1 S mart People B usiness Trust G rowth Society Company Overview - - PowerPoint PPT Presentation

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1 S mart People B usiness Trust G rowth Society Company Overview - - PowerPoint PPT Presentation

Oct 10, 2022 338 likes •677 views

Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility 1 S mart People B usiness Trust G rowth Society Company Overview Automotive Industry Overview Tractor Industry Overview Sale

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Smart People Business Trust Growth Society

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Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility

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Smart People Business Trust Growth Society

Automotive Industry Overview

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Tractor Industry Overview Sale Performance Financial Highlights Company Overview

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Smart People Business Trust Growth Society 3

SAT

Paid up 425 million Baht

ICP SBM BSK SFT

Tsuchiyoshi Somboon Coated Sand Yamada Somboon Nisshinbo Somboon Automotive Somboon Somic Manufacturing

21.25% 20.00% 2.90% 1.80%

1. Somboon Holding Co.,Ltd. 29.92% 2. Thai NVDR 13.88% 3. Nortrust Nominees Ltd-Cl Ac. 6.07% 4. AIA COMPANY LIMITED - EQ3-P 1.69% 5. NORTRUST NOMINEES LIMITED- 1.63% THE NORTHERN TRUST COMPANY

  • 6. Others

46.81%

As of March 5, 2018

99.99% 99.99% 99.99% 99.99%

Note: Somboon Holding & Kitaphanich Family

  • wns approximately 44%

Mubea Somboon Automotive

50.00%

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Smart People Business Trust Growth Society 4

Process:

Forging/ Machining

Product: Axle Shaft, Hub Customer: Process:

Casting/ Machining

Product: Disc & Drum Brake, Exhaust Manifold, Fly Wheel, Bracket, Hub Customer: Process : Bending & Coiling Product: Spring Product Customer:

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Smart People Business Trust Growth Society Smart People Business Trust Growth Society

Amata Industrial Estate 4 Plants + MSA 1Plant

Samutpr utprak akarn arn Rayong

  • ng

Eastern Seaboard Industrial Estate 1 Plant Bangna Head Office 3 Plants +MSA 2 Plants

5

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Smart People Business Trust Growth Society 6

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Smart People Business Trust Growth Society 7

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Smart People Business Trust Growth Society

Automotive Industry Overview

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Tractor Industry Overview Sale Performance Financial Highlights Company Overview

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Smart People Business Trust Growth Society

197 215 217 233 239 288 250 310 278 301 486 465 527 511 540 100 200 300 400 500 600 1Q17 2Q17 3Q17 4Q17 1Q18 Domestic Export Total

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  • QoQ: Car production increased +6% as export increased +8% and domestic increased +2%
  • YoY : Car production increased +11% as export increased +4% and domestic increased +21%

73 85 75 68 80 91 90 106 82 98 99 104 163 190 157 166 178 195 50 100 150 200 250

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

Unit: Thousand cars

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Smart People Business Trust Growth Society 10

  • QoQ (+6%) : Changes in Pick up, Passenger and Eco car are +8%, +12% and -6%
  • YoY (+11%) : Changes in Pickup, Passenger and Eco car are +12%, +10% and +10%

Unit: Thousand cars

276 264 302 288 310 113 116 114 111 125 87 76 100 102 95 9 9 11 10 9 100 200 300 400 500 600

1Q17 2Q17 3Q17 4Q17 1Q18

Pickup Car Passenger Car Eco Car Commercial

90 108 90 96 103 112 36 42 34 38 41 45 34 37 31 29 31 35 3 4 3 3 3 3 50 100 150 200 250

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

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Smart People Business Trust Growth Society 11

  • QoQ (+2%) : Changes in Pickup , Passenger and Eco car are +10%, +7% and -16%
  • YoY (+21%) : Changes in Pickup, Passenger and Eco car are +28%, -2% and +52%

Unit: Thousand cars

96 110 104 111 122 61 58 56 56 60 31 38 45 56 47 9 9 11 10 9 50 100 150 200 250 300

1Q17 2Q17 3Q17 4Q17 1Q18

Pickup Car Passenger Car Eco Car Commercial

33 37 41 35 42 45 18 22 16 17 19 24 19 22 16 14 15 18 3 4 3 3 3 3 10 20 30 40 50 60 70 80 90 100

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

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Smart People Business Trust Growth Society 12

  • QoQ (+8%) : Changes in Pickup, Passenger and Eco car are +6%, +16% and +6%
  • YoY (+4%) : Changes in Pickup , Passenger and Eco car are +4%, +25% and -14%

