Halcyon Technology Public Co., Ltd.Product Types Product Types -- Halcyon TechnologyHalcyon Technology Polycrystalline Diamond (PCD) O f th h d t b t d i tti t l fOne of the hardest

Halcyon Technology Public Co., Ltd.

10 March 2010

ContentContent

TOPIC Page

Business Overview

Product Types (HT)

3

4-7

New Products

Product Types (HM)

8-9

10-11Product Types (HM)

Financial Highlights

10-11

12-17

New Machine & Product

Industry Outlook

18-21

22-35

Customer Base

General Information

36-37

38

22

Business Overview Business Overview -- Halcyon GroupHalcyon Group

Halcyon Technology (HTECH) Halcyon Technology (HTECH) since Nov. since Nov. 20022002

Authorized Capital 240 MB

• A manufacturer of diamond cutting tool, including Polycrystalline Diamond (PCD)including Polycrystalline Diamond (PCD), CBN, Natural Diamond, and Carbide

100.00%

Halcyon Metal (HM)Halcyon Metal (HM)

70.00%

Haltek (HC)Haltek (HC)Halcyon Metal (HM)Halcyon Metal (HM)since Nov. since Nov. 19931993


Haltek (HC)Haltek (HC)since Apr. since Apr. 20102010


• A manufacturer of high precision parts, including Jig & Fixture, Holder, and Metal Fabrication

• A trading company for Indexable Inserts and Solid Carbide Cutting Tool System

33

Product Types Product Types -- Halcyon TechnologyHalcyon Technology

Polycrystalline Diamond (PCD)Polycrystalline Diamond (PCD)

O f th h d t b t d i tti t l f One of the hardest substances used in cutting tools for

non-ferrous materials

The hardest material with highest wear resistance to

abrasion

High density material which can produce high surface

finishing partsg p

Long-life tooling & multiple resharpening

Maximum efficiency for non-ferrous materials

PCD Boring Tool

Group of ProductsGroup of Products

PCD Reamer g

PCD Endmill Tool

PCD Insert

PCD B i T l

PCD Hollow Tool

PCD Drill

C bid S i l T l

44

PCD Brazing ToolSource: www.technologymedia.com Carbide Special Tool


ProductProduct DetailDetail ApplicationApplication

PCD Boring ToolPCD Boring Tool There is one-lip cutting edge for boring straight or step hole as small as 3.0 MM.

High precision but need some polishing for very fine surface finish

Electronic parts and aluminum products, Most application in turning process

PCD Endmill ToolPCD Endmill Tool

for very fine surface finish

HDD and woodworking Most application in PCD Endmill ToolPCD Endmill Tool There is two- lip cutting edge for milling, cutting, or boring a hole as small as 3.0 MM

Provide faster work process than boring tool

HDD and woodworking, Most application in milling process

PCD InsertPCD Insert There is one-lip cutting edge for turning or cutting

Electronic parts, Most application in turning processcutting

Need to use with holder Reduce production cost since replace only

insert when it damaged Reduce set up time

p

55



PCD Brazing ToolPCD Brazing Tool There is one-lip cutting edge for turning or cutting

No limit of design for cutting head, making the tool more practical for use

Automobile parts / HDD., Suit for turning process

PCD ReamerPCD Reamer

the tool more practical for use Low-price since its shank made of steel

and quick production

For reaming straight or step hole Electronic parts and HDD Suit for milling PCD ReamerPCD Reamer For reaming straight or step hole Produce finest surface finish compare to

boring and endmill tool Longer tool-life compare to others Suitable for mass production

Electronic parts and HDD, Suit for milling and turning process

PCD Hollow ToolPCD Hollow Tool

p Replace imported products

For making pin in one step since it is able to d ill d t t th ti

Electronic parts and HDD, Suit for milling process

drill and cut at the same time Reduce working process and cycle time Suitable for mass production Replace imported products

66



PCD DrillsPCD Drills New solution of drilling on Non-Ferrous metal

Sharper cutting edge without any burrsL lif ti d l d

Electronic parts and aluminum products, suitable for drilling process

Long lifetime and lower wear compared to carbide drill

Tighten dimensional control which can eliminating reamer

Excellent surface finishes and better

Carbide Cutting ToolsCarbide Cutting Tools

quality parts

E h i i l i d i l Emphasize on special size and special design cutting

Need to use with holder Tighten dimensional control which down to

0.002 mm

Electronic parts, General Metal Works, suitable for milling and turning process

Carbide grade K-10 Reduce the cycle times Reduce set up time Good for heavy cutting processes

77

New Products in New Products in 2009 2009 –– Halcyon TechnologyHalcyon Technology

PCD Cutting Tool Products (Special Micro Size)

