set: opportunity day, 12 june 2013 - listed...

1

Nawarat Patanakarn Public Company Limited

SET: Opportunity Day, 12 June 2013

www.nawarat.co.th

Public / IR Division T: +662 730 2100 F: +662 751 9484 E: [email protected]

A: 18th-19th Floor, Bangna Towers (A), 2/3 Moo 14, Bangna-Trad Rd, 6.5 km, Bangkaew, Bangplee, Samutprakarn 10540 Thailand

2

Disclaimer

I m p o r t a n t N o t i c e:

The content of the presentation provided by the Nawarat Patanakarn Public Company

Limited (the “Company”) is intended to provide as information for discussion purpose only

and is strictly for private and confidential. Past performance is not indicative of future

performance. Any unauthorised disclosure, use or dissemination, either whole or partial,

is prohibited. It must not be reproduced, copied or made available to others. Some of the

information in this presentation may contain projections or other forward looking

statements regarding future events or future financial performance of countries, markets

or companies. These statements are only predictions and actual events or results may

differ materially. The reader must make his/her own assessment of the relevance,

accuracy and adequacy of the information contained in this presentation and make such

independent investigations as he/she may consider necessary or appropriate for the

purpose of such assessment. Any opinion or estimate contained in this presentation is

made on a general basis and is not to be relied on by the reader as advice. Neither the

Company nor any of its servants or agents have given any consideration to nor have they

or any of them made any investigation of the investment objectives, financial situation or

particular need of the reader, any specific person or group of persons. Accordingly, no

warranty whatsoever is given and no liability whatsoever is accepted for any loss arising

whether directly or indirectly as a result of the reader, any person or group of persons

acting on any information, opinion or estimate contained in this presentation.

3

Company Overview

Company Overview

4

Brief History

Established in 1976, Nawarat Patanakarn Public Company Limited (NWR) stands today as one of Thailand's largest

construction and engineering firms with over 2,000

employees. With more than 36 years of growing experience

in Thailand and other countries, NWR is

distinguished by its wide range of technical capabilities,

which enable the company to undertake various types of

work.

5

Types of Work

• Industrial Work

• Civil Work

• Tunneling & Underground Work

• Commercial Buildings

• Residential

• Marine Work

6

Supporting Facilities

Concrete Product Casting Factories

• Bangna-Trad

• Samutsakorn

• Chacheangsao

Total 11,000 cu.m./month

Steel Structure & Fabrication Factory

• Chacheangsao

Total 1,000 ton/month

7

Subsidiary & Associated Companies

Subsidiary Companies

Nature of Business Share of Profits

(Percent)

Myanmar NWR Company Limited

Construction 100

Utility Business Alliance

Company Limited

Wastewater Treatment 60

NWR (Cambodia) Company Limited

Manage and Control

Construction Project

100

Mana Patanakarn Company Limited

Real Estate 99.9

Associated Companies

Nature of Business Share of Profits

(Percent)

C.I.N. Estate

Company Limited

Property development and Condominium

operation

40

VSPN Property

Company Limited

Property development and Villa

25

8

Ongoing Strategy

Ongoing Strategy

9

Growth Strategy

• The Company plans to leverage on its specialization in higher margin projects (e.g. marine & tunnel) to selectively engage in the upcoming projects with attractive margins

• The Company plan to selectively diversify into more property projects that provide attractive margin, strong growth potential and synergies with its current business (high-rise condo/single home) as evidenced by its JV with Chan Issara and Villa Baranee projects

• Higher efficiency by improving revenue generated per worker and overhead cost and expenses per project from additional engagement of new projects and optimizing existing resources capacity

• Debt reduction to reduce interest expenses and give more flexibility in the future

Target new backlog with

attractive margin

Synergistic new business

expansion

Improve efficiency

and strengthen balance sheet

• In order to prepare for AEC, the Company has been engaging projects in ASEAN countries and will leverage on its reputation to obtain more projects from ASEAN countries with high growth rate with core focus in Myanmar, Laos, Camodia and Vietnam

Extend service into ASEAN countries

10

Q1/2013 Performance Summary

Q1/2013 Performance Summary

11

Q1/2013 Financial Highlights

Q1/2013 Financial Performance (Unit: THB mm)

Construction contract +1,287.9

Rendering of service (Mae Moh) +342.8

Interest Income +4.0

Other Income +35.2

Total revenues +1,669.9

Cost of construction -1,188.3

Cost of service -302.8

SG&A -89.5

Total Expense -1,580.6

Profit (loss) from associates +11.8

Finance cost -33.1

Income Tax -12.9

Net earning +55.1

Non-controlling Interest 0

Net earning to Equity Holders +55.1

12

Key Performance Index

Sustainable Core Revenue Growth

Additional Room to Improve SG&A/Sales

Healthy Gross Margin of Construction Contract

Sharp decrease in Mae Moh’s margin due to machinery replacement. Margin to resume to normal in 2013

