Forth Smart Service PCL FSMART Opportunity day 1Q2020 26 May 2020 1
Agenda Business Overview and Highlights Business Direction 1Q2020 Operating Results 2
FSMART Overview: High Dividend Yield with Strong Balance Sheet Year 2017 2018 2019 1Q20 Key Information • Revenue (Bt mn) 3,105 3,339 3,147 729 Registered Capital Bt400mn (800 Million Shares) Bt4,440mn or Bt5.55 per Share • Market Capitalization Net Profit (Bt mn) 543 583 584 127 (As at Mar 25, 2020) • PE Ratio EPS 0.68 0.74 0.75 0.16 7.52 (As at Mar 25, 2020) • IBD/E 1.13 0.99 0.70 0.78 CGR 2019 • Dividend Policy: Not Less than 40% Net Profit Dividend & Yield 10.6% 10.3% Shareholding Structure (As of Mar 6, 2020) 12.0% 0.8 10.0% • Major Shareholders 0.6 FORTH 49.52% 8.0% 6.0% 0.4 Amatanon Family 6.67% 3.1% 2.2% 4.0% 0.2 FSMART (Treasury Stock) 3.46% 2.0% 0.42 0.62 0.66 0.55 0.0% 0 Funds (Foreign/Local) 4.12% 2016 2017 2018 2019 Dividend per Share Dividend Yield • 36.23% Free Float (Ex. Funds) • Dividend Yield Based on the Closing Price as of the Performance Period of Dividend Declaration 3
FSMART Overview: New Group Structure Forth Smart Service 99.99% 99.99% 99.99% 99.99% Forth Smart * Forth Smart Trading Distribution* 99.99% 99.99% Forth Smart Digital * New Subsidiary Company 4
FSMART Is a Platform Delivering Convenience Customers Service Operators Use services Provide services at Boonterm Kiosks to Boonterm Kiosks Pay service charge Pay commission to FSMART to FSMART 23 Million Active Subscribers 1.7 Million Transactions per Day Boonterm Kiosks A Platform to Connect Customers and Service Operators with Total of 130,357 Boonterm Kiosks owned by FSMART As of Mar 2020 5
Comprehensive Range of Services at the Kiosk 85 13 8 15 1 10 1 6 20 6 5 VAS Others Bill Payment 2% 2% 4% E-Wallet 8% Mobile Top Up Money Tranfer 59% 25% As of Mar 2020 6
The Undisputed Leader in Coverage and Number of Service Points Total 130,357 Kiosks NORTH Boonterm Kiosks’ Proportion in 1Q2020 21,737 Kiosks NORTHEAST 38,276 Kiosks NORTHEAST 29% CENTRAL 17 % NORTH 17 % CENTRAL BKK Metro 14 % 22,748 Kiosks • Over 85% of Boonterm kiosks SOUTH 13 % is outside Bangkok Metropolitan EAST EAST 10% 13,227 Kiosks BANGKOK Metropolitan FSMART’s D ominant Banking Agent Network 18,060 Kiosks Boonterm Kiosk, 130,357 SOUTH No.1 Convenience Store, 11,983 16,309 Kiosks No.1 Coffee Shop, 3,150 No.1 Post Office, 1,350 Source: BOT, Public Company and Post Office Reports, and FSMART Analysis As of Mar 2020 7
Deep Penetration to the Grassroots Level • Over 75% of Boonterm kiosks Locates at Mom and Pop Shop and Residence 10.3% Convenience Store 13,415 Office Building 4.5% 5,811 Service Business 2.4% Residence Area 3,068 24.4% 31,849 Educational Institution 1.4% 1,878 1.3% Petrol Station 1,655 Temple 1.1% 1,488 0.9% Market 1,208 1.0% Department Store Mom and Pop Shop 52.0% 1,315 67,748 0.5% Government Office Transportation Station 608 314 0.2% As of Mar 2020 8
Sustainable and Recurring Business Model Revenue Sharing FSMART AGENT Commission from Operators Service Charge from Customers • • Listed Company 170 Agents, 70 Partners • • Provide superior hardware Identify best locations • and IT services Manage daily groundwork operation 9
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 Cashless Society – 17 mn People (Higher Revenue and Saving) Secondary Customers – 30 mn People • Rev/mth < Bt3,700 with No Saving Source: Deposit Protection Agency, NESDB, BOT, FSMART Analysis 10
Business Highlights 11
Undisputed Number 1 Automated Service Platform Operator in Thailand No. 1 Online Top-Up and Payment Operator 130,357 Boonterm Kiosks 9,632 Million Baht for Total Transaction Value 23 Million Active Subscribers 1.7 Million Transactions/day 85 Services No. 1 Banking and Lending Agent 1.4 Million Transactions/month 6 Commercial Banks 95 Million Baht of Lending Outstanding with 0.3% NPL No. 1 Agent Network for Distribution Business 3,794 Vending Machines 170 Agents and 70 Partners 88,080 Cans/day As of Mar 2020 12
