P.C.S. Machine Group Holding Public Company Ltd · SET:PCSGH
P.C.S. Machine Group Holding Public — Q3 2018 Earnings Presentation
27 slides from P.C.S. Machine Group Holding Public's earnings presentation, Nov 23, 2018
Slide 1: Business & Financial Briefing Q3.2018
Business & Financial Briefing Q3.2018 As at 30th September 2018 Dated : 23rd November 2018 www.PCSGH.com | IR@PCSGH.com 1
Slide 2: Corporate Structure
Corporate Structure <GSies Holding & Thailand a Germany PCSGH Bre | : PCW a oa ~ [= ie PHG a So Real Estate i B E Le f PHK fa. Machines & Equipment __& www.PCSGH.com | IR@PCSGH.com
Slide 3: Global Locations
Global Locations Operations in Thailand, Germany & Hungary www.PCSGH.com | IR@PCSGH.com 3
Slide 4: P.C.S. Precision Works Co., Ltd. “PCW”
P.C.S. Precision Works Co., Ltd. “PCW” Nakhon Ratchasima, Thailand General Profile Manufacturing Turning Center 250 Gear Honing 7 Employees: 1,466 (Y18) Machine Center 250 Heat Treatment 21 Area: 72,621 m² Grinding Machine 88 Robots 40 Focus • Machining Cast and Forged parts (Steel / Iron) Gear Gene
Slide 5: P.C.S. Die Casting Co., Ltd. “PCD”
P.C.S. Die Casting Co., Ltd. “PCD” Nakhon Ratchasima, Thailand General Profile Manufacturing Employees: 690 (Y18) HPDC 2,500T 6 HPDC 350T 6 Area: 32,074 m² HPCD 1,850T 1 Machine Center 198 Focus HPDC 1,650T 1 Robots 64 • Die Casting and Machining of Aluminum HPDC 900T 5 parts (0.1 kg-20.0 kg) Key Pr
Slide 6: P.C.S. Forging Co., Ltd. “PCF”
P.C.S. Forging Co., Ltd. “PCF” Nakhon Ratchasima, Thailand General Profile Manufacturing HFM 6,000T 1 HFM 1,000T 1 Employees: 183 (Y18) HFM 4,000T 1 HFM 700T 1 Area: 19,142 m² HFM 2,500T 2 Robots 10 Focus HFM 1,600T 2 • Hot Forging of Steel Bar & Aluminum Parts Key Products Capabilities • Mold Desig
Slide 7: P.C.S. Precision Works Germany GmbH “PWG”
P.C.S. Precision Works Germany GmbH “PWG” Cunewalde Germany General Profile Manufacturing Turning Center 40 Assembly Device 18 Employees: 220 (Y18) Area: 8,942 m² Machine Center 34 Cleaning Device 14 Focus Hardening Device 3 Robots 36 • Machining of Cast and Forged Parts (Steel / Deburring Device 5
Slide 8: P.C.S. Precision Works Hennef GmbH “PWH”
P.C.S. Precision Works Hennef GmbH “PWH” Hennef Germany General Profile Manufacturing Turning Center 33 Employees: 110 (Y18) Area: 13,500 m² Machine Center 33 Focus Mazak Machine 12 • Machining of Cast and Forged Parts (Steel / Robots 9 Iron / Aluminum) Capabilities Key Products • Expertise in Turbo
Slide 9: P.C.S. Precision Works Kft. “PWK”
P.C.S. Precision Works Kft. “PWK” Tiszaújváros, Hungary General Profile Manufacturing Machine Center 14 Employees: 30 (Y18) Cleaning Device 1 Area: 1,800 m² Focus 3D Measuring 1 • Machining of Precision Aluminum Parts Key Products Capabilities • Automatic Transmission Housings • High-quality and low
Slide 10: Product Range
Product Range www.PCSGH.com | IR@PCSGH.com 10
Slide 11: Valued Customer
Valued Customer One Ton Truck Passenger Vehicle Big Bike Tier 1 Supplier Big Truck Non Automotive www.PCSGH.com | IR@PCSGH.com 11
Slide 12: Thailand’s Car Industry 2009-18
Thailand’s Car Industry 2009-18 Production Export Domestic 3000 2,453.7 2,457.1 2500 2,100.0 1,913.0 1,944.4 1,988.8 1,880.0 2000 1,645.3 1,457.8 1500 1,204.9 1,188.5 1,139.7 1,436.3 1,330.7 1,128.1 1,100.0 999.4 1,026.7 895.9 1,128.2 1000 735.6 1,000.0 535.6 881.8 871.7 800.4 795.3 799.6 768.8 500
Slide 13: Thailand Automotive Sales
Thailand Automotive Sales Total Vehicles Total Vehicles 1-T Pickup (K units) Domestic (K units) Export (K units) Y–Y : 22.2% Y–Y : 31.7% 289.7 Y–Y : -5.3% 121.2 250.9 257.5 134.5 210.7 313.6 296.8 101.1 252.0 119.2 199.5 252.1 266.7 94.0 210.5 237.1 284.3 295.2 107.1 118.3 2017 2018 2017 2018 2017 2
Slide 14: Thailand Automotive Production
Thailand Automotive Production Total Vehicles (K units) 1-T Pickup (K units) Y–Y : 3.9% Y–Y : 3.6% 459.9 511.1 287.7 547.5 312.6 526.8 301.8 465.4 516.9 264.1 295.1 485.6 539.7 276.4 310.3 2017 2018 2017 2018 www.PCSGH.com | IR@PCSGH.com Source: FIT;AIC 14
