1Q 2021 EARNINGS RESULT PRESENTATION

AAPICO HITECH PLC [AH]

AAPICO HITECH PLCProvided by Investor Relations Department

1Q 2021 EARNINGS RESULT PRESENTATION

DISCLAIMER

The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO.

Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management 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.

None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advise.

[email protected] | +66-(0)-2613-1504

AAPICO HITECH PLCProvided by Investor Relations DepartmentDISCLAIMER 2

AGENDA

AAPICO HITECH PLCProvided by Investor Relations DepartmentAGENDA 3

COMPANY INFORMATION

AUTOMOTIVE INDUSTRY UPDATES

FINANCIAL PERFORMANCE

STRATEGY & DIRECTION

APPENDICES

COMPANY INFORMATION

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 1: COMPANY INFORMATION 4

AAPICO AT A GLANCEAAPICO Hitech Public Company Limited


SECTION 1: COMPANY INFORMATIONAAPICO AT A GLANCE

5

Founded in

Listed in the Stock Exchange of Thailand (SET)

Shares mainly owns by Mr.Yeap Swee Chuan and Family (as of 16 Mar 21)

Business Units

the OEM Automotive Parts

Manufacturing

Car Dealership IoT Connectivity & Mobility AH Share Price as

of 28 May 21

Market Capitalization as

of 28 May 21Rewarded

From National CG Committee

Listed in

Thailand Sustainability

Investment 2020

Subsidiaries and Associate Companies

across the World

Companies in Thailand

Companies in Overseas

Ranked

From Tris Credit Rating

Remark: Information as of 31 Mar 21


SECTION 1: COMPANY INFORMATIONOUR VISION AND CORE VALUE

6

OUR VISION AND CORE VALUEBecoming Lean, Green, Happy and Digital World Class Organization with 4 Fundamental Values

MANUFACTURINGRESEARCH & DEVELOPMENTCAR RETAILING

TO BE A LEAN, GREEN, HAPPY, DIGITAL WORLD-CLASS CORPORATION

• S : Safety• Q : Quality• C : Cost• D : Delivery• E : Engineering• M : Management

(Focus Digital)

• Teamwork• Look at problems as

opportunities• Love Family,

Company and Country

• Loyalty and Honesty• Mutual Respect

• Profitability• Reasonable Dividend

• Corporate Social Responsibility

AAPICO’S KEY FUNDAMENTAL VALUES

OUR VISION

CUSTOMERS EMPLOYEES SHAREHOLDERS PUBLIC

CORE PILLARS - PRODUCTSComposing of 3 Core Pillars with OEM Auto Parts as a Main Business


SECTION 1: COMPANY INFORMATIONCORE PILLARS - PRODUCTS

7

Note:1 Sales and Services Income for 3 Month Period Ended 31 March 2021

Thailand, Portugal and China Thailand and Malaysia Thailand

• METAL FORMING PARTS

• PLASTIC PARTS

• FORGING & MACHINING PARTS

• CASTING PARTS

75% Sales and Services IncomeContribution1

• MALAYSIA

• THAILAND

25% Sales and Services IncomeContribution1 <1% Sales and Services

IncomeContribution1

CAR DEALERSHIPS BUSINESS

IOT CONNECTIVITY & MOBILITY BUSINESS

OEM AUTO PARTS MANUFACTURING BUSINESS

• TOOLINGS

SMART FACTORY

SMART LOCATION

SMART MOBILITY

SMART OFFICE

SMART LOGISTICS

SMART FARM

V


SECTION 1: COMPANY INFORMATIONAAPICO’S FOOTPRINT

8

Ford Dealership

Mitsubishi Dealership• Navanakorn • Pakkret • Pathumthani

• Samutprakarn • Ramindra

Amata City Industrial Estate Chonburi

• Metal Forming• Chassis & Structural• Forging & Machining

Amata City Industrial Estate Rayong• Metal Forming• Fuel Tanks & Washer

System

Bangpli Industrial Estate

• Plastics & Parts

SAMUTPRAKARN

Hitech Industrial Estate• Metal Forming

• IOT Connectivity & Mobility Business

• Jigs & Dies

AYUTTHAYA

CHONBURI

RAYONG

AAPICO’S FOOTPRINTThailand

BANGKOK METROPOLITAN REGION


SECTION 1: COMPANY INFORMATIONAAPICO’S FOOTPRINT

9

AAPICO Offices

Car dealers:

