Opportunity Day 4Q2017 - Thailivestreamsetlive.thailivestream.com/data-file/events/pdf/150218082719... · -Best Improvement in 2017 Supplier Award, Hanon Systems ... 1.20 1.40 1.60

Opportunity Day 4Q2017

The Stock Exchange of Thailand

15 February 2018

SNC FORMER PUBLIC COMPANY LIMITED

1

Agenda

• Overview & Highlights

• Industry Updates

• Company Performance 4Q17 & Y17

• Financial Highlights

• Company Outlook/Strategy Updates

• Q & A

2www.sncformer.com

SNC Training Center, Samutprakarn

Agenda

• SNC Overview & Highlights





• Q & A

3www.sncformer.com

SNC

4www.sncformer.com

Company Overview

Total of 15 companies, incl. JV 6 companies

SME BOI, tax 0% 8 years, start 2011Normal BOI, tax 0% 3-8 yearsNon BOI, tax 20%

SNCbranch 2

SNC Cooling Supply Co., Ltd.

SNC Pyongsan Evolution Co., Ltd

Immortal Parts Co., Ltd.

100%

100%

100% 220MB

Ultimate Parts Co., Ltd.

100%

Pipe + Freezer4,000 sqm

40MB

70MB

30MB

SSM Automation Co., Ltd.

316MB 74%

Metal sheet stamping6,000 sqm

Infinity Parts Co., Ltd.

Heat exchanger + metal sheet9,000 sqm

100%20MB

air-conditioner parts 11,700 sqm

Automotive parts pipe + sheet10,000 sqm

SNCbranch 4

OEM | ODM18,000 sqm

Paradise Plastic Co., Ltd.

100%

Plastic8,000 sqm

SNC Creativity Anthology Co., Ltd.

700MB 100%

Al. Cond.7,000 sqm

Samutprakarn province Rayong province

air-conditioner parts17,000 sqm

Plastic12,000 sqm

105MB 49 %

Water heater1,600 sqm

SNC Atlantic Heat Pump Co., Ltd

45MB 74%

Heat Pump1,600 sqm

SNC Atlantic Water Heater Asia Co., Ltd

Chonburi province

Meisou SNC Precision Co., Ltd.

55MB 95%

Mould parts1,000 sqm

JV with France

JV with France

JV with Japan

JV with Japan

30MB

Capital 287 MB

Odin Power Co., Ltd.

55%200MBJV with

Thai

Yala Fahsaard

100%150MBJV with

Thai

5www.sncformer.com

Company Highlights

2018

2017

Move production line from LCB to RY

SFHI-IMP, MSPC, SSMA

Sold TTD

Organization Restructuring

ERP Implementation

Alternative Energy

Solar Rooftop Water Supply

6www.sncformer.com

Awards and Recognitions

SNC

- Thailand Sustainability Investment (2016 – 2017), SET- Outstanding Investor Relations Awards (2017), SET- Top Innovation Organization (2017), SET & NiA- Excellence CG Scoring on Corporate Governance Report of Thai Listed Companies

(2015-2017), Thai Institute of Directors- Environmental Social Governance 100 (2015-2017), Thaipat Institute

7www.sncformer.com

Awards and Recognitions

SNC

- Vendor Performance Awards 2016, Kang Yong Electric PCL- Most Effect Quality Improvement Company 2016, MCP (Thailand)- Professional Supplier Excellence Supplier Awards 2017, Electrolux

- Quality and Delivery Supplier Award 2017, Toshiba Carrier (Thailand) - Best Improvement in 2017 Supplier Award, Hanon Systems (Thailand)

Agenda






• Q & A

8www.sncformer.com

SNC

9www.sncformer.com

Industry Updates

65% 6%15% 6% 3% 3%

Note: Others 2%

16.218 18.2 17.9

21.8

19.220.1

2.8 3.1 3.2 3.4 3.8 3.3 3.4

13.414.9 15 14.4

1815.9 16.7

0

5

10

15

20

25

Y12 Y13 Y14 Y15 Y16 Y17 E18

Total Domestic Exportmillion Units

10www.sncformer.com

Air conditioner Industry

Y16 VS Y17 A/C production was reduced by 12% as Export was reduced by 12% and Domestic was reduced by 13% 4Q16 VS 4Q17 A/C production was reduced by 22% as Export was reduced by 21% and Domestic was reduced by 24%

