AAPICO HITECH PLC [AH] Agenda 1. Company Profile 2. Industry - - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH]

Agenda

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1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction

Company Profile

AAPICO HITECH PLC [AH]

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AAPICO PICO HITECH ECH PUBLIC IC COMPANY ANY LIMITED MITED

• Established in 1996 and listed on SET in 2002.
• Main businesses: OEM Auto Parts, Jigs and Dies, Car

Dealerships and Car Navigation.

• Main locations: Thailand, Malaysia and China.
• Comprising of 38 companies (28 subsidiaries and 10

associates).

• Registered and paid-up capital of Baht 322.58 million,

comprised of 322,583,844 ordinary shares at par value of Baht 1 each.

Industry/Sector : Auto Current price : Baht 13.50 52 weeks range : Baht 9.15 – 15.20 Market Cap : Baht 4,355 million P/E (YTD) : 8.93* P/BV : 0.72* Dividend yield (Half- Year) : 2.26%*

* Data as of November 21, 2016

AH Shareholding Structure

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Yeap Family 39.8% Sojitz Corp. 15.8% AH 1.4% Free- float 43.0%

AH’s main shareholders are Yeap Swee Chuan and family holding 39.85% of total outstanding shares and Sojitz Corporation holding 15.76% of total outstanding shares.

Thai 77.6% Thai institu- tions 11.6% NVDR 7.6% Foreign institu- tions 3.1% Foreign 0.2%

* Data as of August 30, 2016

AAPICO’s Vision

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Where do we want to go? How do we want people to remember us?

MANUFACTURING RESEARCH & DEVELOPMENT CAR RETAILING

LEAN, GREEN, N, HAPPY, DIGIT ITAL AL WORLD-CLASS CORPORATION

Happy y Custome mers Happy y Emplo loyees es Happy y Publi lic Happy y Share reholder lders

• S : Safety
• Q : Quality
• C : Cost
• D : Delivery
• E : Engineering
• M : Management (Focus

Digital)

• Teamwork
• Look at problems as
• pportunities
• Love Family, Company and

Country

• Loyalty and Honesty
• Mutual Respect
• Profitability
• Reasonable Dividend
• Corporate Social

Responsibility

Business Segment

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• Stamping Parts
• Assemblies

Forging Machining Plastic Navigation Data Analytics Telematics Car Dealerships

• Jigs
• Dies

AAPICO GROUP

Country of Operations

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THAILAND HAILAND

Ayutthaya, Chonburi, Rayong, Samutprakarn

Productio ction: Stamping and Assemblies, Forging & Machining, Plastic, Jigs & Dies, Dealerships, and Car Navigation

Malaysia

Kajang & Petaling Jaya

Car dealer lers: Honda car

2014 69% 2014 26% 2014 5% 2015 73% 2015 23% 2015 4%

2016Q3 75% 2016Q3 22% 2016Q3 3%

Thailand Malaysia China

Sales by Country

CHINA A

Kunshan

Productio ction: Connecting rods and Copper Forging

Locations in Thailand

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Bangkok Ayutthaya Rayong Chonburi Samutprakan Hitec ech Indu dustr trial ial Estat ate Prod

• duct

ucts : Stamping Dies, Jigs, Stamping parts, and Car navigation Amat ata a Nako korn rn Indu dustria rial l Estate Product

• ducts : Chassis Frames, Forged

and machined parts. Bangp gplee lee Indus ustr tria ial l Estate Product

• ducts : Plastic parts

Amat ata a City y Indus ustr trial ial Estat ate Prod

• duct

ucts : Stamping parts and Plastic parts Mitsubishi Dealers: Ramindra Navanakorn Ford Dealers: Ladprao Samutprakarn

Our OEM Customers

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Isuzu; 43% AAT 15% Nissan; 7%

GKN 3% Toyota; 4% SGMW; 3%

Others- Parts; 25%

Isuzu 41% AAT* 18% Nissan 7%

AAM; 4% GKN; 4%

Toyota; 3% Others- Parts 23%

Top OEM Customer Profile

*Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.

