OPPORTUNITY DAY | 11 MARCH 2019

Global Presence • Aesthetic Excellence • Business Integrity

2

THE BEGINNING

OF

THE NEW JOURNEY

Agenda

• COMPANY OVERVIEW

• PRODUCTS & SERVICES

• FINANCIAL HIGHLIGHT

• ACTIVITIES & OPPORTUNITIES

• Q & A

3

Overview

4

TCM Corporation Structure

5Total: 15 subsidiaries

6

Proportion of TCMC business (Historical record 2016-2018)

TCM Flooring

15%

TCM Living54%

TCM Automotive

31%

2016 (3,872.07 MB)

TCM Flooring

20%

TCM Living61%

TCM Automotive

19%

2017 (7,633.13 MB)

TCM Flooring

35%

TCM Living50%

TCM Automotive

15%

2018 (9,546.56 MB)

TCM Global business – our offices

7

Flooring businessLiving businessAutomotive business

Calhoun

UK

Singapore

HKMacauChina

India

Chiang maiPathumthaniBangkokHad YaiSamutrprakarnAyutthaya

UAE

7

Our Business

8

9

10

11

Financial Highlight

12

13

TCMC Consolidated Operating Performance(FY17 VS FY18 performance)

7,633.14

1,990.84

685.41347.21

9,546.56

2,859.46

990.76408.88

0

2,000

4,000

6,000

8,000

10,000

12,000

Sales Gross profit EBITDA Net profit

Un

it: M

B

YoY Performance

FY2017 FY2018

Diff 25.07%

Diff 43.63%

Diff 44.55% Diff

17.76%

% to sales 100% 100% 26.08% 29.95% 8.98% 10.38% 4.55% 4.28%

14

Business Performance

1,556.85

530.99

169.32 109.53

3,327.05

1,270.32

330.86229.36

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Sales Gross profit EBITDA Net profit

Un

it: M

B

YoY Performance*

FY2017 FY2018

Diff 113.70%

Diff 139.24%

Diff 95.40% Diff

113.56%

% to sales 100% 100% 34.11% 38.18% 10.88% 9.94% 7.04% 7.03%

*TCM Flooring performance excluded Corporate expenses & Interests

15

Business Performance

1,424.03

321.64279.24

177.39

1,431.78

329.45283.96

176.87

0

200

400

600

800

1,000

1,200

1,400

1,600

Sales Gross profit EBITDA Net profit

Un

it: M

B

YoY Performance

FY2017 FY2018

Diff 0.54%

Diff 2.43% Diff

1.69% Diff -0.29%

% to sales 100% 100% 22.59% 23.01% 19.61% 19.83% 12.46% 12.35%

16

Business Performance

106.49

26.38

6.35 5.38

110.99

29.22

8.71 7.76

0

20

40

60

80

100

120

Sales Gross profit EBITDA Operating Income(Alstons&DMMH)

Un

it: M

illio

n G

BP

YoY Performance*

FY2017 FY2018

Diff 4.23%

Diff 10.76%

Diff 37.27%

Diff 44.31%

% to sales 100% 100% 24.47% 26.32% 5.96% 7.85% 5.05% 6.99%

GBP

*TCM Living performance excluded Amortization of intangible assets & Interests

6,317.786,033.17

2,698.063,421.93

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

9,000.00

10,000.00

2017 2018

Un

it:

MB

Statement of Financial Position

Total Liabilities Equity

9,015.84

9,455.70

Total Assets

17

TCMC Consolidated Operating Performance

D/E Ratio

2017 2018

2.34 1.76

ROE

2017 2018

12.87% 11.95%

ROA

2017 2018

3.85% 4.32%

EPS (Baht)

2017 2018

0.42 0.36

Current Ratio (Times)

2017 2018

0.72 1.52

Quick Ratio (Times)

2017 2018

0.50 1.01

18

TCM Flooring Performance by Quarter(Q1-Q4 2018)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Q1/2018 Q2/2018 Q3/2018 Q4/2018

Un

it :

‘00

0 T

HB

Un

it :

‘00

0 T

HB

TCM Flooring QoQ Performance

COGS Expenses Operating Income EBITDA

71.72%

65.48% 66.81%

60.44%

19

TCM Living Performance by Quarter(Q1-Q4 2018)

1

1

2

2

3

3

4

4

0

5

10

15

20

25

30

35

40

Q1/2018 Q2/2018 Q3/2018 Q4/2018

Mill

ion

s

Un

it :

GB

P

Mill

ion

sTCM Living QoQ Performance

COGS SD&A expense Operating Income EBITDA

74.15%74.29%

73.91%

72.66%

Activities

20

LVT, Flatweaves2%

Axminster59%

Handtufted & Passtufted3%

Broadloom8%

Carpet Tiles12%

Needle Punch13%

Other3%

21

Hospitality Sector

Automotive Sector

Private Label(Residential Sector)

