Opportunity day 4Q18 27 Feb 2019 Agenda FSMART overview FSMART - PowerPoint PPT Presentation

Opportunity day 4Q18 27 Feb 2019

Agenda FSMART overview FSMART Highlight Financial performance Business outlook

Key development 2019 2014 • Launch ‘ Boonterm intelligent kiosk’ • Listed in MAI (Paid-up Capital 400 MB) 2016 (Selling Sim card and e-KYC service) • Launched ‘ Boonterm Counter Service’ • • Established Expand to New Business 2008 “Forth Smart Trading Co.,Ltd .” - Personal Loan/Nano Finance Established • Forth Smart Service Co.,Ltd - EV motorcycle Station Launched ‘ BeWallet ’ (e-Wallet mobile application) 2008 2009 2013 2014 2015 2016 2017 2018 2019 2018 Developed Boonterm kiosk 2013 to be intelligent kiosk 2017 Spin-off from • Established Forth Corporation Pcl. “Forth Smart Digital Co.,Ltd .” 2009 • Launched ‘ BeMall ’ • Launched ‘ Boonterm kiosk’ (e-Market place) 2015 • Runner- up award “ Agritronics & Automation” • • Invested in BOX24 Co.,Ltd Launched ‘RO Water Machine’ of Thailand Embedded Product Award by TESA and ‘Weight Scale M achine’ • Invested in Forth Vending Co.,Ltd. 3 3

Our products 4

Business model 5

Business model 6

Agenda FSMART overview FSMART Highlight Financial performance Business outlook

Investment Highlight 2 million transactions per day No. of “Boonterm” was 130,053 kiosks (4.3% YoY) 23 million active subscribers Top up value Bt41,980mn (16.1% YoY) Avg. 56 Baht per transaction Unique business model Franchise system Core revenue of Bt3,339mn (7.5% YoY) Recurring income Net Profit of Bt583mn (7.4% YoY) Revenue sharing ROE of 49.3% 8

Business highlight As of Dec 2018 9 9

Our services 4.6 % 18.5% E-Wallet Money Transfer 3.0% Others 3.8% 70.1% Bill Payment Mobile Top up 10

Kiosks by region 38,412 23,237 18% 30% 19,425 15% 14,269 11% 14% 16,237 18,473 12% Total 130,053 Kiosks As of DEC 2018 As of Dec 2018 11

Boonterm Kiosks Kiosks No. by proportion 19% Business Partners Agents 81% • • 105,866 Kiosks 24,187 Kiosks • • 181 Agents 62 Partners Total 130,053 Kiosks As of Dec 2018 12

Boonterm Kiosks 13

Thailand’s prepaid mobile market Mobile Subscribers in Thailand 2018 28.8M** 41.2M* 21.2M* 76% (69 M) (91 M) 41,169,200 28,756,000 21,202,000 Postpaid 8,189,900 Postpaid 7,389,000** Postpaid 6,071,000 Prepaid 32,979,300 Prepaid 21,367,000** Prepaid 15,131,000 * Figures from the announcement of those three operators **Estimated 14

Mobile Top up value Monthly Mobile Top up value Note 1 : Top up and ARPU increase in Dec, due to decline of rainy season effect. Note 2 : Top up and ARPU slow down ,YoY, due to the following - Not focus on expanding the kiosk number. - Emphasize on relocating non-performing kiosks. 15 - External factors.

Thailand’s prepaid mobile market 22% (6,876 THB MN) OF MARKET VALUE (31,210 THB MN*) top up through FSMART’s channels 33% (23 Million) Of total prepaid subscribers (69 Million*) Use Boonterm kiosks * Estimated 16

Thailand’s prepaid mobile market 23% Channel* 8% 6% Kiosk 30% 29% 28% BANK 1% 20% 10% 12% * Estimated 17

Money Transfer value Monthly money transfer value Transaction 60,000 40,000 20,000 18

Agenda FSMART overview FSMART Highlight Financial performance Business outlook

Financial performance Total transaction value, total revenues from core business and no. of kiosks 130,109 130,053 130,053 124,653 124,653 92,082 41,980 36,175 3.5% YoY 0.6% QoQ 23,383 10,506 10,442 10,085 833 820 832 2,245 3,105 3,339 2016 2017 2018 4Q17 3Q18 4Q18 1.5% QoQ 1.6% YoY Note : Total transaction value & revenues decline, QoQ, due to slowdown of the grassroots economy. 20 -

Financial performance 2018 Revenue proportions Service proportions 80% 73% 3 % 4 % 5 % 10 % 17 % 41,980 MB 3,339 MB 21

