Somboon Advance Technology PCL - listed...
25
Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility Somboon Advance Technology PCL June 10, 2013 1 Opportunity Day
Transcript of Somboon Advance Technology PCL - listed...
Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility
Somboon Advance Technology PCL
June 10, 2013
1
Opportunity Day
AGENDA
2
Thailand, world top auto assembler, is poised for impressive growth
• Developed Asia-Pacific includes Australia, Japan, South Korea • Developing Asia-Pacific includes China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand, Vietnam Source : Autofacts Global Light Vehicle Assembly Outlook Data Release & Marklines , October 2012
Annual Growth CAGR (2012) (2013-2018)
Vehicles per 1,000 2002 2009-11 2030F %CAGR
Europe -4.55% 4.15%
Great China 5.47% 7.26%
N.America 17.41% 2.20%
Japan/Korea 11.94% 0.00%
S.Asia 20.12% 6.94%
S.America -1.04% 6.07%
M-East/Africa -23.88% 5.43%
Global 6.07% 4.49%
US 812 808 849 0.26
Japan 599 589 716 1.03
Brazil 121 259 377 2.00
China 16 47 269 9.62
Indonesia 29 79 166 3.99
India 17 18 110 10.00
Malaysia 240 350 677 3.53
Thailand 127 165 592 6.96 Total World 130 N/A 254
Source : Institute for Transport Studies, University of Leeds, UK
3
Global assembly rank 2010A 2011 2012
China 1 1 1
USA 3 2 2
Japan 2 3 3
Germany 4 4 4
India 7 6 6
South Korea 5 5 5
Brazil 6 7 7
France 10 11 12
Mexico 9 8 8
Thailand 12 14 10
Spain 8 9 11
Canada 11 10 9
Russia 15 12 13
Iran 13 15 15
United
Kingdom 14 13 14
Million
Source : IHS_Jan 2013
ASEAN Automotive Production Base in Y2012
4
P = 0.07
S = 0.16
P = 2.45
S = 1.44
P = 1.06
S = 1.12
P = 0.57
S = 0.63
P = 0.07
S = 0.08
Source : Data of Year 2012 by AAF (ASEAN Automotive Federation )
S = 0.04
S= 0.02
Note : P = Production S = Domestic Sales
Unit = million cars
Export
Total Production = 4.22
Total Sales = 3.49
5
GD
P p
er C
apit
a (U
SD)
Vehicles per 1000 people
Market Opportunity – ASEAN Market
Note : Size of circle refer to the number of population
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
20
13
F
1Q
13
(F)
1Q
13
(A)
2Q
13
(F)
3Q
13
(F)
4Q
13
(F)
Domestic Export
Source : Y2010 – 2013 (1Q) Actual from TAIA and Y2013F – base case by customer long term forecast), December 2012
Japan Tsunami & Thai Flood
Million Units
2.45
2.6-2.7
1.6 1.5
1.0 58%
42%
52%
48%
Thailand Automotive Production
Hamburger Crisis (Financial Crisis)
0.66 0.72 0.64 0.7 0.69
6
Actual > Forecast = 9%
382 194
188
216
163 54
109
67 42
0
200
400
600
800
Production Dom Sales Exp Sales
Thousands
Other
Eco Car
Passenger Car
Pickup & PPV
(53%)
(30%)
(50
%)
(37%)
(15%)
(16%)
(44%)
Toyota 28%
Mitsubishi 24%
Ford&Mazda
9%
Isuzu 6%
Honda 6%
Nissan 16% GM
3%
Other 8%
Toyota 30%
Mitsubishi
10%
Ford&Mazda
9%
Isuzu 15%
Nissan 10%
Honda 16%
GM 4%
Other 6%
Toyota 30%
Mitsubishi
15%
Ford&Mazda
9%
Isuzu 11%
Nissan 12%
Honda 12% GM
3%
Other 8%
7
3M2013 Automotive Production and Sales
Source: TAIA (The Thai Automotive Industry Association) , April 2013
0.72m. units 0.44 m. units 0.28 m. units +44% y-y +57% y-y +29%y-y
0.44m.
