Thitikorn Public Company Limited

Transcription

1 Thitikorn Public Company Limited #1 Motorcycle Hire-Purchase in Thailand Opportunity Day August 18, Thitikorn Public Company Limited

2 Contents I. Company Profile II. Industry Overview III. Operational Results IV. Financial Highlights 2 Thitikorn Public Company Limited

3 I. Company Profile 3 Thitikorn Public Company Limited

4 Company Development 1972 Established with 1MB registered capital to provide motorcycle HP in Bangkok 1978 No.1 in term of market share of motorcycle HP in Bangkok 1991 Increased registered capital to 70 MB 1995 Acquired 99.99% of CVA to expand HP business in Central and Eastern area 2000 Initiated insurance program to minimize risk which later become the industry standard 2002 Received award from The Consumer Protection Board 2003 Acquired CYP to provide automobile HP 2003 Listed on the SET and raised fund of 1,100 MB 2004 Expand new branches to North, North-East, Central and South (average 4 branches/year) 2005 Issued first TK s Thai Baht-Bond of 745 MB 2006 TRIS BBB+ (stable) 2006 Secure 600 MB loan yrs. for fixed rate@ 4.00% 2007 Received additional credit line of 1,725 MB from KBANK, BBL and ACL Stars Corporate Governance Scoring appraised by Thai Institute of Directors Association (IOD) 2009 Extensive 76 branches covering 44 provinces in Thailand 2010 TRIS A - (stable) 4 Thitikorn Public Company Limited

5 Group Structure Total gross portfolio of 10,445.2 MB Thitikorn Plc. (TK) Motorcycle hire purchase provider with 8,772.8 MB portfolio size 99.99% 99.99% C.V.A. Co., Ltd. (CVA) Chayapak Co., Ltd. (CYP) Motorcycle Hire-Purchase and debt collection service Automobile hire purchase provider in Bangkok & Metropolitan area with 1,672.4 MB portfolio size * As of June 30, Thitikorn Public Company Limited

6 Success Factors Proven Track Record No.1 in motorcycle HP since 1978 Most recognizable brand by motorcycle dealers & customers Reputable major shareholders - Dr.Chumpol Phornprapha & Families Proven management with market expertise more than three decades in HP industry Never been an NPL with any finance institutions since founded Large valuable database of over 1,600,000 customers Extensive & nationwide outlets with 76 branches in 44 provinces Consistency provide HP service during any economic condition Solid Financial Position Solid Capital Base :2,942.2 million baht D/E ratio of 1.5 times : average D/E of financial sector is 8.4 times Abundant credit line from the leading financial institutions with favorable terms & conditions 91.6 % of Total Assets are income generating assets High quality motorcycle HP portfolio with less than 3.7 % NPL Very conservative accounting policy : recognized full amount of commission at day one Stringent loan provision : reserve full amount of the whole contract value A - rating by Thai Rating Information System (TRIS) 6 Thitikorn Public Company Limited

7 II. Industry Overview 7 Thitikorn Public Company Limited

8 Thailand Motorcycle Sales In 2009 sales decreased 10.8% from 2008 due to global financial crisis, however, domestic motorcycle sales in 2010 expected to rise along with global economic recovery and high agriculture prices. (Units) 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 2,109,227 BMA 2,043,634 1,976,493 Provincial Area 19% 1,767,074 14% 16% 16% 1,595,305 1,741,749 1,700,00 F 1,553,561 1,328,194 17% 22% 21% 15% 1,000, , , , , ,716 14% 86% 907,160 14% 86% 85% 84% 86% 81% 84% 83% 78% 716,231 Q2 368,586 79% Q1 347, , (6M) 21% Q2 472,692 79% Q1 464,709 Source : Thailand Motorcycle Hire Purchase Association 8 Thitikorn Public Company Limited

9 Monthly Motorcycle Sales Motorcycle sales increased 33% for first quarter of 2010 and monthly sales continue to expand. (Units) 200, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,739 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source : Department of Land Transport 9 Thitikorn Public Company Limited

10 Motorcycle Hire Purchase in BMA The increasing cash sales portion due to HP operators tighten their lending policy. (Units) 400, , , , , , , ,000 80,000 40, ,740 Cash sale in BMA 361,741 HP financing in BMA 341,289 20% 353, , ,749 22% 27% 22% 29% 248,250 39% 134, ,109 39% 87,700 35% 38% 213,557 34% 34% 80% 78% 78% 71% 73% 61% 66% 66% 192,492 45% 55% 61% 65% 65% (6M) Source : Thailand Motorcycle Hire Purchase Association 10 Thitikorn Public Company Limited

