Opportunity DayQ2/2011 Results Presentation

23rd August 2011At Stock Exchange of Thailand

Present by:

Mr. Sompong Phaoenchoke, MD.

Mr. Likhit Laobawornseadthee, CFO.

2

Agenda

• Company Profile

• Industry Overview

• Financial Review

• Future Outlook

3

Group Structure & Business

Thai Rung Union Car Plc.“TRU”

-R&D, Auto Assembly-Press Metal Parts, Plastic Parts

Thai Rung Tools and Dies Co. Ltd.“TRT”

- Tooling (Dies/Jigs/CF)

Thai Auto Conversion Co. Ltd.“TAC” (JV. with Toyota group)

- Special Purpose Vehicles

Thai Auto Pressparts Co. Ltd.“TAP”

- Pressed Metal Parts

Delta-TR Co. Ltd.“DTR” (JV. with Delta Kogyo, Japan)

- Seat & Seat Component

Thai V.P. Auto Service Co. Ltd.“TVS”

- After-sales Services & Spare Parts, Gas conversion

Delta Thairung Co. Ltd.“DTC” (JV. with Delta Kogyo, Japan)

- Seat & Seat Component

Thai Ultimate Car Co. Ltd.“TUC”

- Automotive, consulting & admin. services

Subsidiary Companies Associated Companies

94%

91%

94%

30%

46%

46%

99.53%

4

Scope of Business

•Research & Development (R&D)

•Tooling (Dies/Jigs/CF)

•Pressed metal part & plastic part

•Auto Assembly

•Seat & seat component

•After-sales service & Spare parts

5

Business Units

Tooling (Dies/Jigs/CF)

Special Purpose Vehicle

OEM Parts

Contract Assembly

6

Agenda

• Company Profile

• Industry Overview

• Financial Review

• Future Outlook

7

Thai Auto Industry 2004-2015F

1.39

1.00

1.651.80

0.93

1.29

2.30

1.96

1.13 1.19

2.12

2.50

0.900.80

0.55

1.100.97

0.62

0.70 0.680.63

1.03

0.63

1.18

1.201.09

0.99

0.69

0.440.33

0.54

0.900.90

0.54

0.78

1.32

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2004 2005 2006 2007 2008 2009 2010 2011(F) 2012(F) 2013(F) 2014(F) 2015(F)

Production

Domestic

Export

Mil. Units

Source : - Year 2004-2010 The Federation of Thai Industries,

Note - Year 2011-2015 forecasted by TRU, Estimate Domestic 45%, Export 55%

+65%

-28%

+46%

-11%

+67%

-31%

+9%

+9%

+8%+8%+21% +6%

+8%

+8%+9%

+6%+7%

+7%

+10%+10%

+10%+10%

Hamburger crisis

CAGR (2004-2008)

Production 10%, Domestic NA., Export 25%

CAGR (2010-2015F)

Production 9%, Domestic 7%, Export 10%

(From Eco car)

+12%

-

+7%

-2%-7%

-3%+11%

+33%+24%

+28%+13%

8

Production Volume in Thailand Q2/2011

386,153

468,981

341,629

0

100,000

200,000

300,000

400,000

500,000

Q2/10 Q1/11 Q2/11

Units Units

Production

Source : The Federation of Thai Industries

Cumulative Production

-27% QoQ

-12% YoY

(Tsunami effect) 768,994

810,610

0

200,000

400,000

600,000

800,000

1,000,000

1H/10 1H/11

+5% YoY

(Tsunami effect in Q2/11)

9

Domestic Sales in Thailand Q2/2011

86,331113,470

91,462

91,356

110,292

90,179

12,203 11,752

14,857

0

100,000

200,000

300,000

Q2/10 Q1/11 Q2/11

Commercial car

Passenger car

Pickup+PPV

Units Units

Domestic SalesSource : - The Federation of Thai Industries Note : - PPV = Pickup truck base Passenger Vehicle

- Commercial car = Truck, Van, Bus

Cumulative Domestic Sales

+21% YoY

(Tsunami effect in Q2/11)

QoQ

-19% QoQ

+2% YoY

(Tsunami effect)

