Opportunity day March 11 th 2011 KCE at a Glance Ranked #3 in the - - PowerPoint PPT Presentation

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Opportunity day March 11 th 2011 KCE at a Glance Ranked #3 in the - - PowerPoint PPT Presentation

Dec 07, 2023 227 likes •595 views

Opportunity day March 11 th 2011 KCE at a Glance Ranked #3 in the World Automotive PCB maker Leading supplier of Printed Circuit Boards - specialize in auto PCB Largest State-of the-art mass production facility in Southeast

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SLIDE 1

Opportunity day

March 11th2011

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SLIDE 2

KCE at a Glance

  • Ranked #3 in the World – Automotive PCB maker
  • Leading supplier of Printed Circuit Boards - specialize in auto PCB
  • Largest State-of the-art mass production facility in Southeast Asia
  • Standard to complex PCB Technology capability
  • Average sales growth 20% Y-o-Y, over the past 5 year(2003-2007/8)
  • Most diversed customer portfolio in PCB industry – world’s top 20 Tier 1s
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SLIDE 3

Printed Circuit Board

  • A device to wire electronic components
  • Tailor-made to fit customer’s design
  • Technology from single-sided to laser drilled multilayer boards
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SLIDE 4

Local to Global Milestones

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SLIDE 5

Company Structure

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SLIDE 6

Manufacturing Facilities

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SLIDE 7

Sales Office Location

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SLIDE 8

Financial

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SLIDE 9

Sales Revenue Growth

KCET PH- I 3,756 3,502 3,619 4,969 5,713 6,668 7,540 8,365 7,667 5,752 7,245 8,100 Y2000 Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011F

$95m. (+17.9%) $79m. (-16.1%) $84m. (+6.3%) $119m. (+41.3%) $142m. (+19.2%) $166m. (+16.6%) $199m. (+20.0%) $242m. (+21.6%) $232m. (-4.1%) $168m. (-27.5%) $270m. $229m.

KCET PH - II KCET PH - III GROUP Full cap. 1.75m.ft2 Global Crisis 4Q08 – 1H09 GROUP Full cap. 2.03m.ft2

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SLIDE 10

Financial highlights

Profitability ratios improved.

Y2007 Y2008 Y2009 Y2010 Bht/US

34.52 33.32 34.19 31.58

SALES REVENUE (MTHB) 8,365 7,667 5,752 7,245 (MUSD) 242 232 168 229 Gross profit 1,471 1,065 1,079 1,430 EBIT (Operating profit) 365 (28) 265 481 Net profit (loss) 257 (399) 171 535 EBITDA 913 519 854 1,079

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SLIDE 11

Financial Summary

8,365 7,667 5,752 7,245 1,471 1,065 1,079 1,430 257 (399) 171 535

  • 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 YR2007 YR2008 YR2009 YR2010 Sales revenue Gross Profit Net Profit (Loss)

YR2007 YR2008 YR2009 YR2010 SALES REVENUE (GROWTH Y-o-Y) Bt term 11%

  • 8%
  • 25%

26% GROSS PROFIT (% to sale) 17.6% 13.9% 18.8% 19.7% NET PROFIT (% to sale) 3.1%

  • 5.2%

3.0% 7.4% Baht/Mil.

In 2010, KCE achieved its best results on record. Net profit rose to Bt 535m, an increase of 212%

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SLIDE 12

QTR Performance - Group

1,628 1,730 1,858 1,894 1,972 1,522 341 426 453 405 362 209 124 162 181 161 165 27

  • 500

1,000 1,500 2,000 2,500 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTAL SALES GROSS PROFIT NET PROFIT 7,245 1,430 535

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000

Y2010 TOTAL SALES GROSS PROFIT

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 SALES REVENUES (GROWTH Q-o-Q) 26% 6% 7% 2% 4%

  • 23%

GROSS PROFIT (% to sale) 20.9% 24.7% 24.4% 21.4% 18.4% 13.8% NET PROFIT (% to sale) 7.6% 9.4% 9.7% 8.5% 8.4% 1.8% UTILIZATION % 91% 95% 87% 86% 87% 68% SCRAP rate % 5.0% 6.0% 6.0% 5.0% 5.7% 5.9% Baht/Mil.

20% 7.4%

$48 $52 $59 $57 $62 $51

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SLIDE 13

100 200 300 400 500 600 700 800 900 1000

Y2009 Y2010

Depre - KCEI Shutdown Depre.&Amortization Fixed Expenses Variable Selling expense Staff Cost

SG&A Expenses

Baht/Mil. Y2009 Y2010 % YoY Staff costs 185.65 230.52 24% Variable selling expenses 378.42 462.47 22% Fixed expenses 118.50 165.13 39%

  • Deprec. & Amortization

24.60 29.72 21% Deprec - KCEI Shutdown 51.04 0.00

  • 100%

758m 888m

  • In 2009, KCEI posted machine

depreciation of 51m to SG&A during plant shutdown.

  • In 2010, KCEI reopened and

incurred a full year SG&A expense of 99m.

  • Other increase was from the new
  • pening of Japan Sales office.

