Corporate Presentation

The 3rd Qtr 2012 Operating Performance Opportunity Day

23 November 2012
1

Agenda

Company Overview On going and Future Developments

Key Financial Highlights

Q&A Session

Company Overview
Vision
To become the leading contractor of Thailand delivering projects in respect of standard and safety for both natural gas pipeline, petrochemical industry and energy fields along with its sustainable growth.

Mission
1. To enhance the companys consistent growth with the good conduct of the corporate governance practice for highly benefit of the company and its shareholders.

2. To recognize human dignity by treating all employees on fairly basis with disregard of race , class, complexion or religion.
3. To emphasize human development through rendering knowledge gain, skill and expertise trainings as well as required knowledge in concerned areas for the companys sustainable growth. 4. To strive toward teamwork performance , passing on skill and knowledge including experience from one generation through another.

5. To emphasize design engineering works, encourage learning participation and utilize new technology in cooperation with both domestic and international alliances to develop Thai engineers capability to be identical with the international ones. 3 6. To reward society and community.

Leading Turnkey Solution Provider Company

2012+ 2009 - 2012 2005 - 2008

Project Development
Greenfield / Brownfield Project Development Capability Conceptual Design Basic Engineering Feasibility Study Advisory Services

Construction
EPC Turnkey Pipeline / Small & Medium Process Plant / Modular Fabrication Civil work / infrastructure Project Management Consulting (PMC)

Commissioning / Testing
Engineering Capability

Commercial Operation Date

Operating & Maintenance Services Investment through our investment arms - TRC International Ltd. - TRC Investment Ltd.

Key Corporate Milestone

Revamp OCS#1
Nigeria Project

Oman Project

Wang NoiKaeng Khoi Cross Country Gas Pipeline

Songkhla Transmission Pipeline Project (562 MB)

EPC for Flowline Lump Sum Project in Oman Turnkey Bangchak Consortium with Bio Diesel Plant Siemens for OCS#1 Project (757 MB)

TRC is equipped capability of EPC and undertake Large Scale Project

Ubon Boi-Ethanol Project of 2,134 MB Group backlog reached 4,452 MB

1998
Established with experience group of engineers undertaking small pipeline projects

2005
Listed in MAI with Baht 1.70 IPO price Successfully JV with CPP (China) for 2,100 MB pipeline project

2007
Acquired Sahakarn Wisavakorn Co., Ltd. as subsidiary

2008

Project Development & Investment Division established EPC capability for Biodiesel Processing Plant

2009
Successfully landed in Oman Undertaking PTT Gas Separation Plant Project

2010
Awarded by Gulf JP a EPC Pipeline Package of THB 2,016 MB + 21.09 Mil USD

2011
Awarded for EPCC of Ethanol Project

Our Core Business

Pipeline Construction for Energy and Petrochemical Industry

Mechanical Installation and Process Plant Construction for Energy and Petrochemical Industry

Project Development and Investment

EPC Services in Overseas

Key Success Factors

Provide service excellence and maintain the highest level of customer satisfaction
Competent and experienced professional management team & operation personnel

Continuously growing sustainable revenue and profit stream while creating loyal and engaged customers

Strong risk management and solid liquidity management to enables financial flexibility

Establishing strong strategic alliances and focus on high margin projects with high barriers to entry

Our Quality, Health, Safety and Environmental Promises

New HSE Achievement 3 years LTI Free of Oman Project

Our Reputable Clients

10

Agenda

Company Overview On going and Future Developments

Key Financial Highlights

Q&A Session

11

TRC Revenues Growth

Core Businesses On-going Gulf SPP and IPP Package Ubon Bio Ethanol Project PTTAR-IRPC Multiproduct Pipeline Green ABS VI Project GUT Pipeline Project Expansion in Oman Petrogas Rima (extension contract) PTTEP Oman EPCC and O&M in oil & gas sector and petrochemical industry Investment Scheme Energy projects in neighboring countries Natural resources project