Corporate Sector

Installation & Service

TCM FLOORING: PRODUCTS

21

TCM Flooring Sales Strategies

22

CUSTOMERS: HOSPITALITY + BOUTIQUE & RESIDENTIAL

23

Q/&$%( &&*5, )'%( )&7$2& *

24

ADDRESSABLE HOSPITALITY MARKET:

Brintons21%

Royal Thai22%

Ulster7%

Crossley5%

Couristan5%

Shanhua5%

OW4%

Haima4%

Other European Mills4%

Other Chinese Mills23%

Growth Initiatives2019

25

26

PEOPLE

• Strategic New Hires to Increase Growth in US, Singapore & EMEA

• Agents Signed in Mexico & Japan

27

KEY SECTOR: CRUISE

27 New Builds LAUNCHED IN 2018

Harmony of the Seas

28

KEY SECTOR: AIRPORTS

RECENT COMPLETIONS:

HK Airport: 85,000 square meters

Changi Airport

Suvarnaphumi Airport

29

KEY SECTOR: PRIVATE JETS

Market Size: $45 Million

Royal Thai:$.5 Million

30

KEY SECTOR: RTPL/RESIDENTIAL

Market Size: US: $140 MillionEMEA: $50 MillionASIA: $20 Million

Royal Thai:US: $1.5 MillionEMEA: $1.6 MillionASIA: $0.2 Million

TCM Flooring Sales Strategies

31

CUSTOMERS: CORPORATE, EDUCATION, HEALTHCARE

32

CARPET TILE MARKET

33

2016 2017 2018

Domestic 3,564,366 3,909,094 3,962,033

Export 6,373,629 6,326,199 7,620,672

6.37 6.33

7.62

3.56 3.91

3.96

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Un

it: U

SD

Mill

ion

s

Total Sales Carpet tiles(Domestic & Export)

Total 9,937,995 10,235,293 11,582,705

CARPET TILE MARKET

34

Growth Initiatives2019

35

KEY MARKETS: INDIA, BRAZIL, NEW ZEALAND

36

CARPETS INTER: THE RECYLCING MANUFACTURER

37

ECOSOFT

USES

ROUGHLY

50X550 ML.

RECYCLED

PET

BOTTLES

FOR EVERY

SQUARE

METER OF

PRODUCT.

Consolidating Activities

38

Operation Restructuring

39

Before

Carpets Inter

TCMC

RT office overseas

Customers

Export

DomesticManufactureDistributorBrand: CI, RT

ManufactureDistributorBrand: RT

Customers

Customers

Customers

Suppliers for other products (Flatweave, LVT, Wooden floor)

UCM

Customers

Customers

ManufactureDistributorOEM

*Total number of staff = 2,203 people (as of Dec’17)

* * *

Operation Restructuring

40

After

Carpets Inter+ UCM

TCMC

RT office overseas

Customers

Export

DomesticManufactureDistributorBrand: CI

DistributorBrand: RT

Customers

Customers

Customers

Suppliers for other products (Flatweave, LVT, Wooden floor)

Customers

CI brand onlyOverseas partners (ITC function)

Contract manufacturing

*Total number of staff = 1,739 people (as of Jan’19)

* *

Drive Manufacturing Profitability

41

• Centralised purchasing and raw material savings, experience and economy of scale purchases.

• Centralised planning and optimised plant scheduling.

• Wool Yarn Manufacturing plant upgrade.

• Investment in new technology high-speed Axminster looms.

• Global implementation of an integrated ERP IT system.

• Consolidate manufacturing into one factory.

Factory production

42

Axminster

• Target yr2019: 1.65 M. sqm/year

• No. of machine: 43, plus 2 high speed looms

Hand tufted

• Target yr2019:

• Luxury grade 15,000 sqm/year

• Commercial grade 50,000 sqm/year

Pass tufted

• Target yr2019: 35,000 sqm/year

• No. of machine: 14 machines

Carpet Tiles

• Target yr2019: 1.05 million sqm/year

• No. of machine: 14 machines

Needle Punch

• Target yr2019:

• 4.08 million sqm/year

• No. of machine: 4 machines

Activities

43

TCM Living restructuring

44

Working groups

Alstons DMMH

ManufacturingProcurement

ERPFinance

Accounting & Reporting

A&J First Asia Flagship store

45

A&J First Asia Flagship store

46

A&J First Asia Flagship store

47

A&J First Asia Flagship store

48

A&J First Asia Flagship store

49

A&J First Asia Flagship store - Launch events

50

Q&A

51

Contact :Address : TCM Corporation Plc.

238 Vipavadee Rangsit rd., Sanambin, Don Muang, Bangkok 10210

Tel : +66 (0) 2 533 6393

Investor Relations :E-mail : ir@tcm-corporation.comTel : +66 (0) 2 656 0305 ext. 30 Download presentation file here

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Global Presence • Aesthetic Excellence • Business Integrity