SAT SAT To Become an Auto Parts Manufacturing Leader in ASEAN with - - PowerPoint PPT Presentation

SAT SAT

To Become an Auto Parts Manufacturing Leader in ASEAN with Excel To Become an Auto Parts Manufacturing Leader in ASEAN with Excellent Quality lent Quality

1Q2010 Consolidated Result 1Q2010 Consolidated Result

(Opportunity Day on May 27, 2010) (Opportunity Day on May 27, 2010)

Agenda

I ndustry Overview Group Business Performance Review Future Outlook Appendices

3

Trend of Thailand Car Production & Sales

1,400,000 (+ 40% ) 999,378

1,393,742 1,287,346 1,188,044 1,125,316 928,081 750,512 584,951 459,418 411,721 327,233 158,130 360,303

1,215,207 (+ 22% )

630,000 548,871 615,270 631,251 682,161 703,261 626,026 533,176 409,362 296,985 262,189 218,330 144,065 363,156 690,100 538,966 440,705 332,053 235,122 775,652 535,596 770,000 175,299 181,471 152,835 125,702 67,857 42,218

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

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010F

Actual Production FTI (officially) Domestic Sales Export Sales

Asia’s Recovery

units

Asia Financial Crisis of 1997- 98

Source: FTI (The Federation of Thai Industries (1997-2008))

E E

FTI (likely)

4

Key Message Key Message – – Continuing to deliver strong growth Continuing to deliver strong growth

• Thailand’s automotive industry to see growth accelerate as the

globally economy rebounding

• No obviously sign of production/sales plunged as eurozone crisis

deepens (Thailand exported to EU and the PIIGS* 4.5% and 1.4% respectively)

• The eco-car sector in Thailand promises growth opportunities for

parts and component manufacturers

• More foreign makers now appreciate Thailand as a prime location for

R&D investment

• Due to Curfew, Car makers to get recover of night shift cancellation

(% Thailand GDP dropped by 0.65-1.65% )

I ndustry I ndustry

Scenarios Factor Case 1 Greece only Case 2 Across euro area Case 3 Extended to Thailand’s trading partner countries Export Car Sales

Pick up to greece ~

3,3200 units or 1.6 bt.mn. in 2009

Zero market

value in 2010

• Approx. 0.2%
• f SAT sales

Pick up and P-Car to euro

area ~ 67,500 and 1,500 units ,respectively

50% of its market

value

• Approx. 2% of SAT

sales

Pick up and P-Car to -

Australia ~ 56,000 and 19,000 bt.mn., respectively

• Japan ~ 18,500

bt.mn. for both

5

Eurozone impact assessment

• Sales backs on track since the beginning of the year is on an upswing
• Revenue from Kubota, under diversification strategy, increasing

gradually to 1,600 bt.mn by 2014

• % Sales growth for 2010-2012 are 26% , 10% and 14% , respectively

(political uncertainty caused in range of 0.2-2.0% sales drop)

• CAPEXs in 2010 approx. 1,040 bt.mn (auto : non-auto : R&D : PPE &
• Admin. = > 310 : 405 : 50 : 274)

Business Business Financial Financial

• Significantly earnings and value growth
• Dividend payout at least 30% of consolidated profit

6

Domestic Car makers’ Update

• Toyota ;
• Toyota Motor Thailand will shut production of its oldest plant, Thai

Auto Works (TAW), and the production of the Hilux Vigo and Fortuner to be moved to the Ban Po plant in Chachoengsao at the end of May (to strengthen cost competitiveness as last year decision)

• Honda ;
• Honda's vehicle sales dropped unexpectedly in March, despite a

surge in Thailand's automobile market

• the decline was due to a cut in output, in anticipation of the market cooling in March after

expansion over the first two months

• Mazda
• It sees new record because of the highly popularity of the new

Mazda2 subcompact Rosy picture despite the ongoing political tension, the automotive and auto- parts industries are positive about manufacturing 1.4 million units, a number that has the potential of reaching 1.55 million units, because the export markets are showing a definite upturn

