Opportunity day 1Q2020 26 May 2020 1 Agenda Business Overview and - - PowerPoint PPT Presentation

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FSMART

Forth Smart Service PCL

Opportunity day 1Q2020 26 May 2020

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Agenda

Business Overview and Highlights Business Direction 1Q2020 Operating Results

0.42 0.55 0.62 0.66 2.2% 3.1% 10.6% 10.3%

0.2 0.4 0.6 0.8 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2016 2017 2018 2019 Dividend per Share Dividend Yield 3

Key Information

• Registered Capital

Bt400mn (800 Million Shares)

• Market Capitalization

Bt4,440mn or Bt5.55 per Share (As at Mar 25, 2020)

• PE Ratio

7.52 (As at Mar 25, 2020)

• CGR 2019
• Dividend

Policy: Not Less than 40% Net Profit

Shareholding Structure (As of Mar 6, 2020)

• Major Shareholders
• Free Float (Ex. Funds)

FORTH 49.52% Amatanon Family 6.67% FSMART (Treasury Stock) 3.46% Funds (Foreign/Local) 4.12% 36.23%

• Dividend Yield Based on the Closing Price as of the Performance Period of Dividend Declaration

Dividend & Yield

Year

2017 2018 2019 1Q20

Revenue (Bt mn) 3,105 3,339 3,147 729 Net Profit (Bt mn) 543 583 584 127 EPS 0.68 0.74 0.75 0.16 IBD/E 1.13 0.99 0.70 0.78

FSMART Overview: High Dividend Yield with Strong Balance Sheet

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Forth Smart Distribution* Forth Smart Service Forth Smart Trading Forth Smart Digital

99.99%

FSMART Overview: New Group Structure

99.99% 99.99% 99.99% 99.99%

* New Subsidiary Company

99.99%

*

Customers Boonterm Kiosks Service Operators

Use services at Boonterm Kiosks Provide services to Boonterm Kiosks A Platform to Connect Customers and Service Operators with Total of 130,357 Boonterm Kiosks owned by FSMART

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FSMART Is a Platform Delivering Convenience

• 23 Million Active Subscribers
• 1.7 Million Transactions per Day

As of Mar 2020

Pay commission to FSMART Pay service charge to FSMART

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Comprehensive Range of Services at the Kiosk

As of Mar 2020

85

8 15 10 6 6 13 1 1 20 5

Mobile Top Up 59%

Money Tranfer 25%

E-Wallet 8% Bill Payment 4% VAS 2% Others 2%

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Total 130,357 Kiosks

The Undisputed Leader in Coverage and Number of Service Points

NORTH 17 % CENTRAL 17 % NORTHEAST 29% BKK Metro 14 % SOUTH 13 % EAST 10% NORTHEAST

38,276 Kiosks

NORTH

21,737 Kiosks

CENTRAL

22,748 Kiosks

BANGKOK Metropolitan

18,060 Kiosks

SOUTH

16,309 Kiosks

EAST

13,227 Kiosks

Source: BOT, Public Company and Post Office Reports, and FSMART Analysis

FSMART’s Dominant Banking Agent Network Boonterm Kiosks’ Proportion in 1Q2020

• Over 85% of Boonterm kiosks

is outside Bangkok Metropolitan Boonterm Kiosk, 130,357 No.1 Convenience Store, 11,983 No.1 Coffee Shop, 3,150 No.1 Post Office, 1,350

As of Mar 2020

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Mom and Pop Shop 67,748 Residence 31,849

Convenience Store

13,415 Office Building 5,811 Service Business Area 3,068 Educational Institution 1,878 Petrol Station 1,655 Temple 1,488 Market 1,208 Department Store 1,315

Government Office 608

Transportation Station

314

Deep Penetration to the Grassroots Level

As of Mar 2020

• Over 75% of Boonterm kiosks Locates at Mom and Pop Shop and Residence

10.3% 4.5% 2.4% 1.4% 1.3% 1.1% 0.9% 1.0% 0.5% 0.2% 52.0% 24.4%

Sustainable and Recurring Business Model

FSMART AGENT

• Listed Company
• Provide superior hardware

and IT services

• 170 Agents, 70 Partners
• Identify best locations
• Manage daily groundwork operation

Revenue Sharing

Commission from Operators Service Charge from Customers

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Over 51 Million “Cash Society” People to Serve

• Thailand Population: 17 Million Cashless Society People vs 51 Million Cash Society People
• 5% p.a. Growth Rate in Both Revenue and Saving Account Numbers

Main Customers – 21 mn People

• 9 mn People: Rev/mth < Bt9,400 with Saving < Bt3,200
• 12 mn People: Rev/mth < Bt6,900 with Saving < Bt500

