President Automobile Industries Public Co., Ltd. · SET:PACO
President Automobile Industries Public — Q1 2024 Earnings Presentation
35 slides from President Automobile Industries Public's earnings presentation, Jun 11, 2024
Slide 1: Opportunity Day Presentation Q1 2024
OPPORTUNITY DAY PRESENTATION Q1 2024 11th June 2024 President Automobile Industries PLC. 1
Slide 2: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 2024 STRATEGIC DIRECTION & 3 STRATEGY 4 INDUSTRY OUTLOOK 2
Slide 3: Q1 2024 Highlight
Q1 2024 HIGHLIGHT PACO Q1 2024 exceeded Investment in Automation PACO has 250MB Backlog 10X Growth Machinery as of end of Q1/2024 • Operating revenue was Baht 259.7 million in • In 2024, PACO plans to invest approximately • The Company's order book continues to Q1 2024 increased by 19.7% YoY 50 mill
Slide 4: PACO Product Portfolio (Q1 2024)
PACO PRODUCT PORTFOLIO (Q1 2024) Revenue Structure by Product Type 22 Countries around the World* 72% Unit: MB, % 13% (Manufacturing) 7% Condenser Evaporator Other Automotive Presence in (Manufacturing) Products Of revenue (Manufacturing) Manufacturing Of revenue Of revenue Other 15% A/C Hoses Radia
Slide 5: PACO Business Along the Value Chain (Q1 2024)
PACO BUSINESS ALONG THE VALUE CHAIN (Q1 2024) Upstream Midstream Downstream Aftersales 6% 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 90% Of revenue Manufacturer Showroom 4% REM
Slide 6: PACO Ensures to Maintain Competitiveness
PACO ENSURES TO MAINTAIN COMPETITIVENESS PACO KEY STRENGHTS 1 2 3 Leader in Aircon Parts with Aluminum Heat Exchanger Strong Brand under PACO One-Stop Service Expert Provide high international- Cover more than 90% of all car 30 years of experience in the standard quality products to models in the ma
Slide 7: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 2024 STRATEGIC DIRECTION & 3 STRATEGY 4 INDUSTRY OUTLOOK 7
Slide 8: Q1/2024 Financial Highlight
Q1/2024 FINANCIAL HIGHLIGHT Operating Revenue Unit: Million Baht, % Financial Summary 259.7 MB +19.4% YoY 19.4% YoY GPM and NPM +233.4% YoY 259.7 Q1/2024 Q1/2024 +129.0% YoY +1,263.3% YoY 22.0% 16.5% 218.8 72.5 10.6% YoY 15.0% YoY 57.0 46.5 ROA ROA and and ROE ROE Q1/2024 Q1/2024 24.9 21.8 xx % 11.6
Slide 9: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY CHANNEL Unit: Million Baht, % +19.4% YoY +19.4% YoY -0.57% QoQ -0.57% QoQ 261.2 259.7 261.2 259.7 5% 7% Outsource 218.8 218.8 10% 65% International 71% 64% 95% 93% Manufacturing 90% Domestic 36% 29% 35% Q1/23 Q4/23 Q1/24 Q1/23 Q4/23 Q1/24 YoY: Q1/24 v
Slide 10: Domestic Sales Performance
DOMESTIC SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % “Domestic sales increased from 2023 due to the increase in orders from major customer and Selling new product” +15.6% YoY +15.6% YoY +19.8%
Slide 11: International Sales Performance
INTERNATIONAL SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % “The increase in orders from international customers, particularly from Singapore, has significantly increase in sales performance” 11
Slide 12: Cost of Good Sold
COST OF GOOD SOLD MANUFACTURING ALUMINUM MARKET PRICE Unit: Million Baht, % Unit: USD/ton 4,500 3,849 4,000 3,500 3,168 3,000 2,540 202.7MB 2,500 2,000 2,032 2,171 2,216 Q1/2024 1,500 1,000 500 0 2021 2022 2023 2024 Source: Investing.com • Price of aluminum will show a declining trend till the end P
Slide 13: 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, % Gross profit was Baht 57.0 million in Q1/2024, increased by Baht 32.1 million or 129.0% Gross profit was Baht 57.0 million in Q1/2024, increased by Baht 11.0million or 24.0% and
Slide 14: Selling & Administrative Expenses
SELLING & ADMINISTRATIVE EXPENSES SELLING & ADMINISTRATIVE EXPENSES Unit: Million Baht, % Total SG&A per total revenue Selling Expenses Administrative Expenses YoY: Q1/24 vs Q1/23 QoQ: Q1/24 vs Q4/24 Selling & administrative expense was Baht 18.0 million, decreased by Baht 3.5 million Selling & admi
Slide 15: Net Profit
NET PROFIT NET PROFIT AND NET PROFIT MARGIN Unit: Million Baht, % NPM Net Profit YoY: Q1/24 vs Q1/23 QoQ: Q1/24 vs Q4/24 Net profit was Baht 46.5 million, increased by Baht 43.1 million or 1,263.3% and Net Profit Net profit was Baht 46.5 million, increased by Baht 32.3 million or 226.9% and Net Prof
Slide 16: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % Asset Liability & Shareholders’ Equity +2.4% QoQ +2.4% QoQ Other currents 2% 5% Other liabilities 7% 2% 5% Cash and cash 8% 6% 6% Trade and other payables equivalents 17% 9% 5% Short-term loans Trade and other curr
Slide 17: Key Financial Ratios
KEY FINANCIAL RATIOS *ROA = Trailing-12-month Net profit/ Total average assets *ROE = Trailing-12-month Net profit/ Total average shareholder’s equity 17
Slide 18: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 2024 STRATEGIC DIRECTION & 3 STRATEGY 4 INDUSTRY OUTLOOK 18
