Corporate Presentation...2017/03/15 · Corporate Presentation March 2017 1 Strictly Private and...
Transcript of Corporate Presentation...2017/03/15 · Corporate Presentation March 2017 1 Strictly Private and...
Strictly Private and Confidential
Corporate Presentation
March 2017
1
Strictly Private and Confidential
‹#›
“No. 1 Mining Contractor in TCLMV”
With 34 Successful Years of Heavy Mining
Main Business:
Founded:
Registered capital:
No. of Shares:
Listing:
Full-service Mining Contractor
1970
1,150 Million Baht
1,150,000,000 Shares
October 26, 2016
Strictly Private and Confidential
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“No. 1 Mining Contractor in TCLMV”
With 34 Successful Years of Heavy Mining
Operates 2 Largest Coal Mines: Mae Moh & Hongsa Mines
New Project is Tin Mine in Myanmar
Backlog: 39,000 THB Million Baht (approx.)
45 Engineers and 1,000+ Employees
Strictly Private and Confidential
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-
-
-
Large Capital Investment
Need Proven Track Records
Need Highly Experienced Mine Experts
- New Projects Bidding : 150,000 MB+
- Mae Moh Contracts 9-10-11 and
Hongsa Contracts G & H
- New Mines Opening:
- Coal Mines, Tin Mines, Potash Mines etc.
Mining Construction Industry (TCLMV)
- High-Barrier to Entry
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-
-
Mining Construction Industry (TCLMV)
Oligopoly Market with 2 large Players
SQ has over 50% market shares
SQ: The Only Mining Expert in CLMVT
- Largest Team of Experienced Mine Experts
- Extensive Mine Equipment
- Strongest 34-year Mine Experiences & Track
Records
- Overall Mining Expertise
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“ Highly Experienced Management and
Operational Team with Proven Track Record " Management and Operational team with over 30 years of experience in coal mining industry
Well established relationship with sponsors
Management and Operational Team with Extensive Experiences in Mining Industry
Mr. Somboon ManeenawaChairman of the Board
•Past experience:
−EGAT Governor (1992-1995)
Mr. Nopphan Muangkote
Chairman of Executive Committee
•Director at International Business Lawyers Co., Ltd. and PFControls Group Ltd (Present)
•Independent Director at AEONTS, AMATA and CharoensinProperty Co., Ltd. (Present)
Mr. Sasavat Sirison
Chief Executive Officer
•Over 28 years of experience with SQ
Mr. Vitavat Sirison
Chief Operation Officer
•Over 23 years of experience with SQ
Mr. Pavat Sirison
Chief supply chain manager
•Over 10 years of experience with SQ
Mr. Kavit Sirison
Chief Financial Officer
•Director of Microfinance Strategy Development department at Ministryof Finance(2010-2012)
Mr. Ouychai Klaitubtim
Mae Moh Director
•Over 40 years of experience in mining industry
Mr. Jaturaporn Boonyasatit
Executive Committee member
•Over 45 years of experience in mining industry
•Over 35 years of experience with SQ
Mr. Sarin Wannalee
Executive Committee member
•Over 29 years of experience with SQ
•Over 35 years of experience in mining industry
Mr. Vitoon Chinwanichai
Hongsa Director
•Over 30 years of experience in mining industry
Mr. Chatree Keatkongkeaw
Project manager
•Over 29 years of experience in mining industry
•Over 19 years of experience with SQ
Mr. Pornpong Chaijaroen
Project manager
•Over 26 years of experience in mining industry
Strictly Private and Confidential
Strictly Private and Confidential
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Business Overview
Strictly Private and Confidential
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Stable Revenue via Long-Term Contract w Credible Sponsors
Credible Counterparties Supported by Respective Government
‘SQ’ Business Model
• Long-term Contract
• Stable Revenue with
Growth
• Credible Sponsors
• Oligopoly Business
Strictly Private and Confidential
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Mae Moh Power Plant
Existing Capacity
Coal Usage : approx. 15 mil. tons/ year
Units
4 – 7
8 – 13
Total
Installed Capacity
4 x 150 MW
6 x 300 MW
2,400 MW
Mae Moh Project Overview
Mae Moh Mine Planning
ScopeofWorks
Contract
Volume
Contract
Value
(THBmm)
SQ’sBacklog(endof2016)
Volume Value(THBmm)
Job 1Soilexcavationandtransportation
Job 2Coalexcavationandtransportation
375.0m.BC
M
31.0m.tons
21,641
1,230
365.3m.BCM
31.0m.tons
20,598
1,230
22,871 21,828
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Bac
klo
g
Bac
klo
g
2016
2025
2015
2017
2018
2019
2020
2021
2022
2023
2024
Strictly Private and Confidential
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1.4 5.1
9.6
365.4
Job 1: Soil excavation (m.BCM)
Cumulative Planned
Cumulative Actual / Backlog
7.5
31.0
Job 2: Coal excavation (m.tons)
Cumulative Planned
Cumulative Actual / Backlog
Contract Counter Parties :
Project Duration :
Mae Moh 8 Backlog
Mae Moh 8
EGAT / SQ
January 2016 – December 2025
ScopeofWorks
Contract
Volume
Contract
Value
(THBmm)
SQ’sBacklog(endof2016)
Volume Value(THBmm)
Job 1Soilexcavationandtransportation
Job 2Coalexcavationandtransportation
Job 3Soiltransportation(excavationbyEGAT)
365.0m.BC
M
50.0m.tons
40.0m.BCM
18,602
2,463
842
43.7m.BCM
5.4m.tons
-m.BCM
1,981
244
99
(m.BCM)400.