7

M/M_2010 is in line with that of 2008

Source: TAIA (The Thai Automotive Industry Association)

20000 40000 60000 80000 100000 120000 140000 160000 180000 Jan08 Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan09 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan10 Feb Mar

Dom Sales Exp Sales Total Prod Total Sales

Units

8

YTD_Car Production and Sales as of March10

Other 7% Honda 10% Nissan 9% Isuzu 14% AAT 5% Toyota 40% MMth 15% AAT 5% Isuzu 21% Nissan 6% Honda 13% Other 11% Toyota 39% MMth 5% Isuzu 9% AAT 8% Honda 8% Nissan 12% Other 2% Toyota 39% MMth 22%

175,452 113,504 269,440 98,549 41,233 68,253

100,000 200,000 300,000 400,000 500,000 Production Dom Sales Exp Sales

Pickup & PPV Passenger Car

Units Source: TAIA (The Thai Automotive Industry Association) (70% ) (59% ) (81% ) (30% ) (41% ) (19% )

9

Production Trend by Type and Brand

10,000 20,000 30,000 40,000 50,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Isuzu (Isuzu&GM) Toyota Mitsubishi Nissan AAT Other

Pick Up & PPV

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Toyota Mitsubishi Nissan AAT Other Honda

Passenger

unit unit

10

Domestic Trend by Type and Brand

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Isuzu (Isuzu&GM) Toyota Mitsubishi Nissan AAT Other

Pick Up & PPV

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Toyota Mitsubishi Nissan AAT Other Honda

Passenger

unit unit

11

Export Trend by Type and Brand

5,000 10,000 15,000 20,000 25,000 30,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Isuzu (Isuzu&GM) Toyota Mitsubishi Nissan AAT

Pick Up & PPV

1,000 2,000 3,000 4,000 5,000 6,000 7,000 J a n 9 F e b M a r A p r M a y J u n e J u l y A u g S e p O c t N

• v

D e c J a n 1 F e b M a r

Toyota Mitsubishi Nissan AAT Other Honda

Passenger

unit unit

12

Export Destinations

24% 27% 28% 26% 24% 24% 27% 31% 27% 25% 21% 27% 21% 20% 21% 12% 7% 6% 12% 13% 13% 7% 7% 9% 9% 7% 6% 7% 7% 8%

0% 25% 50% 75% 100% 2008 2009 Jan10 Feb10 Mar10

Middle East Aus, NZ & Oceania Asia Central & S.America Europe Africa 775,652 Units 535,596 Units

Source: TAIA (The Thai Automotive Industry Association)

58,525 Units 74,063 Units 84,097 Units

Agenda

I ndustry Overview Group Business Performance Review Future Outlook Appendices

14 14

Market share FY’10

Rear Axle Shaft Y09 = 86 % Rear Axle Shaft Y09 = 86 %

Customer Model

Toyota (100%) Fortuner, Vigo Mitsubishi (100%) Triton, 3E45 AAT (Mazda & Ford) (100%) BT-50, Ranger Isuzu (59%) D-Max 4x4, 2x4 , 4x2 (3,000cc. Only), MU-7

Market share FY’10

Coil Spring Y09 = 33 % Coil Spring Y09 = 33 %

Customer Model

Mitsubishi (29%) Lancer (Rear) Toyota (9%) Camry (Rear) Honda (27%) (Accord ยังไมรวม) Jazz, City (Rear) Nissan (77%) New Teana (Front), March(Fr&Rr)

Customer Model

Toyota (59%) Fortuner, Vigo 4x4 Mitsubishi (100%) Triton, 3E45

Pickup car Pickup car Passenger car

Market Share: Axle Shaft & Coil Spring

15 15

Market share FY’10

Leaf Spring Y09 = 12% Leaf Spring Y09 = 12%

Market share FY’10

Stabilizer Bar Y09 = 38% Stabilizer Bar Y09 = 38%

Customer Model

Mitsubishi (10%) Lancer Honda (45%) Jazz/City (FR) / Accord (RR) Toyota (19%) New Altis (FR)

