Tipco Asphalt Public Co. Ltd. · SET:TASCO
Tipco Asphalt Public — Q2 2015 Earnings Presentation
23 slides from Tipco Asphalt Public's earnings presentation, Sep 14, 2015
Slide 1: Tipco Asphalt Public Company Limited (TASCO) Q2 2015 Opportunity Day
Tipco Asphalt Public Company Limited (TASCO) Q2 2015 Opportunity Day 14th September 2015 บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited
Slide 2: Disclaimer
Disclaimer This presentation material has been prepared solely for informational purposes only. TASCO is furnishing it solely for use by prospective investors / analysts in the proposed event. TASCO makes no representations or warranties as to the accuracy or completeness of such information. By acc
Slide 3: Agenda
Agenda 1 Q2 2015 Highlights 2 Q2 Performance Highlights 3 Future Outlook 4 New Mission บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited 2
Slide 4: Highlights: Volume & revenue
Q2 2015 Highlights: Volume & revenue Volume Revenue Unit: Mil. Ton Unit: Bil. Baht 2.50 60.0 Revenue Volume 2.03 50.0 2.00 1.33 40.0 1.50 1.25 1.09 30.0 1.00 45.7 37.6 20.0 Gross Profit vs. Net profit 33.9 0.50 18.8 10.0 Unit: Bil. Baht 0.00 0.0 4.0 Gross Profit Net Profit 3.5 2012 2013 2014 H1 2015
Slide 5: Highlights: Key ratios
Q2 2015 Highlights: Key ratios (Unit : %) ROE* (Unit : %) ROA* 50.3% 23.9% 15.2% 38.2% 12.3% 34.0% 8.0% 8.8% 6.4% 6.0% 21.3% 21.4% 2010 2011 2012 2013 2014 Q1 Q2 15.5% 17.2% 2015** 2015** * Based on www.set.or.th ** Annualized based on last 12 months profit interest and tax (Unit : Baht/share) Divid
Slide 6: Highlights: TASCO Shares Trading Statistics
Q2 2015 Highlights: TASCO Shares Trading Statistics 8 Sep 2015 30 June 2015 31 Dec 2014 31 Dec 2013 No. of ordinary shares (‘000 shares) 1,542,931 1,540,397 153,277 152,580 Par value (Baht/share) 1 1 10 10 Market Cap (THB million) 39,730 35,275 9,963 7,781 Price (Baht/share) 25.70 22.90 6.54/ 5.14/
Slide 7: Highlights: Higher credit rating
Q2 2015 Highlights: Higher credit rating Reflect improvement in debt and improved profitability • Stronger Credit Metrics • Strong Domestic Market Position From BBB+(THA) to A- (THA) • Geographic Diversification • Exposure to Volatile Oil but managed by efficient hedging tool TASCO - FTSE SET Mid Ca
Slide 8: Highlights: Crude, Refinery, Marine
Q2 2015 Highlights • Brent price increased from USD55 and stabilized above USD63 per Crude barrel during Q2 • Procure more crude cargoes under long term crude supply agreement to support export sales • Benefited from stable crude price range compared to Q2 2014 when it was highly volatile at above U
Slide 9: Highlights: Domestic and International Market
Q2 2015 Highlights Domestic Market • Strong government budget disbursement spilled over into Q2 2015 resulted in 22% growth compared to Q2 2014 • Strong growth was driven by Asphalt Cement and PMA International Market • Consistent strong growth in China, Indonesia, Malaysia, Australia and Vietnam re
Slide 10: Highlights: Total sales volumes
Q2 2015 Highlights: Total sales volumes Sales volume Sales volume concentration by market Unit: Mil tons Unit: % Domestic International 2.03 64% 84% 84% 85% 0.66 0.52 0.43 36% 16% 16% 15% Q2/2014 2014 Q1/2015 Q2/2015 Q2/2014 2014 Q1/2015 Q2/2015 • Total sales volumes in Q2/2015 increased 27% • Due t
Slide 11: Asphalt Volume & Asphalt revenue structure
Asphalt Volume & Asphalt revenue structure Asphalt Volume by market Main International markets Unit: % Domestic International 2.03 Mil tons 0.43 Mil tons 0.66 Mil tons 1.09 Mil tons China 64% 84% 85% 77% Indonesia 36% 16% 15% 23% 2014 Q1 2015 Q2 2015 H1 2015 Asphalt Revenue (Exc. Non asphalt & servi
Slide 12: International asphalt market selling price vs Ice Brent
Q2 2015 Highlights: International asphalt market selling price vs Ice Brent USD/Barrel 120 109 112 Avg. asphalt selling price 106 103 Ice Brent 100 95 86 80 70 67 64 63 63 58 55 54 60 53 53 87 87 86 85 87 88 87 82 40 62 65 64 60 60 58 53 57 20 0 • Asphalt prices moved in line with crude price บริ ษท
