1. business and industrial
2. company
3. earnings

The Stock Exchange of Thailand
OPPORTUNITY DAY
AAPICO HITECH PLC [AH]
Ms. Yeap Xin Rhu
March 13, 2015
Agenda
1.
Company Profile
2.
Industry Overview
3.
Financial Performance
4.
Strategy and Direction
3
Company Profile [AH]
AAPICO HITECH PUBLIC COMPANY LIMITED
• Established in 1996 and listed on SET in 2002.
Industry/Sector
: Auto
Current price
: Baht 15.20*
52 weeks range
: Baht 12.80 – 17.20
Market Cap
: Baht 4,871 million
P/E (YTD)
: 14.46*
P/BV
: 0.89x
Dividend yield
: 3.25%
* Data as of March 2, 2015
• Main businesses are the manufacturing of
automobile parts, design, produce and install
assembly jigs and stamping dies, as well as
car dealership and car navigation businesses.
• Operations in Thailand, Malaysia and China,
comprising of 40 companies (29 subsidiaries
and 11 associates).
• Registered and paid-up capital of Baht 322.58
million, comprised of 322,583,844 ordinary
shares at par value of Baht 1 each.
4
Shareholding Structure
Yeap
Family
39.8%
Sojitz
Corp.
15.8%
AH’s main shareholders are Mr. Yeap Swee Chuan
and family holding 39.81% of total outstanding
shares and Sojitz Corporation holding
15.76% of total outstanding shares.
Freefloat
44.4%
Thai
institutions
14.9%
Thai
81.8%
* Data as of December 28, 2014
Foreign
institutions
Foreign 3.0%
0.2%
5
Company Milestones
1985
Started as Ford Assembler and
Distributor.
1995
Produced fuel tanks for Ford
and Mazda pick ups.
1997
Established 1st JV with Sanoh
Japan and a factory in Hitech
Industrial Estate, Ayutthaya.
2002
2004
Expanded to China with Kunshan
Chaitai-Xincheng Precision
Forging acquisition.
2005
Strategic partnership with Sojitz
Corp., Japan
2006
Acquired Able ITS and set up
AAPICO Hitech Parts
2007
2009
Established AAPICO Structural
Products.
2010
AAPICO 25th Anniversary and
established JV with Thai Takagi
Seiko.
2011
Completed Honda 3S showroom
in Malaysia.
Listed on SET.
Acquired KPN and renamed
AAPICO Forging.
2012
2003
2008
2013
Purchased AAPICO Amata from
Dana Corp., USA.
Established JV with Minth Corp.,
China.
6
Kunshan new factory in operation.
Establish 4 JVs with Lemtech,
Edscha, Sumino and Sodecia.
Major events in 2014
The Grand Opening of
Sumino AAPICO
(Thailand) Co., Ltd.
Factory in Amata Nakorn
Industrial Estate in
Chonburi on October 31,
2014
Establish AAPICO Training
Center Co., Ltd. to
manage training activities
for the AAPICO Group.
Invest in Quantum
Inventions Pte. Ltd. to
expand car navigation
business towards the
Smart City Solutions.
7
AAPICO’s Vision
Where do we want to go?
How do we want people to remember us?
MANUFACTURING
RESEARCH & DEVELOPMENT
CAR RETAILING
Happy Customers
S – Safety
Q – Quality
C – Cost
D – Delivery
E – Engineering
M - Management
LEAN, GREEN AND HAPPY
WORLD-CLASS CORPORATION
Happy Employees
Happy Shareholders
Profitability
Reasonable Dividend
Teamwork
Look at problems
as opportunities
Love Family, Company
and Country
Loyalty and Honesty
Mutual Respect
8
Happy Public
Corporate Social
Responsibility
Business Segments
Stamping
Assembly
Manufacturing of Automotive Parts
Forging
Dies &
Machining
Jigs
Navigation
Data Analytics
Telematics
AAPICO
GROUP
Plastic
Car Dealerships
9
Global Operations
CHINA
Sales by Country
Production: 2 factories
Process: Forged & Machined parts
Products: Connecting rods
2014
5%
6%
17% 12%5%
2014
26%
Malaysia
83%
77%
TH
MY
CN
2014,
69%
Productions: 6 companies
Process: Car dealership & Navigation
Products: Honda, POWERMAP
10
Locations in Thailand
Production : 5 factories
Products : Stamping Dies,
Jigs, and Stamping parts, and
Car navigation
Production : 3 factories
Products : Chassis Frames,
Forged and machined parts.
