Thoresen Thai Agencies Public Co. Ltd. · SET:TTA
Thoresen Thai Agencies Public — Thoresen Thai Agencies — Q3 2009 Earnings Presentation
29 slides from Thoresen Thai Agencies Public's earnings presentation, Aug 17, 2009
Slide 1: Q3/2009 Results
Q3/2009 Results Thoresen Thai Agencies PLC
Slide 2: Agenda
Agenda I. Q3/2009 Financial Results II. Appendix 2 - TTA Q3/2009 Results
Slide 3: Q3/2009 (9M/2009) Financial Highlights
Q3/2009 (9M/2009) Financial Highlights TTA reports 13.52% QoQ increase in revenues to Baht 4,855.02 Million (Bt 15,809.71 Million) Gro p gross profits up Group p 49.83% 49 83% QoQ to Baht 1,673.79 1 673 79 Million (Bt 4,319.97 4 319 97 Million) Group gross margin increased to 34.48% (27.32%) Net pro
Slide 4: Key Drivers
Key y Drivers Core Businesses: Improved Market Demands Improved net profit in dry bulk shipping due to increases in cargo volume and better average g TC rates. Strategy: TTA continues to manage balance of owned fleet and chartered-in vessels to reap current favourable rates. Subsea activities have r
Slide 5: Key Drivers (cont'd)
Key Drivers (cont’d) (cont d) Group: Optimising Financial Performance Unrealised foreign exchange losses result from a large amount of cash and short term investments versus smaller foreign exchange gains from loans loans. Cash level remains high and credit facilities are still available for synergy
Slide 6: Business Outlook
Business Outlook D Dry B Bulk lk Shi Shipping: i E Expectt TC R Rates t tto F Fall ll Sli Slightly htl Demand: a) With enormous iron ore inventories and rising iron ore prices, China is unlikely to continue with its heavy imports of iron ore. b) Depressed industrial production all over the world has
Slide 7: Business Outlook (cont'd)
Business Outlook (cont (cont’d) d) Off Offshore h S Services: i R Recovery off S Subsea b E Engineering i i A Activities ti iti Demand: New and existing sub-sea infrastructure and expansion activities increase as most projects are being resumed. resumed Supply: Limited competition in terms of techni
Slide 8: Business Outlook (cont'd)
Business Outlook (cont (cont’d) d) Drilling: Utilisation of Existing Rigs May Fall but Should be Supported by Newbuild Rig KM-1 Demand: a) Key oil and gas companies have started to ascertain rig availability and technical suitability to meet their near term project demand, as oil prices have improve
Slide 9: Consolidated Income Statement Summary
Consolidated Co so dated Income co e State Statement e t Su Summary ay Net profit increased 255.61% to Baht 352.62 million EPS up 257.14% to Baht 0.50 (Baht Million) Q3/2009 Q2/2009 Operating Revenues 4,855.02 4,276.94 Gross profit 1,673.79 1,117.16 GPM (%) 34.48% 26.12% SGA expenses 509.81 483.16 G
Slide 10: Group Segments Results
Group p Segments g Results Contributions from Well Balanced and Diversified Earnings Base Declining tonnage ownership 9M/2009 Net Profit Contribution ( (Baht Dryy bulk Offshore Shipping pp g TTA Group(1) (holding Million) shipping services services Offshore company Services and inter- Group Revenues
Slide 11: Group Net Profit
