Opportunity dayQ1/2014 Results Presentation

28th May 2014

At Stock Exchange of Thailand

Presented by:

Sompong Phaoenchoke, MD.

Naiyana Prachotrattanakul, IR Mgr.

2

Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

3

Group Structure & Business

Thai Rung Union Car Plc.“TRU”

-R&D, Auto Assembly-Pressed Metal Parts, Plastic Parts, Car Seat

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

- Seats & Seat Components

Thai V.P. Auto Service Co. Ltd.“TVS”

- After-sales Services & Spare Parts

Thai Ultimate Car Co. Ltd.“TUC”

- Automotive, consulting & admin. services

Subsidiary Companies Associated Companies

94%

91%

94%

20%

30%

99.53%

Kyowa Thairung Co. Ltd. “KTR” (JV. with Kyowa Sangyo, Japan)

- Parts & Cabin of Industrial Machinery and etc.

49%

Trex Thairung Co. Ltd. “TTR” (JV. with Trex group, Japan)

- Truck body, dump truck, mixer truck and etc.

40%

4

Scope of Business

•Research & Development (R&D)

•Tooling (Dies/Jigs/CF/1)

•Pressed metal parts & plastic

parts

•EDP/2 & Painting

•Auto Assembly

•Seats

•After-sales service & Spare parts

Note : 1. CF = Checking Fixture

2. EDP = Electro Deposit Primer

5

TRU’s Strengths

• Comprehensive and

integrated scope of

work: from R&D,

tooling, parts stamping,

auto seats, EDP/1 &

painting, through to

production of various

kinds of vehicles and

after-sale service.

Note : 1. EDP = Electro Deposit Primer

After-salesservice

Special PurposeVehicles

Auto Assembly(Welding, Trimming) EDP/1 &

Painting

Auto Seats

Part Making(Metal & Plastic)

Tooling(Dies/Jigs/CF)

R&D

TRU Group

6

TRU’s Strengths (Cont.)

• Own EDP/1 & paint shop with top quality

to meet latest global standards for

export

• Flexible production line can quickly

adapt to customers’ needs

• Leading producer of “flat deck”

cargo boxes for pick-ups

• Specialist producer of pick-up

based special purpose vehicles

Note : 1. EDP = Electro Deposit Primer

2. MUV4 = Military Utility Vehicle 4WD

MUV4/2 & Transformer

7

Business Units

Special Purpose Vehicles & Service centre

Tooling & OEM Parts Contract Assembly & Painting

70% 21% 3%

Total Revenues

as of Mar. 2014

8

Awards

• Nov. 2013 Best Company Performance Awards 2013

(SET market capitalization of THB 2 bln. – THB 10 bln.)

• 2009-2013 Corporate Governance (CG) - “Very Good” level,

5 consecutive years

• 2008-2013 AGM check-list performance – “Excellent” level,

6 consecutive years.

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Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

Top 10 World Vehicle Production 2013

10

Million Units

Source : The International Organization of Motor Vehicle Manufacturers ( OCIA )

Passenger cars : motor vehicles with at least four wheels, used for the transport of passenger and comprising no more than eight seats in addition to the driver's seat

Commercial vehicles include light commercial vehicles, heavy trucks, coaches and buses.

22.12

2.38

1 2 3 4 5 6 7 8 9 10

11.05

4.525.72

9.63

3.053.743.88

2.53

Thailand move from no. 10 in last year to

no. 9 in this year.

Thai Auto Industry 2004-2015F

0.931.13 1.19

1.291.39

1.00

1.65

1.46

2.45 2.33

2.50

0.63 0.70 0.68

0.63 0.62

0.55 0.80

0.80

1.441.33

1.15 1.13

0.330.44

0.54

0.69 0.78

0.54

0.90

0.74

1.031.13

1.171.38

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014(F)2015(F)

Production

Domestic

Export

Mil. Units

Source : - Year 2004-2014 (F) The Federation of Thai Industries,

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

+65%

-28%

-11%

+68%

+8%+8%

+21% +6%

+0.1%-5%

+7%

Hamburger crisis

-

Japanese tsunami in Q2 and Thai floods in Q4

11

First car tax scheme

12

Production Volumes in Thailand Q1/2014

721,509

526,799 517,492

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Q1/13 Q4/13 Q1/14

Units

Source : The Federation of Thai Industries

-2% QoQ

-28% YoY

13

Domestic Sales in Thailand Q1/2014

176,959140,296

111,259

214,756

140,112

101,621

21,541

15,977

11,291

0

100,000

200,000

300,000

400,000

500,000

Q1/13 Q4/13 Q1/14

Commercial vehicle

Passenger cars

Pick-ups+PPV

Source : - The Federation of Thai Industries Note : - PPV = Pickup truck-based Passenger Vehicles

