1

Strive for sustainable growth in automotive industry through advanced technology and partnership

Opportunity Day

2Q2020 August 27, 2020

Automotive Industry Overview

2

Tractor Industry Overview

Sale Performance

Financial Highlights

Company Overview

3

Company Overview

4

SAT

Paid up 425 million Baht

ICP SBM BSK SFT

Tsuchiyoshi Somboon

Coated Sand Yamada Somboon

Nisshinbo Somboon Automotive

Somboon Somic Manufacturing

21.25%

20.00%

2.90%

1.80%

1. Somboon Holding Co.,Ltd. 30.00%

2. Thai NVDR 11.95%

3. Nortrust Nominees Ltd-Cl Ac. 6.21%

4. BBHISL NOMINEES LIMITED 4.62%

5. NORTRUST NOMINEES LIMITED- 1.97%

THE NORTHERN TRUST COMPANY RE 6. Others 45.25%

As of June 10, 2020

99.99% 99.99% 99.99% 99.99%

Note: Somboon Holding & Kitaphanich Family owns approximately 44%

Mubea Somboon

Automotive (MSA)

50.00%

Nippon Kikai Engineering

50.00%

Somboon Siasun Tech

(SST)

51.00%

5

Process: Forging/ Machining

Product: Axle Shaft,

Hub

Process: Casting/ Machining

Product: Disc & Drum Brake,

Exhaust Manifold,

Fly Wheel, Bracket, Hub

Process : Bending & Coiling Product: Spring Product

Customers :

Amata Industrial Estate

4 Plants

+ MSA 1Plant

Samutprakarn

Rayong

Eastern Seaboard

Industrial Estate

1 Plant

Bangna

Head Office

3 Plants

+MSA 1 Plant

6

7

8

Automotive Industry Overview

258

251

249

219

200

60

304

254

257

222 254

92

561

504

507

441

454

152

0

100

200

300

400

500

600

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Domestic Export Total

9

• QoQ : Car production declined -66% as domestic declined -70% and export declined -64%

• YoY : Car production declined -70% as domestic declined -76% and export declined -64%

• 6M20 : Car production declined -43% as domestic declined -49% and export declined -38%

71

67

61

11 20 2

9

85

83

85

14

36 43

156

151

147

25

56

72

0

20

40

60

80

100

120

140

160

180

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Unit: Thousand cars

328

294 296

259 273

96

119

110 117

98 84

35

104

91 83

74 89

19

10

9 12

9 9

3

0

100

200

300

400

500

600

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Pickup Car Passenger Car Eco Car Commercial

10

95 89 89

15

35

45

28 27 28

5

13

17

31 32

27

4

7

9

3 3

3

1

1

1

0

20

40

60

80

100

120

140

160

180

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Unit: Thousand cars

• QoQ (-66%) : Changes in Pick up, Passenger and Eco car are -65%, -58% and -78%

• YoY (-70%) : Changes in Pickup, Passenger and Eco car are -67%, -69% and -79%

• 6M20 (-43%) : Changes in Pickup, Passenger and Eco car are -41%, -48% and -45%

11

132 126 122

107 106

28

64 61 70

60

38

21

51 54 46

42

47

8

10 9 12

9

8

3

0

50

100

150

200

250

300

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Pickup Car Passenger Car Eco Car Commercial

38 36

33

5 8

15

13 11 14

4

9

8

18

17

12

1

2

5

3

3

3

1

1

1

0

10

20

30

40

50

60

70

80

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Unit: Thousand cars

• QoQ (-70%) : Changes in Pickup, Passenger and Eco car are -73%, -45% and -83%

• YoY (-76%) : Changes in Pickup, Passenger and Eco car are -78%, -66% and -85%

• 6M20 (-49%) : Changes in Pickup, Passenger and Eco car are -48%, -53% and -47%

12

196

168 173

152 167

68

55

49 47

38

46

14

53

37 37

32

41

11

0

50

100

150

200

250

300

350

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Pickup Car Passenger Car Eco Car Commercial

57 53

56

10

28 30

15 15

15

1

4

9

13 15

14

3

4

4

0

10

20

30

40

50

60

70

80

90

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

Unit: Thousand cars

• QoQ (-64%) : Changes in Pickup, Passenger and Eco car are -59%, -70% and -73%

• YoY (-64%) : Changes in Pickup, Passenger and Eco car are -60%, -72% and -70%

• 6M20(-38%) : Changes in Pickup, Passenger and Eco car are -36%, -43% and -41%

13

• QoQ and YoY : Car export declined -60% mainly from export to Asia, Australia and Europe.

