AAPICO HITECH PLC [AH]

Opportunity Day

August 29, 2018

Today’s Agenda

2

1. Company Information

2. Automotive Industry Updates

3. Financial Performance

4. Strategy & Direction

Company Information

AAPICO HITECH PLC [AH]

4

AAPICO HITECH PUBLIC COMPANY LIMITED

• A leading OEM automotive parts manufacturer in

Thailand with a global footprint through strategic

partnerships in India, Portugal, USA, and China.

• Core businesses: OEM Auto Parts, Jigs and Dies,

Car Dealerships and Car Navigation.

• Main locations: Thailand, Malaysia and China.

• Registered 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 45.46% of total capital.

Industry/Sector : Auto

Current price : Baht 33.00*

52 weeks range : Baht 23.20 – 40.00

Market Cap : Baht 10,645 million

P/E (YTD) : 7.91*

P/BV : 1.40*

Dividend yield** : 3.64%

TRIS / CG Rating : BBB+ /

* Data as of August 24, 2018

** Dividend yield is calculated based on current share price

AAPICO’s Vision

5

Where do we want to go?

How do we want people to remember us?

MANUFACTURING

RESEARCH & DEVELOPMENT

CAR RETAILING

TO BECOME A

LEAN, GREEN, HAPPY, DIGITAL

WORLD-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 Public Happy Customers

AAPICO Key Fundamental Values

Core Pillars of AAPICO Business

6

Auto Part

Manufacture

Car

Dealerships

Technology IOT

Connectivity

& Mobility Business

Business Segments

7

Manufacture of Auto Parts (Thailand & China)

Car Dealerships

(Thailand & Malaysia) Technology

(Thailand)

~63% of total revenue ~37% of total revenue <1% of total

revenue

Thailand

Malaysia

Stamping &

Assemblies

Forging &

Machining

Plastic

Jigs and Dies

Countries of Operations

8

Thailand

72%

Malaysia

23%

China

5%

Jan-Jun

2018

Sales by Country

CHINA Kunshan

Production: Connecting rods

and Copper Forging

MALAYSIA Kajang & Petaling Jaya

Car dealers: Honda car

THAILAND Ayutthaya, Chonburi, Rayong, Samutprakarn

Hitech Industrial Estate Production: Stamping parts

and Stamping Dies & Jigs

Amata Nakorn Industrial Estate Production: Stamping & Chassis Frames

and Forging & Machining Parts

Bangpli Industrial Estate Production: Plastic Parts

Amata City Industrial Estate Production: Stamping Parts

Plastic Washers & Fuel Tanks

Mitsubishi Dealers Navanakorn & Ramindra

Ford Dealers Samutprakarn & Ladprao

Major OEM Customers

9

Isuzu

40%

[CATEGOR

Y NAME]*

[PERCENT

AGE]

Nissan

7% AAM

4%

FORD

3%

TOYOTA

3%

GKN

3%

Others-

Parts

26%

Jan-Jun

2018

Top OEM Customer Profile

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

Our Partners

10

Joint Venture Strategic Partner Technical Partner

Awards & Achievements

11

AAPICO Group has been widely recognized for its excellence in product quality, efficiency in its production

processes, and continuous improvements over the years. The Company has repeatedly received awards

from its customers and partners in recognition for excellent quality and delivery and contribution to growth.

Thailand Automotive Industry

Thailand Car Production Volume

13

276 264 302 288 310 295

200 192 214 213

220 212

486 465

527 511 540 517

-

100

200

300

400

500

600

700

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

Pick-Up/PPV Passenger Others Domestic Sales Export Sales

540 605

396 435

951 1,057

6M17 6M18

Total Car Production by Quarter Jan-Jun Car Production

Q2 car production volume grew by 11.1% yoy, driven by solid growth of

domestic demands and increased export volume.

‘000 Units

Source: The Federation of Thai Industry (Automotive Industry)

+11.1%

yoy

+11.1%

yoy

201 237

161

190

47

61 410

489

6M17 6M18

Thailand Domestic Car Sales Volume

14

Domestic Car Sales by Quarter Jan-Jun Domestic Sales

107 94 102 121 118 119

80 81

83

102 90 100

23 24

25

28 29

33 210 199

211

251 237

252

-

100

200

300

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

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

‘000 Units

Q2 domestic car sales grew by 26.3% yoy, driven mainly by the recovering economy,

increased spending, as well as introduction of new models.

Source: The Federation of Thai Industry (Automotive Industry)

+26.3%

yoy +19.3%

yoy

Thailand Export Volume

15

Export Volume by Quarter Jan-Jun Export Volume

536 562

6M17 6M18

284 252

314 290 295

267

-

100

200

300

400

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

Export Volume

Export volume increased year-on-year with increased demands in almost all markets.

