Thitik itikorn Public ic C Comp mpany L Limite ted Motorcycle - PowerPoint PPT Presentation

Thitik itikorn Public ic C Comp mpany L Limite ted “Motorcycle Hire- Purchase Specialist” May 21 , 2019 1 Thitikorn Public Company Limited

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

I. Company Profile 3 Thitikorn Public Company Limited

Company Development  1972 Established with 1MB registered capital to provide motorcycle HP in Bangkok No.1 in terms of market share of motorcycle HP in Bangkok  1982  1991 Increased registered capital to 70 MB  1995 Acquired 99.99% of CVA to expand HP business in Central and Eastern area 2000 Initiated motorcycle 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 Listed on the SET and raised fund of 1,100 MB 2005 Issued first TK’s Thai Baht-Debenture of 745 MB   2008 4-Stars Corporate Governance Scoring appraised by Thai Institute of Directors Association (IOD) 2010 Received Company Rating A- (Stable) from TRIS   2011 Acquired Cetelem (Thailand) Co., Ltd and changed its name to “TK Debt Services Co., Ltd.” Celebrate 40 th year Anniversary  2012 TK is one of the 17 listed companies to receive an “Investors’ Choice Award” from Thai Investors Association (TIA) TK is one of the 9 Thai listed companies to be included in MSCI Small Cap Indices in November 30, 2012 4 Thitikorn Public Company Limited

Company Development  2013 Total Assets surpassed 10,000 MB for the first time 2014 First overseas operation in Cambodia, “Suosdey Finance” in Phanom Phenn  Second overseas operation in Laos, “Sabaidee Leasing” in Vientiane  2015 Established TK NGERN TAN JAI with 50 MB registered capital to provide Nano Finance  2016 TK is one of the 12 listed companies to receive an “Investors’ Choice Award” from Thai Investors Association (TIA) for the eight consecutive years from 2009 to 2016 Expanded two branches in Battambang and Siem Riep, Cambodia through Suosdey Finance.  2017 Issued TK’s Thai Baht-Debenture of 1,800 MB, 3 –years, Fixed Rate 2.71% per annum. Celebrate 45 th year Anniversary, launch “ บิน กิน เที่ยว กับ TK” Free overseas package tour for new customers. Expanded three branches in Kampong Cham, Svay rieng, Kampong Speu, Cambodia through Suosdey Finance. Established a subsidiary “Mingalaba Thitikorn Microfinance Co.,Ltd” in Myanmar 2018 Completed the process for disposal of the ordinary shares of subsidiary “TK Debt Servives Co.,Ltd”  Expand two branches in Luang Prabang and Savannakhet, Laos through Sabaidee Leasing . Plan to expand six branches in Kampong Thom, Kampot, Banteay Meanchey, Takao, Pursat and Kampong Chhnang, Cambodia through Suosdey Finance. Issued TK’s Thai Baht-Debenture of 600 MB, 3 year, Fixed Rate 2.27% per annum. Plan to expand three branches in Pakse, Xieng Khouang, Udomchai , Laos through Sabaidee Leasing. 5 Thitikorn Public Company Limited

TK Group Structure Total net portfolio of 9,000 MB Thitikorn Plc. (TK) Motorcycle hire purchase provider With 7,523 MB portfolio size Suosdey Finance PLC. C.V.A . Co., Ltd. (CVA) Debt collection servicer Motorcycle hire purchase provider with 851 MB portfolio size 99.95% 99.99% Sabaidee Leasing Co., Ltd. Chayapak Co., Ltd. (CYP) Automobile hire purchase provider Motorcycle hire purchase provider with 405 MB portfolio size with 221 MB portfolio size 80.50% 99.99% TK NGERN TAN JAI C0., Ltd Mingalaba Thitikorn Microfinance Co., Ltd Nano Finance in Thailand Micro Finance Subsidiary with 0.5 MB portfolio size in Myanmar 99.99% 99.00% * As of March 31, 2019 6 Thitikorn Public Company Limited

Success Factors No.1 in motorcycle HP in Bangkok since 1982  Proven Track Record  Most recognizable brand by motorcycle dealers & customers Reputable major shareholders - Dr.Chumpol Phornprapha & Families   Proven management with market expertise more than four decades in HP industry  Never been an NPL with any financial institutions since founded  Large valuable database of over 3,000,000 customers  Extensive & nationwide outlets with 93 branches in 57 provinces of Thailand  Regional extensive 9 branches in Kingdom of Cambodia and Lao PDR  Consistently provide HP service during any economic condition Solid Capital Base : 5,049.0 million baht  Solid Financial Position  D/E ratio of 1.1 times : average D/E of financial sector is 7.7 times  Abundant credit line from the leading financial institutions with favorable terms & conditions  85.2 % of Total Assets are income generating assets High quality motorcycle HP portfolio with 4.4 % NPL  Very conservative accounting policy : recognized full amount of commission on  day one  Stringent loan provision : reserve full amount of the whole contract value A - rating by TRIS  7 Thitikorn Public Company Limited