• 6M20 : Car export declined -37% the car export market declined in all regions except the Middle East.

Thailand top 3 car export market are Australia, Asia and Middle East

84 84 102

85 101 88 89 79 89 83 72

58 64 30

76 71

77 80

70 75

89 87

84 74 86

75 64

28

23 25

29 35 28

24 28

28 33

26 39

35 40

23

39 31

37 37 36

27

30 30

37

34 25

21 27

7

29 19

25 21 28

21

26 19

24

13 18

17 24

6

27

17

37

25 24

21

24 31

27

22 15

19 21

4

8

5

7

7 8

11

10 8

6

8 7

9 10

2

0

50

100

150

200

250

300

350

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Africa

North America

Central & South

America

Europe

Middle East

Asia

Australia

Unit: Thousand cars

0.5

0.3

0.1

0.2

0.3

0.3

0.4

0.5

0.6

0.7

0.7

0.6

0.6

0.5

0.8

0.8

1.4

1.3

0.8

0.7

0.8

0.9

1.0

2

0.9

8

0.0

0.0

0.1

0.1

0.2

0.2

0.2

0.2

0.3

0.4

0.5

0.7

0.8

0.5

0.9

0.7

1.0

1.1

1.1

1.2

1.2

1.1

1.1

4

1.0

4

0.6

0.4

0.2

0.3 0.4 0.5

0.6

0.8

0.9

1.1 1.2

1.3 1.4

1.0

1.6

1.5

2.5 2.5

1.9 1.9 1.9 2.0

2.2

2.0

-

0.5

1.0

1.5

2.0

2.5

3.0

Export

Domestic

Total Production

14

Asian Financial Crisis

Global Financial Crisis

Thailand Floods & Tsunami in Japan

CAGR =1% CAGR =9%

First car scheme

1.13

1.25

1.18

0.45

0.49

0.44

0.36

0.39

0.35

0.0 0.5 1.0 1.5 2.0

2017

2018

2019

Pickup&PPV Passenger Eco CV

Un

it : M

illio

n c

ars

Unit : Million cars

15

Tractor Industry Overview

16

Source : Customer

Unit: in Thousand

• QoQ : Declined -36%

• YoY : Declined -44%

• 6M20 : Declined -32%

11

15 14 12

15 17

15 16

21

18 17 17 15

9

3

2 6

2

3 3 5 3

1

2 4 2

2

2

15

17

20

15

18 19

20

19

23

20

21

19

18

11

0

5

10

15

20

25

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Tractor Combine Total

21 17

30

52 55 59 54

44 53

63

74

0 1

3

5 6

7 12

15

14

14

10

21 18

33

57

61

65 66

59

66

77

83

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 F2020

Tractor Combine Total

Drought

17

Unit: in Thousand

Flood

Drought

Source : SBG’s Forecast

18

Sale Performance

31%

22%

22%

20%

5%

30%

23%

22%

20%

4%

0% 10% 20% 30% 40%

Axle Shaft

Disc Brake &

Drum Brake

Casting/Machining

(Automotive)

Casting/Machining

(Kubota)

Hub/Big Hub

2019 2020

72%

24%

14%

76%

26%

13%

0% 20% 40% 60% 80%

19

Market Share Sales Contribution

20

31%

25%

20%

6%

4%

2%

2%

2%

5%

3%

34%

24%

21%

8%

4%

2%

1%

1%

4%

1%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Mitsubishi

Toyota/Hino

Kubota

Isuzu

Honda

GM

Nissan

Ford & Mazda

Direct Export

Others*

2020 2019

Note : *Other : Other customer and REM customer.

2019 2Q2019 1Q2020

2Q2020

Production line Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Axle Shaft 365,500 65% 365,500 67% 365,500 61% 365,500 25%

Machining (Auto) 437,000 64% 437,000 57% 437,000 63% 437,000 18%

Machining (non-Auto)

229,000 77% 229,000 76% 229,000 55% 229,000 41%

General Forging 280,500 37% 280,500 37% 280,500 34% 280,500 22%

Total (SBG) 65% 64% 58% 26%

21

Note : 1. Capacity is calculated based on 500 hours per month (20 hours x 25 days) except Axle Shaft & General Forging: 550 hours per month

22

Financial Highlights

23

362 327 391 430 433 330 391 340 335

-41

1,629 1,593 1,698

1,764 1,769

1,592 1,604

1,547 1,496

795

1,991 1,920

2,089 2,194 2,202

1,922 1,995

1,887 1,831

754

-500

0

500

1,000

1,500

2,000

2,500

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Gross Profit COGs SalesUnit: Million Baht

24

335

-41

1,496

795

18.3%

-5.4% -6%

-1%

4%

9%

14%

19%

-500

0

500

1,000

1,500

2,000

1Q20 2Q20

Gross Profit COGs %GP

QoQ Comparison Sale 58.8%

COGS 46.9%

GP (amount) 112.2%

%GP 23.7%

• Sale declined by 58.8% mainly

from the decline in the

automotive industry and

agricultural machinery industry.

