ทุกวนัตอ้งกา้วหนา้กวา่เม่ือวาน Better than yesterday ,everyday

M.C.S. Steel Public Company Limited

Opportunity Day on September 6,2017

1. •MCS Profile

2. •Half year Operation results 2017

3. •Progress of Stock Repurchase

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1. MCS Profile

3

Company Profile

Location : 70 Moo 2 Changyai Bangsai Ayutthaya

Site Areas : 250 rai ( 400,000 sq.m )

Established : 9 June 1992

4

Company Profile

Stock Material

Stock yard

Stock yard

Fac 1-9

Training Center

Fac 10-12

Dormitory

5

Fac 13

24,000 Tons : 195.375 MB

Fac 8

BOI Profit

New Factory ( BOI Profit)

Employees : 628 Persons (August 31,17)

Production : 430 (Myanmar Staff : 58) Office : 198 -Japanese Staff : 6 -Chinese Staff : 2

6

BOI Profit

BOI no.1 (Fac 11) Budget : 176.658 MB ( 2011-2015 )

7

BOI no.3 ( Robot Line and Fac 13) Budget : 195.375 MB (Since 2017)

BOI no.2 (Fac 12) Budget : 160.863MB (2015-2016)

IT System

Conference System

Real Time Status Update

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Real Time Status Update

9

Real Time Status Update

10

11

Training Center

12

Laboratory

MCS Group ( 31 August 2017 )

MCS THAI

Subsidiaries

Tanaka

99.92%

MCS Nasu

66.00%

MCS-Xiamen 74.00%

Capacity 70,000 Tons Excludes Robot line 18,000 Tons

Capacity 18,000 Tons Capacity 18,000 Tons

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Japanese Certification Standards

14

Regulation Type J R M H S

Storeys Not more than 3 storeys Not more than 5 storeys Unrestricted Unrestricted Unrestricted

Steel plate , thicknees Not more than 16 mm. Not more than 25 mm. Not more than 40 mm. Not more than 60 mm. Unrestricted

M.C.S.-Nasu (Japan) MCS-Steel ( Thailand)

M.C.S.-Xiamen (China)

M.C.S.-Steel ( Thailand)

Certified

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Capacity of Japanese Steel Fabricators

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KAWADA KOGYO

MCS (Thailand)

KAWAGISHI KOGYO

KOMAI TEKKO

YAMANE TEKKO

KENSETSU KAKUTOU KAGAYA

FUJIKI TEKKO

WATAHAN TECNOS

OOKAWA TRANSTEEL

Capacity (Ton) 80,000 70,000 70,000 68,000 65,000 60,000 45,000 22,000 15,000 12,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

M.C.S. NASU H-Grade Capacity 18,000 Tons / Year Location : Chiba , Japan MCS holds 66%

1. To become the service center 2. To support the exportation of our

products in Japan

Stock yard

Service Center in Japan

Fabrication facility in Japan

17

M.C.S. Xiamen H-Grade Capacity 18,000 Tons / Year Location : Xiamen China MCS holds 74%

To be the sub contactor with annual output 18,000 Tons/ Year

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Major Customers (%) in 2016

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61%

7%

28%

4%

KAJIMA

NIPPON STEEL

OBAYASHI

OTHER

Process

Cut

Fab

Weld

Finish Goods

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Product

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Product

Taiwan Bridge

Osaki Nishi SMBC

Haneda

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New Robot Welding Line

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Investment of approximately 200 Million Baht Under BOI Tax-Free Profit

Increase of capacity by 1,200-1,500 Ton / Month, the new capacity had commenced since June 2017. Product : Column / Pipe structure

Progress of Robot Welding Line

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First Project for Hiroshima Futaba (HFT) , had started since middle of June 2017 .

Project

Uchisaiwaicho, Tokyo Japan (2016) Shinhibiya, Tokyo Japan (2016)

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Project “

Ginza-6 , Tokyo Japan (2017) Otemachi 2 ,Tokyo Japan (2016)

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Project “

TRC , Tokyo Japan (2016) Akasaka,Tokyo Japan (2016)

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MCS Key Strengths & Opportunities

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Strengths 1. Steel fabrications meet highest Japanese standards, Limited Competitors.

