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Analyst Analyst Pr Presentati esentation on FY FY2018 2018 Be the Leading Company in Innovation Development and the Smart Factory of Quality Elastomer Products, Motorcycle Tyres and Tubes in AEC Contents 2. . Performa mance 1.


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SLIDE 1

Analyst Analyst Pr Presentati esentation

  • n

FY FY2018 2018

Be the Leading Company in Innovation Development and the Smart Factory of Quality Elastomer Products, Motorcycle Tyres and Tubes in AEC

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SLIDE 2

2. . Performa mance FY FY2018 2018

  • 1. About IRC

Contents

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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SLIDE 3

Our Mission

Sustainability in Safety and Environment Quality in Each Product with International Quality Systems Best Satisfaction to Customers in 4 Product-Dimensions: Price/Cost (C) At the Best Competitive Level for Customers Quality (Q) At the Best Competitive Quality Rating by Customers Delivery (D) At the Best Competitive Delivery Rating by Customers Services/ Solutions (S) At the Best Service to Solutions for Customers at All Times Create the Opportunities of Human Resource Improvement to Achieve Competencies in All Levels Continuous Research and Development for New Innovations, Products, Processes and Markets and Keep Generating the Outputs

  • f Existing Business

Generating Strong Financial Status and Attractive Return to Shareholders Supporting the Good Corporate Governance and Corporate Social Responsibility

Be the Leadin ing Company y in Innovation ion Developm

  • pment

t and the Smart Factory

  • ry
  • f Quality

y Elastom

  • mer

er Products, s, Motorcyc ycle le Tyres and Tubes in AEC

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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On the ground und of 7 7 polic licies; ies;

Part1: About IRC

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SLIDE 4

Group Structure

KINNO HOSHI ENGINEERING CO., LTD. IRC (ASIA) RESEARCH CO., LTD.

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

INOUE RUBBER CO., LTD. (JAPAN) LEEISSARANUKUL GROUP MINOR SHAREHOLDERS INOUE RUBBER (VIETNAM) CO., LTD.

34.30% 38.08% 27.62% 8.00% 99.99% 99.99%

Data as of February 8, 2018

The subsidiaries have been operated under the same administration structure and manageable authority as the Company. Remark: Major shareholder group who participates in business operation by sending persons to be directors *Leeissaranukul Family including Sopa-Kanok International Co., Ltd, Mrs. Porndee Leeissaranukul, Mr. Thanong Leeissaranukul, Mrs. Pimjai Leeissaranukul, Mr. Apichart Leeissaranukul, and Mrs. Pornthip Sethiwan.

Part1: About IRC

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

5

Rangsit Production Site, Pathumthani Wangnoi Production Site, Ayutthaya

Other Industries

Company Abbreviation IRC Established 15 December, 1969 Listed in SET 25 September, 1994 Head office 258 Soi.Rangsit-Nakornnayok 49, Prachatipat District, Thanyaburi, Pathum Thani 12130 Registered Capital 200 Million Baht (Paid up) Number of Shares 200 Million Ordinary Shares

Total Shareholders 1,693 shareholders

(as of 8th Feb, 2018)

Total Employees 1,661 persons (FY 2018) Total Revenues  5,562 Million Baht (FY2018)  5,331 Million Baht (FY 2017) Total Net Profits  358 Million Baht (FY2018)  424 Million Baht (FY 2017)

P/E 10.40 (as of 22th Nov, 2018)

  • Dvd. Yield

4.18 % (as of 22th Nov, 2018) Market Cap. 4,060 MB (as of 22th Nov, 2018) CG Report

Automotive Parts Tubes Tires Industrial Elastomer Products Business Unit

Total Sales

5,559.35

Million Baht

9.66%

Tubes

35.71%

Tires

35.44%

Automotive Parts

19.19%

Other Industries

45.37%

  • f Total Sales

54.63%

  • f Total Sales

FY2018

Tires and Tubes Business Unit

Part1: About IRC

Our Background

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SLIDE 6

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

Award from other sectors

Part1: ABOUT IRC

“First private Inspection Bodies in Thailand for Pneumatic tire for Motorcycle and Moped”

Our Recognition

6

  • Received 2017FY SUPPLIER EVALUATION SCORE Certificate from Isuzu Engine

Company Manufacturing (Thailand) Co., Ltd.

