Opportunity day March 11 th 2011 KCE at a Glance Ranked #3 in the - PowerPoint PPT Presentation

Opportunity day March 11 th 2011

KCE at a Glance • Ranked #3 in the World – Automotive PCB maker • Leading supplier of Printed Circuit Boards - specialize in auto 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 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

Local to Global Milestones

Company Structure

Manufacturing Facilities

Sales Office Location

Financial

Sales Revenue Growth 8,365 8,100 7,667 7,540 7,245 6,668 5,752 5,713 $242m. $270m. 4,969 (+21.6%) $199m. $232m. $229m. 3,756 3,619 $166m. 3,502 (+20.0%) (-4.1%) $142m. (+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 KCET KCET KCET GROUP Global GROUP PH- I PH - II PH - III Full cap. Crisis Full cap. 1.75m.ft 2 4Q08 – 1H09 2.03m.ft 2

Financial highlights Profitability ratios improved. Y2007 Y2008 Y2009 Y2010 Bht/US 34.52 33.32 34.19 31.58 SALES REVENUE (MTHB) 8,365 7,667 5,752 7,245 (MUSD) 242 232 168 229 Gross profit 1,471 1,065 1,079 1,430 EBIT (Operating profit) 365 (28) 265 481 Net profit (loss) 257 (399) 171 535 EBITDA 913 519 854 1,079

Financial Summary In 2010, KCE achieved its best results on record. Net profit rose to Bt 535m, an increase of 212% Baht/Mil. 9,000 8,365 7,667 8,000 7,245 7,000 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 YR2007 YR2008 YR2009 YR2010 -1,000 (399) Sales revenue Gross Profit Net Profit (Loss) YR2007 YR2008 YR2009 YR2010 SALES REVENUE (GROWTH Y-o-Y) Bt term 11% -8% -25% 26% GROSS PROFIT (% to sale) 17.6% 13.9% 18.8% 19.7% 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 1,858 2,000 1,730 1,628 6,000 $62 1,522 $57 $59 1,500 5,000 $52 $48 $51 4,000 1,000 3,000 453 426 405 362 500 341 2,000 1,430 209 181 162 161 165 124 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 SALES REVENUES (GROWTH Q-o-Q) 26% 6% 7% 2% 4% -23% GROSS PROFIT (% to sale) 20.9% 24.7% 24.4% 21.4% 18.4% 13.8% NET PROFIT (% to sale) 7.6% 9.4% 9.7% 8.5% 8.4% 1.8% UTILIZATION % 91% 95% 87% 86% 87% 68% SCRAP rate % 5.0% 6.0% 6.0% 5.0% 5.7% 5.9%

SG&A Expenses Baht/Mil. 12% to Sales 1000 888m 13% to Sales 900 758m 800  In 2009, KCEI posted machine depreciation of 51m to SG&A during 700 Depre - KCEI Shutdown plant shutdown. 600 Depre.&Amortization  In 2010, KCEI reopened and 500 Fixed Expenses incurred a full year SG&A expense of 400 99m. Variable Selling expense  Other increase was from the new 300 Staff Cost opening of Japan Sales office. 200 100 0 Y2009 Y2010 Y2009 Y2010 % YoY Staff costs 185.65 230.52 24% Variable selling expenses 378.42 462.47 22% Fixed expenses 118.50 165.13 39% Deprec. & Amortization 24.60 29.72 21% Deprec - KCEI Shutdown 51.04 0.00 -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 assets 2,942 3,189 Current 6,280 Liabilities 4,872 4,863 6,323 Non-current 1,245 6,343 1,457 Non-current 887 5,867 5,866 5,563 liabilities 752 assets 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 7,074 6,329 6,108 S/T Loan L/T Loan UNIT : MTHB Short Term Loans 4,461 3,265 3,169 Current portion of L-T Debts 467 455 503 A/P & Other Liabilities 1,395 1,152 1,191 L-T Loans/ Fin.Lease 752 1,457 1,245

Capital Structure Baht/Mil. 5679 6000 3 5207 5177 NET DEBT 4918 5000 2.5 2.41 4000 2 1.80 2.02 1.85 2710 2645 3000 1.5 2479 2310 2000 1 1000 0.5 192 159 145 118 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) 2.64 3.06 2.55 2.31 Interest coverage (times) 1.24 -0.1 0.98 2.41

Debt Analysis Interest bearing debt Finance Cost Baht/Mil. 350 294 285 300 271 ST LOANS 250 65% 3,169m 200 200 150 1,488m 100 50 LT LOANS CAPITAL 0 30% LEASE 261m Y2007 Y2008 Y2009 Y2010 5% Weighted avg Interest rate 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 • 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 • Increase complex PCBs

QTR Performance - KCE Electronics Baht/Mil. 3,500 900 838 2,898 800 3,000 715 716 715 645 700 629 2,500 600 2,000 500 400 1,500 300 1,000 192 670 183 175 171 200 141 132 111 113 305 500 75 66 48 51 100 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) 21.9% 25.7% 24.4% 23.9% 22.9% 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 % 4.2% 3.9% 4.8% 5.1% 4.6% 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 % - - (7) (31) (19) (7) 4.0% Y2010 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 1,000 879 820 794 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) 21.5% 21.9% 21.1% 16.8% 13.4% 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 % 5.6% 7.4% 7.8% 6.7% 7.7% 7.9% *1 Excl Intercom ,Sales

Scrap

Product Mix (Value)

SWOT Analysis WEAKNESS STRENGTH - 25 years of experience in PCB Expand KCE presence in - Higher operating costs than some - Strong worldwide sales network countries like China, India and Vietnam the automotive industry - Own laminate supply - Not fully vertically integrated while moving more into - More than 20 years in auto PCB - Constantly appreciating currency - Ranked 3 rd in the world for auto PCB high-technology PCB for - High debt to equity - SAP on all modules - High turnover rate due to high labor local and overseas - Only HDI plant in Thailand demand consumer market - Own direct laser technology THREAT OPPORTUNITY - Many auto PCB makers have merged or gone went out of - Auto market is the first to slow down and business during the crisis, while auto PCB demand is expected the last to recover during a crisis to exceed its 2008 peak -More Chinese PCB makers may want to - Growing demand and limited supply for HDI PCB as a result enter the auto market since there are only of the global crisis a few Chinese auto PCB makers - Growing demand for MLB and HDI PCB in Thailand - The future trend of the auto industry is shifting towards hybrid and electric cars, which will drastically increase PCB demand

New Automotive Customers 2009 9 customers out of top 25 Automotive electronic suppliers were KCE customers (3 in top 10) 2010 The number of KCE customers in top 25 Automotive electronic suppliers increases to 14 (5 in top 10) 2011 The number of KCE customers in top 25 Automotive electronic suppliers will be at 18 (8 in top 10)