OPPORTUNITY DAY Q3/2014 AAPICO HITECH PLC [AH] Financial Performance - PowerPoint PPT Presentation

The Stock Exchange of Thailand OPPORTUNITY DAY Q3/2014

AAPICO HITECH PLC [AH] Financial Performance for the 3 rd quarter of 2014 Ms. Yeap Xin Rhu December 8 th , 2014

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

Company Profile [AH] AAPICO HITECH PUBLIC COMPANY LIMITED Established in 1996 and listed on SET in 2002. • Main businesses are the manufacturing of • automobile parts, design, produce and install assembly jigs and stamping dies, as well as car dealership and car navigation businesses. Industry/Sector : Auto Average price : Baht 17.20* Comprised of 35 companies (24 subsidiaries • 52 weeks range : Baht 12.80 – 15.24 and 11 associates) in Thailand, Malaysia and Market Cap : Baht 4,774 million China. P/E (YTD) : 14.17x* P/BV : 0.87x Registered and paid-up capital of Baht 322.58 • Dividend yield : 3.31% million, comprised of 322,583,844 ordinary shares at par value of Baht 1 each. * Data as of December 1 st , 2014 4

Shareholding Structure AH’s main shareholders are Mr. Yeap Swee Chuan and family holding 39.75% of total outstanding shares and Sojitz Corporation holding 15.76% of total outstanding shares. * Data as of March 28 th , 2014 5

Company Milestones 1985 2004 2009 Started as Ford Assembler and Expanded to China with Kunshan Established AAPICO Structural Distributor. Chaitai-Xincheng Precision Products. Forging acquisition. 1995 2010 2005 AAPICO 25 th Anniversary and Produced fuel tanks for Ford Strategic partnership with Sojitz and Mazda pick ups. established JV with Thai Takagi Corp., Japan Seiko. 1997 2006 Established 1 st JV with Sanoh 2011 Acquired Able ITS and set up Japan and a factory in Hitech Completed Honda 3S showroom AAPICO Hitech Parts Industrial Estate, Ayutthaya. in Malaysia. 2007 2002 2012 Acquired KPN and renamed Listed on SET. Kunshan new factory in operation. AAPICO Forging. 2008 2003 2013 Established JV with Minth Corp., Purchased AAPICO Amata from Establish 4 JVs with Lemtech, China. Dana Corp., USA. Edscha, Sumino and Sodecia. 6

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 Customers Happy Employees Happy Shareholders Happy Public S – Safety Teamwork Profitability Corporate Social Q – Quality Reasonable Dividend Look at problems Responsibility C – Cost as opportunities D – Delivery Love Family, Company E – Engineering and Country M - Management Loyalty and Honesty Mutual Respect 7

Business Segment Sales breakdown by Segment Manufacturing of 1 Automobile Parts 2 Car Dealerships 3 Car Navigation 8

Business Segment OEM Automobile Parts Manufacturing of 1 Automobile Parts 2 Car Dealerships Assembly Jigs and Stamping Dies (Project base) 3 Car Navigation 9

Business Segment Manufacturing of 1 Ford Automobile Parts Dealer Thailand 2 Car Dealerships Mitsubishi Dealer Thailand 3 Car Navigation Honda Dealer Malaysia 10

Business Segment Manufacturing of 1 Automobile Parts 2 Car Dealerships 3 Car Navigation 11

Global Operations CHINA Production : 2 factories Process : Forged & Machined parts Products : Connecting rods Sales by Country 9M13 9M14 9M12, 9M13, 9M14, Malaysia Productions : 5 companies Process : Car dealership & Navigation Products : Honda, POWERMAP 12

Locations in Thailand Production : 3 factories Products : Chassis Frames, Production : 5 factories Forged and machined parts. Ayutthaya Products : Stamping Dies, Jigs, and Stamping parts, and Car navigation Bangkok Chonburi Samutprakan Rayong Production : 2 factories Products : Stamping parts Mitsubishi Dealers: and Plastic parts Ramindra Production :1 factory Navanakorn Products : Plastic parts Ford Dealers: Ladprao Samutprakarn 13

Our Partners Strategic Technical Joint Ventures Shareholder Partners 14

Our OEM Customers Top OEM Customer Profile OTHERS - PARTS 22% TOYOTA ISUZU Jan-Sep 3% 44% 201 4 SGMW 2 4% NISSAN 1 3% AAT 1 1 4% 1. Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 2. SAIC-GM-Wulling Automobile – a JV between SAIC, GM and Liuzhou Wuling, based in China. 15

Achievements in 2014 16

Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 17

Thailand Automotive Production (Year) Unit: Million Forecast Others Passenger Car 1-Ton Pick-up/PPV 3.0 2.5 -27.0% Global 2.0 Flood Financial 0.96 1 .07 1.9 Crisis 1.5 0.85 0.55 0.40 0.54 0.55 0.32 1.0 0.30 0.28 0.31 0.30 1 .45 1 .33 0.25 0.5 1 .07 1 .04 0.97 0.1 7 0.95 0.90 0.87 0.85 0.82 0.1 6 0.67 0.60 0.47 0.38 0.29 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 9M13 9M14 For Jan-Sep 2014, Thailand vehicle production volume declined year-on-year by 27%,  from 1.93 million units to 1.41 million units . The production of passenger cars was 548,758 units (-36% y-o-y) and 1-Ton pick up was 845,303 units (-18% y-o-y). Source: The Federation of Thai Industry (Automotive Industry Club) 18