  • Received COST AWARD 2017 Award from Thai Stanley Electric Public Company

Limited on 18 May 2018

  • Received Automation Award and Safety Award from INOAC CORPORATION
  • Received the 35th TCC QCC ACTIVITY 2017 from Toyota Co-operation Club as a

winner of group 3, on 15 December 2017

  • Received Runner Up 2017 Award for Outstanding Performance Supplier in Quality

Performance Award from Toyota

  • Received Delivery 2017 Best Award from Roki
  • Received Awards of Quality 2017 from Mitsubishi Motors (Thailand) Company

Limited

  • Listed in the Thailand Sustainability Investment (THSI) 2018 Sustainable Stock Group

from the Stock Exchange of Thailand

  • Selected into the ESG100 Securities Group for the year 2018 from Thaipat and

Received CG rating at "Very Good" level (4 stars) from the IOD survey

  • Received Gold Award from the presentation At the International Convention on Quality

Control Circles 2018 (ICQCC 2018) organized by the Singapore Productivity Center

  • Certified as Green Industry Level 3 Green System (Green System) from the Ministry of

Industry

  • Received Thailand Energy Awards 2018 Outstanding Award for Energy Conservation

Type of factory From the Ministry of Energy

  • Received Outstanding Workplace Award The promotion of labor development for the

year 2018 from the Department of Skill Development Ministry of Labor

Our Recognition

Award from customers

Part1: About IRC

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SLIDE 7

Keys to Sustainability

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

7

23 Years ears of Continuously R&D

“First private Inspection Bodies in Thailand for Pneumatic tire for Motorcycle and Moped”

1. IRC (Asia) Research LTD. (IAR)

  • Received investment support from the BOI
  • There are investments in the field of equipment, machinery, and

program system used in the experiment

  • Have both experts Thai and Japanese Together more than 70

people

  • Readiness in working in product development Is the key to making

customers satisfied

  • One of the key factors in the development of advanced processes

for competition

2. Kinno Hoshi Engineering Co., Ltd. (KIN)

  • Produce molds for the company which help reduce

production costs

  • Can produce molds according to the production

process

  • Helping to develop new products exactly as needed

Part1: About IRC

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

Dividend Payout Ratio

Part1: About IRC

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SLIDE 9

2. . Performa mance FY2 Y2018

  • 1. About IRC

Contents

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Contents

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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2.Performance FY2018 Market Situation Financial Highlight External Impacts CSR Projects

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1,231 1,328 1,297 1,376 1,354 1,422 1,391 1,392

3.10% 3.00% 3.40% 3.90% 4.30% 4.00% 4.90% 4.60% 2.70% 2.80% 3.30% 3.40% 2.80% 3.50% 3.50% 3.30% 1.00% 1.60% 1.50% 1.60% 2.00% 2.00% 1.00% 1.00% 6.68% 5.15% 6.28% 7.46% 7.65% 7.45% 6.73% 6.88%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% OCT-DEC'16 JAN-MAR'17 APR-JUN'17 JUL-SEP'17 OCT-DEC'17 JAN-MAR'18 APR-JUN'18 JUL-SEP'18 FY2017 FY2018

200 400 600 800 1,000 1,200 1,400 1,600

IRC Sales (MB) GDP Growth Rate - Thailand GDP Growth Rate - Global GDP Growth Rate - Japan GDP Growth Rate - Vietnam

11

Economic Situation

Part 2. IRC PERFORMANCE : MARKET SITUATION

IRC’s sale FY2017 : 5,231.86 Million Baht IRC’s sales FY2018 : 5,559.35 Million Baht

Source: Bank of Thailand, Trading Economics ,Focus Economics

As the result of COP21,China started their policy on Environmental Combating since Jan 2018 eg. Case of using coal as the raw material in industrial , level up CO2 controlling.

