P.c.s. Machine Group Holding Public Company Ltd · SET:PCSGH
P.c.s. Machine Group Holding Public — P.C.S. Machine Group Holding — IPO Roadshow (December 2013)
25 slides from P.c.s. Machine Group Holding Public's IPO roadshow presentation, December 2013
Slide 1: P.C.S. Machine Group Holding PLC. Roadshow Presentation
Private & Confidentia P.C.S. Machine Group Holding PLC. (“PCSGH”) Roadshow Presentation December 2013 Monday, February 10, 14
Slide 2: Agenda
Private & Confidential • Company Overview • Key Investment Highlights • Financial Highlights • Offering Summary & Timeline 2 Monday, February 10, 14
Slide 3: Company Overview
Private & Confidential Company Overview 3 Monday, February 10, 14
Slide 4: Major Development
Private & Confidential Major Development Technology 2013 • P.C.S. Machine Group 2009 Holding PCL Diversification & (“PCSGH”) was • PCW began the incorporated with production lines of initial paid-up capital 2008 of THB 6 mm in the common rail parts that are in form of limited • PCW emphasized the ma
Slide 5: Group Structure and Shareholding Structure
Private & Confidential Group Structure and Shareholding Structure PCSGH’s Group Structure and Products P.C.S. Machine Group Holding PCL (“PCSGH”) 100% 100% 100% P.C.S. Precision Works Co., P.C.S. Die Casting Co., Ltd. P.C.S. Forging Co., Ltd. Ltd. (“PCW”) (“PCD”) (“PCF”) Precision Engineering Alumin
Slide 6: Business overview of PCSGH
Private & Confidential Business overview of PCSGH PCF PCW PCD Primary material Steel Bar Steel Bar Aluminium Steel Forging Cast Iron Aluminium Die Secondary material Steel Forging (From outside) Casting Machining process Machining Process Machining Sell to PCW for Machining process Sell to PCW to as
Slide 7: Board of Director
Private & Confidential Board of Director Chairman of the Board, Independent Director, Audit Committee Member Vice Chairman Mr. Chakramon Mr. Siripong Rungrojkitiyos Phasukavanich • Well-respected executive with extensive • Founder of the Company with over 40 years experience in Economics and Industr
Slide 8: Key Management
Private & Confidential Key Management Chief Executive Officer Mr. Prasong Adulratananukul • 13 years with Siam Kubota Corporation • 5 years as Tractor Manufacturing Division Manager at Siam Kubota Chief Financial Officer / Head of Corporate Administration Chief Operation Officer / Head of Engineerin
Slide 9: Key Investment Highlights
Private & Confidential Key Investment Highlights 9 Monday, February 10, 14
Slide 10: Key Investment Highlights
Private & Confidential Key Investment Highlights 1 • PCSGH is engaged in the manufacturing of highly value added components of engine, Focused value chain and transmission and final drive which require high precision technology and know-how resilience to model upgrades • Engine, transmission and fin
Slide 11: Key Investment Highlights (Cont'd): Focused value chain
Private & Confidential Key Investment Highlights (Cont’d) 1 Focused value chain and resilience to model upgrades Products Category of PCSGH Powertrain systems Engine • Combust fuel and generate energy for the entire system • Company products : such as camshaft, commonrail, balance shaft, engine cove
Slide 12: Key Investment Highlights (Cont'd): In-house know-how and technology
Private & Confidential Key Investment Highlights (Cont’d) 2 Champion of industry with in-house know-how and technology • PCSGH continuously developed production technology to support future technology requirement, especially in Hot Forging and Die Casting technology, to produce light weight vehicles
Slide 13: Key Investment Highlights (Cont'd): Technology readiness
Private & Confidential Key Investment Highlights (Cont’d) 2 Champion of industry with in-house know-how and technology (cont’d) Readiness to produce highly complicated automotive parts • As future vehicles will have progressively higher performance and capability, the quality of automotive parts mus
