1. business and industrial

Opportunity Day
LOXLEY PUBLIC COMPANY LIMITED
11 March 2015
"Inspired Choice for Customers,
Business Partners and Investors"
Agenda
1. Business Structure and Overview
2. Financial Highlights
3. Strategy and Sustainable Growth
2
Business Structure and Overview
3
Business Structure and Overview
Loxley in Brief
• Established in 1939
• Loxley Group : 22 subsidiaries
and 16 Associate companies
• Listed company in MSCI Index
and SET100
• Last 5-year revenues : THB
10,000-15,000 million/Year
ICT &
Project
Trading
Business
Service
Business
Joint
Venture
Business
4
Business Structure and Overview
Business Structure
ICT & Project
Trading
Service
Associates
ICT & Telecom
- Telecom network &
service
- Automatic banking machine
and computer system
- Hardware & Software
Solution + maintenance
service
Project
- Power substation and water
management system
- Broadcasting network
solution: DTV, VHF & UHF
provider
Technology
- Installation of expressway
management system
- Railway signaling system
- Real estate management &
service
- Distribution of consumer
and chemical product
- Distribution of
construction equipment
- Automobile service
- Security system provider
- Security guard service
• BP-Castrol 40%
• NS Blue Scope
Lysaght 20%
• NS Blue Scope Steel
20%
• L-Solar 1 45%
• Thai Fiber Optics
40%
• Loxley Gtech 35%
• Oriental Post 50%
• Thanthiya 30%
5
Business Structure and Overview
Core Business
Power
Substation
Locomotive
Telecom
Network
Transmission
Line
ICT – Hardware
Software Solutions and
System Integrator
Signaling
System
Toll
Way
Project
ICT & Project
Business
Construction Materials
เตาเผาขยะ
Security Solution
Services
6
Financial Highlights
7
Financial Highlights
Annual Comparison
Consolidated Profit & Loss Statement
THB Million
Sales
Costs
Gross profit
Selling & admin expenses*
EBIT before equity profit
Equity profit from associate
EBIT
Finance cost
Income tax
Non-controlling interest
Normalized net profit
Provision for impairment
Gain from sales of investment
Net profit
Key financial ratios
% Gross margin
% SG&A/sales
% Normalized Net margin
% Net margin
EPS (baht/share)
Y2012
14,135
12,093
2,042
(2,017)
169
701
870
(232)
(115)
3
526
526
Y2013
14,929
12,704
2,225
(2,265)
43
739
782
(216)
(105)
(38)
422
(18)
185
590
Y2014
14,476
12,195
2,280
(2,265)
127
543
671
(163)
(125)
(34)
349
(152)
155
353
14.4%
14.3%
3.7%
3.7%
0.25
14.9%
15.2%
2.8%
4.0%
0.28
15.8%
15.6%
2.4%
2.4%
0.16
• Core business
improved but
net profit
decreased due
to lower equity
profit from
associate and
higher extra
expenses
*SG&A: Different grouping compared to audited financial statement, extra expense is separately shown for analysis purpose
Note: Some numbers may not be summed due to rounding errors
8
Financial Highlights
Sales and Gross Profit Margin
Sales & Gross Profit Margin
• Sales
THB:Million
14,127
14,135
780
774
4,617
3,869
8,730
Gross
Profit
Group
Margin
14,929
892
3,872
9,492
10,165
14.4%
14.9%
14,476
Service
7%
1,055
4,106
9,315
Trading
29%
ICT &
Project
68%
THB:Million
ICT & Project Group
Trading Group
Service Group
Total
GPM
14.9%
Y2014
9,315
4,106
1,055
14,476
15.8%
– ICT & Project Based Group:
o Digital TV and power substation projects
recorded higher sales but decrease came
mainly from the completion of some
telecommunication project and the delay
of project biddings as economic and
political instabilities occurred
– Trading group:
o Consumer and chemical products were
still a strong sales base with a growth
driver from construction material as
mass transportation expanded
15.8%
Y2013
10,165
3,872
892
14,929
– Overall: Increased from Trading and
Service groups but decreased from ICT &
Project based
Change
(8%)
6%
18%
(3%)
– Service group
o Increase due to customer expansion
base to various industries
• Gross Profit Margin (“GPM”)
– Due to high competition, some projects
produced relatively low GPM however,
being conglomerate added the variety of
the projects to the business portfolio which
eventually yielded a higher GPM in 2014
– Additionally, small projects rewarded in
2014 also provided a better GPM as well
9
Financial Highlights
SG&A, Equity Profit, and Net Profit
EBIT before
Equity
Profit
EBIT
before
THB:Million
THB:Million
Norm alized net profit
Equity Profit
from Associates
Equity
profit
Net Profit
Gain from sales of investment and
provision for im pairment
THB:Million
THB:Million
-27%
+195%
Net
Profit
-40%
590
353
168
739
4
543
422
127
349
43
Norm alized net profit
Norm alized net profit
• EBIT before Equity Profit
– By considering the EBIT before
equity profit as a result of core
business’ operation, the figure
showed a significant
improvement in core business.
