Opportunity Day Presentation - listed...

August 29th, 2013

AAPICO HITECH PLC [AH]

Ms. Yeap Xin Rhu

Opportunity Day Presentation

The Stock Exchange of Thailand

Financial Performance for the 2nd quarter of 2013

Copyright by AAPICO HITECH PLC 2

Company Profile

Industry Overview

Financial Summary

Events & Activities

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 OEM auto parts,

including floor parts, cross members, pillars, clips,

brackets, fuel tanks, forged and machining parts,

plastic parts, and chassis frame components.

Comprised of 33 companies (24 in Thailand and 9

Overseas).

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

consist of 322,583,844 ordinary shares at par value

of Baht 1 each.

Major shareholders are the Yeap family holding

approximately 41% and Sojitz Corporation holding

15.75% of total outstanding shares.

Industry/Sector : Auto

Average price : Baht 14.80*

52 weeks range : Baht 13.20 – 35.00

Market Cap : Baht 4,774 million

P/E : 4.74 x

P/BV : 0.91 x

* Data as of August 28th, 2013.

** Preferred shares were converted to ordinary shares

on August 2nd, 2013.


Business Segment

The AAPICO Group produces a great variety of automotive parts, including pressed and

stamped parts (e.g. steel fuel tanks and chassis frames), forged and machined parts, and

plastic parts. In addition, the Company also produces car accessories. The majority of dies

and jigs used to manufacture these OEM auto parts are also designed and produced by

AAPICO. Moreover, the non-automotive categories include car dealerships and technology

products such as car navigation system and Enterprise Resource Planning.

Manufacturing Dealership Navigation


Manufacturing

Steel Fuel Tank

and Tank Sender

Chassis Frame

Forged Parts and

Machined Parts

Pressed Parts and

Stamping Parts

Plastic Part and

Plastic Fuel Tank

Fuel Line, Brake

Line, Engine Part

Design, Manufacture

and Installation of Jigs

Design and

Manufacture of

Stamping Dies

Door Check,

Brazed Steel

Tubing


Car Dealership/Car Navigation

Ford

Dealership

Thailand

100% own

Mitsubishi

Dealership

Thailand

100% own

Hyundai

Dealership

Thailand

30% own

Honda

Dealership

Malaysia

100% own

Car

Navigation


AAPICO’s Vision

“AAPICO Group’s Vision is to become a

“Lean” 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 & Happy Organization Where we want to go?

How do you want people to

remember us

Manufacturing

Where we are

AAPICO’s Vision


Our OEM Customers


Strategic

Shareholder Joint Ventures Technical

Partners

Our Partners


Recent Joint Ventures Update

• Manufacturer of door check and door hinges

• Registered capital of Baht 40,000,000

• EDSCHA 51% : AAPICO 49%

• Operations started since May 2013

• Associate company (financials included as from Q2 2013)

EDSCHA

AAPICO

• Development, manufacture, assembly, and sales of

automotive, electronic and computer parts in Thailand and

overseas.


• AAPICO 60% : LEMTECH 40%

• Operations started since May 2013

• Subsidiary company (financials included as from Q2 2013)

AAPICO

LEMTECH


Recent Joint Ventures Update

• Manufacture of precision press welding parts for cars for

original equipment manufacturers in Thailand


• Expected investment around Baht 400-500 million

• SUMINO 51% : AAPICO 49%

• Factory under construction in Amata Nakorn, Chonburi

• Expect operations in 2014.

