CH. Karnchang Public Company Limited Presentation 3Q16
CONTENTS 1 01 02 03 04 05 06 At a Glance Strong Construction Future Outlook Strong Investment Strong Performance Appendix About CK CK Business Model Strong Backlog Infrastructure Outlook Strong Recurring Incomes Contribution to CK Construction works Financial Performance Appendix Investment Outlook
ABOUT CK 2 1987 First expressway concession : BECL 1995 -CK Listed on the SET on Aug 3. - BECL Listed on the SET on Aug 31 1998 First underground mass transit : BMCL 2006 BMCL listed on the SET 2008 TTW listed on the SET 2011 Founded CKP as a holding company 2013 CKP listed on the SET 2016 BEM traded under new name 1972 1994 1996 2004 2007 2009 2012 2015 Founded CK with initial registered capital of 1.40 MB on November 27, 1972 - Converted into public company - Increased registered capital to 700 MB Increased registered capital to 1,050 MB -Founded SEAN. -BMCL & TTW began commercial operations Gained total amount of 877 MB from CK Warrant Expanded into other energy businesses NN2 COD, Signed Xayaburi project, the biggest value in CK history Amalgamation of BEM with registered capital to 15,285 MB Industry Sector Market Cap. (As of 16/01/17) No. of Share Property & Construction Construction Services 1423.5 Million USD 1,693,899,970 shares First Trade Date 03 Aug 1995 Par Value Dividend Policy About CK 1.00 Baht 40 % of Net Profit Major Shareholder (As of 13/09/16) 1 Mahasiri Siam Co.,Ltd. 18.68% 2 CH. Karnchang Holding Co., Ltd. 10.36% 3 CK Office Tower Co., Ltd. 5.51% 4 Thai NDVR Co., Ltd. 4.26% 5 Bangkok Bank PCL. 2.30% 6 State Street Bank Europe Limited 1.14% 7 K Equity LTF 1.12% 8 K Equity 70:30 LTF 1.12% 9 K Equity Dividend LTF 0.94% Shareholder Structure As of 09/11/2016 Others 33.41% Trivisvavet Family 37.54% Local Funds 22.47% Foreign Investors 6.58%
CK BUSINESS MODEL 3 To be the comprehensive contractor - infrastructure developer - concession investor to create synergy and complementary business. Concession Operation Construction Investment Transportation Water 30.62% 19.40% Construction Revenues Investment Revenues Power 30.25% Dividend Capital Gain Construction Dividend Work
Strong Backlog - Current Projects (As of Sep 30, 2016) Period Contract Value * K-Factor projects (Million USD) Remaining Value (Million USD) 4 Progress 1. MRT Purple Line - Elevated Structure, Contract 1 - Supply and Installation of M&E System in the MRT, Contract 4 * 2009-2016 2013-2016 418.9 565.2 0.9 215.4 99.7% 61.9% 2. MRT Blue Line (Extension) - Underground Civil (Sanam Chai-Tha Phra), Contract 2 - Trackwork, Contract 5 3. MRT Green Line - Elevated Structure and Depot, Contract 1 - Trackwork, Contract 2 2011-2017 2011-2017 2012-2016 2013-2017 4. Xayaburi : A Run-off-river Hydropower Project 2011-2019 2,664.9 898.1 66.3% 5. Si Rat (Sector B+) Expressway 2012-2016 635.6 12.7 98.0% 6. The Cogeneration Power Project No.2 (BIC-2) 2014-2017 121.8 31.0 74.5% 7. 2nd Tap Water Treatment Plant in Samut Sakhon Nakhon Pathom 2014-2016 82.0 28.3 65.5% 8. Capacity Expansion Project in Pathum Thani Rangsit 2014-2016 10.4 1.8 83.0% 9. The Medical Center Building and Facilities Mae Fah Luang University 2015-2018 39.0 27.9 28.5% 10. Underground Manholes and Ductbanks Project with the MRT Green Line 2015-2018 30.2 26.8 11.5% 11. The Diagnosis and Treatment Building and Facilities @ Mae Fah Luang University 2015-2018 33.0 27.9 15.3% 12. MRT Blue Line (Extension) : M&E - E&M and MRT Blue Line : communication systems 2015-2017 29.8 11.6 61.0% 13. MRT Blue Line : Maintenance Services and E&M Systems 2015-2023 35.9 32.8 