TRC Corporate Presentation. The 2 nd Qtr & 6-Month 2015 Operating Performance. 4 September 2015

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1 TRC Corporate Presentation The 2 nd Qtr & 6-Month 2015 Operating Performance 4 September

2 Content Company Overview 3 Ongoing Projects 14 Future Developments 21 Capital Increase & Debenture Issuance 33 Key Financial Highlights 36 2

3 Vision Vision To Become An excellent contractor in design, construction of a total solution in energy and infrastructure industries with sustainable growth 3

Mission To operate The construction business as an EPC contractor (Engineering, Procurement and Construction) for natural gas and crude oil pipeline projects, petrochemical plants and basic

4 Mission To operate The construction business as an EPC contractor (Engineering, Procurement and Construction) for natural gas and crude oil pipeline projects, petrochemical plants and basic infrastructure To run The business under the corporate governance principle focusing on safety, environment, society and community for stable and sustainable growth To deliver The works with quality with recognition of safety within defined timeframe for customers highest satisfaction To develop An investment in energy and petrochemical businesses 4

5 Target To continually develop the investment project at least 4 projects within 2019 To acquire the National Total Quality Control (TQC) Award within 2019 To meet the target of yearly operating result of 20% increase with a total services income of Baht 10,000 million within 2019 (consolidated financial statements) 5

6 TRC Group Structure TRC Construction Public Company Limited (Thailand) Paid-up Capital 563 MB 30% 99.99% 100% Sinopec-TRC Joint Venture (Thailand) Sahakarn Wisavakorn Co., Ltd. (Thailand) Paid-up Capital 500 MB TRC Investment Limited (Mauritius) Paid-up Capital USD 1 Sinopec International Petroleum Service Corporation (China) 70% 92%* CR3 and Sahakarn Joint Venture Co., Ltd. (Thailand) Paid-up Capital 6 MB* 8%* China Railway Group (China) 70% TRC Middle East LLC (Sultanate of Oman) Paid-up Capital OMR 150, % TRC International Limited (Hong Kong) Paid-up Capital HKD 10 TRC Engineering LLC (Sultanate of Oman) Paid-up Capital OMR 250,000 70% 4.20% ASEAN Potash Mining Public Company Limited (Thailand) Paid-up Capital1,785MB 30% 30% Mr. Kamal Macki (Sultanate of Oman). * CR3 and Sahakarn JV Co., Ltd. s paid-up capital increased from 1 MB to 6 MB in May Finally, the portion of investment between Sahakarn and China Railway Group will be 51:49 under the paid-up capital of 500MB. 6

Key Corporate Milestone Ubon Bio-Ethanol

Khoi Cross Country Gas Pipeline Listed on

Plant - Phase I Project Bidding with many

Project Undertaking International & Large

for Flowline in Sultanate of Oman Consortium

and higher margin Gulf JP Pipeline TRC is

Project 2010 Project Developer Utilizing EPC

for our clients Moving to the SET in 2013

Transmission Pipeline to Nakhorn Ratchasrima

Plant - Phase II Project TTM Project CBG

7 Key Corporate Milestone Ubon Bio-Ethanol Nigeria Project Revamp OCS#1 Wang Noi-Kaeng Khoi Cross Country Gas Pipeline Listed on the MAI 2005 Contractor Bangchak Biodiesel Plant - Phase I Project Bidding with many competitors and lower margin Ratchaploen Project Undertaking International & Large Scale Project Development Oman Project EPC for Flowline in Sultanate of Oman Consortium with Siemens for OCS# EPC Contractor Providing Engineering, Procurement & Construction services with fewer competitors and higher margin Gulf JP Pipeline TRC is equipped capability of EPC and undertake Large Scale Projects Ubon-Bio Ethanol Project Gulf s 7SPP and IPP Gas Pipeline Project 2010 Project Developer Utilizing EPC experiences and become the ONE STOP SERVICE for our clients Moving to the SET in 2013 Navanakorn - Rangsit Project Provincial Gas Transmission Pipeline to Nakhorn Ratchasrima Project (JV with Sinopec) Bangchak Biodiesel Plant - Phase II Project TTM Project CBG Project Investment with China Railway 2013 onwards Investor For sustainable growth 7

