Ch. Karnchang Public Co. Ltd. · SET:CK

Ch. Karnchang Public — Investor Presentation (June 2012)

52 slides from Ch. Karnchang Public's investor presentation, June 2012

  1. Slide 1: CH. Karnchang Company Presentation Q1-2012

    A Towards ~wH Year CH. Karnchang Public Company Limited Building a better life Company Presentation Q1-2012

  2. Slide 2: Disclaimer

    DISCLAIMER The materials, including graphic, pictures and information, are furnished by CH. Karnchang PLC for your reference only. In addition, all information including assumptions, future concerns and current financial figures are based on the company’s point of views that may produce different re

  3. Slide 3: Agenda

    AGENDA INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  4. Slide 4: Introduction

    BUILDING A BETTER LIFE INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  5. Slide 5: CK: 40 Years Milestone

    5 CK : 40 YEARS MILESTONE 1972‐1982 The Foundation and Development of Expertise and Teamwork 1972 Founding of CH. Karnchang Company Limited 1981 Founding of CH. Karnchang –Tokyu Company Limited 1982 Construction of Koomklao Building, Bhumibol Adulyadej Hospital 1983‐1992 Large‐Scale Infrastructure C

  6. Slide 6: CK: Vision / Mission

    4 6 CK : VISION / MISSION TO BE THE LEADER IN CONSTRUCTION BUSINESS AND THE PRE‐EMINENT VISION AND COMPREHENSIVE BASIC INFRASTRUCTURE DEVELOPER IN THE REGION 1. DELIVER QUALITY WORK FOR OUR CUSTOMERS WHILE COMMITTED TO CREATING WORK THAT CONTRIBUTES TO THE SOCIETY AND COUNTRY WITH GOOD RETURNS TO OU

  7. Slide 7: Business Structure (Two Core Businesses)

    5 7 BUSINESS STRUCTURE (TWO CORE BUSINESES) CONTRACTOR DEVELOPER & OPERATOR CONSTRUCTION BUSINESS INFRASTRUCTURE INVESTMENT Building Road/Expressway Mass transit Airport TRANSPORTATION WATER WORK POWER (15.15 %) (30.04 %) (38.00%) (54.67%) (24.61 %) Energy Harbor Water Treatment Dam (50.00 %) Plant

  8. Slide 8: A Leading Thai Construction Company

    6 8 A LEADING THAI CONSTRUCTION COMPANY PROVEN TRACK RECORD Value Value Projects (Bt mn) Period Projects (Bt mn) Period Mass Transit: Energy § Blue Line Tunnel and Stations Construction 23,900 1996–2004 § SBIA Hydrant Network Project 776 2001‐2004 § Blue Line Initial System Project (Track work) 3,02

  9. Slide 9: CK at a Glance

    97 CK AT A GLANCE CK OVERVIEW BENEFITS TO SHAREHOLDERS As of Mar 31, 2012 (Y) As of Mar 31, 2012 Ticker CK Issued warrant to the existing shareholders and 2003 directors and employees as apportioned into Par Value Baht 1 (Per Share) 210,000,000 & 52,500,000 shares. Sector Property development 2004 P

  10. Slide 10: CK Highlights

    8 10 CK HIGHLIGHTS TOP TIER CONTRACTOR IN THAILAND CK is always classified as a class 1 contractor for both government and state enterprises SUSTAINABLE GROWTH : Projects and Investments with contribution to society : Selective backlog to optimize margin : Risk Diversification : Comparative Advantag

  11. Slide 11: Construction Business

    BUILDING A BETTER LIFE INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  12. Slide 12: Construction Business Strategies & Policies

    11 CONSTRUCTION BUSINESS 12 STRATEGIES & POLICIES STRATEGIES POLICIES Select projects by concentrating on project types, project 1 value and profitability to generate high returns to Main contractor shareholders. 1 Utilize CK comparative advantages for future business growth ‐ Experience ‐ Sufficien

