President Automobile Industries Public Co., Ltd. · SET:PACO
President Automobile Industries Public — President Automobile Industries — FY2023 Earnings Presentation
42 slides from President Automobile Industries Public's earnings presentation, Mar 8, 2024
Slide 1: Analyst Presentation 2023
ANALYST PRESENTATION 2023 8th March 2024 President Automobile Industries PLC. 1
Slide 2: 2023 Highlight
2023 HIGHLIGHT PACO Performance Exceed Investment in Automation PACO has 300MB Backlog Target For 2 Consecutive Machinery as of YE/2023 Years • Operating revenue was Baht 1,027.0 million • In 2024, PACO plans to invest approximately • The Company's order book continues to in 2023 increased by 15.1%
Slide 3: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 3
Slide 4: PACO Product Portfolio
PACO PRODUCT PORTFOLIO Revenue Structure by Product Type 22 Countries around the World* 70% Unit: MB, % 20% (Manufacturing) 2% Condenser Evaporator Other Automotive Presence in (Manufacturing) Products Of revenue (Manufacturing) Manufacturing Of revenue Of revenue Evaporator 20% A/C Hoses Radiator D
Slide 5: PACO Business Along the Value Chain
PACO BUSINESS ALONG THE VALUE CHAIN Upstream Midstream Downstream Aftersales 4% 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 94% Of revenue Manufacturer Showroom 2% REM OEM Local
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 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 7
Slide 8: 2023 Financial Highlight
2023 FINANCIAL HIGHLIGHT Operating Revenue in 2023 Unit: Million Baht, % Financial Summary 1,027.0 MB +15.1% YoY 15.1% YoY +8.9% YoY +10.9% YoY GPM and NPM 1,027.0 Q4/2023 Q4/2023 -11.3% YoY 17.6% 5.3% 892.1 156.0 5.7% YoY 4.5% YoY 149.4 140.7 137.2 ROA ROA and and ROE ROE 82.5 73.2 Q4/2023 Q4/2023
Slide 9: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY QUARTER Unit: Million Baht, % “Represented the growth revenue from 2022 due to increased demand from international customers” +15.1% YoY 1,027.0 +5.4% CAGR 892.1 +10.9% YoY 268.4 278.6 261.2 234.2 241.6 235.5 218.8 180.8 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23
Slide 10: Operating Revenue by Channel
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY CHANNEL Unit: Million Baht, % +15.1% YoY +15.1% YoY 1,027.0 1,027.0 892.1 8% Outsource 892.1 11% +10.9% YoY +10.9% YoY 68% International 62% 92% Manufacturing 89% 278.6 261.2 278.6 261.2 235.5 235.5 6% 5% 8% 70% 94% 66% 71% 38% 32% Domestic 92% 95% 34
Slide 11: 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 slightly decreased from 2022 due to a decrease in the production capacity” -3.9% YoY -3.9% YoY 340.7 340.7 1% 327.3 327.3 4
Slide 12: 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 and the Middle East region, has significantly increa
Slide 13: Efficiency
EFFICIENCY CONDENSER EVAPORATOR Unit: Number of unit, % Utilization Unit: Number of unit, % Utilization 93.09% 99.97% 96.21% 78.12% 68.54% 70.33% 70.31% 77.70% 81.83% 68.56% 87.45% 89.19% 86.28% Utilization Utilization 80.63% 77.38% 78.67% Rate Rate 107,800 215,310 103,600 101,840 206,360 203,680 19
Slide 14: Cost of Good Sold
COST OF GOOD SOLD MANUFACTURING ALUMINUM MARKET PRICE Unit: Million Baht, % Unit: USD/ton Other Costs 1% 4,500 Utility Costs 16% 3,849 4,000 3,500 3,168 3,000 2,540 Labor Costs 18% 215.3 MB 2,500 2,000 2,032 2,171 2,216 Q4/2023 1,500 Material Costs 1,000 66% 500 0 2021 2022 2023 2024 Source: Investi
Slide 15: 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, % 17.0% 17.7% 16.5% GPM from Manufacturing 14.8% 12.0% 17.6% 15.4% 14.6% 16.9% GPM 11.9% 15.9% 12.0% 16.4% GPM from Outsource 11.0% 6.1% +8.9% YoY 149.4 137.2 6% GP from Outsource
Slide 16: Selling & Administrative Expenses
SELLING & ADMINISTRATIVE EXPENSES SELLING & ADMINISTRATIVE EXPENSES Unit: Million Baht, % 9.4% 8.0% 6.3% 6.9% 5.4% Total SG&A per total revenue -1.0% YoY 73.1 72.4 35% 39% Selling -36.7% YoY Expenses 22.9 Administrative 18.5 65% 61% 31% 14.5 Expenses 43% 69% 54% 57% 46% Q4/22 Q3/23 Q4/23 YE/22 YE/23
Slide 17: Net Profit
NET PROFIT NET PROFIT AND NET PROFIT MARGIN Unit: Million Baht, % 10.8% 9.0% 5.3% 6.9% 0.9% NPM -11.3% YoY 82.5 73.2 +610.0% YoY 31.7 Net Profit 14.2 2.0 Q4/22 Q3/23 Q4/23 2022 2023 YoY: Q4/23 vs Q4/22 YoY: YE/23 vs YE/22 Net profit was Baht 14.2 million, increased by Baht 12.2 million or 610.0% and
Slide 18: EBITDA and EBITDA Margin
