1
Disclaimer
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recipient’s decision. Each recipient of the information and data contained herein should perform its own independent investigation and
analysis of the transaction and the creditworthiness of MILL. Reference in this Disclaimer to this shall include references to the
Appendices (if any)hereto.
2
Agenda
1. Business Overview
2. Financial Performance
3. Industry Outlook
4. Ongoing Project and Plan
Company Structure
Overseas
Steel Trading
in Myanmar
MILLCON STEEL PLC.
Steel bar 550,000 Ton/year
MILLCON Engineering LTD.
MILLCON THIHA Ltd.
45%
(JV Company)
51%
(JV Company)
Steel pipe 64,397 Ton/year
Local
Steel Trading
in Thailand
MILLCON BURAPA
CO.,LTD
MILLCON SPECIAL
STEEL CO.,LTD.
MILLCON Steel Pipe
LTD.
SAHARUAM
CONSTRUCTION
MATERIAL Co., LTD.
ZENTRA-WARTUNG
ENGINEERING
CO.,LTD.
98.73%
100%
(Set up for JV company)
100%
100%
99.99%
Billet 500,000 Ton/year
Wire rod 500,000
Ton/year
Structural steel 96,000
Ton/year
N/A
N/A
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STRICTLY PRIVATE & CONFIDENTIAL
Background and Major Development
Kick off “Green MILL project” to ensure
sustainability of Billet with capacity
500,000 tons per year and Green MILL
Project operated in 2012
Acquired MILLCON BURAPA ,expand
long steel product with capacity
550,000 ton/year
2007
• Increased capital to
Bt 400 M, IPO and
listed in SET
2008
2009
• TSSI project acquisition asset success.
• Set up Millcon Thiha Co. in Myanmar
• Joined with General Engineering Plc. to
invest in Myanmar's Thilawa Industrial
Estate for produce steel pipe
,construction and prefabricated.
2013
2014
2015
• Investment in “cut and bend machinery”
• Investment in the CCM’s 4th strand in
GREEN MILL production line
• Set up Millcon Special Steel Co., Ltd. as subsidiary for producing wire rod with
production capacity of 500,000 tons per year ,MILL Group have total production
capacity 1,350,000 tons per year.
• Investment in “Transformer machinery” for reduce cost of billet production
• Set up MILLCON Steel Pipe LTD. for operated steel pipe business in Thailand.
• Increase capital for support investment in renewable energy or business expansion.
5
STRICTLY PRIVATE & CONFIDENTIAL
Overview Steel Business and production capacity
Upstream (Steel Making)
Blast furnace
Midstream & Downstream
Heavy Section
Bloom
Steel bar
Cut and bend
550,000 Ton/year
service
End Users
Construction
Steel in general part
Low
carbon
Billet
500,000 Ton/year
OR
Electric arc furnace
Medium carbon
Steel in automotive part
Wire rod
500,000 Ton/year
High carbon
Slab
HRC
Structural steel
160,397 Ton/year
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STRICTLY PRIVATE & CONFIDENTIAL
Major Production process (Long Products)
Continuous Process
Energy Saving
Billet
1
Hot charge to
rolling mill
Rayong
2
Sell to wire rod mill at
Rayong
Technology to
produce
special billet
Reheating furnace
Billet stock
Reheating furnace
Steel Bar
(large size)
Rolling mill
Finishing unit
Laying head
wire rod
3
Sell to rolling mill at
Rama2
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STRICTLY PRIVATE & CONFIDENTIAL
Millcon Project Reference
Thailand’s Project
Private
International’s Project
Public
Sky Train
Dark Green Line
Light Green Line
Red Line
Purple Line
Blue Line
Central Plaza, Bang Yai
Ichthys EPC Cryogenic Tanks
Location: Australia
Plum Condominium
Mahachai Hospital PLC
The National Assemble
The Supreme Court of Thailand
Taling Chan Expressway
Millcon Engineering Limited
Location: Myanmar
8
Agenda
1. Business Overview
2. Financial Performance
3. Industry Outlook
4. Ongoing Project and Plan
Sale breakdown by product
Financial Highlight
Trading and
Other,
4,645 , 3%
THB Millions
Statement of Income (MB)
Total Revenues
Gross Profit
GPM
SG&A
Total Expenses
EBIT
EBIT Margin
Profit (loss) for the period
Depre. & Amor
EBITDA
EBITDA Margin
EPS
3M' Q1.2015
3M' Q1.2014
YoY%
2,944.52
213.07
7.7%
94.56
3,174.31 -7.2%
205.56 3.7%
6.5%
101.23 -6.6%
2,653.72
290.80
9.9%
130.07
53.62
344.42
11.7%
3,048.17
126.14
4.0%
(48.06)
47.71
173.85
5.5%
0.04
Billet,
32,818 ,
20%
Structural
Steel, 2,618 ,
1%
-12.9%
130.5%
Steel Bar
370.7%
Structural Steel
Billet
Trading and Other
12.4%
98.1%
(0.04) 200.0%
Sale volume
THB Millions
3,500
• Revenue from sell had reduce caused from steel prices reduction in
responds to the economy slow down
2,760
3,000
120,000
2,000
100,000
1,692
80,000
1,500
60,000
164,905
87,202
165,191
1,000
500
160,000
140,000
2,305
115,598
• The Company has net profit in the amount of 130 million baht,
increased by 379.79% from the same period of the previous year.