This was due to higher GPM and
effective expense control policy
• Equity Profit from
Associates
– Major associates’ sales decrease
slightly but their net profit
dropped because additional
expenses were used to sustain
their market share in a highly
competitive market
Net between gain from sales of
investment and provision for impairment
Net between gain from sales of
investment and provisionTHB:Million
for impairment
• Net Profit
THB:Million
Net
590
353
– Normalized
net profit dropped
Profit
Net from
590 422 MB to 349
353MB due to
Profit
168 from
lower equity profit
associate
168
4
– Despite a gain from sales of
4
422
investment in Guardfire
Limited349
of 155 MB, net profit was lower
422
349
than that of 2013,
due to extra
expenses (allowance for
impairment of investments,
impairment losses on assets ,
and allowance for doubtful
accounts)
10
Financial Highlights
Joint Venture Revenue Structure
•
Key profit contributors are BP Castrol and NS BlueScope Group
Equity Profit from Associate
THB:Million
Profit
Equity profit
23,114
2,400
Revenue
23,544
22,340
25,000
“NS BlueScope Lysaght /
NS BlueScope Steel”
20,279
1,900
20,000
16,646
1,400
2,207
900
400
(100)
701
1,173 357 1,215 376
15,000
2,533
739
2,002
10,000
543
5,000
• JV of BlueScope, Nippon Steel &
Sumitomo Metals Corporation and
Loxley
“BP-Castrol (Thailand)”
• The only local manufacturer of
• Produces and distributes engine
zinc/aluminium metallic coated steel
lubricants under the trade names of • Total annual production capacity
“Castrol” and “BP”. Market share
o 375,000 tonnes of metallic
represents one of the top 5 leading
coated steel
lubricant distributors in Thailand.
o 90,000 tonnes of painted steel
-
11
Financial Highlights
Financial Position – 31 December 2013 and 2014
6,067
6,427
8,172
8,456
1,287
1,514
5,389
5,158
•
DE ratio of 1.2-1.8 times
•
Interest bearing debt to equity
of 0.4-1.0 times
6,411
5,309
Leverage Ratios
Assets
LIA & SE
Assets
31 Dec 2013
30-Jun-14
31
Dec 2014
Shareholders' equity
Non current liabilities
Non current assets
Current assets
THB'Million
Current assets
Non current assets
Total assets
Current liabilities
Non current liabilities
Total liabilities
Shareholders' equity
Current ratio
D/E ratio
BV/Share (Baht)
ROA
ROE
LIA & SE
Current liabilities
Consolidated
2013
2014
8,172
8,456
5,158
5,309
13,330
13,765
6,427
6,067
1,514
1,287
7,941
7,354
5,389
6,411
1.3
1.5
2.6
4.4%
10.9%
1.4
1.1
2.8
2.6%
5.5%
Times
1.77
1.78
1.47
1.35
Change
3%
3%
3%
(6%)
(15%)
(7%)
19%
1.15
0.99
0.75
0.56
D/E ratio
0.65
0.41
Interest bearing debt/Equity
12
Strategy and Sustainable Growth
13
2015 Revenue Base and Growth Drivers
Business Plan Overview
ICT & Project Based
Sales
Trading