13% to Sales 12% to Sales

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SLIDE 14

Balance Sheet Structure

5,867 6,343 5,866 5,563 4,009 3,041 2,942 3,189

Current assets Non-current assets

2,710 2,310 2,479 2,645 887 752 1,457 1,245 6,280 6,323 4,872 4,863

Current Liabilities Non-current liabilities Equity

KCE Group 2007 - 2010 Figures in million Baht

Total net assets 9,877 9,385 8,808 8,753 Total net equity 9,877 9,385 8,808 8,753 and liabilities 2007 2007 2008 2009 2010 2010 2009 2008

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SLIDE 15

Liability Structure

Short Term Loans 4,461 3,265 3,169 Current portion of L-T Debts 467 455 503 A/P & Other Liabilities 1,395 1,152 1,191 L-T Loans/ Fin.Lease 752 1,457 1,245

UNIT : MTHB

6,108 6,329 7,074 S/T Loan L/T Loan

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SLIDE 16

Capital Structure

192 118 159 145 5207 5679 5177 4918 2710 2310 2479 2645 1.85 2.41 2.02 1.80

0.5 1 1.5 2 2.5 3

1000 2000 3000 4000 5000 6000 Y2007 Y2008 Y2009 Y2010 Cash and Current Investment Interest Bearing Debt Equity Net Interest Bearing Debt to Equity(time)

Key Ratios Y2007 Y2008 Y2009 Y2010 Net interest bearing debt to equity (times) 1.85 2.41 2.02 1.80 Total debt to equity (times) 2.64 3.06 2.55 2.31 Interest coverage (times) 1.24

  • 0.1

0.98 2.41 Baht/Mil.

NET DEBT

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SLIDE 17

Debt Analysis

ST LOANS 65% LT LOANS 30% CAPITAL LEASE 5%

Interest bearing debt

294 285 271 200 50 100 150 200 250 300 350 Y2007 Y2008 Y2009 Y2010

Finance Cost

Weighted avg Interest rate 5.7% 5.1% 4.5% 3.5%

Baht/Mil.

3,169m 1,488m 261m

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SLIDE 18

Operation and Sales

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SLIDE 19

Guidance

FY 2011

  • Revenue: ~US$270mil (+18%)
  • Gross Margin: ~22%-23% (2010 ~20%)
  • Reduce D/E
  • Net D/E: <1.4 times
  • Total D/E: <1.8 times
  • CAPEX: ~US$5mil
  • Reduce Copper price risk and Exchange rate risk using options
  • Increase complex PCBs
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SLIDE 20

QTR Performance - KCE Electronics

645 715 716 715 838 629 141 183 175 171 192 132 48 111 75 51 113 66

  • 100

200 300 400 500 600 700 800 900 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTAL SALES GROSS PROFIT NET PROFIT 2,898 670 305

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 Y2010 TOTAL SALES GROSS PROFIT NET PROFIT

23% 10.5%

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

  • 1. SALES REVENUES*1 (GROWTH Q-o-Q)

27% 11% 0% 0% 17%

  • 25%
  • 2. GROSS PROFIT (% to sale)

21.9% 25.7% 24.4% 23.9% 22.9% 21.0%

  • 3. NET PROFIT*2 (% to sale)

7.4% 15.5% 10.5% 7.1% 13.4% 10.5% UTILIZATION % 95% 101% 91% 89% 99% 82% Baht/Mil. Remark : *1 Excl Interco.Sales *2 Excl Dividend , Impairment SCRAP RATE % 4.2% 3.9% 4.8% 5.1% 4.6% 5.0%

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SLIDE 21

QTR Performance - KCE International

Baht/Mil.

36 42 235 317 299 219 4 (7) 44 44 33 10 (19) (31) 17 20 13 (7)

  • 50
  • 50

100 150 200 250 300 350 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTAL SALES GROSS PROFIT NET PROFIT 1,071 131 43

  • 200

400 600 800 1,000 1,200 Y2010

TOTAL SALES GROSS PROFIT NET PROFIT 4.0%

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

  • 1. SALES REVENUES(GROWTH Q-o-Q)

454% 35%

  • 6%
  • 27%
  • 2. GROSS PROFIT (% to sale)

18.7% 13.8% 11.0% 4.6%

  • 3. NET PROFIT *2(% to sale)

7.2% 6.4% 4.3%

  • 3.3%

UTILIZATION % 0% 0% 62% 87% 80% 63%

12%

Remark : *2 Excl Dividend SCRAP RATE % 2.7% 3.0% 2.9% 3.3%

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SLIDE 22

QTR Performance - KCE Technology

953 992 879 820 794 629 205 217 185 137 106 29 79 93 81 73 46 (17)

  • 200
  • 200

400 600 800 1,000 1,200

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTAL SALES GROSS PROFIT NET PROFIT

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

  • 1. SALES REVENUES*1 (GROWTH Q-o-Q)

28% 4%

  • 11%
  • 7%
  • 3%
  • 21%
  • 2. GROSS PROFIT (% to sale)

21.5% 21.9% 21.1% 16.8% 13.4% 4.6%

  • 3. NET PROFIT (% to sale)