Source: สถาบนัยานยนต์, ส านกังานเศรษฐกิจอตุสาหกรรม, สถาบนัไฟฟ้า และอิเลคทรอนิกส์, SNC Survey

0.540 0.410

3.410

2.690

3.9503.100

-

1.0

2.0

3.0

4.0

5.0

4Q16 4Q17

2.5 2.5

1.9 1.9 1.92.0

2.1

1.3

1.2

0.90.8 0.8 0.87 0.9

1.2

1.3

1.01.1 1.1 1.14 1.2

0

0.5

1

1.5

2

2.5

3

Y12 Y13 Y14 Y15 Y16 Y17 E18

Total Domestic Export

11www.sncformer.com

Automobile Industry

0.212 0.251

0.256 0.260

0.468 0.511

-

0.4

0.8

4Q16 4Q17

Source: สถาบนัยานยนต์, ส านกังานเศรษฐกิจอตุสาหกรรม, สถาบนัไฟฟ้า และอิเลคทรอนิกส์, SNC Survey

Y16 VS Y17 Automobile production was increased by 5% as Export was increased by 4% and Domestic was increased by 9% 4Q16 VS 4Q17 Automobile production was increased by 9% as Export was increased by 2% and Domestic was increased by 18%

million Units

Agenda






• Q & A

12www.sncformer.com

SNC

13www.sncformer.com

Company Performance - 4Q17

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Company Performance - Y17

Agenda






• Q & A

15www.sncformer.com

SNC

16www.sncformer.com

Financial Highlights

7,155 7,4058,140

7,468 7,527

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Y13 Y14 Y15 Y16 Y17

Sales

6,306 6,583 7,275

6,503 6,640

849 822866

965 887

11.9%11.1%

10.6%12.9%

11.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Y13 Y14 Y15 Y16 Y17

CoGS GP

CoGs GP GP Margin

17www.sncformer.com

Financial Highlights

423

377

410402 401

5.91%

5.09%

5.04%

5.38% 5.29%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0

50

100

150

200

250

300

350

400

450

Y13 Y14 Y15 Y16 Y17

Net Profit

Net Profit Net Profit Margin

694687

739756

779

9.71%9.28% 9.02%

10.10% 10.35%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

640

660

680

700

720

740

760

780

800

Y13 Y14 Y15 Y16 Y17

EBITDA

EBITDA EBITDA Margin

18www.sncformer.com

Stock InformationDividend Policy: Minimum of 50% of net profit after tax and statutory reserve

Par value (B.) 1.00Listed share (M.) 287.78Market capitalization (MB.) 4,057.66Stock price (B.) 14.10P/E (X) 11.33P/BV (X) 1.60Dividend Yield (%) 6.38

Stock Information

Source: www.set.or.th as of Jan30, 2018

2013 2014 2015 2016 2017

1.47

1.31

1.42 1.40 1.39

1.00

0.66

0.90 0.90 0.90

68%

50%

63% 64% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

EPS (B./share) DPS (B./share) DPR (%)

2013 2014 2015 2016 2017

Agenda






• Q & A

19www.sncformer.com

SNC

- Production efficiency (OEM A/C) got back on track in 4Q17

- New EER standard in Middle East

- ODM vending machine is expected to be increased

- Strong THB affects SAHP

- Export to USA will increase in 4q18

- Domestic new model order will start in 4q18

- Export to China is expected to be reduced in

2018

20www.sncformer.com

Company Outlook & Strategy UpdatesAutomotive Parts

E/A Parts

- Pipe kit export to Australia will increase in 1Q18

- Additional order from washing machine

- Upstream parts production for vending machine

will increase

OEM / ODM

Other

- LCB factory lease income will increase in 2018

- SCAN increased capital 300 MB in Jan 2018, D/E ratio met

target

- SG&A is targeted to be 5% of Sale (2017: 5.5%)

