TRC Corporate Presentationtrc.listedcompany.com/misc/presentation/20180323-trc-oppday-4q2017-th.pdf · 3/23/2018 · TRC Corporate Presentation The 2017 Operating Performance 23
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T - Transparency, Ethics & Integrity - ซอสตย โปรงใส ใสใจจรยธรรม
R - Respect & Trust - เคารพกนและกน เชอมนไวใจ
C - Commitment - มงมนสคณภาพ ปลอดภยทกเวลา รกษาสงแวดลอม รบผดชอบตอสงคม
TRC Corporate Presentation
The 2017 Operating Performance
23 March 2018
2
Disclaimers
IR Contact: Investor Relations Department
Email: ir_trc@trc-con.com
Tel. +66 2022 7777-87 Ext. 3201, 3212, 3213
Fax +66 2022 7778
Information disclosed on this presentation includes forward looking information of TRC
determined by TRC based on information available at the time, as well as information about
risks and factors of uncertainty related to economic trends, intensified competition in the
industry, market demand, exchange rates, applicable laws and regulations. Operating
results and other information published in the future may vary due to these factors. TRC is
in no way responsible for any damage incurred due to the use of information disclosed on
this presentation. Further, no obligation to revise and/or publish forward-looking information
on this presentation based on new information and/or future events.
The information disclosed on this presentation is for information purposes only and does
not constitute an offer or invitation to sell or the solicitation of an offer or invitation to
purchase or subscribe for securities in TRC in any jurisdiction nor should it or any part of it
form the basis of, or be relied upon in any connection with, any contract or commitment
whatsoever.
Content
Key Financial Highlights 29
Future Developments 24
Ongoing Projects 14
Significant Events during 2017 4
3
To develop an investment in
energy and petrochemical businesses
To deliver the works with
quality with recognition of
safety within defined timeframe
for customers’ highest
satisfaction
To run the business under the
corporate governance principle
focusing on safety,
environment, society and
community for stable and
sustainable growth
To operate the construction
business as an EPC contractor (Engineering, Procurement
and Construction) for natural
gas and crude oil pipeline
projects, petrochemical plants
and basic infrastructure
Mission To become an excellent
contractor in design,
construction of a total solution in energy and
infrastructure industries
with sustainable growth
Vision
To acquire the National Total
Quality Class (TQC) Award
To continually develop the
investment project at least 4
projects
To reach 20% target increase
of the yearly construction
services income with total
services income of Baht
10,000 million within 2019
(consolidated financial
statements)
2019 Target
Vision & Mission & Target
4 Approved by the 6/2014 BOD Meeting in November 2014 and latest reviewed by the 6/2017 BOD Meeting in November 2017
At present 2 projects are invested:
- APOT - SAO Tasit- Water Supply System
5
Significant Event 2017: Establishment TRC Utility Co., Ltd.
To operate SAO Tasit– Water Supply System Project
Establishment Date: 20 June 2017
Type of Project: Build-Own-Operate
Project Name: Tap Water Concession of SAO Tasit
Location: Tasit sub-district, Pluak-Daeng District, Rayong
Plant Capacity: Phase 1 – total 2,400 cu.m. per day
Phase 2 – total 4,800 cu.m. per day
Source of Raw Water: Klong Kram (priority), Klong Rawoeng,
and Nong Pla Lai Reservoir
Initial Investment: Baht 31 million for Phase 1 and
additional Baht 6.5 million for Phase 2
Tap Water Concession Agreement: 24 July 2017
Commercial Operating Date: 17 March 2018
Concession Period: 3 years + 3 years +… [extendable every 3 years]
6
Establishment Date : 17 November 2017
Nature of the Business : Construction of underground electrical conduits,
trenchless for Horizontal Directional Drilling (HDD),
Boring and Pipe Jacking
Registered Capital : Baht 40,000,000
Paid-up Capital : Baht 10,000,000
Shareholders : Sahakarn Wisavakorn Co., Ltd. 51%
Huayuan Innovative Development (Hong Kong)
Co., Ltd. 49%
Significant Event 2017: Establishment SH Crossings Co., Ltd.
