Tipco Asphalt Public Company Limited (TASCO)

13th Aug 2021

Tipco Asphalt Public Company Limited (TASCO)

3-2021 Analyst Meeting

(Q2 2021 Operational Results)

Disclaimer

This presentation material has been prepared solely for informational purposes only. TASCO is furnishingit solely for use by prospective investors / analysts in the proposed event. TASCO makes norepresentations or warranties as to the accuracy or completeness of such information. By accepting thismaterial each recipient agrees that TASCO shall not have any liability for any representations (express orimplied) contained in, or for any omissions from this presentation.

The information contained herein does not purport to be all-inclusive or to contain all of the informationthat may be material to the recipient’s decision. Each recipient of the information and data containedherein should perform its own independent investigation and analysis of the transaction and thecreditworthiness of TASCO. Reference in this Disclaimer to this shall include references to theAppendices (if any) hereto.

Agenda

Q2 2021 Financial Performance

Q2 2021 Highlights

Sustainable Development

Outlook

Q&A

01

02

03

04

05

Sales & Services Revenue & Sales Volume

0.30 0.340.320.54 0.51 0.38

1.75

Q1 Q2 Q3 Q4 Year

2021 2020 1

Total Revenue

5,871 7,713

5,111 6,542 8,576

5,926

26,155

Q1 Q2 Q3 Q4 Year

2021 2020Unit: Mil. THB

Sales Volume

Financial Performance Highlights Sustainable Development Outlook

2021 Revenue from construction contract out of total revenue (%)7.4% 9.5%

• Revenue from asphalt business stood at Baht7,041 million, an 7.6% increase from Q22020. This was mainly attributed to the hikein average asphalt selling price related to theglobal oil market price increase in Q2 2021

• The Company recognized revenue fromconstruction business of Baht 672 millionsince Q2 2021

• There was a reduction in total sales volume,in particular our international market, ascompared to Q2 2020 which affected by theCOVID-19 pandemic

812 1,378

(654)

2,504 2,567

1,137

5,554

Q1 Q2 Q3 Q4 Year

2021 2020

Operating Gross Profit

Operating Gross Profit

1/: Additional provision for impairment of stocks net realizable value at Baht 2.16 billion and Hedging gain of Baht 1.31 billion2/ Reversal of net realizable value (NRV) provision of Baht 2,103 million

Unit: Mil. THB

Gross Profit Margin

Q1 Q2 Q3 Q4 FY

Gross Profit margin (net hedging and NRV)

2021 13.8% 17.9%

2020 (12.8%)1/ 38.3%2/ 29.9% 19.2% 21.2%

2


• The improvement in gross profit was mainly dueto an increase in average retail asphalt sellingprice as compared to the inventory cost togetherwith an increase in emphasis towards retail salesrather than wholesale segment

• The Company recorded loss from price hedgingcontracts of Baht 471 million because of anincrease in the global market price for crude oil,asphalt, and petroleum products

1,059 957 379

1,261

2,361 1,590

5,591

Q1 Q2 Q3 Q4 Year

2021 2020

Unit: Mil. THB

422 868

(784)

1,719 1,862

794

3,592

Q1 Q2 Q3 Q4 Year

2021 2020

EBITDA & Net Profit

EBITDA

Net Profit After Tax

3

Unit: Mil. THB


• The Group’s cashflow generated from operationsstood at Baht 957 million compared to Baht1,261 million in Q2 2020 mainly from thereduction of sales volume of international marketas compared to same period of last year

• The Profit After Tax of Baht 868 million for the Q22021 represented earnings per share of Baht 0.55(par value of Baht 1 each) as compared toearnings per share of Baht 1.09 per share in Q22020

0.82 0.67 0.72

Q2 2020 Q1 2021 Q2 2021

Total liabilities/Total equity

Debt to Equity Ratio

Debt/Equity Ratio

4

The Group’s consolidated debt to equity ratio (D/E ratio) was 0.72 comparing to 0.82 in the corresponding period a year ago due to operating gain in Q2 2021 and the reduction of short-term loan used for working capital


