HTECH 2016 Year-End Mar17 2 Halcyon Timeline HM established for - PowerPoint PPT Presentation

Skip to Performance Halcyon Technology PLC. “HTECH” 2016 Year-End Mar’17

2 Halcyon Timeline HM established for manufacturing of metal fabricated products – jigs & fixtures, etc. HT established for new segment of PCD cutting tools Came out with PCD hollow tools – changed the HDD world 1993 2002 2005 2008 HT went public; IPO under symbol “HTECH”

3 Halcyon Timeline 2 nd factory established in Philippines (HP) FDM acquired – reinforce standard tool segment HI (Indonesia) established through FDM 2013 2014 2016 2010 2012 HS & HY established as distributing offices HV established with offices in HCMC & Hanoi HTECH invests in new factory & machines Heng (new subsidiary in Rayong)

4 Halcyon in ASEAN Market Manufacture Halcyon Technology Halcyon Technology Public Co., Ltd. (Philippines) Inc. (HP) Distributor (HTECH) since 2010 In Process since 2002 HTECH holds 65% Halcyon Metal Co., Ltd. ATEK Precision Tools (HM) (ATEK) since 1993 since 2011 HTECH holds 100% HP holds 100% FDM Technology Co., Ltd. Halcyon Technology (FDM) (M) Sdn. Bhd. (HY) since 2002 since 2013 HTECH holds 60% (2012) HTECH holds 60% Halcyon Tools and Halcyon Technology Engineering Co., Ltd. (Singapore) Pte. Ltd. (HS) (Heng) since 2016 since 2013 FDM holds 90% HTECH holds 70% Halcyon Technology PT HTECH Tools Indonesia Vietnam Co., Ltd. (HV) (HI) since 2014 since 2012 HTECH holds 85% FDM holds 60%

5 Halcyon Group Performance 1,000 HT Subsidiaries 900 826 800 724 701 700 576 600 THB Million 535 500 420 367 400 300 245 200 100 - 2009 2010 2011 2012 2013 2014 2015 2016

Halcyon Products

7 Cutting Tool Types Carbide PCD Applications: cutting non-ferrous Applications: materials General purpose cutting Materials: Materials: aluminum, brass, copper, Steel, aluminum, plastic, abrasive materials, wood, wood, etc. acrylic, etc. Industry: Industry: Used in most industries HDD, Aerospace, Automotive, medical, jewelry, etc. PCBN Monocrystal Applications: Applications: super-finishing and cutting super-hard materials critical applications Materials: Materials: cast iron, hardened mat. brass, copper, aluminum, acrylic (>50 HRc) , sintered mat. Industry: Industry: Lens, Jewelry, Automotive, Watch, Automotive machinery parts

8 High-end Products (Version 2015) Veined PCD Endmills Solid-headed PCD Tools (V-Tec) (S-Tec) Features: Veined PCD cutting Features: Solid PCD tip allows for edge reduces cycle time and more flexible helix angle, better chip extends tool life evacuation, and longer tool life; can be regrinded multiple times Applications: suitable for composite materials such as CFRP used in Aerospace industry and other vehicles

9 High-end Products (Version 2016) Helix PCD Tools (H-Tec) Target Industries: HDD, Automotive, Lens, etc. Features: • Tested by customers and proven better tool life, better finishing, reducing cycle time by 35-50% • Market Leader in SE Asia • Can reduce more cost than normal Solid PCD tools • More flexibilities in designs

10 2016 Performance & Financial Highlights Consolidated HTECH Group Performance

11 Consolidated Performance (Q) * Net Profit of HTECH shareholders only ** Conso. Total Revenue 250 200 150 100 50 - Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 HT HM HC FDM HENG HP HS HYK HI HV Gross Profit Net Profit*

12 Consolidated Performance (Y) * Net Profit of HTECH shareholders only ** Conso. Total Revenue FDM acquired & 900 826 Heng & HI&HV (+14%) new factory 800 HC closed HS&HY 724 700 600 500 400 39% 300 34% 200 14% 9% 100 - 2012 2013 2014 2015 2016 HT HM HC FDM Heng HP HS HY HI HV Gross Profit Net Profit*

13 HT Performance 400 353 (+8%) 350 301 300 Dividend 250 THB Million Net Profit (exc. dividend) 200 Gross Profit 150 131 Sales 100 85 84 45 50 - 2012 2013 2014 2015 2016

14 Revenue Breakdown 2 014 2 015 2 016 THB 701.00 mill. THB 724.33 mill. THB 826.20 mill. Overseas Thailand Overseas Thailand Overseas Thailand 44% 56% 43% 57% 44% 56%

15 HT – Sales by Sector 3% 4% 3% 100% 5% 7% 8% 4% 9% 16% 16% 90% 27% 20% 80% 23% 31% 70% 27% 28% Trading 60% Other 50% Auto 40% 72% HDD 69% 66% 30% 56% 54% 52% 20% 10% 0% 2011 2012 2013 2014 2015 2016

Financial Highlights Consolidated as of 31/12/16

17 Capital Structure 1,400 1,277 1,200 1,023 1,023 966 1,000 913 THB million 764 800 633 590 600 400 258 259 258 253 200 - 2013 2014 2015 2016 Assets Liabilities Shareholder's Equity

18 Debt to Equity Ratio 160 0.6 144 143 141 140 0.55 120 0.5 D/E Ratio (times) 0.44 95 100 0.45 THB Million 80 0.4 0.37 0.34 60 0.35 0.28 40 0.3 20 0.25 0 0.2 2013 2014 2015 2016 Interest-bearing Debt D/E Ratio

19 Current Ratio 2.87 3.00 2.50 2.12 1.88 1.74 2.00 Times 1.50 1.00 0.50 0.00 2013 2014 2015 2016

20 Profitability 350 45% 40% 322 300 35% 250 249 30% 242 THB million % Margin 200 25% 195 20% 150 15% 118 100 10% 68 50 63 5% 50 0 0% 2013 2014 2015 2016 Gross Profit Net Profit (HTECH's shareholders) Gross Margin Net Margin

21 Dividend Payouts HTECH Dividend Policy: payout no less than 40% of net margin Dividend per Performance Period Payout Date Share (THB) Jan. – June 2014 9/9/14 0.045 July – Dec. 2014 8/5/14 0.065 Jan. – June 2015 9/9/15 0.045 July – Dec. 2015 10/5/16 0.055 Jan. – June 2016 9/9/16 0.065 July – Dec. 2016 23/5/17 0.11* * Subject to AGM approval on April 25, 2017

New Factory Buildings

23 HT New Factory Building 3-storey factory on site adjacent to • current building Expected Finish Date: 31/05/17 Q3’17 • Full production expected by Q4’17 • Focus on production of high-end products • Increase capacity by 10-15% from 2016 •

24 HV New Factory Building Located in Hanoi • 2-storey warehouse – HV rents 1 st floor • Started renovation in Q1’17 • Production expected by Q2’17 • Main customers in automotive industry •

Thank You  Q&A Session

Contact Us HALCYON HEAD OFFICE 41 Moo 14 Bangchan Industrial Est. Soi 6, Serithai 58, Minburi, Bangkok 10510 GPS Coordinates: 13.799211,100.707114 Tel: +66(0)2 906 3242-50 / Fax: +66(0)2 906 3251 e-mail: info@halcyon.co.th www.halcyon.co.th