1 S mart People B usiness Trust G rowth Society Company Overview - PowerPoint PPT Presentation

Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility 1 S mart People B usiness Trust G rowth Society

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights 2 S mart People B usiness Trust G rowth Society

As of March 5, 2018 1. Somboon Holding Co.,Ltd. 29.92% 2. Thai NVDR 13.88% 3. Nortrust Nominees Ltd-Cl Ac. 6.07% SAT 4. AIA COMPANY LIMITED - EQ3-P 1.69% 5. NORTRUST NOMINEES LIMITED- 1.63% Paid up 425 million THE NORTHERN TRUST COMPANY Baht 6. Others 46.81% 50.00% 99.99% 99.99% 99.99% 99.99% ICP SBM BSK SFT 21.25% 20.00% Yamada Somboon Tsuchiyoshi Mubea Somboon Somboon 2.90% Coated Sand Automotive Nisshinbo Somboon Automotive 1.80% Somboon Somic Note: Somboon Holding & Kitaphanich Family Manufacturing owns approximately 44% 3 S mart People B usiness Trust G rowth Society

Process: Process: Forging/ Casting/ Machining Machining Product: Product: Axle Shaft, Disc & Drum Brake, Hub Exhaust Manifold, Fly Wheel, Bracket, Hub Customer: Customer: Process : Bending & Coiling Product: Spring Product Customer: 4 S mart People B usiness Trust G rowth Society

Bangna Head Office 3 Plants Rayong ong +MSA 2 Plants Samutpr utprak akarn arn Eastern Seaboard Industrial Estate 1 Plant Amata Industrial Estate 4 Plants + MSA 1Plant 5 S mart People B usiness Trust G rowth Society S mart People B usiness Trust G rowth Society

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Unit: Thousand cars Domestic Export Total 600 250 540 500 527 511 200 486 195 465 190 400 178 166 150 163 157 300 310 301 288 278 100 106 250 104 239 98 99 233 200 91 217 90 215 85 197 82 80 75 73 68 50 100 0 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ: Car production increased +6% as export increased +8% and domestic increased +2% • YoY : Car production increased +11% as export increased +4% and domestic increased +21% • 9 S mart People B usiness Trust G rowth Society

Unit: Thousand cars 250 600 Pickup Car Passenger Car Eco Car Commercial 9 11 10 95 200 500 100 3 9 102 4 9 87 3 35 76 37 3 125 3 400 31 114 3 150 111 29 113 34 116 31 45 42 41 300 38 310 302 36 34 288 100 276 264 200 112 108 103 50 96 90 90 100 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 QoQ (+6%) : Changes in Pick up, Passenger and Eco car are +8%, +12% and -6% • YoY (+11%) : Changes in Pickup, Passenger and Eco car are +12%, +10% and +10% • 10 S mart People B usiness Trust G rowth Society

Unit: Thousand cars 100 300 Pickup Car Passenger Car Eco Car Commercial 90 3 4 80 250 18 3 9 3 10 3 70 22 15 47 9 11 56 3 16 200 9 38 45 19 60 14 24 31 60 19 50 58 56 16 22 150 56 61 17 18 40 122 100 111 110 30 104 96 45 42 20 41 37 35 33 50 10 0 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 1Q17 2Q17 3Q17 4Q17 1Q18 • QoQ (+2%) : Changes in Pickup , Passenger and Eco car are +10%, +7% and -16% • YoY (+21%) : Changes in Pickup, Passenger and Eco car are +28%, -2% and +52% 11 S mart People B usiness Trust G rowth Society

Unit: Thousand cars 120 350 Pickup Car Passenger Car Eco Car Commercial 100 300 15 55 17 48 16 16 56 46 15 250 80 20 58 64 21 38 15 21 22 52 55 17 200 58 60 197 18 188 181 177 150 154 40 70 66 100 61 60 58 49 20 50 0 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ (+8%) : Changes in Pickup, Passenger and Eco car are +6%, +16% and +6% • YoY (+4%) : Changes in Pickup , Passenger and Eco car are +4%, +25% and -14% • 12 S mart People B usiness Trust G rowth Society

Unit: Thousand Cars 350 11 12 7 15 22 300 9 6 7 10 8 37 7 30 5 18 6 39 8 Africa 41 24 29 25 31 29 27 26 25 30 250 5 28 21 9 24 22 17 North America 29 12 56 29 57 73 34 19 28 35 68 25 31 36 23 200 25 37 Central & South 39 36 32 36 37 36 40 39 America 38 31 39 31 150 36 Middle East 77 70 83 87 80 84 76 72 71 81 76 75 Europe 100 66 Asia 50 102 101 86 85 83 84 84 80 79 77 75 74 69 Australia 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ -Car export increased +2% mainly increased from export to Australia and Central & South • America YoY – Car export increased +4% mainly increased from export to Australia and improving • exported to the Middle East Top 3 exported region are Australia, Asia and Europe • 13 S mart People B usiness Trust G rowth Society