8.3% 9.4% 9.2% 8.9% 5.8%

  • 2.7%

UTILIZATION % 89% 91% 82% 83% 82% 62%

Baht/Mil. *1 Excl Intercom ,Sales

3,122 458 183

  • 500

1,000 1,500 2,000 2,500 3,000 3,500 Y2010 TOTAL SALES GROSS PROFIT NET PROFIT

15% 5.9%

SCRAP RATE % 5.6% 7.4% 7.8% 6.7% 7.7% 7.9%

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SLIDE 23

Scrap

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SLIDE 24

Product Mix

(Value)

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SLIDE 25

SWOT Analysis

STRENGTH OPPORTUNITY WEAKNESS THREAT

Expand KCE presence in the automotive industry while moving more into high-technology PCB for local and overseas consumer market

  • Many auto PCB makers have merged or gone went out of

business during the crisis, while auto PCB demand is expected to exceed its 2008 peak

  • Growing demand and limited supply for HDI PCB as a result
  • f the global crisis
  • Growing demand for MLB and HDI PCB in Thailand
  • The future trend of the auto industry is shifting towards

hybrid and electric cars, which will drastically increase PCB demand

  • Higher operating costs than some

countries like China, India and Vietnam

  • Not fully vertically integrated
  • Constantly appreciating currency
  • High debt to equity
  • High turnover rate due to high labor

demand

  • Auto market is the first to slow down and

the last to recover during a crisis

  • More Chinese PCB makers may want to

enter the auto market since there are only a few Chinese auto PCB makers

  • 25 years of experience in PCB
  • Strong worldwide sales network
  • Own laminate supply
  • More than 20 years in auto PCB
  • Ranked 3rd in the world for auto PCB
  • SAP on all modules
  • Only HDI plant in Thailand
  • Own direct laser technology
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SLIDE 26

New Automotive Customers 2009

9 customers out of top 25 Automotive electronic suppliers were KCE customers (3 in top 10)

2010

The number of KCE customers in top 25 Automotive electronic suppliers increases to 14 (5 in top 10)

2011

The number of KCE customers in top 25 Automotive electronic suppliers will be at 18 (8 in top 10)

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SLIDE 27

Transition into High Technology Products

Doublesided 14% 4 layers 54% 6 Layers and above 25% HDI 5% HS, SBU and Semiflex 2%

Product Mix 2010

Doublesided 13% 4 layers 59% 6 Layers and above 21% HDI 5% HS, SBU and Semiflex 2%

Product Mix 2009

Doublesided 8% 4 layers 33% 6 Layers and above 38% HDI 14% HS, SBU and Semiflex 7%

Product Mix FY2013

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SLIDE 28

Investment CAPEX

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

  • 5.00

10.00 15.00 20.00 25.00 30.00 2007 2008 2009 2010 CAPEX (M. US$) Capex/Sales (%)

Millions of USD

  • KCE spent $6.8 mil in CAPEX (2010)
  • US$1.9mil is spent on maintenance of CAPEX while the rest is spent
  • n production improvements
  • Total CAPEX for the Y2010 equals to approximately 3% of revenue. This figure

is an increase from Y2009 of 1.5%

  • 2011 CAPAEX is set at $5.0 mil.
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SLIDE 29

Appendices

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SLIDE 30

World Electronic Equipment

1,618 1,876 2,025 2,207 2,394 2,599

500 1000 1500 2000 2500 3000 2009 2010 2011 2012 2013 2014

2009 - 2014 9.90% CAAGR

16% 8% 9% 8% 9% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2010 2011 2012 2013 2014

Growth rate

$ Billion

World Electronic Equipment

Electronic Product Shipment Forecast(Constant 2010 rate)

Source: N.T. Information Ltd February 2011

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SLIDE 31

World PCB Production

44.07 52.08 55.24 58.40 61.98 66.03 10 20 30 40 50 60 70 2009 2010 2011 2012 2013 2014 $ Billion

World PCB Production

(Constant 2010 Rates) 18% 6% 6% 6% 7% 0% 5% 10% 15% 20% 25% 30% 2010 2011 2012 2013 2014

Growth rate

Source: N.T. Information Ltd February 2011

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SLIDE 32

Automotive PCB

27% 9% 7% 8% 8% 0% 5% 10% 15% 20% 25% 30% 2010 2011 2012 2013 2014

Growth rate

*Including passenger cars, trucks and buses

2800 3550 3860 4130 4460 4817 62.3 74.1 79.7 85.7 88 90 10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2011 2012 2013 2014 2015 1000 2000 3000 4000 5000 6000 7000 2009 2010 2011 2012 2013 2014 PCB Usage($M) Auto Shipment(M)*

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SLIDE 33

Sales by currencies

3.9% 2.7% 2.7% 3.6% 3.1%

25.3% 23.1% 24.9% 25.2% 21.6% 70.8% 74.2% 72.4% 71.2% 75.3%

Y2006 Y2007 Y2008 Y2009 Y2010

USD EUR THB

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SLIDE 34

Copper and Currency Risk

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SLIDE 35

Thank you

Q & A

www.kcethai.in.th