1

Strive for sustainable growth in automotive industry through advanced technology and partnership

Opportunity Day

2Q2019 September 5, 2019

Automotive Industry Overview

2

Tractor Industry Overview

Sale Performance

Financial Highlights

Company Overview

3

Company Overview

4

SAT

Paid up 425 million Baht

ICP SBM BSK SFT

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. 29.92%

2. Thai NVDR 15.67%

3. Nortrust Nominees Ltd-Cl Ac. 5.33%

4. BBHISL NOMINEES LIMITED 3.08%

5. AIA COMPANY LIMITED - EQ3-P 1.69% 6. Others 44.31%

As of August 23, 2019

99.99% 99.99% 99.99% 99.99%

Note: Somboon Holding & Kitaphanich Family owns approximately 44%

Mubea Somboon

Automotive

50.00%

5

Process: Forging/ Machining

Product: Axle Shaft,

Hub

Process: Casting/ Machining

Product: Disc & Drum Brake,

Exhaust Manifold,

Fly Wheel, Bracket, Hub

Process : Bending & Coiling Product: Spring Product

Customers :

Amata Industrial Estate 4 Plants

+ MSA 1Plant

Samutprakarn

Rayong

Eastern Seaboard Industrial Estate

1 Plant

Bangna Head Office

3 Plants

+MSA 2 Plants

7

8

Automotive Industry Overview

239

245

255 285

258

251 3

01

271

292

278

304

254

540

517 548

564

561

504

0

100

200

300

400

500

600

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Domestic Export Total

9

• QoQ : Car production decreased -10% as export declined -16% and domestic declined -3%

• YoY : Car production decreased -2% as export declined -6% but domestic increased +2%

• 6M19 : Car production increased +1% as domestic increased +5% but export declined -3%

79

84 95

75 8

7

89 101

99

104

75

94

84

180

183 199

150

181

173

0

50

100

150

200

250

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Unit: Thousand cars

310 295

313 332 328

294

125 123

130 112 119

110

95 89

95 108 104

91

9 10

10 11 10

9

0

100

200

300

400

500

600

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Pickup Car Passenger Car Eco Car Commercial

10

• QoQ (-10%) : Changes in Pick up, Passenger and Eco car are -11%, -7% and -12%

• YoY (-2%) : Changes in Pickup, Passenger and Eco car are 0%, -10% and +2%

• 6M19(+1%) : Changes in Pickup, Passenger and Eco car are +3%, -7% and +6%

104 106

118

87

107 99

39 38

43

33

39 38

34 36

34

27

32 32

3 3

4

2

3 3

0

50

100

150

200

250

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Unit: Thousand cars

11

• QoQ (-3%) : Changes in Pickup, Passenger and Eco car are -5%, -5% and +6%

• YoY (+2%) : Changes in Pickup, Passenger and Eco car are +3%, -2% and +7%

• 6M19 (+5%) : Changes in Pickup, Passenger and Eco car are +5%, +2% and +8%

122 123 123

156

132 126

60 62 69

61

64 61

47 51

54

58

51 54 9

10 10

10

10 9

0

50

100

150

200

250

300

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Pickup Car Passenger Car Eco Car Commercial

37

44

51

39

44 43

21

21

23

18

21 22

17

17

17

16

18 20

3

3

4

2

3 3

0

10

20

30

40

50

60

70

80

90

100

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Unit: Thousand cars

12

• QoQ (-16%) : Changes in Pickup, Passenger and Eco car are -15%, -11% and -29%

• YoY (-6%) : Changes in Pickup, Passenger and Eco car are -3%, -19% and -3%

• 6M19 (-3%): Changes in Pickup, Passenger and Eco car are +1%, -16% and +3%

188 172

190 176

196

168

64

60

61

52

55

49

48

39

41 50

53

37

0

50

100

150

200

250

300

350

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Pickup Car Passenger Car Eco Car Commercial

66 63

67

48

63

56

18 17

20

15

18

16

17 19

17

11

14

12

0

20

40

60

80

100

120

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19

Unit: Thousand cars

13

• QoQ: Car export decreased -13% mainly from export to Central & South America, Australia and Middle

East.