Customer Model

Toyota (56%) Fortuner, Vigo 4x4 Mitsubishi (100%) Triton, 3E45 Nissan (84%) LCV 4x2, Navara

Customer Model

Mitsubishi (100%) Triton

Customer Model

Hino (2%) Bus Mitsubishi Fuso Truck (0%) Trucks

Pickup car Passenger car Pickup car Commercial car

Market Share: Leaf Spring & Stabilizer Bar

16 16

Market share FY’10

Disc Brake Y09 = 29% Disc Brake Y09 = 29%

Market share FY’10

Drum Brake Y09 = 25 % Drum Brake Y09 = 25 %

Customer Model

Mitsubishi Fuso Truck (0%) Trucks

Customer Model

Honda (100%) Jazz/City, Civic, Accord, CR-V Mitsubishi (8%) Space Wagon

Customer Model

Mitsubishi (100%) Triton, 3E45

Customer Model

Mitsubishi (100%) Triton, 3E45 Isuzu (59%) D-Max 4x4, 2x4, 4x2 (3,000 cc. only), MU-7

Customer Model

Honda (37%) City (Rear)

Passenger car Pickup car Commercial car Passenger car Pickup car

Market Share: Disc Brake & Drum Brake

17 17

Exhaust Manifold Y09 = 18% Exhaust Manifold Y09 = 18%

Market share FY’10

Customer Model

Mitsubishi (18%) Lancer

Customer Model

Mitsubishi (88%) Triton, 3E45 AAT (100%) BT-50, Ranger

Pickup car

Market Share: Exhaust Manifold

Passenger car

18 Note : Full Capacity= 500 hrs./month

25% 396,000 Kubota Blade 66% 86,000 98% 36,000 Kubota Machining 75% 63,000 65% 63,000 Fly Wheel 62% 255,000 40% 255,000 Coil Spring

60%

55% 46% 65% 68% 68% 56%

Utilization (% )

1,500 100,000 46,000 95,000 109,000 240,000

Capacity (pcs) 2009A Utilization (% ) Capacity (pcs) 2010E Production Volume (Per Month)

70%

75% 73% 75% 75% 76% 89% 1,500 100,000 47,000 95,000 121,000 240,000 Leaf Spring (tons) Axle Shaft (incl. Kubota) Exhaust Manifold Drum Brake Weighted Utilization rate Stabilizer Bar Disc Brake

Capacity and Utilization Rate

M a c h I n i n g S p r I n g

F

• rgi

Agenda

I ndustry Overview Group Business Performance Review Future Outlook Appendices

20

Financial Highlights

18% 24%

• 4%

16% 7% 5%

• 0.04%

6% 7% 8% 3%

• 14%

0.7% 9% 7%

QoQ

1,025 358 133 2,561 3,800 2,597 6,361 635 768 1,240 371 1,159 5,939 5,814

2008

14% 540 434 114 2,868 3,324 2,347 6,192 314 429 913 351 767 4,348 4,295

2009

• 14%
• 0.6%

31 27 32 Interest Exp.

