Dynasty Ceramic. We are making the impossible, POSSIBLE.

Transcription

1 Dynasty Ceramic We are making the impossible, POSSIBLE.

2 Contents Road to Success Sales Reports Cost of Production Performance Competitor Analysis Going Forward Q & A 2

3 Dynasty Ceramic Road to Success

4 DCC Timeline Established on the 1 st of August 1989 Registered as PCL on the 4 th of March st company owned outlet in 1998 Merged with Tile Top Industry at the end of 1997 Forbes Award Best Under a Billion 200 Companies in M M Timeline Dynasty Production Process in M Forbes Award Best Under a Billion 200 Companies in 2006 Computerized Systems in the middle of 2007 Forbes Award Best Under a Billion 200 Companies in M M Ranked 17 th world s Largest Ceramic Tile Manufacturer in 2008 SET Outstanding Performance Award M M M Listing on the SET on the 3 rd of January 1992 Registered Capital of 408 million Baht in 2000 Waste Heat Recovery System in 2007 Dynasty Ceramic on 200 Best Public Companies of the years 2010 Magazine 4

5 Our Growth 9,000 8,000 Forecast , ,000 5,000 4,000 3, Outlet Sales per Outlet Outlet Sales Revenue Agent Sales 2, ,

6 DCC with Thai People

7 Dynasty Ceramic Sales Reports

8 Sales Volume 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 4,973 5,363 5,893 5,889 5,049 5,564 5,010 5,032 ACTUAL JAN-MAR 2012 = 16,229 (000'SQM.) ACTUAL Y2011 = 55,909 (000'SQM.) ACTUAL Y2010 = 50,617 (000'SQM.) 4,851 4,679 4,850 4,877 4,321 4,369 4,484 4,307 4,538 4,433 4,089 4,087 4,011 3,828 4,188 3,735 3,508 3,465 3,360 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

9 Sales Value 1, ACTUAL JAN-MAR 2012 = 2,093 MB ACTUAL Y2011 = 7,195 MB ACTUAL Y2010 = 6,456 MB JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

10 Sales Volume & Sales Value 1Q Q12 4Q11 1Q11 SALES VOLUME(M.Sqm.) 2, , SALES VALUE(MB) 2, Q12 4Q11 1Q11 1Q12 4Q11 1Q11 - %GROWTH 29% 2% 28% 4%

11 Outlet Quarterly Sales Performance by Region (MB) NE M E S N Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

12 Outlet Quarterly Sales Performance by Region (%) Q1/2012 (%) North 18% (ล านบาท) Agent 4% Central 23% Agent 6% East 8% Agent 1% Northeast 37% Agent 9% South 14% Agent 2% Q1/2011 North 19% Agent 4% Central 21% Agent 7% East 8% Agent 2% Northe ast 38% Agent 9% South 14% Agent 2% Q2/2011 North Northe 17% ast Central Agent 3% 35% 24% Agent 8% South Agent 5% East 16% 8% Agent 2% Agent 1% Q3/2011 North 17% Agent 3% Central 25% Agent 5% East 9% Agent 2% Northe ast 30% Agent 6% South 19% Agent 3% Q4/2011 North 17% Central Agent 3% 22% Agent 4% East 10% Agent 1% Northe ast 32% Agent6% South 19% Agent 2%

13 Sales Comparison by Distribution Channel Y , 1Q2012 (MB) 1,800 (ล านบาท) 1,600 1,400 1,200 1,000 MB (200) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Outlet 1,225 1, ,065 1,373 1, ,040 1,412 1,357 1,244 1,222 1,606 Agent Export Franchise

14 Sales Comparison by Distribution Channel Y , 1Q2012(%) 1Q2012 (ล า Franchise 5% Agent 15% Export 3% Outlet 77% Franchise 6% Agent 18% Y2011 Export 3% Outlet 73% Franchise 7% Agent 19% Y2010 Export 3% Outlet 71%

15 Sales Comparison by Product Type Y ,1Q2012 (MB) 1,500 (ล านบาท) 1,300 1, MB (100) (300) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Floor 12 x 12 1, , , Floor 16 x Floor 8 x Wall 8 x Wall 8 x Wall 8 x 12 3 Other

16 Sales Comparison by Product Type Y ,1Q2012 (%) Wall 8 x 8 1% Floor 8 x 8 5% Other 2% 1Q2012 Wall 8 x 12 0% Wall 8 x 10 12% Floor 16 x 16 35% Floor 12 x 12 45% Floor 8 x 8 6% Wall 8 x 8 0% Wall 8 x 10 12% Y2010 Other 2% Floor 8 x 8 5% Wall 8 x 8 1% Wall 8 x 10 11% Y2011 Other 2% Floor 16 x 16 24% Floor 12 x 12 56% Floor 16 x 16 31% Floor 12 x 12 50%

