Company Overview 2005 Thanachart Group Thanachart Group Table of - PDF document

1 Company Overview 2005 Thanachart Group

Thanachart Group Table of Contents Thanachart Group Section 1 Section 2 Thanachart Group Financial Highlights Section 3 Summary of Hire Purchase Business Business Plan Section 4 2

3 Thanachart Group Section 1 Thanachart Group

Thanachart Group Thanachart Group Thanachart Group Milestones • Acquired by by Siam Commercial Bank in 1980, National Finance and National Finance Securities Co., Ltd. gradually transferred its HP expanded into a financial business services group. to Thanachart Bank. Expanding Banking Branches from 13 branches to 66 National Finance branches. Group was awarded a Establishment of Thanachart Bank restricted bank Thanachart Bank Max Asset increased its capital Plc was awarded a license by the Management Co., in November. full commercial Ministry of Ltd. and NFS banking license Finance (MoF) Asset with 13 new Thanachart Securities with Ekachart Management Co., National Finance banking branches signed an exclusive Finance Co., Ltd. Ltd. Plc. Acquired Separation of cooperation agreement operating the shares in GS Finance & with BNP Paribas Zurich Financial banking business Asset Securities Services Group under the new Management Co., business National Finance became a name of Ltd. whose name National Finance bought back the business alliance Thanachart Bank Establishment of was changed to & Securities Co., shares of Thanachart of National PCL National National Asset Ltd. Acquired Life Assurance Finance Group by Insurance Co., Management Co., shares in from Zurich in acquiring shares Ltd. and National National Ltd. Ekachart Finance March. in National Life Life Assurance Finance & & Securities Co., Assurance Co., Co., Ltd. Securities Co., Ltd. Ltd. Ltd. 2004 2005 2002 1980 1989 1997 1998 2000 4

Thanachart Group Thanachart Group NFS the Holding Company • On a consolidated basis National Finance (NFS) As of 31/12/2005 there is no significant change. Leasing - Securities Banking Distressed Insurance Asset Asset Management Hire Purchase 99.4% 100.0% 100.0% 100.0% 100.0% 75.0% Thanachart NFS Asset Thanachart Group Thanachart Life Thanachart Bank Plc. Management Thanachart Fund Thanachart Leasing Co., Ltd. Life Assurance Assurance Management Securities Co., Ltd. 100.0% Co., Ltd. Plc. 58.5% National Leasing Co., Ltd. MAX Asset 80.0% Management 100.0% Co., Ltd. Thanachart Thanachart Leasing Insurance 2000 Co., Ltd. Co., Ltd • National Finance Plc. will change its name to Thanachart Capital Plc. This April. 5

Thanachart Group Thanachart Group Thanachart Group Business Structure National Finance Holding Company Full Licensed Bank, Automobile Hire Purchase, Corporate and Mortgage Loans, Trade Finance and Foreign Exchange, Deposits, and Financial Advisory Services. Brokerage, Research, Underwriting, and Financial Advisory Services Mutual fund, Private Fund, and Provident Fund services. Various types of non-life insurance such as motor insurance, fire and household insurance, marine and cargo insurance etc.. Various plans of life insurance such as Group Life Insurance Endowment Plan, Whole Life Plan etc.. Max Asset Management Co., Ltd. Purchase and management of distressed assets . NFS Asset Management Co., Ltd. 6

Thanachart Group Thanachart Group Thanachart Group Staff Thanachart Group Staff (end of 2005) • Thanachart Group is increasingly moving towards 6000 a commission based compensation scheme to reduce and control 5000 expenses, provide incentive to sell the group’s products, 4000 and to create an active culture of salesmanship. 3000 2000 1000 0 2000 2001 2002 2003 2004 2005 Commission Salary based Commission based Based 29% Salary Based 71% 7

Thanachart Group Thanachart Group Shareholding Structure Top Ten Major Minority Shareholders Shareholders 50.65% • Thanachart is owned by a 49.35% diverse range of foreign investors, mostly institutional. Total of 14,841 Shareholders • Thanachart has been listed on the Stock Exchange of Thailand since 1982. Top Ten Shareholding (as of Jan 2006) Holding 1. Com-link Co., Ltd. 10.00% 8.99% 2. State Street Bank and Trust Company 6.70% 3. Korat Thani Co., Ltd. 4. Thai NVDR Co., Ltd. 5.91% 4.65% 5. Morgan Stanley & Co. International Limited 4.50% 6. Chase Nominees Limited 42 7. MBK Plc. 2.85% 8. Clearstream Nominees Ltd. 2.79% 9. HSBC (Singapore) Nominees PTE Ltd. 1.53% 10. Investors Bank and Trust Company 1.43% Total 49.35% 8

