Tipco Asphalt Public Co. Ltd. · SET:TASCO
Tipco Asphalt Public — Q3 2016 Earnings Presentation
19 slides from Tipco Asphalt Public's earnings presentation, Nov 21, 2016
Slide 1: Tipco Asphalt Public Company Limited (TASCO) Q3 2016 Opportunity Day
Tipco Asphalt Public Company Limited (TASCO) Q3 2016 Opportunity Day 21st November 2016 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 Q3 2016 Financial performance 2 Q3 2016 Highlight 3 Acquisition in Thai Slurry Seal Co., Ltd. บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited
Slide 4: Financial Performance: Sales & Services Revenue vs. Sales Volume
Q3 2016 Financial Performance : Sales & Services Revenue vs. Sales Volume Sales & Services Revenue Unit: Mil. Baht • Sales and services stood at Baht 4,793 10,487 million, reflecting a decrease of 48.4% 9,290 9,096 8,264 from the same period of last year. This 6,604 5,500 4,793 decrease was mainly a
Slide 5: Financial Performance: Operating Gross Profit
Q3 2016 Financial Performance : Operating Gross Profit • Cost of sales and services in the 3rd quarter Operating Gross Profit 2016 stood at Baht 4,360 million or 90.96% Unit: Mil. THB 2,055 (86.70% in corresponding quarter in 2015) of 1,908 1,969 sales and services before the allowance for 1,657 dim
Slide 6: Financial Performance: EBITDA & Net Profit
Q3 2016 Financial Performance : EBITDA & Net Profit EBITDA Unit: Mil. THB • The Group cash flow generated year to 2,286 date from operations decrease to Baht 1,902 1,796 3,495 million (20% of revenue) compared 1,346 1,331 to Baht 4,579 million in corresponding 735 period in 2015 474 Q1 Q2 Q3 Q4 2016
Slide 7: Financial Performance: Debt to Equity Ratio
Q3 2016 Financial Performance : Debt to Equity Ratio Debt/Equity Ratio Total debt/Total equity LT Debt/Total equity 0.71 0.55 0.56 0.26 0.15 0.13 Q3 2015 Q2 2016 Q3 2016 • The Group’s consolidated debt to equity ratio (D/E ratio) remained low at 0.56 comparing to 0.71 in corresponding period due to
Slide 8: Financial Performance: Key Ratios and Historical Dividend
Q3 2016 Financial Performance : Key Ratios and Historical Dividend Return on Equity1/ Return on Asset2/ Unit: % Unit: % 62.4 40.6 40.8 56.1 58.7 33.8 31.8 46.150.3 25.9 23.9 34.0 33.1 15.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2015 2016 2015 1/ Return is based on sum of last 12 months net profit 2/ Return is
Slide 9: Highlights
Q3 2016 Highlights 50 SETHD ‘A-(tha)’ บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited 6
Slide 10: Q3 2016 Highlights
Q3 2016 Highlights Crude • Average daily Brent price increased from US$46.69 per barrel from July to US$47.24 per barrel at the end of September Refinery • High refining utilization and 99.8% reliability • Plant shutdown for annual maintenance 1 - 18 September 2016 Marine • High fleet utilization บร
Slide 11: Highlights: Domestic and International Market
Q3 2016 Highlights: Domestic and International Market Domestic Market • Asphalt product volume decreased by 11% as compared to Q3 2016 This was mainly because of longer rainy season than expected International Market • Despite decreases in total international sales volume growth, sales volume from I
Slide 12: Highlights: Asphalt Selling Price vs Ice Brent
Q3 2016 Highlights: Asphalt Selling Price vs Ice Brent Unit: USD/barrel 120.0 107.9 109.7 Avg. asphalt selling price Avg. Ice Brent 103.4 100.0 89.5 99.7 94.2 90.9 80.1 80.0 70.1 77.1 60.0 57.3 60.0 63.5 46.9 45.8 47.1 55.2 40.0 51.2 44.7 34.7 38.0 37.4 20.0 0.0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 20
Slide 13: Highlights: Asphalt Volume & Asphalt Revenue Structure
Q3 2016 Highlights : Asphalt Volume & Asphalt Revenue Structure Asphalt sales volume concentration by market Unit: % Main International Markets Domestic International 0.66 0.44 0.60 0.46 Mil tons Mil tons Mil tons Mil tons China 83 80 85% 72% % % Indonesia 28% 17 20 15% % % Q2 2015 Q2 2016 Q3 2015 Q
Slide 14: Business Expansion – Vision 2020
Business Expansion – Vision 2020 • 2020 Mission is “To be a globally preferred integrated asphalt & petroleum related products company” • 25% acquisition of Thai Slurry Seal Co., Ltd. (TSS) allows the Company to penetrate into road construction business Crude & Product Refining & Bulk Storage & Whol
Slide 15: The Transaction
The Transaction • TASCO has received an offer from Thai Slurry Seal Co., Ltd. (“TSS”) to subscribe TSS’s newly issued capital of 1,243,334 shares with par value of THB 100.00 per share at THB 181.00 per share • The subscription equals to 25% of total holding for a lump-sum amount of THB 225.04 milli
Slide 16: TSS overview
TSS overview “To give you long lasting paving that delivers the highest value over the longest term for lowest investment” • Established in 1985 • Pre-acquisition Registered Capital 373 million baht • One of the leading road rehabilitation contractors, specializing in conducting high performance sur
Slide 17: TWS overview
TWS overview • Established in 1965 • Registered capital 2,500 million Baht • Leading company for highway construction and rehabilitation in Thailand with 437 headcounts • TWS is certified as “Special Class Contractor”, which allows TWS to participate in large government projects tender • TWS’s clien
Slide 18: Potential synergy
Potential synergy 1. Using construction arm to introduce new high value added products/ road construction technique and boost net profit margin 2. Apply Thailand’s model into overseas subsidiaries 3. Generate additional profit from new construction business segment 18 15
Slide 19: Q&A
Q&A บริ ษทั ทิปโก้แอสฟัลท์ จำกัด (มหำชน) Tipco Asphalt Public Company Limited
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