Post on 20-Aug-2015
Opportunity Day Q3/2012 Results Presentation
27th November 2012 Venue : The Stock Exchange of Thailand
Presented by:
Sompong Phaoenchoke, MD.
Chawan Ngamwongsakollert, CFO.
Naiyana Prachotrattanakul , IR Mgr.
2
Contents
• Company Profile
• Industry Overview
• Financial Review
•Outlook
3
Group Structure & Business
Thai Rung Union Car Plc. “TRU”
-R&D, Auto Assembly -Pressed Metal Parts, Plastic Parts, Car Seat
Thai Rung Tools and Dies Co. Ltd. “TRT”
- Tooling (Dies/Jigs/CF)
Thai Auto Conversion Co. Ltd. “TAC” (JV. with Toyota group)
- Special Purpose Vehicles
Thai Auto Pressparts Co. Ltd. “TAP”
- Pressed Metal Parts
Delta Thairung Co. Ltd. “DTC” (JV. with Delta Kogyo, Japan)
- Seats & Seat Components
Thai V.P. Auto Service Co. Ltd. “TVS”
- After-sales Services & Spare Parts
Thai Ultimate Car Co. Ltd. “TUC”
- Automotive, consulting & admin. services
Subsidiary Companies Associated Companies
94%
91%
94%
20%
30%
99.53%
Delta-TR Co. Ltd., Associated company, was liquidated on 6 March 2012.
4
Scope of Business
•Research & Development (R&D)
•Tooling (Dies/Jigs/CF/1)
•Pressed metal parts & plastic
parts
•EDP/2 & Painting
•Auto Assembly
•Seats
•After-sales service & Spare parts
Note : 1. CF = Checking Fixture
2. EDP = Electro Deposit Primer
5
TRU’s Strengths
• Comprehensive and
integrated scope of
work: from R&D,
tooling, parts stamping,
auto seats, EDP/1 &
painting, through to
production of various
kinds of vehicles and
after-sale service.
Note : 1. EDP = Electro Deposit Primer
After-sales service
Special Purpose Vehicles
Auto Assembly (Welding, Trimming)
EDP/1 & Painting
Auto Seats
Part Making
(Metal & Plastic)
Tooling (Dies/Jigs/CF)
R&D
TRU Group
6
TRU’s Strengths (Cont.)
• Own EDP/1 & paint shop with top quality
to meet latest global standards for
export
• Flexible production line can quickly
adapt to customers’ needs
• Leading producer of “flat deck”
cargo boxes for pick-ups
• Specialist producer of pick-up
based special purpose vehicles
Note : 1. EDP = Electro Deposit Primer
2. MUV4 = Military Utility Vehicle 4WD
MUV4/2 & Transformer
7
Business Units
Special Purpose Vehicles & Service centre
Tooling & OEM Parts
Contract Assembly & Painting
56% 33% 3%
% of Total Revenues
as of June 2012
8
Contents
• Company Profile
• Industry Overview
• Financial Review
•Outlook
9
Thai Auto Industry 2004-2015F
0.93
1.13 1.191.29
1.39
1.00
1.65
1.46
2.30
2.502.63
2.73
0.63 0.70 0.68
0.63 0.62
0.550.80
0.80
1.33
1.101.16 1.20
0.330.44
0.54
0.690.78
0.54
0.90
0.74
0.97
1.381.44 1.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2004 2005 2006 2007 2008 2009 2010 2011 2012(F) 2013(F) 2014(F) 2015(F)
Production
Domestic
Export
Mil. Units
Source : - Year 2004-2012(F) The Federation of Thai Industries,
Note - Year 2013-2015 forecasted by TRU, Estimate Domestic 45%, Export 55%
+65%
-28%
-11%
+57%
+8%
+8% +21% +6%
+8% +5% +4%
Hamburger crisis
CAGR (2004-2008)
Production 10%, Domestic NA., Export 25%
CAGR (2012-2015F)
Production 8%, Domestic NA., Export 8%
(From Eco car)
-
Effect of Japanese tsunami in Q2 and Thai floods in Q4
1,285,235
1,706,389
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Q1-3/11 Q1-3/12
10
Production Volumes in Thailand Q3/12
474,628
558,277
648,751
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Q3/11 Q2/12 Q3/12
Units
Source : The Federation of Thai Industries
+16% QoQ
+37% YoY
Remark : Q2/11 effect from Japan Tsunami
Units +33% YoY
Quarter Cumulative
317,427
481,810
312,701
465,00440,841
53,763
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
Q1-3'12 Q1-3'11
11
Domestic Sales in Thailand Q3/12
112,495149,739
175,943
112,230
159,791
198,966
14,232
17,723
19,094
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Q3/11 Q2/12 Q3/12
Commercial vehicle
Passenger cars
Pick-ups+PPV
Source : - The Federation of Thai Industries Note : - PPV = Pickup truck-based Passenger Vehicles - Commercial vehicles = trucks, vans, buses
Remark : Q2/11 effect of Japanese tsunami
Units +20% QoQ
+65% YoY
1,000,577
670,969
+8%
+32%
+49%
+52%
394,003
Quarter
QoQ
+25%
+17%
238,957
327,253
Cumulative
Units
YoY
+34%
+77%
+56%
+49% YoY
473,564561,770
166,068
173,484
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Q1 -3/11 Q1 -3/12
12
CBU Exports Q3/12
177,692 182,227202,972
61,062 53,921
75,413
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
Q3/11 Q2/12 Q3/12
Passenger cars
Pick-ups+PPV
Units
Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up - PPV = Pickup truck-based Passenger Vehicles
236,148
238,727
+4%
+19%
+18% QoQ
+17 % YoY
Remark : Q2/11 effect of Japanese tsunami, Q4/11 Thai floods.