8.4% 14. MRT Purple Line Bang Pai Tao Poon : Maintenance Services and E&M Systems 2015-2023 42.9 42.9 0.0% 15. The raw water intake relocation project for Bang Pa-in 2015-2017 3.9 3.0 23.5% 16. SRT Double Track Railroad : Chira Junction - Khon Kaen Section 2015-2018 618.5 394.0 9.0% 17. Motorway No.4, Pattaya-Map Ta Phut Section, Phase5 2016-2018 20.5 19.4 5.5% 18. The Construction of the 230/500 kv Nabong Substation 2016-2019 62.1 48.1 22.5% 19. Motorway, Bang Pa-in Nakhon Ratchasima Section 2016-2019 51.3 51.2 0.1% 20. Repair of Si Rat Expressway : Period 3 Phase 5, Sector D (Asoke-Srinagarindra) 2012-2016 0.9 0.9 0.0% 21. Other Projects 2012-2016 237.2 41.0 82.7% * * * * * * * * * * 282.1 132.0 371.9 63.3 12.7 31.0 37.2 16.8 95.5% 76.5% 90.0% 73.5% Total 6,553.8 2,013.8
STRONG BACKLOG 5 Signed Projects in 2016 Signed Project Value (Million USD) Upcoming Projects Status Project Value (Million USD) 1. Motorway, Bang Pa-in Nakhon Ratchasima Section Aug 2016 51.3 1. Motorway, Bang Pa-in Nakhon Ratchasima contract 4 To be signed in 1H17 56 2. Xayaburi : A Run-of-river Hydropower Project (Variation Order) 3. The Construction of the 230/500 kv Nabong Substation 4. The Construction of Highway No.7, Pattaya Map Ta Phut Section, Phase 5 Jul 2016 548 Apr 2016 62 Mar 2016 20.5 2. MRT Blue Line Extension M&E To be signed in 1H17 706 3. MRT Orange Line : Contract 1 To be signed in 1H17 584.7 4. MRT Orange Line : Contract 2 To be signed in 1H17 610.3 5. MRT Orange Line : Contract 5 To be signed in 1H17 138.5 2,809 Total 681.8 Signed Project (Million USD) 647 3,343 3,177 215 Backlog (Million USD) 2,661 644 2,360 682 2,014 2,113 2012 1 2013 2 2014 3 2015 4 2016 5 2017 6 Motorway & Expressway 4% Total 2,095.5 Backlog breakdown by Type of work Building 3% Water System 2% Double Track 20% Oversea MRT 21% Power 48% Other Project 2% Domestic & Oversea Backlog Domestic 54% 43% 44% 39% 47% 46% 56% 56% 61% 53% 2012 2013 2014 2015 Q3/2016 2012 2013 2014 2015 Q3/2016
Development Direction : Transport Infrastructure Development Master Plan 6 Expected disbursement on infra projects New Ongoing (Million USD) 141 790 Upcoming Projects Total inv. (Million USD) 1 MW : Pattaya Maptaput 565 2 MW : Bang Pa In Nakorn Ratchasrima 2,401 3 MW : Bang Yai - Karnchanaburi 1,582 4 Sawannabhumi Airport 1,469 Progress 5,141 5 Leam Chabang Seaport (SRTO & A0 Port) 113 1,610 2,175 4,067 3,503 6 UR : Orange Line (Thailand cultural center Min Buri) 3,107 7 UR : Pink line (Kae Rai Min Buri) 1,610 1,045 1,412 706 791 84.7 2016 2017 2018 2019 2020 2021 2022 (Million USD) 8 UR : Yellow line Lad Prao Sam Rong 1,554 9 UR : Blue line (Bang Sue Tha Phra & Hua Lampong Bang Kae) 10 UR : Red Line (Bang Sue Hua Mark & Hua Lampong) 1,243 11 UR : Airport Rail Link (Bang Sue Phayathai) 876 621 12 DT : Prachuap Khiri Khan - Chumpon 480 13 DT : Map Kabao Jira Junction 847 14 DT : Lop Buri Pak Nampo 1,412 15 DT : Nakorn Phrathom Hua Hin 565 16 HSR : Bangkok Hua Hin 2,684 17 HSR : Bangkok - Rayong 4,322 18 HSR : Bangkok Nong Kai 4,802 19 HSR : Bangkok Chiang Rai 14,972 Source: EIC Analysis Already bid On bidding process Need cabinet approval Under FS Study
CK TARGETS IN 1H 2017 7 Projects Construction Value (Million USD) Project Owner Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Double Track : Prachuap Khiri Khan - Chumphon 441.47 Bidding Signing Construction Double Track : Nakhon Pathom Hua Hin 544.35 Bidding Signing Construction Double Track : Mab Krabao - Chira Junction 805.08 SRT Bidding Signing Construction Double Track : Lop Buri Pak Nam Po 675.14 Bidding Signing Construction Double Track : Hua Hin Prachuap Keeree Kan 279.66 Bidding Signing Construction Sainoi - Ratchaburi Transmission Pipeline Project 254.24 PTT Bidding Signing Construction Total 2,999.94