Slide 13: Performance Highlights: Sales & Services Revenue
Q2 2015 Performance Highlights: Sales & Services Revenue (Unit : THB Million) Sales & services Revenue • Sales and services stood at Baht 10,488 45,727 million, reflecting a decrease of 7% from the same period last year. • This decrease was mainly attributable to the drop in selling price in line wi
Slide 14: Performance Highlights: Operating Gross Profit
Q2 2015 Performance Highlights: Operating Gross Profit (Unit : THB Million) Operating Gross Profit • This is the highest ever quarterly gross 2,005 profit margin of Baht1,908 million (after 1,908 hedging loss) mainly attributable to higher asphalt prices arising from strong demand 1,572 in export ma
Slide 15: Performance Highlights: EBITDA & Net Profit
Q2 2015 Performance Highlights: EBITDA & Net Profit (Unit : THB Million) EBITDA 2,630 • The Group cashflow generated from operations recorded the highest EBITDA 1,902 of Baht 1,902 million compared to Baht 43 million in the corresponding quarter in 1,346 2014. This has significant positive impact to
Slide 16: Performance Highlights: Debt to Equity Ratio
Q2 2015 Performance Highlights: Debt to Equity Ratio ST loan vs Current asset Unit: THB million ST loan Current asset • All the crude financing short-term 12,320 borrowing was fully repaid within Q2 due to strong cashflow generated from 9,423 8,901 8,409 operations. The Net current ratio 7,488 impro
Slide 17: Future outlook - Crude
Future outlook - Crude Crude • Crude price range is expected from USD 60 – 90 per barrel from 2016 – 2019 • With projected level above, company still benefit Source: World Bank Commodity Forecast Price data, July 2015 Source: EIU Economic and Commodity Forecast, July 2015 บริ ษทั ทิปโก้แอสฟัลท์ จำกั
Slide 18: Future outlook – Refinery and marine
Future outlook – Refinery and marine Refinery • With almost 100% refining capacity utilization, the Group continued to enjoy high efficiency in fuel consumption and production cost • Maintain high reliability at 99.8% Marine • New ship is expected to generate revenue • Tightness of asphalt vessel av
Slide 19: Future Outlook – world asphalt demand
Future Outlook – world asphalt demand • Global demand of asphalt is projected to rise 3.6% annually through 2017 to 121 million tons. Asia remains the growth area • China is expected to surpass USA in 2017 Russia Europe 2005: 4.0 (3.8%) 2005: 24.5 (23.2%) 2012: 4.9 (5.2%) Americas & 2012: 17.1 (18.0
Slide 20: Future outlook – domestic Market
Future outlook – domestic Market Thailand road & related budget Unit: Mil THB Fiscal Additional Growth 141,974 126,265 40,000 96,661 419% 7,700 126,265 101,974 88,961 24% 15% 2014 2015 2016 Unit: Mil. THB Amount Amount % Amount %1/ Department of Highway 52,759 86,378 64% 79,405 -8% Department of Rur
Slide 21: Future outlook – International market
Future outlook – International market • 2016 asphalt import demand is expected to be around 4 million tons Source: Bitumen Media Conference 2015 • In 2016, Rp 28.3 trillion (USD 1.98 billion) for new road and Rp 17.9 Trillian (USD 1.25 billion) for road maintenance • Asphalt import volume is expecte
Slide 22: Future outlook – International market
Future outlook – International market • The Government’s $50 billion infrastructure commitment is improving road and rail linkages in every state for 2020 Source: Australia budget 2015 • According to a report released at the conference by the Bank for Investment and Development of Vietnam, only 32%
Slide 23: Mission 2020
Mission 2020 2015 2020 To be a well-recognized To be a globally preferred Mission integrated asphalt and leading asphalt focused company in Asia Pacific petroleum related product company บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited 22
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