AAPICO HITECH PLC [AH]

Q3 2017 Performance & Business Update

Opportunity Day

The Stock Exchange of Thailand

December 4, 2017

Today’s Agenda

2

1. Company Information

2. Thailand Automotive Industry Update

3. Financial Performance

4. Strategy & Direction

Company Information

AAPICO HITECH PLC [AH]

4

AAPICO HITECH PUBLIC COMPANY LIMITED

• Established in 1996 and listed on SET in 2002.

• Main businesses: OEM Auto Parts, Jigs and Dies,

Car Dealerships and Car Navigation.

• Main locations: Thailand, Malaysia and China.

• Comprising of 37 companies (27 subsidiaries and

10 associates).

• Registered and paid-up capital of Baht 322.58

million, comprised of 322,583,844 ordinary shares

at par value of Baht 1 each.

Industry/Sector : Auto

Current price : Baht 36.25*

52 weeks range : Baht 13.30 – 38.25

Market Cap : Baht 11,694 million

P/E (YTD) : 12.41*

P/BV : 1.74*

Dividend yield : 1.83%**

TRIS / CG Rating : BBB+ /

* Data as of November 30, 2017

** Dividend yield is calculated based on current share price

AH Shareholding Structure

5

Data from Share Register Book as of

August 31, 2017

Sojitz Corp.

15.76% AH; 1.86%

NVDR; 9.25%

Institution - Foreign

2.34%

Institution - Thai

7.25%

Individual -

Thai

25.20%

Individual -

Foreign

0.09%

Yeap Family

38.24%

AH Shareholding Structure

AH’s main shareholders are Yeap Swee Chuan and

family holding 38.24% of total capital and Sojitz

Corporation holding 15.76% of total capital.

4,710 4,452

3,387

5,161

11,694

2013 2014 2015 2016 2017*

Market Capitalization

+148%

*Based on share price as of November 30, 2017

AH Share Price since Jan 1, 2017

6

16.00 16.50

20.10

25.50

37.75

12.00

17.00

22.00

27.00

32.00

37.00

42.00

12/16 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 9/17 10/17 11/17

FY2016 Results

Announcement

Q1 2017 Results

Announcement

JV Sakthi

Announcement

+127%

AH Share price (in Baht)

Q2 2017 Results

Announcement

Q3 2017 Results

Announcement

AH Board of Directors

7

Mr. Yeap Swee Chuan

Present & CEO

Executive Director

Mr. Kenneth Ng

Independent Director

Audit Committee

Ex ING Head of Research

Mrs. Teo Lee Ngo

Executive Director

Mr. Pipat R. Punya

Independent Director

Chairman of Audit Committee

Lawyer

Mr. John Parker

Independent Director

Chairman of Risk Committee

Ex Chairman of Ford Asia Pacific

Mr. Wichian Mektrakarn

Independent Director

Audit Committee

Ex CEO of AIS

Mrs. Vachira Na Ranong

Independent Director

Risk Committee

Chairman of TIA

Mr. Kai Taraporevala

Independent Director

Audit Committee

Ex President of TATA Capital

AAPICO’s Vision

8

Where do we want to go?

How do we want people to remember us?

MANUFACTURING

RESEARCH & DEVELOPMENT

CAR RETAILING

TO BECOME A

LEAN, GREEN, HAPPY, DIGITAL

WORLD-CLASS CORPORATION

• S : Safety

• Q : Quality

• C : Cost

• D : Delivery

• E : Engineering

• M : Management

(Focus Digital)

• Teamwork

• Look at problems as

opportunities

• Love Family, Company

and Country

• Loyalty and Honesty

• Mutual Respect

• Profitability

• Reasonable Dividend

• Corporate Social

Responsibility

Happy Employees Happy Shareholders Happy PublicHappy Customers

AAPICO Key Fundamental Values

Business Segments

9

Manufacture of Auto Parts(Thailand & China)

Car Dealerships

(Thailand & Malaysia)

Technology(Thailand)

~63% of total revenue ~37% of total revenue<1% of total

revenue

Thailand

Malaysia

Stamping &

Assemblies

Forging &

Machining

Plastic

Jigs and Dies

Countries of Operations

10

Thailand

72%

Malaysia

24%

China

4%

Jan-Sep

2017

Sales by Country

CHINAKunshan

Production: Connecting rods

and Copper Forging

MALAYSIAKajang & Petaling Jaya

Car dealers: Honda car

THAILAND Ayutthaya, Chonburi, Rayong, Samutprakarn

Hitech Industrial EstateProduction: Stamping parts

and Stamping Dies & Jigs

Amata Nakorn Industrial EstateProduction: Stamping & Chassis Frames

and Forging & Machining Parts

Bangpli Industrial EstateProduction: Plastic Parts

Amata City Industrial EstateProduction: Stamping Parts

Plastic Washers & Fuel Tanks

Mitsubishi DealersNavanakorn & Ramindra

Ford DealersSamutprakarn & Ladprao

OEM Customers

11

Isuzu

40%

AAT*

16%

Nissan

7%FORD

4%

GKN

4%

AAM

4%

TOYOTA

3%

Others-

Parts

22%

Jan-Sep

2017

Top OEM Customer Profile

*Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.