0.28 m.
0.72m.
(15%)
(66%)
(19%)
30% 32% 33% 30%
23% 21% 20% 25%
20% 21% 24% 22%
12% 11%12% 10%
9% 10% 7% 8%6% 5% 4% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q13
8
Automotive Export Destinations
Source: TAIA (The Thai Automotive Industry Association), April 2013
Aus, NZ & Oceania
Asia
Middle East
C & S America
Europe Africa
1
2
3
%
14,075 14,123
21,130 18,164
32,964
57,744
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013F 1Q13(F) 1Q13(A)
Tractor
Total
Agriculture Machinery Production Actual & Forecast 1Q2013
Un
its
9
62,000-65,000
Actual > Forecast = 0.34%
Note : Data of Kubota production only Source : Customer (Kubota) + Marketing forecast Jan 2013
AGENDA
10
11
Group Structure and Business
SAT (Paid Up (424 mb)
SBM (Paid Up 500 mb)
BSK (Paid Up 130 mb)
Tsuchiyoshi Somboon Coated Sand (Paid Up 72 mb)
Yamada Somboon (Paid Up 150 mb)
Nisshinbo Somboon Automotive (Paid Up 732.6 mb)
Somboon Somic Manufacturing (Paid Up 300 mb)
100% 100%
21.25% 20.00%
2.90%
1.80%
Somboon Holding 25.49% Kittapanich Family 20.81% Sub-total 46.30%*
Others 53.70%*
Sales ~264 mb, TA~244 mb, GPM 24.2%, NPM 7.7%
Sales ~1,867 mb, TA~1,353 mb, GPM 14.3%, NPM 1.6%
Sales ~1,800 mb, TA~1,980 mb, GPM 18.6%, NPM 9.9%
Sales ~2,239 mb, TA~1,377 mb, GPM 13.2%, NPM 8.8%
• Steering Column Assembly • Water Pump Assembly • Oil Pump
• Ball Jointed • Tie Rod End • Outer Track Rod • Stabilizer Linkage
• Brake System
• Casting (Rasin/Sand)
ICP (Paid Up 785 mb)
100%
SIJ (SBG International (Japan) (Paid Up 10 mb)
• Casting RM for SBM •Machining •Product
Spring Product • Sales Representative in Japan
100%
Hot Forging Product (Axle Shaft)
General forging RM (Hot & Cold)
100%
SFT (Paid Up 100 mb)
Note : * as of March 14, 2013
Automotive Part Products
Leaf Spring Drum Brake Coil Spring Front Corner
Module Ass’y
Timing Cover
Stabilizer Bar
Exhaust Manifold Camshaft Flywheel Diff. Carrier
Rear Axle Shaft Carrier Rear
Diff.Box
Yoke
12
Agriculture Machinery Part Products
13
Product Champion of Group
14
Forging & Machining Products
General Forging Products
Hub FR Axle
SAT
End RR Axle Housing
SFT
BSK
Axle Shaft
Stabilizer Bar
Leaf Spring
Coil Spring
Spring Products Iron Casting & Machining Products
ICP &SBM
Disc Brake Drum Brake
Hub Front Corner
Module Ass’y
Flywheel
(SOP 2015)
AGENDA
15
SAT81%
SMT &OTHERS
19%
16
Rear Axle Shaft Y12 = 83 %
Market Share of Product Year 2013 (1Q13)
SBM31%
OTHERS (AISIN, KIRIU
etc.)69%
SBM33%
OTHERS (AISIN KIRIU
etc.)67%
Disc Brake Y12= 29% Drum Brake Y12 = 27%
BSK14%
NHK
&OTHERS86%
Leaf Spring Y12 = 15%
BSK41%
NHK & OTHERS
59%
Coil Spring Y12 = 42 %
BSK41%
NHK &OTHERS
59%
Stabilizer Bar Y12 = 38%
17
Capacity & Utilization Rate & CAPEX
Production Volume
