ai operating results q2 2013
TRANSCRIPT
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Asian Insulators Public Company Limited254 Seri Thai Road, Kannayaow, Bangkok 10230 Thailand http://www.asianinsulators.com
Tel. (66) 0-2517-1451 Fax. (66) 0-2517-1465 E-mail : [email protected]
Operating Results of Q2’2013
August 9, 2013
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Agenda
Business Overview
Consolidated Financials
Business unit
Insulators
Engineering
Logistics
Vegetable Oil and Alternative Energy
Ports and Terminals
Questions and Answers
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More than half of Porcelain Insulators uses in power transmission and distribution grids are our products. A progressive porcelain manufacturing plant with production flow and state-of-the-art raw materials preparation, pug mills and kilns with ISO-9001 Quality Assurance Program allows for manufacture and marketing of high quality insulators products. Product innovation and improvements, is an industry leader in the design and production of high quality porcelain insulators.
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Business Overview
AI100 %
AIE98.79%
AI
• Manufacturer
Porcelain
insulators for
Europe and
North America
markets.
• Capacity 3,500
tons
AIL100%
• Sea and Land
Logistics
• Ship Tankers
range 1000 –
3000 tons
gross
PPCAI25.10%
• Bio diesel
refinery 500,000
liters / day
• Vegetable oil
refinery 350,000
liters / day
AIPT100%
• Ports and
depot
services
• Capacity 30
million liters
Energy BusinessInsulators Business
AIES99.84%
• Engineering
contractor for
High Voltage
Transmission
lines and
Substations
• Manufacturer
Porcelain
Insulators for
low, medium and
high voltage
insulators
• Capacity 8,000
tons
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Business Overview
Highlights
AI is the leader in Porcelain Insulators manufacturer with 55% market share in
Thailand.
AI has 100% market share in high voltage insulators.
AI has all Porcelain Insulators products range cover all the requirement from
utilities for power transmission and distribution.
AI has a progressive porcelain manufacturing plant with production flow and
state-of-the-art raw materials preparation, pug mills and kilns with ISO-9001
Quality Assurance Program.
AI is one of the leader in Biodiesel refinery with continuous process and
vegetable oil refinery for industrials and consumers use, continuously
achieves strong growth through alternative energy and vegetable oil.
AI has a discipline engineering in design and construction of high voltage
transmission lines and substations.
AI has a complete logistics and tanks farm to support the alternative energy
and vegetable oil business.
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Business Configuration
Export
• Low Voltage
• Medium Voltage
• High Voltage
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Power Transmission and Distribution System
Electrical insulators is one of the essential equipment for
the electricity’s transmission and distribution systems. It can
prevent the electricity leaks from the conductor to the
ground which would cause the short circuit and cause the
unplanned electricity outage. Another main duty of
insulators is to hold and suspend the electrical conductor in
the air.
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Porcelain Insulators & Production Process
Raw Materials = Plastic Clay, Kaolin, Feldspar, Alumina
Chemical Analysis Weight Grinding Mixing Filter Press Extruding
Inspecting Firing Glazing Drying Turning Conditioning
Electrical Testing Assembling Load testing Packaging Delivery
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Insulators : Suspension Type for 22 – 230 kV system
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Insulators : 22 – 33 kV system
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Insulators : Line Post Type for 115 kV system
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Insulators : Cable Spacer Type for 22 – 33 kV system
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Insulators : Low Voltage and Underground System
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High Voltage Lab : Electrical and Mechanical Testing Facilities
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Insulators : High Voltage Application and Installation
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Insulators : High Voltage Insulators Application
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Insulators : Medium Voltage Application and Installation
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Performance of AI (Consolidated)
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 1,382 1,152
Total Expenses 1,236 1,101
EBIT 146 51
Finance Costs 16 15
Tax Expenses 10 (6)
Net Profit 140 30
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Insulators: Performance
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 237 147
Total Expenses 151 102
EBIT 86 45
Finance Costs 5 4
Loss on disposal of
investment in subsidiaries
Tax Expenses
231
21
0
(4)
Net Profit (129) 37
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Dividend
0.35
0.250.10
0.45
0.75
0.11
0.25
0
0.2
0.4
0.6
0.8
1
2007 2008 2009 2010 2011 2012 2013
Baht per share
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Insulators: Summary
Q2- 2013 Highlights
Increase stake in AI Energy Public Company Limited for 590 million Baht.
Demand of Porcelain Insulators from Utilities have increased.
Power expansion projects for both utilities and private sector are increase.
Production efficiency was increased. Lower defect rate.
Loss on disposal of investment in subsidiaries.
Outlook
Continue increase in demand of Insulators from utilities and private sectors.
B.O.I promotion to except from corporate income tax for 650 million Baht.
Continue improvement in production cost and products defect.
Solar Roof Project with Feed-in Tariff (FIT) of 6.16 Baht per KW/hr for
1 MW capacity with 25 years Power Purchase Agreement (PPA).
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Project : Solar Roof
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Project : Solar Roof
Renewable Energy.
Solar cells on factory roof
tops and parking roof tops
for generating electricity
2.6 Mega Watt.
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PPC Insulators Group
Asian Insulators PLC.
&
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PPC Asian Insulators Company Limited
Location 99/9 Moo 2, Asia Highway Rd., Km. 71-72,
Banmor,Promburi, Singburi 16120 Thailand
Prod Capacity
Paid-up Capital
Stake
3,500 tons per annum
263 million Baht
25.10%
No. of employees 300 persons.