EBITDA AND EBITDA Margin EBITDA Unit: Million Baht, % 18.9% 15.3% 14.8% 12.2% 5.5% EBITDA Margin +10.9% YoY 156.0 140.7 +141.5% YoY EBITDA 55.2 32.6 13.5 Q4/22 Q3/23 Q4/23 YE/22 YE/23 YoY: Q4/23 vs Q4/22 YoY: YE/23 vs YE/22 EBITDA was Baht 32.6 million, Increased by Baht 19.1 million or 141.5% and E
Slide 19: Profit and Loss Statement in YE/2023
PROFIT AND LOSS STATEMENT IN YE/2023 PROFIT AND LOSS STATEMENT IN YE/2023 Unit: Million Baht, % 100.0% 83.2% 2.6% 4.2% Gain on 3.0% exchange 2.8 7.0% rate Total Revenue COGS Selling Expense Administrative Interest and Tax Net Profit Expenses YE/2023 Analysis • The company has a total revenue of Baht
Slide 20: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % Asset Liability & Shareholders’ Equity -3.8% YoY -3.8% YoY 1,414.6 1,414.6 22.9 2% 1,361.5 1,361.5 Other liabilities Other currents 68.3 5% 105.4 7% 21.2 2% 62.5 5% 115.8 8% 82.2 6% Trade and other payables Cash an
Slide 21: Key Financial Ratios
KEY FINANCIAL RATIOS CURRENT RATIO D/E RATIO Unit: Times Unit: Times 3.43 3.41 3.16 0.51 0.40 0.35 Q4/22 Q3/23 Q4/23 Q4/22 Q3/23 Q4/23 ROA* ROE* Unit: % Unit: % 6.45 8.99 5.29 7.57 4.35 6.34 Q4/22 Q3/23 Q4/23 Q4/22 Q3/23 Q4/23 *ROA = Trailing-12-month Net profit/ Total average assets *ROE = Trailing
Slide 22: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 22
Slide 23: 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 24: 2024 PACO Strategy
2024 PACO STRATEGY EXPANDING CAPABILITIES CONTINOUS CAPACITY OF CORE BUSINESS EXPANSION FOR GROWTH • Consistently acquiring new • Expanding business capacity through customers domestically and abroad continuous investment in machineries • Maintain international coverage and facilities globally • Inc
Slide 25: Expanding Capabilities of Core Business (1/2)
EXPANDING CAPABILITIES OF CORE BUSINESS (1/2) Consistently Acquiring New Customers Maintain International Coverage Globally Domestically And Abroad Revenue from International Business Unit: Million Baht +26.9% YoY 750.0 699.7 Russia 551.3 Europe America Japan PACO has signed a contract to produce ai
Slide 26: Expanding Capabilities of Core Business (2/2)
EXPANDING CAPABILITIES OF CORE BUSINESS (2/2) Number of Branches Continuously Expanding Paco Hub Branches Unit: Million Baht ➢ Continuously expanding the "PACO Auto Hub branch, focusing on increasing distributors through online marketing activities +20-30 Branches PACO AUTO HUB Online Marketing 220-
Slide 27: 2024 PACO Strategy
2024 PACO STRATEGY EXPANDING CAPABILITIES CONTINOUS CAPACITY OF CORE BUSINESS EXPANSION FOR GROWTH • Consistently acquiring new • Expanding business capacity through customers domestically and continuous investment in machineries abroad and facilities • Maintain international coverage • Increase aut
Slide 28: 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 29: 2024 PACO Strategy
2024 PACO STRATEGY EXPANDING CAPABILITIES CONTINOUS CAPACITY OF CORE BUSINESS EXPANSION FOR GROWTH • Consistently acquiring new • Expanding business capacity through customers domestically and continuous investment in machineries abroad and facilities • Maintain international coverage • Increase aut
Slide 30: Innovative Products and Trends: Relocating Customers
EXPLORE NEW BUSINESS OPPORTUNITIES THROUGH INNOVATIVE PRODUCTS AND TRENDS Capturing Relocating Customers Project Update Capture Relocating Customers from China 2022 Several Auto manufacturers in China have relocated in Thailand to benefit from tax system. ➢ To benefit from tax, factory must source c
Slide 31: Innovative Products and Trends: 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 32: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY INDUSTRY OUTLOOK AND 4 2024 OUTLOOK 32
Slide 33: 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 34: 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 35: Global Heat Exchanger Market 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 36: 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 37: 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 37
Slide 38: 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 39: 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 40: 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 41: 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 42: 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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