8 Our Core Business Pipeline Construction for Energy and Petrochemical Industry Mechanical Installation and Process Plant & Construction for Energy and Petrochemical Industry Infrastructure Construction Project Development and Investment 8

9 Strategic Partners * ** *** * CRCC: China Railway Construction Corporation Limited, China ** TWC: Tiong Woon Crane Pte Ltd., Singapore *** CNPC: China National Petroleum Corporation, China 9

10 Our Quality, Health, Safety and Environmental Promises HSE Achievement of TRC Construction Plc. HSE Achievement of Sahakarn Wisavakorn Co., Ltd. HSE Achievement of TRC Middle East LLC June 2015 HSE Achievement 10

11 Our Reputable Clients 11

12 Very Good 2014 CG Scoring from IOD 12

13 Content Company Overview 3 Ongoing Projects 14 Future Developments 21 Capital Increase & Debenture Issuance 33 Key Financial Highlights 36 13

TRC Group Revenue Growth Ongoing Core Business: Significant Projects Pipeline PTT s Provincial Gas Transmission Pipeline Saraburi to Nakorn Ratchasima (SINOPEC-TRC JV, TRC s Work Portion:1,639 MB)

14 TRC Group Revenue Growth Ongoing Core Business: Significant Projects Pipeline PTT s Provincial Gas Transmission Pipeline Saraburi to Nakorn Ratchasima (SINOPEC-TRC JV, TRC s Work Portion:1,639 MB) PTT s 1 st Transmission Pipeline Life Extension (3,725 MB) Petrochemical Plant Bangchak Biofuel s 450 TPD Biodiesel Plant (1,200 MB) Trans Thai-Malaysia s Incinerator Plant (900 MB) Civil Work PTT s the Energy Laboratory of Applied Building (278 MB) Construction Srinakarin Romkao Road Project Phase 1 (886 MB) Investment in APMC EPC Construction Project & Long-Term Investment 14

Pipeline: PTT s Provincial Gas Transmission Pipeline Saraburi to Nakhon

Owner: PTT Public Company Limited Contractor: Sinopec-TRC Joint Venture Contract

40 million TRC s Work Portion: Approximately of THB 1,639 million Scope of Work:

from Saraburi to Nakhon Ratchasima EPC of 6 Block Valve Stations, Launcher &

15 Pipeline: PTT s Provincial Gas Transmission Pipeline Saraburi to Nakhon Ratchasima Provincial Gas Transmission Pipeline Saraburi to Nakhon Ratchasima Owner: PTT Public Company Limited Contractor: Sinopec-TRC Joint Venture Contract Value: Baht 4, million + USD million TRC s Work Portion: Approximately of THB 1,639 million Scope of Work: EPC of 28 inch diameter main transmission pipeline for approximately of 112 km. from Saraburi to Nakhon Ratchasima EPC of 6 Block Valve Stations, Launcher & Receiving Station Work Location: Along Highway No.2 (Mittraphab Road) Work Period: Nov 13 - Aug 16 % of Completion as at 30 June 2015: 60.25% 15

Pipeline: PTT s 1 st Transmission Pipeline Life Extension Project 1 st Transmission Pipeline Life Extension Project (PLLEP) : 28 Recoat Section (RC-400) Owner: PTT Public

16 Pipeline: PTT s 1 st Transmission Pipeline Life Extension Project 1 st Transmission Pipeline Life Extension Project (PLLEP) : 28 Recoat Section (RC-400) Owner: PTT Public Company Limited TRC s Work Value : Baht 3,725 million Scope of Work: Recoating the existing 28-inch diameter pipeline (Route Code 400), separate into 2 sections as following: - Section 1 : from KP to AMATA City Block Valve Station (approximately 35,400 M long) - Section 2 : from BV#3 to BV#6 (approximately 57,216 M long) Total length : 92,616 M long Project Location : From Amphur Mabkha, Rayong Province to Bangpakong Powerplant, Chonburi Province Work Period: Feb 15 - Oct 18 % of Completion as at 30 June 2015: 6% 16

