Analyst Meeting March 3 rd 2011 h 3 rd 2011 M KCE at a Glance KCE - PowerPoint PPT Presentation

Analyst Meeting March 3 rd 2011 h 3 rd 2011 M

KCE at a Glance KCE at a Glance • Ranked #3 in the World – Automotive PCB maker Leading supplier of Printed Circuit Boards ‐ Leading supplier of Printed Circuit Boards • Specialize in automotive PCB Largest State ‐ of the ‐ art mass production • facility in Southeast Asia Standard to complex PCB Technology capability • Average sales growth 20% Y ‐ o ‐ Y, over the past Average sales growth 20% Y o Y, over the past • 5 year(2003 ‐ 2007/8) Most diversed customer portfolio in PCB • industry – world’s top 20 Tier 1s

Printed Circuit Board • A device to wire electronic components Tailor ‐ made to fit customer’s design • • • Technology from single sided to laser drilled multilayer boards Technology from single ‐ sided to laser drilled multilayer boards

Local to Global Milestones

Company Structure

Manufacturing Facilities

Sales Office Location

Financial

Sales Revenue Growth UNIT : MILLION BAHT � KCET Phase I started 2001 Phase II started 2003 Phase III started 2005 � Ramped up to full capacity in 2007 (21 m Sq.ft./yr.) � Impact of economic crisis in 4Q08 and 1H09 � Full recovery in demand since March 2010 8,365 8,100 7,667 7,540 7,245 6,668 5,752 5,713 $242m. $270m. 4,969 (+21.6%) (+18%) $199m. $232m. $229m. 3,756 3,619 $166m. 3,502 (+20.0%) ( 0 0%) ( ‐ 4.1%) ( %) (+36.3%) ( 36.3%) $142m $142m. (+16 6%) (+16.6%) $119m. $168m. (+19.2%) (+41.3%) ( ‐ 27.5%) $95m. $79m. $84m. (+17.9%) ( ‐ 16.1%) (+6.3%) Y2000 Y2001 Y2002 Y2003 Y2004 Y2005 Y2006 Y2007 Y2008 Y2009 Y2010 Y2011F

Financial Summary 25% 20% 19% 20% 18% 15% 15% 14% 14% 15% 15% 13% 13% YR2007 11% 10% 10% YR2008 7% 7% 7% 7% 5% 4% YR2009 3% 3% 3% 5% 3% 2% 2% 2% 2% YR2010 0% 0% Gross Profit EBIT (Operating EBT Net Profit (Loss) EBITDA CAPITAL ‐ 1% ‐ 5% Profit) INVESTMENT ‐ 5% 5% ‐ 10% YR2007 YR2008 YR2009 YR2010 USD/THB 34.5197 33.3215 34.1898 31.5768 Sales revenue THB 8,365.4 7,667.3 5,752.4 7,245.2 USD 242.3 230.1 168.3 229.4 Gross Profit 1,471.2 1,065.2 1,079.2 1,430.3 EBIT (Operating Profit) 365.2 (28.1) 264.8 481.1 EBT 234.7 (76.8) 124.6 494.3 Net Profit (Loss) 257.4 (399.2) 171.6 534.6 EBITDA 912.9 519.0 853.8 1,079.0 CAPITAL INVESTMENT 877.5 975.2 96.0 216.0

Financial Summary Baht/Mil. Baht/Mil 9,000 8,365 7,667 8,000 7,245 7,000 5 752 5,752 6,000 5,000 4,000 3,000 1,471 2,000 1,430 1,079 1,065 535 1,000 257 171 0 0 YR2007 YR2008 YR2009 YR2010 ‐ 1,000 (399) Sales revenue Gross Profit Net Profit (Loss) YR2007 YR2008 YR2009 YR2010 1. SALES REVENUES (GROWTH Y ‐ o ‐ Y) 11% ‐ 8% ‐ 25% 26% 2. GROSS PROFIT (% to sale) 17.6% 13.9% 18.8% 19.7% 3. NET PROFIT (% to sale) 3.1% ‐ 5.2% 3.0% 7.4%

