Pr Presentati esentation on FY FY2018 2018 Be the Leading - PowerPoint PPT Presentation

Analyst Analyst Pr Presentati esentation on FY FY2018 2018 Be the Leading Company in Innovation Development and the Smart Factory of Quality Elastomer Products, Motorcycle Tyres and Tubes in AEC

Contents 2. . Performa mance 1. About IRC FY FY2018 2018 2 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part1: About IRC Our Mission Be the Leadin ing Company y in Innovation ion Developm opment t and the Smart Factory ory of Quality y Elastom omer er Products, s, Motorcyc ycle le Tyres and Tubes in AEC On the ground und of 7 7 polic licies; ies; Supporting the Good Corporate Governance and Corporate Social Responsibility Sustainability in Safety Generating Strong Financial Status and Environment and Attractive Return to Shareholders Quality in Each Product with International Quality Systems Continuous Research and Development for New Innovations, Products, Processes and Markets and Keep Generating the Outputs of Existing Business Best Satisfaction to Customers in 4 Product-Dimensions: Price/Cost (C) At the Best Competitive Level for Customers Create the Opportunities of Human Resource Quality (Q) At the Best Competitive Quality Rating by Customers Improvement to Achieve Competencies in All Levels Delivery (D) At the Best Competitive Delivery Rating by Customers Services/ Solutions (S) At the Best Service to Solutions for Customers at All Times 3 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part1: About IRC Group Structure LEEISSARANUKUL GROUP MINOR SHAREHOLDERS INOUE RUBBER CO., LTD. (JAPAN) 38.08% 34.30% 27.62% INOUE RUBBER (THAILAND) PUBLIC COMPANY LIMITED 99.99% 8.00% 99.99% KINNO HOSHI ENGINEERING IRC (ASIA) RESEARCH INOUE RUBBER (VIETNAM) CO., LTD. CO., LTD. CO., LTD. Data as of February 8, 2018 The subsidiaries have been operated under the same administration structure and manageable authority as the Company. Remark: Major shareholder group who participates in business operation by sending persons to be directors *Leeissaranukul Family including Sopa-Kanok International Co., Ltd, Mrs. Porndee Leeissaranukul, Mr. Thanong Leeissaranukul, Mrs. Pimjai Leeissaranukul, Mr. Apichart Leeissaranukul, and Mrs. Pornthip Sethiwan.

Part1: About IRC Our Background Industrial Elastomer Products Business Unit Tires and Tubes Business Unit Wangnoi Production Site, Ayutthaya Rangsit Production Site, Pathumthani 54.63% 45.37% Automotive Parts Tires of Total Sales of Total Sales 35.44% 35.71% Automotive Parts Tires Total Sales 5 , 559.35 Other Industries Tubes Million Baht 9.66% 19.19% Tubes Other Industries FY2018 Total 10.40 1,693 shareholders Company Abbreviation IRC P/E (as of 22 th Nov, 2018) (as of 8 th Feb, 2018) Shareholders Established 15 December, 1969 4.18 % Total 1,661 persons Dvd. Yield (as of 22 th Nov, 2018) Listed in SET 25 September, 1994 Employees (FY 2018) 258 Soi.Rangsit-Nakornnayok 49, Prachatipat  5,562 Million Baht ( FY2018 ) 4,060 MB Head office Total Market Cap. District, Thanyaburi, Pathum Thani 12130 (as of 22 th Nov, 2018)  5,331 Million Baht (FY 2017) Revenues Registered Capital 200 Million Baht (Paid up)  358 Million Baht ( FY2018) CG Report Total Net Number of Shares 200 Million Ordinary Shares  424 Million Baht (FY 2017) Profits 5 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part1: ABOUT IRC Part1: About IRC Our Recognition Our Recognition Award from customers Award from other sectors  Received 2017FY SUPPLIER EVALUATION SCORE Certificate from Isuzu Engine  Listed in the Thailand Sustainability Investment (THSI) 2018 Sustainable Stock Group Company Manufacturing (Thailand) Co., Ltd. from the Stock Exchange of Thailand  Received COST AWARD 2017 Award from Thai Stanley Electric Public Company  Selected into the ESG100 Securities Group for the year 2018 from Thaipat and Limited on 18 May 2018 Received CG rating at "Very Good" level (4 stars) from the IOD survey  Received Automation Award and Safety Award from INOAC CORPORATION  Received Gold Award from the presentation At the International Convention on Quality  Received the 35th TCC QCC ACTIVITY 2017 from Toyota Co-operation Club as a Control Circles 2018 (ICQCC 2018) organized by the Singapore Productivity Center  Certified as Green Industry Level 3 Green System (Green System) from the Ministry of winner of group 3, on 15 December 2017  Received Runner Up 2017 Award for Outstanding Performance Supplier in Quality Industry Performance Award from Toyota  Received Thailand Energy Awards 2018 Outstanding Award for Energy Conservation  Received Delivery 2017 Best Award from Roki Type of factory From the Ministry of Energy  Received Awards of Quality 2017 from Mitsubishi Motors (Thailand) Company  Received Outstanding Workplace Award The promotion of labor development for the Limited year 2018 from the Department of Skill Development Ministry of Labor “ First private Inspection Bodies in Thailand for Pneumatic tire for Motorcycle and Moped ” 6 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part1: About IRC Keys to Sustainability 23 Years ears of Continuously R&D IRC (Asia) Research LTD. (IAR) 1. “ First private Inspection Bodies in Thailand for Pneumatic tire for Motorcycle and Moped ”  Received investment support from the BOI  There are investments in the field of equipment, machinery, and program system used in the experiment  Have both experts Thai and Japanese Together more than 70 people  Readiness in working in product development Is the key to making customers satisfied  One of the key factors in the development of advanced processes for competition 2 . Kinno Hoshi Engineering Co., Ltd. (KIN)  P roduce molds for the company which help reduce production costs  Can produce molds according to the production process  Helping to develop new products exactly as needed 7 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part1: ABOUT IRC Part1: About IRC Dividend Payout Ratio 8 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Contents 2. . Performa mance 1. About IRC FY2 Y2018 9 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Contents Market Situation 2.Performance Financial Highlight FY2018 External Impacts CSR Projects 10 INOUE RUBBER ( THAILAND ) PUBLIC COMPANY LIMITED