Honda Proton

MALAYSIA

Production: Iron casting

PORTUGAL: Maia

Production: Steel and Copper Forging

CHINA: Kunshan

Thailand

India: Coimbatore/Erode

China:Kunshan

Japan

United Kingdom (UK):London

Portugal: Porto

United States of America (USA):New York

AAPICO Operations

Singapore

Malaysia:Kualalumpur/Pahang/Selangor

AAPICO’S FOOTPRINTThailand and Overseas

Thailand

Portugal

MalaysiaQ1 2021

Sales Breakdown by Country

China

31%

32%

8%

7%

6%

6%

4%

5%

4%

4%

3%

3%

3%

2%

2%

2%

2%

2%

37%

37%

Q1 2020

Q1 2021

MAJOR OEM CUSTOMERS ISUZU remained as our Main Customer with 32% Sales Contribution in Q1 2021


SECTION 1: COMPANY INFORMATIONMAJOR OEM CUSTOMERS

10

Note:1 Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.

Q1 2021 VS Q1 2020 OEM Customers Contribution

OEM TIER - 1

GKN AUTOMOTIVE

FORD

DANACONTINENTALISUZU

NISSAN

AAT1

BMW OTHERS

AAM

ISUZU

NISSAN

DANA

FORD

VINFAST

NTPT

OTHERSCONTINENTAL

AAT1 TOYOTA

AAM


SECTION 1: COMPANY INFORMATIONOUR JOINT VENTURES AND PARTNERS

11

Joint Venture Companies

Technical Partner

OUR JOINT VENTURES AND PARTNERSCore Pillar of AAPICO Business

AUTOMOTIVE INDUSTRY UPDATES

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 2: AUTOMOTIVE INDUSTRY UPDATES 12

THAILAND CAR PRODUCTION VOLUMEMarket Overview


SECTION 2: MARKET OVERVIEWTHAILAND CAR PRODUCTION VOLUME

13

Total Car Production by Quarter

328 294 296 259 273

96 216 277 289

223 202 198 172 172

54

134 177 168

561 504 506

441 454

152

357

464 466

0

200

400

600

800

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Pick-Up/PPV Passenger Others‘000 Units

Source: The Federation of Thai Industry (Automotive Industry)

2.7% yoy

133 126 111 122 97 69 108 135 99

103 104 99 93 78 41

69 86

60

28 31 28 31 25

18 29

36 30

264 261 238 246 200

128 206

257 189

0

200

400

600

800

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

1-Ton Pick-Up/PPV Passenger cars Others

DOMESTIC CAR SALES VOLUME Market Overview


SECTION 2: MARKET OVERVIEWDOMESTIC CAR SALES VOLUME

14

‘000 Units

Domestic Car Sales by Quarter


-5.8% yoy

THAILAND EXPORT VOLUMEMarket Overview


SECTION 2: MARKET OVERVIEWTHAILAND EXPORT VOLUME

15

300 260 261 233 250

100 171

214 258

-

200

400

600

800

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Export Volume‘000 Units


Export Volumes by Quarter

3.1% yoy

1,886 1,909 1,648 1,846 1,693 766

1,590 2,005 1,906

3,013 2,939 2,419

2,591 2,379

1,131

2,103 2,455

2,054

784 767

605 729

630

346

651

754 708

5,683 5,615

4,672 5,166

4,702

2,243

4,344

5,214 4,668

-

2,000

4,000

6,000

8,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Pick-Up/PPV Passenger Others

EUROPE CAR PRODUCTION VOLUMEMarket Overview


SECTION 1: MARKET OVERVIEWEUROPE CAR PRODUCTION VOLUME

Total Car Production by Quarter

Source: IHS Markit – March 2021 (Automotive Industry)

-0.7% yoy

‘000 Units

16

No. Brand Q1 2021 Q1 2020 %

1 Toyota 55,772 56,053 -0.5%

2 Isuzu 49,248 42,398 16.2%

3 Honda 24,959 28,678 -13.0%

4 Mitsubishi 12,085 16,974 -28.8%

5 Mazda 10,890 10,152 7.3%

6 Ford 8,120 7,209 12.6%

7 Nissan 8,557 13,504 -36.6%

8 MG 7,519 6,129 22.7%

9 Suzuki 5,186 6,529 -20.6%

10 Hino 3,380 2,078 62.7%

11 Others 8,421 10,360 -18.7%

Total 194,137 200,064 -3.0%

THAILAND TOTAL INDUSTRY VOLUME (JAN-MAR) Total Volume Decreased 3.0% YoY Compared to Q1 2020


