AAPICO HITECH PLC [AH]

Presentation for 2Q 2019 financial statements28 August 2019

Disclaimer

2

The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO.Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements.None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advise.

ir@aapico.com | +66-(0)-2613-1504

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 2019

Agenda

3

1. Company Information2. Automotive Industry Updates3. Financial Performance4. Strategy & Direction

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 2019

AAPICO Hitech PLC

Company Overview

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 20195

AAPICO HITECH PUBLIC COMPANY LIMITED• A leading OEM automotive parts manufacturer in

Thailand with global operations.

• Core businesses: OEM Auto Parts, Jigs and Dies, Car Dealerships and IoT Connectivity & Mobility.

• Registered capital of Baht 322.65 million and paid-up capital of Baht 322.58 million, comprising of 322,583,844 ordinary shares at par value of Baht 1 each.

• Major shareholders are Yeap Swee Chuan and Family holding 39.32% of total capital.

Index : SET / THSIIndustry/Sector : AutoCurrent price : Baht 17.80*Market Cap : Baht 5,742 million*P/E (YTD) : 5.91*P/BV : 0.71*Dividend yield : 3.5%TRIS / CG Rating : BBB+ /

* Data as of August 14, 2019** Dividend yield is calculated based on current share price

AAPICO’s Vision

AAPICO HITECH PUBLIC COMPANY LIMITED 6

Where do we want to go?How do we want people to remember us?

MANUFACTURINGRESEARCH & DEVELOPMENTCAR RETAILING

TO BECOME ALEAN, GREEN, HAPPY, DIGITALWORLD-CLASS CORPORATION

• S : Safety• Q : Quality• C : Cost• D : Delivery• E : Engineering• M : Management

(Focus Digital)

• Teamwork• Look at problems as

opportunities• Love Family, Company

and Country• Loyalty and Honesty• Mutual Respect

• Profitability• Reasonable Dividend

• Corporate Social Responsibility

Happy Employees Happy Shareholders Happy PublicHappy Customers

AAPICO Key Fundamental Values

28 August 2019

Core Pillars of AAPICO Business

AAPICO HITECH PUBLIC COMPANY LIMITED 7

Auto Part Manufacture

Car Dealerships

IoT Connectivity & Mobility

28 August 2019

Business Segments

AAPICO HITECH PUBLIC COMPANY LIMITED 8

Manufacture of Auto Parts(Thailand & China)

Car Dealerships(Thailand & Malaysia)

IoT Connectivity(Thailand)

~69% of Sale ~30% of Sale <1% of Sale

Thailand

Malaysia

Stamping & Assemblies

Forging & Machining

Plastic

Jigs and Dies

28 August 2019

Countries of Operations

AAPICO HITECH PUBLIC COMPANY LIMITED 9

Thailand77%

Malaysia20%

China3%

1H 2019

Sales by Country

CHINAKunshanProduction: Connecting rods and Copper Forging

MALAYSIACar dealers: Honda car

Proton

THAILAND Ayutthaya, Chonburi, Rayong, Samutprakarn

Hitech Industrial EstateProduction: Stamping parts and Stamping Dies & Jigs

Amata City Industrial EstateChonburiProduction: Stamping & Chassis Frames and Forging & Machining Parts

Bangpli Industrial EstateProduction: Plastic Parts

Amata City Industrial EstateRayongProduction: Stamping PartsPlastic Washers & Fuel Tanks

Mitsubishi DealersNavanakorn & Ramindra

Ford DealersSamutprakarn & Ladprao

28 August 2019

Major OEM Customers

10

Isuzu34%

Vinfast16%AAT**

10%Nissan5%

AAM4%

FORD3%

TOYOTA2%

GKN2%

Others-Parts24%

1H 2019

Top OEM Customer Profile

**Auto Alliance (Thailand) Co., Ltd – a JV between Ford and Mazda.

Our Partners

AAPICO HITECH PUBLIC COMPANY LIMITED 11

Joint VentureStrategic Partner Technical Partner

28 August 2019

Automotive Industry Updates

605 622

435 425

1,057 1,066

6M18 6M19

Thailand Car Production Volume

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 201913

310 295 313 332 328 294

220 212 224 221 223202

540 517 548 564 561 504

- 100 200 300 400 500 600 700

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

Pick-Up/PPV Passenger Others Domestic Sales Export SalesTotal Car Production by Quarter Jan-June Car Production

