Synergetic Auto Performance Public Co. Ltd. · SET:ASAP
Synergetic Auto Performance Public — Q1 2019 Earnings Presentation
37 slides from Synergetic Auto Performance Public's earnings presentation, May 28, 2019
Slide 1: Strictly Private & Confidential
Strictly Private & Confidential
Slide 2: Disclaimer
Disclaimer 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 o
Slide 3: Agenda
Section 1 Industry Landscape Section 2 Q1/2019 Results Section 3 Financial Target & Strategies 2020 Section A Appendix
Slide 4: Industry Landscape
INDUSTRY LANDSCAPE
Slide 5: Domestic car sales returning to its norm and corporate/rental fleet continue to expand
“Domestic car sales returning to its norm and corporate/rental fleet continue to expand with mix shifted” Fleet market has been growing steadily regardless of effect from economy and fluctuation Numbers of new cars sold in Thailand in cars market (mn cars) • Fleet market has 2 main group of players;
Slide 6: 2018 Car Rental Market
2018 Car Rental Market “Steadily growth and favorable outlook with double the GDP growth” • Car rental market size in 2017 was at THB 42.5 bn, growing steadily at the rate of 15% CAGR from 2006-2017 Car Rental • The market can be classified into 2 categories; long-term rental and short-term rental O
Slide 7: Q1/2019 Quarterly Results
Q1/2019 QUARTERLY RESULTS Page 6
Slide 8: Key Updates: Q1/2019
Key Updates: Q1/2019 1. Going on to 20,000 fleets Other Development in Q1/2019 Total fleet 17,757 of which 615 net increase in portfolio (+3.6%) Portfolio Expansion: Expanding portfolio to serve increasing demand in all segments leading asap to be one of the largest fleet operators in Thailand (with
Slide 9: Revenue by Business Segments
Revenue by Business Segments Q1/2019 Total Revenue : THB 762 mn Car Rental Business (THB 652 mn) Used Car Sales Business (THB 90 mn) Other Revenue (THB 20 mn) 12% 2% 86% • Revenue from property rental • Revenue from insurance Auction House Online Sales • Commission Long-term Short-term asap Auto Par
Slide 10: asap's Portfolio – Car Rental Business
asap’s Portfoilio – Car Rental Business Portfolio by type of cars Revenue by type of Customers for Q1/2019 Corporate – LT 81% 11,722 13,314 14,942 17,142 17,757 Corporate – Chauffer 2% 9% 8% 8% 8% 8% Government 12% THB 652 mn 34% 36% 37% 37% 37% Individual – ST & LT 5% 1% 1% 1% 1% 1% 16% 15% 13% 13%
Slide 11: Financial Performance
Financial Performance 1/2018 1/2019 % QoQ Income Statement (THE mn) % of sales (THB mn) % of sales Total revenue 599 100.0% 743 100% 424.0% (1 ) Revenue from car rental 485, 81% 652 87.8% +34.4% 2 ] Revenue from used cars 114 19% 90 12.1% (21.1%) 2] Revenue from property rental - 0.0% 1 0.1% nia Cos
Slide 12: Car Rental Business
Car Rental Business Car rental revenue was THB 652 mn in Q1/2019 +34.4% QoQ 700 EBITDA Margin 100% and with 93% contribution from long-term car rental 652 600 74.2% Revenue (THB mn) 71.8% 72.7% 68.4% 71.5% 71.0% 68.7% 69.7% 70.5% 75% • Revenue from long-term car rental was at THB 605 mn +34% 500 Mar
Slide 13: Used Car Sales Business
Used Car Sales Business Used cars sales revenue was THB 90 mn in Q1/2019 -21% 150 Gross Profit Margin 20% QoQ 110 Revenue (THB mn) • Used cars sold in Q1/2019 were through auction at 15.3% 12.8% 15% 10.6% Margin (%) while online and direct sales accounted for 73.8% and sales to current user accounte
Slide 14: Key Financial Ratios
Key Financial Ratios Q1/2019 2018 2017 2016 Liquidity Ratios Collection Period (days) 38.29 35.54 33.46 35.42 Days Payable (days) 95.93 57.76 41.90 73.29 Efficiency Ratios Return on Assets (%) 0.18 0.84 1.99 1.39 Return on Equity (%) 1.57 6.18 14.57 11.10 Leverage Ratios Debt to Equity (times) 7.60
Slide 15: Recent Development 2019
RECENT DEVELOPMENT 2019 Page 14
Slide 16: Key Updates – Upcoming in 2019
Key Updates – Upcoming in 2019 1 Long-term rental 2 Short-term rental 3 asap GO 4 asap Select • Net increase of ~3,000 - 4,000 • Expect to breakeven for • New B2B segment: 400 to 600 • Five franchisees contracts cars to the portfolio operations from partnership with cars with large corporate signed
Slide 17: Month/Year Jan Feb
14000 12000 10000 ปี 2016 8000 ปี 2017 6000 ปี 2018 ปี 2019 4000 2000 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Month/Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total ปี 2016 251 687 811 1,132 859 907 2,040 1,389 2,451 2,680 2,873 4,589 20,669 ปี 2017 4,117 3,456 3,292 3,495 3,
Slide 18: asap Select Franchise
fasap asap Select Franchise
Slide 19: asap Select Franchise
| Asap Select Franchise ° ¢ 5 Franchisees signed for 2019 * Location for 2019 Operation: ° oe) » opeee ue. ° Go iang Mai-L Open Q4/19 (est.) -) ° * Nakhon Ratchasima — M Open Q3/19 (est.) ) * Ubon Ratchathani-S Open Q3/19 (est.) * Nonthaburi - S$ Open Q3/19 (est.) * Bangkok (Onnut)-SS Open July Page
Slide 20: Target & Strategies
TARGET & STRATEGIES
Slide 21: Financial Target
Financial Target “Our journey towards achieving 2020 target” Key Indicators 2017A 2018A 2019F 2020F 2020 Target: ASAP to be … Number of Cars 11,395 17,142 19,842 22,000 1 A leading player in rental cars fleet Total Revenue 2,112 2,634 3,198 3,600-4,000 (THB mn) Gross Margin 2 The largest fleet use
