Strictly Private & Confidential
Synergetic Auto Performance Public Company Limited
Strictly Private & Confidential
Synergetic Auto Performance Public Company Limited Opportunity Day - - PowerPoint PPT Presentation
Strictly Private & Confidential Strictly Private & Confidential Synergetic Auto Performance Public Company Limited Opportunity Day for Q2/2018 3 September 2018 Disclaimer The information contained in this presentation is strictly
Strictly Private & Confidential
Strictly Private & Confidential
Strictly Private & Confidential
The information contained in this presentation is strictly confidential and is provided by Synergetic Auto Performance Public Company Limited (“asap” or the “Company”) to you solely for your information. Neither this presentation nor any part hereof may be (i) used or relied upon by any other party or for any other purpose; (ii) copied, photocopied, duplicated or otherwise reproduced in any form or by any means; or (iii) redistributed, passed on or otherwise disseminated, to any other person either in your organization or elsewhere, without the prior written consent of the Company and its respective management team or advisors. By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such documents are provided without express consent from the Company and its respective management team or advisors. Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, no representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this
concerning the Company. None of the Company nor any of its management team or advisors assumes any responsibility or liability for, the accuracy or completeness of, or any errors or omissions in, any information contained herein. Accordingly, none of the above nor any other person accepts any liability (in negligence, or otherwise) for any loss arising from or in connection with any use of this presentation or its contents. This presentation is for information purpose only and does not constitute or form part of any offer or invitation by or on behalf of the Company for sale or subscription of or solicitation
any contract, commitment or investment decision in relation there to (“Securities”) in Thailand or any other jurisdiction. Any recipient considering a purchase of Securities is hereby reminded that any such purchase should be made solely on the basis of the information contained in a final offering document (which may be different from the information contained in this presentation) and subject to the selling restriction set out therein. This presentation should not be construed as legal, tax, investment or other advice. The information contained herein does not take into consideration the investment objectives, financial situation or particular needs of any particular investor, and should not be treated as giving investment advice. In addition, this presentation contains certain financial information and results of operation, and may also contain certain projections, plans, strategies, and objectives of the Company, that are not statements of historical fact which would be treated as forward-looking statements that reflect the Company’s current views with respect to future events and financial
well as various risks which are in many cases beyond the control of the Company, and which may change over time and may cause actual events and the Company’s future results to be materially different than expected or indicated by such statements. No assurance can be given that future events will occur, that projections will be achieved, or that the Company’s assumptions are correct. Such forward-looking statements are not guarantees of future performance and accordingly, the actual results, financial condition, performance
reliance on these forward-looking statements. In providing this presentation, the Company does not undertake to provide any recipient with access to any additional information or to update the information contained in this presentation or to correct any inaccuracies herein which may become apparent.
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60% 40% Corporate Fleet Car Rental Operator