DIAMOND

PCD DRILL DIA. 1.0

DIAMOND

ใช้ในอตุสาหกรรม HDD, แผงวงจรอิเลก็ทรอนิค, Medical, Air Craft, Abrasive Material และอตุสาหกรรมอื่นๆ ทัว่ไป

เริ่มผลติในชว่ง Dec/2009 และจะสามารถเพิ่มรายได้อีกประมาณ 1 ล้านบาท/1 เครื่องจกัร/1 เดือน ในสว่นของ

ึ่ ี

88

Cutting Tools ซงึมี Margin สงู

New Products in New Products in 2009 2009 –– Halcyon TechnologyHalcyon Technology

Carbide Cutting Tool Products (Special Micro Size)

ใช้ในอตุสาหกรรม HDD, Electronic Parts, Small Components และอตุสาหกรรมอื่นๆ ทัว่ไป

เริ่มผลติในชว่ง Dec/2009 และจะสามารถเพิ่มรายได้อีกประมาณ 1 ล้านบาท/1 เครื่องจกัร/1 เดือน ในสว่นของ

99

Cutting Tools ซึง่มี Margin สงู

Product Types Product Types –– Halcyon MetalHalcyon Metal

TOOLINGS

• Jig & Fixture: to hold workpiece being in the right position in order to ensure that every piece of work is

drilled, milled or cut as the standard format

• Holder: to hold cutting tool in order to proceed work conveniently such as holder for PCD Insert

1010

Product Types Product Types –– Halcyon MetalHalcyon Metal

METAL FABRICATION

• Mass Products

Parts of Jewelry Box and watch boxParts of Jewelry Box and watch boxScrew Nut & Screw Metal Screw Nut & Screw Metal

• Batch Products

1111

Financial HighlightsFinancial Highlights

452.1500125.1639%

45%

40%120 00

140.0045%50%

Profitability Capital Structure

272.87

163.24109 63

341.08

160.97180.11

371.83

120 39

251.44

134.6

317.5

200

300

400

million Baht

104.61

125.16

93.88

38 73

71.00 65.03

39% 40%

14%

25% 27%

40 00

60.00

80.00

100.00

120.00

mill

ion

Baht

15%20%25%30%35%40%

109.63 120.39

0

100

2006 2007 2008 2009

Asset Liabil ities Equity

38.73

0.00

20.00

40.00

2007 2008 20090%5%10%15%

Gross Profit Net Profit Gross Profit Net Profit

1 6

sset ab t es qu tyGross Profit Net Profit Gross Profit Net Profit

103 88120 1.6Current Ratio D/E Ratio (times)

0.84

1.14

1.411.32

0.81

1.21.41.6

28

84.93

103.88

63.59

1.49

0.89

0 4840

60

80

100

million Ba

ht0 40.60.811.21.4

00.20.40.6

2006 2007 2008 2009

0.48 0.42

0

20

2006 2007 2008 200900.20.4

Total Borrowing D/E Ratio

1212

Capacity Utilization Capacity Utilization –– Cutting ToolCutting Tool (HT)(HT)

Capacity2008

Ave.per Q1/2009 Q2/2009 Q3/2009 Q4/2009

Change in

% f 2009

Change in

% f Unit: Pieces

2008Q/2008

Q1/2009 Q2/2009 Q3/2009 Q4/2009 % from

Q3/2009

2009 % from

2008

PCD Boring Tool 45,224 11,306 6,736 8,242 10,520 10,482 -0.36% 35,980 -20.44%

PCD Endmill Tool 23,978 5,995 3,220 5,099 6,829 6,628 -2.94% 21,776 -9.18%

PCD Insert 73,729 18,432 9,796 13,159 15,230 16,549 +8.66% 54,734 -25.76%

PCD Brazing Tool 5,398 1,350 995 1,888 1,389 1,853 +33.41% 6,125 +13.47%

PCD Reamer 2,400 600 410 958 1,279 1,526 +19.31% 4,173 +73.88%

PCD Hollow Tool 6,900 1725 970 2,078 3,629 3,636 +0.19% 10,313 +49.46

PCD Drill - - - - - 20 - 20 -

Carbide Cutting Tool - - - - 270 352 +30.37% 622 -

Total Capacity 157,629 39,407 22,127 31,424 39,150 41,030 +4.80% 133,731

Working Hours / Month (Jan.Working Hours / Month (Jan.--May) : May) : 300 300 hrs.hrs.Working Hours / Month (JuneWorking Hours / Month (June--Dec.) :Dec.) : 572572 hrs. =hrs. = 100100%%

1313

Working Hours / Month (JuneWorking Hours / Month (June Dec.) : Dec.) : 572 572 hrs. hrs. 100100%%

Capacity Utilization Capacity Utilization –– Tooling and Metal Fabrication (HM) Tooling and Metal Fabrication (HM)

