1
Somboon Advance Technology PCL
Opportunity Day
1Q2021June 10, 2021
Automotive Industry Overview
2
Tractor Industry Overview
Sale and Financial Highlights
2021 Capex and Guidance
Company Overview
3
Company Overview
4
SAT
Paid up 425 million Baht
ICP SBM BSKSFT
Tsuchiyoshi Somboon
Coated Sand Yamada Somboon
Nisshinbo Somboon Automotive
Somboon Somic Manufacturing
21.25%
20.00%
2.90%
1.80%
1. Somboon Holding Co.,Ltd. & Kitaphanich
Family (44%)
2. Others (56%)
As of March 4, 2021
99.99% 99.99% 99.99% 99.99%
MubeaSomboon
Automotive(MSA)
50.00%
Nippon Kikai Engineering (NKE)
50.00%
SomboonSiasun Tech
(SST)
51.00%
5
Samutprakan
(Head Office)
Rayong
• Thailand Sustainability Investment 2019-2020
(THIS) from SET
• SET Award of Honor -Excellence in Investor
Relations 2017-2020 from SET
• The Best Quality Award : Gold Award (Truck
Business) from Hino - SAT
• The Best Operation Award : Gold Award (Truck
Business) from Hino – SBM
• Overall Award : Silver Award from Hino –SAT
• THCC Safety Activity from Hino : Rank A –SFT
• QCD Awards : silver Award from Kubota - SAT
6
Robot &
Automation (<1%)Automotive Industry(~70-75%) Tractor Industry (~20-25%)
Customers
SAT/SFT
Process: Forging/ Machining
ICP/SBM
Process: Casting/ Machining
MSA
Process: Bending & Coiling
Product: Axle Shaft, Hub
Product: Disc & Drum Brake,
Exhaust Manifold, Fly Wheel, Bracket
Product: Spring Products
Intelligent Logistics
SMART Factory
Robot
NKE/ SST
v v
SAT SFT MSA
SBM/ICP
Bar Hinge Torsion
Engine part related 3-5%
7
Tractor Combine Harvester Implement
Axle Shaft
Axle Assy Rear
Case Rear Axle
Case Front Axle
Rear Diff Assy
Holder Bearing
Case Bevel Gear
Differential Assy
Frame Tension
Roller 275
Case Drive
Rotary Blade
Assy Cutting Blade8
9
Automotive Industry Overview
273
96
216
277288
84
35
64
94 86
89
19
70
83 829
3
7
10 9
0
50
100
150
200
250
300
350
400
450
500
1Q20 2Q20 3Q20 4Q20 1Q21
Pickup Car Passenger Car Eco Car Commercial
10
88
103
8692 94
102
25
33
3630
2828
33
33
18 23 3028
3
4
33
3
4
0
20
40
60
80
100
120
140
160
180
200
Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Unit: Thousand cars
• QoQ ( 0%) : Changes in Pick up, Passenger and Eco car are +4%, -8% and -2%
• YoY (+3%) : Changes in Pickup, Passenger and Eco car are +6%, +3% and -8%
11
106
28
111
141
104
38
21
44
59
42
47
8
35
57
40
8
3
7
10
9
0
50
100
150
200
250
300
1Q20 2Q20 3Q20 4Q20 1Q21
Pickup Car Passenger Car Eco Car Commercial
42
5147
37 3532
18
18 23
13 14 15
19
23 16
10 15 15
3
4
3
3
3 4
0
20
40
60
80
100
120
Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Unit: Thousand cars
• QoQ (-27%) : Changes in Pickup, Passenger and Eco car are -26%, -28% and -31%
• YoY (-2%) : Changes in Pickup, Passenger and Eco car are -2%, +12% and -16%
12
167
68
104
137
185
46
14
20
35
44
41
11
35
26
42
0
50
100
150
200
250
300
1Q20 2Q20 3Q20 4Q20 1Q21
Pickup Car Passenger Car Eco Car Commercial
45
52
39
5659
70
8
15
13
1714
13
1
10
2
13 16
14
0
20
40
60
80
100
120
Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21
Unit: Thousand cars
• QoQ (+37%) : Changes in Pickup, Passenger and Eco car are +35%, +24% and +63%
• YoY (+7%) : Changes in Pickup, Passenger and Eco car are +11%, -4% and +2%
13
• QoQ : Car export increased +20% mainly from export to Europe, Central & South America and
Australia.
