2015.02.03 scn roadshow fv revised clean - set.or.th · bpa intertrade(outbound) 13 prospect...

SCN1CREATING SUSTAINABLE ENERGY

I. Business Overview

2

3

Natural Gas Supply in Thailand

Source: PTT

SAMKHOK NGV MOTHER STATION

1

12

iCNG MOTHER STATION

2

2

4

Distribution

Pipeline

NGV Services

Myanmar Import (19%)

LNG (8%)

Domestic Supply (73%)

Regasification

Natural Gas Quality

Improvement

Private Mother Station

(PMS)

Natural Gas

Transportation

(TPL)

NGV Service Stations

1

Daughter Stations

Conventional Station

EPC

4

EPC & Maintenance NGV

Stations and Related

Gas System

Manufacturing of

CNG/NGV Compressor

and Related Equipment

Auto Dealer

5

Installation of NGV and

LPG Conversion System

in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2

Industrial Compressed

Natural Gas

iCNG

IndustrialPressure Reducing

SystemPRS

Gas Related Business Overview

Associated Gas

7

Auto Dealer

3

Solar Power Plant

6

5 MW at nakornpathom

Power Grid

5

The structure of the NGV retail price

• Results from the adjustment of NGV retail price according to the price-floating policy has enabled new NGV stations

to gain revenue of 3.4367 baht per kilogram, from the former private NGV stations which had a marketing fee of 1.80-

2.00 baht per kilogram

Source: Energy Policy and Planning Office, Ministry of Energy 2016

Service Fee2 THB

Vat 7%

PTT

Existing NGV Retail Price Policy (Stations 1 - 8)

Action Fee3.4362 THB

Vat 7%Wholesale Price

of Gas

New NGV Retail Price Policy (Stations 9 - 15)

1

6

Price Comparison Between Gasoline and NGV1

7

Price Comparison Between Diesel and NGV1

8

Current NGV Service Stations Map 1 Scan Inter Service Stations (PBS)

2 Susco Vibhavadi

1

2 4

3 Susco Sukaphiban

4 Susco Bangna

5 Worapapha

3 5

6 Kaokong Petroleum

7 NT Energy Gas

6

7

1

23

4

5

1

9

Total SCN Market Share & Sale Volume

SCN Market Share

SCN Sale Volume

1

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

-

50.00

100.00

150.00

200.00

250.00

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Ton

/day

SCN NGV Station Total (LHS) NGV Thailand (RHS)

10

SCN Sale VolumeScan Inter (Samkhok) Scan Inter & Susco (Bangna)

Scan Inter & Susco (Sukhapiban) Scan Inter & Susco (Vibhavadi)

1

6,000

7,000

8,000

9,000

20.00

40.00

60.00

Jan-16 Mar-16 May-16 Jun-16 Aug-16 Oct-16 Nov-16 Jan-17 Mar-17

Ton

/day

Scan Inter(Samkhok)

NGV Thailand

6,000

7,000

8,000

9,000

10,000

-

5.00

10.00

15.00

20.00

25.00

30.00

Jan-16 Apr-16 Jun-16 Aug-16 Nov-16 Jan-17 Mar-17

Ton

/day

Susco (Bangna) NGV Thailand

6,000

7,000

8,000

9,000

10,000

-

5.00

10.00

15.00

20.00

25.00

30.00


Ton

/day

Susco (Sukaphiban) NGV Thailand

6,000

7,000

8,000

9,000

10,000

-

5.00

10.00

15.00

20.00

25.00

30.00


To

n/d

ay

Susco (Viphavadi) NGV Thailand

11

SCN Sale VolumeWorapaphaKaokong Petroleum

NT Energy Gas

1

6,000

6,500

7,000

7,500

8,000

8,500

9,000

30.00

40.00

50.00

60.00

70.00


Ton

/day

Kaokong Petroleum NGV Thailand

6,000

6,500

7,000

7,500

8,000

8,500

9,000

24.00

26.00

28.00

30.00

32.00

34.00


Ton

/day

Worapapha NGV Thailand

6,000

6,500

7,000

7,500

8,000

8,500

9,000

16.00

17.00

18.00

19.00

20.00

May-16 Jul-16 Aug-16 Sep-16 Nov-16 Dec-16 Jan-17 Mar-17

Ton

/day

NT Energy Gas NGV Thailand

12

Green Field NGV Service Stations Map

8

AIMMIE NGV 9

Nampong NGV

8

10 BPA Intertrade (inbound)

10

9

Siamvasco (Chai Nat)

