Bangkok Commercial Asset Management Year-end 2019 Presentation - - PowerPoint PPT Presentation

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Bangkok Commercial Asset Management Year-end 2019 Presentation - - PowerPoint PPT Presentation

Confidential Bangkok Commercial Asset Management Year-end 2019 Presentation March 2020 0 Disclaimer You must read the f ollowing bef ore continuing . The conf idential inf ormation f ollowing this page, the oral presentation of such inf


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Confidential

Year-end 2019 Presentation

Bangkok Commercial Asset Management

March 2020

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Disclaimer

You must read the f ollowing bef ore continuing. The conf idential inf ormation f ollowing this page, the oral presentation of such inf ormation and other materials distributed at, or in connection with, the presentation (the "Presentation") is f or inf ormation purposes only , and does not constitute or f orm part of any offer or inv itation to sell or the solicitation of an off er or inv itation to purchase or subscribe f or, or any offer to underwrite or otherwise acquire any securities of Bangkok Commercial Asset Management Public Company Limited (the “Company”) or any other securities, nor shall any part of the Presentation or the f act of its distribution or communication f orm the basis of, or be relied on in connection with, any contract, commitment or inv estment decision in relation thereto in Thailand, Singapore, the United States, China, Japan or any other jurisdiction. This Presentation has been prepared solely f or inf ormational use and made av ailable to y ou on a strictly conf idential basis, and may not be taken away , reproduced, ref erred to publicly or redistributed in whole or in part to any other person. By attending this presentation and/or reading this Presentation, y ou are agreeing to be bound by the f oregoing and below restrictions. Any f ailure to comply with these restrictions may constitute a v iolation of applicable securities laws. If y ou are not the intended recipient of this Presentation, please delete and destroy all copies immediately . This Presentation is conf idential, and all contents of this Presentation are to be kept strictly conf idential. This Presentation is intended only f or the recipients thereof , and may not be copied, reproduced, retransmitted or distributed by a recipient to any other persons in any manner, or used or relied upon by any party f or any other purpose. Neither this Presentation nor any of its contents may be disclosed, distributed or used f or any other purpose without the prior written consent of the Company. By accepting deliv ery of this Presentation, y ou agree that y ou will promptly return, delete or destroy this Presentation to the Company upon the Company ’s request. This Presentation may contain f orward-looking statements that may be identif ied by their use of words like “plans,” “expects,” “will,” “anticipates,” “believ es,” “intends,” “depends, ” “projects,” “estimates” or other words of similar meaningand that inv olv e risks and uncertainties. All statements that address expectations or projections about the f uture, including, but not limited to, statements about the strategy f or growth, product dev elopment, market position, expenditures, and f inancial results, are f orward-looking statements. Forward-looking statements are based on certain assumptions and expectations of f uture ev ents. The Company does not guarantee that these assumptions and expectations are accurate or will be realized. Actual f uture perf ormance, outcomes and results may diff er materially f rom those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although the Company believ es that such f orward-looking statements are based on reasonable assumptions, it can giv e no assurance that such expectations will be met. Past perf ormance does not guarantee or predict f uture perf ormance. A number o f i mportant factors could cause actual results or outcomes to differ materially fro m those expressed in any forward -looking statement. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost ofcapital and capital availability, currency exchange rates, co mpetition fro mother co mpanies, shifts in customer demands, customers and partners, changes in operating expenses including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward -looking statements, which are based on the current view ofthe Company's management on future events. The Co mpany does not assume any responsibility to amend, modi fy or revise any forwardlooking statements, on the basis ofany subsequent developments, information or events, or

  • therwise.

The information in this Presentation has been prepared by the Company and has not been independently verified, approved or endorsed by any advisor retained by the Company. No representation or warranty, express or implied, is made as to, and no reliance, in whole or in part, should be placed on, the fairness, accuracy, co mpleteness or correctness ofthe information and opinions in this Presentation. It is not intended that these materials provide, and you may not rely on these materials as providing, a complete or co mprehensive analysis of the Company . The information and opinions in these materials are provided as at the date of this Presentation, and are subject to change without notice. None of the Company or any of their respective affiliates, directors, officers, employees, agents, advisers or representatives, makes any representation as to, or assumes any responsibility or liability with regard to, the accuracy or co mpleteness of any information contained here (whether prepared by it or by any