Unit: Thousand cars

181 154 197 177 188 52 58 58 55 64 56 38 55 46 48 50 100 150 200 250 300 350

1Q17 2Q17 3Q17 4Q17 1Q18

Pickup Car Passenger Car Eco Car Commercial

58 70 49 60 61 66 17 20 18 22 21 21 15 15 15 16 16 17 20 40 60 80 100 120

Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

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Smart People Business Trust Growth Society 13 Unit: Thousand Cars

  • QoQ -Car export increased +2% mainly increased from export to Australia and Central & South

America

  • YoY – Car export increased +4% mainly increased from export to Australia and improving

exported to the Middle East

  • Top 3 exported region are Australia, Asia and Europe

74 69 77 75 80 83 86 79 84 84 102 85 101 75 66 81 76 87 72 83 84 76 71 77 80 70 39 36 40 31 36 38 39 36 39 31 37 37 36 73 32 57 68 56 36 34 31 23 25 29 35 28 39 25 41 26 29 24 30 22 29 19 25 21 28 15 12 22 18 10 29 30 31 27 17 37 25 24 12 9 11 7 9 6 6 5 8 5 7 7 8

50 100 150 200 250 300 350

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Africa North America Central & South America Middle East Europe Asia Australia

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Smart People Business Trust Growth Society

0.5 0.3 0.1 0.2 0.3 0.3 0.4 0.5 0.6 0.7 0.7 0.6 0.6 0.5 0.8 0.8 1.4 1.3 0.8 0.7 0.8 0.9 0.0 0.0 0.1 0.1 0.2 0.2 0.2 0.2 0.3 0.4 0.5 0.7 0.8 0.5 0.9 0.7 1.0 1.1 1.1 1.2 1.2 1.1 0.6 0.4 0.2 0.3 0.4 0.5 0.6 0.8 0.9 1.1 1.2 1.3 1.4 1.0 1.6 1.5 2.5 2.5 1.9 1.9 1.9 1.99 2.1 2.2 2.2

  • 0.5

1.0 1.5 2.0 2.5 3.0

Export Domestic Total Production

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Asian Financial Crisis Global Financial Crisis Thailand Floods & Tsunami in Japan CAGR =3% CAGR =9% First car scheme

1.12 1.10 1.13 0.42 0.45 0.45 0.34 0.36 0.36 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

2015 2016 2017 Pickup&PPV Passenger Eco CV

Unit : Million cars Unit : Million cars

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Smart People Business Trust Growth Society

Automotive Industry Overview

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Tractor Industry Overview Sale Performance Financial Highlights Company Overview

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Source : Customer Unit: in Thousand

  • QoQ: Increased +22%
  • YoY : Increased +24%

15 13 15 11 11 9 12 11 11 15 14 12 15 2 2 3 4 3 3 5 5 3 2 6 2 3

16 15 18 16 14 12 17 17 15 17 20 15 18

5 10 15 20 25

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Tractor Combine Total

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Smart People Business Trust Growth Society

21 17 30 52 55 59 54 44 53 1 3 5 6 7 12 15 14

21 18 33 57 61 65 66 59 66 75 78 82

10 20 30 40 50 60 70 80 90

2009 2010 2011 2012 2013 2014 2015 2016 2017 F2018 F2019 F2020 Tractor Combine Total

17 Unit: in Thousand CAGR =21% CAGR = 8% Flood Drought

Source : SBG’s Forecast

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Smart People Business Trust Growth Society

Automotive Industry Overview

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Tractor Industry Overview Sale Performance Financial Highlights Company Overview

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Smart People Business Trust Growth Society

71% 25% 12% 74% 25% 12% 0% 20% 40% 60% 80% 23% 23% 19% 15% 5% 15% 28% 25% 24% 17% 5% 1% 0% 5% 10% 15% 20% 25% 30%

Axle Shaft Disc Brake & Drum Brake Casting/Machining (Automotive) Casting/Machining (Kubota) Hub/Big Hub Others*

1Q2017 1Q2018

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Market Share Sales Contribution

Note : * Sales in Y2017 included sales of spring business while sale in Y2018 does not include. This is because spring business was sold to JV company in Dec Y2017.

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33% 28% 16% 7% 4% 3% 1% 1% 7% 36% 25% 17% 7% 5% 3% 2% 2% 3%

0% 5% 10% 15% 20% 25% 30% 35% 40% Mitsubishi Toyota/Hino Kubota Isuzu Honda Nissan GM Ford & Mazda Others* 1Q2018 1Q2017

Note : 1. 2017 Sale Data included sales from spring business, which was transferred at the end of 2017.

