loxley public company limited · key growth drivers •a distributor of leading consumer products...

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LOXLEY PUBLIC COMPANY LIMITED

Aug 27, 2018

Opportunity Day

1H2018

2

1. 1H2018’s Financial Highlights

2. Strategies and Sustainable Growth

Agenda

3



By Key Business

1H2018 Consolidated

1H2018 Financial

Status

SBG’s Roadmap

Growth Drivers

“Consolidated”

4 “Strategic Planning and Investor Relations”

Information Technology “IT”

Network Solution “NS”

Food Services & Distribution “FSD”

Services

Energy

5 Strategic Business Groups “SBGs”

1. 1H2018’s Financial Highlights Business Structure

Joint Venture Business

5

oBanking & Financial Solution: ATMs EDC

oSI, HW/SW Solutions: Application development, Outsourcing service, MA

oComputer Network & System

1. 1H2018’s Financial Highlights Information Technology (IT SBG)

1,743 1,742

1H2017 1H2018

Unit:MB

การปรับแผนยทุธศาสตรท์ีส่อดคลอ้งกบัการเปลีย่นแปลงทางไอทอียา่งรวดเร็ว 1.

• Cloud Development

• Integrated Service • Data Analysis • Big Data

• Blockchain • Cyber Security • Data Gateway Platform

Backlog เตบิโตอยา่งตอ่เนือ่ง โดยปัจจบุนัอยูท่ีร่ะดบั 2,500 ลา้นบาท 2.

การขยายฐานลกูคา้ไปในหน่วยงานอืน่ๆเพิม่เตมิของภาครัฐ รวมทัง้การขยายฐานไปสูภ่าคเอกชน 3.

Sales Highlights

• Banking & Financial Solutions ↓

• SI, HW/SW Solutions ↑

• Computer Network & System ↓

Key Achievements

Business Overview

6

825 793

1H2017 1H2018

Unit:MB oTDS: Transmission line, Power distribution, Power substation

oAlternative Energy: Solar roof EPC

oElectric Vehicles: E-tuktuk, E-bus

oEnvironment: water supply system, mobile plants

1. 1H2018’s Financial Highlights Energy SBG

Business Overview

ยอดขายและอตัราก าไรขัน้ตน้ทีเ่พิม่สงูขึน้ของธรุกจิสถานไีฟฟ้ายอ่ยและสายสง่ไฟฟ้า 1.

Backlog จากสถานไีฟฟ้ายอ่ยและสายสง่ไฟฟ้าเตบิโตตอ่เนือ่ง ปัจจบุนัอยูท่ีร่ะดับ 2,000 ลา้นบาท 2.

ความส าเร็จจากการเขา้ท าตลาดใหบ้รกิารเป็นทีป่รกึษาในการท า EPC ในอตุสาหกรรม Solar farm and Solar roof สง่ผลใหล้กูคา้ใหมเ่ขา้มา

3.

Sales Highlights

• TDS ↑

• Alternative Energy ↓

• Electric Vehicles ↑

• Environment ↓

Key Achievements

7

1. 1H2018’s Financial Highlights Network Solutions (NS SBG)

EPC Projects

oTelecom Network: DWDM

oBroadcasting: equipment for DTV & Digital radio

oSecurity Intelligence Network: CCTV, BHS

oConstruction: Lysaght roof & metal sheet, automatic parking system

oOther Infrastructure projects: transportation, rail

1,233

961

1H2017 1H2018

Unit:MB

Business Overview

ไดง้าน Mega Project มลูคา่กวา่ 3,000 ลา้นบาท

1.

มฐีาน Backlog ทีแ่ข็งแกรง่ทีร่ะดบั 4,000-5,000 ลา้นบาท 2.

มแีนวโนม้การเตบิโตทีด่จีาก High Potential ทีม่มีากกวา่ 4,000 ลา้นบาท 3.