TRC Group Structure as at 31 December 2017
TRC Construction Public Company Limited (Thailand)
Paid-up Capital 734 MB
30%
70%
Sinopec-TRC Joint Venture (Thailand)
PPT’s Provincial Gas Transmission Pipeline
Saraburi to Nakorn Ratchasima Project (Year 2013-2016)
Sinopec International Petroleum Service
Corporation (China)
99.99%
Sahakarn Wisavakorn Co., Ltd. (Thailand)
Paid-up Capital 500 MB
Hydrotek-Sahakarn Joint Venture
(Thailand) Construction, Improvement and
Expansion of Waterworks at Koh Samui (855 MB)
49% Hydrotek Public Company Limited
(Thailand)
51%
7
TRC Utility Co., Ltd. (Thailand)
Paid-up Capital 1 MB Tap Water Concession of
SAO Tasit Project
100%
2.67%
100%
100%
25.13%
22.46% TRC Investment Limited (Mauritius)
TRC International Limited (Hong Kong)
ASEAN Potash Chaiyaphum Public Company Limited
(Thailand) Paid-up Capital 2,806 MB
Project completed
New subsidiary in June 2017
SH Crossings Co., Ltd. (Thailand)
Paid-up Capital 10 MB
Huayuan Innovative Development (Hong Kong)
Company Limited (China)
51% 49%
New subsidiary in November 2017
1st Investment Project
2nd Investment Project
8
Issuance of 100 MB and 180 MB Debentures in Jul 2017 and Mar 2018,
respectively
Issuance Date
Maturity Date
Issuance (MB)
Outstanding (MB)
Debenture Holders
Interest Rate (Per Year)
8 Jul 2015 8 Jul 2017 (2 years)
100 - (Expired)
10 persons 4.68%
10 Mar 2016 10 Mar 2018 (2 Years)
200 - (Expired)
10 persons 4.40%
12 Jul 2017 12 Jul 2018 (1 year)
100 100 10 persons 4.50%
15 Mar 2018 17 Mar 2020 (2 years&2 days)
180 180 9 persons 4.80%
Outstanding Debentures 280
Debentures Issuance by Way of Private Placement (Approved by the 2015 AGM)
I) Debentures Baht 500 million
II) Debentures Baht 2,000 million Still not issue
9
sSET INDEX CONSTITUENTS For calculating the index during 2017 and to be continued in 1H 2018
Significant Event 2017: TRC has been chosen as one of sSET index during 1st & 2nd half of 2017 continuing to the 1st half of 2018
Top Corporate Governance Report Awards
Outstanding Company Performance Awards
Outstanding Company Performance Awards
Outstanding
Investor Relations Awards
Corporate Governance
2017 CG Scoring
2013
Outstanding CEO Awards
2015
10 Excellent CG Scoring Step up from Good
2016 CG Scoring
11
In 2017, TRC Group obtained 14 projects (Baht 5,358 million)
By: TRC (3,328 MB) Significant Projects: Project Owner Value (MB) Period
2nd LNTP for Turnkey Delivery of
APOT Project Package 2. Surface
Processing and Facilities (Long Lead Equipment for Processing Plant)
ASEAN Potash
Chaiyaphum Plc.
2,310.72 2 years
Revamp LPG Transfer Pump to Domestic BRP
PTT Plc. 208.50 17 months
BV4.19 PIG Launcher and Receiver Installation Project
PTT Plc. 229.28 16 months
RDCC Catalyst Cooler Project Part 2
Back Pressure Steam and Utilities System
IRPC Plc. 492.00 21 months
12
TRC Group obtained 14 projects (Baht 5,358 million)
By: SKW (2,030 MB) Significant Projects:
Project Owner Value (MB) Period
Kanlapaphruek Road Extension
Department of Highways,
Ministry of Transport and related state enterprises
849.72 900 days
Improvement Nature
Trail into National Park
Office Hat-Khanom-Mu-
Ko-Thale-Tai phase Ao
Thong Yang - Ao Thong Yee
Nakhonsithammarat Province 98.12 8 Months
Improvement of
Pracharuamjai Road – Mitmaitri Road
- The Bangkok Metropolitan
Administration
- Metropolitan Electricity
Authority
- Metropolitan Waterworks
Authority - TOT Plc.
990.84 30 months
Content
Key Financial Highlights 29
Future Developments 24
Ongoing Projects 14
Significant Events during 2017 4
13
14
TRC Group Backlog
3,487 3,786
2,480
4,635 4,635
124
2,616
1,200
2,077 2,077
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2014 2015 2016 31-Dec-17 31-Dec-17TRC SKW
3,611
6,402
Including
remaining works of
1st and 2nd LNTP of
APOT (2,550 MB)
(MB)
3,680
37,542
APOT’s Surface
Processing Plant&
Facilities Project *
(after deduction
1st /2nd LNTP for
Early Works)
20,000
30,000
6,712
30,830
+APOT Project* + 4 new projects in the 1st qtr 2018
* TRC obtained LOA of APOT Project in February 2016
4 new projects in the 1st
Qtr 2018 from
1 Sinopec (755.23 MB)
2 The Department of
Highways (347.38 MB)
3&4 SCG (76&80 MB)
1,259
Backlog as at 31 Dec 2017
Backlog by Scope of Works
Scope of Works No. of Projects Remaining Value
(MB)
Pipeline System 6 1,653
Processing Plant 3* 2,265
Civil Work 10* 2,794
Total 18* 6,712
Backlog by Company
Company No. of Projects Remaining Value
(MB)
TRC 8 4,635
SKW 10 2,077
Total 18 6,712
TRC
SKW
15
* APOT Project consists of both processing plant and civil works.