“Domestic car sales returning to its norm and corporate/rental fleet continue to expand with mix shifted”
Outstanding Fleet: 450,000 cars
180,000
cars
270,000
cars Page 4
2013 2014 2015 2016 2017 2018F
Retail Fleet
Fleet market has been growing steadily regardless of effect from economy and fluctuation in cars market
Operator”
increase to about 90,000 new cars in 2017 and 2018
450,000 cars
1.33 0.88 0.80 0.77 0.87
Numbers of new cars sold in Thailand (mn cars)
0.90
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40%
“Steadily growth and favorable outlook with double the GDP growth”
Page 5 Source: Thai car rental association, Kasikorn Research Center
180,000 cars Car Rental Operator
short-term rental accounts for the rest 30% with individual use for leisure purpose
Car Rental Market Size (THB mn)
2006 2017 2018 LT - Corporate LT - Individual ST - Leisure ST - Others 42,500 10,500 45,000 - 45,900 Car Rental Market +15% CAGR + 6-8%
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Recent Development Upcoming in 2H 2018
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Long-term rental
3,105 new booking in 1H 2018
Higher demand for automotive in 2018 due to E-Commerce expansion and economic recovery
Customer loyalty and trust in ASAP
asap Auto Park Short-term rental
asap GO
Continuing Car Rental Portfolio Expansion
14,133 cars
New OTA partnerships for short-term rental
LT Rental: 12,667 cars: (+14%) Expanding portfolio by retain existing customers and acquire new customers ST Rental: 443 cars: (+12%) Calling back the cars with mileage above 50,000 km and expect to expand the portfolio in 2H/18 Chauffeur Driven: 139 cars: (+7%) asap GO: 63 cars (+19%) Integrated with haupcar and continue expanding numbers of location to cover customers demand Replacement Cars: 819 cars (+22%)
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Soft opening of asap Auto Park
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Revenue Structure for asap Auto Park
Jun 2018
Progress Update Photos
Q3 2018 Q4 2018 Rolling out Franchising Program Soft Opening (Car Rental & Used Cars)
Used cars sales 70% Short-term car rental 10% Space rental 20%
Early 2019 Grand Opening (All Area)
100%
Tenants Occupancy 2H 2019 Franchise Project to Start (1-2 locations) Note: Company Project Franchise Project
Retail Area Short-term Rental Used Cars
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Q2/2017 Q2/2018 % YoY Income Statement (THB mn) % of sales (THB mn) % of sales
Total revenue 511 635 +24% Revenue from car rental 404 79% 526 83% +30% Revenue from used cars 107 21% 109 17% +2% Cost of service and used cars (403) (79%) (498) (78%) +23% Gross profit 107 21% 137 22% +27% EBIT 82 16% 107 17% +30% EBITDA 301 59% 384 61% +28% EBT 25 5% 29 4% +16% Income Tax 9 2% 5 1%
Net profit 34 7% 34 5% +0% EPS (THB/Share) 0.07 0.05
Dec 17 Jun 18 Balance Sheet (THB mn) %of assets (THB mn) %of assets
Total assets 8,757 100% 11,011 100% +26% Total liabilities 7,352 84% 9,540 87% +30% Interest bearing debt 7,195 82% 8,810 80% +22% Total equity 1,405 16% 1,471 13% +5% D/E Ratio (Times) 6.1 5.7
Revenue from car rental: Strong revenue growth (+30%) from continuing portfolio expansion mainly in long-term rental Revenue from used cars sales: Revenue growth (+2%) from lower number of cars sold in Q2 but partly offset by higher ticket size from direct sales channel Gross profit: Higher gross profit (+27%) and gross margin (+60bps) from increase in total revenue EBT: Increasing EBT (+16%) while EBT margin decreased by 30 bps from higher higher finance cost (+36%) associated with car portfolio expansion Income tax: Tax returns of THB 5 mn reduced from THB 9 mn in Q2/17 due to higher taxable income Net profit: Stable net profit while net margin declined by 130 bps mainly from higher finance cost and reduction of tax benefit of THB 4 mn
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1 2 3 1 2 3 4 5 5 6 6 4
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82%
Car Rental Business
Used Car Sales Business Other Revenue
17% 1%
