AAPICO HITECH PLC. [AH]ah.listedcompany.com/misc/slides/20130528-AH-Oppday1Q...Chassis Frame Forged and Machined Parts Pressed Parts and Stamping Parts Plastic Parts and Plastic Fuel

Copyright by AAPICO HITECH PLC 1

Copyright by AAPICO HITECH PLC. Opportunity Day Presentation

May 28th, 2013

The Stock Exchange of Thailand

AAPICO HITECH PLC. [AH]

Financial Performance for the 1st quarter of 2013

Mr. Yeap Swee Chuan


Company Profile

Industry Overview

Financial Summary

Events & Activities

Appendices

Agenda


Copyright by AAPICO HITECH PLC.

Company Profile


“AAPICO Group’s Vision is to become a

“Lean” and “Happy” world-class organization

with 4 fundamental values of

Happy Customers,

Happy Employees,

Happy Shareholders and

Happy Public”

VISION


HAPPY CUSTOMERS

D – Delivery

E – Engineering

M – Good Management

S – Safety

Q – Quality

C – Cost

HAPPY PUBLIC HAPPY SHAREHOLDERS

Profitability Corporate Social Responsibility

Teamwork

Look at problems as opportunities

Love Family, Company and Country

HAPPY EMPLOYEES

Loyalty and Honesty

Mutual Respect

Lean & Happy Organization Where we want to go?

How do you want people to

remember us

Manufacturing

Where we are

VISION


Main Group Structure

Manufacturing Dealerships Technology

OEM Auto Parts

Steel Fuel Tanks

Chassis Frame

Forged and Machined

Parts

Pressed Parts and

Stamping Parts

Plastic Parts and

Plastic Fuel Tanks

Fuel Lines, Brake

Lines, Engine Parts*

Jigs and Dies

Ford

Honda

Mitsubishi

Hyundai*

Car Navigation

Oracle System

* Associate Companies


OEM Customers


Strategic

Shareholder Joint Ventures Technical

Partners

Partners


Recent Joint Ventures

Edscha-AAPICO

Automotive Co., Ltd

Manufacturer of door checks and

door hinges.

Registered capital of Baht

40,000,000

Edscha 51% : AAPICO 49%

AAPICO Lemtech

(Thailand) Co., Ltd

Development, manufacture,

assembly, sales of automotive,

electronic and computer parts in

Thailand and overseas.


40,000,000

AAPICO 60% : Lemtech 40%



Edscha-AAPICO

Automotive Co., Ltd

Manufacturer of door checks

and door hinges.


40,000,000


SUMINO AAPICO

(Thailand) Co., Ltd

Manufacture of precision

press welding parts for cars

for original equipment

manufacturers in Thailand.


200 million.

Expected investment of Baht

600 million.

Sumino 51% : AAPICO 49%

Expected start date: Y2014

Left to Right:

1. Mr. Masahiro Sumino (Director, SUMINO KOGYO),

2. Mr. Takeo Sato (President, SUMINO KOGYO)

3. Mr. Yeap Swee Chuan (President & CEO, AAPICO HITECH)

4. Mrs. Teo Lee Ngo (Executive Director, AAPICO HITECH)



Edscha-AAPICO

Automotive Co., Ltd

Manufacturer of door checks

and door hinges.


40,000,000


AAPICO – SODECIA

Joint Venture Agreement

Manufacture of chassis

cradles for passenger cars,

car cross beams and welded

assemblies for BIW.

To be located in the Eastern

Seaboard area.

Expected start date: 2Q 2014

Left to Right:

1. Ms. Yeap Xin Rhu (AAPICO HITECH PLC)

2. Mr. Yeap Swee Chuan (President & CEO, AAPICO HITECH PLC)

3. Mr. Rui Monteiro (CEO, SODECIA SGPS SA)

4. Mr. Miguel Lopes Cardoso (Board member, SODECIA SGPS SA)


China

Malaysia

Main operations in Thailand

Global Operations


Bangkok

Ayutthaya

Rayong

Chonburi Samutprakan

AH, AHP, AHT, AITS

AP

AA, ASP, AF

AH, AP

Factories in Thailand


CHINA

INDIA THAI

MSIA

INDO

PHIL

ASIA JAPAN

EUROPE AMERICA

Business Strategy



Industry Overview


Thailand Car Industry Source: The Federation of Thai Industry (Automotive Industry Club)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Forecast

Others

Passenger Car

Pick up / PPV

Tom Yum

Kung

Hamburger

Flood

Thailand Car Production Trend 1991-2013 Apr

Unit : Million


Thailand Car Production Source: The Federation of Thai Industry (Automotive Industry Club)

Unit : Million

0.892

0.645

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011 2012 2013

Pick up /

PPV70%

Passenger

Car28%

Others

2%

2012

Pick up / PPV53%

Passenger

Car45%

Others2%

2013

Car production in Jan-Apr

increased from 644,540 units in

2012 to 891,947 units in 2013,

representing 38.4% growth year-

on-year.