Our Partners

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Technical Partners

Joint Ventures

Strategic Shareholder

Awards & Achievements

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GM Quality Excellence Award

AAPICO Hitech PLC

TPS Award The 2nd Runner Up of Advance Group

AAPICO Hitech PLC

Thailand Automotive Industry Update

Thailand Automotive Industry

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0.46 0.58 0.75 0.93 1.13 1.19 1.29 1.39 1.00 1.65 1.46 2.45 2.46 1.88 1.43 1.48 0.48 0.50

0.0 0.5 1.0 1.5 2.0 2.5 3.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Unit: Millions

Thailand Automotive Industry Overview 2001-2016

Production Volume Forecast Domestic Sales Export Volume

Source: The Federation of Thai Industry

+3.1%

Global Financial Crisis Tsunami & Flood First car campaign

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0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.0 0.2 0.4 0.6 0.8 1.0

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

1-Ton Pick-up/PPV Passenger car Others

Source: The Federation of Thai Industry (Automotive Industry)

• 2.6%

yoy

Unit: Million

• 0.6%

qoq

Q3 Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Production Volume 496,508 486,506 483,356

• 2.6%
• 0.6%

Q3 Thailand Production Volume

Q3 Total Industry Volume

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0.18 0.15 0.12 0.14 0.11 0.10 0.10 0.11 0.09 0.08 0.10 0.13 0.10 0.09 0.09 0.20 0.15 0.15 0.13 0.09 0.09 0.09 0.10 0.08 0.07 0.07 0.08 0.06 0.07 0.07 0.0 0.1 0.2 0.3 0.4 0.5

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

1-Ton Pick-up/PPV Passenger car Others

Source: The Federation of Thai Industry (Automotive Industry) Unit: Million

Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Total Industry Volume 184,723 187,070 187,895 +1.7% +0.4%

+1.7% yoy +0.4% qoq

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0.29 0.25 0.31 0.28 0.29 0.27 0.28 0.29 0.33 0.25 0.33 0.30 0.31 0.29 0.31 0.0 0.1 0.2 0.3 0.4 0.5

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Export Units

Source: The Federation of Thai Industry (Automotive Industry) Unit: Million

Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Export Volume 329,293 287,063 305,903

• 7.1%

+6.6%

Q3 Export Volume

• 7.1% yoy

+6.6% qoq

Financial Performance

For 3rd quarter of 2016

Financial Highlights

• Revenues

es were 1.4% lower than Q3 2015, due to weak economy and impact of steel price decrease, partly offset by increased car dealer sales.

• Gross

ss profit it margi gin was at 5.2% of sales, impacted by lower sales and because of product mix.

• SG&A

G&A and Interes erest and Tax expense enses s decreased driven by cost reduction and decreased loan level.

• Net profit

it margi gin improved despite lower sales, thanks to lower costs and increased profit from associates, mainly Hyundai, QI, and lower losses in some JVs.

Q3 2016 Results

In Million Baht

Q3

2014

Q3

2015

Q3

2016 Revenues

Growth%

4,039

+2.8%

3,672

• 9.1%

3,619

• 1.4%

Gross Profit

GM%

170

4.4%

215

6.0%

183

5.2%

SG&A 177 201 189 Associate 22 35 75

• Int. & Tax

59 48 41 Net Profit

NP%

92

2.3%

112

3.1%

132

3.7%

ROE (%) 6.6% 4.9% 8.4% ROA (%) 2.9% 2.4% 4.4% D/E (x) 0.67 0.56 0.46

AAPICO Group : Total Revenues

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4,039 3,597 3,758 3,574 3,672 3,990 3,910 3,681 3,619

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Total Revenues by quarter

Unit: in Million Baht

Auto parts Car dealers

9M2015, 67% 9M2015, 33%

9M2016, 65% 9M2016, 35%

Total Revenues (YTD)

Auto parts Car dealers

• Q3’16 vs Q3’15: Revenue was 1.4% lower than last year,

mainly due to weak economy and decreased steel price, partly offset by increased car dealer sales.