Ayutthaya
Bangkok
Chonburi
Samutprakan
Rayong
Mitsubishi Dealers:
Ramindra
Navanakorn
Ford Dealers:
Ladprao
Samutprakarn
Production :1 factory
Products : Plastic parts
11
Production : 2 factories
Products : Stamping parts
and Plastic parts
Our Partners
Strategic
Shareholder
Joint Ventures
12
Technical
Partners
Our OEM Customers
Top OEM Customer Profile
OTHERS PARTS
26%
TOYOTA
3%
SGMW 2
4%
NISSAN
8%
Jan-Dec
201 4
ISUZU
45%
AAT 1
1 4%
1. Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.
2. SAIC-GM-Wulling Automobile – a JV between SAIC, GM and Liuzhou Wuling, based in China.
13
Awards & Achievements in 2014
Q1 Award
by Auto Alliance (AAT)
Quality : Zero PPM
Delivery : 100% on-time
Continually improvement
14
Awards & Achievements in 2014
Recognition of Excellent Culture &
Strategic Support
by General Motors (GM)
15
Awards & Achievements in 2014
TPS “The Winner” in advance group
by Toyota Motor Asia Pacific (TMAP-EM)
16
Awards & Achievements in 2014
2014 Top Sales Award
2014 Best Sales Growth Award
by Honda Malaysia for Tenaga Setia Resources
17
Awards & Achievements in 2014
Certificates from Government Officials
18
Agenda
1.
Company Profile
2.
Industry Overview
3.
Financial Performance
4.
Strategy and Direction
25
Revenues & Net Profit
Unit: Million Baht
Total Revenues
22,000
1 7,000
1 2,000
Global
Financial
Crisis
Net Profit
16,998
16,811
15,196
Flood
11,758
10,786
9,513
7,366
7,000
2,000
(116)
(3,000)
2008
927
394
230
2009
634
386
(392)
201 0
201 1
201 2
201 3
201 4
Net Profit %
2.4%
-1.6%
3.4%
-3.6%
5.5%
3.7%
2.5%
Sales Growth%
-2%
-23%
+60%
-8%
+56%
+1%
-11%
Note: 2013 results included Bt.903 m. insurance income and Bt.852 m. impairment loss; 2012 results included Bt.145 m. insurance income.
26
Financial Highlights
2012
2013
2014
Revenues
16,811
16,998
15,196
Growth%
+56%
+1%
-11%
GM
1,062
1,075
608
GM%
6.6%
6.9%
4.2%
SG&A
822
859
744
Associate
323
246
129
Int. & Tax
327
347
231
Net Profit
927
634
386
5.5%
3.7%
2.5%
ROE (%)
20.4%
12.1%
6.9%
• Interest and tax expenses declined, due to
lower debt and lower taxable income.
ROA (%)
7.3%
4.8%
3.1%
D/E (x)
1.07
0.85
0.67
• Net profit of the company decreased from
3.7% in 2013 to 2.5% in 2014.
In Million
Baht
NP%
FY 2014 Results
• Revenues decreased 11% year-on-year,
lower than the industry decline at 23.5%,
thanks to growth in Malaysia dealerships.
• Gross margin % decreased to 4.2%, mainly
due to increases of sales in car dealerships
and high level of fixed costs.
• SG&A decreased y-o-y, driven by strict cost
control in automotive parts segment.
• Income from associates was lower than last
year, as impacted by the market slowdown
and start-up costs in recent JVs.
27
Total Revenues : AAPICO Group
Unit: Million Baht
Auto Parts
6,000
5,028
4,561
5,000
4,000
Dealers
4,049
Other income
4,685
4,047 3,927
4,338
3,692
3,173
Insurance
3,869 4,039
3,597
Auto Parts
2014,
2013,
2012,
38%
29%
3,000
2,000
Dealers
21%
2014,
2012, 2013,
79% 71% 62%
1,000
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
 Excl. insurance income in 2013, total
revenues in 2014 were 5.6% lower than
last year, largely due to the slowdown of
automotive market in Thailand. However,
 Compared to Q3’14, revenues dropped by 11%,
the decline was less than industry, thanks
as Q3 included project sales of Baht 200 million.
to growth in Malaysia car dealerships.
