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Corporate Presentation
The 2nd Qtr 2012 Operating Performance
Opportunity Day 5 September 2012
1
2
Agenda
Company Overview
On going and Future Developments
Key Financial Highlights
Q&A Session
3
Company Overview
Vision To become the leading contractor of Thailand delivering projects in respect of standard
and safety for both natural gas pipeline, petrochemical industry and energy fields
along with its sustainable growth.
Mission 1. To enhance the company’s consistent growth with the good conduct of the corporate governance
practice for highly benefit of the company and its shareholders.
2. To recognize human dignity by treating all employees on fairly basis with disregard of race , class, complexion
or religion.
3. To emphasize human development through rendering knowledge gain, skill and expertise trainings as well as
required knowledge in concerned areas for the company’s sustainable growth.
4. To strive toward teamwork performance , passing on skill and knowledge including experience from one
generation through another.
5. To emphasize design engineering works, encourage learning participation and utilize new technology in
cooperation with both domestic and international alliances to develop Thai engineers’ capability to be identical
with the international ones.
6. To reward society and community.
4
2005 - 2008
• EPC Turnkey • Pipeline / Small & Medium Process Plant / Modular Fabrication • Civil work / infrastructure • Project Management Consulting (PMC)
Construction
2009 - 2012
• Greenfield / Brownfield Project Development Capability •Conceptual Design • Basic Engineering • Feasibility Study • Advisory Services
Project Development
• Engineering Capability
Commissioning / Testing
2012+
• Operating & Maintenance Services • Investment through our investment arms - TRC International Ltd. - TRC Investment Ltd.
Commercial Operation Date
Leading Turnkey Solution Provider Company
5
Key Corporate Milestone
• Established with experience group of engineers undertaking small pipeline projects
1998 2005
• Listed in MAI with Baht 1.70 IPO price • Successfully JV with CPP (China) for 2,100 MB pipeline project
2007
• EPC capability for Biodiesel Processing Plant
2008 • Project Development & Investment Division established
2009
• Successfully landed in Oman • Undertaking PTT Gas Separation Plant Project
2010 • Awarded by Gulf JP a EPC Pipeline Package of THB 2,016 MB + 21.09 Mil USD
2011 • Awarded for EPCC of Ethanol Project
Songkhla Transmission Pipeline Project (562 MB)
• Lump Sum Turnkey Bangchak Bio Diesel Plant Project (757 MB)
Nigeria Project
• Wang Noi-Kaeng Khoi Cross Country Gas Pipeline
• TRC is equipped capability of EPC and undertake Large Scale Project
• EPC for Flowline Project in Oman • Consortium with Siemens for OCS#1
Oman Project
Revamp OCS#1
• Ubon Boi-Ethanol Project of 2,134 MB • Group backlog reached 4,452 MB
• Acquired Sahakarn Wisavakorn Co., Ltd. as subsidiary
Our Core Business
6 Fabrication- Pressure vessel, piping,
Steel structure (ASME U&S Stamp)
Small to Medium Process and
Industrial Plant EPC Pipeline Engineering and Construction
Project Development and Investment
7
Key Success Factors
Competent and
experienced
professional
management team
& operation personnel
“Provide service excellence and maintain the highest level of customer satisfaction”
Strong risk
management
and solid
liquidity
management
to enables
financial flexibility
Continuously
growing
sustainable
revenue and
profit stream
while creating
loyal and
engaged customers
Establishing strong
strategic alliances
and focus on high
margin projects with high barriers to entry
8
TRC Group Structure
Paid-up Capital 336.59 MB
99.99% 100%
100%
60% 70%
TRC Engineering
(Sultanate of Oman)
Paid-up Capital OMR 250,000
Co., Ltd.
(Thailand)
(Thailand)
Paid-up Capital OMR 150,000
TRC International Ltd.
(Hong Kong)
Paid-up Capital HKD 10
TRC & Al-Ghalbi LLC
(Sultanate of Oman)
TRC Construction
Public Company Limited
Sahakarn Wisavakorn TRC Investment Ltd.
