AAPICO HITECH PLC [AH] Mr. Yeap Swee Chuan SET Opportunity Day - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH] Mr. Yeap Swee Chuan SET Opportunity Day March 9, 2016

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

Company Profile

AAPICO HITECH PLC [AH] 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. • Locations : Thailand, Malaysia and China. Industry/Sector : Auto Current price : Baht 10.50 • Comprising of 38 companies (28 subsidiaries and 10 52 weeks range : Baht 9.15 – 15.80 associates). Market Cap : Baht 3,387 million P/E (YTD) : 12.50* • Registered and paid-up capital of Baht 322.58 million, P/BV : 0.58x* comprised of 322,583,844 ordinary shares at par value of Dividend yield : 2.91%* Baht 1 each. * Data as of February 29, 2016 4

AH Shareholding Structure AH’s main shareholders are Yeap Swee Chuan Sojitz Corp. and family holding 39.83% of total outstanding 15.8% shares and Sojitz Corporation holding Yeap Family 15.76% of total outstanding shares. 39.8% Free- float 44.4% Thai institu- tions 15.4% Foreign Thai institu- 81.5% tions 3.0% Foreign 0.2% * Data as of January 11, 2016 5

AAPICO’s Vision Where do we want to go? How do we want people to remember us? MANUFACTURING LEAN, GREEN AND HAPPY RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING Happy y Custome mers Happy Emplo loyees es Happy Shareh rehold olders Happy y Publi lic • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company and • E : Engineering Country • M : Management • Loyalty and Honesty • Mutual Respect 6

Company Milestones 1985 85 200 005 2011 Started as Ford Assembler and Strategic partnership. Sojitz Corporation, Completed Honda 3S showroom in Malaysia. Distributor. Japan acquired 15% of Aapico shares. 2012 1995 200 006 Completed Kunshan new factory. Produced fuel tanks for Ford and Mazda Acquired 60% of Able ITS shares. Set up pick ups in Ayutthaya. AAPICO Hitech Parts in Ayutthaya. 2013 Establish 4 JVs with Lemtech (60%), Edscha (49%), 1997 2007 Sumino (49%), and Sodecia (50%) Established 1 st JV with Sanoh Japan and Acquired KPN and renamed AAPICO a factory in Hitech Industrial Estate, Forging in Chonburi and Bangplee. 2014 Ayutthaya. 200 008 Acquired 25% equity in Quantum Inventions, 200 002 Singapore. Established JV (40% equity) with Minth Listed on SET. Corporation, China. Set up Training Center in Nakornnayok. 200 003 200 009 2015 Acquired 100% of Dana Corp., USA Established AAPICO Structural Products in Reorganize non-core business activities. shares and renamed AAPICO Amata in Chonburi. Chonburi. 2010 200 004 Established JV (49% equity) with Takagi TURBO Expanded to China and acquired 100% Seiko, Japan. of Kunshan Chaitai-Xincheng Precision Forging. 7

Business Segment • Stamping Parts • Assemblies • Jigs Forging • Dies Machining AAPICO GROUP Navigation Data Analytics Plastic Telematics Car Dealerships 8

Country of Operations THAI HAILA LAND ND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn Productio ction: Stamping and Assemblies, Forging & Machining, Thailand Malaysia China Plastic, Jigs & Dies, Dealerships, and Car Navigation 2015 4% 2015 2014 23% 5% Malaysia 2014 2013 Kajang & Petaling Jaya 26% 6% 2013 Car dealer lers: Honda car 17% 2013 77% CHINA A 2014 69% Kunshan 2015 Productio ction: 73% Connecting rods and Copper Forging 9

Locations in Thailand Amat ata a Nako korn rn Indu dustria rial l Estate Prod oduct ucts : Chassis Frames, Forged Hitec ech Indu dustr trial ial Estat ate and machined parts. Ayutthaya Prod oduct ucts : Stamping Dies, Jigs, Stamping parts, and Car navigation Bangkok Chonburi Samutprakan Rayong Amat ata a City y Indus ustr trial ial Estat ate Product oducts : Stamping parts and Mitsubishi Dealers : Plastic parts Ramindra Navanakorn Bangp gplee lee Indus ustr tria ial l Estate Ford Dealers : Prod oduct ucts : Plastic parts Ladprao Samutprakarn 10

Our OEM Customers Top OEM Customer Profile Others-Parts 27% Others-Parts Isuzu 26% 42% Isuzu Toyota; 3% 45% AAM SGMW; 4% 3% Nissan AAT 8% 14% Toyota; 4% Nissan 8% AAT* 16% *Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. ** SAIC-GM-Wulling Automobile – a JV between SAIC, GM and Liuzhou Wuling, based in China 11

Our Partners Joint Ventures Strategic Shareholder Technical Partners 12

Achievements in 2015 13

Achievements in 2015 Q1 Award for Aapico Plastics PLC AAT 14

Achievements in 2015 TPS “ The Winner” QA Improvement Advance Group “1 st Runner Up” Aapico Hitech PLC Aapico Hitech PLC TMAP-EM TMAP-EM 15