  • Mr. Trump became

U.S President U.S. – China Trade war

  • U.S.economy : expected to expand at 3.1% from strong consumer and business spending as well as a surge in exports ahead of retaliatory tariffs from China helped drive economic growth.
  • Eurozone economy : economic sentiment fell throughout Q3 amid political uncertainty and firm oil prices and returning inflation may have taken a bite out of consumption.
  • Japan economy : The Japanese economy now. Affected by multiple disasters. The demand for consumption has decreased. Factory stopped production. Including exports fell sharply.
  • China economy : slowed to 6.5% due to the government’s effort to tackle debt risks and trade war with the United States.
  • Vietnam economy: Continued growth from overseas investment The industry. Processing and Manufacturing Including the real estate sector.
  • Thailand economy : estimated growth is reduced to 4.5% from 4.8% due to export and tourism growth are declined.
  • IRC’s sales : Total sales FY2018 is 5,559.35 YoY + 5.70% from last year.
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SLIDE 12

25 35 45

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY 2017 FY 2018

Carbon Black N-330 (BAHT/KG.)

12

Raw Material Prices

Part 2. IRC PERFORMANCE : MARKET SITUATION

40 60 80 100

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 FY2017 FY2018

RSS3 and STR 20 (BAHT/KG.)

RSS3 STR20 40 50 60 70 80

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY 2017 FY 2018

Crude Oil-WTI (USD/Barrel)

65 85 105

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY 2017 FY 2018

Zinc Oxide-ZnO (BAHT/KG.)

Averag rage Pri Price in FY2018 2018 FEF N-330

SBR 1502

ZnO Red Zeal Crude Oil: 49.33 USD/Barrel, +29.77% comparing to the average in FY2017 Synt nthe hetic c Rubbe Rubber 1,997 USD/Ton, n,

  • 20.64% comparing to the average in FY 2017

RSS 3: 72.85 Baht/Kg.

  • 27.06% comparing to the average in FY 2017

ZnO: 65.75 Baht/Kg., +15.49% comparing to the average in FY 2017 Carbon Black: 31.85 Baht/Kg., +24.01% comparing to the average in FY2017 Nylon/Tire cord -2.06% comparing to the average in FY 2017 500 1500 2500 3500

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY2017 FY2018

Synthetic Rubber (USD/TON)

120 140 160

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 FY 2017 FY 2018

Nylon /Tire cord (BAHT/KG.)

FEF N-330

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13

Thailand’s Automobile Production

1.90 2.66 1.93 1.90 1.96 1.95 2.12 2.26 57% 72% 58% 42% 39% 43% 46% 46% 43% 28% 42% 58% 61% 57% 54% 54%

0.00 0.50 1.00 1.50 2.00 2.50 3.00 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019E

Millions Unit

Domestic Exports

Automobile Production Trend

Highlight:

Thailand’s Automobile Production Quarterly

Part 2. IRC PERFORMANCE : MARKET SITUATION

8.73% 6.60%

266,235 288,294 250,279 310,167 277,692 300,717 271,481 292,156 201,446 197,261 215,132 216,611 233,387 238,973 245,398 255,391

467,681 485,555 465,411 526,778 511,079 539,690 516,879 547,547

Total Domestic Export

40% 45% 44% 36% 44% 42% 46% 49% 44% 40% 44% 40% 45% 45% 48% 41% 45% 47% 46% 47% 49% 47% 47% 46% 60% 55% 56% 64% 56% 58% 54% 51% 56% 60% 56% 60% 55% 55% 52% 59% 55% 53% 54% 53% 51% 53% 53% 54%

  • 50,000

100,000 150,000 200,000

Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Domestic (Unit) Export (Unit)

FY2017 : 1,945,425 Units FY2018: 2,115,195 Units

Source: The Federation of Thai Industries

Remark : Forecast FY2019 is from BAY research ,pending data on marketing

  • The automobile production in FY2018 is 2.12 million units +8.73% YoY
  • The production for export in FY2018 is 1.14 million units + 2.43% YoY
  • The production for domestic in FY2018 is 0.97 million units + 17.18%

YoY

  • The Production in 2019 is expected to grow up to 2.26 million units from

the domestic demand for automobiles to replace those bought five years ago under the first-car buyer scheme. For export , vehicles from Thailand should return to a state of growth, supported principally by the export of eco-cars, a result of the investment-support policies of the BOI and the closure of vehicle production facilities in Australia.