180,000
3,229
159,822
• The Company’s sale quantity for steel bar products has increased
by 63.12% compare to fourth quarter of year 2014 and the steel bar
product price also has increased.
Ton
3,143
2,500
• EBITDA from operation 214 million baht ,EBITDA margin 7.28%
Tons
Steel Bar,
125,110 ,
76%
Q1/14
Q2/14
Q3/14
Q4/14
Q1/15
-
40,000
20,000
-
Tons
Revenue
STRICTLY PRIVATE & CONFIDENTIAL
Group Balance Sheet
 Current Asset as at Q1-2015 slightly increased as a result of
increasing in account receivable due to expansion in customer’s base,
and quantity of selling increased
 Total liabilities increased by 798 million or 6.66% baht increased in
short-term loans by 308 million baht and increased in account payable
by 664 million baht because purchasing raw material for production
from customer’s order.
THB Millions
Asset
6,000.00
4,000.00
2,000.00
8,984.40
3,512.50
4,611.71
12,788.75
8,000.00
11,990.37
10,000.00
10,345.95
3,213.97
12,000.00
10,598.59
14,000.00
3,293.06
16,000.00
4,496.40
18,000.00
3,448.23
%
25.8%
46.3%
6.0%
9.9%
-0.4%
0.8%
5.5%
3.1%
129.2%
-16.8%
6.4%
27.7%
6.7%
0.0%
0.0%
0.0%
2.6%
2.6%
5,607.98
Y2014
680.78
1,465.68
2,262.56
8,645.58
7,614.30
7,841.19
16,486.77
9,884.46
514.05
1,133.40
11,835.76
154.61
11,990.37
1,501.67
175.00
3,372.82
4,467.00
4,496.40
2,408.80
Q1'2015
856.52
2,144.21
2,397.41
9,498.31
7,586.89
7,902.15
17,400.47
10,192.49
1,178.36
942.46
12,591.03
197.48
12,788.51
1,501.67
175.00
3,372.82
4,581.96
4,611.71
4,323.93
(Consolidated)
Statement of Financial (MB.)
Cash and cash equivalents
A/R Net
Inventories, net
Total Current Assets
PP&E Net
Total Non Current Asset
Total Assets
Short-term loans
Trade accounts payable
Advance from customer
Total Current Liabilities
Total Non-Current Liabilities
Total Liabilities
Paid-Up Capital
Convertibal Bonds
Premium (Discount) on Share capital
Equity attributable to owners of parent
Total shareholder's equity
-
Liabilities
Equities
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STRICTLY PRIVATE & CONFIDENTIAL
Agenda
1. Business Overview
2. Operation & Financial Performance
3. Industry Outlook
4. Ongoing Project and Plan
STEEL Industry
•
World steel forecasts that global apparent steel use will
increase by 0.5% to 1,544 Mt in 2015 following growth
of 0.6% in 2014. In 2016, it is forecast that world steel
demand will grow by 1.4% and will reach 1,565 Mt.
•
Steel demand in the developed economies will grow by
0.2% in 2015 and by 1.8% in 2016.
•
The developing economies (excluding China) Steel
demand is expected to grow by 4.0% in 2016 after
growing by 2.4% in 2015.
•
Apparent steel consumption in ASEAN reached some 67
million tonnes in 2014, an increase of around 6% y-o-y.
APPARENT STEEL USE KG. PER CAPITA 2014
266
Thailand
1,119
South Korea
837
Taiwan, China
Japan
532
China
510
Asia
261
European Union
288
331
United States
-
200
400
600
800
1,000
1,200
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STRICTLY PRIVATE & CONFIDENTIAL
Thailand Steel Consumption
6.88
2012
6.79
Steel Bar
5.47
2011
2012
2014
M4'2015
2009
2010
2011
2012
Production
Consumption
1.99
2014
4M 2015
1.11
1.23
Production
2013
2.73
2.45
2010
2.82
2.61
2009
2.85
2.72
1.99
2013
0.71
2011
0.11
0.81
2010
0.59
0.92
1.18
2009
17.34
3.51
3.76
7.02
6.94
0.84
1.21
17.73
16.91
3.40
3.65
7.48
14.65
3.24
3.44
6.95
14.01
0.76
1.00
10.76
1.87
Million Tons
2.07
Million Tons
Wire Rod
0.43
A PPA R EN T F I N I S H ED S T EEL PR O D U C T I O N A N D
C O N S U M P T I O N I N T H A I LA N D
Finished Steel Consumption in Thailand
Million Tons
20
18
16
14
12
10
8
6
4
2
0
11.27
11.77
11.17
4.76
5.64
5.96
6.17
2011
2012
9.39
9.88
4.14
4.62
2009
2010
Long Product
2.03
2013
Flat Product
2014
M4'2015
4M 2015
•
Thailand’s steel demand contracted by more than 1% in
2014. This was mainly due to the political problem in the
country which has a negative impact on the country’s
economic growth.