(Mauritius)
Paid-up Capital 200 MB Paid-up Capital USD 1
Our Quality, Health, Safety and Environmental Promises
9
Our Reputable Clients
10
11
Agenda
Company Overview
On going and Future Developments
Key Financial Highlights
Q&A Session
TRC Revenues Growth
12
• Core Businesses On-going
• Gulf SPP and IPP Package
• Ubon Bio Ethanol Project
• PTTAR-IRPC Multiproduct Pipeline
• Green ABS VI Project
• GUT Pipeline Project *
• Expansion in Oman
• PTTEP Oman
• EPCC and O&M in oil & gas sector and
petrochemical industry
• Investment Scheme
• Energy projects in neighboring countries • Natural resources project
EPC
* Note: New project acquired in Aug 2012
13
On-going Core Business: Gulf JP Pipeline Project
Gulf SPP and IPP Pipeline Package
Owner: Gulf JP Co., Ltd Group
TRC’s Work Value: THB 2,016 million +
USD 21.09 million
Scope of Work:
Gas Pipeline EPC Package for Natural Gas Transmission Pipeline Construction Work and Metering and Regulation Station for 7 SPP Projects and 1 IPP Project in Saraburi, Chachoengsao, Rayong and Prathumthani Province
% of Completion as at 30 Jun 12: 54%
14
On-going Core Business: Ethanol Processing Plant
Ubon Bio Ethanol Project
Owner : Ubon Bio Ethanol Co., Ltd.
SKW’s Work Value: THB 2,134 million
Scope of Work:
Plant Out Side Battery Limit (“OSBL”) EPCC Package for Ethanol Processing Plant with a capacity of 400,000 liter per day utilizing dry and fresh cassava as raw material
% of Completion as at 30 Jun 12: 73%
15
16
On-going Core Business: PTTAR-IRPC Multiproduct
PTTAR-IRPC Multiproduct Project
Owner: IRPC Public Company Limited
TRC’s Work Value: THB 723 million
Scope of Work:
Multiproduct pipeline installation between IRPC Tank to PTTAR Refinery
% of Completion as at 30 Jun 12: 61%
17
On-going Core Business: Green ABS VI Project
Green ABS VI Project
Owner : IRPC Public Company Limited
SKW’s Work Value: THB 280 million
Scope of Work:
Construction of Concrete Steel Buildings, Steel Structure and Infrastructure
Project location at inside IRPC plant, Rayong Province
% of Completion as at 30 Jun 12: 38%
18
GUT Gas Pipeline Project
Owner: Gulf JP UT Company Limited
TRC’s Work Value: THB 1,547 million
Scope of Work:
EPC of 28 inches diameter Natural Gas Pipeline length approximately 21 km. and two block valve stations and one metering station for GUT Power Plant (IPP)
Project located in Rojana Industrial
Park 3, Ayutthaya Province
Work Period: Approximately 23 months
New Acquired Project: GUT Gas Pipeline Project
19
Expansion in Oman: Petrogas Rima (Extension Contract)
Pipeline Project
Owner: Petrogas Rima LLC
(1-year extension contract
+ 1-year potential extension)
Construction Period: May 2012 – Apr 2013
Type of Contract: EPC Contract
Scope of Work:
Engineering, Procurement and Construction of production flow lines and water injection flow lines connecting the drilling wells together.
Up to date, TRC has achieved its services for connecting about 80 drilled wells which increasing the oil production of Rima Small Fields from about 2,200 bopd in 2009 to nearly 14,000 bopd today.
