Strictly Private & Confidential
Synergetic Auto Performance Public Company Limited
Strictly Private & Confidential
SET Opportunity Day
8 March 2018
Synergetic Auto Performance Public Company Limited SET Opportunity - - PowerPoint PPT Presentation
Strictly Private & Confidential Strictly Private & Confidential Synergetic Auto Performance Public Company Limited SET Opportunity Day 8 March 2018 Disclaimer The information contained in this presentation is strictly confidential and is
Strictly Private & Confidential
Strictly Private & Confidential
8 March 2018
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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Car Rental % YoY Chg Used Car Sales % YoY Chg Number of cars
(cars)
Revenue
(THB mn)
Gross Profit
(THB mn)
EBITDA
(THB mn)
Net Profit
(THB mn)
Revenue: Strong revenue growth from car rental (+48%) from portfolio expansion to more than 10,000 cars in 2017 as well as used car sales (+41%) from higher number of end-of-contract cars and higher used car price Gross profit: Higher gross profit in car rental (+42%) from increasing in revenue however gross margin declined by 1% from insurance premium and short- term car rental cost while gross profit from used car sales increased by 78% EBITDA: Increasing EBITDA (+47%) while EBITDA margin declined by 0.7% from higher employee related expense and integration of CarPro and SAP B1 system Net profit: Higher net profit (+116%) and improving net margin by 2% from tax benefit and reclassification of accounting standards (totaling of THB 60 mn)
*Note: Number of cars excludes 574 replacement cars Page 4
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245 255 286 282 291 331 398 418 477 511 552 573 0% 5% 10% 15% 20% 25% 30% 100 200 300 400 500 600 700 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Margin (%) Total Revenue (THB mn) Revenue (LHS) GPM Car Rental (RHS) GPM Used Car Sales (RHS) NPM (RHS) % Growth QoQ Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Revenue 3% 4% 12%
3% 14% 20% 5% 14% 7% 8% 4% Gross Profit 87% 7% (7%) 21% 10% 7% 20% 13% 10% 4% 14% (3%) Net Profit 663% 33% (22%) 47% 5% (4%) 12% (25%) 129% 0% 6% 36%
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“Portfolio expansion to more than 10,000 cars in Q4 2017”
Long-Term
contracts in 2017
Short-Term
Chauffer
asap GO
Car Rental Business Used Car Sales Business
9,970 410 130 49
Long-Term Short-Term Chauffer asap GO
Expanding channels through online sales
cars sales in Q4 2017
Improving profitability
20% from current channels at 10%
574
Replacement Cars
10,559
Rental Cars Page 6
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Update photos of asap Auto Park 75% Completion 90% Occupancy
On schedule (to be opened in April 2018)
Under study- expect to roll out the system for potential franchises in the 2nd half of 2018
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“Car rental industry in Thailand is only scratching the surface of total car market”
10% 90%
Fleet Market Retail Market
60% 40% Corporate Fleet Car Rental Operator
80,000 cars
Outstanding fleet
new purchase cars in 2017
160,000
cars
240,000
cars
average fleet tenor
Page 9
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Corporate Fleet Car Rental Operator
Page 10
Long-term rental focused Short-term rental focused
Market Characteristics
is still fragmented
car in portfolio
new acquisition
by car rental operator in 2017
rental market share
12.5% 6.8%
160,000
cars
240,000
cars
“asap is shifting from mono-line car rental to a fully integrated business model” “Higher new acquisition rate indicates future increase in market share”
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Car Rental Market
steadily at 15% CAGR from 2006 to 2017
long-term rental mainly by corporate customers while the rest 30% are short- term
grow at 6-8% from growth in logistics services and tourism industry
the rate of 39% CAGR and increasing market share from 0.1% to 4%
2006 2017 2018
Car Rental Market Size vs asap Car Rental Revenue (THB mn)
“Car rental market has a solid track record from past to present with a favorable outlook”
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42,500 10,500 45,000 – 45,900
+15% CAGR
+6% to 8%
Source: Thai car rental association, Kasikorn Research Center
46 1,682 +39% CAGR
asap’s Revenue Car Rental Market
0.1%
Market share
4%
Market share
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60% 40%
Corporate Fleet Car Rental Operator
ZZZ
requires much larger fleets for logistic industry Although the monetary cost is not much different but fleet rental provides numbers of advantage to minimize the
spent on fleet management
maintenance and insurance
60% 40% 40% 60%
Long-term rental Short-term rental
country benefits short-term rental
car rental operators
large brands stepping into B2C market
2012
72 million
2017
129 million
+79%
2012
480,000 flight
2017
820,000 flight
+71% Source: AOT 56-1 form, The Bureau of Registration Administration, World bank
1 2 3
On-airport Off-airport
Car rental service location in Thailand On-airport Off-airport
52 >700 98 408
Global car rental service location
Current Future
Page 12
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Page 14
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“Fleet management integrated model”
Long-term Car Rental Short-term Car Rental Chauffeur-driven Car Rental Sharing Platform
business requirement
“Main business, recurring income” “Establish brand, enhance margin” “Value-added, high margin” “Serve the unserved demand”
“Integrated business model drives profitability throughout the portfolio”
Page 15 Note: Number of cars was as of 31 Dec 2017
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Corporate – LT 72% Corporate – Chauffer 3% Government 22% Individual – ST & LT 3%
Portfolio by type of cars (as of 31 December 2017) Revenue by type of Customers in 2017
Small 1,785 16% Compact 2,845 26% Mid-Size 1,872 17% Executive 151 1% Pick Up 3,453 31% Van 1,027 9% 11,133 Cars THB 1,682 mn Commerce 32% Banking & Finance 16% Food & Beverage 13% Construction Material 11% Logistics 9% Others 20%
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96 116 248 554 1,166 1,800 2,761 3,367 3,679 4,780 7,512 10,559 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
CAGR ≈ 42% 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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directly sent to the auction houses
margin from each car sent to them
“Developing towards profit enhancement for the used car sales”
End-of-contract Cars Used car sales business
Auction House
partners with
Thailand’s
more than 1.6 million active users to expand channels of used cars sales
is a subsidiary of iCar Asia, the largest automotive website network in ASEAN
percentage on value
value of car sales
Current Channel Future Channel
Online Sales
New Channel (started in Q417)
new channel for used car sales and short-term rental services.