278,385
Quarter Cumulative
QoQ
+40%
+11%
Units +15% YoY
YoY
+ 24%
+14%
YoY
735,254
639,632
CBU Exports Q1-Q3/12
Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up
158,034 235,360
106,996 181,450
105,637150,288
48,27952,894
52,86885,673
25,086 29,589
Q1-3/11 Q1-3/12Source : - The Federation of Thai Industries Note : C&S. America = Central & South America OCEANIA = Australia, New Zealand and Others M/E = Middle East
Q1-Q3/12 = 735,254 units, +15% YoY
Q1-Q3/11 = 639,632 units By Region
ASIA +49%
Middle East
+70%
OCEANIA +42%
C & S
America + 8%
EU +62%
220,078306,075
119,550
146,738
102,89184,193
51,471 33,048,
20,819 28,047
11,448, 17,441
34,72430,034
Q1-3/11 Q1- 3/12
AFRICA +18%
Toyota +39%
Mitsubishi +23%
Nissan -18%
Ford -29%
Isuzu +17%
Mazda -14%
GM +72%
Honda +44%
By Brands
35,020 29596
14
Contents
• Company Profile
• Industry Overview
• Financial Review
•Outlook
15
593
891
73
66
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q3/11 Q3/12
Other income
Sales and Service income
+44% YoY
957
Total Revenues 3Q/12 Automotive Industry as a whole up by 33%, while TRU’s revenues grew by 37% YoY as a
result of customer diversification.
Sales and Service income +50 % YoY
Other income -10% YoY
1,711
2,390
182
210
0
500
1,000
1,500
2,000
2,500
3,000
3Q/11 3Q/12
+37 % YoY
2,600 Other
income +15% YoY
Sales and Service
income +40 % YoY
Quarter Cumulative
Bt. millions Bt. millions
666
1,893
16 16
Revenue Breakdown 3Q/12
Note: 1. Tooling (Dies/Jigs/CF) & OEM Parts include GM, Nissan, Isuzu, Mitsubishi, Komatsu, Yanmar, Kawasaki, Triumph etc.. 2. Contract Assembly & Painting includes Nissan, Isuzu truck, Flat deck, Komatsu, Kobelco, Yanmar, Vacuum ICL, etc..
3. Other income includes interest, scrap sale, share of profit from investments in associated companies, etc.
931
1,460
625
843
155
87
182
210
0
500
1,000
1,500
2,000
2,500
3,000
3Q/11 3Q/12
Others
Sales of Cars & Service Center
Contract Assembly & Painting
Tooling & OEM Parts
Bt. millions
2,600
1,893
+37% YoY
-44%
+35%
+57%
+15%
89%
3Q/12
Tooling &
OEM Parts,
931, 49%
Contract Assembly
&
Painting, 625, 33%
Sales of
Cars & Service
Center, 155, 8%
Others,
182, 10%
82%
3Q/11
3Q/2012 Total revenues Bt.2,600 million, +37 % YoY, (2011 = Bt.1,893 million)
- Revenues from Tooling & OEM Parts increased by 57% YoY, mainly from GM and Nissan, bringing proportion from 49% to 56%.
- Revenues from Contract Assembly & Painting increased by 35% YoY, mainly from Nissan & Isuzu truck painting and assembly project and growth of Industrial machinery customers.
17 17
Revenues Portfolio 3Q/12
Tooling &
OEM Parts, 1460, 56%
Contract
Assembly & Painting, 843,
33%
Sales of Cars & Service Center, 87,
3%
Others, 210,
8%
3Q/12 Total revenues Bt.2,600 million, up by 37% YoY as a result of customer diversification.
Automotive
83%
Industrial
Machinery12%
Motorcycle
3% Others
2%
89%
Breakdown of Tooling & OEM parts and Contract Assembly & Painting Bus by customer sector.
(2011 = 77%)
(2011 =17%)
121
183
42% 53%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
Q3/11 Q3/12
MB.
18
Gross Profit
+51% YoY
% Gross Profit = Gross profit / Sales and Service Income
333 453
19.44% 18.95%
0%
10%
20%
0
100
200
300
400
500
600
3Q11 3Q/12
MB.