33 million (Approximately of Baht 900 million) Scope of Work: Install the 2 of new incinerator package for 2 separation trains

17 Petrochemical Plant: TTM Project New Incinerator Project Owner: Trans Thai-Malaysia (Thailand) Limited. TRC s Work Value: Baht 519 million + USD million (Approximately of Baht 900 million) Scope of Work: Install the 2 of new incinerator package for 2 separation trains of existing gas separation plant. And bypass system to the existing incinerator in case of the new incinerator trip. Work Location: Chana District, Songkhla Province Work Period: Nov 14 - Jul 16 % of Completion as at 30 June 2015: 23.82% 17

Petrochemical Plant: BBF s 450 TPD Biodiesel Plant 450 TPD Biodiesel Plant Project Owner : Bangchak Biofuel Company Limited TRC s Work Value : Baht 1,199.

18 Petrochemical Plant: BBF s 450 TPD Biodiesel Plant 450 TPD Biodiesel Plant Project Owner : Bangchak Biofuel Company Limited TRC s Work Value : Baht 1, million Scope of Work : EPC package of new Biodiesel Plant with capacity of 450 tons/day and together with conversion unit of High Fatty Acid Oil to Biodiesel or feed stock unit at least capacity 55 tons/day using Crude Palm oil (CPO), Palm stearin (RPS) and Palm Fatty Acid Distillation (PFAD) as main raw material Project Location : Bangpa-in District, Phra Nakhon Si Ayutthaya Province Work Period: Dec 14 - May 16 % of Completion as at 30 June 2015: 30.98% 18

Civil Work: Construction Srinakarin Romkao Road Project Phase 1 Owners: Bangkok Metropolitan Administration Metropolitan Waterworks Metropolitan Electricity Authority TOT Public Company Limited CAT

19 Civil Work: Construction Srinakarin Romkao Road Project Phase 1 Owners: Bangkok Metropolitan Administration Metropolitan Waterworks Metropolitan Electricity Authority TOT Public Company Limited CAT Telecom Public Company Limited Contract is signed in July already. Remaining 4 contracts are on the process of contract signing. Total Work Value: Baht 1, million (Total 5 owners) Scope of Work: Construction the interchange of Srinakarin Road and Krungthepkreetha Construction Srinakarin Road to Hua Mark Klong Bangkok Metropolitan Administration Contract Signing Date: 20 July 15 Contract Value: MB Work Period: July 15 - July 17 19

20 content Company Overview 3 Ongoing Projects 14 Future Developments 21 Capital Increase & Debenture Issuance 33 Key Financial Highlights 36 20

Revised Five-year Investment Plan of PTT (Year 2015-2019) Revised from 325,551 MB to 298,700 MB* (Unit : Million Baht) Business 2015 2016 2017 2018 2019 Total % Natural Gas 34,885 19,398 33,876

21 Revised Five-year Investment Plan of PTT (Year ) Revised from 325,551 MB to 298,700 MB* (Unit : Million Baht) Business Total % Natural Gas 34,885 19,398 33,876 40,008 36, , Oil and International Trading Head Office and Others 9,149 4,708 7,040 2,882 2,777 26, ,311 5,763 2,214 1,177 1,222 13,687 5 Infrastructure 5, ,582 2 Investment in Joint Venture and its wholly owned investment 24,416 9,034 19,432 16,906 18,169 87, Total 77,280 38,925 62,581 60,988 58, , Source : PTT s news reported to the Stock Exchange of Thailand on 28 March 2015 *The reduction is mainly for the phase 2 of Liquefied Petroleum Gas (LPG) import facilities project of oil business unit, due to LPG import tends to lower as a result of Government s LPG Price restructure, which would affect LPG consumption. Moreover, the uncommitted investment projects are also reduced. However, investments in gas business unit, core business of PTT, which comprise of natural gas transmission pipeline including import Liquefied Natural Gas (LNG) capability enhancement to meet gas demand growth, still maintain at the same level. 21

JV with China Railway Group Name of Company: CR3 and Sahakarn Joint Venture Company Limited Paid-up Capital: - Baht 6 million at present Portion of Investment: 51% by Sahakarn Wisavakorn Co., Ltd.