Capacity

Unit: Pieces2008

Ave.per

Q/2008Q1/2009 Q2/2009 Q3/2009 Q4/2009

Change in %

from

Q3/2009

2009Change in %

from 2008

Tooling 290,490 72,623 28,706 51,444 95,451 253,355 +165.43% 428,956 +47.67%

Metal Fabrication

- Mass Product 27,768,124 6,942,031 7,653,450 3,182,900 5,240,910 4,250,955 -18.89% 20,328,215 -26.79%ass oduct , , , , , , , , , , , , , ,

- Batch Product 576,376 144,094 9,103 24,109 29,825 18,553 -37.79% 81,590 -85.84%

Total Capacity 28,634,990 7,158,748 7,691,259 3,258,453 5,366,186 4,522,863 -15.72% 20,838,761 -27.23%

Working Hours / MonthWorking Hours / Month

PCD Tools RUN PCD Tools RUN 100100%% 572 572 Hrs./Month from JUNE/Hrs./Month from JUNE/0909Jig & Fixture RUN Jig & Fixture RUN 6666..66%% 416 416 Hrs./Month from JUNE/Hrs./Month from JUNE/0909

1414

Compare Revenue & Net Profit Avg. Compare Revenue & Net Profit Avg. 2008 2008 & & 20092009

Unit: million Baht Ave. per Q / 2008 Q1 / 2009 Change

from 2008 Q2 / 2009Change

from Q1/2009

Q3 / 2009Change

from Q2/2009

Q4 / 2009Change

from Q3/2009

Income 69.91 34.73 -50.32% 51.75 +49.01% 72.31 +39.73% 78.00 +7.87%

Gross Profit 31.29 11.70 -62.62% 20.29 +79.49% 32.95 +62.40% 28.95 -12.14%*

Net Profit 17.75 7.10 -60.01% 12.10 +70.43% 22.85 +88.84% 22.98 +0.57%

* Q4/2009 New Machine Depreciation

S lid f i t ft ld i iS lid f i t ft ld i i

p

Solid performance improvement after world crisisSolid performance improvement after world crisis

1515

RevenueRevenue StructureStructure

Consolidated Performance

628

4.76

245.

32

250 00

300.00

8825.1

6

150 00

200.00

250.00

Mill

ion

37.2

8

52.7

2

73.8

4

81.4

8 9

3.8

11.7

0

1 2

.77

1.52

22.0

622

.8571

.00

2.98

.10

10

65.0

3

50.00

100.00

150.00

THB

M

131 31 2 2 22127.1

-

50.00

2008 Q1-09 Q2-09 Q3-09 Q4-09 2009Q/Year

Total Revenue Gross Profit Net Profit

1616

Product Mix Product Mix –– Halcyon GroupHalcyon Group

Others4 14% Metal Fabrication Metal FabricationOthers

Revenue Structure (2007) Revenue Structure (2008)

Sleeve3.95%

4.14%

Tooling

20.58% 16.87%1.02%

Cutting Tools55.73%

Tooling15.60% Cutting Tools

62.97%

Tooling19.14%

55.73%62.97%

Others0 69%

Metal Fabrication%

Revenue Structure (2009)

0.69%

Tooling15.33%

8.49%

Cutting Tools75.49%75 49%

1717

5 9%75.49%

New Machine in New Machine in 20092009

Machine Maker Qty (Set) Setup

RG4 England 1 11/06/09RG4 England 1 11/06/09ใชใ้นการเจียร PCD Tool

Carbide Grinding Machine

“

Switzerland 1 28/04/09ใชใ้นการผลิต Carbide

“ Ewagmatic-106 ” (6xSpindle)

Cutting Tools

(Total 7 Machines)

1818

New Machine in New Machine in 20092009Machine Maker Qty (Set) Setup

Wirecut MachineGermany 2

123/07/0925/11/09Wirecut Machine

“ Vollmer 750, 760 ”1 25/11/09

ใชผ้ลิต PCD Toolsและ Carbide Tools

(hollow tool, hollow mill special profile tool)mill, special profile tool)

PCD Grinding S it l d 1 30/08/09PCD Grinding Machine

“ Ewagmatic-Line ” (6xSpindle)

Switzerland 11

30/08/0925/11/09

ใชผ้ลิต PCD Tools และ Carbide Tools (6xSpindle) และ Carbide Tools

(Total 2 Machines)

1 30/11/09CNC Carbide Grinding Machine

“ Walter ”

Germany 1 30/11/09ใชผ้ลิต Carbide Cutting Tools

1919


“Ewagmatic Line”“Ewagmatic-Line”

2020


2121

Industry OutlookIndustry Outlook

HDD Shipment Trend (CYHDD Shipment Trend (CY20072007--CYCY20102010F)F)

Increased 18.38 % from 20092323

HDD Shipment Preliminary (QHDD Shipment Preliminary (Q11//2010 2010 Forecast)Forecast)

2424

HDD Quarterly Shipment TrendHDD Quarterly Shipment Trend

illmill. set

2525

Major HDD Makers’ Financial Results Major HDD Makers’ Financial Results –– Profit & Profit & LLLossLoss

USD mill.