SECTION 2: MARKET OVERVIEWTHAILAND TOTAL INDUSTRY VOLUME

17

Source: Toyota

No. Brand Q1 2021 Q1 2020 %

1 Perodua 57,909 44,977 28.8%

2 Proton 32,420 21,757 49.0%

3 Honda 14,771 11,100 33.1%

4 Toyota 16,990 10,415 63.1%

5 Mitsubishi 4,156 1,765 135.5%

6 Others 13,253 15,519 -14.6%

Total 139,499 105,533 32.2%

MALAYSIA TOTAL INDUSTRY VOLUME (JAN-MAR) Total Volume Surged 32.2% YoY Compared to Q1 2020


SECTION 2: MARKET OVERVIEWMALAYSIA TOTAL INDUSTRY VOLUME

18

Source: MAA

Total industry volume is expected to rise 8% to 570,000 units in 2021 as Malaysia Government has extended the Sales and Services Tax exemption for passenger vehicles for six months until end of June 2021.

FINANCIAL PERFORMANCE

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 3: FINANCIAL PERFORMANCE 19

FINANCIAL HIGHLIGHTSAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEFINANCIAL HIGHLIGHTS

20

Q1 2021 Key Financial Summary

▪ Revenue increased by 10.21% YOY.

▪ Gross profit margin increased from 10.15% in Q1 2020 to 12.08%

in Q1 2021.

▪ Selling and administrative expenses increased by only 0.15% YOY

▪ Core Operating Profit1 reached Baht 422.68 million in Q1 2021.

▪ Gain on foreign currency exchange rate was at Baht 102.37 million

in Q1 2021, compared to a gain of Baht 198.68 million in Q1 2020,

▪ Net profit attributable to equity holders was Baht 410.73 million,

increased by 28.1% % YOY and reached Net Profit Margin of 7.16%

Note: 1 Defined as EBIT exclude interest income, gain (loss) on exchange rate and other irregular items

(Unit: THB million) Q1 2020 Q1 2021

Total Revenues 5,208 5,739

Sales and services income 4,920 5,586

Gain on Exchange Rate 199 102

Other Income 89 50

Cost of sales and services 4,421 4,912

Gross Profit 500 675

Gross Profit (%) 10.15% 12.08%

SG&A expenses 389 390

EBIT before share of profit from investment in Associates and JVs 398 438

Share of profit from investment in Associates and JVs 74 87

EBIT 472 525

Interest income 10 1

Finance cost (94) (87)

Income Tax Expenses (66) (25)

Net Profit to Equity Holders 321 411

Net Profit Margin (%) 6.16% 7.16%

EBITDA 707 773

4,364 4,753 4,603

5,390 5,208

2,119

4,888

5,834 5,739

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Sales & Services Income Gain on Exchange Rate One Time Gain Other Income

AH GROUP : REVENUEAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : REVENUE

21

THB million

Auto Parts75%

Car Dealerships25%

Q1 2021 Sales and Services

IncomeContribution

▪ Q1 2021 Revenue increased by 10.21% year-on-year. Sales and service income increased by 13.54%, with 9.39% increase in automotive parts businesses and 27.76% increase in dealership businesses respectively. The increase in revenue was higher than the industry growth (in terms of volume) of 2.68% year-on-year.

Revenue by Quarter

10.2% yoy

470 450 468643 500

-236

533567 675

10.9% 9.6% 10.6% 12.1% 10.2%

-11.7%

11.2% 9.9% 12.1%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 (500)

-

500

1,000

1,500

2,000

AH GROUP : GROSS PROFITAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : GROSS PROFIT

22

THB million

Gross Profit by Quarter

35.1% yoy

▪ Q1 2021 Gross Profit Margin increased from 10.15% in Q1 2020 to 12.08% in Q1 2021. As a result of an increase sales volume, internal cost reduction activities, productivity improvement and turnaround of Portugal contributed to the improvement of gross profit margin.

