set: opportunity day, 22 may 2014 - listed...

1

Nawarat Patanakarn Public Company Limited

SET: Opportunity Day, 22 May 2014

www.nawarat.co.th

Public / IR Division T: +662 730 2100 F: +662 751 9484 E: [email protected]

A: 18th-19th Floor, Bangna Towers (A), 2/3 Moo 14, Bangna-Trad Rd, 6.5 km, Bangkaew, Bangplee, Samutprakarn 10540 Thailand

2

Disclaimer

I m p o r t a n t N o t i c e:

The content of the presentation provided by the Nawarat Patanakarn Public Company

Limited (the “Company”) is intended to provide as information for discussion purpose only

and is strictly for private and confidential. Past performance is not indicative of future

performance. Any unauthorised disclosure, use or dissemination, either whole or partial,

is prohibited. It must not be reproduced, copied or made available to others. Some of the

information in this presentation may contain projections or other forward looking

statements regarding future events or future financial performance of countries, markets

or companies. These statements are only predictions and actual events or results may

differ materially. The reader must make his/her own assessment of the relevance,

accuracy and adequacy of the information contained in this presentation and make such

independent investigations as he/she may consider necessary or appropriate for the

purpose of such assessment. Any opinion or estimate contained in this presentation is

made on a general basis and is not to be relied on by the reader as advice. Neither the

Company nor any of its servants or agents have given any consideration to nor have they

or any of them made any investigation of the investment objectives, financial situation or

particular need of the reader, any specific person or group of persons. Accordingly, no

warranty whatsoever is given and no liability whatsoever is accepted for any loss arising

whether directly or indirectly as a result of the reader, any person or group of persons

acting on any information, opinion or estimate contained in this presentation.

3

Company Overview

Company Overview

4

Brief History

Established in 1976, Nawarat Patanakarn Public Company Limited (NWR) stands today as one of Thailand's largest

construction and engineering firms with over 2,000

employees. With more than 38 years of growing experience

in Thailand and other countries, NWR is

distinguished by its wide range of technical capabilities,

which enable the company to undertake various types of

work.

5

Types of Work

• Industrial Work

• Civil Work

• Tunneling & Underground Work

• Commercial Buildings

• Residential

• Marine Work

6

Supporting Facilities

Concrete Product Casting Factories

• Bangna-Trad

• Samutsakorn

• Chacheangsao

Total 11,000 cu.m./month

Steel Structure & Fabrication Factory

• Chacheangsao

Total 1,000 ton/month

7

Subsidiary & Associated Companies

Subsidiary Companies

Nature of Business Share of Profits

(Percent)

Myanmar NWR Company Limited

Construction 100

Utility Business Alliance

Company Limited

Wastewater Treatment 60

NWR (Cambodia) Company Limited

Manage and Control

Construction Project

100

Mana Patanakarn Company Limited

Property Development

(Housing Projects)

100

Advance Prefab Company Limited

Manufacture and Sale of Concrete Products

100

Associated Companies

Nature of Business Share of Profits

(Percent)

C.I.N. Estate

Company Limited

Property Development (Condominium

Projects)

40

VSPN Property

Company Limited

Property Development (Pool Villa Project)

25

8

Ongoing Strategy

Ongoing Strategy

9

Growth Strategy

• The Company plans to leverage on its specialization in higher margin projects(e.g. tunnel & industrial) to selectively engage in the upcoming projects withattractive margins

• The Company plan to selectively diversify into more property projects thatprovide attractive margin, strong growth potential and synergies with its currentbusiness (high-rise condo/single home) as evidenced by its JV with Charn Issarafor condominium projects and a wholly-owned subsidiary Mana Patanakarn Co.,Ltd. for single houses including Villa Baranee and Baranee Park

• Higher efficiency by improving revenue generated per worker and overhead costand expenses per project from additional engagement of new projects andoptimizing existing resources capacity

• Debt reduction to reduce interest expenses and give more flexibility in the future

Target new backlog with

attractive margin

Synergistic new business

expansion

Improve efficiency

and strengthen balance sheet

• In order to prepare for AEC, the Company has been engaging projects in ASEANcountries and will leverage on its reputation to obtain more projects from ASEANcountries with high growth rate with core focus in Myanmar, Laos, Cambodiaand Vietnam

Extend service into ASEAN countries

10

Q1/2014 Performance Summary

Q1/2014 Performance Summary

11

Q1/2014 Financial Highlights

Q1/2014 Financial Performance (Unit: THB mm)

Construction contract +1,491.9

Rendering of service (Mae Moh) +313.5

Interest Income +2.2

Other Income +12.8

Total revenues +1,820.4

Cost of construction -1,381.7

Cost of service -300.4

SG&A -87.8

Total Expense -1,769.9

Profit (loss) from associates +0.2

Finance cost -31.7

Income Tax -8.0

Net earning +11.0

Non-controlling Interest -1.0

Net earning to Equity Holders +10.0

12

Key Performance Index

Revenue

SG&A/Sales

Gross Margin

Decrease in Mae Moh’s margin due to machinery breakdown. Margin resumed normal level in next quarter.

