Thai Tap Water Supply Public Company Limited To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses Nomura Clean and Green Day 17-18 January, 2012 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 1
Contents TTW Who are we? TTW Current Status TTW Future Growth 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 2
TTW Who are we? Business Unit 1). Thai Tap Water Supply Plc. (TTW), produces and distributes tap water; and treats wasted water, Thailand's largest private tap water producer. 2). Pathum Thani Water Co., Ltd. (PTW), produces and distributes tap water, a subsidiary held by TTW 98% of its stake. 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 3
TTW Who are we? Water Management Projects 3 1 2 1) West Bangkok Project operated by TTW. 2) North Bangkok Project operated by PTW. 3) Industrial Estate Project operated by TTW. 1 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 4
TTW Who are we? TTW Business Group 1) West Bangkok Project : 30 Years (Jul. 2004-Jul. 2034) BOO Contract. Maximum production capacity of 440,000 cu.m./day to produce and distribute tap water in West Bangkok Area. The only customer is PWA regarded as the state enterprise. Annually adjusted water tariff by December CPI. All assets belong to TTW after the contract ends. Minimum off-take guarantee from PWA and could increase every year until 354,000 cu.m./day. 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 5
TTW Who are we? TTW Business Group 2) North Bangkok Project : 25 Years (Oct. 1998-Oct. 2023) BOT Contract. Maximum production capacity of 388,000 cu.m./day to produce and distribute tap water in North Bangkok Area. The only customer is PWA regarded as the state enterprise. Annually adjusted water tariff by July CPI. All assets must be transferred to PWA after the contract ends. Minimum off-take guarantee from PWA. 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 6
TTW Who are we? TTW Business Group 3) Industrial Estate Project : 30 Years (Aug. 2009-Aug. 2039) The operating right for water management Maximum production capacity of 48,000 and 18,000 cu.m./day for tap water and waste water management within Industrial Park. The customers are many manufactures coming from several industries like machinery & parts, food & beverage, electronics appliance ect. Water tariff adjustment approved by IEAT. 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 7
Contents TTW Who are we? TTW Current Status TTW Future Growth 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 8
TTW Current Status Mil.cu.m. 300 Tap Water Sale Volume 250 200 150 100 50 0 921 1,147 698 491 300 133 (+1%) (+9%) (+7%) 191 (+9%) 207 223 226 167 133 (+14%) (+26%) 1,393 1,643 (+2%) 246 250 2004 2005 2006 2007 2008 2009 2010 2011 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 9
TTW Current Status Financial Performance Revenue from Tap Water Net Profit EBITDA GPM NPM EBITDA Margin Mil.Bt 5,000 4,000 3,000 2,000 1,000 3,596 2,680 1,358 3,994 3,054 1,594 4,310 3,341 2,063 3,342 2,634 1,611 100% 80% 60% 40% 20% 74% 76% 76% 76% 67% 71% 70% 71% 47% 47% 37% 39% 0 As of 3Q2011 2008 2009 2010 9M2011 0% 2008 2009 2010 9M2011 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 10
TTW Current Status Leverage Information Debenture (Mil.Bt) Long Term Loan (Mil.Bt) Debt to Equity EBITDA to Interest Net Debt to EBITDA Times 8.00 7.60 4,253 7,000 6.00 4.00 4.69 2.96 5.63 2.52 2.39 2.00 As of 3Q2011 0.00 1.15 1.42 1.27 2008 2009 2010 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 11
TTW Current Status Historical Dividend Payment & Payout Ratio Earning Dividend Per Share 0.60 0.52 0.50 0.40 0.40 0.34 0.35 0.30 0.28 0.26 0.20 0.20 0.10 59% 70% 67% 0.15 0.00 2008 2009 2010 1H2011 58% 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 12
Contents TTW Who are we? TTW Current Status TTW Future Growth 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 13
TTW Future Growth Existing Business Tap water business in existing service areas. Tap water and waste water business in other industrial parks. Future Business Renewable Energy such as solar farm, hydropower and wind farm business. Waste water business in Bangkok. Solid waste management. 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 14
Appendix To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 15
Appendix Water Extraction Tap Water Production Process Water Treatment Tha Chin River Chao Phraya River West Bangkok Project Capacity : 440,000 cu.m./day North Bangkok Project Capacity : 388,000 cu.m./day Off-take Contract MOQ : 318,000 cu.m./day Off-take Contract MOQ : 330,000 cu.m./day Provincial Waterworks Authority ( PWA ) End Users 26/01/55 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 16
Appendix TTW Sale Volume & Tariff Rate Mil.Cu.m. 150 120 90 60 30 0 Sale Volume Water Tariff Water Tariff (Above MOQ) 22.75 23.55 24.46 25.11 20.26 21.48 17.44 18.61 10.75 11.02 120 120 67 84 93 108 109 44 2004 2005 2006 2007 2008 2009 2010 2011 Bt/Cu.m. 30.00 25.00 20.00 15.00 10.00 5.00 0.00 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 17
Appendix PTW Sale Volume & Tariff Rate Mil.Cu.m. 150 Sale Volume Water Tariff Bt/Cu.m. 14.00 120 9.12 9.40 9.90 10.34 10.52 11.49 10.99 11.37 12.00 10.00 90 8.00 60 30 89 100 107 115 115 117 125 130 6.00 4.00 2.00 0 2004 2005 2006 2007 2008 2009 2010 2011 0.00 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 18
Appendix Total Cost Structure 100% 80% 60% 40% 20% Depreciation Electricity Chemical Land lease Others 10% 12% 14% 10% 11% 9% 8% 16% 3% 9% 3% 9% 2% 8% 28% 7% 26% 16% 8% 40% 9% 3% 9% 26% 30% 30% 6% 30% 4% 25% 27% 30% 14% 15% 4% 29% 15% 51% 46% 48% 51% 41% 47% 53% 53% 54% 56% 43% 0% 2008 2009 2010 9M2011 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 19
Thai Tap Water Supply Public Company Limited The largest privately owned tap water producer in Thailand Address: 30/130 Moo 12, Buddha Monthon 5 Rd, Rai Khing, Sam Pran, Nakhon Pathom 73210 Tel: +66 2811 7526,+66 2811 7528 Ext: 1108 Fax: +66 2811 7687 Web Site: www.thaitap.com E-mail: ir@thaitap.com 26/01/55 To be Thailand s Leading Company in Water, Energy and Eco-Friendly Businesses 20