May 29th, 2014
AAPICO HITECH PLC [AH]
Ms. Yeap Xin Rhu
Opportunity Day Presentation
The Stock Exchange of Thailand
Financial Performance for the 1st quarter of 2014
Copyright by AAPICO HITECH PLC 2
Company Profile
Industry Overview
Financial Summary
Appendices
Today’s Agenda
Company Overview
Copyright by AAPICO HITECH PLC 4
Company Profile
AAPICO HITECH PUBLIC COMPANY LIMITED
[AH]
Founded in 1996 and listed on SET in 2002.
Main businesses are to design, produce and install
assembly jigs, stamping dies, and manufacture of
automobile parts as well as car dealership and car
navigation businesses.
Comprised of 35 companies (26 in Thailand and 9
Overseas).
Registered and paid up capital of Baht 322,583,844
(par value of Baht 1 each)**.
Major shareholders are the Yeap family (~40%) and
Sojitz Corporation (15.76%).
Industry/Sector : Auto
Average price : Baht 14.90*
52 weeks range : Baht 12.80 – 28.00
Market Cap : Baht 4,806 million
P/E (YTD) : 9.91x*
P/BV : 0.89x
* Data as of May 19th, 2014.
** Preferred shares were converted to ordinary shares
on August 2nd, 2013.
Copyright by AAPICO HITECH PLC 5
AAPICO’s Vision
“AAPICO Group’s Vision is to become a
“Lean, Green and Happy” world-class
organization with 4 fundamental values of
Happy Customers,
Happy Employees,
Happy Shareholders and
Happy Public”
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HAPPY CUSTOMERS
D – Delivery
E – Engineering
M – Good Management
S – Safety
Q – Quality
C – Cost
HAPPY PUBLIC HAPPY SHAREHOLDERS
Profitability Corporate Social Responsibility
Teamwork
Look at problems as opportunities
Love Family, Company and Country
HAPPY EMPLOYEES
Loyalty and Honesty
Mutual Respect
Lean, Green & Happy Organization
Where we want to go?
How do you want people to
remember us?
Manufacturing
Where we are
AAPICO’s Vision
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The AAPICO products can be grouped into 3 main
segments as follow:
AAPICO’s Group Structure
Manufacturing
Dealership
Navigation
Copyright by AAPICO HITECH PLC 8
STAMPING DIES
ASSEMBLY JIGS
Business Segment
• Manufacture of OEM auto parts
products
• Design and manufacture
assembly jigs and stamping
dies (Project base)
Manufacturing
Copyright by AAPICO HITECH PLC 9
Business Segment
Dealership
Ford Dealers
Thailand
Mitsubishi Dealers
Thailand
Honda Dealers
Malaysia
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Business Segment
Navigation
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China
Malaysia
Main
operations
in Thailand
Global Operations
73%
22%
5%
Sales by country*
TH MY CN
*Jan-Mar 2014
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Bangkok
Ayutthaya
Rayong
Chonburi Samutprakan
Locations in Thailand
Production : 5 factories
Products : Stamping Dies,
Jigs, and Pressed parts,
and Car navigation system
Production : 3 factories
Products : Chassis
Frames, Forged and
machined parts.
Production :1 factory
Products : Plastic
parts
Production : 2 factories
Products : Stamping
OEM auto parts and
Plastic parts
Mitsubishi
Dealers:
Ramindra
Navanakorn
Ford Dealers:
Ladprao
Samutprakarn
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Strategic
Shareholder Joint Ventures Technical
Partners
Our Partners
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Our OEM Customers
Top Customer Profile
ISUZU
AAT1
NISSAN
SGMW2
TOYOTA
OTHERS -PARTS
Jan-Mar2014
1. Auto Alliance (Thailand) Co., Ltd – a joint venture between Ford and Mazda.
2. SAIC-GM-Wulling Automobile – a joint venture between SAIC, GM and Liuzhou
Wuling , based in China.