Secondary Customers – 30 mn People

• Rev/mth < Bt3,700 with No Saving

Cashless Society – 17 mn People (Higher Revenue and Saving)

Source: Deposit Protection Agency, NESDB, BOT, FSMART Analysis

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Business Highlights

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• No. 1 Online Top-Up and Payment Operator
• No. 1 Banking and Lending Agent
• No. 1 Agent Network for Distribution Business
• 130,357 Boonterm Kiosks
• 23 Million Active Subscribers
• 9,632 Million Baht for Total Transaction Value
• 1.7 Million Transactions/day
• 6 Commercial Banks
• 95 Million Baht of Lending Outstanding with 0.3% NPL
• 1.4 Million Transactions/month

Undisputed Number 1 Automated Service Platform Operator in Thailand

• 3,794 Vending Machines
• 170 Agents and 70 Partners
• 88,080 Cans/day

As of Mar 2020

• 85 Services

• 2,000

4,000 6,000 8,000 10,000 12,000 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 2014 2015 2016 2017 2018 2019 2020 13

24,859

Kiosks

65,867

Kiosks

92,082

Kiosks

124,563

Kiosks

130,053

Kiosks

130,481

Kiosks

132,000

Kiosks(Target)

2014 2015 2016 2017 2018 2019 2020(F)

Bt mn

Bt 9,632 mn in 1Q19

• Avg. Bt 105.85 mn per day

Quarterly Total Transaction Value – Affected by Covid-19

Actual Forecast Actual in 1Q19 ARPU > 6M Operating Kiosks

53% 47%

4Q19

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Value Share and Leading Position Maintained despite Growing in Competitions

Prepaid Market Value Value Share by Channels Total Kiosk Numbers

Source: Mobile Operators Public Information (MD&A), Industry Information, and FSMART Analysis

Number of Kiosk Share

26% 26% 48%

4Q19

Kiosk

Bt30,992mn

Others Mobile Banking and App

246,374 Kiosks

Boonterm Others 26% 21% 53%

1Q20

Kiosk

Bt28,191mn

Others Mobile Banking and App

51% 49%

1Q20

256,357 Kiosks

Boonterm Others

516 5,063 12,488 19,042 28,615 2017 2018 2019 2020F 2021F

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Depreciation Saving Expected Going onward

24.4

Accumulated Fully Depreciated Kiosks Number Depreciation Costs Saving (Bt mn)

27.3 28.1

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Money Transfer Transaction Number Expect to Grow Significantly in 2020

Actual Transfer Value in 4Q19 Forecast Transfer Value Transactions Bt mn

40,045 68,332 166,810 318,226 439,968 602,638 723,983 846,320 821,548 891,968 925,191 975,436 954,173 983,456 1,159,351

1,407,181 500,000 1,000,000 1,500,000 2,000,000 1,000 2,000 3,000 4,000 5,000

2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Actual Transfer Value Monthly Transaction Number at the End of Quarter

(Total 6 Banks) (KTB&KBANK&BAY)

1,407,181 Transactions per Month in 1Q20

44.3% YoY 21.4% QoQ 1Q20: 10.5% YoY 0.8% QoQ

Quarterly Beverage Sales Growing Continuously

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3,497 Vending Machine 1,908 Vending Machine 1,582 Vending Machine

2018 2019 2020(F) 2017

0.5 0.8 1.1 1.1 1.2 1.3 1.4 1.6 1.7 1.9 2.0 2.2 2.3 0.0 0.5 1.0 1.5 2.0 2.5 .0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

3,794 Vending Machine Beverage Sales Bt87.96mn per Quarter

* Average Price 13-15 Baht/Can

Beverage Sales (Bt mn) Actual Beverage Sales (Bt mn) in 1Q20 Forecast Beverage Sales (Bt mn)

• No. of Beverage Sales (Cans)

Bt mn

4,000 – 5,000 Vending Machine (Target) 7.11% QoQ 39.82% YoY

Million Cans per Month

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Covid-19 Situation

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Government Supportive Measure in Q2/2020

A Free Voice Package A Free Data Package A Decrease of Electricity Charge

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Supportive Measures by FSMART

Temporary Credit to Boonterm Agents Personal Loan Installment Relief

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• Free Covid-19 Insurance from FSMART
• Offering Covid-19 Insurance package for 10 Baht

Supportive Measures by FSMART

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Supportive Measures by FSMART

• Guarantee no layoff for all FSMART employees
• Support employees with necessary equipment

to work from home Our Employees

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Supportive Measures by FSMART

โครงการถุงบุญเติม ปันน ้าใจ ผู้ประสบภัยโควิท-19 (Pay It Forward Project by Boonterm)

