Automotive Industry Overview Tractor Industry Overview Sale - PowerPoint PPT Presentation

S omboon A dvance T echnology PCL Opportunity Day 2017Q1 June 1, 2017 S mart People B usiness Trust G rowth Society 1

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

Company Overview As of May 23, 2017 1. Somboon Holding Co.,Ltd. 29.92% 2. Nortrust Nominees Ltd-Cl Ac. 6.31% 3. Thai NVDR 4.42% 4. AIA TH-EQ2-P 1.91% SAT 5. AIA TH-EQ3-P 1.69% Paid up 425 million Baht 6. Others 55.75% 99.99% 99.99% 99.99% 99.99% ICP SBM BSK SFT 21.25% 20.00% Yamada Somboon Tsuchiyoshi Somboon Coated 2.90% Sand Nisshinbo Somboon Automotive 1.80% Note: Somboon Holding & Kitaphanich Family Somboon Somic Manufacturing hold SAT approx. 46% S mart People B usiness Trust G rowth Society 3

Company Overview • SAT: Forging with Machining: Axle shaft products • BSK: Bending & Coiling: Spring products • ICP/SBM: Iron casting and machining products – Automotive-part products – Agricultural Machinery-part products • SFT: Forging with Machining: General products S mart People B usiness Trust G rowth Society 4

Automotive Parts S mart People B usiness Trust G rowth Society 5

Agricultural Machinery Parts S mart People B usiness Trust G rowth Society 6

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights Q&A S mart People B usiness Trust G rowth Society 7

Car Production 1Q2017 Unit: Thousand cars Source: Thai Automotive Industry Association • QoQ: Car production increased +4% as export increased +8%, but domestic declined -2% • YoY : Car production declined -4% as export decreased -8%, but domestic increased +3% S mart People B usiness Trust G rowth Society 8

Car Production: by type Unit: Thousand cars • QoQ (+4%) : Changes in Pick up, Passenger and Eco car are +4%, +17% and -8% • YoY (-4%): Changes in Pickup, Passenger and Eco car are -11%, +11% and +1% S mart People B usiness Trust G rowth Society 9

Car Production: Domestic Unit: Thousand cars • QoQ (-2%) : Changes in Pickup , Passenger and Eco car are -19%, +54% and -6% • YoY (+3%) : Changes in Pickup, Passenger and Eco car are -12%, +23% and +15% S mart People B usiness Trust G rowth Society 10

Car Production: Export Unit: Thousand cars • QoQ (+8%) : Changes in Pickup, Passenger and Eco car are +22%, -8% and -10% • YoY (-8%) : Changes in Pickup , Passenger and Eco car are -11%, -1% and -5% S mart People B usiness Trust G rowth Society 11

Export Destinations Unit: Thousand Cars • 1Q2017: Car export declined -1% (QoQ) and declined -8% (YoY) , mainly declined in export to the Middle East region • Top 3 exported region are Australia, Asia and Europe S mart People B usiness Trust G rowth Society 12

Thailand automotive outlook CAGR =3% CAGR =9% Thailand Floods & First car scheme Tsunami in Japan Global Financial Crisis Asian Financial Crisis Source: Thai Automotive Industry Association: Actual 1996-2016, SBG: Forecast 2017-2019 S mart People B usiness Trust G rowth Society 13

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights Q&A S mart People B usiness Trust G rowth Society 14

Tractor production by Quarter Unit: in Thousand Source : Customer • QoQ: Declined -14% • YoY : Increased +1% S mart People B usiness Trust G rowth Society 15

Tractor Production outlook Unit: in Thousand CAGR =21% CAGR = 7% Flood Drought Source : SBG ’ s Forecast S mart People B usiness Trust G rowth Society 16

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights Q&A S mart People B usiness Trust G rowth Society 17

Sale by products 1Q17 vs 1Q16 3% Others 2% 1Q2017 4% Hub 1Q2016 4% 4% Stabilizer Bar 6% 5% Leaf Spring 5% 5% Coil Spring 6% Casting/Machining 14% 12% (Kubota) Casting/Machining 18% 18% (Automotive) 23% Disc Brake & Drum Brake 21% 24% Axle Shaft 26% 0% 5% 10% 15% 20% 25% 30% Note : Including Sell&Buy back amount S mart People B usiness Trust G rowth Society 18

