President Automobile Industries Public Co., Ltd. · SET:PACO
President Automobile Industries Public — Q2 2023 Earnings Presentation
37 slides from President Automobile Industries Public's earnings presentation, Sep 7, 2023
Slide 1: Analyst Presentation Q2/2023
ANALYST PRESENTATION Q2/2023 7th September 2023 President Automobile Industries PLC. 1
Slide 2: Q2/2023 Highlight
Q2/2023 HIGHLIGHT PACO Display Strong Price of Raw Obtained Deal by Topline Growth of Materials begins "Kubota" for Agri 22.7% QoQ to Recover vehicle market • Operating revenue was Baht 268.4 • PACO’s major raw material – • After winning the deal in Aril 2023, million in Q2/23 increased by 22.7% Alu
Slide 3: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2H/2023 OUTLOOK 3
Slide 4: PACO at a Glance
PACO AT A GLANCE 200 High 30 Years+ 26 Countries Branches Product Of Experience Of Operation in 45 Provinces Differentiation across Thailand Highly experienced management Strong foothold in Thailand and Over 200 branches of PACO has over 2,000 SKUs for Air team originated back from 1991 when Abroad
Slide 5: PACO Product Portfolio
PACO PRODUCT PORTFOLIO Revenue Structure by Product Type Unit: MB, % 69% Condenser (Manufacturing) 20% Evaporator (Manufacturing) 2% Other Automotive Products Of revenue Of revenue Of revenue (Manufacturing) Manufacturing A/C Hoses Radiator Evaporator 20% Total Suspension 487.2 MB Condenser In 1H/20
Slide 6: PACO Market Breakdown
PACO MARKET BREAKDOWN Revenue Structure by Country Unit: MB, % Presence in 26 Countries around the World 34% Thailand 4% 35% U.S. 25% Total Middle East International Domestic 487.2 MB 66% and Africa Asia 34% In 1H/2023 2% Others Others include European Region and Australia 6
Slide 7: PACO Business Along the Value Chain
PACO BUSINESS ALONG THE VALUE CHAIN Upstream Midstream Downstream Aftersales 3% Of revenue OES Dealers Garage Sell to car sellers who support the repair and replacement of car parts at the car service center Repair Auto Parts Auto Car Customer 96% Of revenue Manufacturer Showroom 1% Of revenue OEM
Slide 8: PACO Ensures to Maintain Competitiveness
PACO ENSURES TO MAINTAIN COMPETITIVENESS PACO KEY STRENGHTS 1 2 3 Leader in Aircon Parts with Innovation and Operational Strong Brand under PACO Excellence One-Stop Service Provide high international- Cover more than 90% of all car Technological advancement standard quality products to models in the
Slide 9: PACO Existing Facilities
PACO EXISTING FACILITIES PACO Factory 1 PACO HQ and Factory 2 Domestic Distribution Center Factory to produce component Factory to assemble parts of condenser/evaporator evaporator, condenser and hose Capacity: Capacity: Capacity: 800 sq. m of office space 1,000 sq. m of office space 400 sq. m
Slide 10: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2H/2023 OUTLOOK 10
Slide 11: PACO Strategic Direction
PACO STRATEGIC DIRECTION Leading One-Stop-Service Auto-Parts +20-25% CAGR Player in the Region • Digitalizing operation and system • Strengthen PACO brand for OES and REM 2025 • Increase product coverage through new product categories Expansion for The Future • Expanding capacity for growth Automati
Slide 12: PACO Strategy
PACO STRATEGY EXPANDING CAPABILITIES OF STRENGTHENING PRESENCE CORE BUSINESS ALONG THE VALUE CHAIN • Strengthening PACO brand • OEM: Capturing relocating car manufacturers from China • REM: Securing more volume domestically and internationally • OES: Enhancing collaboration with domestic through acq
Slide 13: Expanding Capabilities of Core Business
