AAPICO HITECH PLC [AH]
FY2017 Performance & Business Update
Opportunity Day March 13, 2018 The Stock Exchange of Thailand
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
Opportunity Day March 13, 2018 The Stock Exchange of Thailand
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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
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,
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
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
for such purpose. The presentation should not be construed as legal, tax, investment or other advise. ir@aapico.com | +66-(0)-2613-1504
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AAPICO HITECH PUBLIC COMPANY LIMITED
Car Dealerships and Car Navigation.
10 associates).
million, comprising of 322,583,844 ordinary shares at par value of Baht 1 each.
Industry/Sector : Auto Current price : Baht 33.00* 52 weeks range : Baht 15.60 – 38.25 Market Cap : Baht 10,645 million P/E (YTD) : 11.30* P/BV : 1.59* Dividend yield : 2.00%** TRIS / CG Rating : BBB+ /
* Data as of February 28, 2018 ** Dividend yield is calculated based on current share price
6 Data from Share Register Book as of August 31, 2017 Sojitz Corp. 15.76% AH; 1.86% NVDR; 9.25% Institution - Foreign 2.34% Institution - Thai 7.25% Individual - Thai 25.20% Individual - Foreign 0.09% Yeap Family 38.24%
AH Shareholding Structure
AH’s main shareholders are Yeap Swee Chuan and family holding 38.24% of total capital and Sojitz Corporation holding 15.76% of total capital.
4,710 4,452 3,387 5,161 11,129 2013 2014 2015 2016 2017*
Market Capitalization +136%
*Based on share price as of December 29, 2017
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Present & CEO Executive Director
Independent Director Audit Committee Ex ING Head of Research
Executive Director
Independent Director Chairman of Audit Committee Lawyer
Independent Director Chairman of Risk Committee Ex Chairman of Ford Asia Pacific
Independent Director Audit Committee Ex CEO of AIS
Independent Director Risk Committee Chairman of TIA
Independent Director Audit Committee Ex President of TATA Capital
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Where do we want to go? How do we want people to remember us?
MANUFACTURING RESEARCH & DEVELOPMENT CAR RETAILING
TO BECOME A LEAN, GREEN, HAPPY, DIGITAL WORLD-CLASS CORPORATION
(Focus Digital)
and Country
Responsibility
Happy Employees Happy Shareholders Happy Public Happy Customers AAPICO Key Fundamental Values
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Auto Part Manufacture Car Dealerships IOT Connectivity & Mobility Business
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Manufacture of Auto Parts
(Thailand & China)
Car Dealerships
(Thailand & Malaysia)
Technology
(Thailand) ~62% of total revenue ~38% of total revenue <1% of total revenue
Thailand Malaysia
Stamping & Assemblies Forging & Machining Plastic Jigs and Dies
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Thailand 70% Malaysia 26% China 4%
2017
Sales by Country
CHINA
Kunshan Production: Connecting rods and Copper Forging
MALAYSIA
Kajang & Petaling Jaya Car dealers: Honda car
THAILAND
Ayutthaya, Chonburi, Rayong, Samutprakarn
Hitech Industrial Estate
Production: Stamping parts and Stamping Dies & Jigs
Amata Nakorn Industrial Estate
Production: Stamping & Chassis Frames and Forging & Machining Parts
Bangpli Industrial Estate
Production: Plastic Parts
Amata City Industrial Estate
Production: Stamping Parts Plastic Washers & Fuel Tanks
Mitsubishi Dealers
Navanakorn & Ramindra
Ford Dealers
Samutprakarn & Ladprao
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Isuzu 40%
AAT* 15% Nissan 7%
FORD 4% GKN 4% AAM 4% TOYOTA 3%
Others- Parts 23%
2017 Top OEM Customer Profile
*Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.
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Technical Partners
Strategic Partner
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312 271 254 266 276 264 302 288 188 207 219 191 200 192 214 213
507 487 483 468 486 465 527 511
200 300 400 500 600
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Pick-Up/PPV Passenger Others Domestic Sales Export Sales
1,103 1,130 812 827
1,944 1,989 2016 2017
Total Car Production by Quarter
Jan-Dec Car Production 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.
‘000 Units
Source: The Federation of Thai Industry (Automotive Industry)
+2.3% yoy
394 424 280 346
95 101
769 872 2016 2017
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Domestic Car Sales by Quarter
Jan-Dec Domestic Sales
+13.4% yoy
99 93 90 111 107 94 102 121 58 71 75 76 80 81 83 102
24 23 23 25 23 24 25 28
182 187 188 212 210 199 211 251
200 300
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1-Ton Pick-Up/PPV Passenger cars Other vehicles
‘000 Units
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)
17 50 100 150 200 250 Toyota Isuzu Honda Mitsubishi Nissan Ford Mazda Suzuki Chevrolet Benz Hyundai
Unit: Thousands
2016 2017
Domestic Car Sales by Brand
+12% +19% +26% +40% +37% +21% +9% +26% +21% +30% 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
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Export Volume by Quarter
Jan-Dec Export Volume
1,189 1,140 2016 2017 308 287 306 288 284 252 314 290
200 300 400
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Export Volume
yoy
Export sales volume dropped by 4.1% yoy, due to weak demand in major export markets.
