SNC SNC FORMER PLC Opp day Aug 8, 2016 1 SNC Agenda 1 - PowerPoint PPT Presentation

SNC SNC FORMER PLC Opp day Aug 8, 2016 1

SNC Agenda 1 Financial performance 2 Market brief 3 Business highlight 2016 2

SNC Financial Highlight Sales Gross Profit & Margin 12,000 1,500 Y14 Y15 11.0% 11.9% 10.6% 11.1% 10,000 Sale 100 100 1,200 8,140 RM 73 74 7,648 7,405 7,155 8,000 DL 3 3 866 841 849 822 900 12.8% OH 13 12 CoGS 89 89 6,000 563 4,404 600 4,000 GP EA part 15-20% 300 2,000 EA OEM 3-5% -6% +3% +10% Auto 20-25% 0 0 Y12 Y13 Y14 Y15 1h16 Y12 Y13 Y14 Y15 1h16 Net Profit & Margin EBITDA & Margin 1,200 1,200 1,000 1,000 9.1% 9.0% 9.7% 9.3% 6.5% 734 800 800 697 694 687 5.9% 5.0% 5.1% 9.4% 5.7% 600 600 494 423 415 410 377 400 400 250 200 200 -14% -11% +9% -0% -1% +7% 0 0 Y12 Y13 Y14 Y15 1h16 Y12 Y13 Y14 Y15 1h16 3

SNC Financial performance Sale (MB) EAT (MB) 3,000 250 2,319 SCAN 2  26 -17% 1,925 TTD 31  26 -394 MSPC 1  3 34 200 110 Other +26% 24 Net compensation +21 55 LME $6,423  2,000 800 150 EA-Parts 88 $4,562 -2% 86 -26 -2 774 A/C  Parts 99  87 194 100 Auto WM  , Ref  SFHI -3  -5 82 +34 EA-Parts 96 Pipe 126  161 1,000 228 -14 50 chassis 1  4 Sale  exp  EA-OEM 1,291 Plastic 67  63 Auto 18 28 -423 868 +10 7 Defect  OT  6 - EA-OEM OEM A/C -1 compensation  172k  119k units (34) (30) Other - +4 (50) 2q15 2q16 SAHP 2q15 2q16 SCAN -27  -20 21k  15k units SSMA -4  -1 EA-OEM Auto EA-Parts Other MSPC -3  -6 (100) TTD 0  +2 Other 0  -4 OEM 1q16: 1292/50 (3.8%) 4 OEM 2q16: 868/30 (3.5%)

SNC Financial performance Sale (MB) EAT (MB) 7,000 600 5,091 SCAN 2  39 -13% 4,404 TTD 54  53 -687 274 6,000 MSPC 1  8 500 +6% 62 24 Other Net compensation 5,000 +40 102 LME $6,376  264 -5% 250 400 $4,821 1,758 EA-Parts -14 4,000 -106 1,652 A/C  300 WM  , Ref  444 Auto 3,000 Parts 229  195 +46 SFHI -4  -8 225 187 490 Pipe 281  339 -38 EA-Parts 200 2,000 chassis 3  16 Sale  exp  Plastic 160  135 EA-OEM 2,827 -667 2,160 1,000 100 36 +26 62 OEM A/C Defect  OT  Auto 368k  274k units compensation  63 56 -7 - EA-OEM - SAHP (55) (60) 1h15 1h16 +5 SCAN -51  -44 Other 34k  27k units SSMA -5  -2 (100) EA-OEM Auto EA-Parts Other MSPC -6  -9 1H15 1H16 TTD -2  +5 Other 4  -5 5

SNC Key Milestone SNC is planning to expand part business for home appliance and automotive products in order to get the maximum benefit from economy of scale Automotive Residential Compressor Freezer Metal Plastic Daimond Aluminum air-cond Mould Water heater air-cond air-cond sheet EA, Auto tools parts Heat pump parts parts Material Small supplier Player 1981 1981 1981 2005 2010 2012 2013 2014 2015 2015 Parts Big supplier Player SSMA 2012 Manufacturer OEM ODM Market 2008 2005 2015 Dominator 6

SNC Market brief Automobile 3.0 Export Domestic 2.5 2.5 2.5  Car production in 1h16 = 0.99 M. unit 1.9 1.9 2.0 1.2 2.0 M.units increased 6.5% YoY 1.6 1.5 0.99 0.93 1.0  Domestic sale in 1h16 = 0.37 1.5 (63%) 0.8 0.62 1.0 1.0 0.58 (62%) M.units increased = 2.8% YoY 0.6 1.0 65% -11%68%0% -24% 1%  Export sale in 1h16 = 0.62 0.4 0.5 (37%) 0.36 0.2 (38%) 0.37 M.units increased = 6.9% YoY 0.0 0.0 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16E 1H16 1h15 1h16 QoQ YoY 1Q16 vs 2Q16 2Q15 vs 2Q16 CAR 1Q16 2Q16 %Increased CAR 2Q15 2Q16 %Increased Production 506,874 486,506 -4.0% Production 410,711 486,506 18.5% Domestic Sales 181,318 188,734 4.1% Domestic Sales 171,217 188,734 10.2% Export 325,556 297,772 -8.5% Export 239,494 297,772 24.3% 7 Source: 1. สถาบันยานยนต์, 2. ส านักงานเศษรฐกิจอุตสาหกรรม , 3. สถาบันไฟฟ้า และอิเลคทรอนิคส์ ,4. SNC Survey