Car Production : Jan-Apr

644,540 units

891,947 units


Thailand Car Production Source: The Federation of Thai Industry (Automotive Industry Club)

Unit : Million

Trend Car Production by month from 2010 – 2013 Apr

-

50,000

100,000

150,000

200,000

250,000

300,000

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

Others

Passenger Car

Pick up / PPV

17.4%

62.8%


1-Ton Pick up

43%Passenger

Car49%

Others8%

2013

1-Ton Pick

up56%

Passenger

Car37%

Others7%

2012

Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)

Unit : Million

Car domestic sales in Jan-Mar

increased from 367,109 units in

2012 to 522,914 units in 2013,

representing 42.4% growth year-

on-year.

Car Domestic Sales: Jan-Apr

367,109 units

522,914 units

0.367

0.523

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011 2012 2013


Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)

Unit : Million

Trend Car Domestic Sales by month from 2010 – 2013 Apr

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

Others

Passenger Car

1-Ton Pick up

24.9%

30.5%



Financial Summary


Financial Highlights Unit : Million Baht

*Note: 1Q12 and 1Q13 have been restated to reflect changes in accounting policies (TAS12 Income Taxes)


Sales & Service Income

2,831 2,602

3,032

1,891

3,003

3,935 4,303

4,880 4,542

Q1 Q2 Q3 Q4

Sales & Service Incomeby quarter

(Unit : Million Baht)

2011Q 2012Q 2013Q

2,831

5,433

8,465

10,356

3,003

6,938

11,241

16,120

4,542

Q1 Q2 Q3 Q4

Sales & Service Incomeyear-to-date trend


2011YTD 2012YTD 2013YTD



Thailand81%

Malaysia14%

China5%

1Q13Manufac-

turing

72%

Dealers28%

Navi & Others

0%

1Q13

Sales contribution by countries


Sales contribution by segments




1,136

788 716

15

1,552 1,430

800

35

Chassis Dies & Press Parts

Forged & Plastic

Jigs

Sales & Service Incomeby products(Unit : Million Baht)

1Q12 1Q13

134 159

247

328

648

281

Ford Honda Mitsubishi

Sales & Service Incomeby products(Unit : Million Baht)