Financial performance Usage amount by service 3% 2% 1% 1% 1.6% 1.8% 2.0% 2.4% 10,611 3.0% 12,000 100% 10,421 10,506 3.2% 10,442 3.7% 10,085 4.2% 4.3% 4.6% 11,000 215 90% 188 249 314 14.6% 15.5% 164 16.3% 441 17.5% 390 454 10,000 18.5% 475 318 80% 2.7% 1,613 1,731 3.0% 9,000 1,836 3.5% 1,475 1,931 3.7% 3.8% 70% 8,000 372 316 384 270 398 60% 7,000 50% 6,000 5,000 40% 77.9% 75.9% 74.0% 72.2% 70.1% 4,000 7,914 7,858 7,852 7,584 30% 7,324 3,000 20% 2,000 10% 1,000 0% - 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Mobile Top up Bill payment Money Transfer Mobile Top up Bill payment Money Transfer E-Wallet Others E-Wallet Others Remark : Usage Amount = Service Amount + Service Charge Note: 4Q18 Top up amount decreases due to slowdown of the grassroots economy 22

Financial performance Usage amount by service 2.30% 2.02% 1.50% 41,980 45,000 100.00% 1.70% 1.84% 4.19% 966 1.79% 90.00% 11.30% 36,174 1,760 40,000 16.94% 551 2.20% 80.00% 7,111 611 35,000 3.50% 4,073 1,470 70.00% 30,000 781 23,383 60.00% 25,000 472 431 50.00% 418 94.35% 20,000 83.40% 40.00% 73.07% 30,674 15,000 30,158 30.00% 22,062 10,000 20.00% 5,000 10.00% - 0.00% 2016 2017 2018 2016 2017 2018 Mobile Top up Bill payment Money Transfer Mobile Top up Bill payment Money Transfer E-wallet Other E-wallet Other 23

Financial performance Gross profit (THB Million) Net profit (THB Million) 732 583 708 15.5 % YoY 4.6% YoY 543 571 2.1% QoQ 420 5.1% QoQ 145 142 175 176 167 123 2016 2017 2018 4Q17 3Q18 4Q18 2016 2017 2018 4Q17 3Q18 4Q18 ROE / ROA Gross profit margin & Net profit margin ROE ROA Gross Profit Margin Net Profit Margin 25.4% 23.6% 21.2% 49.3% 49.3% 46.0% 21.0% 21.1% 20.3% 43.1% 43.1% 37.6% 18.7% 17.5% 17.5% 14.8% 17.5% 17.4% 15.5% 14.6% 14.6% 14.3% 13.9% 14.3% 2016 2017 2018 2016 2017 2018 4Q17 3Q18 4Q18 4Q17 3Q18 4Q18 Note: - Gross profit decrease due to the depreciation cost . ** The depreciation ratio to the core revenue will tend to decrease 24 from the kiosk that its useful life is 8 years

Financial performance Total assets (THB Million) Total liabilities (THB Million) 1.4% QoQ 3.1% QoQ 4,260 3,916 3,916 3,860 3,185 2,926 2,748 2,662 2,662 2,002 2016 2017 2018 3 Q 18 4 Q 18 2016 2017 2018 3 Q 18 4 Q 18 Total shareholder’s equity (THB Million) Debt to Equity & Interest bearing debt to Equity D/E IBD/E 12.8% QoQ 2.47 2.19 2.12 2.12 1,334 1.69 1,254 1,254 1,183 1,112 1.21 1.13 0.99 0.99 0.77 2016 2017 2018 2016 2017 2018 3Q18 4Q18 3Q18 4Q18 Note: - Shareholder’s equity increase QoQ due to an increase of net profit. - D/E Ratio decrease due to payment of long term loan to financial institutes 22 and the increase of shareholders' equity from net profit increased

Financial performance Financial Highlight (THB Million) 4,000 3,000 2,000 1,000 - 2014 2015 2016 2017 2018 Revenue EBITDA Net profit Year 2014 2015 2016 2017 2018 1,163 1,684 2,425 3,105 3,339 Revenue EBITDA 355 561 829 1,098 1,242 30.52% 33.31% 36.9% 35.4% 37.2% %EBITDA 153 272 420 543 583 Net Profit 13.2% 16.2% 18.7% 17.5% 17.5% %NI 0.24 0.34 0.53 0.68 0.74 EPS 0.42 0.55 0.62 0.20 0.28 DPS 79% 81% 84% 83% 82% Payout (%) 26

Agenda FSMART overview FSMART Highlight Financial performance Business outlook

2019 - Objectives To manage ARPU more than 5% of growth ARPU - Efficient kiosk spot - New services management - Customer expansion - Frequency use To move the kiosks from the location that Focus on generate low income to higher income kiosk spot Increase To increase total usage amount usage more than 10%YoY amount Develop To modify the kiosk to be intelligent kiosk; Intelligent providing selling Sim card and e-KYC service. kiosk New To expand new target of customer by launching Business 2 new businesses: Personal Loan/Nano Finance Expansion and the service station for charging/replacing battery for electric motorcycle 28

FSMART News (เปิดให้บริการ 1 เม.ย.) 29

FSMART News 30

2019 Business Plan 31

2019 Business Plan 32

FSMART 3 Years Plan Total transaction value growth Top up value growth of 20% CAGR 2021 Goals Total topup value (Mil. Baht) No. Of Kiosks 145,000 140,000 135,053 130,053 124,653 56,000 51,000 92,082 46,178 41,980 65,867 36,174 23,383 15,386 2015 2016 2017 2018 2019F 2020F 2021F 33