Opportunity Day Presentation - listed companyah.listedcompany.com/misc/slides/20140529-AH-oppDay1Q2014.pdf · May 29th, 2014 AAPICO HITECH PLC [AH] Ms. Yeap Xin Rhu Opportunity Day

May 29th, 2014

AAPICO HITECH PLC [AH]

Ms. Yeap Xin Rhu

Opportunity Day Presentation

The Stock Exchange of Thailand

Financial Performance for the 1st quarter of 2014

Copyright by AAPICO HITECH PLC 2

Company Profile

Industry Overview

Financial Summary

Appendices

Today’s Agenda

Company Overview


Company Profile

AAPICO HITECH PUBLIC COMPANY LIMITED

[AH]

Founded in 1996 and listed on SET in 2002.

Main businesses are to design, produce and install

assembly jigs, stamping dies, and manufacture of

automobile parts as well as car dealership and car

navigation businesses.

Comprised of 35 companies (26 in Thailand and 9

Overseas).

Registered and paid up capital of Baht 322,583,844

(par value of Baht 1 each)**.

Major shareholders are the Yeap family (~40%) and

Sojitz Corporation (15.76%).

Industry/Sector : Auto

Average price : Baht 14.90*

52 weeks range : Baht 12.80 – 28.00

Market Cap : Baht 4,806 million

P/E (YTD) : 9.91x*

P/BV : 0.89x

* Data as of May 19th, 2014.

** Preferred shares were converted to ordinary shares

on August 2nd, 2013.


AAPICO’s Vision

“AAPICO Group’s Vision is to become a

“Lean, Green and Happy” world-class

organization with 4 fundamental values of

Happy Customers,

Happy Employees,

Happy Shareholders and

Happy Public”


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, Green & Happy Organization

Where we want to go?

How do you want people to

remember us?

Manufacturing

Where we are

AAPICO’s Vision


The AAPICO products can be grouped into 3 main

segments as follow:

AAPICO’s Group Structure

Manufacturing

Dealership

Navigation


STAMPING DIES

ASSEMBLY JIGS

Business Segment

• Manufacture of OEM auto parts

products

• Design and manufacture

assembly jigs and stamping

dies (Project base)

Manufacturing


Business Segment

Dealership

Ford Dealers

Thailand

Mitsubishi Dealers

Thailand

Honda Dealers

Malaysia


Business Segment

Navigation


China

Malaysia

Main

operations

in Thailand

Global Operations

73%

22%

5%

Sales by country*

TH MY CN

*Jan-Mar 2014


Bangkok

Ayutthaya

Rayong

Chonburi Samutprakan

Locations in Thailand

Production : 5 factories

Products : Stamping Dies,

Jigs, and Pressed parts,

and Car navigation system


Products : Chassis

Frames, Forged and

machined parts.

Production :1 factory

Products : Plastic

parts


Products : Stamping

OEM auto parts and

Plastic parts

Mitsubishi

Dealers:

Ramindra

Navanakorn

Ford Dealers:

Ladprao

Samutprakarn


Strategic

Shareholder Joint Ventures Technical

Partners

Our Partners


Our OEM Customers

Top Customer Profile

ISUZU

AAT1

NISSAN

SGMW2

TOYOTA

OTHERS -PARTS

Jan-Mar2014

1. Auto Alliance (Thailand) Co., Ltd – a joint venture between Ford and Mazda.

2. SAIC-GM-Wulling Automobile – a joint venture between SAIC, GM and Liuzhou

Wuling , based in China.

Thailand Car Industry


Thailand Automotive Production

0.16 0.17 0.25 0.30 0.28 0.30 0.32 0.40 0.310.55 0.54

0.96 1.07

0.21

0.29 0.380.47

0.600.82 0.87 0.95

0.97

0.67

1.070.90

1.45 1.33

0.31

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand Vehicle Production 2001 - 2014

Forecast Others 1-Ton Pick up / PPV Passenger Car

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

Thailand vehicle production volume in the first 3 months of 2014 was 517,492 units,

of which primarily are production of 1-Ton Pick up/PPV at 306,432 units and

production of passenger car at 205,041 units.

Hamburger

Flood

Unit: Million


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

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Others

Passenger Car

Pick up / PPV

-28.3% 44.5%

Flood

2011

Compared to Q4 2013, total vehicle production volume declined slightly by 1.8%

and was 28.3% lower than the production volume in Q1 2013.

Unit: Million


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

Vehicle Production Q1’13 vs. Q1’14

Q1'1352.9%Q1'13

45.2%

Q1'131.9%

Q1'14Pick up

/ PPV59.2%

Q1'14Passse

nger Car

39.6%

Q1'14Others

1.2%

The lower vehicle production volume

compared to Q1 2013 was more on

passenger cars than pick-up/PPV, as

last year was favorably impacted by the

government policy on Eco-cars.

