Tirathai Public Company Limited

Opportunity Day on March 16, 2017

Content

• Company Profile

• Operating Result of Year 2016

• Outlook 2017

• Forecast 2017-2019

• Q &A

2

Company Profile

3

TIRATHAI & It’s subsidiary

TIRATHAI Public company Limited

TIRATHAI E&S Co.,ltd.Distribution , installation maintenance service of electrical power equipment

Manufacture for Tank and fabricate steel , EPC Conveyor System

JV L.D.S - N.D.POperation and Maintenance of Conveyor System of HongsaPower Co. Ltd, (HPC), Laos PDR

THAIFINS Co.,ltd.Manufacture for Transformer’s fins and Tank support to Tirathai Plc.,ltd.

L.D.S. METAL WORK Co.,ltd.

100% 100% 92.50%

20% 80%

Manufacturer of Distribution and Power Transformers and Repair Service

4

II.

Non-transformer• Arial Derrick Crane• Steel Fabrication• Constructions• Bulk Handling System• Operation and Maintenance Conveyor Belt

System

• Distribution Transformer

• Power Transformer• Transformer Service • Transformer Repair

Products of TirathaiGroup

I.Transformer

5

I. Transformer Product &

Service

6

Distribution Transformer

Power Transformer

Special Transformer

Our Main Customers

1. Utilities(PEA,MEA,EGAT)

2. Private2.1 Steel industry2.2 Sugar industry2.3 Power Plant2.4 Energy industry2.5 International

Contractors2.6 Others

3. Export(ASIA+SE.ASIA)

16%

58%

26%

Utilites Private Export

Transformer Revenue 2016 by Customer

II. Non Transformer Products

7

• Arial Crane Device and Digger Derick Unit

• Steel Fabrication

• Construction• EPC Conveyor Belt

System • Operating and

Maintenance Service of Conveyor Belt System

73%

27%

Transformer Non transformer

Total Revenue 2015by Product Group

TRT’s Key Strength

• Experience management team with more than 25 years in the Transformer business

• Engineering-to-Order • High Quality Products and Services• Top three of manufacturer of 300 MVA 230 kV Power Transformer

in Thailand• Well recognize as a successful player in bulk handling system

including a provider of Operating & Maintenance Service for power plant, mining and related industry

8

Operating Result of Year 2016

9

Consolidated financial Statements

Unit: Million Baht 2013 2014 2015 2016Total Revenue 2,534.96 2,163.26 2,265.90 2,577.33

Revenue from Sales & Service 2,517.89 2,131.63 2,223.97 2,536.52

Gross Profit 657.94 508.29 411.84 661.01EBITDA 320.30 170.24 44.87 192.89EBIT 268.35 66.59 (6.81) 125.81Net Profit/(Net Loss) attributable

to equity holders177.52 48.64 (45.97) 61.22

Total Assets 2,575.98 2,653.19 3,024.84 3,303.62Total Liabilities 1,391.62 1,478.97 1,947.70 2,176.83Shareholders' Equity 1,184.36 1,174.22 1,077.14 1,126.79Financial Ratio

Gross Profit Margin (%) 26.13% 23.85% 18.52% 26.06%

Net Profit (Loss)Margin (%) 6.98% 2.24% (2.57%) 2.38%

Return on Asset (%) 10.53% 1.85% (2.05%) 1.87%Return on Equity (%) 16.08% 4.10% (5.18%) 5.36%Book Value Per Share (Par1Baht)

3.85 3.81 3.50 3.66

Earning Per Share 0.58 0.16 (1.15) 0.20Dividend Per Share 0.30 0.10 0.05 0.13

10

Structure of Incomes by

Group Customer2015 2016

Transformer 1. Gov+Local 937 1,306

2.Export 650 479

3. Transformer Service

56 82

Total Transformer 1,643 1,867

Non-Transformer

4. Steel Structure & Fabricate

370 161

5. Distributing Digger/Arial truck

99 209

6. Operating & Maintenance

111 299

7. Others 41 41

Total non-transformer 621 710

Total 2,264 2,577 11

1,643 1,867

621 426

-

500

1,000

1,500

2,000

2015 2016

Transformer Non-Transformer

Million

73% 73%

27% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2015 2016

Transformer Non-Transformer

12

1,6431,867

621

710

0

500

1,000

1,500

2,000

2,500

3,000

2015 2016

Bt. Mil

Transformer Non transformer

Revenues 2016

Transformer73%

Non-Transformer27%

Total revenue 2016

• An increase in transformer revenue, mainly from private sector which 50% increase from last year.

