President Automobile Industries Public Co., Ltd. · SET:PACO
President Automobile Industries Public — Q3 2023 Earnings Presentation
36 slides from President Automobile Industries Public's earnings presentation, Dec 7, 2023
Slide 1: Analyst Presentation Q3/2023
ANALYST PRESENTATION Q3/2023 7th December 2023 President Automobile Industries PLC. 1
Slide 2: Q3/2023 Highlight
Q3/2023 HIGHLIGHT PACO Display Strong Material Cost Project with Net Profit Growth of Gradually Decline Kubota Exceeds 32.7% QoQ Resulted In Better GP Target • Operating revenue was Baht 278.6 • The Company’s Cost of raw materials • After winning the deal in April 2023, million in Q3/23 increased by
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 Innovation and Operational Strong Brand under PACO One-Stop Service Excellence Provide high international- Cover more than 90% of all car Most Up-to-date Technology and standard quality products to models i
Slide 7: 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 8: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 8
Slide 9: Q3/2023 Financial Highlight
Q3/2023 FINANCIAL HIGHLIGHT Operating Revenue in Q3/2023 Unit: Million Baht, % Financial Summary 278.56 MB +3.8% QoQ 3.8% YoY GPM and NPM 278.6 268.4 Q3/2023 Q3/2023 16.9% 10.8% +50.0% QoQ +19.0% QoQ +32.7% QoQ 44.5% YoY 30.8% YoY ROA ROA and and ROE ROE 47.1 55.2 Q3/2023 Q3/2023 46.4 31.4 23.9 31.7
Slide 10: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY CHANNEL Unit: Million Baht, % +16.6% YoY +16.6% YoY +15.3% YoY +15.3% YoY 765.8 765.8 +3.8% QoQ 656.6 8% Outsource +3.8% QoQ 656.6 12% 67% International 60% 278.6 92% Manufacturing 278.6 241.6 268.4 88% 268.4 241.6 9% 6% 11% 63% 68% 70% 89% 91% 94% 40
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, % -3.6% YoY -3.6% YoY 259.8 259.8 1% 250.4 250.4 1% OEM 17% 12% OES -4.5% YoY -4.5% YoY 31% 28% Others -2.5% QoQ -2.5% QoQ 30% Evaporator 33%
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, % +29.9% YoY +29.9% YoY 515.3 OES +26.7% YoY 515.3 +26.7% YoY 0.2% 2% OEM 1% Others +6.8% QoQ +6.8% QoQ 16% Evaporator 396.8 396.8 0.2%
Slide 13: Efficiency
EFFICIENCY CONDENSER EVAPORATOR Unit: Number of unit, % Utilization Unit: Number of unit, % Utilization 106.45% 81.38% 98.56% 76.01% 67.70% 70.00% 70.04% 77.40% 87.45% 86.28% Utilization 80.63% 77.38% 78.67% Utilization 48.23% Rate Rate 107,800 215,310 103,600 206,360 101,840 203,680 198,320 Total 9
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% 231.4 MB 2,500 2,032 2,171 2,000 Q3/2023 1,500 Material Costs 1,000 65% 500 0 2021 2022 2023 1/4/21 2/4/21 3/4/21 4/4/2
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, % 18.2% 17.0% 18.1% 13.7% GPM from Manufacturing 17.2% 12.0% 16.9% 13.5% 11.7% 16.4% 16.6% GPM 9.2% GPM from Outsource 5.4% 11.2% 8.8% -5.2% YoY 109.1 4% 103.5 7% +13.7% YoY +50.0%
Slide 16: Selling & Administrative Expenses
SELLING & ADMINISTRATIVE EXPENSES SELLING & ADMINISTRATIVE EXPENSES Unit: Million Baht, % 7.3% 7.2% 6.6% 6.2% 6.3% Total SG&A per total revenue +15.6% YoY 57.9 +8.2% YoY 50.1 +3.4% QoQ Selling 35% Expenses 36% 17.1 17.9 18.5 Administrative 65% 41% 35% 43% 64% Expenses 59% 65% 57% Q3/22 Q2/23 Q3/23 9
Slide 17: Net Profit
NET PROFIT NET PROFIT AND NET PROFIT MARGIN Unit: Million Baht, % 13.4% 10.8% 11.7% 8.3% 7.3% NPM -9.1% YoY -26.7% YoY +32.7% QoQ 80.5 59.0 34.9 31.7 23.9 Net Profit Q3/22 Q2/23 Q3/23 9M/22 9M/23 YoY: Q3/23 vs Q3/22 QoQ: Q3/23 vs Q2/23 YoY: 9M/23 vs 9M/22 Net profit was Baht 31.7 million, decreased
Slide 18: Profit and Loss Statement in 9M/2023
PROFIT AND LOSS STATEMENT IN 9M/2023 PROFIT AND LOSS STATEMENT IN 9M/2023 Unit: Million Baht, % 100.0% 82.3% 2.5% 4.7% Gain on 3.2% exchange 19.6 7.3% rate Total Revenue COGS Selling Expense Administrative Interest and Tax Net Profit Expenses 9M/2023 Analysis • The company has a total revenue of Bah