Sales Highlights

• Telecom Network ↓

• Broadcasting ↓

• Security Intelligence Network ↓

• Construction ↑

Key Achievements

มฐีานลกูคา้ทีแ่ข็งแกรง่และ Competitive Market Share 4.

8

1. 1H2018’s Financial Highlights Food Services & Distribution (FSD SBG)

oConsumer Products: Cook, Greennut, GoodTime, Abevia, Trachang,

Sumaco etc.

oChemicals

oInter Trade: -China: Rice: Sinopec -Myanmar: Castrol

oHoReCa -Products: imported from Japan and Chile with exclusive license

1,900

1,474

1H2017 1H2018

Unit:MB

Business Overview

ขยายสูธ่รุกจิทีม่ ีValue Added เพิม่ขึน้ เขา้สูธ่รุกจิ HoReCa อยา่งเต็มตัว 1.

เจาะตลาดตา่งประเทศไดม้ากขึน้โดยเฉพาะในจนีทีไ่ดท้ัง้ยอดขายและเครอืขา่ย 2.

กลุม่สนิคา้เคมภีณัฑ ์– การพัฒนาสนิคา้ทีม่ ีValue Added เพิม่ขึน้รว่มกบัลกูคา้ 3.

Sales Highlights

• Consumer Products ↓ • Chemicals ↓

• Inter Trade ↑

• HoReca ↑

Key Achievements

9

1. 1H2018’s Financial Highlights Services SBG

Services

oTotal Security System: Airports, Airlines,Cargo,Private sector

oProperty Management Services: Property management, Construction, RO water

939

1,162

1H2017 1H2018

Unit:MB

Business Overview

มงีาน Recurring อยูท่ีป่ระมาณ 800 ลา้นบาทตอ่ปี 1.

ตอ่สญัญาลกูคา้เกา่และขยายฐานลกูคา้ใหมอ่ยา่งตอ่เนือ่ง 2.

มกีารขยายสูธ่รุกจิใหม่ๆ ทีเ่กีย่วขอ้ง เชน่ Training และ Recruitment 3.

Sales Highlights

• Total security System ↑

• Property management service ↑

Key Achievements

สามารถลด Turnover rate ของพนักงานไดด้ยี ิง่ขึน้ 4.

ขยายฐานรายไดจ้ากงานประเภท Construction สง่ผลใหม้ยีอด BL มากกวา่ 800 ลา้นบาท 5.

10

291

373

188

304

Equity Profit Dividend

Unit: MB

Key Associates

BP-Castrol (Thailand)

• Produces and distributes engine lubricants under the trade names of “Castrol” and “BP”. Market share represents one of the top 5 leading lubricant distributors in Thailand.

• Capacity: 80 Million liters/ year

NS BlueScope Lysaght / NS BlueScope Steel

• JV of BlueScope, Nippon Steel & Sumitomo Metals Corporation and Loxley

• Strong in commercial, industrial, residential, and infrastructure areas, extending to home appliance

1. 1H2018’s Financial Highlights Joint Venture Business

11,550

943

11,388

589

Sales Net Profit

1H2017 1H2018Unit: MB

Financial Highlights

สว่นแบง่ก ำไรจำกบรษิทัรว่ม และเงนิปนัผลจำ่ย

11

Consolidated Account Actual Actual

THB:Million 1H2017 1H2018

Sales of products & services 7,022 6,324

Gross profit 1,080 848

% Gross margin 15.4% 13.4%

Selling & admin expenses (1,082) (1,028)

% SG&A/sales 15.4% 16.1%

EBIT before equity profit 89 5

Equity profit from associated 291 188

EBIT 380 193

EBITDA 484 278

%EBITDA/sales 6.9% 4.4%

Normalized profit 235 67

Extra expenses (16) -

Net profit 219 67

% Net margin 3.1% 1.1%

1. 1H2018’s Financial Highlights Summary of Statement of Income

5SBGs Performance

• Sales: 7,022 MB → 6,324 MB (↓10%)