(Pcs per month) Capacity Utilization Capacity Utilization
Working hour @500 hr.(pcs) (%) (pcs) (%) (MB)
(20 hrs x 25 working days) (Y2013-2014)
Axle Shaft 275,000 109% 320,000 98% 680
Machining (Auto) 481,000 90% 592,000 86% 180
Machining (Non Auto) 139,000 98% 158,000 118% 30
Coil Spring 255,000 104% 280,000 130% -
Stabilizer Bar 80,800 139% 180,000 70% 140
Leaf Spring (tons) 1,500 90% 1,500 100% -
Average Utilization
Rate105% 100% 1,030 MB
2/
Note : 1/ Utilization of 1Q13 = 114%
2/Not include SFT Project (370 MB) and others (200 MB)
Investment of year 2012 ~ 1,100 MB
Investment2013E2012A
1/
18
Financial Highlights 2010 2011 2012 YoY Unit : MB 1Q12 2Q12 3Q12 4Q12 1Q13 QoQ YoY
6,263 6,421 9,410 47% Sales 2,199 2,234 2,450 2,527 2,535 0.33% 15.28%
6,447 6,552 9,590 46% Total Revenue 2,253 2,284 2,519 2,534 2,582 1.89% 14.60%
1,234 972 1,495 54% GP 353 322 400 420 436 3.80% 23.51%
431 498 641 29% SG&A 143 156 156 186 189 1.66% 32.17%
17 -26 22 -184% FOREX Gain (Loss) 16 -6 6 6 -1 -116.95% -106.25%
1,425 1,173 1,766 51% EBITDA 444 393 494 435 485 11.55% 9.23%
759 408 816 100% Net Profit 207 161 258 190 238 25.42% 14.98%
8,077 8,831 10,103 14% Total Assets 9,554 9,620 10,003 10,103 10,457 3.51% 9.45%
2,425 3,185 3,156 -1% Interest Bearing Debt 3,242 3,270 3,164 3,156 3,196 1.26% -1.42%
4,004 4,649 5,272 13% Total Liabilities 5,168 5,105 5,334 5,272 5,453 3.44% 5.51%
4,073 4,182 4,831 16% Equity 4,386 4,515 4,668 4,831 5,004 3.58% 14.09%
1,389 863 1,779 106% Cash Flow from Operating 290 264 655 570 341 -40.18% 17.59%
111 120 160 33% Interest Expense 39 41 41 39 38 -2.64% -2.56%
438 567 720 27% Depreciation 176 174 180 190 186 -2.20% 5.68%
1,078 1,726 1,108 -36% CAPEX 339 156 195 418 428 2.46% 26.25%
13% 16% 9% Effective Tax Rate 10% 10% 6% 8% 9%
2010 2011 2012 Key Financial Ratios 1Q12 2Q12 3Q12 4Q12 1Q13
6.88% 7.76% 6.81% %SG&A 6.50% 6.98% 6.37% 7.36% 7.46%
19.70% 15.14% 15.89% %GPM 16.05% 14.41% 16.33% 16.63% 17.20%
22.10% 17.90% 18.41% %EBITDAM 19.71% 17.21% 19.61% 17.16% 18.78%
11.77% 6.23% 8.51% %NPM 9.19% 7.05% 10.24% 7.49% 9.22%
10.64% 4.83% 8.62% %ROA 9.00% 6.73% 11.00% 8.02% 9.51%
1.32 0.68 1.59 EBITDA/CAPEX (x) 1.31 2.52 2.53 1.04 1.13
21.87% 9.88% 18.10% %ROE 19.32% 14.50% 23.06% 16.84% 20.28%
15.82% 7.65% 12.71% %ROIC 13.50% 10.87% 15.84% 11.94% 13.95%
0.35 0.65 0.65 Net I-Debt/Equity (x) 0.64 0.61 0.68 0.65 0.64
0.60 0.76 0.65 Int. Bearing Debt/Equity (x) 0.74 0.72 0.68 0.65 0.64
0.98 1.11 1.09 DER (x) 1.18 1.13 1.14 1.09 1.09
2.24 1.20 2.41 EPS (bt) 0.61 0.47 0.76 0.56 0.56
11.98 12.30 14.21 BVPS (bt) 12.90 13.28 13.73 14.21 11.77
19
SAT Sales Breakdown Year 2012
Market Ratio (%)
Domestic 96%
Export 4%
Market Ratio (%)
OEM 97%
REM 3%
Breakdown by Destination
