President Automobile Industries Public Co., Ltd. · SET:PACO
President Automobile Industries Public — President Automobile Industries — Q1 2023 Earnings Presentation
36 slides from President Automobile Industries Public's earnings presentation, Jun 8, 2023
Slide 1: Analyst Presentation Q1/2023
ANALYST PRESENTATION Q1/2023 8th June 2023 President Automobile Industries PLC.
Slide 2: Q1/2023 Highlight
Q1/2023 HIGHLIGHT PACO Display Price of Raw Obtained Deal by Strong Topline Materials begins "Kubota" for Agri Growth of 21.0% YoY to Recover vehicle market • Operating Revenue in Q1/2023 • PACO’s major raw material – • During Aril 2023, PACO wins a was Baht 218.8 million, Aluminum global prices hav
Slide 3: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2023 OUTLOOK
Slide 4: 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 team Strong foothold in Thailand and Abroad Over 200 branches of PACO has over 2,000 SKUs for Air originated back from 1991 when
Slide 5: Company History
COMPANY HISTORY • Registered business • Expanding overseas • Expanded overseas • Expanding the plant “PACO under the name markets by starting with markets in North America. 2"on more than 6,219 square “President Automobile Singapore, Indonesia, wa of land Industries Co., Ltd.” Malaysia. • Expanding
Slide 6: PACO Product Portfolio
PACO PRODUCT PORTFOLIO Revenue Structure by Product Type Evaporator Other Automotive 70% Condenser (Manufacturing) 19% (Manufacturing) 1% Products Of revenue Of revenue Of revenue (Manufacturing) Manufacturing A/C Hoses Radiator Evaporator 19% Total Suspension 218.8 MB Condenser 70% In Q1/2023 Other
Slide 7: PACO Market Breakdown
PACO MARKET BREAKDOWN Revenue Structure by Country Unit: MB, % Presence in 26 Countries around the World 36% Thailand 3% 34% U.S. 24% Total Middle East Domestic 218.8 MB International and Africa 36% 64% Asia In Q1/2023 3% Others Others include European Region and Australia
Slide 8: PACO Business Along the Value Chain
PACO BUSINESS ALONG THE VALUE CHAIN Upstream Midstream Downstream Aftersales 7% 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 92%Of revenue Manufacturer Showroom 1% Of revenue OEM
Slide 9: PACO Key Strengths
PACO ENSURES TO MAINTAIN COMPETITIVENESS 1 Leader in Aircon Parts with Strong Brand under PACO • Cover more than 90% of all car models in the market • Physical store un PACOAutoHub 2 Innovation and Operational Excellence PACO • • Technological advancement and New product development Top-class materi
Slide 10: PACO Existing Facilities
PACO EXISTING FACILITIES Insert photo Insert photo PACO Factory 1 PACO HQ and Factory 2 Domestic Distribution Center Factory to produce component Factory to assemble evaporator, parts of condenser/evaporator condenser and hose Capacity: Capacity: Capacity: ➢ 800 sq. m of office space ➢ 1,000 sq. m o
Slide 11: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2023 OUTLOOK
Slide 12: PACO Strategic Direction
PACO STRATEGIC DIRECTION Leading One-Stop-Service Auto-Parts +20-25% CAGR Player in the Region • Digitalizing operation and system • Strengthen PACO brand for OES and REM • Increase product coverage through new product categories 2025 Expansion for The Future • Expanding capacity for growth • Automa
Slide 13: PACO Strategy