0.2

0.5

0.70.9

1.1

1.31.5

1.71.9

2.12.3

2.5

0.20.3

0.5

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 2014

Unit: Million


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

0.10 0.13 0.18 0.21 0.19 0.19 0.17 0.23 0.230.35 0.36

0.67 0.63

0.09

0.170.24

0.310.37 0.47 0.45

0.41 0.33 0.28

0.39 0.37

0.670.59

0.11

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand Domestic Car Sales 2001 - 2014

Forecast Others 1-Ton Pick up/PPV Passenger Car

Thailand domestic car sales in the first 3 months were 224,171 units, of which the

sales of 1-Ton pick-up/PPV were 111,019 units and passenger car sales were

90,285 units.

Hamburger

Flood

Unit: Million



0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

0.4

0.5

0.5

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

Q1 '13

Q2 '13

Q3 '13

Q4 '13

Q1 '14

Others

Passenger Car

Pick up / PPV

-45.3% 48.0%

Flood

2011

Compared to Q1 2013, sales declined by 45.3%, largely attributable to passenger

car sales decline where sales decreases were visible in all OEMs.

Unit: Million



Domestic Car Sales Q1’13 vs. Q1’14

Q1'1342.7%

Q1'1348.9%

Q1'138.4% Q1'14

1-Ton

Pick up49.5%

Q1'14Passen

ger Car40.3%

Q1'14Others

10.2%

Compared to Q1 2013, passenger car

sales dropped by 55%, as last year’s

sales were supported by the Eco-car

campaign. Sales of 1-Ton pick-up/PPV

declined by 37.1%.

0.1

0.3

0.4

0.5

0.6

0.70.8

0.91.0

1.11.2

1.3

0.10.1

0.2

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 2014

Unit: Million


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

0.18 0.180.24

0.33

0.44

0.54

0.690.78

0.54

0.90

0.74

1.03

1.13

0.29

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Thailand Export Car Units 2001 - 2014

Forecast Export Units

Albeit lower domestic car sales, export volume increased by 1.2% year-on-year,

from 287,918 units in Q1 2013 to 291,509 units in Q1 2014.

Hamburger

Flood

Unit: Million

Financials Performance for the 1st quarter

of the fiscal year 2014


9,513

7,366

11,758 10,786

16,811 16,998

4,685 3,692

230

(116)

394

(392)

927 634 284 154

(3,000)

2,000

7,000

12,000

17,000

22,000

2008 2009 2010 2011 2012 2013 3M13 3M14

Total Revenues Net Profit

Revenues & Net Profit Overview Unit : Million Baht

Net Profit % 2.4% -1.6% 3.4% -3.6% 5.5% 3.7% 6.1% 4.2%

Sales Growth% -2% -23% +60% -8% +56% +1% +48% -21%

Note: 2013 results included Bt.903 m. insurance income and Bt.852 m. impairment loss; 2012 results included Bt.145 m. insurance income.

Hamburger

Flood


Auto Parts63%

Dealers34%

Other income

3%

Jan-Mar 2014

3,173

4,049

4,561 5,028

4,685

4,047 3,927 4,338

3,692

4,685

3,692

-

1,000

2,000

3,000

4,000

5,000

6,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14

Auto Parts Dealers Other income Insurance

Total Revenues : Group Unit : Million Baht

Q1 Revenues declined 21.2% compared to

last year, largely due to the slowdown of

automotive industry and the on-going

political instability in Thailand.

Compared to Q4’13, sales exclude insurance

increased by 7%, which were visible in both

the manufacture of automobile parts segment

and car dealership segment, despite the

industry decline by 2%.


2,469 3,032 2,943

3,559 3,295

2,919 2,708 2,139 2,336

3,295

2,336

265 127

-

1,000

2,000

3,000

4,000

5,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14

Auto Parts EBIT

Total Revenues : Auto Parts

Auto Parts sales in Q1’14 declined by 29.1% compared to

Q1’13, in line with the slowdown of automotive industry.

Sales decline were seen in both Thailand and China.

EBIT decreased Baht 138 million compared to Q1’13, due

to lower sales. As percentage of sales, EBIT margin

dropped from 8.0% in Q1’13 to 5.4% in Q1’14.

Unit : Million Baht

TH92%

CN8%

Jan-Mar '14


Total Revenues : Dealership

Car Dealership sales in Q1’14 were about the same level

as Q1’13 at Baht 1.2 billion. The solid growth in Malaysia

(+24.3%) compensated the slowdown of automobile

market in Thailand.

Compared to Q1’13, EBIT margin as percentage of sales

improved by 1%, from 1.9% to 2.9% of sales in Q1’14.