Slide 22: Strategic Roadmap
Strategic Roadmap 2020 GOALs Rental Revenue Proportion : Long-Term vs Others ≈ 80 : 20 % Net Profit Margin ≈ 2 - 4% HOW TO GROW LONG-TERM RENTAL BUSINESS SHORT-TERM RENTAL BUSINESS DE-FLEET BUSINESS “Expanding portfolio to both corporate and “Expanding short-term portfolio towards more “Launch new b
Slide 23: Appendix
APPENDIX
Slide 24: Q1/2019 Statement of Financial Position
Q1/2019 Statement of Financial Position (unit THB ’000) 31 Dec 2018 % of 31 Mar 2019 % of total assets total assets % change Cash & cash equivalents 72 0.6% 28 0.2% -61.1% Accounts receivables 311 2.5% 312 2.4% 0.3% Cars 11,328 89.6% 11,588 89.8% 2.3% Other PPE 58 0.5% 58 0.4% 0.0% Other assets 870
Slide 25: Q1/2019 Income Statement
Q1/2019 Income Statement (unit THB mn) Q1/2018 % of Q1/2019 % of % change revenue revenue YoY Revenue 599 100.00% 743 100.00% 24.0% Cost of sale and services (466) (77.8%) (599) (80.6%) 28.5% Gross Profit 133 22.2% 144 19.4% 8.3% Selling Expense (10) (1.7%) (13) (1.7%) 30.0% Administrative Expense (
Slide 26: Q1/2019 Statement of Cash Flow
Q1/2019 Statement of Cash Flow (unit THB mn) Q1/2018 Q1/2019 % change QoQ Earnings before income tax 32 6 (81.3%) Adjustment for depreciation and amortization 255 351 37.6% Other adjustment 53 73 37.7% Change in operating assets and liabilities 17 93 447.1% Cash flows from operating activities 357 5
Slide 27: Our Achievement Stories
Our Achievement Stories “asap has been continuously developing its business and providing service as superior and satisfied as possible” K.Songvit & K.Parinda opened Siam Nissan P2M Co., Ltd. as Nissan’s car dealer (3 branches at present) 1995 Increase registered capital to THB 363.00 mn from 10
Slide 28: Good CG Practice for Car Procurement
Good CG Practice for Car Procurement Strict internal policy for car procurement • Procurement policy set up and approved by the board of directors • Clear pricing structure specified in the policy having MSRP as reference price list • Keep all records of information and documents and report to Audit
Slide 29: ASAP Stock Information
ASAP Stock Information Stock Information Share Price Movement Bloomberg/ Reuters ASAP TB/ ASAP BK Share Price (March 29, 2019) THB 3.08 15 300 52-week high (March 31, 2019) THB 10.90 52-week low (March 31, 2019) THB 3.08 12 No. of paid-up shares 726 mn Share price (THB) 200 Vol. (mn shares) Market C
Slide 30: Business Model – Car Rental Business
Business Model – Car Rental Business “Integrated business model drives profitability throughout the portfolio” Long-term Car Rental Short-term Car Rental Corporate and SME customers Tourists, businessmen, commuters 1-5 year contracts Daily to monthly contracts Mass and premium cars with ta
Slide 31: Competitive Advantages
Competitive Advantages “Fleet optimization is the key to business success” Pre-fleet In-fleet De-fleet Effective procurement strategy: Operational cost effectiveness: Expertise in used car management: Fast procurement Economy of scale from resource Better maintenance quality Customize for sp
Slide 32: Long Term Car Rental Market
Long Term Car Rental Market “Corporate fleet shifting from owning to operating lease and new demand from logistics to serve fast growing e-commerce” Market Characteristics Recent Market Updates Our Strategies • Red ocean market with high growth and high • Dealer as a service “Build well balanced & p
Slide 33: Short Term Car Rental Market
Short Term Car Rental Market “Time to revolutionize the market with new business model” Market Characteristics Recent Market Updates Our Strategies • Short-term car rental market in Thailand is • Increasing use of on demand services “Create a platform to revolutionize on-airport concentrated mainly
Slide 34: Used Cars Market
Used Cars Market “Technology shifts the market from offline to online and increases the power of customer” Market Characteristics Recent Market Updates Our Strategies • Ending point of the value chain where cars • Rising bargaining power of customers “New business model for de-fleeting to from both
Slide 35: Business Model – Used Car Sales
Business Model – Used Car Sales “Developing towards profit enhancement for the used car sales” Used car sales business Auction Online & Direct Sales Asap Auto Park • Current used cars will be • asap partners with leading • asap Auto Park will be the directly sent to the auction online used cars webs
Slide 36: Track Record – Car Rental Business
Track Record – Car Rental Business “More than 10 years of experience in the industry builds a solid track record” No. of rental cars in portfolio CAGR ≈ 33% 17,757 “Key business risks are eliminated through our strong Since 2016 15,679 customer profile and car portfolios” 10,559 7,512 Our customers’
Slide 37: Q&A and Contact us
Q&A and Contact us Synergetic Auto Performance Public Company Limited fasap Contact person Ms.Siriporn Sirisap Company Secretary & Investor Relations Tel : +662-091-8000 Ext.1100 Email : Siriporn.s@asapcarrent.com Website : www.asapcarrent.com Page 45
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