August 29th, 2013
AAPICO HITECH PLC [AH]
Ms. Yeap Xin Rhu
Opportunity Day Presentation
The Stock Exchange of Thailand
Financial Performance for the 2nd quarter of 2013
Copyright by AAPICO HITECH PLC 2
Company Profile
Industry Overview
Financial Summary
Events & Activities
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 OEM auto parts,
including floor parts, cross members, pillars, clips,
brackets, fuel tanks, forged and machining parts,
plastic parts, and chassis frame components.
Comprised of 33 companies (24 in Thailand and 9
Overseas).
Registered and paid up capital of Baht 322,583,844,
consist of 322,583,844 ordinary shares at par value
of Baht 1 each.
Major shareholders are the Yeap family holding
approximately 41% and Sojitz Corporation holding
15.75% of total outstanding shares.
Industry/Sector : Auto
Average price : Baht 14.80*
52 weeks range : Baht 13.20 – 35.00
Market Cap : Baht 4,774 million
P/E : 4.74 x
P/BV : 0.91 x
* Data as of August 28th, 2013.
** Preferred shares were converted to ordinary shares
on August 2nd, 2013.
Copyright by AAPICO HITECH PLC 5
Business Segment
The AAPICO Group produces a great variety of automotive parts, including pressed and
stamped parts (e.g. steel fuel tanks and chassis frames), forged and machined parts, and
plastic parts. In addition, the Company also produces car accessories. The majority of dies
and jigs used to manufacture these OEM auto parts are also designed and produced by
AAPICO. Moreover, the non-automotive categories include car dealerships and technology
products such as car navigation system and Enterprise Resource Planning.
Manufacturing Dealership Navigation
Copyright by AAPICO HITECH PLC 6
Manufacturing
Steel Fuel Tank
and Tank Sender
Chassis Frame
Forged Parts and
Machined Parts
Pressed Parts and
Stamping Parts
Plastic Part and
Plastic Fuel Tank
Fuel Line, Brake
Line, Engine Part
Design, Manufacture
and Installation of Jigs
Design and
Manufacture of
Stamping Dies
Door Check,
Brazed Steel
Tubing
Copyright by AAPICO HITECH PLC 7
Car Dealership/Car Navigation
Ford
Dealership
Thailand
100% own
Mitsubishi
Dealership
Thailand
100% own
Hyundai
Dealership
Thailand
30% own
Honda
Dealership
Malaysia
100% own
Car
Navigation
Copyright by AAPICO HITECH PLC 8
AAPICO’s Vision
“AAPICO Group’s Vision is to become a
“Lean” and “Happy” world-class organization
with 4 fundamental values of
Happy Customers,
Happy Employees,
Happy Shareholders and
Happy Public”
Copyright by AAPICO HITECH PLC 9
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 & Happy Organization Where we want to go?
How do you want people to
remember us
Manufacturing
Where we are
AAPICO’s Vision
Copyright by AAPICO HITECH PLC 10
Our OEM Customers
Copyright by AAPICO HITECH PLC 11
Strategic
Shareholder Joint Ventures Technical
Partners
Our Partners
Copyright by AAPICO HITECH PLC 12
Recent Joint Ventures Update
• Manufacturer of door check and door hinges
• Registered capital of Baht 40,000,000
• EDSCHA 51% : AAPICO 49%
• Operations started since May 2013
• Associate company (financials included as from Q2 2013)
EDSCHA
AAPICO
• Development, manufacture, assembly, and sales of
automotive, electronic and computer parts in Thailand and
overseas.
• Registered capital of Baht 40,000,000
• AAPICO 60% : LEMTECH 40%
• Operations started since May 2013
• Subsidiary company (financials included as from Q2 2013)
AAPICO
LEMTECH
Copyright by AAPICO HITECH PLC 13
Recent Joint Ventures Update
• Manufacture of precision press welding parts for cars for
original equipment manufacturers in Thailand
• Registered capital of Baht 200,000,000
• Expected investment around Baht 400-500 million
• SUMINO 51% : AAPICO 49%
• Factory under construction in Amata Nakorn, Chonburi
• Expect operations in 2014.
