Opportunity day 4Q18 27 Feb 2019 Agenda FSMART overview FSMART - - PowerPoint PPT Presentation

Opportunity day

4Q18

27 Feb 2019

FSMART overview FSMART Highlight Financial performance Business outlook

Agenda

3

Key development

2008 2014 2016 2017 2018 2013 2015

2008 Established Forth Smart Service Co.,Ltd 2013 Spin-off from Forth Corporation Pcl. 2014

• Listed in MAI (Paid-up Capital 400 MB)
• Launched ‘Boonterm Counter Service’

2015

• Launched ‘RO Water Machine’

and ‘Weight Scale Machine’

• Invested in Forth Vending Co.,Ltd.

2009

2009

• Launched ‘Boonterm kiosk’
• Runner-up award “Agritronics & Automation”
• f Thailand Embedded Product Award by TESA

2016

• Established

“Forth Smart Trading Co.,Ltd.”

• Launched ‘BeWallet’

(e-Wallet mobile application) 2017

• Established

“Forth Smart Digital Co.,Ltd.”

• Launched ‘BeMall’

(e-Market place)

• Invested in BOX24 Co.,Ltd

2019

• Launch ‘Boonterm intelligent kiosk’

(Selling Sim card and e-KYC service)

• Expand to New Business
• Personal Loan/Nano Finance
• EV motorcycle Station

2018 Developed Boonterm kiosk to be intelligent kiosk

2019

3

4

Our products

Business model

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Business model

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FSMART overview FSMART Highlight Financial performance Business outlook

Agenda

Investment Highlight

Unique business model

Franchise system Recurring income Revenue sharing

• No. of “Boonterm” was 130,053 kiosks (4.3% YoY)

Top up value Bt41,980mn (16.1% YoY) 2 million transactions per day 23 million active subscribers

• Avg. 56 Baht per transaction

Core revenue of Bt3,339mn (7.5% YoY) Net Profit of Bt583mn (7.4% YoY) ROE of 49.3%

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9

Business highlight

As of Dec 2018

9

18.5%

Money Transfer

3.8%

Bill Payment

4.6%

E-Wallet

3.0%

Others

Our services

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70.1%

Mobile Top up

Kiosks by region

As of DEC 2018 23,237 19,425 18,473 38,412 14,269 16,237

18% 15% 11% 14% 12% 30%

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As of Dec 2018

Total 130,053 Kiosks

Boonterm Kiosks

Business Partners

• 24,187 Kiosks
• 62 Partners

As of Dec 2018

Kiosks No. by proportion

Agents

• 105,866 Kiosks
• 181 Agents

19%

81%

Total 130,053 Kiosks

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Boonterm Kiosks

Thailand’s prepaid mobile market

41.2M* 21.2M* 28.8M** Mobile Subscribers in Thailand 2018

28,756,000

Postpaid 7,389,000** Prepaid 21,367,000**

41,169,200

Postpaid 8,189,900 Prepaid 32,979,300

21,202,000

Postpaid 6,071,000 Prepaid 15,131,000

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* Figures from the announcement of those three operators

(69 M)

76%

(91 M)

**Estimated

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Mobile Top up value

Monthly Mobile Top up value

Note 1 : Top up and ARPU increase in Dec, due to decline of rainy season effect. Note 2 : Top up and ARPU slow down ,YoY, due to the following

• Not focus on expanding the kiosk number.
• Emphasize on relocating non-performing kiosks.
• External factors.

Thailand’s prepaid mobile market

top up through FSMART’s channels

33% (23 Million)

Of total prepaid subscribers (69 Million*)

Use Boonterm kiosks

OF MARKET VALUE

(31,210 THB MN*)

22% (6,876 THB MN)

* Estimated

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Thailand’s prepaid mobile market

23% 8% Kiosk 30%

Channel*

28% BANK 1% 10% 12%

29%

20%

6%

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* Estimated

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Money Transfer value

Monthly money transfer value

20,000 40,000 60,000

Transaction

FSMART overview FSMART Highlight Financial performance Business outlook

Agenda

Financial performance

Total transaction value, total revenues from core business and no. of kiosks

2,245 3,105 3,339 23,383 36,175 41,980

2016 2017 2018

92,082 124,653 130,053

3.5% YoY

833 832 820 10,085 10,506 10,442 4Q17 3Q18 4Q18

1.5% QoQ 1.6% YoY

124,653 130,109 130,053

0.6% QoQ

Note : Total transaction value & revenues decline, QoQ, due to slowdown of the grassroots economy.

