AC Group Opportunity Day FY16 27 March 2017 Group Structure AIRA - - PowerPoint PPT Presentation

▶
ac group opportunity day fy16
SMART_READER_LITE
LIVE PREVIEW

AC Group Opportunity Day FY16 27 March 2017 Group Structure AIRA - - PowerPoint PPT Presentation

Feb 10, 2024 155 likes •454 views

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.

slide-1
SLIDE 1

AC Group – Opportunity Day FY16

27 March 2017

AIRA Capital Public Company Limited

slide-2
SLIDE 2

Group Structure

2

AIRA Capital Public Company Limited (“AIRA Capital”) has incorporated as a holding company with investments mainly in financial business.

Source: Aira

AIRA Capital Plc.

  • Reg. Baht 1.79 Billion

(Listed 7 Jul 2014)

AIRA & AIFUL Plc.
  • Reg. Baht 2.5 Billion
AIRA Securities Plc.
  • Reg. Baht 1.2
Billion AIRA Advisory Co., Ltd.
  • Reg. Baht 50 Million
AIRA Factoring Plc.
  • Reg. Baht 400 Million
(Listed 25 Aug 2004) AIRA International Advisory (Singapore) Pte. Ltd.
  • Reg. SGD 500,000
AIRA Property Plc.
  • Reg. Baht 500
Million Aspiration One Co., Ltd.
  • Reg. Baht 1.0 Billion
AIRA Leasing Plc.
  • Reg. Baht 500
Million Travelex (Thailand) Ltd.
  • Reg. Baht 110 Million
AIRA Venture Capital Ltd.
  • Reg. Baht 20 Million
AIRA Asset Management
  • Reg. Baht 100 Million
30% 99.9% 99.9% 71.5% 80% 90% 60% 60% 99.9% 38% 99.9%
slide-3
SLIDE 3

Vision

3

slide-4
SLIDE 4

AC Group – Strategic Plan

4

13,917

Top 5 in non-bank financial business

Financial 75% Non- finance 25%

Diversified Portfolio

slide-5
SLIDE 5

3 Years Price Performance

5

AIRA stock outperformed both financial sector and MAI index

Source: SET

66.2% 19.1% 14.1%

slide-6
SLIDE 6

Company Highlights since 2016

6

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 1st branch at Wall Street Tower, Thaniya street CSR by cooperated with Queen Sirikit Foundation for selling local products at our branches

slide-7
SLIDE 7

Company Highlights since 2016

7

slide-8
SLIDE 8

Company Highlights since 2016 (Cont.)

8

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

  • f Wealth Management and Fund Management

Target customers  Institutions and high net-worth

slide-9
SLIDE 9

Company Highlights since 2016

9

slide-10
SLIDE 10

AC Group – FY16 Net Profit / Loss

10 FY16 Result 88.4 57.2 50.8 3.4

  • 100
  • 50

50 100 150 200 250 AC AS AF AIL

฿200m Profit before

minorities investment and JV

Source: AIRA Notes: AC = Aira Capital, AS = Aira Securities, AF = Aira Factoring, AIL = Aira Leasing

10

slide-11
SLIDE 11

AC Group – Revenue Analysis

11 0.8% 7.2% 2.7% 0.8% 2.8% 3.2% 0% 2% 4% 6% 8% 2011 2012 2013 2014 2015 2016F

Thailand GDP Growth

384.7 484.2 789.4 863.5 733.7 816.1 11.2%

  • 50%
  • 30%
  • 10%

10% 30% 50% 70% 90% 100 200 300 400 500 600 700 800 900 1000 2011 2012 2013 2014 2015 2016

Source: BOT Source: AIRA

Revenue (THB million)

FY16 revenue grew 3.5x of GDP

slide-12
SLIDE 12

AC Group – Operating Profit

12 95.4 162.5 306.8 289.3 185.9 198.9 7.0%

  • 200%
  • 150%
  • 100%
  • 50%

0% 50% 100% 150% 50 100 150 200 250 300 350 2011 2012 2013 2014 2015 2016 Operating Profit (THB million)

