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:: Annual Report 2007 ::

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  • ()KCE ELECTRONICS PUBLIC COMPANY LIMITED

    125-125/1, 1 4 10520125-125/1, 1 Moo 4 Lat Krabang Industrial Estate, Kwang Lumplatew, Lat Krabang, Bangkok 10520, Thailand

    Tel. (662) 326-0196 Fax. (622) 326-0300Website : www.kcethai.in.th

    2550 I Annual Report 2007

    ()KCE ELECTRONICS PUBLIC COMPANY LIMITED

    2

    550 A

    nnual Report 2

    007

    (

    ) K

    CE ELEC

    TRONIC

    S P

    UBLIC

    COMPANY LIM

    ITED

  • Financial Highlights

    Summarized Financial Data

    2550

    Directors Report 2007

    I Contents

    The Audit Committee Report

    Nature of Business

    10

    Top Ten Shareholders

    From Shareholder List

    Board of Directors

    Management Staff

    Remuneration

    2

    3

    4

    10

    13

    14

    16

    22

    24

  • Corporate Governance Policy

    Industrial Status

    and Competition

    Management Explanations

    and Analysis

    Persons with vested interest

    and cross over transactions

    Risk Factors and

    Risk Management

    General Information

    Report of the Board of

    Directors Responsibilities

    for Financial Statements

    Report of Independent Auditor

    and Financial Statements

    Check List of

    QUALITY POLICY KCE commits to provide products and

    services to meet or exceed agreed requirements for all of our customers through continuous improvement and

    by doing it right the first time.

    26

    56

    62

    66

    68

    74

    76

    79

    173

  • ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    Financial Highlights :

    Unit : Million Baht

    2550 2549 2548

    2007 2006 2005

    8,584.465

    7,716.077 6,777.386

    Total revenues

    () 289.035 (69.904)

    49.420

    Profit before income taxes

    () 257.426 (116.347) 1.332

    Net profit (loss)

    631.092 486.577 473.306

    Net cash provided by operating activities

    () / () 0.66 (0.37) -

    Net profit (loss) per share / Average (baht)

    () () 388,387 310,025 310,415

    Share outstanding (Weighted average) (Thousand Shares)

    () 4,703 4,243 4,041

    Number of employees (person)

    9,876.965 9,115.573 8,873.106

    Total assets

    886.491 1,029.054 1,530.843

    Long term obligations

    2,710.093 2,283.275 2,400.017

    Total shareholders equity

    462.497 314.930 314.930

    Issued and paid up capital

    % / 12.12%

    % Dividends / Net profit

  • 2550 2549 2548 2007 2006 2005

    6,77

    7.39

    2550 2549 2548 2007 2006 2005

    2550 2549 2548 2007 2006 2005

    8,87

    3.11

    2550 2549 2548 2007 2006 2005

    2,40

    0.02

    ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    Summarized Financial Data

    8,58

    4.47

    Total Revenues /Million Baht

    () Net Profit (Loss) /Million Baht

    10,000

    8,000

    6,000

    4,000

    2,000

    0

    7,71

    6.08

    Shareholders Equity /Million Baht

    I Financial Data : Unit : Million Baht

    2550 2549 2548

    2007 2006 2005

    9,876.965 9,115.573 8,873.106

    Total Assets

    7,166.872 6,832.298 6,473.090

    Total Liabilities

    2,710.093 2,283.275 2,400.017

    Total shareholders Equity

    8,365.411 7,539.854 6,668.241

    Sales Revenue

    1,471.192 1,130.043 1,120.678

    Gross Profit

    () 257.426 (116.347) 1.332

    Net Profit (Loss)

    631.092 486.577 473.306

    Net cash provided by operating activities

    8,584.465 7,716.077 6,777.386

    Total Revenues

    I Financial Ratios

    3.08% -1.54% 0.02% Net Income : Total Sales

    9.50% -5.10% 0.06%

    Return on Shareholders Equity

    2.61% -1.28% 0.02%

    Return on Assets

    7.54% 6.45% 7.10%

    Net cash provided by operating activities / Sales

    23.29% 21.31% 19.72% Net cash provided by operating activities /

    Shareholders equity

    () 0.66 (0.37) -

    Earning Per Share (Baht)

    () 0.08

    Dividend Per Share (Baht)

    () 5.86 7.25 7.62

    Book Value Per Share (Baht)

