Thoresen Thai Agencies : IR E-Newsletter 4Q/2023

TTA IR NEWSLETTER

FY2023 | February 2024

In this issue

01 - CEO Talk

02 - FY2023 Performance

03 - Corporate News

04 - Upcoming Events

CEO TALK

"Thoresen Shipping remains profitable. Another aspect of pride is its ability to earn the trust and confidence of customers worldwide, despite being a Thai company with predominantly Thai personnel. In 2023, Thoresen Shipping secured a contract to supply coated steel pipeline transportation services for crude oil projects in East Africa spanning three years. Additionally, the company serves clients in New Zealand, facilitating log transportation, and meets the increased demand for cement transportation services in the North Atlantic. Moreover, its Chartering office in London, UK, has demonstrated a positive contribution to the bottom line.

Meanwhile, Mermaid has achieved unprecedented levels of performance. In 2023, Mermaid experienced income growth across all service functions, primarily attributed to expanding both the income and client bases into other regions. In addition, Mermaid has secured multiple offshore contracts spanning various regions including Thailand, the Middle East, South Africa, sub-Saharan Africa, and the United Kingdom. These contracts, totaling nearly USD 500 million. Moreover, Mermaid is actively expanding its comprehensive subsea and offshore services in Vietnam and throughout Southeast Asia, with the establishment of Tan Cang Mermaid Subsea Services Co., Ltd. (TCMS). Recently, TCMS successfully secured a short- term contract for a single project from a client.

PM Thoresen Asia Holdings Public Company Limited (PMTA) faces the challenge of declining fertilizer prices. However, PMTA tackled this challenge by maintaining superior product quality standards compared to competitors, implementing effective inventory management practices, establishing clear policies for pricing and discounts, and leveraging a network of distributors in Vietnam alongside efficient online marketing

…

strategies. These combined efforts enable PMTA to sustain a consistent profit margin.

In the Food & Beverage Segment, Pizza Hut has significantly increased its advertising efforts through various mass media channels in 2023. Consequently, the Pizza Hut brand has regained consumer attention and gained widespread recognition among consumers, beyond just families to include office workers and students. Furthermore, Pizza Hut introduced a groundbreaking concept store named Pizza & Bar, the first of its kind in Thailand and Asia, and the second globally, situated at Jungceylon, Patong, Phuket. Geared towards catering specifically to foreign customers and tourists, this innovative venture gained an exceptionally positive response.

In 2023, Taco Bell achieved profitability for the first time, an accomplishment attributed to refining its branch expansion strategy in residential areas on the outskirts of Bangkok, including locations such as Bangna, Ratchaphruek, and Rama II. This strategy prioritized building brand awareness, trialing services, and venturing into gas stations, allowing direct access to target customers. Expanding into tourist cities like Pattaya and Phuket also proved highly successful, gaining positive feedback from patrons."

Mr. Chalermchai Mahagitsiri

President & Chief Executive Officer

THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED

Please Contact IR for more information:

[phone] Ext. 315, 207 and 127

[e-mail]

http://www.thoresen.com

26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand

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TTA Group Performance FY2023

Performance Highlights:

Shipping		Offshore Service
7,370 MB or 31%
	Revenues(1)	9,629 MB or 40%
Investment	23,976 MB
1,125 MB or 5%
Food & Beverage		Agrochemical
2,074 MB or 8%		3,779 MB or 16%

In 2023, TTA reported revenues of Baht 23,976 million, which decreased 18%YoY mainly from Shipping and Agrochemical segments in line with the declined market freight rate from the exceptionally high rate in 2022 and declining fertilizer selling price. Cost of sales and providing services(2) decreased by 12%YoY to Baht 18,136 million in line with decreased revenues mainly from Shipping and Agrochemical segments. As a result, gross profits decreased by 33%YoY to Baht 5,840 million primarily from a lower Shipping TCE rate earlier mentioned. Meanwhile, SG&A increased by 8%YoY primarily due to increasing employee expenses and consulting project fees from Offshore Service. Consequently, EBITDA decreased by 44%YoY to Baht 3,696 million. Finance costs increased 37%YoY to Baht 700 million due to debentures issuance and the interest rate hike of loans from financial institutions. Meanwhile, there were realized/unrealized losses from foreign exchange of Baht 322 million due to the appreciation of Thai Baht against the US Dollar. However, TTA recognized net non-recurring gains of Baht 486 million mainly from a reversal of the provision of digital assets, gains on sales of investment in a joint venture, and gains on sales of digital assets. In summary, TTA reported net profits of Baht 1,217 million, decreasing 63%YoY in 2023.

Shipping Outlook:

(4)

Unit: Million Baht

Revenues (1)

		-18%YoY
	29,321	23,976
22,128
2021	2022	2023
Gross Profits/(Losses) (2)

		-33%YoY
7,007	8,768	5,840
2021	2022	2023

EBITDA (3)

	6,643	-44%YoY
5,455	3,696
2021	2022	2023

Net Profits/(Losses) to TTA

According to Clarksons Research, the dry bulk trade growth is forecasted at 1.0% in tons or 1.6% in ton- miles, while fleet growth is estimated at 2.3% in DWT. The global coal demand is still uncertain, and expanding renewable energy capacity is expected to put pressure on the demand for coal, therefore, coal is estimated to decline (-1.0%). Iron ore is projected to marginally decline (-0.5%) mainly from China's reduced imports due to the resisting pressure from the property sector and government policy to reduce the use of iron ore in steel production. Meanwhile, grain trade is projected to rise (+1.9%) driven by the growing demand for the major food-importing regions and the potential for a recovery in US exports, but challenges remain for some disruption to European grain exports to Asia amid the ongoing situation in the Red Sea. Minor bulk trade is projected to grow (+3.0%) supported by potential macroeconomic improvements. The bulk carrier fleet growth outlook appears to moderate with the steady order book of the new buildings and impacts from the new environmental regulations.

