BKD Oppday 58Q4 09/03/2016

1. BKD
Bangkok Dec-Con Public Company Limited
Opportunity Day 4Q/2015
March 9, 2016
1

2. Agenda
Company
Overview
Industry
Overview
Financial
Overview
2

3. Our Business
❖ Complete interior contractor services
❖ For hotels, hospitals, condominiums, offices, shopping malls, universities, and houses
❖ Thailand and abroad
❖ Public enterprises and private corporations
❖ One-stop service
1. Finding the best fit designs (concerning quality, but stays in budget)
2. Setting up a master schedule for the production processes and the installation
phases of all interior design components
3. Control and take responsibility in all aspects to achieve the requirements of our
customers regarding quality, cost, and delivery
3

4. Company History
Current registered capital of more than 500 Million Baht
Listed in the MAI market with 350 Million Baht registered capital
Stop exporting and focus only on interior construction
Manufacture and export rubber wood furniture
Start interior construction
Manufacture and supply office furniture to the government1985
1992
1993
2000
2013
Now
4

5. Investment Highlights
Price (B) 3.16
P/E 16.69
Listed Share (M) 839.99
Market Cap (MB) 2,654.38
Dividend Policy Not less than 40%
First-day trade September 25, 2013
(as of March 7, 2016)
5

6. Strength
1. The only listed interior construction company in Thailand
2. Net cash company
3. Continuous growth
4. The ability to handle big projects (economy of scale)
5. Good working relationships with both private and public sectors, as well as
the suppliers
6

7. Current Projects
7
Chip Mong Land Mercure - Airport Link
Marriott Queen’s Park Bangkok Metropolitan Administration

8. Completed Projects
8
Plaza Athenee - Guestroom Plaza Athenee - Buffet Area
Plaza Athenee - Event Area Novotel Suvarnabhumi

9. 9
Completed Projects
Sofitel Bangkok Sukhumvit
Centara Watergate Amari Huahin
Pullman King Power

10. 10
Completed Projects
Fitness Center - PTT
The Government Lottery Office King Power Lounge - Suvarnabhumi
Bank for Agriculture and
Agricultural Co-Operatives

11. Agenda
Company
Overview
Industry
Overview
Financial
Overview
11

12. Government Projects
❖ BTS & MRT
❖ Green, Blue, Purple, and Red lines that are already under construction
❖ Private sector’s real estate development along the rail system
❖ Expansion of the Airport
❖ Suvarnabhumi
❖ Phuket
12

13. AEC
❖ Hotels
❖ New and renovation
❖ International chains and investors see opportunities in newly opened
markets in neighbor countries such as Cambodia, Laos, Vietnam, and
Myanmar
❖ Hospitals
❖ Medical tourism
❖ AEC medical hub
13

14. Board of Director
Our newest Chairman of the Board, Dr. Surin Pitsuwan
12th Secretary General of ASEAN (2008 - 2012)
14

15. Agenda
Company
Overview
Industry
Overview
Financial
Overview
15

16. 2015 Financial Highlights
Current Ratio: 3.74
D/E Ratio: 0.36
ROA: 21.61%
ROE: 22.73%
Backlog: 1,750 MB
GP: 24% (target 20%)
NP: 14% (target 10%)
Revenue: 1,154 MB
Gross Profit: 279 MB
Net Profit: 159 MB
16

17. Revenue and Profit
0
0.15
0.3
Revenue(MillionBaht)
0
300
600
900
1200
2013 2014 2015
Q1 Q2 Q3 Q4 Year End % GP % NP
14%
10%
2%
24%
22%
12%
1,154
907
601
263
185182
305290
127
391
265
155
195
168
135
2%
10%
14%
12%
22%
24%
17

18. Revenue and Profit Trends
MillionBaht
0
300
600
900
1200
Net Profit Gross Margin Revenue
1154
279
159
907
197
94
601
74
15
2013 2014 2015
18
42%
69%
27%

19. Balance Sheet
0
2.5
5
Amount(MillionBaht)
0
275
550
825
1100
2013 2014 2015
Assets Liabilities Equity Current Ratio D/E Ratio
0.360.30.24
3.743.65
4.15
775
624
569
283
188
138
1,058
812
706
0.24 0.3 0.36
4.15
3.65 3.74
19

20. Dividend vs Net Profit
10%
100%
1,000%
Amount(MillionBaht)
0
40
80
120
160
2013 2014 2015
Net Profit Dividend % Dividend Policy % Dividend Payout
69%
83%
213%
40%40%40%
109
78
32
159
94
15
213%
83%
69%
40% 40% 40%
20

21. ROA
21
ROA
0
0.055
0.11
0.165
0.22
2013 2014 2015
3.25%
15.73%
21.61%
BKD

22. ROE
22
ROE
0
0.06
0.12
0.18
0.24
2013 2014 2015
2.98%
15.82%
22.73%
BKD

23. Project Summary
Projects with signed contract
(16 Projects)
2,444 Million Baht
Project(s) waiting for contract
(2 Projects)
266 Million Baht
Total (17 Projects) 2,710 Million Baht
23

24. University
4.5%
Other
15.4%
Hospital
2.4%
Office
65.8%
Hotel
11.9%
Backlog Structure
24
Private
27%
Public
73%
❖ current work on hand: 1,750 Million Baht

25. Revenue Estimation from Backlog
25
Q1/2016 14%
Q2/2016 27%
Q3/2016 21%
Q4/2016 18%
2016 80% (~1,400MB)
1H/2017 20% (~350MB)

26. Revenue Forecast
MillionBaht
00
500
1,000
1,500
2,000
2013 2014 2015 2016 2017 2018
1980
1650
1380
1154
907
601
Revenue Forecast
27%
1980
1650
1380
20%
20%
20%
51%
26

27. Summary
27
Promising Industry
Government projects
AEC opportunity
Few competitors
Excellent Team
Committed management team
Experienced craftsman
Knowledgable operator
Strong Financial Status
Low D/E ratio
Cash company
Continuous growth
Trustworthy Interior Contractor
30 years of experience
Great track records
Number one in the industry

28. Q & A
28