Export Cut Leather Mazda Ford Ihlq1


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Export Cut Leather Mazda Ford Ihlq1

  1. 2. Product
  2. 3. Interhides Public Company Limited
  3. 4. Presentation Outline Part I: Company Overview Part II: Business Overview Part III: Industry Overview Part IV: Financial Highlights Part V: Business Opportunity Part VI: Offering Summary
  4. 5. Part I: Company Overview
  5. 6. Historical Development 1998 2000 2001 2002 2004 <ul><li>Established under the named “ Inter-Hide & Leather ” with Baht 5 mn registered capital </li></ul><ul><li>Production line was the tannery leather for furniture </li></ul><ul><li>Develop and expand the production line to the car seat leather for automotive industry </li></ul><ul><li>Launch the production of cut part leather for TOYOTA , SUBARU and MITSUBISHI </li></ul><ul><li>ISO 9002:1994/ QS-9000:1998 accredited by TUV </li></ul><ul><li>Export the cut part leather for Ford and Mazda to Philippines </li></ul><ul><li>Debt restructuring plan approved by Thai Asset Management (TAMC) </li></ul><ul><li>Cease the production line for furniture </li></ul><ul><li>Launch the production of cut part leather for NISSAN </li></ul><ul><li>Launch the production of cut part leather for FORD , MAZDA , HONDA and ISUZU </li></ul><ul><li>Export the cut part leather for TOYOTA to Indonesia </li></ul>1992 <ul><li>Sumitomo Corp. (TH) invested in IHL for 1.85% </li></ul><ul><li>Thai Automotive VCF invested in IHL for 9.00% </li></ul><ul><li>ISO/TS 16949:2002 accredited by TUV </li></ul>2005 2003 <ul><li>Sumitomo Corp. (TH ) increased its investment in IHL to 6.67% </li></ul><ul><li>Sumitomo Corp. (JP) invested in IHL for 20% </li></ul><ul><li>Increased registered capital to Bt. 300 mn </li></ul><ul><li>JAIC (JP) invested in IHL for 1.33% </li></ul><ul><li>Transformed to a Public Company Limited on Aug 24 </li></ul><ul><li>Listed in SET on Dec 22 </li></ul>
  6. 7. Shareholding Structure IPO 25.00% 43.51% 25.73% 5.75% Core Shareholders Strategic Partners Others <ul><li>Mr.Ongart Thumrongsakunvong 18.31% </li></ul><ul><li>Ms.Chutima Busayapoka 25.20% </li></ul><ul><li>Sumitomo Corp (JP) 15.00% </li></ul><ul><li>Sumitomo Corp. (TH) 5.00% </li></ul><ul><li>Thai Automotive VCF 4.73% </li></ul><ul><li>JAIC 1.00% </li></ul><ul><li>Mr.Tanat Busayapoka 2.95% </li></ul><ul><li>TPP International Co., Ltd. 1.97% </li></ul><ul><li>Thuannavarat Family 0.63% </li></ul><ul><li>Mr.Somchart Limpanuphap 0.14% </li></ul><ul><li>Mr.Wattana Busayapoka 0.06% </li></ul>
  7. 8. Competitive Strengths <ul><li>Reliable second tier supplier with strong track record </li></ul><ul><li>Maintain long term relationship with suppliers and car makers in product development </li></ul><ul><li>Qualified under vendor list of car makers </li></ul><ul><li>Possess modern technology in machinery and equipment </li></ul><ul><li>Emphasized on research development with modern test laboratory room </li></ul><ul><li>Received ISO 9002:1994/QS-9000:1998 from TUV institution </li></ul><ul><li>Highly experience management team to ensure the accuracy of future sales order and cost controlling </li></ul><ul><li>More than 30 years experience of management team in tannery business </li></ul><ul><li>Ensure the accuracy of future sales order </li></ul><ul><li>Expert in cost control in each production planning process </li></ul><ul><li>Mirror with rapid growth automotive industry </li></ul><ul><li>Benefit from aggressive expansion of car markers such as Toyota, Honda and Nissan to build more automotive manufacturing in Thailand </li></ul><ul><li>Change in consumer behavior toward leather car seat compared to textile seat cover </li></ul><ul><li>FTA is expected to help increase the car production in the future with no tax burden </li></ul><ul><li>Strong Strategic Partner </li></ul><ul><li>Received strong support from strategic partners Sumitomo and Thai Automotive and JAIC </li></ul><ul><li>Absorb know how from alliance with such 3 strategic partners </li></ul>