3,859		-63%YoY
3,269
	1,217
2021	2022	2023

Note: (1) Revenues from sales and services

1. Including amortization of vessel drydocking but excluding depreciation and other amortization
2. Earnings before interest, tax, depreciation, and amortization (excluding extraordinary items)
3. TC Avg BSI is based on BSI-52 index up through 4Q/18 and BSI-58 index from 1Q/19 onwards, to be comparable with the fleet size of Shipping segment.

Source: Clarksons Research, January 2024

THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED

Please Contact IR for more information:

[phone] Ext. 315, 207 and 127

[e-mail]

http://www.thoresen.com

26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand

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CORPORATE

NEWS

TTA successfully achieves bond offering and sales targets demonstrating company strength. The debentures are available in two sets simultaneously, with a combined value of up to 3,500 million baht. The first tranche of TTA's bonds carries a fixed interest rate of 4.60% over a 2-yearterm, while the second tranche offers a fixed interest rate of 5.20% over a term of 3 years and 6 months. Both tranches hold a bond credit rating of "BBB+" with a "STABLE" credit rating outlook, as evaluated by TRIS Rating Company Limited. The proceeds from this bond issuance will significantly support TTA's strategic plans for sustainable business growth.

TTA Group, a member of the Business Organization for Sustainable Development (TBCSD), has recently embarked on the "Thai People without E-Waste" project, aimed at effectively managing electronic waste (E-Waste). The initiative involves awareness campaigns, media relations, and setting up disposal points. All employees are encouraged to participate by bringing E-Waste from their homes and the office to be disposed of in provided collection boxes. The collected E-Waste undergoes proper recycling processes, aligning with our commitment to achieve Zero E-Waste to landfill.

Pizza Hut introduces "Spaghetti Hut", featuring a fresh lineup of spaghetti recipes crafted by Chef Aof, renowned as Iron Chef Thailand. The menu boasts four enticing options: Spaghetti Carbonara with Crispy Bacon, Drunken Seafood Spaghetti, Pork Spaghetti Bolognese, and Veggie Italian Spaghetti. Available for order through Pizza Hut 1150, the website www.pizzahut.co.th, and the Pizza Hut Application-essential for all pizza enthusiasts. Enjoy easy ordering, fast, and piping-hot delivery nationwide. Download the app today on Google Play and the App Store, starting January 16, 2024.

THORESEN THAI AGENCIES PUBLIC COMPANY LIMITED

Please Contact IR for more information:

[phone] Ext. 315, 207 and 127

[e-mail]

http://www.thoresen.com

26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand

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TTA AT A GLANCE

Business Portfolio

About TTA

Thoresen Thai Agencies Public Company Limited, or TTA, is a strategic investment holding company that is listed on the Stock Exchange of Thailand (SET), with an investment policy to achieve growth through a balanced portfolio that is diversified both locally and internationally. Included in its current business portfolio are Shipping, Offshore Service, Agrochemical, Food & Beverage, and Investment segments.

Symbol	:	TTA:TB |	TTA:BK
Market	:	SET
Industry/ Sector	:	Services/ Transportation & Logistics
First Trade Date	:	25 Sep 1995
CG Score	:	Excellent (5 stars)
Thai CAC	:	Certified
Share Outstanding	:	1,822,464,564 Shares
		(Par at Baht 1.00 per share)
Foreign Limit	:	49%
Dividend Policy	: At least 25% of the consolidated net
		profits	after	taxes but excluding
		unrealized foreign exchange gains or
		losses, subject to the Company's
		investment plans and other relevant
		factors (with additional conditions)

TTA

24	•	Dry Bulk Shipping	Shipping
Vessels			Offshore
	•	Subsea Services
Performing	•	Cable Laying	Service
6	•	Decommissioning
Vessels
HIGH	•	Pesticides	FoodAgrochemical
185	•	Fertilizer
Quality	•	Factory Area
Fertilizer		Management
		Service
Outlets
25	•	Pizza Hut	&
	•	Taco Bell	Beverage
Outlets
	•	Water Management	Investment
	•	Others
	•	Logistics
	•	Solar Rooftop
		As of December 31, 2023

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Disclaimer

This IR newsletter ("Newsletter") is not a prospectus and is not intended to and does not constitute offer or solicitation of any offer in respect of securities. It does not constitute any recommendation or investment advice, is not intended to form the basis of an investment decision and should not be relied upon for such purpose. This Newsletter has not been approved by any regulatory authority. Neither TTA nor their respective advisors accept any liability whatsoever arising in connection with the distribution of this Newsletter to recipients hereof. This Newsletter is being supplied to you solely for your information and may not be reproduced or modified in whole or in part, for any purpose.

March

S un	Mo n	Tue	Wed	Th u	Fri	S a t
25	26	27	28	29	1	2
3	4	5	6	7	8	9
10	11	12	13	14	15	16
17	18	19	20	21	22	23
24	25	26	27	28	29	30
31	1	2	3	4	5	6

29 FY2023 Earning Results

5 FY2023 Analyst Meeting

7 FY2023 SET's Opportunity Day

20 SET Digital Roadshow FY2023

THORESEN THAI AGENCIES	Please Contact IR for more information:
[phone] Ext. 315, 207 and 127	[e-mail]	http://www.thoresen.com
PUBLIC COMPANY LIMITED	26/26-27 Orakarn Building, 8th Floor, Soi Chidlom, Ploenchit Road, Kwaeng Lumpinee, Khet Pathumwan, Bangkok 10330 Thailand

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