[PPT] - A W Wal alk of of Hap Happin iness Yeap ap Sw Swee Chuan PowerPoint Presentation

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A W Wal alk of

f Hap

Happin iness

Novem ember er 8, , 201 2010

Yeap ap Sw Swee Chuan huan

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Sawasdee krub! I am deeply honored and overwhelmed to see such a warm and big turnout this evening. Thank you, Your Excellencies, friends, suppliers, customers, government officials, bankers, partners and associates - both still in service or retired, and those who have flown in from different corners of the world to come to join my family and I for this first-ever public celebration of AAPICO -- our Walk of Happiness spanning 25 years!

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AAPICO - a Malaysian-Thai JV company, is an acronym that stands for Able Autopart Industries Co. Ltd.

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Established in 1985, we began as an assembler and distributor of Ford vehicles in the Kingdom of Thailand. At that time, AAPICO started to produce some autoparts, but our primary focus was on the Ford business. We did not do well, but fortunately in 1995 Ford decided to re-enter Thailand, and we returned the distributorship back to Ford and became a dealer. We are the oldest Ford dealer in Thailand today. It was only then that we started to truly focus on the manufacturing of autoparts.

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For the first 10 years in Thailand I had to visit my bankers regularly, which has proven to be an invaluable lesson learnt, and I prefer not to go through this experience ever again! Hanging over me then was the realisation that I needed to repay considerable debts owed to my bankers, and I set my mind to achieving this goal knowing full well that I needed to do something BIG.

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Fortunately in 1995, AAT, the Ford-Mazda JV started, and we received orders for fuel tanks and press parts.

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Things started to look up, and in 1996 we bought 15 rai of land(or 24,000 square meters) at Hitech Industrial Estate in Ayuthaya to build our first factory to supply AAT.

AAPICO Hitech Plc. Ayuthaya

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อีกทั้ง บริษัท เอเบิล ซาโน่ อินดัสตรี (1996) จํากัด เกิดจากการร่วมทุนกับ ซาโน่ แห่ง ประเทศญี่ปุ ่ น ก็ซื้อที่ดินอีก 10 ไร่ ในบริเวณเดียวกัน Able Sanoh Industries, our JV with Sanoh Japan also bought 10 rai of land in the same compound. Able Sanoh Industires Co., Ltd. Ayuthaya

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Passenger (Domestic) Others (Domestic) Pick Up (Domestic) Export Forecast ECO Car Forecast

UNIT 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000

199 4 199 5 199 6 199 7 199 8 199 9 200 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 201 1 201 2 202

Tom Yum Kung

Hamburger But the brightness quickly faded in 1997 with the Tom Yum Kung crisis, which saw the auto industry drastically plummet from an annual sales of 600,000 units to only 160,000 units per year. Somehow, we weathered the crisis and started delivery to AAT.

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1998 proved to be another year of pain and struggle for AAPICO. We had a large empty factory with few orders. But with the improvement of the economy in 1999, we received more orders and the factory became busier.

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Then with a sigh of relief, the auto industry continued to improve from the year 2000 onwards. And in 2002, we started supplying to Toyota and Isuzu for their

pickups. This further helped fill up the capacity of our first factory.

200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2020

UNIT

Auto Industry Trend

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And in the same year, we were listed on the Stock Exchange of Thailand, a very significant event as I gave 5% of the shares at par value to all employees and multiplied 20 times within 12 months.

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AAPICO Amata Co., Ltd. (AA) Chonburi

In 2003, through a capital increase, we acquired 100% of Dana Corporation’s shares in Parish Structural Products, which enabled us to supply all the pickup frames to Isuzu and GM Colorado. Since then, we have produced and delivered a total of over 1.5 million frames.

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The economy was bullish, and the future looked bright so in 2004 we started our foray to China and aquired Kunshan Chaitai-Xincheng Precision Forging Co., Ltd.

Kunshan Chaitai-Xincheng Precision Forging Co., Ltd. China

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In the same year, we started our Honda Car Dealership in Malaysia

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And Mitsubishi Dealership in Thailand.

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In 2005, Sojitz of Japan invested 15% equity in AAPICO,

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and in the same year we established AAPICO Shanghai, a machining company in Shanghai,China. AAPICO Shanghai Co., Ltd. China

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AAPICO ITS Co., Ltd. (AITS) Ayuthaya

Still on a roll, AAPICO ITS was registered in 2006 to produce car navigation maps under the brand name of POWERMAP.