22 JV with China Railway Group Name of Company: CR3 and Sahakarn Joint Venture Company Limited Paid-up Capital: - Baht 6 million at present Portion of Investment: 51% by Sahakarn Wisavakorn Co., Ltd. 49% by China Railway Group (At present, portion of shareholding is 92:8 because SKW injected additional Baht 5 million capital increase in CR3&SKW in May 2015.) Nature of business: To bid construction works of infrastructure 22

23 Double Track Railway 1 Metre Wide Track, TARGET: Another 8 Years, 3,994 Km. Phase 1 No. Line Progress 1 Chachoengsao Klong 19 Kaeng Khoi (106 km) 2* Thanon Chira Junction Khon Kaen (185 km) 3* Prachuap Khiri Khan Chum Phon (167 km) 4 Lop Buri Paknampho (148 km) 5 Map Kabao Thanon Chira Junction(132 km) 6 Nakhon Pathom Hua Hin (165 km) Engineering Design was completed. During EIA approval process *No. 2 and 3: Urgent Routes should be bided within April 2016 Phase 2 No. Line Progress 1 Hua Hin Prachuap Khiri Khan (90 km) 2 Paknampo Den Chai (285 km) 3 Thanon Chira Junction Ubon Ratchathani (309 km) 4 Khon Kaen Nong Khai (174 km) 5 Chum Phon Surat Thani (167 km) 6 Surat Thani Songkhla (339 km) 7 Hat Yai Padangbezar (45 km) 8 Den Chai Chiang Mai (217 km) During the preparation state of revising the Engineering Design 23

24 Double Track Railway under Cooperation with China Government Metres Wide Track (Standard Gauge), TARGET: To provide service in 2018 No. Line Progress 1 Bangkok Kaeng Khoi (133 km) During the preparation state of revising the 2 Kaeng Khoi Map Ta Phut (246.5 km) Engineering Detail Design, Land Expropriation and Technology. The construction should be commenced within October Kaeng Khoi Nakhon Ratchasima (138.5 km) During the preparation state of revising the Engineering Detail Design, Land Expropriation and Technology. 4 Nakhon Ratchasima Nong Khai (355 km) The construction should be commenced within December

25 List of Potential Bidding Projects A. Natural Gas Pipeline Project Name Approximate Project Value (Million Baht) Estimated Project Period Gas Transmission Pipeline 8, B. Processing Plant B.1 Processing Plant-APMC Project 30, B.2 Waste to Energy 2, B.3 Other Projects 5, onwards C. Infrastructure Government Project - Railway Track 12,000-15, Total Approximate 57,000 60,000 25

Investment in APMC TRC has invested in ASEAN Potash Mining Public Company Limited ( APMC ) who develops the ASEAN Potash Mining Project, one of the cooperation projects between ASEAN members.

250,000 shares from existing APMC s shareholder due to the outstanding potential in future construction and benefits from investment.

26 Investment in APMC TRC has invested in ASEAN Potash Mining Public Company Limited ( APMC ) who develops the ASEAN Potash Mining Project, one of the cooperation projects between ASEAN members. (Thai, Indonesia, Malaysia, Brunei, Philippines and Singapore) In January 2015, TRC International Limited, a Hong Kong subsidiary of TRC, has increased its investment in APMC by acquiring additional 250,000 shares from existing APMC s shareholder due to the outstanding potential in future construction and benefits from investment. Currently, total TRC s shareholding in APMC is 750,000 shares or 4.20% of paid-upcapital. (APMC s paid-upcapital is Baht 1, million.) In the second half of 2015, TRC also plans to submit the EPC bid and acquire additional APMC shares. (Target: 20%-24%) During the 25-year Mining Concession, APMC shall produce at least 20 million ton of MOP (Muriate of Potash) or equivalent to at least USD 8,000 million. 26

