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

P.C.S. Machine Group Holding Public — Corporate Update (September 2014)

38 slides from P.C.S. Machine Group Holding Public's corporate update, Sep 10, 2014

  1. Slide 1: Opportunity Day

    PCSGH P.C.S. Machine Group Holding Public Co., Ltd. OPPORTUNITY DAY 10th September 2014 11:20 – 12:35 1101 Rm. 11th Fl. The Stock Exchange of Thailand Building http://www.pcsgh.com ir.@pcsholding.com © 2014 All Rights Reserved 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 • Major Shareholders: PCSGH • Mr. SIRIPHONG RUNGROJKITIYOT 37.41% 1st Trading Day • Ms. WANNA RAOMANACHAI 36.57% 14th March 2014 • Public 26.02% (402 millions Shares) • Market Cap 15.450 Billion THB @ 8th Sep. 2014 2014 2013 2009 2008 EURO VI compl

  5. Slide 5: 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* 1,651 671 244 (1st Sep. 2014) Sales of 2013 4,016 1,415 635 (Million Baht) Main Process Mac

  6. Slide 6: 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 6

  7. Slide 7: 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

  8. Slide 8: 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 8

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: 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 11

  12. Slide 12: 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 12

  13. Slide 13: Business Overview of PCF

    Business Overview of PCF Forging Process Raw Materials Steel Bar Pre Heating to Heat Trimming Treatment about 1,200 °C Forging Products © 2014 All Rights Reserved 13

  14. Slide 14: Value Customers

    Value Customers OEM Auto Maker Group Tier 1 Suppliers Group © 2014 All Rights Reserved 14

  15. Slide 15: 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

  16. Slide 16: Industry Overview

    Industry Overview © 2014 All Rights Reserved 16

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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 15 600

  20. Slide 20: Thailand Automotive Sales 2012 – H1.2014

    Thailand Automotive Sales 2012 – H1.2014 Thousands unit QoQ 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 7

  21. Slide 21: Business Overview

    Business Overview © 2014 All Rights Reserved 21

  22. Slide 22: Sales by Business Unit

    Sales by Business Unit Change of Sales PCF BU PCW PCD PCF 0.4% QoQ PCD 25.0% YoY Q2.2014 PCD PCF PCF 0.2% PCD 0.2% 19.3 23.7 % % PCW 74.6% Q1.2014 Q2.2013 PCW PCW 76.0 80.5 % % © 2014 All Rights Reserved 22

  23. Slide 23: Sales by Customer Category

    Sales by Customer Category Tier 1 Supplier 20.1% Tier 1 Supplier 16.5% Q1.2014 OEM Auto Maker 79.9% Q2.2014 Non- Auto Tier 1 5.2% Supplier OEM 18.3% Auto Maker 83.5% Q2.2013 OEM Auto Maker 76.6% © 2014 All Rights Reserved 23

  24. Slide 24: Sales by Destination

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

  25. Slide 25: 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% 30%

  26. Slide 26: Financial Overview

    Financial Overview Historical Information 2010 – 2013 © 2014 All Rights Reserved 26

  27. Slide 27: Historical Performance

    Historical Performance Million THB Million THB Profitability 2010 – 2013 % Sales 2010 - 2013 3,500 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

  28. Slide 28: Financial Overview: Summary Q2.2014

    Financial Overview Financial Summary Q2.2014 © 2014 All Rights Reserved 28

  29. Slide 29: Sales of Q2.2014

    Sales of Q2.2014 Millions Millions Baht QoQ Baht 1,600 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 1,

  30. Slide 30: Profitability of Q2.2014

    Profitability of Q2.2014 Millions % Millions % Baht QoQ Baht 800 40.0 800 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 25.

  31. Slide 31: Financial Overview: Summary H1.2014

    Financial Overview Financial Summary H1.2014 © 2014 All Rights Reserved 31

  32. Slide 32: 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 the political incident 2,096 2,096 2,000 • Some customers success in increasing 2,000 their Export portion 1,500 1

  33. Slide 33: Profitability of H1.2014

    Profitability of H1.2014 Millions % Millions % Baht HoH 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 R

  34. Slide 34: Business Outlook

    Business Outlook © 2014 All Rights Reserved 34

  35. Slide 35: 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) • S

  36. Slide 36: 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

  37. Slide 37: 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

  38. Slide 38: Q & A

    Q&A © 2014 All Rights Reserved 38

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