BPA Intertrade (outbound)

13 Prospect Station

11

12

New structure of the NGV retail price

15 Joint Venture Station 1

16 Joint Venture Station 2

Joint Venture Station

1

11

12

14 Prospect Station

13

ESTIMATE SALES VOLUME

Status NGV Service StationsSales goal

(kilogram/day)

In Operation

Scan Inter (Pathumthani)

Kaokong Petroleum (Rayong)

Warapapha (Bangkok)

NT Energy Gas (Prachinburi)

Susco Scan Inter 3 stations (in Bangkok and premises)

65,000

75,000

30,000

30,000

90,000

Green Field

BPA Intertrade I (Chonburi)

AIMMIE NGV (Prachinburi)

Namphong NGV 2558 (Khonkaen)

BPA Intertrade II (Chonburi)

Siamvasco (Chai Nat)

Prospect Station (2)

60,000

40,000

60,000

60,000

40,000

40,000

Target M&A 3 Stations (In 2017) 100,000

Total Sales Goal by the end of 2019 690,000

1

14

NGV Service Station Revenue 1

204.94

246.87

512.93

140.28 119.63

-

100.00

200.00

300.00

400.00

500.00

600.00

2014 2015 2016 Q1 2016 Q1 2017


TH

B M

• The revenue in Q1/2017 is less than Q1/2016 because the retail price of NGV decreased from 13.50 Baht/kg to 12.54 Baht/kg• The actual sales remain the same and due to the pricing regulation, the profit is fixed in Baht/kg and is not related to the retail price.

15

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

16

Pressure Reducing System (PRS)

5

2

17

5

Industrial Compressed Natural Gas Revenue2

129.57

185.35

36.62

68.60

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

200.00

2015 2016 Q1 2016 Q1 2017

iCNG

TH

B M

• The actual sales of iCNG in Q1/2017 increased significantly from Q1/2016• The revenue target for 2017 is 500 million Baht• Actual sales to the end users are expected in increase within the year predicted from the backlog of customers that are in contract signing phase.

18

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

19

NGV Services

• SCN is the owner of the largest NGV Mother Station in the nation at the current production capacity at 643 ton/day

• Providing energy service to PTT by compressing natural gas from the pipeline to the CNG trailers to serve the retail stations in Bangkok and the suburban areas

Natural Gas

Quality

Improvement

Private Mother

Station

(PMS)

Natural Gas

Transportation

(TPL)

• Providing NGV logistic service for PTT by transporting the compressed natural gas from our Private Mother Station to the NGV retail stations in Bangkok and the suburban areas

• Using the state of the art safety protocol including GPS tracking system, onboard monitoring system and well trained personnel

Distribution Pipeline Gas Station

Revenue Private Mother Station (PMS) Revenue Natural Gas Transportation (TPL)

TH

B M

TH

B M

3

236.99 265.05

329.70

80.07 70.37

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

2014 2015 2016 Q1 2016 Q1 2017

226.27

178.88 171.62

43.31 34.47

-

50.00

100.00

150.00

200.00

250.00

2014 2015 2016 Q1 2016 Q1 2017

20

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC & Maintenance

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

21

EPC & Maintenance NGV Stations and Related Gas System

• SCN’s core value is being the only CNG Compressors & the related components manufacturer in ASEAN

• Creating cost competitiveness in EPC & maintenance services for NGV & CNG applications

• Thus being the first mover and the pioneer of all the CNG business in Thailand and South East Asia

EPC & Maintenance NGV Stations and Related Gas System

12 out of 17 PTT’s NGV Mother Stations in Thailand were built by SCN

More than 50 % market share of EPC of NGV Stations

More than 50% market share of contract maintenance of NGV stations

EPC & Maintenance TH

B M

4

489.28

401.24

484.44

105.33

172.50

-

100.00

200.00

300.00

400.00

500.00

600.00

2014 2015 2016 Q1 2016 Q1 2017

• The revenue in Q1/2017 is slightly higher than Q1/2016 due to completion of CO2 related system

• Since the company’s core value is focused on CNG, the realized profit from Q1/2017 is not as high as the

profit realized in Q1/2016.

