AAPICO HITECH PLC [AH] FY2017 Performance & Business Update - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH] FY2017 Performance & Business Update Opportunity Day March 13, 2018 The Stock Exchange of Thailand

Disclaimer The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO. Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management 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. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advise. ir@aapico.com | +66-(0)-2613-1504 2

Today’s Agenda 1. Company Information 2. Automotive Industry Updates 3. Financial Performance 4. Strategy & Direction 3

Company Information

AAPICO HITECH PLC [AH] AAPICO HITECH PUBLIC COMPANY LIMITED 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. Industry/Sector : Auto • Current price : Baht 33.00* 52 weeks range : Baht 15.60 – 38.25 Comprising of 36 companies (26 subsidiaries and • Market Cap : Baht 10,645 million 10 associates). P/E (YTD) : 11.30* P/BV : 1.59* Registered and paid-up capital of Baht 322.58 • Dividend yield : 2.00%** million, comprising of 322,583,844 ordinary shares TRIS / CG Rating : BBB+ / at par value of Baht 1 each. * Data as of February 28, 2018 ** Dividend yield is calculated based on current share price 5

AH Shareholding Structure AH’s main shareholders are Yeap Swee Chuan and Market Capitalization family holding 38.24% of total capital and Sojitz Corporation holding 15.76% of total capital. Sojitz Corp. 11,129 +136% 15.76% AH; 1.86% Yeap Family NVDR; 9.25% 38.24% Institution - Foreign 2.34% 5,161 4,710 Individual - 4,452 Institution - Thai Thai 3,387 7.25% 25.20% Individual - Foreign AH Shareholding Structure 0.09% 2013 2014 2015 2016 2017* Data from Share Register Book as of *Based on share price as of December 29, 2017 August 31, 2017 6

AH Board of Directors Mr. Yeap Swee Chuan Mr. John Parker Mrs. Teo Lee Ngo Mr. Pipat R. Punya Present & CEO Independent Director Executive Director Independent Director Executive Director Chairman of Risk Committee Chairman of Audit Committee Lawyer Ex Chairman of Ford Asia Pacific Mr. Kenneth Ng Mr. Kai Taraporevala Mr. Wichian Mektrakarn Mrs. Vachira Na Ranong Independent Director Independent Director Independent Director Independent Director Audit Committee Audit Committee Audit Committee Risk Committee Ex ING Head of Research Ex President of TATA Capital Ex CEO of AIS Chairman of TIA 7

AAPICO’s Vision Where do we want to go? How do we want people to remember us? TO BECOME A MANUFACTURING LEAN , GREEN, HAPPY , DIGITAL RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING AAPICO Key Fundamental Values Happy Customers Happy Employees Happy Shareholders Happy Public • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company • E : Engineering and Country • M : Management • Loyalty and Honesty • Mutual Respect (Focus Digital) 8

Core Pillars of AAPICO Business IOT Auto Part Car Connectivity Manufacture Dealerships & Mobility Business 9

Business Segments Car Dealerships Manufacture of Auto Parts Technology (Thailand & China) (Thailand) (Thailand & Malaysia) Stamping & Assemblies Thailand Forging & Machining Malaysia Plastic Jigs and Dies <1% of total ~62% of total revenue ~38% of total revenue revenue 10

Countries of Operations THAILAND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn CHINA Amata Nakorn Industrial Estate Kunshan Hitech Industrial Estate Production: Stamping & Chassis Frames Production: Stamping parts Production: Connecting rods and Forging & Machining Parts and Stamping Dies & Jigs and Copper Forging China 4% Bangpli Industrial Estate Malaysia Production: Plastic Parts 26% 2017 Amata City Industrial Estate Thailand Production: Stamping Parts 70% Plastic Washers & Fuel Tanks Mitsubishi Dealers Navanakorn & Ramindra MALAYSIA Ford Dealers Kajang & Petaling Jaya Samutprakarn & Ladprao Car dealers: Honda car 11

OEM Customers Top OEM Customer Profile Others- Parts 23% Isuzu 40% TOYOTA 2017 3% AAM 4% GKN 4% Nissan AAT* FORD 7% 15% 4% *Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 12

Our Partners Joint Ventures Strategic Partner Technical Partners 13

Thailand Automotive Industry

Thailand Car Production Volume Total Car Production by Quarter Jan-Dec Car Production Pick-Up/PPV Passenger Others Domestic Sales Export Sales +2.3% yoy ‘000 Units 600 527 511 507 487 483 486 1,989 468 1,944 465 500 188 214 400 213 200 207 827 219 191 812 192 300 200 312 302 288 276 271 266 1,103 1,130 264 254 100 - 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017 Total car production volume in 2017 grew by 2.3% year-on-year to 1,988,823 units. Growth in domestic market was partly offset with export volume declines. Source: The Federation of Thai Industry (Automotive Industry) 15

Domestic Car Sales Volume Domestic Car Sales by Quarter Jan-Dec Domestic Sales 1-Ton Pick-Up/PPV Passenger cars Other vehicles +13.4% yoy ‘000 Units 300 872 251 769 101 212 210 211 28 199 187 188 95 182 200 25 23 25 24 346 23 23 102 24 280 76 80 83 81 58 71 75 100 424 121 394 111 107 99 102 93 94 90 - 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 2016 2017 Domestic sales grew year-on-year by 13.4%, driven mainly by the recovering economy, increased spending, as well as introduction of new models. Source: The Federation of Thai Industry (Automotive Industry) 16

Domestic Car Sales by Brand Domestic Car Sales by Brand 2016 2017 Unit: Thousands +12% +19% +21% +9% -2.0% +26% +40% +37% +26% +21% +30% 250 200 150 100 50 0 Toyota Isuzu Honda Mitsubishi Nissan Ford Mazda Suzuki Chevrolet Benz Hyundai 2017 1 2 3 4 5 6 7 8 9 10 14 2016 1 2 3 4 5 7 6 8 9 10 14 Source: Toyota 17