Thailand Automotive Production (Qtr) Unit: Million Others Passenger Car 1 -Ton Pick up / PPV 0.8 -22.5% 0.7 0.6 0.32 0.33 0.5 0.28 0.27 0.26 0.22 0.14 0.4 0.22 0.21 0.18 0.18 0.16 0.18 0.15 0.17 Flood 0.11 0.13 0.3 2011 0.12 0.2 0.40 0.38 0.37 0.35 0.34 0.33 0.32 0.31 0.29 0.30 0.28 0.28 0.28 0.06 0.27 0.26 0.26 0.25 0.1 0.21 0.11 0.0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 In Q3’14, the vehicle production volume increased from Q2’14 by 5% to 456,435 units , but  was 22.5% or 132,864 units below Q3’13. Compared to last year, the production of passenger cars and 1-Ton pick up declined by 31.5% and 13.1% respectively. Source: The Federation of Thai Industry (Automotive Industry Club) 19

Thailand Total Industry Volume (Year) Unit: Million Forecast Others Passenger Car 1-Ton Pick up/PPV 1.6 1.4 -37.3% 1.2 Flood 1.0 Global 0.67 Financial 0.63 0.8 0.9 Crisis 0.50 0.6 0.1 9 0.35 0.1 9 0.36 0.1 7 0.21 0.23 0.27 0.4 0.1 8 0.23 0.67 0.1 3 0.59 0.47 0.45 0.2 0.1 0 0.45 0.41 0.39 0.37 0.37 0.31 0.33 0.31 0.28 0.24 0.1 7 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 9M13 9M14 Thailand Total Industry Volume for Jan-Sep 2014 was 648,410 units , compared to 1,034,279  units sold in Jan-Sep 2013. Compared to last year, the passenger car sales decreased by 45% and 1-Ton pick up car sales decreased by 31%. Source: The Federation of Thai Industry (Automotive Industry Club) 20

Thailand Total Industry Volume (Qtr) Unit: Million Others Passenger Car 1 -Ton Pick up/PPV 0.5 0.5 0.4 -29.3% 0.4 0.3 0.22 0.20 0.19 0.3 0.16 0.15 0.2 0.10 0.13 0.15 0.11 0.11 0.11 0.2 0.09 0.09 0.09 0.09 0.09 0.09 0.07 0.1 0.19 0.18 0.18 0.06 0.16 0.15 0.15 0.14 0.12 0.12 0.1 0.11 0.11 0.11 0.10 0.10 0.09 0.09 0.09 0.09 0.05 0.0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Total industry volume declined by 4.3% compared to Q2’14 to 207,499 units in Q3’14 and  was 29.3% below the sales volume of 293,484 units in Q3’13. Both passenger sales and 1 - ton pick up car sales declined year-on-year by 38.3% and 20.4% respectively. Source: The Federation of Thai Industry (Automotive Industry Club) 21

Total Export Volume (Year) Unit: Million 1.4 1.2 -1.0% Global 1.13 Flood 1.0 Financial 1.03 1.0 Crisis 0.8 0.90 0.85 0.84 0.78 0.74 0.6 0.69 0.54 0.54 0.4 0.44 0.33 0.2 0.24 0.18 0.18 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F 9M13 9M13 Total export volume of the first nine months of 2014 was 838,952 units , which was 1%  lower than the export volume in Jan-Sep 2013. Source: The Federation of Thai Industry (Automotive Industry Club) 22

Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 23

Financial Highlights Jan-Sep Jan-Sep Jan-Sep In Million Jan-Sep 2014 Highlights 2012 2013 2014 Baht Revenues 11,783 12,659 11,599 • Revenues were 8.% below last year, lower than the industry decline of 27%, thanks to Growth% +34% +7% -8% growth in car dealerships in Malaysia. GM 761 915 499 • Gross margin % declined y-o-y, mainly due GM% 6.8% 7.5% 4.5% to high level of fixed costs and increases of sales in car dealerships. SG&A 688 652 566 • SG&A decreased y-o-y, in line with lower Associate 193 197 108 sales in automotive parts segment. Int. & Tax 258 239 176 • Income from associates decreased y-o-y, Net Profit 550 623 353 mainly from Hyundai and recent JVs. NP% 4.6% 4.9% 3.0% • Interest and tax expenses declined, due to lower debt and lower taxable income. ROE (%)* -2.8% 19.1% 6.5% • Net profit margin in Jan-Sep 2014 was ROA (%)* -0.9% 7.3% 2.9% 3.0% compared to 4.9% in Jan-Sep 2013. D/E (x) 1.24 0.91 0.67 * ROE and ROA is calculated based on 12 months trailing. 24