‘000 Units +0.9% yoy

Source: The Federation of Thai Industry (Automotive Industry)

-2.4% yoy

Thailand Export Volume

AAPICO HITECH PUBLIC COMPANY LIMITED 14

Export Volume by Quarter Jan-June Export Volume

562 560

6M18 6M19

-0.4% yoy

295 267 297 282 300 260

-

100

200

300

400

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

Export Volume‘000 Units

Source: The Federation of Thai Industry (Automotive Industry)

-2.5% yoy

28 August 2019

237 258

190 207

61 59 489 524

6M18 6M19

Thailand Domestic Car Sales Volume

AAPICO HITECH PUBLIC COMPANY LIMITED 15

Domestic Car Sales by Quarter Jan-June Domestic Sales

118 119 123 151 133 126

90 100 101 109 103 104

29 33 34 35

28 31237 252 257

295 264 260

-

100

200

300

400

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

1-Ton Pick-Up/PPV Passenger cars Other vehicles

‘000 Units +7.1% yoy

Source: The Federation of Thai Industry (Automotive Industry)

+3.3% yoy

28 August 2019

No. 6M 2019 6M 2018 %1 Toyota 171,274 141,693 20.9%2 Isuzu 89,177 86,363 3.3%3 Honda 64,699 59,838 8.1%4 Mitsubishi 45,343 41,101 10.3%5 Nissan 34,577 33,593 2.9%6 Mazda 31,931 33,446 -4.5%7 Ford 26,984 32,677 -17.4%8 Hyundai 2,959 2,469 19.8%

Others 56,826 57,938 -1.9%Total 523,770 489,118 7.1%

Brand

Thailand Total Industry Volume Jan-Jun

16Source: Toyota

No. 6M 2019 6M 2018 %1 Perodua 121,782 117,098 4.0%2 Honda 44,260 51,354 -13.8%3 Proton 43,518 27,106 60.5%4 Toyota 31,251 31,709 -1.4%5 Nissan 10,383 11,926 -12.9%6 Mazda 6,491 6,696 -3.1%7 Mercedes 5,649 6,950 -18.7%8 BMW 5,035 5,340 -5.7%

Others 27,965 31,535 -11.3%Total 296,334 289,714 2.3%

Brand

Malaysia Total Industry Volume Jan-Jun

17Source: MAA

Financial Performance2Q 2019

Financial Highlights

AAPICO HITECH PUBLIC COMPANY LIMITED 19

Revenue increased due to higher sales from the automotive parts segment.

Gross profit increased due to improved efficiency and cost reduction and profit from tooling sales.

SG&A increased due to unrealized loss on F/X ,professional fee related to SGAH and higher staff expenses.

Profit sharing from associates and JV increased due to lower loss of SGAH.

Interest and Tax expenses increased due to higher debts and the completion of BOI tax incentive.

Net Profit decreased due to unrealized loss on F/X and non-recurring expenses.

