Smart People Business Trust Growth Society · 2018-12-14 · Smart People Business Trust Growth Society 3 SAT Paid up 425 million Baht ICP SBM BSK SFT Tsuchiyoshi Somboon Coated Sand

Smart People Business Trust Growth Society

1

Growing in Asia automotive, expertise in design and manufacturing with stakeholders and social responsibility


Automotive Industry Overview

2

Tractor Industry Overview

Sale Performance

Financial Highlights

Company Overview

Smart People Business Trust Growth Society 3

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. 29.92%

2. Thai NVDR 17.75%

3. Nortrust Nominees Ltd-Cl Ac. 5.23%

4. HSBC (SINGAPORE) NOMINEES PTE LTD 2.40%

5. AIA COMPANY LIMITED - EQ3-P 1.69% 6. Others 43.01%

As of August 24, 2018

99.99% 99.99% 99.99% 99.99%

Note: Somboon Holding & Kitaphanich Family owns approximately 44%

Mubea Somboon

Automotive

50.00%


Process: Forging/ Machining

Product: Axle Shaft,

Hub

Customer:

Process: Casting/ Machining

Product: Disc & Drum Brake,

Exhaust Manifold,

Fly Wheel, Bracket, Hub

Customer:

Process : Bending & Coiling Product: Spring Product Customer:

Smart People Business Trust Growth Society Smart People Business Trust Growth Society

Amata Industrial Estate 4 Plants

+ MSA 1Plant

Samutprakarn

Rayong

Eastern Seaboard Industrial Estate

1 Plant

Bangna Head Office

3 Plants

+MSA 2 Plants

5





8


Sale Performance


Company Overview


19

7

21

5

21

7

23

3

23

9

24

5

25

5 28

8

25

0

31

0

27

8

30

1

27

1

29

2

48

6

46

5

52

7

51

1

54

0

51

7

54

8

0

100

200

300

400

500

600

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Domestic Export Total

9

• QoQ: Car production increased +6% as export increased +8% and domestic increased +4%

• YoY : Car production increased +4% as domestic increased +18% but export declined -6%

• YTD(9M) : Car production increased +9% as export increased +2% and domestic increased +18%

62

90

93

87

85

84

73

10

3

96

96

97

99

13

5

19

3

18

9

18

3

18

1

18

3

0

50

100

150

200

250

Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18

Unit: Thousand cars


• QoQ (+6%) : Changes in Pick up, Passenger and Eco car are +6%, +6% and +6%

• YoY (+4%) : Changes in Pickup, Passenger and Eco car are +4%, +14% and -5%

• YTD(9M) (+9%) : Changes in Pickup, Passenger and Eco car are +9%, +10% and +6%

Unit: Thousand cars

276 264

302 288

310 295

313

113 116

114 111

125 123

130

87 76

100 102

95 89

95 9

9

11 10

9 10

10

0

100

200

300

400

500

600

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Pickup Car Passenger Car Eco Car Commercial

77

110 108 106 102 105

33

46 43 42 47 41 22

33 34 32 29 34

2

4 4 3 4 3

0

50

100

150

200

250



• QoQ (+4%) : Changes in Pickup , Passenger and Eco car are +0%, +11% and +5%

• YoY (+18%) : Changes in Pickup, Passenger and Eco car are +17%, +24% and +19%

• YTD(9M) (+18%) : Changes in Pickup, Passenger and Eco car are +19%, +9% and +33%

Unit: Thousand cars

96 110 104

111 122 123 123

61 58

56 56

60 62 69 31

38 45

56 47 51 54

9

9 11

10 9 10 10

0

50

100

150

200

250

300

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18


33

46 44 42 40 41

16

22 25 23 24 22 11

19 21

19 17 18

2

4 4

3 3 3

0

10

20

30

40

50

60

70

80

90

100



• QoQ (+8%) : Changes in Pickup, Passenger and Eco car are +10%, 0% and +7%

• YoY (-6%) : Changes in Pickup , Passenger and Eco car are -4%, +4% and -25%

• YTD(9M) (+2%) : Changes in Pickup , Passenger and Eco car are +3%, +11% and -14%

