SNC Former Public Co., Ltd. · SET:SNC
SNC Former Public — Q2 2006 Earnings Presentation
49 slides from SNC Former Public's earnings presentation, Aug 1, 2006
Slide 1: The Opportunity Day @ Stock Exchange of Thailand
THE OPPORTUNITY DAY @ Stock Exchange of Thailand August 1, 2006
Slide 2: Agenda
AGENDA HIGHLIGHTS HIGHLIGHTSOF OFTHE THEYEAR YEARQ2/2006 Q2/2006 OVERVIEW OVERVIEWOF OFTHE THEINDUSTRIES INDUSTRIES FINANCIAL FINANCIALPERFORMANCE PERFORMANCEQ2/2006 Q2/2006 BUSINESS BUSINESS PLAN PLAN2006 2006 PROJECT PROJECTQ3&Q4 Q3&Q42006 2006 QUESTION QUESTION&&ANSWER ANSWER The Opportunity day@
Slide 3: Highlights of the Q2/2006
Highlights of the Q2/ 2006 SALES SALESQ2/2006 Q2/2006 522.46 MILLION THB (59% INCREASED FROM Q2/2005) • AUTOMOBILE PARTS 90.60 MILLION THB (31% INCREASED FROM Q2/2005) • AIR-CONDITIONING PARTS 331.89 MILLION THB (52% INCREASED FROM Q2/2005) • COMPRESSOR PARTS 47.74 MILLION THB (16% INCREASED FROM Q2
Slide 4: Overview of the Industries
OVERVIEW OF THE INDUSTRIES (2004-2006) AUTOMOBILE AIR- AIR-CONDITIONER COMPRESSOR REFRIGERATOR LAUNDRY MACHINE
Slide 5: Automobile Assembly & Sales (2004-2006)
AUTOMOBILE ASSEMBLY & SALES (2004- (2004-2006) UNIT : 1,000 CARS 1400 Assembly % sales 1125 10 1200 8- 1000 928 % 21 800 703 0-5% % 626 12 597 600 400 335 200 Q1 Q1 306 170 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET on AUG 01, 2006 Source: Thai Auto Parts Association
Slide 6: Export Cars and Automotive Parts (2004-2006)
EXPORT CARS AND AUTOMOTIVE PARTS (2004- (2004-2006) UNIT : MILLION BAHT 450,000 400,000 0 % 350,000 2 5-3 294,260 300,000 % 29 250,000 228,382 200,000 167,022 150,000 100,000 50,000 Q1 86,844 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET on AUG 01, 2006 Source: Thai Auto Parts Association
Slide 7: Air-Conditioner Manufacturing & Export
AIR- AIR-CONDITIONER MANUFACTURING & EXPORT (2004- (2004-2006) UNIT : 1,000 UNIT Manufacturing Export 10,000 9,000 3% 0- 5 % 8,000 7,516 7,404 6,903 7,000 6,533 0-5% 6% 6,000 4,390 5,000 3,825 4,000 3,000 2,000 Q1 1,000 2,135 Q1 1,739 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET Source:
Slide 8: Compressor Manufacturing & Export
COMPRESSOR MANUFACTURING & EXPORT (2004- (2004-2006) UNIT : THOUSAND UNIT 10,000 Manufacturing 9,000 Export 8,131 8,262 % 0-5 8,000 % 1.6 7,000 % 6,000 0-5 5,000 4,443 4,043 4,121 4,000 2% 3,000 2,200 2,000 1,000 Q1 Q1 2,2541,028 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET Source: The O
Slide 9: Refrigerator Manufacturing & Export
