Opportunity Day 2020 The Stock Exchange of Thailand Date: - - PowerPoint PPT Presentation

The Stock Exchange of Thailand

Opportunity Day 2020

Date: 06-Mar-2020

Confidential & Proprietary

Disclaimer

The information contained in this presentation is intended solely for your personal

• reference. Please do not circulate this material. If you are not an intended recipient, you

must not read, disclose, copy, retain, distribute or take any action in reliance upon it. Some statements made in this material are forward-looking with relevant assumptions, which are subject to uncertainties, which may cause the actual result/performance to be materially deviated from any future result/performance implied by such forward-looking

• statements. Please note that the company and management/staff are not capable to

control and guarantee if these forward-looking statements will be accurately materialized, they are subject to various risks and uncertainties.

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Contents

• 2019 Financials
• 2020 Trends & Business Plan
• Opportunity for Digital Economy
• Q&As

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2019 Financials

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Netbay’s financial highlights

Re Revenu venue Growt

• wth

Consistent growth every years

Gros

• ss

s Prof

• fit

it Margi argin

Maintaining high gross profit margin

Net Prof

• fit Margin

rgin

Increased net profit margin to new high

Re Retur urn n on Equit ity

ROE increased in 2019

14% 80% 42.4% 36.9%

Despite the 2019 economic challenges such as trade war, Netbay continues to maintain revenue growth and gross profit margin while increase net profit margin and return on equity.

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Netbay’s revenues are recurring and transaction-base

Priv ivate ate Sector tors

100% of our revenues are from businesses across different industries

Recurr urring ing

• ur revenue are

transaction-based recurring revenue

Tra ransact nsaction ion-Bas Based ed

and pay-per-use pricing to meet every sizes of businesses.

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Netbay has been consistently growing for the past 3 years

฿314.8 ฿361.6 ฿411.7 15.0% 15.0% 14.0%

• 150.0%
• 130.0%
• 110.0%
• 90.0%
• 70.0%
• 50.0%
• 30.0%
• 10.0%

฿100 ฿150 ฿200 ฿250 ฿300 ฿350 ฿400 ฿450 ฿500 ฿550 ฿600 2017 2018 2019 Revenue from services Revenue Growth

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Netbay maintains gross profit margin at 80.4%

฿243.9 ฿291.0 ฿330.9 77.5% 80.5% 80.4%

฿0 ฿50 ฿100 ฿150 ฿200 ฿250 ฿300 ฿350 ฿400 ฿450 ฿500 2017 2018 2019 Gross Profit Gross Profit margin

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Net profit margin improved to 42.4%

฿115.8 ฿148.8 ฿179.1 36.0% 40.4% 42.4%

฿0 ฿50 ฿100 ฿150 ฿200 ฿250 ฿300 ฿350 ฿400 2017 2018 2019 Net Profit Net Profit margin

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Total assets increased to THB 647M

฿443 ฿435 ฿388 ฿90 ฿175 ฿260 ฿533 ฿611 ฿647

• 100.00

฿0 ฿200 ฿400 ฿600 ฿800 ฿1,000 ฿1,200 2017 2018 2019 Non-curent asset Current asset Total

*Units are in millions

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Liability and shareholder equity increased to THB 647M

฿114.7 ฿138.8 ฿147.5 ฿418.4 ฿471.9 ฿499.7 ฿533.1 ฿610.7 ฿647.2

• 100.00

฿0 ฿200 ฿400 ฿600 ฿800 ฿1,000 ฿1,200 2017 2018 2019 Shareholder Equity Liability Total

*Units are in millions

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ROA and ROE increased to 28.5% and 36.9% respectively

23.1% 26.0% 28.5% 30.4% 33.4% 36.9%

0% 20% 40% 2017 2018 2019 ROA ROE

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Income per employee has been consistently increased every years