11 Category : Automatic 11 Thitikorn Public Company Limited

12 Category : Family 12 Thitikorn Public Company Limited

13 Category : F-Sport 13 Thitikorn Public Company Limited

14 Category : Sport 14 Thitikorn Public Company Limited

15 Motorcycle by Category (Units) 2,200,000 2,000,000 1,800,000 1,600,000 1,767,074 1% 7% 1,400,000 1,328,194 2% 58% 52% 1,200,000 14% 81% 50% 50% 87% 1,000, , ,401 3% 2# 1% 783,716 90% 800,000 4% 27% 45% 28% 600, , ,966 5% 84% 8% 31% 400,000 36% 39% 47% 45% 46% 70% 69% 52% 200,000 64% 56% 15% 8% 0 2% % 4% 1% 3% 2,043,634 2,109,227 1,976,493 1% 2% 1% 2% 1,595,305 1% 2% Scooter Family F-Sport Sport 1,741,749 1% 2% 1,553,561 2% 2% 1,700,000 F 15 Thitikorn Public Company Limited

16 Thailand Automobile Sales (Units) In 2009 Automobile sales decreased by 10.8% yoy due to domestic economic slowdown, the world financial crisis together with HP operators tighten their lending policy and political uncertainty. However,2010 sales expected to increase on the back of rising GDP growth. 800, , , , ,000 Commercial vehicle Passenger car 703, , , , , , % 73.24% 71.89% 61.00% 71.47% 66.43% 548, % 628,000 F 356, , % 200, ,428 Q2 123,654 Q2 189, , % 33.40% 26.76% 28.11% 28.53% 39.00% 41.91% Q1 107, % Q1 166, (6M) Source : Toyota Motor Thailand Co.,Ltd. 16 Thitikorn Public Company Limited

17 Monthly Automobile Sales Automobile sales increased 55% for first quarter of 2010 and monthly sales continue to expand 80,000 (Units) ,085 70,000 66,456 70,557 62,205 60,000 50,000 40,000 30,000 59,001 63,067 57,128 54,175 54,910 53,271 57,031 49,560 54,721 50,108 48,649 48,942 49,565 47,130 47,881 43,402 44,772 46,068 45,715 41,328 43,156 43,251 40,539 39,713 32,085 34,361 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source : Department of Land Transport 17 Thitikorn Public Company Limited

18 Eco Car Hatch Bag 5 doors Sedans 4 doors 18 Thitikorn Public Company Limited

19 III. Operational Results 19 Thitikorn Public Company Limited

20 Hire Purchase Business Business Policy Motorcycle Hire purchase provider for all brands Focus on new motorcycle hire purchase Hire purchase term of months Automobile Hire purchase provider mainly second hand cars Hire purchase term of months Product Brands All brands such as Honda, Suzuki, Yamaha, Kawasaki, etc. All brands mainly Toyota, Nissan, Mitsubishi, Honda, Isuzu etc. Categorized by Outstanding Duration Categorized by Outstanding Duration Hire Purchase Account Receivables Balance as of June 10 <=12 month 13% <=12 month 6% month 20% >12 month 87% >36 month 74% 20 Thitikorn Public Company Limited

21 Credit Policy Proprietary credit approval policy and customize terms and conditions for each customers Customer Profile Secured source of income and occupation Clear hire purchase objective Acceptable Guarantor Not Recorded in TK s Black List Customer Residence in TK s Coverage Area Monitor Motorcycle and Automobile Model as Per Standard Procedure Customize Terms and Conditions 21 Thitikorn Public Company Limited

22 Credit Approval & Control Preliminary Credit Checking Potential customers apply for credit approval; review customers profile Record & Documentation Checking Verify accuracy of customers profile and collect required documents Credit Approval - Analyze customers credibility through credit scoring system and customize net financing - Transfer customer profile to company s database for future reference Debt Settlement Provide multiple payment channels through bill collectors, banks, counter service and internet Debt Collection - unpaid debt <3 months --> payment warnings - unpaid debt 4-6 months --> agreement termination - unpaid debt >6 months --> bad debt write off --> repossess and appraisal after verdict 22 Thitikorn Public Company Limited

23 TK Branches & Networks Branches Extensive 76 branches coverage in Bangkok & Metropolitan area, Central, Northeastern and Eastern parts of Thailand in 44 provinces out of 76 provinces Networks Servicing over 868 motorcycle strategic alliances Servicing over 45 automobile strategic alliances Multiple payment channels nationwide CENTRAL Bangkok Chainart Nakornnayok AngThong Ayudhya Kanchanaburi Nakhon Prathom Lopburi Supanburi Singburi Lamnarai Saraburi Ratchburi Samutsongkhram Baan pong Q1/2552 WEST Petch Buri Prachuap Khiri Khan SOUTH Hua Hin Surathani Nakornsrithamrat Chumporn Trang Ranong Phuket Q1/2552 NORTH Kampang Petch Nakorn Sawan Sukhothai Chiangmai Chiangrai Lampang Phitsanulok North North-East Central West East South NORTH-EAST Nakornratsrima Kornkan Burirum Udornthani Roiet Nangrong Mahasarakham Kalasin Chaiyaphum Ubonratchathani Q3/2552 EAST Rayong Chachengsaow Cholburi Chantaburi Sri-racha Banchang Klang Trad Pattaya Panomsarakam Kabinburi Srimahapho As of Dec 31, 2008 Sapan 4 23 Thitikorn Public Company Limited