EXPANDING CAPABILITIES OF CORE BUSINESS Revenue from REM Q2/2023 Progress 96% Unit: Million Baht New SKU Launched 820.7 Of Revenue 315 143 286 650.9 616.6 460.7 2020 2021 2022 1H/2023 • Economic slowdown have imposed positive impact to the Company’s REM revenue has consumers are delaying in new car
Slide 14: Strengthening Presence Along the Value Chain (OES)
STRENGTHENING PRESENCE ALONG THE VALUE CHAIN Ramping Up Volume for OES Q2/2023 Progress 3% Unit: Million Baht Manage Performance of Existing Customers Maintain and ensure consistency in revenue of Of Revenue existing customers 59.2 Continuous Innovation Seeking for new customers by continuous 44.3 l
Slide 15: Strengthening Presence Along the Value Chain (OEM)
STRENGTHENING PRESENCE ALONG THE VALUE CHAIN Expanding OEM Business Q2/2023 Progress 1% Unit: Million Baht 12.1 Of Revenue PACO has signed a contract to produce air 6.1 7.2 conditioning parts for agricultural and construction vehicles with the Kubota Group 9.3 Models: loaders, tractors, harvesters
Slide 16: Innovating New Products and R&D
INNOVATING NEW PRODUCTS AND R&D 4 New Product Lines 4 New Product Lines 1 New Product Lines 286 New SKUs 315 new SKUs 121 new SKUs 22 New SKUs 2021 2022 Q1/2023 Q2/2023 2023 16
Slide 17: Increasing International Coverage
INCREASING INTERNATIONAL COVERAGE Revenue from International Business Key markets where Primary Markets with Countries which import PACO have supporting some Parts cars from key markets Unit: Million Baht Components and primary markets 551.3 • Middle east • Europe • Africa • America • China • Centra
Slide 18: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2H/2023 OUTLOOK 18
Slide 19: 1H/2023 Financial Highlight
1H/2023 FINANCIAL HIGHLIGHT Operating Revenue in 1H/2023 Financial Summary 487.19 MB Unit: Million Baht, % +17.4% YoY -5.4% YoY 17.4% YoY -16.7% YoY 487.2 GPM and NPM 415.0 1H/2023 1H/2023 -40.2% YoY 72.1 11.6% 5.3% 67.7 56.3 68.2 -4.7% YoY -5.3% YoY 45.6 ROA ROA and and ROE ROE 27.3 Q2/2023 Q2/2023
Slide 20: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY CHANNEL Unit: Million Baht, % +17.4% YoY +17.4% YoY +14.6% YoY +14.6% YoY 487.2 487.2 +22.7% QoQ Outsource +22.7% QoQ 415.0 9% 415.0 12% 66% International 268.4 268.4 59% 234.2 234.2 218.8 9% 218.8 12% 91% Manufacturing 10% 88% 61% 68% 64% 91% 88% 90%
Slide 21: Domestic Sales Performance
DOMESTIC SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % -3.2% YoY -3.2% YoY 171.6 171.6 166.2 1% 166.2 1% OEM -5.5% YoY 17% 10% OES Others -5.5% YoY 31% +8.5% QoQ 30% +8.5% QoQ 91.5 91.5 Evaporat
Slide 22: International Sales Performance
INTERNATIONAL SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % +31.9% YoY +31.9% YoY 321.0 OES 321.0 2% OEM 1% Others +27.6% YoY +27.6% YoY 16% Evaporator +30.7% QoQ +30.7% QoQ 243.4 243.4 2% 1% 13
Slide 23: Efficiency
EFFICIENCY CONDENSER EVAPORATOR Unit: Number of unit, % Utilization Unit: Number of unit, % Utilization 106.45% 76.01% 67.70% 70.00% 70.04% 77.40% 98.56% 48.23% Utilization 87.45% Rate 80.63% 77.38% 78.67% Utilization Rate 107,800 103,600 101,840 206,360 203,680 198,320 Total 2,925 193,820 Capacity
Slide 24: Cost of Good Sold
COST OF GOOD SOLD MANUFACTURING ALUMINUM MARKET PRICE Unit: Million Baht, % Unit: Other Costs USD/ton 1% 4,500 Utility Costs 15% 3,849 4,000 3,500 3,168 3,000 2,540 Labor Costs 17% 430.9 MB 2,500 2,000 2,032 2,171 Q2/2023 1,500 1,000 Material Costs 67% 500 0 4/1/2021 4/2/2021 4/3/2021 4/4/2021 4/5/2
Slide 25: Gross Profit and Gross Profit Margin
GROSS PROFIT AND GROSS PROFIT MARGIN GROSS PROFIT AND GROSS PROFIT MARGIN BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % 17.4% 18.1% 11.6% 12.0% 11.8% 15.7% 16.3% 11.6% GPM from Manufacturing 11.4% 11.7% GPM 9.4% 3.4% 9.1% 3.6% 8.8% GPM from Outsource -16.8% YoY 67.7 -14.9% YoY 2% 56.3 +26.1% QoQ 7