Processing
Plant 34%
Pipeline
System 25%
Civil Work
41%
Processing
Plant
33%
16
Turnkey Delivery of APOT’s Package 2 Surface Processing and Facilities – Obtained LOA in Feb 2016
Project Owner: ASEAN Potash Chaiyaphum Public
Company Limited (APOT)
TRC’s Work Value*: USD 245.46 million and Baht
25,789.33 million or approximately Baht 33,852 million
Scope of Works: Mineral processing plant, office building,
power supply and facilities utilities
1. 26 km. water pipe line with associated facilities
2. Infrastructure and early works
3. Biomass Power Plant
4. Process building
5. Crystallization Plant
6. 7 km. pipe conveyor, tailing pond with
associated facilities
7. E&I, Interface & Commissioning
* Work Value:
Early Works (1st & 2nd LNTP) 3,022 MB
Remaining EPCC Contract 30,830 MB
Total 33,852 MB
2,550 MB Remaining, Including in backlog
EPCC Contract is tentatively to be signed within 2018
17
4 New Projects in the 1st quarter 2018 (1,259 MB) TRC : Baht 911.2 million
Project Owner: PTT Public Company Limited
Project Contractor Sinopec International Petroleum
Service Corporation
Scope of Works: EPCC and Start-up of the 14 block
valve & facility stations under the Fifth
Transmission Pipeline Project Phase 1
Project Value: Baht 755.23 million
Project Period: 33 months
The 14 block valve & facility stations under the Fifth Transmission Pipeline Project, Phase 1
BCM Naphtha and Pygas Pipeline
Project Owner: SCG Chemicals Company Limited
Scope of Works: Option 1 RTC Area: Baht 76 million
Option 2 Interconnecting Pipeline:
Baht 80 million
Project Value: Baht 156 million
Project Period: 8 months
18
SKW : Baht 347.4 million
The Construction of Highway Route No. 4 A. Takua Pa – A. Thai Mueang
Project Owner: Bureau of road construction 1
(The Department of Highways)
Scope of Works: The Construction of Highway Route
No. 4 A. Takua Pa – A. Thai Mueang
between Km.803+000.00 to
Km.813+300.00
Project Value: Baht 347.38 million
Project Period: 600 days
4 New Projects in the 1st quarter 2018 (1,259 MB)
Completed 90.3%
Remaining 9.7%
Significant Ongoing Projects
PTT’s 1st Transmission Pipeline Life Extension (3,725 MB) by TRC
Provincial Waterworks Authority’s Construction, Improvement and Expansion of Waterworks, Koh Samui
(855 MB) by SKW
Pipeline
19
Completed 64.3%
Remaining 35.7%
Project period: Feb 15 - Oct 18
Project period: Aug15 - Apr 18
PTT’s Revamp LPG Transfer Pump to Domestic BRP (209 MB) by TRC
Completed 73.7%
Remaining 26.3%
Project period: Apr 17 - Aug 18
Significant Ongoing Projects
Processing Plant
Thailand Tobacco Monopoly’s EPC for Dry Ice Expanded Tobacco Process, DIET Process (834 MB) by SKW
Completed 96.0%
Remaining 4.0%
20
Project period: Dec 15 - Jun 18
APOT’s Package 2 – 2nd LNTP Early Works for Long Lead Equipment for
Processing Plant (2,311 MB) by TRC
Completion 0.0%
Remaining 100.0%
Project period: Mar 17 - Oct 19
Completion 73.7%
Remaining 26.3%
Project period: Sep 17 - Jun 19
RDCC Catalyst Cooler Project Part 2 Back Pressure Steam Turbine and
Utilities System (492 MB) by TRC
21
Civil Work
Significant Ongoing Projects
Srinakarin Romklao Road Phase 1* (1,101 MB) by SKW
Completed 99.0%
Remaining 1.0%
Project period: Jul 15 - Jan 18
Department of Highway’s Extension Kalapapruek Road (850 MB) by SKW
C ompleted
3.3%
Remaining 96.7%
Project period: Mar 17 - Aug 19
Improvement of Pracharuamjai Road – Mitmaitri Road (991 MB) by SKW Completion 0.0%
Remaining 100.0%
Project period: Sep 17 - Sep 19
22
Civil Work