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SLIDE 14

14

Thailand’s Motorcycle Production

Motorcycle Production Trend

2.28 2.33 1.86 1.84 1.79 2.01 2.07 2.10

57% 72% 58% 42% 39% 43% 46% 46% 43% 28% 42% 58% 61% 57% 54% 54% 0.00 0.50 1.00 1.50 2.00 2.50

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019E

Millions Unit

Domestic Exports

Thailand’s Motorcycle Production Quarterly

Part 2. IRC PERFORMANCE : MARKET SITUATION

3.04% 1.45%

85% 82% 75% 80% 76% 82% 83% 87% 86% 83% 83% 83% 82% 82% 77% 81% 80% 84% 83% 83% 84% 81% 83% 84% 15% 18% 25% 20% 24% 18% 17% 13% 14% 17% 17% 17% 18% 18% 23% 19% 20% 16% 17% 17% 16% 19% 17% 16%

  • 50,000

100,000 150,000 200,000 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 Jul'17 Aug'17 Sep'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 Mar'18 Apr'18 May'18 Jun'18 Jul'18 Aug'18 Sep'18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Domestic (Unit) Export (Unit)

87,083 105,854 74,639 88,622 99,243 100,546 85,272 86,984 371,947 409,346 443,255 424,536 409,698 442,632 418,547 423,300 459,030 515,200 517,894 513,158 508,941 543,178 503,819 510,284

Total

Domestic Export

FY2017 : 2,005,282Units FY2018 : 2,066,222 Units Remark : Forecast FY2019 is from BAY research ,pending data on marketing

  • The motorcycle production in FY2018 is 2.07 million units +2.99% YoY
  • The production for export in FY2018 is 0.37 million units + 4.45% YoY
  • The production for domestic in FY2018 is 1.72 million units + 2.73%

YoY

  • The Production in 2019 is expected to grow up to 2.10 million units from

the improving incomes of the agricultural sector and anticipated spending

  • n

electoral campaigns in 2019. The

  • utlook

for manufacturers and distributors of motorcycles is therefore positive, although distributors which offer hire-purchase financing may be at risk

  • f defaults, as household debt remains high.

Highlight:

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SLIDE 15

Contents

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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2.Performance FY2018 Market Situation Financial Highlight External Impacts CSR Projects

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SLIDE 16
  • 200

400 600 800 1,000 1,200

FY2017 FY2018 860.64 1,161.38

1,700 1,750 1,800 1,850 1,900 FY2017 FY2018

1,779.35 1,875.69

500 520 540 560 580 600 FY2017 FY2018

575.48 536.94

1,900 1,950 2,000 2,050 FY2017 FY2018

2,016.39 1,985.34

5,453.51 5,126.28 4,954.57 5,231.86 5,559.35

53.56% 52.95% 50.39% 50.81% 54.63% 46.44% 47.05% 49.61% 49.19% 45.37%

  • 1,000

2,000 3,000 4,000 5,000 6,000 FY2014 FY2015 FY2016 FY2017 FY2018

Industrial Elastomer Parts

Motorcycle Tires and Tubes

IRC’s Sales by business unit

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

IRC’s Sales by business unit

(Million Baht)

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

Tires and Tubes business unit sales Industrial Elastomer Products business unit sales

Tires Tubes Automotive Parts Other Industries

  • 1.54%
  • 6.70%

+ 5.41% + 34.94% + 6.25%

(Million Baht) (Million Baht) (Million Baht) (Million Baht)

Tires and Tubes : -2.68 % YoY Industrial Elastomer Products: +15.04% YoY

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SLIDE 17

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

IRC’s Sales by business unit

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

Export Market

  • Flooding in Myanmar and Cambodia resulted in a decrease in purchasing

power which directly affected Motorcycle Tire&Tubes export.

  • High competition in the global market
  • However, the total export of the Motorcycle increased in overall about 9.4%,

compared to FY2017.

Domestic Market

  • Due to economic sluggishness, especially in the

agricultural sector whom is the main group of customer, has less purchasing power. Therefore, it is directly affecting the domestic sales Both in the part of tires&tubes, especially Motorcycle tire products that become particularly sensitive in terms of price.

