Thai Tap Water...
17
Thai Tap Water Supply Public Company Limited Thai Tap Water Supply Public Company Limited June 2008 June 2008
Transcript of Thai Tap Water...
Thai Tap Water Supply Public Company LimitedThai Tap Water Supply Public Company Limited
June 2008June 2008
2The largest private tap water producer in Thailand
1. Introduction to TTW
2. TTW Highlights
3. Closing Summary
4. Q&A
AgendaAgenda
3The largest private tap water producer in Thailand
Introduction to TTW ' Where we areIntroduction to TTW Introduction to TTW '' Where we areWhere we are
Samut Sakorn Province
Nakhon Pathom Province
4The largest private tap water producer in Thailand
Introduction to TTW ' Our Distribution NetworkIntroduction to TTW ' Our Distribution Network
Banglen Water Treatment Plant
Buddhamonthon Distribution Station
Mahachai Distribution Station
Bulk Transmission Main (1BTM2)Local Distribution Network (1LTN2)Future Plan
5The largest private tap water producer in Thailand
Stability
Growth
Strong Financial Performance
TTW HighlightsTTW Highlights
Thailand7s Largest Private Tap Water Producer
6The largest private tap water producer in Thailand
16
320 308
3743 36 180
50
100
150
200
250
300
350
TTW PTW Bangpakong Chachoengsao EGCOMP TARA IWR REQ
Largest private tap water producer in Thailand
among leading private operators with
aggregate market share of 81% (among 6
largest operators)
Dominant industry position
Robust demand in the service areas
Maximum Capacity vs. Peers
(Tho
usand m
3 /Day)
REQ4IWR3BW1 CW2
Note: 1) Bangpakong Waterworks Co., Ltd.2) Chachoengsao Waterworks Co., Ltd.3) Industrial Water Resource Management Co., Ltd.4) R.E.Q. Water Services Co., Ltd.
EgcompTara
TTW Highlight ' Thailand7s Largest Private Tap Water ProducerTTW Highlight ' Thailand7s Largest Private Tap Water Producer
7The largest private tap water producer in Thailand
TTW Highlight ' StabilityTTW Highlight ' Stability
Highest Guaranteed Off-take Volume
More Favorable Water Tariff with Additional Annual Escalation Factor
Longest Agreement (30 Years vs. Industry Average of 7.9 Years)
8The largest private tap water producer in Thailand
0
2,000
4,000
6,000
8,000
10,000
2005 2006 2007
Samutsakorn Nakornpathom
0
500,000
1,000,000
1,500,000
2005 2006 2007
Samutsakorn Nakornpathom
Water Consumption by Sector for the Period of 2004-2007
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2004 2005 2006 2007
Industrial Commercial Household
CAGR 39
.44%
0
100 ,000
200 ,000
300 ,000
400 ,000
500 ,000
600 ,000
700 ,000
800 ,000
900 ,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Existing Area Future Area
CAGR 13
.32%
CAGR 7.52%CAGR 1.57%
Source: PWA, MWA and Department of Water Resources, Ministry of Natural Resources and Environment
Water Consumption by Source (As of June 2006)Forecast Water Demand
(m3 /day)
Increasing PopulationIncreasing Number of Factories
(m3 /day)
(No. of factory)
(No. of population)
Source: Thai DCI Co., Ltd.
1,260,978 1,284,415 1,300,904
6,9067,343
7,983
Tap Water,
19%Ground Water,
81%
TTW Highlight ' Growth ' TTW7s Service AreasTTW Highlight ' Growth ' TTW7s Service Areas
9The largest private tap water producer in Thailand
2,563
2,1702,372
0
500
1,000
1,500
2,000
2,500
3,000
2005 2006 2007
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-05Aug-05Sep-05Oct-05Nov-05Dec-05Jan-06Feb-06Mar-06Apr-06May-06Jun-06Jul-06Aug-06Sep-06Oct-06Nov-06Dec-06Jan-07Feb-07Mar-07Apr-07May-07Jun-07Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07
Actual Capacity Utilization MOQ
200,000220,000
260,000
0
200,000
400,000
600,000
800,000
1,000,000
2005 2006 2007
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
2004 2005 2006 2007
Industrial Commercial Household
0
100 ,000
200 ,000
300 ,000
400 ,000
500 ,000
600 ,000
700 ,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Residence Industry Business , state enterprise and governmental agency
CAGR 8.64%
CAGR 9.54%
(No. of factory)
CAGR 8.68%
(No. of population)
CAGR 4.88%
Source: PWA, MWA and Department of Water Resources, Ministry of Natural Resources and Environment
Actual Sale of Treated Water & MOQ - PTWForecast Water Demand
(m3 /day)
(m3 /day)
Water Consumption by Sector for the Period of 2004-2007 Increasing PopulationIncreasing Number of Factories
(m3 /day)
Source: ASDECON Corporation Co., Ltd.