Unit: Thousand cars

181

154

197

177 188

172 190

52

58

58

55

64

60 61

56

38

55

46

48

39

41

0

50

100

150

200

250

300

350

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18


44

64 64 64 62 64

18

24 18 19 23 19 11

14

13 13 12 17

0

20

40

60

80

100

120



Unit: Thousand Cars

• QoQ -Car export increased +11% mainly increased from export to Asia and Central & South America

• YoY – Car export declined -5% mainly declined from export to North America and Australia

• YTD (9M) Car export increased +1%. Top 3 exported region are Australia, Asia and Europe

74 69 77 75 80 83 86 79 84 84 102

85 101 88 89

75 66

81 76 87 72

83 84 76 71

77 80

70 75

89

39 36

40 31

36 38

39 36 39 31

37 37 36

27 30

73

32

57 68

56

36 34

31 23 25

29 35 28

24

28

39

25

41 26

29

24 30

22 29 19

25 21 28

21

26

15

12

22

18 10

29

30

31 27

17

37

25 24

21

24

12

9

11

7 9

6

6

5 8

5

7

7 8

11

10

0

50

100

150

200

250

300

350

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Africa

North America

Central & South

America

Middle East

Europe

Asia

Australia


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

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

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 2.1

2.2 2.2

-

0.5

1.0

1.5

2.0

2.5

3.0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

F2018

F2019

F2020

Export

Domestic

Total Production

14

Asian Financial Crisis

Global Financial Crisis

Thailand Floods & Tsunami in Japan

CAGR =3% CAGR =9%

First car scheme

1.12

1.10

1.13

0.42

0.45

0.45

0.34

0.36

0.36

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

2015

2016

2017

Pickup&PPV Passenger Eco CV

Un

it : M

illio

n c

ars

Unit : Million cars



15


Sale Performance


Company Overview


Source : Customer

Unit: in Thousand

• QoQ: Increased +7%

• YoY : Increased +3%

• YTD (9M) : Increased +12%

15 13

15

11 11 9

12 11 11

15 14 12

15 17

15

2 2

3

4 3

3

5 5

3

2 6

2

3 3 5 16

15

18

16

14

12

17 17

15

17

20

15

18 19

20

0

5

10

15

20

25

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Tractor Combine Total


21 17

30

52 55 59 54

44 53

0 1

3

5 6

7 12

15

14

21 18

33

57

61

65 66

59

66

75 78

82

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016 2017 F2018 F2019 F2020

Tractor Combine Total

Drought

17

Unit: in Thousand CAGR =21% CAGR = 8%

Flood

Drought

Source : SBG’s Forecast



18


Sale Performance


Company Overview


72%

25%

10%

72%

24%

11%

0% 20% 40% 60% 80%

24%

22%

18%

17%

4%

15%

29%

23%

25%

18%

5%

0%

0% 10% 20% 30% 40%

Axle Shaft

Disc Brake &

Drum Brake

Casting/Machining

(Automotive)

Casting/Machining

(Kubota)

Hub/Big Hub

Others*

9M2017 9M2018

19

Market Share Sales Contribution

Note : * Sales in Y2017 included sales of spring business while sale in Y2018 does not include. This is because spring business was sold to JV company in Dec Y2017.


31%

28%

18%

6%

4%

3%

1%

2%

7%

35%

26%

19%

6%

5%

3%

2%

2%

2%

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

Mitsubishi

Toyota/Hino

Kubota

Isuzu

Honda

Nissan

GM

Ford & Mazda

Others*

9M2018 9M2017

Note : 1. 2017 Sale Data included sales from spring business, which was transferred at the end of 2017. 2. Other customers: Direct export and REM customer.


2017 3Q2017 2Q2018 3Q2018

Production line Capacity

pcs /month

Utilization (%)

Capacity

pcs /month

Utilization (%)

Capacity

pcs /month

Utilization (%)

Capacity pcs /month

Utilization (%)

Axle Shaft 365,500 57% 365,500 61% 365,500 61% 365,500 65%

Machining (Auto)

418,400 66% 418,400 67% 437,000 64% 437,000 69%

Machining (non-Auto)

229,000 66% 229,000 73% 229,000 80% 229,000 76%

General Forging 280,500 41% 280,500 40% 280,500 40% 280,500 43%

Total (SBG) 60% 65% 64% 67%

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 2. Total SBG’s Y2017 capacity and utilization did not include the spring business’s capacity.



