Halcyon Technology PLC. “HTECH”

Opportunity Day Q2’18

19/09/18

Halcyon Timeline

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 – 2nd factory in the Philippines

2017 New factory building at HT and new factory in Hanoi, Vietnam; Consolidated revenue reached 1 billion THB

2

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

3

Halcyon in ASEAN Market

Halcyon Technology Public Co., Ltd.

(HTECH) since 2002

Halcyon Metal Co., Ltd. (HM)

since 1993 HTECH holds 100%

FDM Technology Co., Ltd. (FDM)

since 2002 HTECH holds 60% (2012)

Halcyon Tools and Engineering Co., td. (Heng)

since 2016 FDM holds 90%

Halcyon Technology Vietnam Co., Ltd. (HV)

since 2014 HTECH holds 85%

Halcyon Technology

(Philippines) Inc. (HP) since 2010

HTECH holds 65%

ATEK Precision Tools (ATEK)

since 2011 HP holds 100%

Halcyon Technology (M) Sdn. Bhd. (HY)

since 2013 HTECH holds 60%

Halcyon Technology (Singapore) Pte. Ltd. (HS)

since 2013 HTECH holds 70%

PT HTECH Tools Indonesia (HI)

since 2012 FDM holds 60%

Factory Distributor

4

Halcyon Products

Cutting Tool Types PCD (Polycrystalline Diamond)

MCD (Monocrystalline Diamond)

Applications: super-finishing and critical applications

Materials: brass, copper, aluminum, acrylic

Industry: Lens, Jewelry, Watch, Automotive

PCBN (Polycrystalline-Cubic Boron Nitride)

Applications: cutting super-hard materials

Materials: cast iron, hardened mat. (>50 HRc), sintered mat.

Industry: Automotive, machinery parts

Carbide

Applications: General purpose cutting

Materials: Steel, aluminum, plastic, wood, etc.

Industry: Used in most industries

Applications: cutting non-ferrous materials

Materials: aluminum, brass, copper, abrasive materials, wood, acrylic, etc.

Industry: HDD, Aerospace, Automotive, medical, jewelry, etc.

6

PCD Endmill

Tools for HDD

PCD Form Tool

PCD Drill

PCD Monoblock

PCD Hollow Mill

PCD Hollow Pin

1 base plate uses up to 10-15 cutting tools

7

Tools for Automotive

8

Halcyon Customers

9

Q2’18 Performance & Financial Highlights

Consolidated HTECH Group Performance

Consolidated Performance (Q) * Net Profit of HTECH

shareholders only

** Conso. Total Revenue

270 279

40.4% 38.5%

15.6% 16.0%

-

50

100

150

200

250

300

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Tota

l Re

ven

ue

(T

HB

mill

ion

)

HT HM FDM HENG HP HS HYK HI HV Gross Profit Net Profit*

11

201

6 Revenue = 826 mill. (+14%) GPM = 39.0% NPM* = 14.3% 2

017 Revenue = 1,004 mill. (+22%)

GPM = 40.7% NPM* = 14.7% 1H

2018

Revenue = 548 mill. GPM = 39.5% NPM* = 15.8%

Revenue Breakdown (related eliminated)

12

HT 35%

HM 6% FDM 14%

HENG 4%

HP 16%

HS 9%

HY 9%

HI 5%

HV 2%

2017

HT 37%

HM 6% FDM 16%

HENG 5%

HP 14%

HS 7%

HY 8%

HI 5%

HV 2%

2018 (2Q)

HT

Thailand HM

FDM

HENG

HP Philippines

HS Singapore

HY Malaysia

HI Indonesia

HV Vietnam

Breakdown by Country:

HT Performance (Q)

119 125

38.7% 38.5%

19.4% 20.3%

29.8%

0

20

40

60

80

100

120

140

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

Sale

s (T

HB

Mill

ion

)

Sales Gross Profit Net Profit Dividend

13

201

6 Sales = 353 mill. (+8%) GPM = 37.2% NPM = 22.7% 20

17 Sales = 464 mill. (+32%)

GPM = 39.49% NPM = 24.7% 1H

2018

Sales = 244 mill. GPM = 38.5% NPM = 25.1%

Financial Highlights

Consolidated as of 31/6/18

Capital Structure

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2014 2015 2016 2017 Q2'18

966 1,023

1,277

1,595 1,657

258 259 253

492 484

633

764

1,023 1,104

1,172

TH

B m

illi

on

Assets Liabilities Shareholder's Equity

15

Debt to Equity Ratio

143 141 95

294

349

0.37 0.34

0.28

0.50 0.47

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0

50

100

150

200

250

300

350

400

2014 2015 2016 2017 Q2'18

D/E

Ra

tio

(ti

me

s)

TH

B M

illi

on

Interest-bearing Debt D/E Ratio

16

Current Ratio

0

0.5

1

1.5

2

2.5

3

2014 2015 2016 2017 Q2'18

1.88

2.12

2.87

1.73

2.25

Tim

es

17

Profitability

242 249

322

409

213

68 63

118

148

87

35% 35%

39% 41%

39%

10% 9%

14% 15% 16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017 Q2'18

% M

arg

in

TH

B m

illi

on

Gross Profit Net Profit (HTECH) Gross Margin Net Margin (HTECH)

18

Target Performance 2018

Consolidated HTECH Group Performance

Target Performance 2018

Act

ual

Q1-

2

Targ

et

Q3

-4

+10%

701 724 826

1,004

39.0% 40.7%

14.3% 14.7%

-

200

400

600

800

1,000

1,200

2014 2015 2016 2017 2018 Target

HT HM FDM Heng HP HS HY HI HV Gross Profit Net Profit*

* Net Profit of HTECH

shareholders only

** Conso. Total Revenue

20

Thank You

Q&A

Contact Us

HALCYON HEAD OFFICE

41 Moo 14 Bangchan Industrial Est. Soi 6, Serithai 58, Minburi, Bangkok 10510

GPS Coordinates: 13.799211,100.707114

Tel: +66(0)2 906 3242-50 / Fax: +66(0)2 906 3251

e-mail: info@halcyon.co.th

www.halcyon.co.th