Investor Presentation 2 JULY 2019 The LEADER and INNOVATOR in the Pawnbroking Industry 1
AGENDA 04 05 01 02 03 Prospects, Salient Corporate Competitive Financial Business Highlights Profile Strengths Highlights Strategies & Future Plans 2
01 CORPORATE PROFILE 3
CORPORATE PROFILE • Maxi-Cash provides financial services in the form of pawnbroking, retail and trading of jewellery and branded merchandise, and secured lending. • As the leader and innovator in the pawnbroking industry , Maxi-Cash provides our customers with a modern, professional and customer- centric pawnbroking service to meet their financial needs. • Our customers enjoy a “bank - like” pawning experience where trust, transparency and reliability are the hallmarks of our services. • Maxi-Cash also provides secured lending overseas to foreign corporations through its wholly-owned subsidiary. 4
CORPORATE PROFILE • Strong Expansion & Revenue Growth 2016 2017 2018 2019 Commenced Secured Lending Business Overseas Expansion 5
CORPORATE PROFILE • Strong Expansion & Revenue Growth CENTRAL NORTH WEST EAST Bugis Ang Mo Kio (2 Locations) Boon Lay Marine Parade Pawnshops and retail outlets in 46 locations in Singapore most of which are strategically and Lucky Plaza (2 Locations) Toa Payoh Jurong East Bedok conveniently located near amenities such as People's Park Northpoint Jurong West Joo Chiat bus interchanges and MRT stations Bukit Merah Causeway point Clementi Paya Lebar Tiong Bahru Hougang Choa Chu Kang Aljunied Revenue (S$’000) Harbourfront Nex Mall Bukit Batok Tampines 250,000 Serangoon Road 203,651 Chong Pang Jurong point Pasir Ris 192,872 (3 Locations) 200,000 163,188 Boon Keng Admiralty Bukit Panjang Eunos 150,000 Holland Waterway Point Sengkang Ion Orchard Punggol Compass One 100,000 Seletar Mall 50,000 Sembawang Wisteria Mall - FY16 FY17 FY18 Marsiling 6
GROUP STRUCTURE Maxi-Cash Financial Services Corporation Ltd Aspial Capital Maxi-Cash Maxi-Cash Maxi-Cash Maxi-Cash Maxi-Cash Maxi-Cash Capital Maxi-Cash Ubi Group Property Retail Jewellery Group Investment Holding Management International (50%) (100%) (100%) (100%) (100%) (100%) (100%) (100%) 7
OUR BUSINESS - PAWNBROKING • A form of collateralised micro-loan that is regulated and licensed under the Pawnbrokers Act. • Provides customers with convenient and quick access to short- term financing with a redemption period of six months, or longer. • Our customers are walk-in individuals who pledge personal articles with our pawnshops. • As collateral for the loans extended, we typically accept jewellery such as yellow gold, white gold, diamonds and branded timepieces. 8
OUR BUSINESS - PAWNBROKING • The rate of interest we can charge on the loans (not more than 1.5% per month) is regulated by the Pawnbrokers Act. • Each pledged personal article is redeemable within the redemption period or after the redemption period if the pledged article has not been forfeited. • All unredeemed pledges are forfeited one month after we have served the notice of forfeiture on the customer. Upon a pledge being forfeited, the pledge becomes our absolute property. 9
OUR BUSINESS – SECURED LENDING • Maxi-Cash currently has loans extended to borrowers overseas. • These loans could be extended by the Group via a subscription in notes issued by such corporations, indirectly through the Group’s investment in funds which provide financing to such corporations or through a direct lending to such corporations. • These loans are typically secured by land or property- related assets. • As and when necessary, Maxi-Cash may enter into contracts or arrangements to hedge its foreign exchange exposure. 10
02 COMPETITIVE STRENGTHS 11
OUR KEY COMPETITIVE STRENGTHS Leader & Innovator Well-established brand name Skilled and qualified workforce Experienced and committed team Well-developed system of risk management Convenient and quick access to short-term financing 12
LEADER – WELL ESTABLISHED MARKET POSITION 46 We currently have 46 pawnshops and retail outlets in Singapore, most of which are strategically and conveniently located near amenities such as bus interchanges and MRT stations. store locations S$319M Our trade and other receivables has grown from approximately S$248.0 million in FY2016 to approximately S$318.7 million in FY2018. trade receivables¹ & other receivables Our business has grown in scale, as evident from the growth of our revenue S$204M from approximately S$163.2 million in FY2016 to approximately S$203.7 million in FY2018. revenue (1) Trade receivables include loans to customers 13