815,402861,338 896,843
TTW Highlight ' Growth ' PTW7s Service AreasTTW Highlight ' Growth ' PTW7s Service Areas
10The largest private tap water producer in Thailand
TTW Highlight ' Strong Financial Performance - Revenue (Pro Forma)TTW Highlight ' Strong Financial Performance - Revenue (Pro Forma)
Revenue from Sale of Treated Water
25.2%
20.3%
17.0%
14.4%
Rev
enue
(T
HB
mm
)
THB 2,208mm
THB 3,150mm THB 3,160mm
1, 3561, 698
1, 987
1 , 025
1 , 173
852
427
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2005 2006 2007
Discrepency of tariff rate PTW
Sale of treated water PTW
Sale of treated water TTW
11The largest private tap water producer in Thailand
Cost per Unit
TTW Highlight ' Strong Financial Performance - Cost (Pro Forma)TTW Highlight ' Strong Financial Performance - Cost (Pro Forma)
43%55% 50% 50% 53%
45%
18%
27% 25%28%
11%15%28%
7% 13%4% 4% 3%
27%21%7%
9%12% 14%
7%
11%15%
0%
20%
40%
60%
80%
100%
TTW PTW TTW PTW TTW PTW
Depreciation Electricity Chemical Others Land lease
4.3
5.86.0
7.7
4.14.0
0
2
4
6
8
2005 2006 2007
Cost per unit - TTW Cost per unit - PTW
Baht/unit
Cost Breakdown
2005 2006 2007
5.9
Excluding LCA, TSA Termination
THB 920mm THB 941mm THB 1,025mm
12The largest private tap water producer in Thailand
TTW Highlight ' Strong Financial Performance - Profit & Profit Margin (Pro Forma)TTW Highlight ' Strong Financial Performance - Profit & Profit Margin (Pro Forma)
64.2% 66.0% 68.1%
31.7%
17.2%
24.4%
0%
20%
40%
60%
80%
2005* 2006** 2007
GPM NPM76.9% 77.3% 78.0%
55.9%53.4%48.2%
0%
20%
40%
60%
80%
2005* 2006** 2007
EBITDA EBIT
* Excluding LCA&TSA termination** Excluding discrepancy of tariff rate of PTW received in 2006
Gross Profit and Net Profit Margins EBITDA and EBIT Margins
13The largest private tap water producer in Thailand
Closing SummaryClosing Summary
Tap Water Business is NOT THE SAME as
Electricity or other Utility Business
Water is a NECESSITY
14The largest private tap water producer in Thailand
AppendixAppendix
15The largest private tap water producer in Thailand
Basis for Pro Forma StatementBasis for Pro Forma Statement
Acquisition of WF for 100.00% 8 27 February 2006 with an investment of THB700 mm 8 1 January 2005 with an investment of THB700 mm
8 89.15% on 29 June 2007 with an investment of THB3,637
mm8 1 January 2005 with an investment of THB2,166 mm
8 8.85% on 18 December 2007 with an investment of THB
361 mm
8 1 January 2007 with an investment of THB 215 mm
(equivalent to intrinsic value after incorporating capital
injection/reduction)
8 26 January 2007 with an investment of THB305 mm 8 1 January 2005 with an investment of THB305 mm
8 PTW terminated O&M Agreement with OPCO on 26 January
2007, which caused THB385 mm termination fee, and
entered in new O&M with BJT on the same date
8 PTW terminated O&M Agreement with OPCO in 31
December 2004, which caused THB385 mm termination fee,
and entered in new O&M with BJT in 1 January 2005
N/A
8 All investments have been realized under Aaccount payable
for investmentsB as if TTW and PTW had not paid for the
purchase price until actual transactions occurred
8 No BOI privilege and corporate income tax rate of 30% WF
and BJT
8 No BOI privilege and corporate income tax rate of 30% WF
and BJT
Acquisition of PTW for 98.0%
Acquisition of BJT for 100.00% (by PTW)
Termination of O&M Contract with OPCO
Tax rate for operating company
Accrued Account for Investments
Actual Pro Forma
16The largest private tap water producer in Thailand
The information contained in this document is strictly confidential.
Such information is subject to change without notice, its accuracy is not guaranteed and it may not contain all material information concerning the company. None of Thai Tap Water Supply Public Company Limited ("TTW") nor any of their respective affiliates or advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein.
The presentation do not constitute an offer or an invitation by or on behalf of to subscribe for or purchase any securities. Any recipient considering a purchase of securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in the final offering document (which may be different from the information contained in this document) and subject to the selling restrictions set out therein. No reliance may be placed for any purposes whatsoever on the information contained in this presentation, or any other material discussed at any roadshow presentation or on its completeness, accuracy or fairness. The information in this presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. Care has been taken to ensure that the facts stated in this presentation are accurate, and that the opinions expressed are fair and reasonable. However, the contents of this presentation have not been verified by TTW or any of their respective affiliates or advisers. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of TTW or any of their respective members, directors, officers or employees or any other person (including it or their affiliates and advisers) as to the accuracy, completeness or fairness of the information or opinions contained in or discussed at this presentation. None of TTW or any of their respective members, directors, officers, employees or advisers or any other person (including it or their affiliates) accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith.
In addition, this document contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of TTW, that are not statements of historical fact which would be treated as forward looking statements within the meaning of applicable law. Forward looking statements are subject to risks and uncertainties that may cause actual events and TTW's future results to be materially different than expected or indicated by such statements. No assurance can be given that the results anticipated by TTW, or indicated by any such forward looking statements, will be achieved.
The granting of access to this document in certain jurisdictions may be restricted by law. Those in possession of this document are required to inform themselves about, and to comply with, any such restrictions.
None of TTW or any of their respective affiliates or advisers accepts any liability to any person in relation to the granting of access to, or possession of, this document in any jurisdiction.
DisclaimerDisclaimer
17The largest private tap water producer in Thailand
Thai Tap Water Supply Public Company Limited
Address: 30/10 Moo 12 Buddha Monthon 5 Road,
Raiking, Sam Pran, Nakhorn Pathom 73210
Tel.: +66 2 811 7526, +66 2 811 7528, +66 2 811 8369
Ext.: 209
Fax: +66 2 811 7687
Website: www.thaitap.com
Email: [email protected]