500 520 540 560 580 600 FY2017 FY2018

575.48 536.94

1,900 1,950 2,000 2,050 FY2017 FY2018

2,016.39 1,985.34

Tires and Tubes business unit sales

Tires Tubes

  • 1.54%
  • 6.70%

(Million Baht) (Million Baht)

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SLIDE 18

103 167 200

  • 100

200 300 FY2018 FY2019E FY2020E

Millions Baht

Other Industries Sales Growth

Other Industries

1,888 1,964 2,318

1,565 1,613 1,934 322 351 384

  • 1,000

2,000 3,000 FY2018 FY2019E FY2020E

Millions Baht

Automotive Parts Sales Growth

Total 4W & 4W+ 2W

2,522 2,708 2,785

1,985 2,139 2,204 537 569 581

  • 1,000

2,000 3,000 FY2018 FY2019E FY2020E

Millions Baht

Tires and Tube Sales Growth

Total Tires Tubes

Sales Forecast

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Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT 7.36% 2.85% 4.03% 18.02% 61.64% 18.90%

A lot of New models Remark : Other Industries Sales does not including the compound which sell to ITTC

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Distribution channel

41.96%

Export Market (EXP)

26.25%

Replacement Market (REP)

Tires and Tubes distribution channel FY2018

31.79%

Original Equipment Manufacturer (OEM)

Total Sales

2,522.27

Million Baht

Industrial Elastomer Products distribution channel FY2018

Total Sales

3,037.08

Million Baht

53.35%

OEM 4W&4W+

35.13%

Other Industries

11.51%

OEM 2W

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Tires and Tubes Market Share

45.69%

OEM Market Share FY2018 (by value)

22.27% 23.57% 3.35% 4.79%

Others

Overall Market Share FY2018 (by value)

29.83%

21.75%

31.59% 9.45% 7.37%

Others

OEM Tires & Tubes Market Share Overall Tires & Tubes Market Share

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT Data as of 30 Sep 2018 Data as of 30 Sep 2018

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Automotive Parts OEM Market Share

23.71%

19.37% 13.20%

12.61% 9.14%

5.15% 4.56% 2.77% 2.68% Others suppliers , 6.80%

Automotive Parts OEM Market Share FY2018 (Approximated)

Automotive Parts OEM Market Share

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT Data as of 30 Sep 2018

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

IRC’s Revenue breakdown

IRC's Revenue breakdown

(Million Baht) Total Revenue

COGS S&A and other expenses Financial Costs and Income Tax Expenses Net Profit Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

5,497 5,186 5,002 5,331 5,614

87.14% 83.50% 80.53% 83.77% 85.30%

6.09% 6.32% 6.95% 6.65% 7.00%

1.07% 1.66% 2.26% 1.63% 1.32%

5.70% 8.51% 10.27% 7.95% 6.39%

  • 1,000

2,000 3,000 4,000 5,000 6,000 FY2014 FY2015 FY2016 FY2017 FY2018

1.32%

Remark : FY2018 IRC didn’t receive the dividend from IRV.

Net Profit FY2017 : 423.79 MB Net Profit FY2018 : 358.62 MB Net Profit /Total Revenue : -1.56% YoY

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SLIDE 23

318.31 405.91 466.71 709.42

11.45% 4.73% 9.61% 5.89% 67.06% 70.54% 69.10% 69.64% 15.46% 13.62% 11.92% 10.65% 2.32% 7.73% 7.54% 8.09% 3.72% 3.38% 1.82% 5.74% 100 200 300 400 500 600 700 800 FY2016 FY2017 FY2018 FY2019 (Budget)

Millions Baht

Land and Building Machinery and Tool/Factory equipment Molds Others Subsidiaries

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Part1: ABOUT IRC

Investment Proportion

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

Investment Proportion

52.00% 14.98% 27.52% Machinery and Tool/Factory equipment : 494 MB

  • Automation : 118.2 MB
  • Improved Quality : 41.7 MB
  • Others : 334.14 MB
  • Increase production capacity
  • New product development
  • Replacement of old machinery
  • For environment
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SLIDE 24

INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

IRC Financial Ratio Highlight

18.70 14.65 14.54 12.64 9.77 8.37 10.37 8.10 6.89

FY2016 FY2017 FY2018

Gross Profit Margin EBITDA Margin Net Profit Margin Remark : Average from Automotive Industry in SET

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

Profit Ratio(%) Statement of financial status ROA(%) ROE(%) D/E

4,272 1,072 3,201 4,632 1,215 3,417 5,058 1,462 3,596

  • 1,000

2,000 3,000 4,000 5,000 6,000

Total Assets Total Liabilities Total Shareholders' Equity

FY2016 FY2017 FY2018 Net Profit Margin

  • 1.21%

9.20% 5.24% 20.33% 12.02% 9.15% 5.91% 5.48% 5.89% 4.28% 0% 4% 8% 12% 16% FY2016 FY2017 9M/FY2018 IRC Industry Average

