Opportunity Day 1Q2020 June 4,...
Transcript of Opportunity Day 1Q2020 June 4,...
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Strive for sustainable growth in automotive industry through advanced technology and partnership
Opportunity Day
1Q2020 June 4, 2020
Automotive Industry Overview
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Tractor Industry Overview
Sale Performance
Financial Highlights
Company Overview
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Company Overview
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SAT
Paid up 425 million Baht
ICP SBM BSK SFT
Tsuchiyoshi Somboon
Coated Sand Yamada Somboon
Nisshinbo Somboon Automotive
Somboon Somic Manufacturing
21.25%
20.00%
2.90%
1.80%
1. Somboon Holding Co.,Ltd. 29.99%
2. Thai NVDR 12.87%
3. Nortrust Nominees Ltd-Cl Ac. 6.10%
4. BBHISL NOMINEES LIMITED 4.42%
5. NORTRUST NOMINEES LIMITED- 1.75%
THE NORTHERN TRUST COMPANY RE 6. Others 44.87%
As of March 5, 2020
99.99% 99.99% 99.99% 99.99%
Note: Somboon Holding & Kitaphanich Family owns approximately 44%
Mubea Somboon
Automotive
50.00%
Nippon Kikai Engineering
51.00%
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Process: Forging/ Machining
Product: Axle Shaft,
Hub
Process: Casting/ Machining
Product: Disc & Drum Brake,
Exhaust Manifold,
Fly Wheel, Bracket, Hub
Process : Bending & Coiling Product: Spring Product
Customers :
Amata Industrial Estate
4 Plants
+ MSA 1Plant
Samutprakarn
Rayong
Eastern Seaboard
Industrial Estate
1 Plant
Bangna
Head Office
3 Plants
+MSA 1 Plant
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7
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Automotive Industry Overview
258
251
249
219
200
304
254
257
222 254
561
504
507
441
454
0
100
200
300
400
500
600
1Q19 2Q19 3Q19 4Q19 1Q20
Domestic Export Total
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• QoQ : Car production increased +3% as export increased +14% but domestic declined -9%
• YoY : Car production declined -19% as export declined -16% and domestic declined -23%
69
82
68
71
67
61
84
72
67
85
83
85
153
154
134
156
151
147
0
20
40
60
80
100
120
140
160
180
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Unit: Thousand cars
328
294 296
259 273
119
110 117
98 84
104
91 83
74 89
10
9 12
9 9
0
100
200
300
400
500
600
1Q19 2Q19 3Q19 4Q19 1Q20
Pickup Car Passenger Car Eco Car Commercial
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• QoQ (+3%) : Changes in Pick up, Passenger and Eco car are +5%, -15% and +19%
• YoY (-19%) : Changes in Pickup, Passenger and Eco car are -17%, -30% and -14%
89 91
80
95 89 89
35 34
29
28 27 28
26 26
23
31 32
27
3 3
3
3 3
3
0
20
40
60
80
100
120
140
160
180
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Unit: Thousand cars
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• QoQ (-9%) : Changes in Pickup, Passenger and Eco car are -1%, -36% and +12%
• YoY (-23%): Changes in Pickup, Passenger and Eco car are -20%, -41% and -7%
132 126 122
107 106
64 61 70
60
38
51 54 46
42
47
10 9 12
9
8
0
50
100
150
200
250
300
1Q19 2Q19 3Q19 4Q19 1Q20
Pickup Car Passenger Car Eco Car Commercial
31
41
36 38
36 33
22
20
18 13
11 14
13
18
11 18
17
12
3
3
3 3
3
3
0
10
20
30
40
50
60
70
80
90
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Unit: Thousand cars
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• QoQ (+14%) : Changes in Pickup, Passenger and Eco car are +10%, +20% and +29%
• YoY (-16%) : Changes in Pickup, Passenger and Eco car are -15%, -17% and -21%
196
168 173
152 167
55
49 47
38
46
53
37 37
32
41
0
50
100
150
200
250
300
350
1Q19 2Q19 3Q19 4Q19 1Q20
Pickup Car Passenger Car Eco Car Commercial
58
50
44
57 53
56
14
14
11
15 15
15
12
8
11
13 15
14
0
10
20
30
40
50
60
70
80
90
Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Unit: Thousand cars
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• QoQ: Car export increased +7% mainly from export to Central & South America, Australia and Europe.
• YoY : Car export declined -17% mainly from export to Australia, Asia and Europe.
