The First and All-rounded Thai EPC Contractor. May 2015

Transcription

1 The First and All-rounded Thai EPC Contractor May 2015

2 Key Corporate Milestones CAPITAL MOVEMENT 20 M 100 M 160M 320 M 480 M 480M 480 M 560 M 560M 560 M Established by ITD and Toyo Engineering First entry into international project constructing fertilizer plant and establishment of subsidiary in Vietnam. Won Ethane cracker and downstream polyethylene plants (LDPE & LLDPE) with value over 15 Billion baht. Initial public offering ("IPO") in the Stock Exchange of Thailand. Chiyoda Corporation acquired 7% shares. Established subsidiaries in Malaysia (TTML), Myanmar (TTMC), and USA (TTUS) TTCL Stock calculated in SET100 Index Formed Singapore holding to support Power plant businesses (TTPHD) International ISO recognition TTCL Stock calculated in MSCI Global Small Cap Index Changed Company name from Toyo-Thai Corporation PLC. to TTCL PLC. Established to be First Thai Integrated EPC Contractor. Started international projects Became a public company Initiated parallel investment strategy. Diversified to overseas market. Challenge for a regional EPC player 1

3 Parallel Investment Strategy TTCL Partner(s) EPC / O&M Contracts Dividend JVs (Project Owner) Dividend Clients TTCL plans to co-develop or co-invest in Power- & Energy-Related Projects through joint venture entities of which the JV partners could be the client or the technology license s owner. Besides nomination as exclusive EPC contractor and O&M Contracts from the investment, dividend payment can be expected over the project s lifetime. 2

4 High-Profile Clients 3

5 Our Business: Fully-integrated EPC Engineering Procurement Construction Concept Design Process Design Detail Engineering Equipment Sourcing Supplier Selection Onsite Inspection Construction Machine Installation Commissioning Value Creation Engineering Firm General Contractor Degree of Competition Broader services range and capability give TTCL chances to get mandate that its peers in the SET can not provide such as - EPC management service - Design service - One stop service for the project 4

6 Pyramid-like Engineers Demography TTCL Global Scale EPC Contractors TTCL has heavy bottom structure which is more cost effective compare to those of Global scale competitors. Senior Engineers Mid-level Engineers Junior Engineers Senior Engineers Mid-level Engineers Junior Engineers Global scale EPC contractors normally has heavy top structure which only fits for large project due to high engineer cost. EPC contractors from developed countries normally have large senior engineer members which is too costly for mid and small size projects. TTCL lower engineering cost structure gives chances for the company to penetrate developed markets and capture larger project size. Manpower Structure gives TTCL Engineering cost advantage 5

7 Sustainable Development Strategy Myanmar 2011 Vietnam 1997 Thailand 1985 USA 2012 Qatar Branch 2012 Malaysia 2011 Singapore 2013 Philippines Branch 2012 TTCL has setups subsidiaries in high potential markets to capture projects in such area for BOTH mid- and long-term strategies. TTCL believes sustainable long term growth is the key for its success 6

8 Transition to Mid-tier Regional Contractor Size Contract Size Players TTCL is currently in transition from small EPC contractor Large scale >USD500 mm to mid-tier EPC contractor. Size of each proposal has increased along with its reputation in EPC industry Customers that offer large contracts have stringent Mid-tier USD mm Mid-tier and larger EPC players selection criteria for selecting EPC contractor which include:- contractor reputation past performance Small EPC <USD200 mm Local players in each countries and larger EPC players engineering capability financial strength 7

9 Historical New Contracts Awarded Y2011 Y2012 Y2013 Y2014 YTD 2015 Number of Contract Total Value (USD mm) Number of Contract Total Value (USD mm) Number of Contract Total Value (USD mm) Number of Contract Total Value (USD mm) Number of Contract Total Value (USD mm) Foreign >USD200 mm USD100 mm - USD200 mm USD50 mm - USD100 mm <USD50 mm Sub Total Domestic >USD200 mm USD100 mm - USD200 mm USD50 mm - USD100 mm <USD50 mm Sub Total Total TTCL has successfully expanded overseas market and captured larger project sizes 8

10 Backlog Summary May 15, 2015 Backlog Information Backlog by industry Industry Projects Remaining Value ( mm) Power 5 9,960 PetroChem 6 14,480 Fertilizer Chemical 2 7,310 Utility 2 6, ,640 Backlog by location Location Projects Remaining Value ( mm) Domestic 9 10,790 Overseas 9 27, ,640 9

11 Proposal Summary May 15, 2015 Potential Proposal Potential Proposal by industry Industry Projects Project Value ( mm) PetroChem 7 44,200 Power 3 14,625 Others 2 3, ,075 Potential Proposal by location Location Projects Project Value ( mm) Domestic 3 16,575 27% Overseas 9 45, ,075 73% Domestic Overseas 10

12 Myanmar Power Shortage Electricity Generation & Transmission Landscape of Myanmar MW Long Term Demand & Supply Forecast Current deficit Project Site Source: Ministry of Electric Power, Myanmar Installed capacity unable to keep up with rapid surges in domestic electricity demand. Power deficit in electricity generation and grid capacity is aggravated by the export of the country s generated electricity to neighbouring countries, such as China and Thailand. To alleviate the electricity woes, Myanmar government has announced a USD20bn plan to raise generation capacity from approximately 3,000MW to 16,500MW by year Current energy mix in Myanmar is highly reliant on hydropower (67%), followed by gas (30%) and coal (4%). A key priority for the Government is to move towards a more balanced mix of energy with greater emphasis on natural gas and coal. Source: Business Monitor International 11

13 Myanmar Power Shortage (Cont d ) Comparison of Electrification Rates in Southeast Asia Source: Business Monitor International, Asian Development Bank Although electricity consumption in Myanmar has doubled during the last 10 years, in 2011, total electricity consumption was 6,312 GWh. With a population of about 60 million, Myanmar s per capita electricity consumption was only 100 kwh per year, which was the lowest among ASEAN 10 countries. The low national average per capita electricity consumption is due to the low electrification rate, low industrial development and lack of investment. 12

14 TTPHD Structure* -TTCL USD 40.0 M (58%) -TTP LP USD 12.5 M (18%) -PNP USD 8.5 M (12%) -8 Coins USD 8.5 M (12%) USD 69.5 M 100% USD 69.5 M TTPHD 100% 100% 100% 100% USD 49.5 M USD 4.0 M USD 2.1 M USD 5.0 M TTPSG TTSP TTNE TTCP 95% 100% 15% 49% TTPMC GNE Japan SSPC OBF Ahlone, 120MW CCGT Power Plant Equity USD 51 M Debt USD 119 M Kyushu, MW Solar Farm Equity USD M Debt USD M Angthong, 8MW Solar Farm Equity 250 M Debt 750 M Binh Phuoc, 100,000 cbm./year Ethanol Plant Equity USD 35 M Debt USD 65 M *As of May 15,

15 Thank You Disclaimer: This presentation and all its contents are strictly for information purposes only. They are not an offer, recommendation or advice to buy or sell any investment, including shares of companies mentioned within. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this presentation, TTCL and its employees cannot be held liable for any errors, inaccuracies and/or omissions, howsoever caused, or for any action taken based on views expressed or information in this presentation.