Opportunity Day 2011 Results Presentation 12th March 2012 At Stock Exchange of Thailand Present by: Mr. Sompong Phaoenchoke, MD. Ms. Naiyana Prachotrattanakul, IR Mgr. Agenda • Company Profile • Industry Overview • Financial Review • Future Outlook 2 Group Structure & Business Thai Rung Union Car Plc. “TRU” ‐R&D, Auto Assembly ‐Press Metal Parts, Plastic Parts, Car Seat Subsidiary Companies Associated Companies Thai Rung Tools and Dies Co. Ltd. 94% 20% Thai Auto Conversion Co. Ltd. “TRT” “TAC” (JV. with Toyota group) ‐ Tooling (Dies/Jigs/CF) ‐ Special Purpose Vehicles Thai Auto Pressparts Co. Ltd. 91% 30% Delta Thairung Co. Ltd. “TAP” “DTC” (JV. with Delta Kogyo, Japan) ‐ Pressed Metal Parts ‐ Seat & Seat Components Thai V.P. Auto Service Co. Ltd. 94% “TVS” ‐ After‐sales Services & Spare Parts 99.53% Thai Ultimate Car Co. Ltd. “TUC” ‐ Automotive, consulting & admin. services Delta‐TR Co. Ltd., Associated company, was liquidated as at 6 March 2012. 3 Scope of Business •Research & Development (R&D) •Tooling (Dies/Jigs/CF/1) •Pressed metal part & plastic part •EDP/2 & Painting •Auto Assembly •Seat •After‐sales service & Spare parts Note : 1. CF = Checking Fixture 2. EDP = Electro Deposit Primer 4 Business Units Tooling (Dies/Jigs/CF) OEM Parts Special Purpose Vehicles Contract Assembly 5 Agenda • Company Profile • Industry Overview • Financial Review • Future Outlook 6 Thai Auto Industry 2004‐2015F CAGR (2004‐2008) CAGR (2012‐2015F) Mil. Units 3.00 Production 10%, Domestic NA., Export 25% Production 8%, Domestic NA., Export 8% (From Eco car) Effect from Japan Tsunami in Q2 +6% +8% 2.50 2.50 Production and Thai Flood in Q4 2.35 +9% Domestic 2.18 +37% Export Hamburger 2.00 2.00 crisis +65% 1.65 ‐11% +8% +11% +7% 1.50 +8% 1.46 1.40 +6% 1.39 +7% +21% 1.29 +38% 1.27 1.18 1.13 1.19 ‐28% 1.10 +67% +13% 1.00 ‐1% 1.00 0.93 +28% 0.90 1.10 +11% ‐3% 0.80 1.04 0.78 ‐11% 1.00 +6% 0.70 0.68 0.69 +3% 0.63 0.55 0.90 +11% 0.80 0.74 +46% +22% 0.50 0.63 0.62 ‐18% 0.54 ‐7% ‐2% 0.54 0.44 +24% ‐31% 0.33 +33% 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012(F) 2013(F) 2014(F) 2015(F) Source : ‐ Year 2004‐2012(F) The Federation of Thai Industries, Note ‐ Year 2013‐2015 forecasted by TRU, Estimate Domestic 45%, Export 55% 7 Production Volume in Thailand 2011 Units Units 700,000 2,000,000 ‐11% YoY 1,645,304 600,000 1,457,795 474,628 1,500,000 500,000 448,074 400,000 ‐64% QoQ ‐61% YoY 1,000,000 300,000 172,560 200,000 500,000 100,000 0 0 Q4/10 Q3/11 Q4/11 2010 2011 Production Cumulative Production Remark : Q2/11 effect from Japan Tsunami, Q4/11 Thai Flood Source : The Federation of Thai Industries 8 Domestic Sales in Thailand 2011 Units Units Commercial car Commercial car 350,000 1,200,000 Passenger car Passenger car Pickup+PPV Pickup+PPV 300,000 1,000,000 ‐1% YoY 244,008 800,357 250,000 238,957 ‐48% QoQ 795,250 14,855 14,232 ‐49% YoY 800,000 50,003 52,611 +5% 200,000 109,631 112,230 600,000 124,281 362,561 376,791 +4% 150,000 QoQ YoY ‐17% 11,770 ‐21% 400,000 100,000 ‐43% 64,090 ‐42% 119,522 112,495 50,000 200,000 387,793 365,848 ‐6% ‐57% 48,421 ‐59% 0 0 Q4/10 Q3/11 Q4/11 2010 2011 Domestic Sales Cumulative Domestic Sales Remark : Q2/11 effect from Japan Tsunami, Q4/11 Thai Flood Source : ‐ The Federation of Thai Industries Note : ‐ PPV = Pickup truck base Passenger Vehicle ‐ Commercial car = Truck, Van, Bus 9 CBU Export 2011 Units Passenger car Units Passenger car 300,000 1,200,000 Pickup+PPV Pickup+PPV 231,002 238,727 1,000,000 895,855 ‐18% YoY 61,062 735,627 200,000 64,706 800,000 216,937 ‐60% QoQ 187,242 ‐14% ‐58% YoY 600,000 95,995 QoQ YoY 100,000 400,000 166,296 177,665 ‐65% 21,174 ‐67% 678,918 548,385 ‐19% 200,000 ‐59% 74,821 ‐55% 0 0 Q4/10 Q3/11 Q4/11 2010 2011 CBU Export Cumulative CBU Export Remark : Q2/11 effect from Japan Tsunami, Q4/11 Thai Flood. Source : ‐ The Federation of Thai Industries Note : ‐ CBU = Complete Built –up ‐ PPV = Pickup truck base Passenger Vehicle 10 CBU Export by Brand 2011 2010 2011 Total Export 895,855 Units Total Export 735,627 Units ‐18% YoY (Tsunami & Thai Flood effect) HONDA, GM, 17,907, GM, 20,634, MAZDA, 26,386, 4% MAZDA, 2% 2% 38,564, 5% HONDA, 56,487, 6% ISUZU, 57,985, 6% 46,474, 6% ISUZU, TOYOTA, 59,331, 7% TOYOTA, FORD, 92,079, 251,874, 34% 334,124, 38% 13% FORD, 86,386, 10% Nissan, Nissan, MITSUBISHI, MITSUBISHI, 126,654, 14% 117,864, 16% 153,936, 17% 144,119, 20% • Toyota still be major exporter but market shares reduce from 38% to 34%. • Nissan increase market shares from 14% to 16% from pickup and passenger car (Nissan March), bring growth performance to TRU for stamping part and painting work. •Ford increase market shares from 10% to 13% from pickup and passenger car, bring growth to DTC (Associated companies) Source : ‐ The Federation of Thai Industries Note : ‐ CBU = Complete Built ‐ up 11 Agenda • Company Profile • Industry Overview • Financial Review • Future Outlook 12 Financial Highlights MB. (+5%) 2010 2,500 2,263 2011 2,149 2,000 1,500 1,000 (‐7%) (+7%) 500 316 294 326 350 186 186 0 16.0% 14.3% 8.7% 8.2% 15.2% 15.5% Total Gross Profit Net Profit EBITDA Revenue Note : 1. Consolidate Financial Statement. 2. Year 2010 operation was restated according to first time adoption of TAS 12 "Income Taxes". 13 Revenues Breakdown Others, MB. Others 208, 9% Cars & 3,000 Sales of Cars & Service Center Service Contract Assembly Center, +5% YoY 174, 8% Tooling & OEM Part Tooling & 2,500 2,263 MB. OEM Part, 2,149 MB. YoY Contract 1,116, 49% 2011 208 +16% Assembly, 179 764, 34% 2,000 174 ‐34% 83% 262 1,500 764 +31% 585 Others, Cars & 179, 8% Service 1,000 Center, 262, 12% 1,123 1,116 ‐0.6% 500 Tooling & 2010 Contract OEM Part, Assembly, 1,123, 53% 585, 27% 0 80% 2010 2011 Note: 1. Tooling (Dies/Jigs/CF) & OEM Part include Nissan, GM, Isuzu, Aapico, Mitsu, Komatsu, Yanmar, Kawasaki, Triumph etc.. 2. Contract Assembly includes Nissan, Flat deck (Isuzu, TATA), Komatsu, Kobelco, Yanmar, Vacuum, 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, etc. 14 Customer sector Tooling, Part and Contract Assembly Revenues Others Others 5% Motorcycle Motorcycle 5% 4% 3% Industrial Industrial Machinery Machinery 14% 19% Automotive Automotive 77% 73% 2010 2011 Note: 1. Automotive ; Nissan, GM, Isuzu, Aapico, Mitsubishi, Toyota, Ford, TATA, etc.. 2. Industrial Machinery ; Komatsu, Kobelco, Yanmar. 3. Motorcycle ; Kawasaki, Triumph. 4. Others ; Emerson, Siamdent, etc. 15 Financial Review 2011 2010 YoY Statements of Comprehensive (Restated) Income MB % MB %% Sale and Service Revenues 2,054.78 90.8% 1,970.21 91.7% 4.3% Total Revenues 2,263.10 100.0% 2,149.03 100.0% 5.3% Gross Profit 293.99 14.3% 315.81 16.0% (6.9%) EBIT 266.80 11.8% 223.74 10.4% 19.2% Net Profit for the period 186.22 8.2% 186.37 8.7% (0.1%) EBITDA 350.18 15.5% 326.49 15.2% 7.3% Financial Ratio % %% ROA 8.9% 7.5% 1.4% ROE 7.1% 7.2% (0.1%) 31 Dec. 2011 31 Dec. 2010 YoY Statements of Financial Position MB % MB %% Total Assets 3,004.26 100.0% 2,987.51 100.0% 0.6% Total Liabilities 362.18 12.1% 384.49 12.9% (5.8%) Total Equity of the Company 2,642.08 87.9% 2,603.02 87.1% 1.5% Financial Ratio Time Time Time Current Ratio 3.52 3.34 0.18 Debt to Equity Ratio 0.14 0.15 (0.01) 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". 16 Agenda • Company Profile • Industry Overview • Financial Review • Future Outlook 17 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 completed in Q4/2011. –Start of production in Q1/2012. –Capacity increases which can generate income about 600 MB./year 18 TRU’s Strength • Comprehensive and R&D integrated scope of After‐sales Tooling work from R&D, service (Dies/Jigs/CF) tooling, stamping part, TRU Part EDP/1 & painting Special Group Purpose Making (Metal & through production of Vehicles Plastic) many kinds of vehicle Auto Assembly EDP & and after‐sale service. (Welding, Painting Trimming) Note : 1. EDP = Electro Deposit Primer 19 TRU’s Strength (Con’t) •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 “flat deck” cargo box. •A specialist of pick‐up based MUV4/2 & Transformer special purpose vehicles producer.