Source: The Federation of Thai Industry (Automotive Industry)
‘000 Units
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line with industry growth, interest income from SGAH and gains on sale of equity investments in SG.
and cost reduction measures.
and expenses related to SGAH Investment.
Hyundai, Able Sanoh, and SGAH.
improved efficiency, increased earnings and SGAH
3.8% to 7.1% of sales, hence improving ROE and ROA.
FY 2017 Results
In Million Baht
2016 2017 Revenues
Growth%
15,139
+1.0%
16,642
+9.9%
Gross Profit
GP Margin (%)
875
5.9%
998
6.3%
SG&A 780 928 Associate 225 488 Interest & Tax 158 180 Net Profit
NP Margin (%)
570
3.8%
1,182
7.1%
ROE (%) 9.3% 17.6% ROA (%) 5.0% 9.2% D/E (x) 0.40 0.69
15,139 16,642
2016 2017
Jan-Dec Revenues
22 3,910 3,681 3,619 3,929 3,946 3,903 4,284 4,509
2,000 3,000 4,000 5,000 6,000 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Total Revenues by quarter
Auto parts Car dealers Non-op income
and dealerships, in line with industry growth.
equity investments in Singapore and THB191 million of interest from loan to SGAH.
THB million
+9.9% yoy
Auto parts 61% Car dealers 37% Non-op income 2%
2017
23 5.5% 5.0% 3.7% 2.7% 8.3% 4.9% 3.5% 5.6%
2,000 3,000 4,000 5,000 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Sales and EBIT by quarter
Thailand China EBIT% 9,313 9,699 4.3% 5.6%
2016 2017
Jan-Dec Sales & EBIT
in line with industry growth. EBIT margin improved from 4.3% to 5.6%
SGAH and one-off expenses related to new projects.
THB million
+4.1% yoy
TH 93% CN 7%
2017
24 2.3% 2.2% 1.8% 1.9% 1.3% 1.3% 1.2% 1.3%
2,000 3,000 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Sales and EBIT by quarter
Thailand Malaysia EBIT% 5,386 6,068 2.0% 1.3%
2016 2017
Jan-Dec Sales & EBIT
and higher sales in Thailand, driven by increased domestic demands. EBIT margin dropped from 2.0% to 1.3% of sales, due to high competition in domestic market.
THB million
12.7% yoy TH 34% MY 66%
2017
25 347 321 286 272 321 451 339 396
400 600 800 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: in Million Baht
EBIT Depreciation 1,226 1,507
2016 2017
EBIT Depreciation 3.9% 2.7% 2.4% 3.9% 7.5% 4.3% 5.5% 8.7% 7.9% 6.9% 8.1% 11.6% 7.9% 8.8% 0% 5% 10% 15%
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: as % of revenue
EBIT% EBITDA% 3.3% 5.3% 8.1% 9.1%
2016 2017
EBIT% EBITDA% 22.9% yoy
26 156 133 132 149 228 323 248 383
200 300 400 500 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: in Million Baht
Profit from operations Associate income 570 1,182
2016 2017
Operations Associate 4.0% 3.6% 3.7% 3.8% 5.8% 8.3% 5.8% 8.5%
0% 5% 10% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: as % of revenue
Net Profit % 3.8% 7.1%
2016 2017
Net Profit % 107% yoy
27 5.8% 4.6% 4.9% 5.8% 6.6% 8.1% 8.4% 9.3% 10.2% 12.9% 14.7% 17.6%
0% 10% 20% 30% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: in percentage
ROE (In the Quarter) ROE (Seasonally adjusted)
R O E R O A
2.7% 2.2% 2.4% 2.9% 3.3% 4.1% 4.4% 5.0% 5.5% 6.3% 7.3% 9.1%
0% 5% 10% 15% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: in percentage
ROA (In the Quarter) ROA (Seasonally adjusted)
28 2.8 2.5 2.7 3.1 3.6 4.5 4.8 5.6 6.4 8.1 8.4 9.2
0.0 4.0 8.0 12.0 16.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: times
Interest Coverage Ratio (In the Quarter) Interest Coverage Ratio (Seasonally adjusted)
I C R Debt / EBITDA
3.4 3.6 3.2 3.1 2.8 2.6 2.5 2.4 2.2 3.2 2.9 2.5
0.0 2.0 4.0 6.0 8.0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Unit: times
Debt to EBITDA (In the Quarter) Debt to EBITDA (Seasonally adjusted)
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0.69x, in line with the Company’s target of less than 1.00x.
2017 was 0.99x, which was also below the financial covenant target of less than 2.00x.