• YoY : Car export increased +3% mainly from export to Asia, Australia and Europe.
• Thailand top 3 car export market are Asia, Australia and Middle East.
70 75 89 87 84 74 86 75 64
2860
82 84
101 8889 79 89
83 72
5864
30
57
63 73
2824
2828
33
2639
35 40
23
23
2631
3627
3030
37
3425
21 27
7
12
15
28
28
21
2619
24
1318
1724
6
5
6
19
24
21
2431
27
22 15
1921
4
11
18
16
8
11
108
6
8 7
910
2
4
5
8
0
50
100
150
200
250
300
350
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Africa
North America
Central & South
America
Europe
Middle East
Australia
Asia
Unit: Thousand cars
0.5
0.3
0.1
0.2
0.3
0.3
0.4
0.5
0.6
0.7
0.7
0.6
0.6
0.5
0.8
0.8
1.4
1.3
0.8
0.7
0.8
0.9
1.0
2
0.9
8
0.7
2
0.0
0.0
0.1
0.1
0.2
0.2
0.2
0.2
0.3
0.4
0.5
0.7
0.8
0.5
0.9
0.7
1.0
1.1
1.1
1.2
1.2
1.1
1.1
4
1.0
4
0.7
0
0.6
0.4
0.2
0.3 0.4 0.5
0.6
0.8
0.9
1.1 1.2
1.3 1.4
1.0
1.6
1.5
2.5 2.5
1.9 1.9 1.9 2.0
2.2
2.01
1.43
-
0.5
1.0
1.5
2.0
2.5
3.0
Export
Domestic
Total Production
Covid-19 Pandemic
14
Asian Financial Crisis
Global Financial Crisis
Thailand Floods & Tsunami in Japan
CAGR =1%CAGR =9%
First car scheme
1.25
1.18
0.86
0.49
0.44
0.28
0.39
0.35
0.26
0.0 0.5 1.0 1.5 2.0
2018
2019
2020
Pickup&PPV Passenger Eco CV
Un
it : M
illio
n c
ars
Unit : Million cars
(60%) (18%)(20%)
15
Tractor Industry Overview
1517
15 16
21
18 17 1715
9
1819
23
33 5 3
1
2 42
2
2
5
5
4
1819
2019
23
2021
19
18
11
22
24
27
0
5
10
15
20
25
30
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Tractor Combine Total
16
Source : Customer
Unit: in Thousand
• QoQ : Increased +11%
• YoY : Increased +54%
2117
30
52 55 5954
4453
63
74
61
01
3
56
712
15
14
14
10
14
21 18
33
57
61
6566
59
66
77
83
75
0
10
20
30
40
50
60
70
80
90
100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F
Tractor Combine Total
Drought
17
Unit: in Thousand
Flood
Drought
Source : SBG’s Forecast
Covid-19 Pandemic
1818
Sale and Financial Highlights
4%
26%
24%
16%
30%
4%
20%
23%
23%
30%
Hub/Big Hub
Disc Brake &
Drum Brake
Casting/Machining
(Automotive)
Casting/Machining
(non- Auto)
Axle Shaft
20202021
12%
24%
72%
13%
23%
75%
19
Market ShareSales Contribution
20
15%
8%
23%
16%
38%
18%
8%
21%
23%
30%
Others*
Isuzu
Toyota/Hino
Kubota
Mitsubishi
2021 2020
Note : *Other : Other customer and REM customer.
2020 1Q2020 4Q2020 1Q2021
Production line Capacity
pcs /month
Utilization
(%)
Capacity
pcs/month
Utilization(%)
Capacity
pcs /month
Utilization
(%)
Capacity
pcs /month
Utilization
(%)
Axle Shaft 365,500 51% 365,500 61% 365,500 67% 365,500 74%
Machining (Auto) 437,000 42% 437,000 63% 437,000 50% 420,000 70%
Machining (non-Auto)
229,000 65% 229,000 55% 229,000 85% 229,000 95%
General Forging 280,500 35% 280,500 34% 280,500 46% 280,500 53%
Total (SBG) 50% 58% 64% 76%
21
Note : 1. Capacity is calculated based on 500 hours per month (20 hours x 25 days) except Axle Shaft & General Forging: 550 hours per month
22
433 330 391 340 335-41 231 367 466
1,7691,592 1,604 1,547 1,496
795
1,2981,402
1,741
2,2021,922 1,995 1,887 1,831
754
1,5291,769
2,207
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Gross Profit COGs SalesUnit: Million Baht
367 466
1,4021,741
20.7%21.1%
4Q20 1Q21
Gross Profit COGs %GP
• Although car production in Thailand unchanged, sale
revenue increased by 24.8% mainly from customer mix,
increase in the agricultural machinery industry and direct
export order.
