Business Summary August 20, 2018 Outline
Company Financial Industry Outlook
Company Financial Industry Outlook 2 We build foundation!!
Bored Pile
Diaphragm Wall
Soil Barrette Improvement Pile
Company Financial Industry Outlook 3 We build foundation!!
Company Financial Industry Outlook 4 Bored Pile/ Barrette Pile
For foundation of buildings, bridges, factories, roads, etc. 0.5 – 2.0 m. x Depth up to 100 m.
Company Financial Industry Outlook 5 Diaphragm Wall
For soil retaining system and permanent wall of deep basement, underpass tunnel, subway station, etc.
Company Financial Industry Outlook 6 Jet Grouting
For soil improvement both stability and strength : road works, airport runway, slope protection, dam, etc.
Company Financial Industry Outlook 7 We Build Impression!
Landmark Waterfront Samyarn Mitrtown Airport Rail Link EGAT Car park & HQ Bored Piles / Jet Bored Piles / D-Wall Bored Piles Bored Piles / Grouting Constructions
The One Residence The ICONSIAM ShowDC One9Five Rama9 Bored Piles Bored Piles / Jet Grouting Bored Piles Bored Piles
Company Financial Industry Outlook 8 We Build Impression!
Central Westgate Siam Square One AIA - CMC Wimutti Hospital Bored Piles Bored Piles Bored Piles Bored Piles/Barrette Piles/ D-Wall
Klong Suvarnabhumi TC Green I/II IKEA Westgate Le Luk Condo (A+B) Jet Grouting Bored Piles Bored Piles Bored Piles
Company Financial Industry Outlook 9 We Build Impression!
Starview Metro Avenue Equinox Phahol-Vibha South Interchange Bored Piles Bored Piles Bored Piles Bored Piles
Circle Living Prototype BMA Building Thai National Assembly AIA - Sathorn Bored Piles Bored Piles Bored Piles Bored Piles
Company Financial Industry Outlook 10 We Build Impression!
AP Groups LPN Development
Life Asoke-Rama9 Life Asoke Lumpini Park Rama9 L.P.N. Ville Nakorn In Bored Piles Bored Piles Bored Piles Bored Piles
Aspire Erawan Life on wireless L.P.N. Beach Jomtien L.P.N. Phetkasem 98 Bored Piles Bored Piles Bored Piles Bored Piles
Company Financial Industry Outlook 11 We Build Impression!
Pruksa Real Estate Ananda Development
Plum Condo Ph.1-2 Privacy Rama9 Buddha Port Asthon Residence 41 Bored Piles Bored Piles Bored Piles Bored Piles
Tree Interchange Chapter One IDEO Q Chidlom IDEO Mobi Rama 9 Bored Piles Bored Piles Bored Piles Bored Piles
Company Financial Industry Outlook 12 We Build Impression!
Narai Property Major Development
Parkland Charan Parkland Ratchada- Muniq SK23 Metris Ladprao Bored Piles Wongsawang Bored Piles Bored Piles Bored Piles
Parkland Parkland Maestro07 Maestro19 Phetkasem56 Phetkasem-Taphra Bored Piles Bored Piles Bored Piles Bored Piles
Company Financial Industry Outlook 13 Share Capital Information
as of August 16 , 2018 Price (B) 6.55
52 weeks High/Low (B) 9.05/5.95
No. of shares (MS) 749.88
Market cap (MB) 4,911.67
Major shareholders 1. Sangarayakul Family (49.67%) As of Mar 19, 2018 2. Thai NVDR (5.52%)
Free float (%) 43.69% As of Mar 19, 2018
First-day trade (mai) Dec 23, 2005
First-day trade (SET) Aug 06, 2015
Company Financial Industry Outlook 14 Executives
Dr. Chanet Sangarayakul Mr. Bordin Sangarayakul Senior Executive Vice President President Age : 43 Age : 44
Education : Education : Doctor of Engineering (structure), Master of Science (Construction Asian Institute of Technology Engineering and Management), Master of Engineering (structure), Virginia Tech (USA) Asian Institute of Technology Bachelor of Engineering (civil), Bachelor of Engineering (civil), Chulalongkorn University Chulalongkorn University