Achievements in 2015 Honda CEO Award 2015 Aapico China To awarded “Outstanding TSR & NESM Malaysia Contribution Supplier” CFME 16

Thailand Automotive Industry Update

Thailand Vehicle Production 2015 Thailand Total Vehicle Production grew by 1.8% year-on-year, from 1,880,007 units in 2014 to 1,913,002 units, with 2.4% growth in passenger car production and 0.1% growth in pick-up car production. 1-Ton Pick-up/PPV Passenger car Others Unit: Million 3.0 First car campaign +1.8% 2.5 Tsunami & 1.0 1.1 Global Flood 2.0 Financial Crisis 0.8 0.7 1.5 0.6 1.5 0.5 0.4 1.3 0.3 1.0 0.3 0.3 1.1 1.1 1.1 1.0 0.3 0.9 0.3 0.9 0.9 0.8 0.3 0.7 0.5 0.2 0.6 0.2 0.5 0.4 0.3 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: The Federation of Thai Industry (Automotive Industry) 18

Domestic and Export Volume Offsetting the 9.3% decline of Domestic Sales , from 881,832 units in 2014 to 799,632 units , Export volume grew by 6.8% year on-year, from 1,128,102 units in 2014 to 1,204,895 units in 2015. Total Industry Volume Export Volume Unit: Million First car campaign 1.6 +6.8 .8% 1.4 1.4 1.3 Tsunami & Global Flood 1.2 1.2 Financial 1.1 1.1 Crisis 1.0 1.0 0.8 0.9 0.9 0.8 0.8 0.8 0.7 0.7 0.7 0.8 0.7 0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.6 -9.3 .3% 0.4 0.4 0.4 0.3 0.3 0.2 0.2 0.2 0.2 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: The Federation of Thai Industry (Automotive Industry) 19

Q4 Thailand Vehicle Production In Q4’15, Thailand Total Vehicle Production was at 481,243 units, a 3.1% decrease compared to Q3’15 but was 2.1% higher than Q4’14. 1-Ton Pick-up/PPV Passenger car Others Unit: Million +2.1% 0.8 yoy 0.3 0.3 -3.1% 0.3 qoq 0.6 0.3 0.3 0.2 0.2 0.2 0.2 0.1 0.2 0.2 0.2 0.2 0.4 0.2 0.2 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Source: The Federation of Thai Industry (Automotive Industry) 20

Q4 Total Industry Volume In Q4’15, Total Industry Volume (TIV) was at 245,800 units, which was 33.1% higher than Q3’15 and 5.3% higher than Q4’14. 1-Ton Pick-up/PPV Passenger car Others Unit: Million 0.5 +5.3% yoy 0.4 0.22 +33% 0.20 0.19 qoq 0.3 0.16 0.15 0.13 0.15 0.10 0.2 0.08 0.10 0.09 0.09 0.09 0.19 0.18 0.18 0.08 0.07 0.16 0.15 0.15 0.07 0.14 0.13 0.1 0.12 0.11 0.11 0.10 0.10 0.10 0.09 0.08 0.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Source: The Federation of Thai Industry (Automotive Industry) 21

Q4 Export Volume In Q4’15, Export Volume was at 299,529 units, a 9.0% decrease compared to Q3’15 but was 3.6% higher than Q4’14. +3.6% Export Units Unit: Million yoy 0.4 -9.0% qoq 0.33 0.33 0.3 0.31 0.30 0.29 0.29 0.29 0.28 0.28 0.28 0.28 0.27 0.25 0.25 0.24 0.22 0.2 0.1 0.0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Source: The Federation of Thai Industry (Automotive Industry) 22

Financial Performance For the year 2015

Financial Highlights FY2015 Results 2013 2014 2015 In Million Baht Revenues 16,998 15,196 14,993 • Revenues s were 1.3% lower than 2014, mainly due to Growth% +1.1% -10.6% -1.3% weaker currency and lower scrap income. Gross Profit 1,075 608 714 • Gross s profit margin n improved yoy, from 4.2% to 4.9% of GM% 6.9% 4.2% 4.9% sales, thanks to tooling income and efficiency improvement. SG&A 859 744 787 • SG&A costs increased, due to loss on currency and Associate 246 129 148 increased level of fixed costs. Int. & Tax 347 231 197 • Assoc ociat ate income ome increased, driven by better results from ASICO and QI, partly offset lower profit from Net Profit 634 386 338 Hyundai and TTSC. NP% 3.7% 2.5% 2.3% • Net profit margin n of the company decreased from 2.5% ROE (%) 12.2% 6.9% 5.8% to 2.3%, largely due to lower revenues. ROA (%) 4.8% 3.1% 2.9% D/E (x) 0.85 0.67 0.55