Slide 1: HUMAN Quarter 2 2018
HUMAN QUARTER 2 2018
Slide 2: Who Are We and What We Do
1. WHO ARE WE AND WHAT WE DO 2
Slide 3: Board of Directors
BOARD OF DIRECTORS Tanwa Laohasiriwong Chairman Dr.Anuphan Anotai Kitnijchiva Adulphan Patara Dr. Thanachart Supoj Director Yongvanich Numnon Director Singsanei Independent Independent Independent Director Director Director Soontorn Dentham Vice Chairman หมายเหตุ *กรรมการที่มีความรู$และประสบการณ,ในก
Slide 4: Management Board
MANAGEMENT BOARD Sasithorn Hiransak COO – Financial Hataichanok Solutions Suwanjang CTO Soontorn Dentham Founder & CEO Serene Lim Chuenchom Valeeporn Chairuen COO – Overseas Techarungkiat CFO Operations COO – HR Solutions 4
Slide 5: Our 15 Years Journey in HR Domains
Humanica profile Our 15 years 8 Dec 2017 2018 Journey We are listed Move to our new office In HR Domains 2017 Expanding to Singapore and Malaysia Mission statement 2016 To help the employees of our clients TICTA Award winner work better & live happier 2015 Bai Po’s award 2003 Start with 30B THB 2005
Slide 6: Biggest HR Solution Provider in Thailand
TODAY THE BIGGEST HR SOLUTION PROVIDER IN THAILAND THE BIGGEST PARTNER IN THAILAND
Slide 7: Top Tier MNC & Local Enterprises
TODAY WE ARE SERVING TOP TIER MNC & LOCAL ENTERPRISES IN SINGAPORE, MALAYSIA, THAILAND BANGKOK JAPAN, KOREAN, VIETNAM & DUBAI PENANG HUMANICA’S OFFICE MALAYSIA OFFICE WITH < 30 HEADCOUNT SINGAPORE OFFICE WITH > 300 HEADCOUNT SINGAPORE
Slide 8: Humanica Profile
Humanica profile HUMANICA HR SOLUTION FINANCIAL SOLUTION HPO HRS TMS ERP ACCOUNTING HR & PAYROLL HR SYSTEM TALENT MGT. ERP ACCOUNTING OUTSOURCING IMPLEMENTATION PLATFORM IMPLEMENTATION SERVICES ESSPACE 8 SAP ADD ON 8 SUPPORTING IT INFRASTRUCTURE SOFTW ARE PLATFORM & BI BACK OFFICE DEVELOPMENT DATA C
Slide 9: Flagship HR Solution
FLAGSHIP HR SOLUTION
Slide 10: Financials & Keynotes
2. FINANCIALS & KEYNOTES 10
Slide 11: HR Solution: 7 Countries, 326,695 Users
HR Solution 7 countries 326,695 users 365 clients 15% Fortune 500 Companies or Companies listed in SET
Slide 12: Financial Solution: 176 Clients
Financial Solution 176 clients 13 clients listed in Thailand
Slide 13: Total Revenues
TOTAL REVENUES 600.0 31.4 % CAGR 482.4 500.0 2014-2017 400.0 351.9 300.0 254.3 Revenue grew 8.7% YoY 237.7 212.8 200.0 100.0 0.0 2014 2015 2016 2017 1H2018
Slide 14: Revenue Breakdown
REVENUE BREAKDOWN 25.2% 19.6% 30.3% 30.1% 28.3% 80 : 20 Business model 74.8% 80.4% 69.7% 69.9% 71.7% 2014 2015 2016 2017 1H2018 HR Financial Solutions
Slide 15: Recurring vs Non-Recurring Revenue
RECURRING VS NON-RECURRING 24.3% 20.9% 28.8% 39.5% 36.2% Recurring revenue is 79.1%. 75.7% 79.1% 71.2% 60.5% 63.8% 2014 2015 2016 2017 1H2018 Recurring Non-recurring
Slide 16: Gross Profit
GROSS PROFIT 42.3% 45.0% 188.9 38.1% 40.0% 34.0% 39.5% 32.2% 35.0% 132.6 30.0% Gross profit margin is 42.3% 105.6 25.0% 80.0 20.0% 68.1 15.0% 10.0% 5.0% 0.0% 2014 2015 2016 2017 1H2018