Significant Ongoing Projects
Project period: May 16 - Dec 17
APOT’s Preparation & Refurbishment of Existing Decline (162 MB) by TRC
Completed 60.8%
Remaining 39.2%
Project period: Jan 16 - Dec 17
APOT’s Package 2 – 1st Limited Notice to Proceed Early Works of
Surface Processing Plant & Facilities Project (711 MB) by TRC
Completed 66.4%
Remaining 33.6%
Content
Key Financial Highlights 29
Future Developments 24
Ongoing Projects 14
Significant Events during 2017 4
23
List of Potential Bidding Projects during 2018
Project Name
Approximate
TRC Group’s Work Value
(Million Baht)
Estimated
Project Period
A. Pipeline
A.1 New Distribution Pipeline to New Customers
and Modify/ Reroute Pipeline 260 2018
A.2 PTTLNG Nong Fab Receiving Terminal Project 1,000 Q1 - Q2 2018
A.3 5TP Phase 3 1,500 Q4 2018
A.4 Pipeline for FSRU Project 3,500 2018 - 2019
B. Processing Plant
B.1 Plant Modification Project 1,750 2018
B.2 Thai Oil Clean Fuel Project 2,000 Q4 2018
C. Infrastructure
Infrastructure Government Projects
(I.e. Double Track Railway Projects) n/a 2018 onwards
Total 10,010
24
25
Business 2018 2019 2020 2021 2022 Total %
Natural gas 3,854 2,463 1,759 1,676 1,040 10,792 3%
Natural gas transmission
pipeline
26,049 17,841 5,819 6,437 755 56,901 17%
Oil and international trading 14,169 71 6 6 6 12,258 3%
Infrastructure 21,033 4 4 4 5 21,050 7%
Head office and others 7,038 3,532 4,142 4,259 3,789 22,760 6%
Joint investment and
investment in PTT wholly-
owned entities
176,470 21,969 10,771 8,987 4 218,201 64%
Total 246,613 45,880 22,501 21,369 5,599 341,962 100%
PTT’s 5-year Investment Plan (2018 – 2022)
(Unit: Million Baht)
Source: PTT’s news reported to the Stock Exchange of Thailand on 22 December 2017
Thailand’s EEC
27
Potential Awarded Projects
Project Owner: Provincial Waterworks Authority
Project Value: Approximately Baht 522 million
Scope of Works: Improvement Waterworks for
Chaiyaphum - Ban Khwao,
Chaiyaphum Province
Project Period: 420 days
Awarded Period: within 2018
Improvement Waterworks for Chaiyaphum – Ban Khwao Project (Submitted bid by Sahahydro Joint Venture*)
* Shareholders consist of Hydrotek 51% and SKW 49%
Content
Key Financial Highlights 29
Future Developments 24
Ongoing Projects 14
Significant Events during 2017 4
28
29
2017 Operating Performance
(Unit : Million Baht)
9-Month the 4th Qtr 2017 2016
2017 2017 Amount Percentage
Construction services income 1,840.18 529.95 2,370.13 3,697.30 -1,327.17 -35.90
Cost of construction services -1,493.98 -365.74 -1,859.72 -2,946.65 -1,086.93 -36.89
Gross profit 346.20 164.21 510.41 750.65 -240.24 -32.00
Interest and other income 54.74 10.96 65.70 39.60 26.10 65.91
Administrative expenses -275.42 -66.49 -341.91 -349.80 -7.89 -2.26
Doubtful debt (+reversal) 0.00 0.13 0.13 -7.03 -7.16 -101.85
Loss on change in shareholders' equity of associate 0.00 -34.99 -34.99 0.00 -34.99 N/A
Profit before share of loss from investment in
associate, finance cost and income tax expenses125.52 73.82 199.34 433.42 -234.08 -54.01
Share of loss from investment in associate -26.97 -7.37 -34.34 -32.94 1.40 4.25
Share of loss from investment in joint venture 0.00 -0.11 -0.11 0.00 0.11 N/A
Finance cost -12.21 -4.19 -16.40 -17.03 -0.63 -3.70
Income tax expenses -34.85 -22.96 -57.81 -98.34 -40.53 -41.21
Profit for the period 51.49 39.19 90.68 285.11 -194.43 -68.19
Non-controlling interests of the subsidiaries 1.40 0.71 2.11 5.65 -3.54 -62.65
Profit attribute to equity holders of the Company 52.89 39.90 92.79 290.76 -197.97 -68.09
