Thoresen Thai Agencies Public Co. Ltd. · SET:TTA
Thoresen Thai Agencies Public — Thoresen Thai Agencies — FY2010 Earnings Presentation
42 slides from Thoresen Thai Agencies Public's earnings presentation, Dec 13, 2010
Slide 1: Thoresen Thai Agencies Plc. FY 2010 Analyst Presentation
Thoresen Thai Agencies Plc. FY 2010 Analyst Presentation 13 December 2010
Slide 2: Agenda
Age a Agenda I I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 2 ‐
Slide 3: FY 2010 Financial Highlights
FY Y 2010 0 0 Financial i a cia Highlights ig ig ts TTA reports t 7.12% 7 12% decline d li in i operating ti revenues to t Baht B ht 18,386.51 18 386 51 million. illi Group gross profits down by 25.79% to Baht 2,685.25 million. Group gross margin fell to 15.01% 15 01% from 18.13% 18 13% last year. y
Slide 4: Consolidated Income Statement Summary
Consolidated Income Statement Summary y B ht millions Baht illi FY 2010 FY2009 %Y YoY Y Operating revenues 18,386.51 19,795.00 ‐7.12% Gross profits 2,685.25 3,618.52 ‐25.79% SGA expenses 2,240.54 2,161.24 3.67% Operating profits 841.47 1,458.78 ‐42.32% Finance income/‐costs (1) ‐415.96 ‐252.61 64.66
Slide 5: TTA's Net Profits & Net Losses
TTA’s Net Profits & Net Losses 56 14% Decline 56.14% D li in i Full F ll Y Year N Net Profit P fi … Baht millions 1,000 897 800 600 465 451 400 353 224 185 200 99 0 ‐65 ‐200 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Source: TTA 5 ‐ TTA FY2010 Earnings Results
Slide 6: Updates on Lines of Business
Updates p on Lines of Business T Transport E Energy I f Infrastructure • Dry Bulk Shipping Operations • Mermaid Maritime PLC. (MMPLC) • Unique Mining Services (UMS) 9 Today, owner of 25 and medium‐term 9 Listed on the Singapore Stock Exchange. 9 Listed on the Market for Alternative charterer of 5 ve
Slide 7: Group Segments Earnings Results
Group oup Segments eg e Earnings Ea i g Results e u Greater Revenue Balance Across All Groups (1) Baht millions Transport Energy Infrastructure Corporate TTA Operating FY 2010 10,134 , 3,477 , 4,897 , ‐121 18,387 , Revenues 55.1% 18.9% 26.6% ‐0.7% 100.0% FY 2009 14,220 5,210 580 ‐ 215 19,795 71.8% 7
Slide 8: Agenda
Age a Agenda I I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 8 ‐
Slide 9: Transport Group: Key Drivers
Transport a po Group: oup Key ey Drivers i e Dry y Bulk Shipping pp g & Shipping pp g Services Generated Baht 969.46 million to TTA’s Bottom Line … Dry bulk shipping’s net profit improved by 25.45%: 9 More global operations resulted in higher average TCE rate of USD 12,619 12 619 per available servi
Slide 10: Transport Group: Dry Bulk Shipping Services
Transport p Group p : Dry y Bulk Shipping pp g Services D y Bulk Shipping’s Dry Shi i ’ Freight F ei ht Income I o e O Operating ti Profit P fit & Net N t Profit P fit Baht millions Baht millions 16,000 1,400 13 842 13,842 1 197 1,197 O Operating ti Profit P fit 14,000 1,200 Net Profit 12,000 1,000
Slide 11: Dry Bulk Shipping Operating Summary
Dry Bulk Shipping Operating Summary Operating Earnings per Day Improved 36% USD/Day FY 2010 FY 2009 YoY % USD/Baht Rate (Daily Average) 32 56 32.56 34 72 34.72 ‐6.22% 6 22% TCE Rate 12,619 11,127 13.41% TCE Rate of Owned Fleet 13,032 10,960 18.91% TCE Rate of Chartered‐In ‐413 167 ‐347.31% Owner Exp
Slide 12: FY 2010 Cargo Volume of 10.08 million Revenue Tonnes
FY 2010 Cargo g Volume of 10.08 million Revenue Tonnes FY 2010 FY 2009 Machine & General Machine & General Cargoes/Others Equipment Equipment Cargoes/Others 2 97% 2.97% Cement 0.03% Cement 0.16% Fertilizers 4.21% Fertilizers 1.93% 1.91% 24.99% 29.46% Steel Products Steel Products 24.60% 29.39% Agric
Slide 13: Transport Group: Business Outlook - Demand
Transport p Group: p Business Outlook Demand … We expect China to slow down its imports: 9 The continued tightening of its property market has negatively impacted steel demand. The World Steel Association is now forecasting China’s steel demand growth of 3.5% YoY in 2011 when compared to a projected
Slide 14: Transport Group: Business Outlook - Supply
Transport p Group: p Business Outlook (cont’d) Supply … The underlying threat of excess new‐builds still exists for the next few years. 9 687 vessels and 57.38 million DWT were delivered during the first 9 months of 2010; 9 351 vessels and 26.03 million DWT projected for the remaining months in 2010