84 84 102
85 101 88 89 79 89 83 72
58 64
76 71
77 80
70 75
89 87
84 74 86
75 64
23 25
29 35 28
24 28
28 33
26 39
35 40
39 31
37 37 36
27
30 30
37
34 25
21 27
29 19
25 21 28
21
26 19
24
13 18
17 24
27
17
37
25 24
21
24 31
27
22 15
19 21
8
5
7
7 8
11
10 8
6
8 7
9 10
0
50
100
150
200
250
300
350
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Africa
North America
Central & South
America
Europe
Middle East
Asia
Australia
Unit: Thousand cars
0.5
0.3
0.1
0.2
0.3
0.3
0.4
0.5
0.6
0.7
0.7
0.6
0.6
0.5
0.8
0.8
1.4
1.3
0.8
0.7
0.8
0.9
1.0
2
0.9
8
0.0
0.0
0.1
0.1
0.2
0.2
0.2
0.2
0.3
0.4
0.5
0.7
0.8
0.5
0.9
0.7
1.0
1.1
1.1
1.2
1.2
1.1
1.1
4
1.0
4
0.6
0.4
0.2
0.3 0.4 0.5
0.6
0.8
0.9
1.1 1.2
1.3 1.4
1.0
1.6
1.5
2.5 2.5
1.9 1.9 1.9 2.0
2.2
2.0
-
0.5
1.0
1.5
2.0
2.5
3.0
Export
Domestic
Total Production
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Asian Financial Crisis
Global Financial Crisis
Thailand Floods & Tsunami in Japan
CAGR = 1% CAGR =9%
First car scheme
1.13
1.25
1.18
0.45
0.49
0.44
0.36
0.39
0.35
0.0 0.5 1.0 1.5 2.0
2017
2018
2019
Pickup&PPV Passenger Eco CV
Un
it : M
illio
n c
ars
Unit : Million cars
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Tractor Industry Overview
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Source : Customer
Unit: in Thousand
• QoQ: Declined -8%
• YoY : Declined -20%
11
15 14 12
15 17
15 16
21
18 17 17 16
3
2 6
2
3 3 5 3
1
2 4 2
2 15
17
20
15
18 19
20
19
23
20
21
19
18
0
5
10
15
20
25
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Tractor Combine Total
21 17
30
52 55 59 54
44 53
63
74
0 1
3
5 6
7 12
15
14
14
10
21 18
33
57
61
65 66
59
66
77
83
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 F2020
Tractor Combine Total
Drought
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Unit: in Thousand
Flood
Drought
Source : SBG’s Forecast
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Sale Performance
29%
23%
24%
19%
5%
30%
26%
24%
16%
4%
0% 10% 20% 30% 40%
Axle Shaft
Disc Brake &
Drum Brake
Casting/Machining
(Automotive)
Casting/Machining
(Kubota)
Hub/Big Hub
2019 2020
76%
25%
12%
74%
28%
11%
0% 20% 40% 60% 80%
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Market Share Sales Contribution
20
33%
25%
20%
6%
4%
2%
2%
1%
4%
3%
38%
23%
16%
8%
4%
2%
1%
1%
3%
4%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Mitsubishi
Toyota/Hino
Kubota
Isuzu
Honda
GM
Nissan
Ford & Mazda
Direct Export
Others*
2020 2019
Note : *Other : Other customer and REM customer.
2019 1Q2019 4Q2019
1Q20
Production line Capacity pcs /month
Utilization (%)
Capacity pcs /month
Utilization (%)
Capacity pcs /month
Utilization (%)
Capacity pcs /month
Utilization (%)
Axle Shaft 365,500 65% 365,500 75% 365,500 54% 365,500 61%
Machining (Auto) 437,000 64% 437,000 72% 437,000 64% 437,000 63%
Machining (non-Auto)
229,000 77% 229,000 80% 229,000 77% 229,000 55%
General Forging 280,500 37% 280,500 44% 280,500 29% 280,500 34%
Total (SBG) 65% 73% 59% 58%
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Note : 1. Capacity is calculated based on 500 hours per month (20 hours x 25 days) except Axle Shaft & General Forging: 550 hours per month
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Financial Highlights
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362 327 391 430 433 330 391 340 335
1,629 1,593
1,698 1,764 1,769
1,592 1,604
1,547 1,496
1,991 1,920
2,089
2,194 2,202
1,922 1,995
1,887 1,831
0
500
1,000
1,500
2,000
2,500
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Gross Profit COGs SalesUnit: Million Baht
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340 335
1,547 1,496
18.0% 18.3%
0%
5%
10%
15%
20%
25%
0
500
1,000
1,500
2,000
4Q19 1Q20
Gross Profit COGs %GP
QoQ Comparison Sale 3.0%
COGS 3.3%
GP (amount) 1.5%
%GP 0.3%
• Sale declined by 3.0% mainly
from the decline in agricultural
industry.
