Opportunity Day : 24 2554 CGS Overview Successful research and - - PowerPoint PPT Presentation

Opportunity Day : 24 กุมภาพันธ์ 2554

Successful research and brokerage operation supported by the highest levels of efficiency & professionalism…

• Ranks 2nd with 6% market share (as of Dec 2010) – highest growth performer in the industry
• Has the highest distribution with 50 branch offices nationwide
• Serves more than 50,000 clients
• Has an extensive range of financial services
• One of the top 5 best Thailand brokerage 2007 selected by Asia Money (Broker poll).
• One of the top 5 leaders in Internet trading
• CGS Analyst achieved “ Best retail Strategist Award” in 2007 awarded by Securities Analyst Association

CGS will continue to provide a larger, more comprehensive range of financial products and services through strategic acquisitions

The investment in MFC Asset Management PLC, allowed CGS to extend its service offering beyond securities brokerage, such as mutual fund and private fund management. The company aims to take advantage of such

• pportunities in the future to widen its product portfolio and support its objective of ACCESSIBILITY for its

retail customers

CGS will increase the momentum to become a leading retail stock broker in Thailand – in number of accounts and market share

2009 and 2010 were an exceptional growth year for CGS which was a result of significant organization and

• perational changes, increased IT capabilities and shifts in key management positions. CGS intends to

increase this momentum going forward

CGS Overview

3

2010 Highlights

 Net Profit of THB 194.04 million increased by THB 174.37 million compared to a profit in 2009 : THB 19.67 million  Retained earnings of 386.31 million baht as at December 31, 2010  Total income of THB 1,611.47 million, an increase of THB 713.95 or 79.55% on the prior year  Total assets increased to THB 4.3 billion, due to cash paid in share buy back  Total Shareholder’s equity is Baht 2,963.74 million.  NCR (Net Capital Ratio) is 174.7 %, being 167.7% in excess of statutory requirements  First Cash dividend payment in past 11 years at Baht 0.10 per share.

4

Financial Performance

Income Statement

Year ended 31 December

Income categories 2010 THB (M) 2009 THB (M) Brokerage Fees from Securities Business 1,221 756.2 Brokerage Fees from Derivatives Business 70.5 38.5 Fees and services income 16.5 23.6 Gain on Securities Trading 164 (92.6) Gain on Derivatives Trading 0.58 Interests & Dividends 35.4 49.2 Interest on Margin Loans 50 32.1 Gain on investment in subsidiary 45.7 26.5 Arrangement fee 44.3 Reversal of allowance for impairment of investments 19.5 Other income 6.7 18.3 Total Income 1,611 889.0

5

Financial Performance

Income Statement

Year ended 31 December

Expenses categories 2010 THB (M) 2009 THB (M) Expenses on borrowing 10.6 4.1 Fee and service expenses 96.3 55.3 Bad debts and doubtful accounts 16.2 33.1 Personnel expenses 681 407.6 Property, premises and equipment expenses 184.5 153.3 Taxes and duties 2.0 1.6 Management’s benefit and remuneration 274 57.0 Information and communications expenses 43.4 32.3 Branch amalgamation expenses 5.2 Loss on write off of goodwill in Investment in Associate 63.1 Other Expenses 109.4 65.4 Total Expenses 1,417 877.9

Net Profit 194.04 19.67

• 200
• 100

100 200 300 400 500 600 Q1 Q2 Q3 Q4 Revenue Net Profit

Financial Performance 2010

2010

Q1 Q2 Q3 Q4 Total

Revenue(MB) 254.6 351.5 529.4 476.0 1,611.47 Profit (MB) (102.91) 70.47 153.51 72.91 194.04

7

Financial Position

Balance Sheets : Year ended 31 December

Asset categories 2010 THB (M) 2009 THB (M) Cash and Cash equivalents 1,372.0 831.9 Long term deposits held at Financial Institutions 91.45 69.3 Short term investments (Equities and Debt) 7.74 117.5 Long term investments (Equities and Debt) 162.1 52.9 Investment in Associated Company (MFC) 367.2 299.65 Receivable from Clearing House 464.3 165.1 Securities business receivable 1,975.2 1,497.1 Less: Allowance for Doubtful Debts 414.1 (400.0) Property, premises and equipment - net 178.1 226.37 Intangible Assets - net 83.1 70.2 Assets held for sale 24.1 24.1 Other Assets - net 69.2 60.9 Total Assets 4,380.6 2,999.7

8

Financial Position

Balance Sheets : Year ended 31 December

Liability and Shareholders’ Equity categories 2010 THB (M) 2009 THB (M) Borrowing from Financial Institution