Part 2. IRC PERFORMANCE : MARKET SITUATION Economic Situation As the result of COP21,China started their policy on Environmental Combating since Jan 2018 eg. Case of using coal as the raw material in industrial , level up CO2 controlling. IRC Sales (MB) GDP Growth Rate - Thailand GDP Growth Rate - Global GDP Growth Rate - Japan GDP Growth Rate - Vietnam U.S. – China Mr. Trump became Trade war U.S President 1,600 9.00% 1,422 1,391 1,392 1,376 1,354 1,328 8.00% 1,400 1,297 1,231 7.45% 7.00% 7.65% 7.46% 1,200 6.88% 6.73% 6.68% 6.00% 1,000 6.28% 4.90% 4.30% 4.60% 5.00% 5.15% 3.90% 4.00% 800 3.40% 4.00% 3.10% 3.00% 600 3.00% 3.40% 3.30% 3.50% 3.50% 3.30% 2.80% 2.80% 400 2.70% 2.00% 2.00% 2.00% 200 1.00% 1.50% 1.60% 1.60% 1.00% 1.00% 1.00% 0 0.00% OCT-DEC'16 JAN-MAR'17 APR-JUN'17 JUL-SEP'17 OCT-DEC'17 JAN-MAR'18 APR-JUN'18 JUL-SEP'18 FY2017 FY2018 IRC ’ s sale FY2017 : 5,231.86 Million Baht IRC’s sales FY2018 : 5,559.35 Million Baht  U.S.economy : expected to expand at 3.1% from strong consumer and business spending as well as a surge in exports ahead of retaliatory tariffs from China helped drive economic growth.  Eurozone economy : economic sentiment fell throughout Q3 amid political uncertainty and firm oil prices and returning inflation may have taken a bite out of consumption .  Japan economy : The Japanese economy now. Affected by multiple disasters. The demand for consumption has decreased. Factory stopped production. Including exports fell sharply.  China economy : slowed to 6.5% due to the government ’ s effort to tackle debt risks and trade war with the United States.  Vietnam economy : Continued growth from overseas investment The industry. Processing and Manufacturing Including the real estate sector.  Thailand economy : estimated growth is reduced to 4.5% from 4.8% due to export and tourism growth are declined.  IRC ’ s sales : Total sales FY2018 is 5,559.35 YoY + 5.70% from last year. 11 Source: Bank of Thailand, Trading Economics ,Focus Economics