  • ther person) or undertakes any responsibility or liability for any reliance which is placed by any person on any statements or opinions appearing herein or which are made by the Co mpany or any third party, or undertakes to update or revise any information

subsequent to the date hereof, whether as a result ofnew information, future events or otherwise and none ofthem shall have any liability (in negligence or otherwise) for nor shall they accept responsibility for any loss or damage howsoever arising fro many information or opinions presented in these materials or use ofthis Presentation or its contents or otherwise arising in connectionwith this Presentation. This Presentation also contains certain statistical data and analyses (the “Statistical Information”) which have been prepared in reliance upon information furnished by the Company and/or third party sources for which the Company has either obtained or is in the process of obtaining the necessary consents for use. Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein . As such, no assurance can be given as to the Statistical Information’s accuracy, appropriateness or completeness in any particular context, nor as to whether the Statistical Information and /or the assumptions upon which they are based reflect present market conditions or future market performance. Moreover, any information from third party sources contained in this Presentation may not be used or relied upon by any other party, or for any other p urpose, and may not, directly or indirectly, be reproduced, disseminated or quoted without the prior written consent of such third

  • party. This Presentation does not purport to be complete description of the terms of or the inherent risks in any actual or p roposed transaction described herein.

This Presentation may not be taken or transmitted into the United States, Canada or Japan or distributed directly or indirect ly, in the United States, Canada or Japan or any other jurisdiction where it is unlawful to do so. No portion of these materials is an

  • ffer of securities for sale in the United States, Canada or Japan, or any other jurisdiction. This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country
  • r other jurisdiction where such distribution, transmission, publication, availability, or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Under the terms of any proposed offering , no

securities will be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities will be made in the United States, and the Company does not intend to register any part of a proposed offerin g in the United States.

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Contents

Section 2 : Industry Overview and Outlook Appendix A : NPLs and NPAs Management Section 1 : Business and Financial Performance

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Business and Financial Performance

Section 1

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  • NPAs management method: straight sale of assets or asset

enhancement, taking into account the expected return and cost of renovation

  • Source of NPAs: conversion from NPLs or direct purchase of NPAs
  • NPAs primarily consists of real estate assets such as commercial

and residential properties, vacant land, and hotels

  • NPAs value as of 2019:

(Unit: THB mn) 32,5881 54,4671 Gross NPAs (record at cost) Appraisal value

  • f NPAs

40.8% discount to the appraised value

NPLs and NPAs management are the columns of BAM's business

  • NPLs management method: debt restructuring or court process
  • Source of NPLs: purchased from financial institutions in Thailand

through bilateral negotiations or a bidding process

  • NPLs are mostly collateralized by real estate-related assets

which are secured by a first priority mortgage

  • NPLs value as of 2019:

Distressed debt assets (NPLs) management Properties foreclosed (NPAs) management

(Unit: THB mn) 83,621 192,189 Gross NPLs (record at cost) Appraisal value

  • f NPLs collateral

56.5% discount to the appraised value

NPAs outstanding (gross) by asset type

26.4% 1.6% 24.9% 46.1% 1.1% Vacant land Hotels Commercial properties Residential properties Movable assets (As of Y2019)

Note: 1 Excludes instalment sales 2 Unsecured NPLs are mainly NPLs that debtor has transferred all underlying collateral to repay the debt or w e purchased it at a public auction at a price below the balance of the NPLs.

(As of Y2019) Real estate Real estate & other security/collateral Other security/collateral Unsecured 2 80.0% 14.3% 0.6% 5.0%

NPLs (gross) by collateral type

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Distressed asset management—flow chart summary

BAM's principal business is to acquire and manage NPLs and NPAs

Purchase of NPLs and NPAs NPLs NPAs (including investment in securities) NPAs management NPAs disposal Cash Court enforcement process Enforcement of collateral via public auction NPAs Cash Pay by cash Pay by debt to equity conversion Debt restructuring

Settlement reached Settlement not reached Dispute settled Dispute not settled BAM successfully purchases 3rd party purchases

Sourcing

1

73.3% of total income in 2019 26.5% of total income in 2019

Pay by collateral transfer (NPAs and investment in securities)

NPLs management

2

NPAs management

3

Note

  • 1. Income from NPLs management constituted a larger portion of total income in Q1.2019, primarily due to cash payments

received from a significant debtor in the amount exceeding our cost of credit for purchase of receivables