1H2017 1H2018 IT 1,743 1,742 stable FSD 1,900 1,474 ↓ Energy 825 793 ↓ NS 1,233 961 ↓ Service 939 1,162 ↑

• GPM: 15.4% → 13.4% ,mainly from IT and NS due to higher

competition • Expense(“SG&A”): 1,082MB → 1,028 MB ,decrease by 54 MB due to business transformation

สว่นแบง่ก ำไรจำกบรษิทัรว่ม

• Equity Profit : 291 MB → 188 MB ,stable sharing from lubricant

business but decrease in coated steel business due to some extra expenses


6,294 6,085

2,867 3,174

2,923 1,897

4,126 4,121

31-Dec-17 30-Jun-18

16,210 15,277

18%

39%

18%

25%

12%

40%

20%

27%

3,547 3,290

1,771 1,744

3,605 3,354

5,384 5,809

1,903 1,081

31-Dec-17 30-Jun-18

16,210 15,277

22%

22%

12%

33%

11%

22%

21%

7%

38%

11%

1. 1H2018’s Financial Highlights Summary of Statement of Financial Position – Consolidated

ASSET LIABILITIES AND EQUITY

KEY RATIOS

Note: The figures above were calculated by trailing back 12 months method

Dec-17

Jun-18

1.58x

1.51x

Debt to Equity

Dec-17

Jun-18

0.66x

0.68x

Interest Bearing Debt

to Equity

Dec-17

Jun-18

2.90x

1.89x

Interest Coverage

Dec-17

Jun-18

1.35x

1.38x

Current Ratio

Cash and S-T Investment

Account Receivable

Investment

PPE

Others

Financial Debt (IBD)

Account Payable

Other Liabilities

Shareholder’s Equity

13



By Key Business

1H2018 Consolidated

1H2018 Financial

Status

SBG’s Roadmap

Growth Drivers

“Consolidated”


2. Strategies and Sustainable Growth Information Technology (IT SBG)

Business

Backlog ≈ 2,500 MB

HP ≈ 1,960 MB

Key Growth Drivers

• System Integration • Facilities Management • IT Infrastructure & Networking • IT Outsourcing & Maintenance • Software Technology

• Backlog of 1,330 MB

• Hipo of 1,011 MB

• Banking & Financial Solutions • Self Service Solutions (ATMs) • E-Payment Solutions (EDC) • IVR & CRM Solutions • IT Support & Maintenance

• Backlog of 800 MB

• Hipo of 450 MB

• LAN-WAN Networking Solution • IT & Network Security • Network & Desktop Management • Cyber-Security Solutions


• Hipo of 385 MB

• Computer, Server & Network Installation

• IT & Office Equipment Support • Simulation Service and Machine

for Truck Drivers


• Hipo of 117 MB

SI, HW/SW Solutions Banking & Financial Solutions Computer Network & System Others

Strengths 1) Up to 400 Certified Professionals (ITIL, ISO, >400 certificates covering all dimensions) + 2) Bidding Track Record

