SAT To Become an Auto Parts Manufacturing Leader in ASEAN with Excellent lent Quality March 16, 2010
Agenda Industry Overview Group Business Performance Review Future Outlook Appendices
2009 Car Production & Sales Overview 1,400,000 1,200,000 1,000,000 1,393,742-28.3% Exp Sales Pick Up & PPV 82% Passenger 18% Units 800,000 600,000 775,652 615,270 999,378 548,871 535,596 Dom Sales Passenger 43% Others 6% Pick Up & PPV 51% 400,000 200,000 0-10.8% -30.9% 2008 2009 Prod Passenger 31% Pick Up & PPV 67% Others 2% Production Domestic Sales Export Sales Source: TAIA (The Thai Automotive Industry Association) (pls. find details on page 33) 3
2009 Car Production by Type & Brand 1,400,000 17,791 Units 1,200,000 1,000,000 800,000 401,309 15,199 313,442-21.9% P/C Honda 41% Toyota 45% Nissan 6% Others 6% Mitsubishi 2% 600,000 400,000 974,642 670,737-31.2% P/U &PPV Mitsubishi 14% AAT 13% Isuzu 20% Nissan 8% 200,000 Toyota 44% 0 2008 2009 Pickup & PPV Passenger Car Others Source: TAIA (The Thai Automotive Industry Association) (pls. find details on page 33) 4
2009 Domestic Car Sales by Type & Brand 700,000 600,000 500,000 Units 41,034 34,223 P/C Honda 39% Mitsubishi 2% Nissan 4% Mazda 3% Others 9% 400,000 236,765 236,710 Toyota 43% 300,000-3.3% 200,000 337,471 277,938 P/U &PPV Isuzu 40% Nissan 7% Mitsubishi 6% AAT 4% 100,000-21.0% Toyota 42% 0 2008 2009 Pickup & PPV Passenger Car Others Source: TAIA (The Thai Automotive Industry Association) (pls. find details on page 33) 5
2009 Export Car Sales by Type & Brand 800,000 Units 700,000 169,102 Honda 39% Mitsubishi 1% Others 3% 600,000 P/C Nissan 9% 500,000 98,675-41.6% Toyota 47% 400,000 606,550 300,000 200,000 436,921-28.0% P/U &PPV Mitsubishi 20% AAT 18% Isuzu 10% Nissan 9% 100,000 Toyota 44% 0 2008 2009 Pickup & PPV Passenger Car Source: TAIA (The Thai Automotive Industry Association) (pls. find details on page 33) 6
1,600,000 1,200,000 Trend of Thailand Car Production & Sales units Asia s Recovery 928,081 1,287,346 1,188,044 1,125,316 1,393,742 Global Financial Crisis 999,378 1,400,000 (+40%) 1,215,207 (+22%) 800,000 400,000 0 775,652 Asia Financial 750,512 682,161 690,100 Crisis of 1997-98 703,261 584,951 626,026 631,251 615,270 459,418 411,721 533,176 538,966 363,156 296,985 440,705 409,362 360,303 327,233 262,189 332,053 144,065 181,471 218,330 235,122 158,130 152,835 175,299 42,218 67,857 125,702 548,871 770,000E 600,000E 535,596 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010F Actual Production SAT Forecast Domestic Sales Export Sales FTI Forecast Source: FTI (The Federation of Thai Industries (1997-2008)) 7
Car Production & Sales came in line with that of 2008 Units 140000 120000 100000 80000 60000 40000 20000 Jan08 Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Jan09 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan10 Dom Sales Exp Sales Total Prod Total Sales Source: TAIA (The Thai Automotive Industry Association) 8
Car Production and Sales in January 2010 AAT 3% MMth 14% Isuzu 14% Nissan 10% Toyota 39% Honda 13% Other 7% AAT 4% MMth 5% Nissan 5% Honda 16% Isuzu 20% Other 12% Toyota 38% MMth 22% AAT 5% Isuzu 8% Honda 10% Toyota 40% Nissan 14% Other 1% 120,000 Units 80,000 32,672 (31%) 40,000 71,177 (69%) 21,682 (44%) 27,878 13,070 (22%) 45,455 (56%) (78%) 0 Production Dom Sales Exp Sales Pickup & PPV Passenger Car Source: TAIA (The Thai Automotive Industry Association) (pls. find details on page 33) 9