Our Partners

12

Technical PartnersJoint VenturesStrategic Partner

Sakthi Product Range

13

Sakthi Automotive products are specialized

in safety and critical components.

Thailand AutomotiveIndustry Update

Thailand Car Production Volume

15

312 271 254 266 276 264

302

188 207 219 191 200 192

214

507 487 483 468 486 465

527

-

100

200

300

400

500

600

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Pick-Up/PPV Passenger Others Domestic Sales Export Sales

837 842

618 612

1,477 1,478

9M16 9M17

Total Car Production by Quarter Jan-Sep Car Production

+9.0%

yoy

+0.7%

yoy

Q3 2017 Total car production volume grew by 9.0% year-on-year, driven by

increased export volume and domestic sales.

‘000 Units

Source: The Federation of Thai Industry (Automotive Industry)

283 303

204 245

70

73 557

621

9M16 9M17

Domestic Car Sales Volume

16

Domestic Car Sales by Quarter Jan-Sep Domestic Sales

+11.5%

yoy

99 93 90 111 107 94 102

58 71 75

76 80 81

83

24 23 23

25 23 24

25 182 187 188

212 210 199

211

-

100

200

300

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

1-Ton Pick-Up/PPV Passenger cars Other vehicles

+12.2%

yoy‘000 Units

Q3 2017 Domestic sales grew by 12.2% year-on-year, driven by

recovering economy, increased spending, new models and motor show.

Source: The Federation of Thai Industry (Automotive Industry)

Export Volume

17

Export Volume by Quarter Jan-Sep Export Volume

901 850

9M16 9M17

308 287

306 288 284

252

314

-

100

200

300

400

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Export Volume

-5.6%

yoy

Q3 2017 Export volume grew year-on-year by 2.5%, driven by

increased volume in almost all markets.

Source: The Federation of Thai Industry (Automotive Industry)

+2.5%

yoy‘000 Units

Financial PerformanceJanuary – September 2017

Financial Highlights

19

Solid revenue growth, driven by auto industry

growth in TH and CN, good car sales in MY, and THB

86 million interest income from SGAH.

Gross profit margin below last year, mainly due to

rebate to customer for new project and lower

margins in the car dealerships.

SG&A expenses included unrealized FX loss.

Finance costs increased due to loan to finance SGAH

investment.

Higher share of profit from associates, mainly from

Hyundai and Able Sanoh.

Net profit margin improved yoy to 5.8% of sales,

hence improving ROE and ROA.

Q3 2017 ResultsIn Million BahtQ3

2016

Q32017

Revenues

Growth%

3,619

-1.4%

4,284

+18.4%

Gross Profit

GP Margin (%)

182

5.2%

202

5.0%

SG&A 189 252

Associate 75 118

Interest & Tax 41 53

Net Profit

NP Margin (%)

132

3.7%

248

5.8%

ROE (%) 8.4% 14.7%

ROA (%) 4.4% 7.3%

D/E (x) 0.46 0.78

AAPICO Group : Total Revenues

20

3,910 3,681 3,6193,929 3,946 3,903

4,284

-

1,000

2,000

3,000

4,000

5,000

6,000

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Total Revenues by quarter

Auto parts Car dealers Non-op income

11,20812,133

9M2016 9M2017

Jan-Sep Revenues

Q3 2017: Revenue grew 18.4% yoy, driven by higher auto part sales in

TH and CN, in line with industry trend, and good car sales in MY. Q3

revenue included THB 86 million interest from loan to SGAH.

Jan-Sep 2017: Revenue grew 8.2% yoy, mainly driven by THB 147 gain

from sale of investments and THB 107 million of interest from loan to

SGAH.