Source: The Federation of Thai Industry (Automotive Industry)

‘000 Units

+5.8%

yoy +4.8%

yoy

Thailand Total Industry Volume

16

# Maker Q2 Jan-Jun

2017 2018 % 2017 2018 %

1 Toyota 53,574 77,599 +44.8% 112,203 141,693 +26.3%

2 Isuzu 35,402 42,047 +18.8% 77,109 86,363 +18.8%

3 Honda 31,237 31,403 +0.5% 61,428 59,838 -2.6%

4 Mitsubishi 15,601 20,405 +30.8% 32,537 41,101 +26.3%

5 Mazda 12,331 17,007 +37.9% 23,893 33,593 +40.6%

6 Nissan 13,815 16,481 +19.3% 28,170 33,446 +18.7%

7 Ford 12,575 15,442 +22.8% 25,513 32,677 +28.1%

14 Hyundai 1,168 1,224 +4.8% 2,150 2,469 +14.8%

Others 23,787 30,417 +27.9% 46,977 57,938 +23.3%

Total 199,490 252,025 +26.3% 409,980 489,118 +19.3%

Source: Toyota

Malaysia Total Industry Volume

17

# Maker Q2 Jan-Jun

2017 2018 % 2017 2018 %

1 Perodua 49,410 61,530 +24.5% 99,675 117,098 +17.5%

2 Honda 25,244 27,172 +7.6% 52,527 51,354 -2.2%

3 Toyota 17,220 19,026 +10.5% 33,723 31,709 -6.0%

4 Proton 20,017 14,263 -28.7% 39,393 27,106 -31.2%

5 Nissan 7,548 6,616 -12.3% 13,537 11,926 -11.9%

6 Mazda 2,689 3,527 +21.1% 4,771 6,696 +40.3%

7 Mercedes 3,046 3,555 +16.7% 6,034 6,950 +15.2%

14 BMW 2,678 2,820 +5.3% 4,816 5,340 +10.9%

Others 15,769 16,335 +3.6% 29,984 31,535 +5.2%

Total 143,621 154,574 +7.6% 284,460 289,714 +1.8%

Source: MAA

Financial Performance January – June 2018

Q2 Financial Highlights

19

Solid revenue growth, driven by increased sales

across businesses and countries and higher interest

income from loan to SGAH. Q2 2017 included

THB147 million gain on sale of investments.

Gross profit improved, mainly driven by higher

sales and improved efficiency.

SG&A expenses decreased as last year included

one-time expenses related to SGAH investment.

Core profit from operations increased yoy, partly

offset by lower share of profit from associates due

to one-off accounting adjustments in SGAH.

Q2 2018 Key Financials In Million Baht Q2

2017

Q2

2018

Revenues

Growth%

3,903

+6.0%

4,283

+9.7%

Gross Profit

GP Margin (%)

228

6.3%

260

6.5%

SG&A 212 197

Interest & Tax 36 67

Core profit Profit Margin (%)

247

6.3%

266

6.2%

Associate 68 39

Net Profit

NP Margin (%)

315

8.1%

305

7.1%

D/E (x) 0.81 0.56

7,849

8,745

6M17 6M18

Jan-Jun Revenue

AH Group: Revenue increased yoy

20

3,946 3,903

4,284 4,509 4,496

4,283

3,000

3,500

4,000

4,500

5,000

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Total Revenues by quarter

Sales Other income Interest income one-time gains

Q2 2018 Revenue grew 9.7% yoy. Adjusted for the ฿147 million

gain on sale of investment in Q2’17, revenue grew 14.0%,

primarily driven by sales growth in core businesses and higher

interest income from loan to SGAH.

THB million +11.4%

yoy

Auto

parts

63%

Car

dealers

37%

Technology

0%

6M18

+9.7%

yoy

Auto Parts : Sales & EBIT increased

21

2,286 2,473

8.3% 4.9% 3.5% 5.6% 7.8% 9.6%

-

1,000

2,000

3,000

4,000

5,000

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Sales and EBIT by quarter

Thailand China EBIT%

4,756 5,158

6.6% 8.7%

6M17 6M18

Jan-Jun Sales & EBIT

Q2 2018 Sales grew 8.2% yoy, driven by volume increases in both

Thailand and China. EBIT margin improved from 4.9% to 9.6%,

attributable to higher sales and improved efficiency.

