P.C.S. Machine Group Holding Public Company Ltd · SET:PCSGH

P.C.S. Machine Group Holding Public — Q2 2014 Earnings Presentation

45 slides from P.C.S. Machine Group Holding Public's earnings presentation, Aug 21, 2014

  1. Slide 1: Q2.2014 Business Briefing

    PCSGH P.C.S. Machine Group Holding Public Co., Ltd. Q2.2014 Business Briefing 21st August 2014 http://www.pcsgh.com ir.@pcsholding.com Presented by : Mr. PRASONG ADULRATANANUKUL – Chief Executive Officer © 2014 All Rights Reserved Mr. GRANTARIT KETSUMPAN – Investor Relations Manager 1

  2. Slide 2: Agenda

    Agenda Corporate Overview Industry Overview Business Overview Financial Overview Business Outlook © 2014 All Rights Reserved 2

  3. Slide 3: Corporate Overview

    Corporate Overview © 2014 All Rights Reserved 3

  4. Slide 4: Background

    Background • Registered Capital: Baht 1,545 million PCSGH • Major Shareholders: • Mr. SIRIPHONG RUNGROJKITIYOT 37.41% 1st Trading Day • Ms. WANNA RAOMANACHAI 37.41% 14th March 2014 • Public 25.18% (389 millions Shares) • Market Cap 15.759 Billion THB @ 8th August 2014 2014 2013 2009 2008 EURO VI com

  5. Slide 5: Board of Directors

    Board of Directors Independent Directors • Mr. CHAKRAMON PHASUKVANICH : Chairman of The Board, Audit Committee • Mr. PRAMOTE TECHASUPATKUL : Chairman of Audit Committee • Mr. VEERACHAI CHAOCHANKIT : Audit Committee Non Executive Directors • Mr. SIRIPHONG RUNGROJKITIYOT : Vice Chairman • Ms. WANNA RA

  6. Slide 6: Corporate Structure

    Corporate Structure PCSGH’s Shares 100% 100% 100% Found 2002 2004 2003 Registered Capital 450 350 350 (Million Baht) Area (138.88 Rai) 115,696 (72.31 Rai) 78,272 (48.92 Rai) 28,240 (17.65 Rai) (m2) Employees* 1,641 652 243 (1st August 2014) Sales of 2013 4,016 1,415 635 (Million Baht) Main Process M

  7. Slide 7: Location

    Location • Nakhon-Ratchasima • Northeast of Thailand, 250 km from Bangkok • 320 km to Seaport • 250 km to Suvarnabhumi Airport © 2014 All Rights Reserved Source: GoogleEarth 7

  8. Slide 8: Vision & Mission

    Vision & Mission To be THE MANUFACTURER OF CHOICE for Customer with World Class Quality MISSION : To Satisfy All Stakeholders VALUE : PCS People Premium Quality for Customer Corporate Governance for Social Professional Shareholders Benefits for Shareholder Customer – Focus Global Supply for growing

  9. Slide 9: Intrinsic Technology

    Intrinsic Technology • Co-Designed Products • Module Assembly Products • Own Designed Mold and Die • Own Designed Production Line, Jigs and Fixtures • Own Designed Automation System : Hands, Fingers and Brain of Robot © 2014 All Rights Reserved 9

  10. Slide 10: 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 © 2014 All Rights Reser

  11. Slide 11: Advance Technology: Emission Standard

    Advance Technology : Emission Standard Percentage of 1993 standard 100 2008 : Started Balance Mass Module complied to EURO V 80 2009 : Started Common Rail 60 complied to EURO VI CO PM HC+NOx 40 20 0 1993 EURO I 1997 EURO II 2001 EURO III 2006 EURO IV 2010 EURO V 2015 EURO VI 2015 : Thailand plan to

  12. Slide 12: Business Overview of PCW

    Business Overview of PCW Machining Process Raw Materials Steel Bar Steel Forging Cast Iron Machining Assembly Products © 2014 All Rights Reserved 12