2Q 2019 Key Financials

28 August 2019

Q2 Q22018 2019

Total Revenue 4,283 4,759 Sales and service income 4,004 4,613 Other Income 195 140 Interest Income 84 5

Gross Profit 260 356 Gross Profit (%) 6.5% 7.7%

SG&A 197 341 EBIT 342 160

Share of Profit 39 68 Interest & Tax 66- 89-

Net Profit 305 140 NP Margin (%) 7.1% 2.9%

D/E (x) 0.6 0.8

P&L

4,496 4,283 4,416 4,576 4,479

4,759

3,000

3,500

4,000

4,500

5,000

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

Sale Interest Income one-time gains Other Income

AH Group Revenue growth

AAPICO HITECH PUBLIC COMPANY LIMITED 20

THB million

8,745 9,237

6M 2018 6M 2019

Jan – Jun RevenueRevenue by quarter

Auto Parts66%

Car Dealerships30%

IOT Connectivity0% Other

4%6M

2019

+5.6% yoy

2Q 2019 Revenue grew 11.1% YOY, primarily driven by higher sales from the automotive parts segment in Thailand and tooling sales from overseas customers. On the other hand, Interest income has decreased by stopped recognizing interest income on the loan to SGAH for conservative reasons.

28 August 2019

AH Group Gross Profit improved

AAPICO HITECH PUBLIC COMPANY LIMITED 21

THB million

309 260 284

423 375 356

7.2% 6.5% 6.8%

9.9%8.9%

7.7%

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 -

50 100 150 200 250 300 350 400 450

568

731 6.9%8.3%

6M 2018 6M 2019

Jan – Jun RevenueGross Profit by quarter

2Q 2019 Gross Profit Margin grew to 7.7%, attributable to higher sale from automotive parts, improved efficiency and increases of gross profit from tooling sales. even when there was higher staff expenses to adhere to the changes in the Labor Protection Act.

28 August 2019

2Q 2019 sales grew by 26% YOY, driven by growth in automotive parts segments in Thailand and tooling sales from overseas customers.

EBIT margin decreased, even gross profit margin improved as there were unrealized loss on foreign currency exchange rate and several non-recurring expenses.

Auto Parts: Sales increased yoy

AAPICO HITECH PUBLIC COMPANY LIMITED 22

2,685 2,473 2,582 2,901 2,995 3,128

7.8% 9.6% 7.3% 10.9% 9.2% 5.1%

-

1,000

2,000

3,000

4,000

5,000

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

Thailand China EBIT%THB million

5,158 6,123

8.7%7.1%

6M 2018 6M 2019

Jan – Jun Sales & EBITSales and EBIT by quarter

Isuzu34%

VinFast16%AAT

10%Nissan5%

AAM; 4%Ford; 3%Toyota; 2%

Others26%

6M2019

+18.7% yoy

28 August 2019

Car Dealers: Sales declined yoy

AAPICO HITECH PUBLIC COMPANY LIMITED 23

1,578 1,528 1,5871,388 1,233

1,484

1.3% 1.5% 1.5% 1.5% 1.5% 0.3%

-

1,000

2,000

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

Thailand Malaysia EBIT%

3,1062,717

1.4% 0.8%

6M 2018 6M 2019Ford10%

Mitsubishi24%

Honda63%

Proton3%

6M2019

THB million

Jan – Jun Sales & EBITSales and EBIT by quarter-12.5%

yoy

2Q 2019 Sales declined by 3% year on year, due to lower carsales of Thailand dealership. EBIT margin dropped yoy from1.5% to 0.3% of sales.

28 August 2019

Core Earnings Decreased

AAPICO HITECH PUBLIC COMPANY LIMITED 24

321451

339 396 461 512 468560 517

301

-

200

400

600

800

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

EBIT Depreciation

956801

6M 2018 6M2 2019

3.9%7.5%

4.3% 5.5% 6.7% 8.0% 6.9%10.0% 8.2%

3.4%8.1%

11.6%7.9% 8.8% 10.3% 11.9% 10.6% 12.2% 11.5%

6.3%

0%5%

10%

15%

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

Unit: as % of revenue EBIT% EBITDA%

7.4% 5.7%

11.1%8.9%

6M 2018 6M 2019

EBIT% EBITDA%

THB million -16.2% yoy

28 August 2019

Net Profit impacted by F/X and Non-recurring items

25

397305 302 295

216140

(200) (100)