EPC

12

On-going Core Business: Gulf JP Pipeline Project

Gulf SPP and IPP Pipeline Package Owner: Gulf JP Co., Ltd Group TRCs Work Value: IPP : THB 1,185 million + USD 16.345 million 7SPP : THB 831 million + USD 4.745 million
Scope of Work: Gas Pipeline EPC Package for Natural Gas Transmission Pipeline Construction Work and Metering and Regulation Station for 7 SPP Projects and 1 IPP Project in Saraburi, Chachoengsao, Rayong and Prathumthani Province Work Period: IPP : Oct 11 - Jun 13 7SPP : Oct 11 - Sep 13 % of Completion as at 30 Sep 12: IPP : 52% 7SPP : 65% - 99%

13

On-going Core Business: Ethanol Processing Plant

Ubon Bio Ethanol Project Owner : Ubon Bio Ethanol Co., Ltd. SKWs Work Value: THB 2,134 million Scope of Work: Plant Out Side Battery Limit (OSBL) EPCC Package for Ethanol Processing Plant with a capacity of 400,000 liter per day utilizing dry and fresh cassava as raw material

Work Period : Mar 11 Dec 12 % of Completion as at 30 Sep 12: 91%

14

On-going Core Business: Ethanol Processing Plant (Cont.)

15

On-going Core Business: PTTAR-IRPC Multiproduct

PTTAR-IRPC Multiproduct Project
Owner: IRPC Public Company Limited TRCs Work Value: THB 723 million Scope of Work: Multiproduct pipeline installation between IRPC Tank to PTTAR Refinery Work Period: Jul 11 - Jan 13 % of Completion as at 30 Sep 12: 65%

16

On-going Core Business: Green ABS VI Project

Green ABS VI Project

Owner : Thai ABS Company Limited SKWs Work Value: THB 280 million Scope of Work: Construction of Concrete Steel Buildings, Steel Structure and Infrastructure Project location at inside IRPC plant, Rayong Province
Work Period: Jan 12 - Dec 12 % of Completion as at 30 Sep 12: 70%

17

On-going Core Business: GUT Gas Pipeline Project

GUT Gas Pipeline Project
Owner: Gulf JP UT Company Limited TRCs Work Value: THB 1,547 million Scope of Work: EPC of 28 inches diameter Natural Gas Pipeline length approximately 21 km. and two block valve stations and one metering station for GUT Power Plant (IPP) Project located in Rojana Industrial Park 3, Ayutthaya Province Work Period: Aug 12 Jul 14 % of Completion as at 30 Sep 12: Still during Engineering Stage

18

Expansion in Oman: Petrogas Rima (Extension Contract)

Pipeline Project
Owner: Petrogas Rima LLC (1-year extension contract + 1-year potential extension) TRCAs Work Value: THB 146 million Scope of Work: Engineering, Procurement and Construction of production flow lines and water injection flow lines connecting the drilling wells together. Up to date, TRC has achieved its services for connecting about 80 drilled wells which increasing the oil production of Rima Small Fields from about 2,200 bopd in 2009 to nearly 14,000 bopd today. Work Period: May 12 Apr 13 Type of Contract: EPC Contract

19

Expansion in Oman: PTTEP Oman

Pipeline Project
Owner : PTTEP Oman Company Limited TRCEs Work Value: Approximately THB 184 million

Scope of Work: Project location: Block 44 concession area of PTTEP in the northwest of Oman; Shams-16 flowline and its related equipment & facilities; Munhamir-1 and Munhamir-2 flowline and its related equipment & facilities; Munhamir crude export pipeline Type of Contract: EPC Contract

20

Expansion in Oman: EPCC and O&M in Oil & Gas and Petrochemical Sectors
EPCC and O&M in Oil & Gas and Petrochemical Sector
New opportunity in Oman to be explored and committed by TRC and its strategic partner Scope of Work: Engineering, Procurement, Construction Commissioning and Operating & Maintenance focusing on oil & gas sector and petrochemical industry Target: To be awarded the project value THB 150 million within 2012 for the above scope of work

