P.C.S. Machine Group Holding Public Company Ltd · SET:PCSGH
P.C.S. Machine Group Holding Public — Q1 2016 Earnings Presentation
29 slides from P.C.S. Machine Group Holding Public's earnings presentation, May 13, 2016
Slide 1: Business Briefing 1 — 2016
Business Briefing 1 — 2016 As at 31*t March 2016 Disclosed date : 13" May 2016 PES v5in W400. witiu nfl Taahe dia my = www.PCSGH.com Holding P.C.S. Machine Group Holding Public Company Limited IR@pesholding.com
Slide 2: Corporate Structure
aes Heldieg Corporate Structure Company Profile <a <a oFes Pie in feo: = FS All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 2
Slide 3: Business Focus
Business Focus Characteristic of Focused Parts * Significant: Safety, Functional and Performance concerns ® Heavy Duty and Durable ® Long Program Life ® High Precision, High Technology © High Value Added ® High Volume Power Train Systems ° Engines ° Transmission ° Final Drive All Rights Reserved. -
Slide 4: Design Capability
-<SoFes Holding Design Capability Company Profile | Design Scope: * Process Design * Die / Mold Design ° Jig / Fixture Design *° Accessory Equipment Design * Product Co -Design (Dimension, Function, Material and etc.) CATIAV5 R19&R20 Solid Works UG AutoCAD Magma Flow Finite Element All Rights Reserv
Slide 5: Products
Holding ss Products Company Profile All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 5
Slide 6: Valued Customers
iL PGS Holding Value Customers Company Profile Passenger Vehicle @ntinental@ MM HITACHI KY Non Automotive SCHAEFFLER <é#i> @ +4 BERNINA® © GGUSU All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com
Slide 7: Contact us
Contact us Company Profile Head Quarter and Factories Bangkok Office 2/1-4 Moo 3, Mittraparp Rd., Kokgroad, Muang, 193/105 25" Fl., Lake Rajada Office Complex Bidg.. Nakorn-Rajasima Thailand 30280 Ratchadaphisek Rd., Klongtoei. Bangkok Thailand 10110 T : +66 (0) 4470 1300 T : +66 (0) 2264 0621-3 GPS
Slide 8: ASEAN Automotive Industry 1Q2016
Vehicle Sales («1,000 units) Y-Y Y-Y vy vy vy -5.4% -8.2% 22.0% 21.6% 37.4% 267.2 181.6 131.3 a 7 L | . Indonesia Thailand Malaysia —_ Phillippines. Vietnam Y-Y 80.4% 257 || Singapore All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com ASEAN Automotive Industry 1Q2016 Vehicle Production («1,000
Slide 9: Thailand Automotive Industry: Domestic Sales
oes ing Thailand Automotive Industry Industry Overview Domestic Sales (x 1,000 units) oo 34% core. oo astm Q-Q -26.2% Y-Y -8.3% 181 246 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 * Pullahead effect in 4Q2015 by New Excise Tax effective on 1°‘ January 2016 onwards * The Ongoing slowdown of Economic / Investm
Slide 10: Thailand Automotive Industry: Export
Thailand Automotive Industry Industry Overview Export (x 1,000 units) ‘0, Q-Q -24.5% QQ 32.0% Q-Q -9.0% Q-Q 2.7% Y-Y -6.2% 308 328 329 300 248 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 10 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : Federal of Thai Industries; Automotive Industry Club
Slide 11: Thailand Automotive Industry: Production
Thailand Automotive Industry Industry Overview Production (« 1,000 units) - 9, Q-Q-21.7% 2-2 20.9% rorsan Q-Q 5.3% Y-Y -3.4% 507 525 497 an 411 1Q2015 202015 SERS jao01s jopote All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : Federal of Thai Industries; Automotive Industry Club 11
Slide 12: Pickup Based Vehicles
oes icing Pickup Based Vehicles Domestic Sales (x 1,000 units) Production (x 1,000 units) aa 5.6% QQ -15.2% Q-Q 20.7% 2a371% Q-Q-23.8% Q-Q -28.9% CXS) EWA S 2 -0.2% PS EES Y-Y 6.9% Y-Y 1.8% 312 sor 296 296 PPV 218 99 130 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 All Right
Slide 13: Average Aluminum LME Price
oes icing Average Aluminum LME Price I stry Overview Q-Q; 2.3% Y-Y; -13.7% 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : London Metal Exchange (LME) 13
Slide 14: Sales Distribution
Sales Distribution BY BU BY AUTOMAKER NISSAN OTHER PCF 7.3% 2.7% 0.6% ISUZU 20.5% All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 14
Slide 15: Sales Distribution by Destination and Category
-<Sns BY DESTINATION BY CATEGORY Sales Distribution Export Non Pickup 0.2% 1.2% Domestic 99.8% All Rights Reserved. - www.pesgh.com | ir@pcsholding.com 15
Slide 16: Performance: Sales and Gross Profit