9 Thanachart Group Financial Highlights Section 2 Thanachart Group

Thanachart Group Thanachart Group Financial Highlights Improving Performance Auto Hire Purchase Loans Net Interest Income THB MN THB MN • Thanachart has been able to 121,251 capitalize on the current 6,508 125,000 5,784 operating environment to 6,000 100,000 grow loans and income. 88,874 4,425 75,000 61,923 4,000 3,000 2,940 2,419 50,000 33,276 1,486 2,000 25,000 15,533 5,774 0 0 0 1 2 4 3 0 2 3 1 4 0 0 0 0 0 0 0 0 0 0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 0 2 2 5 Source Company Data Source Company Data Pre-Provision Profit Net Profit THB MN THB MN 5,70 4,000 6,000 5,670 3,10 3 2,983 4 2,669 5,000 3,000 3,815 4,000 1,723 3,618 2,000 3,000 2,612 550 1,000 2,031 2,000 0 1 2 3 4 0 1,000 0 0 0 0 0 5 0 0 0 0 0 0 -1,000 2 2 2 2 2 0 2 0 -1,453 -2,000 5 0 3 4 1 2 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 Source Company Data Source Company Data 10

Thanachart Group Thanachart Group Financial Highlights Financial Ratios ROA ROE % % • Since the financial crisis, 14.46% 2% 1.83% 13.83% 15% 13.96% financial ratios at Thanachart 1.69% 1.50% 1.54% Group have consistently 9.82% improved. 10% 1% 0.60% 5% 3.39% 0% 2000 2001 2002 2003 2004 2005 0% 2000 2001 2002 2003 2004 2005 -1% -5% -2% -8.91% -1.94% -10% Source Company Data Source Company Data EPS Net Profit Margin % Baht 35% 3 2.33 2.24 21.22% 25% 20.41% 19.29% 2.00 18.47% 2 15% 1.29 7.30% 5% 1 0.41 -5% 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 -1 -15% -1.09 -25% -23.12% -2 Source Company Data Source Company Data 11

Thanachart Group Thanachart Group Financial Highlights Strengthened Asset and Capital Profile NPLs / Total Loans LLR / NPLs % % • Thanachart has also been 30% 80 able to strengthen its asset 29.47% 68.7 68.5 and capital profile. 62.9 60 18.11% 20% • The Group’s NPLs ratio has 13.40% been significantly decreasing 40 35.4 after the crisis. 9.65% 8.59% 10% 19.6 6.20% 16.0 20 0 0% 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Source Source Company Data Company Data Source Company Data BIS Ratio Equity / Asset % % 20% 18.6% 25% 1.0% 16.8% 0.8% 20% 14.7% 0.8% 15% 1.3% 1.2% 1.3% 15% 11.8% 11.6% 10.3% 10% 20.8% 10% 20.1% 16.5% 12.0% 13.0% 12.9% 5% 5% 0% 2000 2001 2002 2003 2004 2005 0% 2000 2001 2002 2003 2004 2005 Tier 1 Tier 2 Source Company Data Source Company Data 12

Thanachart Group Thanachart Group Financial Highlights Revenue Breakdown (Consolidated) Million Baht 2000 2001 2002 2003 2004 2005 1,486 2,469 2940 4,425 5,784 6,508 Net Interest Income Share of Profits from Investments in (60) 1 120 215 157 192 Associated Companies Under Equity Method - Net 1,097 798 1,390 1,806 590 240 Gains on Investment / Trading in Securities 562 309 526 973 1,105 902 Fees & Charges - - 208 303 386 518 Discounted Income on Insurance Premium Gains on Debt Settlement - 452 396 769 1,188 469 Insurance Premium Income - - 324 455 684 1,770 Gains on Property Foreclosed - - 122 331 169 249 Other Income 546 791 512 430 670 811 Total 3,631 4,820 6,538 9,707 10,733 11,659 13

Thanachart Group Thanachart Group Financial Highlights Subsidiaries Performance (Baht Million) % of Holding 2004 2005 Thanachart Bank Plc. 99.4% 550.9 361.7 Thanachart Securities 100.0% 291.5 120.9 Thanachart Fund Management 75.0% 64.7 36.3 Thanachart Insurance 80.0% 55.2 57.5 Thanachart Life Assurance 100.0% (56.7) 100.9 NFS-AMC 100.0% 285.4 576.1 MAX-AMC 58.5% 497.9 73.2 Total 1,688.9 1,326.6 14

Thanachart Group Thanachart Group Financial Highlights Position in the Market (Banking Sector) Assets Size ( as of 31 Dec 2005) (Million Baht) 1,600,000 Thanachart is a small to medium sized bank with a 1,400,000 niche in consumer finance and retail 1,200,000 lending. With about 3% market 1,000,000 share, the target is Thanachart ranked 9th (small-> medium sized bank) 5% market share within the next 3 800,000 years. 600,000 400,000 200,000 0 BBL KTB KBANK SCB TMB BAY SCIB BT NFS UOB SCBT TISCO 15

Thanachart Group Thanachart Group Financial Highlights Thanachart Group Assets (Consolidated) • Thanachart has steadily Million Baht 2000 2001 2002 2003 2004 2005 grown its assets since the Total assets 85,444 98,724 125,486 167,675 185,044 228,073 financial crisis. Growth 33% 16% 27% 34% 10% 23% 250,000 228,074 200,000 185,044 167,675 150,000 125,486 100,000 98,724 85,444 50,000 0 2000 2001 2002 2003 2004 2005 16