SUMINO
AAPICO
• Manufacture of chassis cradles for passenger cars, car
cross beams and welded assemblies for BIW
• Registered capital of Baht 120,000,000
• AAPICO 50% : SODECIA 50%
• On process with company registration
AAPICO
SODECIA
Copyright by AAPICO HITECH PLC 14
China
Malaysia
Main operations in Thailand
Global Operations
Copyright by AAPICO HITECH PLC 15
Bangkok
Ayutthaya
Rayong
Chonburi Samutprakan
Factories in Thailand
AA
AF
ASP
AP
AH, AP
AHP
AHT
AITS
AH
AL
Copyright by AAPICO HITECH PLC 16
CHINA
INDIA
ASIA JAPAN
EUROPE AMERICA
Business Strategy
THAI
MSIA
INDO
PHIL
Thailand Car Industry
Copyright by AAPICO HITECH PLC 18
Thailand Car Industry 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
Forecast
Others
Passenger Car
Pick up / PPV
Tom Yum
Kung
Hamburger
Flood
Thailand Car Production Trend 1991–2013 Jun
Unit : Million
Copyright by AAPICO HITECH PLC 19
Thailand Car Production Source: The Federation of Thai Industry (Automotive Industry Club)
Unit : Million
0.2
0.5
0.7
0.9
1.1
1.3
2.4
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
Pick up /
PPV64%
Passenger
Car34%
Others
2%
2012
Pick up / PPV54%
Passenger
Car44%
Others2%
2013
Car production in Jan-Jun
increased from 1,061,297 units in
2012 to 1,340,959 units in 2013,
representing 26.4% growth year-
on-year.
Car Production : Jan-Jun
1,061,297 units
1,340,959 units
Copyright by AAPICO HITECH PLC 20
Thailand Car Production Source: The Federation of Thai Industry (Automotive Industry Club)
Unit : Million
Trend Car Production by month from 2010–2013 Jun
-
50,000
100,000
150,000
200,000
250,000
300,000
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Others
Passenger Car
Pick up / PPV
10.2%
64.5%
Copyright by AAPICO HITECH PLC 21
1-Ton Pick up
44%Passenger
Car48%
Others8%
2013
1-Ton Pick
up50%
Passenger
Car43%
Others7%
2012
Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
Unit : Million
Domestic car sales in Jan-Jun
increased from 606,574 units in
2012 to 740,795 units in 2013,
representing 22.1% growth year-
on-year.
Domestic Car Sales: Jan-Jun
606,574 units
740,795 units
0.1
0.3
0.4
0.5
0.6
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
Copyright by AAPICO HITECH PLC 22
Thailand Domestic Car Sales Source: The Federation of Thai Industry (Automotive Industry Club)
Unit : Million
Trend Domestic Car Sales by month from 2010–2013 Jun
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Others
Passenger Car
1-Ton Pick up
0.1%
69.2%
Copyright by AAPICO HITECH PLC 23
Market updates
The office of Industrial Economics will study the
promotion of the Eco-car production Phase 2, which
car automakers must produce 400,000 units within 8
years.
Prime Minister, Ms. Yingluck Shinawatra, invites
Volkswagen to build eco-cars in Thailand, which has
attractive investment-promotion policies and a strong
automobile industry – The Nation August 24, 2013
Honda laid the foundation stone of its new factory in Rojana Industrial Estate, Prachinburi
with investmentt over Baht 7 billion. This new factory is expected to be completed in mid-
2015 and has production capacity of 120,000 units per year. Including the existing capacity
at Ayutthaya plant, annual production capacity of Honda will reach 400,000 units.
Five automakers in phase 1, Nissan, Honda, Suzuki,
Mitsubishi and Toyota, were required to produce
100,000 units of Eco-cars within 5 years.
Financials 2nd Quarter 2013 Performance
Copyright by AAPICO HITECH PLC 25
Financial Highlights
Copyright by AAPICO HITECH PLC 26
Sales trend by quarter
3,003
3,935 4,303
4,880
4,542
3,902
Q1 Q2 Q3 Q4
2012Q 2013Q
Sales by Quarter
(Unit : Million Baht)
2,831
5,433
8,465
10,356
3,003
6,938
11,241
16,120
4,542
8,445
Q1 Q2 Q3 Q4
2011YTD 2012YTD 2013YTD
Sales Year-to-Date
(Unit : Million Baht)
Copyright by AAPICO HITECH PLC 27