24 IV. Financial Highlights 24 Thitikorn Public Company Limited

25 Revenue, Expense and Net Profit Conservative expansion accompany with stringent credit approval procedures develop TK s performance Unit : MB 3,000 2,500 2,325 2, , ,348 Unit : MB ,000 2,152 1, ,037 2, ,500 1,334 1, , ,190 1, Q2/2009 Q2/2010 H1/2009 H1/ Total Income (LHS) Total Expense (LHS) Net Profit (RHS) 25 Thitikorn Public Company Limited

26 Revenue Breakdown 2009 Total Revenues = 2,682 MB 97.1% of Total Revenues contributed by Motorcycle HP interest and Other Incomes, with the remaining from Automobile HP interest Automobile Hire Purchase Income 57.0MB (2.1%) Other Incomes MB (26.9%) Motorcycle Hire Purchase Income 1,902.5MB (71.0%) Q1/2010 Total Revenues = 715 MB Q2/2010 Total Revenues = 691.9MB Automobile Hire Purchase Income 18.2 MB (2.5%) Other Incomes MB (26.4%) Automobile Hire Purchase Income 20.0 MB (2.9%) Other Incomes MB (23.34%) Motorcycle Hire Purchase Income MB (71.1%) Motorcycle Hire Purchase Income MB (73.76%) 26 Thitikorn Public Company Limited

27 Total Assets vs. Hire Purchase Account Receivables 91% of TK Total assets are income generating portfolio which generate cash inflow from monthly installments 8,000 7,000 6,000 5,000 5,458 5,425 4,947 4,819 5,873 5,219 6,645 6,011 6,968 6,369 7,327 6,664 4,000 3,000 2,000 1, Q1/ 2010 Q2/ 2010 Total Assets Net HP Portfolio 27 Thitikorn Public Company Limited

28 High Quality HP Portfolio 2009:Aging of Total HP Portfolio (6,356 MB) Prudent expanding policy with strictly credit approval process and strong collection team create high quality HP portfolio. 4 6 mth. 125 MB (2.0%%) > 6 mth. 123 MB (1.9%) Current-3mth 6,108.0 MB (96.1%) Q1/ 2010:Aging of Total HP Portfolio (6,716 MB) Q2/ 2010:Aging of Total HP Portfolio (7,031 MB) 4 6 mth. 124 MB (1.8%) > 6 mth. 122 MB (1.8%) 4 6 mth. 139 MB (2.0%) > 6 mth. 121 MB (1.7%) Current-3mth 6,470 MB (96.4%) Current-3mth 6,771 MB (96.3%) 28 Thitikorn Public Company Limited

29 Stringent Accounting Policy Income Recognition and Charge-Off Policy Past due over 3 months will be charged off One time commission charged at the beginning of the contract Write-Off Policy Motorcycle with past due over 6 months will be written off (without verdict process) Automobile with past due over 6 months that had gone through verdict will be written off Provision for Doubtful Account Policy Provision for Doubtful Account of Motorcycle Hire Purchase Net Account Receivables Provision for Doubtful Account (%) TK does not deduct the collateral value before setting provision for motorcycle HP Current portion < 1 Months 1 < Overdue < 3 Months 3 < Overdue < 6 Months Overdue > 6 Months Provision for Doubtful Account of Automobile Hire Purchase Net Account Receivables Provision for Doubtful Account (%) Current portion < 1 Months 1 < Overdue < 3 Months 3 < Overdue < 6 Months 6 < Overdue < 12 Months Overdue > 12 Months Thitikorn Public Company Limited

30 High Coverage Ratio Robust reserve for loan loss with % coverage ratio or 5.22% of total HP portfolio (Units:MB)) 8,000 7,000 6,000 5,586 6,356 6,716 7,031 5,000 4,000 3,000 2,000 1, Q1/2010 Q2/2010 Net HP A/R NPL ( >6 mth) NPL ( >3 mth) Loan provision 30 Thitikorn Public Company Limited

31 Strictly Private & Confidential Thitikorn Public Company Limited 69 Ramkamhaeng Rd., Huamark, Bangkapi, Bangkok Tel: Fax: Thitikorn Public Company Limited