HALCYON TECHNOLOGY PLC. 'HTECH'OPPORTUNITY DAY Q1/2021

Table of Contents

PART 1Halcyon Company Background

PART 2Halcyon Group Performance Q1/2021

PART 3Market & Outlook

Halcyon Company Background

Part 1

Halcyon is a cutting tool solution provider. We are a companion to

our customers to help them achieve highest productivity with

great efficiency.One-Stop

Service

CustomerRequirements Product

Design

Trouble-Shooting

Test & Application

Manufacture

New items

Our Business

2nd factory building at headquarter (Bangkok) and new factory in Hanoi; consolidated revenue reached 1 billion THB

Since 1993 - Present

Our History

Halcyon Metal Co., Ltd. first establishedas a manufacturing shop for jigs & fixtures and other metal fabricated products

1993 2002 2009 2017 2020

Halcyon Technology Co., Ltd. establishedfor new segment of PCD cutting tools at current location in Minburi, Bangkok, TH

IPO under symbol “HTECH”

Expanded across Southeast Asia in Philippines, Singapore, Malaysia, Vietnam, Indonesia

Acquired manufacturing company in USA to expand distribution and servicing network, as well as gain exposure to new technologies

20152010

1BN

• 3 manufacturing plants• Sales and service offices in

7 countries across the world• Customers in 16 countries

Our Global NetworkManufacturing

Distributing

Our Products

CARBIDEPCBNPCD MCDApplications: Cutting non-ferrous materialsMaterials: aluminum, brass, copper, CFRP, abrasive materials, wood, plastics, etc.Industry: HDD, Automotive, Aerospace, Medical, Jewelry, Oil & Gas, etc.

Applications: Super-finishing and critical applicationsMaterials: brass, copper, aluminum, acrylicIndustry: Lens, Jewelry, Watch, Automotive

Applications: cutting super-hard materialsMaterials: cast iron, hardened steels(>50 HRc), sintered powder, etc.Industry: Automotive, Heavy machinery, etc.

Applications: General purpose cuttingMaterials: Steel, aluminum, plastic, wood, etc.Industry: Used in most industries

Monocrystalline DiamondPolycrystalline Diamond Polycrystalline-Cubic Boron Nitride Tungsten Carbide

HDD40%

Automotive31%

Other24%

Trading5%

Our Customer Sector in 2020

• More than 2/3 of our demand comes from HDD and Automotive sectors

• 1/4 is from other sectors such as Aerospace, Heavy machinery, Oil & Gas, Lens, etc.

Our PerformanceQ1/2021

Part 2

Yearly PerformanceDecent outcome in 2020 despite COVID-19 with growing overseas sales

• -1.4% YoY in 2020• Q1/2021 pro-rata sees ~6%

growth from Y2020

• Continuously improving margins due to cost-reducing measures from first outbreak of COVID-19 in Thailand

• Larger portion of overseas sales from new subsidiary MDP (USA)

962 949

252 0

200

400

600

800

1,000

1,200

Y2019 Y2020 Q1/2021

THB

Milli

ons

Sales Revenue

297 315

97

30.8%33.2%

38.4%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

100

200

300

400

500

600

700

800

Y2019 Y2020 Q1/2021

THB

Milli

ons

Gross Profit & Margin

Gross Profit Gross Profit Margin

67% 61% 56%

33% 39% 44%

0%

20%

40%

60%

80%

100%

Y2019 Y2020 Q1/2021

Thailand vs. Overseas Sales

Thailand Overseas

▼1.4%

▲6.2%

Quarterly PerformanceContinuously improving margins from Q2/20 onwards

• Overall declined in Q2/20 from COVID-19, but had additional sales from MDP to support

• Sales picked up in Q3-4/20 due to higher demand from HDD sector

• Continuously improving gross margins • New subsidiary MDP (USA)

since Q2/20• Closing of Philippines

factory - reduction in labor and overhead costs

• NPM jumped to 17% in Q1/21 mainly due to MDP’s loan forgiveness of THB 8.2 million (without this effect, NPM ~13%)