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Agenda

Business Overview and Highlights Business Direction 1Q2020 Operating Results

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New Normal Implication to FSMART Business

฿

New Normal

 Individual Entertainment (การใช้ความบันเทิงส่วนบุคคล) Online Streaming (บริการบันเทิง Streaming)  Social Distance Practice (ระมัดระวังและมีระยะห่างในสังคม) Automated Kiosk (บริการอัตโนมัติ)  Decrease in Purchasing Power (รายได้ลดลง ต้องประหยัดใช้จ่าย) Infrastructure Services (เน้นใช้จ่ายบริการพื้นฐาน)  More Health Conscious (ใส่ใจสุขภาพมากยิ่งขึ้น) Insurance and Health-related Service (ประกันชีวิต สุขภาพ)

New Behavior New Economy

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The New S-Curve: Strengthen Core Business while Leverage Leading Position to New Opportunities

• 1. Online Top-up & Payment

Business

• 2. Banking Agent & Lending

Business

• 3. Distribution Platform

Business

 Adding banks to the ecosystem  e-KYC  Deposit and Withdrawal  Lending (Bt400-600mn Loan in 2020)  Adding Services  SIM Card Distributors  Location Management

 Vending Business

(4,000 – 5,000 Locations in 2020)  Petrol Kiosk (2,000 Locations in 2020)  EV Charger Station  Product Distribution 709.9 713.3 690.1 667.3 613.6

1Q19 2Q19 3Q19 4Q19 1Q20

84.9 86.9 91.9 94.5 113.4

1Q19 2Q19 3Q19 4Q19 1Q20

4.0 4.1 4.8 4.8 4.9

1Q19 2Q19 3Q19 4Q19 1Q20

1Q20 Contribution

83.6% 15.7% 0.7%

CAGR -4% QoQ CAGR +8% QoQ CAGR +5% QoQ

Online Top-up & Payment Business

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Insurance Services

Services and Promotion Campaign in 2020

Entertainment Services Promotion Campaign

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Banking Agent & Lending Business

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Adding Banks Adding Withdrawal Service

Increase Transaction Numbers by Adding Banks and Money Withdrawal Service

BANK

• To add at least 1 more bank
• To add withdrawal and e-KYC service to become full-service

banking agent and increase number of transactions

• Money withdrawal is 8 times more frequent than money deposit
• Emphasize on micro transaction
• Collecting fee

Source:BOT as at Mar 20 and FSMART Analysis Money deposit and transfer Money withdrawal Money deposit and transfer Money withdrawal

Money Deposit and Withdrawal

20 161

1.4 ++ Boonterm ATM

(Million Transactions/month)

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All Financial Services Account Opening Needs Full KYC

ขอภาพพี่แดง

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Further Transaction Fee Growth Expected by Becoming Full Automated Banking Agent

1,159,351 1,407,181

4Q19 1Q20 4Q20 (Target)

1.16 mn

40-45% from 2019

1.41 mn

2021F

Average Transaction Number per Month

eKYC

Money Withdrawal Banking Agent

++

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Lending Business to Grow to Bt400-600mn Credit Line in 2020

89 140 500 74 95 4Q19 1Q20 2020F

Lending Amount (Bt mn)

Loan Amount Credit Outstanding

78,000+ Low Risk Accounts due to Business Relationship with FSMART

Personal Loan Target Customers (Phase 1)

400-600

28.4% QoQ

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Distribution Platform Business

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Vending Machines Network Management Product Distribution to Mom-and-pop Shops Petrol Kiosks

• Leverage the agents network to distribute product(s)

to mom-and-pop shops

• Target to expand 2,000 kiosks in 2020
• Monthly petrol sales of 2 mn liters
• All machines can provide top-up & payment

services

• To collaborate with partner on petrol sourcing
• Target to expand 1,000-2,000 vending machines in

2020, from current 3,700 machines

• All machines can provide top-up & payment services
• Prime locations (e.g. hospital, office buildings)

Key Distribution Services Offer in 2020

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Online Top-Up & Payment Business

New Services and New Business in 2020

Insurance products

Banking Agent & Lending Business BANK

At least 1 more Banking Agent e-KYC Service Money withdrawal Service Games & Entertainment service (Song) Product Distribution

Distribution Platform Business

Petrol and Vending Stations Vending and Coffee Machine

Sustainable Business Model for the “New Normal”

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Agenda

Business Overview and Highlights Business Direction 1Q2020 Operating Results

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7,104 6,261 5,677 215 197 209 526 730 793 398 373 369 1,917 2,070 2,424 177 155 158

1Q19 4Q19 1Q20

30,158 30,674 27,129 833 611 1,760 2,445 781 1,470 1,595 4,073 7,111 7,834 551 966 660