• GP amount declined by 112.2%

mainly from decrease in sale

revenue.

Unit: Million Baht %GP

25

330

-41

1,592

795

17.2%

-5.4% -6%

-1%

4%

9%

14%

19%

-500

0

500

1,000

1,500

2,000

2Q19 2Q20

Gross Profit COGs %GP

YoY Comparison Sale 60.8%

COGS 50.1%

GP (amount) 112.4%

%GP 22.6%

• Sale declined by 60.8% mainly

from the decline in the

automotive industry and the

agricultural industry.

• GP amount declined by 112.4%

mainly from decrease in sale

revenue.

Unit: Million Baht %GP

26

235

183

243 254 287

170

227 211 193

-143

11.9%

9.5%

11.6% 11.6% 13.0%

8.8%

11.4% 11.2%

10.5%

-19.0%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

-200

-150

-100

-50

0

50

100

150

200

250

300

350

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

Net Profit % Net Profit %NP Unit: Million Baht

27

Note: 1 Others include share of profit, gain/loss on fx , other incomes, and other expenses

1

Unit : Million Baht

28

1

Unit : Million Baht

Note: 1 Others include share of profit, gain/loss on fx , other incomes, and other expenses

29

435

371

439 448 478

354

413 407 375

3

21.8%

19.3%

21.0% 20.5%

21.7%

18.4%

20.7% 21.6%

20.5%

0.3%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

EBITDA % EBITDAUnit: Million Baht

1.4

8

1.4

8

1.9

7

2.1

2

1.0

5

2.2

7

1.1

9

2.4

0

2.0

0

1.5

3

1.5

1

1.4

3

1.9

1 2

.15

2.1

1

0.4

5

0.5

0 0.7

0

0.3

0

0.0

0

0.9

0

0.4

5

0.9

7

0.7

5

0.6

0

0.6

0

0.6

0

0.9

0

1.3

5

1.3

5

30% 34% 36%

14%

0%

40% 38%

40% 38% 39% 40%

42%

47%

63% 64%

0%

10%

20%

30%

40%

50%

60%

70%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

EPS DPS %Dividend Payout

30

Unit: Baht per Share Unit: % Payout

Note: Dividend policy at a minimum rate of 30% of net profit after tax and legal reserve

• Interim dividends for the first half year operation of 2020 (1 January - 30 June 2020) at the rate of Baht

0.12 per share.

• Dividend payment will be paid on September 3 ,2020.

31

Awards from customer

TCC HRD Activity 2017 from Toyota

The Winner TPS Award 2017 from Toyota

MCC QCC Activity 2017 from Mitsubishi

Quality Award and Delivery 2017 from

Kubota

SKC Delivery Skill Contest 2017 from Kubota

RUNNER UP SKC Delivery Kaizen Award 2017

from Kubota

Gold Award QCD 2017 from Kubota

Quality Award and Delivery 2017 from Isuzu

Awards from various agencies

Sustainability Awards of Honor 2019 from SET

Thailand Sustainability Investment 2019 (THIS)

from SET

SET Award of Honor 2019-Excellence in Investor

Relations from SET

Best IR Awards 2015-2016 from IAA

Gold Level Thailand HR Innovation Award

2017, the highest award from the National

Institute for Productivity in collaboration with

the PMAT & NIDA

CSR-DIW Continuous Award 2017 from DIW

32

Unit : Million Baht 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 QoQ YoY Y2018 Y2019 YoY

Sales 1,991 1,920 2,089 2,194 2,202 1,922 1,995 1,887 1,831 754 -58.8% -60.8% 8,194 8,006 -2.3%

Total Revenue 2,020 1,952 2,118 2,218 2,235 1,955 2,027 1,982 1,864 781 -58.1% -60.1% 8,308 8,199 -1.3%

Gross Margin 362 327 391 430 433 330 391 340 335 41- -112.2% -112.4% 1,510 1,494 -1.1%