• GP amount increased by 27% mainly from increase in sale
revenue.
Sale 24.8%
GP (amount) 27.0%
%GP 0.4%335 466
1,4961,741
18.3%
21.1%
1Q20 1Q21
Gross Profit COGs %GP
• Sale increased by 20.5% mainly from increase in the
automotive industry, agricultural machinery industry and
direct export order.
• GP amount increased by 29.1% mainly from increase in sale
revenue, production volume and cost reduction program
Sale 20.5%
GP (amount) 29.1%
%GP 2.8%
23
287
170227 211 193
-143
81
240321
13.0%
8.8%11.4% 11.2% 10.5%
-19.0%
5.3%
13.6% 14.5%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
-200
-100
0
100
200
300
400
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Net Profit % Net ProfitUnit: Million Baht
240
99 26 28 1 21
321
-
50
100
150
200
250
300
350
400
4Q20 Net
Profit
Gross
Margin
SG&A Others Interest
expense
Tax 1Q21 Net
Profit
193
131 36 41 2 10 321
-
50
100
150
200
250
300
350
1Q20
Net Profit
Gross
Margin
SG&A Others Interest
expense
Tax 1Q21
Net Profit
24
0.31 0.30
0.34
0.29 0.28
0.20
0.250.26
0.30
0
0
0
0
0
0
0
0
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
Unit: time
478
354413 407 377
3
250
410
503
21.7%
18.4%
20.7%21.6%
20.6%
0.3%
16.4%
23.2%22.8%
0
100
200
300
400
500
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
EBITDA % EBITDA
Unit: Million Baht
1.4
8
1.4
8
1.9
7 2.1
2
1.0
5
2.2
7
1.1
9
2.4
0
2.0
0
1.5
3
1.5
1
1.4
3
1.9
1
2.1
5
2.1
1
0.8
7
0.4
5
0.5
0 0.7
0
0.3
0
0.0
0
0.9
0
0.4
5
0.9
7
0.7
5
0.6
0
0.6
0
0.6
0
0.9
0
1.3
5
1.3
5
0.6
0
30%34%
36%
14%
0%
40%38%
40%38%39% 40%
42%
47%
63%64%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
EPS DPS %Dividend Payout
25
Unit: Baht per Share Unit: % Payout
Note: Dividend policy at a minimum rate of 30% of net profit after tax and legal reserve
• Y2020’s dividend payment is 0.60 Baht per share:
- Interim dividend of 0.12 Baht per share was paid on September 3, 2020
- The remaining dividend of 0.48 Baht per share was paid on May 7, 2021
2626
2021 Capex and Guidance
Support approved
new sale order,
4%
Maintain
Operation /
Overhaul, 66%
Cost
Improvement,
11%
Quality
improvement, 2%
Safety/Enviroment
/Welfare, 6%
Others, 11%
400 Million Baht
27
Action for COVID-19
• Ensure healthy lives and well-beings of Somboon Group’s employees
and their families.