CK TARGETS IN 2017 ONWARD 8 Projects Construction Value (Million USD) Owner Projects Construction Value (Million USD) Owner MRT Purple Line : Tao Poon - Ratboorana 1,840.4 MRT Orange Line : Taling Chan -Thailand Cultural Centre MRT Blue Line (Extension) : Bang Khae - Phuttamonthon 4 2,550 598.8 MRT Green Line : Samut Prakan - Bangpu 344.6 MRT Green Line : Khu Khot - Lam Luk Ka 282.5 Airport Rail Link (Extension) Don Muang - Bang Sue - Phaya Thai Red Line : Rangsit - Thammasat University (Rangsit Campus) 881.7 214.7 Red Line (Missing Link) 1,247.4 Double Track : Paknam Po Den Chai 1,584.7 Double Track : Chira Junction Ubon Ratchathani 1,012.4 Double Track : Khon Kaen - Nong Khai 737.3 Double Track : Chumphon - Surat Thani 661 MRTA SRT Double Track : Surat Thani - Hat Yai - Songkhla 1,466 SRT 3 rd Runway, Suvarnabhumi Airport 282.5 AOT Motorway : Pattaya - Map Ta Phut 70.6 Motorway : Bang Pa-In - Nakhon Ratchasima 282.5 Motorway : Bang Yai - Kanchanaburi 282.5 Rama III - Dao Kanong Expressway 881.4 Third Stage Expressway (North) 406.8 Total 15,628 Project Breakdown By Type of work 35% 4% 8% 2% 51% Mass Transit 7,890 Million USD DOH EXAT Express Way 1,288.2 Million USD Road 635.6 Million USD Double track train 5,461.4 Million USD Airport 282.5 Million USD
STRONG INVESTMENTS 9 1 CK 29.73% 2 MRTA 8.22% 3 KTB 6.85% 4 Others 54.31% 1 Mitsui 25.98% 2 BEM 19.45% 3 CK 19.40% 4 Others 35.17% 1 CK 30.25% 2 TTW 25.31% 3 BEM 19.40% 4 Others 25.04% As of 16/01/2017 Bangkok Expressway and Metro PLC. TTW PLC. CK Power PLC. Stock Quote BEM TTW CKP Shareholding (%) 30.62% 19.40% 30.25% Concession Registered Capital (Million USD) Expressway : EXAT 1990-2020 (2 nd Stage Sector A B C) 1997-2027 (2 nd Stage Sector D) 1996-2026 (Bang Pa-In Pak Kret) 2012-2042 (Sirat Outer Ring Road) (29.73 % - Separate Balance Sheet) Metro: MRTA 2004-2029 (Blue Line) 2013-2043 (Purple Line) TTW: PWA 2004-2034 PTW 1998-2023 2006-2023 TTW: MNRE 2005-2030 PTW: MOI 2000-2025 EGAT 2011-2036 (NN2 ) 2013-2038 (BIC) 2019-2050 (XPCL) 431.78 112.71 261.02 Market Cap. (Million USD) 3,238.35 1,194.75 757.82 PEA 2012-2037 (BKC) 2012-2037 (NRS) 2013-2038 (CRS) Par Value (Baht / share) 1.00 1.00 1.00 Dividend Policy 40% of net profit 50% of net profit 40% of net profit Revenue (Million USD) (As of 30 Sep 2016) D/E (As of 30 Sep 2016) 267.5 117.24 139.25 1.76 1.21 0.97
STRONG RECURRING INCOMES 10 * as of 30/09/2016 2012 2013 2014 2015 2016 DPS (baht) 1.32 1.58 1.70 2.50 - Dividend Yield (%) 4.32 % 4.72 % 4.30 % 5.52 % - DPS (baht) - - - - 0.12 Dividend Yield (%) - - - - 1.74 %* DPS (baht) 0.47 0.55 0.65 0.65 0.60 Dividend Yield (%) 4.35 % 5.20 % 5.17 % 6.13 % 5.56 %* DPS (baht) - - - 0.10 0.0223 Dividend Yield (%) Total Dividend (Million Baht) Total Dividend (Million USD) - - - 0.75 % 0.70 % * 717.43 602.27 692.26 888.45 1,042 20.3 17 19.5 25 29.5
CONTRIBUTION TO CK CONSTRUCTION WORKS 11 Construction Projects within CK Group by % CK Group Government & Private 36% 36% 47% 16% 20% 15% 31% 38% 64% 64% 53% 92% 83% 84% 84% 80% 85% 69% 62% 8% 17% 16% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3/2016 Signed Projects From CK Group by Contract Values (Million USD) CK Group Government Private 2,807.6 919.3 610.2 664.3 90.9 565.3 117.7 515.6 424.0 535.3 72.3 97.1 219.5 312.5 214.1 61.5 2.8 71.4 2.9 9.7 1.7 81.7 108.6 71.9 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q3/2016 7