Slide 17: SG&A Expenses to Total Revenue
SG&A EXPENSES TO TOTAL REVENUE 90.0 20.0% 17.5% 17.2% 79.3 80.0 18.0% 16.4% 16.0% 70.0 60.4 13.3% 60.0 12.5% 14.0% 12.0% Lower administrative cost 50.0 41.6 partially due to write-back 10.0% 40.0 33.8 of bad debt. 8.0% 30.0 26.6 6.0% 20.0 4.0% 10.0 2.0% 0.0 0.0% 2014 2015 2016 2017 1H2018 SG&A
Slide 18: SG&A Expenses to Total Revenue
SG&A EXPENSES TO TOTAL REVENUE 90.0 20.0% 17.5% 17.2% 79.3 80.0 18.0% Others 16.4% 16.0% 17.5% 70.0 60.4 13.3% 60.0 12.5% 14.0% 12.0% Wage & 50.0 Rent & 41.6 10.0% Utility salary 40.0 33.8 45.0% 8.0% 14.4% 26.6 30.0 6.0% 20.0 Depre& amortization 4.0% 23.2% 10.0 2.0% 0.0 0.0% 2014 2015 2016 2017 1H20
Slide 19: Net Profit
NET PROFIT 25.9% 20.3% 20.2% 16.6% 97.5 Net profit margin increased 71.5 from 15.82% to 25.9% YoY. 65.9 12.3% 39.4 26.2 2014 2015 2016 2017 1H2018
Slide 20: Assets and Liabilities
ASSETS AND LIABILITIES Liabilities Assets 166.0 1,206.9 1,156.1 11.0 266.7 119.1 539.0 111.1 111.7 31.6 30.3 29.2 433.6 78.3 366.1 889.4 155.0 13.6 197.6 260.8 667.9 146.1 117.7 80.8 82.5 87.5 220.0 172.8 80.0 64.7 2014 2015 2016 2017 1H2018 Current assets Non-current assets 2014 2015 2016 2017 1H20
Slide 21: Equity and Liabilities to Equity Ratio
EQUITY AND LIABILITIES TO EQUITY RATIO Equity Liabilities to Equity Ratio 1,044.4 1,087.8 0.83 0.66 321.0 0.35 200.0 0.11 119.3 0.11 2014 2015 2016 2017 1H2018 2014 2015 2016 2017 1H2018
Slide 22: Revenue by Segment
REVENUE BY SEGMENT 300.0 250.1 250.0 230.0 Revenue for HR Solution 201.0 200.0 174.7 increased by 15.04% YoY while revenue for 150.0 financial solution 100.0 decreased by 11.31%. 55.3 49.1 50.0 - HR Solution Financial Solution Total Revenue 1H 17 Revenue 1H 18
Slide 23: Gross Margin by Segment
GROSS MARGIN BY SEGMENT HR Solution Financial Solution Total 120.0 50.0% 45.0% 105.6 45.0% 100.0 90.3 35.6% 78.7 40.0% 42.2%35.0% 31.2% 80.0 29.7% 34.2% 62.3 30.0% 60.0 25.0% 20.0% 40.0 15.0% 16.4 15.3 10.0% 20.0 5.0% 0.0 0.0% 1H2017 1H2018 1H2017 1H2018 1H2017 1H2018
Slide 24: Balance Sheet
BALANCE SHEET Unit : Million Baht 2014 2015 2016 2017 1H2017 1H2018 Cash 19.8 151.4 46.3 88.1 75.3 95.7 Account receivables 55.7 65.0 120.6 138.5 124.8 136.7 Investments - - - 650.1 - 640.8 Fixed assets 18.5 16.7 34.1 32.0 39.7 60.6 Intangible assets 28.0 22.7 162.0 151.6 155.7 140.1 Computer softwa
Slide 25: Income Statement
INCOME STATEMENT Unit : Million Baht 2014 2015 2016 2017 1H2017 1H2018 % YOY Sales and service income 211.4 235.6 347.7 478.9 230.0 250.1 8.7% Other income 1.3 2.1 4.3 3.5 4.1 4.3 5.4% Total revenues 212.8 237.7 352.0 482.4 234.1 254.3 8.6% Cost of sales and services 143.6 156.4 215.1 290.0 151.4 14
Slide 26: Key Performance Ratios