; Performance | | Sales (mntHB) 1,102.3 4,070.8 987.5 931.7 1Q2015 2Q2015 3Q2015 4Q2015 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Q-Q 13.3% Y-Y -4.3% 1,055.3 1Q2016 Gross Profit Margin decrease when compared to the same period of last year by the capacity up project of several parts G
Slide 17: Profitability: Net Profit and EBITDA
Business Ove’ lL Net Profit (mntHs) NPM 18.2% 12.6% 203.6 126.4 1Q2015 2Q2015 Profitability 12.2% 13.4% —— 7.0% 146.3 65.5 3Q2015 4Q2015 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Q-Q +5.2% Y-Y -6.1% 129.6 1Q2016 EBITDA (mntHB) EBITDA Margin 31.4% 27.7% 350.7 276.9 1Q2015 2Q2015 27.4%
Slide 18: Cost Breakdown
Ratio of Cost of Goods Sold increase when compared to the same Cost Breakdown period of last year by the capacity up project of several parts COGS (mnTHB) 7 SG&A (mnTHB) Q-Q -0.3% Cathe Y-Y +0.2% 83.8% 83.4% oo 8% 79.0% * ” Q-Q -4.8% Y-Y +5.7% 3.9% ane 993.2 894.3 3.0% 4.8% 4.4% 42% 827.4 834.2 - 40
Slide 19: Variable Cost
Variable Cost = > Business Overview Raw Material (motHs) Ratio to Sales (%) Q-Q +0.7% Y-Y +2.7% 40.0% —_—_$_ "rrr 39.0% 39.2% oes Oe: 421.7 1Q2015 2Q2015 3Q2015, 4Q2015 1Q2016 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Variable Cost increase when compared to the same period of last yea
Slide 20: Fixed Cost
Fixed Cost = => Bu ss Overview Employee Expenses (mntHs) Q-Q-1.5% Depreciation (mtHs) Q-Q -3.3% Ratio to Sales (%) Y-Y #0.6% = ——Ratio to Sales (%) Y-Y -0.1% 14.9% 12.5% SS 14.3% 15.9% 14.8% WES joss ners 1a.a% 45.7% 157.5 7 a 7 a a " 1Q2015 2Q2015 3Q2015, 4Q2015 1Q2016 1Q2015 2Q2015 3Q2015 4Q2015 1
Slide 21: Statement of Financial Position
oes Holding Statement of Financial Position Business Overview be » Statement of Financial Position (mati) & D/E Ratio 0.09 x ——— 0.07 x 0.09 x 0.10 x 0.10 x 5,532.0 5,426.8 50005 nem 5,430.9 AT see ago wo 5,147.3 4,968.2 4,800.5 4,974.9 5,004.5 At 31 Mar 2015 At 30 Jun 2015, At 30 Sep 2015 = At 31 D
Slide 22: Industry Outlook
Industry Outlook Impacts of the Excise Tax exemption for the 1°* Car owner Program >—_. (=) High level of Household debt Household Drought Household Debt to GDP debt y 81.5% \ aoe a2.0- 24.0% 79.9% 76.3% 715% Pulled-ahead effect of New a) Excise Tax based on carbon 2015 -2016F en sree New Excise Agr
Slide 23: Vehicles Reserved at Motor Show
Vehicles Reserved @ Motor Show ow 32,571 sills mest °' Statistics of Vehicles Reserved (units) Top 5 Brand in Motor Show 2016 Motor Show Motor Expo Y-Y Y-Y 8.1% -12.0% 42,763 HONDA a , , 4,308 a~ 39,415 9,125 ’ L — a Lh — aso = 32,571 . =, 3,586 3,557 3,549 = : oo) _d FY2014 FY2015 FY2016 Honda Toyo
Slide 24: Business Outlook
Business Outlook Uptrend of Average Aluminum LME Price CABS i Aluminum Price wy Aluminum “ar Opportunities to obtain more items Price CF) as the announced strategies * Non 1 ton Pickup Part as * Non Automotive Part 1014 2014 3014 4014 1015 2015 3015 4015 1016 Opportunities New Program | ‘Source : Lo
Slide 25: Progress of Solar Rooftop Project
So hts Holding Progress of Solar Rooftop Project Estimated Cost Saving * Project : 5 MWp Solar PV Rooftop * PV Modules : 19,200 modules THB 20 mn * Invertors : 160 packs * Rooftop : 8 buildings per year . Estimated Capacity : 6,780 MWh per year * Budget: THB 175 mn * Estimated Official Start : Begin
Slide 26: New Programs Starting up in FY2016
1Q2016 : New Programs Starting up in FY2016 2Q2016 : 11 P/N Life 4-6 years, Value THB 990 mn Pickup: 1 P/N + Pan Oil ASM Big Truck : 9 PIN + Bracket Spring 3 P/N + Bracket Steering 2 PIN + Adapter Turbo + Shackle + Duct EGR 2 P/N Passenger Car : 1 P/N + Pressure Plate 3Q2016 : 4 PIN Life 5-6 years,
Slide 27: New Programs Starting up in FY2017
1Q2017 : 2 PIN Life 5-10 years, Value THB 250 mn Pick up : 2 PIN - Pressure plate - 3Q2017 : Big Truck : 2 P/N - Front Housing + Flywheel Housing + Cover Cylinder Head ASM Passenger Car : 4 P/N + Bracket ; Drive shaft 2 P/N + Engine mounting bracket oS + Hook — os All Rights Reserved. - www.pcsgh.co
Slide 28: RSVP and Site Visit Invitation
RSVP: within 23" May 2016 M: ir@pcsholding.com T: 044-701 300 aa 34621 F: 044-701 399 Participant List Announcement: 24'" May 2016 website: www.pcsgh.com Site Visit Invitation 26" May 2016 @ 08:00 — 18:30 oS PES vitn HaJ00. uty nj laana tia @nnyy) = “ww.PCSGH.com Holding P.C.S. Machine Group Holding
Slide 29: Thank You
THANK YOU <0 PES v5in W400. witiu nfl Taahe dia my = www.PCSGH.com Holding P.C.S. Machine Group Holding Public Company Limited IR@pesholding.com
P.C.S. Machine Group Holding Public Company — Q1 2016 Earnings Presentation on 6ix