Key Ratios and Historical Dividend

23.919.9

8.211.6

18.0 19.3

Q1 Q2 Q3 Q4

2021 20202

Return on Asset2/

2/ Return is based on sum of last 12 months net profit Return is based on profit before interest and tax

Unit: %

33.928.4

12.617.8

25.0 25.4

Q1 Q2 Q3 Q4

2021 2020

Return on Equity1/

1/ Return is based on sum of last 12 months net profit

Unit: %

0.90 0.90

1.20

0.30

1.501.60

0.25

27%45%

74%84% 76% 70%

31%

2015 2016 2017 2018 2019 2020 2021

Dividend Per Share Payout Ratio

Dividend PolicyThe Company has a policy to pay dividends of not less than 60% of its consolidated net profit of each fiscal year.

Unit: Baht per share

Historical Dividend

On 11th August 2021, the Board of Directors approved the interim dividend payment of Baht 0.25 Baht per share, a total of Baht 395 million.

Ex-dividend date (XD): 24th August 2021Payment date: 9th September 2021

5


Q2 2021 Highlight

• On top of 2 alternative crudes receive in Q1 2021, 2 additional alternative crudes were received in Q2 2021


Refinery & Crude

Road related budget in ThailandUnit: Billion Baht

165.2 163.9

173.4

2019 2020 2021

• Strong budget disbursement in Q2 2021 which led to strong sales volume

• Asphalt selling price in Q2 2021 was high

Domestic

Source: Budget Bureau

6

• In line with selective market strategy, sales volume in certain markets, e.g. Malaysia, Vietnam, New Zealand were strong

International

Q2 2021 Highlight - Asphalt Selling Price vs. Ice Brent

80.1

70.1

60.057.3

45.8

38.0 37.4 38.5

53.8

45.348.2

57.9

62.263.6

71.2

63.3

65.371.4

68.971.2

67.1

52.2

64.7 62.9

80.1

85.4

55.2

63.5

51.2

44.7

34.7

46.9 47.151.1

54.7 50.9 52.2

61.5

67.2

74.976.0

68.1

63.8

68.3

62.0 62.5

51.0

33.3

43.445.2

61.1

69.0

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Avg. asphalt selling price Avg. Ice Brent price

Unit: USD/barrel

7


CSR Activities in Q2 2021


With the ongoing 3rd-wave COVID-19 pandemic outbreak situation, our Group has greatly participated upon several philanthropy and donation activities with government agencies and private hospitals

8

Outlook – Crude & Refinery

• Potential temporary shutdown to accommodate selective market strategy• Currently, the Group’s management is in the final process of negotiating insurance

claim with the insurance company

9


2018 2019 2020 Total

Key events July 2018: Fire Incident at refinery’s tanks

Feb 2019: Floating storage unit rentalNov 2019: Maintenance tanks resumed to operate

May 2020: • 2 new crude

tanks operated• Insurance cover

expiration

Damaged Assets written off 289.9 - - 289.9

Related expenses to the incident

68.2 387.1 64.3 519.6

Claims Received - (593.0) (174.0) (767.0)

Total 358.1 (205.9) (109.9) 42.5

Crude • Received a cargo in July• Current crude inventory is sufficient for asphalt production until Q1 2022

Refinery

Outlook - Domestic and International market

10

• Although Q3 2021 will be soft quarter, Q4 2021 is driven by 2022 government budget


• H2 2021 will be driven by Vietnam, China Malaysia and selective markets

Road related budget in ThailandUnit: Billion Baht

165.2 163.9 173.4161.6

2019 2020 2021 2022

Domestic Market International Market

Remark: 2022 budget is subject to final approval in Aug 2021

www.tipcoasphalt.com

THANK YOUAny queries, please contact:

At email: [email protected]: 662-273-6642

Tipco Asphalt Public Company Limited (TASCO)

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