65.2% 34.4% 0.4% NPL management NPA management Other (FY2019) 73.3%1 26.5% 0.2%

BAM total income

70.8% 28.6% 0.6% (FY2017) (FY2018)

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2019 Performance and 2020 Target

Growth (Y

  • Y)

+19.10%

+ 3,164 MB

Growth (Y

  • Y)

+26.56%

+ 2,117 MB

Growth (Y

  • Y)

+25.90%

+ 1,347 MB

19,733 MB 10,088 MB

Cash Collection Gross Profit

6,549 MB

Net Profit

2020 Target

  • Grow asset base by purchasing NPLs and NPAs from financial institutions 10,000 – 12,000 MB
  • Target Cash collection 15,000 – 17,000 MB
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Note: 1 Significant increase in cash collection for NPL in Y2019 due to the increase of cash collected from the Legal Execution Department, w hich was attributable to (i) our policy to proactively continue to collect cash from auction sales from the Legal Execution Department; and (ii) the receipt of the payment of the auction sale from the Legal Execution Department in respect of the sale of collateral assets of one significant debtor during year ended 31 December 2019

Total cash collected for NPLs Total cash collected for NPAs

3,000 6,000 9,000 12,000 15,000 2017 2018 2019 (THB mn) 9,159 10,791 14,0591 3,000 6,000 9,000 12,000 15,000 2017 2018 2019 (THB mn) 4,356 5,778 5,674

Source: Company’s MD&A

Cash Collection : Breakdown

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Financial performance – operating profitability

Proven track record evidenced by solid financial performance

Source: Company’s Financial Statements and MD&A Notes: 1 Gross profit margin is calculated from the sum of (i) total interest income (excluding interest income on deposits); (ii) gain (loss) on investment in securities – net; (iii) gain on credit for purchase of receivables; (iv) gain on sale of properties foreclosed; (v) gain on installment sales; and (vi) other

  • perating income less total interest income and further divided by the sum of (i) – (vi)

2 Net profit margin is calculated from net profit divided by the sum of (i) total interest income; (ii) gain (loss) on investment in securities – net; (iii) gain

  • n credit for purchase of receivables; (iv) gain on sale of properties foreclosed; (v) gain on installment sales; and (vi) other operating income; 3Q

2018 margin not disclosed

Revenue breakdown Cash collections Net profit and net profit margin Gross profit and gross profit margin

5,401 6,353 8,974 2,181 3,372 3,237 44 26 25 7,626 9,751 12,236 2,000 4,000 6,000 8,000 10,000 12,000 2017 2018 2019 (THB mn) NPL management NPA management Other income 4,501 5,202 6,549 59% 53% 54%

0% 20 % 40 % 60 % 80 %

3,000 6,000 9,000 12,000 2017 2018 2019 (THB mn) Net profit Net profit margin 5,981 7,971 10,088 79% 82% 83%

  • 20%
10 % 40 % 70 % 10%

3,000 6,000 9,000 12,000 15,000 2017 2018 2019 (THB mn) Gross profit Gross profit margin 9,159 10,791 14,059 4,356 5,778 5,674 13,516 16,569 19,733 2017 2018 2019 4,000 8,000 12,000 16,000 20,000 (THB mn) Cash collection from NPL Cash collection from NPA Total cash collection

1 2
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99.9 107.7 115.8 0.0 35.0 70.0 105.0 140.0 2017 2018 2019 (THB bn)

Financial performance – balance sheet

Credit for purchase of receivables (net NPL) Properties foreclosed (net NPA) Total assets Total shareholder's equity

72.9 75.4 77.4 0.0 25.0 50.0 75.0 100.0 2017 2018 2019 (THB bn) 17.7 20.6 23.9 0.0 6.0 12.0 18.0 24.0 2017 2018 2019 (THB bn)

Source: Company’s Financial Statement and MD&A .