- 100 200 300 400 500 600

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

THB Million Profit to equity holders from operations Associate income702

357

6M 2018 6M 2019

Operations Associate

8.8%7.1% 6.8% 6.4%

4.8%2.9%

0%

5%

10%

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

Unit: as % of revenue Net Profit %

8.0%

3.9%

6M 2018 6M 2019

Net Profit %

-49.1% yoy

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 2019

Financial performance declined

26

19.5% 18.9% 19.8% 17.7%14.4% 12.4%

0%

10%

20%

30%

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

Return on Equity (ROE)ROE (In the Quarter) ROE (Seasonally adjusted)

10.3% 9.0% 9.2% 8.2% 6.8% 5.7%

0%

5%

10%

15%

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

Return on Asset (ROA)ROA (In the Quarter) ROA (Seasonally adjusted)

9.1 8.5 8.8 7.7 6.5 5.4

0.0

4.0

8.0

12.0

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

Interest Coverage Ratio (ICR)ICR (In the Quarter) ICR (Seasonally adjusted)

2.12.9 2.7 2.8 2.7 3.0

0.0

2.0

4.0

6.0

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

Debt to EBITDADebt/EBITDA (In the Quarter) Debt/EBITDA (Seasonally adjusted)

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 2019

Net gearing in line with target

27

Net interest-bearing debt to equity ratio as of June 2019 was 0.83x, compared to 0.56x as of June 2018, and was within the Company’s target of less than 1.00x.

Total liabilities net cash (Net debt) to equity ratio as end of June 2019 was 1.22x, which was still within the financial covenant target of less than 2.00x.

ST Loan3% CPLTD

18%

LT Loan42%

LT Bond37%

Interest-bearing Debt

Interest-bearing debts as of June 2019 was THB 6.8

Billion, mainly used for investment and new

project. 0.40

0.69 0.60 0.56 0.620.80 0.80 0.830.74

0.99 0.92 0.91 1.011.18 1.21 1.22

0.00.20.40.60.81.01.21.4

0.0

2.0

4.0

6.0

8.0

10.0

2016 2017 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Unit: in THB Billion Debts Equity D/E (L-C)/E

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 2019

Strategy & Direction

Thailand Automotive Outlook in 2019

AAPICO HITECH PUBLIC COMPANY LIMITED 29

0.46 0.58 0.

75 0.93 1.

13 1.19 1.29 1.39

1.00

1.65

1.46

2.45

2.46

1.88 1.91 1.94 1.99 2.

17

2.15

-

0.5

1.0

1.5

2.0

2.5

3.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ….

Production Forecast Domestic ExportUnit: Million

Global Financial

CrisisFlood

First car campaign

Source: The Federation of Thai Industry (Automotive Industry)

Thailand automotive industry expects to maintain production volume at 2.15 million cars, of which 1.05 million cars to be sold locally and 1.1 million cars for export.

