AAPICO Hitech Public Co., Ltd. Business Report FY2011

Business Highlights

Financial Overview

(in million Baht)

	FY2011	FY2010	Rate of change (%)	Factors
Overall
Sales	10,356	11,344	(8.7)	-The decline of revenue in 2011 resulted from the impact of the tsunami in Japan and the severe floods in Thailand, which led to a drop in the automotive industry.
EBITDA	397	1,138	(65.1)	-The reduction was largely due to a decrease in sales and a loss arising from the flood.

OEM Auto Parts
-Sales dropped by 7% to Baht 6,836 m (FY2010: RM 7,389 m).
-Sales drop was in line with the downturn in the industry caused by the series of unfortunate natural disasters.

Market share

(%)

	FY2011	FY2010
Chassis frames	20	36
Steel fuel tanks	20	34
Door checks	29	25
Plastic fuel tanks	7	7

*According to the Company.

Contracts

-Followings are major contracts in 2011.

Ford: "Ranger Pick up"
Honda: "Brio"
Isuzu: "D-MAX"
Mazda: "Thunder Pick up"
Nissan: 2nd Eco-car 4-doors

Award

AAPICO Amata Co., Ltd.
-In 2011, the Company received "Best Supplier in Quality and Delivery" award from Isuzu Motors (Thailand) Co., Ltd.

Investment Activities

Capital Expenditures

(in million Baht)

	FY2011	FY2010	FY2009
Overall	6,578	5,546	4,975

Major factors behind the increase
-The Company purchased new machines and factory equipment for the new factories.

Investment in Thailand

AAPICO Forging PLC.
-The Company has invested in the latest "state-of-the-art" machining line and a new 1,600 ton forging press machine, as well as a major overhaul of the forging machines.

Investment Outside Thailand

<China>
Kunshan Chaitai-Xincheng Precision Forging Co., Ltd.
-The Company's first totally owned factory in China will be fully completed in the 1st quarter 2012 and the first production will start in the 2nd quarter 2012.
-The Company is equipped with newly installed world class machines, such as 400 ton and 1,600 ton forging press machines and connecting rod cracking machine.
-Two brand new projects, namely, connecting rod for SAIC and forging parts for CFME (Changan Ford Mazda Engine), will soon start their production in 2012.