- Commercial vehicles = trucks, vans, buses

Units

-24% QoQ

-46% YoY

-29%

296,385

QoQ

-27%

-21%

413,256

224,171 YoY

-48%

-53%

-37%

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CBU Exports Q1/2014

188,034 181,802 191,909

99,884 99,00999,600

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q1/13 Q4/13 Q1/14

Passenger cars

Pick-ups+PPV

Units

Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up

- PPV = Pickup truck-based Passenger Vehicles

280,811287,918

+4% QoQ

+1% YoY

291,509

QoQ

+1%

+6%

YoY

-0.3%

+2%

119,015 114,711

64,643 77,413

26,711 28,402

23,080 24,405

16,911 21,01510,946

8,0019,161 9,1579,900 6,265

2,080

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4/2013 Q1/2014

42%

23%

10%

39%

27%

10%

3%

6%4%

8%

4%

3%3%

7%

8%

2%1%

15

CBU Exports Q1/2014

Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up

59,436 70,761

86,85882,103

58,826 57,528

42,80631,495

10,567

19,05722,440

13,82816,615

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4/2013 Q1/2014

21%

31%

21%

24%

20%

28%

3%

6%

1 %

8%

15%

7%

5%

Source : - The Federation of Thai Industries Note : C&S AM = Central & South America

OCEANIA = Australia, New Zealand and OtherM/E = Middle East

Q1/2014 = 291,509 units, +4% QoQ

Q4/2013 = 280,811 unitsBy Region

ASIA +19%

M/E -5%

OCEANIA -2%

C&S AM -26%

EU +18%

AFRICA +20%

Toyota -4%

Mitsubishi +20%

Nissan +6%

Ford +6%

Isuzu +24%Mazda -27%GM -Honda -37%

By BrandSuzuki +368%

North AM +100%

(New market)

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Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

Tooling & OEM Parts,

458, 65%

Contract

Assembly &

Painting, 157, 23%

Sales of

Cars & Service

Center, 29, 4%

Others, 57, 8%

Revenue Breakdown Q1/2014

Note: 1. Tooling (Dies/Jigs/CF) & OEM Parts include GM, Nissan, Isuzu, Mitsubishi, Komatsu, Yanmar, Kawasaki, Triumph etc..2. Contract Assembly & Painting includes Nissan, Isuzu truck, Flat deck, Komatsu, Kobelco, Yanmar, Vacuum ICL, etc..3. Other income includes interest, scrap sale, share of profit from investments in associated companies, etc.

458 445

157 131

2920

5744

0

200

400

600

800

1,000

Q4/2013 Q1/2014

Others Sales of Cars & Service Center

Contract Assembly & Painting Tooling & OEM Parts

Bt. millions

Total 640 MB.

Total 701 MB.

-9% YoY

-33%

-16%

-3%

-24%

Tooling &

OEM

Parts, 445, 69%

Contract

Assembly

& Painting,

131, 21%

Sales of Cars &

Service Center,

20, 3%

Others, 44, 7%

90%

Q1/2014

88%

Q4/2013

Q1/2014 Total revenues Bt.640 million, -9 % QoQ.

- Revenues from Tooling & OEM Parts decreased by 3% YoY, mainly from GM and Nissan.

- Revenues from Contract Assembly & Painting decreased by 16% YoY, mainly from Nissan & Isuzu truck painting and assembly project decreased.

17

18

Revenues Portfolio Q1/2014

Tooling & OEM Parts, 445, 69%

Contract

Assembly & Painting, 131,

21%

Sales of Cars & Service Center, 20,

3%

Others, 44,

7%

Q1/2014 Total revenues Bt.640 million, down by 9% QoQ as a result of automotive industry down.

90%

Breakdown of Tooling & OEM parts and Contract Assembly & Painting Bus by customer sector.