SUMINO

AAPICO

• Manufacture of chassis cradles for passenger cars, car

cross beams and welded assemblies for BIW


• AAPICO 50% : SODECIA 50%

• On process with company registration

AAPICO

SODECIA


China

Malaysia

Main operations in Thailand

Global Operations


Bangkok

Ayutthaya

Rayong

Chonburi Samutprakan

Factories in Thailand

AA

AF

ASP

AP

AH, AP

AHP

AHT

AITS

AH

AL


CHINA

INDIA

ASIA JAPAN

EUROPE AMERICA

Business Strategy

THAI

MSIA

INDO

PHIL

Thailand Car Industry


Thailand Car Industry 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

Forecast

Others

Passenger Car

Pick up / PPV

Tom Yum

Kung

Hamburger

Flood

Thailand Car Production Trend 1991–2013 Jun

Unit : Million


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

Unit : Million

0.2

0.5

0.7

0.9

1.1

1.3

2.4

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

Pick up /

PPV64%

Passenger

Car34%

Others

2%

2012

Pick up / PPV54%

Passenger

Car44%

Others2%

2013

Car production in Jan-Jun

increased from 1,061,297 units in

2012 to 1,340,959 units in 2013,

representing 26.4% growth year-

on-year.

Car Production : Jan-Jun

1,061,297 units

1,340,959 units


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

Unit : Million

Trend Car Production by month from 2010–2013 Jun

-

50,000

100,000

150,000

200,000

250,000

300,000

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Others

Passenger Car

Pick up / PPV

10.2%

64.5%


1-Ton Pick up

44%Passenger

Car48%

Others8%

2013

1-Ton Pick

up50%

Passenger

Car43%

Others7%

2012

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

Unit : Million

Domestic car sales in Jan-Jun

increased from 606,574 units in

2012 to 740,795 units in 2013,

representing 22.1% growth year-

on-year.

Domestic Car Sales: Jan-Jun

606,574 units

740,795 units

0.1

0.3

0.4

0.5

0.6

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


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

Unit : Million

Trend Domestic Car Sales by month from 2010–2013 Jun

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Others

Passenger Car

1-Ton Pick up

0.1%

69.2%


Market updates

The office of Industrial Economics will study the

promotion of the Eco-car production Phase 2, which

car automakers must produce 400,000 units within 8

years.

Prime Minister, Ms. Yingluck Shinawatra, invites

Volkswagen to build eco-cars in Thailand, which has

attractive investment-promotion policies and a strong

automobile industry – The Nation August 24, 2013

Honda laid the foundation stone of its new factory in Rojana Industrial Estate, Prachinburi

with investmentt over Baht 7 billion. This new factory is expected to be completed in mid-

2015 and has production capacity of 120,000 units per year. Including the existing capacity

at Ayutthaya plant, annual production capacity of Honda will reach 400,000 units.

Five automakers in phase 1, Nissan, Honda, Suzuki,

Mitsubishi and Toyota, were required to produce

100,000 units of Eco-cars within 5 years.

Financials 2nd Quarter 2013 Performance


Financial Highlights


Sales trend by quarter

3,003

3,935 4,303

4,880

4,542

3,902

Q1 Q2 Q3 Q4

2012Q 2013Q

Sales by Quarter

(Unit : Million Baht)

2,831

5,433

8,465

10,356

3,003

6,938

11,241

16,120

4,542

8,445

Q1 Q2 Q3 Q4

2011YTD 2012YTD 2013YTD

Sales Year-to-Date

(Unit : Million Baht)


Q2 Sales

3,239

217

478

3,070

235

597

Q2

Thailand China Malaysia

2,815

217 424 478

3,074

221

609 639

2,684

235 386

597

Autoparts TH Autoparts CN Dealers TH Dealers MY

2Q12 1Q13 2Q13

Q2 Sales by countries

(Unit: Million Baht)

Q2 Sales by segment



EBITDA by quarter

243

436 478

538 470 422

Q1 Q2 Q3 Q4

2012Q 2013Q

212

375

622

249

243

679

1,157

1,695

470

892

Q1 Q2 Q3 Q4

2011YTD 2012YTD 2013YTD

Earnings before interest, tax,

depreciation year-to-date (Unit: Million Baht)

Earnings before interest, tax,

depreciation by quarter (Unit: Million Baht)

Flood

2011


EBIT

Earnings before interest and tax

by quarter (Unit: Million Baht)

Flood

2011

97

271 248

316 289

232

Q1 Q2 Q3 Q4

2012Q 2013Q

265

24

214

17

250

21

Autoparts Dealership

2Q12 1Q13 2Q13

Earnings before interest and tax

In Quarter 2 by segment (Unit: Million Baht)