REFRIGERATOR MANUFACTURING & EXPORT (2004- (2004-2006) UNIT : THOUSAND UNIT Manufacturing 3,500 3,056 Export 2,927 0-5% 3,000 4% 2,500 2,123 1,930 2,000 0-5% 1,592 1 0% 1,500 1,063 1,000 500 Q1 Q1 803 534 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET Source: The Office of Industrial Econo
Slide 10: Laundry Machine Manufacturing & Domestic Sales
LAUNDRY MACHINE MANUFACTURING & DOMESTIC SALES (2004- (2004-2006) UNIT : THOUSAND UNIT Manufacturing Domestic sales 2,500 2,000 1,811 5% 1,728 0 -5 % 1,500 1,000 % 0-5 779 439 407 500 8% Q1 189 447 Q1 122 0 YEAR 2004 2005 2006-F 2006-H1 The Opportunity day@ SET on AUG 01, 2006 Source: Bank of Thaila
Slide 11: Financial Performance Q2/2006
FINANCIAL PERFORMANCE Q2/2006 MR. RATTAPOOM NUNTAPATAWEE
Slide 12: Financial Performance
FINANCIAL PERFORMANCE KEY KEYOPERATING OPERATING RESULTS RESULTS KEY KEYFINANCIAL FINANCIALRATIOS RATIOS The Opportunity day@ SET on AUG 01, 2006
Slide 13: Sales: Proportion
SALES : PROPORTION MILLION BAHT 1400 1,057 47% 1200 719 8% 1000 9% 800 522 59% 12% 600 328 10% 66% 9% 400 68% 13% 64% 200 66% 21% 17% 20% 17% 0 Q2'05 Q2'06 H1/05 H1/06 Automobile Air Condition Compressor Metal Sheet The Opportunity day@ SET on AUG 01, 2006
Slide 14: Sales: Growth
SALES : GROWTH MILLION BAHT 1400 1,057 1200 82 719 1000 100% 93 800 522 0 6% 88 600 328 52 100% 698 400 48 42% 0 16% 490 41 52% 332 200 218 31% 141 30% 184 0 69 91 Q2'05 Q2'06 H1/05 H1/06 Automobile Air Condition Compressor Metal Sheet The Opportunity day@ SET on AUG 01, 2006
Slide 15: Copper: LME price
Copper: LME price Q2/06 6,500$-8,900 $ Q1/06 Q4/05 5,100 $ Q3/05 4,500 $ Q2/05 3,800 $ Q1/05 3,300 $ 3,200 $ The Opportunity day@ SET on AUG 01, 2006
Slide 16: Aluminum: LME price
Aluminum: LME price Q2/06 2,800 $ Q1/06 Q4/05 2,500 $ Q1/05 Q3/05 2,200 $ Q2/05 1,900 $ 1,900 $ 1,800 $ The Opportunity day@ SET on AUG 01, 2006
Slide 17: Profitability
Profitability 40% 30% 27% 26% 83.5 20% 35.7 40.2 16% MB 18% 92.7 16% MB 16% MB MB 11% 11.6% 13% 11.0% 10% 7.7% 8.8% 0% Q2'05 Q2'06 H1/05 H1/06 GP EBIT EAT The Opportunity day@ SET on AUG 01, 2006
Slide 18: EAT: Segment
EAT : SEGMENT MILLION BAHT 140.0 120.0 +11% 92.8 100.0 83.6 8.9 +13% 80.0 7.1 60.0 40.2 69.2 35.7 56.2 4.6 40.0 3.0 32.5 20.0 23.6 22.3 26.5 11.1 12.5 0.0 -2.0 -9.3 -2.0 -11.8 -20.0 Q2'05 Q2'06 H1/05 H1/06 Automobile Air Condition Compressor Metal Sheet The Opportunity day@ SET on AUG 01, 2006
Slide 19: EBITDA Margin
EBITDA Margin Million Baht 200 +24% 178 144 16.8% 150 20.0% +25% 81 100 65 +11% EAT 15.5% EAT 50 19.8% +13% EAT EAT 0 Q2/05 Q2/06 H1/05 H1/06 The Opportunity day@ SET on AUG 01, 2006
Slide 20: EPS
EPS 1.00 0.42 0.46 0.50 0.18 0.20 0.00 Q2'05 Q2'06 H1/05 H1/06 The Opportunity day@ SET on AUG 01, 2006
Slide 21: Liquidity (Current, Quick, Cash)