22


Sale Performance


Company Overview


304 280 327 326 333 285 385 328 362 327 391

1,8

90

1,6

90

1,7

03

1,7

79

1,7

60

1,6

51

1,8

70

1,9

81

1,6

29

1,5

93

1,6

98

2,194

1,970 2,030

2,105 2,093

1,936

2,255 2,309

1,991 1,920

2,089

0

500

1,000

1,500

2,000

2,500

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Gross Profit COGs Sales Unit: Million Baht


327 391

1,5

93

1,6

98

17.0%

18.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1,000

1,500

2,000

2,500

2Q18 3Q18

Gross Profit COGs %GP QoQ Comparison Sale 8.8%

COGS 6.6%

GP (amount) 19.6%

%GP 1.7%

• Sale increased 169 mb or 8.8%

mainly due to the improvement

of the automotive and

agricultural machinery industry.

• %GP increased 1.7% mainly due

to increased in sales

Unit: Million Baht %GP


385 391

1,8

70

1,6

98

17.1%

18.7%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

500

1,000

1,500

2,000

3Q17 3Q18

Gross Profit COGs %GP YoY Comparison Sale 7.4%

COGS 9.2%

GP (amount) 1.6%

%GP 1.6%

• Sales declined by 7.4% as 2018

sale does not include sale from

spring business.

• %GP increased by 1.6% driven by

growth from automotive and

agricultural machinery industry.

Unit: Million Baht %GP


151

118

168 171 171

135

225

280

235

183

243

6.9%

6.0%

8.3% 8.1% 8.2%

7.0%

10.0%

12.1%

11.9%

9.5%

11.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

0

50

100

150

200

250

300

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Net Profit % Net Profit %NP Unit: Million Baht


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

1


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

1


394 352

409 394 397 362

462 519

435 371

439

17.9% 17.9%

20.1%

18.7% 19.0% 18.7%

20.5%

22.5% 21.8%

19.3% 21.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

100

200

300

400

500

600

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

EBITDA % EBITDA Unit: Million Baht %EBITDA


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 2018 from SET

Thailand Sustainability Investment 2018 (THIS)

from SET

Best Investor Relations Awards 2017-2018 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


Unit : Million Baht 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 QoQ YoY Y2016 Y2017 YoY

Sales 2,194 1,970 2,030 2,105 2,093 1,936 2,255 2,309 1,991 1,920 2,089 8.8% -7.4% 8,299 8,593 3.5%

Total Revenue 2,229 1,993 2,052 2,123 2,109 1,959 2,275 2,459 2,020 1,952 2,118 8.5% -6.9% 8,397 8,802 4.8%

Gross Margin 304 280 327 326 333 285 385 328 362 327 391 19.6% 1.6% 1,237 1,331 7.6%

SG&A 178 165 165 162 167 164 167 182 152 170 168 -1.5% 0.3% 670 680 1.5%

FOREX Gain (Loss) 6 -2 2 -2 2 2 2 2 2 1 2 125.7% -28.2% 3 8 122.2%

Interest Expense 24 22 20 17 17 15 14 12 10 6 4 -28.1% -70.6% 83 57 -30.8%

Net Profit 151 118 168 171 171 135 225 280 235 183 243 32.8% 8.0% 608 811 33.4%

Net Profit excluding fx 145 120 166 173 169 133 223 278 233 182 241 32.4% 8.4% 605 803 32.9%

EBITDA 394 352 409 394 397 362 462 519 435 371 439 18.5% -5.0% 1,549 1,741 12.4%

Cash Flow from Operating 250 413 364 415 298 421 521 385 165 410 509 24.1% -2.3% 1,442 1,625 12.7%