SG&A 151 170 168 194 184 181 183 188 161 120 -25.5% -33.7% 683 736 7.8%

FOREX Gain (Loss) 2 1 2 -1 0 -3 1 2 -1 3 -651.6% -233.1% 4 0 -94.7%

Interest Expense 10 6 4 3 3 3 2 3 3 2 -41.2% -38.1% 23 11 -53.3%

Net Profit 235 183 243 255 287 170 227 211 193 143- -174.1% -184.1% 916 895 -2.3%

Net Profit excluding fx 233 182 241 256 287 173 226 209 194 146- -175.6% -184.8% 912 895 -1.9%

EBITDA 435 371 439 449 478 354 413 407 375 3 -99.3% -99.3% 1,694 1,652 -2.4%

Cash Flow from Operating 165 410 509 369 359 350 372 216 439 86 -80.4% -75.4% 1,453 1,297 -10.7%

Depreciation 166 165 167 165 161 161 160 161 156 155 -0.6% -3.7% 663 643 -3.0%

CAPEX 56 105 87 109 52 96 84 119 68 119 75.0% 24.0% 357 351 -1.7%

Effective Tax Rate 9% 9% 9% 9% 9% 11% 10% 12% 11% 7% -4.3% -3.4% 9% 10% 0.7%

Total Assets 9,128 8,787 8,953 9,065 9,401 8,984 9,430 9,311 9,480 8,188 -13.6% -8.9% 9,065 9,311 2.7%

Interest Bearing Debt 747 422 390 309 281 252 372 317 194 180 -7.2% -28.6% 309 317 2.6%

Total Liabilities 2,473 2,225 2,299 2,178 2,228 2,065 2,391 2,108 2,086 1,367 -34.5% -33.8% 2,178 2,108 -3.2%

Equity 6,656 6,562 6,654 6,887 7,174 6,919 7,038 7,203 7,394 6,821 -7.7% -1.4% 6,887 7,203 4.6%

Key Financial Ratios 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 QoQ YoY Y2018 Y2019 YoY

%GP 18.2% 17.0% 18.7% 19.6% 19.7% 17.2% 19.6% 18.0% 18.3% -5.4% -23.7% -22.6% 18.4% 18.7% 0.2%

%SG&A 7.6% 8.9% 8.0% 8.8% 8.4% 9.4% 9.2% 10.0% 8.8% 15.9% 7.1% 6.5% 8.3% 9.2% 0.9%

%NP 11.8% 9.5% 11.6% 11.6% 13.0% 8.8% 11.4% 11.2% 10.5% -19.0% -29.5% -27.8% 11.0% 10.9% -0.1%

%NP excluding fx 11.7% 9.5% 11.6% 11.6% 13.0% 9.0% 11.3% 11.1% 10.6% -19.4% -30.0% -28.4% 11.0% 10.9% -0.1%

%EBITDA 21.8% 19.3% 21.0% 20.5% 21.7% 18.4% 20.7% 21.6% 20.5% 0.3% -20.1% -18.1% 20.4% 20.2% -0.2%

%ROA 10.1% 8.1% 10.6% 10.9% 12.4% 7.7% 9.9% 9.4% 8.1% -6.7% -14.8% -14.3% 10.1% 9.6% -0.5%

EBITDA/CAPEX 7.76 3.53 5.05 4.12 9.20 3.68 4.92 3.42 5.51 0.02 -5.49 -3.66 4.74 4.71 0.0

%ROE 14.8% 11.6% 15.2% 15.3% 16.6% 10.1% 13.3% 12.2% 10.5% -8.3% -18.8% -18.4% 13.3% 12.4% -0.9%

%ROIC 15.3% 10.5% 13.7% 13.9% 15.6% 9.8% 12.7% 11.8% 10.3% -8.0% -18.3% -17.7% 10.4% 9.8% -0.6%

Interest bearing Debt/Equity 0.11 0.06 0.06 0.04 0.04 0.04 0.05 0.04 0.03 0.03 0.00 -0.01 0.04 0.04 0.00

D/E 0.37 0.34 0.35 0.32 0.31 0.30 0.34 0.29 0.28 0.20 -0.08 -0.10 0.32 0.29 -0.02

EPS (Baht) 0.55 0.43 0.57 0.60 0.68 0.40 0.53 0.50 0.45 0.34- -174.1% -184.1% 2.15 2.12 -1.6%

BVPS (Baht) 15.66 15.44 15.66 16.20 16.88 16.28 16.56 16.95 17.40 16.05 -7.7% -1.4% 16.20 16.95 4.6%

33

Somboon Advance Technology Public Company Limited – Investor Relations Department

Tel. +66 2 080 8197, Fax. +66 2 080 8198 , Email : ir@somboon.co.th, Website : http://www.satpcl.co.th

34

Thank You