Dynasty Ceramic We are making the impossible, POSSIBLE.
Contents Road to Success Sales Reports Cost of Production Performance Competitor Analysis Going Forward Q & A 2
Dynasty Ceramic Road to Success
DCC Timeline Established on the 1 st of August 1989 Registered as PCL on the 4 th of March 1994 1 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 2002 2004 32.2 M 2005 35.5 M Timeline Dynasty Production Process in 2004 2006 37.4 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 2010 2008 42.2 M 2009 45.1 M Ranked 17 th world s Largest Ceramic Tile Manufacturer in 2008 SET Outstanding Performance Award 2011 2010 51.6 M 2011 58.6 M 2012 64 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
Our Growth 9,000 8,000 Forecast 2012 250 7,000 200 6,000 5,000 4,000 3,000 150 100 Outlet Sales per Outlet Outlet Sales Revenue Agent Sales 2,000 50 1,000-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -
DCC with Thai People
Dynasty Ceramic Sales Reports
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
Sales Value 1,000 900 ACTUAL JAN-MAR 2012 = 2,093 MB ACTUAL Y2011 = 7,195 MB 800 700 600 500 644 692 649 621 614 619 757 715 744 586 646 647 571 ACTUAL Y2010 = 6,456 MB 561 567 574 554 532 517 511 482 491 609 525 400 447 440 430 300 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Sales Volume & Sales Value 1Q2012 30.0 25.0 20.0 15.0 1Q12 4Q11 1Q11 SALES VOLUME(M.Sqm.) 2,093 16.1 15.8 1,632 12.6 SALES VALUE(MB) 2,014 10.0 5.0 1Q12 4Q11 1Q11 1Q12 4Q11 1Q11 - %GROWTH 29% 2% 28% 4%
Outlet Quarterly Sales Performance by Region (MB) NE M E S N 689 690 622 582 372 317 320 314 323 305 238 244 213 194 182 211 180 163 150 156 111 106 104 101 462 393 368 368 371 359 361 247 320 228 204 208 199 181 193 196 122 116 118 115 481 397 338 398 322373 281 329 346 210 227 249 216 215 221 139 131 123 126 383 400 344 293 259 274 149 138 455 468 432 387 295 350 322 288 256 257 265 147 143 147 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
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%
Sales Comparison by Distribution Channel Y2009 2011, 1Q2012 (MB) 1,800 (ล านบาท) 1,600 1,400 1,200 1,000 MB 800 600 400 200 - (200) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Outlet 1,225 1,159 987 1,065 1,373 1,183 980 1,040 1,412 1,357 1,244 1,222 1,606 Agent 220 163 247 258 388 319 257 287 413 331 291 257 313 Export 32 37 42 42 49 53 40 43 45 46 61 56 62 Franchise 140 101 99 65 138 119 91 96 144 120 99 97 112
Sales Comparison by Distribution Channel Y2010 2011, 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%
Sales Comparison by Product Type Y2009 2011,1Q2012 (MB) 1,500 (ล านบาท) 1,300 1,100 900 MB 700 500 300 100 (100) (300) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Floor 12 x 12 1,013 876 775 818 1,136 968 748 783 1,040 946 829 773 946 Floor 16 x 16 242 262 280 312 427 371 332 397 597 556 536 555 736 Floor 8 x 8 103 90 88 83 111 99 77 78 102 92 87 78 101 Wall 8 x 8 13 11 14 12 12 11 8 8 10 10 12 8 11 Wall 8 x 10 213 190 188 177 223 191 173 169 223 209 192 180 251 Wall 8 x 12 3 Other 33 31 30 28 39 34 30 31 42 41 39 38 45
Sales Comparison by Product Type Y2010 2011,1Q2012 (%) 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%
Dynasty Ceramic Cost of Production
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
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