  8. 9. Mission and Business Goals “ To be the fore-runner of leather manufacturing technology and production management in Asia.” Mission <ul><li>The Company aims the continuous growing revenues and profits with the focus on the automotive industry by training the human resource, developing the most practical production process and services as well as efficiently controlling the production cost. </li></ul><ul><li>The Company becomes the technical leader in leather and interior related product manufacturing technology. </li></ul><ul><li>The Company is capable of responding to and meeting with client requirements in terms of product development, process development, and prompt and effective response to quality or delivery problems (if any). </li></ul><ul><li>Corporate management and staffs are well coordinated and in line with the Corporate Vision, actions are properly taken to ensure achievement of the Corporate Mission. </li></ul><ul><li>Employee training shall be conducted consistently and systematically to ensure and support Corporate growth targets, as well as achievements of individual career path. </li></ul>Business Goals
  9. 10. Part II: Business Overview
  10. 11. Products and Services Products Leather To be the raw material for car seat maker Leather Cut Parts For car seat, steering wheel, gear knob and others Services Sewing For car seat, steering wheel, gear knob and others Car Seat Replacement Made-to-Order car seat Products and Services
  11. 12. Marketing Strategies and Clients Clients Marketing Strategies <ul><li>Product: High quality products that meets ISO/TS 16949: standard from TUV. </li></ul><ul><li>Service: Best services with on-time delivery is the key factor of the Company’s success. </li></ul><ul><li>Pricing: Competitive pricing by efficient cost control management in production process and skilled labors. </li></ul><ul><li>Marketing: Focus on target group with the right marketing plan. </li></ul><ul><li>Customer Relation: Build up the good relation with clients by the best product and services to meet their most satisfactory. </li></ul><ul><li>Human Resource and Technology Development: Human resource development by on the job training with the international standard technology learning to form the Company’s own production guideline. </li></ul><ul><li>The Company’s direct clients are 1 st tier OEM both in Thailand and in foreign countries such as Indonesia and Philippines. The Company aims to expand the client base in foreign countries in the near future. </li></ul><ul><li>The Company also treats the car makers, such as TOYOTA, HONDA, NISSAN, FORD, MITSUBISHI, ISUZU, MAZDA, SUBARU and others, as the Company’s indirect clients since the Company has close relationship with the car makers in developing the products and preparing the production plan together. </li></ul>12.27 122.36 16.69 108.28 5.30 24.95 9.06 43.25 Foreign Sales 100.00 997.43 100.00 648.77 100.00 471.08 100.00 477.20 Total 87.73 875.08 83.31 540.49 94.70 446.13 90.94 433.95 Domestic Sales % Million Baht % Million Baht % Million Baht % Million Baht 2005 2004 2003 2002
  12. 13. Supply Chain Made to Order 2nd Tier OEM 1st Tier OEM Car Maker Automotive Interiors Corp Thai Automotives Seating & Interior Toyoda Gosei (Thailand) Summit Autoseat Industry <ul><li>Approved from Car Maker </li></ul><ul><li>Under vendor list </li></ul><ul><li>Pass quality test </li></ul><ul><li>Bidding process </li></ul><ul><li>Well-trained staffs </li></ul>
  13. 14. Past Record and Confirmed Orders in Pipeline Export Sales Domestic Sales Remarks: Projects on hand shows only the car seat products and services Innova New Frontier Tida Frontier Cefiro Exciter Almera Neo NISSAN New Camry Camry New Altis New Camry Yaris Ventury Wish Fortuner Vios Camry Altis TOYOTA 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
  14. 15. Past Record and Confirmed Orders in Pipeline (Cont’d) Export Sales Domestic Sales Remarks: Projects on hand shows only the car seat products and services FORD Tiera Ranger Everest Escape Tiera Focus ISUZU Adventure MITSUBISHI Cedia Mazda 3 Tribute Fighter MAZDA Civic HONDA 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 2017