Net Profit

100

276

172

374

284

189

Q1 Q2 Q3 Q4

2012Q 2013Q

Net Profit by quarter


276

189

+3

-39

-43

-7

Q2 2012 EBIT Associates Finance Tax Q2 2013

Net Prof it Higher Lower

Net Profit Bridge Q2’12 vs. Q2’13


Due to lower

insurance settlement

of Baht 60 million


Jan-Jun 2013 performance

5,900

406

631

6,753

456

1,236

1H

Thailand China Malaysia

Jan-Jun Sales by countries


5,095

406 805 631

5,758

456

995 1,236

Autoparts TH Autoparts CN Dealers TH Dealers MY

Jan-Jun 2012 Jan-Jun 2013

Jan-Jun Sales by segment



Jan-Jun 2013 performance

92 142

281

-392

100

376

548

922

284

473

Q1 Q2 Q3 Q4

2011YTD 2012YTD 2013YTD

Net Profit Year-to-Date


376 473

-34-22

1532

Jan-Jun

2012

EBIT Associates Finance Tax Jan-Jun

2013

Net Prof it Higher Lower

Driven by higher sales

and improved margin

Net Profit Bridge 1H’12 vs. 1H’13


Flood

2011


Financial Performance

Sales & Share price trend from 2002 – 2013 Jun

0

5

10

15

20

25

30

35

40

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

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

Unit : Millions Sales & Service Income Share price


Customer Profile

Forged

and

Machined

Parts

Plastic

Parts

Press and Stamping Parts

ISUZU57%

AAT9%

NISSAN7%

TOYOTA; 2%

SUMMIT; 1%

HONDA; 1%

KYOKUYO; 1%

CALSONIC; 1%

GM; 1%

Others20%

Jan-Jun2013

AAT26%

GKN25%TRTC

12%

DANA10%

MAGNA9%

AAM6%

TYM4%

Others8%

Jan-Jun2013

AAT37%

TYM15%

FORD10%

JSI8%

TAKAGI5%

HONDA; 5%

TS TECH; 2%

HINO; 3%

Others15%

Jan-Jun2013


Utilization : By Factories

Press parts and Assembly Parts

AH – Ayutthaya 85%

AHP – Ayutthaya 85%

AH – Rayong 80%

Forging Parts

AF 80%

Kunshan 65%

Shanghai 95%

Chassis Frames

AA 95%

ASP 95%

Plastic Parts

AP – Bangplee 70%

AP – Rayong 45%


Utilization : By Products

No. Products Utilization

1 Press Parts 95%

2 Fuel Tank (Steel) 25%

3 Fuel Tank (Plastic) 65%

4 Pick Up Frames 95%

5 Forging 85%

6 Washer Tank 70%

7 Door Check 85%

8 Brake/Fuel Line 85%

9 Engine Parts 85%

10 Door Sash 95%

11 Jigs 70%

12 Dies 90%


Fluctuation of Steel Price

No significant impact on the Company’s financial results since 80% of our material costs

(steel) is under centralized purchasing scheme.

Labor problems

Labor Strike : good welfare and good communication.

Labor shortage : recruiting non-Thai labors (Cambodian, Burmese).

300 Baht daily minimum salary has been implemented.

Foreign Exchange Rate Risk

No significant impact as more than 90% of sales are in local currencies.

Natural Disasters

Financial impact is taken up by insurance coverage.

For flood protection, dyke has been built around the industrial estate.

Major Risk Factors

Events & Activities


EGM No.1/2013

Place: Professor Sangvien Indaravijaya Auditorium, SET

Date: July 29th, 2013 / Time: 14:30 – 14:50


Sumino AAPICO Foundation Stone laying

Place: Sumino AAPICO (Thailand) Co., Ltd,

Amata Nakorn, Chonburi

Date: August 23rd, 2013


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


Copyright by AAPICO HITECH PLC.