Total

189,890

Total

238,619

Total193,393 YoY

-21%

-18%

-19%

-4%

-1%

+6% 173,393 204,932

160,326

200,47122,973

26,609

0

200,000

400,000

600,000

1H/10 1H/11

Commercial car

Passenger car

Pickup+PPV

Total356,692

Total432,012

+16%

+25%

+18%

10

CBU Export Q2/2011

149,922171,118

124,781

51,571

63,289

41,717

0

100,000

200,000

300,000

Q2/10 Q1/11 Q2/11

Passenger car

Pickup+PPV

Units Units

Source : - The Federation of Thai Industries Note : - CBU = Complete Built – up

- PPV = Pickup truck base Passenger Vehicle

QoQ

Total201,493

Total234,407

Total166,498

YoY

-34%

-27%

-19%

-17%

325,374 295,962

92,804105,028

0

200,000

400,000

600,000

1H/10 1H/11

Passenger car

Pickup+PPV

Total

418,178Total

400,905

+13%

-9%

CBU Export Cumulative CBU Export

-29% QoQ

-17% YoY

(Tsunami effect)

-4% YoY

(Tsunami effect in Q2/11)

11

CBU Export by Brand 1H/2011

MAZDA,

21,054, 5%

ISUZU, 20,819,

5%

HONDA,

17,441, 4%GM, 11,448,

3%

FORD, 51,471,

13%

Nissan,

62,673, 16% MITSUBISHI,

79,728, 20%

TOYOTA,

136,159, 34%

Source : - The Federation of Thai Industries

Note : - CBU = Complete Built - up

1H/2011Total Export 400,905 Units

-4% YoY (Tsunami effect in Q2/11)

FORD, 28,040 ,

7%

ISUZU, 27,674

, 7%

MAZDA,

22,738 , 5%

GM, 14,304 ,

3%

HONDA,

33,628 , 8%

Nissan, 50,064

, 12% MITSUBISHI,

77,193 , 18%

TOYOTA,

164,366 , 40%

1H/2010Total Export 418,178 Units

• Toyota still be major exporter but market shares reduce from 40% to 34%.

• Nissan increase market shares from 12% to 16% from pickup and passenger car (Nissan March), bring growth performance to TRU for stamping part and painting work.

• Ford move from no.5 to no.4 with market shares 13% from pickup and passenger car, bring growth to DTC & DTR (Associated companies)

12

Agenda

• Company Profile

• Industry Overview

• Financial Review

• Future Outlook

13

Financial Highlights : Very Strong Performance

620 607

11373

9410575

96

0

100

200

300

400

500

600

700

Total

Revenue

Gross Profit Net Profit EBITDA

MB. Q1/11

Q2/11

Note : 1. Consolidate Financial Statement.

2. Year 2010 operation was restated according to first time adoption of TAS 12 "Income Taxes".

915

1,227

218149

190140

75124

0

200

400

600

800

1,000

1,200

1,400

Total

Revenue

Gross Profit Net Profit EBITDA

MB. 1H/10

1H/11(-2%)

(+7%)

(-2%)(-2%)

(+34%)

(+55%)(+97%) (+54%)

Q2/11 Automotive industry -27% QoQ from Tsunami effect but TRU’s revenue -2% QoQ results from

customer diversification & growth performance.

1H/11 Automotive industry +5% YoY but TRU’s revenue +34% YoY results from customer

diversification & growth performance.

17% 12% 16% 15% 8% 14%19% 12% 16% 18% 12% 16%

14

448603

259

400110

121

98

103

0

500

1,000

1,500

1H/10 1H/11

Others

Sales of Cars & Service Center

Contract Assembly

Tooling & OEM Part

239309 295

142

206 19450

7349

57 4548

0

200

400

600

800

1,000

Q2/10 Q1/11 Q2/11

Others

Sales of Cars & Service Center

Contract Assembly

Tooling & OEM Part

MB. MB.

Quarterly Half Year

QoQTotal

480 MB.

YoY-22%

-6%

-5%

-10%

+37%

+23%

Total 1,227 MB.

+10%

+55%

+35%

Revenues Breakdown

Total

620 MB.Total

607 MB.

+54% +46%

-2% QoQ

+26% YoY

Total 915 MB.

+5%

+34% YoY

Note: 1. Tooling (Dies/Jigs/CF) & OEM Part include Aapico, IMCT, SLAB, GM, Emerson, Triumph, Kawasaki etc..2. Contract Assembly includes Nissan, Flat deck (Isuzu, GM, TATA), Komatsu, Vacuum ICL, etc..3. Sales of Car & Service Centre include windshield, assembly, equipment and accessories.4. Others includes interest, scrap sale, share of profit from investments in associated companies, ect.

YoY

15

Revenues Portfolio 1H/2011

Tooling &

OEM Part,

603 MB. ,

49%Contract

Assembly,

400 MB. ,

33%

Sales of

Cars &

Service

Center, 121

MB. , 10%

Others, 103

MB. , 8%

Note: 1. Tooling (Dies/Jigs/CF) & OEM Part include Aapico, IMCT, SLAB, GM, Emerson, Triumph, Kawasaki etc..2. Contract Assembly includes Nissan, Flat deck (Isuzu, GM, TATA), Komatsu, Vacuum ICL, etc..3. Sales of Car & Service Centre include windshield, assembly, equipment and accessories.4. Others includes interest, scrap sale, share of profit from investments in associated companies, ect.