21,906 2,324
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Mae Moh 7 Backlog
EGAT / ITD-SQ
November 2008 – April 2020
133.7300.
365
Total
98
Performed
prior to 2012Joint Operation
(Full scope)
Job 1: Soil excavation
37.5
25.
12.5
0.
62.5
50.
50
Total
11
Performed
prior to 2012
16.8
Joint Operation(Full scope)
200.
100.
0.
Job 2: Coal excavation (m.tons)
510.
0.
Total Performed
prior to 2012
Joint Operation
(Full scope)
Job 3: Soil excavation by EGAT (m.BCM)
50.
40.
30.
20. 40
8.3
140
105
70
35
0
41.4
2014
69.2
2015
91.5
2016
Cumulative Planned
Cumulative Actual
27.013.7
20122013
14.0
10
5
0
20
15
2.7
2012
5.4
2013
7.6
2014
10.0
2015 2016
Cumulative Actual
11
8
4
0
15
7.1
2014
8.3
2015
8.3
2016
Cumulative Actual
3.6
0.4
2012 2013
- None -
Strictly Private and Confidential
Mae Moh 7
Contract Counter Parties :
Project Duration :
Installed
Capacity
(MW)
Utilized
Capacity
(MW)
1 626 551
2 626 551
3 626 551
Total 1,878MW1,653M
W
Strictly Private and Confidential
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Hongsa Project Overview
Total Coal Resource : Approx. 577.4 m.tons
Potential Future Projects:
•During 25 years of its concession, Hongsa Power (HPC) requires services for the excavation of soil
and coal of 1,250 m.BCM and 370.8 m.tons, respectively
•Of which, the excavation of 437 m.BCM soil and 205.6 m.tons coal are yet being awarded.
Dumping Area
DumpingArea
Mining Area
Existing Capacity
Coal Usage : approx. 14 m.tons/ year
Hongsa Project
Hongsa Mine Planning
Myanmar ProjectMae Moh 8Mae Moh 7
Hongsa Power Plant
ScopeofWorks
Contract
Volume
Contract
Value
(THBmm)
SQ’sBacklog(endof2016)
Volume Value(THBmm)
Job 1Soilexcavationandtransportation
Job 2Coalexcavationandtransportation
207.0m.BC
M
82.5m.tons
8,481
3,262
186.5m.BCM
79.6m.tons
7,624
3,140
11,743 10,764
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Bac
klo
g
Bac
klo
g
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
Strictly Private and Confidential
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Hongsa Project Backlog
Job 1: Soil excavation (m.BCM) Job 2: Coal excavation (m.tons)
5.2
14.5
19.7
186.5Cumulative Planned
Cumulative Actual
Backlog
2.9
2.9
79.6
Cumulative Actual
Backlog
Note: * Actual production is as of 1H/2016
Hongsa Project Myanmar ProjectMae Moh 8
HPC / SQ
June 2015 – December 2026
Mae Moh 7
Contract Counter Parties :
Project Duration :
Project ProjectValue ProjectDuration
Phase1:TinConcentrate 3,672THBmm 2017-2024
Strictly Private and Confidential
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Myanmar Project
Strictly Private and Confidential
2,324
10,76413,088
-2,324
-
34,916
-
38,616
0
10,000
20,000
MM7 Hongsa MM8 Myanmar Total
Stable Revenue via Long-Term Contract with Credible Sponsors
Highly Visible Backlog with over THB 39 bm for the Next 11 Years
SQ current project operations are Mae Moh 7, Hongsa Phase D and Mae Moh 8
With Remaining Backlogs THB 39 BM for the Next 10 Years
THB mm
40,000
3,700
30,000
21,828
Note: As of December 2016
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Total Value of Contracted Work (Backlog)
Project
1. Mae Moh Project
- Contract 7
- Contract 8
2. Hongsa Project
Project Year
2009-2020
2016-2025
2015-2026
RemainingProject Value
2,323 THB mm
21,828 THB mm
10,764 THB mm
3. Myanmar Tin Project 2017-2024 3,672 THB mm
Total up to 2026 38,587 THB mm
Strictly Private and Confidential
Strictly Private and Confidential
Strictly Private and Confidential
Key Financial Highlights – Stable Revenue with EBITDA Margin Growth
1,7361,841
1,5851,445
1,238
-
247 731
146
7456
-
29-
30
0
625
1,250
1,875
Total Revenues (THB.m)
2,500