• Ensure sufficient liquidity during COVID-19 pandemic and economic
crisis: Sufficient cash level
Industry
• Monitor closely on both export market and domestic market of
Thailand car production
Strategy
• Strengthen core competency and competiveness: cost leadership,
efficiency and technology improvement
• Diversify to related industry: Robot and Automation industry and
Agricultural Machinery Industry
28
29
Unit : Million Baht 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 QoQ YoY Y2019 Y2020 YoY
Sales 2,202 1,922 1,995 1,887 1,831 754 1,529 1,769 2,207 24.8% 20.5% 8,006 5,883 -26.5%
Total Revenue 2,235 1,955 2,027 1,982 1,864 781 1,576 1,806 2,248 24.5% 20.6% 8,199 6,027 -26.5%
Gross Margin 433 330 391 340 335 41- 231 367 466 27.0% 39.1% 1,494 892 -40.3%
SG&A 184 181 183 188 161 120 163 171 197 15.2% 22.4% 736 615 -16.4%
FOREX Gain (Loss) 0 -3 1 2 -1 3 -1 -2 6 484.8% 1080.6% 0 0 -85.0%
Interest Expense 3 3 2 3 3 2 1 2 1 -35.1% -54.0% 11 8 -27.3%
Net Profit 287 170 227 211 193 143- 81 240 321 33.8% 66.3% 895 371 -58.5%
Net Profit excluding fx 287 173 226 209 194 146- 82 242 315 30.4% 62.6% 895 371 -58.5%
EBITDA 478 354 413 407 377 3 250 410 503 22.6% 33.3% 1,652 1,039 -37.1%
Cash Flow from Operating 359 350 372 216 439 86 152 351 411 17.1% -6.4% 1,297 1,028 -20.7%
Depreciation 161 161 160 161 156 155 154 155 146 -5.8% -6.4% 643 620 -3.6%
CAPEX 52 96 84 119 68 119 109 123 82 -33.3% 20.6% 351 419 19.4%
Effective Tax Rate 9% 11% 10% 12% 11% 7% 14% 5% 10% 4.5% -1.8% 10% 11% 0.8%
Total Assets 9,401 8,984 9,430 9,311 9,480 8,188 8,553 8,955 9,637 7.6% 1.7% 9,311 8,955 -3.8%
Interest Bearing Debt 281 252 372 322 194 180 144 155 157 1.3% -19.1% 322 155 -51.9%
Total Liabilities 2,228 2,065 2,391 2,108 2,086 1,367 1,696 1,865 2,209 18.4% 5.9% 2,108 1,865 -11.5%
Equity 7,174 6,919 7,038 7,203 7,394 6,821 6,856 7,091 7,428 4.8% 0.5% 7,203 7,091 -1.6%
Key Financial Ratios 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 QoQ YoY Y2019 Y2020 YoY
%GP 19.7% 17.2% 19.6% 18.0% 18.3% -5.4% 15.1% 20.7% 21.1% 0.4% 2.8% 18.7% 15.2% -3.5%
%SG&A 8.4% 9.4% 9.2% 10.0% 8.8% 15.9% 10.7% 9.7% 8.9% -0.7% 0.1% 9.2% 10.5% 1.3%
%NP 13.0% 8.8% 11.4% 11.2% 10.5% -19.0% 5.3% 13.6% 14.5% 1.0% 4.0% 11.2% 6.3% -4.9%
%NP excluding fx 13.0% 9.0% 11.3% 11.1% 10.6% -19.4% 5.4% 13.7% 14.3% 0.6% 3.7% 10.9% 6.2% -4.8%
%EBITDA 21.7% 18.4% 20.7% 21.6% 20.6% 0.3% 16.4% 23.2% 22.8% -0.4% 2.2% 20.6% 17.7% -3.0%
%ROA 12.4% 7.7% 9.9% 9.4% 8.1% -6.7% 3.6% 10.5% 13.4% 2.9% 5.3% 9.6% 4.1% -5.5%
EBITDA/CAPEX 9.20 3.68 4.92 3.42 5.54 0.02 2.29 3.33 6.13 2.80 0.58 4.71 2.48 -2.2
%ROE 16.6% 10.1% 13.3% 12.2% 10.5% -8.3% 4.7% 13.4% 17.3% 3.9% 6.8% 12.4% 5.2% -7.2%
%ROIC 15.6% 9.8% 12.7% 11.8% 10.3% -8.0% 4.6% 13.1% 17.0% 3.9% 6.7% 9.8% 3.6% -6.2%
Interest bearing Debt/Equity 0.04 0.04 0.05 0.04 0.03 0.03 0.02 0.02 0.02 0.00 -0.01 0.04 0.02 -0.02
D/E 0.31 0.30 0.34 0.29 0.28 0.20 0.25 0.26 0.30 0.03 0.02 0.29 0.26 -0.03
EPS (Baht) 0.68 0.40 0.53 0.50 0.45 0.34- 0.19 0.56 0.76 33.8% 66.3% 2.12 0.87 -58.7%
BVPS (Baht) 16.88 16.28 16.56 16.95 17.40 16.05 16.13 16.68 17.48 4.8% 0.5% 16.95 16.68 -1.6%
30
Somboon Advance Technology Public Company Limited – Investor Relations Department
Tel. +66 2 080 8197, Fax. +66 2 080 8198 , Email : [email protected], Website : http://www.satpcl.co.th