Depreciation 208 205 206 191 192 198 199 200 166 165 167 1.2% -16.1% 810 789 -2.6%

CAPEX 286 68 83 71 46 71 57 121 56 105 87 -17.1% 52.6% 508 295 -41.9%

Effective Tax Rate 7% 6% 8% 8% 9% 10% 10% 9% 9% 9% 9% 0.9% -0.5% 7% 9% 2.0%

Total Assets 9,733 9,348 9,275 9,421 9,439 9,217 9,328 9,572 9,128 8,787 8,953 1.9% -4.0% 9,421 9,572 1.6%

Interest Bearing Debt 2,055 1,874 1,762 1,760 1,574 1,386 1,199 1,207 747 422 390 -7.6% -67.5% 1,760 1,207 -31.4%

Total Liabilities 4,052 3,722 3,562 3,534 3,382 3,200 3,191 3,152 2,473 2,225 2,299 3.3% -28.0% 3,534 3,152 -10.8%

Equity 5,680 5,625 5,712 5,887 6,058 6,017 6,137 6,420 6,656 6,562 6,654 1.4% 8.4% 5,887 6,420 9.1%

Key Financial Ratios 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 QoQ YoY Y2016 Y2017 YoY

%GP 13.9% 14.2% 16.1% 15.5% 15.9% 14.7% 17.1% 14.2% 18.2% 17.0% 18.7% 1.7% 1.6% 14.9% 15.5% 0.6%

%SG&A 8.1% 8.4% 8.1% 7.7% 8.0% 8.5% 7.4% 7.9% 7.6% 8.9% 8.0% -0.8% 0.6% 8.1% 7.9% -0.2%

%NP 6.9% 6.0% 8.3% 8.1% 8.2% 7.0% 10.0% 12.1% 11.8% 9.5% 11.6% 2.1% 1.7% 7.2% 9.2% 2.0%

%NP excluding fx 6.6% 6.1% 8.2% 8.2% 8.1% 6.9% 9.9% 12.0% 11.7% 9.5% 11.6% 2.1% 1.7% 7.2% 9.1% 1.9%

%EBITDA 17.7% 17.7% 19.9% 18.6% 18.8% 18.5% 20.3% 21.1% 21.5% 19.0% 20.7% 1.7% 0.4% 18.4% 19.8% 1.3%

%ROA 6.1% 5.0% 7.1% 7.2% 7.1% 5.8% 9.7% 11.8% 10.1% 8.1% 10.6% 2.5% 1.0% 6.5% 8.5% 2.0%

EBITDA/CAPEX 1.38 5.18 4.92 5.55 8.63 5.10 8.11 4.29 7.76 3.53 5.05 1.52 -3.06 3.05 5.90 2.9

%ROE 10.9% 8.6% 12.1% 12.0% 11.7% 9.3% 15.2% 18.2% 14.8% 11.6% 15.2% 3.6% 0.0% 10.3% 12.6% 2.3%

%ROIC 8.8% 7.2% 9.8% 9.8% 9.8% 8.1% 12.9% 16.6% 15.3% 10.5% 13.7% 3.3% 0.8% 7.3% 9.1% 1.7%

Interest bearing Debt/Equity 0.36 0.33 0.31 0.30 0.26 0.23 0.20 0.19 0.11 0.06 0.06 -0.01 -0.14 0.30 0.19 -0.11

D/E 0.71 0.66 0.62 0.60 0.56 0.53 0.52 0.49 0.37 0.34 0.35 0.01 -0.17 0.60 0.49 -0.11

EPS (Baht) 0.36 0.28 0.40 0.40 0.40 0.32 0.53 0.66 0.55 0.43 0.57 32.8% 8.0% 1.43 1.91 33.4%

BVPS (Baht) 13.36 13.24 13.44 13.85 14.25 14.16 14.44 15.11 15.66 15.44 15.66 1.4% 8.4% 13.85 15.11 9.1%


Documents

Smart People Business Trust Growth Society · 2018-12-14 · Smart People Business Trust Growth Society 3 SAT Paid up 425 million Baht ICP SBM BSK SFT Tsuchiyoshi Somboon Coated Sand