• An increase in non-transformer revenue, mainly from Operation and Maintenance business which it is the first full year to recognize its revenue of 299 Bt’M compared to last year of 111 Bt’M.

Gross Profit Margin by products

QoQ

13

13

% 19

%

19

% 25

%

23

%

25

%

14

%

14

% 20

%

22

%

39

%

-38

%

47

%

28

%

47

%

47

%

27

%

27

%

15

%

38

%

Q1' 15 Q2' 15 Q3' 15 Q'4 15 Q1' 16 Q2' 16 Q3' 16 Q4' 16 2015 2016

Transformer Non transformer

• Improve in gross profit margin both Transformer and Non-Transformer group due to selective market which need engineering design in all business group of TRT

Total Gross Profit (GP) VS Net

Profit Margin (NP) VS SG&A

(Consolidated)

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SG&A still being in line with our budget

19%

26%

-2%

2%

23%22%

-5%

0%

5%

10%

15%

20%

25%

30%

2015 2016

GP NP SG&A

Interest Bearing Debt/Equity Ratio is in line with our business plan

1.12

0.99

1.31 1.251.37 1.38

1.49 1.46

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

0

200

400

600

800

1000

1200

1400

1600

1800

Interest Bearing Debt Interest Bearing Debt/Equity Ratio

Q1 2105 Q2 2105 Q3 2105 Q4 2105 Q1 2106 Q2 2106 Q3 2106 Q4 2106

Interest Bearing Debt/Equity Ratio

Mill Baht Times

15

Outlook 2017

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Outlook 2017

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Transformer Group

• Expected total revenue growth 15-20% from 2016.• Increase in Distribution Transformer Demand especially Utilities

sector due to spending 2016 and 2017 budget starting from 2017.• Increase in Power Transformer Demand due to increase in

Transformer demand to support ASIAN Grid as per PDP 2015.• Backlog as of 31.12.2016 of 1,012 Bt’M, of which 861 Bt’M to be

delivered in 2017, 122 Bt’M in 2018 and 29 Bt’M 2019.• Bids and quotations in process as of 31.12.2016 for transformer

group = 10,857 Bt’M with 20%-25% succession rate.• Expected gross profit margin 20%-23%

Outlook 2017

18

Non-Transformer Group

• Expected total revenue growth 45%-50%from 2016.• Expected 27% increase in revenue from operation and maintenance

from 2016 due to having potential service to be awarded in 2017.• Expected 73% increase in revenue from steel fabrication and EPC

from 2016 due to having backlog to be delivered in 2017 of 302 Bt’M.• Backlog as of 31.12.2016 of 1,202 Bt’M, of which 602 Bt’M to be

delivered in 2017, 300 Bt’M in 2018 and 300 Bt’M 2019.• Bids and quotations in process as of 31.12.2016 for non-transformer

group = 2,618 Bt’M with 20%-25% succession rate.• Expected gross profit margin 20%-23%

TRT Group Backlog As of 31.12.2016

Group Customer Total (1)+(2)+(3)

Delivery in 2017 (1)

Delivery in 2018 (2)

Delivery in 2019 (3)

Transformer 1. GOV+Local 653 566 87 -

2. Export 359 295 35 29

3.Transformer Service

- -

Total transformer 1, 012 861 122 29

Non-Transformer

4. Steel Structure & Fabricate

302 302 - -

5. Distributing Derrick/Arial truck

- - - -

6. Operating & Maintenance

900 300 300 300

Total non-transformer

1,202 602 300 300

Total 2,214 1,463 422 329

Transformer 46%

Non-Transformer

54%

Transformer

Non-transformer

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Bids and Quotations in Process As of 31 December 2016

Customer M’ Baht

1.MEA 2,000

2.PEA 2,500

3.EGAT 3,587

4.Local 1,800

5.Export 970

6. Transformer Service -

7. Distributing Derrick/Arial crane 1,500

8. Steel Structure & Fabricate 1,118

Total 13,475

** Expect to receive the above orders approximately 20-25%

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Forecast 2017 - 2019

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Forecast % Growth from last year 2017 2018 2019