41.1 41.8 37.1 0.0 20.0 40.0 60.0 2017 2018 2019 (THB bn)

Growth in asset based and yield played company

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Financial performance –profitability and leverage

ROAA ROAE Total liability-to-equity ratio1

Source: Company’s Financial Statement and MD&A Notes: 1 Total liability divided by shareholders' equity

Interest-bearing debt to equity ratio

56.9 57.7 75.7 41.1 41.8 37.1 1.4 1.4 2.0 0.0 0.5 1.0 1.5 2.0 2.5 0.0 50.0 100.0 150.0 200.0 2017 2018 2019 (x) (THB bn) IBD Equity IBD to equity 1.4 1.6 2.1 0.0 0.5 1.0 1.5 2.0 2.5 2017 2018 2019 (x) 4.7 5.0 5.9 0.0 2.0 4.0 6.0 8.0 2017 2018 2019 (%) 11.0 12.6 17.7 0.0 5.0 10.0 15.0 20.0 25.0 2017 2018 2019 (%)

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Financial performance – cash collection and allowances

Cash collection from NPL1 Allowance for NPL2 Cash collection from NPA3 Allowance for NPA4

Source: Company ’s Financial Statement and MD&A Notes: 1 Cash collection f rom our NPL is calculated f rom the sum of cash collection receiv ed f rom our NPL management business div ided by credit f or purchase of receiv ables – net (av erage). 2 Allowance f or NPL is calculated f rom allowance f or doubtf ul accounts of credit f or purchase of receiv ables div ided by credit f or purchase of receiv ables (bef ore deducting allowances) 3 Cash collection f rom NPA is calculated f rom the sum of cash collection receiv ed div ided by the sum of (i) properties f oreclosed – net; (ii) installment sale receiv ables-net (av erage) 4 Allowance f or impairment of NPAs to NPAs is calculated f rom allowance f or impairment of NPAs div ided by properties f oreclosed (af ter rev aluation).

8.70 7.69 7.47 0.0 3.5 7.0 10.5 14.0 2017 2018 2019 (%) 24.88 29.12 24.75 0.0 11.0 22.0 33.0 44.0 2017 2018 2019 (%) 2.97 2.47 2.04 0.0 1.3 2.5 3.8 5.0 2017 2018 2019 (%) 12.83 14.55 18.40 0.0 10.0 20.0 30.0 2017 2018 2019 (%)

3 year average of 15.26% 3 year average of 26.25%

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54.1% 55.7% 59.3% 45.9% 44.3% 40.7% 2017 2018 2019 Debentures Borrowings and Notes Payable

32% 21% 5% 42% 31% 22% 5% 42%

Well diversified and sustainable sources of funding to support business expansion

Funding breakdown Funding strengths and relationships

THB97.9bn THB99.6bn THB112.8bn 2017

Debentures Borrowing Notes payable Equity

2018

Total debt: 56.9bn 58% of sources

  • f funding2

Total debt: 57.7bn 58% of sources

  • f funding2

Sources of funding mix Strong financial position allows us to adopt flexible capital structures and financing strategies

Source: Company filing and Financial Statement Note: 1 In July 2019, w e issued THB 20,000.0mn of Debentures. These Debentures have a maturity date ranging from January 2021 to July 2034 and bear interest at a rate ranging from 2.3% to 3.9% per annum

Relationships with over 10 financial institutions allows us to have access to various sources of funding

As of 31 Dec. 19 ❑

  • Avg. funding cost of ῀3.06%1

  • Avg. Duration of ῀6 Years

40% 25% 2% 33%

2019

Total debt: 75.7bn 67% of sources of funding2

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84 327 46 133 20 0.8 3,733 4,930 1,301 1,469 32,619 789 609 525 879 42 0.2 1,831 2,618 868 764 17,317 Less than 1 year 1 to less than 2 years 2 to less than 3 years 3 to less than 4 years 4 to less than 5 years 5 to less than 6 years 6 to less than 7 years 7 to less than 8 years 8 to less than 9 years 9 to less than 10 years 10 years and above

Cash collection Acquisition cost

Large cash collections have been generated, and BAM possesses considerable outstanding balances for future cash collection Distressed debt assets (NPLs) and properties foreclosed from NPLs as of December 31, 2019 (in THB million unless specified)

Note: 1 Outstanding balance for converted properties excluding revaluation of properties foreclosed and allow ance, to reflect the actual cost of acquiring the assets

Cash collection equals c.129.61% of the acquisition cost for NPL portfolios acquired >10 years ago

 

Cash collection equals c.188.37% of the acquisition cost for NPAs directly acquired >10 years ago