 Q4 Revenues increased 4% compared to Q4’13
(excl. insurance income). Auto parts and car
dealerships grew 3.0% and 5.3% respectively.
28
Performance : Automobile Parts
Unit: Million Baht
Sales
14,000
EBIT
11,061
12,000
9,074
10,000
8,000
6,000
2,469 3,032 2,943
4,000
2,000
3,559 3,295
2,919 2,708
2,139 2,336 2,086 2,487 2,165
653
378
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
CN
8%
TH
92%
Jan-Dec 201 4
2013 2014
 For the year 2014, auto parts sales decreased 18.0% y-o-y, compared
to the industry decline of 23.5%. For Q4’14, sales were slightly above
Q4’13 but were 12.9% below Q3’14, mainly due to project sales
recorded in Q3’14.
 EBIT for the year 2014 decreased by 42% y-o-y, largely due to lower
sales. As percentage of sales, EBIT margin dropped from 5.9% to
4.2% in 2014.
29
Performance : Car Dealerships
Unit: Million Baht
Sales
EBIT
7,000
5,498
6,000
4,566
5,000
4,000
3,000
2,000
1,000
902
534
1,361 1,320 1,248
983
1,104 1,231 1,238
1,548 1,416 1,296
82
110
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
TH
32%
MY
68%
Jan-Dec 201 4
2013 2014
 Car dealerships posted a good growth at 20.4% compared to 2013,
driven by growth in Malaysia at 38.6% y-o-y. Thailand sales were 5.8%
lower than last year, due to the slowdown of market and impact of
political unrest in early 2014.
 EBIT for the year 2014 increased Baht 28 million y-o-y, driven by
higher sales. As a percentage of sales, EBIT margin also improved
from 1.8% in 2013 to 2.0% in 2014.
30
EBITDA
Unit: Million Baht or as % of revenues
EBIT
1,800
Insurance/Impairment
Depreciation
1,501
1,500
1,213
1,200
900
600
300
243
436
478
538
470
422
334
274
341
305
307
260
-
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
EBIT%
16.0%
10.8% 10.5% 10.7%
10.0% 10.4%
12.0%
8.0%
7.7%
4.5%
4.0%
2.1%
5.4%
5.8%
6.2%
5.0%
2013 2014
EBITDA%
9.2%
8.5%
6.3%
4.4%
3.7%
1.1%
7.9%
7.6%
3.3%
3.2%
7.2%
8.8%
4.0%
1.8%
8.0%
3.2%
0.0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
31
2013 2014
Net Profit
Unit: Million Baht or as % of revenues
Net Profit (Core)
800
Associate Income
Insurance/Impairment
634
600
400
200
386
377
284
276
189
174
100
154
150
107
11
92
33
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Net Profit%
12.0%
9.0%
6.0%
Net Profit% (excl. insurance/impairment)
7.5%
6.8%
3.2%
2013 2014
6.1%
3.8%
4.7%
4.2%
3.8%
2.8%
3.0%
0.3%
3.7%
2.3%
2.5%
0.9%
0.0%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
32
2013 2014
Return on Equity
ROE (In the Quarter)
ROE (Seasonally adjusted)
60%
40%
20%
0%
20.4% 21 .4% 1 9.1 % 1 8.5%
9.0% 7.1 % 8.0%
-9.5% -9.1 %
-3.5% -2.7%
1 2.2% 9.0% 7.5%
6.4% 6.9%
-20%
-40%
-60%
-80%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
 Return on Equity (ROE) as of Q4’14 was 6.9%, compared to 12.2% as of Q4’13. The
lower percentage was due to lower earnings as a results of lower sales from the
slowdown of the automotive market in Thailand.