Slide 19: PACO Strategic Direction
PACO STRATEGIC DIRECTION Global Presence of Heat +10-15% CAGR Exchanger Technology • Digitalizing operation and system • Continue to grow PACO brand for OES and REM on a global scale 2026 • Explore more OEM opportunities in the region Well-Known One-Stop-Service Auto-Parts Player in the Region • Aut
Slide 20: Expanding Capabilities of Core Business (1/2)
EXPANDING CAPABILITIES OF CORE BUSINESS (1/2) Expand Export Business Strengthen Domestic Business Revenue from Domestic Business 167.6 Planned expansion Planned expansion Capture new customers Introduce Doowon product Expand new opportunities 20
Slide 21: Expanding Capabilities of Core Business (2/2)
EXPANDING CAPABILITIES OF CORE BUSINESS (2/2) Growing OEM Business Expanding into Heat Exchanger business Kubota reported increasing interest in machinery with cabin and PACO believes that increase in sales of AIRBUS aircraft will push comfort features such as air conditioning. the aerospace busines
Slide 22: Continuous Capacity Expansion for Growth
CONTINOUS CAPACITY EXPANSION FOR GROWTH Investment in Machinery Expanding Capacity and Automation to increase production capacity and increase automation to control costs 1 Elevating Capacity through Automation Increase automation machinery to achieve a 10-15% increase in capacity in 2025 2 Auto
Slide 23: Explore New Business Opportunities Through Innovative Products and Trends
EXPLORE NEW BUSINESS OPPORTUNITIES THROUGH INNOVATIVE PRODUCTS AND TRENDS Opportunities from 2024 US-China Tariff Growing Concern from Allies countries Capture Customers Moving out from China's Supplier Moving supplies our of China USA announced increased tax for Aluminum products including conden
Slide 24: Explore New Business Opportunities: Aerospace Chiller
EXPLORE NEW BUSINESS OPPORTUNITIES THROUGH INNOVATIVE PRODUCTS AND TRENDS Explore New Industry 2024 NPD Explore New Industry PACO is poised to expand into the aerospace chiller Aerospace Chiller industry while capitalizing on the sector's growth potential Global Aerospace Market Size Primary Functio
Slide 25: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 2024 STRATEGIC DIRECTION & 3 STRATEGY INDUSTRY OUTLOOK AND 4 2024 OUTLOOK 25
Slide 26: Growth of Global Automotive Industry Drives Company Expansion Abroad
The Growth of the Global Automotive Industry Drives Company Expansion Abroad Global Automotive Market Size (OEM) Global Automotive Aftermarket Market Size (REM) Unit: Billion USD Unit: Billion USD 45.9 44.0 100.2 42.2 40.4 95.1 38.5 90.2 85.5 81.1 77.0 32.0 2021 2022 2023F 2024F 2025F 2026F 2021 202
Slide 27: Opportunities from Rising Automotive Sales and Exports in Thailand
Opportunities for Growth from Rising Automotive Sales and Exports in Thailand Thailand Automotive Sales Volume Thailand Auto Parts Export Value Unit: Million cars Unit: Billion USD 3.02 3.04 3.10 5.6 3.00 5.4 5.0 2.62 2.67 3.9 5.3 8.0% 9.5% 4.7 10.1% 11.0% ICE 97% 94% 99% Export Value 99% 98% Others
Slide 28: Global Heat Exchanger Market Displayed Robust Growth
Global Heat Exchanger Market Displayed Robust Growth Rate, Open-door for the Company to Go Aboard Global Micro Channel Heat Exchanger Market Size Global Heat Exchanger Growth Drivers Unit: Billion USD 20.85 The increasing investment in aerospace and more environmental concerns drives the demand fo
Slide 29: PACO 2024 Outlook
PACO 2024 Outlook PACO aims to grow 10-15%* in 2024 Full production operation Penetrate New Expansion of PACO Supplying to New for Kubota International Market and Auto Hub Branches Industry Customer Base • Advancing with maximum • The company consistently in • PACO targets an additional • Start prod
Slide 30: 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 30
Slide 31: 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 32: 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
Slide 33: 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 team Strong foothold in Thailand and Abroad Over 200 branches of PACO has over 2,000 SKUs for Air originated back from 1991 when
Slide 34: PACO Existing Facilities
PACO EXISTING FACILITIES PACO Factory 1 PACO HQ and Factory 2 Domestic Distribution Center Factory to produce Factory to assemble component parts of evaporator, condenser, condenser/evaporator and hose Capacity: Capacity: Capacity: 800 sq. m of office space 900 sq. m of office space 400 sq. m
Slide 35: Dividend Payment
DIVIDEND PAYMENT PACO Announces to Pay a Dividend of 0.04 Baht per Share* Unit: Million Baht, % 108.7 2024 Timeline % 21 Feb 2024: Announce Dividend Payment Rate 73.2 Net Income 10 Apr 2024: Annual General Meeting 80.0 40.0 Dividend Payment 23 Apr 2024: Record Date 2021 2023 7 May 2024: Date of Divi
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