Halcyon Technology PLC. HTECH Opportunity Day Q218 19/09/18 2 - PowerPoint PPT Presentation

Halcyon Technology PLC. “HTECH” Opportunity Day Q2’18 19/09/18

2 Halcyon Timeline Year Milestones 1993 Halcyon Metal Co., Ltd. first established for the manufacturing of jigs & fixtures and other metal fabricated products 2002 Halcyon Technology Co., Ltd. established for new segment of PCD cutting tools at current location 2005 Launched PCD Hollow Tools that changed the HDD world 2009 IPO under symbol “HTECH” 2010 Started expanding overseas – 2 nd factory in the Philippines 2017 New factory building at HT and new factory in Hanoi, Vietnam; Consolidated revenue reached 1 billion THB

3 HT New Factory Building 6 years BOI tax exemption • Phase One fully operating since Dec’17 • with ~50% free space in factory Q3’18: added 5 machines to free up • bottleneck secondary process Q1- 2’19: plan to add 6 more machines • for carbide process

4 Halcyon in ASEAN Market Factory Halcyon Technology Halcyon Technology Public Co., Ltd. (Philippines) Inc. (HP) Distributor (HTECH) since 2010 since 2002 HTECH holds 65% Halcyon Metal Co., Ltd. ATEK Precision Tools (HM) (ATEK) since 1993 since 2011 HTECH holds 100% HP holds 100% FDM Technology Co., Ltd. Halcyon Technology (FDM) (M) Sdn. Bhd. (HY) since 2002 since 2013 HTECH holds 60% (2012) HTECH holds 60% Halcyon Tools and Halcyon Technology Engineering Co., td. (Heng) (Singapore) Pte. Ltd. (HS) since 2016 since 2013 FDM holds 90% HTECH holds 70% Halcyon Technology PT HTECH Tools Vietnam Co., Ltd. (HV) Indonesia (HI) since 2014 since 2012 HTECH holds 85% FDM holds 60%

Halcyon Products

6 Cutting Tool Types PCD Carbide (Polycrystalline Diamond) Applications: Applications: General purpose cutting cutting non-ferrous materials Materials: Materials: Steel, aluminum, plastic, aluminum, brass, copper, abrasive wood, etc. materials, wood, acrylic, etc. Industry: Industry: Used in most industries HDD, Aerospace, Automotive, medical, jewelry, etc. MCD PCBN (Polycrystalline-Cubic Boron Nitride) (Monocrystalline Diamond) Applications: Applications: cutting super-hard materials super-finishing and critical applications Materials: cast iron, hardened mat. Materials: (>50 HRc) , sintered mat. brass, copper, aluminum, acrylic Industry: Industry: Automotive, machinery parts Lens, Jewelry, Watch, Automotive

7 Tools for HDD 1 base plate uses up to 10-15 cutting tools PCD Monoblock PCD Form Tool PCD Drill PCD Hollow Mill PCD Hollow Pin PCD Endmill

8 Tools for Automotive

9 Halcyon Customers

Q2 ’ 18 Performance & Financial Highlights Consolidated HTECH Group Performance

11 * Net Profit of HTECH Consolidated Performance (Q) shareholders only ** Conso. Total Revenue 300 279 270 250 Total Revenue (THB million) 200 150 40.4% 38.5% 100 16.0% 15.6% 50 - Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 1H2018 Revenue = 826 mill. (+14%) Revenue = 1,004 mill. (+22%) Revenue = 548 mill. 2016 2017 GPM = 39.0% GPM = 40.7% GPM = 39.5% NPM* = 14.3% NPM* = 14.7% NPM* = 15.8% HT HM FDM HENG HP HS HYK HI HV Gross Profit Net Profit*

12 Revenue Breakdown (related eliminated) 2017 2018 (2Q) HV 2% HV 2% HI 5% HI 5% Breakdown by Country: HT HY 8% HY 9% HM Thailand HS 7% FDM HS 9% HT 35% HT 37% HENG HP Philippines HP 14% HS Singapore HP 16% HY Malaysia HI Indonesia HM 6% HM 6% FDM 16% FDM 14% HV Vietnam HENG 4% HENG 5%

13 HT Performance (Q) 140 125 119 120 Sales (THB Million) 100 80 60 38.5% 38.7% 40 29.8% 20 20.3% 19.4% 0 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 1H2018 Sales = 353 mill. (+8%) Sales = 464 mill. (+32%) Sales = 244 mill. 2016 2017 GPM = 37.2% GPM = 39.49% GPM = 38.5% NPM = 22.7% NPM = 24.7% NPM = 25.1% Sales Gross Profit Net Profit Dividend

Financial Highlights Consolidated as of 31/ 6 /18

15 Capital Structure 1,800 1,657 1,595 1,600 1,400 1,277 1,172 1,104 1,200 THB million 1,023 1,023 966 1,000 764 800 633 492 484 600 400 258 259 253 200 - 2014 2015 2016 2017 Q2'18 Assets Liabilities Shareholder's Equity

16 Debt to Equity Ratio 400 0.8 350 0.7 300 0.6 0.50 D/E Ratio (times) 0.47 250 0.5 THB Million 0.37 200 0.4 0.34 349 0.28 150 0.3 294 100 0.2 143 141 50 0.1 95 0 0 2014 2015 2016 2017 Q2'18 Interest-bearing Debt D/E Ratio

17 Current Ratio 2.87 3 2.25 2.5 2.12 1.88 1.73 2 Times 1.5 1 0.5 0 2014 2015 2016 2017 Q2'18

18 Profitability 450 45% 41% 39% 39% 400 40% 409 35% 35% 350 35% 300 30% 322 THB million % Margin 250 25% 249 242 200 20% 213 16% 15% 14% 150 15% 148 10% 9% 100 10% 118 87 50 5% 68 63 0 0% 2014 2015 2016 2017 Q2'18 Gross Profit Net Profit (HTECH) Gross Margin Net Margin (HTECH)

Target Performance 2018 Consolidated HTECH Group Performance

20 * Net Profit of HTECH Target Performance 2018 shareholders only ** Conso. Total Revenue 1,200 +10% 1,004 1,000 Target Q3-4 826 800 724 701 600 40.7% 39.0% Actual Q1-2 400 14.7% 200 14.3% - 2014 2015 2016 2017 2018 Target HT HM FDM Heng HP HS HY HI HV Gross Profit Net Profit*

Thank You  Q&A

Contact Us Tel: +66(0)2 906 3242-50 / Fax: +66(0)2 906 3251 e-mail: info@halcyon.co.th HALCYON HEAD OFFICE 41 Moo 14 Bangchan Industrial Est. Soi 6, Serithai 58, Minburi, Bangkok 10510 GPS Coordinates: 13.799211,100.707114 www.halcyon.co.th