  • 2. Other customers: Direct export and REM customer.
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Smart People Business Trust Growth Society

2017 1Q2017 4Q2017 1Q2018

Production line

Capacity pcs /month Utilization (%) Capacity pcs /month Utilization (%) Capacity pcs /month Utilization (%) Capacity pcs /month Utilization (%)

Axle Shaft 365,500 57% 365,500 55% 365,500 60% 365,500 63% Machining (Auto) 418,400 66% 418,400 69% 418,400 64% 437,000 72% Machining (non-Auto) 229,000 66% 229,000 62% 229,000 63% 229,000 68% General Forging 280,500 41% 280,500 40% 280,500 47% 280,500 42% Total (SBG) 60% 59% 61% 65%

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Note : 1. Capacity is calculated based on 500 hours per month (20 hours x 25 days) except Axle Shaft & General Forging: 550 hours per month

  • 2. Total SBG’s Y2017 capacity and utilization did not include the spring business’s capacity.
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Smart People Business Trust Growth Society

Automotive Industry Overview

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Tractor Industry Overview Sale Performance Financial Highlights Company Overview

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304 280 327 326 333 285 385 328 362 1,890 1,690 1,703 1,779 1,760 1,651 1,870 1,981 1,629 2,194 1,970 2,030 2,105 2,093 1,936 2,255 2,309 1,991 500 1,000 1,500 2,000 2,500 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Gross Profit COGs Sales

Unit: Million Baht

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328 362 1,981 1,629 14.2% 18.2%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

500 1,000 1,500 2,000 2,500 4Q17 1Q18

Gross Profit COGs %GP

 QoQ Comparison

  • Sale

13.8%

  • COGS

17.8%

  • GP (amount)

10.4%

  • %GP

4.0%

  • Sales declined by 13.8% due to

i) 2018 sale does not include sale from spring business as it was transferred to the JV Company toward the end of 2017 ii) In 4Q17, the figure included sale of inventories to MSA approximately 155 MB.

  • GP increased by 10% driven by

growth from automotive and tractor industry

Unit: Million Baht %GP

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333 362 1,760 1,629 15.9% 18.2%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

500 1,000 1,500 2,000 1Q17 1Q18

Gross Profit COGs %GP

 YoY Comparison

  • Sale

4.9%

  • COGS

7.4%

  • GP (amount)

8.7%

  • %GP

2.3%

  • Sales declined by 4.9% as 2018

sale does not include sale from spring business

  • %GP increased by 2.3% driven by

growth from automotive and tractor industry

Unit: Million Baht %GP

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151 118 168 171 171 135 225 280 235 6.9% 6.0% 8.3% 8.1% 8.2% 7.0% 10.0% 12.1% 11.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 50 100 150 200 250 300 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Net Profit % Net Profit

%NP Unit: Million Baht

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Note: 1 Others include gain/loss on fx , other incomes, and other expenses

1

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Note: 1 Others include gain/loss on fx , other incomes, and other expenses

1

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394 352 409 394 397 362 462 519 435 17.9% 17.9% 20.1% 18.7% 19.0% 18.7% 20.5% 22.5% 21.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 100 200 300 400 500 600 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EBITDA % EBITDA

%NP

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1.48 1.48 1.97 2.12 1.05 2.27 1.19 2.40 2.00 1.53 1.51 1.43 1.91 0.45 0.50 0.70 0.30 0.00 0.90 0.45 0.97 0.75 0.60 0.60 0.60 0.90

30% 34% 36% 14% 0% 40% 38% 40% 38% 39% 40% 42% 47%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

0.00 0.50 1.00 1.50 2.00 2.50 3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 EPS DPS %Dividend Payout

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Unit : Million Baht 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ YoY Y2016 Y2017 YoY Sales 2,194 1,970 2,030 2,105 2,093 1,936 2,255 2,309 1,991

  • 13.8%
  • 4.9%

8,299 8,593 3.5% Total Revenue 2,229 1,993 2,052 2,123 2,109 1,959 2,275 2,459 2,020

  • 17.9%
  • 4.2%

8,397 8,802 4.8% Gross Margin 304 280 327 326 333 285 385 328 362 10.4% 8.7% 1,237 1,331 7.6% SG&A 178 165 165 162 167 164 167 182 152

  • 16.5%
  • 9.0%

670 680 1.5% FOREX Gain (Loss) 6

  • 2

2

  • 2

2 2 2 2 2 6.3% 29.7% 3 8 122.2% Interest Expense 24 22 20 17 17 15 14 12 10

  • 12.3%
  • 39.6%

83 57

  • 30.8%

Net Profit 151 118 168 171 171 135 225 280 235

  • 16.1%

37.4% 608 811 33.4% Net Profit excluding fx 145 120 166 173 169 133 223 278 233

  • 16.2%

37.5% 605 803 32.9% EBITDA 394 352 409 394 397 362 462 519 435

  • 16.3%

9.5% 1,549 1,741 12.4% Cash Flow from Operating 250 413 364 415 298 421 521 385 165

