Opportunity day Q1/2015 Results Presentation

8th June 2015

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%

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 4

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-sales service

Special Purpose Vehicles

Auto Assembly (Welding, Trimming)

EDP/1 & Painting

Auto Seats

Part Making

(Metal & Plastic)

Tooling (Dies/Jigs/CF)

R&D

TRU Group

• 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

6

TRU’s Strengths (Cont.)

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

57% 32% 5%

Total Revenues

as of Q1/2015

8

Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

Thai Auto Industry 2004-2015F

0.931.13 1.19

1.291.39

1.00

1.65

1.46

2.45

1.88 2.00

0.63 0.70 0.68

0.63 0.62

0.55 0.80

0.80

1.441.33

0.88 0.85

0.330.44

0.54

0.69 0.78

0.54

0.90

0.74

1.031.13

1.13 1.15

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2015(F)

Production

Domestic

Export

Mil. Units

Source : - Year 2004-2015(F) The Federation of Thai Industries.

25 May 2015, FTI revised forecast Y.2015 from 2.15 mil. to 2 mil. units.

+65%

-28%

-11%

+68%

+8% +8%

+21% +6%

+0.1%

-23% +6%

Hamburger crisis

-

Japanese tsunami in Q2 and Thai floods in Q4

9

First car tax scheme

-3%

+2%

10

Production Volumes in Thailand Q1/2015

517,492

434,613 456,435 471,467524,540

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Units

Source : The Federation of Thai Industries

+11% QoQ

+1% YoY

2,457,057

1,880,007

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Units

-23% YoY

11

Domestic Sales in Thailand Q1/2015

111,259 101,164 97,162111,913

92,994

101,621103,999

98,121

107,661

92,978

11,291 11,57712,216

13,791

11,815

0

50,000

100,000

150,000

200,000

250,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

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 -15% QoQ

-12% YoY

-14%

207,499

QoQ

-14%

-17%

216,740

233,365

YoY

+5%

-9%

-16%

589,338421,498

663,746

411,402

77,588

48,875

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Commercial vehicle

Passenger cars

Pick-ups+PPV

1,330,672

881,775

-34% YoY

Units

-37%

-38%

-28%

197,787

224,171

12

CBU Exports Q1/2015

191,909163,762 177,922 180,313

208,401

99,600

104,776100,983 108,837

119,831

0

100,000

200,000

300,000

400,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Passenger cars

Pick-ups+PPV

Units

Source : - The Federation of Thai Industries Note : - CBU = Complete y Built Up - PPV = Pickup truck-based Passenger Vehicles

278,905

291,509

+14% QoQ

+13% YoY

289,150 QoQ

+10%

+16%

YoY

+20%

+9% 735,827 713,906

392,325 414,196

0

500,000

1,000,000

1,500,000

Passenger cars

Pick-ups+PPV

1,128,152 1,128,102

-3%

Units

+6%

268,538

328,232

92,335 107,838

75,402 89,601

26,330 20,166

19,722 25,780

23,596 31,157

17,519 17,285

18,400 18,873

10,147 8,980

5,699 8,504

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4/14 Q1/15

32%

26%

8%

33%

27%

9%

6%

8%

6%

7%

4%

6%

3%

6%

8%

3%2%

5%

13

CBU Exports Q1/2015

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

66,009 75,306

64,85372,996

70,084 74,219

27,36639,439

29,79938,560

13,584 12,214

17,455 15,498

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4/14 Q1/15

23%

24%

22%

23%

22%

23%

4%

5%

12%

12%

9%

6%

10%

5%

Source : - The Federation of Thai Industries Note : C&S AM = Central & South America OCEANIA = Australia, New Zealand and Other M/E = Middle East

Q1/2015 = 328,232 units (+14% QoQ) Q4/2014 = 289,150 units By Region

ASIA +14%

M/E +13%

OCEANIA +6%

C&S AM +44%

EU +29%

AFRICA -10%

Toyota +17%

Mitsubishi +19%

Nissan +31%

Isuzu +32%

Ford +31%

Mazda +3%

GM -12%

Honda -1%

By Brand Suzuki +49%

North AM -11%

Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

14

Tooling &

OEM Parts,

363, 55%Contract

Assembly &

Painting, 185, 28%

Sales of

Cars & Service

Center, 43, 6%

Others,

72, 11%

Revenue Breakdown Q1/2015

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

363 335

185189

4329

7239

0

100

200

300

400

500

600

700

800

Q4/14 Q1/15

Others Sales of Cars & Service Center

Contract Assembly & Painting Tooling & OEM Parts

Bt. millions

Total

592 MB.

Total 663 MB. -11% QoQ

-32%

+2%

-8%

-46%

Tooling &

OEM

Parts, 335, 56%Contract

Assembly

& Painting,

189, 32%

Sales of Cars &

Service Center,

29, 5%

Others,

39, 7%

88%

Q1/15

83%

Q4/14

Q1/2015 Total revenues Bt.592 million, -11 % QoQ.