Recurring Sales ≈ 2,000-3,000 MB

1.Annual MA work

2.Outsource project

3.Upgrade/replacement of technology every 4-5 years

Consistent additional

project from existing

customer base

National E-payment Plan 5,000 MB

1 Data Gathering 2 Data Analytics 3 E-filing 4 Data Gateway 5 Cyber Security

1. Bid and propose for total solution platform in these areas

2. Aim for value added service platform instead of high proportion of machine sales

Strategies Capture Industry Trend with target 2,000-3,000 MB


Business


HP ≈ 1,960 MB

Key Growth Drivers

• EPC of power substation and transmission line projects

• Capability: • Transmission line: 115 kV, 230

kV, Track record = 6 projects • Substation: 115-22 kV, 115-24

kV, 115-33 kV, 500 kV, Track record = 16 projects


• Hipo of 1,521 MB

• EPC projects for solar roof, biomass power plant, waste (MSW) power plant

• O&M and consulting services for solar farm

• Hipo projects 227 MB

• Constructor and operator of water plants, mobile water plants

• Water management project • Water supply system


• Hipo of 97 MB

TDS Alternative Energy Environment

o Substation 695 MB o Transmission line 1,325 MB o BHS 511 MB

o EPC solar roof top 2.5-2.7 MW for private sector

o Consulting service

o Water supply equipment rental service

Thailand Power Development Plan 2015 – 2036

• Transmission system development – enhance stability and connect to power plants

• Electricity system update and expansion

Recurring Sales • Consistency and continuity • Allocated budget, no political risk

Establish a footprint in consulting service and EPC

projects for solar farm & roof

Collect the recurring income from being a project operator

Pitching for new project for additional recurring income

Establish a foothold in water plant construction project, aiming

for recurring income

Expand the construction to near-by area to minimize cost

Utilize experience to expand to further area

2. Strategies and Sustainable Growth Energy SBG


• High Potential of 450 MB

• PPP Fast Track • Double-track Railway

2. Strategies and Sustainable Growth Network Solution (NS SBG)

Business

Backlog ≈ 5,255

MB

Key Growth Drivers

HP

≈ 6,700 MB

• Smart Public Safety • Airport Technology Projects • Smart & Secure Facilities


• High Potential of 350 MB • Suvarnabhumi Phase 2

• Toll Collection System • Traffic Control • Surveillance System


• High Potential of 2,900 MB

• Integrated construction materials services

• Lysaght roof • Engaged in >86 stations


• Telecom solution (System Integrator)


• High Potential of 1,900 MB • Equipment Replacement • Analog → Digital

• IoTs, Thailand 4.0

Emergency Telephone

VDO wall

Image Processing Detector

Speed Camera

Security & Intelligent Network Transportation Systems Construction Materials Dept. Telecom Network

โครงการทางพเิศษ

พระราม 3 -ดาวคะนอง - วงแหวนรอบนอกฯ

ทางหลวงพเิศษ บางปะอนิ-นครราชสมีา

ทางหลวงพเิศษ

บางใหญ-่กาญจนบรุ ี

Yellow Line Orange Line

Pink Line

CCTV 173MB

BHS 2,873MB

VIDEO CON 48MB

USO 122MB INTERNET 75MB

LYSAGHT 362MB

AUTO PARKING 13MB

OTHERS 120MB

MEA 100MB

OHEC 39MB

PEA 43MB


• China o Strategy: Focus to

distribute more in Anhui, Fujian, and Guangdong

o Focus: Sinopec as a main distribution channel

• Myanmar o Capitalize market thru

joint marketing efforts and strong global brand

o Appoint sub-distribution in lower and upper Myanmar

Business

Key Growth Drivers

• A distributor of leading consumer products through wholesale, retail, modern retail stores, and consumer groups (network over 30,000 shops)

• Strengthen core product: launching more marketing campaign for an existing product

• Concentrate: high margin products

• Hunt: more new products

• Control: effective SG&A

• 500 factories base in several industries

• Key clients: Uniliver, Lion,Asianinsulator

• Approach: inactive customers

• Expand: product range to existing customers

• Expand: new potential industries

• Study: feasibility analysis on “manufacturing”