ST Loan 10% CPLTD 33% LT Loan 45% LT Bond 12%
Interest-bearing Debt
Interest-bearing debts as
billion, of which mainly related to SGAH investment.
1.07 0.85 0.67 0.55 0.40 0.36 0.81 0.78 0.69 1.74 1.26 1.07 0.87 0.74 0.71 1.12 1.10 0.99
0.0 0.5 1.0 1.5 2.0 0.0 2.0 4.0 6.0 8.0 2012 2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17 Unit: in Billion Baht
Debts Equity D/E (L-C)/E
30 29/12/2017 34.50 30/12/2016 16.00 5/1/2016 9.15 5 10 15 20 25 30 35 40 45
29/12/2017 15/12/2017 29/11/2017 15/11/2017 1/11/2017 16/10/2017 29/9/2017 15/9/2017 1/9/2017 18/8/2017 3/8/2017 19/7/2017 4/7/2017 20/6/2017 6/6/2017 23/5/2017 8/5/2017 21/4/2017 4/4/2017 21/3/2017 7/3/2017 21/2/2017 6/2/2017 23/1/2017 9/1/2017 22/12/2016 7/12/2016 22/11/2016 8/11/2016 25/10/2016 10/10/2016 26/09/2016 9/12/2016 29/08/2016 15/08/2016 29/07/2016 13/07/2016 28/06/2016 14/06/2016 31/05/2016 16/05/2016 27/04/2016 8/4/2016 24/03/2016 10/3/2016 25/2/2016 10/2/2016 27/1/2016 13/1/2016
+277%
AH Share price (in Baht)
AH Ranked No.6 among the Top 10 of the highest share price growth in 2017.
31 0.49 0.30 0.30 0.66 1.20** 2.3% 2.0% 2.2% 5.3% 5.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40
2013 2014 2015 2016 2017
History of Dividend Payment
Dividend per share (DPS) Dividend Yield*
Dividend Policy
The Company has set a policy to pay dividend of not less than 10% of net profit after taxes. However, the decision for dividend payment is subjected to future investment plans and
the Company deems appropriate.
* Dividend Yield is calculated based on average share price in the period. ** Dividend per share (DPS) for 2017 is subjected to shareholders’ approval at AGM 2018.
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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 1.91 1.94 1.99
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 …. Production Forecast Domestic Export
Unit: Million
2.3%
In the past 4 years, Thailand Car Industry showed no growth. Total car production in 2017 grew by 2.3% yoy to 1.988 million units.
Global Financial Crisis Flood First car campaign
Source: The Federation of Thai Industry (Automotive Industry)
2018 target to reach 2.0-2.1 million units.
0.6%
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USA 16 Million CHINA 30 Million EUROPE 17 Million
OTHERS 20 Million
Thailand Volume 2 Million
Major OEM Brands in Thailand Global Opportunities
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CHINA INDIA EUROPE USA JAPAN THAILAND MALAYSIA
36 Detroit, USA Durango, México Coimbatore/Erode, India Rushan, China Porto, Portugal Thailand Malaysia Singapore Kunshan, China London, UK AAPICO Facilities Sakthi Facilities Other JV partners
Japan Taiwan Germany
New York, USA
Reasonable return to shareholders Improve profitability through cost management
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Finance management Cash flow management
4.9% 5.9% 6.3% 2.3% 3.8% 7.1%
2015 2016 2017
Profitability Trend
GP% NP%
0.97 1.70 3.66 0.30 0.66 1.20 30.9% 38.9% 32.8%
2015 2016 2017
Dividend Payment
EPS DPS % Payout
3.28 2.52 3.54 0.80 1.10 1.40
2015 2016 2017
Debt Profile
Bank Bond
Maximize shareholder value
927 1,214 1,208 273 167 173
2015 2016 2017
Cash flow
Cash from operations Capex
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The 1st Thai listed company having a global footprint to expand through strategic partnership with Sakthi, a strong Indian company with footprints in India, Portugal, USA, China and Mexico. A professionally managed company with good corporate governance and integrity. An independent and competent board to guide and provide good strategy. A strong family company in strong partnership with other strong family companies in India, Japan, Spain, Portugal, and China. Ability to combine with its global partners and make larger strategic acquisitions. Many strong global JV partners and successful operations in Thailand. The only listed company in the auto sector to issue bond with a BBB+ rating. A top Tier 1 automotive supplier in Thailand with proven record of good Quality, Cost, and Delivery. Ability to win more business when a new model is being introduced by the OEMs. A strong financial planning company.
Basically AAPICO has stable sales volume with steady future growth.
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100 200 300 400 500 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28
Global Financial Crisis Flood First car campaign
Unit: ‘000
Previous model Current model New model
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11,116 4,029 631
Thailand Malaysia China
Sales by Country
(Unit : Million Baht) 2015 2016 2017 2018
9,699 6,068
Auto Parts Car Dealers
Sales by Segment
(Unit : Million Baht) 2015 2016 2017 2018
Improvements are expected in all core pillars of our businesses.