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

P.C.S. Machine Group Holding Public — Q2 2016 Earnings Presentation

24 slides from P.C.S. Machine Group Holding Public's earnings presentation, Aug 15, 2016

  1. Slide 1: Business Briefing 2 – 2016

    Business Briefing 2 – 2016 As at 30th June 2016 Disclosed date : 15th August 2016 www.PCSGH.com IR@pcsholding.com

  2. Slide 2: Corporate Structure

    Company Profile Corporate Structure PCW PCD PCF More Than 1,700 machines High Pressure Die Casting (HPDC) 15 Units Hot Forging Machine 9 Units Turning 300 Units 2,500 Ton 6 Units 6,000 Ton 1 Unit Machine Center 300 Unit 1,850 Ton 1 Unit • Maximum Die Size: 4,000 Ton 1 Unit 1,800 x 1,800 x 1,500 mm.

  3. Slide 3: Business Focus

    Company Profile 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 All Rig

  4. Slide 4: Design Capability

    Company Profile Design Capability Design Scope: • Process Design • Die / Mold Design • Jig / Fixture Design • Accessory Equipment Design • Product Co – Design (Dimension, Function, Material and etc.) Software: CATIA V5 R19 & R20 Solid Works UG AutoCAD Magma Flow Finite Element All Rights Reserved. -

  5. Slide 5: Products

    Company Profile Products Engine Final Drive Chassis Transmission All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 5

  6. Slide 6: Value Customers

    Company Profile Value Customers Passenger Vehicle Big Bike Big Truck Non Automotive All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 6

  7. Slide 7: Contact us

    Company Profile Contact us Head Quarter and Factories Bangkok Office 2/1-4 Moo 3, Mittraparp Rd., Kokgroad, Muang, 193/105 25th Fl., Lake Rajada Office Complex Bldg., Nakorn-Rajasima Thailand 30280 Ratchadaphisek Rd., Klongtoei, Bangkok Thailand 10110 T : +66 (0) 4470 1300 T : +66 (0) 2264 0621-3 GP

  8. Slide 8: Thailand Automotive Industry

    Industry Overview Thailand Automotive Industry Domestic Sales (x 1,000 units) Q-Q 3.0% Y-Y 9.2% Y-Y -0.1% 369 369 187 182 171 2Q2016 1Q2016 2Q2015 1H2016 1H2015 • Domestic Sales of Passenger Vehicle increase 22.8% Q–Q and 4.9% Y–Y • The Ongoing slowdown of Economic All Rights Reserved. - www.pcsgh.c

  9. Slide 9: Thailand Automotive Industry

    Industry Overview Thailand Automotive Industry Export (x 1,000 units) Q-Q -6.7% Y-Y 15.8% Y-Y 3.3% 595 576 308 287 248 2Q2016 1Q2016 2Q2015 1H2016 1H2015 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : Federal of Thai Industries; Automotive Industry Club 9

  10. Slide 10: Thailand Automotive Industry

    Industry Overview Thailand Automotive Industry Production (x 1,000 units) Q-Q -4.0% Y-Y 18.5% Y-Y 6.2% 993 935 487 507 411 2Q2016 1Q2016 2Q2015 1H2016 1H2015 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : Federal of Thai Industries; Automotive Industry Club 10

  11. Slide 11: Pickup Based Vehicles

    Industry Overview Pickup Based Vehicles Domestic Sales (x 1,000 units) Production (x1,000 units) Y-Y 24.2% Y-Y 11.1% Y-Y 18.4% Y-Y 12.2% Q-Q -6.1% Q-Q -13.2% 583 525 PPV 193 172 312 Double Cap 271 218 93 99 79 Pickup 2Q2016 1Q2016 2Q2015 1H2016 1H2015 2Q2016 1Q2016 2Q2015 1H2016 1H2015 All Rights Re

  12. Slide 12: Average Aluminum LME Price

    Industry Overview Average Aluminum LME Price Q-Q 0.7% Y-Y -8.7% 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com Source : London Metal Exchange (LME) 12

  13. Slide 13: Sales Distribution (1H2016)

    Business Overview Sales Distribution (1H2016) BY BU BY AUTOMAKER Nissan Other PCF 2.0% 3.3% 0.8% Toyota 12.0% Mitsubishi PCD GM 35.0% 28.8% 14.2% PCW 70.5% Ford/Mazda Isuzu 14.2% 19.4% All Rights Reserved. - www.pcsgh.com | ir@pcsholding.com 13

  14. Slide 14: Sales Distribution (1H2016)

    Business Overview Sales Distribution (1H2016) Export Portion significantly decreased by the end of Brazil Program. Non Pickup is still low by program postponement. BY DESTINATION BY CATEGORY Export Non Pickup 0.6% 1.9% Domestic Pickup 99.4% 98.1% All Rights Reserved. - www.pcsgh.com | ir@pcsholding.