THB million

8.2%

yoy

18.4%

yoy

Auto

parts

62%

Car

dealers

36%

Non-op income

2%

9M17

Auto Parts : Sales & EBIT

21

5.5% 5.0% 3.7% 2.7%8.3%

4.9% 3.5%

-

1,000

2,000

3,000

4,000

5,000

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Sales and EBIT by quarter

Thailand China EBIT%

7,027 7,267

4.8% 5.5%

9M2016 9M2017

Jan-Sep Sales & EBIT

Q3 2017: Revenue grew 16.6% yoy, driven by growth in both China and

Thailand, in line with industry trend. EBIT was impacted by rebate to

customer for new project.

Jan-Sep 2017: Revenue grew 3.4% yoy, driven by higher sales in both

Thailand and China. EBIT margin improved from 4.8% in Jan-Sep 2016

to 5.5% of sales.

THB million

3.4%

yoy

16.6%

yoy

TH

94%

CN

6%

9M17

Car Dealers : Sales & EBIT

22

2.3% 2.2% 1.8% 1.9% 1.3% 1.3% 1.2%

-

1,000

2,000

3,000

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Sales and EBIT by quarter

Thailand Malaysia EBIT%

3,8744,234

2.1% 1.3%

9M2016 9M2017

Jan-Sep Sales & EBIT

Q3 2017: Revenue grew 13.5% yoy, driven by good car sales in both

Malaysia and Thailand, attributable to new model introduction. EBIT

was impacted by increased competition.

Jan-Sep 2017: Revenue growth was driven mainly by good car sales in

Malaysia. EBIT margin dropped from 2.1% in Jan-Sep 2016 to 1.3% of

sales.

THB million

9.3%

yoy

13.5%

yoy

TH

33%

MY

67%

9M17

EBITDA: Good improvement vs. LY

23

347 321286 272

321

451

339

-

200

400

600

800

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: in Million Baht

EBIT Depreciation

954

1,112

9M16 9M17

EBIT Depreciation

3.9%2.7% 2.4%

3.9%

7.5%

4.3%

8.7% 7.9%6.9%

8.1%

11.6%

7.9%

0%

5%

10%

15%

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: as % of revenueEBIT% EBITDA%

3.6%5.2%

8.5%9.2%

9M16 9M17

EBIT% EBITDA%

16.5%

yoy

Net Profit: Significant improvement

24

156133 132 149

228

323

248

-

100

200

300

400

500

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: in Million Baht

Profit from operations Associate income

421

799

9M16 9M17

Operations Associate

4.0% 3.6% 3.7% 3.8%

5.8%

8.3%

5.8%

0%

5%

10%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: as % of revenueNet Profit %

3.8%

6.6%

9M16 9M17

Net Profit %

90%

yoy

Profitability continually increased

25

6.6% 8.1% 8.4% 9.3% 10.2%12.9%

14.7%

0%

10%

20%

30%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: in percentage

ROE (In the Quarter) ROE (Seasonally adjusted)

R

O

E

R

O

A3.3%

4.1% 4.4%5.0% 5.5%

6.3%7.3%

0%

2%

4%

6%

8%

10%

12%

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: in percentage

ROA (In the Quarter) ROA (Seasonally adjusted)

Ability to service debt improved

26

3.6 4.5 4.8 5.66.4

8.1 8.4

0.0

4.0

8.0

12.0

16.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: times Interest Coverage Ratio (In the Quarter)

Interest Coverage Ratio (Seasonally adjusted)

I

C

R

Deb

t /

EB

ITD

A

2.8 2.6 2.5 2.4 2.23.2 2.9

0.0

2.0

4.0

6.0

8.0

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Unit: times Debt to EBITDA (In the Quarter)

Debt to EBITDA (Seasonally adjusted)

Net gearing in line with target

27

Net interest-bearing debt to equity ratio as of Sep 2017 was

0.78x, in line with the Company’s target of less than 1.00x.

Total liabilities net cash (Net debt) to equity ratio as end of Sep

2017 was 1.10x, which was also below the financial covenant

target of less than 2.00x.

ST

68%

CPLTD

21%

LT Loans

5% Bond

6%

Interest-bearing Debt

Interest-bearing debts as

of Sep 2017 was THB 5.3

billion, of which mainly

related to funding for

SGAH investment.

1.07

0.850.67

0.550.40 0.36

0.81 0.78

1.74

1.26

1.07

0.870.74 0.71

1.12 1.10

0.0

0.5

1.0

1.5

2.0

0.0

2.0

4.0

6.0

8.0

2012 2013 2014 2015 2016 1Q17 2Q17 3Q17

Unit: in Billion Baht Debts Equity D/E (L-C)/E

Strategy & Direction

Attributes of AAPICO

29

110

9

8

765

4

3

2

The 1st Thai listed company having a global footprint to expand through strategic partnership with

Sakthi, a strong Indian company with footprints in India, Portugal, USA, China and Mexico.

