SRISAWAD CORPORATION PLC. Thailand's Financial Convenience Store - - PowerPoint PPT Presentation

SRISAWAD CORPORATION PLC.

Thailand's Financial Convenience Store

COMPANY PRESENTATION

CONTENTS

COMPANY PROFILE 1 2 FINANCIAL HIGHLIGHTS 3 OPERATIONAL GOALS 4 INVESTMENT HIGHLIGHTS 5 CORPORATE SOCIAL RESPONSIBILITY

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COMPANY HISTORY

SAWAD Group provides secured loans, collateralized by all kinds

• f vehicles, including personal cars, pick-up trucks, motorcycles,

six-wheel / ten-wheel vehicles and vehicles used for agricultural purposes as well as other collaterals including houses, condominiums and land. 1979-2006

The Kaewbootta family founded the company to provide vehicle title loans. The business had been expanded to include larger service coverage in Thailand.

2007-2008

Sold the existing business to another operator in the industry and established the new company “Srisawad Power 1979” with the registered capital of 1 million baht.

2013

The company was privatized to a public company with registered capital 1,000 million baht.

2009-2010

Engaging in the debt collection and launched the auto-backed and home- backed loan business under the service slogan “Mee Baan Mee Rod Ngern Sod ThanJai”

2018

As of 30 September 2018, SAWAD Group’s total receivable portfolios amounting 26,224 to million baht, with largest service networks covering all regions nationwide.

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• Use vehicle title and land title as collateral.
• The company offers loan service to low income

individuals that have no access to financial services from commercial bank but have ownership in vehicle or land.

TYPE OF SERVICES

AUTO BACKED LOANS HOUSE & LAND BACKED LOANS PERSONAL LOAN & NANO FINANCE 6-48 Months 12-24 Months 24-36 Months PAYMENT PERIOD 30-70% of market price 30-50% of assessed value 2.5 times of monthly income

(Not over 50,000 baht)

LOAN APPROVAL RATE Hire Purchase

(Title-transfer or No Title-transfer)

Loan

(Mortgage or Sale with right of redemption)

Loan

(Unsecured)

TYPE OF CONTRACTS TYPE OF SERVICES

Personal Loan: The company offers personal loan only to existing customers who have good payment record. Nano Finance: Credit line is limited at 100,000 baht.

SECURED LOAN UNSECURED LOAN

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100% 100% 82.04% 100% 90% 100% 90%

Holding Company

ORGANIZATION STRUCTURE

New Motorcycle, Personal Loan and Nano Finance

SWP ASSET MANAGEMENT CO., LTD. AMC FAST MONEY CO.,LTD. FM SRISAWAD INTERNATIONAL HOLDING CO.,LTD. SI SRISAWAD POWER 2014 CO.,LTD. SAWAD 2014 SRISAWAD* FINANCE PLC. BFIT

Distressed Asset Management Debt Collection, Banking Agent, Branch Network, Hire Purchase Public Borrowing, Lending, Term Deposit

SRISAWAD VIETNAM LLC. SVN

Collateral Backed Loan

SWP SERVICES CO.,LTD. SWPS

Advisory Services

SRISAWAD CORPORATION (HOLDING COMPANY) SAWAD

Collateral Backed Loan

SRISAWAD LEASING LAOS

100%

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82.04% 100% 100%

ORGANIZATION STRUCTURE ( LENDING BUSINESS)

License : Nano Finance, Personal Loan Regulator : Bank of Thailand Business : Unsecured Loan Regulation : Nano Finance Law , Personal Loan

FAST MONEY CO.,LTD. FM SRISAWAD POWER 2014 CO.,LTD. SAWAD 2014 SRISAWAD* FINANCE PLC. BFIT

License : - Regulator : Ministry of Commerce Business : HP SMEs Lending Debt Servicing Agent Branches Management Regulation : Commercial Law Excessive Interest Rate Prohibition Act, B.E. 2560 License : Finance License Regulator: Bank of Thailand Business :Secured Loan Regulation: Financial Institution Law

SRISAWAD CORPORATION (HOLDING COMPANY) SAWAD

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Philippines Indonesia Myanmar Malaysia Singapore Cambodia Vietnam Brunei

BRANCH NETWORK

The company coverage network include a total

• f 3,235 branches at the end of March

2019 . Hence, the company can manage to utilize its capacity for lending, handling repayment transactions, pursuing collection practices and verifying information of customers/guarantors in prompt and effective manners.