86 92 96 97 98 105 ฿184.74 ฿223.81 ฿272.94 ฿314.79 ฿361.61 ฿411.60

฿2.15 ฿2.43 ฿2.84 ฿3.25 ฿3.69 ฿3.92

฿0.00 ฿0.50 ฿1.00 ฿1.50 ฿2.00 ฿2.50 ฿3.00 ฿3.50 ฿4.00 ฿0 ฿50 ฿100 ฿150 ฿200 ฿250 ฿300 ฿350 ฿400 ฿450 2014 2015 2016 2017 2018 2019 Employee Revenue Revenue per head

*Units are in millions *Units are in millions per employee

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2020 Trends & Business Plan

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฿272.90 ฿314.80 ฿361.60 ฿411.70 ฿89.30 ฿115.80 ฿148.80 ฿179.10 96 97 98 105 ฿- ฿50.00 ฿100.00 ฿150.00 ฿200.00 ฿250.00 ฿300.00 ฿350.00 ฿400.00 ฿450.00 2016 2017 2018 2019 Service Income Net Profit Employee

Netbay scales with platform business model and improved productivity

*Units are in millions *Number of employees

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Netbay benefits from digital adoption, digital economy, and new technology

Trends

Technology

New technology development and adoption

Scale & Network Expansion

Digital economy and interoperability

Digital Economy

Demand for more digital services

Digital Adoption

Users shift to online

contr tributi uting ng to our performance: ance:

• User behaviors shift to digital

and online.

• Cost cutting drives business

to shift to digital

• Digital economy drives the

need for interoperability, resulting in network expansion.

• New technology disrupts how

companies are conducting their businesses

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Netbay still only capture a small part of the large addressable markets

Thailand import and export market is a THB 16T market

Source: UN Comtrade Source: E-Invoicing / E-Billing International Market Overview & Forecast, Bruno Koch, Billentis

e-Bill/e-Invoice for business and government may reach 6B in APAC

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Netbay strives to help the ecosystem transform in the digital economy era

Research & Development

and future services

Unmet demand

creates new opportunities for Netbay

Netbay continues to launch new services to help our clients

With fast digital adoption rate and high demand in digital economy, there are many opportunities for Netbay to serve this unmet demand in the digital economy

01 03 05 04 02

Fynnet Ventures Global Trade Facilitation Platform IoT & Robotics Research on the applications of IoTs and robotics for real business use case e-SMEs Digital business solutions for SMEs e-Tax Invoice & e-Receipt Electronic invoice documents platform

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Oversea importers & exporters

Fynnet aims to bridge the trade divide with trade facilitation platform

Thai National Single Window (NSW) e-Customs e-Manifest e-Express e-Business ETR Customs e-payments CDD Paperless/ e-export/ e-import/ ebXML / Digital Sig Stamp duty / Insurance / Banks Terminal operator / Customs response / RFID Express couriers Transaction reporting / Customer DD / e-Licensing Combating Financing of Terrorism / Bill payment Customer Due Diligence / Blacklist Check

…

Importer Exporter Custom Broker Shipping Agent VANs Insurance Comps Banks Fright Forward Land Courier Air Courier Ocean Courier Express Courier PRODUCTS PRODUCTS Direct to Gov’t Agencies

Government Agencies fynnet.

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Opportunity for Digital Economy

Doing Business

Importer Port Custom Broker Law Firm Public Sector Government Agency Chamber of Commerce Terminal Operator

Doing businesses is not easy

Exporter Accounting Firm Factory Logistics Freight Forwarder ERP Airport Accounting Software FSI Insurance Bank

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Summary of the problems…

Analog

• g

Manual paper-based transaction, hard to track progress and manual

Compl plex ex

Confusing, difficult to understand, and non- streamlined processes

Ineffic ficie ient nt

Slow, repetitive, and manual process, and required a lot

• f resources per transaction

Expe pensi nsive ve

Cost of doing business is high with a lot of hidden and

• pportunity costs

Netbay digitizes and enhances how companies do their businesses

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3Ds: Digital Documents (Data), Digital Business Process, Digital Business Platform

Digital Document

01

Digitize document to digital document (data) Digital Business Process

02

Digitize business process to Digital Business Process Digital Business Platform

03

Platform play with portfolio of services and network

Declaration Form Bill of Lading Other Documents Invoice

Netbay transforms document to digital document, or what we now called Data

Business focus on achieving business goal, not documents or data alone. Digitizing document is only one part of what Netbay does.

