AIRA Capital Public Company Limited AC Group Opportunity Day FY16

Transcription

1 AIRA Capital Public Company Limited AC Group Opportunity Day FY16 27 March 2017

2 Group Structure AIRA Capital Public Company Limited ( AIRA Capital ) has incorporated as a holding company with investments mainly in financial business. AIRA Capital Plc. Reg. Baht 1.79 Billion (Listed 7 Jul 2014) 30% 99.9% 71.5% 80% 60% 99.9% 99.9% AIRA & AIFUL Plc. Reg. Baht 2.5 Billion AIRA Securities Plc. Reg. Baht 1.2 Billion AIRA Factoring Plc. Reg. Baht 400 Million (Listed 25 Aug 2004) AIRA Leasing Plc. Reg. Baht 500 Million AIRA Property Plc. Reg. Baht 500 Million AIRA Venture Capital Ltd. Reg. Baht 20 Million AIRA Asset Management Reg. Baht 100 Million 99.9% 90% 60% 38% AIRA Advisory Co., Ltd. Reg. Baht 50 Million AIRA International Advisory (Singapore) Pte. Ltd. Reg. SGD 500,000 Aspiration One Co., Ltd. Reg. Baht 1.0 Billion Travelex (Thailand) Ltd. Reg. Baht 110 Million Source: Aira 2

3 3 Vision

4 AC Group Strategic Plan Diversified Portfolio Top 5 in non-bank financial business Nonfinance 25% Financial 75% 13,917 4

5 3 Years Price Performance AIRA stock outperformed both financial sector and MAI index 66.2% 19.1% 14.1% Source: SET 5

6 Company Highlights since 2016 Apr 16 Acquired a leasing company at majorities stake (80%) AIRA Leasing (AIL) Record FY16 profit at THB4.5m Sep 16 Set up a joint venture company with Travelex Limited (London) named Travelex (Thailand) limited to operate currency exchange services business Already obtained a license from BOT on Dec 2016 with established the 1 st branch at Wall Street Tower, Thaniya street CSR by cooperated with Queen Sirikit Foundation for selling local products at our branches 6

7 7 Company Highlights since 2016

8 Company Highlights since 2016 (Cont.) Oct 16 Dec 16 Feb 17 Spin-off AIRA Property shares to valued strategic partners : Kenedix Asia (20%) and Eugene Investment & Securities (20%) with premium 18% ROI Established AIRA Venture Capital to invest in 10 high growth industries For future Tax privilege 9 years Sumitomo Mitsui Trust Bank (SMTB) support a bridging loan of THB1.2bn to AIRA and AIFUL (A&A) FY17 projected personal loan portfolio grows 4.4x from 2016 Increased capital to 4.0 Billion in AIRA and AIFUL (A&A) on May 17 Mar 17 8 Established AIRA Asset Management to operate the business of Wealth Management and Fund Management Target customers Institutions and high net-worth

9 9 Company Highlights since 2016

10 AC Group FY16 Net Profit / Loss FY16 Result 250 AF AIL 200 AS AC m Profit before minorities investment and JV 0 Source: AIRA Notes: AC = Aira Capital, AS = Aira Securities, AF = Aira Factoring, AIL = Aira Leasing

11 AC Group Revenue Analysis Revenue (THB million) FY16 revenue grew 3.5x of GDP 11.2% % 70% 50% 30% 10% -10% -30% -50% Source: AIRA 11 8% 6% 4% 2% 0% Source: BOT 7.2% 0.8% Thailand GDP Growth 2.7% 2.8% 3.2% 0.8% F

12 AC Group Operating Profit Operating Profit (THB million) % % % 50% 0% % % % -200% Source: AIRA 12

13 AC Group Investment Investment in subsidiaries (THB million) 2,500 Investment in Subsidiary Growth 43.8% 50% 2, % 1, % 0.0% 10.9% 14.9% 0% 1, ,068 1,340 1,926 2, % Source: AIRA 13

