AAPICO HITECH PLC [AH] Presentation for 3Q 2019 financial - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH] Presentation for 3Q 2019 financial statements

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. ir@aapico.com | +66-(0)-2613-1504 2 AAPICO HITECH PUBLIC COMPANY LIMITED

Agenda 1. Company Information 2. Automotive Industry Updates 3. Financial Performance 4. Strategy & Direction 3 AAPICO HITECH PUBLIC COMPANY LIMITED

AAPICO Hitech PLC

Company Overview AAPICO HITECH PUBLIC COMPANY LIMITED A leading OEM automotive parts manufacturer in • Thailand with global operations. Core businesses: OEM Auto Parts, Jigs and Dies, Car • Dealerships and IoT Connectivity & Mobility. Index : SET / THSI Registered capital of Baht 322.65 million and paid- • Industry/Sector : Auto up capital of Baht 322.58 million, comprising of Current price : Baht 14.50* 322,583,844 ordinary shares at par value of Baht 1 Market Cap : Baht 4,677 million* : 4.90* P/E (YTD) each. P/BV : 0.59* Dividend yield : 6.50% Major shareholders are Yeap Swee Chuan and • TRIS / CG Rating : BBB+ / Family holding 39.32% of total capital. * Data as of November 14, 2019 ** Dividend yield is calculated based on current share price 5 AAPICO HITECH PUBLIC COMPANY LIMITED

AAPICO’s Vision Where do we want to go? How do we want people to remember us? TO BECOME A MANUFACTURING LEAN, GREEN, HAPPY, DIGITAL RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING AAPICO Key Fundamental Values Happy Shareholders Happy Customers Happy Employees Happy Public • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company • E : Engineering and Country • M : Management • Loyalty and Honesty • Mutual Respect (Focus Digital) 6 AAPICO HITECH PUBLIC COMPANY LIMITED

Core Pillars of AAPICO Business Auto Part Car IoT Manufacture Dealerships Connectivity & Mobility 7 AAPICO HITECH PUBLIC COMPANY LIMITED

Business Segments Car Dealerships Manufacture of Auto Parts IoT Connectivity (Thailand) (Thailand & China) (Thailand & Malaysia) Stamping & Thailand Assemblies Forging & Machining Malaysia Plastic Jigs and Dies ~69% of Sale ~30% of Sale <1% of Sale 8 AAPICO HITECH PUBLIC COMPANY LIMITED

Countries of Operations THAILAND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn Amata City Industrial Estate CHINA Chonburi Kunshan Hitech Industrial Estate Production: Stamping & Chassis Frames Production: Stamping parts Production: Connecting rods and Forging & Machining Parts and Stamping Dies & Jigs and Copper Forging China 3% Malaysia Bangpli Industrial Estate 20% Production: Plastic Parts 9M 2019 Amata City Industrial Estate Rayong Thailand Production: Stamping Parts 77% Plastic Washers & Fuel Tanks Mitsubishi Dealers MALAYSIA Navanakorn & Ramindra Ford Dealers Car dealers: Honda car Samutprakarn & Ladprao Proton 9 AAPICO HITECH PUBLIC COMPANY LIMITED

Major OEM Customers Top OEM Customer Profile Others- Parts Isuzu 25% 30% 9M 2019 TOYOTA 2% DANA 3% FORD Vinfast 3% 18% AAM AAT** 4% Nissan 10% 5% **Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda. 10

Our Partners Joint Venture Strategic Partner Technical Partner 11 AAPICO HITECH PUBLIC COMPANY LIMITED

Automotive Industry Updates

Thailand Car Production Volume Total Car Production by Quarter Jan-Sep Car Production Pick-Up/PPV Passenger Others Domestic Sales Export Sales -2.0% -7.5% yoy ‘000 Units yoy 700 1,604 1,573 564 561 548 600 517 504 507 500 656 624 221 223 224 400 212 202 200 300 200 918 918 332 328 313 295 294 296 100 - 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Source: The Federation of Thai Industry (Automotive Industry) 13 AAPICO HITECH PUBLIC COMPANY LIMITED

Thailand Export Volume Export Volume by Quarter Jan-Sep Export Volume Export Volume -4.4% yoy -12.0% ‘000 Units yoy 859 400 821 300 297 282 300 267 260 261 200 100 - 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Source: The Federation of Thai Industry (Automotive Industry) 14 AAPICO HITECH PUBLIC COMPANY LIMITED

Thailand Domestic Car Sales Volume Domestic Car Sales by Quarter Jan-Sep Domestic Sales 1-Ton Pick-Up/PPV Passenger cars Other vehicles +2.0% yoy -7.5% ‘000 Units yoy 762 747 400 87 95 295 264 300 260 257 252 35 238 306 291 28 31 34 33 28 109 200 103 104 101 100 99 100 370 361 151 133 126 123 119 111 - 9M18 9M19 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Source: The Federation of Thai Industry (Automotive Industry) 15 AAPICO HITECH PUBLIC COMPANY LIMITED

Thailand Total Industry Volume Jan-Sep Source: Toyota 16

Malaysia Total Industry Volume Jan-Sep Source: MAA 17

Financial Performance 3 Q 2019