Super Convenience Store Samutprakarn Province Auto SNC Cooling Supply Co., Ltd 8, sqm, 1 factory Air Cond Immortal Parts Co., Ltd 17, sqm, 3 factories Plastic SNC Former PLC. (Branch 2) 18, sqm, 4 factories tools Toptech Diamond tools 2, sqm(1 factory) Air Cond International Techno Pipe 2,5 sqm(1 factory) Chonburi Province SNC Former PLC. (Branch 4) 21,8 sqm, 1 factory Rayong Province OEM Air Cond SNC Pyongsan Evolution 23,4 sqm, 15 factories Metal sheet stamping SSM Automation Co., Ltd 5, sqm, 1 factory Aluminum condenser SNC Creativity Anthology Co., Ltd 5, sqm, 1 factory Location closely to customers The International Leader in Manufacturing of Industrial Components & Parts Automobile Parts, Air Conditioner Parts, Electronic Parts, Electrical Appliances Parts *** Copper & Steel Pipe / Metal Sheet Fabrication *** *** Plastic Injection / Heat Exchanger Fabrication *** OEM (Original Equipment Manufacturer), ODM (Original Design Manufacturer) & Pre Assembly Air Conditioners, Freezers and Other Electrical Appliances Jan213
SNC Group Structure SNC Former PLC 287 MB 22MB 1% 3MB 1% 7MB 1% SNC Pyongsan Evolution Co., Ltd SNC Cooling Supply Immortal Parts SNC branch 4 SNC branch 2 air-conditioner pipe + sheet Automotive pipe + sheet Residential air-conditioner OEM ODM Plastic 2MB 1% 1MB 49.% 8MB 6.% 2MB 1% SNC Creativity Anthology SSM Automation Toptech Diamond tools International Techno Pipe Aluminum condenser Metal sheet stamping tooling Residential air-conditioner 4MB 1% 2MB 1% 3MB 1% Ultimate Parts Infinity Parts SME tax exemption 8 years, start 211 Normal BOI average 3-5 years. Paradise Plastic Pipe + Freezer Heat exchanger + metal sheet Non BOI Plastic Page 1
Demand Unit: 1,, units 4 3 2 1.9 1.6 1.4 65% -11% 71% 2.4 2.5 Export 45% Y29 Y21 Y211 Y212 Y213 Automobile Source: The Federation of Thai Industries & Thailand Automotive Institute 2 15 1 5 18.1 19. 15.7 15. Export 8% 1.7 47% -4% 21% Y29 Y21 Y211 Y212 Y213 Air conditioner 2 2 15 1 5 7.4 8.4 1 4.7 5.7 6.2 4.8 5.4 6.6 6.9 7.4 Export 5% 5 Export 5% 21% 9% 19% 12% 22% 5% Y29 Y21 Y211 Y212 Y213 Y29 Y21 Y211 Y212 Y213 15 Refrigerator Washing machine Source: EEI Page 2
SNC products & customers Air Conditioner Residential Air Conditioner Parts Air Conditioner Assemblies (OEM & ODM) OEM Export Plastic Electrical appliances Motorcycle Plastic Car Auto Other Automotive - Automotive Parts - sub assemblies Honda Customers Car maker Auto Isuzu, Toyota Mitsubishi, Nissan Isuzu, Ford Ford, Mazda, GM Nissan Various good customers and products Page 3
Sale Auto OEM Part Other 212 12% 4% 41% 7% 213 12% 38% 42% 8% Compressor - Compressor Parts Heat Exchanger Food Processing Equipment Air-conditioners - ODM Metal Sheet Washing machine OEM Other Diamond tooling - Cutting tools and dies Condenser Aluminum Parts Forging Other New Selling price = cost plus margin Page 4