QTR Performance ‐ Group Baht/Mil. 2,500 8,000 7,245 1,972 7,000 1,894 1,894 1 858 1,858 2,000 2 000 1,730 6,000 1,628 1,522 1,500 5,000 4 000 4,000 1,000 3,000 453 426 405 362 500 341 2,000 1,430 209 181 181 162 162 161 161 165 165 124 124 27 1,000 535 ‐ 20% 7.4% ‐ Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Y2010 TOTAL SALES GROSS PROFIT TOTAL SALES GROSS PROFIT NET PROFIT Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 1. SALES REVENUES (GROWTH Q ‐ o ‐ Q) 26% 6% 7% 2% 4% ‐ 23% 2. GROSS PROFIT (% to sale) 2 GROSS PROFIT (% t l ) 20.9% 20 9% 24 7% 24.7% 24 4% 24.4% 21.4% 21 4% 18 4% 18.4% 13 8% 13.8% 3. NET PROFIT (% to sale) 7.6% 9.4% 9.7% 8.5% 8.4% 1.8% UTILIZATION % 91% 95% 87% 86% 87% 68% SCRAP 5.0% 6.0% 6.0% 5.0% 5.7% 5.9%

SG&A Expenses Baht/Mil. 12% to Sales 1000 887.84 13% to Sales 900 In 2009 ,KCEI posted 758.20 758 20 800 depreciation of 51 mil to SG&A 700 during plant shutdown. In Depre ‐ KCEI Shutdown 2010, KCEI reopened and 600 Depre.&Amortization Depre.&Amortization posted a full year expense of 500 99 mil to SG&A. Other increase Fixed Expenses 400 was from the newly opened 300 Variable Selling sales office in Japan. l ffi i J 200 expense Staff Cost 100 0 Y2009 Y2010 Y2009 Y2010 % YoY Staff Cost 185.65 230.52 24% Variable Selling expense V i bl S lli 378 42 378.42 462.47 462 47 22% 22% Fixed Expenses 118.50 165.13 39% Depre.&Amortization 24.60 29.72 21% Depre ‐ KCEI Shutdown Depre ‐ KCEI Shutdown 51 04 51.04 0 00 0.00 ‐ 100% ‐ 100%

Balance Sheet Structure KCE Group 2007 ‐ 2010 Figures in million Baht 2007 2007 2008 2008 2009 2010 2009 2010 Current 4,009 3,041 Current assets 2,942 3,189 Liabilities 6,280 4,872 4,863 6,323 Non-current liabilities 1,245 6,343 1,457 Non-current 887 5,867 , 5,866 , 5 563 5,563 752 752 assets t Equity 2,710 2,645 2,479 2,310 Total net assets 9,877 9,385 8,808 8,753 Total net equity 9,877 9,385 8,808 8,753 and liabilities

Liability Structure 100% 90% 80% 70% S/T Loan 60% 50% 50% 40% 30% 20% 10% 0% 2008 2009 2010 Operating lease 2.72% 3.84% 2.54% Long ‐ term debt 7.90% 19.18% 17.84% Other short ‐ term liabilities 7.47% 4.40% 4.84% 6.60% 7.20% 8.24% Current portion of long ‐ term debt 12.25% 13.81% 14.65% Account payable 63.05% 51.58% 51.88% Short ‐ term loans

Capital Structure Baht/Mil. 5679 6000 3 5207 5177 4918 D/E 5000 2.5 2.46 2.09 1.86 4000 2 1.92 2710 2645 3000 1.5 2479 2310 2000 1 1000 0.5 192 159 145 118 0 0 0 0 Y2007 Y2008 Y2009 Y2010 Cash and Current Investment Interest Bearing Debt Equity Net Interest Bearing Debt to Equity(time) Key Ratios Y2007 Y2008 Y2009 Y2010 Net interest bearing debt to equity(times) 1.85 2.41 2.02 1.80 Total debt to equity(times) Total debt to equity(times) 2 64 2.64 3.06 3 06 2 55 2.55 2 31 2.31 Net interest bearing debt to EBITDA(times) 5.49 10.72 5.88 4.42 Interest coverage(times) 1.24 ‐ 0.1 0.98 2.41

Debt Analysis Finance Cost Debt Analysis Baht/Mil Baht/Mil. 350 294 285 300 271 ST LOANS 250 65% 65% 200 200 150 100 100 50 LT LOANS CAPITAL 0 30% LEASE Y2007 Y2008 Y2009 Y2010 5% 5% Weighted Avg Interest Rate Weighted Avg Interest Rate 5.7% 5.1% 4.5% 3.5% 5.7% 5.1% 4.5% 3.5%