• 47%

274% 212 174 57 CAPEX 17% 119 2,868 3,324 2,347 6192 191 218 375 86 321 1,416 1,406

4Q09

• 44%

311% 234 57 NOPAT 12% 19% 3,068 2,584 Equity

• 13%
• 7%

3,495 3,279 Total Liabilities 21% 12% 114 102 Depreciation

• 26%

138% 384 161 EBITDA

• 6%

17% 96 81 SG&A

• 51%

700% 203 25 Net Profit 15% 9%

Effective Tax Rate

• 10%
• 6%

2,346 2,483

• Int. Bearing Debt
• 3%

12% 6,563 5,862 Total Assets

• 34%

149% 324 130 GP

• 27%

64% 1,554 950 Total Revenue

• 26%

61% 1,511 939 Sales

YoY YoY 1Q10 1Q09

Unit : Bt.mn

21

Key Financial Ratio

10.23 0.68 15.65 1.14 0.76 18.57 23.27 27.35 1.81 29.55 12.73 13.06 24.74 21.39

1Q10

8.54 2.12 9.33 1.48 1.01 15.25 21.25 27.55 1.21 26.62 10.93 10.69 20.89 19.94

2008

10.44 22.28 5.63 % ROCE 8.54 17.34 4.66 % ROIC 9.56 0.64 13.01 1.16 0.82 28.08 2.20 29.36 12.14 13.38 26.45 22.84

4Q09

1.69 2.84 EBITDA/CAPEX (x) 1.05 0.08 EPS (bt) 7.98 9.00 Interest Coverage (x) 17.74 12.16 % ROFA 5.01 1.66 % ROA 11.58 3.95 % ROE 9.56 8.61 BVPS (bt) 1.16 1.27 DER (x) 0.82 0.96

Int.Bearing Debt/Equity (x)

7.23 2.67 % NPM 20.99 16.99 % EBITDAM 17.86 13.85 % GPM

2009 1Q09

22

Sales Breakdown

29% 30% 32% 33% 33% 35% 14% 13% 10% 11% 9% 14% 12% 12% 11% 10% 10% 13% 4% 4% 3% 3% 4% 3% 4% 3% 3% 3% 3% 4% 7% 7% 8% 8% 8% 8% 8% 25% 23% 26% 24% 25% 15% 7% 7% 7% 8% 6% 0% 25% 50% 75% 100%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Domestic 97% OEM 94%

Axle Shaft Leaf Spring Disc & Drum Brake Exhaust Manifold Fly Wheel (+ Comp) Stabilizer Bar Coil Spring Others

(i.e. Big Hub, Bracket, Timing Cover, Camshaft)

Bt.mn 1,439 939 815 1,406 P/U & PPV Parts 83% 1,136 1,511

23

Customer Base

32% 25% 21% 23% 32% 37% 23% 25% 27% 26% 27% 26% 8% 8% 9% 7% 7% 7% 4% 7% 5% 5% 25% 22% 19% 22% 11% 11% 8% 8% 7% 7% 7% 8% 10% 9% 6% 9% 8% 6% 7%

0% 25% 50% 75% 100%

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10

Mitsubishi Toyota Honda I suzu AAT Others

Bt.mn 939 1,439

Kubota

815 1,406 1,136 1,511

Agenda

I ndustry Overview Group Business Performance Review Future Outlook Appendices

25

Eco-car Projects Update

• RFQ received
• 10,000 car production expected in

the 1st yr

• 412-rai Land purchased at Hemraj

Industrial Park, Rayong

• Factory construction on process
• Launching year postponed from

2010 to ~ Mar 2012

Suzuki

SBG’s Order Progress OEM Update

Car Makers

• Insist to proceed eco-cars, but

postpone

• Launching year postponed from

2010 to 2012

• Project will go earlier than original
• plan. Lunching year ~ 1Q2011
• Launching to postpone from

10/2010 to 3/2011

• Platform of 2009 Nissan March/

Micra

• Launching ~ Mar 2010
• Also export to Japan
• Coil Spring and Stabilizer RFQ

Received.

Toyota

• RFQ submitted

Mitsubishi

• Disc Brake: confirmed
• Drum Brake: confirmed

Honda

• Front & Rear Coil Spring: confirmed
• n both 4 &5 door models (solely)
• 50,000 car production expected in

the 1st yr, and double in the 2nd yr

Nissan

Note: Toyota & Honda

• negotiating for lower production requirement from 100K units

Mitsubishi

• negotiating for lower excise tax

Agenda

I ndustry Overview Group Business Performance Review Future Outlook Appendices

27

Group Development

• A well established and reputable vehicle parts manufacturer, with

concentration on the OEM market.

• The Group started its automotive parts manufacturing business in

1962, and is considered as one of Thai pioneers in the business.

• Establishment of

Somboon Spring Ltd.