  13. Slide 13: Financial Highlights

    12 13 FINANCIAL HIGHLIGHTS As of Mar 31, 2012 2008 2009 2010 2011 2012 (3 m) Current Assets (Bt mn) 11,021 13,590 13,989 22,109 24,222 Non Current Assets (Bt mn) 14,851 15,879 16,481 14,530 15,648 Total Assets (Bt mn) 25,873 29,470 30,470 36,640 39,871 Current Liabilities (Bt mn) 10,561 10,447 11,10

  14. Slide 14: CK: Current Backlogs

    14 14 CK : CURRENT BACKLOGS Current Projects ( As of Mar 31, 2012) Period Value Backlog Progress Value (MB) (MB) (E) Project Awaiting Contract Period (MB) (A) 1. Education Center & Environment Preservation 08‐12 2,379 19 99.2% Signing Construction Project (*) 1. Si Rat – Outer Bangkok Ring 2012 22,5

  15. Slide 15: Backlog Revenues (Major Projects)

    15 Backlog Revenues (Major Projects) Value Years Projects (MB) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Xayaburi : A Run­off­river Hydropower 76,000 Purple Line Contact 1 13,976 Blue Line Contact 2 9,988 Blue Line Contact 5 4,672 Green Line Contact 1 13,167 New Tobacco Plants 4,61

  16. Slide 16: CK: Current Backlog (Cont'd)

    16 CK : CURRENT BACKLOG (CONT’ ED) DIVERSIFIED Diversified backlogs BACKLOGS Projects CLIENT with K‐Factor BREAKDOWN BY SECTOR (%) By projects value As of Mar 31, 2012 (%) By project value As of Mar 31, 2012 Road 100% Private Building ,Bridge Water work 10.00% Private 0.19% Private 3.90% 0.98% 23.92

  17. Slide 17: CK: Examples of Current Projects

    16 17 CK : EXAMPLES OF CURRENT PROJECT As of Mar 31, 2012 M.R.T PURPLE LINE : Contract 1 : Elevated Structure (East) Bangpa‐In Cogeneration Project (SPP) Value Bt. 13,976 mn. Value Bt. 4,550 mn. Period 09‐13 Period 11‐13 Owner Mass Rapid Transit Authority of Thailand Owner Bangpa‐In Cogeneration Lim

  18. Slide 18: Construction Industry Outlook

    BUILDING A BETTER LIFE INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  19. Slide 19: Construction Projects in 2012-2017

    18 19 CONSTRUCTION PROJECT IN 2012‐2017 Construction Projects in 2012‐2017 Government Projects PPP Projects Private Projects Mega Project Local Project Rehabilitation and Flood • Srirat – Outer Ring Road • Bang Chak Solar Farm 785,000 Million Bahts 48,400 Million Bahts Management Projects • PPP Gros

  20. Slide 20: Projects for Bidding in 2012-2014

    20 Projects for Bidding in 2012‐2014 Value Projects (MB) Dark Green Line (Mo Chit – Saphan Mai) 36,513 Pink Line (Khae Rai – Min Buri) 50,000 Light Green Line (Bearing – Samut Prakarn) ; Trackwork 4,000 Double Track (Klong 19 – Keang Koy) 11,000 Motorway 2 Routes : Bang Yai – Ban Pong – Nam Phu Ron,

  21. Slide 21: Projects in Local and Overseas Market

    19 21 PROJECTS IN LOCAL AND OVERSEAS MARKET BANGKOK MASS RAPID TRANSITS HIGH SPEED TRAIN SOLAR CELL NEW PARLIAMENT (10 LINES) (4 ROUTES) ELECTRICITY GENERATION Bt. 12,000 mb. Bt. 668,593 mb. Bt. 584,880 mb. 100 MW. SUVARNABHUMI AIRPORT PHUKET AIRPORT MOTORWAY HYDRO ELECTRIC (PHASE 2) (EXTENSION) (5

  22. Slide 22: New Mass Rapid Transit Master Plan in Bangkok

    NEW MASS RAPID TRANSIT MASTER PLAN IN BANGKOK 22 22 METROPOLITAN REGION(*) 10 LINES Line Routes Length (KM) 1. Dark Red Line Thammasat ‐ Mahachai 80.8 2. Light Red Line Siriraj ‐ Sala Ya – Taling Chan ‐ Hua Mark 54.0 3. Airport Link Don Mueng – Bangs Sue – Paya Thai ‐ Suvarnabumi 50.3 4. Purple Line