• 30.0

Payables from Clearing House 0.24 81.1 Securities business payables 1,174.0 637.3 Payables under finance lease 56.5 85.0 Other Liabilities 186.2 101.3 Total Liabilities 1,417.0 934.7 Issued and paid up share capital 2,330.7 1,866.4 Premium on share capital 139.3

• Revaluation surplus / (deficit) on investments

107.4 22.2 Legal Reserve 9.1 0.6 Unappropriated Earnings / (Deficit) 377.1 191.7 Total Shareholders’ Equity 2,963.7 2,080.0 Total Liabilities and Shareholders’ Equity 4,380.7 2,999.7 Book Value/Share 1.27 0.86

CGS Market Share 2010

• CGS commands market share of 6 percent (as of Dec 2010) and is ranked at 2th

among 35 competitors, a significant improvement from 20th in 2009

• As Dec 31,2010, total trading value of THB 713,531 million increased by THB

353,877 million from the prior year

KIMENG 13% ASP 5% BLS 5% CS 5% FSS 4% KGI 4% DBSV 3% CNS 2% AYS 2% CLSA 2% GLOBLEX 2% JPM 1% KKS 1% BFITSEC 1% AIRA 1% CIMBS 1% FES 1% IVG 1% ACLS 0% Others 40%

CGS 6%

CGS Market Share as of Dec 2010 200,705 200,876 177,644 359,654 713,531

Total Trading value 2006 - 2010 (Million Baht)

CGS Market Share 2010

2.54% 2.40% 2.27% 4.75% 6.00%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2006 2007 2008 2009 2010

as of Dec

CGS Market share is 6% which is rank no. 2 in the securities brokerage market

Internet Trading 2010

CGS is currently ranked at 3rd for Internet trading compared to 28 competitors ,

• ccupied the market share of approximately 9 percent

21,957.28 11,907.83 27,738.54 14,745.66 20,586.30 33,720.00 37,386.25 48,415.89 35,482.82 42,127.90 29,059.72 15,974.13

• 10,000.00

20,000.00 30,000.00 40,000.00 50,000.00 60,000.00 JAN FE B MAR AP R MAY JUN JUL AUG SE P T OCT NOV DE C

Millions

Total Internet Trading value 2010

Derivatives Trading 2010

Number of contract Market Share 17,193 17,377 21,341 24,974 21,226 24,576 19,251 18,832 29,728 22,182 38,229 37,244 3.31 3.1 2.92 3.57 3.58 3.31 3.45 2.98 2.76 2.37 3.41 4.29

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Contract Market Share

As of Dec 31,2010, CGS occupied 4.29 percent of derivatives market with 37,244 contracts trading

CGS Offices Nationwide

Bangkok and Suburb Areas ( 14 locations)

• Bangkae
• Ladprao (2)
• Ngamwongwan
• Pinklao
• Samrong
• Ramkhahang
• Silom
• Central World
• Bangna
• Bangbuatong
• Ploenchit
• Changwattana
• Sermmit

Central : 5 locations

• Ban Pong
• Kanchanburi
• Nakhon Prathom
• Phetchaburi
• Saraburi

Northeastern : 7 locations

• Burirum
• Khon Kaen
• Nakhon Ratchasima
• Sri Sa Ked
• Surin
• Ubon Ratchathani
• Udon Thani

Northern : 11 locations

• Chang Klan, Chiang Mai
• Chang Pueak, Chiang Mai
• Jedyod, Chiang Mai
• Huayhaew, Chiang Mai
• Nakornping, Chiang Mai
• MaeHia, Chiang Mai
• Chiang Rai
• Lampang
• Nakhon Sawan
• Phitsanulok
• Phayao

Eastern : 4 locations

• Chaichana Rd., Chon Buri
• Pattaya
• Rayong
• Chachoengsao

Southern : 9 locations

• Chumphon
• Had Yai (3)
• Nakhon Sri Thammarat (2)
• Phuket
• Songkhla
• Trang

Most number of branches nationwide: the largest local retail client base

Number of CGS Offices Nationwide

10 20 30 40 50

39 36 47 50

As of Dec 31,2010 CGS provides products and services through 50 branches nationwide.

2007 2008 2009 2010

15

2011 Objectives

2010 - CGS returned to profitability 2011 – CGS must increase the momentum Objectives:

 Become #1 retail stock broker in Thailand, both by number of accounts and also in market share  Diversify revenue base into fee based activities, e.g. asset management fees, increased financial advisory and underwriting fees