21

Investment Scheme: Focusing on Energy and Natural Resources in ASEAN Countries

Energy Projects in Neighboring Countries Natural Resources Development Project
Objectives: To explore and capture business opportunity focusing on energy sector and natural resources in ASEAN neighboring countries such as Myanmar, Cambodia and Lao; To retain some fixed income portion of TRC group; and To be ready for ASEAN Economic Community (AEC) in 2015

22

List of Potential Projects

Approximate Project Value (MB)
Estimate Project Period

Project Name

A. Natural Gas Pipeline

A.1 Provincial Gas Transmission Pipeline 4,000 5,000 2013 - 2015

A.2 SPPs
A.3 Distribution Pipelines A.4 Construction Call Off Services

500
500 n/a

2013 - 2014
2012 onwards

2013 onwards

B. Processing Plant
B.1 Waste Heat Recovery 1,300 2013 - 2014

B.2 Waste to Energy

B.3 Ethanol Plant B.4 CBG for NGV

2,000
1,700 70

2013 - 2014
2013 - 2014

2012
2013 - 2016

C. Oman Two Projects

Total

700
Approximate 11,770

23

Agenda

Company Overview On going and Future Developments

Key Financial Highlights

Q&A Session

24

9-Month Actual Performance of TRC and its Subsidiaries

(Unit: Million Baht) TRC TRC Group Investment Consol

(Mauritius)

TRC Construction Services Income Interest Income Other Income Total Revenues Cost of Services Gross Profit Administrative Expenses and Finance Cost Earning before Tax Tax Net Profit before Minority Interest Less: Minority Interest (40% for TRCA, 30% for TRCE) Net Profit for the Parent Company Gross Profit Margin Net Profit Margin

SKW

TRCA
(Oman)

TRCE
(Oman)

TRCI
(Hong Kong)

1,658.48 1,375.51 3.07 2.52 8.44 8.06 1,669.99 1,386.09 - 1,409.42 - 1,270.07 260.57 116.02 94.46 18.78 166.11 97.25 38.17 10.73 127.94 86.52

128.53 1.21 129.74 104.01 25.73 20.27 5.46 0.36 5.10

161.38 161.38 138.57 22.82 24.87 2.05 2.05

6.03 0.14 6.18 6.18 1.10 5.08 5.08 -

3,323.90 5.26 0.31 17.41 0.31 3,346.57 - 2,915.38 431.19 0.44 159.44 0.13 271.75 49.26 0.13 222.49 1.42 221.07 12.29% 6.61%

15.02% 7.66%

7.67% 6.24%

19.07% 3.93%

14.14% -1.27%

100.00% 82.18%

Total Revenue
In 2012, the 3rd quarter 2012 performance of TRC, its revenue is the 2nd highest while its profit is the 3rd highest among MAI 79 listed companies.
4,000 - 4,500

(MB)
4,500

4,000

3,500

3,346

3,000

135% Growth
1,264 2,262 1,814

2,500

2,000

1,724

1,500

1,567

1,426
640

1,068

1,000

500

532 254 2008 2009 2010 2011 9-M 2011

1,014

9-M 2012

2012 (F)

1st Qtr

2nd Qtr

3rd Qtr

26

Services Income Break-Down

Civil Others 2.8% 1.0% Civil 0.5% Others 0.5% Process & Plant 40.5%

Pipeline 58.5%

Year 2009
(1,695 MB)

Year 2010
(1,452 MB)

Year 2011 (2,228MB)

Civil 7.4% Process& Plant 34.0%

Pipeline 58.6%

9-M 2012 (3,324 MB)

Pipeline

Process & Plant

Civil

Other Services

27

Net Profit
(MB)
300

204% Growth
200

221
86

183

149
127
100

The 3rd highest among MAI 79 Listed Companies

73 43
18

59

76

12

-100

-200

-166
2008 2009 2010
1st Qtr

2011
2nd Qtr

9-M 2011
3rd Qtr

9-M 2012

28

Gross Profit & Net Profit Margin

30.0% 25.9% 25.0% 19.6% 20.0% 15.0% 10.0% 5.0%

16.4%
14.6% 12.0% 7.0% 6.6% 5.1% 13.4% 12.3%

6.6%

0.0%
-5.0% -10.0% -9.6% -15.0% 2008 2009 Gross Margin 2010 2011 9-M 2011 Net Profit Margin 9-M 2012