  15. Slide 15: Performance

    Business Overview Performance Gross Profit Margin is impacted by the contraction of sales and the accident of severely wear of furnace’s lining of 2500t die casting machine Sales (mnTHB) Gross Profit (mnTHB) GP Margin (%) Y-Y -10.3% Y-Y -7.1% Y-Y -6.3% Y-Y -7.1% Q-Q -16.1% Q-Q -6.2% 15.3% 16.2% 18.7

  16. Slide 16: Profitability

    Business Overview Profitability NP Margin (%) EBITDA Margin (%) Net Profit (mnTHB) EBITDA (mnTHB) Y-Y -7.1% Y-Y -6.5% Y-Y -6.8% Y-Y -6.5% Q-Q -6.7% Q-Q -4.2% 25.0% 27.7% 29.6% 12.2% 12.6% 15.6% 20.8% 23.1% 5.5% 9.1% 627.6 330.0 453.2 178.7 266.6 276.9 129.6 126.4 186.6 49.1 2Q2016 1Q2016 2Q2015 1H20

  17. Slide 17: Cost Breakdown

    Business Overview Cost Breakdown Ratio to Sales (%) Ratio to Revenue (%) COGS (mnTHB) SG&A (mnTHB) Y-Y 7.1% Y-Y 6.3% Y-Y 0.05% Y-Y 0.05% Q-Q 6.2% Q-Q 0.77% 84.7% 83.8% 81.3% 3.7% 4.4% 4.0% 90.9% 87.6% 4.5% 4.0% 1,699.5 1,698.6 84.4 79.1 Variable 805.2 894.3 827.4 44.1 39.9 39.2 Fixed 2Q2016 1Q2016 2

  18. Slide 18: Variable Cost

    Business Overview Variable Cost Severely wear of Furnace’s Lining of 2500t Die Casting Machine caused to stop production for coupler of weeks Ratio to Sales (%) Ratio to Sales (%) Raw Material (mnTHB) Auxiliary / General Material (mnTHB) Y-Y 4.3% Y-Y 3.5% Y-Y 0.1% Y-Y 0.6% Q-Q 0.2% Q-Q 0.6% 40.0% 36

  19. Slide 19: Fixed Cost

    Business Overview Fixed Cost The contraction of sales raised the fixed cost ratio to sales up 5.4% Q–Q, which mainly from Employee Expenses and Depreciation 2.6% Q–Q and 2.1% Q–Q respectively Ratio to Sales (%) Ratio to Sales (%) Employee Expenses (mnTHB) Depreciation (mnTHB) Y-Y 1.6% Y-Y 1.0% Y-Y 0

  20. Slide 20: Statement of Financial Position

    Business Overview Statement of Financial Position Statement of Financial Position (mnTHB) EPS ROA ROE D/E Ratio (times) EPS (THB) & D/E Ratio 11.5% 12.0% 0.08 x 9.2% 10.8% 7.9% 10.1% 10.5% 11.1% 5,247.5 8.6% 7.4% 376.8 Liabilities 0.10 0.08 0.08 4,870.7 Equities 0.06 0.04 At 30 Jun At 31 Mar At 31 D

  21. Slide 21: New Programs Starting up in FY2016

    Outlook New Programs Starting up in FY2016 1Q2016 : 2Q2016 : 2 P/N Life 4-6 years, Value THB 480 mn Pickup : 1 P/N 3Q2016 : • Pan Oil MY17 4Q2016 : 5 P/N Life 5-6 years, Passenger Car : 1 P/N Value THB 470 mn • Pressure Plate Big Bike : 2 P/N • Chain side Crankcase ( 3Q2016 ) • Clutch side Crankcase

  22. Slide 22: New Programs Starting up in FY2017

    Outlook New Programs Starting up in FY2017 1Q2017 : 12 P/N Life 4-10 years, Value THB 1,360 mn Pick up : 2 P/N 2Q2017 : 13 P/N Life 5-6 years, Value THB 220 mn • Pressure plate • Front Housing Big Truck : 3 P/N 3Q2017 : • Flywheel Housing Big Truck : 10 P/N • Cover Cylinder Head ASM • Bracket Spring

  23. Slide 23: Industry & Business Outlook

    Outlook Industry & Business Outlook Interim Dividend • Industry: • Board Resolution Date: 8th Aug 2016 • The continuation of slowdown trend shall be expected. • Amount: 0.12 THB per share • XD (Excluded Dividend): 23rd Aug 2016 • Business: • The machine trouble had been fixed and its • Record Date:

  24. Slide 24: THANK YOU

    THANK YOU www.PCSGH.com IR@pcsholding.com

P.C.S. Machine Group Holding Public Company — Q2 2016 Earnings Presentation on 6ix