  13. Slide 13: Business Overview of PCD

    Business Overview of PCD Die Casting Process Raw Materials Aluminum Ingot Melt to about Machining 600 C Die Casting De-burring Products © 2014 All Rights Reserved 13

  14. Slide 14: Business Overview of PCF

    Business Overview of PCF Forging Process Raw Materials Steel Bar Pre Heating to Heat Forging Trimming Treatment about 1,200 C Products © 2014 All Rights Reserved 14

  15. Slide 15: Value Customers

    Value Customers OEM Auto Maker Group Tier 1 Suppliers Group © 2014 All Rights Reserved 15

  16. Slide 16: On going Projects

    On going Projects Production per Year Investment Start of Project Customer (X 1,000 pcs) (millions THB) Production New Tier 1 Supplier in Differential Case 300 400 Late 2014 Thailand Camshaft Cover Tier 1 Supplier in Europe 300 300 Late 2014 Camshaft Assembly Existing Tier 1 Supplier 300 300 2015 Ba

  17. Slide 17: Industry Overview

    Industry Overview © 2014 All Rights Reserved 17

  18. Slide 18: Thailand Automotive: World Ranking

    Thailand Automotive : World Ranking Thousands Units 2013 Commercial Vehicles Production 21.9 Million Units World Ranking of 8,000 6,699 Thailand Vehicles Production 7,000 6,000 No. 5 5,000 4,032 4,000 0 3,000 2,000 1,4411,4151,4101,280 2 3 998 742 1,000 492 444 399 283 280 278 256 4 4 113 88 56 4 0

  19. Slide 19: Thailand Automotive: ASEAN

    Thailand Automotive : ASEAN Thousands Unit Light Commercial Vehicles Production Thousands Unit Passenger Cars Production 1,200 1,071 1,600 1,000 800 925 1,400 1,344 600 1,200 400 200 1,000 0 1999 7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 INDONESIA MALAYSIA PHILIPPINES T

  20. Slide 20: Thailand Automotive Production 2001-2013

    Thailand Automotive Production 2001- 2013 Millions unit 3.0 Flood Recovery Tsunami in Japan 1st Car Policy Flood in Thailand 2.45 2.46 2.5 2.0 Hamburger Crisis 0.96 1.07 1.65 1.46 1.5 1.39 1.29 1.19 0.55 1.13 0.40 1.00 0.54 0.93 0.32 1.0 0.28 0.30 0.75 0.31 0.58 0.30 1.45 1.33 0.46 0.25 0.5 0.95 0.9

  21. Slide 21: Thailand Automotive Production 2012 – H1.2014

    Thailand Automotive Production 2012 – H1.2014 Thousands unit 1,000  QoQ 900 1st Car Policy • Total Car Production decreased by 82 thousands unit or 15.9% from 800 Flood Recovery 730 Q1.2014 722 13 700 662 14 • 1-Ton Pickup / PPV production 10 619 589 Political decreased by 42 thousands unit or 15 6

  22. Slide 22: Thailand Automotive Sales 2012 – H1.2014

    Thailand Automotive Sales 2012 – H1.2014 QoQ  Thousands unit 1,000 • Domestic Sales decreased by 7,431 900 units or 3.3% from Q1.2014 1st Car Policy • 1-Ton Pickup Sales decreased by 800 Flood Recovery 10,014 units or 9.0% from Q1.2014 700 285 • Export decreased by 22,971 units or 288 Political 285

  23. Slide 23: Business Overview

    Business Overview © 2014 All Rights Reserved 23

  24. Slide 24: Sales by Business Unit

    Sales by Business Unit Change of Sales PCF BU PCW PCD PCF 0.4% PCD QoQ    25.0% YoY    Q2.2014 PCD PCF PCF PCD 19.3 0.2% 0.2% 23.7 % % PCW 74.6% Q1.2014 Q2.2013 PCW PCW 76.0 80.5 % % © 2014 All Rights Reserved 24