• 20

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Financial performance

2018

41,980 MB 3,339 MB

Service proportions Revenue proportions

80% 73%

17% 10% 5% 3% 4%

Usage amount by service

7,858 7,914 7,852 7,584 7,324 270 316 372 384 398 1,475 1,613 1,731 1,836 1,931 318 390 441 454 475 164 188 215 249 314

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 4Q17 1Q18 2Q18 3Q18 4Q18

Mobile Top up Bill payment Money Transfer E-Wallet Others

77.9% 75.9% 74.0% 72.2% 70.1% 2.7% 3.0% 3.5% 3.7% 3.8% 14.6% 15.5% 16.3% 17.5% 18.5% 3.2% 3.7% 4.2% 4.3% 4.6% 1.6% 1.8% 2.0% 2.4% 3.0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4Q17 1Q18 2Q18 3Q18 4Q18

Mobile Top up Bill payment Money Transfer E-Wallet Others

3% 2% 10,085 10,421 10,611 10,506 10,442 1%

Remark : Usage Amount = Service Amount + Service Charge

1%

Financial performance

Note: 4Q18 Top up amount decreases due to slowdown of the grassroots economy

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94.35% 83.40% 73.07% 1.79% 2.20% 3.50% 1.84% 11.30% 16.94% 1.70% 4.19% 2.02% 1.50% 2.30% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 2016 2017 2018

Mobile Top up Bill payment Money Transfer E-wallet Other 23

22,062 30,158 30,674 418 781 1,470 431 4,073 7,111 611 1,760

472 551 966

• 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2016 2017 2018

Mobile Top up Bill payment Money Transfer E-wallet Other

Usage amount by service

Financial performance

23,383 36,174 41,980

Gross profit (THB Million)

Gross profit margin & Net profit margin

ROE / ROA

Net profit (THB Million)

571 732 708 175 176 167 2016 2017 2018 4Q17 3Q18 4Q18

4.6% YoY 5.1% QoQ

420 543 583 123 145 142 2016 2017 2018 4Q17 3Q18 4Q18

15.5% YoY 2.1% QoQ

25.4% 23.6% 21.2% 21.0% 21.1% 20.3% 18.7% 17.5% 17.5% 14.8% 17.5% 17.4% 2016 2017 2018 4Q17 3Q18 4Q18 Gross Profit Margin Net Profit Margin 37.6% 43.1% 49.3% 43.1% 46.0% 49.3% 15.5% 14.6% 14.3% 14.6% 13.9% 14.3% 2016 2017 2018 4Q17 3Q18 4Q18 ROE ROA

Financial performance

Note: - Gross profit decrease due to the depreciation cost . ** The depreciation ratio to the core revenue will tend to decrease from the kiosk that its useful life is 8 years

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Financial performance

Total assets (THB Million) Total shareholder’s equity (THB Million) Total liabilities (THB Million)

Debt to Equity & Interest bearing debt to Equity

3,185 4,260 3,916 3,860 3,916

2016 2017 2018 3Q18 4Q18 2,002 2,926 2,662 2,748 2,662 2016 2017 2018 3Q18 4Q18 1,183 1,334 1,254 1,112 1,254 2016 2017 2018 3Q18 4Q18 1.69 2.19 2.12 2.47 2.12 0.77 1.13 0.99 1.21 0.99 2016 2017 2018 3Q18 4Q18 D/E IBD/E

1.4% QoQ 12.8% QoQ 3.1% QoQ

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Note: - Shareholder’s equity increase QoQ due to an increase of net profit.

• D/E Ratio decrease due to payment of long term loan to financial institutes

and the increase of shareholders' equity from net profit increased

Financial performance

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(THB Million)

Financial Highlight

Year 2014 2015 2016 2017 2018 Revenue 1,163 1,684 2,425 3,105 3,339 EBITDA 355 561 829 1,098 1,242 %EBITDA 30.52% 33.31% 36.9% 35.4% 37.2% Net Profit 153 272 420 543 583 %NI 13.2% 16.2% 18.7% 17.5% 17.5% EPS 0.24 0.34 0.53 0.68 0.74 DPS 0.20 0.28 0.42 0.55 0.62 Payout (%) 83% 82% 79% 81% 84%

• 1,000

2,000 3,000 4,000 2014 2015 2016 2017 2018 Revenue EBITDA Net profit

FSMART overview FSMART Highlight Financial performance Business outlook

Agenda

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To manage ARPU more than 5% of growth

• Efficient kiosk spot
• New services
• Customer expansion
• Frequency use

To move the kiosks from the location that generate low income to higher income To increase total usage amount more than 10%YoY To expand new target of customer by launching 2 new businesses: Personal Loan/Nano Finance and the service station for charging/replacing battery for electric motorcycle

Focus on kiosk spot

New Business Expansion

Develop Intelligent kiosk

Increase usage amount

ARPU

management

To modify the kiosk to be intelligent kiosk; providing selling Sim card and e-KYC service.

2019 - Objectives

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FSMART News

(เปิดให้บริการ 1 เม.ย.)

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FSMART News

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2019 Business Plan

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2019 Business Plan

FSMART 3 Years Plan

Top up value growth of 20% CAGR 2021 Goals

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15,386 23,383 36,174 41,980 46,178 51,000 56,000 65,867 92,082 124,653 130,053 135,053 140,000 145,000 2015 2016 2017 2018 2019F 2020F 2021F Total topup value (Mil. Baht)

• No. Of Kiosks

Total transaction value growth

FSMART Investor Relations

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

Disclaimers

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 opinion 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 of any such opinion or statement.