AAPICO HITECH PLC [AH] Agenda 1. Company Profile 2. Industry - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH]

Agenda 1. Company Profile 2. Industry Overview 3. Financial Performance 4. Strategy and Direction 2

Company Profile

AAPICO HITECH PLC [AH] AAPICO PICO HITECH ECH PUBLIC IC COMPANY ANY LIMITED MITED • Established in 1996 and listed on SET in 2002. • Main businesses : OEM Auto Parts, Jigs and Dies, Car Dealerships and Car Navigation. • Main locations : Thailand, Malaysia and China. Industry/Sector : Auto Current price : Baht 13.50 • Comprising of 38 companies (28 subsidiaries and 10 52 weeks range : Baht 9.15 – 15.20 associates). Market Cap : Baht 4,355 million P/E (YTD) : 8.93* • Registered and paid-up capital of Baht 322.58 million, P/BV : 0.72* comprised of 322,583,844 ordinary shares at par value of Dividend yield (Half- : 2.26%* Baht 1 each. Year) * Data as of November 21, 2016 4

AH Shareholding Structure AH AH’s main shareholders are Yeap Swee Chuan Sojitz 1.4% Corp. and family holding 39.85% of total outstanding 15.8% shares and Sojitz Corporation holding Yeap Family 15.76% of total outstanding shares. 39.8% Free- float 43.0% Thai institu- tions NVDR 11.6% 7.6% Thai Foreign 77.6% institu- tions Foreign 3.1% 0.2% * Data as of August 30, 2016 5

AAPICO’s Vision Where do we want to go? How do we want people to remember us? MANUFACTURING LEAN, GREEN, N, HAPPY, DIGIT ITAL AL RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING Happy y Custome mers Happy y Emplo loyees es Happy y Share reholder lders Happy y Publi lic • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company and • E : Engineering Country • M : Management (Focus • Loyalty and Honesty • Mutual Respect Digital) 6

Business Segment • Stamping Parts • Assemblies • Jigs Forging • Dies Machining AAPICO GROUP Navigation Data Analytics Plastic Telematics Car Dealerships 7

Country of Operations THAILAND HAILAND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn Productio ction: Stamping and Assemblies, Forging & Machining, Thailand Malaysia China Plastic, Jigs & Dies, Dealerships, and Car Navigation 2016Q3 3% 2016Q3 2015 22% 4% Malaysia 2015 2014 Kajang & Petaling Jaya 23% 5% Car dealer lers: Honda car 2014 26% 2014 69% CHINA A 2015 Kunshan 73% 2016Q3 Productio ction: 75% Connecting rods and Copper Forging 8

Locations in Thailand Amat ata a Nako korn rn Indu dustria rial l Estate Product oducts : Chassis Frames, Forged Hitec ech Indu dustr trial ial Estat ate and machined parts. Ayutthaya Prod oduct ucts : Stamping Dies, Jigs, Stamping parts, and Car navigation Bangkok Chonburi Samutprakan Rayong Amat ata a City y Indus ustr trial ial Estat ate Prod oduct ucts : Stamping parts and Mitsubishi Dealers : Plastic parts Ramindra Navanakorn Bangp gplee lee Indus ustr tria ial l Estate Ford Dealers : Product oducts : Plastic parts Ladprao Samutprakarn 9

Our OEM Customers Top OEM Customer Profile Others- Parts 23% Others- Isuzu Parts; 25% 41% Toyota; 3% Isuzu; 43% SGMW; 3% Toyota; 4% GKN; 4% GKN 3% AAT AAM; 4% Nissan; 7% 15% Nissan 7% AAT* 18% *Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 10

Our Partners Joint Ventures Strategic Shareholder Technical Partners 11

Awards & Achievements TPS Award The 2 nd Runner Up of Advance Group GM Quality Excellence Award AAPICO Hitech PLC AAPICO Hitech PLC 12

Thailand Automotive Industry Update

Thailand Automotive Industry Thailand Automotive Industry Overview 2001-2016 Production Volume Forecast Domestic Sales Export Volume Unit: Millions First car 3.0 campaign +3.1% 2.5 2.45 2.46 Tsunami & 2.0 Global Flood 0.50 Financial 0.48 1.88 Crisis 1.5 1.65 1.48 1.46 1.43 1.39 1.29 1.19 1.0 1.13 1.00 0.93 0.75 0.5 0.58 0.46 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: The Federation of Thai Industry 14

Q3 Thailand Production Volume Q3 Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Production Volume 496,508 486,506 483,356 -2.6% -0.6% 1-Ton Pick-up/PPV Passenger car Others Unit: Million 1.0 -2.6% yoy 0.8 -0.6% qoq 0.3 0.6 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.4 0.2 0.2 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Source: The Federation of Thai Industry (Automotive Industry) 15