Trend of Export Car Sales Destinations 100% % 775,652 Units 535,596 Units 58,525 Units 7% 6% 7% 7% 7% 13% 7% 6% Africa Europe Central&S. America 75% 12% 21% 27% 21% Middle East 50% 24% 27% 31% Asia 25% 24% 27% 28% Aus, NZ & Oceania 0% 2008 2009 Jan10 Source: TAIA (The Thai Automotive Industry Association) 10
Key issues weighing on 2010 prospects Perception of quality damaged from Toyota and Honda Recall (no effect on Thailand; different design, material, part maker and assembly lines) Thai Political uncertainty could damage economic growth and investors confidence Map Ta Phut could undermin e 2010 GDP by 0.3-0.5% Oil Price and Global Warming lead to small/ lighter vehicle Emerging new players ; China and India Thai auto-part suppliers Fair incentive package of fuelefficient and environmentally friendly vehicles for all players Asia will lead global economic recovery Income Guarantee for Farming products to boost farming products price and pick-up sales AFTA Thailand should most benefit from zero internal tariff among ASEAN-5 countries (2012 for Philippine/ 2015 for CLMV) Eco Car, 1 st model from Nissan to launch ~ March 11
Japanese Car Makers Strategies Updated Production/Export base of 1 ton-pick up truck Production base of compact car Eco car project induces new investments (578,000 annually production units) Nissan transfers its compact car production, March, to Thailand Honda designated Thailand as the mother factory of its compact sedan, City Global parts supply base R&D function > fuel-efficient, alternative fuel, small Regional Training Center Challenges for Thai Auto Parts Industry 12
New Cars Market in Thailand for 2010 and beyond Brand 2010 2011 2012 2013 2014 Isuzu D-Max 2 / D-Max(RT50) D-Max(RT50-SUV > to replace MU-7) Honda Jazz 1 /City 1 / Accord 1 / Eco car(2cv)/ Civic(2HC) Jazz-Hybrid/ CR-V City Toyota Vios 1 /Yaris 2 / Vigo 2 Prius/ Collora 1 Vios/Yaris 3 / Camry Altis Hilux (IMV2)/ Eco car 3 Mitsubishi LancerEX/Triton (special edition) None Triton/ New B- car or Eco car 3 Nissan March(Eco car)/navara 1 / Venette(NV200) March(sedan)/ Qasana Tida New compact sedan (to replace Tida Latio) Mazda Mazda2(sedan), Mazda3 1 Mazda3/ BT50(T6) Ford Fiesta(B229) Ranger(T6)/ Escape 1 / Focus/Everest (Escape discontinued) Chevrolet Cruze(J300) Aveo(T300)/ Colorado(GMI700) Suzuki Swift/SX4 3 Eco car Note : 1 - minor change 2 - nano change 3 - not confirmed P/U & PPV Passenger 13
Agenda Industry Overview Group Business Performance Review Future Outlook Appendices
Rear Rear Axle Axle Shaft Shaft 86 86 % Market Share: Axle Shaft & Coil Spring Other 5% SAT Market share FY 09 86% SMT 8% Toyota (100%) Fortuner, Vigo Mitsubishi (100%) Triton, 3E45 AAT (Mazda & Ford) (100%) BT-50, Ranger Isuzu (70%) D-Max 4x4, 2x4, 4x2 (3,000cc. Only), MU-7 Pickup car Coil Coil Spring Spring 28 28 % Other 1% Mitsubishi (29%) Toyota (10%) Honda (26%) (Accord ย งไม รวม) Lancer (Rear) Camry (Rear) Jazz, City (Rear) NHK 66% Market share FY 09 BSK 33% Nissan (9%) Toyota (59%) Mitsubishi (100%) Passenger car New Teana (Front) Fortuner, Vigo 4x4 Triton, 3E45 Pickup car 15