  25. Slide 25: Sales by Customer Category

    Sales by Customer Category Tier 1 Supplier 20.1% Tier 1 Supplier 16.5% Q1.2014 OEM Non- Q2.2014 Auto Auto Maker 5.2% 79.9% Tier 1 Supplier 18.3% Q2.2013 OEM Auto Maker 83.5% OEM Auto Maker 76.6% © 2014 All Rights Reserved 25

  26. Slide 26: Sales by Destination

    Sales by Destination Q2.2014 Q1.2014 Germany Brazil 0.028% France Brazil 5.18% 0.001% Domestic Export 9.70% 5.23% England Export 94.77% Domestic India 0.01% Italy 9.89% 0.001% 90.11% Japan 0.01% China 0.0001% 0.16% India 0.0009% Germany 0.04% Domestic Brazil England France Germany India Italy Japan

  27. Slide 27: Sales by Auto Maker Brand

    Sales by Auto Maker Brand TOYOTA 10.6% Other TOYOTA Other 1.4% ISUZU 29.1% MITSUBI 11.0% 3.0% SHI 14.9% Q1.2014 MITSUBI ISUZU SHI 27.7% FORD & MAZDA 13.7% 19.2% GM 24.8% Q2.2014 TOYOTA 7.4% Other 6.5% MITSUBI ISUZU SHI 34.6% FORD & 9.7% MAZDA GM Q2.2013 20.1% 24.6% FORD & MAZDA 17.1% GM 24.7% © 2014

  28. Slide 28: Average Capacity Utilization of Q2.2014

    Average Capacity Utilization of Q2.2014 100%  QoQ 100% 94.71% 90% • Average Capacity Utilization 90% 84.72% 84.72% 80.93% increased by 4.7 % of Q1.2014 80% 80% • Die Casting Inventory Adjustment 70% 70% 60% 60% 50% 50% YoY  40% 40% • Average Capacity Utilization decreased by 10.5 % of Q2.2013 30%

  29. Slide 29: Raw Material Usage of Q2.2014

    Raw Material Usage of Q2.2014 Tons 5,000  QoQ Tons 5,000 4,614 4,500 • Usage of Raw Material – Iron increased 4,500 23 tons or 0.7% of Q1.2014 509 4,000 4,000 • Usage of Raw Material – Aluminum 3,302 3,325 increased 368 tons or 31.6% of 1,069 3,325 3,500 3,500 Q2.2014 509 447 447 3,000 3,000 2,500

  30. Slide 30: Depreciation of Q2.2014

    Depreciation of Q2.2014 Millions THB 160  QoQ Millions THB 160 138 • Depreciation increased by Baht 6 138 140 140 137 132 millions or 4.5 % of Q1.2014 13 13 13 12 • PCW increased by Baht 3 millions 120 120 • PCD increased by Baht 3 millions 36 100 44 100 44 41 80 YoY  80 60 • Depreciation increase

  31. Slide 31: Financial Overview: Historical Information 2010–2013

    Financial Overview Historical Information 2010 – 2013 © 2014 All Rights Reserved 31

  32. Slide 32: Historical Performance

    Historical Performance Million THB Sales 2010 - 2013 Million THB 3,500 Profitability 2010 – 2013 % 40.0 8,000 35.2 7,000 Flood Recovery 3,000 35.0 1st Car Policy 29.7 28.4 28.8 32.2 30.0 6,000 Tsunami in Japan 2,500 5,302 5,162 Flood in Thailand 26.7 25.0 5,000 2,000 1,862 24.2 24.8 1,523 20.0 4,000

  33. Slide 33: Financial Status

    Financial Status Million THB Balance Sheet % % ROA & ROE 7,000 2.5 45 2.31 40.3 5,945 40 37.8 6,000 5,567 5,549 5,073 804 2.0 35 370 5,000 4,125 30 1,192 31.0 1.5 24.6 4,000 25 22.6 1,032 3,884 21.8 20 23.9 3,000 1.0 5,141 5,179 15 17.1 2,000 3,881 16.4 15.2 3,093 0.5 10 0.33 0.31 1,000 0.16 1,683 0