POTENTIAL PROJECTS FROM CK GROUP 12 The key projects of BEM to achieve during 2016-2020 TTW is taking the first step in Myanmar Mawlamyine Project Joint Venture Concession Raw river Investment TTW 70% Z Corperation CO., LTD 30% BOT 30 years (Option +10 years 2 times) Attran river 12 Million USD (Source : Bangkok Post) Capacity 33,000 M 3 Expandable up to 40,000 M 3 CKP Solid Project Pipeline and Strong Growth Plan during 2016-2020 Y. 2016 Operating : 755 MW Hydro : NN2 615 MW Thermal : BIC 1 117.5 MW Solar : BKC 8 MW, CRS 8 MW, NRS 6 MW Y. 2017 2018 Operating : 875 MW New Capacity : 120 MW from BIC 2 (June 2017) Y. 2019 2020 Operating : 2,280 MW New Capacity : 1,285 MW from Xayaburi (Oct 2019) Y. 2020 Onward Target : 5,000 MW Potentials : Hydropower Projects from Cross-Border Domestic Power Projects
STRONG PERFORMANCE 13 (Million USD) 2012 2013 2014 2015 1Q16 2Q16 3Q16 9M16 Construction Revenue 584.32 920.06 928.20 984.49 253.87 584.21 241.05 1,079.01 Total Revenue 624.12 1,186.72 1,001.21 1,074.24 9,086 256.67 252.82 1,101.27 Gross Profit 66.86 97.29 85.96 80.93 783 35.14 19.60 76.84 Net Profit 16.05 85.96 64.86 61.95 305 29.01 9.27 46.89 Gross Profit Margin 11.37% 10.54% 9.26% 8.22% 8.71% 6.02% 8.12% 7.12% Net Profit Margin 2.57% 18.28% 6.48% 5.77% 3.35% 4.9% 3.67% 4.26% Net D/E Ratio 2.64 1.73 1.48 1.66 1.67 1.56 1.47 1.47
Construction Project Progress Update
Construction Project Progress Update 15 MRT Purple Line Project Project Value : 984 Million USD Completed in 2016 Sirat Expressway Project Value : 636 Million USD Completed in 2016
Construction Project Progress Update 16 MRT Blue Line Extension Project Project Value : 282 Million USD Construction Progress : 9.0 %
Construction Project Progress Update 17 MRT Green Line (Extension) Project Project Value : 984 Million USD Construction Progress : 90.0 % Double Track : Chira Junction - Khon Kaen Project Value : 619 Million USD Construction Progress : 9.0 % Motorway, Bang Pa-in Nakhon Ratchasima Project Value : 21 Million USD Construction Progress : 5.5 %
Construction Project Progress Update 18 Xayaburi : Hydropower Project Project Value : 2,665 Million USD Construction Progress : 66.3 %
Construction Project Progress Update 19 Xayaburi : Hydropower Project Project Value : 2,665 Million USD Construction Progress : 66.3 %
Appendix
21 (Source : Bangkok Post), Bangkok Post
Metro Map 22 Existing Metro Lines 6 more Lines under construction Projects Distance kms. Stations Trains Cars Status Operated (Year) Operator Blue Line (Bang Sue-Hua Lamphong) 20 18 19 57 Operating 2004 BEM Purple Line (Bang Yai-Tao Poon) 23 16 21 63 Operating Aug 6, 2016 BEM Airport Rail Link (Phaya Thai-Suvarnabhumi Airport) 28.5 8 9 - Operating 2010 SRT Green Line - Mochit - Baring 21.8 22 LightGreen Line - National Stadium-Saphan Taksin-Bang Wa 14.5 13 52 208 Operating 1999 BTS Total (kms.) 107.8 Project Blue Line (Extension) Bang Sue-Tha Pra Hua Lamphong-Bang Khae Distance Stations Trains Cars Status kms. Operated (Year) 27 20 30 90 Constructing 2020 Operator BEM (to be negotiated) Red Line (Bang Sue-Rang Sit) 26.3 8 - - Constructing 2021 SRT Green Line (Khu Khot Samut Prakan) 44.7 33 - Constructing 2021 BTS Pink Line (Kae Rai Min Buri) 36 24 - - Constructing 2020 BTS Yellow Line (Lat Phrao Samrong) 30.4 21 - - Constructing 2020 BTS Orange Line (TCC - Minburi) 23 17 - - Constructing 2022 - Total (kms.) 187.4
CKP : Lao PDR in Focus 23 Abundant water resource on the mainstream Mekong River
THANK YOU Please visit CK Website @ http://www.ch-karnchang.co.th More Information : ck-ir@ch-karnchang.co.th Tel : 66 (0) 2 277 0460 Ext. 2317, 2318 & 2319