Thailand Car Industry
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Thailand Automotive Production
0.16 0.17 0.25 0.30 0.28 0.30 0.32 0.40 0.310.55 0.54
0.96 1.07
0.21
0.29 0.380.47
0.600.82 0.87 0.95
0.97
0.67
1.070.90
1.45 1.33
0.31
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thailand Vehicle Production 2001 - 2014
Forecast Others 1-Ton Pick up / PPV Passenger Car
Source: The Federation of Thai Industry (Automotive Industry Club)
Thailand vehicle production volume in the first 3 months of 2014 was 517,492 units,
of which primarily are production of 1-Ton Pick up/PPV at 306,432 units and
production of passenger car at 205,041 units.
Hamburger
Flood
Unit: Million
Copyright by AAPICO HITECH PLC 17
Thailand Automotive Production Source: The Federation of Thai Industry (Automotive Industry Club)
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Others
Passenger Car
Pick up / PPV
-28.3% 44.5%
Flood
2011
Compared to Q4 2013, total vehicle production volume declined slightly by 1.8%
and was 28.3% lower than the production volume in Q1 2013.
Unit: Million
Copyright by AAPICO HITECH PLC 18
Thailand Automotive Production Source: The Federation of Thai Industry (Automotive Industry Club)
Vehicle Production Q1’13 vs. Q1’14
Q1'1352.9%Q1'13
45.2%
Q1'131.9%
Q1'14Pick up
/ PPV59.2%
Q1'14Passse
nger Car
39.6%
Q1'14Others
1.2%
The lower vehicle production volume
compared to Q1 2013 was more on
passenger cars than pick-up/PPV, as
last year was favorably impacted by the
government policy on Eco-cars.
0.2
0.5
0.70.9
1.1
1.31.5
1.71.9
2.12.3
2.5
0.20.3
0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012 2013 2014
Unit: Million
Copyright by AAPICO HITECH PLC 19
Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
0.10 0.13 0.18 0.21 0.19 0.19 0.17 0.23 0.230.35 0.36
0.67 0.63
0.09
0.170.24
0.310.37 0.47 0.45
0.41 0.33 0.28
0.39 0.37
0.670.59
0.11
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thailand Domestic Car Sales 2001 - 2014
Forecast Others 1-Ton Pick up/PPV Passenger Car
Thailand domestic car sales in the first 3 months were 224,171 units, of which the
sales of 1-Ton pick-up/PPV were 111,019 units and passenger car sales were
90,285 units.
Hamburger
Flood
Unit: Million
Copyright by AAPICO HITECH PLC 20
Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
0.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
0.4
0.5
0.5
Q1 '10
Q2 '10
Q3 '10
Q4 '10
Q1 '11
Q2 '11
Q3 '11
Q4 '11
Q1 '12
Q2 '12
Q3 '12
Q4 '12
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Others
Passenger Car
Pick up / PPV
-45.3% 48.0%
Flood
2011
Compared to Q1 2013, sales declined by 45.3%, largely attributable to passenger
car sales decline where sales decreases were visible in all OEMs.
Unit: Million
Copyright by AAPICO HITECH PLC 21
Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
Domestic Car Sales Q1’13 vs. Q1’14
Q1'1342.7%
Q1'1348.9%
Q1'138.4% Q1'14
1-Ton
Pick up49.5%
Q1'14Passen
ger Car40.3%
Q1'14Others
10.2%
Compared to Q1 2013, passenger car
sales dropped by 55%, as last year’s
sales were supported by the Eco-car
campaign. Sales of 1-Ton pick-up/PPV
declined by 37.1%.
0.1
0.3
0.4
0.5
0.6
0.70.8
0.91.0
1.11.2
1.3
0.10.1
0.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2011 2012 2013 2014
Unit: Million
Copyright by AAPICO HITECH PLC 22
Thailand Export Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
0.18 0.180.24
0.33
0.44
0.54
0.690.78
0.54
0.90
0.74
1.03
1.13
0.29
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thailand Export Car Units 2001 - 2014
Forecast Export Units
Albeit lower domestic car sales, export volume increased by 1.2% year-on-year,
from 287,918 units in Q1 2013 to 291,509 units in Q1 2014.