Market Share: Leaf Spring & Stabilizer Bar Leaf Leaf Spring Spring 17% 17% NHK 88% Market share FY 09 BSK 12% Mitsubishi (100%) Pickup car Hino (2%) Mitsubishi Fuso Truck (88%) Triton Bus Trucks Commercial car Stabilizer Stabilizer Bar Bar 35% 35% NHK 61% Other 1% Market share FY 09 BSK 38% Mitsubishi (29%) Lancer Honda (52%) Jazz/City (FR) / Accord (RR) Toyota (20%) New Altis (FR) Toyota (56%) Fortuner, Vigo 4x4 Mitsubishi (100%) Triton, 3E45 Nissan (90%) Passenger car Pickup car LCV 4x2, Navara 16
Disc Disc Brake Brake 29% 29% Market Share: Disc Brake & Drum Brake Aisin 65% Kiriu Other 1% 5% SBM 29% Market share FY 09 Honda (100%) Jazz/City, Civic, Accord, CR-V Mitsubishi (21%) Mitsubishi (100%) Passenger car Pickup car Space Wagon Triton, 3E45 Drum Drum Brake Brake 26 26 % Kiriu 6% Aisin 49% Other 20% Market share FY 09 SBM 25% Honda (31%) Mitsubishi (100%) Isuzu (70%) Passenger car Mitsubishi Fuso Truck (88%) City (Rear) Triton, 3E45 D-Max 4x4, 2x4, 4x2 (3,000 cc. only), MU-7 Pickup car Commercial car Trucks 17
Market Share: Exhaust Manifold Exhaust Exhaust Manifold Manifold 20% 20% Calsonic 2% Other 20% SBM Mitsubishi (53%) Passenger car Lancer Market share FY 09 18% Aisin 60% Mitsubishi (88%) AAT (100%) Pickup car Triton, 3E45 BT-50, Ranger 18
Capacity and Utilization Rate Production Volume (Per Month) Capacity (pcs) 2009A Utilization (%) Capacity (pcs) 2010E Utilization (%) F orgi ng Axle Shaft 240,000 56% 240,000 70% M a c h i n I n g Disc Brake Drum Brake Exhaust Manifold Fly Wheel 109,000 95,000 46,000 11,000 68% 68% 65% 65% 121,000 95,000 47,000 11,000 76% 75% 75% 75% S p r i n g Coil Spring Stabilizer Bar Leaf Spring (tons) 255,000 100,000 1,500 40% 46% 55% 255,000 100,000 1,500 50% 50% 65% Weighted Utilization rate 60% 70% Note : Full Capacity 500 hrs./month 19
Agenda Industry Overview Group Business Performance Review Future Outlook Appendices
21 Financial Highlights 18% 296% 10% 2% 7% 2% -1% 4% 96% 76% 57% -10% 49% 25% 24% QoQ 1,025 358 133 2,561 3,800 2,597 6,361 635 768 1,240 371 1,159 5,939 5,814 2008 14% 540 434 114 2,868 3,324 2,347 6,192 314 429 913 351 767 4,348 4,295 2009-14% -24% 27 27 36 Interest Exp. -47% 49% 174 45 337 CAPEX 7% 108 2,678 3,275 2,380 5,953 97 124 239 96 215 1,137 1,136 3Q09-44% 61% 218 136 NOPAT 12% 12% 2,868 2,561 Equity -13% -13% 3,324 3,800 Total Liabilities 21% 26% 119 94 Depreciation -26% 65% 375 227 EBITDA -6% -14% 86 100 SG&A -51% 91% 191 100 Net Profit 17% 17% Effective Tax Rate -10% -10% 2,347 2,597 Int. Bearing Debt -3% -3% 6192 6,361 Total Assets -34% 38% 321 233 GP -27% -5% 1,416 1,484 Total Revenue -26% -2% 1,406 1,440 Sales YoY YoY 4Q09 4Q08 Unit : Bt.mn
Key Financial Ratio 4Q08 3Q09 4Q09 2008 2009 %GPM 16.19 18.94 22.84 19.94 17.86 %EBITDAM 15.32 21.02 26.45 20.89 20.99 %NPM 6.74 8.55 13.45 10.69 7.23 %ROA 6.89 6.34 12.14 10.93 5.01 %ROFA 20.85 20.17 29.36 26.62 17.74 EBITDA/CAPEX (x) 0.67 5.45 2.16 1.21 1.69 %ROE 17.36 14.89 28.08 27.55 11.58 %ROCE 12.49 11.63 22.28 21.25 10.44 %ROIC 10.78 10.07 17.34 15.25 8.54 Int.Bearing Debt/Equity (x) 1.01 0.89 0.82 1.01 0.82 DER (x) 1.48 1.22 1.16 1.48 1.16 Interest Coverage (x) 6.37 8.99 13.81 9.33 7.98 EPS (bt) 0.33 0.32 0.64 2.12 1.05 BVPS (bt) 8.54 8.93 9.56 8.54 9.56 22