Unit : Million Baht

534

902

1,361 1,320 1,248

983 1,104

1,231 1,238 1,248 1,238

24 36

-

500

1,000

1,500

2,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14

Dealership EBIT

TH36%

MY64%

Jan-Mar '14


6.7%8.5%

10.5% 10.2% 10.0% 9.7%8.5%

5.8%

9.2%10.0%

9.2%

0%

5%

10%

15%

-

500

1,000

1,500

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14

One-off

Depre

EBIT

EBITDA%

EBITDA%*

100

276

174

377 284

189 150

11

154

284

154

2.2%

4.6% 3.8%

7.0%6.1%

3.9% 3.8%

-0.2%

4.2%

6.1%

4.2%

-2%

0%

2%

4%

6%

8%

10%

-

200

400

600

800

1,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14

One-off

Net Profit

Net Profit%

Net Profit%*

EBITDA & Net Profit Unit : Million Baht

* dotted line refers to profit

excludes adjustments.

* dotted line refers to profit

excludes adjustments.


9.0% 7.1% 8.0%

-9.5% -9.1%-3.5% -2.7%

18.7% 21.4% 19.1% 18.5%11.6% 9.0%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

ROE (In the Quarter) ROE (Seasonally adjusted)

Return on Equity

Note: ROE (Seasonally adjusted) = Net income of the last 4 quarters (rolling ) / Total Equity

Flood 2011

Return on Equity (ROE) decreased from 21.4% in Q1’13 to 9.0% in Q1’14, which was

about the same level as in 2011 before flood. The year-on-year ROE decline was due

to lower profit (-55%), following the slowdown of industry.


Return on Asset

Note: ROA (Seasonally adjusted) = Net income of the last 4 quarters (rolling ) / Total Assets

3.6% 2.8% 3.0%

-3.4% -2.9% -1.1% -0.9%

6.7% 8.0% 7.4% 7.6%5.0% 4.0%

-30%

-20%

-10%

0%

10%

20%

30%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

ROA (In the Quarter) ROA (Seasonally adjusted)

Flood 2011

Return on Asset (ROA) as of Q1’14 was 4.0%, which was 50% decline from 8.0% in

Q1’13, due to lower profit following the slowdown of automotive industry.


Interest Coverage Ratio

Note: Interest Coverage Ratio (Seasonally adjusted) = EBIT of the last 4 quarters / Interest of the last 4 quarters (rolling)

3.80 3.16 3.30

(0.25) (0.26)0.61 0.70

4.34 5.00 4.77 4.69 3.59 3.17

-10.0

-5.0

0.0

5.0

10.0

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Interest Coverage Ratio (In the Quarter) Interest Coverage Ratio (Seasonally adjusted)

Flood 2011

Interest Coverage Ratio as of Q1’14 was 3.17 compared to 5.00 in Q1’13. The ratio

decline was primarily due to lower profit, which has decreased more than reduction of

interest expenses.


Capital Structure

Net interest-bearing debt to equity as end of Mar’14 further

decreased to 0.78x, compared to 1.00x in Q1’13 and 0.85x in

Q4’13, mainly attributable to loan repayment.

0.93

1.20 1.25 1.19 1.24 1.07 1.00 0.97 0.91 0.85 0.78

1.36

1.72

2.06 1.99 2.00

1.74 1.64

1.52 1.41

1.25 1.23

-

0.5

1.0

1.5

2.0

2.5

-

1,000

2,000

3,000

4,000

5,000

6,000

2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Cash & Current Inv. Debt Equity D/E (L-C)/E

Total bank loan as end of

Mar’14 was Baht 4,354

million, which was a Baht

271 million decline in Q1’14

due to repayment of long-

term loan.

Interest-bearing Debt

Short-term24%

CP-LTD37%

Long-term39%

Unit : Million Baht

Going Forward


CHINA

INDIA

ASIA JAPAN

EUROPE AMERICA

Business Strategy

THAI

MSIA

INDO

PHIL


Thailand Automotive Overview 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

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Domestic Export

Hamburger

Flood

Unit: Million

2014 is expected to be a challenging year with forecasted vehicle production

volume of about 2.2 million units.


Some statements made in this material are forward-looking statements with the relevant assumptions,

which are subjected to various risks and uncertainties. These include statements with respect to our

corporate plans, strategies, and beliefs and other statements that are not historical facts. These

statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”,

“anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words.

The statements are based on our management’s assumptions and beliefs in light of the information

currently available to us. These assumptions involve risks and uncertainties which may cause the actual

results, performance or achievements to be materially different from any future results, performance or

achievements expressed or implied by such forward-looking statements. Please note that the company

and executives/staffs do not control and cannot guarantee the relevance, timeliness, or accuracy of these

statements.

AAPICO HITECH PLC

[email protected]

Tel: 66 (0) 2613-1504

Disclaimer

THANK YOU

Lean, Green and Happy Company

AAPICO HITECH PLC 37

Documents

Opportunity Day Presentation - listed companyah.listedcompany.com/misc/slides/20140529-AH-oppDay1Q2014.pdf · May 29th, 2014 AAPICO HITECH PLC [AH] Ms. Yeap Xin Rhu Opportunity Day