Pickup&PPV Passenger Eco CV Unit : Million cars 2017 1.13 0.45 0.36 2016 1.10 0.45 0.36 2015 1.12 0.42 0.34 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 3.0 CAGR =3% CAGR =9% 2.5 2.5 First car scheme 2.5 Thailand Floods & 2.1 2.2 2.2 Tsunami in Japan 1.9 1.9 1.9 1.99 2.0 1.0 Unit : Million cars 1.1 Global Financial Crisis 1.6 1.5 1.4 1.5 Asian Financial Crisis Export 1.1 1.3 1.2 1.1 1.2 Domestic 1.1 1.2 0.9 0.7 Total Production 1.0 0.9 0.8 1.0 0.7 0.5 0.4 0.8 0.3 0.5 1.4 0.6 1.3 0.6 0.2 0.0 0.3 0.4 0.5 0.2 0.5 0.4 0.9 0.8 0.8 0.2 0.8 0.8 0.7 0.0 0.7 0.2 0.7 0.6 0.6 0.6 0.5 0.1 0.5 0.2 0.5 0.4 0.3 0.3 0.1 0.3 0.2 0.1 - 14 S mart People B usiness Trust G rowth Society

Unit: in Thousand 25 Tractor Combine Total 20 20 18 18 17 17 17 16 16 6 15 3 3 15 2 15 2 14 15 5 2 5 2 12 4 3 3 3 10 15 15 15 15 14 13 12 12 11 11 11 11 5 9 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 QoQ: Increased +22% • YoY : Increased +24% • Source : Customer 16 S mart People B usiness Trust G rowth Society

CAGR = 8% Unit: in Thousand CAGR =21% 90 82 78 Tractor Combine Total 75 80 Flood 65 66 66 70 61 59 Drought 57 7 60 12 14 6 5 15 50 40 33 3 30 59 21 18 55 54 52 53 44 20 0 1 30 10 21 17 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 F2018 F2019 F2020 Source : SBG’s Forecast 17 S mart People B usiness Trust G rowth Society

Market Share Sales Contribution 1% Others* 15% 5% 12% Hub/Big Hub 5% 12% 17% Casting/Machining (Kubota) 15% Casting/Machining 24% (Automotive) 19% Disc Brake & 25% 25% Drum Brake 23% 25% 74% 28% Axle Shaft 71% 23% 0% 20% 40% 60% 80% 0% 5% 10% 15% 20% 25% 30% 1Q2018 1Q2017 Note : * Sales in Y2017 included sales of spring business while sale in Y2018 does not include. This is because spring business was sold to JV company in Dec Y2017. 19 S mart People B usiness Trust G rowth Society

3% Others* 7% 2% Ford & Mazda 1% 2% GM 1% 3% Nissan 3% 5% Honda 4% 7% Isuzu 7% 17% Kubota 16% 25% Toyota/Hino 28% 36% Mitsubishi 33% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1Q2018 1Q2017 Note : 1. 2017 Sale Data included sales from spring business, which was transferred at the end of 2017. 2. Other customers: Direct export and REM customer. 20 S mart People B usiness Trust G rowth Society

2017 1Q2017 4Q2017 1Q2018 Production line Capacity Utilization Capacity Utilization Capacity Utilization Capacity Utilization (%) (%) (%) pcs /month (%) pcs pcs pcs /month /month /month Axle Shaft 57% 60% 63% 365,500 365,500 55% 365,500 365,500 66% 64% 72% Machining 418,400 418,400 69% 418,400 437,000 (Auto) 66% 63% 68% Machining 229,000 229,000 62% 229,000 229,000 (non-Auto) General Forging 41% 47% 42% 280,500 280,500 40% 280,500 280,500 Total (SBG) 60% 59% 61% 65% 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 2. Total SBG’s Y2017 capacity and utilization did not include the spring business’s capacity. 21 S mart People B usiness Trust G rowth Society

Unit: Million Baht Gross Profit COGs Sales 2,500 2,309 2,255 2,194 2,105 2,093 2,030 1,991 1,970 1,936 2,000 1,500 1,870 1,981 1,890 1,779 1,760 1,703 1,629 1,690 1,651 1,000 500 385 362 327 326 333 328 304 280 285 0 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 23 S mart People B usiness Trust G rowth Society