Corporate Presentation...2017/03/15 · Corporate Presentation March 2017 1 Strictly Private and...

Strictly Private and Confidential

Corporate Presentation

March 2017

1


‹#›

“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


‹#›

“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


‹#›

-

-

-

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

‹#›

-

-

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


“ 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


Mr. Pavat Sirison

Chief supply chain manager


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



Mr. Sarin Wannalee

Executive Committee member



Mr. Vitoon Chinwanichai

Hongsa Director


Mr. Chatree Keatkongkeaw

Project manager



Mr. Pornpong Chaijaroen

Project manager




‹#›

Business Overview


‹#›

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


‹#›

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


‹#›

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)


Volume Value(THBmm)



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

‹#›

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 -


Mae Moh 7


Project Duration :

Installed

Capacity

(MW)

Utilized

Capacity

(MW)

1 626 551

2 626 551

3 626 551

Total 1,878MW1,653M

W


‹#›

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)


Volume Value(THBmm)



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


‹#›

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


Project Duration :

Project ProjectValue ProjectDuration

Phase1:TinConcentrate 3,672THBmm 2017-2024


‹#›

Myanmar Project


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

‹#›

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



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


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


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


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


‹#›

Business Outlook 2017-2020


‹#›

Myanmar Tin Mines etc.

Vietnam Coal Mines

Cambodia Coal Mines

Thailand

Laos

Mae Moh Phase 8, Potash Mine

Coal Mines, Gold Mines, Copper Mines

‹#›

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


‹#›

“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



2024 2026–2037



2027 2029–2045


‹#›

Mae Moh Project

Potential Future Projects:

Remaining Coal Resource : Approx. 300 million tons


‹#›

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


NEW COAL MINE


‹#›

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


‹#›

Myanmar Project


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


‹#›

Q&A

Corporate Presentation...2017/03/15 · Corporate Presentation March 2017 1 Strictly Private and...

Documents

Transcript of Corporate Presentation...2017/03/15 · Corporate Presentation March 2017 1 Strictly Private and...