1Q12 1Q13


EBITDA

212 163

247

-373

243

436 478

538 470

Q1 Q2 Q3 Q4

Earnings before interest, tax and depreciation by quarter


2011Q 2012Q 2013Q

212

375

622

249

243

679

1,157

1,695

470

Q1 Q2 Q3 Q4

Earnings before interest, tax and depreciation ytd trend


2011YTD 2012YTD 2013YTD

Insurance

Claim 2012

Insurance

Claim 2012 Flood

2011

Flood

2011


Net Profit to equity holders

88 50

136

-666

95

280

168

374 279

Q1 Q2 Q3 Q4

Net Profit attributable to equity holders by quarter


2011Q 2012Q 2013Q

Insurance

Claim 2012

Insurance

Claim 2012 Flood

2011

88 138

274

-392

95

375

543

917

279

Q1 Q2 Q3 Q4

Net Profit attributable to equity holders year-to-date trend


2011YTD 2012YTD 2013YTD

Flood

2011


Financial Performance

0

5

10

15

20

25

30

35

40

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Unit : Millions

Sales & Share price trend from 2002 - 2013 Mar

Sales & Service Income Share price


AAPICO Hitech Customer profile

AAT19%

NISSAN15%

ISUZU7%

TOYOTA; 5%

SUMMIT; 3%

HONDA; 3%

KYOKUYO; 3%

CALSONIC; 2%

GM; 1%Others42%

1Q13

Press and Stamping Parts


AAPICO Forging Customer profile

Forged and Machined Parts

AAT25%

GKN24%

TRTC14%

DANA10%

MAGNA10%

AAM5%

TYM5%

Others7%

1Q13


AAPICO Plastics Customer profile

Plastic Parts

AAT39%

TYM13%

FORD9%

JSI7%

TAKAGI5%

HONDA; 5%

TS TECH; 2%

HINO; 2%

Others18%

1Q13


Utilization : By Factories

Press parts and Assembly Parts

AH – Ayutthaya 95%

AHP – Ayutthaya 95%

AH – Rayong 90%

Forging Parts

AF 90%

Kunshan 65%

Shanghai 95%

Chassis Frames

AA 95%

ASP 95%

Plastic Parts

AP – Bangplee 70%

AP – Rayong 65%


Utilization : By Products

No. Products Utilization

1 Press Parts 95%

2 Fuel Tank (Steel) 25%

3 Fuel Tank (Plastic) 65%

4 Pick Up Frames 95%

5 Forging 85%

6 Washer Tank 70%

7 Door Check 85%

8 Brake/Fuel Line 85%

9 Engine Parts 85%

10 Door Sash 95%

11 Jigs 70%

12 Dies 90%


Fluctuation of Steel Price

No significant impact on the Company’s financial results since 80% of our

material costs (steel) is under centralized purchasing scheme.

Labor problems

Labor Strike : good welfare and good communication.

Labor shortage : recruiting non-Thai labors (Cambodian, Burmese).

300 Baht daily minimum salary has been implemented.

Foreign Exchange Rate Risk

No significant impact as more than 90% of sales are in local currencies.

Natural Disasters

Financial impact is taken up by insurance coverage.

For flood protection, dyke has been built around the industrial estate.

Major Risk Factors



Events & Activities


AGM No.1/2013

Place: Professor Sangvien Indaravijaya Auditorium, SET

Date: April 26th, 2013 / Time: 14:30 – 16:00


Factory visit

Place: AAPICO Structural Products, Amata Nakorn, Chonburi

Date: May 9th, 2013 / Time: 12:30 – 18:00


Factory visit





Appendices



AAPICO Group Facilities

and Products


AAPICO Group : Major Subsidiaries

Products Company

Chassis AAPICO Amata

AAPICO Structural

Products

Press Parts AAPICO Hitech

AAPICO Hitech Parts

AAPICO Mitsuike

Forging and

Machining

Parts

AAPICO Forging

Kunshan Chaitai-

Xincheng

AAPICO Shanghai

Plastics Parts AAPICO Plastics

Products Company

Assembly Jigs AAPICO Hitech

Tooling

Dies AH – Die Division

Car Dealership New Era Sales (TH)

Able Motors

New Era Sales (MA)

Tenega Setia

Resources

Car Navigation AAPICO ITS

A Maction


Market Share of Single Products

Others

AAPICO

Customer : Isuzu 100%

Customer : Isuzu 100%

Ford B-Car 100%

29%

71%

Others

AAPICO

32%

68%


Market Share of Single Products

Others

AAPICO

Others

AAPICO

Customer : Ford & Mazda 100%

Customer : Ford & Mazda 100%

93%

7%

20%

80%



AAPICO Hitech PLC. (AH)

Main Office and Factory

Land/Factory: 48,000 m2 / 10,800 m2

Main products: Dies, Stamping and Assembly Parts

Location: Hitech Industrial Estate, Ayuthaya

AAPICO Group : Subsidiary

Land/Factory: 16,000 m2 / 9,700 m2

Main products: OEM Stamping Parts

Location: Amata City Industrial Estate, Rayong

2nd Factory

Stamping Parts and Dies


Dies

Steel Fuel Tanks Door Checks Press Parts

Stamping Parts and Dies



AAPICO Hitech Parts Co., Ltd.(AHP)

Shareholding %: 100%

Land/Factory: 24,000 m2 / 10,800 m2

Main products: OEM Stamping Parts


Stamping and Assembly Parts



Technology and Machines



AAPICO Hitech Tooling Co., Ltd.(AHT)

Shareholding %:100%

Factory: 11,592 m2

Main products: Assembly Jigs


Assembly Jigs



AAPICO Amata Co., Ltd. (AA)

AAPICO Structural Products Co., Ltd. (ASP)

Shareholding %: 100%

Land/Factory: 32,000 m2 / 10,400 m2

Main products: Chassis Frames

Location: Amata Nakorn, Chonburi

Shareholding%: 100%

Land/Factory: 64,000 m2 / 16,000 m2

Main products: Chassis Frames


Chassis Frame



Chassis Frame for

ISUZU D-Max

Chassis Frame



AAPICO Forging PLC. (AF)