Unit: THB mm

Core Net Margin

Performance partially affected by flood

3,260 2,856 3,174

5,736 5,270

1,492

1,079

967 1,457

883

314

2009 2010 2011 2012 2013 Q1/2014

Construction Mae Moh contract

11.4%9.7%

16.6%

10.2%

8.2%7.4%

2.7%3.9%

4.0%

7.3%

4.2%

2009 2010 2011 2012 2013 Q1/2014

Construction margin Mae Moh contract margin

7.5%7.2%

6.8%

6.1%

5.4%

4.9%

2009 2010 2011 2012 2013 Q1/2014

SG&A / Sales

2.6%1.9%

3.4%

0.9% 0.5%

-3.7%

2009 2010 2011 2012 2013 Q1/2014

Core Net Margin

13


New Projects Awarded Backlog Amounts

Net D/E ratio Current Ratio

Unit: THB mm

4,032

4,799 4,9155,354

4,321 4,419

2009 2010 2011 2012 2013 4M/2014

10,269 9,21111,152

8,38710,060 10,309

2,556 4,3371,211

3,876

2,475

445

2009 2010 2011 2012 2013 4M/2014

Signed Contract Unsigned Contract (with high certainty)

0.70x0.69x

0.98x

1.19x

1.01x1.01x

2009 2010 2011 2012 2013 Q1/2014

Net Debt / Equity

1.06x

0.82x0.86x

0.97x

1.17x 1.16x

2009 2010 2011 2012 2013 Q1/2014

Current Asset / Current Liabilities

14


866

1,139

903

1,122 1,158

864

1,099

1,292 1,286

1,480

2,286

1,834 1,810

1,507

1,820

484

742

606

746826

641 641

982899

1,196

1,382

1,790

1,188

1,384 1,366

1,123

1,382

1,6701,764

0

500

1,000

1,500

2,000

2,500

Q1/1

0

Q2/1

0

Q3/1

0

Q4/1

0

Q1/1

1

Q2/1

1

Q3/1

1

Q4/1

1

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Mil

lion

Bah

t

Net Revenue Cost

15

Current Backlog (Signed Contract)

Item Owner Project Description Start End Total

Value Remaining

1

Bangkok Metropolitan

Administration [BMA]Drainage System - Bangtoei Canal

Jul-10 Jul-13 270 19%

2Electricite Du Laos [EDL] Nam Sana - Hydroelectric Power Project

Jun-11 Jan-14 920 24%

3Private

Chana Combined Cycle Power Plant Block 2,

Songkhla Aug-11 Apr-14 1,600 3%

4Private

Wang Noi Combined Cycle Power Plant

Block 4, Ayutthaya Aug-11 Apr-14 1,400 8%

5Private

Collection System for Bangsue Wastewater

Treatment (BMA 7 Contract 2) #2 Dec-11 Jul-14 720 1%

6Private

S12 Station and Stabling Yard, BTS Silom

Extension Line Jan-12 Jul-13 570 0%

7

Department of Public Works and

Town & Country Planning [DPT]

Flood Protection System Phase 2 - Omnoi,

Samutsakhon Aug-12 Feb-15 550 42%

8Private

Construction of New Distribution Center,

Chachoengsao Mar-13 Nov-14 300 2%

9Private

Construction of Logistic Warehouse and

Flood Protection, Navanakorn Jun-13 Apr-14 250 17%

10Private Construction of Shopping Mall, Nonthaburi

Jun-13 Jun-14 670 33%

11


Administration [BMA]Drainage Tunnel under Bangsue Canal

Sep-13 Aug-16 2,300 99%

12Private

Bottling Plant Building (Extension),

Nakhonpathom Jan-13 Oct-13 310 8%

13Department of Highways [DOH]

Construction of Bypass from Highway No.3

Section 3 Sep-13 Jun-16 1,100 82%

14Private

Construction of Material Trade Building,

Suratthani Jan-14 Aug-14 100 87%

15Private

Civil and Architectural Work ABP4 CCCP &

ABP5 CCCP, Amata Nakorn Industrial Estate Sep-13 Jul-15 480 67%

[last update 30/04/2014] [Unit : Million Baht]

16

Current Backlog (Signed Contract)


Value Remaining

16


Administration [BMA]

Improve Wastewater Pipe System Phase 2

Part 1 Aug-13 Jan-14 25 0%

17



Improve Wastewater Pipe System Phase 2

Part 2 Jan-14 Jul-14 60 100%

18



Improve Wastewater Treatment System,

Thaweewattana Royal Palace Jan-14 Jul-14 30 100%

19



Improve Road and Drainage System,

Dechochai Palace 100 Day 50 100%

20Private Construction of Sales Office, Samutprakarn

Nov-13 Apr-14 45 100%

21Private Construction of Hotel, Prachinburi

Nov-13 Jan-15 320 100%

22Private Construction of 8-Storey Parking Building

Dec-13 Jul-14 180 100%

23Private

Construction of Showroom, Office & Car

Park - Nonthaburi Feb-14 Sep-14 300 100%

24

Industrial Estate Authority of

Thailand

Flood Wall around Lad Krabang Industrial

Estate Feb-14 Dec-14 520 100%

25Private Construction of Showroom, Pattanakarn

Jan-14 Dec-14 220 100%

26Private

Remedy Work of Outfall Area Revetment,

Rayong Mar-14 Apr-14 4 0%

13,294 6,277

27

Electricity Generating Authority

of Thailand [EGAT]Mae Moh Mine, EGAT [NWR-SCBB 50:50]