Q2 Sales
3,239
217
478
3,070
235
597
Q2
Thailand China Malaysia
2,815
217 424 478
3,074
221
609 639
2,684
235 386
597
Autoparts TH Autoparts CN Dealers TH Dealers MY
2Q12 1Q13 2Q13
Q2 Sales by countries
(Unit: Million Baht)
Q2 Sales by segment
(Unit: Million Baht)
Copyright by AAPICO HITECH PLC 28
EBITDA by quarter
243
436 478
538 470 422
Q1 Q2 Q3 Q4
2012Q 2013Q
212
375
622
249
243
679
1,157
1,695
470
892
Q1 Q2 Q3 Q4
2011YTD 2012YTD 2013YTD
Earnings before interest, tax,
depreciation year-to-date (Unit: Million Baht)
Earnings before interest, tax,
depreciation by quarter (Unit: Million Baht)
Flood
2011
Copyright by AAPICO HITECH PLC 29
EBIT
Earnings before interest and tax
by quarter (Unit: Million Baht)
Flood
2011
97
271 248
316 289
232
Q1 Q2 Q3 Q4
2012Q 2013Q
265
24
214
17
250
21
Autoparts Dealership
2Q12 1Q13 2Q13
Earnings before interest and tax
In Quarter 2 by segment (Unit: Million Baht)
Copyright by AAPICO HITECH PLC 30
Net Profit
100
276
172
374
284
189
Q1 Q2 Q3 Q4
2012Q 2013Q
Net Profit by quarter
(Unit: Million Baht)
276
189
+3
-39
-43
-7
Q2 2012 EBIT Associates Finance Tax Q2 2013
Net Prof it Higher Lower
Net Profit Bridge Q2’12 vs. Q2’13
(Unit: Million Baht)
Due to lower
insurance settlement
of Baht 60 million
Copyright by AAPICO HITECH PLC 31
Jan-Jun 2013 performance
5,900
406
631
6,753
456
1,236
1H
Thailand China Malaysia
Jan-Jun Sales by countries
(Unit: Million Baht)
5,095
406 805 631
5,758
456
995 1,236
Autoparts TH Autoparts CN Dealers TH Dealers MY
Jan-Jun 2012 Jan-Jun 2013
Jan-Jun Sales by segment
(Unit: Million Baht)
Copyright by AAPICO HITECH PLC 32
Jan-Jun 2013 performance
92 142
281
-392
100
376
548
922
284
473
Q1 Q2 Q3 Q4
2011YTD 2012YTD 2013YTD
Net Profit Year-to-Date
(Unit: Million Baht)
376 473
-34-22
1532
Jan-Jun
2012
EBIT Associates Finance Tax Jan-Jun
2013
Net Prof it Higher Lower
Driven by higher sales
and improved margin
Net Profit Bridge 1H’12 vs. 1H’13
(Unit: Million Baht)
Flood
2011
Copyright by AAPICO HITECH PLC 33
Financial Performance
Sales & Share price trend from 2002 – 2013 Jun
0
5
10
15
20
25
30
35
40
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Unit : Millions Sales & Service Income Share price
Copyright by AAPICO HITECH PLC 34
Customer Profile
Forged
and
Machined
Parts
Plastic
Parts
Press and Stamping Parts
ISUZU57%
AAT9%
NISSAN7%
TOYOTA; 2%
SUMMIT; 1%
HONDA; 1%
KYOKUYO; 1%
CALSONIC; 1%
GM; 1%
Others20%
Jan-Jun2013
AAT26%
GKN25%TRTC
12%
DANA10%
MAGNA9%
AAM6%
TYM4%
Others8%
Jan-Jun2013
AAT37%
TYM15%
FORD10%
JSI8%
TAKAGI5%
HONDA; 5%
TS TECH; 2%
HINO; 3%
Others15%
Jan-Jun2013
Copyright by AAPICO HITECH PLC 35
Utilization : By Factories
Press parts and Assembly Parts
AH – Ayutthaya 85%
AHP – Ayutthaya 85%
AH – Rayong 80%
Forging Parts
AF 80%
Kunshan 65%
Shanghai 95%
Chassis Frames
AA 95%
ASP 95%
Plastic Parts
AP – Bangplee 70%
AP – Rayong 45%
Copyright by AAPICO HITECH PLC 36
Utilization : By Products
No. Products Utilization
1 Press Parts 95%
2 Fuel Tank (Steel) 25%
3 Fuel Tank (Plastic) 65%
4 Pick Up Frames 95%
5 Forging 85%
6 Washer Tank 70%
7 Door Check 85%
8 Brake/Fuel Line 85%
9 Engine Parts 85%
10 Door Sash 95%
11 Jigs 70%
12 Dies 90%
Copyright by AAPICO HITECH PLC 37
Fluctuation of Steel Price
No significant impact on the Company’s financial results since 80% of our material costs
(steel) is under centralized purchasing scheme.
Labor problems
Labor Strike : good welfare and good communication.
Labor shortage : recruiting non-Thai labors (Cambodian, Burmese).
300 Baht daily minimum salary has been implemented.
Foreign Exchange Rate Risk
No significant impact as more than 90% of sales are in local currencies.
Natural Disasters
Financial impact is taken up by insurance coverage.
For flood protection, dyke has been built around the industrial estate.