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Products.
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AI Engineering Services Company Limited
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Project : PEA-JOR.56/2548
Owner : Provincial Electricity Authority
Turnkey Design Supply and Installation
of 115 kV Transmission Lines
Date of Completion : December 2006
Contract Value 51.95 Million Baht
High Voltage Transmission & Substation Projects
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Project : PEA-TSD.6.1.P-3.7/2550
Onwer : Provincial Electricity Authority
Design Supply and Installation of
Transmission System and Substation
Conventional Outdoor type 115-22 kV ,
2 x 50 MVA
Rot Chana 2 S/S Ayutthaya Province
Date of Completion : 20 Feb 2009
Contract Value 180,898,466.00 Baht
High Voltage Transmission & Substation Projects
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Engineering: Performance
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 17.03 12.49
Total Expenses 13.95 15.21
EBIT 3.08 -2.72
Finance Costs 0.37 0.31
Tax Expenses (0.54) 0.61
Net Profit 2.17 -2.42
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Engineering: Summary
Q2 - 2013 Highlights
Signing two contracts for Engineering Procurement and Construction for
22-115 kV substations for 310 million Baht. Duration of construction is
360 days.
Outlook
Revenue from construction of substations will be partially booked onward from
3rd Quarter 2013
New power transmissions and substation expansion projects for year
2013-2014.
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AI Energy Company Limited
• Vegetable Oil
• Bio Diesel (B100)
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Bio Diesel and Refined Palm Oil Production Process
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Vegetable Oil : Pamola Brand
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Biodiesel and Vegetable Oil : Performance
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 1,114 1,009
Total Expenses 1,051 989
EBIT 63 20
Finance Costs 8 10
Tax Expenses (11) (2)
Net Profit (Loss) 44 8
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Biodiesel and Vegetable Oil : Summary
Q2 - 2013 Highlights
Increase the Capital register from 370 million Baht to 960 million Bath
Acquired AI logistics and AI Ports from Asian Insulators Plc.
Outlook
The demand of biodiesel (B100) is 4-5%, and shall be increased to 7% from
January 2014 as per regulation of Energy Department.
Strategic Petroleum Reserve (SPR) shall be enforced from November 2013.
To reserve all kinds of fuels from 5% to 6%,or 36 days to 43 days (or 400
million liters of diesel oil) by major oil companies.
Major oil companies are required to reserve biodiesel (B100) for approximate
of 12 million liters as part of Strategic Petroleum Reserve.
As per demand of Biodiesel (B100) increase, Demand forecast of biodiesel
(B100) from AI Energy will increase to 12 million liters per month.
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Biodiesel and Vegetable Oil : Summary
Listing on Stock Exchange of Thailand in fourth quarter year 2013.
Pre-emptive right to AI’s shareholders for 2 : 1 ( 2 (two) shares of AI
will have the right to purchase 1 (one) AI Energy’s IPO share.).
Initial Public Offering : Issue new shares of 170 million shares, and
250 million shares of existing AI’s shares in AI Energy for pre-emptive
right to AI’s shareholders for 2 : 1
The raise fund from IPO will be used:-
Increase the biodiesel (B100) production capacity for another
200,000 liters per days.
Improvement of biodiesel (B100) production process to be more
efficiency.
Increase storage tanks capacity.
Revolving funds.
More demand of refined palm oil for industrial use.
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AI Logistics Company Limited
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Logistics: Performance
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 17.41 15.78
Total Expenses 18.88 17.06
EBIT -1.47 -1.28
Finance Costs 0.09 1.73
Tax Expenses 0 0
Net Profit (Loss) -1.56 -3.01
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Logistics: Summary
Q2 - Y2013 Highlights
Acquired by AI Energy from Asian Insulators Plc as part of Group of
Companies restructure for listing AI Energy in Stock Exchange of
Thailand.
Outlook
The demand of ship tanker will be increased from Strategic Petroleum
Reserve (SPR) to transport the petroleum products to the storage
tanks
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AI Ports and Terminals Company Limited
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AI Ports and Terminals, Chumporn Province
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Ports and Terminals: Performance
Unit : Million Baht Q2’2013 Q2’2012
Total Revenues 24.17 11.79
Total Expenses 20.89 15.03
EBIT 3.28 -3. 24
Finance Costs 2.08 4.56
Tax Expenses 0 0
Net Profit (Loss) 1.20 -7.80
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Ports and Terminals: Summary
Q2 - Y2013 Highlights
Acquired by AI Energy from Asian Insulators Plc as part of Group of
Companies restructure for listing AI Energy in Stock Exchange of
Thailand.
Outlook
Strategic Petroleum Reserve shall be enforced on November 2013.
All major oil companies are required more storage tanks for
downstream products such as diesel, gasoline.
20% of capacity will be used for crude palm oil storage, and 80% of
capacity will be used for diesel oil storage by mean of renting the
storage tanks and utilities facilities by major oil companies.
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Questions
and
AnswersContact : Khun Thanit Thareratanavibool
[email protected] Tel.: 02-517-1451
http://www.asianinsulators.com
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Disclaimer
The information, statements, forecasts and projections
contained herein reflect the Company’s current views
with respect to future events and financial performance.
These views are based on assumptions subject to
various risks. No assurance is given that these future
events will occur, or that the Company’s assumptions
are correct. Actual results may differ materially from
those projected.