- Revenues from Tooling & OEM Parts decreased by 8% QoQ, mainly from BU tooling.

- Sales of Cars decreased 32% and other incomes decreased by 46% QoQ, due to Q4/14 has special income .

15

16

Revenues Portfolio Q1/2015

Tooling & OEM Parts, 335, 56%

Contract Assembly &

Painting, 189,

32%

Sales of Cars

& Service Center, 29,

5%

Others, 39,

7%

Q1/2015 Total revenues Bt.592 million, decreased by 11% QoQ from BU Tooling, Car and others income.

88%

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

Automotive82%

Industrial Machinery

9%

Motorcycle

7%Others

2%

(2014 = 81%)

(2014 =11%)

(2014 =6%)

Gross Profit

% Gross Profit = Gross profit / Sales and Service Income

86

52

94

40

108

14.4%

10.3%

16.74%

6.73%

19.50%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

+171% QoQ +26% YoY

Bt. millions % of Sales

17

EBITDA

99

60

93 9081

15.5%

10.9%

15.64%13.50% 13.61%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

-10% QoQ -19% YoY

Bt. millions

% of Total Revenues

18

EBITDA = Earning Before Interest, Tax, Depreciation & Amortization. % EBITDA = EBITDA / Total Revenues

19

Net Profit

52

18

44 3832

8.2%

3.3%

7.3%

5.7%5.4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

10

20

30

40

50

60

70

80

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Bt. millions % of Total Revenues

-16% QoQ

-39% YoY

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

4.914.13

0

2

4

6

8

Q4/14 Q1/15

Profitability Ratio

4.95

4.23

0

2

4

6

8

Q4/14 Q1/15

ROA slightly decreased due to EBIT was decreased by 20% .

Return on Assets (ROA)

Return on Equity (ROE)

-0.78% -0.72%

% ROA = EBIT / Average total assets

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

20

ROE slightly decreased due to net profit decreased by 16%.

21

0.140.13

0

0.1

0.2

0.3

Dec 31, 2014 Mar 31, 2015

Times

2.98 2.87

0

1

2

3

4

5

Dec 31, 2014 Mar 31, 2015

Times

Financial Ratios As of Mar 31, 2015 Current assets decreased by 42 MB from December 31, 2014, mainly from decrease in Cash.

Current Ratio Debt to Equity (D/E)

-0.11 -0.01

22

Contents

• Company Profile

• Industry Overview

• Financial Review

• Outlook and Direction

23

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.

• Completed installation new machinery to increase capacity and boost level of technology, which

will attract increased parts production work for the Company.

• Seeking for the new customers such as Volvo truck, UD truck, Mahindra (India).

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 already installed new press machines and automation

system to increase the productivity.

24

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 established a new company “KYOWA

THAIRUNG Co., Ltd.” (KTR), JV with Kyowa Sangyo Co., Ltd. (Japan) on April 2014.

• Production at TRU

• Got order from Komatsu and will expand customer base

both domestic and export.

25

• May 2014, established a new company “TREX THAIRUNG Co., Ltd.” (TTR), JV with

Kyokuto, 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, refrigerator truck, bulk trailer and etc.

• Locate at Amata City IE, Rayong, total area 53 Rais.

• 4 September 2014 got approval from BOI.

• January 2015 increase the company register capital from 300 MB. to 550 MB.

• Construction of factory completed in May 2015 and start of trial production in

Q3/2015.

Outlook and Direction – Contract Assembly & Painting

26

Outlook and Direction – Special Purpose Vehicles

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

• To expand the market for the TR transformer and have appointed ten new dealers throughout Thailand in the North, Northeast and in the South. And expand own showrooms at Phetkasem and Vibhavadi.

• Lunching the new product “Transformer Max” 7-11 seats vehicles, in Bangkok International Motor Show in April 2015.

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

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

27

Questions &

Answers