PACO STRATEGY EXPANDING CAPABILITIES STRENGTHENING PRESENCE OF CORE BUSINESS ALONG THE VALUE CHAIN • Strengthening PACO brand • OEM: Capturing relocating car manufacturers from China • REM: Securing more volume domestically and internationally through acquiring new • OES: Enhancing collaboration wit
Slide 14: Expanding Capabilities of Core Business
EXPANDING CAPABILITIES OF CORE BUSINESS Revenue from REM Q1/2023 Progress Unit: Million Baht 820.9 PACO has signed a contract to produce 647.8 air conditioning parts for agricultural 616.5 and construction vehicles with the Kubota Group ➢ Models: loaders, tractors, harvesters 204.6 ➢ Products: air c
Slide 15: Strengthening Presence Along the Value Chain
STRENGTHENING PRESENCE ALONG THE VALUE CHAIN Expanding OEM Business Ramping Up Volume for OES International Conflicts Continuous Innovation Customers in US and Europe seek for new suppliers in Seeking for new customers by continuous launching high different countries to reduce and diversify risks qu
Slide 16: Innovating New Products and R&D
INNOVATING NEW PRODUCTS AND R&D 4 New Product Lines 4 New Product Lines 1 New Product Lines 286 New SKUs 315 new SKUs 121 new SKUs 2021 2022 2023
Slide 17: Increasing International Coverage
INCREASING INTERNATIONAL COVERAGE Revenue from International Business Key markets where PACO Primary Markets with Countries which import have supporting some Parts cars from key markets Unit: Million Baht Components and primary markets 551.3 • Middle east • Europe • Africa • America • China • Centra
Slide 18: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2023 OUTLOOK
Slide 19: Q1/2023 Financial Highlight
Q1/2023 FINANCIAL HIGHLIGHT Operating Revenue Financial Summary Unit: Million Baht, % 218.8 MB -7.1% QoQ 7.1% QoQ 235.5 218.8 -26.5% QoQ GPM and NPM +61.2% QoQ Q1/2023 Q1/2023 11.4% 1.5% +69.7% QoQ 0.6% QoQ 0.6% QoQ 28.1 24.9 21.8 ROA ROA and and ROE ROE 13.5 3.4 5.18 xx % % 7.44 xx % % 2.0 Operatin
Slide 20: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY CHANNEL Unit: Million Baht, % +21.0% YoY +21.0% YoY -7.1% QoQ -7.1% QoQ 235.5 235.5 8% 218.8 218.8 10% Trading 180.8 180.8 13% 66% International 64% 56% 92% 90% Manufacturing 87% 44% 34% 36% Domestic Q1/22 Q4/22 Q1/23 Q1/22 Q4/22 Q1/23 YoY: Q1/23 vs Q
Slide 21: Domestic Sales Performance
DOMESTIC SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % -0.5% YoY -0.5% YoY -1.5% QoQ -1.5% QoQ 80.9 80.1 81.0 79.7 80.1 79.7 1% 0.5% 1% OEM 15% 17% 10% OES 25% 31% 29% Others 37% 24% Evaporator
Slide 22: International Sales Performance
INTERNATIONAL SALES PERFORMANCE OPERATING REVENUE BREAKDOWN BY CUSTOMER GROUP OPERATING REVENUE BREAKDOWN BY PRODUCT TYPE Unit: Million Baht, % Unit: Million Baht, % +38.1% YoY +38.1% YoY -10.0% QoQ -10.0% QoQ 154.6 154.6 2% 2% 139.1 139.1 OES 13% 3% OEM 1% Others 15% Evaporator 100.8 100.8 3% 1% 15
Slide 23: Efficiency
EFFICIENCY CONDENSER EVAPORATOR Unit: Number of unit, % Utilization Unit: Number of unit, % Utilization 98.32% 73.61% 85.35% 85.61% 66.67% 65.15% 79.69% 75.21% Utilization 41.31% 40.16% Rate Utilization Rate 26,950 25,900 287,280 Total 25,200 287,210 276,020 Capacity 41,333 40,428 9,391 241,500 71,1
Slide 24: Cost of Good Sold