Slide 15: The Current Dry Bulk Fleet – New Order Book
The Current Dry Bulk Fleet – New Order Book Equals 52 47% off C 52.47% Currentt Fl Fleett Size World W ld Current C Fleet l Totall O Order d Book k in i Oct O 2010 (incl. Delivery in Oct 2010) (will be delivered on 2010 – 2012+) No. DWT ‘000 % Breakdown DWT No. DWT ‘000 % of Current Fleet 10 25 10‐2
Slide 16: Slow Recovery of the Dry Bulk Market Over the Next Two Years
Slow Recovery of the Dry Bulk Market Over the Next Two Years TC Rate BDI $260,000 14,000 Ave rage TC Rate 2008 2009 YTD 2010 (Jan ‐ $240,000 Nov 2010) $220,000 12,000 Cape size 101,442 40,069 30,338 $200,000 Panamax 43,467 17,069 24,082 $180,000 10,000 Supramax 36,072 13,540 20,017 $160,000 Handysiz
Slide 17: Transport Group: Business Strategies
Transport Group : Business Strategies Ongoing business strategies for dry bulk shipping: 9 Increase COA and period time charters to 60% of our vessel days in FY 2011; 9 Move more capacity p y to p profitable g geographical g p areas;; 9 Ensure cost controls are emphasised; 9 Seek fleet renewal or in
Slide 18: Agenda
Age a Agenda I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 18 ‐ T
Slide 19: Energy Group: Key Drivers
Energy gy Group p : Key y Drivers Weak Offshore Service Market: Net Losses of Baht 186.67 million to TTA Mermaid Offshore Services Ltd. (MOS)’s operating losses of Baht 305.64 million: 9 Average vessel utilisation rate of 39.54% (last year 52.64%); 9 Average day rates fell by 21.73% to USD 25,213; 9
Slide 20: Energy Group: Mermaid Offshore Services (MOS)
Energy gy Group p : Mermaid Offshore Services (MOS) MOS’ Service I o e (1) Se i e Income MOS’ Operating O ti Profit M i (1) (excl P fit & Margin ( lF Forex)) Baht millions Baht millions 3 000 3,000 2,782 300 213 2,500 200 2,000 1,894 100 0 1,500 ‐100 1,000 ‐200 500 ‐300 ‐400 0 ‐500 ‐421 FY 2010 FY 2
Slide 21: Energy Group: Business Outlook & Strategies
Energy gy Group p : Business Outlook & Strategies g Subsea Vessel Utilization Improving but Rates Remain Low… Challenging market conditions expected to continue through 2011 as new‐builds continue to arrive on the market and demand remains essentially flat, forcing down rates. As oil prices stabilis
Slide 22: Energy Group: Key Drivers - Drilling
Energy gy Group p : Key y Drivers Drilling: Net Losses of Baht 61.29 million to TTA Mermaid Drilling Ltd. (MDL)’s operating loss of Baht 16.90 million: 9 Utilisation rate at 56.35%, as only MTR‐2 was working as compared to two rigs a year ago; 9 MTR‐1 ceased working as an accommodation barge for CUD
Slide 23: Energy Group: Mermaid Drilling (MDL)
Energy gy Group p : Mermaid Drilling g (MDL) MDL MDL’ss Service Income MDL’ss Operating Profit & Margin (excl Forex) MDL Baht millions Baht millions 2 500 2,500 2,213 1,000 819 2,000 800 1,500 600 1,076 400 1,000 200 500 0 0 ‐53 ‐200 FY 2010 FY 2009 FY 2010 FY 2009 MDL’s Utilisation Rate MDL’s Opera
Slide 24: Energy Group: Business Outlook & Strategies (cont'd)
Energy E e gy G Group oup : Business usi ess Ou Outlook oo & S Strategies a egies (co (cont’d)) Drilling Focus is to Reali Realize e Value and Long Term Growth from New Assets Assets… Customers’ demand for new and more efficient drilling rigs continues to grow, particularly in the jack‐ up market wh
Slide 25: Agenda
Age a Agenda I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 25 ‐ T
Slide 26: Infrastructure Group: Key Drivers & Business Outlook
Infrastructure Group p : Key y Drivers & Business Outlook UMS Showed Signs of Recovery and Contributed Baht 79 79.14 14 million to TTA UMS’ earnings were lower than that of last year: 9 Coal sales fell 5.52%, a result of lower average selling prices but higher sales volumes; 9 Gross margins for coal
Slide 27: Infrastructure Group: UMS
Infrastructure Group p : UMS UMS UMS’ Coal Sales UMS’ Gross Profit UMS Baht millions Baht millions 2,900 2,878 800 684 2,850 700 600 2,800 469 500 2 750 2,750 2,719 400 2,700 300 200 2,650 100 2,600 0 FY 2010 FY 2009 FY 2010 FY 2009 UMS’ U Operating O Profit f & Margin UMS’ Gross G Margin M i Baht m
Slide 28: Infrastructure Group: Business Strategies