29

EPS & Book Value

Weighted Average EPS & Book Value per Share

(Baht/Share) 3.50 3.00 2.50
2.00 1.53 1.50 1.00 0.50 -0.50 -0.50 -1.00 2.39 2.17 2.05 2.14

2.91

0.38

0.55

0.65 0.45 0.22

2008

2009

2010
EPS

2011
BVPS

9-M 2011

9-M 2012

30

Debt to Equity Ratio

(Time(s)) 2.50 2.09 1.82

2.00

1.98

1.50 1.11 1.00 0.84 0.80 0.83

0.60
0.50

0.61

0.00 2008 2009 2010 2011 30 Sep 2011 30 Sep 2012

Calculated from (Total Liabilities Advances from Customers Unearned Construction Revenue)/ Total Equity

31

Dividend Payout Summary

Dividend policy: 40% of net profit after legal reserve
(Baht/Share)
0.35

(Only TRCs Performance)

0.318
0.3

0.25

0.2

0.285 0.15 0.15

0.12

Stock Dividend Cash Dividend

0.15

0.1 0.06 0.05 0.031

2007
Dividend/ Net Profit after Legal Reserve

2008
34.43%

2009
N/A

2010
50.66%

2011
83.73%

92.56%

32 Net Loss 46 MB

Paid-up Capital
Registered Capital
(MB)
471.50

Total exercised ESOP shares Sep 2010-Jun 2012 = 6.59 MB

133.80

General Mandate

329.99

330.67

333.56

336.59

1.11

Expired ESOP Warrants

150

336.59

Paid-up Capital

33

TRC Group Backlog

(MB) 5,000 4,500 4,000 3,500 4,452

265 1,352
3,415 135 310 2,835 2,500 2,000 1,500 1,000 2,970

3,000

1,641 284

1,501
1,266 315

1,451 359 627 1,092 32 607 Oman Subsidiaries SKW TRC

1,357

1,186

500
-

2007

2008

2009

2010

2011

30 Sep 2012
34

Note: 1. Oman subsidiaries consist of TRC & Al Ghalbi LLC and TRC Engineering LLC which TRC International Ltd. invested 60% and 70%, respectively. 2. Backlog is shown the outstanding work value of total projects.

TRCs Backlog as at 30 September 2012

Project Name
1. GUT Gas Pipeline Project
Type of Works

Project Owner/ Client Gulf JP UT Company Limited

Work Value (MB)

Uncompleted Work Value

Project Period Aug 12 Jul 14

(MB)

E, P, C

1,547.43

1,547.43

2. Gas Pipeline Construction Work for Gulf JPs IPP Project (The Project value 1,185 MB and USD 16.345 million) 3. PTTAR-IRPC Multiproduct Pipeline

E, P, C

Gulf JP Company Limited

1,689.62

804.46

Oct 11

Jun 13

E, P, C

IRPC Public Company Limited

722.50

253.16

Jul 11

Jan 13

4. Schedule of Rate Period Contract for Mains and Services at Various Location 5. - 10. Gas Pipeline Construction Work for Gulf JPs 7 Small Power Plant (SPP) Projects (Total 6 contracts, the project value 831 MB and USD 4.745 million) 11. Mechanical and Piping Work Packing of C5 12. Improvement Off-take Station (OTS) and Installation of new Natural Gas Pipeline for Gas Pressure Reducing Station (PRS) Project

E, P, C

PTT Natural Gas Distribution Company Limited Gulf JP Company Limited

144.00

117.22

Nov 11

Oct 13

E, P, C

974.60

80.60

Oct 11

Sep 13

E, P, C E, P, C

BST Specialty Company Limited AMATA Natural Gas Distribution Company Limited

72.00 76.00

71.21 64.60

Aug 12

Feb 13

Jun 12

Dec 12

13. Schedule of Rate Period Contract for Mains and Services at Various Location 14. N/G Gas Pipeline to Siam Fibre Company Limited
15. Dismantle and Construction Structure Steel and Piping on Piperack from BST

E, P, C

AMATA Natural Gas Distribution Company Limited PTT Public Company Limited
Bangkok Synthetics PCL.