    257.43

    280

    180

    80

    -20

    -120

    7,71

    6.08

    -116.35

    1.33

    9,87

    6.96

    Total Assets /Million Baht 10,000

    8,000

    6,000

    4,000

    2,000

    0

    9,11

    5.57

    2,71

    0.09

    3,000

    2,500

    2,000

    1,500

    1,000

    500

    0

    2,28

    3.28

  • ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    2550

    2550 11 7,539 2549 8,365 2550 21 199 2549 242 2550 2549 257.4 2550 97 74 6 35.76 2550 33.49 2550 2549 15 39.43 2549 33.49 2550

    ()

    18 2,925 2,485 62 148

    7 1,491 1,599 42 6

    16 1,586 1,364 63 35

    11 4,561 4,119 102 158

    () 120.0 2.4

  • ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    DIRECTORS REPORT 2007

    KCE continued its strong growth during 2007 resulting in group sales revenue increasing by 11% in 2007 from Baht 7,539 million in 2006 to Baht 8,365 million in 2007. However, in US dollar term, sales was up around 21% from US$ 199 million to US$ 242 million. This growth was achieved by increases in business from existing customers, particularly in the automotive and industrial market sectors, as well as from new customers. KCEs return to profit in Q4 2006 continued quarter on quarter during the course of 2007 resulting in a profit of Baht 257.4 million for 2007. The continued weakness of the USD dollar has however had a negative effect on the groups profitability. KCE Group exports 97% of its production and 74% of the Groups earnings results from USD sales. The USD depreciated by 6.3% during 2007 from an average exchange monthly exchange rate of 35.76 THB in January 2007 to 33.49 THB in December 2007. Since 2006 the USD has weakened by 15% from 39.43 THB at the beginning of 2006 to the current average of 33.49 THB. RESULTS SUMMARY The Group Company earnings are summarised as follows:

    KCE Electronics Plc Sales revenues increased by 18% to Baht 2,925

    million up from Baht 2,485 million. Profit of Baht 62 million up 148% from the previous year.

    KCEI Sales revenues decreased by 7% from Baht 1,491

    million down from Baht 1,599 million. Profit of Baht 42 million up 6% from the previous year

    TLM Sales revenues increased by 16% to Baht 1,586

    million up from Baht 1,364 million. Profit of Baht 63 million down 35% from the previous year

    KCET Sales revenues increased by 11% to Baht 4,561

    million up from Baht 4,119 million. Profit of Baht 102 million up 158% from the previous year

    KCE Thailand Sales revenues was Baht 120.0 million with a profit

    of Baht 2.4 million.

    2550

  • ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    13

    1.6 2551

    PCB 47.9 50.7

    PCB 54.7

    2551 71.4 2554

    2550 19 22

    50 5

    31 2550

    67

    12 600 2550

    21

    163.46 2551

    PCB -

    Bosch, Continental, TRW,

    Valeo, Siemens, Hella, Preh, Sumitomo, Kostal, Helbako

    PCB

    Body control

    sensors, infotainment

    High Density Interconnect (HDI) Sequential Build up

    (SBU) PCB

    PCB

    High-layer SBU HDI PCB

  • ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550 ANNUAL REPORT 2007 2550

    OUTLOOK The overall worldwide electronics market is set to increase by 13%

    to 1.6 trillion USD in 2008. Overall world production of PCBs was up

    from 47.9 billion USD to 50.7 billion USD in 2007. Notwithstanding the

    anticipated consumer slowdown led by consumer credit issues in the

    USA, PCB consumption is expected to increase to 54.7 billion USD in

    2008 and to 71.4 billion USD by 2011.

    KCE is partly insulated from the slowdown in the USA economy

    by its continued global diversification strategy. 2007 revenue from the

    USA accounted for 19% of KCEs total sales, down from 22% in 2006.

    Europe remained at 50% reflecting the stability of the European markets

    and Asian sales increased by 5% from 2006 to account for 31% of

    KCE Groups sales.

    KCEs largest market sector is the automotive industry accounting

    for over 67% of KCEs total business. Today KCE is one of the main Asian

    suppliers to the European Automotive with a 12% market share of a

    market thought to be worth in excess of 600m USD in 2007. The Global

    electronics automotive sector is poised to grow in excess of 21% to

    163.46 billion USD during 2008 which is a substantial increase compared

    to other market sectors more adversely affected by the consumer

    slowdown.

    KCE is very well placed to benefit from the growth in the automotive

    sector. Of the worlds top automotive suppliers, KCE is an established

    supplier to Bosch, Continental, TRW, Valeo, Siemens, Hella, Preh, Sumitomo,

    Kostal, Helbako and etc. amongst others. The automotive electr