Quarterly Total Transaction Value – Affected by Covid-19 Bt 9,632 mn in 1Q19 Avg. Bt 105.85 mn per day Bt mn Actual 12,000 Forecast Actual in 1Q19 10,000 ARPU > 6M Operating Kiosks 8,000 6,000 4,000 2,000 - 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 24,859 65,867 92,082 124,563 130,053 130,481 132,000 Kiosks Kiosks Kiosks Kiosks Kiosks Kiosks Kiosks(Target) 2016 2017 2019 2015 2018 2020(F) 2014 13
Value Share and Leading Position Maintained despite Growing in Competitions Prepaid Bt30,992mn Bt28,191mn Market Value Kiosk Mobile Banking Mobile Banking Kiosk and App and App 26% 53% Value Share 26% 48% 1Q20 4Q19 by Channels Others 26% 21% Others Total Kiosk 246,374 Kiosks 256,357 Kiosks Numbers Boonterm Boonterm 51% Number of 53% 47% 49% 1Q20 4Q19 Kiosk Share Others Others Source: Mobile Operators Public Information (MD&A), Industry Information, and FSMART Analysis 14
Depreciation Saving Expected Going onward Accumulated Fully Depreciated Kiosks Number 28,615 19,042 12,488 5,063 516 2017 2018 2019 2020F 2021F 24.4 28.1 27.3 Depreciation Costs Saving (Bt mn) 15
Money Transfer Transaction Number Expect to Grow Significantly in 2020 1,407,181 Transactions per Month in 1Q20 1Q20: (Total 6 Banks) Bt mn 44.3% YoY 21.4% QoQ Transactions 10.5% YoY 0.8% QoQ (KTB&KBANK&BAY) 5,000 2,000,000 4,000 1,407,181 1,500,000 3,000 1,159,351 954,173 925,191 1,000,000 821,548 2,000 723,983 983,456 975,436 891,968 846,320 439,968 500,000 1,000 602,638 166,810 40,045 68,332 318,226 0 0 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 Actual Transfer Value in 4Q19 Forecast Transfer Value 16
Quarterly Beverage Sales Growing Continuously 3,794 Vending Machine Million Cans Beverage Sales Bt87.96mn 39.82% YoY Bt mn per Month per Quarter 7.11% QoQ 100.0 2.5 2.3 2.2 90.0 Beverage Sales (Bt mn) 2.0 1.9 Actual Beverage Sales (Bt mn) in 1Q20 80.0 2.0 1.7 Forecast Beverage Sales (Bt mn) 70.0 1.6 No. of Beverage Sales (Cans) 1.4 * Average Price 13-15 Baht/Can 60.0 1.5 1.3 1.2 1.1 1.1 50.0 40.0 1.0 0.8 30.0 0.5 20.0 0.5 10.0 .0 0.0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 4,000 – 5,000 1,582 1,908 3,497 Vending Machine Vending Machine Vending Machine (Target) Vending Machine 2019 2017 2018 2020(F) 17
Covid-19 Situation 18
Government Supportive Measure in Q2/2020 A Free Voice Package A Free Data Package A Decrease of Electricity Charge 19
Supportive Measures by FSMART Temporary Credit to Boonterm Agents Personal Loan Installment Relief 20
Supportive Measures by FSMART • Free Covid-19 Insurance from FSMART • Offering Covid-19 Insurance package for 10 Baht 21
Supportive Measures by FSMART Our Employees • Guarantee no layoff for all FSMART employees • Support employees with necessary equipment to work from home 22
Supportive Measures by FSMART โครงการถุงบุญเติม ปันน ้าใจ ผู้ประสบภัยโควิท -19 (Pay It Forward Project by Boonterm) 23
Agenda Business Overview and Highlights Business Direction 1Q2020 Operating Results 24
New Normal Implication to FSMART Business More Health Conscious ( ใส่ใจสุขภาพมากยิ่งขึ้น ) Insurance and Health-related Service (ประกันชีวิต สุขภาพ) Individual Entertainment ( การใช้ความบันเทิงส่วนบุคคล ) Online Streaming ( บริการบันเทิง Streaming ) New Behavior New Normal Social Distance Practice ( ระมัดระวังและมีระยะห่างในสังคม ) Automated Kiosk (บริการอัตโนมัติ) ฿ Decrease in Purchasing Power ( รายได้ลดลง ต้องประหยัดใช้จ่าย ) Infrastructure Services ( เน้นใช้จ่ายบริการพื้นฐาน) New Economy 25
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