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

P.C.S. Machine Group Holding Public — P.C.S. Machine Group Holding PCL — Q3 2014 Earnings Presentation

34 slides from P.C.S. Machine Group Holding Public's earnings presentation, Nov 11, 2014

  1. Slide 1: Analyst Meeting Q3.2014

    PCSGH P.C.S. Machine Group Holding PCL. Analyst Meeting Q3.2014 11th November 2014 10:30 – 12:00 @ LAKE RAJADA Office © 2014 Confidential 1

  2. Slide 2: Corporate Overview

    Corporate Overview © 2014 Confidential 2

  3. Slide 3: Background

    Background • Registered Capital: 1,545 mil THB PCSGH • Major Shareholders: 1st Trading Day • Mr. SIRIPHONG RUNGROJKITIYOT 37.41% 14th March 2014 • Ms. WANNA RAOMANACHAI 36.57% • Public 26.02% (402 mil Shares) 2014 2013 2009 2008 EURO VI complied parts :- Common Rail 2004 2003 EURO V complied parts :

  4. Slide 4: 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* 1,593 626 242 (1st November 2014) Sales of 2013 4,016 1,415 635 (Million Baht) Main Process

  5. Slide 5: Location

    Location • NAKHON-RATCHASIMA • Northeast of Thailand, 250 km from Bangkok • 320 km to Seaport • 250 km to SUVARNABHUMI Airport © 2014 Confidential Source: GoogleEarth 5

  6. Slide 6: 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

  7. Slide 7: 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 Confidential 7

  8. Slide 8: 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 Confidential 8

  9. Slide 9: 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

  10. Slide 10: Business Overview of PCW

    Business Overview of PCW Machining Process Raw Materials Steel Bar Steel Forging Cast Iron Machining Assembly Products © 2014 Confidential 10

  11. Slide 11: 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 Confidential 11

  12. Slide 12: Business Overview of PCF

    Business Overview of PCF Forging Process Raw Materials Steel Bar Pre Heating to Heat Forging Trimming Treatment about 1,200 C Products © 2014 Confidential 12

  13. Slide 13: Value Customers

    Value Customers OEM Auto Maker Group Tier 1 Suppliers Group © 2014 Confidential 13

  14. Slide 14: Events in Q3.2014

    Events in Q3.2014 © 2014 Confidential 14

  15. Slide 15: Change of member of Board of Directors

    Change of member of Board of Directors Mr. CHAKRAMON PHASUKVANICH : Ms. SRITHAI HEMSORAJ : • Independent Director • Independent Director • Chairman of the Board • Member of Audit Committee • Member of Audit Committee Resigned from every positions effective on 26th August 2014 Assigned effective 6th

  16. Slide 16: Board of Directors

    Board of Directors Independent Directors • Mr. PRAMOTE TECHASUPATKUL : Chairman of Audit Committee • Mr. VEERACHAI CHAOCHANKIT : Audit Committee • Ms. SRITHAI HEMSORAJ : Audit Committee Non Executive Directors • Mr. SIRIPHONG RUNGROJKITIYOT : Vice Chairman • Ms. WANNA RAOMANACHAI • Mr. ANGKRIT RUNGR

  17. Slide 17: Sub Committee

    Sub Committee Audit Committee Nomination and Remuneration Committee • Mr. PRAMOTE TECHASUPATKUL : Chairman • Mr. VEERACHAI CHAOCHANKIT : Chairman • Mr. VEERACHAI CHAOCHANKIT • Mr. PRAMOTE TECHASUPATKUL • Ms. SRITHAI HEMSORAJ • Mr. SIRIPHONG RUNGROJKITIYOT © 2014 Confidential 17

  18. Slide 18: Corporate Social Responsibilities: CSR

    Corporate Social Responsibilities: CSR Devoted the Ophthalmic laser / for retinal photocoagulation / solid- state Laser Multispot and MultiPulse for curing eyes retina valued 2.5 mil THB for THEPPHARAT NAKHONRATCHASIMA Hospital on 24th September 2014 © 2014 Confidential 18

  19. Slide 19: Industry Overview

    Industry Overview © 2014 Confidential 19

  20. Slide 20: Thailand Automotive Sales Q1.2013 – Q3.2014

    Thailand Automotive Sales Q1.2013 – Q3.2014 Q3.2014 Domestic Sales : 207,499 units Q3.2014 Export : 278,905 units  29.3 %Y-Y  4.3 %Q-Q  9.1 %Y-Y  3.9 %Q-Q X 1,000 units X 1,000 units 450 450 Thousands Thousands 400 400 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Q1.2013 Q2.2013 Q3.