SKILLED AND QUALIFIED WORKFORCE & IN-HOUSE EXPERTISE Our professional and qualified staff In-house training programmes equip have the relevant knowledge to employees with essential skills and appraise pledged articles and knowledge disburse loans expeditiously One of the key growth factors of our business to date We also have in-house expertise in The high quality and short response providing repair and after-sale time of our customer service services for luxury time-pieces differentiate our services 14
STRONG TEAM & STRONG RISK MANAGEMENT: PROVIDER OF SHORT-TERM FINANCING Convenient and quick access to Experienced and committed Board Strong system of risk management short-term financing of Directors and management team • Our management team is led by our CEO, • Risk management is integral to the • As licensed pawnbrokers, we seek to Mr. Ng Leok Cheng, and assists him in the success of our business. Our focus on provide speedy, convenient and efficient daily management of our business. accuracy in the valuation and pawnbroking services for customers assessment of authenticity of pledged who need cash on short notice. • We believe the extensive experience of articles, and acquisition of jewellery, our management team, together with • Large network of pawnshops and retail watches and luxury bags enables us to their industry knowledge and in-depth outlets facilitates customer outreach by maintain our risk at minimum levels. understanding of the market, will enable providing customers with convenient us to take advantage of future market • Our focus on accurate valuation enables access to our pawnbroking services. opportunities. us to minimise price risks and determine • Knowledgeable and well-trained staff the appropriate loan amounts to be ensures that our services are provided given. expeditiously. • The strong risk management system that is in place allows us to manage our risks effectively as we expand our business. 15
03 FINANCIAL HIGHLIGHTS 16
SEGMENTAL REVENUES Revenue (S$M) • Our revenue is derived from 3 business segments 250.0 203.6 192.9 200.0 Pawnbroking 163.2 153.6 151.8 150.0 130.7 • Derived from interest income earned from providing collateral 100.0 loan services. 41.1 39.2 32.5 • Revenue in FY2018 grew 4.8% year-on-year as we gained more 50.0 market share, relocated and opened new outlets resulting in a net - increase of 1 outlet. FY16 FY17 FY18 Profit Before Tax Retail and trading of jewellery, watches and br branded mer erchandis ise 20.0 14.3 • Revenue in FY2018 grew 1.2% year-on-year due to the increased 13.3 15.0 retail and trading activities at our retail outlets. 10.8 8.8 8.8 9.6 10.0 4.5 4.5 Secured Lending 5.0 2.3 1.0 - - •Distribution income is recognised when the Group’s right to FY16 FY17 FY18 (1.1) (5.0) receive payment is established. Pawnbroking Retail & Trading • Revenue in FY2018 grew 368.4% year-on-year. Secured lending Total 17
KEY FINANCIAL RATIOS Total Debts to Total Assets (%) Consolidated Tangible Net Worth (S$’M) 80% 160.0 144.4 140.7 69% 66% 129.4 70% 140.0 63% 56% 60% 120.0 96.4 50% 100.0 40% 80.0 30% 60.0 20% 40.0 10% 20.0 0% - FY16 FY17 FY18 31-Mar-19 FY16 FY17 FY18 31-Mar-19 Trade & Other Receivables (S$’M) Total Debt to Tangible Net Worth (x) 327.8 319.3 350.0 318.7 3.00 2.38 300.0 2.50 2.18 248.0 2.16 250.0 1.80 2.00 200.0 1.50 150.0 1.00 100.0 0.50 50.0 - 0.00 FY16 FY17 FY18 31-Mar-19 FY16 FY17 FY18 31-Mar-19 18
04 PROSPECTS, BUSINESS STRATEGIES & FUTURE PLANS 19
BUSINESS STRATEGIES & FUTURE PLANS Expansion of business operations: Increase our number of pawnshops and/or retail outlets, especially in locations with room for higher market penetration. Strengthening brand recognition through brand management and marketing strategies : Continue to strengthen our “Maxi - Cash” brand name and maintain our brand leadership in Singapore through branding and marketing strategies to highlight our modern, progressive and customer-centric store concept, providing customer with a “bank - like” pawning experience where trust, transparency and reliability are the hallmarks of our services. Expanding our range of jewellery, watches and branded merchandise: Acquire wider range of products in order to keep up with rapid changes in market trends and consumer preferences. Expanding through investments, acquisitions, joint ventures and/or strategic alliances: Strengthen our market position, expand our network (whether in Singapore or otherwise), as well as expand into new businesses complementary to our current business through investments, acquisitions, joint ventures or strategic alliances. 20
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