“Backlog with
High potential to drive
revenue growth”
THB'Million
9,499 10,158
9,315
Order Backlog
THB’Million
11,260
7,767
Sales
764
Service
1,054
Sales
THB'Million
3,875
3,873
4,106
7,419
ICT &
Project
Trading
Business
Service
Business
Joint
Venture
Business
THB'Million
896
“Concrete
recurring
revenue to
support
revenue base”
“Another source
of recurring
income with
strong growth
driver”
“Recurring net
profit”
Equity profit
THB'Million
701
739
543
Joint Venture
14
Strategy and Sustainable Growth
Project Based Business
Strong Revenue Base
1. Avg. revenue for last 3 • Well-established
years of ≈ 9,600
company with
MB/year
excellent and
long2. Current backlog of
experienced
≈7,400 MB (67% will
work reference
be 2015 revenue)
3. Recurring income base • Top leaders in
the market
from recurring
projects by 4,300 –
• LongICT &
5,500 MB per year
experienced
Project
team
o Power substation:
Base
market share of
• Strong technical
10%-15% from
and project
• ICT &
Telecom
market value (1,300
management
• Project
– 1,500 MB per year)
skills
• Technology
o ICT & telecom:
network expansion,
MA and software
update ≈ 3,000 –
4,000 MB per year
Key Growth Drivers
Strengths
• Strong support
from vendor and
partnership
1) Telecom
• TOT Business reforming => Opportunity to be a
partner or a contractor
• Telecommunication infrastructure drivers
o CAT, MEA, and PEA induced by government
infrastructure investment
o Digital economy
o High growth of broadband user and smart phone
subscriber => capacity expansion needed
2) ICT
• Opportunity from financial institutions
o New ATMs to accommodate Chip Card
o Automated solutions to expand service channels &
boost fee income
• Intelligence everywhere trend (internet and smart
machine)
3) Project
• Power substation
o Top 3 of PEA’s modular substation candidates
o Being eligible for EGAT projects in 2015 (Cover all
markets, MEA, PEA & EGAT)
• Rail engineer (3Bttn project)
o Red line mass transit 4.8 Btbn
o Airport link locomotive 4.9 Btbn
o Re-signaling for SRT project
• Broadcast
o DTV Phase I-III (CH5, MCOT, PRD)
15
Strategy and Sustainable Growth
Project Based Business – Order Backlog, High Potential, and Potential (as of 31 Dec 2014)
High Potential 24.3 Billion
Order Backlog 7.4 Billion
Order Backlog
•
•
ICT & Telecom •
(Unit: Million Baht)
• ICT works
• Power substation
• Transmission line
• Broadcasting
• Traffic & toll system
• Prison construction
• Other projects
Total ICT & Project based
Trading business
Service business
Total
1,540
1,000
800
470
500
300
920
5,530
720
1,170
7,420
Expected to record revenue by 70% in 2015
8,700 MB
High
Potential
24.3 bnbt
Backlog
7.4 bnbt
“Backlog builds
concrete revenue
base….