• YoY: Car export decreased -3% mainly from export to Central & South America, Australia and Africa.

• 6M19: Comparable to last year. Top 3 regions are Australia, Asia and Europe

80 83 86 79 84 84 102

85 101 88 89 79 89 83

87 72 83 84 76 71

77 80

70 75

89 87

84 74

36 38

39 36 39 31

37 37 36

27 30

30 37

34

56

36 34

31 23 25

29 35 28

24

28 28

33

26

10

29 30

31 27

17

37 25 24

21

24 31

27

22

29 24

30 22

29

19

25

21 28

21

26 19

24

13

9

6

6

5 8

5

7

7 8

11

10 8

6

8

0

50

100

150

200

250

300

350

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Africa

Central & South

America

North America

Middle East

Europe

Asia

Australia

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

-

0.0

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

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 2.1

2.3 2.4

-

0.5

1.0

1.5

2.0

2.5

3.0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

F2019

F2020

F2021

Export

Domestic

Total Production

14

Asian Financial Crisis

Global Financial Crisis

Thailand Floods & Tsunami in Japan

CAGR =3% CAGR =9%

First car scheme

1.10

1.13

1.25

0.45

0.45

0.49

0.36

0.36

0.39

0.0 0.5 1.0 1.5 2.0

2016

2017

2018

Pickup&PPV Passenger Eco CV

Un

it : M

illio

n c

ars

Unit : Million cars

15

Tractor Industry Overview

16

Source : Customer

Unit: in Thousand

• QoQ: Decreased -11%

• YoY : Increased +5%

• 6M19 : Increased +15%

11 9

12 11 11

15 14 12

15 17

15 16

21

18

3

3

5 5

3

2 6

2

3 3 5 3

1

2

14

12

17 17

15

17

20

15

18 19

20 19

23

20

0

5

10

15

20

25

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Tractor Combine Total

21 17

30

52 55 59 54

44 53

63

0 1

3

5 6

7 12

15

14

14

21 18

33

57

61

65 66

59

66

77

83 86

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 F2019 F2020

Tractor Combine Total

Drought

17

Unit: in Thousand

Flood

Drought

Source : SBG’s Forecast

18

Sale Performance

29%

24%

24%

18%

4%

1%

31%

22%

21%

20%

6%

0%

0% 10% 20% 30% 40%

Axle Shaft

Disc Brake &

Drum Brake

Casting/Machining

(Automotive)

Casting/Machining

(Kubota)

Hub/Big Hub

Others

2018 2019

74%

25%

12%

72%

24%

14%

0% 20% 40% 60% 80%

19

Market Share Sales Contribution

20

35%

25%

18%

7%

4%

3%

2%

2%

4%

31%

25%

20%

6%

4%

2%

1%

2%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Mitsubishi

Toyota/Hino

Kubota

Isuzu

Honda

Nissan

GM

Ford & Mazda

Others*

2019 2018

Note : *Other : Other customer , Direct export and REM customer.

2018 2Q2018 1Q2019 2Q2019

Production line Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Axle Shaft 365,500 64% 365,500 61% 365,500 75% 365,500 67%

Machining (Auto) 437,000 70% 437,000 64% 437,000 72% 437,000 57%

Machining (non-Auto)

229,000 76% 229,000 80% 229,000 80% 229,000 76%

General Forging 280,500 42% 280,500 40% 280,500 44% 280,500 37%

Total (SBG) 67% 64% 73% 64%

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

Financial Highlights

23

333 285 385 328 362 327 391 430 433

330

1,760 1,651

1,870 1,981

1,629 1,593

1,698 1,764 1,769

1,592

2,093

1,936

2,255 2,309

1,991 1,920

2,089

2,194 2,202

1,922

0

500

1,000

1,500

2,000

2,500

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Gross Profit COGs Sales Unit: Million Baht

24

433 330

1,769

1,592

19.7%

17.2%

0%

5%

10%

15%

20%

25%

0

500

1,000

1,500

2,000

2,500

1Q19 2Q19

Gross Profit COGs %GP

QoQ Comparison Sale 12.7%

COGS 10.0%

GP (amount) 23.8%

%GP 2.5%

• Sale declined 12.7% based on

seasonality of the automotive

industry and the agricultural

machinery industry.

