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COMPANY PRESENTATION AUGUST 2016

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Page 1: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

COMPANY PRESENTATION

AUGUST 2016

Page 2: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

AGENDA

Company Overview

Business Unit Review

Financial Performance

2

Outlook

Page 3: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

AGENDA

Company Overview

Business Unit Review

Financial Performance

2

Outlook

Page 4: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Company Overview

3

LPG Trading

LPG Truck

LPG station

Industrial use

Household

PTTSGPUAC

Trading Process Distribution point

PATHUM Depot

400 Tons

PICHIT Depot

1000 Tons

Just open in 2016Expected Sales 250 Mil Baht/year

Legal stock reserve 500 tonsAverage Sales 210Mil Baht/year

The company purchases LPG fromPTT, SGP, and refineries to sell LPGunder trademark of “Champion Gas”to LPG stations, manufacturers, andfilling plant.

Bangkok

Eastern

Northern

LPG TRADING BY AREA

55%29%

16%

3%Market share in

automotive

96%LPG Station

customer

Page 5: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Company Overview

4

Transportation

Ammonia and others

Providing LPG transportation by truck domestically and internationally (Myanmar, Laos, Cambodia, and Malaysia) with international safety standard.

LPG Transportation

8Six-wheel

Trucks

14

11

Ten-wheel Trucks

Semi-trailer Trucks

We are expanding our client base into other sectors. Transporting Ammonia for PTT

– 1 Ammonia Truck. Transporting structural

fabricated component from our fabrication shop to construction site – 2 Semi Trailer Trucks

TAKUNIPTT

REVENUE BY CUSTOMER

65%28%

Page 6: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Company Overview

Construction and Shop Fabrication

5

Oil and Gas Sector

Construction

Shop Fabrication and Erection

Property Sector

Cool Condominium

Experiences• ThaiOil TLAB / 113Mil.Baht• PTTLNG Terminal Expansion /

83.9Mil.Baht• PTT Asahi ASR / 18.6Mil.Baht• IRPC PPE / 85Mil.Baht• Samsung TSE ATV / 90Mil.Baht

Experiences• WP LPG Terminal / 137Mil.Baht• ThaiOil TLAB / 144.8Mil.Baht• PTTLNG Terminal Expansion /

291.4Mil.Baht• PLE Building Facade/ 21.6Mil.Baht

Our first construction project in property sector with project value of 178Mil.Baht.

18 Staffs

Max. Mob. Capacity of 250 workers

Rayong Fabrication shop 30,000 sq.m.

145 Staffs

Max. Capacity of 3000 workers

Office and workshop 172,000sq.m.

Page 7: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Company Overview

6

Testing and inspection

Customers

Providing safety inspection by non-destructive testing techniques under international instruction by qualified supervisors.

Non-Destructive testing

Most of our customers are using LPG and CNG in which they are subjected to the regulations and must be certified annually.

Transportator 8%

Factory 11%

CNG/LPG Station 31%LPG M7 21%

PTT 18%

Other 11%TYPE OF CUSTOMER

Page 8: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Company Overview

Integrated Services

Customer

LPG Trading

InspectionVehicle Conversion

Construction Transportation

Our Businesses, as mentioned, has provided an One Stop Service for our LPG related customer as well as differentiate us from others.

For example, LPG Station customer, 1) Providing engineering and construction

service including process all permission needed.

2) Supplying LPG including transport LPG to customer station.

3) Providing safety inspection complied with all regulations.

7

Page 9: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

AGENDA

Company Overview

Business Unit Review

Financial Performance

2

Outlook

Page 10: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Business Unit Review

LPG Trading

265254

241 247234 241

100

200

300

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Revenue (MB) Revenue o Y-o-Y (-5.12%): Increase in LPG volume

(14.27%) ,but Decrease in LPG selling price (16.94%) due to the board of National Energy Policy and LPG price war

o Q-o-Q (+2.99%): Increase in LPG volume (7.23%) ,but Decrease in LPG selling price (3.81%) due to the board of National Energy Policy and LPG price war

12.63

5.69 5.10 4.775.73 6.52

0

5

10

15

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Gross Profit (%)Gross Profito Slightly increase Gross Profit from previous

quarter because throughput cost was decreased since February 2016

o In February 2015, the government’s LPG floating policy make one time gain on inventory 5.55% of LPG trading income

8

Page 11: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Business Unit Review

Construction and Shop Fabrication

Civil Construction in Property Sector

Project

Cool Condominium /178Mil Baht / Progress 14%

Civil Construction and Shop Fabrication in Gas and Oil sector

Project

PTT MCS / 450Mil.Baht / Progress 12.3%IRPC PPE / 83.44Mil.Baht / Progress 40.2%PTTLNG STR Installation / 98.93Mil.Baht / Progress 85.3%