Mr. Pisun Sirisuksakulchai Mr. Somsak Viriyapipat Senior Executive Vice President Senior Executive Vice President Age : 44 Age : 59
Education : Education : Master of Art in Business Law, Chulalongkorn Bachelor of Engineering (mechanic), University King Mongkut’s Institute of Technology Master of Business Administration(MBA), North Bangkok Rockhurst University (USA) Master of Science (Construction Management), University of Wisconsin- Madison (USA) Bachelor of Engineering (civil), Chulalongkorn University
Company Financial Industry Outlook 15 Performance Timeline
Revenues (MB) Net Profits (MB)
1,800 Revenues Net Profits Listed in SET 350
1,600 founded 300 in 2002 Listed in mai 1,380 1,400 1,303 1,237 250 1,200 1,096 1,077 196 202 1,000 948 200 172 159 800 726 721 150 631 597 600 520 101 100 379 76 400 64 289 58 220 50 200 36 32 95 18 18 21 11 1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Company Financial Industry Outlook 16 Outline
Company Financial Industry Outlook
Company Financial Industry Outlook 17 Financial Highlights : Q2/2018
Performance Leverage
Revenue 237.2 MB Debt to Equity Ratio 0.30 Gross Profit 54.3 MB Gross Gearing Ratio 0.01 Net Profit 31.1 MB Net Gearing Ratio -0.37
Profitability Liquidity
GPM 22.9% Current Ratio 2.57 Quick Ratio 1.71 NPM 13.1% Cash Ratio 1.38 ROA 14.5% ROE 16.2% Cash and Cash equivalent 317.0 MB
Company Financial Industry Outlook 18 Revenue & Profit : Consolidated
40.0% 1,750 Q1 Q2 Q3 Q4 Year End %G.P. %N.P.
35.0% 1,500 1,380 30.0% 25.1% 24.7% 1,298 1,237 24.4% 23.4% 22.3% 25.0% 1,250 20.7% 1,077 16.0% 16.2% 20.0% 1,000 16.3% 14.2% 14.0% 12.3% 15.0% 721 750 10.0%
500 5.0% 389 379 381 394 338 339338324 329 306 0.0% 271 293278 266 256 251256 256 237 250 169 188
108 -5.0% Revenue (Million Baht) Revenue
0 -10.0% 2013 2014 2015 2016 2017 2018 Q1 266 339 329 251 256 394 Q2 338 338 381 256 169 237 Q3 389 324 256 293 108 Q4 306 379 271 278 188 Year End 1,298 1,380 1,237 1,077 721 %G.P. 20.7% 22.3% 25.1% 24.4% 23.4% 24.7% %N.P. 12.3% 14.2% 16.3% 16.0% 14.0% 16.2% Company Financial Industry Outlook 19 S&A Expense : Consolidated
250 Q1 Q2 Q3 Q4 Year End %S&A
225 15.0%
200 9.8% 175 10.0% 6.4% 6.5% 6.2% 150 5.5% 5.2%
5.0% (MillionBaht) 125
100 79 0.0% 71 72 75 70 70
50 -5.0% 23 23 24 19 19 18 19 20 S&A Expense Expense S&A 18 18 18 17 17 18 18 18 18 25 13 17 16 15 16
0 -10.0% 2013 2014 2015 2016 2017 2018 Q1 13 16 18 17 16 19 Q2 17 19 18 17 18 20 Q3 19 15 18 18 18 Q4 23 23 24 18 18 Year End 71 72 79 70 70 %S&A 5.5% 5.2% 6.4% 6.5% 9.8% 6.2% Company Financial Industry Outlook 20 Net Profit : Consolidated
250 Q1 Q2 Q3 Q4 Year End %N.P. 225 25.0% 202 196 200 20.0% 16.3% 16.0% 16.2% 175 14.2% 172 14.0% 159 15.0% 12.3% 150
10.0% 125
(Million Baht)(Million 101 100 5.0%
71 75 61 61 0.0% 56 55 51 53 47 47 47 47 50 46 40 43 42 32 31 31 -5.0% Net Net Profit 26 24 25 16 5
0 -10.0% 2013 2014 2015 2016 2017 2018 Q1 26 43 61 47 56 71 Q2 46 55 61 31 16 31 Q3 47 47 32 42 5 Q4 40 51 47 53 24 Year End 159 196 202 172 101 %N.P. 12.3% 14.2% 16.3% 16.0% 14.0% 16.2% Company Financial Industry Outlook 21 Balance sheet : Consolidated
2,000 Assets Liabilities Equity D/E Ratio Current Ratio 5.00 1,750 3.64 4.00 1,500 3.03 2.72 2.81 2.57 3.00 2.08 1,250 1,164 1,266 1,090 2.00 987 1,016 1,000 924 0.58 884 1.00 911 841 791 758 750 627 0.43 0.00 0.28 0.28 0.22 0.30