Revenue growth from last year 25%-30% 19% 8%

Expected Revenue from Transformer Group as % of Total Revenue

68% 63% 64%

Expected Revenue from Non-Transformer Group % of Total Revenue

32% 37% 36%

Expected gross margin 20-23% 20%-23% 20%-23%

SG&A Growth 4% 5% 5%

SG&A as % of sales 17%-18% 15% 15%

Investment Progress of

New Distribution Transformer Plant

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Detail Time Schedule

Construction of Factory and office March2015 – March 2016

Installation of machinery and equipment April - August 2016

Test Run September - November 2016

Start the production December 2016

Investment Progress of

New Distribution Transformer Plant

23

1,000 1,500

4,000

7,500

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Before Investment After Investment

Distribution transformer Power Transformer

MVA

5,000

9,000

Increase Transformer Production Capacities

from 5,000 MVA to 9,000 MVA or 80% Increase After Investment

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25

APPENDIX

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APPENDIX TRT GROUP

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Summary of PDP 2015

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Summary of PDP 2015

*ทีม่า : www.eppo.go.th

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III.

Special Transformer

Capacity 1-10 MVA Rated Voltage 36 kV.

Capacity 5-300 MVA Rated Voltage 230 kV.

II.Distribution Transformer

Capacity 1-100 MVA Rated

Voltage 36 kV.

Products of Tirathai

I.

Power Transformer

30

Transmission line500, 230, 115 kV

Transmission line230, 115, 69 kV

PRIVATE SUBSTATIONBig Industry > 10 MVA

Transmission line230, 115, 69 kV

MEA’S SUBSTATION ~60 MVA

6.6, 22, 3324 kV

6.6, 3.3416/240, 400/230 kV

Distribution line24, 12/24 kV

Distribution line22, 33 kV

Infrastructure & Housing416/240 V

Industry & Big Building400/230 V

PEA’S SUBSTATION ~60 MVA

Step upTransformerPower Plant

Transmission Line

31

Distribution Transformer≤ 3,000 kV – 10,000 kV Voltage ≤ 33 kV

Power Transformer≤ 100 MVA Voltage ≤ 132 kV

Power Transformer>100 – 500 MVA Voltage

≤ 230 kV

TRT 11%

TRT33%

ABB34%

Daihen33%

TRT Local Market Share

TRT25%

DAIHEN25%

ABB25%

FUJI TUSO25%

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Government Sector

Private Sector

Main Customers

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Sub-contractor

Laos

CambodiaVietnam

Philippin

eMalaysia

SingaporeIndonesia

Brunei

Myanmar

JapanChina

India

Sri

Lanka

Oman

Saudi

Arabia

SyriaIran

Azerbaijan

Ghana

Australia

Nepal

Argentin

a

Trinidad

&

Tobago

Canada

Republic

of Korea

South Africa

Papua

New

Guinea

United Arab

Emirates

Export Countries

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TRT Competitive Advantage

TRT

Production Standards Corporate Compliance

Short Circuit Test Certificate

Test Laboratory

PM Export for Local Brand Awards

ISO Accreditation

HIGH-POWER

LABORATORYNETHERLAND

TESTING

No. 0140

ISO/IEC 17025certified by TISI

ISO 9001 certified by

MASCI

ISO 14001 certified by

MASCI

TIS 18001 certified by

MASCI

OHSAS 18001 certified by

MASCI

1999 2008

- CG Score 2016 – Good

- TRIS Rating for Companyand Bond in 2016 = BBB

Technology Developed from

35

2016

HV Gas Insulated SwitchgearAerial Crane Device and

Digger Derrick Unit

Tirathai E&S Co.,Ltd.

Products of TRT E&S

36

TERMINAL STATION

POWER PLANT

230, 500 kV

SUBSTATION

12, 22,24,33 kV

69, 115 kV

240/416 , 230/400 V

Power Network Products

Tirathai E&S Co.,Ltd.

37

Products of L.D.S.

Transformer Tank Drying Oven

38

Products of L.D.S.

39

Hongsa Power Plant Project

40

Products of L.D.S.

Belt Conveyor system

41