Liquidity (Current, Quick, Cash) 2 1.28 1.20 1.23 1.01 1.01 0.96 0.95 0.95 0.89 1 0 Dec'05 Mar'06 Jun'06 Current Quick Cash The Opportunity day@ SET on AUG 01, 2006
Slide 22: Liquidity (A/R, Inventory, A/P)
Liquidity (A/R, Inven, Inven, A/P) 80 62 58 61 59 60 51 49 40 33 25 26 20 0 Dec'05 Mar'06 Jun'06 A/R Inven A/P The Opportunity day@ SET on AUG 01, 2006
Slide 23: Debt per Equity
DEBT(int) DEBT(int) PER EQUITY 800 600 519 527 479 1 1 1 400 212 200 153 150 0.44 0.44 0.28 0.29 0.29 0.28 0 Dec'05 Mar'06 Jun'06 Debt Equity The Opportunity day@ SET on AUG 01, 2006
Slide 24: ROA, ROE
ROA, ROE 50% 40% 38% 37% 31% 30% 24% 20% Asset Equity 10% Asset Equity 1,204 527 0% 847 468 Jan-Jun'05 Jan-Jun'06 ROA ROE The Opportunity day@ SET on AUG 01, 2006
Slide 25: Business Plan 2006 SNC Group
BUSINESS PLAN 2006 SNC GROUP
Slide 26: Business Plan 2006: SNC Group
BUSINESS PLAN 2006 SNC GROUP 2000 1800 % 0-45 1600 4 1400 1277 MILLION THB 1200 1000 834 800 600 455 400 200 0 2003 2004 2005 2006 The Opportunity day@ SET on AUG 01, 2006
Slide 27: Business Plan 2006: Automobile
BUSINESS PLAN 2006 AUTOMOBILE 450 400 -15% 335 10 350 MILLION THB 300 250 217 200 148 150 100 50 0 2003 2004 2005 2006 The Opportunity day@ SET on AUG 01, 2006
Slide 28: Business Plan 2006: Air-Conditioner
BUSINESS PLAN 2006 AIR- AIR- CONDITIONER 1200 1000 50% - 759 45 800 MILLION THB 600 482 400 240 200 0 2003 2004 2005 2006 The Opportunity day@ SET on AUG 01, 2006
Slide 29: Business Plan 2006: Compressor
BUSINESS PLAN 2006 COMPRESSOR 300 250 200 MILLION THB 151 0% 134 150 100 68 50 0 2003 2004 2005 2006 The Opportunity day@ SET on AUG 01, 2006
Slide 30: Business Plan 2006: Metal Sheet
BUSINESS PLAN 2006 METAL SHEET 300 250 200 MILLION THB 150 50% 5 00- 100 5 50 32 0 2005 2006 The Opportunity day@ SET on AUG 01, 2006 Remark: Production2005 started from Jul-Dec
Slide 31: Project Q3 & Q4 2006: SPE & Fresh-Tech
PROJECT Q3&Q4 2006 SPE & FRESH--TECH FRESH
Slide 32: Project Q3, Q4 Rayong Plant
PROJECT Q3, Q4 RAYONG PLANT AGENDA NEW NEW FACTORY FACTORY 54 54 MB MB NEW NEW LINE LINEOEM OEM 25 25 MB MB
Slide 33: SPE (Existing)
SPE (Existing) F1 LG,Muffler SPE F2 Mold&Die F3 Press F1 F2 F3 F4 F5 F6 F7 F8 F4 Powder F5 Turret(Amada) F6 Turret(Finpower) F7 Daihen, ACC, Auto. F8 Freezer, Kannetsu SNC AIRCOND. F11 SPACE AREA (WH) F10 F9
Slide 34: SPE (New Q3, Q4)
SPE (NEW Q3,Q4) F1 LG,Muffler SPE F2 F3 Mold&Die Press F1 F2 F3 F4 F5 F6 F7 F8 F4 Powder F5 Turret(Amada) F6 Turret(Finpower) F7 Daihen, ACC, Auto. F8 Freezer, Kannetsu SPE (NEW) SNC AIRCOND. Football Future F11 WH F14 F13 F12 F10 F9 Field Area (WH) Budget ( 54 MB ) 1) 3 Factories and 1 Warehouse 2)