Shareholding% : 100%

Land/Factory: 24,000 m2 / 12,000 m2

Main products: Forged Parts





Kunshan Chaitai-Xincheng Precision Forging Co., Ltd. (AK) : China

AAPICO Shanghai Co., Ltd. (AS) : China

Shareholding%: 100%

Land/Factory: 61,752 m2 / 18,526 m2

Main products: Forged parts

Location: Kunshan, China

Shareholding%: 100%

Main products: Machined parts

Location: Shanghai, China




Transmission Shafts

Connecting Rods

Crank Shafts Copper Forging Parts

Lambda Intermediate

Shafts


Wheel Hubs

AS & AK AF



AAPICO Plastics PLC. (AP)

Main Office and Factory: Holding 100% by AF

2nd Factory

Land/Factory: 35,200 m2 / 24,300 m2

Main products: Automotive Plastic Parts

Location: Bangplee Industrial Estate, Samutprakarn

Land/Factory: 16,000 m2 / 4,440 m2

Main products: Plastic Fuel Tanks/ Washer system

Location: Amata City, Rayong

Plastic Parts



HVAC Units Interior Trims

Washer Bottles Plastic Fuel Tanks Plastic Parts

Plastic Parts



AAPICO ITS Co., Ltd. (AITS)

Shareholding%: 60%

Land/Factory: 2,000 m2 / 700 m2

Main products: POWERMAP

Car Navigation: PowerMap



It is Thailand’s first local car

navigation system to display real-

time 3D landmarks and junction

views.



Picture-clear display of exit ramps

clearly shows their actual status.



Able Motors Co., Ltd. (AM)

New Era Sales Co., Ltd. (NESC)

Shareholding%: 100%

Main products: Mitsubishi Cars

Location: Navanakorn,

Lardprao

Shareholding%: 100%

Main products: Ford Cars

Location: Ramintra,

Samutprakarn

Dealership



New Era Sales (M) Sdn. Bhd. - Malaysia

Tenaga Setia Resources Sdn. Bhd.– Malaysia

Shareholding%: 49%

Main products: Honda Cars

Location: Kajang

(Suburb of Kuala Lumpur)

Shareholding%: 49%

Main products: Honda Cars

Location: Petaling Jaya

(Suburb of Kuala Lumpur)

Dealership



Forging and Machining Factory Completed and on-going operations

Operations in China

Machining

Forging


Able Sanoh Industries Co., Ltd. (ASICO)

AAPICO Group : Associates

Shareholding%: 46%

Land/Factory: 15,800 m2 / 9,386 m2

Main products: Brake lines, Engine parts


Brake Pipes, Fuel Lines Brazing Parts

Fuel and Brake lines

Fuel and Brake Lines


Minth AAPICO Co., Ltd. (MA)

Shareholding%: 40%

Land/Factory: 32,000 m2 / 7,000 m2

Main products: Trim, Structural parts

Location: Amata City, Rayong

Door Sash

AAPICO Group : Associates



AAPICO’s CSR Activities


CSR: Internal

World Class Manufacturing (WCM) activities

Quality of Life (QOL) clubs:

Buddhism Club

Sacrifice Club

Health Club

Saving Club


CSR: Internal

3 days – 2 nights training session intends to encourage participants to

remember and practice the fundamental of life, understand roots cause

of daily problems such as drugs, overspending in order to help improve

their quality of life.

Quality of Life Training


Flood Donation

Blood Donation Tsunami Donation

Quality of Life Clubs

Sacrifice Club

CSR: Internal


Drug Free Campaign Launch

Health Club


CSR: Internal


Buddhism Club


CSR: Internal


Help promote household accounting recording in order to

understand the status of their regular income and expenses.

Committed Saving Club


CSR: Internal


AAPICO continuously give out scholarship for Employees’ children

Educational Scholarship

CSR: Internal


CSR : External

Safety Awareness

Promote Thai Culture

Tree Planting


Relief Center during the 2011 Big Flood

CSR : External



Documents

AAPICO HITECH PLC. [AH]ah.listedcompany.com/misc/slides/20130528-AH-Oppday1Q...Chassis Frame Forged and Machined Parts Pressed Parts and Stamping Parts Plastic Parts and Plastic Fuel