  21. Slide 21: Thailand Automotive Production Q1.2013 – Q3.2014

    Thailand Automotive Production Q1.2013 – Q3.2014 Thousands unit 800 Q3.2014 Production of 1-Ton Pickup / PPV : 274,066 units 13.1 3.5 700   600 % Y-Y % Q-Q 500  Quarterly Production has reduced 400 consecutively since the ended of the 1st Car Policy 300  Political Situation started from November

  22. Slide 22: Business Overview

    Business Overview © 2014 Confidential 22

  23. Slide 23: Distribution of Sales Q3.2014

    Distribution of Sales Q3.2014 NISSAN PCF 1.4% Other 0.1% 9.1% PCD ISUZU 26.9% TOYOTA 29.9% 10.8% MITSUBISHI 12.2% Export PCW GM 8.4% FORD & 72.9% 14.9% MAZDA 21.7% Postponement of Projects’ SOP Several Stops of Production of Customer in Brazil Domestic 91.6% © 2014 Confidential 23

  24. Slide 24: Depreciation Consolidated

    Depreciation Consolidated mil THB 200 11.0% 13.0% 13.2% 180 8.5 Y-Y :  mil THB 6.6  % 6.1 4.7 160 137.1 Q-Q :   140 128.6 130.9 mil THB % 120 100  New Building  New Furnaces 80 60  New Die Casting Machines 40  Machines for New Projects 20 0 Q3.2013 Q2.2014 Q3.2014 Employee Expenses Ratio to

  25. Slide 25: Employee Expenses Consolidated

    Employee Expenses Consolidated mil THB 200 11.5% 13.3% 14.6% 180 160 17.3 Y-Y :  mil THB  12.9 % 17.4 13.0 151.7 Q-Q :   140 134.4 134.3 mil THB % 120 100  Advanced addition of Manpower for New 80 Projects  More overtime working 60 40 20 0 Q3.2013 Q2.2014 Q3.2014 Employee Expenses Ratio to Sal

  26. Slide 26: Raw Material Used Consolidated

    Raw Material Used Consolidated mil THB 38.9% 33.8% 32.7% Y-Y :  114.7 mil THB  25.3 % 600 Q-Q :  2.6 mil THB  0.8 % 500 400 453.6 341.4 338.9  Raw Material Yield Increasing Activities 300  Improved Steel Cutting Process  Closed Mold (Forging) 200  Defect Reduction by GISS Technology (Aluminu

  27. Slide 27: Raw Material Price

    Raw Material Price Average Aluminum Price : Q3.2014 Average Steel Price : Q3.2014  11.6 US $ / ton % Y-Y  10.5 % Q-Q  Yen/kg 2.9 % Y-Y  0.0 % Q-Q 2,100 108 2,050 107 2,000 1,950 106 1,900 1,850 105 1,800 104 1,750 1,700 103 1,650 1,600 102 Q1.2013 Q2.2013 Q3.2013 Q4.2013 Q1.2014 Q2.2014 Q3.2014

  28. Slide 28: Financial Overview

    Financial Overview © 2014 Confidential 28

  29. Slide 29: Sales Performance Q3.2014 Consolidated

    Sales Performance Q3.2014 Consolidated Millions THB 1,800 2.8% 1,600 11.1 2.8 -11.1% 1,400   1,200 1,167.6 % Y-Y % Q-Q 1,009.5 1,037.9 1,000 800 Change of Sales was in the same 600 trend of the automotive industry 400 200 0 Q3.2013 Q2.2014 Q3.2014 Sales Q-Q Y-Y © 2014 Confidential 29

  30. Slide 30: Profitability Q3.2014 Consolidated

    Profitability Q3.2014 Consolidated Net Profit & Net Profit Margin Gross Profit & Gross Profit Margin mil THB 350  0.8 16.3% % Y-Y  20.1% 7.5 % Q-Q 18.0% mil THB 350  7.8 20.2% % Y-Y  23.3% 7.4 % Q-Q 21.0% 300 300 250 250 236.1 235.0 206.6 217.6 200 189.7 191.2 200 150 150 100 100 50 50 0 0 Q3.20

  31. Slide 31: Industry Outlook

    Industry Outlook © 2014 Confidential 31

  32. Slide 32: Thailand Automotive Production Q1.2013 – Q4.2014F

    Thailand Automotive Production Q1.2013 – Q4.2014F x 1,000 unit 800 Q4.2014F : Total Automotive Production 700  3.8 % Y-Y  20.0 % Q-Q 600 500 547 Announcement of 400 Thailand Automotive Institute (TAI) 300 • Total Automotive Production of FY2014 will 200 be 1.9 mil units 100 • Total Automotive Prod

  33. Slide 33: Forecast of Thailand Automotive Production

    Forecast of Thailand Automotive Production mil unit 3.5 3.00 3.0 2.5 • New 10%VAT Rate : 1st October 2015 2.0 • AEC : 31st December 2015 1.5 • New Excise Tax : 1st January 2016 1.0 • ECO Car Phase II : within 2019 0.5 0.0 2013 2014E 2015F 2016F 2017F 1-Ton Pickup / PPV Passenger Car Other Forecast S

  34. Slide 34: Thank You

    THANK YOU © 2014 Confidential 34

P.C.S. Machine Group Holding PCL — Q3 2014 Earnings Presentation on 6ix