Slide 19: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % Asset Liability & Shareholders’ Equity -1.5% -1.5% 1,414.6 1,393.9 1,414.6 1,393.9 Other currents 22.9 2% 25.1 2% 68.3 5% Other liabilities 105.4 7% 68.5 5% 126.1 9% 82.2 6% Trade and other payables Cash and cash 1
Slide 20: Key Financial Ratios
KEY FINANCIAL RATIOS CURRENT RATIO D/E RATIO Unit: Times Unit: Times 3.06 3.16 0.51 0.44 2.20 0.40 Q3/22 Q2/23 Q3/23 Q3/22 Q2/23 Q3/23 ROA* ROE* Unit: % Unit: % 10.59 7.66 6.91 4.89 6.34 4.35 Q3/22 Q2/23 Q3/23 Q3/22 Q2/23 Q3/23 *ROA = Trailing-12-month Net profit/ Total average assets *ROE = Trailin
Slide 21: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 21
Slide 22: PACO Strategic Direction
PACO STRATEGIC DIRECTION Leading One-Stop-Service Auto- +15-20% CAGR Parts Player in the Region • Digitalizing operation and system • Strengthen PACO brand for OES and REM 2025 • Increase product coverage through new product categories Expansion for The Future • Expanding capacity for growth • Autom
Slide 23: 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 24: Expanding Capabilities of Core Business
EXPANDING CAPABILITIES OF CORE BUSINESS Consistently Acquiring New Customers Maintain International Coverage Globally Domestically And Abroad Revenue from International Business Unit: Million Baht Russia +29.9% YoY Europe 551.3 America China Japan 515.3 Middle East PACO has signed a contract to prod
Slide 25: 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 26: Continuous Capacity Expansion for Growth
CONTINOUS CAPACITY EXPANSION FOR GROWTH Expanding Capacity and Automation Investment in Machineries Target Investment in Machineries ➢ To increase production capacity and increase automation to control Increase automation machinery to achieve a 10-15% costs 1 increase in capacity Unit: Number of uni
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: Explore New Business Opportunities Through Innovative Products and Trends
EXPLORE NEW BUSINESS OPPORTUNITIES THROUGH INNOVATIVE PRODUCTS AND TRENDS NPD Capturing Relocating Customers Capture Relocating Customers from China Several Auto manufacturers in China have relocated in Thailand to benefit from tax system. Aerospace Chiller ➢ To benefit from tax, factory must source
Slide 29: Agenda
AGENDA 1 COMPANY OVERVIEW 2 FINANCIAL PERFORMANCE 3 2024 STRATEGY 4 INDUSTRY OUTLOOK 29
Slide 30: The Growth of the Automotive Industry
The Growth of the Automotive Industry: An Opportunity for Business Expansion Global Automobile Sales Volume Unit: Million cars 5.0% 3.6% 3.2% 2.8% -2.3% Growth Rate (%) 91.3 93.9 88.5 4.5 Middle East & Africa 83.2 85.4 4.4 1.8 81.3 4.3 1.8 Eastern Europe 3.7 4.1 1.7 3.4 3.9 1.6 16.1 1.4 14.2 15.1 We
Slide 31: Thailand Auto Part Export Value
The Growth of the Automotive Industry: An Opportunity for Business Expansion Thailand Auto Part Export Value Unit: Hundred Billion Baht 28.8% 7.8% 7.6% 2.8% 3.70% -10.2% -17.6% Growth Rate (%) CAGR +3.2% 5.4 5.6 5.8 5.3 5.0 8.0% 4.7 9.5% 3.9 10.1% 11.0% Export Value Others 61.4% 2018 2019 2020 2021
Slide 32: Opportunity for Growth in Domestic Automotive Parts
Opportunity for growth in the market value of domestic automotive parts Expansion of domestic automotive production (OEM Market) Cumulative Registered Automobiles in Thailand (OES/REM) Unit: Million cars Unit: Million Cars +7.7% Growth Rate 19.20 19.74 20.35 2.17 2.10 17.61 17.81 18.62 2.01 16.86 1.
Slide 33: 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 33
Slide 34: 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 35: 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 36: 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
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