-0.8%

28 August 2019

Stable sales volume with steady growth

AAPICO HITECH PUBLIC COMPANY LIMITED 30

0

100

200

300

400

500

Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25 Y26 Y27 Y28

Global Financial

CrisisFlood First car

campaign

Unit: in thousand

Previous model Current model New model

Sample of automotive parts sales orders for current and new models

28 August 2019

Continued orders going forward

AAPICO HITECH PUBLIC COMPANY LIMITED 31

Confirmed orders – 5 years for cars and 10-12 years for pick-up truck

ISUZU D-Max Mu-X

NissanNavaraTerra

TOYOTA Hilux RevoFortuner

FORDRangerRapterEverestMitsubishiTritonPajero Sport

Honda City Brio

HRV BRV

ToyotaHRV Camry

Altis Vios Yaris

MazdaMazda 2 CX3

BT-50 PRO

NissanTeana Almera

Syphy Note March

FORDFiestaFocus

Eco Sport

28 August 2019

Indonesia #16Thailand #11

France #10Spain #9Brazil #8

S.Korea #7Mexico #6

Germany #5India #4

Japan #3USA #2

China #1Unit : Millions2018 2017

Global Business Opportunities

AAPICO HITECH PUBLIC COMPANY LIMITED 32

China29%

Japan10%

India6%

Thailand2%

Rest of Asia8%

Europe22%

America22%

Africa1%

2018

Source: OICA

Top 10 Motor Vehicle Production Country in 2018

2018 Global Production Volumewas 96 million units

Major OEM Brands in Thailand

Thailand Volume 2 Million

28 August 2019

Business Strategy – To be Global

AAPICO HITECH PUBLIC COMPANY LIMITED 33

CHINAINDIA

EUROPE

USA JAPAN

THAILANDMALAYSIA

28 August 2019

Key Milestones

AAPICO HITECH PUBLIC COMPANY LIMITED 34

Taking steps toward globalization2017-2018

• Established strategic global partnership with Sakthi Group and invested US$100 million for 25.1% stake in Sakthi Global Auto Holding Limited (SGAH).

• Established JV with VINFAST to set up assembly plant in Haiphong, Vietnam for the first 2 models of VINFAST vehicles.

• Acquired additional 24.89% equity in SGAH.

2013-2016

2008-2012

2005-2007

2002-2004• Listed on SET.• Acquired a chassis

frame factory from Dana Corporation.

• Expanded to China.

• Established strategic global partnership with Sojitz Corp.

• Established JV with Mitsuike Corp.

• Acquired forging business from KPN.

• Established JV with Minth Corporation.

• Established JV with Takagi Seiko.

• Completed construction of 3S showroom in Malaysia.

• New factory in Kunshan (China) started operation.

• Established JV with; Lemtech

(Taiwan) Edscha

(Germany) Sumino (Japan) Sodecia

(Portugal)• Explored

opportunity in the start-up business.

• Established AAPICO Training Center.

• Issued bond with a BBB+ credit rating.

• Achieved 4-star CG rating.

28 August 2019

2019• Established

Proton Dealership in Malaysia (49%)

Global Manufacturing Footprints

AAPICO HITECH PUBLIC COMPANY LIMITED 35

Detroit, USA

Durango, México Coimbatore/Erode, India

Rushan, China

Porto, Portugal

Thailand Malaysia SingaporeVietnam

Kunshan, China

London, UK

AAPICO FacilitiesSakthi FacilitiesOther JV partners

Japan

Taiwan

Germany

New York, USA

28 August 2019

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 201936

SGAH Group

• SGAH Appropriation : AH has started appropriation process to enforce SGAH shares

50.01% on 13th August 2019.• Interest Income on Loan lend to SGAH :

AAPICO ceased recognizing interest income of USD 3.6 million (THB 117 million) since April 2019.

Significant matters in Q2 2019

AAPICO HITECH PUBLIC COMPANY LIMITED 28 August 201937

Significant matters in Q2 2019Hyundai Motor (Thailand)The Company agreed to sell 10,000 shares to Sojitz Asia Pte. Ltd., resulting in a decrease in the Company’s shareholding from 30% to 27.5%HMTH increase in its registered capital, from Baht 400 million to Baht 550 million, by issuing 150,000 new ordinary shares with a par value of Baht 1,000 each, in order to support the expansion and growth of the business. The Company does not intend to purchase these additional shares, resulted in a decrease in its shareholding from 27.5% to 20% of the associate’s new registered capital.

Key focus points

AAPICO HITECH PUBLIC COMPANY LIMITED 38

1. Revenue and Gross Profit increase while profit is pressured by unrealized loss on F/X and several non-recurring expenses.

2. Good financial position with good governance and credit rating.3. SGAH loss was reduced. Operational efficiency gradually improved.4. Paid dividend at THB 0.36 per share for 1H 20195. Substantial orders for new projects starting end 2019 / early 2020.6. Global expansion of AAPICO is on the roll.

28 August 2019