SNC capacities & utilization Capacity 212 213 units units Automotive air conditioning Capacity 3,, 35,, Utilization 18,8, 22,8, Utilization rate 63% 65% Capacity 212 213 units units OEM for residential air conditioning Capacity 1,238,4 1,227,2 Utilization 364,841 443,865 Utilization rate 29% 36% Residential air conditioning Capacity 59,84,176 67,396,733 Utilization 51,73,15 56,657,32 Utilization rate 86% 84% Heat Exchanger Capacity 1,148,4 1,358,4 Utilization 612,621 646,629 Utilization rate 53% 48% Compressor Capacity 38,4, 38,4, Utilization 37,55,56 3,, Utilization rate 98% 78% Plastic Capacity 29,, 41,153,942 Utilization 22,69,182 33,334,693 Utilization rate 76% 81% Metal sheet Capacity 22,657,56 22,657,56 Utilization 12,17,187 15,66,235 Utilization rate 54% 66% SSM Automation (stroke) Capacity 33,547,8 64,521,6 Utilization 8,356,181 32,3,257 Utilization rate 25% 5% Freezer Capacity 24 3 Utilization 2 27 Utilization rate 83% 9% Diamond tooling Capacity 46, 72, Utilization 39,154 54,75 Utilization rate 85% 76% Page 5
SNC Management SNC GROUP Chairman of the Executive Committee Dr.Somchai Thaisa-nguanvorakul Samutprakarn Rayong Chonburi Mr.Samitt (Vice CoEC & MD) Mr.Somboon (Vice CoEC & MD) Mr.Somchai N. (MD) 12 MB Revenues Net Profits 1 8 8,248 8,324 7,648 6 4 4,21 4,91 Mr.Kodama (Co.MD) Mr.Kim (Co.MD) Mr.Takahashi (Co.MD) Ex-Panasonic Ex-LG Ex-Mitsubishi SNC has good relationship with our customers. 2 99 139 381 52 494 28 29 21 211 212 Year 6
Sales Gross Profit & Gross Profit Margin 1, 8, 6, 4, 2, 4,21 4,91 8,248 8,324 +22% +68% +1% -8% 7,648 Y8 Y9 Y1 Y11 Y12 1,2 1, 8 6 4 2 9.% 6.8% 364 335 8.9% 738 1.3% 11.% 854 841 Y8 Y9 Y1 Y11 Y12 Y11 Y12 Sale 1 1 RM 78 74 DL 3 4 OH 9 11 CoGS 9 89 Net Profit & Net Profit Margin EPS DPS 1,2 1, 8 6 4 2 6.2% 6.5% 4.6% 52 494 2.5% 2.8% 381 99 139 +4% +175% +36% -5% Y8 Y9 Y1 Y11 Y12 3 2 1 EPS DPS 88% 93% 75% 1.81 1.72 145% 1.6 1.6 136% 1.33 1..7.45.48.33 Y8 Y9 Y1 Y11 Y12 Dividend policy 5% of profit Page 7
(Cont d) ROA & ROE Total liabilities/total Equity 6% 5% ROA ROE 1. D/E.92 D(int)/E.92 4% 3% 2% 1% % 5% 6% 6% 8% 28% 22% 16% 18% 15% 25% Y8 Y9 Y1 Y11 Y12.8.6.4.2..62.7.49.59 - - -.2 Y8 Y9 Y1 Y11 Y12 Liquidity Ratio BVPS & Market price Current CCC BVPS Mkt p. 15. 12. 9. 6. 3.. -3. -6. -9. 13 6 1.8 2.1 1.531 1.62 1.22-3 -6 Y8 Y9 Y1 Y11 Y12 3. 25. 2. 15. 1. 5.. 18.6 21.9 6.2 5.786.4 5.98 6.73 7. 4. 24.5 Y8 Y9 Y1 Y11 Y12 Minus cash conversion cycle Page 8
SNC SNC is planning to expand part business for automotive and home appliance products in order to get the maximum benefit from economy of scale Current Position Automotive Air Conditioner Residential Air Conditioner Compressor Freezer Metal Sheet Plastic (electrical appliances) Diamond Tools Aluminum Parts Project Small Player Material Supplier Part Supplier 1981 1981 1981 25 21 212 213 Big Player Manufacture (OEM & ODM) 28 25 212 Market Dominator Capex 213 is 7 MB : aluminum forging and aluminum condenser 5 MB, diamond tools 5 MB, general investment 15 MB. Source of fund = cash flows from operation + bank loan + cash cycle management. Page 9
Other information Source : Thailand Securities Depository, last update asof21 Feb 213. Dr.Somchai, 6.52% Institutional investor, 33.33% SNC holdings Co., Ltd, 31.62% Other shareholders, 27.6% (Dr.Somchai 63.6%) 5 3 1-1 3.26 17.3 3.54 31.25 Y4 Y8 Y13 IPO PO Sub prime 24.5 โครงการโรงงานโรงเร ยน School and factory 4 Mini MDs Page 1