A professionally managed company

with good corporate governance and

integrity.

An independent and competent

board to guide and provide

good strategy.

A strong family company in

strong partnership with other

strong family companies in India

and China.

Ability to combine with its global

partners and make larger strategic

acquisitions.

Many strong global JV partners and

successful operations in Thailand.

The only listed company in the

auto sector to issue bond with a

BBB+ rating.

A top Tier 1 automotive

supplier in Thailand with

proven record of good

Quality, Cost, and Delivery.

Ability to win more business

when a new model is being

introduced by the OEMs.

A strong financial

planning company.

Key Milestones

30

Taking steps toward globalization 2017

2013-2016

2008-2012

2005-2007

2002-2004

• Listed on SET.

• Acquired a chassis

frame factory from

Dana Corporation.

• Expanded to China.

• Established strategic

global partnership

with Sojitz Corp.

• Established JV with

Mitsuike Corp.

• Acquired forging

business from KPN.

• Established JV with

Minth Corporation.

• Established JV with

Takagi Seiko.

• Completed

construction of 3S

showroom in

Malaysia.

• New factory in

Kunshan (China)

started operation.

• Established JV with;

Lemtech (Taiwan)

Edscha (Germany)

Sumino (Japan)

Sodecia (Portugal)

• Explored opportunity

in the start-up

business.

• Established AAPICO

Training Center.

• Issued bond with a

BBB+ credit rating.

• Achieved 4-star CG

rating.

• Established

strategic global

partnership with

Sakthi Group and

invested US$100

million for 25.1%

stake in Sakthi

Global Auto

Holding Limited

(SGAH).

Global Business Strategy

31

CHINAINDIA

EUROPE

USA JAPAN

THAILAND

MALAYSIA

Current Global Footprints

32

Detroit, USA

Durango, México Coimbatore/Erode, India

Rushan,

China

Porto,

Portugal

Thailand

Malaysia

Singapore

Kunshan,

China

London, UK

AAPICO Facilities

Sakthi Facilities

Other JV partners

Japan

Taiwan

Germany

New York,

USA

Shareholder portfolio and

generate return to shareholders

Improve profitability through

margin management

Finance Strategy

33

Portfolio diversification Cash flow management

Managing strong financial positions

4.9%5.9% 6.3%

2.3%3.8%

6.6%

2015 2016 9M17

Profitability TrendGP% NP%

0.97 1.70

2.47

0.30 0.66 0.60

30.9%38.9% 35.2%

2015 2016 9M17

Dividend PaymentEPS DPS % Payout

3.28 2.52 5.31

0.80 1.10

1.10

2015 2016 9M17

Debt ProfileBank Bond

Profita-bility

Liquidity

Equity

Maximize

shareholder

value

927 1,2

14

1,0

22

273

167

118

2015 2016 9M17

Cash flowCash from operations Capex

Core Pillars of AAPICO Business

34

Auto Part

Manufacture

Car

Dealerships

IOT

Connectivity

& Mobility

Business

Thailand Car Industry Outlook

35

0.5 0

.6

0.8

0.9

1.1 1.2 1

.3 1.4

1.0

1.6

1.5

2.5

2.5

1.9 1.9 1.9

1.5

1

-

0.5

1.0

1.5

2.0

2.5

3.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ….

Production Forecast Domestic ExportUnit: Million

-0.3%

• The forecast of total car production has been revised to 1.95 million units, of which production for

domestic is forecasted at 830,000 units (43%) and for export at 1,100,000 units (57%).

Global

Financial

Crisis

Flood

First car

campaign

Source: The Federation of Thai Industry (Automotive Industry)

Sample orders for current & new models

36

0

100

200

300

400

500

Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28

Global

Financial

Crisis

FloodFirst car

campaign

Unit: ‘000

Previous model Current model New model

Basically AAPICO has stable sales volume with steady future growth.

Thailand and Global Car Industry

37

USA

16 Million

CHINA

30 Million

EUROPE

17 Million

OTHERS

20 Million

Thailand

2 Million

Disclaimer

38

The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does

not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO.

Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and

“anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking

statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These

statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve

risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results,

performance, or achievements expressed or implied by such forward-looking statements.

None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they

be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or

prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no

obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors

affecting these statements.

Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors,

officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this

presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise)

whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual

situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt

differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their

respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is

only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation

to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any

inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy

of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate

for such purpose. The presentation should not be construed as legal, tax, investment or other advise.

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