P.C.S. Machine Group Holding PCL Business Report up until FY ended Dec. 2014

Financial Overview

(in million THB)

	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013	Rate of Change (%)	Factors
Net Sales	4,013.9	5,124.5	(21.7)	1)
Net Profit	717.2	1,376.6	(47.9)	2)

Factors
1) Net Sales
-The Company's sales in the fiscal year ended December 31, 2014 decreased by 21.7% from the previous year to THB 4,013.9 million. Demand for pickup trucks and pickup-truck based vehicles decreased due to the conclusion of a tax benefit program as well as the political crisis occurring from the end of 2013 through 2014. The decreased demand of the Company's primary source of revenue led to the decrease in sales.

2) Net Profit
-The Company's net profit for the fiscal year ended December 31, 2014 was THB 717.2 million, a decreased of 47.9% from the previous year. The primary factors behind the decrease in net profit were the decrease in sales along with increases in fixed costs from future investments and employee expenses.

Contracts

-The Company won a contract to produce trunnion shafts and cover heads for heavy-duty trucks worth approximately THB 500 million. The Company will begin production for the contract in 2016.

Parts Supplied	Customer	Annual Production Capacity (in thousands units)	Value (in millions THB)	Start of Production
Differential case	New Tier 1 supplier in Thailand	300	400	Late 2014
Camshaft cover	Tier 1 supplier in Europe	300	300	Late 2014
Camshaft assembly	Existing Tier 1 supplier	300	300	2015
Balance shaft driver module	Existing auto maker	120	200	2015
Common rail for Euro VI standards	Tier 1 supplier in Thailand	100	100	2016
Gears and products for Euro V standards	Tier 1 supplier in Thailand	1,440	600	2014

Capital Expenditure

-The Company had a capital expenditure budget of THB 420 million for the fiscal year ended December 31, 2014 and allocated THB 580 million for the fiscal year ending December 31, 2015.