  23. Slide 23: Map of Mass Rapid Transit Master Plan

    21 MAP OF MASS RAPID TRANSIT MASTER PLAN IN BANGKOK 23 METROPOLITAN REGION (As of September 2011) 1 Thammasat – Mahachai 9 Kae Rai ‐ Min Buri 8 Taling Chan ‐ Min Buri 4 Bang Yai – Rat Burana Siriraj ‐ Sala Ya 2 Taling Chan ‐ Hua Mark Don Mueang ‐ Bang Sue ‐ Phaya Thai 3 Suvarnabhumi Bang Sue – Hua L

  24. Slide 24: Hydro Electric Projects in Laos

    28 24 HYDRO ELECTRIC PROJECTS IN LAOS Xayaburi Nam Ngum2 Nam bak No Project Total project Value Project Project Construction Energy Energy Type of Project Progression (Bt mn) (E) Developer Owner Duration (Y) (MW) (GWH/Y) 1 Xayaburi 76,000 Xayaburi LAO 7‐8 1,285 7,200 A Run‐Off‐River Construction Pow

  25. Slide 25: Infrastructure Investment

    “TOGETHER WITH OUR COUNTRY, WE DEVELOP WE CARE AND SHARE PROSPERITY” INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  26. Slide 26: Infrastructure Investment Strategies & Policies

    30 INFRASTRUCTURE INVESTMENT 26 STRATEGIES & POLICIES INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENT STRATEGIES POLICIES Target infrastructure investments with high return, long‐term potential & contribution to the 1 society 1 Enables company to be a lead contractor Explore new infrastructure i

  27. Slide 27: Complementary Infrastructure Investment

    31 COMPLEMENTARY INFRASTRUCTURE INVESTMENT 27 Remark : (1) Build Transfer Operate (2) Acquire Operate Transfer (3) Build Operate Own (4) Provincial Waterworks Authority (5) Electricity Generating Authority of Thailand (6) Provincial Electricity Authority Listed on SET (54.67%) South East Bangkok Ban

  28. Slide 28: CK: Green Construction & Responsible Corporation

    “CK : Green Construction & Responsible Corporation” INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY APPENDIX

  29. Slide 29: Corporate Social Responsibility (CSR)

    44 29 CORPORATE SOCIAL RESPONSIBILITY (CSR) 1 RESPONSIBLE OPERATION & MANAGEMENT 2 RESPONSIBLE TO SOCIETY & ENVIRONMENT • Safety first • Preserve our environment • Sites and communities around sites • Care about community • Compliance with environmental regulations • Promote education, culture and r

  30. Slide 30: Our Proud Corporate Governance Rating

    45 30 OUR PROUD CORPORATE GOVERNANCE RATING CK was rated “Very Good” in “Corporate Governance Report for Thai Listed Companies 2011” by the Thai Institute of Directors Association (IOD)) Score Range Number of Logo Description Company 90 – 100 Excellence 80 – 89 Very good 70 – 79 Good 60 – 69 Satisfa

  31. Slide 31: Our Excellent AGM Rating

    46 31 OUR EXCELLENT AGM RATING CK was rated “Excellence” in AGM Assessment of the 2011 Annual Ordinary General Meeting of Shareholders by the Thai Investors Association (TIA) Score Range Description Company 100 Excellence 90 ‐ 99 Very good 80 ‐ 89 Good 70 ‐ 79 Satisfactory 60 ‐ 69 Pass Less than 59

  32. Slide 32: Closing Summary

    47 32 CLOSING SUMMARY 1 LEADING CONSTRUCTION COMPANY IN THAILAND AND THE REGION 2 PRIME BENEFICIARY FROM CONSTRUCTION INDUSTRY GROWTH 3 MASSIVE UPSIDE POTENTIAL FROM INFRASTRUCTURE INVESTMENTS 4 EXPERIENCED MANAGEMENT WITH RPOVEN TRACK RECORD 5 BALANCED & SUSTAINABLE GROWTH FROM VARIOUS CLIENTS AND