  34. Slide 34: Financial Overview: Financial Summary Q2.2014

    Financial Overview Financial Summary Q2.2014 © 2014 All Rights Reserved 34

  35. Slide 35: Sales of Q2.2014

    Sales of Q2.2014 Millions Millions Baht 1,600  QoQ Baht 1,600 • Sales decreased by Baht 76 million 1,453 1,400 or 7.0 % of Q1.2014 1,400 73.3 • Slowdown of Purchasing power due to 1,200 the political incident 1,200 1,086 1,010 • Some customers success in increasing 1,010 1,000 their Export portion

  36. Slide 36: Profitability of Q2.2014

    Profitability of Q2.2014 Millions Baht 800 % 40.0  QoQ Millions Baht % 800 40.0 • Gross Profit decreased by Baht 14 millions or 5.6% of Q1.2014 34.7 700 35.0 700 35.0 • Net Profit decreased by Baht 24 600 30.0 million or 10.4 % of Q1.2014 600 32.6 30.0 • Decrease in sales volume 505 500 22.9 23.3 2

  37. Slide 37: Financial Overview: Financial Summary H1.2014

    Financial Overview Financial Summary H1.2014 © 2014 All Rights Reserved 37

  38. Slide 38: Sales of H1.2014

    Sales of H1.2014 Millions Millions Baht  HoH Baht 3,000 3,000 2,869 • Sales decreased by Baht 159 million 144.3 or 7.1% of H2.2013 2,500 2,500 2,255 • Slowdown of Purchasing power due to 2,096 the political incident 2,096 2,000 • Some customers success in increasing 2,000 their Export portion 1,500

  39. Slide 39: Profitability of H1.2014

    Profitability of H1.2014 Millions Baht %  HoH Millions Baht % 1,600 40 1,600 40 • Gross Profit increased by Baht 7 36.5 millions or 1.5% of H2.2013 1,400 35 1,400 35 • Net Profit increased by Baht 29 million or 7.1 % of H2.2013 33.6 1,200 30 1,200 30 • Effect from Process Improvement and 1,046 Cost

  40. Slide 40: Movement of PCSGH's Stocks

    Movement of PCSGH’s Stocks Stocks Price (THB) Foreigner Ratio PCSGH’s stocks since IPO to 8th August 2014 12 8% 7% 10 6% 8 5% 6 4% 3% 4 2% 2 Coup started 1% 0 0% PCSGH IPO 14 Mar 2014 Foreigner © 2014 All Rights Reserved 40

  41. Slide 41: Business Outlook

    Business Outlook © 2014 All Rights Reserved 41

  42. Slide 42: Major Factors

    Major Factors  2014  • Stability and Relaxation of Political Situation • Effect of Situation in Middle East to the world oil price • Several Economic stimulus Programs from Government • Uptrend of Aluminum Price in Global refer • Increase of Car Export to London Metal Exchange Aluminum Price (LME)

  43. Slide 43: Thailand Automotive Production 2012 – 2014

    Thailand Automotive Production 2012 – 2014 Thousands unit 1,000 900 TAI Forecast 2014 Production 1st Car Policy 2.2 millions unit 800 Flood Recovery 730 722 700 662 619 Political Incident 589 600 562 320 527 517 509 499 326 500 279 266 435 218 259 400 140 220 205 167 300 200 397 382 348 334 373 338

  44. Slide 44: Forecast of Thailand Automotive Production

    Forecast of Thailand Automotive Production Millions unit TAI Forecast 2017 Production 4.0 Political Situation 3.0 millions unit 3.5 Flood Recovery 3.00 3.0 1st Car Policy Coup : 22nd May 2014 2.45 2.46 2.5 2.20 2.0 0.96 1.07 New VAT Rate 10% : 1st October 2015 1.5 1.0 AEC Effective : 31st December 2

  45. Slide 45: Thank You

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