Halcyon Technology PLC. HTECH Opportunity Day Q2 18 19/09/18
Halcyon Timeline 2 Year Milestones 1993 Halcyon Metal Co., Ltd. first established for the manufacturing of jigs & fixtures and other metal fabricated products 2002 Halcyon Technology Co., Ltd. established for new segment of PCD cutting tools at current location 2005 Launched PCD Hollow Tools that changed the HDD world 2009 IPO under symbol HTECH 2010 Started expanding overseas 2 nd factory in the Philippines 2017 New factory building at HT and new factory in Hanoi, Vietnam; Consolidated revenue reached 1 billion THB
3 HT New Factory Building 6 years BOI tax exemption Phase One fully operating since Dec 17 with ~50% free space in factory Q3 18: added 5 machines to free up bottleneck secondary process Q1-2 19: plan to add 6 more machines for carbide process
Halcyon Technology Vietnam Co., Ltd. (HV) since 2014 HTECH holds 85% PT HTECH Tools Indonesia (HI) since 2012 FDM holds 60% Halcyon in ASEAN Market 4 Halcyon Technology Public Co., Ltd. (HTECH) since 2002 Factory Distributor Halcyon Technology (Philippines) Inc. (HP) since 2010 HTECH holds 65% Halcyon Metal Co., Ltd. (HM) since 1993 HTECH holds 100% ATEK Precision Tools (ATEK) since 2011 HP holds 100% FDM Technology Co., Ltd. (FDM) since 2002 HTECH holds 60% (2012) Halcyon Technology (M) Sdn. Bhd. (HY) since 2013 HTECH holds 60% Halcyon Tools and Engineering Co., td. (Heng) since 2016 FDM holds 90% Halcyon Technology (Singapore) Pte. Ltd. (HS) since 2013 HTECH holds 70%
Halcyon Products
6 Cutting Tool Types Carbide Applications: General purpose cutting Materials: Steel, aluminum, plastic, wood, etc. Industry: Used in most industries PCBN (Polycrystalline-Cubic Boron Nitride) Applications: cutting super-hard materials Materials: cast iron, hardened mat. (>50 HRc), sintered mat. Industry: Automotive, machinery parts PCD (Polycrystalline Diamond) Applications: cutting non-ferrous materials Materials: aluminum, brass, copper, abrasive materials, wood, acrylic, etc. Industry: HDD, Aerospace, Automotive, medical, jewelry, etc. MCD (Monocrystalline Diamond) Applications: super-finishing and critical applications Materials: brass, copper, aluminum, acrylic Industry: Lens, Jewelry, Watch, Automotive
Tools for HDD 7 1 base plate uses up to 10-15 cutting tools PCD Monoblock PCD Form Tool PCD Drill PCD Hollow Mill PCD Hollow Pin PCD Endmill
Tools for Automotive 8
Halcyon Customers 9
Q2 18 Performance & Financial Highlights Consolidated HTECH Group Performance
2016 2017 1H2018 Total Revenue (THB million) Consolidated Performance (Q) 300 250 * Net Profit of HTECH shareholders only ** Conso. Total Revenue 270 279 11 200 150 100 50-40.4% 38.5% 15.6% 16.0% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Revenue = 826 mill. (+14%) GPM = 39.0% NPM* = 14.3% Revenue = 1,004 mill. (+22%) GPM = 40.7% NPM* = 14.7% Revenue = 548 mill. GPM = 39.5% NPM* = 15.8% HT HM FDM HENG HP HS HYK HI HV Gross Profit Net Profit*
12 Revenue Breakdown (related eliminated) HV 2% 2017 HV 2% 2018 (2Q) HI 5% HI 5% Breakdown by Country: HS 9% HY 9% HT 35% HS 7% HY 8% HT 37% HT HM FDM HENG Thailand HP Philippines HP 16% HP 14% HS HY Singapore Malaysia HM 6% FDM 14% FDM 16% HM 6% HI HV Indonesia Vietnam HENG 4% HENG 5%
2016 2017 1H2018 Sales (THB Million) HT Performance (Q) 13 140 120 119 125 100 80 60 40 20 0 38.7% 38.5% 29.8% 19.4% 20.3% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Sales = 353 mill. (+8%) GPM = 37.2% NPM = 22.7% Sales = 464 mill. (+32%) GPM = 39.49% NPM = 24.7% Sales = 244 mill. GPM = 38.5% NPM = 25.1% Sales Gross Profit Net Profit Dividend
Financial Highlights Consolidated as of 31/6/18
THB million Capital Structure 15 1,800 1,600 1,595 1,657 1,400 1,200 1,000 800 966 633 1,023 764 1,277 1,023 1,104 1,172 600 492 484 400 258 259 253 200-2014 2015 2016 2017 Q2'18 Assets Liabilities Shareholder's Equity
THB Million D/E Ratio (times) Debt to Equity Ratio 16 400 0.8 350 0.7 300 250 0.50 0.47 0.6 0.5 200 150 0.37 0.34 0.28 294 349 0.4 0.3 100 50 143 141 95 0.2 0.1 0 2014 2015 2016 2017 Q2'18 0 Interest-bearing Debt D/E Ratio
Times Current Ratio 17 3 2.87 2.5 2 1.88 2.12 1.73 2.25 1.5 1 0.5 0 2014 2015 2016 2017 Q2'18
THB million % Margin Profitability 18 450 400 350 35% 35% 39% 409 41% 39% 45% 40% 35% 300 322 30% 250 200 150 100 50 242 249 10% 9% 68 63 14% 15% 118 148 213 16% 87 25% 20% 15% 10% 5% 0 2014 2015 2016 2017 Q2'18 Gross Profit Net Profit (HTECH) Gross Margin Net Margin (HTECH) 0%
Target Performance 2018 Consolidated HTECH Group Performance
Actual Q1-2 Target Q3-4 Target Performance 2018 20 * Net Profit of HTECH shareholders only ** Conso. Total Revenue 1,200 1,000 800 600 701 724 826 1,004 +10% 400 200 39.0% 14.3% 40.7% 14.7% - 2014 2015 2016 2017 2018 Target HT HM FDM Heng HP HS HY HI HV Gross Profit Net Profit*
Thank You Q&A
Contact Us Tel: +66(0)2 906 3242-50 / Fax: +66(0)2 906 3251 e-mail: info@halcyon.co.th HALCYON HEAD OFFICE 41 Moo 14 Bangchan Industrial Est. Soi 6, Serithai 58, Minburi, Bangkok 10510 GPS Coordinates: 13.799211,100.707114 www.halcyon.co.th