AH GROUP : AUTO PART SALESAH Group Consolidated Income Statement


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : AUTO PART SALES

23

THB million

Auto Parts Sales by Quarter

▪ Q1 2021 sales increased by 9.4% YOY to Baht 4.2bn, largely from an increase in customer orders from existing clients and orders due to higher demand for cars and new businesses from closure of financially challenged competitors due to Covid-19. NISSAN

AAM2%

ISUZU32%

FORD5%

DANA3%

OTHERS

TOYOTA2%

Q1 2021OEM Customers

Breakdown

BMW2%

AAT*

6%CONTINENTAL

7%

9.4% yoy

“Isuzu, our major customer, is the best performer in Q1 2021 in Thailand”

1,2331,484 1,321 1,440

1,106714

1,4921,833

1,413

1.5%

0.3%0.8%

0.2%

0.9%0.4%

1.9%

1.3%

0.5%

-1.7%

-0.7%

0.3%

1.3%

2.3%

0

1,500

3,000

4,500

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Thailand Malaysia EBIT%

AH GROUP : CAR DEALERSHIPS SALESAH Group Consolidated Income Statement

Car Dealership Sales by Quarter

THB million

▪ Q1 2021 sales increased by 27.8% year on yeardue to Stronger sales of both dealerships inThailand and Malaysia and openings of two newProton dealerships in Malaysia which started inOctober 2020.

27.8% yoy

Ford17%

Mitsubishi30%

Honda35%

Proton18%

Q1 2021

Ford18%

Mitsubishi33%

Honda39%

Proton10%

Q1 2020


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : CAR DEALERSHIPS

24

377 364 473

-357

707

-388

738 423

773

-1,000

-500

0

500

1,000

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

EBIT Depreciation

5.2% 4.7% 7.0%

-11.4%

9.1%

-28.4%

8.7% 3.6% 9.1%

8.6% 7.7% 10.3%

-6.6%

13.6%

-18.3%

15.1%7.3%

13.5%

-30%

-15%

0%

15%

30%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Unit: as % of total revenue EBIT% EBITDA%

AH GROUP : EBIT & EBITDA


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : EBIT & EBITDA

25

EBIT and EBITDA by quarter

THB million9.3% yoy

Note: EBIT & EBITDA are excluded interest income

217140

204

-740

321

-631

302146

411

-900

-600

-300

0

300

600

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

AH and Subsidiaries Associates and JV

AH GROUP : NET PROFIT


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : NET PROFIT

26

Net Profit by quarter

THB million

5.0% 3.0% 4.4%

-13.7%

6.2%

-29.8%

6.2%2.5%

7.2%

-30%

-20%

-10%

0%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Unit: as % of revenue Net Profit %

28.1% yoy

14.4% 12.4% 11.0%

-2.4%

-1.0%-11.5%

-9.7%

2.0%3.1%

-50%-40%-30%-20%-10%

0%10%20%30%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

ROE (In the Quarter) ROE (Seasonally adjusted)

6.8% 5.7%5.0%

-0.8%

-0.3%

-4.1%

-3.5%

0.7%1.1%

-20%-15%-10%-5%0%5%

10%15%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

ROA (In the Quarter) ROA (Seasonally adjusted)

6.0 4.9 4.2

0.5 1.2-1.2 -0.8

1.4 1.6

-8.0

-4.0

0.0

4.0

8.0

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

3.0 3.3 3.48.7 6.8

18.611.4

6.0 6.0

-10.0

0.0

10.0

20.0

30.0

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

Debt/EBITDA (In the Quarter)Debt/EBITDA (Seasonally adjusted)

AH GROUP : FINANCIAL INDICATORS


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : FINANCIAL INDICATORS

27

Return on Equity (ROE)

Return on Asset (ROA)

Interest Coverage Ratio (ICR)

Debt to EBITDA

Note: EBIT & EBITDA are excluded interest income


SECTION 3: FINANCIAL PERFORMANCEAH GROUP : NET GEARING

28

Debt Ratios

THB 9.2 bn Interest-Bearing Debt

in March 2021

Interest-Bearing Debt

LT Loan

CPD

CPLTDST Loan

LT Bond

▪ Net interest-bearing debt to equity ratio as of March 2021 was 1.12x, compared to 1.22x as of March 2020.

▪ Total liabilities net cash (Net debt) to equity ratio as end of March 2021 was 1.74x.