Dynasty Ceramic Performance
Notices 30% Tax (1Q11) DCC adopted new accounting standard (2011) TAS19 - Employees Benefit Obligation (1Q11) First 85 Million Baht booked in Liabilities 12-15 Million Baht per year Sales promotion and commission fee deducted directly from Sales (1Q11) Revising assets and its depreciation (2Q11) 23% Tax (2012) 21
M. QUARTERLY PERFORMANCE GROSS PROFIT 900 840 852 NET PROFIT (BT) 823 800 769 SALES VALUE 2021 1964 660 1865 700 659 632 646 587 615 601 1696 1621 600 529 1461 1490 1461 1392 1431 1381 500 1303 438 411 400 1184 1147 358 364 320 337 289 300 219 235 240 250 230 247 200 166 151 128 100 M. 2500 828 2093 744 2000 665 1703 1638 1500 373 1000 289 253 500 0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 0
NET PROFIT(MB)/EARNINGS PER SHARE(BAHT) 1Q2012 500 400 300 1Q12 4Q11 1Q11 NET PROFIT(MB) 373 0.91 364 0.89 253 0.62 EARNINGS PER SHARE(BAHT) 200 100-47% %GROWTH 2% 1Q12 4Q11 1Q11 1Q12 4Q11 1Q11
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 3,084 832 Gross Profit Margin (percent) 37 39 39 43 44 43 40 SG&A (Bt mil) (742) (791) (978) (1,079) (1,208) (1,237) (347) Net Profit (Bt mil) 567 543 664 994 1,175 1,243 373 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) 34 35 41 47 51 56 16 Average Sales Price (Bt/Sqm.) 129.31 125.72 124.65 125.38 128.62 128.91 128.93 24
Performance FY06 FY07 FY08 FY09 FY10 FY11 1Q12 Gas Cost of COGS (Bt mil) 619.06 549.06 929.76 702.97 946.81 1,314.41 381.31 Natural Gas Price (Bt/MMBTU) 259.39 257.09 354.44 245.54 303.07 371.67 412.03 Transportation Cost (Bt mil) 362.15 345.70 438.51 410.48 517.39 598.06 170.08 Transportation Cost (Bt/Sqm.) 10.34 9.58 10.69 8.66 9.97 10.58 10.56 Oil Price (Bt/Litre) 25.58 25.50 31.17 23.87 28.50 29.44 31.29 25
Key Financial Ratios FY06 FY07 FY08 FY09 FY10 FY11 1Q12 ROE 27.74 23.86 28.45 39.02 43.80 46.78 13.29 ROA 13.03 13.40 16.72 26.43 31.99 30.99 8.51 EPS (Baht) 1.39 1.33 1.63 2.44 2.88 3.05 0.91 D/E 1.13 0.78 0.59 0.34 0.36 0.62 0.47 P/BV 2.78 1.78 4.40 9.89 9.41 8.95 Pay Out Ratio 70% 75% 77% 85% 100% 100% 100% Dividend Per Share 0.97 1.00 1.25 2.08 2.88 3.05 0.91 26
Dynasty Ceramic Competitor Analysis
Sales Value (MB) 2,500 2,000 1,948 2,018 1,856 2,093 1,500 1,000 500-1,698 1,634 1,674 1,618 1,461 1,430 1,467 1,375 1,369 702 535 503 481 395 489 471 380 281 279 266 241 578 626 707 595 598 620 601 605 275 272 278 263 753 700 699 619 586 702 626 605 637 576 260 262 277 248 263 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 DCC TGCI RCI UMI 28
Profit (MB) 500 400 300 200 MB 100 - (100) (200) 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 DCC 289 235 240 231 358 320 250 247 364 337 289 253 373 TGCI (100) 13 49 1 103 75 82 63 161 86 41 11 55 RCI (29) (40) (15) (12) (22) (41) (26) (36) (28) (35) (43) (48) (10) UMI 5 32 61 31 49 52 68 48 38 21 38 24 46 29
Dynasty Ceramic Going Forward
Risk Factors Natural Gas price is said to increase 5% in 2012 Natural Disaster worse than previous year? Government Policies
Production Capacity Expansion Plan 2012
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
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
Dynasty Ceramic Questions?
MARUTH SAENGSASTRA Vice President & C.I.O. Dynasty Ceramic PCL. Tile Top Industry PCL. 37/7 Sutthisarn Rd., Samsennok, Hueykwang BKK.10310 E-mail : maruth@dynastyceramic.com 36