Group G oup Net et Profit o t Rebound in Profit due to Optimal Management of Dry Bulk Shipping and Higher Utilisation Rate of Subsea Assets (Baht Million) 3,000 2,582 2,500 2,104 2,034 2,056 2,000 1,500 897 1 000 1,000 353 500 99 0 Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 11 - TTA Q3/
Slide 12: Liquidity Profile
Liquidity Profile Cash and Liquidity Remain High Cash Conversion Cycle decreases to 9 days ((Baht Million)) Q3/2009 Q2/2009 Cash and short term investments 11,684.37 11,648.61 Current ratio (xs) 4.25 4.25 Adjusted cash conversion cycle (days) 9 22 A/R 40 52 A/P 31 30 Adjusted working capital / Reven
Slide 13: Changes in Working Capital and Debt QoQ
Changes in Working Capital and Debt QoQ Maintain Active Management of Working Capital to Maximize Cash (Baht Billion) 8.0 6.9 6.0 4.0 2.0 1.6 0.7 0.6 -0.2 -1.0 0.0 0.4 0.2 -0.02 -0.9 09 -0 7 -0.7 03 -0.3 -0 2 -0.2 -1.2 -2.0 Q1/2008 Q2/2008 Q3/2008 FY 2008 Q1/2009 Q2/2009 Q3/2009 Working Capital Debt
Slide 14: Capital Structure
Capital Cap ta St Structure uctu e Sufficient Cash to repay all interest – bearing Group debts (Baht Million) Q3/2009 Q2/2009 Gross debt 6,427.47 6,586.33 Cash and short term investment 11,684.37 , 11,648.61 , Net Cash 5,256.90 5,062.28 Shareholders’ equity 30,770.51 30,580.45 Debt / Total capitalis
Slide 15: Credit / Funding Facilities
Credit C ed t / Funding u d g Facilities ac t es Primarily Use of Cash for Funding Capex Capex, Assets Expansion and Diversification Cash levels exceed Baht 10,794.25 million equivalent to 26.67% of total assets US$ 36.80 million available under committed US$ 36.80 million revolving term loan facili
Slide 16: Debt Maturity Profile
Debt Maturity Profile Conservative and Diversified Debt Profile: 36.32% of group debt from commercial banks 62.98% raised in debt capital markets Long term Debt Profile with 67.67% Long-term 67 67% of Total Debt with Maturities over 18 months (in Baht Millions) Within 12 Months 12-24 Months >24
Slide 17: Credit Metrics
Credit C ed t Metrics et cs Well Managed Debt Servicing Capability (Baht Million) Q3/2009 Q2/2009 Shareholder’s equity 30,770.51 30,580.45 Net book value per share 43.46 43.19 Adjusted EBITDA* 1,199.07 1 199 07 652.72 652 72 Adjusted EBITDA margin (%) 24.70% 15.26% Gross debt/Adjusted & Annualised E
Slide 18: TTA 2009 Capital Investments
TTA 2009 Capital Investments Ensure Strong Growth Initiatives from New Assets Strategy Project Project Cost Spending up to 30 Jun 09 Dry bulk shipping Newbuild vessels from US$ 181.76 million US$ 32.46 million fleet renewal Oshima and Vinashin Subsea fleet Newbuild vessels from Jaya US$ 117.50 milli
Slide 19: Agenda
Agenda I. Q3/2009 Financial Results II. Appendix 19 - TTA Q3/2009 Results
Slide 20: TTA achieved TC rate performance of US$13,235 per vessel day
TTA achieved a TC rate performance of US$ 13,235 per vessel day in Q3/2009 Actual TC Rates Actual Vessel Days 6,300 27,000 5,300 23,000 4,300 19,000 3 300 3,300 15 000 15,000 2,300 11,000 7,000 1 300 1,300 3,000 300 Jun-08 Jun-09 Mar-08 Mar-09 Dec-07 Sep-08 Dec-08 -1,000 J un-08 J un-09 Dec-07 Mar-0
Slide 21: Cargo volumes in Q3/2009 increased 8.22% from Q2/2009