• However, in the remainder of 2017, there are some EPC backlog already acquired and due to the new

NGV policy and regulation, the company is expected to obtain more CNG related EPC contract from the

end users.

• The revenue target basis for EPC is approximately 500 million Baht per year

22

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

23

Auto Dealer & Installation of NGV/LPG Revenue

Showroom Service and Maintenance Centre

Body Repair and Paintwork Service Centre

486.02

666.13 619.28

228.30

138.79

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

2014 2015 2016 Q1 2016 Q1-2017

Auto Dealer Business

63.83 63.33

34.46

7.43 11.66

-

20.00

40.00

60.00

80.00

2014 2015 2016 Q1 2016 Q1 2017

Installation of NGV & LPG

TH

B M

TH

B M

• The revenue of auto sales in Q1/2017 dropped dramatically when compared to Q1/2016 and caused the net profit to realized less profit• In Q1/2016 Mitsubishi Motors Thailand introduced their new flagship model, the Pajero Sport and caused the sales to grow significantly in that quarter• In Q1/2017, no new model has been introduced• However, auto dealership is not the main focus of the company

24

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

25

Scan Inter Public Company Limited has

collaborated with Satribangpasri

cooperative to create a solar project with

distribution capacity at 5 MW. The site is located at Bangpasri district,

Banglen, Nakornpathom. COD December 28, 2016

Solar Power Plant

Solar Power Plant

6

-

10.86

-

2.00

4.00

6.00

8.00

10.00

12.00

Q1 2016 Q1 2017

Solar Power Plant

TH

B M

26

Distribution

Pipeline

NGV Services


LNG (8%)


Regasification

Natural Gas Quality

Improvement


(PMS)

Natural Gas

Transportation

(TPL)


1

Daughter Stations


EPC

4



Gas System

Manufacturing of

CNG/NGV Compressor


Auto Dealer

5



in Vehicles

Testing Center

Car, Bus and Truck

iCNG

2


Natural Gas

iCNG


SystemPRS


Associated Gas

7

Auto Dealer

3

Solar Power Plant

6


Power Grid

27

Associated Gas

WBEXT 3 WBEXT 215 km

• Signed the rental agreement with

nearby gas stations due to preparing

NGV station’s construction

• SCN is now on processing for construct

the NGV receiving point and NGV

station which have the production

capacity approximately 27,000 km/day

• Available within 2017

• In 2017, SCN has one more NGV station

as 17th stations

28

Associated Gas

Eco Orient Energy (Thailand) Ltd.

Location Flow Rate (scfd) NG Ton/D Co2 25% Total

WBEXT 3 500,000 16.00 4.00 20.00

WBEXT 2 200,000 6.00 1.50 7.50

Total 700,000 22.00 5.50 27.50

Associated Gas

29

International Market

• After 5 years of extensive research, we are ready to launch our new innovative product, the Type 4 cylinder, N4. This cylinder is

focused to be used in the logistic network of CNG to reduce the weight of the trailer when compared to the traditional Type 1

steel cylinders, thus reducing the transportation route and significantly reduces the transportation cost for the CNG logistic

providers.