2626

HDD Shipment TrendHDD Shipment Trend

2727

HARDDISK AND FORECAST HARDDISK AND FORECAST 20092009

2828

Halcyon Products Supplied to HDD IndustryHalcyon Products Supplied to HDD Industry

BASEPLATE• Total: 55 mill. pcs./month• Thailand produces avg. 70%= 38.5 mill. pcs./month

PCD Tooling• Endmill 3.8 mm (1,500 pcs./month)• Reamer (750 pcs./month)H ll Pi (1 500 / h)• Hollow Pin (1,500 pcs./month)

• Hollow Mill (750 pcs./month)• Groove Mill (750 pcs./month)

CB Tooling• CB Drill (1,500 pcs./month)

PCD+CB TOTAL = 19.1 mill. Baht/month

2929


HUB• Total: 55 mill. pcs./monthota : 55 . pcs./ o t• Thailand produces avg. 70%= 38.5 mill. pcs./month

PCD Tooling• OD‐Insert (650 pcs./month)• Back Boring (1,950 pcs./month)• Brazing Tools (1,950 pcs./month)

CB Tooling/• CB Drill (1,300 pcs./month)


3030

Halcyon Products Supplied to HDD IndustryHalcyon Products Supplied to HDD IndustrySLEEVE 3.5” (Stainless Steel)

CB ToolingCB Tooling• Drill (700 pcs./month)• OD‐R‐Insert (900 pcs./month)• OD‐F‐Insert (750 pcs./month)O se t ( 50 pcs / o t )• CO‐Insert (900 pcs./month)


3131

Halcyon Products Supplied to HDD IndustryHalcyon Products Supplied to HDD IndustrySLEEVE 2.5” (Brass)

PCD ToolingPCD Tooling• Front Boring (175 pcs./month)• Back Boring (175 pcs./month)• OD‐Insert (175 pcs./month)O se t ( 5 pcs / o t )• Brazing Tools (175 pcs./month)

CB Toolingg• CB Gun Drill (175 pcs./month)


3232


ARMSET• Total: 20 mill. pcs./month (China)• Thailand: NONE

3333

Halcyon Products Supplied to HDD IndustryHalcyon Products Supplied to HDD IndustrySHAFT 2.5” (Stainless Steel)

• Total: 55 mill. pcs./month• Thailand produces avg. 70%= 38.5 mill. pcs./month

CB Tooling• Drill (700 pcs./month)• OD‐R‐Insert (900 pcs./month)• OD‐F‐Insert (750 pcs./month)CO I t (900 / th)• CO‐Insert (900 pcs./month)

PCD+CB TOTAL = 772,500 Baht/month

3434

3535

Customer Base Customer Base –– Halcyon GroupHalcyon Group

3636

Customer Base Customer Base –– Halcyon GroupHalcyon Group

3737

General InformationGeneral Information

ปริมาณการนําเข้า Carbide ในรอบ 12 เดอืน (ปี2009) = 1 530 466 726 บาทปรมาณการนาเขา Carbide ในรอบ 12 เดอน (ป2009) 1,530,466,726 บาท

ปริมาณการนําเข้าหนิเจยีรเพชรในรอบ 12 เดอืน (ปี 2009) = 119,999,629 บาท

ปริมาณการนําเข้า Carbide ของ HTECH (เฉลี่ยปี 2009) = 1.5 ล้านบาทต่อเดอืน

3838

ข้อมูลจากเวบไซต์กรมศุลกากร http://www.customs.go.th/Statistic/StatisticIndex.jsp

Q & AQ & A

Thank YouThank You

Contact UsContact Us

Halcyon GroupHalcyon Groupy py p

41 41 Moo Moo 14 14 Bangchan Industrial Estate SoiBangchan Industrial Estate Soi66,,Serithai Rd., SoiSerithai Rd., Soi5858, Minburi, , Minburi, Bangkok, Thailand Bangkok, Thailand 1051010510ggTel : Tel : 0202‐‐906906‐‐32423242‐‐5050Fax : Fax : 0202‐‐906906‐‐3251 3251 EE‐‐mail : mail : [email protected]@halcyon.co.thwww.halcyon.co.thwww.halcyon.co.thwww.halcyon.co.thwww.halcyon.co.th

4141

Documents

Halcyon Technology Public Co., Ltd.Product Types Product Types -- Halcyon TechnologyHalcyon Technology Polycrystalline Diamond (PCD) O f th h d t b t d i tti t l fOne of the hardest