230 203 239

275 252

0

50

100

150

200

250

300

Q1/20 Q2/20 Q3/20 Q4/20 Q1/21

THB

Milli

ons

Sales Revenue

69 58 84

104 97

29.9% 28.4%

35.1%37.9% 38.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

20

40

60

80

100

120

140

160

Q1/20 Q2/20 Q3/20 Q4/20 Q1/21

THB

Milli

ons

Gross Profit & Margin

Gross Profit Gross Profit Margin

22 6

22 25 45

9.3%

3.2%

9.4% 9.1%

17.0%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

0

10

20

30

40

50

60

70

80

90

100

Q1/20 Q2/20 Q3/20 Q4/20 Q1/21

THB

Milli

ons

Net Profit & Margin

Net Profit Net Profit Margin

Performance by Segment (Q1 YoY)Special Cutting Tools segment shows high growth from previous year, while other segments are still recovering

• Additional revenue/profit from MDP (USA) in Q1/21

• Without MDP, this segment still had +5% sales growth and +112% NP

• Revenue from 5 trading companies (customers mainly in automotive sector)

• Revenue from Halcyon Metal only• Major overseas customer in

aerospace sector – heavily affected by COVID-19

• Starting to pick up in March’21

11.5

37.17.3 6.3 3.3 1.5

0

20

40

Q1/20 Q1/21 Q1/20 Q1/21 Q1/20 Q1/21

THB

Mill

ion

s

108.0

152.7

101.7 91.920.7

7.8

0

40

80

120

160

Q1/20 Q1/21 Q1/20 Q1/21 Q1/20 Q1/21

THB

Mill

ion

s

Special Cutting Tools(HT, HP, HV, MDP)

Standard Cutting Tools(FDM, HENG, HS, HY, HI)

Metal Fabrication(HM)

Net P

rofit

Sale

s Rev

enue

▲41.3%

▼9.6%

▼62.5%

▲224%

▼14.2%▼54.1%

Market & Outlook

Part 3

HDD Market in ThailandThailand is the leading exporter of HDD

• HDD is an essential part of the global computer supply chain due to continuous foreign investments in the country• Requires technology and skilled workers• 90-95% HDD produced in Thailand are for exports• Almost 30% of Thailand’s electronics export value

Source: Krungsri Research

Data Storage DemandData storage demand is increasing exponentially due to cloud technology and IoT

• Demand for data storage continues to increase at 32.2% CAGR from 2021-2026

• High adoption rate of cloud technology and IoT⚬ Consumer Electronics: smartphone, laptops,

PCs, video games, VR/AR, AI⚬ Enterprise: nearline storage, and data centers

Source: Coughlin (Forbes, 29 May 2020)

World Capacity Shipments(2020-2025 Projection)

Exab

ytes

ship

ped

HDD Demand

• Number of pieces of HDD shipped will increase at a slower rate due to advances in technology for data storage density

• 9.3% CAGR for server application (2019-2026)

• “Consumer” HHD will decrease and switch to SSD for smaller units

• “Enterprise” HDD will increase from nearlinedata storage

• Cryptocurrency farming?

High-capacity HDD leads the demand growth

Source: Coughlin (Forbes, 29 May 2020)

Automotive & EV Market OverviewAutomotive sector is steadily recovering. EV disruption will not be significant in the next 5 years

Source: ING Economics Department

• New projects and improvement trials are being implemented for mass production

• New projects for EV parts are starting to emerge in Thailand

• EV brings more demand for materials with high strength-to-weight ratio; usually requires PCD cutting tools

• Automotive industry in Thailand will persist in the next 5 years as infrastructure and costs must be advantageous for the feasibility of EV

+7% Target sales growth in 2021

Increase capacity in Halcyon Vietnam

HV has potentials for high growth and opportunities but currently has limited

production capacity

Recovery after the pandemicIn all manufacturing industries in ASEAN and North AmericaOperating

Plans for 2021-2022

New production line in USA (MDP)Synergies allow for increased competitiveness in the North American market

Thank you!Q&A