P.C.S. Machine Group Holding PCL Business Report FY ended Dec. 2015

Financial Overview

(in million THB)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	Rate of Change (%)	Factors
Net Sales	4,092.3	4,013.9	2.0	1)
Net Profit	541.7	717.2	(24.5)	2)

Factors
1) Net Sales
-The Company’s sales in the fiscal year ended December 31, 2015 increased by 2.0% from the previous year to THB 4,092.3 million. The increase in sales corresponded to an increase in production of vehicles within the country in 2015 by 1.8% over the previous year’s production.

2) Net Profit
-The Company’s net profit for the fiscal year ended December 31, 2015 was THB 541.7 million, a decrease of 24.5% from the previous year. The main driver for the decrease in net profit was an increase in cost of goods sold, which was a result of increased competition within the market. In addition, the Company invested heavily in capital during the year in preparation for several programs that were awarded, further increasing 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.

New contracts won

Parts Supplied	Customer	Value (in millions THB)	Start of Production
Crankcases	European OEM	170	Q2 2016
Shafts, brackets, housings and covers	Japanese OEM	1,120	Q3 2016
Housings	Japanese OEM	130	Q3 2016
Gears, covers and oil pans	European OEM	2,300	Q3 2016
Brackets	Japanese OEM	110	Q1 2017
Fuel rails	European Tier 1 supplier	450	Q1 2017
Pressure plates	European Tier 1 supplier	40	Q1 2017
Camshafts	Japanese OEM	25	Q4 2017

Awards

-PCS Precision Works Co., Ltd. won "2016 Outstanding Performance Supplier in Quality Performance" from Toyota Motor Thailand. (From a press release on April 7, 2017)

-In 2015, the Company’s subsidiary, P.C.S. Precision Works Co., Ltd. won The Best in Quality FY 2014 award from KYB Steering (Thailand) Co., Ltd.

Capital Expenditure

(in million THB)

	FY ended Dec. 31, 2015	FY ended Dec. 31, 2014	FY ended Dec. 31, 2013
Total	403.1	265.1	569.2

-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.

Investments in Thailand

-The Company expects to start a new production line during the third quarter of the fiscal year ending December 31, 2016 for the production of vehicle parts for motorcycles, large trucks, and green vehicles.

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