20
Expansion in Oman: PTTEP Oman
Pipeline Project
Owner : PTTEP Oman Company Limited
TRCE’s Work Value: Approximately
THB 125 million
Additional Work: THB 36 million to be completed within the end of 2012
Scope of Work:
Project location: Block 44 concession area of PTTEP in the northwest of Oman;
Shams-16 flowline and its related equipment & facilities;
Munhamir-1 and Munhamir-2 flowline and its related equipment & facilities;
Munhamir crude export pipeline
21
Expansion in Oman: EPCC and O&M in Oil & Gas and Petrochemical Sectors
EPCC and O&M in Oil & Gas and Petrochemical Sector
New opportunity in Oman to be explored and committed by TRC and its strategic partner
Scope of Work:
Engineering, Procurement, Construction Commissioning and Operating & Maintenance focusing on oil & gas sector and petrochemical industry
Target: To be awarded the project value THB 150 million within 2012 for the above scope of work
22
Investment Scheme: Focusing on Energy and Natural Resources in ASEAN Countries
Energy Projects in Neighboring Countries
Natural Resources Development Project
Objectives:
To explore and capture business opportunity focusing on energy sector and natural resources in ASEAN neighboring countries such as Myanmar, Cambodia and Lao;
To retain some fixed income portion of TRC group; and
To be ready for ASEAN Economic Community (AEC) in 2015
23
List of Potential Projects
Project Name
Approximate
Project Value
(MB)
Construction
Period
A. Natural Gas Pipeline
A.1 Provincial Gas Transmission Pipeline (as Subcontractor) 2,000 – 3,000 2013 - 2015
A.2 IPP* (TRC awarded GUT Project , 1,557 MB in Aug 2012.) Awarded 2013 - 2014
A.3 SPPs 500 2013 - 2014
A.4 Distribution Pipelines 500 2012 onwards
A.5 Construction Call Off Services n/a 2013 onwards
B. Processing Plant
B.1 Waste Heat Recovery 1,300 2013 - 2014
B.2 Waste to Energy 2,000 2013 - 2014
B.3 Ethanol Plant 1,700 2013 - 2014
B.4 CBG for NGV 70 2012
C. Two Projects in Sultanate Oman 700 2013 - 2016
Total Approximate
9,770
24
Agenda
Company Overview
On going and Future Developments
Key Financial Highlights
Q&A Session
1st Qtr 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr 2nd Qtr 6-Month
Services Income & Sales 490.25 515.16 403.85 471.69 58.24 19.73 49.86 52.93 1,002.20 1,059.51 2,061.71
Interest Income 1.59 1.04 1.06 1.26 0.00 0.00 0.00 0.00 2.35 2.29 4.64
Other Income 4.74 2.80 5.36 2.08 0.00 1.24 0.00 0.00 10.21 5.89 16.10
Total Revenues 496.58 519.00 410.27 475.03 58.24 20.97 49.86 52.93 1,014.76 1,067.69 2,082.45
Cost of Services & COGS -412.55 -438.80 -377.39 -436.30 -48.64 -20.15 -44.72 -55.23 -877.04 -950.24 -1,827.28
Gross Profit (Loss) 77.70 76.36 26.47 35.38 9.60 -0.42 5.14 -2.30 125.16 109.27 234.43
SG&A and Finance Cost -29.43 -31.38 -6.09 -6.07 -6.47 -6.83 -4.42 -6.66 -47.36 -50.53 -97.89
Profit before Tax 54.59 48.83 26.80 32.65 3.13 -6.01 0.71 -8.95 90.35 66.93 157.28
Tax -12.53 -10.88 0.00 -1.94 -0.09 0.09 0.00 0.00 -12.61 -12.74 -25.35
Net Profit (Loss) 42.07 37.94 26.80 30.71 3.05 -5.93 0.71 -8.95 77.74 54.19 131.93
Less: Minority Interest
(40% for TRCA, 30% for
TRCE) -1.43 5.05 3.62
Net Profit Attributable to
Equity Holders of the
Company
76.31 59.24 135.55
EPS (Baht/Share) 0.23 0.18 0.40
Gross Profit (Loss) 15.85% 14.82% 6.55% 7.50% 16.48% -2.12% 10.30% -4.34% 12.49% 10.31% 11.37%
Net Profit Margin 8.47% 7.31% 6.53% 6.47% 5.23% -28.26% 1.43% -16.91% 7.52% 5.55% 6.51%
Consolidated FS
(Unit: Million Baht)
(Oman) (Oman)
TRC Sahakarn TRC & Al-Ghabi TRC Engineering
The 1st and 2nd Qtr 2012 Performance of TRC Group
25
Sahakarn’s tax shield of 87 MB was completely utilized from 2011 to the 1st half of 2012.