33
Return on Assets
ROA (In the Quarter)
ROA (Seasonally adjusted)
30%
20%
10%
0%
3.6% 2.8% 3.0%
7.3% 8.0% 7.4% 7.6%
-0.9%
-3.4% -2.9% -1 .1 %
4.8% 4.0% 3.3% 3.0% 3.1 %
-10%
-20%
-30%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
 Return on Asset (ROA) as of Q4’14 improved slightly from last quarter to 3.1%.
Compared to ROA of 4.8% as of Q4’13, lower profit was the main reason of the ratio
decline.
34
Interest Coverage Ratio
Interest Coverage Ratio (In the Quarter)
Interest Coverage Ratio (Seasonally adjusted)
10.0
5.0
0.0
3.80
3.1 6
4.34
3.30
(0.25) (0.26)
0.61
5.00
4.77
4.69
3.59
3.1 7
2.94
2.87
2.96
0.70
-5.0
-10.0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
 Interest Coverage Ratio as of Q4’14 was at 2.96x, compared to 3.59x as of Q4’13 and
2.96x as of Q3’14. The ratio decline was mainly due to decreases of profit, which was
more than lower financing costs.
35
Capital Structure
Unit: Million Baht
Net interest-bearing debt to equity ratio as end of Dec’14
was at 0.67x, in line with the plan to reduce bank loans.
Total debt to equity ratio as of Dec’14 was 1.07x compared
to 1.25x as of Dec’13.
Interest-bearing Debt
Longterm
50%
Short
-term
19%
CPLTD
31%
Cash & Current Inv.
Equity
D/E
(L-C)/E
6,000
2.0
1.72
5,000
4,000
Total bank debt decreased
Baht 829 million, during
2014 to Baht 3.8 billion as
of Dec’14, compared to
Baht 4.6 billion as of
Dec’13.
Debt
3,000
1.74
1.64
1.36
1.20
0.93
1.07
1.00
1.52
0.97
1.6
1.41
0.91
1.25
0.85
2,000
1.23
0.78
1.18
0.77
1.12
1.07
0.67
0.67
1.2
0.8
0.4
1,000
-
2010
2011
4Q12
36
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
Capital expenditures
1,800
1,600
1,400
Capex
CAPEX (Annual)
Capital expenditures for property, plant and
equipments for the year 2014 were at a
total amount of Baht 460 million, compared
to Baht 734 million in 2013.
1,649
1,200
1,000
1,145
1,237
800
600
In 2014, investments were mainly in
machinery and factory equipment and
building improvements. This was in line
with the investment plan for the year.
734
400
460
200
2010
300
2011
2012
2013
CAPEX (Quarter)
2014
Capex
In Q4’14, capital expenditures decreased
from Q3’14 to Baht 73 million, and was
lower than capex at Baht 243 million in
Q4’13.
250
243
200
150
100
50
167
197
181
157
143
34
73
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
37
Agenda
1.
Company Profile
2.
Industry Overview
3.
Financial Performance
4.
Strategy and Direction
38
Thailand Automotive Outlook
Production
Forecast
Domestic
Export
3.5
3.0
2.8
2.5
2.0
Global
Financial
Crisis
1.5
0.5
0.5
0.6
0.8
0.9
1.1
1.2
1.3
2.5
Flood
1.6
1.0
0.0
2.5
1.4
2.2
2.4
3.0
2.5
1.9
1.5
1.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
 The forecasted vehicle production volume for 2015 is expected to grow year-onyear around 10%, reaching the volume of around 2.2 million units, with domestic
sales of 900,000-950,000 units and export volume of 1.2-1.3 million units.
Source: The Federation of Thai Industry (Automotive Industry Club)
39
Business Strategy
THAILAND
MALAYSIA
INDONESIA
PHILLIPPINES
CHINA
To be a leading
automobile parts
manufacturer in
Asia, a Thailand
footprint for
world-class global
manufacturer.
JAPAN
AMERICA
ASIA
INDIA
EUROPE
40
Finance Strategy
Shareholder portfolio
and generate return
to shareholders
Equity
Profitability
Improve profitability
through margin
management
Maximize
shareholder
value
Portfolio
diversification
Liquidity
41
Cash flow
management
Disclaimer
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
[email protected]
Tel: 66 (0) 2613-1504
42