- Bank loan target at 350 MB at the end of 2018 (2017: 733 MB)

21www.sncformer.com

SNC Former Public Company Limited Company Visit Program At SNC Rayong plant

17 February 2018 8.00 - 8.30 Registration at MRT, Queen Sirikit National Convention Center 8.30 - 11.30 Start traveling from MRT to SNC Rayong. 11.30-12.00 Arrive SNC Rayong, Welcome & Factory introduction 12.00-13.00 Lunch 13.00-14.00 Visit our Production line 14.00-14.15 Q&A 14.15-14.30 Taken photo with our Management 14.-30-17.30 Traveling to SET

SNC Site visit

Remarks:1. Investors who are interested in visiting the plant, please register on Opportunity Day, Feb 15th 2018.2. We will confirm with you on Feb 16th 2018.3. Incase of having many registrants, we would like to reserve the right for ones who had never visited. We apologize for any convenience.4. Contact Person: Khanittha Suwannapha Tel: 093-326-6975

Agenda






• Q & A

22www.sncformer.com

SNC

23www.sncformer.com

Q&A

Q & A

24

THANK YOU

Building Human Capital as a Key to Social Development

www.sncformer.com

25

Disclaimer

Disclaimer: The information contained herein is being furnished on a confidential basis for discussion purposes only

and only for the use of recipient, and may be subject to completion or amendment through the delivery of additional

document. Except as otherwise provided herein, this document does not constitute an offer to sell or purchase any

security or engage in any transaction. The information contained herein has been obtained from sources that

SNC Former Public Company Limited (“SNC”) considered to be reliable; however, SNC makes no representation as to,

and accepts no responsibility or reliability for the accuracy or completeness of the information contained herein. Any

projections, valuations and statistical analyses may be based on subjective assessments and assumptions and may

utilize one among alternative methodologies that produces differing results; accordingly, such projections, valuations

and statistical analyses are not to be viewed as facts and should not be relied upon as an accurate representation of

the future events. The recipients should make an independent evaluation and judgment with respect to the matters

contained herein.

26www.sncformer.com

Appendix – Compressor production

6.2 6.0 5.9 5.8 5.7 5.1 4.8

5.6 5.9 5.9 5.24.7 4.7 4.6

11.7 11.9 11.8 11.1 10.4 9.8 9.4

-

5

10

15

20

25

Y12 Y13 Y14 Y15 Y16 Y17 Y18 E

Domestic

Export

Total

Compressor production in Thailand

million units

1.8991.490

0.3300.640

2.229 2.130

-

0.5

1.0

1.5

2.0

2.5

4Q16 4Q17

27www.sncformer.com

Appendix –Refrigerator production

2.2 1.8 1.7 1.7 1.8 1.6 1.6

5.1 4.9 4.8 4.9 4.9 4.6 4.7

7.36.7 6.5 6.6 6.6 6.2 6.3

-

2

4

6

8

10

Y12 Y13 Y14 Y15 Y16 Y17 Y18 E

Domestic

Export

Total

Refrigerator production in Thailand

million units

0.385 0.351

1.171 1.106

1.556 1.457

-

0.5

1.0

1.5

2.0

4Q16 4Q17

28www.sncformer.com

Appendix – Washing machine production

1.5 1.4 1.3 1.4 1.4 1.4 1.5

3.6

2.7 2.9 3.0 3.34.1 4.3

5.24.0 4.2 4.3 4.6

5.5 5.8

-

2

4

6

8

10

Y12 Y13 Y14 Y15 Y16 Y17 Y18 E

Domestic

Export

Total

Washing machine production in Thailand

million units

0.307 0.328

0.799

1.1361.1061.464

-

0.5

1.0

1.5

2.0

4Q16 4Q17

Documents

Opportunity Day 4Q2017 - Thailivestreamsetlive.thailivestream.com/data-file/events/pdf/150218082719... · -Best Improvement in 2017 Supplier Award, Hanon Systems ... 1.20 1.40 1.60