375 842 1,920 3,070 5,226 4,943 5,614 26,281 5,789 7,523 141,240 12,819 10,978 10,678 12,635 15,191 13,852 8,333 18,046 5,789 6,049 108,970 Less than 1 year 1 to less than 2 years 2 to less than 3 years 3 to less than 4 years 4 to less than 5 years 5 to less than 6 years 6 to less than 7 years 7 to less than 8 years 8 to less than 9 years 9 to less than 10 years 10 years and above

Credit for purchase of receivables and converted properties foreclosed:

Cash collection/ acquisition cost (%) 2.95 7.67 35.68 100.00 124.36 Outstanding balance1

12,517 10,393 10,836 6,225 2,689

Properties foreclosed (directly purchased):

Break even

Recovery period Preparation, negotiation and restructuring period 24.30 34.40 17.98 67.36 145.64 129.61

9,341 10,648 12,551 5,495 2,854 20,005

Cash collection/ acquisition cost (%) 10.71 53.70 451.24 149.92 192.21 Outstanding balance1

663 349 0.2 890 50

15.09 47.68 8.68 203.88 188.34 188.37

437 739 32 390 194 2,261

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12.4 9.9 8.2 9.1 9.8 8.3 3.5 4.5 1.9 1.4 14.6 83.6 26.0 19.5 18.8 17.5 21.7 16.3 8.1 21.2 5.6 4.3 33.1 192.2 <1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 >10 Total

High appraisal value relative to book value

NPLs and NPAs portfolio – outstanding balance / appraisal value split by year, as of December 31, 2019 Distressed debt assets Properties foreclosed (converted from distressed debt assets)

(THB bn)

Appraisal / outstanding balance coverage % of Outstanding balance of the portfolio

2.3x 100% 2.3x 17% 3.0x 2% 3.0x 2% 4.7x 5% 2.0x 10% 2.2x 12% 1.9x 11% 2.3x 4% 2.3x 10% 2.0x 12% 2.1x 15% 0.1 0.9 0.9 1.6 2.7 1.7 2.3 1.3 1.0 1.0 5.5 19.0 0.3 1.7 1.6 2.9 4.9 3.2 4.8 3.8 2.0 2.5 12.0 39.7 <1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 >10 Total (THB bn) 2.1x 100% 2.2x 27% 2.4x 6% 2.2x 5% 3.0x 9% 1.8x 13% 1.9x 14% 1.7x 8% 2.0x 10% 2.0x 5% 1.8x 3% 2.0x 1%

Properties foreclosed (direct purchased)

0.7 0.3 0.4 0.7 0.03 0.0 0.4 0.9 0.2 0.0 2.3 6.0 1.3 0.7 0.9 1.3 0.05 0.0 1.0 3.0 0.5 0.2 7.3 16.2 <1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 >10 Total

Outstanding Balance Appraisal value

(THB bn)

Appraisal / outstanding balance coverage % of Outstanding balance of the portfolio

100% 38% 1% 3% 15% 0% 0.5% 12% 6% 7% 6% 11%

Appraisal / outstanding balance coverage % of Outstanding balance of the portfolio

2.7x 3.2x 3.8x 2.4x 3.4x 1.4x 1.7x 1.7x 2.4x 2.2x 1.9x 1.9x

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Industry overview and Outlook

Section 2

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THB107,653mn 1.6x D/E ratio SAM THB43,056mn

  • 1.2x D/E ratio

(10) 10 20 30 (2,000) (1,000) 1,000 2,000 3,000 4,000 5,000 Debt-to-equity ratio Shareholders’ equity (THB mn) IAM THB24,551mn 17.7x D/E ratio Mahanakorn: THB9,742mn 3.9x D/E ratio Sinnsuptaw ee THB6,649mn 0.9x D/E ratio LSF SWP J AMC Ayudhya RCAM Alpha Capital NFS Chayo Knight Club Rutchayothin Phethai Thanapatr

BA M 47.3% SAM 18.9% IAM 10.8% Mahanakorn 4.3% Sinnsuptawee 2.9% LSF 1.9% SWP 1.7% J AMC 1.5% Others 10.7%

Peer Ranking and Financial Figure Highlights of Top Market Players (as at 31 December 2018) Total assets of AMCs as of 31 Dec 2018

Competition Outlook: We are the largest AMC company by far to our competitors

2018 AMC industry assets THB227.7bn

50,000 3,000

Illustration on the size of the assets

Source: IPSOS report (200,000)

BAM is by far largest not only in terms of asset size but our shareholder equity based and ability to leverage in the future