Earnings per Share (Baht) 0.016 0.050
Gross Profit Margin 18.81% 30.99% 21.54% 20.30%
Net Profit Margin 2.79% 7.38% 3.81% 7.78%
Debt to Equity (Time) 0.71 0.67 0.86
Change
(2017 - 2016)
30
Construction Services Income & Net Profit
2,108 1,796
1,075
1,535
1,159
345
236
742
950
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5
Civil Work
Processing Plant
Pipeline System
305290
93
-33 -34
-35
-100
-50
0
50
100
150
200
250
300
350
5
(MB) (MB) Construction Services Income Profit attribute to equity holders of the Company
3,786 3,697
2,370
Loss on change in shareholders' equity of associate
Share of loss from investment in associate
40%
15%
45%
624 728 780 1,113 954
544 696
955 439 440
719
801
905 1,173
501
629
902
1,315 1,012
541
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
5
Q4
Q3
Q2
Q1
(MB)
31
Total Revenue by Quarter
2,516
3,127
3,955 3,737
2,436
32
2,516
3,127
3,9553,737
2,436
126213
305 290
93
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2019 (F)
Construction Services Income Net Profit Other Income
TARGET Construction Services Income
≥ ,
35
32
75
40
66
5-Year Total Revenue & Net Profit
(MB)
2,481 3,095 3,880 3,697 2,370
33
Gross Profit & Net Profit
375
557 638
751
540
126215
306 291
93
15.1%
18.0%
16.4%
20.3%
21.5%
5.0%
6.9%7.7% 7.8%
3.8%
0.0
5.0
10.0
15.0
20.0
25.0
0
100
200
300
400
500
600
700
800
5
Gross Profit Net Profit Gross Profit Margin Net Profit Margin
(MB) (%)
34 34
707 726 685 2
1,331 1,266
547
72 48
3,316
2,874 2,599
-
1,000
2,000
3,000
4,000
5,000
31 Dec 15 31 Dec 16 31 Dec 17
Assets
Current assets
Other non-current assets
Investment in associate and Investment in joint ventures
Property, plant and equipment
4,572
5,003
4,598
(MB)
Financial Position
2,421 2,684 2,756
1,966 1,838
1,367
100
404
400
85
75
-
1,000
2,000
3,000
4,000
5,000
31 Dec 15 31 Dec 16* 31 Dec 17
Liabilities and Shareholders' Equity
Non-current liabilities
Loans and debentures
Current liabilities
Shareholders' equity
5,003
4,5984,572
(MB)
* Note: In the 2016 Financial Statements, non-current liabilities as
at 31 Dec 16 were 277 MB. In this graph, debentures- net of
current portion 200 MB were included in loans and debentures, also net current liabilities were only 77 MB.
(APOT: 1,361 1,328) (APOT: 1,259) (APOT: 455)
TRC Group Industry Group (Construction Services)
0.89 0.860.67
2.462.34
2.47
0.00
0.50
1.00
1.50
2.00
2.50
3.00
31-Dec-15 31-Dec-16 31-Dec-17
15.99
11.28
3.38
12.26
7.09
2.56
0.00
5.00
10.00
15.00
20.00
5
(%)
Financial Ratio
Time(s) Return on Equity Debt to Equity Ratio
35
0.06
0.160.15
0.00
0.05
0.10
0.15
0.20
31-Dec-15 31-Dec-16 31-Dec-17
Time(s)
104.12
26.8816.28
0.00
20.00
40.00
60.00
80.00
100.00
120.00
5
EBITDA to Interest Time(s)
TRC
TRC
Interest Bearing Debt to Equity Covenant: > = 4 times Covenant: < = 2 times
Dividend Payout
36
Dividend Policy: 40% of Net Profit of “TRC” after Legal Reserve
0.03125(4:1)
0.015625(8:1)
0.0178571(7:1)
0.00625(20:1)
0.003472
0.01 0.004
0.002
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
0.04
5
Stock Cash
0.034722
0.025625
0.0218571
0.00825
Dividend/ Net Profit after Legal Reserve 46% 30% 30% 48%
DPS (Baht/Share)
* 2017 Dividend will be proposed to the 2018 AGM for approval on 28 April 2018.
37
If you have any question please feel fee to contact Investor Relations Department
Email: ir_trc@trc-con.com or ounruen@trc-con.com
Tel. +66 2022 7777-87 Ext. 3201, 3207, 3212, 3213
Fax +66 2022 7778
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