500 -1.00 Amount (Million Baht) (Million Amount 361 382 253 225 249 250 166 -2.00
0 -3.00 2013 2014 2015 2016 2017 Q2,2018 Assets 987 1,266 1,164 1,016 924 1,090 Liabilities 361 382 253 225 166 249 Equity 627 884 911 791 758 841 D/E Ratio 0.58 0.43 0.28 0.28 0.22 0.30 Current Ratio 2.08 2.72 3.64 3.03 2.81 2.57 Company Financial Industry Outlook 22 Dividends vs Net Profits (company)
450
Net Profits Dividends %Dividends %Dividends 700.0% 400 (company) (policy) (actual)**
600.0% Payment Dividend per 350 Dividend* XD Record date Date Share (Baht) 500.0% 300 Interim Dividend Payment 24-27 Aug 2018 27 Aug 2018 7 Sep 2018 0.12 400.0% Annual Dividend Payment 250 300.0% 208 199
(Million Baht) (Million 184 200 181 200.0% 169 155 98% 160 72% 95% 127% 150 54% 100.0% 105%
100 78 83 75 0.0% 56 59
50 -100.0% Dividends
0 -200.0% 2012 2013 2014 2015 2016 2017 2018 Net Profits 78 155 184 208 160 59 (company) Dividends 56 83 181 199 169 75 %Dividends 40% 40% 40% 40% 40% 40% 40% (policy) %Dividends 72% 54% 98% 95% 105% 127% (actual)** *source of dividend : company net profit & retained earnings **compared with company net profit Company Financial Industry Outlook 23 Outline
Company Financial Industry Outlook
Company Financial Industry Outlook 24 Action Plan 2016-2017
Under Construction / pre-construction projects (only major projects)
Type of works Amount Project 2016 2017 2018 2019 2020 2021 2022 2023
26 billion baht Jira - Khon Kaen
Orange Line (Thailand 110 billion baht Cultural Center - Minburi)
Pink Line (Khaerai – 57 billion baht Minbur)
Yellow Line (Latphrao – 55 billion baht Samrong)
20 billion baht Pattaya - Maptaput
Bang Pa-in - Saraburi - 85 billion baht Nakhonratchasima
Bangyai - Banpong - 56 billion baht Kanchanaburi
Company Financial Industry Outlook 25 Action Plan 2018
Action Plan 2016
Action Plan 2018
Action Plan 2017 44 projects with total 2,021 billion baht
Remark : Ministry of Transport
Company Financial Industry Outlook 26 Action Plan 2018
21 projects will be approved by the PPP Board or the Cabinet by this year with total 914 billion baht
23 projects will complete the tender or start the construction by this year with total 1,107 billion baht
Remark : Ministry of Transport
Company Financial Industry Outlook 27 Constructions period
Related to Pylon’s works
Remark : Ministry of Transport
Company Financial Industry Outlook 28 Constructions period
Related to Pylon’s works
Remark : Ministry of Transport
Company Financial Industry Outlook 29 Summary Action Plan 2018
only for projects that related to Pylon’s works
Type of works Amount Project
• Light Red Line (Bangsue – Huamark) and Dark Red Line (Bangsue - Hualamphong) • Purple Line (Taopoon - Ratburana) • Dark Red Line (Rangsit - TU Rangsit) 9 Projects with • Light Red Line (Talingchan - Saraya and Talingchan – Siriraj) 488 billion baht • Orange Line (Thailand Cultural Center - Bangkhunnon) (2018-2027) • Mass Transit system : Phuket • Mass Transit system : Chiang Mai • Mass Transit system : Nakhon Ratchasima • Mass Transit system : Khon Kaen
• Motorway Rangsit – Bang Pa-In 4 Projects with • Motorway Bangkok - Mahachai 114 billion baht • Expressway Rama 3 - Dao Kanong - Outer Ring (2018-2022) • Expressway Northern Route N2 and E-W Corridor
Remark : Ministry of Transport
Company Financial Industry Outlook 30 Summary Action Plan 2018