Slide 35: Line OEM
LINE OEM Office Finished Goods Outdoor 1 Outdoor 2 Indoor 2 Indoor 1 W/H Accessories and Materials SPE Sub Assembly Sheet Metal REMARK : BUDGET 25 MB
Slide 36: The Opportunity Day @ Stock Exchange of Thailand
THE OPPORTUNITY DAY @ Stock Exchange of Thailand August 1, 2006
Slide 37: Agenda
AGENDA FINANCIAL FINANCIALPERFORMANCE PERFORMANCEQ2/2006 Q2/2006 SALES SALES FORECAST FORECAST STRATEGIES STRATEGIES The Opportunity day@ SET on AUG 01, 2006
Slide 38: FTM Performance
FTM PERFORMANCE 40% 30% 20.5% 20% 10.5% . 7.4% 10% 0% Q1'06 Q2'06 GP EBIT EAT The Opportunity day@ SET on AUG 01, 2006
Slide 39: FTM Performance: ROA, ROE
FTM PERFORMANCE 100% 75% 72% 29% 50% . 25% ROA ROE 0% Q1'06 Q2'06 The Opportunity day@ SET on AUG 01, 2006
Slide 40: Sales Forecast 2006
SALES FORECAST 2006 B 30 30M t cas Million THB r e m. Fo Cu Act. Sales 0 8.07 MB Q1 Q2 Q3 Q4 The Opportunity day@ SET on AUG 01, 2006
Slide 41: FTM Strategies
FTM Strategies 2006 The Opportunity day@ SET on AUG 01, 2006
Slide 42: Business Strategy
Business Strategy •Low Risk : Hi-Return •Keep low fixed asset •Less no. employees / Hi-ability & Hi-Income •Niche Market (Stainless steel equipment) •STAR business (Food Processing) •Fast Return : ROE The Opportunity day@ SET on AUG 01, 2006
Slide 43: Marketing Strategy
Marketing Strategy •Segment : •Foods processing •Target : •Air Products world-wide •Japan partners (Require help from SNC’s Japanese Executives) •Positioning : •Global OEM : Flexibility, Transparency & Mutuality The Opportunity day@ SET on AUG 01, 2006
Slide 44: Marketing Place
Marketing Place •BUILD/ ASID NET BOI •Associations of Stainless steel •Japanese firms / Embassy •WEB SITE •Foods factory •International sourcing company •Road show / Exhibitions The Opportunity day@ SET on AUG 01, 2006
Slide 45: Operation Strategy
Operation Strategy Business Result 456789:;9<7 ROA , ROE "# % Foods Processing Freezer Inventory Turnover 7<BgCWD:Q>LO9Q<L 9<7=>?A@ B:CD<B Customer &'%" ( Customer Satisfaction Index : CSI Basic : Q-C-D Differentiators : Superior Service Cost Speed Quality % & •Visual Factory Jun~Aug 06 9<7TZQA:
Slide 46: HRM Strategy
HRM Strategy •Competency-based HRM •Skill Matrix •Individual development plan (IDP) •Employment classification •Link to Basic compensation •Performance-based Reward •Daily appraisal (Ranking) •A,B,C Ranking Related with incentive/Bonus The Opportunity day@ SET on AUG 01, 2006
Slide 47: Thank You
THE WORLD-CLASS STAINLESS STEEL APPLICATIONS PROVIDER Thank You Padej Montburinont
Slide 48: Question & Answer
Question & Answer
Slide 49: The End
THE END THANK YOU