500 1,000 1,500 2,000 2,500 3,000 3,500 2011 2012 2013 2014 2015 2016 2017 2018 2019 265 346 602 1,059 1,627 2,130 2,490 2,879 3,235

TOTAL BRANCHES

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MARKET OVERVIEW

SAWAD Group serves as an alternative to access loans, in place of black market lenders. Borrows have quick access to loans by using common assets as collateral such as motorcycles, cars (including pick-up trucks), houses and land properties.

18-20 MILLION LOW INCOME POPULATION

who do not have the means to access traditional loans of banking institutions.

36.9 MILLION REGISTERED VEHICLES

Passenger Cars 14.58M Motorcycles 20.53M Trucks 1.03M Tractors 0.49M

(as of Jan 31, 2019)

Motorcy cles 68% Cars 21% Others 11%

Motorcycles and cars are the most common types of loan collateral.

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BUSINESS STRATEGIES

SAWAD’S STRATEGIES

• 1. VARIETIES OF SERVICE

The company offers varieties of financing services including deposits and various loan products. such as car, motorcycle, house and land, etc.

• 2. COMPETITIVE COVERAGE

The company focuses on expansion at locations near communities with easy access to commercial banks.

• 3. TRANSPARENT AND HONEST

The company focuses on loyal relationship to our customers.

• 6. FOCUS ON CLOSE RELATIONS

WITH COMMUNITIES The company focuses on marketing activities aimed at tightening relationship with people in the communities.

• 5. USING TECHNOLOGY

Use technology to improve efficiency and maximize business productivity.

• 4. EXPANDING INTO A NEW MARKET

To expand business in other countries in ASEAN region.

COMPANY PROFILE 1 2 FINANCIAL HIGHLIGHTS 3 OPERATIONAL GOALS 4 INVESTMENT HIGHLIGHTS 5 CORPORATE SOCIAL RESPONSIBILITY

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FINANCIAL HIGHLIGHTS

BALANCE SHEET 2015 2016 2017 2018 2019

Cash and Cash Equivalent 333 713 4,165 2,921 3,107 Loans Due Within 1 Year 8,341 12,844 17,199 23,501 25,726 Loans Due Beyond 1 Year 2,872 4,236 4,411 6,071 6,444 Investment in Receivables 1,265 2,309 2,738 3,683 3,085 Other Assets 829 2,134 4,864 3,055 5,900 Total Assets 13,640 22,236 33,377 39,231 44,262 Deposit

• 6,073

7,274 7,603 Loan From Financial Institutions 3,487 8,564 6,419 7,835 5,262 Debenture 4,400 5,540 8,565 8,958 12,090 Other Liabilities 581 875 1,145 1,536 1,426 Total Liabilities 8,868 15,379 22,202 25,603 26,381 Paid-In Capital 1,020 1,046 1,087 1,148 1,325 Premium 1,422 1,422 1,425 1,425 3,933 Accumulated Net Income 2,288 4,338 6,879 9,254 11,046 Other Reserves 36 36 36 36 36 Other Controlling Interests 6 15 1,748 1,765 1,541 Shareholder’s Equity 4,772 6,857 11,175 13,628 17,881 Debt to Equity Ratio 1.8x 2.2x 1.9x 1.8x 1.4x UNIT: MILLION BAHT

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FINANCIAL HIGHLIGHTS

PROFIT & LOSS STATEMENT

2015 2016 2017 2018 Q2’19

Income From Interest & Fee Total 2,817 4,009 4,944 5,796 1,742 Other Income 960 1,327 2,055 2,084 602 Total Income 3,777 5,336 6,999 7,881 2,344 Operational Expenses (1,846) (2,456) (3,060) (3,436) (1,038) Profit Before Interest & Taxes 1,931 2,880 3,939 4,445 1,306 Cost of Funds (281) (369) (608) (719) (204) Tax Expenses (314) (502) (615) (725) (219) Net Profit 1,336 2,009 2,715 3,000 883

UNIT: MILLION BAHT

Portfolio BREAKDOWN PROFIT AND EXPENSES PER INCOME

90% 10%

Loan Hire Purchase (Consolidated financial statement of SAWAD Group)

0% 20% 40% 60% 80% 100%

40% 9% 10% 40%

Net Profit Taxes Cost of Funds Operational Expenses

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FINANCIAL HIGHLIGHTS

NET PROFIT

QUATOR TO QUATER COMPARISON

RETURN ON EQUITY - ROE RETURN ON ASSET - ROA

UNIT: MILLION BAHT 37.5% 32.6% 34.6% 30.1% 24.2% 22.4%

2014 2015 2016 2017 2018 Q2'19 (Consolidated financial statement of SAWAD Group)