  15. 16. Part III: Industry Overview
  16. 17. Industry Overview: Increasing Trend of Car Sales “ Production growth of more than 18.42% expected in 2005 and more than 63.78% cumulative growth expected in the year 2010” Source: Thailand Automotive Institute 18.42% 2005F 28.37% 2003 27.45% 2002 23.56% 2004 63.78% 11.40% 26.0% % growth (Production) 2010F 2001 2000 Year
  17. 18. Most Popular Car Brand and Model in Thailand Market Share of Car Sales in 2004 Market Share of Car Sales in 2005 All types of cars Passenger cars All types of cars Passenger cars  Model currently producing by the Company for Car seat      Top 12 most popular cars of the year Source: The Company Source: Toyota motor Thailand Source: Toyota motor Thailand            “ Interhides supplies car seat leathers to most of the popular car brands in Thailand”           Toyota (Vios) Toyota (Vios) Isuzu (Dmax) Isuzu (Dmax) 2005 2004 1H/2005 2004 Most popular passenger cars Most popular cars (all types) Honda (Jazz) Honda (Civic) Mitsubishi (Strada) Toyota (Vios) Toyota (Altis) Toyota (Altis) Toyota (Vios) Toyota (Hilux Vigo) Toyota (Fortuner) Honda (Jazz) Toyota (Hilux Vigo) Toyota (Hilux) Toyota (Camry) Toyota (Camry) Chevlolet(Colorado) Mitsubishi (Strada) Honda (City) Honda (City) Toyota (Altis) Honda (Jazz) Honda (Civic) Toyota (Wish) Nissan (Frontier) Nissan (Frontier) Mazda 3 Toyota (Avanza) Mazda (Fighter) Ford (Ranger) Toyota (Wish) Chevlolet (Optra) Honda (Jazz) Honda (Civic) Chevlolet (Optra) Honda (Accord) Ford (Ranger) Toyota (Altis) Toyota (Avanza) Honda (CRV) Honda (City) Honda (City) Mitsubishi (Lancer) Ford (Escape) Honda (Civic) Toyota (Wish)
  18. 19. Part IV: Financial Highlight
  19. 20. Financial Summary Total Revenue Cost of Good Sold SG&A Bt.mn. % of Rev. Net Profit Bt.mn. g (%) Bt.mn. % of Rev. Bt.mn. % of Rev. Net Profit yr. 2003 Bt. 132 mn. Gain fr. Restructuring Bt. 461 mn. …….(A) Loss fr.Obsolete&damage stock Bt. 304 mn. …….(B) Net loss before (A) & (B) Bt.(24) mn. Note: Growth in 1H2005 using estimated annualized revenue
  20. 21. Financial Summary Total Assets Account Receivables Inventory Bt.mn. Bt.mn. Bt.mn. Days Days <ul><li>Inventory and total assets in year 2003 were significantly decreased since IHL realized loss from obsolete and damage stock of Bt.304 million </li></ul><ul><li>Even inventory in 2005 are continuously increased according to the increased in revenue but IHL’s inventory management are more efficient reflecting through shorten days inventory to 134 days </li></ul><ul><li>Account receivables at 2005 are double compared with year 2004 but IHL’s days receivables are 46 days in average , which are almost the same as the former year. </li></ul>g (%)
  21. 22. Financial Summary Account Payable Loans Total Liabilities Bt.MB Days Bt.MB Bt.MB Loans Restructuring: Hair cut Loans and Acc.interests of Bt.460.67 mn. Debt to Equity Ratio Significantly decreased due to the increased in Equity from Net Profit and Capital increased from IPO OD& Short term loans Long term loans
  22. 23. Financial Summary Paid up Capital Retained Earnings Shareholders Equity Bt.MB Bt.MB Bt.MB Retained loss turned to positive after realized Q42005 net profit and share premium ROA Bt.MB
  23. 24. Part V: Business Opportunity
  24. 25. Future Projects <ul><li>Capacity Expansion (By 2006) </li></ul><ul><ul><li>New plant with utilized area of 15,000 sq.m. </li></ul></ul><ul><ul><li>Capacity enhancement from 12 million sq.feet per year to 24 million sq.feet per year </li></ul></ul><ul><ul><li>Estimated Bt. 200-240 million of investment (exclude land) </li></ul></ul><ul><ul><li>Signed contract on January 25, 2006 </li></ul></ul><ul><li>Objectives for expansion </li></ul><ul><ul><li>To support the incremental demand from automotive industry. </li></ul></ul><ul><ul><li>To support the incremental demand through new distribution channels in both domestic and foreign markets. </li></ul></ul><ul><ul><li>To support new production lines e.g. Chrome-free Leather. </li></ul></ul>
  25. 26. Question and Answer