Cargo volumes in Q3/2009 increased 8.22% from Q2/2009 2nd Quarter 3rd Quarter Manchinery & General Manchinery General Equipments Cargoes/ & Cargoes/ 0 09% 0.09% Others q p Equipments Others Cement 3.01% 0.03% 2.69% 1.25% Fertilizer Cement 22.44% 4.81% Fertilizer Steel Steel 25.59% Products Products
Slide 22: Total cargo volume at 9.2 million revenue tonnes for 9M 2009
Total cargo volume at 9.2 million revenue tonnes for 9M iin 2009 Summary of Cargo commodities in October 2008 – June 2009 Machinery & General Equipment Cargoes/Others Cement 0.19% 2.50% 2.04% Fertilizer 23.93% Steel Products 29.03% Agricultural Products 10.85% C l Coal 9.06% Paper /Wooden Products 8
Slide 23: Dry bulk freight rates have increased for four months
The dry bulk freight rates have increased for the past four months, months but will be capped due to rising newbuild deliveries T C Rate R t BDI $260,000 14000 Average TC 2005 2006 2007 2008 2009 Jun-09 15/7/09 $240,000 Rate Capesize 46,694 44,314 112,387 101,442 36,559 80,499 59,836 12000 $220,000
Slide 24: The current dry bulk fleet
The current dry bulk fleet World Current Fleet Total Order Book in June 2009 Size (incl. Delivery in June 2009) (will be delivered on 2009 – 2011+) (DWT 000’s) No. DWT ((MM)) % No. DWT ((MM)) % of Current Fleet 10-40 2,816 74.99 17.39% 719 23.18 8.46% 40 60 40-60 1 740 1,740 84 91 84.91 19 69% 19.69
Slide 25: New build order book equals 63.50% of dry bulk fleet
The current new build order book equals to 63 0% off the 63.50% h totall dry d bulk b lk fleet fl Size (DWT 2009 2010 2011+ 000’s) No. DWT ((MM)) No. DWT ((MM)) No. DWT ((MM)) 10-40 232 7.23 230 7.26 257 8.69 40-60 261 14.47 319 18.03 286 16.20 60-100 116 9.64 271 22.17 302 24.17 100-150 11 1.24 26
Slide 26: Increasing vessel supply will create supply/demand imbalances
The increasing supply of vessels will create significant supply/demand imbalances and are expected to keep increasing until 2013 Supply/Demand balance (m DWT) Fl t development Fleet d l t (m ( DWT) Period Average Total Surplus Average Supply Demand (Deficit) 2005 333.0 285.6 47.3 2006 347.2 312.5 34
Slide 27: Dry Bulk Net Growth for 7 Months 2009
Dry Bulk Net Growth for 7 Months 2009 DWT' 000 Delivered Demolition Net Growth 2009 No. DWT (MM) No. DWT (MM) No. DWT (MM) Jan 49 3,356 44 2,447 5 909 Feb 33 2,427 41 1,549 (8) 878 Mar 24 1,878 36 1,709 (12) 169 Apr 35 2,782 19 630 16 2,152 May 22 1,463 27 1,203 (5) 260 Jun 39 3,452 , 9 328 30 3,124
Slide 28: Over supply of vessels is apparent in all vessel sizes
Over supply of vessels is apparent in all vessel sizes i Million DWT Million DWT 180.00 14.00 250 50 160.00 45 12.00 200 40 140.00 10.00 35 120.00 150 30 100 00 100.00 8.00 25 80.00 6.00 100 20 60.00 15 4.00 40.00 50 10 2.00 20.00 5 0 0 0.00 0.00 3 2003 4 2004 5 2005 6 2006 7 2007 9 2009 F 2008F F 2
Slide 29: Freight rates have rebounded but expected to be capped
Freight rates have rebounded but are expected to b capped be d att currentt levels l l TC Rate TC Rate $50,000 $70,000 65,420 $45 000 $45,000 45,000 $60,000 $40,000 55,830 57,330 $35,000 $50,000 62,500 33,000 $30,000 47,250 $40,000 31,870 $25,000 28,500 27,600 $30,000 $20,000 $15,000 10,800 11,125 1
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