Breakdown by Market
Note : OEM = Original Equipment Manufacturer REM = Replacement Equipment Manufacturer
20
Sales Breakdown by Product
31% 31% 33% 30%34% 33% 33% 31% 32%
10% 10% 9%8%
9% 10% 8% 10% 10%
9%7%
8%8%
8% 9% 8% 9% 10%
11%12%
11%15%
10% 8% 10% 10% 9%
8%7%
8% 7% 8% 8% 8% 7% 8%
31%33%
31% 32% 31% 32% 33% 33% 31%
0%
20%
40%
60%
80%
100%
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Axle Shaft
Leaf Spring
Disc & Drum Brake
Stabilizer Bar
Coil Spring
Others (i.e. hub, bracket, camshaft, flywheel)
Sales by Company
SAT34%
BSK26%
SBM40% 2012
3M13
SAT32%
BSK27%
SBM41%
1,495 1,782 1,957 1,187 2,199 2,234 2,450 2,527 Bt.mn
2,535
21
32% 33% 28% 28% 27%
31% 30% 31% 30%
27% 21%
28% 28% 31% 28%
26% 26% 27%
6% 10%
10% 10% 10%
12%
10% 10% 13%
7% 6% 6% 6%
8% 10%
7% 8% 8% 7%
4% 4% 4%
1%
7%
6% 7%
7% 3%
3% 3% 3% 4%
3%
3% 4%
3% 18%
23% 21% 21% 19%
9% 18%
14% 12%
0%
25%
50%
75%
100%
1Q11 2Q11 3Q11 3Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Mitsubishi
Toyota
Honda
Isuzu
Nissan
Bt.mn
Kubota
1,495 1,782 1,957 Others (i.e. GM)
1,187 2,199 2,234 2,450 2,527
Sales Breakdown by Customer
2,535
AGENDA
22
The Road Ahead
23
CAPEX
• 800-900 MB per year in 2013-2014 (excl. Oversea Investment project )
Prospect
• To keep up with market growth (by organic investment and joint venture) • To penetrate new markets for expanding customer base & sales growth
(including new geographical markets) • Focus on cost competitiveness • To build sustainable growth by R&D/ Process & Product development • Facing shortage of skill labor in the future
R&D
• To be a part of OEM’s moving up value chain (productivity, technological advances
and innovation)
• To enhance our competitiveness and expertise in product design and process improvement in area of forging, casting, machining, and spring business to supply new parts, as CKD, or small module in the automotive and agricultural industry
Quality Awards
Quality Improvement Awards from
Honda (Zero Claim)
Quality Excellence Awards from
Thai Honda
Cost Reduction Awards from
Toyota, Hino, etc.
Awards of Quality 2012 :
Excellence is Zero Defect from Mitsubishi
24
AWARDS & RECOGNITIONS
Management Awards
Board of the year 2010/2011 continuous
Awards #2 from IOD & SET
SET Awards of Honor for the excellence as the
outstanding Corporate Governance report for a
consecutive period from 2009 to 2012.
Best Corporate Social Responsibility Awards - 2012
Best Investor Relations Awards -2012
CSR-DIW continuous Awards
The National Best Co-operative Education Award
Thank You
Somboon Advance Technology Public Company Limited –Investor Relations Department Tel. +66 2 728-8596, Fax. +66 2 728-8513, Email: [email protected], http://www.satpcl.co.th
Questions and Answers
25