Infrastructure Group p : Business Strategies g UMS: Complete Granular Project and Expand Market Size by Fostering Conversions to Coal Boilers … UMS’ ongoing business strategies: UMS 9 Increase marketing efforts to existing and new clients on the back of economic recovery; 9 Complete granular project
Slide 29: Infrastructure Group: Key Drivers - Baconco
IInfrastructure as uc u e Group G oup : Key ey Drivers i es Baconco Contributed Earnings of Baht 211 211.71 71 million to TTA Baconco sold 151,973 metric tonnes (mt) of fertilisers in FY2010. 9 The Th main i seasons for f fertiliser f tili sales l are September S t b to t December D b and d March M
Slide 30: Infrastructure Group: Business Strategies
Infrastructure Group p : Business Strategies g Baconco’s ongoing business strategies: 9 Concentrate on fertiliser special products, where competition is less and thus higher margins; 9 Improve our superior quality fertiliser production further; 9 Maintain high quality warehouse services to demand hi
Slide 31: Agenda
Age a Agenda I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 31 ‐ T
Slide 32: Capital Structure
Capital api a Structure u ue Leverage Remains Low Baht millions FY 2010 FY 2009 Net operating CF 1,550.23 5,000.69 Cash and short term investment 10,414.49 11,822.56 Gross debt 14,238.77 , 6,986.79 , Net cash/‐ debt ‐3,824.28 4,835.77 Sha eholde ’ eequity Shareholders’ uity 31 532 14 31,532.14 31 09
Slide 33: Credit Metrics & Liquidity Profile
Credit Metrics & Liquidity Profile Debt Servicing Capability Remains Strong Baht millions FY 2010 FY 2009 Shareholder’s equity 31,532.14 31,091.44 Net book value per share 44 54 44.54 43 91 43.91 Adjusted EBITDA* 2,970.84 3,455.32 Adjusted EBITDA margin (%) 15.90% 17.29% Gross debt/Adjusted EBITDA*
Slide 34: QoQ Changes in Working Capital and Debt
QoQ Changes a ge iin Working o i g Capital api a aand Debt e Demand for Working Capital and Debt Levels Have Fallen Further … Baht billions 7.0 5.0 4.1 3.0 1.6 2.1 1.7 06 0.6 1.0 ‐0.3 ‐0.1 0.0 ‐0.2 ‐0.02 ‐1.0 ‐0.2 ‐1.0 ‐1 0 ‐1 2 ‐1.2 ‐1.2 ‐1.8 ‐3.0 ‐2.3 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 1
Slide 35: TTA Committed Capital Investments
TTA Committed Capital p Investments Initiatives from Committed New Assets are Met Strategy Project Project Cost Spending up Capex Capex t to C Committed itt d C Committed itt d 30 Sep 10 FY 2011 FY 2012 Dry bulk New build USD 142.97 USD 31.61 USD 90.57 USD 20.79 shipping fleet vessels from million m
Slide 36: Funding Facilities & Debt Maturity
Funding g Facilities & Debt Maturity y Cash for Funding Capex Capex, Assets Acquisition and Expansions Cash levels exceed Baht 8,458.19 million equivalent to 17.31% of total assets. USD 27.63 million available under committed USD 27.81 million revolving g term loan facilities. USD 550.88 million ava
Slide 37: Long Term Debt Maturity Profile Breakdown by Business Group
Long Term Debt Maturity Profile Breakdown by Business Group B h millions Baht illi Wi hi 12 Months Within M h 12‐24 Months M h >24 Months M h T l Total As of 30 Sep 2010 Bonds 1,048 1,207 4,000 6,255 TTA 1,048 1,207 4,000 6,255 UMS ‐ ‐ ‐ ‐ Mermaid ‐ ‐ ‐ ‐ Bank Debt 1,106 869 4,352 6,327 TTA 117 115
Slide 38: Agenda
Age a Agenda I. FY 2010 Financial Highlights II. Transport Group • Key Drivers • Business Outlook & Strategies III. Energy Group • Key Drivers • Business Outlook & Strategies IV Infrastructure Group IV. • Key Drivers • Business Outlook & Strategies V. Capital Structure & Investments VI. Q & A 38 ‐ T
Slide 39: Appendix
Appe i Appendix I. Deliveries and Order Book II. Deliveries by Vessel Size in 2009 and 2010 III. Deliveries in Greenfield Yards 39 ‐ TTA FY2010 Earnings Results
Slide 40: Deliveries and Order Book
Deliveries and Order Book Source: Fearnley 40 ‐ TTA FY2010 Earnings Results
Slide 41: Deliveries by Vessel Size in 2010 & 2009
Deliveries by y Vessel Size in 2010 & 2009 Source: Fearnley 41 ‐ TTA FY2010 Earnings Results
Slide 42: Deliveries in Greenfield Yards
Deliveries in Greenfield Yards • Statistics St ti ti based b d on 120 “Greenfield” “G fi ld” yards in China, S. Korea, Vietnam, and India • Only a few of them delivered any ships before 2007 • Strong growth since 3Q09 • Annual average deliveries: o 2007: 2007 268,000 268 000 DWT per month h o 2008:
Thoresen Thai Agencies — FY2010 Earnings Presentation on 6ix