will improve from selling directly to end users.
branch to be completed in Q1’18 and target to expand 15-20 franchises in 2020 asap Auto Park
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“Fleet optimization is the key to business success”
Pre-fleet In-fleet De-fleet
Effective procurement strategy: Fast procurement
usage, appearance and driving energy
large volume Acquisition cost Funding cost Operational cost effectiveness: Economy of scale from resource utilization Maintenance cost
maintenance centers
dealer Car insurance Expertise in used car management: Better maintenance quality Selective marketable models/brands Online Sales - partner with
channel (started in Q4 2017) asap Auto Park - used car showroom (start in early 2018)
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79%
Car Rental Business
Used Car Sales Business Other Revenue
20% 1%
Long-term Short-term Chauffer-driven asap Go Auction House Online Sales
asap Auto Park (future channel)
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298 347 379 404 437 462
24.4% 25.3% 25.1% 23.9% 25.3% 22.8% 71.9% 70.7% 74.2% 71.7% 72.7% 68.0% 0% 25% 50% 75% 100% 100 200 300 400 500 600 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Margin (%) Revenue (THB mn)
Revenue by Products in Q4/17
Car rental revenue was THB 462 mn in Q4 2017 +5.8% QoQ and +33.3% YoY with 93% contribution from long-term car rental
QoQ primarily from portfolio expansion
from higher occupancy and rental rate during the peak season
mn
company in Q4 2017 Gross profit was at THB 106 mn with gross margin of 22.8%, dropped from 25.3% in Q3 2017, due to insurance renewal of cars purchased in Q4 2016 and cost associated to sharing platform EBITDA for car rental was at THB 314 mn with margin of 68.0% declined from 72.7% in Q3 2017 from increasing number of staffs, cost of system integration with SAP and CarPro to support expansion of the company and off-items totaling of THB 7.1 mn
Gross Profit Margin EBITDA Margin
Long-Term 93% Short-Term 4% Chauffer 3% asap GO 0%
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Revenue of used car sales by channel in Q4/17
100 71 99 107 115 111
10.4% 8.1% 8.2% 10.0% 10.1% 11.9% 0% 5% 10% 15% 20 40 60 80 100 120 140 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Margin (%) Revenue (THB mn)
Number of cars sold by channel in Q4/17
Gross Profit Margin
Auction 92% Online 8%
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Auction 95% Online 5%
Used cars sales revenue was THB 111 mn in Q4 2017 -3.4% QoQ but +56.1% YoY
cars sold in Q4)
QoQ from introduction of online channel
revenue from used car sales) Gross profit margin was at 11.9% improved 1.8% QoQ and 3.8% YoY from recovery of used car market and partly higher margin from online sales Used car sales through asap Auto Park will start in Q2 2018 would enhance the profit margin of used car sales for the company
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HOW TO GROW
Rental Revenue Proportion : Long-Term vs Others ≈ 80 : 20 % Net Profit Margin ≈ 8 - 10% 2020 GOALs
LONG-TERM RENTAL BUSINESS SHORT-TERM RENTAL BUSINESS USED CARS SALES BUSINESS
“Expanding portfolio to both corporate and SME to achieve scale and profitability” LONG-TERM : CHAUFFER :
corporates and SME
“Expanding short-term portfolio towards more
SHORT-TERM :
Thailand through civil aviation airports and asap Auto Park
website to reach more foreign customers
asap GO :
“Expanding new channels closer to end users enhance margin from used car sales” Auction House : Online Sales :
portion of used car sales from this channel
used cars sales and enhance the margin
asap Auto Park :
auction house
KEY MEASUREMENTS LONG-TERM : CHAUFFER : SHORT-TERM : asap GO : asap Auto Park :
Portfolio of 20,000 cars Portfolio of 500 cars Portfolio of 2,000 cars with 70% occupancy Portfolio of 300 cars (150 Office Buildings) 15-20 Outlets, 10-15%
Online Sales :