17 Dynasty Ceramic Cost of Production

18 Cost of Production Y2011 Gas 5% 6% 3% 5% 5% 5% 1% 18% 31% 21% Glazing&pigments Body Depreciation Power Labour Fixed Maintenance Packaging Supplies Used 18

19 Cost of Production 1Q2012 6% 4% 4% 1% 6% 6% 2% 16% 21% 33% Gas Glazing&pigments Body Depreciation Power Labour Fixed Maintenance Packaging Supplies Used 19

20 Dynasty Ceramic Performance

21 Notices 30% Tax (1Q11) DCC adopted new accounting standard (2011) TAS19 - Employees Benefit Obligation (1Q11) First 85 Million Baht booked in Liabilities Million Baht per year Sales promotion and commission fee deducted directly from Sales (1Q11) Revising assets and its depreciation (2Q11) 23% Tax (2012) 21

22 M. QUARTERLY PERFORMANCE GROSS PROFIT NET PROFIT (BT) SALES VALUE M Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 0

23 NET PROFIT(MB)/EARNINGS PER SHARE(BAHT) 1Q Q12 4Q11 1Q11 NET PROFIT(MB) EARNINGS PER SHARE(BAHT) % %GROWTH 2% 1Q12 4Q11 1Q11 1Q12 4Q11 1Q11

24 Performance FY06 FY07 FY08 FY09 FY10 FY11 1Q12 Revenue (Bt mil) 4,460 4,475 5,095 5,905 6,531 7,227 2,096 Cost of Goods Sold (Bt mil) (2,829) (2,742) (3,130) (3,384) (3,630) (4,143) (1,264) Gross Profit (Bt mil) 1,631 1,733 1,965 2,521 2,901 3, Gross Profit Margin (percent) SG&A (Bt mil) (742) (791) (978) (1,079) (1,208) (1,237) (347) Net Profit (Bt mil) ,175 1, FY06 FY07 FY08 FY09 FY10 FY11 1Q12 Sales (Bt mil) 4,452 4,458 5,089 5,884 6,511 7,207 2,093 Sales Volume (Sqm. mil) Average Sales Price (Bt/Sqm.)

25 Performance FY06 FY07 FY08 FY09 FY10 FY11 1Q12 Gas Cost of COGS (Bt mil) , Natural Gas Price (Bt/MMBTU) Transportation Cost (Bt mil) Transportation Cost (Bt/Sqm.) Oil Price (Bt/Litre)

26 Key Financial Ratios FY06 FY07 FY08 FY09 FY10 FY11 1Q12 ROE ROA EPS (Baht) D/E P/BV Pay Out Ratio 70% 75% 77% 85% 100% 100% 100% Dividend Per Share

27 Dynasty Ceramic Competitor Analysis

28 Sales Value (MB) 2,500 2,000 1,948 2,018 1,856 2,093 1,500 1, ,698 1,634 1,674 1,618 1,461 1,430 1,467 1,375 1, Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 DCC TGCI RCI UMI 28

29 Profit (MB) MB (100) (200) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 DCC TGCI (100) RCI (29) (40) (15) (12) (22) (41) (26) (36) (28) (35) (43) (48) (10) UMI

30 Dynasty Ceramic Going Forward

31 Risk Factors Natural Gas price is said to increase 5% in 2012 Natural Disaster worse than previous year? Government Policies

32 Production Capacity Expansion Plan 2012

33 2012 Outlook Targeting 10% growth in revenue Targeting to open 15 outlets Targeting 42% gross margin Increase ASP to 133 Baht Domestic market share up to 50% Increase 5% in production capacity by modifications More than 95% capacity utilization rate Reduce 5% of labor Reduce SG&A Intensive training programs for all employees 33

34 and Next? Targeting 10 billion Baht Revenue at the end of 2014 Increase same store growth 300 Outlets in 2021 throughout Thailand Reduce 5% of work force every year for the next 5 years Improve gross profit margin Maintain 100% dividend pay out Looking for market opportunity abroad Research, Research, Research

35 Dynasty Ceramic Questions?

36 MARUTH SAENGSASTRA Vice President & C.I.O. Dynasty Ceramic PCL. Tile Top Industry PCL. 37/7 Sutthisarn Rd., Samsennok, Hueykwang BKK maruth@dynastyceramic.com 36