THB million

+8.5%

yoy

TH

93%

CN

7%

6M18

Car Dealers : Sales & EBIT improved

22

1,340 1,528

1.1% 1.3% 1.2% 1.3% 1.3% 1.5%

-

1,000

2,000

3,000

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Sales and EBIT by quarter

Thailand Malaysia EBIT%

2,695 3,106

1.2% 1.4%

6M17 6M18

Jan-Jun Sales & EBIT

Q2 2018 Sales growth was driven mainly by higher car sales in

Thailand and Malaysia, driven by increased demand. EBIT margin

improved from 1.3% to 1.5% of sales.

THB million

+15.3%

yoy

TH

38% MY

62%

0%

6M18

AH Core EBITDA continually increased

23

321

451

339 396

461 512

-

200

400

600

800

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Unit: in Million Baht

EBIT Depreciation

772

973

6M17 6M18

EBIT Depreciation

3.9%

7.5%

4.3% 5.5%

6.7% 8.0% 8.1%

11.6%

7.9% 8.8% 10.3%

11.9%

0%

5%

10%

15%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Unit: as % of revenue EBIT% EBITDA%

5.7% 7.4%

9.8% 11.1%

6M17 6M18

EBIT% EBITDA%

26.0%

yoy

Net profit trend is on the upside

24

224

315

243

376 397

305

-

100

200

300

400

500

600

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Unit: in Million Baht

Profit to equity holders from operations Associate income

539

702

6M17 6M18

Operations Associate

5.7%

8.1%

5.7%

8.3% 8.8%

7.1%

0%

5%

10%

Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18

Unit: as % of revenue Net Profit %

6.9% 8.0%

6M17 6M18

Net Profit %

30.2%

yoy

Exclude one-off, core profit increased

25

In Million Baht

As reported One-off items Core operations

Q2

2017

Q2

2018

Q2

2017(1)

Q2

2018(2)

Q2

2017

Q2

2018

Revenues

Growth%

3,903

+6.0%

4,283

+9.7%

147

3,756

+2.0%

4,283

+14.0%

Gross Profit

GP Margin (%)

228

6.3%

260

6.5%

228

6.3%

260

6.5%

SG&A 212 197 35 177 197

Interest & Tax 36 67 36 67

Core profit Profit Margin (%)

247

6.3%

266

6.2%

112

135

3.6%

266

6.2%

Associate 68 39 (59) 68 98

Net Profit

NP Margin (%)

315

8.1%

305

7.1%

112

(59)

203

5.4%

364

8.5%

+14%

+97%

+79%

%change

1 2017 included THB 147 m. gain on sale of investments in QI & AQI and THB 35 m. SGAH acquisition related expenses. 2 2018 included THB 59 m. one-time adjustments related to goodwill and accounting adjustment related to SGAH.

Profitability continually improved

26

10.1%

13.0% 14.8%

17.8% 18.9%

0%

10%

20%

30%

Q1/17 Q2/17 Q3/17 Q4/17 Q2/18

Return on Equity (ROE)

ROE (In the Quarter) ROE (Seasonally adjusted)

5.5% 6.3% 7.3%

9.1% 9.0%

0%

5%

10%

15%

Q1/17 Q2/17 Q3/17 Q4/17 Q2/18

Return on Asset (ROA)

ROA (In the Quarter) ROA (Seasonally adjusted)

6.4

8.1 8.4 9.2 8.5

0.0

4.0

8.0

12.0

Q1/17 Q2/17 Q3/17 Q4/17 Q2/18

Interest Coverage Ratio (ICR)

ICR (In the Quarter) ICR (Seasonally adjusted)

2.2

3.2 2.9 2.5

2.9

0.0

2.0

4.0

6.0

Q1/17 Q2/17 Q3/17 Q4/17 Q2/18

Debt to EBITDA

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

Net gearing in line with target

27

Net interest-bearing debt to equity ratio as of Jun 2018 decreased

to 0.56x, which was within the Company’s target of less than 1.00x.

Total liabilities net cash (Net debt) to equity ratio as end of Jun

2018 was 0.91x, which was in line with the financial covenant

target of less than 2.00x. ST Loan

12%

CPLTD

28% LT Loan

53%

LT Bond

7%

Interest-bearing Debt

Interest-bearing debts as

of Jun 2018 decreased to

THB 4.3 billion, of which

mainly related to SGAH

investment.