•
The local demand of Wire Rod in Thailand has grows almost
double within 2 years.
6.61
3.44
2013
2014
Consumption
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STRICTLY PRIVATE & CONFIDENTIAL
Agenda
1. Business Overview
2. Operation & Financial Performance
3. Industry Outlook
4. Ongoing Project and plan
1) Wire Rod Project
General Information
Major Suppliers & Customers
Raw Material
MILLCON Special steel Co.,Ltd
 Billet
Location
IRPC industrial estate ,Rayong Provice
Productivity
Capacity 500,000 Ton/year
Raw Material
Billet size Width: 130*130 - 150*150 mm.
Finish Goods
Wire rod for construction and automotive grade
sizes are mainly between 5.5 to 20 dia meters
Capital Structure
Paid up capital
Finish Products
 Welding Y11
 Welding CO2
 Tyre Cord
 PC
 CH (Cold Heading)
 CD Bar
 Spring
 Tyre Bead Wire
 Low Carbon Wire
1,415 MB
Rational
 Expanding business to new market of downstream products
 Entering into new market sector such as auto and mega projects
 Good synergy for Millcon group having Millcon Burapa to be
supply of special grade billet should enhance margin for the group
significantly.
 Logistically efficient being close to shipping port
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STRICTLY PRIVATE & CONFIDENTIAL
Downstream application from Wired Rod
“Wire rods” are steel products having circular cross section and normally in a form of coil. The production of wire rods requires dedicated
hot rolling equipment known as wire rod mill having coiler at the end of the production line. Special quality wire rods are used in varieties of
applications and industries.
• Wire rod’s sizes are mainly
between 5.5 to 20 dia meters
Commercial
(Low carbon)
• Wire rod’s grades
Industrial wires
Wire Mesh
Cycle Spokes
Electrode Wires
1) Low carbon
2) Medium Carbon
PC Wire
(High carbon)
3) High carbon
PCW / PCS
Hard drawn
wire
Wire Rod
(Medium and
high carbon)
Spring Sofa
Coil Springs
CHQ
(Medium and
high carbon)
Tire Bead
Wire
(High Carbon)
Fasteners
Bead Wire
Automotive
fasteners
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STRICTLY PRIVATE & CONFIDENTIAL
2) Investment in Myanmar
2.1) MILLCON Engineering
General Information
Rational
MILLCON ENGINEERING
Location
MJTD Free Zone, Yangon Myanmar
Area
22,950 sqm
Productivity
Capacity 64,000 Ton/year
Raw Material
Hot Roll Coil
Finish Goods
Square Steel Pipe 1” – 3”
Rectangle Steel Pipe 2”x1” – 4”x2”
Round Steel Pipe1” – 3” OD
Permit
Special Economic Zone(SEZ) Income
Tax 100% exemption 7 year 50% exemption 5
years after
 High Demand of structural steel due to Myanmar needs to
invest in building roads and basic infrastructure to support
its growing economy.
 Myanmar's population of about 70 million consumes 19
kilograms of steel per person per year, or a total of only 3-4
million tonnes a year, while Thailand's 65 million population
consumes 17.7 million tonnes.
 To support the firm's continuing growth and prosperity both
locally and in Asean.
 To invest in free Zone area and close to shipping port
Capital Structure
Shareholder
MILL 45%
GEL 45%
Local Partner 10%
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STRICTLY PRIVATE & CONFIDENTIAL
2) Investment in Myanmar
2.2) MILLCON Thiha
Project Reference
General Information
MILLCON Thiha
Address
No. 68/C Sayar San Road, Bahan Township,
Yangon, Myanmar
Shareholder
51 % MILL
49 % Thiha Trading
Nature of Business
Steel and construction material trading
Authorized Agent
Bidding Government Work
Project Reference
Agents for Steel Product
-
Rebar
Steel Plate
Galvanized Steel coil
Concrete
7,500 Tons
1,200 Tons
1,000 Tons
60,000 USD
Agent for Postension Projects
-
Golden Valley
Grand Pho Sien
Living Square
Prince Condo
6,000 sqm
12,000 sqm
38,000 sqm
40,000 sqm
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STRICTLY PRIVATE & CONFIDENTIAL
3) Non Core Business
Investment in Solar Power Plant Project
General Information
Rational
Location
land 700 rai
 Indirect cost saving
Capacity
27 MW (DC)
 Stable income and cash flow
Adder
6.50 THB for 10 year
BOI
no corporate tax for 8 years and 50%corporate
tax for 5 years extension
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STRICTLY PRIVATE & CONFIDENTIAL
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