Long-term Short-term Chauffer-driven asap Go Auction House Online Sales
asap Auto Park (future channel)
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379 404 437 462 486 526
25.1% 23.9% 25.3% 22.8% 24.9% 24.1% 74.2% 71.8% 72.7% 68.4% 71.5% 71.0% 0% 25% 50% 75% 100% 100 200 300 400 500 600 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Margin (%) Revenue (THB mn)
Revenue by Products in Q2/18
Car rental revenue was THB 526 mn in Q2 2018 +8.4% QoQ and +30.3% YoY with 94% contribution from long-term car rental
QoQ primarily from portfolio expansion
from lower utilization rate from off-peak season
mn
Gross profit was at THB 127 mn with gross margin of 24.1%, decreased from 24.9% in Q1/2018 due to higher operating cost (insurance & maintenance) from long-term rental and lower revenue from short-term rental while fixed cost remains the same EBITDA for car rental was at THB 374 mn with margin of 71.0% decreased from 71.5% in Q1/2018 from lower gross profit margin
Gross Profit Margin EBITDA Margin
Long-Term 94% Short-Term 3% Chauffer 3% asap GO 0%
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Revenue of used car sales by channel in Q2/18
99 107 115 111 114 108
8.2% 10.0% 10.1% 11.9% 10.6% 9.3% 0% 5% 10% 15% 90 95 100 105 110 115 120 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Margin (%) Revenue (THB mn)
Number of cars sold by channel in Q2/18
Gross Profit Margin
Auction 62% Online & Direct Sales 30% Current User 8%
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Auction 70% Online & Direct Sales 19% Current User 11%
Used cars sales revenue was THB 108 mn in Q2 2018 -4.7% QoQ but +1.7% YoY
2018 while online and direct sales accounted for 19% and sales to current user accounted for 11%
revenue due to higher average selling price and margin Gross profit margin was at 9.3% declined 1.4% QoQ and 0.7% YoY from lower margin in auction channel Used car sales through asap Auto Park will start in mid 2018 would enhance the profit margin of used car sales for the company
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2020 Target: ASAP to be …
A leading player in rental cars fleet The largest fleet used cars supplier The most accessible platform for short-term rental and used car market The strongest car sharing system network
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Key Indicators 2017A 1H 2018 2018F 2020F Number of Cars 11,133 14,133 15,500 20,000 Total Revenue (THB mn) 2,112 1,249 2,700-2,800 4,500-5,000 Gross Margin (%) 21.36 21.87 22 - 23 22 - 25 Net Margin (%) 7.14* 5.59 6 - 7 8 - 10 ROA (%) 2.01* 1.40 1.5 - 1.8 2.5 - 3.0 ROE (%) 14.68* 9.60 10 - 12 15 - 20
“Our journey towards achieving 2020 target”
Note* : Net profit includes the effect of one-time items and tax benefits
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100 200 300 3 6 9 12 15
Share price (THB)
Volume (RHS) Price (LHS)
Stock Information
Bloomberg/ Reuters ASAP TB/ ASAP BK Share Price (16 August 2018) THB 6.05 52-week high THB 12.50 52-week low THB 3.84
726 mn Market Capitalization THB 4,392 mn
Share Price Movement Major Shareholders
As of 15 March 2018
IPO : THB 3.03 THB 6.05 Page 31 Free Float 35.1% Strategic Shareholder 64.9% Toyota @ United 25.0% @ Holding 25.0% K.Songvit & K.Parinda 14.9% Local Institution 13.5% Foreign Institution 8.6% Others 13.0%
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(unit THB mn) 6M 2018 % of revenue 6M 2017 % of revenue % change YoY Revenue 1,234 987 24.9% Cost of goods sold and services (964) (78.1%) (777) (78.7%) 24.1% Gross Profit 269 21.9% 210 21.3% 28.2% Selling Expense (19) (1.5%) (15) (1.5%) 25.1% Administrative Expense (55) (4.5%) (42) (4.3%) 30.3% Other income 14 1.2% 13 1.3% 11.4% EBIT 210 17.0% 166 16.8% 26.7% Finance Cost (150) (12.2%) (114) (11.6%) 31.4% EBT 60 4.9% 52 5.2% 16.1% Tax 9 0.7% 15 1.5% (41.5%) Net Income 69 5.6% 67 6.8% 3.0% Earnings per share (at par of THB 0.50) 0.10 0.11