2017 2018 2019

Mobile Top up VAS E-Wallet Bill payment Money Transfer Others Total transaction Value

10,337 9,786 9,630 Bt mn

Remark : Usage Amount = Service Amount + Service Charge 68.7% 64.0% 59.0% 2.1% 2.0% 2.2% 3.9% 3.8% 3.8% 5.1% 7.5% 8.2% 18.5% 21.1% 25.2% 1.7% 1.6% 1.6%

1Q19 4Q19 1Q20

Mobile Top up VAS E-Wallet Bill payment Money Transfer Others

36,174 41,981 40,496 6.8% YoY 1.6% QoQ

15,8%

3.5%

Transaction Value by Service – Affected by Covid-19

Total Transaction Value decreased 6.8% YoY, but money transfer transactions in 1Q20 were 1.41 mn transactions per month, increasing 44.3% YoY

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Financial Performance – Affected by Covid-19

3,105 3,339 3,147 799 764 729 2017 2018 2019 1Q19 4Q19 1Q20

Revenue (Bt mn)

4.6% QoQ 8.8% YoY

76.2% 71.1% 66.9% 2.8% 2.4% 2.5% 6.9% 9.9% 11.3% 1.1% 1.1% 1.2% 10.6% 12.6% 15.8% 2.4% 2.9% 2.3% 1Q19 4Q19 1Q20

Mobile Top up VAS E-Wallet Bill payment Money Transfer Others

% Revenue by Services

• Revenue decreased due to declining in core revenue from lower customers’ purchasing power as a result of drought and Covid-19 pandemic
• However, revenue from money transfer grow 35.3% YoY to Bt 115 mn

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732 708 656 169 165 143 2017 2018 2019 1Q19 4Q19 1Q20 543 583 584 150 146 127 2017 2018 2019 1Q19 4Q19 1Q20 17.5% 17.5% 18.6% 18.7% 19.1% 17.4% Net Profit

Net Profit (Bt mn) & Net Profit Margin

Net Profit Margin Gross Profit

Gross Profit (Bt mn) & Gross Profit Margin

13.3% QoQ 15.4% YoY

Gross Profit Margin

Gross Profit & Gross Profit Margin decreased due to declining in core revenue, kiosk improvement, and fully-depreciated kiosk maintenance Net Profit & Net Profit Margin decreased due to declining in gross profit, and adoption of TFRS9 and TFRS16 (Bt 1.4 mn), but net profit has been declining less than gross profit from financial cost saving (Bt 3.9 mn)

23.6% 21.2% 20.8% 21.2% 21.6% 19.7%

15.3% YoY 13.0% QoQ

Financial Performance – Affected by Covid-19

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1,334 1,251 1,336 1,401 1,336 1,097 1,506 1,245 941 1,075 941 850 1,420 1,420 1,243 1,377 1,243 1,485 2017 2018 2019 1Q19 4Q19 1Q20

Asset (Bt mn) Liabilities and Equity (Bt mn)

Other liabilities Equity IBD 4,260 3,916 3,520 3,853 3,520 3,432 2017 2018 2019 1Q19 4Q19 1Q20

Asset decreased due to:

• Maintaining Number of Kiosks, and
• Utilizing the Fully-depreciated Kiosks.

Liabilities increased due to:

• A result of the adoption of TFRS16 (Bt 164mn).

10.9% YoY Equity decreases due to:

• Net Operating Profits, stock buyback, and dividend payment.

2.5% QoQ

Financial Performance

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43.1% 45.1% 45.2% 44.5% 45.2% 48.0% 14.6% 14.3% 15.7% 15.2% 15.7% 16.8% 2017 2018 2019 1Q19 4Q19 1Q20 ROE ROA 2.19 2.12 1.64 1.75 1.64 2.13 1.13 0.99 0.70 0.77 0.70 0.78 2017 2018 2019 1Q19 4Q19 1Q20 D/E IBD/E

ROE / ROA Debt to Equity & Interest Bearing Debt to Equity

ROA increased due to increase in Asset Utilization Efficiency ROE increased due to:

• Ability to Maintain Profitability,
• Decrease in Shareholders' Equity from stock buyback and dividend payment

Debt to Equity and Interest Bearing Debt to Equity decreased due to:

• a result of the adoption of TFRS16
• Decrease in shareholders' equity from stock buyback

Financial Performance

Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives, strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements" within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made. FSMART undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. FSMART makes no representation whatsoever about the

• pinion or statements of any analyst or other third party. FSMART does not monitor or control the content of

third party opinions or statements and does not endorse or accept any responsibility for the content or the use

• f any such opinion or statement.

FSMART Investor Relations

www.boonterm.com E-mail : investor@forthsmart.co.th

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Disclaimers