20 4381

113

37

209

0

100

200

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Revenue by sector (MB)

Oil& Gas

Property

RevenueY-o-Y (+375%) and Q-o-Q (+464%) : Sharply increase from changing the status of investment from associated to be subsidiary

Gross ProfitDecrease in Gross Profit from 18% to 12% due to margin for civil construction and shop fabrication in Gas and Oil sector less than in property sector

9

BacklogProperty Sector

Gas and Oil sector

156 Mil.Baht

407 Mil.Baht

Page 12: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Business Unit Review

Other Business Units

23.88

17.5420.43

25.7422.22 21.08

0

10

20

30

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Revenue (MB)

40.229.43

40.82

-14.34

45.6836.67

-20

5

30

55

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Gross Profit (%)

Revenue o Y-o-Y (+20.18%): Increase in inspection service

income as number of service increased compare to the same period of 2015

o Q-o-Q (-0.05%): Slightly decrease both in transportation service income and inspection service income

Gross Profito Decreased Gross Profit from previous quarter

because fixed service cost in inspection businesso In December 2015, record allowance for net

realizable value of inventories for vehicle conversion kits amounting of 17.16 Mil Baht or 66.67% of total revenue for other business units

10

Page 13: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

AGENDA

Company Overview

Business Unit Review

Financial Performance

2

Outlook

Page 14: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Financial Performance

Consolidated Revenue

262292

338 312 309 315342

386

293

471

0

200

400

600

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

Revenue (MB)

0

100

200

300

400

500

Q1'16 Q2'16

Proportion by Business Units

LPG trading Construction Other

79.71%

12.71% 44.35%

51.17%

Consolidated revenue significantly increase (+60.75% for Q-o-Q) because of the business combination of civil construction and shop fabrication in Gas and Oil sector (CAZ Thailand Co. ,Ltd.) since 7 April 2016.

+60.75%

11

Page 15: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Financial Performance

Consolidated Profit

Gross Profit o Gross Profit increase (by 72% for Y-o-Y and 56% for Q-o-Q) because of the increase in proportion of construction service

income, which has higher margin than LPG trading business

Q1’16 Q2’16

Gross Profit Margin 10.44% 10.11%

Net Profit Margin 0.32% 3.97%

11.44%

15.46%

73.10%

Net Profit ProportionQ2' 16

LPG trading

Construction

Other

33.03%

50.74%

Gross Profit Proportion Q2' 16

Net Profito Net Profit increase (by 154% for Y-o-Y and 1910% for Q-o-Q) because net gain from sell of investment in associated

company, renewable energy business, amounting of 11.75 Mil Baht.

12

Page 16: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Financial Performance

Financial Position

Account Payable

Borrowing fromfinancial institutionsOther Liabilities

Equity

10.99%

53.92%32.24%

22.56%

61.73%12.55%

o Increase in Net Asset due to capital paid up (Right Offering) in Jan’16

o Cash increased from capital paid up will be used for new investment

o Sharply increase in Total Asset due to consolidated unbilled receivable from civil construction and shop fabrication in Gas and Oil sector

Assets

o Account Payable increased from unearned revenue for construction contract

o Decreased in Loan from bank as repayment from cash received from paid up capital

Liabilities and Equity

Dec 2015 Jun 2016

Total Asset 770 MB 1,390 MB

Net Asset 415 MB 858 MB

Total Cash 130 MB 307 MB

Net Cash* 90 MB 235 MB

* Total Cash less pledged and restricted bank deposits

770 MB (Dec’15)

1,390 MB (Jun’16)

D/E Ratio : 0.62

Interest Bearing debt: 0.10

13

Page 17: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Financial Highlight

Dividend Policy: Not less than 40% of net profit according to the Company’s consolidated financial statements; however, subject to the necessity of working capital use for business expansion.

Financial Performance

14

Dividend Payment FY2014 FY2015

24.00 MB

0.060 THB 0.033 THB

26.16 MBTotal Dividend

Dividend per Share

Number of Share 400 Mil 800 Mil

Page 18: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

AGENDA

Company Overview

Business Unit Review

Financial Performance

2

Outlook

Page 19: COMPANY PRESENTATION · 2020. 5. 1. · SGP UAC Trading Process Distribution point PATHUM Depot 400 Tons PICHIT Depot 1000 Tons Just open in 2016 Expected Sales 250 Mil Baht/year

Q & A

14