Mar-09 Feb-18 8,400 48%

8,400 4,032

SUB TOTAL===>

Joint Venture

SUB TOTAL===>


17

Current Backlog (Unsigned Contract)


Value Remaining

1Mana Patanakarn Co., Ltd. Construction of "Baranee Park", Romklao

Mar-14 500 100%

2Private Improve Water Tank System, Pathumwan

75 Day 1 100%

3

Department of Drainage and

SewerageImprove Drainage System, Sukho Thai Palace

6 Month 50 100%

4Private

Construction of Drinking Water & Soda

Plant, Mahasarakham Feb-14 Oct-14 310 100%

5MPWT Lao PDR Road Improvement Project, Lao

30 Month 600 100%

6Private

Soil Investigation Work of Receiving

Terminal Expansion Project Phase 2, Rayong 60 Day 5 100%

7Private

Jetty Work of Receiving Terminal Expansion

Project Phase 2, Rayong 720 Day 600 100%

8Private Flood Wall Project, Chonburi

Apr-14 Aug-14 20 100%

9Private Mae Moh Power Plant

1,500 100%

3,586 3,586

10Private

Construction of Shopping Plaza (Extention),

Pathumthani [NWR-CES 50:50] Mar-14 Aug-15 290 100%

290 290

25,570 14,185

Note

- Joint Venture [JV] Project are Presented Only NWR's Portion

- Total Value is Roundup

SUB TOTAL===>

GRAND TOTAL===>

Joint Venture

SUB TOTAL===>


18

Backlog Type & Expected Gross Margin

Future projects are to be focused on high-margin works in which the company has competitive edge

Expected Gross Margin By Project Type Total Backlog Composition by Project Types

Higher Company's expertise &Core focus of '13 & '14

Marine

Tunnel

Industrial

Infrastructure

Building

Lower Earth Work21% 20% 16%

33% 4%

13% 15%

5%

32%

16%

7%17%8% 15%

15%

22%

19%

53% 51% 48%38%

28%

2010 2011 2012 2013 4M/2014

Tunnel Marine Building

Industrial Infrastructure Earth Work

19

New Project Engagement

‘13 New Project Engagement by Type

14%

27%

41%

18%Building

Industrial

Infrastructure

Marine

New Project Engagement 2014 (accumulated value)

4,419

2,2942,004

870

0

1,000

2,000

3,000

4,000

5,000

6,000

Jan

/14

Feb

/14

Mar/

14

Ap

r/14

May/1

4

Ju

n/1

4

Ju

l/14

Au

g/1

4

Sep

/14

Oct

/14

Nov/1

4

Dec

/14

Mil

lion

Bah

t

Target 2014 :

5,000 MB

20

New Projects Awarded in 2014

Project owner Contract Value Note

(THB mm)

1. Car Showroom Private 300 Signed#23

2. Flood Wall IEAT 520 Signed#24

3. Car Showroom Private 220 Signed#25

4. Outfall Area Revetment Private 4 Signed#26

5. Improve Drainage System DDS 50 Unsigned#3

6. Water & Soda Plant Private 310 Unsigned#4

21

New Projects Awarded in 2013

Project owner Contract Value Note

(THB mm)

7. Road Improvement Lao PDR 600 Unsigned#5

8. Soil Investigation Work Private 5 Unsigned#6

9. Jetty Work Private 600 Unsigned#7

10. Flood Wall Private 20 Unsigned#8

11. Power Plant Private 1,500 Unsigned#9

12. Shopping Plaza Private 290 Unsigned#10

TOTAL 4,419

22

Marketing

Marketing

23

New Businesses

New Businesses

24

New Business - Property Development

ISSI CondominiumThe Issara Ladprao

Based on its success from CIN, the Company will selectively invest in more property projects that provide both attractive margins and synergies with its current business

• Modern high end condominium on ladprao road

• JV with Charn Issara Development PCL (CI:NWR 60:40)

• Project revenue THB 2,700 mm

• Total 561 units

• Modern condominium on Suksawat road

• JV with Charn Issara Development PCL (CI:NWR 60:40)

• Project revenue >THB 1,800 mm

• Total 892 units

• Unit area: 21-55 m2

25

New Business - Property Development

Baranee ParkVilla Baranee

• The housing project on Rangsit Klong 3 Road

• 100% owned by NWR

• Expected project revenue THB 600 mm

• Total 198 units

• Total land 35-3-1 rais

• The housing project on Romklao Road

• A subsidiary 99% owned by NWR (Mana

Patanakarn Company Limited)

• Expected project revenue THB 800 mm

• Total 94 plots

• Total land 22 rais

26

Q&A Session

Q&A Session

27

Thank You

Thank You

set: opportunity day, 22 may 2014 - listed...

Documents