SET: Opportunity Day, 22 May 2014 - listed...
Transcript of SET: Opportunity Day, 22 May 2014 - listed...
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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
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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.
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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.
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Types of Work
• Industrial Work
• Civil Work
• Tunneling & Underground Work
• Commercial Buildings
• Residential
• Marine Work
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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
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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
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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
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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
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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
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Key Performance Index
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
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Key Performance Index
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
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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%
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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%
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Bangkok Metropolitan
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]
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Current Backlog (Signed Contract)
Item Owner Project Description Start End Total
Value Remaining
16
Bangkok Metropolitan
Administration [BMA]
Improve Wastewater Pipe System Phase 2
Part 1 Aug-13 Jan-14 25 0%
17
Bangkok Metropolitan
Administration [BMA]
Improve Wastewater Pipe System Phase 2
Part 2 Jan-14 Jul-14 60 100%
18
Bangkok Metropolitan
Administration [BMA]
Improve Wastewater Treatment System,
Thaweewattana Royal Palace Jan-14 Jul-14 30 100%
19
Bangkok Metropolitan
Administration [BMA]
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%
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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
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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===>
[last update 30/04/2014] [Unit : Million Baht]
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Current Backlog (Unsigned Contract)
Item Owner Project Description Start End Total
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===>
[last update 30/04/2014] [Unit : Million Baht]
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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
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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
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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
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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
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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
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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