only for projects that related to Pylon’s works
Type of works Amount Project
• High speed train : Bangkok – Chiang Mai 4 Projects with • High speed train : Bangkok – Hua Hin 737 billion baht • High speed train (TH-CH) : Bangkok – Nong Khai (2018-2023) • High speed train (linking 3 airports) : Don Mueang - Suvarnabhumi - U-Tapao
Nakhonpathom-Chumphon / Lopburi-Paknampho / Mabkaboa-Jira / 12 Projects with Paknampho-Denchai / Jira-Ubonratchathani / Khonkaen-Nongkhai / 526 billion baht Chumporn-Surat Thani / Surat Thani-Hatyai-Songkha / (2018-2025) Hatyai-Padang Beza / Denchai-Chiangmai / Denchai-Chiangrai-ChiangKhong / Banpai-Nakornphanom
1 Project with 2 billion baht • Khon Kaen Airport Development (2018-2020)
Remark : Ministry of Transport
Company Financial Industry Outlook 31 Mass transit system
Expansion of condominiums, office buildings and other high-rise buildings from private sector
Company Financial Industry Outlook 32 Outline
Company Financial Industry Outlook
Company Financial Industry Outlook 33 Company Backlog : Aug 17, 2018 Current Work on Hand 1,039.10 MB
49.95 , 4.8% 346.90 , 33.4%
Government sector (Labor only)
Private sector (Labor and Material)
Private sector (Labor only) 642.25 , 61.8% Million baht
Company Financial Industry Outlook 34 Digital Contractor
Pylon’s mobile application
Pylon’s copyrights Unique design and development application Adjustable and high flexibility to customize and improve Work with Pylon’s ERP system
To increase efficiency and quality To increase customer satisfaction
Company Financial Industry Outlook 35 Digital Contractor
To increase efficiency and quality
Collect data Process and • Data Quality Control centralization • Standardization • Paperless • Identify the key • Real-time check-points key in • Approval • Reporting process
Productivity Problem solving and Budget • Real-time Control detection of • Work progress problems • Material • Troubleshooting control promptly • Machine • Real-time utilization tracking
Company Financial Industry Outlook 36 Digital Contractor
Operation
Collect data Process and
Quality Control Improvement
Quality and Efficiency
Productivity and Budget Problem solving Control
Machine and Equipment Provide Data Analysis real-time
Improvement response to
Project Quality and Procurement Efficiency Management Customers
Financial & Human Accounting Resource ERP System
Company Financial Industry Outlook 37 Company Highlights
Industry outlook: benefit from Government Projects in the long run Continue making excellent net profits Keep high dividends payment (not less than 40% of net profits) Maintain strong financial status (low debts and high Liquidity) Show strong and sustainable growth
Company Financial Industry Outlook 38 Summary
•Reputation for •Government’s mega Quality and projects Promising Reputable Efficiency •Few competitors Industry Foundation •Well-equipped •Low debts level Prospects Professionals machinery •Low risk for material •One of the top price volatility foundation company in Thailand
•Committed •Low D/E Ratio management team •Continuing revenue •Highly regarded growth and experienced •Acceptable profit Strong team of engineers margin Experienced Financial •Relationship •Promising dividends Team Position between Company payment ratio of 40% and Customers
Transforming to Digital Company
Company Financial Industry Outlook 39 Q & A