db TISCO Thailand Commodity Corporate

DAY

March 17th , 2017

@TISCO Tower, Bangkok, Thailand

Executive Summary

NAME Padaeng Industry Public Company Limited (“PDI”)

BUSINESS TYPE Energy, Materials and Eco

INDUSTRY GROUP Resources

REGISTERED CAPITAL 2,260,000,000 THB

LISTED DATE 21st July 1987

AUDITOR Price Waterhouse and Coopers (“PwC”)

SHARE PRICE (1yr) Low: 11.30 THB High: 24.7 THB

NUMBER OF SHARES 226,000,000

MARKET CAPITALIZATION 4.5 Billion THB (@20.10THB/ share)

2

Mr. Suphachai Veerabornpong:

2.1 %

DBS Bank Ltd:

2.7 %

Mr. Kiat Srichomkhan:

1.2 %

Country Group Holding:

25.0 %

Ministry of Finance:

13.8 %

Bangkok Bank:

3.2 %

Mrs. Nunta Rungnoppakunsri:

0.9 %

Mr. Nattapong Panjaworayan:

0.9 %

Thai NVDR:

5.7%

Shareholding Structure As of March 14th, 2017

Others: 43.5%

3

Mr. Nurak Mahatana -arnont:

0.9 %

Company History

1981 • Establish PDI • Produce and market special high-grade zinc ingots and alloys

2014 • Reorganize into 3 sustainable

growth businesses; • PDI Energy • PDI Materials • PDI Eco

1987 • Listed on SET • Registered capital of Baht 2,260

million

2016 • Close Mae Sod Mine due to

depletion and start to cease conventional zinc business by

the end of 2017

• 4 sites: Mae Sod Mine and Refinery in Tak, Roaster in Rayong and Head Office in Bangkok

• Transform into sustainable green business and realize the first investment in solar energy

4

Driven by innovation and balanced concerns, we maximize added value for our clients,

with respect to our people, our ecosystems and the environment. We support the communities in which we operate

and give the best possible return to our shareholders.

To be a leader in developing, driving and growing sustainable businesses in Energy, Materials and Eco in Southeast Asia

Vision

5

New Corporate Structure

6

Energy Materials Eco Provide energy from renewable sources

Provide added value materials from recycled

metals

Provide waste management solutions for complex industrial

waste

• As of March 15th, 2017 ; • Cash settlement zinc price = 2,752 USD/Ton • Zinc stocks in LME warehouse = 379,275 Tons

Zinc Facts

Ending stocks

Avg. cash settlement

7

-

500

1,000

1,500

2,000

2,500

3,000

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct

-10

Nov-1

0

Dec-

10

Jan-1

1

Feb-1

1

Mar-

11

Apr-

11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct

-11

Nov-1

1

Dec-

11

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct

-12

Nov-1

2

Dec-

12

Jan-1

3

Feb-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct

-13

Nov-1

3

Dec-

13

Jan-1

4

Feb-1

4

Mar-

14

Apr-

14

May-1

4

Jun-1

4

Jul-14

Aug-1

4

Sep-1

4

Oct

-14

Nov-1

4

Dec-

14

Jan-1

5

Feb-1

5

Mar-

15

Apr-

15

May-1

5

Jun-1

5

Jul-15

Aug-1

5

Sep-1

5

Oct

-15

Nov-1

5

Dec-

15

Jan-1

6

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun-1

6

Jul-16

Aug-1

6

Sep-1

6

Oct

-16

Nov-1

6

Dec-

16

Jan-1

7

Feb-1

7

Mar-

17

USD

/TH

B

LME

Sto

cks

(T)

Highlights 2016

• Posted a consolidated 478 MB net profit, +216% compared to 151 MB in 2015

• Main favorable contributions from:

o Improved sales revenue +6% mainly from increased LME price and local sales premium

o THB depreciation against USD

o Improved operational efficiency and reduced OPEX by 11%

• Marked substantial success with the investment in the first Solar farm in Japan and the

acquisition of Mae Ramat Solar Farm in Tak, Thailand

• Decided to leave Mae Sod Clean Energy, not profitable business

• Proposed gross annual dividend of 1.00THB/per Share

8

2016 has been a very successful year, operational results exceeded 2015 :

7,602

5,466 5,593

4,868 5,149

-276 -307

836 816

1,198

-569 -522

461

151

478

-800

-600

-400

-200

0

200

400

600

800

1000

1200

1400

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Million THB EBITDA

Net Profit

Million THB Revenue

2012 2013 2014 2015 2016

Revenue, EBITDA, Net Profit

Financial Highlights

9

OPEX

10

• 2016 OPEX is 11% lower than previous year mainly from reduced energy costs and savings of operating expenses.