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It is Thailand’s first car navigation system to display real-time 3D landmarks and junction views. Today, POWERMAP is one of the best navigation products in Thailand and Malaysia comparable to the top global brands currently sold in the market. This is a true testimony to Thailand and Thai skills, and the country can be proud as we are the only local company in South East Asia having this special know-how.

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AAPICO Forging Plc. Chonburi

In 2007, we completed 100% acquisition of SET-listed KPN Automotive Plc., and renamed the company to be AAPICO Forging

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AAPICO Plastics Plc. Samut Prakan

and AAPICO Plastics

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AAPICO Hitech Rayong AAPICO Plastics Rayong Minth AAPICO

1 2 3 1 2 3

In the same year, we acquired 100 rai of land at Amata City in Rayong to build 3 factories

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Minth AAPICO factory, a JV with Minth China, to produce door sash. Minth AAPICO Co., Ltd. Rayong

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The second factory is a plastic fuel tank factory through techical agreement with Kautex Textron Germany

AAPICO Plastics Rayong Rayong

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AAPICO Hitech Rayong Rayong

And the third factory is a press shop with the most modern high-speed Komatsu Tandem Line.

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We purchased a factory on 40 rai of land in Amata Nakorn Industrial Estate in 2008 to manufacture Isuzu pickup frames using completely robotic lines. AAPICO Structural Products Co., Ltd. Rayong

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Nissan March Mazda 2 Ford Fiesta

Last year, we became a major supplier to Nissan Eco car, Mazda 2 and Ford Fiesta, which were gradually launched over the last 8 months of this year. Today, we are one of the largest suppliers to Nissan and Ford/Mazda for their small vehicles.

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As we celebrate our Silver Anniversary and come to the end of 2010, we believe that AAPICO is in a good to continue as a key player in the automotive industry with future sustainable growth.

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Honda showroom in Malaysia

Presently, we are in the process of building the largest 3S Honda showroom in Malaysia. We have already received a good share of orders for the Honda Eco Car, which will be launched in 2011.

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1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1st Half 2010

291 407 1,041 1,227 1,740 4,049 7,035 8,310 8,010 9,656 9,516 7,366 5,508

Millions

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Hence today, we supply several parts to almost every car brand in Thailand. You can see from the slides that we are a multi-product supplier from steel press parts to forging parts to engine parts to tubes and plastic parts.

Chassis Frames

STAMPING PARTS

Steel Fuel Tanks Press Parts Door Checks

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64181 1HJ0A / 1HH0A REINF ASSY

HOODLEDGE,LH

62530 1HJ0A / 1HH0A / 3HH1A SUPT

ASSY RAD CORE LWR

62511 1HJ0A / 1HH0A SUPT ASSY

RAD CORE,UPR CTR

65141 1HH0A REINF ASSY

HOOD HINGE,LH

65615 1HH0A BASE ASSY

HOOD LOCK STRIKER

80149 1HH0A REINF

FR DOOR OTR WAIST,LH

80127 1HH0A REINF

FR DOOR HINGE,LWR LH

801B1 1HH0A STFNR ASSY

FR DOOR OTR,LH

82147 1HH0A REINF ASSY RR DR OTR WAIST LH 82155 1HH0A STFNR

RR DOOR,OTR LH

78830 1HP0A LID ASSY FUEL

FILLER

76631 1HH0A / 1HH5A PLR ASSY

RR,INR LH

76691 1HH0A RET ASSY

STRIKER,LH

66386 1HJ0A BRKT

WIPER MTG,A

66338 1HJ0A BRKT

WIPER MOTOR(RHD)

REINF ASSY

HOOD HINGE,RH

67338 1HJ0A / 1HJ1A RENIF

DASH LWR,RH(AT/MT)