0.400.69

0.80

1.14 1.20 1.40 1.28 1.22 1.12

0.740.99

1.18

1.77 1.88 1.82 1.81 1.80 1.74

0.00.20.40.60.81.01.21.41.61.82.0

0.0

2.0

4.0

6.0

8.0

10.0

2016 2017 2018 2019 1Q20 2Q20 3Q20 4Q20 1Q21

Debts Equity D/E (L-C)/E

AH GROUP : NET GEARINGAH Group Consolidated Financial Statement

THB bn Times

STRATEGIES AND DIRECTIONS

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 4: STRATEGIES AND DIRECTIONS 29

THAILAND AUTOMOTIVE OUTLOOK IN 2021Total Cars Production Volume Estimation of 1.5mn in 2021


SECTION 4: STRATEGIES AND DIRECTIONSTHAILAND AUTOMOTIVE OUTLOOK IN 2021 30

Overall Outlook in 2021

According to FTI, Thailand automotive industry in 2021 is anticipated car production volume to stand at 1.5 million cars which comprised of 750,000 units for export and 750,000 units for the domestic market.


0.4

6

0.5

8

0.7

5

0.9

3 1.13

1.19

1.29

1.39

1.00

1.65

1.46

2.45

2.46

1.88

1.91

1.94

1.99 2.17

2.0

1

1.43

1.50

-

0.5

1.0

1.5

2.0

2.5

3.0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

E

Production

Forecast

Domestic

Export

Global Financial

Crisis

Flood

First car campaign

Covid-19

+5%

-29%

0

100

200

300

400

Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21

“Stable Sales Volumes and Steady Growth”


SECTION 4: STRATEGIES AND DIRECTIONSSAMPLE OF AUTOMOTIVE PARTS SALES ORDERS FOR CURRENT AND NEW MODELS 31

First car

campaign

Unit: in thousand

Previous model Current model New Model

Covid-19

Flood

Global Financial

Crisis

1. Contractual obligation guarantee by customer2. Price on material fluctuation absorb by customer

SAMPLE MODEL LIFE FOR PICK UP – 10 YEARS

THAILAND AUTOMOTIVE OUTLOOK IN 2021Ongoing Orders Going Forward


SECTION 4: STRATEGIES AND DIRECTIONSCONFIRMED ORDERS – 5 YEARS FOR CARS AND 10-12 YEARS FOR PICK-UP TRUCK

32

ISUZUD-Max Mu-X

MITSUBISHITritonPajero SportMirage

FORDRanger (T6)RapterEverest

FORDFiesta, Focus

Eco Sport

Confirmed Orders – 5 Years for Cars and 10-12 Years for Pick-up Truck

TOYOTAHilux Revo Fortuner

TOYOTACHR Camry

Altis Vios Yaris

MGMG – ZS11MG3 MG5

NISSANNavaraTerraKicks

NISSANAlmera

Sylphy Note March

MAZDABT-50 PRO

Mazda 2Mazda 3

HONDAAccord Civic

City

HONDANES CRV HRV BRV

GLOBAL BUSINESS OPPORTUNITIES


SECTION 4: STRATEGIES AND DIRECTIONSGLOBAL BUSINESS OPPORTUNITIES

33

TOP 10 MOTOR VEHICLE PRODUCTION COUNTRY IN 2020

In 2021, according to IHS Markit 2 forecast, it is estimated the global vehicle production to stand at 89 million cars

Source: 1 OICA: https://www.oica.net/category/production-statistics/2020-statistics/2IHS Markit: https://ihsmarkit.com/research-analysis/light-vehicle-production-outlook-in-2021.html

97 96 92

78

88.9

1.99 2.17 2.01 1.43 1.5 -

20

40

60

80

100

120

2017 2018 2019 2020 2021E

Global Production Thailand Production

+14%

1%

2%

2%

2%

2%

2%

3%

3%

4%

4%

5%

5%

10%

11%

32%

15. CZECH REPUBLIC

14. TURKEY

13. RUSSIA

12. CANADA

11. THAILAND

10. FRANCE

9. SPAIN

8. BRAZIL

7. MEXICO

6. INDIA

5. SOUTH KOREA

4. GERMANY

3. JAPAN

2. USA

1. CHINA

2020 2019

https://www.oica.net/category/production-statistics/2020-statistics/

https://ihsmarkit.com/research-analysis/light-vehicle-production-outlook-in-2021.html


SECTION 4: STRATEGIES AND DIRECTIONSBUSINESS STRATEGY

34

BUSINESS STRATEGYUSA and Japan are Investment Opportunities for our Business Expansion

CHINAINDIA

EUROPE

USA JAPAN

THAILANDMALAYSIA

• 40% JV partnered with Sojitz Group in Vroom for distributing and retailing of KTM, Husqvarna and Bajaj brand

• Appropriated 50.01% shares of SGAH (AH hold 100% in SGAH)

• Acquired AAPICO Maia, S.A. (Portugal) and two subsidiaries (AH directly hold 100%)

• Established two Mitsubishi Car Dealership namely Able Motors Pakkret and Able Motors Pathumthani

AAPICO KEY MILESTONESTaking Steps Toward Globalization


SECTION 4: STRATEGIES AND DIRECTIONSAAPICO KEY MILESTONES

35

• Listed on SET.