Sale by Customers 1Q17 vs 1Q16 6% Others 10% 1Q2017 1% Ford & Mazda 1Q2016 1% 2% GM 2% 3% Nissan 3% 4% Honda 3% 7% Isuzu 6% 16% Kubota 15% 28% Toyota/Hino 29% 33% Mitsubishi 31% 0% 5% 10% 15% 20% 25% 30% 35% Note : Including Sell&Buy back amount S mart People B usiness Trust G rowth Society 19

Market Share 1Q2017 SAT 71% SMT& SBM BSK Others 25% 26% 29% NHK& Aisin& Others Others 74% 75% Rear Axle Shaft Y16 = 76 % Coil Spring Y16 = 31 % Disc & Drum Y16= 25% SFT BSK 11% 20% Others NHK& 89% Others Stabilizer Bar Y16 = 27% HubY16=12% 80% Note : 1. Axle Shaft ’ s market share does not include axle shaft for big truck 2. Hub ’ s market share does not include hub for big truck S mart People B usiness Trust G rowth Society 20

Capacity & Utilization 2016 1Q2016 4Q2016 1Q2017 Production line Utilization Capacity Utilization Capacity Utilization Capacity Utilization (%) pcs /month (%) pcs /month (%) pcs /month (%) Axle Shaft 68% 68% 54% 300,000 73% 300,000 371,000 Spring group 31% 540,000 34% 540,000 29% 540,000 27% - Coil Spring - Stabilizer Bar 48% 160,000 56% 160,000 40% 160,000 44% - Leaf Spring (Tons) 53% 1,100 59% 1,100 59% 1,100 57% Machining (Auto) 51% 50% 55% 520,000 54% 520,000 520,000 74% 87% 58% Machining 244,000 73% 244,000 244,000 (non-Auto) General Forging 41% 40% 40% 280,000 48% 280,000 280,000 Total (SBG) 56% 60% 58% 50% Capacity is calculated based on 500 hours per month (20 hours x 25 days) except Axle Shaft & General Forging: 550 hours per month S mart People B usiness Trust G rowth Society 21

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights Q&A S mart People B usiness Trust G rowth Society 22

Sale & Gross Margin S mart People B usiness Trust G rowth Society 23

QoQ: 1Q17 vs 4Q16 Unit: million Baht • QoQ Comparison – Sale 0.6% – COGS 1.1% – GP (amount) 2.1% – %GP 0.4% • Sale decreased 12 MB or 0.6% due to a decrease in Tractor industry. • %GP increased 0.4% can be explained by a spare part provision in 4Q16 1 9 COGS Gross Margin Sales %GP S mart People B usiness Trust G rowth Society 24

YoY: 1Q17 vs 1Q16 • YoY Comparison Unit: million Baht – Sale 4.6 % – COGS 6.9 % – GP (amount) 9.5% – GP (%) 2.0% • Sale declined 4.6% mainly caused to a decline in automotive industry. • However, %GP increased 2.0%, driven by improvement in 1 production cost 9 COGS Gross Margin Sales %GP S mart People B usiness Trust G rowth Society 25

Net Profit S mart People B usiness Trust G rowth Society 26

QoQ: 1Q17 vs 4Q16 1 Note: 1 Others include gain/loss on fx , other incomes, and other expenses S mart People B usiness Trust G rowth Society 27

YoY: 1Q17 vs 1Q16 1 Note: 1 Others include gain/loss on fx , other incomes, and other expenses S mart People B usiness Trust G rowth Society 28

EBITDA S mart People B usiness Trust G rowth Society 29

Awards Quality Awards Recognitions & Awards   Gold Award for the Best Overall Supplier’s SET Awards 2016 - Outstanding Investor Relations Performance -2015 from Hino Awards   Bronze Award for the Best of Supplier’s Quality Sustainability Awards 2015-2016  Performance -2015 from Hino Best IR Awards 2015-2016 from IAA   Award of Regional Contribution 2013-2014 From Best Investor Relations Awards -2015 from SET  Toyota SET Awards of Honor with the excellence of  Gold Award 2013 form Hino outstanding Corporate Governance report for a  Quality Improvement Awards from Honda (Zero consecutive period from 2009 to 2014  Claim) Best Corporate Social Responsibility Awards –  Quality Excellence Awards from Thai Honda 2011-2014  Cost Reduction Awards from Toyota, Hino, etc. S mart People B usiness Trust G rowth Society 30

Company Overview Automotive Industry Overview Tractor Industry Overview Sale Performance Financial Highlights Q&A S mart People B usiness Trust G rowth Society 31

Q&A THANK YOU S mart People B usiness Trust G rowth Society 32