• %GP decreased 2.5% mainly

due to a decrease in sale.

Unit: Million Baht %GP

25

327 330

1,593 1,592

17.0% 17.2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1,000

1,500

2,000

2,500

2Q18 2Q19

Gross Profit COGs %GP

YoY Comparison Sale 0.1%

COGS 0.1%

GP (amount) 0.9%

%GP 0.1%

• 2Q19 sale is comparable to 2Q18

as additional sale from new

order (direct export)

compensated negative industrial

trend.

• GP and %GP is comparable to

2Q18.

Unit: Million Baht %GP

26

171

135

225

280

235

183

243 254

287

170

8.2%

7.0%

10.0%

12.1% 11.9%

9.5%

11.6% 11.6%

13.0%

8.8%

0%

2%

4%

6%

8%

10%

12%

14%

0

50

100

150

200

250

300

350

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Net Profit % Net Profit %NP Unit: Million Baht

27

Note: 1 Others include gain/loss on fx , other incomes, and other expenses

1

28

Note: 1 Others include gain/loss on fx , other incomes, and other expenses

1

29

397 362

462

519

435

371

439 448 478

354

19.0% 18.7%

20.5%

22.5% 21.8%

19.3%

21.0% 20.5% 21.7%

18.4%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

EBITDA % EBITDA Unit: Million Baht %EBITDA

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

.15

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

30% 34% 36%

14%

0%

40% 38%

40% 38% 39% 40%

42%

47%

63%

0%

10%

20%

30%

40%

50%

60%

70%

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

EPS DPS %Dividend Payout

30

Unit: Baht per Share Unit: % Payout

Note: Dividend policy at a minimum rate of 30% of net profit after tax and legal reserve

• Interim dividends for the first half year operation of 2019 (1 January - 30 June

2019) at the rate of Baht 0.35 per share.

• Dividend payment will be paid on September 6 ,2019.

31

Awards from customer

TCC HRD Activity 2017 from Toyota

The Winner TPS Award 2017 from Toyota

MCC QCC Activity 2017 from Mitsubishi

Quality Award and Delivery 2017 from

Kubota

SKC Delivery Skill Contest 2017 from Kubota

RUNNER UP SKC Delivery Kaizen Award 2017

from Kubota

Gold Award QCD 2017 from Kubota

Quality Award and Delivery 2017 from Isuzu

Awards from various agencies

Sustainability Awards of Honor 2018 from SET

Thailand Sustainability Investment 2018 (THIS)

from SET

Best Investor Relations Awards 2017-2018 from

SET

Best IR Awards 2015-2016 from IAA

Gold Level Thailand HR Innovation Award

2017, the highest award from the National

Institute for Productivity in collaboration with

the PMAT & NIDA

CSR-DIW Continuous Award 2017 from DIW

32

Unit : Million Baht 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 QoQ YoY Y2017 Y2018 YoY

Sales 2,093 1,936 2,255 2,309 1,991 1,920 2,089 2,194 2,202 1,922 -12.7% 0.1% 8,593 8,194 -4.6%

Total Revenue 2,109 1,959 2,275 2,459 2,020 1,952 2,118 2,218 2,235 1,955 -12.5% 0.2% 8,802 8,308 -5.6%

Gross Margin 333 285 385 328 362 327 391 430 433 330 -23.8% 0.9% 1,331 1,510 13.4%

SG&A 167 164 167 182 151 170 168 194 184 181 -1.6% 6.5% 680 683 0.4%

FOREX Gain (Loss) 2 2 2 2 2 1 2 1- 0 -3 -1725.0% -471.4% 8 4 -49.5%

Interest Expense 17 15 14 12 10 6 4 3 3 3 -7.1% -54.0% 57 23 -60.2%

Net Profit 171 135 225 280 235 183 243 255 287 170 -40.8% -7.1% 811 916 12.9%

Net Profit excluding fx 169 133 223 278 233 182 241 256 287 173 -39.8% -5.3% 803 912 13.5%