• Acquired a chassis frame factory from Dana Corporation.

• Established the first Mitsubishi Car Dealership;Able Motor.

• Expanded to China.

• JV partnered with Minth Corporation.

• JV partnered with Takagi Seiko.

• Completed the 3S showroom for Honda dealers in Malaysia.

• Commenced the operation in Kunshan (China).

• Established JV with;❖ Lemtech

(Taiwan)❖ Edscha

(Germany)❖ Sumino

(Japan)❖ Sodecia

(Portugal)

• Explored opportunity in the start-up business.

• Established AAPICO Training Center.

• Issued bond with a BBB+ from TRIS Rating.

• Achieved 4-star CG rating.

• Partnered with Sakthi Group and invested 25.10% or US$100 million in Sakthi Global Auto Holding Limited (SGAH).

• Increased holding in SGAH from 25.10% to 49.99% with total investment of US$65 million

• Established Proton Dealership in Malaysia (49%)

• Established AAPICO Hyojin Autotech, a 70% subsidiary, operates the automotive assembly jigs design, manufacturing and robotic integration

• Established two Proton Car Dealership namely AAPICO Motors Kuantan and AAPICO Motors Temerloh, Malaysia.

• Partnered with Sojitz Corp.

• Established JV with Mitsuike Corp.

• Acquired forging business from KPN.

Listing for growth Growth Phase Toward Globalization

CONCLUSION / SUMMARY


SECTION 4: STRATEGIES AND DIRECTIONSKEY SUMMARY

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1. Covid-19 seems to abating globally. It augurs well for the global economy.

2. The car industry has rebounded starting from Q3 2020 and has gradually

gained momentum.

3. Aapico expect revenue to grow from 2020 and expect profit to be significantly

better in 2021 vs 2020

4. Base on forecast, Aapico performance will continue to improve against 2020

5. Q1 2021 is a reflection of the automotive industry trend locally and globally.

6. Aapico outperformance because of the product mix and winning of new

businesses

7. We have a turnaround in 2021 and positive going forwards


SECTION 4: STRATEGIES AND DIRECTIONSKEY SUMMARY

37

8. In China, Portugal and India where we have plant operations, the performance

is also improved in 2021 vs 2020.

9. We do not have any large investments in 2021 and expect to repay significant

debts in 2021 to bring down interests.

10. Steel prices have increased significantly. Fortunately, not much impact to

Aapico as we can pass the price increase to the OEMs.

11. Some shortages of electronic parts. Expect to be resolved by Q3 2021.

12. Sunshine is back again from the very serious concern at the start of Covid-1

CONCLUSION / SUMMARY

APENDICES

AAPICO HITECH PLCProvided by Investor Relations DepartmentSECTION 5: APPENDICES 38


SECTION 5: APPENDICESAPPENDIX 1: SUSTAINABILITY DEVELOPMENT

APPENDIX 1: SUSTAINABILITY DEVELOPMENTAAPICO Group sees the importance of sustainable business operation. Therefore, the Company has developed

this sustainability framework to serve as guidelines and targets for the Company’s operation and activities to keep inline with the Company’s vision.

Eco-Efficiency

Elevate Quality of Life

Enhance Economic Value- Application of innovation for efficient resource management

- Maximize circulation and recycling of resources

- Introduction of environmental care processes and activities within the operation plants and communities

- Strict and efficient management of wastes from manufacturing processes

- Skill development of the Company’s personnel

- Encourage employees’ Innovation and creativity

- Creating a happy and safe working environment

- Supporting community’s improvement

- Respecting human’s rights and enforcing fair treatment of labors

- Implementation of innovation in manufacturing process to increase productivity and efficiency

- Increase competition channels for small suppliers

- Expand business relations by utilizing win-win strategy

- Ensuring customers’ satisfaction on quality, price, and delivery

- Efficient risk management

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1Q 2021 EARNINGS RESULT PRESENTATION

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