Unit: THB mm

Strong Recovery in Core Net Margin

Performance partially affected by flood

Top 3 contractors avg SG&A/Sales 2012: 5.6%

2012 SG&A/Sales of ITD, Stec, and CK are 6.9%, 2.8% and 7.0% respectively. Source: Setsmart as of March 2013

3,507 3,260 2,856 3,174

5,941

1,288

883

763

343

1,079

2008 2009 2010 2011 2012 Q1/2013

Construction Mae Moh contract

11.4%9.7%

2.7%

7.7%

16.6%

7.3%

11.7%

8.3%

1.9%

2009 2010 2011 2012 Q1/2013

Construction margin Mae Moh contract margin

7.5%7.2%

6.8%

6.1%

5.5%

2009 2010 2011 2012 Q1/2013

SG&A / Sales

2.6%1.9%

3.4% 3.3%

-3.7%

2009 2010 2011 2012 Q1/2013

Core Net Margin

13


Steady Growth of New Projects Awarded Healthy Backlog Amounts

Stabilizing Net D/E ratio Current Ratio Could be Further Improved

Unit: THB mm

0.07x

0.87x0.77x

1.04x

0.89x

1.04x

2008 2009 2010 2011 2012 Q1/2013

Net Debt / Equity

1.30x

1.06x

0.82x0.86x

0.97x0.94x

2008 2009 2010 2011 2012 Q1/2013

Current Asset / Current Liabilities

2,202

4,032

4,799 4,9155,354

3,386

2008 2009 2010 2011 2012 6m13

1,669

10,269 9,21111,152

8,387 7,880

11,059

2,556 4,337

2,475 4,181

445

2008 2009 2010 2011 2012 4m13

Signed Contract Unsigned Contract (with high certainty)

14


866

1,139

903

1,122 1,158

864

1,099

1,292 1,286

1,480

2,286

484

742

606

746826

641 641

982899

1,196

1,382

1,970

1,188

1,6701,764

0

500

1,000

1,500

2,000

2,500

Q1/1

0

Q2/1

0

Q3/1

0

Q4/1

0

Q1/1

1

Q2/1

1

Q3/1

1

Q4/1

1

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Mil

lio

n B

ah

t

Net Revenue Cost

15

Current Backlog (Signed Contract)

Item Owner Project Description Start End Total

Value Remaining

1

Bangkok Metropolitan

Administration [BMA]Drainage System - Bangtoei Canal

Jul-10 Jan-13 270 28%

2

Metropolitan Waterworks

Authority [MWA]

Underground Pipe in Ratchadaphisek Rd.,

Kamphaengphet Rd. and Phaholyothin Rd. May-11 Jul-12 160 1%

3Electricite Du Laos [EDL] Nam Sana - Hydroelectric Power Project

Jun-11 Jan-14 920 65%

4Nuctech Co., Ltd.

X-Ray Scan Phase 4 (Fixed System),

Chonburi Aug-11 Aug-12 320 23%

5Marubeni Corporation

Chana Combined Cycle Power Plant Block 2,

Songkhla Aug-11 Apr-14 1,600 37%

6Marubeni Corporation

Wang Noi Combined Cycle Power Plant

Block 4, Ayutthaya Aug-11 Apr-14 1,400 21%

7

A.S. Associated Engineering

(1964) Company Limited

Collection System for Bangsue Wastewater

Treatment (BMA 7 Contract 2) #1 Sep-11 Sep-13 130 0%

8

A.S. Associated Engineering

(1964) Company Limited

Collection System for Bangsue Wastewater

Treatment (BMA 7 Contract 2) #2 Dec-11 Feb-14 570 52%

9STAS Joint Venture

S12 Station and Stabling Yard, BTS Silom

Extension Line Jan-12 Jul-13 460 13%

10

CPF Food Products Company

LimitedConstruction of Sausage Plant, Nongchok

Apr-12 Oct-12 130 0%

11

Singha Beverage Company

LimitedTank Farm Building, Nakhonpathom

Feb-12 270 14%

12

Suratthani Beverage Company

LimitedWater Filter, Beverage Plant - Suratthani

May-12 Mar-13 270 5%

13

Department of Public Works and

Town & Country Planning [DPT]

Flood Protection System Phase 2 - Omnoi,

Samutsakhon Aug-12 Feb-15 370 87%

14


Administration [BMA]

Improve Wastewater Collection System, The

Royal Chitralada Aug-12 Feb-13 15 30%

15

Tosplant Engineering (Thailand)

Co., Ltd.

Design and Construction of TS Tech

Engineering (Thailand) New Factory Jul-12 Jul-13 400 45%

16Taisei (Thailand) Co., Ltd.