16.05% 12.40% 8.12%

7.41% 7.40% 5.22% 0% 4% 8% 12% 16% 20% FY2016 FY2017 9M/FY2018 IRC Industry Average 0.33 0.36 0.37 0.56 0.63 0.66 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 FY2016 FY2017 9M/FY2018 IRC Industry Average

(Million Baht)

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INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED

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Part1: ABOUT IRC

  • Dividend payout ratio Changed from 40% to 50% of net profit in fiscal 2018

FY2017 0.8476 FY2018 0.8965

942.94

  • 734.87
  • 182.49

25.58 202.40 227.98 227.98

  • 636.60
  • 250.35
  • 207.99

178.26 227.98 406.23 406.23 702.74 748.17

  • 161.97
  • 169.52

416.74 406.23 822.97 822.97 701.04

Unit : Million Baht

Statement of Cash flow CF from Operating Activities CF from Investing Activities CF from Financing Activities Net Increase in Cash Cash, Beginning Balance Ending Balance Cash and cash equivalent Available for sale investments

Cash Flow

FY2016 FY2017 FY2018

Part 2. IRC PERFORMANCE : FINANCIAL HIGHLIGHT

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Contents

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2.Performance FY2018 Market Situation Financial Highlight External Impacts CSR Projects

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External Impacts

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U.S. China Trade war Electric Vehicle (EV) Climate Change CP-TPP Free Trade Agreement Thailand 4.0

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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Part1: ABOUT IRC

U.S. China Trade war

v

  • Compound sales was increase because Chinese

manufacturers have been declined.

  • Rubber part of valves sales is also increase.
  • For tires and tubes are not very effective because we

export mainly in Asia.

Company Strategy

  • Focus on research and development The production process is more

efficient.

  • Research and develop new products Including the use of technology in

the production process

  • Improve the formula for using raw materials to reduce costs
  • Add value to the job
  • Focus on building confidence in the quality system of work.

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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External Impacts

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U.S. China Trade war Electric Vehicle (EV) Climate Change CP-TPP Free Trade Agreement Thailand 4.0

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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Part1: ABOUT IRC

Electric Vehicle (EV)

  • Based on the forecast of the Automotive Institute (TAI), the

electric vehicle market in Thailand will have outstanding growth rates over the next 15-20 years.

  • In the short term Does not affect the company
  • Expected to use hybrid cars before switching to full EV.

Company Strategy

  • Research and development work that can support EV

systems

  • Find a business partner
  • Maintain the existing customer base and expand the

market to other industries.

(Internal Combustion Engine Vehicles :ICV) (Hybrid Electric Vehicles : HEV) (Electric Vehicles : EV)

2018 2030

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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Part1: ABOUT IRC

Electric Vehicle (EV)

Company Strategy

Hose Air Intake Engine Mount Shield Fuel Tank

 To research and develop work that can support the EV system.  To maintain existing customer and expand market to other industries  Thailand Automotive Institute (TAI) expects Thailand ‘s EV market will growth in the next 15-20 years.  Our company will affect not so much because of our main customer isn’t a passenger car but it’s a truck and pickup. Truck and pickup will have to take longer time to convert to EV.  Some parts will be extinct on EV such as Hose Air Intake, Engine Mount and Shield Fuel Tank

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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External Impacts

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U.S. China Trade war Electric Vehicle (EV) Climate Change CP-TPP Free Trade Agreement Thailand 4.0

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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Part1: ABOUT IRC

Climate Change

  • From the climate change, as well as the temperature rising from the global warming, and pollutions.
  • The Company took it as a chance to develop products that become an answer the climate change.