2012 2013 2014 2015 2016
1,8101,897
1,614
1,868MM7 & 7/1
Others
MM8
Hongsa
2,890
897
Strictly Private and Confidential
Key Financial Highlights – Stable Revenue with EBITDA Margin Growth
Profits (THB.m)
501480
381
490
828
613648
557
683
101141
4989
323
33.9% 34.1% 34.5%
36.6%
41.4%1,196
10%
50%
-25
356
738
1,119
1,500
2012 2013 2014 2015 2016
Gross Profit EBITDA % EBITDA (RHS)NI
Strictly Private and Confidential
2,867 2,749
4,489
6,004
2,5272,360
3,749
340 389
740
2,251
3.72
3.00
1.12
3,753
2.98082.6081
3.2585
2.15
(14)
(9)
(3)
3
8
0
2,500
5,000
7,500
Assets, Liabilities and Shareholder’s Equity (THB.m)
10,000
5.65
2013 2014 2015 2016
Assets Liabilities Shareholder's Equity IBD/Equity IBD/EBITDA
Strictly Private and Confidential
Overall Financial Position
4.6%
1.8%2.5%
6.2%
21.81%20.82% 20.58%
-10%
0%
20%
10%
Ratios (Times)
30%
2013 2014 2015 2016
ROA
26.23%
ROFA
Note: * Annualized net profit to calculate key ratios for 3Q2016
Strictly Private and Confidential
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Business Outlook 2017-2020
Strictly Private and Confidential
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Myanmar Tin Mines etc.
Vietnam Coal Mines
Cambodia Coal Mines
Thailand
Laos
Mae Moh Phase 8, Potash Mine
Coal Mines, Gold Mines, Copper Mines
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Corporate Strategies: Growing in ‘TCLMV’
1. Increase Revenues from ‘Existing Core Customers’
Bidding: EGAT, Mae Moh Contract # 9
“Est Project Value: 30,000 THB Million Baht”Strictly Private and Confidential
Strictly Private and Confidential
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“Promising Growth” From Continuing Projects
Project Project YearTotal
Production
Phase 9 2019 – 2030 400 m BCM
Phase 10 2026 – 2037 460 m BCM
Phase 11 2029 – 2045 460 m BCM
Mae Moh Mine
Project Bidding YearTotal
Production
Phase G 2019 190 m BCM
Phase H 2025 213 m BCM
Hongsa Mine
Project Description BidOpe
n
Project
Duration
Phase9 •Soilexcavation460millionBCM
•Projectvalueapprox.30,000THBmm
2017 2019–2030
Phase10 •Soilexcavation490millionBCM
•Projectvalueapprox.35,000THBmm
2024 2026–2037
Phase11 •Soilexcavation490millionBCM
•Projectvalueapprox.40,000THBmm
2027 2029–2045
Strictly Private and Confidential
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Mae Moh Project
Potential Future Projects:
Remaining Coal Resource : Approx. 300 million tons
Strictly Private and Confidential
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Corporate Strategies: Growing in ‘CLMV’
2. Expand ‘New’ Coal- Mine ‘Customers’
Seeking Coal Mine Work for Power Plant project in Laos
Received ‘Letter of Intent’
Project Description
Phase1 •SitePreparation:1,000THBmm
Phase2 RoadandInfrastructure
MineConstructionBidding
Strictly Private and Confidential
NEW COAL MINE
Strictly Private and Confidential
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Corporate Strategies : Growing in ‘CLMV’
3. Expand into New “Non-Coal” Long-Term Mine Projects
Tin Mines in Myanmar
One of World’s largest Tin Reserve
Project ProjectValue ProjectDuration
Phase1:TinConcentrate 3,672THBmm 2017-2024
Strictly Private and Confidential
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Myanmar Project
Strictly Private and Confidential
Summary
“No. 1 Mining Contractor in CLMVT”
Secure 39,000 Million Baht Backlog for 10 Years Revenues
Among Highest Gross Margin (29%)
& Highest Net Margin ( 11.2%) in Contractor Sectors
More Stable and Predictable Income for 10 years
Growing Earnings from Increased Business Volumes & New Projects
Strictly Private and Confidential
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Q&A