27 APMC Mining Concession License (25-Year) 27

28 The source of Potash around the world Source: KURZFASSUNGEN FESTSYMPOSIUM, 60 Jahre Kaliprojektierung aus Erfurt 20 Jahre ERCOSPLAN 28

29 The source of Potash in Thailand ASEAN Potash Project Source: Research paper of Asst. Prof. Dr. Parkorn Suwanich, Faculty of Environment and Resource Studies, Mahidol University, Bangkok (Thailand) in

30 Supply Demand of Potash in market world Source: Fertecon PotashCorp ( 30

31 Content Company Overview 3 Ongoing Projects 14 Future Developments 21 Capital Increase & Debenture Issuance 33 Key Financial Highlights 36 31

32 Capital Increase during May-July 2015 No. of Shares At Par Baht 0.125/Share (Unit: Million) Baht Registered Capital 5, Paid-up Capital before Capital Increase 3, Capital Increase: Stock Dividend on 28 May Capital Increase due to the 5 th ESOP Exercising in Jun 15 Capital Increase by Private Placement in Jul 2.20 Baht/Share Paid-up Capital at Present 4,

33 Debenture Issuance by way of Private Placement Objective: To raise fund for utilizing for working capital, investing and expanding future business and repayment of debt Baht 500 Million, gradual issuance 8 July 2015 : Baht 100 Million Interest Rate: 4.68% Tenor: 2 Years Baht 2,000 Million - TRC-W1 675,000 units can be issued together with Bond - Exercise ratio: 1 warrant: 1 new share - Exercise price: Baht Tenor of Debentures & Term of Warrants: 5 Years 33

34 Content Company Overview 3 Ongoing Projects 14 Future Developments 21 Capital Increase & Debenture Issuance 33 Key Financial Highlights 36 34

35 Financial Highlights Month Month 2015 YoY (6-Month Amount % Amount % Amount % Amount % 2015 vs (Million Baht) 2014) Construction services income 2, % 3, % 1, % 1, % 20.44% Cost of services 2, % 2, % 1, % 1, % 22.27% Gross profit % % % % 12.41% Other income Interest income % % % % % Other income % % % % % SG&A and finance cost % % % % -3.50% Earning before tax % % % % 53.33% Tax % % % % 14.49% Profit % % % % 65.47% Profit attributable to non-controlling interests of the subsidiaries Profit attributable to equity holders of the Company % % % % % % % % % 62.39% Total revenues 2, % 3, % 1, % 1, % 21.78% Total assets 1, , , , Total liabilities , , Total shareholders' equity 1, , , , D/E (Time)

36 Services Income Break-Down Process & Plant 28.3% Civil 7.4% Pipeline 64.2% Other Services 0.1% Process & Plant 9.8% Civil 9.0% Other Services 2.0% Pipeline 79.2% Process & Plant 0.2% Civil Other Services 1.0% Process & plant 36.6% Civil 5.1% Other Services 0.1% Pipeline Pipeline 58.2% M

37 Total Revenue & Net Profit TARGET: Services Income 0,000 (MB) 4,500 4,344 4,000 3,500 3,000 2,500 2,516 3,128 6-M 2015 Total Revenue Growth 22% Net Profit Growth 62% 2,000 1,500 1,425 1,735 1, M M (F) Total Revenue Net Profit 37

38 ROE & D/E Return on Equity Debt to Equity Ratio (%) Time(s) nd Qtr 14* 2nd Qtr 15* Jun 2015 * Financial Ratio of Industry Group was from the following sector: : PROPCON, CONMAT, PROP 2014: CONS 38

Paid-up Capital (MB) 600 562.90 41.25 PP Shares 500 103.82 Stock Dividend 400 300 256.67 329.99 330.67 333.56 Stock Dividend 73.33 ESOP-W1 0.67 ESOP-W1 3.56 336.59 ESOP-W1 6.59 408.29 RO 15.