Opportunities

To develop products that benefit to the climate change

  • Building materials: new part that help reduce the incoming heat inside the building
  • Floor paving (Vi-Pafe) : the production of soft tile help reduce waste and preserve

the environment

  • Thermal System: The rising heat results in the need of an air condition

ผลิตภัณฑ์ยางจากน ้ามันจากเมล็ดฝ้าย (Rubber Product made from Linseed oil) สูตรยางคอมปาวด์จาก Eco-Carbon Black (Eco-Carbon Black in rubber formula)

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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External Impacts

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U.S. China Trade war Electric Vehicle (EV) Climate Change CP-TPP Free Trade Agreement Thailand 4.0

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Part1: ABOUT IRC

Other External Impacts

  • Currently the government is considering entering into CP-TPP Agreement

which consists of eleven country namely; Australia, Brunei, Canada, Chile, Japan, Malaysia Mexico, New Zealand, Peru, Singapore, and Vietnam

  • If Thailand become the member of CP-TPP Agreement, the tax cost will be

reduced. Opportunities and Risks

  • More products can be export to member countries
  • Expand the market to Mexico and Canada through Free Trade Agreement
  • However, the competition between neighboring country will more agressive

CP-TPP Thailand 4.0

The Company’s Strategy

  • Focus on improving in every dimension;

trustworthy, quality, service, as well as the development of new products The Company’s Strategy

  • Invest in Smart Factory approximately 400 million bah
  • Bring Robots, Innovations, Technologies, Information

Technologies, and Digital to integrate into the process

Part 2. IRC PERFORMANCE : EXTERNAL IMPACTS

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Contents

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2.Performance FY2018 Market Situation Financial Highlight External Impacts CSR Projects

Part 2. IRC PERFORMANCE : CSR Projects

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CSR projects

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Supply Chain Development for Competitiveness HAI ACHEEP HAI CHEEVIT Klong Pang Model

Part 2. IRC PERFORMANCE : CSR Projects

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Part1: ABOUT IRC

Supply Chain Development for Competitiveness

  • Implement projects to improve efficiency.
  • Reduce losses in the work process.

Supply Chain Development for Competitiveness 2019 Plan

To foster the competitiveness of IRCT-Supply Chains (15 SMEs)

Objectives

Part 2. IRC PERFORMANCE : CSR Projects

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CSR projects

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Supply Chain Development for Competitiveness HAI ACHEEP HAI CHEEVIT Klong Pang Model

Part 2. IRC PERFORMANCE : CSR Projects

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Part1: ABOUT IRC

HAI ACHEEP HAI CHEEVIT

HAI ACHEEP HAI CHEEVIT (since 2013) 2019 Plan

  • Plan for the OJT in IRC's factory
  • Maintain the system

Organize HAI ACHEEP HAI CHEEVIT training course in the Factory to the wardens and prisoners.

Objectives

Part 2. IRC PERFORMANCE : CSR Projects

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CSR projects

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Supply Chain Development for Competitiveness HAI ACHEEP HAI CHEEVIT Klong Pang Model

Part 2. IRC PERFORMANCE : CSR Projects

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Part1: ABOUT IRC

Klong Pang Model

Klong pang model (since 2016)

  • Upgrading the NR producers for rubber industry;
  • Improving the rubber trading cycle from farmers to

the cooperative and business sector.

  • Promoting the quality of their products where the

Company sold to the Klong Pang's farmers, and to be prouded of the products from Klong Pang Rubber Plantation, which are parts of the MAXING, IRC's tire brand.

  • Keep in touch with Klong Pang Cooperative members by
  • rganizing IRC booth and presenting IRC products, as well

as selling tires & tubes at special price to the members.

  • Surveillance Audit visits to maintain the ISO standard and

to improve the operation.

  • Develop traceability system following the ISO standard to

track the legitimacy of the rubber sources since IRC promotes the rubber that come from legal forest area.

Objectives 2019 Plan

Part 2. IRC PERFORMANCE : CSR Projects

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Thank k You Very y Much

Disclaimer: The information, forecasts and projects contained herein this presentation reflect the Company’s current views. No assurance is given that the future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any security or engage in any transaction.

Contac act t Investor tor Rela lati tions

  • ns

Email il: : ir@ircthailand.com Tel: l: +66 2996-0890 (Ext.190) Websit site: www.ircthailand.com Contac act t Sales (Motor

  • rcycl

ycle Tires & Tubes bes) Email il: : sale_rs@ircthailand.com Tel: l: +66 2996-0890 Contac act t Sales (Indust dustri rial al Elas asto tome mer Prod

  • ducts

ts) Email il: : marketing@ircthailand.com Tel: l: +66 2996-1471

43