Construction of Light Bulb Plant (Endo

Brand), Samutprakarn Nov-12 Jun-13 180 68%

17

CPF (Thailand) Public Company

Limited

Construction of CPF-New Distribution

Center, Chachoengsao Mar-13 Nov-13 300 93%

7,765 2,950

18

Electricity Generating Authority

of Thailand [EGAT]Mae Moh Mine, EGAT [NWR-SCBB 50:50]

Mar-09 Feb-18 8,500 58%

8,500 4,930

SUB TOTAL===>

Joint Venture

SUB TOTAL===>

[last update 30/04/2013] [Unit : Million Baht]

16

Current Backlog (Unsigned Contract)

Item Owner Project Description Start End Total

Value Remaining

1



Improve Wastewater Pipe System Phase 2

Part 1 4 Month 25 100%

2



Improve Wastewater Pipe System Phase 2

Part 2 7 Month 60 100%

3


Administration [BMA]Drainage Tunnel under Bangsue Canal

2,400 100%

4



Improve Wastewater Treatment System,

Thaweewattana Royal Palace 7 Month 30 100%

5



Wastewater Treatment System, Dechochai

Palace 4 Month 40 100%

6



Improve Road and Drainage System,

Dechochai Palace 100 Day 50 100%

7

Singha Beverage Company

Limited

Bottling Plant Building (Extension),

Nakhonpathom Jan-13 Oct-13 310 100%

8Department of Highways [DOH]

Construction of Bypass from Highway No.3

Section 3 990 Day 1,200 100%

9Wat Khao Sukim Pagoda - Fourth Floor, Chanthaburi

Mar-13 Jan-14 60 100%

10

Metropolitan Waterworks

Authority [MWA]

Underground Pipe in Ratchadaphisek Rd.,

Kamphaengphet Rd. and Phaholyothin Rd.

(Additional Work) Jan-13 Jul-13 6 100%

4,181 4,181

20,446 12,061

[last update 30/04/2013] [Unit : Million Baht]

Note

- Joint Venture [JV] Project are Presented Only NWR's Portion

- Total Value is roundup

SUB TOTAL===>

GRAND TOTAL===>

17

Backlog Type & Expected Gross Margin

Future projects are to be focused on high-margin works in which the company has competitive edge

Earth Work

Building

Infrastructure

Industrial

Tunnel

Marine

Company’s expertise & Core focus of ’13 & ’14

Expected Gross Margin By Project Type Expected Total Backlog Composition by Project Types

18

New Project Engagement

Note*: Potential new project engagement is subject to other factors

‘13 Target New Project Engagement by Type New Project Engagement (THB mm)

5,959

11,444

2,202

4,0324,799 4,915 5,354

8,0009,000

2006 2007 2008 2009 2010 2011 2012 2013F 2014F

19

New Projects Awarded in 2013

Project owner Contract Value Note

(THB mm)

1. Bottling Plant Singha Beverage 310 Unsigned#7

2. New Distribution Center CPF 300 Signed#17

3. Bypass from Highway no.3 DOH 1,200 Unsigned#8

4. Pagoda – Fourth Floor Wat Khao Sukim 60 Unsigned#9

5. Underground Pipe MWA 6 Unsigned#10

6. Logistic Warehouse Oishi 280

7. Shopping Mall K.E. Land 730

8. Baranee Romklao Mana Patanakarn 500

TOTAL 3,386

20

Marketing

Marketing

21

New Businesses

New Businesses

22

New Business - Property Development

ISSI Condominium The Issara Ladprao

Based on its success from CIN, the Company will selectively invest in more property projects that provide both attractive margins and synergies with its current business

• Modern high end condominium on ladprao road

• JV with Charn Issara Development PCL (CI:NWR 60:40)

• Project revenue THB 2,700 mm

• Total 561 units

• 90% sold

• 65% transferred

• 25% transfer this year

• Modern condominium on Suksawat road

• JV with Charn Issara Development PCL (CI:NWR 60:40)

• Project revenue >THB 1,800 mm

• Total 892 units

• Unit area: 21-55 m2

23

New Business - Property Development

Baranee Romklao Villa Baranee

• The housing project on Rangsit Klong 3 Road

• 100% owned by NWR

• Expected project revenue THB 600 mm

• Total 198 units

• Total land 35-3-1 rais

• The housing project on Romklao Road

• A subsidiary 99% owned by NWR (Mana

Patanakarn Company Limited) • Expected project revenue THB 800 mm

• Total 94 plots

• Total land 22 rais

24

Warrant Summary

Warrant Summary

25

สรปุสาระส าคญัของใบส าคญัแสดงสทิธ ิ(NWR-W1)

รายละเอยีด

ชือ่หลกัทรพัย ์ • NWR-W1

อตัราเสนอขาย • 8 หุน้สามญัตอ่ 1 ใบส าคญัแสดงสทิธ ิทีร่าคา 0 บาท (Rights Offering)

ราคาใชส้ทิธ ิ • 2.20 บาทตอ่หุน้

อตัราใชส้ทิธ ิ • 1 ใบสามญัแสดงสทิธติอ่ 1 หุน้สามญัของบรษัิท

วนั XW • 21 มถินุายน 2556

อายขุองใบส าคญัแสดงสทิธแิละระยะเวลาการใช้

สทิธ ิ

• อาย ุ1 ปี • ใชส้ทิธไิดใ้นวนัท าการสดุทา้ยของทกุๆ 3 เดอืนตัง้แตว่ันออกจนถงึวันหมดอาย ุ(26 กนัยายน 2556, 26 ธนัวาคม 2556, 26 มนีาคม 2557 และ 26 มถินุายน 2557)

26

Q&A Session

Q&A Session

27

Thank You

Thank You

set: opportunity day, 12 june 2013 - listed...

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