1.07

0.85 0.67

0.55 0.40

0.69 0.60 0.56

1.74

1.26

1.07

0.87 0.74

0.99 0.92 0.91

0.0

0.5

1.0

1.5

2.0

0.0

2.0

4.0

6.0

8.0

10.0

2012 2013 2014 2015 2016 2017 Q1/18 Q2/18

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

Proposed Dividend at ฿0.70 for 1H’18

28

0.49

0.30 0.30

0.66

1.20

[VALUE]**

2.3% 2.0%

2.2%

5.3% 5.0%

4.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

2013 2014 2015 2016 2017 Jan-Jun 2018

History of Dividend Payment

1H Dividend 2H Dividend Dividend Yield*

Dividend Policy

The Company has set

a policy to pay

dividend of not less

than 10% of net profit

after taxes. However,

the decision for

dividend payment is

subjected to future

investment plans and

other necessities as

the Company deems

appropriate. ** Interim dividend payment for the period between 1 Jan 2018 to 30 Jun 2018.

* Dividend Yield is calculated based on average share price in the period.

Strategy & Direction

Thailand Automotive Outlook in 2018

30

0.4

6

0.5

8

0.7

5

0.9

3

1.1

3

1.1

9

1.2

9

1.3

9

1.0

0

1.6

5

1.4

6

2.4

5

2.4

6

1.8

8

1.9

1

1.9

4

1.9

9

-

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 ….

Production Forecast Domestic Export Unit: Million

Global

Financial

Crisis

Flood

First car

campaign

Source: The Federation of Thai Industry (Automotive Industry)

Thailand production volume in 2018 is forecasted to reach 2.08 million units,

driven by increases of both domestic demand and export markets.

3-5%

Stable sales volume with steady growth

31

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

Crisis

Flood First car

campaign

Unit: in thousand

Previous model Current model New model

Sample of automotive parts sales orders for current and new models

1.2

2.0

2.2

2.7

2.8

4.1

4.1

4.8

5.6

9.7

11.2

29.0

Indonesia #17

Thailand #12

France #10

Brazil #9

Spain #8

Mexico #7

S.Korea #6

India #5

Germany #4

Japan #3

USA #2

China #1

Unit : Millions 2017 2016

Global Business Opportunities

32

China

30%

Japan

10% India

5%

Thailand

2%

Rest of Asia

8%

Europe

23%

America

21%

Africa

1%

2017

Source: OICA

Top 10 Motor Vehicle Production Country in 2017

2017 Global Production Volume

was 97 million units

Major OEM Brands in Thailand

Thailand Volume

2 Million

Business Strategy – To be Global

33

CHINA INDIA

EUROPE

USA JAPAN

THAILAND

MALAYSIA

Key Milestones

34

Taking steps toward globalization 2017-2018

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.

• Established strategic

global partnership

with Sakthi Group

and invested US$100

million for 25.1%

stake in Sakthi

Global Auto Holding

Limited (SGAH).

• Signed JV MOU with

VINFAST to set up

assembly plant in

Haiphong, Vietnam

for the first 2

models of VINFAST

vehicles.

Current Global Footprints

35

Detroit, USA

Durango, México Coimbatore/Erode, India

Rushan,

China

Porto,

Portugal

Thailand

Malaysia

Singapore

Kunshan,

China

London, UK

AAPICO Facilities

Sakthi Facilities

Other JV partners

Japan

Taiwan

Germany

New York,

USA

Partnership with VINFAST

36

AAPICO and VINFAST signed an MOU to set up an auto parts manufacturing plant

in VINFAST Supplier Park, Hai Phong, Vietnam to set up a press shop and assembly

facilities to produce Body in White (BIW) parts for VINFAST vehicles.

From Left to Right: Mrs. Teo Lee Ngo (AAPICO Executive Director), Mr. Yeap Swee Chuan (AAPICO President & CEO),

Mr. Trinh Van Ngan (VINFAST Vice President, Supplier Park), Mr. Vu Minh Thang (VINFAST Projects Director)

SUV

Expected Investment

37

The first 2 VINFAST vehicles to be

launched in Q3 2019.

Sedan

JV

MOU

51% 49%

VINFAST will build a plant

at VINFAST Supplier Park in

Haiphong

AAPICO will be responsible

for overall management

and will produce jigs and

dies for VINFAST vehicles.

Key focus points

38

1. Revenue and profit is on the upside.

2. Successful to win substantial orders starting end 2019 / early 2020.

3. Major LOI received from Vietnam. Next investment destination.

4. Achieved the most prestigious awards from Isuzu Thailand for The

Best in Quality-Cost-Delivery Award.

5. Paid good dividend at THB 1.20 per share for the year 2017 (the

highest dividend in history) and propose to increase to THB 0.70 for

1H 2018.

6. Solid improvement on core operations both revenue and profit.

7. Global expansion of AAPICO is on the roll.

8. New substantial order and expansion into Vietnam.

Disclaimer

39

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