Halcyon Technology PLC.“HTECH”

2016 Year-End

Mar’17

Skip to Performance

Halcyon Timeline

1993 2002 2005 2008

HM established for manufacturing of metal fabricated products – jigs & fixtures, etc.

HT established for new segment of PCD cutting tools

Came out with PCD hollow tools –changed the HDD world

HT went public; IPO under symbol “HTECH”

2

Halcyon Timeline

2010 2012

2nd factory established in Philippines (HP)

FDM acquired – reinforce standard tool segment

HI (Indonesia) established through FDM

2013 2014 2016

HV established with offices in HCMC & Hanoi

HS & HY established as distributing offices

HTECH invests in new factory & machines

Heng (new subsidiary in Rayong)

3

Halcyon Technology (Philippines) Inc. (HP)

since 2010HTECH holds 65%

ATEK Precision Tools(ATEK)

since 2011HP holds 100%

Halcyon Technology(M) Sdn. Bhd. (HY)

since 2013HTECH holds 60%

Halcyon Technology(Singapore) Pte. Ltd. (HS)

since 2013HTECH holds 70%

PT HTECH Tools Indonesia (HI)

since 2012FDM holds 60%

Halcyon Technology Public Co., Ltd.

(HTECH)since 2002

Halcyon Metal Co., Ltd.(HM)

since 1993HTECH holds 100%

FDM Technology Co., Ltd.(FDM)

since 2002HTECH holds 60% (2012)

Halcyon Tools and Engineering Co., Ltd.

(Heng) since 2016FDM holds 90%

Halcyon TechnologyVietnam Co., Ltd. (HV)

since 2014HTECH holds 85%

Halcyon in ASEAN Market

ManufactureDistributorIn Process

4

Halcyon Group Performance

245

367

420

535576

701724

826

-

100

200

300

400

500

600

700

800

900

1,000

2009 2010 2011 2012 2013 2014 2015 2016

TH

B M

illi

on

HT Subsidiaries

5

Halcyon Products

Cutting Tool Types

MonocrystalApplications: super-finishing and critical applications

Materials: brass, copper, aluminum, acrylic

Industry: Lens, Jewelry, Watch, Automotive

PCBNApplications: cutting super-hard materials

Materials: cast iron, hardened mat. (>50 HRc), sintered mat.

Industry: Automotive, machinery parts

7

Carbide

Applications: General purpose cutting

Materials: Steel, aluminum, plastic, wood, etc.

Industry: Used in most industries

Applications: cutting non-ferrous materials

Materials: aluminum, brass, copper, abrasive materials, wood, acrylic, etc.

Industry: HDD, Aerospace, Automotive, medical, jewelry, etc.

PCD

Veined PCD Endmills

(V-Tec)

Features: Veined PCD cutting edge reduces cycle time and extends tool life

High-end Products (Version 2015)

Applications: suitable for composite materials such as CFRP used in Aerospace industry and other vehicles

Solid-headed PCD Tools

(S-Tec)

Features: Solid PCD tip allows for more flexible helix angle, better chip evacuation, and longer tool life; can be regrinded multiple times

8

High-end Products (Version 2016)

Helix PCD Tools

(H-Tec)

Target Industries: HDD, Automotive, Lens, etc.

Features:

• Tested by customers and proven better tool life, better finishing, reducing cycle time by 35-50%

• Market Leader in SE Asia

• Can reduce more cost than normal Solid PCD tools

• More flexibilities in designs

9

2016 Performance & Financial Highlights

Consolidated HTECH Group Performance

10

Consolidated Performance (Q)

-

50

100

150

200

250

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16

HT HM HC FDM HENG HP HS HYK HI HV Gross Profit Net Profit*

* Net Profit of HTECH

shareholders only

** Conso. Total Revenue

11

724

826 (+14%)

34%

39%

9%

14%

-

100

200

300

400

500

600

700

800

900

2012 2013 2014 2015 2016

HT HM HC FDM Heng HP HS HY HI HV Gross Profit Net Profit*

Consolidated Performance (Y)* Net Profit of HTECH

shareholders only

** Conso. Total Revenue

FD

M a

cq

uire

d &

H

C c

lose

d

HS&

HY

HI&

HV Heng &

new factory

12

301

353(+8%)

84

131

45

85

-

50

100

150

200

250

300

350

400

2012 2013 2014 2015 2016

TH

B M

illi

on

Dividend

Net Profit(exc. dividend)

Gross Profit

Sales

HT Performance

13

2015

THB 724.33 mill.

Revenue Breakdown

2014

THB 701.00 mill.

Overseas43%

Thailand57%

Overseas44%

Thailand56%

2016

THB 826.20 mill.

Overseas44%

Thailand56%

14

HT – Sales by Sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016

72% 69% 66%56% 52% 54%

23%

31%28% 27%

20% 27%

4% 9%16% 16%

8% 4% 7% 5% 3% 3%

Trading

Other

Auto

HDD

15

Financial Highlights

Consolidated as of 31/12/16

Capital Structure

-

200

400

600

800

1,000

1,200

1,400

2013 2014 2015 2016

913 966

1,023

1,277

258 258 259 253

590 633

764

1,023

TH

B m

illi

on

Assets Liabilities Shareholder's Equity

17

Debt to Equity Ratio

144 143 141

950.44

0.37

0.34

0.28

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.6

0

20

40

60

80

100

120

140

160

2013 2014 2015 2016

D/E

Ra

tio

(ti

me

s)

TH

B M

illi

on

Interest-bearing Debt D/E Ratio

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Current Ratio

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2013 2014 2015 2016

1.741.88

2.12

2.87

Tim

es

19

Profitability

195

242249

322

50

68 63

118

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

50

100

150

200

250

300

350

2013 2014 2015 2016

% M

arg

in

TH

B m

illi

on

Gross Profit Net Profit (HTECH's shareholders) Gross Margin Net Margin

20

Dividend Payouts

HTECH Dividend Policy: payout no less than 40% of net margin

Performance Period Payout DateDividend per Share (THB)

Jan. – June 2014 9/9/14 0.045

July – Dec. 2014 8/5/14 0.065

Jan. – June 2015 9/9/15 0.045

July – Dec. 2015 10/5/16 0.055

Jan. – June 2016 9/9/16 0.065

July – Dec. 2016 23/5/17 0.11*

* Subject to AGM approval on April 25, 2017

21

New Factory Buildings

HT New Factory Building

• 3-storey factory on site adjacent to current building

• Expected Finish Date: 31/05/17 Q3’17

• Full production expected by Q4’17

• Focus on production of high-end products

• Increase capacity by 10-15% from 2016

23

HV New Factory Building

• Located in Hanoi

• 2-storey warehouse – HV rents 1st floor

• Started renovation in Q1’17

• Production expected by Q2’17

• Main customers in automotive industry

24

Thank You

Q&A Session

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