• GP amount declined by 1.5%
mainly from decrease in sale
revenue.
Unit: Million Baht %GP
25
433 335
1,769
1,496
19.7%
18.3%
0%
5%
10%
15%
20%
25%
0
500
1,000
1,500
2,000
2,500
1Q19 1Q20
Gross Profit COGs %GP
YoY Comparison Sale 16.8%
COGS 15.4%
GP (amount) 22.6%
%GP 1.4%
• Sale declined by 16.8% mainly
from the decline in the
automotive industry and the
agricultural industry.
• GP amount declined by 22.6%
mainly from decrease in sale
revenue.
Unit: Million Baht %GP
26
235
183
243 254
287
170
227 215
191
11.9%
9.5%
11.6% 11.6%
13.0%
8.8%
11.4% 11.4%
10.4%
0%
2%
4%
6%
8%
10%
12%
14%
0
50
100
150
200
250
300
350
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
Net Profit % Net Profit %NP Unit: Million Baht
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Note: 1 Others include gain/loss on fx , other incomes, and other expenses
1
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Note: 1 Others include gain/loss on fx , other incomes, and other expenses
1
29
435
371
439 448 478
354
413 407 375
21.8%
19.3%
21.0% 20.5%
21.7%
18.4%
20.7% 21.6%
20.5%
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20
EBITDA % EBITDAUnit: Million Baht
1.4
8
1.4
8
1.9
7
2.1
2
1.0
5
2.2
7
1.1
9
2.4
0
2.0
0
1.5
3
1.5
1
1.4
3
1.9
1 2
.15
2.1
1
0.4
5
0.5
0 0.7
0
0.3
0
0.0
0
0.9
0
0.4
5
0.9
7
0.7
5
0.6
0
0.6
0
0.6
0
0.9
0
1.3
5
1.3
5
30% 34% 36%
14%
0%
40% 38%
40% 38% 39% 40%
42%
47%
63% 64%
0%
10%
20%
30%
40%
50%
60%
70%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
EPS DPS %Dividend Payout
30
Unit: Baht per Share Unit: % Payout
Note: Dividend policy at a minimum rate of 30% of net profit after tax and legal reserve
• Dividends from operation of the year 2019 at the rate of 1.35 Baht per share:
- 0.35 Baht per share for interim dividends paid on September 6, 2019
- 1.00 Baht per share paid on April 28, 2020.
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Awards from customer
TCC HRD Activity 2017 from Toyota
The Winner TPS Award 2017 from Toyota
MCC QCC Activity 2017 from Mitsubishi
Quality Award and Delivery 2017 from
Kubota
SKC Delivery Skill Contest 2017 from Kubota
RUNNER UP SKC Delivery Kaizen Award 2017
from Kubota
Gold Award QCD 2017 from Kubota
Quality Award and Delivery 2017 from Isuzu
Awards from various agencies
Sustainability Awards of Honor 2019 from SET
Thailand Sustainability Investment 2019 (THIS)
from SET
SET Award of Honor -Excellence in Investor
Relations 2017-2019 from SET
Best IR Awards 2015-2016 from IAA
Gold Level Thailand HR Innovation Award
2017, the highest award from the National
Institute for Productivity in collaboration with
the PMAT & NIDA
CSR-DIW Continuous Award 2017 from DIW
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Unit : Million Baht 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY Y2018 Y2019 YoY
Sales 1,991 1,920 2,089 2,194 2,202 1,922 1,995 1,887 1,831 -3.0% -16.8% 8,194 8,006 -2.3%