Major Risk Factors
Events & Activities
Copyright by AAPICO HITECH PLC 39
EGM No.1/2013
Place: Professor Sangvien Indaravijaya Auditorium, SET
Date: July 29th, 2013 / Time: 14:30 – 14:50
Copyright by AAPICO HITECH PLC 40
Sumino AAPICO Foundation Stone laying
Place: Sumino AAPICO (Thailand) Co., Ltd,
Amata Nakorn, Chonburi
Date: August 23rd, 2013
Copyright by AAPICO HITECH PLC 41
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
Copyright by AAPICO HITECH PLC 42
Copyright by AAPICO HITECH PLC.
Copyright by AAPICO HITECH PLC 43
Thailand Car Industry
-
50,000
100,000
150,000
200,000
250,000
300,000
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Jul
Aug
Sep
Oct
No
v
Dec
Jan
Feb
Mar
Ap
r
May
Jun
Production Domestic Export
Source: The Federation of Thai Industry (Automotive Industry Club) Unit : Million
Trend Car Industry by month from 2010–2013 Jun
2010 2011 2012 2013
Copyright by AAPICO HITECH PLC 44
Financial Performance
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Oct 0
2
Ja
n 0
3
Ap
r 0
3
Ju
l 03
Oct 0
3
Ja
n 0
4
Ap
r 0
4
Ju
l 04
Oct 0
4
Ja
n 0
5
Ap
r 0
5
Ju
l 05
Oct 0
5
Ja
n 0
6
Ap
r 0
6
Ju
l 06
Oct 0
6
Ja
n 0
7
Ap
r 0
7
Ju
l 07
Oct 0
7
Ja
n 0
8
Ap
r 0
8
Ju
l 08
Oct 0
8
Ja
n 0
9
Ap
r 0
9
Ju
l 09
Oct 0
9
Ja
n 1
0
Ap
r 1
0
Ju
l 10
Oct 1
0
Ja
n 1
1
Ap
r 1
1
Ju
l 11
Oct 1
1
Ja
n 1
2
Ap
r 1
2
Ju
l 12
Oct 1
2
Ja
n 1
3
Ap
r 1
3
AH Index1 SET Index2
AH Share price versus SET Index from Oct 2002 – Jun 2013*
1 AH Index : 100 base = price as end of Oct 2002 2 SET Index : 100 base = price as end of Apr 1975
Copyright by AAPICO HITECH PLC 45
Milestones
1985 Registered
Able Autoparts
Industries Co.,
Ltd and started
as the Ford
Assembler and
Distributor
1995 Signed technical
agreement with
Keylex Japan to
produce fuel tanks for
Ford and Mazda pick
ups.
1997 Completed factory
in Hitech Industrial
Estate, Ayutthaya.
Establish 1st
Japanese JV with
Sanoh Japan
2002 Full operation,
545 employees.
List on the SET
2003 Purchased Parish
Structural
Products from
Dana Corp., USA
and renamed
AAPICO Amata.
2004 Expanded to China by
acquiring Kunshan
Chaitai-Xincheng
Precision Forging.
Establish JV with Fischer
Tech, a plastic injection
manufacturing company.
2005 Establish strategic
partnership with
Sojitz Corp., Japan.
Established
AAPICO Shanghai.
2006 Acquired 60% of
Able ITS, a car
navigation system
company.
Establish JV with
Mitsuike Japan.
Establish AAPICO
Hitech Parts.
2007 Acquired KPN PLC and
renamed AAPICO Forging.
Signed technical
agreement with Edscha
and Kautex, Germany.
2008 Establish JV
with Minth
Corp, China.
Construct 3
new factories
for AAPICO
Hitech,
AAPICO
Plastics and
Minth
AAPICO.
2010 Establish JV with
Thai Takagi Seiko.
AAPICO 25th
Anniversary
2009 Establish AAPICO
Structural Products.
2011 Acquire 49% of
AAPICO ITS (MY)
Completed 3S
Honda Showroom
Flood 2011.
2012 Kunshan
new factory
started
operation.
Copyright by AAPICO HITECH PLC 46
Dividend payment
The Board of Directors has agreed to
resolve to pay interim dividend for
the performance of the first half of
2013 at the rate of Baht 0.35 per
share. The record date will be on
August 29th, 2013 and the closing
date is on August 30th, 2013.
Dividend will be paid on September
12nd, 2013.
The dividend policy of the Company
is to pay of not less than 10% of the
Company’s net profit after tax.
Dividend payment decision is also be
subjected to future investment plan
and other necessities as the
Company deems appropriate in the
future.
0.26 0.21 0.16 0 0.488 0.45 0.35
40.6%
30.7% 31.1%
0.0%
35.1%
22.2%24.2%
1H 2010 2H2010 1H 2011 2H 2011 1H 2012 2H 2012 1H 2013
Dividend per share Dividend payout % of prof it
Dividend Payment in the past 3 years
(Unit: Baht per share or in percentage)
Flood
2011