Slide 26: Selling & Administrative Expenses
SELLING & ADMINISTRATIVE EXPENSES SELLING & ADMINISTRATIVE EXPENSES Unit: Million Baht, % 6.9% 9.6% 7.7% 7.7% 6.2% Total SG&A per total revenue +19.4% YoY 39.4 +6.0% YoY 33.0 Selling -16.9% QoQ 31% Expenses 34% 21.5 16.9 17.9 27% 33% 35% 69% Administrative Expenses 66% 73% 67% 65% Q2/22 Q1/23 Q2/23
Slide 27: Net Profit
NET PROFIT NET PROFIT AND NET PROFIT MARGIN Unit: Million Baht, % 11.8% 10.7% 8.3% 5.3% 1.5% NPM -16.9% YoY -40.2% YoY +600.3% QoQ 45.6 28.7 27.3 23.9 Net Profit 3.4 Q2/22 Q1/23 Q2/23 1H/22 1H/23 YoY: Q2/23 vs Q2/22 QoQ: Q2/23 vs Q1/23 YoY: 1H/23 vs 1H/22 Net profit was Baht 23.9 million, decreased
Slide 28: Profit and Loss Statement in Q2/2023
PROFIT AND LOSS STATEMENT IN Q2/2023 PROFIT AND LOSS STATEMENT IN Q2/2023 Unit: Million Baht, % 100.0% 82.2% 2.2% 4.1% Gain on 3.3% exchange 13.5 rate 8.3% Total Revenue COGS Selling Expense Administrative Interest and Tax Net Profit Expenses Q2/23 Analysis • The company has a total revenue of Baht
Slide 29: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % -2.2% -2.2% 1,414.6 1,383.6 1,414.6 1,383.6 Other currents 22.9 2% 2% 68.3 5% Other liabilities 105.4 22.9 69.3 5% 7% 74 5% 82.2 Cash and cash 6% 89.6 6% Trade and other payables equivalents 237.0 17% 135.0 9% 100.
Slide 30: Key Financial Ratios
KEY FINANCIAL RATIOS CURRENT RATIO D/E RATIO Unit: Times Unit: Times 3.06 0.56 2.58 2.55 0.44 0.38 Q2/22 Q1/23 Q2/23 Q2/22 Q1/23 Q2/23 ROA* ROE* Unit: % Unit: % 10.48 7.94 7.44 5.18 6.91 4.89 Q2/22 Q1/23 Q2/23 Q2/22 Q1/23 Q2/23 *ROA = Trailing-12-month Net profit/ Total average assets *ROE = Trailin
Slide 31: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2H/2023 OUTLOOK 31
Slide 32: Opportunity for Growth in Thailand's Auto Parts Production
Opportunity for growth in the market value of Thailand's production of auto parts Thailand Automobile Parts Production Market Size Key Drivers Unit: Trillion Baht 4.3% 1.4% 1.3% 2.60% Expansion of domestic automotive production (OEM Market) 0.6% Growth Rate (%) Unit: Million cars CAGR +5.6% 2.0 2.17
Slide 33: Potential to Increase Auto Parts Exports to Global Market
Potential to increase its proportion of automotive parts exports to the global market Thailand Auto Part Export Value Key Challenge Unit: Hundred Billion Baht 28.8% 7.8% 7.6% 2.8% 3.70% Growth -10.2% Growing dominance of EVs in export markets -17.6% Rate (%) • Moves from the production of vehicles p
Slide 34: 2H/2023 Outlook
2H/2023 Outlook Invest in additional New Product to Capturing Relocating Seek for large REM capacity to expand US Capture EV Customers from China export opportunities Market Segment • Capture large • Invest in 1-2 • Study and develop • Secure partners to opportunities from auto additional machines t
Slide 35: Thank You
THANK YOU Please kindly give us your feedback IR CONTACT Email: ir@paco.co.th Tel: 02-8100526-8 ext. 325 or 094-5513097 MANAGEMENT Khun Tae (Tanest) 084-437-9090 35
Slide 36: Company History
COMPANY HISTORY • Registered business • Expanding overseas • Expanded overseas • Expanding the plant under the name markets by starting markets in North “PACO 2"on more than “President with Singapore, America. 6,219 square wa of land Automobile Industries Indonesia, Malaysia. • Expanding the market
Slide 37: Thailand Auto Parts Landscape
Thailand Auto Parts Landscape Thailand Auto Part (2021) Import Sources Domestic Market Sales of Thailand Auto Parts Export Destination OEM 30-40% REM 60-70% USA Others Japan 21% 27% 30% Domestic Domestic Production Sales 60-70% 60-70% Japan Others 51% 9% Indonesia 5% Indonesia Germany 7% 5% China US
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