14 AC Group FY17 Planning and Strategies Focus more on high margin businesses e.g. FL & HP, Personal finance, Asset & wealth management Developing a relationship with strategic partners Technology transfer and cost saving SG&A to sale < 10% Investment criteria Minimum IRR = 15% Focus on monitoring and controlling our subsidiaries companies to complied with their budgeting plan 14

15 15 Subsidiaries Performance

16 AIRA Securities (AS) - Performance Revenue and Net Profit (THB million) Revenue Net Profit Source: AIRA Key Highlight FY16 revenue increased 7.2% YoY Net profit surged 15.6x in 2016 Avg. commission rate = 0.136% vs. Market at only 0.11% Market share improved to 1.21% (FY15: 1.17%) 16

17 AIRA Securities (AS) Strategies Margin Loan (THB million) 1,800 1,600 1,400 1,200 1, Source: AIRA 1,700 1,500 1,400 1, F 2018F 2019F Key Strategies 17 Expanding margin loan portfolio Increase high-quality staff team by 10-15% Focus on high net worth account Maintaining commission rate at 0.136% compared to avg. market rate at 0.11%

18 AIRA Factoring (AF) Performance Revenue and Net Profit (THB million) Revenue Net Profit Source: AIRA Key Highlight FY16 revenue flat YoY on sluggish recovery Net profit turn positive from lower finance cost and provision Factoring volume sustained despite a slowdown in export 18

19 13,052 16,246 20,382 17,904 19,406 19,356 AIRA Factoring (AF) Strategies Factoring volume THBm 25,000 20,000 Revenue by segment Others 20.0% 15,000 10,000 Modern Trade 45% 5, Auto 35% Source: AIRA Source: AIRA Key Strategies 19 Focus high-growth SMEs and high quality customers Diversified to new sectors (Electronics, Telecom, Health & Beauty) Implementation E-Factoring platform Active customer acquisition via product program Conservative provision rule

20 AIRA Leasing (AIL) Performance Revenue and Net Profit (THB million) Revenue Net Profit Acquisition Source: AIRA Key Highlight FY16 revenue grew 8.5% YoY vs. Industry -7.5% Net profit jumped 3.5x to THB4.5m Started financial lease and hire purchase services in Dec 16 Streamlined an operating lease business 20

21 AIRA Leasing (AIL) Strategies Operating Lease, Financial Lease and Hire Purchase Key Strategies Shift toward financial lease (FL) and hire purchase (HP) OL : Focus on high-margin products e.g. Wheel loader, Excavator FL : Target corporate car and launching new product program e.g. Solar-roof leasing, Micro bus Boost up a yield and control the NPLs Improve OL asset portfolio short-lived + high liquidity 21

22 AIRA Property (AIP) ASPIRATION ONE Project (ASP1) Start commercial operation in Fl. Building with 57,470 sqm. LEED-Gold office building in CBD area Lease CPB land for 30 years+ Project value : THB2.5bn Project Assumptions Rental rate : THB900 / sqm. (approx.) Occupancy rate : 95% in 1 year IRR : 9-10% Source: AIRA 22 ASP1 + ASP2 + ASP3 + ASP4 REIT

23 AIRA Venture Capital (AVC) Focus on 10 industries in Thailand 4.0 policy 5 new S-curve industries 5 existing industries with high potential Source: SCG Logistics 23

24 24 Joint Ventures Performance

25 AIRA & AIFUL (A&A) Performance Investment Highlights A-Money branding = Money Buddy for 1 st jobber Current customer at 100,000 accounts (Feb 2017) FY17 budget, customers at 300,000 accounts Target IPO on 2019 Source: AIRA, A-money branch at MRT Asoke 25

26 AIRA & AIFUL (A&A) Performance Investment Highlights Loan Portfolio 1.5bn Start Operation 0.23bn Customer Accounts 10,454 88,

27 Travelex (Thailand) Limited Investment Highlights Open branches mainly in CBD and tourist areas First branch at Wall Street Tower, Thaniya Street Support by strong in-bound tourists 32.6m in 2016 Avg. market size of non-bank on currency exchange = THB50bn Strong partnership : Travelex (London) & UAE Exchange are the leader of the world on FX business 1,500 stores in 28 countries Source: Contactdir.uk 27

28 28 Q & A