  33. Slide 33: Agenda

    AGENDA INTRODUCTION CONSTRUCTION BUSINESS CONSTRUCTION INDUSTRY OUTLOOK INFRASTRUCTURE INVESTMENT CLOSING SUMMARY Appendix

  34. Slide 34: Concession Companies

    Concession Companies +0 Building a better life

  35. Slide 35: Bangkok Expressway Public Company Limited

    33 35 BANGKOK EXPRESSWAY PUBLIC COMPANY LIMITED BECL : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 31, 2012 n Founded in 1987 n Granted a 30‐year BTO(1) concession with the ETA(2) CK B a nk s commencing in 1990 15 .15 % 13 .9 2 n Operates the second‐stage expressway system (SES) in the pr

  36. Slide 36: BECL – Strong Contribution to CK's Performance

    34 36 BECL – STRONG CONTRIBUTION TO CK’S PERFORMANCE Source : BECL INVESTMENT HIGHLIGHT TOTAL REVENUE & NET PROFIT (Bt mn) As of May 14, 2012 12,000 Strong Revenue Net Profit 1,803 § Provides dividend income from a daily traffic 10,000 1,406 1,702 1,390 Income 1,543 1,444 volume 8,000 Contribution 6

  37. Slide 37: Bangkok Metro Public Company Limited

    35 37 BANGKOK METRO PUBLIC COMPANY LIMITED BMCL : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 9, 2012 (Record Date) § Founded in 1998 § Granted a 25‐year AOT(1) concession from MRTA(2) CK, Others § Operates 20 km. underground mass transit line (Blue 31.70% 24.61% Syntech line), beginning

  38. Slide 38: BMCL – The First Subway with Prime Routing in Bangkok

    36 38 BMCL – THE FIRST SUBWAY WITH PRIME ROUTING IN BANGKOK Source : BMCL INVESTMENT HIGHLIGHT FARE REVENUE GROWS WITH RIDERSHIP VOLUME Passengers /Day As of Apr 30, 2012 (MB) § The sole operator of the Blue line underground rail system 2500 6 Toll revenue Ridership Volume First‐Mover § Well‐positio

  39. Slide 39: Thai Tap Water Supply Public Company Limited

    37 39 THAI TAP WATER SUPPLY PUBLIC COMPANY LIMITED TTW : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 31, 2012 § Founded in 2000 § The largest privately owned tap water producer in Other CK Thailand with market share of 95% 29.32% 30.79% § Granted a 30‐year water purchase agreement BOO(1)

  40. Slide 40: TTW – Strong Cash Flow and Good Future Business Expansion

    38 40 TTW – STRONG CASH FLOW AND GOOD FUTURE BUSINESS EXPANSION Source : TTW INVESTMENT HIGHLIGHT PRODUCTION RATE § Minimum off‐take contract from PWA starting from (M3/Day) As of Mar 31, 2012 (%) Guaranteed 200,000 m3/day in 2004 TTW PTW Capacity rate (TTW) Capacity rate (PTW) Payment 450,000 109.0

  41. Slide 41: Bangpa-In Cogeneration Limited

    39 BANGPA‐IN COGENERATION LIMITED 41 SPP – SMALL POWER PRODUCER PROJECT Source : BIC BIC : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 31, 2012 Others • Founded in 2011 2.58% Bang Pa‐ • Granted a 25 year power purchase agreement BOO(1) by In EGAT (2) 19.00% CK • Generates power for 120 MW

  42. Slide 42: Xayaburi Power Company Limited

    40 42 XAYABURI POWER COMPANY LIMITED Source : Xayaburi Xayaburi : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 31, 2012 § Founded in 2011 Others 5.00% § Registered capital ~ 1,000 MB. (Par 10 Baht/Share) BECL 7.50% § Operate the hydroelectric power plant business in Lao People’s Democratic

  43. Slide 43: CK Power Limited

    41 43 CK POWER LIMITED Source : CKP CKP : COMPANY BACKGROUND SHAREHOLDER STRUCTURE (%) As of Mar 31, 2012 § Founded in 2011 Others § Registered capital ~ 9,200 MB. (Par 10 Baht/Share) 2.00% § As a holding company TTW CK § Registered capital ~ 100 MB. 30.00 % 38.00% Southeast Asia Energy : BECL § Ope