EBITDA 397 362 462 519 435 371 439 449 478 354 -26.0% -4.6% 1,741 1,694 -2.7%

Cash Flow from Operating 298 421 521 385 165 410 509 369 359 350 -2.5% -14.6% 1,625 1,453 -10.6%

Depreciation 192 198 199 200 166 165 167 165 161 161 0.0% -2.4% 789 663 -16.0%

CAPEX 46 71 57 121 56 105 87 109 52 96 84.6% -8.6% 295 357 21.0%

Effective Tax Rate 9% 10% 10% 9% 9% 9% 9% 9% 9% 11% 1.8% 2.0% 9% 9% 0.0%

Total Assets 9,439 9,217 9,328 9,572 9,128 8,787 8,953 9,065 9,401 8,984 -4.4% 2.2% 9,572 9,065 -5.3%

Interest Bearing Debt 1,574 1,386 1,199 1,207 747 422 390 309 281 252 -10.3% -40.3% 1,207 309 -74.4%

Total Liabilities 3,382 3,200 3,191 3,152 2,473 2,225 2,299 2,178 2,228 2,065 -7.3% -7.2% 3,152 2,178 -30.9%

Equity 6,058 6,017 6,137 6,420 6,656 6,562 6,654 6,887 7,174 6,919 -3.6% 5.4% 6,420 6,887 7.3%

Key Financial Ratios 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 QoQ YoY Y2017 Y2018 YoY

%GP 15.9% 14.7% 17.1% 14.2% 18.2% 17.0% 18.7% 19.6% 19.7% 17.2% -2.5% 0.1% 15.5% 18.4% 2.9%

%SG&A 8.0% 8.5% 7.4% 7.9% 7.6% 8.9% 8.0% 8.8% 8.4% 9.4% 1.1% 0.6% 7.9% 8.3% 0.4%

%NP 8.2% 7.0% 10.0% 12.1% 11.8% 9.5% 11.6% 11.6% 13.0% 8.8% -4.2% -0.7% 9.2% 11.0% 1.8%

%NP excluding fx 8.1% 6.9% 9.9% 12.0% 11.7% 9.5% 11.6% 11.6% 13.0% 9.0% -4.0% -0.5% 9.1% 11.0% 1.9%

%EBITDA 19.0% 18.7% 20.5% 22.5% 21.8% 19.3% 21.0% 20.5% 21.7% 18.4% -3.3% -0.9% 19.8% 20.4% 0.6%

%ROA 7.1% 5.8% 9.7% 11.8% 10.1% 8.1% 10.6% 10.9% 12.4% 7.7% -4.7% -0.5% 8.5% 10.1% 1.6%

EBITDA/CAPEX 8.63 5.10 8.11 4.29 7.76 3.53 5.05 4.12 9.20 3.68 -5.51 0.15 5.90 4.74 -1.2

%ROE 11.7% 9.3% 15.2% 18.2% 14.8% 11.6% 15.2% 15.3% 16.6% 10.1% -6.5% -1.6% 12.6% 13.3% 0.7%

%ROIC 9.8% 8.1% 12.9% 16.6% 15.3% 10.5% 13.7% 13.9% 15.6% 9.8% -5.8% -0.7% 9.1% 10.4% 1.3%

Interest bearing Debt/Equity 0.26 0.23 0.20 0.19 0.11 0.06 0.06 0.04 0.04 0.04 0.00 -0.03 0.19 0.04 -0.14

D/E 0.56 0.53 0.52 0.49 0.37 0.34 0.35 0.32 0.31 0.30 -0.01 -0.04 0.49 0.32 -0.17

EPS (Baht) 0.40 0.32 0.53 0.66 0.55 0.43 0.57 0.60 0.68 0.40 -40.8% -7.1% 1.91 2.15 12.7%

BVPS (Baht) 14.25 14.16 14.44 15.11 15.66 15.44 15.66 16.20 16.88 16.28 -3.6% 5.4% 15.11 16.20 7.3%

33

Somboon Advance Technology Public Company Limited – Investor Relations Department

Tel. +66 2 080 8197, Fax. +66 2 080 8198 , Email : ir@somboon.co.th, Website : http://www.satpcl.co.th