58.00 2.62 65.27

27.33 2.62 1.33

Nov 11

Oct 13

E, P, C
E, P, C

Oct 12 Jul 12

Dec 12 Oct 12

35

TRCs Backlog as at 30 September 2012

Project Name
16. TPP Piperack Extension (State#1)

Type of Works

Project Owner/ Client - Bangkok Industrial Gas Company Limited - Thai Industrial Gases Public Company Limited - Vinythai Public Company Limited

Work Value (MB)

Uncompleted Work Value

Project Period Sep 11 Dec 12

(MB)

E, P, C

15.71

0.38

Total 16 Projects

5,367.75

2,970.35

36

SKWs Backlog as at 30 September 2012

Type of Works

Project Name
1. 400,000 Liter per Day Bio-Ethanol Plant Project

Project Owner/ Client Ubon Bio Ethanol Company Limited

Work Value (MB)

Uncompleted Work Value

(MB)

Project Period Mar 11 Dec12

E, P, C

2,134.10

191.00

2. Civil Works for Green ABS VI Project

E, P, C

Thai ABS Company Limited

280.00

84.78

Jan 12

Dec 12

3. Water Treatment Plant

E, P, C

Electricity Authority of Thailand

20.36

20.36

Sep 11

Oct 13

4.-5. Civil Work Projects (Bridge & Road Construction)

E, P, C

Department of Rural Roads

13.99

13.99

Completed in

Sep-Oct 2012

Total 5 Projects

2,448.45

310.14

37

TRC & Al-Ghalbis Backlog as at 30 September 2012

Project Name

Type of Works

Project Owner/ Client

Work Value (MB)

Uncompleted Work Value

(MB)

Project Period

Construction of Flow Lines Rima Satellites Small Fields one-year Extension (The project value approximately OMR 1.80 million)

E,P,C

Petrogas Rima LLC Sultanate of Oman

145.94

96.79

May 12

Apr 13

Total 1 Project

145.94

96.79

TRC Engineerings Backlog as at 30 September 2012

Project Name
Type of Works

Project Owner/ Client

Work Value (MB)

Uncompleted Work Value

(MB)

Project Period

Shams-16 Munhamir-1&2 flow Line and Munhamir Crude Export Pipe Line Project (The project value approximately OMR 2.27 million)

E,P,C

PTTEP Oman Company Limited (Sultanate of Oman)

183.55

38.08

Aug 11

Dec 12

Total 1 Project

183.55

38.08

38

Backlog Conclusion as at 30 September 2012

TRC Group TRC Construction Plc.

No. of the Projects

16

Remaining Work Value (MB)

2,970.35

Sahakarn Wisavakorn Co., Ltd.

TRC & Al-Ghalbi LLC (Oman)

5
1

310.14
96.79

TRC Engineering (Oman)

38.08

Total Backlog as at 30 September 2012

23

3,415.36

39

TRC Share Price and Volume

Share Price (Bt./share)
10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 20,000 1.00
Dec-05 Mar-06 Jun-06 Aug-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Sep-08 Nov-08 Jan-09 Mar-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jul-10 Sep-10 Nov-10 Jan-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Mar-12 May-12 Jul-12 Sep-12

Volume (000 Shares)

Highest Price: Bt. 7.45, Mar 08
140,000

Volume Price

22 Nov 12 Closing Price: Bt. 6.15

120,000

100,000

Lowest Bt. 1.4, Feb 06

80,000

60,000

40,000

0.00

Source : SET Smart as of 22 Nov 2012

40

Agenda

Company Overview On going and Future Developments

Key Financial Highlights

Q&A Session

41