Operation and Sales

Guidance FY 2011 • Revenue: ~US$270mil (+18%) • Gross Margin: ~22% ‐ 23% (2010 ~20%) • Reduce D/E • Reduce D/E • Net D/E: <1.4 times • Total D/E: <1.8 times • CAPEX: ~US$5mil • Reduce Copper price risk and Exchange rate risk using options Exchange rate risk using options • Increase complex PCBs

QTR Performance ‐ KCE Electronics Baht/Mil Baht/Mil. 3,500 900 838 2,898 800 715 716 715 3,000 645 700 629 2,500 2,500 600 2,000 500 400 1,500 300 300 1 000 1,000 192 670 183 175 171 200 141 132 111 113 305 500 75 66 51 48 100 23% ‐ ‐ 10.5% Y2010 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTAL SALES GROSS PROFIT NET PROFIT TOTAL SALES GROSS PROFIT NET PROFIT Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 1. SALES REVENUES *1 (GROWTH Q ‐ o ‐ Q) 27% 11% 0% 0% 17% ‐ 25% 2 GROSS PROFIT (% to sale) 2. GROSS PROFIT (% to sale) 21 9% 21.9% 25 7% 25.7% 24 4% 24.4% 23 9% 23.9% 22 9% 22.9% 21.0% 21 0% 3. NET PROFIT *2 (% to sale) 7.4% 15.5% 10.5% 7.1% 13.4% 10.5% UTILIZATION % 95% 101% 91% 89% 99% 82% SCRAP RATE % SCRAP RATE % 4 2% 4.2% 3 9% 3.9% 4 8% 4.8% 5 1% 5.1% 4 6% 4.6% 5 0% 5.0% Remark : *1 Excl Interco.Sales *2 Excl Dividend , Impairment

QTR Performance ‐ KCE International Baht/Mil. / 350 1,200 317 1,071 299 300 1,000 235 250 219 800 200 600 150 400 100 131 44 44 200 42 36 33 50 43 20 17 13 10 4 12% 12% ‐ ‐ (19) (7) (31) (7) Y2010 4.0% Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 ‐ 50 TOTAL SALES GROSS PROFIT NET PROFIT TOTAL SALES GROSS PROFIT NET PROFIT Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 1. SALES REVENUES(GROWTH Q ‐ o ‐ Q) 454% 35% ‐ 6% ‐ 27% 2. GROSS PROFIT (% to sale) 18.7% 13.8% 11.0% 4.6% 3. NET PROFIT *2(% to sale) 7.2% 6.4% 4.3% ‐ 3.3% UTILIZATION % 0% 0% 62% 87% 80% 63% SCRAP RATE % 2.7% 3.0% 2.9% 3.3% Remark : *2 Excl Dividend

QTR Performance ‐ KCE Technology Baht/Mil. 1,200 3,500 3,122 992 953 3,000 1,000 879 820 820 794 2,500 800 629 2,000 600 1,500 400 1,000 217 205 185 458 137 200 500 106 93 183 79 81 73 46 29 ‐ 15% ‐ 5.9% (17) Y2010 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 ‐ 200 TOTAL SALES GROSS PROFIT NET PROFIT TOTAL SALES GROSS PROFIT NET PROFIT Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 1. SALES REVENUES *1 (GROWTH Q ‐ o ‐ Q) 28% 4% ‐ 11% ‐ 7% ‐ 3% ‐ 21% 2. GROSS PROFIT (% to sale) 2 GROSS PROFIT (% to sale) 21.5% 21 5% 21 9% 21.9% 21 1% 21.1% 16 8% 16.8% 13 4% 13.4% 4 6% 4.6% 3. NET PROFIT (% to sale) 8.3% 9.4% 9.2% 8.9% 5.8% ‐ 2.7% UTILIZATION % 89% 91% 82% 83% 82% 62% SCRAP RATE % SCRAP RATE % 5.6% 5 6% 7.4% 7 4% 7 8% 7.8% 6 7% 6.7% 7 7% 7.7% 7 9% 7.9% *1 Excl Intercom ,Sales

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Product Mix (Value) (Value)