3,962

3,118 3,129

3,447

3,066

0.00

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

2012 2013 2014 2015 2016

MB

Financial Position

Assets (MB) Liabilities (MB)

Current Assets 2016 % 2015 % Current Liabilities 2016 % 2015 %

Cash & Short term Deposits

1,412 25 1,201 23 Financial short term debt 205 4 233 5

AR 315 6 284 6 AP 242 4 95 2

Inventory 1,854 33 2,430 47 Other 823 15 323 6

Other 469 8 50 1

TOTAL 4,050 72 3,935 77 TOTAL 1,270 23 651 13

Non Current Assets 2016 % 2015 % Non Current Liabilities 2016 % 2015 %

Long term investment 555 10 67 1 Provisions 306 5 675 13

Loan MCE 53 1 105 2 Other 0 0 198 4

PPE 645 12 952 19 TOTAL 306 5 873 17

Other 290 5 46 1 Equity 2016 % 2015 %

TOTAL 1,543 28 1,170 23 Shareholder equity 4,017 72 3,581 70

TOTAL 5,593 100 5,105 100 TOTAL 5,593 100 5,105 100

11

Current Ratio & Debt to Equity

12

Debt to Equity Current Ratio

2.42 2.39

3.45

6.04

3.19

0.58

0.78

0.67

0.43 0.39

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2012 2013 2014 2015 2016

• Current Ratio in 2016 decreased according to payment schedule of closure cost • 2016 D/E ratio reached its lowest level in 5 years

Dividend to shareholders • For 2016, PDI’s Board of Directors proposes a dividend of 1.00 THB/share

13

0.00

0.30

0.40

0.20

1.00

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2012 2013 2014 2015 2016

THB

Share Price • At the closing of 2016, share price reached 20.10 THB. • Actual share price reaches 18.80 THB ( As of March 15th ,2017), against a book value of 17.77

THB at 2016 closing.

14

12.80

9.35

16.20

12.40

20.10

0.00

5.00

10.00

15.00

20.00

25.00

2012 2013 2014 2015 2016

THB

2017 Results are likely to exceed 2016:

2017 Outlook

• Production & sales from inventory (approx. 30,000 Tons)

• Trading of metals (approx. 30,000 Tons)

• Transfer of assets to PDI-CRT

• Income from new business mainly solar

15

• Projects in Japan 35 MW

• Acquisition of a 6 MW solar farm in Mae Ramat is finalized

• Strategic partnering for government supported co-operative projects up to 20 MW

• Investment in solar farm on PDI residue ponds up to 80 MW

• Total investment so far 2,300 MB (600 MB equity)

2017 PDI’s energy projects will mainly focus on solar:

Energy

16

150 MW Solar

Japan Solar

Nogata

Kazano

Ryohashiya

Nogata

Nanao

Kazano

Nanao Ryohashiya

Capacity (MW) Installed

2.27

PPA FIT scheme at

32JPY/kWh , 20 years

COD Operational

10% above target

Capacity (MW) Installed 10.73

PPA FIT scheme at

36JPY/kWh , 20 years

COD Q2 2017

Capacity (MW) Installed 2.20

PPA FIT scheme at

32JPY/kWh , 20 years

COD Q3 2017

Capacity (MW) Installed 19.50

PPA FIT scheme at

36JPY/kWh , 20 years

COD Q4 2018

17

• Acquired Mae Ramat Solar Farm since December 26th, 2016

• Located at Tambol Kanaecheu, Amphur Mae Ramat, Tak province

• Installed capacity of 6.3 MW for a total investment value of 477 MB

• PPA: 25 years, selling electricity to the PEA since December 26th , 2013 @ 6.5 Baht adder

• Additional plant improvement ongoing to increase production and sales

Tak Solar

18

Mae Ramat Solar Farm

• Exclusive rights to highly innovative ultra high temperature technology, non existing in Asia

• Strategic partner with ScanArc Plasma Technologies AB from Sweden.

• Strong support from Department of Industrial Works (“DIW”) and Industrial Estate Authority of

Thailand (‘IEAT”)

• Basic Engineering ongoing with the final report expected in May, 2017

• Expected investment 1,600 MB (600 MB equity)

PDI holds a Joint Venture PDI-CRT (60/40) with Carbon Reduction Technology AS (“CRT”) to recycle metals containing complex industrial waste:

Materials

19

PDI - CRT

20

Submerged Plasma Technology

Recyclables

Clean Off-gas

Zinc Oxide Vitrified glass

• Sorting, landfilling and energy generation from waste collected in North and Central Thailand

• Kor 1 (Public Scoping) of EHIA process recently finished, Kor 2 (focus group) under preparation

• Strong support from Department of Industrial Works (“DIW”) through MOU

• Expected investment 600 MB (240 MB equity) to be finalized in 2019

PDI holds a Joint Venture PDI-DOWA (51/49) with DOWA Eco-System (“DOWA”) from Japan to invest in an industrial waste treatment facility in Tak, Thailand:

Eco

21

This presentation may contain forward-looking information that involves risks and uncertainties,

including statements about PDI’s plans, objectives, expectations and intentions. Readers are

cautioned that forward-looking statements include known and unknown risks and are subject to

significant business, economic and competitive uncertainties and contingencies, many of which

are beyond the control of PDI. Should one or more of these risks, uncertainties or contingencies

materialize, or should any underlying assumptions prove incorrect, actual results could vary

materially from those anticipated, expected, estimated or projected.

As a result, neither PDI nor any other person assumes any responsibility for the accuracy of these

forward-looking statements.

Disclaimer

22