal

Total Area 315,400 sq.m.

Length 600 Meters

Current Terminal services mostly for general cargo i.e. Special Projects, steel, and others

Depth 16 Meters

No. of Berth 3 Berths

Max. vessel size to dock 80,000 DWT

BOI Privilege for terminal

Future Terminal services for Ro/Ro To support the continually growing of

automotive industry To accommodate an overflow from A5

BOI Privilege for terminalbusiness 8 years (15 August 2007 ‐ 14 August 2015)terminal for cars export

146,535 sq.m.for Ro/Ro which can accommodate

> 5,800 Carsat the same time

Ro/RoBerth 2: 250 Meters

Berth 1: 250 Meters

Berth 3:

100

Meters


Agenda





Page 21

Revenue and Cost

The revenue growth for the year 2012 resulted from accelerated car production to compensate for year 2011 and a high global cars’ demand. Cars production for export is continually increasing in 2013 as demand ramps up.

Contribution (%) for a period of 2013Revenue, Cost and SG&A (THB mn)

1 51%Revenue

769 41

63.23%24.29%

10.98%

1.51%

Terminal services (tariff)Terminal services (non‐tariff)Storage services

Other revenue

109.37

581.04

1,159.40

116.72

701.18

769.41

25.51%

24.17%21 22%

19.36%

9.74%Cost

PAT Charge

Terminal Operating

Land and equipment 851.90

471.67 584.46

SG&A

24.17%21.22%q p

rentalDepreciation

Others

Cost SG&ATotal Revenue

2011 2012 2013 52.32%

30.64%

56.32%

SG&A

Employee compensationDepreciation

Others

Page 22 Section 4 : Financial Performance

Note: Figures for year 2011 are company only, for year 2012, 2013 are from consolidated basis.

Profitability and Margin

Gross Profit Margin and Net Profit Margin (%)Gross Profit & Net Profit (THB mn)

Gross profit margin and net profit margin are improving as Namyong manages costs and expenses effectively.

376 22

565.39 596.63

44.37%49.17% 48.36%

376.22

207 76

325.34 379.87

Gross Profit

Net Profit 24.39%28.06% 30.33%

Revenue Net Profit

207.76

2011 2012 20132011 2012 2013

G P fi M i N P fi M i

LRT Performance 212.90

341.68

172 58

Revenue Net Profit Gross Profit Margin Net Profit Margin

Performance

Namyong acquired 20% of LRT in April 2012

127.02

‐24.27

61.85

172.58

2011 2012 2013


Namyong acquired 20% of LRT in April 2012

Note: Figures for year 2011 are company only, for year 2012 and 2013 are from consolidated basis.

Balance Sheet Composition

Liabilities and equity breakdown (THB mn)Asset breakdown (THB mn)ConsolidatedCompany

Only ConsolidatedCompany

Only 193 59-89.82

Trade and other payables

Long‐term loan

Accrued expenses

Other liabilities

Cash and cash equivalent

Trade and other receivables

Investment in Associate103.05 126 53

1,482.92 620.00

182.77 193.59

30.36

Paid‐up capital

Other SE

Project costs

Leasehold improvements,buildings and equipmentsOthers

1,453.11 451.40

433.05

381.71

-

524.83

536.20

105.90

116.00

136.30

126.53

3,028.31

290.00414.50 290.21 166.63 137.67 193.73 346.95

805.06 61.52

Key Financial Ratio

140.33 195.51 157.50

689.65 778.21

2011 2012 2013

397.23 563.86 290.00

2011 2012 2013

Key Financial RatioKey financial ratios 2011 2012 2013Liquidity ratioCollection Period (days) 28.77 24.67 24.70Payment Period (days) 44.79 28.29 33.96

Key financial ratios 2011 2012 2013Leverage ratiosTotal liabilities to total equity (times) 1.22 1.22 0.13Interest‐bearing debt to total equity (times) 0.52 0.83 0.00y ( y )

Cash Cycle (days) (16.01) (3.62) (9.26)Efficiency ratioReturn on assets (%) 14.32 17.60 12.08Return on fixed assets (%) 29.62 39.32 35.09

( )

g q y ( )Interest‐bearing debt to EBITDA 0.89 1.37 0.02


Return on equity (%) 27.79 39.07 16.42

Key Drivers of Revenue

Revenue Types Key DriversRevenue Types Key Drivers

1. Ro/Ro Terminal Related Business

1.1 Terminal Services A5 Terminal (Namyong) Number of cars through A5 Tariff is regulated by PATC0 Terminal (LRT) Number of cars through C0 Number of cars through C0 Tariff is regulated by PAT

1.2 Car Storage Services (Namyong) Number of cars through A5 & C0 Pricing is set by the company, upon negotiationPricing is set by the company, upon negotiation

2. Non ‐ Ro/Ro Terminal Business

2.1 Warehousing Services (Namyong) Gross areas and occupied areasP i i i t b th ti ti Pricing is set by the company, upon negotiation


Documents

Management Roadshow Presentation NamyongTerminal Plc · Integrated Value Chains of Automotive Industry Play Bigger Economic Role for Thailand Extensive interconnection across the