78115 1HH0A EXT COMPL

FDR RR LH

66387 1HJ0A BRKT

WIPER MTG,B

67318 1HJ0A COVER

STRG HOLE

64824 1HJ0H BRKT ASSY

CANISTER

85212 1HJ0A STAY

RR BMPR

79140 1HH3A REINF ASSY

RR PANEL UPR

74560 1HJ0A BRKT ASSY

MFLR MTG

90141 1HH0A REINF ASSY

BACK

DOOR STAY,LH 90135 1HH0A REINF ASSY

BACK

DOOR HINGE,LH 90134 1HH0A REINF ASSY

BACK

DOOR HINGE,RH 82154 1HH0A STFNR

RR DOOR,OTR RH

90116 1HH0A REINF ASSY

RR WIPER

74528 1HH4A PLATE ASSY BOLT 78114 1HH0A EXT COMPL

FDR RR RH

90140 1HH0A REINF ASSY

BACK

DOOR STAY,RH 82238 1HH0A BRKT

RR DOOR SASH,RH

82146 1HH0A REINF ASSY

RR DR OTR WAIST RH

801B0 1HH0A STFNR ASSY

FR DOOR OTR,RH

80148 1HH0A REINF

FR DOOR OTR WAIST,RH

64180 1HJ0A / 1HH0A REINF ASSY

HOODLEDGE,RH

74370 1HJ0A REINF ASSY

TRANS CONT

74354 1HJ0A REINF ASSY PKB 73230 1HH0A RAIL ASSY

ROOF,RR

73256 1HH0A REINF

ROOF,CTR

73224 1HH0A BRKT

MAP LAMP

82239 1HH0A BRKT

RR DOOR

SASH,LH 790146 1HH0A REINF ASSY

BACK

DOOR LOCK 76690 1HH0A RET ASSY

STRIKER,RH

76630 1HH0A PLR ASSY

RR,INR RH

ECO CAR

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FORGING AND MACHINING PARTS

Transmission Shafts Connecting Rods Wheel Hubs Crank Shafts Copper Forging Parts

Lambda Intermediate Shafts

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PLASTIC PARTS

HVAC Units Interior Trims Washer Bottles Plastic Fuel Tanks Plastic Parts

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I have often been asked the reasons why I have some success in the auto parts industry, and why Thailand has become so successful in the automotive industry.

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The answer for me probably lies in the fact that I am simple engineer and totally focused in only ONE business, and our team always delivers what has been promised to the customers, in terms of quality cost and delivery.

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Also contributing to the country’s automotive success is the fact that the Thai Government has stipulated proactive and consistent national automotive policies over the past 30 years. Coupled with the excellent support by the highly efficient BOI, Thailand has been able to attract all global OEMs and parts suppliers. Of course, credit must also be given to the high quality disciplined local labour force.

THAILAND OF INVESTMENT

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But one major weakness today is the lack of collective bargaining guideline and good communication resulting in some strikes and slowdown despite being given the best benefit overall compared to

ther similar automotive companies in Asia.

I hope some senior government officials will take cognizance and remedy this weakness

THAILAND OF INVESTMENT

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Right at this moment, billions of dollars are being spent to build 3 new assembly plants in Thailand which are Mitsubishi, Ford and Suzuki – a phenomenon never seen anywhere in the world today. THAILAND OF INVESTMENT

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An important third factor is that the global OEMs that came to Thailand provided excellent guidance, world-class training and technology transfer.

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Thanks to Ford for bringing QS 9000 and now TS 16949 to provide standard quality systems to Thai companies

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Thanks to Honda who taught us the true meaning

f speed and timely completion of all projects.

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Thanks to Isuzu who offered opportunities and strong trust to purchase from local pure Thai companies.

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Thanks to Mazda for their patience to teach us world- class quality standards necessary for the global market.

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Thanks to Nissan who taught us MONOZUKURI – improvements on all fronts within a company

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Thanks to Toyota who gave us a clear annual focus and the TPS System or Toyota Production System of one-piece flow, kanban, zero stock and Just-In-Time production.

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Thanks to Yamaha -- our key motorcycle account for products which are relatively new to us -- for their patience, guidance and support.

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And of course, thanks to others like General Motors, Mercedes- Benz, Mitsubishi, Volvo, etc. to whom we also supply, as we benefited greatly through the years whenever we visited their plants in Thailand or overseas, and for the guidance offered by their engineers whenever they made their routine visits to our factories.

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Hence our success to a large extent has been contributed by the Government, the global OEMs and our bankers as well as our business partners. And last, but not least, our happy employees and my happy family

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And my family.

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So, what lies ahead for AAPICO as we are 100% dependent on the automotive industry? Fortunately, I was told that the car or motorized method of transport will never be replaced – not at least for another 50 years. This means the acronym of AAPICO, Able Autoparts Industries Company, has set the direction that we will remain and continue to grow in the auto industry.

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Furthermore, our vision is to be a lean and happy world-class organization with 4 sustainable values namely, Happy customers, Happy employees, Happy shareholders and Happy public, and these will continue to remain our guiding light for the future.

Our vision is to be a lean and happy world-class organization with 4 fundamental values of Happy Customers, Happy Employees, Happy Shareholders, and Happy Public.

HAPPY CUSTOMERS

D – Delivery E – Engineering M – Good Management S – Safety Q – Quality C – Cost

HAPPY SHAREHOLDERS HAPPY PUBLIC

Profitability Corporate Social Responsibility Teamwork Look at problems as opportunities Love Family, Company and Country

HAPPY EMPLOYEES

Loyalty and Honesty Mutual Respect

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