• Establishment of

Somboon Malleable Iron (SBM)

• Establishment of Bangkok

Spring Industrial (BSK)

• Began the move into OEM

market

1962

• Establishment of

Somboon Advance Technology (SAT)

• Start to

supply TOYOTA

• Group

Restructuring

• Listed
• n

SET

1975 1977 1995 2002 2004 2005 2007

• Acquiring ICP

by 100% shareholding

28

Group Structure and Business

SAT

(Paid Up 300 mb)

SBM

(Paid Up 160 mb)

BSK

(Paid Up 130 mb)

Tsuchiyoshi Somboon Coated Sand

(Paid Up 72 mb)

Yamada Somboon

(Paid Up 150 mb)

Nishinbo Somboon Automotive

(Paid Up 732.6 mb)

Somboon Somic Manufacturing

(Paid Up 300 mb)

100% 100% 21.25% 20.00% 2.90% 1.80%

Somboon Holding 27% Kittapanich Family 26% Thailand Equity Fund 10% Others 37%

Sales ~ 231 mb, TA~ 225mb, GPM 12.1% , NPM 2.6% Sales ~ 2,150 mb, TA~ 1,697 mb, GPM 17.5% , NPM 5% Sales ~ 1,851 mb, TA~ 1,703 mb, GPM 23.8% , NPM 16.7% Sales ~ 1,972 mb, TA~ 1,259 mb, GPM 18.4% , NPM 9.8%

• Steering Column Assembly
• Water Pump Assembly
• Oil Pump
• Ball Jointed
• Tie Rod End
• Outer Track Rod
• Stabilizer Linkage
• Brake System
• Casting

(Rasin/Sand)

I CP

(Paid Up 185 mb)

100%

29

Certificates and Awards

• Group Company has been receiving many awards and accreditations of its unique

developing and its production quality-being rate as one of the finest in Supplier List.

• Proven performance since inception in 1972 i.e., QCD grading, Quality Award by MMth

(zero defect), TPS (Toyota Production System), QCC award & network by HINO

• ISO 9002, QS 9000, ISO 14001, ISO/TS 16949 (OEMs required)

Q Q Q M M M D D D C C C

SBG SBG

E E E

30

Diff Case (Front) Assy Diff Case (Rear) Assy Axle Front Assy (35HP & 45HP) Axle Rear Assy (35HP & 45HP)

Parts for Kubota: Tractor

Case Front Gear (RH & LH) Case Bevel Gear Case Brake Case Rear Axle (RH & LH) Case Front Axle Holder Front (RH & LH) Cover Front Axle Case Diff (Rear) Diff Case Cover Diff Case (Front) Diff Case Bearing (RH & LH) Holder Bearing Clutch Bearing Case (RH & LH) Holder Bearing Drive Case Valve & Push Rod (Engine Part-Forging)

Body Part & Power train part (Casting & Machining) Rotary Blade (Forging) Axle Shaft (Forging&Machining) Power train part (Assy)

31

Parts for Kubota: Harvest Machine

32

Siam Kubota Tractor Co., Ltd (SKT)

Siam Kubota Industry Co., Ltd (SKI)

(since 1978, paid up … mb)

Siam Cement Plc. (SCC) Kubota Corporation, Japan Marubeni Corporation, Japan Min Sen Machinery Co.,Ltd

51% 40% 4.74% 4.26%

Siam Kubota Tractor Co., Ltd (SKT)

(since 2007, paid up 900 mb)

• Trading
• Leasing
• Manufacturing

60% 40%

Sales’07 ~ 13,500 mb, TA~ …. mb, GPM ….% , NPM 7.1% Sales ~ 338,000 mb, TA~ …. mb, NPM 6.8% Sales’08 ~ 25,000 mb, TA~ …. mb, GPM ….% , NPM ..% Estimated Mass Run ~ 1Q09 with volume planned ~ 25,000 units per annum

Delivery to SKI (as SKT’s trading)

Harvest Machine

Thank You Thank You

Somboon Advance Technology Public Company Limited –I nvestor Relations Department

• Tel. + 66 2 728-8596, Fax. + 66 2 728-8513, Email: ir@somboon.co.th, http://www.satpcl.co.th

Questions and Answers