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Data

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Netbay digitizes business process so a task can be done digitally with

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Data

Import

Data Application

In order to achieve business goal online, Netbay provides various applications for different processes.

1

Step

2

Step

3

Step

4

Step

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Netbay continues to digitize business process and increase our service portfolios

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Import Export Express Manifest Financial Reporting Application X

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These digital business processes (applications) run on our Platform

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Data can be sent, received, and processed in our platform to accomplish various business processes.

Digital Business Platform

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Our platform helps businesses accomplish their goals better, faster, and cheaper

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Netbay strives to scale by increasing business services and expanding network.

Digital Business Platform

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• E-Customs Paperless
• E-Express
• E-Manifest
• E-Payment
• Other import and export processes

Global Trade

• Customer Due Diligence (CDD)
• E-KYC
• E-Tax Invoice & E-Receipt

Business Services

• Fynnet Ventures
• B2B services
• B2G services
• R&D Initiatives
• Big Data
• IoT & Robotics

Other Services

Netbay’s Digital Services

Netbay simplifies and facilitates business processes of global trade

Digital Business Platform

Custom Broker Banks FSIs Importers Exporters Shipping Chamber of Commerce Air Cargo Ocean Liners Terminal Operators Cargo Insurance Freight Forwarder

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Thailand

Custom Broker Importers Exporters Shipping Chamber of Commerce Freight Forwarder

Oversea

Customs FDA OGAs AOT PAT

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Netbay transforms how companies conduct their business

Digita tal

Real-time, accurate, cost- effective, and improved compliance and security

High Prod

• duct

ctivi ivity ty

Accelerated how companies are doing their business and improve their productivity

Connec ecti tivity vity

Full-suite one-stop platform to complete all necessary transactions

Value-add dded ed Service ices

Additional values to the businesses such as automated tasks and business intelligence

Minimize ize Cost

Reduce the number of resources required per task, paper, transportation, and storage costs

Transp spare rency cy

Ability to monitor and track current progress and trace to the original sources

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Key levers for Netbay’s revenue growth

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Netbay strives to scale by launching new services and expanding the network.

Digital Business Platform

(1) New clients (2) Expansion of networks (Businesses & GAs) (3) New application (business service) (4) Digitalization

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Netbay’s growth is driven from these four key levers

New Custome tomers rs

Acquisition of new customers

Network

• rk Expan

pansio sion & Partn tnersh ership ip

Expanding network and integration to other business

• r government organizations

and platforms

New Appli plica catio tions ns or Servic vices es

Launch of new applications

• r services to existing or new

customers

Digita itali lizati zation

• n

More transactions from existing and new clients from shifting analog to digital processes

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Netbay strives to help the ecosystem transform in the digital economy era

Research & Development

and future services

Unmet demand

creates new opportunities for Netbay

Netbay continues to launch new services to help our clients

With fast digital adoption rate and high demand in digital economy, there are many opportunities for Netbay to serve this unmet demand in the digital economy

01 03 05 04 02

Fynnet Ventures Global Trade Facilitation Platform IoT & Robotics Research on the applications of IoTs and robotics for real business use case e-SMEs Digital business solutions for SMEs e-Tax Invoice & e-Receipt Electronic invoice documents platform

Confidential & Proprietary

To enable and empower everyone to do business better, faster, and cheaper so that they can reach their full potential and thrive. No matter what business they are in.

Netbay’s Mission

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Q&As

The information contained in this presentation is intended solely for your personal reference. Please do not circulate this material. If you are not an intended recipient, you must not read, disclose, copy, retain, distribute or take any action in reliance upon it. Some statements made in this material are forward- looking with relevant assumptions, which are subject to uncertainties, which may cause the actual result/performance to be materially deviated from any future result/performance implied by such forward- looking statements. Please note that the company and management/staff are not capable to control and guarantee if these forward-looking statements will be accurately materialized, they are subject to various risks and uncertainties.

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