  44. Slide 44: Solar Cell Electricity Generation Companies

    42 44 SOLAR CELL ELECTRICITY GENERATION COMPANIES As of Dec 31, 2011 NAKHORN RATCHASIMA SOLAR CHIANGRAI SOLAR BANGKHENCHAI COMPANY LIMITED COMPANY LIMITED COMPANY LIMITED Founded in 2011 Founded in 2011 Founded in 2011 Operate Solar Photovoltaic Power Park 8 (MW) Operate Solar Photovoltaic Power Par

  45. Slide 45: Bangkok Mass Rapid Transit Projects

    Bangkok Mass Rapid Transit Projects

  46. Slide 46: Existing Routes of Bangkok Mass Rapid Transit Networks

    20 EXISTING ROUTES OF BANGKOK MASS RAPID TRANSIT NETWORKS Dark Red Line ‐ Expansion Purple Line ‐ Expansion Bang Sue – Rang Sit ( 26 km : 10 stations) Bang Sue – Bang Yai ( 23 km : 16 stations) Awaiting for bidding result in 2011 Under construction since 2009 Commercial operation in 2014 BMCL PLC (B

  47. Slide 47: Bangkok Mass Rapid Transit Projects – Under Construction

    23 47 BANGKOK MASS RAPID TRANSIT PROJECTS UNDER CONSTRUCTION Line Lead Routes Lengt Statio Cost Progression h (KM) n (Estimation) (Estimation) (MB) Light Red Line Bang Sue – Taling 15.26 4 8,750 Under Construction by the Uniq‐Chun Wo JV Chan since December‐2008 Completion in 2012 New additional stat

  48. Slide 48: Bangkok Mass Rapid Transit Projects – Under Bidding

    24 48 BANGKOK MASS RAPID TRANSIT PROJECTS UNDER BIDDING & ANOUNCEMENT Line Lead Routes Lengt Statio Cost Progression (Estimation) h (KM) n (Estimation) (MB) Dark Red Line Bang Sue – Rang Sit 26.0 8 52,650 JICA approved loan Contract 1 : Bidding in December 2010 JV SU (Lowest bidder) Awaiting for rec

  49. Slide 49: Bangkok Mass Rapid Transit – Red Line Bang Sue-Rang Sit

    25 BANGKOK MASS RAPID TRANSIT – RED LINE 49 BANG SUE ‐ RANG SIT Contract Details Value Progression (E) (MB) Contract 1 Construction of Bang Sue Grand Station and Depot (6 km) 34,650 JV SU (Lowest bidder) (Bidding Price) Awaiting for reconsideration of financial amount result Contract 2 Elevated Stru

  50. Slide 50: Bangkok Mass Rapid Transit – Purple Line Bang Sue-Bang Yai

    26 BANGKOK MASS RAPID TRANSIT – PURPLE LINE 50 BANG SUE ‐ BANG YAI Contract Detail Value (E) (MB) Progression Contract 1 Elevated Structures (East) 14,292 JV CKTC (Winner) Tao Poon ‐ Nonthaburi Section 12 KM. (Final price) Contract 2 Elevated Structures (West) 13,100 STEC (Winner) Phra Nangklao – Ba

  51. Slide 51: Bangkok Mass Rapid Transit – Green Line Bearing-Samut Prakarn

    27 BANGKOK MASS RAPID TRANSIT – GREEN LINE 51 BEARING – SAMUT PRAKARN Contract Details Value Progression (E) (MB) Contract 1 Construction of Bearing – Samut Prakarn and Depot (12.6 km) 14,088 CK (Winner) (Final Price) Contract 2 Track work 2,500 Bidding in 2H 2012 Source : Mass Rapid Transit Authori

  52. Slide 52: Thank You

    THANK YOU Please visit CK Website @ http://www.ch‐karnchang.co.th More Information : ck‐ir@ch‐karnchang.co.th

CH. Karnchang Public Company — Investor Presentation (June 2012) on 6ix