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Q1/2015 Results Presentation - Thai Rung Union Car Day_Q1_15.pdf · Q1/2015 Results Presentation...
Transcript of Q1/2015 Results Presentation - Thai Rung Union Car Day_Q1_15.pdf · Q1/2015 Results Presentation...
Opportunity day Q1/2015 Results Presentation
8th June 2015
At Stock Exchange of Thailand
Presented by:
Sompong Phaoenchoke, MD.
Naiyana Prachotrattanakul, IR Mgr.
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Contents
• Company Profile
• Industry Overview
• Financial Review
• Outlook and Direction
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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%
Kyowa Thairung Co. Ltd. “KTR” (JV. with Kyowa Sangyo, Japan)
- Parts & Cabin of Industrial Machinery and etc.
49%
Trex Thairung Co. Ltd. “TTR” (JV. with Trex group, Japan)
- Truck body, dump truck, mixer truck and etc.
40%
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 4
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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
• 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
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TRU’s Strengths (Cont.)
Note : 1. EDP = Electro Deposit Primer
2. MUV4 = Military Utility Vehicle 4WD
MUV4/2 & Transformer
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Business Units
Special Purpose Vehicles & Service centre
Tooling & OEM Parts
Contract Assembly & Painting
57% 32% 5%
Total Revenues
as of Q1/2015
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Contents
• Company Profile
• Industry Overview
• Financial Review
• Outlook and Direction
Thai Auto Industry 2004-2015F
0.931.13 1.19
1.291.39
1.00
1.65
1.46
2.45
1.88 2.00
0.63 0.70 0.68
0.63 0.62
0.55 0.80
0.80
1.441.33
0.88 0.85
0.330.44
0.54
0.69 0.78
0.54
0.90
0.74
1.031.13
1.13 1.15
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2015(F)
Production
Domestic
Export
Mil. Units
Source : - Year 2004-2015(F) The Federation of Thai Industries.
25 May 2015, FTI revised forecast Y.2015 from 2.15 mil. to 2 mil. units.
+65%
-28%
-11%
+68%
+8% +8%
+21% +6%
+0.1%
-23% +6%
Hamburger crisis
-
Japanese tsunami in Q2 and Thai floods in Q4
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First car tax scheme
-3%
+2%
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Production Volumes in Thailand Q1/2015
517,492
434,613 456,435 471,467524,540
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Units
Source : The Federation of Thai Industries
+11% QoQ
+1% YoY
2,457,057
1,880,007
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Units
-23% YoY
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Domestic Sales in Thailand Q1/2015
111,259 101,164 97,162111,913
92,994
101,621103,999
98,121
107,661
92,978
11,291 11,57712,216
13,791
11,815
0
50,000
100,000
150,000
200,000
250,000
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
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
Units -15% QoQ
-12% YoY
-14%
207,499
QoQ
-14%
-17%
216,740
233,365
YoY
+5%
-9%
-16%
589,338421,498
663,746
411,402
77,588
48,875
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Commercial vehicle
Passenger cars
Pick-ups+PPV
1,330,672
881,775
-34% YoY
Units
-37%
-38%
-28%
197,787
224,171
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CBU Exports Q1/2015
191,909163,762 177,922 180,313
208,401
99,600
104,776100,983 108,837
119,831
0
100,000
200,000
300,000
400,000
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Passenger cars
Pick-ups+PPV
Units
Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up - PPV = Pickup truck-based Passenger Vehicles
278,905
291,509
+14% QoQ
+13% YoY
289,150 QoQ
+10%
+16%
YoY
+20%
+9% 735,827 713,906
392,325 414,196
0
500,000
1,000,000
1,500,000
Passenger cars
Pick-ups+PPV
1,128,152 1,128,102
-3%
Units
+6%
268,538
328,232
92,335 107,838
75,402 89,601
26,330 20,166
19,722 25,780
23,596 31,157
17,519 17,285
18,400 18,873
10,147 8,980
5,699 8,504
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4/14 Q1/15
32%
26%
8%
33%
27%
9%
6%
8%
6%
7%
4%
6%
3%
6%
8%
3%2%
5%
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CBU Exports Q1/2015
Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up
66,009 75,306
64,85372,996
70,084 74,219
27,36639,439
29,79938,560
13,584 12,214
17,455 15,498
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4/14 Q1/15
23%
24%
22%
23%
22%
23%
4%
5%
12%
12%
9%
6%
10%
5%
Source : - The Federation of Thai Industries Note : C&S AM = Central & South America OCEANIA = Australia, New Zealand and Other M/E = Middle East
Q1/2015 = 328,232 units (+14% QoQ) Q4/2014 = 289,150 units By Region
ASIA +14%
M/E +13%
OCEANIA +6%
C&S AM +44%
EU +29%
AFRICA -10%
Toyota +17%
Mitsubishi +19%
Nissan +31%
Isuzu +32%
Ford +31%
Mazda +3%
GM -12%
Honda -1%
By Brand Suzuki +49%
North AM -11%
Contents
• Company Profile
• Industry Overview
• Financial Review
• Outlook and Direction
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Tooling &
OEM Parts,
363, 55%Contract
Assembly &
Painting, 185, 28%
Sales of
Cars & Service
Center, 43, 6%
Others,
72, 11%
Revenue Breakdown Q1/2015
Note: 1. Tooling (Dies/Jigs/CF) & OEM Parts include GM, Nissan, Isuzu, Mitsubishi, Komatsu, Yanmar, Kawasaki, Triumph, Volvo truck etc.. 2. Contract Assembly & Painting includes Flat deck, Komatsu, Kobelco, Yanmar, Vacuum, etc.. 3. Other income includes interest, scrap sale, share of profit from investments in associated companies, etc.
