AIRA Capital Public Company Limited AC Group – Opportunity Day FY16 27 March 2017
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 Securities Plc. AIRA Leasing Plc. AIRA Property Plc. AIRA Venture AIRA Asset AIRA Factoring Plc. AIRA & AIFUL Plc. Reg. Baht 1.2 Reg. Baht 400 Million Reg. Baht 500 Reg. Baht 500 Capital Ltd. Management Reg. Baht 2.5 Billion Billion Million Million Reg. Baht 20 Million Reg. Baht 100 Million (Listed 25 Aug 2004) 99.9% 90% 60% 38% AIRA International Advisory (Singapore) Pte. Ltd. Reg. SGD 500,000 AIRA Advisory Co., Ltd. Aspiration One Co., Ltd. Travelex (Thailand) Ltd. Reg. Baht 50 Million Reg. Baht 1.0 Billion Reg. Baht 110 Million Source: Aira 2
Vision 3
AC Group – Strategic Plan Diversified Portfolio Top 5 in non-bank financial business Non- finance 25% Financial 75% 13,917 4
3 Years Price Performance AIRA stock outperformed both financial sector and MAI index 66.2% 19.1% 14.1% Source: SET 5
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
Company Highlights since 2016 7
Company Highlights since 2016 (Cont.) Oct 16 Spin-off AIRA Property shares to valued strategic partners : Kenedix Asia (20%) and Eugene Investment & Securities (20%) with premium 18% ROI Dec 16 Established AIRA Venture Capital to invest in 10 high growth industries For future Tax privilege 9 years Feb 17 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 Established AIRA Asset Management to operate the business of Wealth Management and Fund Management Target customers Institutions and high net-worth 8
Company Highlights since 2016 9
AC Group – FY16 Net Profit / Loss FY16 Result AIL 250 AF 3.4 AS 200 50.8 AC 150 ฿ 200m Profit before 57.2 100 minorities investment and JV 50 88.4 0 Source: AIRA Notes: AC = Aira Capital, AS = Aira Securities, AF = Aira Factoring, AIL = Aira Leasing -50 10 10 -100
AC Group – Revenue Analysis Revenue (THB million) FY16 revenue grew 3.5x of GDP 1000 90% 900 70% 800 50% 700 600 30% 11.2% 500 10% 400 300 -10% 200 -30% 100 384.7 484.2 789.4 863.5 733.7 816.1 0 -50% 2011 2012 2013 2014 2015 2016 Source: AIRA 7.2% Thailand GDP Growth 8% 6% 3.2% 2.8% 2.7% 4% 0.8% 0.8% 2% 0% 2011 2012 2013 2014 2015 2016F Source: BOT 11
AC Group – Operating Profit Operating Profit (THB million) 350 150% 300 100% 250 50% 7.0% 200 0% 150 -50% 100 -100% 50 -150% 95.4 162.5 306.8 289.3 185.9 198.9 0 -200% 2011 2012 2013 2014 2015 2016 Source: AIRA 12
AC Group – Investment Investment in subsidiaries (THB million) Investment in Subsidiary Growth 2,500 50% 43.8% 25.4% 2,000 14.9% 10.9% 1,500 0.0% 0.0% 0% 1,000 500 963 963 1,068 1,340 1,926 2,214 0 -50% 2011 2012 2013 2014 2015 2016 Source: AIRA 13
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
Subsidiaries Performance 15
AIRA Securities (AS) - Performance Revenue and Net Profit (THB million) Revenue Net Profit 651.5 700 566.0 562.5 600 524.7 500 400 303.9 300 226.6 200 113.8 97.9 57.2 38.9 100 10.5 0 -3.9 -100 2011 2012 2013 2014 2015 2016 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
AIRA Securities (AS) – Strategies Margin Loan (THB million) 1,700 1,800 1,500 1,600 1,400 1,300 1,400 1,200 1,000 800 600 400 200 0 2016 2017F 2018F 2019F Source: AIRA Key Strategies • 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% 17
AIRA Factoring (AF) – Performance Revenue and Net Profit (THB million) Revenue Net Profit 250 214.4 191.2 189.6 185.9 200 174.8 133.7 150 100 64.7 50.8 44.0 43.5 50 24.9 0.1 0 2011 2012 2013 2014 2015 2016 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
AIRA Factoring (AF) – Strategies Factoring volume Revenue by segment THBm 25,000 Others 20.0% 20,000 Modern 15,000 Trade 10,000 45% 13,052 16,246 20,382 17,904 19,406 19,356 Auto 5,000 35% 0 2011 2012 2013 2014 2015 2016 Source: AIRA Source: AIRA Key Strategies • 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 19
AIRA Leasing (AIL) – Performance Revenue and Net Profit (THB million) Revenue Net Profit Acquisition 80 68.6 67.0 64.1 63.2 62.6 58.8 60 40 20 5 4.5 4.14 1.29 0.54 0 -20 -9.89 2011 2012 2013 2014 2015 2016 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
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
AIRA Property (AIP) ASPIRATION ONE Project (ASP1) • Start commercial operation in 2019 • 28 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 REIT ASP1 + ASP2 + ASP3 + ASP4 22
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
Joint Ventures Performance 24
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
AIRA & AIFUL (A&A) – Performance Investment Highlights 1.5bn Loan Portfolio Start Operation 0.23bn Customer Accounts 10,454 88,173 2015 2016 26
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
Q & A 28
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