Hamburger
Flood
Unit: Million
Financials Performance for the 1st quarter
of the fiscal year 2014
Copyright by AAPICO HITECH PLC 24
9,513
7,366
11,758 10,786
16,811 16,998
4,685 3,692
230
(116)
394
(392)
927 634 284 154
(3,000)
2,000
7,000
12,000
17,000
22,000
2008 2009 2010 2011 2012 2013 3M13 3M14
Total Revenues Net Profit
Revenues & Net Profit Overview Unit : Million Baht
Net Profit % 2.4% -1.6% 3.4% -3.6% 5.5% 3.7% 6.1% 4.2%
Sales Growth% -2% -23% +60% -8% +56% +1% +48% -21%
Note: 2013 results included Bt.903 m. insurance income and Bt.852 m. impairment loss; 2012 results included Bt.145 m. insurance income.
Hamburger
Flood
Copyright by AAPICO HITECH PLC 25
Auto Parts63%
Dealers34%
Other income
3%
Jan-Mar 2014
3,173
4,049
4,561 5,028
4,685
4,047 3,927 4,338
3,692
4,685
3,692
-
1,000
2,000
3,000
4,000
5,000
6,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14
Auto Parts Dealers Other income Insurance
Total Revenues : Group Unit : Million Baht
Q1 Revenues declined 21.2% compared to
last year, largely due to the slowdown of
automotive industry and the on-going
political instability in Thailand.
Compared to Q4’13, sales exclude insurance
increased by 7%, which were visible in both
the manufacture of automobile parts segment
and car dealership segment, despite the
industry decline by 2%.
Copyright by AAPICO HITECH PLC 26
2,469 3,032 2,943
3,559 3,295
2,919 2,708 2,139 2,336
3,295
2,336
265 127
-
1,000
2,000
3,000
4,000
5,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14
Auto Parts EBIT
Total Revenues : Auto Parts
Auto Parts sales in Q1’14 declined by 29.1% compared to
Q1’13, in line with the slowdown of automotive industry.
Sales decline were seen in both Thailand and China.
EBIT decreased Baht 138 million compared to Q1’13, due
to lower sales. As percentage of sales, EBIT margin
dropped from 8.0% in Q1’13 to 5.4% in Q1’14.
Unit : Million Baht
TH92%
CN8%
Jan-Mar '14
Copyright by AAPICO HITECH PLC 27
Total Revenues : Dealership
Car Dealership sales in Q1’14 were about the same level
as Q1’13 at Baht 1.2 billion. The solid growth in Malaysia
(+24.3%) compensated the slowdown of automobile
market in Thailand.
Compared to Q1’13, EBIT margin as percentage of sales
improved by 1%, from 1.9% to 2.9% of sales in Q1’14.
Unit : Million Baht
534
902
1,361 1,320 1,248
983 1,104
1,231 1,238 1,248 1,238
24 36
-
500
1,000
1,500
2,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14
Dealership EBIT
TH36%
MY64%
Jan-Mar '14
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6.7%8.5%
10.5% 10.2% 10.0% 9.7%8.5%
5.8%
9.2%10.0%
9.2%
0%
5%
10%
15%
-
500
1,000
1,500
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14
One-off
Depre
EBIT
EBITDA%
EBITDA%*
100
276
174
377 284
189 150
11
154
284
154
2.2%
4.6% 3.8%
7.0%6.1%
3.9% 3.8%
-0.2%
4.2%
6.1%
4.2%
-2%
0%
2%
4%
6%
8%
10%
-
200
400
600
800
1,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 3M13 3M14
One-off
Net Profit
Net Profit%
Net Profit%*
EBITDA & Net Profit Unit : Million Baht
* dotted line refers to profit
excludes adjustments.
* dotted line refers to profit
excludes adjustments.