High potential
and potential line
up for future
growth”
•
•
•
High Potential
≈ THB 24,300 MB
Service
980 MB
•
•
Construction
material
Project
4,900 MB
Trading
500 MB
•
•
Technology
9,300 MB
Airport link train 4.8 billion
Railway signaling 2.7 billion
Prison construction 1.0 billion
Digital TV 0.8
billion
Transmission
line 0.6 billion
Power
substation 2.4
billion
Potential 39.4 Billion
Potential
39.4 bnbt
Telecom 1.0 billion
ICT 3.0 billion
Book consignment,
POS and ERP 3.4
billion
Radio Frequency
Identification
3,000 MB
Potential
39,400 MB
Bus Electronic
Ticketing
System
2,500 MB
ICT for Education and
Banking
7,800 MB
Transportation and
Rail Projects
12,000 MB
16
Strategy and Sustainable Growth
Trading Business
Strong Revenue Base
Strengths
• Recurring revenue from consumer & chemical
• Strong distribution network (> 50,000 shops for
products and auto parts about 3,300 MB/year
consumer product and > 500 factories for chemicals)
• Avg. revenue for last 3 years of ≈ 4,000 MB/year • Long established and trusted by trade partners
Parts Zone
Inter Trade
• Loxley’s international
gateway to overseas
market focusing on
GMS & AEC
Intertrade
3%
Trading
Auto parts Construction Materials
5%
Others
7%
Loxley Trading
• A distributor of leading
consumer products through
wholesale stores, retail
stores, modern retail stores,
hotels, leading restaurants,
and consumer groups as well
as an organizer of marketing
events and activities for the
merchandize owners
• A distributor of vehicle spare
parts and motorcycle spare parts
of the After Market as well as
equipment and tools for vehicle
services, industries and other
uses
Construction
materials
14%
Consumer
products
47%
Chemicals
24%
• A provider of world class construction materials
with the service to all phase of the project from
design development to the installation at the
construction site. Products include
o Roofing system
o Membrane
o Lighting solution
o Green products
o Walling & cladding
o Elevator & escalator
Chemical Group
• A Chemical trader by importing chemical raw
materials from overseas and supplying to
various types of industries
o Cosmetic,
o Ceramic and Glass,
o Food and
Pharmaceutical,
o Feed and Farm,
o Paint and Ink,
o
o
o
o
Rubber and Plastic,
Petrochemical,
Agrochemical,
Water Treatment,
etc.
17
Strategy and Sustainable Growth
Trading Business
Key Strategies & Action Plans
Increase recurring revenue base 50% in 3 years thru strong
distribution network of over 50,000 shops/outlets/factories
Expand Intertrade with local partners thru distribution network
more than 2,000 outlets in 2015 and 5,000 outlets in 2017
Trading
Increase gross margin thru Integrated supply chain and high
margin business
Focus on developing OWN brands, factories and networks as well
as new networks/products/markets and to sustain growth 15% per
year
Secure backlog and high potential for Construction Materials
- Backlog
- High potential
717 MB
500 MB
18
Strategy and Sustainable Growth
Trading Business
INTERTRADE DEPARTMENT
International Markets
Thailand
Product Supply & Domestic Sales
China
Cambodia
Lao
Myanmar
Vietnam
Product Categories :




Consumer Good
Automotive
Construction Mat.
Technology & etc.
Trading
China
Partner
&Distribution
coverage
• Sinopec Group (China):
10,000 outlets in gas
station thorough China
• Supermarkets
• Traditional trade
• CRV (China and Hong
Kong) 4,000 outlets
Myanmar
• MK Group (Distributor)
• Supermarket – 25 outlets
• Traditional Trade – Major
city more than 1,000
outlets
Vietnam
• Supermarket – 16
brands, 208 outlets
• Convenient Store – 5
brands, 255 outlets
• Traditional trade
• Distribution partners in
other cities
19
Strategy and Sustainable Growth
Service Business
Strong Revenue Base
• Recurring revenue from concession
about 600 MB/year
• Avg. revenue for last 3 years of ≈ 900
MB/year
Security Management
Strengths
• Strong business partners – ICTS & LETS
• Proficiency in aviation (airport, airlines, &
cargo) and general guard businesses
• Experienced team with high technological
skills and professional training
Client Portfolio
• Expand customer base to support growth
Industrial Estate
2%
Energy
2%
Communication
1%
Number of contracts
Service
100
70
80
Services
46%
Transport
49%
Security Service
• Security in Airport
o CCTV
o Foreign object detection
(“FOD”)
o Car park management system
• Other services
o E-PP
o E-Ticketing
20
Loxley Energy Group
Existing
2015 Onward
Solar Farm
•
•
•
•
L Solar 1
VSPP: 8.67 MW
Adder: 8 Baht for 10 years
Annual revenue: 160 MB
Annual net profit: 80 MB
L Solar 2
• VSPP: 10 MW (2 plants)
• FIT: 5.66 Baht for 25 years
L Solar 3
• SPP: 40-45 MW
• Under studying process
Wind Farm
•Wind testing process
•6 MW in the South of
Thailand where study
shows a positive potential
•Expected to commence in
2016
Waste Management / Biomass
•Waste burner
•Kompogas
•Biomass
•Under studying process
21
Disclaimer
The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of
an offer or invitation to purchase or subscribe for share in Loxley Public Company Limited (“Loxley” and shares in Loxley, “shares”) in any jurisdiction nor
should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks,
uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which Loxley operates and
general achievement of Loxley business forecasts, which will cause the actual results, performance or achievements of Loxley to differ, perhaps
materially, from the results, performance or achievements expressed or implied in this presentation.