+36% YoY
Quarter Cumulative
3Q/12 TRU’s gross profit was up by 36%, in line with growth in the automotive industry.
Bt. millions Bt. millions
19 19
93
153
14.0%
16.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
0
50
100
150
200
250
300
Q3/11 Q3/12
MB.
Net Profit
+65% YoY
% Net Profit = Net profit attributable to equity holders of the company / Total Revenues
242 385
12.8%
14.8%
-1%
1%
3%
5%
7%
9%
11%
13%
15%
17%
0
100
200
300
400
500
600
3Q/11 3Q/12
MB.
+59% YoY
Quarter Cumulative
3Q/12 TRU’s Net profit increased by 59% as a result of extend car delivery period under Government’s
first-car excise tax scheme and thanks to growth in the automotive industry as a whole.
Bt. millions Bt. millions
20 20
145
208
21.7% 21.8%
10%
12%
14%
16%
18%
20%
22%
0
50
100
150
200
250
300
350
400
Q3/11 Q3/12
MB.
EBITDA
+43% YoY
% EBITDA = EBITDA / Total Revenues
382 550
20.2%21.2%
10%
12%
14%
16%
18%
20%
22%
0
100
200
300
400
500
600
700
3Q/11 3Q/12
MB.
+44% YoY
EBITDA increased mainly thanks to strong growth in revenues and net profit.
Quarter Cumulative
Bt. millions Bt. millions
21
10.24
14.31
0
5
10
15
3Q/11 3Q/12
21
Profitability Ratio
9.40
14.30
0
5
10
15
3Q/11 3Q/12
As Sep 30 , 2012 total assets had increased by Bt.565 million from December 31,2011, mainly due to increases in trade receivables , inventories, investments in new plant and machinery.
Return on Assets (ROA)
Return on Equity (ROE)
+4.07% +4.90%
% ROA = EBIT / Average total assets
% ROE = Net profit attributable to equity holders of the company / Average major shareholders’ equity
22
0.14
0.22
0
0.1
0.2
0.3
Dec 31, 2011 Sep 30, 2012
Times
3.52 2.51
0
1
2
3
4
5
Dec 31, 2011 Sep 30, 2012
Times
22
Financial Ratios As of Sep 30, 2012 Current liabilities increased by 298 MB from December 31, 2011, mainly from
raw material purchasing.
Current Ratio Debt to Equity (D/E)
-1.01
+0.08
23
Contents
• Company Profile
• Industry Overview
• Financial Review
•Outlook
24
Outlook - Tooling & OEM Parts
Tooling
• Boost level of die and jig design and production for turn-key projects through alliance with
foreign partner so as to be able to enter more overseas tenders.
• Build up a network of business alliances in Thailand to cater to the volume of new projects
coming on stream, increase production capacity and be able to take on turn-key projects
overseas.
• Invest in new machinery (Bt.205 million, with BOI investment privileges applied for) to increase
capacity and boost level of technology, which will attract increased parts production work for the
Company.
OEM Parts
• Extension of delivery period under the Thai government’s first-car excise tax scheme, which will
boost the sale and production of vehicles and contribute to increasing the Company‘s orders.
• Expand both metal and plastic parts making business to cater to increasing volumes of orders
from automotive and other customers moving their production bases to Thailand.
• Focus on high added value parts such as those requiring large (2,000 tons) press machines and/or
sub-assembly
• Boost parts production capacity to meet increasing customer demand: the new parts factory in
Rayong province started operation in Q2/2012 and is expected to generate income around Bt.600
million a year.
25
Outlook – Contract Assembly & Painting
• Extension of delivery period under the Thai government’s first-car excise tax scheme,
which will boost the sale and production of vehicles and contribute to increasing the
Company‘s orders
• Top-level expert contract assembler for both semi and complete components, fully
integrated painting and contract assembly of complete vehicles for various brands for
export.
• Upgrade painting facility and equipment to increase production capacity, and
developing vehicle assembly system to meet latest global standards to support
customer demand.
• Conducting feasibility study for expansion of painting shop in order to cater to
increased volumes of work from various customer groups such as automotive,
industrial and agricultural machinery for both the domestic and export markets.
• Leading designer and fully integrated producer of pick-up “flat deck” cargo box for all
brands of pick-up, for export worldwide.
26
Outlook – Special Purpose Vehicles
• Develop our business as a builder of special purpose vehicles based on pick-up trucks in co-operation with brand owners for niche market vehicles that they do not produce, e.g.
- Military vehicles of various kinds (e.g. MUV4) for sale in the domestic market and with the aim of exporting to ASEAN and developing countries
- armoured/ bullet-proof vehicles, cash transporters, etc.
• Use our experience in R&D, body design and engineering to take on design work for various types of vehicles, building prototypes, making dies and jigs for auto makers and other business partners.
• Seek business alliances to develop various kinds of vehicles jointly, for export in both CBU and SKD form, particularly to ASEAN in view of advantageous AFTA duty regime.
27
Questions &
Answers