363 335
185189
4329
7239
0
100
200
300
400
500
600
700
800
Q4/14 Q1/15
Others Sales of Cars & Service Center
Contract Assembly & Painting Tooling & OEM Parts
Bt. millions
Total
592 MB.
Total 663 MB. -11% QoQ
-32%
+2%
-8%
-46%
Tooling &
OEM
Parts, 335, 56%Contract
Assembly
& Painting,
189, 32%
Sales of Cars &
Service Center,
29, 5%
Others,
39, 7%
88%
Q1/15
83%
Q4/14
Q1/2015 Total revenues Bt.592 million, -11 % QoQ.
- Revenues from Tooling & OEM Parts decreased by 8% QoQ, mainly from BU tooling.
- Sales of Cars decreased 32% and other incomes decreased by 46% QoQ, due to Q4/14 has special income .
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Revenues Portfolio Q1/2015
Tooling & OEM Parts, 335, 56%
Contract Assembly &
Painting, 189,
32%
Sales of Cars
& Service Center, 29,
5%
Others, 39,
7%
Q1/2015 Total revenues Bt.592 million, decreased by 11% QoQ from BU Tooling, Car and others income.
88%
Breakdown of Tooling & OEM parts and Contract Assembly & Painting by customer sector.
Automotive82%
Industrial Machinery
9%
Motorcycle
7%Others
2%
(2014 = 81%)
(2014 =11%)
(2014 =6%)
Gross Profit
% Gross Profit = Gross profit / Sales and Service Income
86
52
94
40
108
14.4%
10.3%
16.74%
6.73%
19.50%
0%
5%
10%
15%
20%
25%
0
20
40
60
80
100
120
140
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
+171% QoQ +26% YoY
Bt. millions % of Sales
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EBITDA
99
60
93 9081
15.5%
10.9%
15.64%13.50% 13.61%
0%
5%
10%
15%
20%
0
20
40
60
80
100
120
140
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
-10% QoQ -19% YoY
Bt. millions
% of Total Revenues
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EBITDA = Earning Before Interest, Tax, Depreciation & Amortization. % EBITDA = EBITDA / Total Revenues
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Net Profit
52
18
44 3832
8.2%
3.3%
7.3%
5.7%5.4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
10
20
30
40
50
60
70
80
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Bt. millions % of Total Revenues
-16% QoQ
-39% YoY
% Net Profit = Net profit attributable to equity holders of the company / Total Revenues
4.914.13
0
2
4
6
8
Q4/14 Q1/15
Profitability Ratio
4.95
4.23
0
2
4
6
8
Q4/14 Q1/15
ROA slightly decreased due to EBIT was decreased by 20% .
Return on Assets (ROA)
Return on Equity (ROE)
-0.78% -0.72%
% ROA = EBIT / Average total assets
% ROE = Net profit attributable to equity holders of the company / Average major shareholders’ equity.
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ROE slightly decreased due to net profit decreased by 16%.
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0.140.13
0
0.1
0.2
0.3
Dec 31, 2014 Mar 31, 2015
Times
2.98 2.87
0
1
2
3
4
5
Dec 31, 2014 Mar 31, 2015
Times
Financial Ratios As of Mar 31, 2015 Current assets decreased by 42 MB from December 31, 2014, mainly from decrease in Cash.
Current Ratio Debt to Equity (D/E)
-0.11 -0.01
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Contents
• Company Profile
• Industry Overview
• Financial Review
• Outlook and Direction
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Outlook and Direction - 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.
• Completed installation new machinery to increase capacity and boost level of technology, which
will attract increased parts production work for the Company.
• Seeking for the new customers such as Volvo truck, UD truck, Mahindra (India).
OEM Parts
• 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.
• The new parts factory in Rayong province already installed new press machines and automation
system to increase the productivity.
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Outlook and Direction – Contract Assembly & Painting
• 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
• Leading designer and fully integrated producer of pick-up “flat deck”
cargo box for all brands of pick-up, for export worldwide.
• Expand business in industrial machinery as one stops service from part component, to
complete cabin assembly. As we successful to established a new company “KYOWA
THAIRUNG Co., Ltd.” (KTR), JV with Kyowa Sangyo Co., Ltd. (Japan) on April 2014.
• Production at TRU
• Got order from Komatsu and will expand customer base
both domestic and export.
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• May 2014, established a new company “TREX THAIRUNG Co., Ltd.” (TTR), JV with
Kyokuto, Trex and Mitsiam, in order to expand product range especially in commercial
vehicle trucks such as truck body, dump truck and dump full trailer, concrete mixer
truck, refrigerator truck, bulk trailer and etc.
• Locate at Amata City IE, Rayong, total area 53 Rais.
• 4 September 2014 got approval from BOI.
• January 2015 increase the company register capital from 300 MB. to 550 MB.
• Construction of factory completed in May 2015 and start of trial production in
Q3/2015.
Outlook and Direction – Contract Assembly & Painting
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Outlook and Direction – Special Purpose Vehicles
• To develop special purpose vehicles based on pick-up trucks. Focus on niche market segment where automakers do not produce e.g. military vehicles for sale in the domestic market and with the aim of exporting to ASEAN and developing countries
• To expand the market for the TR transformer and have appointed ten new dealers throughout Thailand in the North, Northeast and in the South. And expand own showrooms at Phetkasem and Vibhavadi.
• Lunching the new product “Transformer Max” 7-11 seats vehicles, in Bangkok International Motor Show in April 2015.
• 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.
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Questions &
Answers