Slide 15: Sales Performance
Sales Performance Q-Q : -3.4% Sales (mBt) Y-Y : 38.8% Oversea 1,896.0 1,434.8 Oversea Local 24.6% Local 493.9 350.7 Y-Y : 4.9% PCF 0.3% PCW 52.2% 1146.9 1084.1 1042.1 1033.9 986.9 970.9 935.8 PCD 23.0% Q1.2017 Q2.2017 Q3.2017 Q4.2017 Q1.2018 Q2.2018 Q3.2018 www.PCSGH.com | IR@PCSGH.com ForEx : 38.39
Slide 16: Distribution of Sales
Distribution of Sales Local Oversea Others 9.6% Others GM Mitsubishi BorgWarner August Küpper 13.0% 7.2% 24.6% 30.1% Nissan 6.9% SKODA Auto 8.0% 8.5% Toyota 10.6% Continental Ford/Mazda 10.9% Eisenwerk Schaeffler Kysuce Isuzu 21.9% 16.3% 14.4% 18.1% www.PCSGH.com | IR@PCSGH.com 16
Slide 17: Gross Profit Margin
Gross Profit Margin 14.7% 12.3% 19.3% 16.5% 19.8% 15.3% GP Margin 7.9% 8.7% 6.7% 8.3% 5.4% 7.6% 9.4% Others 7.1% 6.6% 9.1% 10.1% 9.3% 8.9% Supplies 24.4% 16.4% 19.1% Depreciation 17.4% 22.2% Employee Raw Material 40.4% 45.5% 41.8% 37.7% 41.6% -9.3% Q3.2017 Q2.2018 Q3.2018 Local Oversea www.PCSGH.com
Slide 18: Net Profit/ EBITDA
Net Profit/ EBITDA Y-Y : - 42.0% Y-Y : - 15.3% Net Profit (mBt) Local Margin: 6.5% EBITDA (mBt) Margin: 16.15% 193.7 Local Y-Y: -20% Oversea 329.6 Local Y-Y: -17.2% Oversea 99.1 Local288.8 FX Loss 170.8 17.2 244.6 5.6 209 136.6 177.0 170.8 288.8 312.4 239.1 40.36 -15.2 -38.1 Q3.2017 Q2.2018 Q3.2018
Slide 19: Financial Statement
Financial Statement Financial Position (mBt) Cash Flow (mBt) Liabilities 768.4 Operating 695.1 Investing 1,279.7 Assets Equities Brought 5,946.2 5,177.8 Financing Forward, D/E Ratio 1,484.1 413.4 Free Cash 0.15 x Cash in Cash out Flow, 486.1 www.PCSGH.com | IR@PCSGH.com 19
Slide 20: Financial Ratios
Financial Ratios Y–Y:- EPS (Bt/Share) Y – Y : 4.3% Y – Y : -0.5% Q – Q : -1.3% Q – Q : - 10.0% Q – Q : -1.6% 14.1% 0.44 0.42 13.1% 12.9% 12.9% 0.41 12.0% 11.5% Q3.2017 Q2.2018 Q3.2018 Q3.2017 Q2.2018 Q3.2018 Q3.2017 Q2.2018 Q3.2018 ROA ROE www.PCSGH.com | IR@PCSGH.com 20
Slide 21: Future Awarded Program
Future Awarded Program Awarded Program Starting 20 20 20 20 20 8 Q3 8 Q4 9QI 9 Q3 704 2020 QI Value (mBt) 200 250 200 1,850 2,400 2,000 | Life (years) 4 4- 8 5 a Pcs Holding Application Passenger, Non Auto, Big Truck Pickup, Passenger Pickup, Passenger Pickup EV R@PCSGH.com 21
Slide 22: Solar Car Park Projects (3 MW dc.)
Solar Car Park Projects (3 MW dc.) • Project Owner: • PCD 2 MW dc. • PCF 1 MW dc. • Area : 30,240 m2 (18.9 rai) • Parking Space : • 858 Cars • 700 Cars + 500 Bikes • Saving Target : Bt 15.0m/year • Budget : Bt75.0m • Payback : 5 years www.PCSGH.com | IR@PCSGH.com 22
Slide 23: Update European Operation
Update European Operation As at 23rd November 2018 www.PCSGH.com | IR@PCSGH.com 23
Slide 24: Messages at Top Levels
Messages at Top Levels European operations have passed through restructuring process where many customers have executed rights to terminate the contracts; therefore, main activities have to be conducted for this year and next year are: Hold its investment in terms of expanding manufacturing footprin
Slide 25: Current Capacity Utilization
Current Capacity Utilization • Currently capacity utilization is as followed: PCW-Cunewalde PCW-Hennef PCW-Tiszaujvaros 74% 68% 0% Remark: Full capacity is calculated at 3 working shifts of 7.5 hours per shift, 5 working days per week which equivalent to 112.5 hours/week www.PCSGH.com | IR@PCSGH.com
Slide 26: Upcoming Year
Upcoming Year For year 2019, we see marketing activities start to produce their results. • Up until today, 3 programs have been • Financials are gearing toward stabilization officially awarded, one of each location. as planned and faster recovery is anticipated. • First top management monthly video
Slide 27: Thank You
Thank You
P.C.S. Machine Group Holding Public Company — Q3 2018 Earnings Presentation on 6ix