Q3 Total Industry Volume Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Total Industry Volume 184,723 187,070 187,895 +1.7% +0.4% 1-Ton Pick-up/PPV Passenger car Others Unit: Million 0.5 +1.7% yoy 0.4 0.20 +0.4% 0.3 qoq 0.15 0.13 0.15 0.2 0.08 0.10 0.09 0.09 0.09 0.18 0.08 0.07 0.07 0.07 0.06 0.15 0.07 0.14 0.13 0.1 0.12 0.11 0.11 0.10 0.10 0.10 0.10 0.09 0.09 0.09 0.08 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Source: The Federation of Thai Industry (Automotive Industry) 16

Q3 Export Volume Q3 2015 Q2 2016 Q3 2016 YOY YOY QOQ QOQ Export Volume 329,293 287,063 305,903 -7.1% +6.6% -7.1% yoy Export Units Unit: Million 0.5 +6.6% qoq 0.4 0.33 0.33 0.3 0.31 0.31 0.31 0.30 0.29 0.29 0.29 0.29 0.28 0.28 0.27 0.25 0.25 0.2 0.1 0.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Source: The Federation of Thai Industry (Automotive Industry) 17

Financial Performance For 3 rd quarter of 2016

Financial Highlights Q3 Q3 Q3 Q3 2016 Results In Million Baht 2014 2015 2016 Revenues 4,039 3,672 3,619 • Revenues es were 1.4% lower than Q3 2015, due to Growth% +2.8% -9.1% -1.4% weak economy and impact of steel price decrease, Gross Profit 170 215 183 partly offset by increased car dealer sales. GM% 4.4% 6.0% 5.2% • Gross ss profit it margi gin was at 5.2% of sales, impacted SG&A 177 201 189 by lower sales and because of product mix. Associate 22 35 75 • SG&A G&A and Interes erest and Tax expense enses s decreased driven by cost reduction and decreased loan level. Int. & Tax 59 48 41 • Net profit it margi gin improved despite lower sales, Net Profit 92 112 132 thanks to lower costs and increased profit from NP% 2.3% 3.1% 3.7% associates, mainly Hyundai, QI, and lower losses in ROE (%) 6.6% 4.9% 8.4% some JVs. ROA (%) 2.9% 2.4% 4.4% D/E (x) 0.67 0.56 0.46

AAPICO Group : Total Revenues Total Revenues by quarter Total Revenues (YTD) Unit: in Million Baht Auto parts Car dealers Auto parts Car dealers 4,500 4,039 3,990 3,910 9M2016, 3,758 3,672 3,681 3,619 3,597 3,574 4,000 35% 3,500 9M2015, 3,000 33% 2,500 9M2015, 2,000 67% 1,500 9M2016, 1,000 65% 500 - 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16  Q3’16 vs Q3’15 : Revenue was 1.4% lower than last year,  9M’16 vs 9M’15 : Revenue increased 1.9% yoy, driven by mainly due to weak economy and decreased steel price, higher sales in car dealership. Revenue of auto part was partly offset by increased car dealer sales. slightly below last year, mainly due to weak demand in China.  Q3’16 vs Q2’16: Revenue was slightly below last quarter, mainly due to impact of steel price decrease. 20

Auto Parts : Sales & EBIT Sales by quarter YTD Sales & EBIT Unit: in Million Baht Unit: in Million Baht 4,000 -0.8% 7,101 7,046 3,000 2,623 2,487 2,165 2,417 2,302 2,382 2,231 2,336 2,086 2,265 2,158 2,000 1,000 328 220 - 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 9M15 9M16  9M16 vs. 9M15: 9M16 CN  Sales es were 0.8% lower than last year, mainly due to weak demand in China. 5% 9M15 Thailand sales grew 1% yoy, in line with industry growth. 9M15 6% 9M16 94% TH  EBIT improved significantly yoy despite lower sales, driven by cost reduction 95% and improved efficiency. EBIT T margin in improved from 3.1% to 4.7% of sales. 21

Car Dealers : Sales & EBIT Sales by quarter YTD Sales & EBIT Unit: in Million Baht Unit: in Million Baht +8.6% 2,000 3,874 1,800 1,636 3,566 1,548 1,416 1,296 1,239 1,149 1,178 1,600 1,195 1,323 1,356 1,400 1,238 1,200 1,000 800 600 400 200 81 69 - 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 9M15 9M16  9M16 vs 9M15: 9M16  Sales es grew 8.6% yoy, driven by higher car sales volume in both Thailand and 9M15 TH 9M16 30% Malaysia. This growth was partly negated by the impact of weaker Malaysian 37% MY 9M15 Ringgit currency translation. 63% 70%  EBIT increased yoy, driven mainly by higher sales. EBIT T margin in improved from 1.9% to 2.1% of sales. 22