• Q3’16 vs Q2’16: Revenue was slightly below last quarter,

mainly due to impact of steel price decrease.

• 9M’16 vs 9M’15: Revenue increased 1.9% yoy, driven by

higher sales in car dealership. Revenue of auto part was slightly below last year, mainly due to weak demand in China.

Auto Parts : Sales & EBIT

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2,336 2,086 2,487 2,165 2,417 2,302 2,382 2,231 2,623 2,265 2,158

• 1,000

2,000 3,000 4,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Sales by quarter

Unit: in Million Baht

7,101 7,046 220 328

9M15 9M16

YTD Sales & EBIT

Unit: in Million Baht

• 0.8%
• 9M16 vs. 9M15:
• Sales

es were 0.8% lower than last year, mainly due to weak demand in China. Thailand sales grew 1% yoy, in line with industry growth.

• EBIT improved significantly yoy despite lower sales, driven by cost reduction

and improved efficiency. EBIT T margin in improved from 3.1% to 4.7% of sales.

9M15 94% 9M15 6%

9M16 TH 95% 9M16 CN 5%

3,566 3,874 69 81

9M15 9M16

YTD Sales & EBIT

Unit: in Million Baht

Car Dealers : Sales & EBIT

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1,238 1,548 1,416 1,296 1,239 1,149 1,178 1,636 1,195 1,323 1,356

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Sales by quarter

Unit: in Million Baht

• 9M16 vs 9M15:
• Sales

es grew 8.6% yoy, driven by higher car sales volume in both Thailand and

• Malaysia. This growth was partly negated by the impact of weaker Malaysian

Ringgit currency translation.

• EBIT increased yoy, driven mainly by higher sales. EBIT

T margin in improved from 1.9% to 2.1% of sales.

9M15 30% 9M15 70%

9M16 TH 37% 9M16 MY 63%

+8.6%

EBITDA

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341 305 307 260 285 248 313 287 347 321 286

• 100

200 300 400 500 600 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: in Million Baht EBIT Depreciation

845 954 9M15 9M16

EBIT Depreciation

4.4% 3.3% 3.2% 1.8% 2.6% 1.8% 3.4% 2.5% 4.3% 3.9% 2.7%

9.2% 7.9% 7.6% 7.2% 7.6% 6.9% 8.5% 7.2% 8.9% 8.7% 7.9% 0% 5% 10% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: as % of revenue EBIT% EBITDA%

2.6% 3.7%

7.7% 8.5%

9M15 9M16

EBIT% EBITDA%

Net Profit

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154 107 92 33 100 40 112 85 156 133 132

• 50

100 150 200 250 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: in Million Baht Profit from operations Associate income

253 421 9M15 9M16

Operations Associate 4.2% 2.8% 2.3% 0.9% 2.7% 1.1% 3.1% 2.1% 4.0% 3.6% 3.7% 0% 2% 4% 6% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: as % of revenue Net Profit % 2.3% 3.8%

9M15 9M16

Net Profit %

Profitability Ratios [ROE & ROA]

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23.6% 20.7% 20.0% 12.2% 9.4% 7.7% 6.6% 6.9% 5.8% 4.6% 4.9% 5.8% 6.6% 8.1% 8.4% 0% 5% 10% 15% 20% 25% 30% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: in percentage ROE (In the Quarter) ROE (Seasonally adjusted)

R O E R O A

8.2% 7.4% 7.3% 4.8% 3.8% 3.2% 2.9% 3.1% 2.7% 2.2% 2.4% 2.9% 3.3% 4.1% 4.4% 0% 2% 4% 6% 8% 10% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: in percentage ROA (In the Quarter) ROA (Seasonally adjusted)