Total Revenue 2,020 1,952 2,118 2,218 2,235 1,955 2,027 1,982 1,864 -6.0% -16.6% 8,308 8,199 -1.3%
Gross Margin 362 327 391 430 433 330 391 340 335 -1.5% -22.6% 1,510 1,494 -1.1%
SG&A 151 170 168 194 184 181 183 188 161 -14.4% -12.5% 683 736 7.8%
FOREX Gain (Loss) 2 1 2 -1 0 -3 1 2 -1 -131.2% -487.5% 4 0 -94.7%
Interest Expense 10 6 4 3 3 3 2 3 3 -7.4% -2.1% 23 11 -53.3%
Net Profit 235 183 243 255 287 170 227 215 191 -11.2% -33.4% 916 899 -1.9%
Net Profit excluding fx 233 182 241 256 287 173 226 213 192 -10.0% -33.2% 912 899 -1.5%
EBITDA 435 371 439 449 478 354 413 407 375 -8.1% -21.7% 1,694 1,652 -2.4%
Cash Flow from Operating 165 410 509 369 359 350 372 216 439 103.2% 22.3% 1,453 1,297 -10.7%
Depreciation 166 165 167 165 161 161 160 161 156 -3.1% -3.1% 663 643 -3.0%
CAPEX 56 105 87 109 52 96 84 119 68 -42.9% 30.8% 357 351 -1.7%
Effective Tax Rate 9% 9% 9% 9% 9% 11% 10% 12% 11% -0.2% 2.8% 9% 10% 0.7%
Total Assets 9,128 8,787 8,953 9,065 9,401 8,984 9,430 9,311 9,480 1.8% 0.8% 9,065 9,311 2.7%
Interest Bearing Debt 747 422 390 309 281 252 372 317 194 -38.8% -31.0% 309 317 2.6%
Total Liabilities 2,473 2,225 2,299 2,178 2,228 2,065 2,391 2,108 2,086 -1.0% -6.4% 2,178 2,108 -3.2%
Equity 6,656 6,562 6,654 6,887 7,174 6,919 7,038 7,203 7,394 2.7% 3.1% 6,887 7,203 4.6%
Key Financial Ratios 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 QoQ YoY Y2018 Y2019 YoY
%GP 18.2% 17.0% 18.7% 19.6% 19.7% 17.2% 19.6% 18.0% 18.3% 0.3% -1.4% 18.4% 18.7% 0.2%
%SG&A 7.6% 8.9% 8.0% 8.8% 8.4% 9.4% 9.2% 10.0% 8.8% -1.2% 0.4% 8.3% 9.2% 0.9%
%NP 11.8% 9.5% 11.6% 11.6% 13.0% 8.8% 11.4% 11.4% 10.4% -1.0% -2.6% 11.0% 11.0% -0.1%
%NP excluding fx 11.7% 9.5% 11.6% 11.6% 13.0% 9.0% 11.3% 11.3% 10.5% -0.8% -2.6% 11.0% 11.0% 0.0%
%EBITDA 21.8% 19.3% 21.0% 20.5% 21.7% 18.4% 20.7% 21.6% 20.5% -1.1% -1.3% 20.4% 20.2% -0.2%
%ROA 10.1% 8.1% 10.6% 10.9% 12.4% 7.7% 9.9% 9.4% 8.1% -1.3% -4.3% 10.1% 9.7% -0.4%
EBITDA/CAPEX 7.76 3.53 5.05 4.12 9.20 3.68 4.92 3.42 5.51 2.08 -3.69 4.74 4.71 0.0
%ROE 14.8% 11.6% 15.2% 15.3% 16.6% 10.1% 13.3% 12.2% 10.5% -1.7% -6.1% 13.3% 12.5% -0.8%
%ROIC 15.3% 10.5% 13.7% 13.9% 15.6% 9.8% 12.7% 11.8% 10.3% -1.5% -5.3% 10.4% 9.8% -0.6%
Interest bearing Debt/Equity 0.11 0.06 0.06 0.04 0.04 0.04 0.05 0.04 0.03 -0.02 -0.01 0.04 0.04 0.00
D/E 0.37 0.34 0.35 0.32 0.31 0.30 0.34 0.29 0.28 -0.01 -0.03 0.32 0.29 -0.02
EPS (Baht) 0.55 0.43 0.57 0.60 0.68 0.40 0.53 0.51 0.45 -11.2% -33.4% 2.15 2.12 -1.6%
BVPS (Baht) 15.66 15.44 15.66 16.20 16.88 16.28 16.56 16.95 17.40 2.7% 3.1% 16.20 16.95 4.6%
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Somboon Advance Technology Public Company Limited – Investor Relations Department
Tel. +66 2 080 8197, Fax. +66 2 080 8198 , Email : [email protected], Website : http://www.satpcl.co.th
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Thank You