II. Industry Overview 8 Thitikorn Public Company Limited

Thailand Motorcycle Sales Motorcycle sales reached a (Units) BMA Provincial Area 2,400,000 new record high for two consecutive years in 2011 2,200,000 2,125,646 2,001,244 2,004,000 and 2012 2,000,000 1,846,005 1,810,856 1,788,459 21% 1,738,254 19% ~1,720,000 1,800,000 (-3.8%) 23% 1,699,218 1,671,237 Q4 21% From 2013 to 2015 sales 1,600,000 422,265 25% 23% 25% continue to decline for three 24% 26% 1,400,000 consecutive years due to 81% 1,200,000 slow down in economic Q3 79% 79% 431,447 77% 77% activities 76% 1,000,000 74% 75% 75% Q2 800,000 469,649 586,714 582,662 600,000 Motorcycle sales 2018 26% decreased by 1.2% to 400,000 Q1 Q1 1,788,459 units and continue 462,205 200,000 465,098 to expand in 2018 for three 74% 0 consecutive years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(4M) Source : Thailand Motorcycle Hire Purchase Association, AP HONDA 121,646 120,457 (Apr) (Apr) 9 Thitikorn Public Company Limited

Monthly Motorcycle Sales Motorcycle sale declined for (Units) 2016 2017 2018 2019 19 consecutive months from 200,000 May 2013 to November 2014. 188,890 190,000 184,459 Motorcycle sales increased for 4 consecutive months 180,000 179,533 from December 2014 to 175,814 167,854 170,000 March 2015 168,500 164,577 165,646 156,758 160,585 164,059 160,000 156,890 155,090 153,063 161,997 155,540 150,533 155,996 2016 Automobile monthly 150,000 155,090 145,648 sales, 5 out of 12 months 145,431 140,504 147,225 147,912 137,292 were higher than previous 145,419 137,304 140,000 139,313 year 137,619 134,053 135,583 131,751 130,000 131,531 127,331 121,616 123,087 126,190 120,000 2019 Motorcycle monthly 124,667 120,457 sales, 1 out of 4 months 110,000 were higher than previous 105,582 100,000 year, 4M 2018 Motorcycle Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec sales decreased by 0.7% 10 Thitikorn Public Company Limited

Motorcycle Hire Purchase in BMA TK estimate that cash (Units) sales portion remain at HP financing in BMA2 Cash sale in BMA 500,000 460,676 35-40% due to tighten 456,367 449,643 457,782 436,815 450,000 lending policy from HP operators in the first half 395,190 Q4 400,000 379,565 367,779 378,645 106,187 364,969 of 2015 353,149 350,000 328,749 Q3 300,000 113,439 49% 54% 250,000 78% 71% 61% Q2 200,000 117,643 152,121 147,642 150,000 51% 100,000 Q1 46% Q1 119,098 121,383 39% 29% 50,000 22% 0 28,544 30,738 Source : Thailand Motorcycle Hire Purchase Association (Apr) (Apr) * Ratio H1 Year 2012 => Cash sale in BMA 49% , HP financing in BMA 51% BMA : Bangkok and Metro Area 11 Thitikorn Public Company Limited

Category : Automatic 12 Thitikorn Public Company Limited

Category : Family Spark LX 13 Thitikorn Public Company Limited

Category : Sport/ F-Sport Legend 200 14 Thitikorn Public Company Limited

Motorcycle by Category (Units) Scooter Family Sport 2,400,000 2,125,646 2,200,000 2,001,244 2,004,000 4% 2,000,000 1,810,856 3% 1,846,005 7% 1,788,459 1,741,749 1,699,218 1,738,254 1,800,000 3% 1,671,237 3% 15% 13% 1,595,305 1,553,561 11% 1,600,000 17% 3% 4% 19% 1,400,000 48% 48% 49% 46% 40% 1,200,000 51% 52% 50% 50% 48% 46% 1,000,000 50% 800,000 600,000 51% 46% 49% 294,351 48% 400,000 45% 47% 39% 44% 35% 36% 35% 35% 10% 200,000 53% 37% 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(2M) Source : Thailand Motorcycle Hire Purchase Association, AP HONDA 15 Thitikorn Public Company Limited