1,814 1,724
1,567
2,262
254
1,014
3,500 – 4,000
532
1,068
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011 6-M 2011 6-M 2012 2012 (F)
1st Qtr 2nd Qtr
Total Revenue
Total Rev Growth 165%
26
(MB)
2,082
786
Services Income & Sales Break-Down
Pipeline Process & Plant Civil Other Services 27
6-M 2012
(2,062 MB)
Pipeline 58.5%
Process & Plant 40.5%
Civil 0.5% Others 0.5%
Year 2011
(2,228MB)
Year 2009
(1,695 MB)
Year 2010
(1,452 MB)
Others
1.0%
Civil
2.8%
127
-166
183
149
12
76
18
59
-200
-100
0
100
200
300
2008 2009 2010 2011 6-M 2011 6-M 2012
1st Qtr 2nd Qtr
Net Profit
Net Profit Growth 353%
28
30
135
(MB)
Gross Profit & Net Profit Margin
29
19.6%
16.4%
25.9%
14.6% 14.5%
11.4%
7.0%
-9.6%
12.0%
6.6%
3.8%
6.5%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2008 2009 2010 2011 6-M 2011 6-M 2012
Gross Margin Net Profit Margin
Low Net Profit Margin due to SKW’s loss
0.38
-0.50
0.55 0.45
0.09
0.40
2.17
1.53
2.05
2.39
1.93
2.66
-1.00
-0.50
-
0.50
1.00
1.50
2.00
2.50
3.00
2008 2009 2010 2011 6-M 2011 6-M 2012
Weighted Average EPS & Book Value per Share
EPS BVPS
EPS & Book Value
(Baht/Share)
30
Nearly to the whole of 2011
0.80 0.83
0.60
1.98 2.06
1.83
0.00
0.50
1.00
1.50
2.00
2.50
2008 2009 2010 2011 30 Jun 2011 30 Jun 2012
Debt to Equity Ratio
(Time(s))
0.84 0.94
Calculated from (Total Liabilities – Advances from Customers – Unearned Construction Revenue)/ Total Equity
31
0.95
32
Dividend Payout Summary
0.031
0.285
0.15
0.06
0.15
0.12
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2007 2008 2009 2010 2011
0.318
(Baht/Share)
Dividend/ Net Profit after Legal Reserve 92.56% 34.43% N/A 50.66% 83.73%
Stock Dividend
Cash Dividend
Dividend policy: 40% of net profit after legal reserve (Only TRC’s Performance)
Net Loss 46 MB
33
Paid-up Capital
150
329.99 330.67 333.56 336.59
(MB)
1.11
471.50
133.80
Registered Capital
General Mandate
Expired ESOP Warrants
336.59
Total exercised ESOP shares Sep 2010-Jun 2012 = 6.59 MB
Paid-up Capital
1,357 1,186
607
1,092
2,835
1,838
284 315
32
1,352
806
627
359
265
230
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2007 2008 2009 2010 2011 30 Jun 2012
GUT Project
Oman Subsidiaries
SKW
TRC
1,501 1,266
1,451
4,452
TRC Group Backlog
34 Note: 1. Oman subsidiaries consist of TRC & Al Ghalbi LLC and TRC Engineering LLC which TRC International Ltd.
invested 60% and 70%, respectively. 2. Backlog is shown the outstanding work value of total projects.