Copyright by AAPICO HITECH PLC 29
9.0% 7.1% 8.0%
-9.5% -9.1%-3.5% -2.7%
18.7% 21.4% 19.1% 18.5%11.6% 9.0%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
ROE (In the Quarter) ROE (Seasonally adjusted)
Return on Equity
Note: ROE (Seasonally adjusted) = Net income of the last 4 quarters (rolling ) / Total Equity
Flood 2011
Return on Equity (ROE) decreased from 21.4% in Q1’13 to 9.0% in Q1’14, which was
about the same level as in 2011 before flood. The year-on-year ROE decline was due
to lower profit (-55%), following the slowdown of industry.
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Return on Asset
Note: ROA (Seasonally adjusted) = Net income of the last 4 quarters (rolling ) / Total Assets
3.6% 2.8% 3.0%
-3.4% -2.9% -1.1% -0.9%
6.7% 8.0% 7.4% 7.6%5.0% 4.0%
-30%
-20%
-10%
0%
10%
20%
30%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
ROA (In the Quarter) ROA (Seasonally adjusted)
Flood 2011
Return on Asset (ROA) as of Q1’14 was 4.0%, which was 50% decline from 8.0% in
Q1’13, due to lower profit following the slowdown of automotive industry.
Copyright by AAPICO HITECH PLC 31
Interest Coverage Ratio
Note: Interest Coverage Ratio (Seasonally adjusted) = EBIT of the last 4 quarters / Interest of the last 4 quarters (rolling)
3.80 3.16 3.30
(0.25) (0.26)0.61 0.70
4.34 5.00 4.77 4.69 3.59 3.17
-10.0
-5.0
0.0
5.0
10.0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Interest Coverage Ratio (In the Quarter) Interest Coverage Ratio (Seasonally adjusted)
Flood 2011
Interest Coverage Ratio as of Q1’14 was 3.17 compared to 5.00 in Q1’13. The ratio
decline was primarily due to lower profit, which has decreased more than reduction of
interest expenses.
Copyright by AAPICO HITECH PLC 32
Capital Structure
Net interest-bearing debt to equity as end of Mar’14 further
decreased to 0.78x, compared to 1.00x in Q1’13 and 0.85x in
Q4’13, mainly attributable to loan repayment.
0.93
1.20 1.25 1.19 1.24 1.07 1.00 0.97 0.91 0.85 0.78
1.36
1.72
2.06 1.99 2.00
1.74 1.64
1.52 1.41
1.25 1.23
-
0.5
1.0
1.5
2.0
2.5
-
1,000
2,000
3,000
4,000
5,000
6,000
2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
Cash & Current Inv. Debt Equity D/E (L-C)/E
Total bank loan as end of
Mar’14 was Baht 4,354
million, which was a Baht
271 million decline in Q1’14
due to repayment of long-
term loan.
Interest-bearing Debt
Short-term24%
CP-LTD37%
Long-term39%
Unit : Million Baht
Going Forward
Copyright by AAPICO HITECH PLC 34
CHINA
INDIA
ASIA JAPAN
EUROPE AMERICA
Business Strategy
THAI
MSIA
INDO
PHIL
Copyright by AAPICO HITECH PLC 35
Thailand Automotive Overview Source: The Federation of Thai Industry (Automotive Industry Club)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Production Domestic Export
Hamburger
Flood
Unit: Million
2014 is expected to be a challenging year with forecasted vehicle production
volume of about 2.2 million units.
Copyright by AAPICO HITECH PLC 36
Some statements made in this material are forward-looking statements with the relevant assumptions,
which are subjected to various risks and uncertainties. These include statements with respect to our
corporate plans, strategies, and beliefs and other statements that are not historical facts. These
statements can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”,
“anticipate”, “intend”, “estimate”, “continue”, “plan” or other similar words.
The statements are based on our management’s assumptions and beliefs in light of the information
currently available to us. These assumptions involve risks and uncertainties which may cause the actual
results, performance or achievements to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Please note that the company
and executives/staffs do not control and cannot guarantee the relevance, timeliness, or accuracy of these
statements.
AAPICO HITECH PLC
Tel: 66 (0) 2613-1504
Disclaimer
THANK YOU
Lean, Green and Happy Company
AAPICO HITECH PLC 37
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