• Study/find out: specialty Product

• International trade that focuses on oGolden Lotus Rice

distribution to China oBP lubricant distribution to

Myanmar

• A distributor of imported foods to hotels, restaurants, and catering oPremium foods for

premium market oQuality foods for mass

market

• Upsell new products to existing Japanese networks

• Penetrate and acquire new customers

• Hire additional salespeople to boost sales

Consumer Products Chemicals InTer-Trade HoReCa

2. Strategies and Sustainable Growth Food Services & Distribution (FSD SBG)


Ground Handling & Cargo Security

130 MB

Others Security 296 MB

Airport Security 250 MB

NHA 452 MB

2. Strategies and Sustainable Growth Services SBG

Industry Trend

High Potential Projects ≈ 1,350 MB


Security Services 1,150 MB

Reverse Osmosis 200 MB

Key Competencies

Airport

General Guard

Others

3,420

1,164

1,390

Manpower

5,974

• สุวรรณภูม ิ• ภูเก็ต • สมุย • อูต่ะเภำ

• กระบี ่• อุบลรำชธำน ี• พษิณุโลก • ขอนแกน่

Key Customers

Demand in Security Services

งบประมำณปีละ ~ 400-500 ลบ.

Market share

= 15-20%

Expected revenue

~ 400-500 ลบ./ปี

1. มำตรกำรรกัษำควำมปลอดภยัทีม่ำกขึน้

2. กำรเพิม่ข ึน้ของ Airport Capacity

3. Speed ในกำร Service ทีเ่ร็วข ึน้

Reverse Osmosis Property Development

Reverse Osmosis 335 MB


High Potential 11,960 MB

Potential 15,300 MB

Solid & Concrete Revenue Base Growth-Induced Stimulator Incremental Recurring Net Profit

• Execute a tactical

marketing campaign to win extra sales in 2H2018 1. Increase proportion in

premium brand 2.Enhance profitability from

product cost efficiency

o Increase proportion in premium brand

o Superdyma

o Penetrate into retail market with fighting brand

2. Strategies and Sustainable Growth 2H2018 Key Highlights

• งำนโครงการที ่delay ในครึง่แรกทีจ่ะมาเขำ้ในครึง่หลงัของปีนี ้(IT, NS)

• งาน Mega project ทีจ่ะเร ิม่รบัรู ้รำยไดต้ัง้แต ่2H2018 (NS)

• ธรุกจิ HoReCa ทีม่กีารรว่มทนุใน Q2/2018 ทีจ่ะท ำรำยไดเ้ต็มทีใ่น 2H/2018 (FSD)

• การเพิม่กจิกรรมทำงกำรตลำดและกำรเจำะตลำดใหม่ๆ เพือ่รองรับชว่ง High Season ของธรุกจิทีม่กัเพิม่สงูในไตรมาส 4 (FSD: Consumer products, Chemicals, InterTrade)

• คำ่ใชจ้ำ่ยในภาพรวมทีล่ดลงตามแผน Business Transformation

BP-Castrol (Thailand)

NS BlueScope Lysaght / NS BlueScope Steel

Security&Intelligent

System3,087 MB

EDC & ADM800 MB

HW/SW Solution1,330 MB Sub-station

695 MB

Others23 MB

Ground Handling & Cargo Security

130 MB

Others

Security296 MB

Telecom Solution181 MB

Construction Materials496 MB

Rail Engineering

597 MB

Construction of Office Building166 MB

ITSBG

2,450 MB

5,255 MBNS

SBG

EnergySBG2,554 MB

1,463 MBServicesSBG

Airport Security250 MB

Note: 41% will be recognized in 2H2018

Others728 MB

Computer Network320 MB

Transmission Line1,325 MB

BHS511 MB

RO water335 MB

Backlog11,741

MB

Others61 MB

20

Investor Relations Contact Person : Boonlert Jaimun Tel: 66 (0) 2348-8141 Fax: 66 (0) 2348-8614 E-mail: [email protected]

Trinapan Mahanavanont Tel: 66 (0) 2348-8629 Fax: 66 (0) 2348-8614 E-mail: [email protected]

Loxley Public Company Limited 102 Na Ranong Road, KlongToey Bangkok 10110, Thailand www.loxley.co.th

Thank you

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loxley public company limited · key growth drivers •a distributor of leading consumer products...

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