KEY PERFORMANCE RATIOS Financial Ratios 2014 2015 2016 2017 1H2017 1H2018 Gross margin (sales & service) % 32.2% 34.0% 38.1% 39.4% 34.2% 42.2% Operating margin % 13.6% 15.3% 19.5% 22.2% 16.4% 27.9% Net profit margin % 12.3% 16.6% 20.3% 20.2% 15.8% 25.9% ROE % 25.6% 24.7% 27.4% 14.3% 25.0% 12.4% ROA
Slide 27: Outlooks and What's Next
3. OUTLOOKS AND WHAT’S NEXT 27
Slide 28: Market Outlook – Thailand
MARKET OUTLOOK–THAILAND HUMANICA DOMINATES THE PAYROLL OUTSOURCING MARKET, ALTHOUGH STILL REPRESENT ONLY 2% OF TOTAL POTENTIAL MARKET Process by * Includes: Humanica General Outsourcing, (2%) People Plus, Humanica Other and Power Players Vision Excludes: Tisco * and small independent payroll 10.7mil
Slide 29: Largest Listed Companies in Thailand Still Processing Own Payroll
LARGEST 50 LISTED COMPANIES IN THAILAND WHO IS STILL MARKET OUTLOOK–THAILAND PROCESSING THEIR OWN PAYROLL Humanica’s Competitor's Humanica’s Competitor's # Companies client client # Companies client client 1 PTT 26 Home Product Center 2 The Siam Cement 27 Glow Energy 3 Thai Beverage 28 Land and Hous
Slide 30: Market Outlook – Asia: Payroll Outsourcing Market Size & Growth
SIZE & GROWTH OF PAYROLL OUTSOURCING MARKET IN APAC MARKET OUTLOOK–ASIA • High growth in APAC Payroll Outsourcing market is expected to hold steady. • Buyer approach moves towards payroll technology. • Companies in Asia traditionally see payroll as administrative. This is changing due to higher comp
Slide 31: Maturity Level of Payroll Outsourcing
MATURITY LEVEL OF PAYROLL OUTSOURCING MARKET OUTLOOK–ASIA • Companies in more countries see values in payroll outsourcing. • Shift from traditional software on premises to BPaaS – Business Process as a Service. Source – Everest Group: Payroll Outsourcing in Asia Pacific 2017
Slide 32: Focus on Attractive Sustainable Returns for Shareholders
Focus is on generating attractive sustainable returns for shareholders PROPOSITION EBIT drivers Shareholder value Investment creation Targeted double- Increase EPS Market digit organic growth Existing Businesses expansion Acquisition New market Attractive dividend Product & Service segment and yield
Slide 33: Continual Innovation
COUNINUAL INNOVATION Products and Services
Slide 34: New Businesses & Products
New Businesses & Products Wealth and Health Practiz Total Benefits Flexi Benefits Micro-Learning Personal Wealth mgt. Learning Reinforcement Gamification Continuous Performance Mgt. Outsourcing
Slide 35: Expansion of Product and Services
Expansion of Product and Services SME focus All-in-one HR solution
Slide 36: Mobile Based Solution
MOBILE| BASED SOLUTION
Slide 37: Thanks! Any questions?
THANKS! Any questions? You can find me at ◦ Soontorn.D@humanica.com ◦ www.humanica.com Disclaimer: Items published on this presentation are intended to provide financial information or business information of HUMAN. Some forward-looking statement may be based on management’s view at present time. Th