Debt Service Ability Ratios

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5.0 4.8 4.7 3.6 3.2 2.9 2.9 3.0 2.8 2.5 2.7 3.1 3.6 4.5 4.8 0.0 2.0 4.0 6.0 8.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: times Interest Coverage Ratio (In the Quarter) Interest Coverage Ratio (Seasonally adjusted)

I C R Debt / EBITDA

2.7 2.8 3.0 3.3 3.5 3.8 3.6 3.5 3.4 3.6 3.2 3.1 2.8 2.6 2.5 0.0 2.0 4.0 6.0 8.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Unit: times Debt to EBITDA (In the Quarter) Debt to EBITDA (Seasonally adjusted)

Capital Structure

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• Net interest-bearing debt to equity ratio as of Sep 2016 was at 0.46x, in

line with the Company’s target of less than 1.00x.

• Total liabilities net cash (Net debt) to equity ratio decreased to 0.79x as

end of Sep 2016, in compliance with financial covenant target of less than 2.00x.

ST 15% CPLTD 26% LT Loans 20% Bond 39%

Interest-bearing Debt

Interest-bearing debts decreased to Baht 2.8 billion as of Sep 2016. Debenture accounts for 39% of debt portfolio.

1.07 0.85 0.67 0.63 0.61 0.56 0.55 0.49 0.51 0.46

1.74 1.26 1.07 1.05 1.02 0.96 0.87 0.88 0.86 0.79

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 0.0 2.0 4.0 6.0 8.0 2012 2013 2014 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Unit: in Billion Baht

Debts Equity D/E (L-C)/E

Capital Expenditures

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197 34 157 73 67 93 46 68 41 33 25

50 100 150 200

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Unit: in Million Baht

160 1,145 1,237 734 460 273

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

2010 2011 2012 2013 2014 2015 2016FC

Capital Expenditures

Unit: in Million Baht Actual Forecast

Capital expenditures were Baht 98 million for the period of January to September 2016, compared to Baht 206 million in January to September 2015.

Strategy & Direction

Thailand Automotive Outlook

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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 1.5 0.5 3.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Production Forecast Total Industry Volume (TIV) Export Volume ~5%

Source: The Federation of Thai Industry (Automotive Industry) Unit: Million

The forecast of Thailand vehicle production volume for year 2016 is expected at around 1.9 - 2.0 million units, of which local/export ratio is expected around 40:60.

Global Financial Crisis Tsunami & Flood First car campaign

Finance Strategy

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Profita- bility Liquidity Equity

Maximize shareholder value

Shareholder portfolio and generate return to shareholders Portfolio diversification Cash flow management Improve profitability through margin management

Business Strategy

To be a leading automobile parts manufacturer in Asia, a Thailand footprint for world-class global manufacturer.

ASIA EUROPE

AMERICA

JAPAN

CHINA INDIA

THAILAND MALAYSIA PHILLIPPINES INDONESIA

Emerging Business Opportunity

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Core e Busine ness

• Auto part

Manufacturer

• Car Dealership

Emerging ing Op Oppor

• rtuni

unities ties

• Primary Service.
• Profit per distance

travelled.

• Million of small

transactions.

CUSTOMER EXPERIENCE

Key Business Strategy

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Core re Busi siness ness Emer ergi ging ng Opportunitie tunities

• Profitable Growth
• Focus on our strength
• Mobility Leader
• Fleet Management
• Connectivity
• Electric Vehicle

Core Pillars of AAPICO Business

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Auto Part Manufacture Car Dealerships IOT Connectivity & Mobility Business

Disclaimer

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Some statements made in this material are forward-looking statements with the relevant assumptions, which are subjected to various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs and other statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words. The statements are based on our management’s assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking

• statements. Please note that the company and executives/staffs do not control and cannot guarantee the relevance,

timeliness, or accuracy of these statements. AAPICO HITECH PLC ir@aapico.com Tel: 66 (0) 2613-1504