1,641
1,547
4,421
New GUT Project
Acquired in Aug 2012
(MB)
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
1. Gas Pipeline Construction Work for Gulf JP’s IPP
Project (The Project value 1,185 MB and USD 16.345
Million)
E, P, C Gulf JP Company Limited 1,693.24 1,044.74 Oct 11 Jun 13
2. PTTAR-IRPC Multiproduct Pipeline E, P, C IRPC Public Company Limited 722.50 284.30 Jul 11 Dec 12
3. - 8. Gas Pipeline Construction Work for
Gulf JP’s 7 Small Power Plant (SPP) Projects
(Total 6 contract, the project value 831 MB and USD
4.745 million)
E, P, C Gulf JP Company Limited 975.47 198.37
Oct 10 Sep 13
9. Schedule of Rate Period Contract for HDPE Natural
Gas Pipeline Distribution Project
E, P, C PTT Natural Gas Distribution
Company Limited 144.00 127.40 Nov 11 Oct 13
10. N/G pipeline to OTS&PRS E, P, C AMATA Natural Distribution
Company Limited 76.00 76.00 Jun 12 Dec 12
11. Dismantle and Construction structure steel and piping
on piperack from BST
E, P, C Bangkok Synthetics PCL. 56.00 56.00 Jul 12 Oct 12
12. Schedule of Rate Period Contract for HDPE Natural
Gas Pipeline Distribution
E, P, C AMATA Natural Gas Distribution
Company Limited 58.00 38.05 Nov 11 Oct 13
13. Additional Work E, P, C Bangkok Synthetics PCL. 4.80 4.80 Aug 12 Oct 12
14. PTTNGD-N/G gas Pipeline to Thai Abika E, P, C PTT Natural Gas Distribution
Company Limited 4.00 4.00 Feb 12 Sep 12
15. REP-Propylene Glycol (PG) Pipeline E, P, C Rayong Engineering Company
Limited 28.50 1.86 Dec 11 Jul12
16. I1 and PTT Piperack Modification Project E, P, C Glow SSP3 Company Limited 23.08 1.15 Nov 11 Jul 12
TRC’s Backlog as at 30 June 2012
35
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
17. TPP Piperack Extension (State#1) E, P, C - Bangkok Industrial Gas Company
Limited
- Thai Industrial Gases Public
Company Limited
- Vinythai Public Company Limited
15.71 0.79 Sep 11 Dec 12
18. Relocate pipe to GKP1 E, P, C
PTT Public Company Limited 3.60 0.72 Jun 12 Jul 12
Total 18 Projects 3,804.90 1,838.18
TRC’s Backlog as at 30 June 2012
36
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
GUT Gas Pipeline Project E, P, C
Gulf UT Company Limited 1,547.01 1,547.01 Aug 12 Jul 14
Total 1 Project 1,547.01 1,547.01
New Project Acquired in August 2012
SKW’s Backlog as at 30 June 2012
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
1. The Construction and Commissioning of 400,000 LPD
Cassava-Based Fuel Ethanol Plant Project
E, P, C Ubon Bio Ethanol Company Limited 2,134.10 560.63 Mar 11 Sep12
2. Civil works for Green ABS VI Project E, P, C Thai ABS Company Limited 280.00 173.71 Jan 12 Oct 12
3. Water Treatment Plant E, P, C Electricity Authority of Thailand 20.36 20.36 Sep 11 Oct 13
4.-10. 7 Civil Work Projects (Bride & Road Construction) E, P, C Department of Rural Roads
58.91 51.35 Completed in
Sep-Oct 2012
Total 10 Projects 2,493.37 806.05
37
TRC & Al-Ghalbi’s Backlog as at 30 June 2012
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
Construction of Flow Lines Rima Satellites Small Fields (The project value approximately OMR 1.80 million)
E,P,C Petrogas Rima LLC Sultanate of Oman
145.56 145.56 May 12 Apr 13
Total 1 Project 145.56 145.56
Project Name
Type
of
Works
Project Owner/
Client
Work Value
(MB)
Uncompleted
Work Value
(MB) Project Period
1. Shams-16 Munhamir-1&2 flow Line and Munhamir Crude Export Pipe Line Project (The project value approximately OMR 1.99 million)
E,P,C PTTEP Oman Company Limited 161.09 54.74 Aug 11 Dec 12
2. Well Casing Cathodics Protection (The project value approximately OMR 0.67 million)
P,C German Cathodics Protection GmBH
53.82 29.45 Apr 11 May 12
Total 2 Projects 214.91 84.19
TRC Engineering’s Backlog as at 30 June 2012
38
TRC Group
No. of
the Projects
Remaining
Work Value (MB)
TRC Construction Plc. 14 1,838
Sahakarn Wisavakorn Co., Ltd. 10 806
TRC & Al-Ghalbi LLC (Oman) 1 145
TRC Engineering (Oman) 2 85
Total Backlog as at 30 June 2012 27 2,874
Backlog Conclusion as at 30 Jun 2012
39
Add: New GUT Project 1 1,547
Total Backlog 28 4,421
40
Agenda
Company Overview
On going and Future Developments
Key Financial Highlights
Q&A Session