2. Cost competitive due to lower labor costs than Japan-based producers.

3. Highly skilled and certified employees (AW: 79 JIS: 299).

4. Diversified production bases in 3 countries; Thailand, China, and Japan.

5. Solid financial position; net cash company and strong free cash flows.

6. Steel imports from Japan offer a significant hedge against volatile Yen movements.

7. MCS receives orders 6 months to 1 year in advance, allowing for better

management of inventory and product capacity

MCS Key Strengths & Opportunities

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Opportunities 1. New investment cycle; 2020 Tokyo Olympics & booming construction

sector in Japan.

2. Very few Japanese fabricators at our capacity level.

3. Trend is that the “super general contractors” are using fewer sub-contractors for each project.

4. Robot machines bring up additional capacity to support future orders.

5. Newly acquired ability to produce Columns & Pipes.

6. Labor conditions in Japan offers MCS more opportunities to supply the

market.

2. Half Year Operation Results 2017

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31

Half year Operation results 2017

Financial Highlights (Consolidated)

2016 2016(1H) 2017(1H)

Total Revenues 5,735.28 2,521.67 615.14

Total Expenses 4,360.52 1,985.22 575.67

Gross Profit 2,204.34 942.79 258.16

Profit in owners of the company 1,229.00 467.37 22.22

5,735.28

2,521.67

615.14

4,360.52

1,985.22

575.67

2,204.34

942.79

258.16

1,229.00

467.37

22.22 -

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

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Half year Operation results 2017

Financial Highlights (Consolidated)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1H)

Profit ( Loss ) 282.0 343.0 329.0 354.0 576.0 811.0 476.3 165.0 393.0 82.03 618.2 1,229 22.22

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Million Baht

Half year Operation results 2017

Financial Highlights (Consolidated)

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Million Baht

Total Assets Cash and Cash

equivalents Trade and other

receivables Inventories

Property, plant and equipment

2016 3,826.41 1,067.73 709.89 701.16 813.93

2017(1H) 3,952.63 461.85 568.31 1,367.05 1,045.40

3,826.41

1,067.73

709.89 701.16

813.93

3,952.63

461.85 568.31

1,367.05

1,045.40

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

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Half year Operation results 2017

Financial Highlights (Consolidated) Million Baht

Current liabilities Non Current

liabilities Total Liabilities

Total shareholder 's equity

2016 881.53 103.78 985.30 2,841.11

2017(1H) 1,299.78 102.91 1,402.68 2,549.95

881.53

103.78

985.30

2,841.11

1,299.78

102.91

1,402.68

2,549.95

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

Export Work

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Export work (Ton) 38,010 49,341 47,330 45,958 44,988 43,283 49,611 35,354 37,814 15,049 48,865 65,746

-

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

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Half year Operation results 2017

Financial Highlights (Consolidated)

5.36

1.88

21.98

1.34

10.71

0.92

11.85

1.31

9.60

2.03

7.17

2.64

8.79

2.74

-

5.00

10.00

15.00

20.00

25.00

P/E (เทา่) P/BV (เทา่)

2011 2012 2013 2014 2015 2016 2017 (6M)

Remark : For 2017 use information on 18/8/2017

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Half year Operation results 2017

Financial Highlights (Consolidated)

2.08 2.35

2.68

3.08

3.84 4.49

4.68

4.94 4.94

4.14

4.96

6.01

5.46

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (6M)

Book Value Per Share

Dividend Policy

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A Policy dividend rate of at least 50% of net profit

0.30 0.35 0.33

0.30

0.60

0.80

0.50

0.18 0.20 0.20

0.70

1.36

0.20

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1H)

( Baht / Share )

Dividend

3. Progress of Stock Repurchase

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No. 1

Approval Date 22/9/2015

Total shares Purchased 27,000,000.00

% of Paid Up Capital 5.40

Total investment 288,192,160.00

Average Price Per Share 10.67

No. 2

Approval Date 12/5/2017

End of Project 30/11/2017

Updated : 31/8/2017

Total shares Purchased 19,422,500.00

% of Paid Up Capital 3.88

Total investment 296,607,150.00

Price per share 15.27

Total shares Purchased (1) + (2) 46,422,500.00

% of Paid Up Capital 9.28

Q & A

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