278 421 696 640 879 292 434 630 665 883 370 544 665 827 397 610 724 868

• 500

1,000 1,500 2,000 2,500 3,000 3,500 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4

1,337 2,039 2,715 3,000 1,762

12% 11.20% 12% 8.3% 8.2% 2015 2016 2017 2018 Q2'19

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FINANCIAL HIGHLIGHTS

TOTAL INCOME AND TOTAL EXPENSES COMPARISON COST TO INCOME RATIO

2,689 3,777 5,336 6,999 7,881 2,344 1,409 1,846 3,327 4,283 3,436 1,038

2014 2015 2016 2017 2018 Q2'19

Total Income Total Expense 49.4% 47.9% 48.5% 43.8% 43.6% 44.3% 40% 42% 44% 46% 48% 50%

2014 2015 2016 2017 2018 Q2'19

UNIT: MILLION BAHT

(Consolidated financial statement of SAWAD Group)

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FINANCIAL HIGHLIGHTS

PROPORTION OF LOAN RECEIVABLE AGING

“ 77% of the loans are in the current category.”

Current or Past due less than 1 month 77% Past due 1-3 months 19% Past due 3-6 months 3% Past due 6-12 months 1% Past due > 12 months 1%

(Consolidated financial statement of SAWAD Group)

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FINANCIAL HIGHLIGHTS

(Consolidated financial statement of SAWAD Group)

5.84 5.30 5.00 4.86 4.85 4.62 4.46 3.63 4.60 4.55 4.88 4.71 8.03 5.45 5.02 3.66 4.33 4.32 3.64 3.17 3.16 3.07 3.18 2.91 2.84 2.23 4.64 4.27 4.52 3.83 4.13 3.96 4.03 3.26 3.06 3.18 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 NPL Provision

NPL & Provision

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FINANCIAL HIGHLIGHTS

(Consolidated financial statement of SAWAD Group)

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19

Yeild

Cost of funding Yeild Nim

17.93% 3.44% 21.37%

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FINANCIAL HIGHLIGHTS

(Consolidated financial statement of SAWAD Group)

Provision Breakdown

812.96 499.97 162.24 312.99 207.71

• 200.00

400.00 600.00 800.00 1,000.00 1,200.00 1,400.00

SAWAD BFIT

S14 FM BFIT

812.96 1,182.91

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FINANCIAL HIGHLIGHTS

(Consolidated financial statement of SAWAD Group)

1,193.67 1,246.89 1,247.56 1,255.43 1,243.67 1,384.45 1,531.78 1,636.61 1,657.69 1,743.37 376.22 398.59 364.71 394.75 404.11 467.72 480.33 520.34 478.16 594.80 13.91 92.64 117.52 34.75 94.45 21.56 14.13 1.36 12.47 3.23 80.00 80.00 185.65

• 500.00

1,000.00 1,500.00 2,000.00 2,500.00 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019

Revenue Breakdown

Interest Income Other Fee Income AMC Gain on sale of Investment from BFIT PPA

COMPANY PROFILE 1 2 FINANCIAL HIGHLIGHTS 3 OPERATIONAL GOALS 4 INVESTMENT HIGHLIGHTS 5 CORPORATE SOCIAL RESPONSIBILITY

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HIGH PROFITABILITY AND REVENUE High interest and fees income sufficiently matching the risks and expenses. STRICT LOAN APPROVAL POLICY Verification of collateral/guarantor and loan to value range of 30-70%.

INVESTMENT HIGHLIGHTS

ON TRACK TO HAVING THE LARGEST NETWORK…

HIGH AND CONTINUOUS GROWTH High and continuous growth in the business; with large population still without means to access the traditional banking system. EFFECTIVE RISK MANAGEMENT Effective risk management process; in credit assessment and debt collection, utilizing our vast database. LARGEST BRANCH NETWORK More than 3,235 branches covering all regions; managed with tight system of internal controls. EXPERIENCED MANAGEMENT TEAM Team of senior management with more than 30 years of experience in the business.

COMPANY PROFILE 1 2 FINANCIAL HIGHLIGHTS 3 OPERATIONAL GOALS 4 INVESTMENT HIGHLIGHTS 5 CORPORATE SOCIAL RESPONSIBILITY

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CORPORATE SOCIAL RESPONSIBILITY

SRISAWAD FOUNDATION

AIMS AND OBJECTIVES

• To support children and develop

those in need to become self- dependent members of society.

• To support and develop the

handicapped to have better quality of life to become self- independent.

• To support activities related to

social development and stability

• f humanity.
• To support both government and

private sectors to collaborate with charitable organizations.

QUESTIONS ANSWERS