39 Paid-up Capital (MB) PP Shares Stock Dividend Stock Dividend ESOP-W ESOP-W ESOP-W RO Stock Dividend ESOP-W ESOP-W2 3 rd - 5 th IPO Share Swap With SKW Aug

40 TRC Group Backlog 8,000 (MB) 7,000 6,000 5,000 4,000 3,000 4, ,352 3, , , , ,678 New Project of Hydrotek Sahakarn JV: Construction Improvement and Expansion of Waterworks 858 MB 6,567 (30 Jun 15) 2,000 1,000 2,835 2,970 3,347 3, Jun-15 TRC SKW Oman Subsidiaries + New Project in July 15 40

41 30 June 2015 Backlog Backlog by Scope of Work Scope of Work No. of Projects Remaining Value (MB) Pipeline 3 4,164 Petrochemical Plant 2 1,514 Civil Work Total 9 6,567 Civil 13.5% Petro 23.1% Pipeline 63.4% Backlog by Company Company No. of Projects Remaining Value (MB) TRC 5 5,678 SKW Total 9 6,567 SKW 13.5% TRC 86.5% 41

42 TRC s Backlog as at 0 June 0 5 Pipeline Project Name Type of Works Project Owner/ Client Work Value (MB) Uncompleted Work Value (MB) Project Period 1. 1 st Transmission Pipeline Life Extension Project: 28 Recoating Section E, P, C PTT Public Company Limited 3, , Feb 15 Oct Provincial Gas Transmission Pipeline to Nakhon Ratchasima (Contractor: Sinopec TRC Joint Venture) (Project value 4, MB and USD Million) E, P, C PTT Public Company Limited 1, (Only TRC s Portion) Nov 13 Aug 16 (Extended from Apr 16) 3. Natural Gas Pressure Reduction Station Pipeline Project E, P, C PTT Public Company Limited Apr 14 Oct 15 Total 3 Projects 5, ,

43 TRC s Backlog as at 0 June 0 5 Petrochemical Plant Project Name Type of Works Project Owner/ Client TPD Biodiesel Project (Expansion Phase) E, P, C Bangchak Biofuel Company Limited Work Value (MB) Uncompleted Work Value (MB) Project Period 1, Dec 14 May The new Incinerator Project (Project value MB and USD Million) E, P, C Trans Thai Malaysia (Thailand) Limited Nov 14 Jul 16 Total 2 Projects 2, ,

44 SKW s Backlog as at 30 June 2015 Project Name Type of Works Project Owner/ Client Work Value (MB) Uncompleted Work Value (MB) Project Period 1. Construction Project, Srinakarin to Romklao Road, Phase 1 E, P, C Bangkok Metropolitan Administration Jun 15 Jul Construction the Energy Laboratory of Applied Building, Amphur Wangnoi, Ayutthaya Province E, P, C PTT Public Company Limited Dec 13 Oct15 3. Pilot Pile Test, Project new production line Building E, P, C Electricity Authority of Thailand Jun 15 Aug Water Resource Conservation and Rehabilitation for Nong Sanoon, Nakhonsawan Province E, P, C Department Of Water Resources Dec 14 Jul 15 Total 4 Projects 1,

45 SKW s New Project in July 0 5 Project Name Construction, Improvement and Expansion of Waterworks, Koh Samui Branch, Koh Samui District, Surat Thani Province Phase 1, Part 2 (water pipeline from Don Sak-under the sea- Koh Samui) (Contractor: Hydrotek Sahakarn Joint Venture, Project value 858 MB) Type of Works Project Owner/ Client E, P, C Provincial Waterworks Authority Work Value (MB) (Only SKW s Portion Uncompleted Work Value (MB) Project Period Months Total 1 Project

46 46

TRC Corporate Presentation. The 3 rd Qtr & 9-Month 2015 Operating Performance. 16 December 2015

TRC Corporate Presentation. The 3 rd Qtr & 9-Month 2015 Operating Performance. 16 December 2015 TRC Corporate Presentation The 3 rd Qtr & 9-Month 2015 Operating Performance 16 December 2015 1 Content Company Overview 3 Ongoing Projects 15 Future Developments 22 Capital Increase & Debenture Issuance