This presentation has been prepared by the management of Loxley. The information in this presentation has not been independently verified. No
representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of
the information and opinions in this presentation. None of the Loxley or any of its agents or advisers, or any of their respective affiliates, advisers or
representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or
otherwise arising in connection with this presentation.
This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly
for any investment decision-making or for any other purposes.
This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced,
redistributed or made available to any other person, save in strict compliance with all applicable laws.
22
Thank you
Investor Relations
Contact Person :
Boonlert Jaimun
Tel: 66 (0) 2348-8141 Fax: 66 (0) 2348-8614
E-mail: [email protected]
Next Opportunity Day
1H2014’s operating performance
Tuesday, 1 September 2015
Slot 5, 14:10-15:10 PM
Loxley Public Company Limited
102 Na Ranong Road, KlongToey
Bangkok 10110, Thailand
www.loxley.co.th
Trinapan Mahanavanont
Tel: 66 (0) 2348-8629 Fax: 66 (0) 2348-8614
E-mail: [email protected]
23
Factsheet
Balance Sheet and Statement of Cash Flows
Consolidated Balance Sheet
THB Million
Cash
A/R net
Inventories
Other current assets
Investments in associates
PP&E net
Other non-current assets
Total assets
OD
A/P net
Current portion of LT
Other current liabilities
Non-current liabilities
Total liabilities
Authorized capital
Retained earnings (deficit)
Paid-up capital
Premium on ordinary shares
Other components of equity
Non-controlling interest
Total shareholders' equity
Key financial ratios
Current ratio
D/E ratio
ROE*
ROA*
2012
558
5,403
1,233
680
3,634
1,121
700
13,330
3,214
2,001
180
1,305
1,829
8,528
2,000
947
2,000
1,654
202
4,802
2013
759
5,526
1,277
610
3,146
1,248
765
13,330
2,264
2,063
227
1,873
1,514
7,941
2,331
1,237
2,100
1,740
312
5,389
1.18
1.78
11.0%
3.9%
1.27
1.47
11.0%
4.4%
2012
(1,628)
154
1,056
(418)
976
558
2013
767
1,030
(1,597)
200
558
759
Change
36%
2%
4%
(10%)
(13%)
11%
9%
0.001%
(30%)
3%
26%
44%
(17%)
(7%)
17%
31%
5%
5%
55%
12%
2014
1,757
4,410
1,319
969
3,049
1,039
1,222
13,765
1,629
2,324
343
1,770
1,287
7,354
2,331
1,390
2,265
503
1,945
308
6,411
Change
80%
5%
0%
30%
(7%)
(3%)
99%
13%
(17%)
(17.8%)
87%
45%
(19.8%)
(6%)
17%
141%
13%
20%
48%
46%
1.39
1.15
5.5%
2.6%
*Calculated on an annualized basis
Consolidated Statement of Cash Flows
THB Million
Operating cash flow
Investing cash flow
Financing cash flow
Net increase (decrease) in cash
Beginning cash
Ending cash
Change
147%
569%
(251%)
148%
(43%)
36%
2014
1,383
230
(613)
999
759
1,757
Change
(288%)
93%
(183%)
737%
(11%)
80%
Note: Some numbers may not be summed due to rounding errors
24