COST OF GOOD SOLD MANUFACTURING ALUMINUM MARKET PRICE Unit: Million Baht, % Unit: USD/ton 4,500 Other Costs 4,000 3,849 1% Utility Costs 3,500 19% 3,168 3,000 2,540 2,500 2,260 2,032 193.9 MB 2,000 Labor Costs Q1/2023 1,500 21% Material Costs 59% 1,000 500 0 2021 2022 2023 Source: Investing.com • CO
Slide 25: 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, % 18.8% 17.0% 12.0% GPM from Manufacturing 11.9% 11.9% 11.3% GPM 11.0% 11.4% GPM from Trading 4.5% -19.2% YoY -11.4% QoQ 30.8 3% 28.1 7% 24.9 10% GP from Trading 97% 93% 90% GP fro
Slide 26: Selling & Administrative Expenses
SELLING & ADMINISTRATIVE EXPENSES SELLING & ADMINISTRATIVE EXPENSES Unit: Million Baht, % 9.6% 8.7% 8.2% Total SG&A per total revenue +33.5% YoY +9.7% QoQ 21.5 19.6 27% Selling Expenses 16.1 36% 35% 73% Administrative Expenses 64% 65% Q1/22 Q4/22 Q1/23 YoY: Q1/23 vs Q1/22 QoQ: Q1/23 vs Q4/22 Selling
Slide 27: Net Profit
NET PROFIT NET PROFIT AND GROSS PROFIT MARGIN Unit: Million Baht, % 9.1% 0.9% 1.5% NPM -79.8% YoY +69.7% QoQ 16.9 3.4 2.0 Net Profit Q1/22 Q4/22 Q1/23 YoY: Q1/23 vs Q1/22 QoQ: Q1/23 vs Q4/22 Net profit was Baht 3.4 million, decrease by Baht 13.5 million or 79.8% mainly due to: Net profit was Baht 3.
Slide 28: Profit and Loss Statement in Q1/2023
PROFIT AND LOSS STATEMENT IN Q1/2023 PROFIT AND LOSS STATEMENT IN Q1/2023 Unit: Million Baht, % 86.0% 100.0% 2.6% 7.0% 0.6% 2.4% 1.5% Revenue COGS Selling Expense Administrative Losses on Interest and Tax Net Profit Expenses Exchange Rate Q1/23 Analysis • The company has a total revenue of Baht 225.
Slide 29: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % +3.2% +3.2% 1,460.3 1,460.3 1,414.5 21.9 1,414.5 22.9 2% 1% Other liabilities Other currents 128.7 9% 105.4 7% 163.3 11% 131.9 9% 82.2 6% 113.8 8% Cash and cash equivalents Trade and other payables 237.0 17% 214.4
Slide 30: Key Financial Ratios
KEY FINANCIAL RATIOS CURRENT RATIO D/E RATIO Unit: Times Unit: Times 0.56 3.43 0.51 2.99 2.55 0.31 Q1/22 Q4/22 Q1/23 Q1/22 Q4/22 Q1/23 ROA ROE Unit: % Unit: % 7.85 10.83 6.45 8.99 5.18 7.44 Q1/22 Q4/22 Q1/23 Q1/22 Q4/22 Q1/23
Slide 31: Agenda
AGENDA 1 COMPANY OVERVIEW STRATEGY & STRATEGIC 2 DIRECTION 3 FINANCIAL PERFORMANCE INDUSTRY UPDATES & 4 2023 OUTLOOK
Slide 32: Economic Outlook
Economic Outlook Thailand’s GDP Growth Rate Private Final Consumption Expenditure Unit: % Unit: Trillion Baht PFCE is expected to continuously 6.4 6.4 11.18 grow at 5.3% in 10.61 Wholesale and 9.47 10.08 2023-2025 mainly 7.58 8.00 8.41 8.31 8.46 retail trade of from: 4.2 4.2 4.4 automobiles & • Tour
Slide 33: 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 34: OEM and REM Market Growth Outlook
Additionally, OEM market is expected to grow by 5.6% in 2024 due to the increasing automotive production while REM market is expected to grow, corresponding to the higher number of cars aged more than 5 years OEM OES/REM Thailand’s Automotive Production Cumulative Registered Automobiles in Thailand
Slide 35: 2023 Outlook
2023 Outlook Capturing Relocating Invest in additional capacity New Product to Customers from China to expand US Market Capture EV Segment • Capture large opportunities • Invest in 1-2 additional • Study and develop the from auto factories that have machines to increasing battery cooler product to r
Slide 36: Thank You
THANK YOU Please kindly give us your feedback IR CONTACT Name: Email: Tel:
President Automobile Industries — Q1 2023 Earnings Presentation on 6ix