Automotive

83%

Industrial

Machinery8%

Motorcycle

7%Others

2%

(2013 = 89%)

(2013 =7%)

Gross Profit & Net Profit

% Gross Profit = Gross profit / Sales and Service Income

7386

11.3%

14.4%

0%

5%

10%

15%

20%

-10

10

30

50

70

90

110

130

150

Q4/2013 Q1/2014

+18% QoQ

Q1/2014 TRU’s gross profit was increased by 18% and net profit increased by 63%, due to increased in provision of Employee benefit obligation & Other impairment in Q4/2013.

Bt. millions% of Sales

3252

4.5%

8.2%

0%

5%

10%

0

10

20

30

40

50

60

70

80

Q4/2013 Q1/2014

+63% QoQ

Bt. millions% of Total Revenues

% Net Profit = Net profit attributable to equity holders of the company / Total Revenues 19

Gross Profit Net Profit

2020

EBITDA

% EBITDA = EBITDA / Total Revenues

73

100

11.3%

15.5%

0%

5%

10%

15%

20%

0

100

200

Q4/2013 Q1/2014

+37% YoY

EBITDA increased mainly due to gross profit increased in Q1/2014.

Cumulative

Bt. millions % of Total Revenues

11.20

7.00

0

5

10

15

Q4/2013 Q1/2014

Profitability Ratio

11.70

7.37

0

5

10

15

Q4/2013 Q1/2014

ROA and ROE decreased around 4% due to net profit decreased while investments in new plant and machinery had increased around 400 million baht.

Return on Assets (ROA)

Return on Equity (ROE)

-4.2% -4.33%

% ROA = EBIT / Average total assets

% ROE = Net profit attributable to equity holders of the company / Average major shareholders’ equity. 21

22

0.16 0.17

0

0.1

0.2

0.3

Dec 31, 2013 Mar 31, 2014

Times

2.68

2.63

0

1

2

3

4

5

Dec 31, 2013 Mar 31, 2014

Times

22

Financial RatiosAs of Mar 31, 2014 Current liabilities increased by 42 MB from December 31, 2013, mainly from increase in payable for next order.

Current Ratio Debt to Equity (D/E)

-0.05 +0.01

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Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

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Outlook and Direction - Tooling & OEM Parts

Tooling

• Boost level of die and jig design and production for turn-key projects through alliance with

foreign partner so as to be able to enter more overseas tenders.

• Build up a network of business alliances in Thailand to cater to the volume of new projects

coming on stream, increase production capacity and be able to take on turn-key projects

overseas.

• Invest in new machinery to increase capacity and boost level of technology, which will attract

increased parts production work for the Company.

OEM Parts

• Expand both metal and plastic parts making business to cater to increasing volumes of orders

from automotive and other customers moving their production bases to Thailand.

• Focus on high added value parts such as those requiring large (2,000 tons) press machines and/or

sub-assembly

• The new parts factory in Rayong province is under installation of new additional press machines

and automation system to increase the productivity.

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Outlook and Direction – Contract Assembly & Painting

• Top-level expert contract assembler for both semi and complete components, fully

integrated painting and contract assembly of complete vehicles for various brands for

export.

• Upgrade painting facility and equipment to increase production capacity, and

developing vehicle assembly system to meet latest global standards to support

customer demand

• Leading designer and fully integrated producer of pick-up “flat deck” cargo box for all

brands of pick-up, for export worldwide.

• Expand business in industrial machinery as one stops service from part component, to

complete cabin assembly. As we successful to signed JV with Kyowa Sangyo Co., Ltd.

(Japan) on Feb. 2014.

• Successful to set up JV with strategic partners (Kyoukuto, Trex and Mitsiam) in order

to expand product range especially in commercial vehicle trucks such as truck body,

dump truck and dump full trailer, concrete mixer truck, bulk trailer and etc.

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Outlook and Direction – Special Purpose Vehicles

• To develop special purpose vehicles based on pick-up trucks. Focus on niche marketsegment where automakers do not produce e.g. military vehicles for sale in the domesticmarket and with the aim of exporting to ASEAN and developing countries

• To expand the market for the TR transformer and have appointed ten new dealersthroughout Thailand in the North, Northeast and in the South.

• Use our experience in R&D, body design and engineering to take on design work forvarious types of vehicles, building prototypes, making dies and jigs for auto makers andother business partners.

• Seek business alliances to develop various kinds of vehicles jointly, for export in both CBUand SKD form, particularly to ASEAN in view of advantageous AFTA duty regime.

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Questions &

Answers