• SCN agree with Sojitz Corporation Co., Ltd. to be a partner. Sojitz is wide-ranging general trading company which ranked 2nd of

the biggest company in Japan due to seeking the marketing and trading the related products both CNG and NGV for the worldwide

needs of NGV consumption

II Financial Overview

30

159.82225.39

307.96

82.05 47.58

0

50

100

150

200

250

300

350

2014 2015 2016 Q1 2016 Q1-2017

31

Net Profit

Note: The figures are not including discontinued business, Special Project and Solar Plant

Strong Growth in Net ProfitTH

B M

Net Profit

• Provision of slow moving stock valued more than 7 million THB. • There were repairing works from the delivered work that were in the warranty period from 2016.• The price of iCNG is based on oil price dating back to the previous 3 months. From the world crude oil price data, it can be seen that

during October-December 2016, oil prices have fallen, affecting the decline in iCNG earnings.• The domestic automobile market is slowing down including Mitsubishi itself has not released a new car affecting the car dealership

business.• The Company's financial cost increased from the expansion of the business especially NGV stations that under construction.• The company focuses on bringing its existing resources to be used to generate recurring income in the future, in accordance with

the company's business plan, the Company cannot recognize revenue from construction and maintenance works that generate high profit.

1,937.29 2,123.48 2,523.74

679.81 677.68

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

2014 2015 2016 Q1 2016 Q1-2017

32

Strong Consolidated RevenueTH

B M

Total Revenue

Note: The figures are not including discontinued business, Special Project and Solar Plant

Total Revenue Structure

TH

B M

Strong Growth in Revenue

1,221.31 1,284.94 1,718.50

413.04 477.23

486.02 666.13

619.28

228.30 138.79

229.96 172.41

185.96

38.47 50.80

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

2014 2015 2016 Q1 2016 Q1-2017

Gas related Business Auto Dealer Business Other Income

356.57 327.79 461.98

119.61 76.21

29.2%

25.5%26.9%

29.0%

16.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

2014 2015 2016 Q1 2016 Q1 2017

Gross Profit (LHS) GPM (RHS)

1,221.31 1,284.94

1,718.50

413.04 477.23

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1,800.00

2,000.00

2014 2015 2016 Q1 2016 Q1 2017

33


SCN’s Core Business Healthy Growth

Revenue – Gas Related Business Gross Profit vs GPM – Gas Related Business

TH

B M

TH

B M

150.01 197.22 - - -

236.99 265.05

329.70

80.07 70.37

226.27 178.88

171.62

43.31 34.47

204.94 246.87 512.93

140.28 119.63

129.57

185.35

36.62 68.60

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

2014 2015 2016 Q1 2016 Q1 2017

R&M Conrtact PMS TPL NGV Retail iCNG34

Recurring Revenue

Creating Sustainable Income with Recurring Revenue & Solid Gross Margin of Recurring Revenue

TH

B M

Recurring Revenue Recurring Gross Profit and Margin

219.59 307.74

380.86

99.20 81.69

27%30%

32% 33%

28%

0%

5%

10%

15%

20%

25%

30%

35%

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

2014 2015 2016 Q1 2016 Q1 2017

Gross Profit Gross Profit Margin

Other Business8%

Solar Power Plant2%


20%

Autogas2%

Construction & MA25%


18%

TPL5%PMS

10%

iCNG10%

Gas Related

Business

70%

35

Revenue Structure

Total Revenue Structure

Q1 2017 : 677.68 MMTHB Q1 2016 : 679.81 MMTHB

Diversified Source of Revenue, Focusing on Gas Related Business

Other Business6%


34%

Autogas1%

Construction & MA15%


21%

TPL6%

PMS12%

iCNG5%

Gas Related Business

60%

36

Surging of Return & Sound Capital Structure

D/E Ratio vs. IBD/E RatioROE & ROA

Note: (1) annualized figure, excluding profit from disposing solar power plant

16.50

24.47

18.04 17.50 15.11 12.64 12.78

10.52 11.04

6.89 7.69 8.91 7.78 7.96

-

5.00

10.00

15.00

20.00

25.00

30.00

2014 2015 2016 Q1 2016 Q1-2017

ROE (Exclude IPO) ROE ROA

1.4

0.67 0.81 0.83

1.1

0.46 0.69

0.70

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2014 2015 2016 Q1-2017

D/E Ratio IBD/E

37

Q&A

38

SCN

nachanyanat.po

Typewritten Text

JUNE 2017

2015.02.03 scn roadshow fv revised clean - set.or.th · bpa intertrade(outbound) 13 prospect...

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