#1

#2 #3 #4 #5

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  • Renovate to create more value to NPAs
  • Launch more campaigns to promote sales
  • NPAs sale via Online channel

NPAs Management

  • Shorten Negotiation Process
  • Increase Number of new TDR debtors
  • Expedite the receipt of payment from auction

sales from the Legal Execution Department

  • Debt Restructuring via Online Channel

NPLs Management

Key strategies to shorten turnaround time

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NPAs Renovation ------Budget > 600 MB per annum Before After

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NPAs Campaign

Condo House & Commercial Land Investment

  • คอนโดโดนใจ

สบายกระเป๋า

  • คอนโดกลาง

เมือง

  • บ้านสบาย
  • บ้านแบรนด์ดัง
  • บ้านสวนสุขใจ
  • ที่ดินเพื่อการ

ออม

  • ที่ดินแห่ง

อนาคต

  • BAM for SME
  • Investment

Property / Factory

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Thank you

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NPLs & NPAs Management

Appendix A

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79.8 81.7 83.6 0.0 20.0 40.0 60.0 80.0 100.0 2017 2018 2019 (THB bn)

NPLs Management

Distressed debt assets (gross NPLs)

Source: Company filing Note: 1 Before allow ance for doubtful accounts under BOT guidelines 2 Unsecured NPLs are mainly NPLs that debtor has transferred all underlying collateral to repay the debt or w e purchased it at a public auction at a price below the balance of the NPLs.

Growing assets based

Collateral values exceed acquisition cost

NPLs backed by majority real estate collateral

NPLs acquisition amounts

10,252.6 10,971.3 12,810.4 3,000 6,000 9,000 12,000 15,000 2017 2018 2019 (THB mn) (As of Y2019)

Breakdown of NPL portfolio

4% 13% 6% 14% 8% 23% 31% < THB 1 mn THB 1 - 5 mn THB 5 - 10 mn THB 10 - 50 mn THB 50 - 100 mn THB 100 - 500 mn > THB 500 mn (As of Y2019) Real estate Real estate & other security/collateral Other security/collateral Unsecured 2 80.0% 14.3% 0.6% 5.0%

NPLs (gross) by collateral type

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  • Increase Number of new TDR debtors
  • Expedite the receipt of payment from auction sales

from the Legal Execution Department

NPLs Management and Strategy

8,589.7 24,909.21 14,771.4 75,031.8 170,645.11 454,059.6 100,000 200,000 300,000 400,000 500,000 NPLs

  • utstanding

Appraisal value of collateral Claim amount NPLs

  • utstanding

Appraisal value of collateral Claim amount (THB mn)

Gross NPLs outstanding and value of collaterals as Dec'19 NPLs w ith debt restructuring NPLs w ithout debt restructuring

3.2x NPLs

  • utstanding 1.7x NPLs
  • utstanding

2.3x NPLs

  • utstanding

6.1x NPLs

  • utstanding

83.6 468.8 0.0 100.0 200.0 300.0 400.0 500.0 NPL outstanding value Outstanding claim against debtors (THB bn)

NPL outstanding value vs outstanding claim against debtors

(As of Y2019)

5.6x legal claim compared to

  • ur cost

Target per annum

3,000 Debtors THB 7,000 mn

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5,258.1 5,967.20 8,064.80 269.6 1,117.1 544.27 5,527.8 7,109.90 8,609.10 2,000 4,000 6,000 8,000 2017 2018 2019 (THB mn) From NPLs¹ From financial institutions 23.2 23.2 32.6 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2017 2018 2019 (THB bn)

NPAs breakdown

Source: Company filing Note: 1 Including assets acquired from bidding of collateral through public auction and transfer of collateral in satisfaction of debt

NPAs acquisition amounts (excluding investment in securities) NPAs outstanding (net) by region Properties foreclosed (gross NPAs) Active NPA management

Majority of assets in Bangkok and Central and Eastern Thailand

Well-diversified type of NPAs

41.8% 25.7% 14.4% 9.0% 8.2% 0.9% Bangkok and its vicinity Central and Eastern Thailand Northern Thailand Northeastern Thailand Southern Thailand Moveable properties (As of Y2019)

NPAs outstanding (net) by asset type

21.9% 1.9% 27.0% 48.3% 0.9% Vacant land Hotels Commercial properties Residential properties Movable assets (As of Y2019)