Thailand Car Industry

-

50,000

100,000

150,000

200,000

250,000

300,000

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Aug

Sep

Oct

No

v

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Production Domestic Export

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

Trend Car Industry by month from 2010–2013 Jun

2010 2011 2012 2013


Financial Performance

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Oct 0

2

Ja

n 0

3

Ap

r 0

3

Ju

l 03

Oct 0

3

Ja

n 0

4

Ap

r 0

4

Ju

l 04

Oct 0

4

Ja

n 0

5

Ap

r 0

5

Ju

l 05

Oct 0

5

Ja

n 0

6

Ap

r 0

6

Ju

l 06

Oct 0

6

Ja

n 0

7

Ap

r 0

7

Ju

l 07

Oct 0

7

Ja

n 0

8

Ap

r 0

8

Ju

l 08

Oct 0

8

Ja

n 0

9

Ap

r 0

9

Ju

l 09

Oct 0

9

Ja

n 1

0

Ap

r 1

0

Ju

l 10

Oct 1

0

Ja

n 1

1

Ap

r 1

1

Ju

l 11

Oct 1

1

Ja

n 1

2

Ap

r 1

2

Ju

l 12

Oct 1

2

Ja

n 1

3

Ap

r 1

3

AH Index1 SET Index2

AH Share price versus SET Index from Oct 2002 – Jun 2013*

1 AH Index : 100 base = price as end of Oct 2002 2 SET Index : 100 base = price as end of Apr 1975


Milestones

1985 Registered

Able Autoparts

Industries Co.,

Ltd and started

as the Ford

Assembler and

Distributor

1995 Signed technical

agreement with

Keylex Japan to

produce fuel tanks for

Ford and Mazda pick

ups.

1997 Completed factory

in Hitech Industrial

Estate, Ayutthaya.

Establish 1st

Japanese JV with

Sanoh Japan

2002 Full operation,

545 employees.

List on the SET

2003 Purchased Parish

Structural

Products from

Dana Corp., USA

and renamed

AAPICO Amata.

2004 Expanded to China by

acquiring Kunshan

Chaitai-Xincheng

Precision Forging.

Establish JV with Fischer

Tech, a plastic injection

manufacturing company.

2005 Establish strategic

partnership with

Sojitz Corp., Japan.

Established

AAPICO Shanghai.

2006 Acquired 60% of

Able ITS, a car

navigation system

company.

Establish JV with

Mitsuike Japan.

Establish AAPICO

Hitech Parts.

2007 Acquired KPN PLC and

renamed AAPICO Forging.

Signed technical

agreement with Edscha

and Kautex, Germany.

2008 Establish JV

with Minth

Corp, China.

Construct 3

new factories

for AAPICO

Hitech,

AAPICO

Plastics and

Minth

AAPICO.

2010 Establish JV with

Thai Takagi Seiko.

AAPICO 25th

Anniversary

2009 Establish AAPICO

Structural Products.

2011 Acquire 49% of

AAPICO ITS (MY)

Completed 3S

Honda Showroom

Flood 2011.

2012 Kunshan

new factory

started

operation.


Dividend payment

The Board of Directors has agreed to

resolve to pay interim dividend for

the performance of the first half of

2013 at the rate of Baht 0.35 per

share. The record date will be on

August 29th, 2013 and the closing

date is on August 30th, 2013.

Dividend will be paid on September

12nd, 2013.

The dividend policy of the Company

is to pay of not less than 10% of the

Company’s net profit after tax.

Dividend payment decision is also be

subjected to future investment plan

and other necessities as the

Company deems appropriate in the

future.

0.26 0.21 0.16 0 0.488 0.45 0.35

40.6%

30.7% 31.1%

0.0%

35.1%

22.2%24.2%

1H 2010 2H2010 1H 2011 2H 2011 1H 2012 2H 2012 1H 2013

Dividend per share Dividend payout % of prof it

Dividend Payment in the past 3 years

(Unit: Baht per share or in percentage)

Flood

2011

Opportunity Day Presentation - listed...

Documents

Transcript of Opportunity Day Presentation - listed...