SNC Market brief Air Conditioners  The 1h16 - AC production in Export Domestic Thailand was 14.31 M. unit, 13.7% 25 18.1 20.5 21.5 21.0 21.5 20 20 increased YoY. Mostly, the demand 15.7 15.0 14.3 14.31 15 12.58 M. unit 15 2.4% is coming from the export market. 5% 10 (83%) -2.5% (83%) 13% 10 11.82 The forecast of this year is 5 21% 10.39 -4% 5 0 estimated around 21.5 M. unit, (17%) 2.19 2.49 (17%) 0 1h15 1h16 Compressors  The 1h16 - Compressor Export Domestic production in Thailand is 20 16.8 10.00 14.6 15.0 15.4 14.3 13.1 12.4 estimated at 7.68 M.unit while 7.68 15 8.00 7.04 those of 1h15 was 7.04 M.unit, M. unit 6.00 10 7.68 3.95 (51%) 3% (52%) 3.69 4.00 9.1% increased YoY. 2.7% 5 35% -8% 2.00 -13% 3.35 (48%) -5% 3.73 (49%) 0 0.00 1h15 1h16 8 Source: 1. สถาบันยานยนต์, 2. ส านักงานเศษรฐกิจอุตสาหกรรม , 3. สถาบันไฟฟ้า และอิเลคทรอนิคส์ ,4. SNC Survey

SNC Market brief Refrigerator  The 1h16 production is Export Domestic 10 4.00 estimated at 3.41 M.unit while 7.2 6.7 6.5 6.6 6.8 8 3.41 3.37 5.7 6.2 M. unit 3.00 those of 1h15 was 3.37 M.unit, 6 2.50 2.50 (74%) (73%) 2.00 3% 3.4 slightly increased 1.2% YoY. 4 16% 1.8% -7% -4% 9% 1.00 2 0.91 0.87 (26%) (27%) 0.00 0 Y10 Y11 Y12 Y13 Y14 Y15 Y16E 6mth16 1h15 1h16 Washing Machine  The 1h16 production is Export Domestic 10 4.00 estimated at 3.18 M.unit while 3.18 8 2.80 6.6 6.8 6.1 3.00 those of 1h15 was 2.80 M.unit, 6.0 6.2 5.4 2.38 M. unit (75%) 5.2 6 increased 13.6% YoY. 2.00 (75%) 2.11 3% 4 3% 3.2 1.00 -10% 22% 9.6% (25%) (25%) 0.80 0.69 0.00 2 -18% 1h15 1h16 0 Y10 Y11 Y12 Y13 Y14 Y15 Y16E 6mth16 9 Source: 1. สถาบันยานยนต์, 2. ส านักงานเศษรฐกิจอุตสาหกรรม , 3. สถาบันไฟฟ้า และอิเลคทรอนิคส์ ,4. SNC Survey

SNC Automotive segment  Pipe :  Indirect export order   Production line improvement expenses   Plastic:  Motorcycle order   Cost controllable  Chassis Pick up car  , Battery case  Sale Up 30-35% 1202 907 Y15 Y16 GP 20-25% 10 10 10

SNC OEM segment  A/C assembly:  Production of window  , split   Production efficiency   Staff compensation -24 MB in q2,  Impairment -5 MB in q1,  Leam Chabang  Rayong in q3  SAHP: Production  exch gain  Sale 4,048 Down 13-15% 3,607 Y15 Y16 GP 3% 11 11 11

SNC Parts segment  Copper price  LME USD 6000 to 4800  A/C part Pipekit  high competition  SFHI piptekit insulation : In 2h16, more sale to Australia, Philippine  Loss Y16   Plastic parts: good order  , low margin order   Sheet metal: New customers from Turkey. Sale 3,034 2,985 Same as Y15 GP 15-20% Y15 Y16 12 12 12

SNC Other segment  MSPC : Mould sale  in 2q16  Loss Y16   SSMA : Same as Y15.  TTD: 1 H16 expenses  2 H16 More competition  SCAN : Y16 Sale 3 x , xxx  5x,xxx units but not breakeven Sale 217 152 Y15 Y16 13 13 13

SNC conso Sale 8,410 Same as Y15 8,011 Y15 Y16 14 14 14

SNC Water Reserve Project @Rayong Purpose: - To be the water reserve for SNC Rayong plants. Land Area : 41 Rai Main schedule : - Land adjustment : Jul-Aug. 2016 - Tap Water Plant : Aug.-Sep. 2016 - Water Pipeline : Sep. 2016 - Supply to SNC : from Oct. 2016 Capacity : - Water reservoir : 100,000 m 3 - Tap water plant : 20 m 3 /hr 15

SNC Water Reserve Project @Rayong Land Entrance Reservoir Construction site 16

SNC Water Reserve Project @Rayong 17

SNC Move LCB Project 18

SNC Move LCB Project 19

SNC T he Outstanding Auto-parts Maker ’ s Award 2016 20 Source: TSAE Automotive Handbook and Directory 2016 - 2017

SNC 21 21 21

SNC Thank you