Source: AIRA
slide-13
SLIDE 13

AC Group – Investment

13 Investment in subsidiaries (THB million) 963 963 1,068 1,340 1,926 2,214 0.0% 0.0% 10.9% 25.4% 43.8% 14.9%

  • 50%

0% 50% 500 1,000 1,500 2,000 2,500 2011 2012 2013 2014 2015 2016 Investment in Subsidiary Growth

Source: AIRA
slide-14
SLIDE 14

AC Group – FY17 Planning and Strategies

14

  • 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

slide-15
SLIDE 15

Subsidiaries Performance

15

slide-16
SLIDE 16

AIRA Securities (AS) - Performance

16 Revenue and Net Profit (THB million)

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%)

226.6 303.9 566.0 651.5 524.7 562.5 10.5 38.9 97.9 113.8

  • 3.9

57.2

  • 100

100 200 300 400 500 600 700 2011 2012 2013 2014 2015 2016 Revenue Net Profit

slide-17
SLIDE 17

AIRA Securities (AS) – Strategies

17 Margin Loan (THB million)

1,300 1,400 1,500 1,700 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2016 2017F 2018F 2019F

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%

Source: AIRA
slide-18
SLIDE 18

AIRA Factoring (AF) – Performance

18 Revenue and Net Profit (THB million) 133.7 174.8 214.4 185.9 191.2 189.6 43.5 44.0 64.7 24.9 0.1 50.8 50 100 150 200 250 2011 2012 2013 2014 2015 2016 Revenue Net Profit

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
Source: AIRA
slide-19
SLIDE 19

AIRA Factoring (AF) – Strategies

19 Revenue by segment Factoring volume

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

Modern Trade 45% Auto 35% Others 20.0% 13,052 16,246 20,382 17,904 19,406 19,356

5,000 10,000 15,000 20,000 25,000 2011 2012 2013 2014 2015 2016

THBm

slide-20
SLIDE 20

AIRA Leasing (AIL) – Performance

20 Revenue and Net Profit (THB million)

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
Source: AIRA

67.0 58.8 62.6 64.1 63.2 68.6 0.54

  • 9.89

4.14 5 1.29 4.5

  • 20

20 40 60 80 2011 2012 2013 2014 2015 2016 Revenue Net Profit

Acquisition

slide-21
SLIDE 21

AIRA Leasing (AIL) – Strategies

21

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

Operating Lease, Financial Lease and Hire Purchase

slide-22
SLIDE 22

AIRA Property (AIP)

22 ASPIRATION ONE Project (ASP1)

Source: AIRA
  • 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

REIT

ASP1 + ASP2 + ASP3 + ASP4

  • Rental rate : THB900 / sqm. (approx.)
  • Occupancy rate : 95% in 1 year
  • IRR : 9-10%
slide-23
SLIDE 23

AIRA Venture Capital (AVC)

23

Source: SCG Logistics

5 new S-curve industries

5 existing industries with high potential

Focus on 10 industries in Thailand 4.0 policy

slide-24
SLIDE 24

Joint Ventures Performance

24

slide-25
SLIDE 25

AIRA & AIFUL (A&A) – Performance

25 Investment Highlights

Source: AIRA, A-money branch at MRT Asoke
  • “A-Money” branding = Money Buddy for 1st jobber
  • Current customer at 100,000 accounts (Feb 2017)
  • FY17 budget, customers at 300,000 accounts
  • Target IPO on 2019
slide-26
SLIDE 26

1.5bn 0.23bn

Loan Portfolio

Customer Accounts 10,454 88,173

AIRA & AIFUL (A&A) – Performance

26 Investment Highlights

Start Operation 2015 2016

slide-27
SLIDE 27

Travelex (Thailand) Limited

27

Source: Contactdir.uk

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

slide-28
SLIDE 28

28

Q & A