  • 57.3%
  • 44.8%

1,442 1,625 12.7% Depreciation 208 205 206 191 192 198 199 200 166

  • 17.0%
  • 13.5%

810 789

  • 2.6%

CAPEX 286 68 83 71 46 71 57 121 56

  • 53.7%

21.7% 508 295

  • 41.9%

Effective Tax Rate 7% 6% 8% 8% 9% 10% 10% 9% 9% 0.1% 0.0% 7% 9% 2.0% Total Assets 9,733 9,348 9,275 9,421 9,439 9,217 9,328 9,572 9,128

  • 4.6%
  • 3.3%

9,421 9,572 1.6% Interest Bearing Debt 2,055 1,874 1,762 1,760 1,574 1,386 1,199 1,207 747

  • 38.1%
  • 52.5%

1,760 1,207

  • 31.4%

Total Liabilities 4,052 3,722 3,562 3,534 3,382 3,200 3,191 3,152 2,473

  • 21.5%
  • 26.9%

3,534 3,152

  • 10.8%

Equity 5,680 5,625 5,712 5,887 6,058 6,017 6,137 6,420 6,656 3.7% 9.9% 5,887 6,420 9.1% Key Financial Ratios 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ YoY Y2016 Y2017 YoY %GP 13.9% 14.2% 16.1% 15.5% 15.9% 14.7% 17.1% 14.2% 18.2% 4.0% 2.3% 14.9% 15.5% 0.6% %SG&A 8.1% 8.4% 8.1% 7.7% 8.0% 8.5% 7.4% 7.9% 7.6%

  • 0.2%
  • 0.3%

8.1% 7.9%

  • 0.2%

%NP 6.9% 6.0% 8.3% 8.1% 8.2% 7.0% 10.0% 12.1% 11.8%

  • 0.3%

3.6% 7.2% 9.2% 2.0% %NP excluding fx 6.6% 6.1% 8.2% 8.2% 8.1% 6.9% 9.9% 12.0% 11.7%

  • 0.3%

3.6% 7.2% 9.1% 1.9% %EBITDA 17.7% 17.7% 19.9% 18.6% 18.8% 18.5% 20.3% 21.1% 21.5% 0.4% 2.7% 18.4% 19.8% 1.3% %ROA 6.1% 5.0% 7.1% 7.2% 7.1% 5.8% 9.7% 11.8% 10.1%

  • 1.7%

3.0% 6.5% 8.5% 2.0% EBITDA/CAPEX 1.38 5.18 4.92 5.55 8.63 5.10 8.11 4.29 7.76 347.0%

  • 86.6%

3.05 5.90 2.9 %ROE 10.9% 8.6% 12.1% 12.0% 11.7% 9.3% 15.2% 18.2% 14.8%

  • 3.4%

3.1% 10.3% 12.6% 2.3% %ROIC 8.8% 7.2% 9.8% 9.8% 9.8% 8.1% 12.9% 16.6% 15.3%

  • 1.3%

5.5% 7.3% 9.1% 1.7% Interest bearing Debt/Equity 0.36 0.33 0.31 0.30 0.26 0.23 0.20 0.19 0.11

  • 0.08
  • 14.8%

0.30 0.19

  • 0.11

D/E 0.71 0.66 0.62 0.60 0.56 0.53 0.52 0.49 0.37

  • 0.12
  • 18.7%

0.60 0.49

  • 0.11

EPS (Baht) 0.36 0.28 0.40 0.40 0.40 0.32 0.53 0.66 0.55

  • 0.16

37.4% 1.43 1.91 33.4% BVPS (Baht) 13.36 13.24 13.44 13.85 14.25 14.16 14.44 15.11 15.66 3.7% 9.9% 13.85 15.11 9.1%

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Awards from customer

 TCC HRD Activity 2017 from Toyota  The Winner TPS Award 2017 from Toyota  MCC QCC Activity 2017 from Mitsubishi  Quality Award and Delivery 2017 from Kubota  SKC Delivery Skill Contest 2017 from Kubota  RUNNER UP SKC Delivery Kaizen Award 2017 from Kubota  Gold Award QCD 2017 from Kubota  Quality Award and Delivery 2017 from Isuzu

Awards from various agencies.

 Sustainability Awards of Honor 2017 from SET  Thailand Sustainability Investment 2017 (THIS) from SET  Best Investor Relations Awards -2017 from SET  Best IR Awards 2015-2016 from IAA  Gold Level Thailand HR Innovation Award 2017, the highest award from the National Institute for Productivity in collaboration with the PMAT & NIDA  CSR-DIW Continuous Award 2017 from DIW

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