1H/11 Total revenues 1,227 MB. +34% YoY, results from customer diversification & growth performance.

Others

2%Motorcycle

4%

Industrial

Machinery

17%

Automotive

77%

82%

Customer sectors breakdown of BU. Tooling & OEM part and contract Assembly.

16

Note : 1. Total revenue included sale and service income, other income, and share of profit from investments in associated companies.

2. Year 2010 operation was restated according to first time adoption of TAS 12 "Income Taxes".

Financial Review

QoQ YoY

MB % MB % % MB % MB % %

Total Revenue 606.5 100.0% 620.3 100.0% (2.2%) 1,226.8 100.0% 915.1 100.0% 34.1%Gross Profit 112.8 18.6% 105.4 17.0% 7.0% 218.2 17.8% 140.2 15.3% 55.6%EBIT 94.5 15.6% 101.7 16.4% (7.0%) 196.2 16.0% 86.8 9.5% 126.1%Net Profit for the period 73.4 12.1% 75.1 12.1% (2.3%) 148.5 12.1% 75.3 8.2% 97.3%

EBITDA 93.9 15.5% 96.1 15.5% (2.3%) 190.1 15.5% 123.6 13.5% 53.8%

Financial Ratio % % % % % %

Gross Profit Rate 20.2% 18.9% 1.3% 19.6% 16.7% 2.9%% Net Profit for the period 12.1% 12.1% (0.0%) 12.1% 8.2% 3.9%ROA 2.4% 2.4% (0.0%) 4.8% 2.8% 2.0%

ROE 2.9% 2.9% (0.0%) 5.9% 3.2% 2.7%

QoQ YoY

MB % MB % % MB % MB % %

Total Assets 3,092.9 100.0% 3,109.6 100.0% (0.5%) 3,092.9 100.0% 2,722.7 100.0% 13.6%Total Liabilities 488.3 15.8% 455.8 14.7% 7.1% 488.3 15.8% 303.2 11.1% 61.1%

Total Equity of the Company 2,524.2 81.6% 2,573.9 82.8% (1.9%) 2,524.2 81.6% 2,345.2 86.1% 7.6%

Financial Ratio Time Time Time Time Time Time

Current Ratio 2.78 3.28 (0.50) 2.78 3.84 (1.06)

Debt to Equity Ratio 0.19 0.18 0.01 0.19 0.13 0.06

1H/10

(Restated)

1H/11

30 Jun 2011 30 Jun 2010

(Restated)

Q2/11Statements of

Comprehensive Income

Q1/11

30 Jun 2011 31 Mar 2011Statements of Financial

Position

17

Agenda

• Company Profile

• Industry Overview

• Financial Review

• Future Outlook

18

Project Update

• TAP new plant at Amata City Estate, Rayong.

– Scope of business : Metal part stamping and sub assembly part.

– Initial investment 300 MB. with BOI privilege.

– Building will be completed in Q3/2011.

– Start of production in Q4/2011.

– Capacity increases to generate income about 600 MB./year

19

TRU’s Strength

• Comprehensive and integrated scope of work

from R&D, tooling, stamping part, EDP/1 &

painting through production of many kinds of

vehicle.

• Have own EDP/1 & paint shop with high quality

level to meet latest global standards for export.

• Flexible production line to meet customer

need.

• A leading producer of pick-up

“flat deck” cargo box.

• A specialist of pick-up based

special purpose vehicles producer.

Note : 1. EDP = Electro Deposit Primer

2. MUV4 = Military Utility Vehicle 4WD

Special vehicles

Assembly

EDP & Painting

Stamping Part

Tooling

R&D

TRUGroup

Flat Deck

MUV4/2 & Transformer

20

Future Outlook

• Expand ‘OEM Part’ business (metal & plastic part) to serve global

production base policy of international auto makers.

• Expanding Part stamping products to a higher value added parts

such as big size part (2,000 tons press line) and sub assembly

work.

• Expanding capacity by the new plant at Rayong.

• Expanding of EDP/1 & Painting and Contract Assembly business

which have very high growth potential.

– Modernize and increase capacity to serve demand (domestic & export)

from auto maker and industrial machinery maker.

• Expanding customers in flat deck product.

• Producer of pick-up based special purpose vehicles for niche

market models e.g. military vehicle.Note 1. EDP = Electro Deposit Primer

21

Questions &

Answers