Slide 14: Strong diversified customer base with high growth potential
Private & Confidential Key Investment Highlights (Cont’d) 3 Strong diversified customer base with high growth potential PCSGH’s Customers Automotive Production in Thailand Production of automotive decreased by 2,454 • PCSGH has established good 11.4% from 2010 to 2011 due to the relationships with m
Slide 15: Growth Potential
Private & Confidential Key Investment Highlights (Cont’d) 3 Strong diversified customer base with high growth potential (cont’d) Growth Potential Plans Customers Production per Investment Cost Implementatio Year n Year • Invest in Differential Case manufacturing New OEM Supplier Tier 1 in 300,000 pi
Slide 16: Best-in-class performance with consistently high margins
Private & Confidential Key Investment Highlights (Cont’d) 4 Best-in-class performance with consistently high margins Sales & Sales Growth Superior Margins % 37.8 = GR CA THB mm Avg. Gross Profit % Margin = 15.0% Avg. Net Profit Margin = 8.7% • PCSGH has recorded strong revenue growth of 13.8% and 66
Slide 17: Strong government support and BOI benefits
Private & Confidential Key Investment Highlights (Cont’d) 5 Strong government support and BOI benefits • Automotive & automotive parts sector is identified as a strategic sector for Thai manufacturing industry • Company receives BOI privileges on per project levels BOI benefits • Projects in high-te
Slide 18: Well-established company and highly-experienced management
Private & Confidential Key Investment Highlights (Cont’d) 6 Well-established company and highly-experienced management • PCSGH has been in auto business for more than 10 years since the establishment of P.C.S. Precision Works Co., Ltd. in May 2002 Mr. Prasong Adulratananukul Mr. Nattawat Asadornming
Slide 19: Financial Highlights
Private & Confidential Financial Highlights 19 Monday, February 10, 14
Slide 20: Financial Highlights: 2012 Sales Breakdown
Private & Confidential Financial Highlights 2012 Sales Breakdown Customer Type Customer location Customer type Amount Customer Amount (THB Domestic location 4,564.9 (THB mm) OEM 4,503.4 mm) Abroad 728.8 OEM Supplier Tier 482.5 1 non-Auto 307.8 Total 5,293.7 Total 5,293.7 Revenue Breakdown PCSGH cu
Slide 21: Financial Highlights (Cont'd)
Private & Confidential Financial Highlights (Cont’d) Sales & Sales Growth Gross Profit & Gross Margin (%) 8% = 37. GR CA THB mm THB mm Net Profit & Net Profit Margin PCSGH sales (core business) grew significantly, representing CAGR at 37.8%. The high jump in 2012 was due to domestic economic recov
Slide 22: Financial Highlights (Cont'd): Financial Position, ROE & ROA
Private & Confidential Financial Highlights (Cont’d) Financial Position ROE & ROA THB mm D/E Ratio PCSGH assets grew from THB 4,125 mm in 2010 to reach THB 5,940 mm in 2012, and went up further to THB 5,723 mm in 9M 2013. Total liability increased from THB 1,032 mm in 2010 to THB 4,259 mm in 9M 20
Slide 23: Summary of Financial Highlights
Private & Confidential Summary of Financial Highlights (THB mm) Period as of 2010 2011 2012 9M 2013 Financial Data Sales 2,790.6 3,174.3 5,293.7 4,035.7 Total Revenue 2,793.1 3,180.8 5,302.1 4,048.5 Gross Profit 793.9 915.2 1,861.8 1,282.2 Net Profit 675.5 788.6 1,704.9 1,157.3 EPS (THB per share) 5
Slide 24: Offering Structure
Private & Confidential Offering Structure 24 Monday, February 10, 14
Slide 25: IPO Offering Summary
Private & Confidential IPO Offering Summary Issuer P.C.S. Machine Group Holding PCL (“PCSGH”) Ticker PCSGH 389 million shares (at par value of THB 1) Total Issue Size • 389,000,000 newly issued shares Market Stock Exchange of Thailand (“SET”) Industry / Sector Industrials / Automotive Financial Advi
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