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(unit THB ’000) Jun 2018 % of total assets Dec 2017 % of total assets % change Cash & cash equivalents 43 0.4% 40 0.5% 6.8% Accounts receivables 305 2.8% 202 2.3% 51.2% Cars 9,795 89.0% 7,883 90.0% 24.3% Other PPE 136 1.2% 27 0.3% 402.2% Other assets 733 6.7% 605 6.9% 21.1% Total assets 11,011 100.0% 8,757 100.0% 25.7% Short & long-term loan 3,515 31.9% 2,794 31.9% 25.8% Accounts payables 700 6.4% 132 1.5% 431.1% Finance lease liabilities 5,295 48.1% 4,401 50.3% 20.3% Other liabilities 31 0.3% 25 0.3% 22.5% Total liabilities 9,544 86.6% 7,352 84.0% 29.8% Paid-up capital 363 3.3% 330 3.8% 10.0% Share premium 511 4.6% 511 5.8% 0.0$ Retained earnings 593 5.4% 564 6.4% 5.7% Total Equity 1,467 13.4% 1,405 16.0% 4.6%
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(unit THB mn) 6M 2018 6M 2017 % change YoY Earnings before income tax 60 52 16.1% Adjustment for depreciation and amortization 533 424 25.8% Other adjustment 110 80 36.4% Change in operating assets and liabilities 13 26 (49.6%) Cash flows from operating activities 715 582 23.0% Cash flows from investing activities (437) (412) 6.2% Cash flows from financing activities (276) (101) 174.0% Net increase (decrease) in cash & cash equivalent 3 69 (96.1%) Beginning cash & cash equivalent 40 7 (499.7%) Ending cash & cash equivalent 43 76 (43.7%)
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Q2/2018 2017 2016 2015 Liquidity Ratios Collection Period (days) 36.96 33.00 32.94 30.99 Days Payable (days) 77.66 41.33 38.33 17.45 Efficiency Ratios Return on Assets (%) 1.40 1.99 1.39 1.77 Return on Equity (%) 9.60 14.60 11.10 11.71 Leverage Ratios Debt to Equity (times) 5.68 5.23 8.60 5.17 Interest Coverage Ratio (times) 5.78 6.07 6.63 8.97
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Corporate – LT 71% Corporate – Chauffer 3% Government 22% Individual – ST & LT 4%
Portfolio by type of cars (as of 30 June 2018) Revenue by type of Customers for 6M 2018
13,314 Cars THB 1,012 mn Commerce 26% Banking & Finance 17% Food & Beverage 14% Construction Material 12% Logistics 11% Others 20%
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Small 2,000 15.0% Compact 3,327 25.0% Mid-Size 1,921 14.4% Executive 164 1.2% Pick Up 4,790 36.0% Van 1,112 8.4%
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96 116 248 554 1,166 1,800 2,761 3,367 3,679 4,780 7,512 10,559 13,314 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Jun-18
CAGR ≈ 44% asap’s customers
Note: The number excludes amount of replacement cars
“Key business risks are eliminated through our strong customer profile and car portfolios”
car rental revenue in the past 5 years Our customers’ retention rate “More than 10 years of experience in the industry builds a solid track record”
High marketability & liquidity brand Good used car price Reliable quality
Contract Extension Portfolio Expansion
in terms of number of cars
from expired contracts in 2017
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“asap has been continuously developing its business and providing service as superior and satisfied as possible”
1995
Nissan’s car dealer (3 branches at present)
2004
establishing Toyota @ United Co., Ltd. as Toyota’s car dealer (6 branches at present)
2008
2015
2006
registered and paid-up capital of THB 5.00 mn
under “sap” to the world leading logistic company
2009
expanded business to provide self-driven short-term car
rental service under “asap”
2016
service at 5 international airports (Chiang Mai, Chiang Rai, Don Mueang, Hat Yai, and Suvarnabhumi)
service and rebranding to use single “asap” brand
2011
2017
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Public Long-term/ Chauffeur-driven car rental Return cars when contract expired Short-term car rental service
Financial institutions
At Holding Co., Ltd. 35.1% 14.9% 25.0% 25.0%
Toyota @ United Co., Ltd.
Shareholding Structure
Used car buyers
Main channels of selling used cars are:
Provide source of fund for cars purchase Sell used cars
Corporate Customers Individual Customers
Return cars
Car dealers
Purchase cars from dealer Provide new cars
Benefits of having Toyota @ United as a major shareholder
Other car dealers
Business Flow
Strict internal policy for car procurement
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