20-25 % of total used car sales
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Auto Park 1% asap GO 1% Chauffeur Driven 5% ST Car Rental 10%
1,133 1,682 2016A 2017A 2018F 2019F 2020F Long Term Car Rental Short Term Car Rental Chauffer Driven Car asap Auto Park asap GO 3,419 3,464 4,400 4,800 6,400 2016A 2017A 2018F 2019F 2020F
TOTAL CAPEX (THB MN)
LT Car Rental 83% THB 4,000 - 4,500 mn
33% CAGR
99% of CAPEX is allocated to acquisition of new cars in the fleet
(Unit: THB mn)
ASAP ESTIMATED TARGET RENTAL REVENUE 2020 EXPECTED RENTAL REVENUE CONTRIBUTION
THB 4,000 - 4,500 mn Key Financial Ratios Unit 2016A 2017A 2020F Service Revenue THB mn 1,133.00 1,681.83 4,000 - 4,500 Service and used car sale revenue THB mn 1,437.33 2,112.32 5,000 - 5,500 Gross Profit Margin % 21.61% 21.36% 22 - 25% Net Profit Margin % 4.86% 7.14% 8 - 10% Return on Assets % 1.39% 1.99% 3 - 4% Return on Equity % 11.10% 14.60% 20 - 30% Page 26
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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 (2 March 2018) THB 11.60 52-week high THB 12.50 52-week low THB 3.84
660 mn Market Capitalization THB 7,656 mn
Share Price Movement Major Shareholders
As of 1 February 2018
IPO : THB 3.03 THB 11.60 Page 28 Note:* No. of paid-up shares after dividend will increase to 726 mn shares 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) 2017 % of revenue 2016 % of revenue % change YoY Revenue 2,112 1,437 46.9% Cost of goods sold and services (1,661) (78.6%) (1,127) (78.4%) 47.4% Gross Profit 451 21.4% 311 21.6% 45.2% Selling Expense (34) (1.6%) (19) (1.3%) 74.9% Administrative Expense (110) (5.2%) (66) (4.6%) 66.9% Other income 30 1.4% 22 1.5% 34.7% EBIT 337 15.9% 247 17.2% 36.1% Finance Cost (246) (11.7%) (158) (11.0%) 56.0% EBT 91 4.3% 90 6.2% 1.1% Tax 60 2.9% (20) (1.4%) 305.9% Net Income 151 7.1% 70 4.9% 115.9% Earnings per share (at par of THB 0.50) 0.23 0.16
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(unit THB ’000) 2017 % of total assets 2016 % of total assets % change YoY Cash & cash equivalents 40 0.5% 7 0.1% 499.7% Accounts receivables 202 2.3% 185 2.9% 8.8% Cars 7,883 90.0% 5,806 91.1% 35.8% Other PPE 27 0.3% 123 1.9% (78%.1) Other assets 605 6.9% 253 4.0% 139.1% Total assets 8,757 100.0% 6,375 100.0% 37% Short & long-term loan 2,794 31.9% 1,539 24.1% 81.6% Accounts payables 132 1.5% 250 3.9% (47.2%) Finance lease liabilities 4,401 50.3% 3,817 59.9% 15.3% Other liabilities 25 0.3% 105 1.7% (76.5%) Total liabilities 7,352 84.0% 5,711 89.6% 28.7% Paid-up capital 330 3.8% 225 3.5% 46.7% Share premium 511 5.8% 0.0% N/A Retained earnings 564 6.4% 439 6.9% 28.6% Total Equity 1,405 16.0% 664 10.4% 111.7%
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(unit THB mn) 2017 2016 % change YoY Earnings before income tax 91 90 1.1% Adjustment for depreciation and amortization 915 596 53.5% Other adjustment 195 120 62.5% Change in operating assets and liabilities 107 38 181.6% Cash flows from operating activities 1,307 844 54.8% Cash flows from investing activities (1,525) (292) (422.2%) Cash flows from financing activities 251 (561) 144.7% Net increase (decrease) in cash & cash equivalent 33 (9) 455.4% Beginning cash & cash equivalent 7 16 (58.4%) Ending cash & cash equivalent 40 7 499.7%
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2017 2016 2015 2014 Liquidity Ratios Collection Period (days) 33.00 32.94 30.99 36.58 Days Payable (days) 41.33 38.33 17.45 16.51 Efficiency Ratios Return on Assets (%) 1.99 1.39 1.77 1.40 Return on Equity (%) 14.60 11.10 11.71 10.00 Leverage Ratios Debt to Equity (times) 5.23 8.60 5.17 6.34 Interest Coverage Ratio (times) 6.07 6.63 8.97 8.36
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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. 34.85% 15.15% 25.00% 25.00%
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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