Halcyon Technology PLC. “HTECH”

Q4’17 & YE’17

March’18

Halcyon Timeline

1993 2002 2005 2009

HM established for manufacturing of metal fabricated products – jigs & fixtures, etc.

HT established for new segment of PCD cutting tools

Came out with PCD hollow tools – changed the HDD world

HT went public; IPO under symbol “HTECH”

2

Halcyon Timeline

2010 2012 - 2014

2nd factory established in Philippines (HP)

Continue to expand by setting up subsidiaries in SE Asia

HTECH invests in new factory building & machines for BOI 2

Set up 3rd factory in Hanoi

2016

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 Customers

5

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.

7

High-end Products Veined PCD Endmills

(V-Tec) Features: Veined PCD cutting edge reduces cycle time and extends tool life

Applications: suitable for composite materials such as CFRP used in Aerospace industry and other vehicles

Solid-headed PCD Tools

(S-Tec) Features: Solid PCD tip allows for more flexible helix angle, better chip evacuation, and longer tool life; can be regrinded multiple times

Helix PCD Tools

(H-Tec) Features:

• Better tool life, better finishing, reducing cycle time by 35-50%

• Market Leader in SE Asia

• Can reduce more cost than normal Solid PCD tools

• More flexibilities in designs

8

Q4’17 Performance & Financial Highlights

Consolidated HTECH Group Performance

Consolidated Performance (Q) * Net Profit of HTECH

shareholders only

** Conso. Total Revenue

238 247 259 260

42% 41% 41% 38%

16% 16% 16% 11%

-

50

100

150

200

250

300

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

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

10

Consolidated Performance (Y)

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

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

* Net Profit of HTECH

shareholders only

** Conso. Total Revenue

11

12

Revenue Breakdown (related eliminated)

HT 35%

HM 6%

FDM 14%

HENG 4%

HP+ATEK 16%

HS 9%

HY 9%

HI 5%

HV 2% 2017

HT 34%

HM 7% FDM 15%

HENG 0.3%

HP+ATEK 17%

HS 9%

HY 9%

HI 6%

HV 2% 2016

12

HT Performance (Q)

106

123 122

113

42% 42% 40%

34%

21%

30% 28%

19%

-

20

40

60

80

100

120

140

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17

Sale

s (T

HB

Mill

ion

)

Sales Gross Profit Net Profit Dividend

13

HT Performance (Y)

353

464

37%

39%

24%

27%

0

50

100

150

200

250

300

350

400

450

500

2014 2015 2016 2017

Sale

s (T

HB

Mill

ion

)

Sales Gross Profit Net Profit Dividend

14

HT New Factory Building

• Fully operating since Dec’17

• Increased capacity by 30-40% of existing capacity (HT only)

• 6 years corporate tax exemption privilege from BOI

15

Financial Highlights

Consolidated as of 31/12/17

Capital Structure

-

200

400

600

800

1,000

1,200

1,400

1,600

2014 2015 2016 2017

966 1,023

1,277

1,595

258 259 253

492

633

764

1,023 1,104

TH

B m

illi

on

Assets Liabilities Shareholder's Equity

17

Debt to Equity Ratio

143 141 95

294

0.37 0.34

0.28

0.50

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

D/E

Ra

tio

(ti

me

s)

TH

B M

illi

on

Interest-bearing Debt D/E Ratio

18

Current Ratio

0

0.5

1

1.5

2

2.5

3

2014 2015 2016 2017

1.88

2.12

2.87

1.73

Tim

es

19

Profitability

242 249

322

409

68 63

118

148

35% 35%

39% 41%

10% 9%

14% 15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

50

100

150

200

250

300

350

400

450

2014 2015 2016 2017

% M

arg

in

TH

B m

illi

on

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

20

Dividend Payouts

HTECH Dividend Policy: payout no less than 40% of net margin

Performance Period Payout Date Dividend per Share (THB)

Jan. – June 2014 9/9/14 0.045

July – Dec. 2014 8/5/14 0.065

Jan. – June 2015 9/9/15 0.045

July – Dec. 2015 10/5/16 0.055

Jan. – June 2016 9/9/16 0.065

July – Dec. 2016 23/5/17 0.11

Jan. – June 2017 11/9/17 0.11

July – Dec. 2017 25/5/18 0.10

21

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