Synergetic Auto Performance Public Co. Ltd. · SET:ASAP
Synergetic Auto Performance Public — Q3 2018 Earnings Presentation
32 slides from Synergetic Auto Performance Public's earnings presentation, Nov 20, 2018
Slide 1: Synergetic Auto Performance Public Company Limited Q3 Analyst Meeting
Strictly Private & Confidential Strictly Private & Confidential Synergetic Auto Performance Public Company Limited Q3 Analyst Meeting 20 November 2018
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
AGENDA Section 1 Industry Landscape Section 2 Performance Update & Recent Development Section 3 2020 Financial Target & Strategies Section A Appendix
Slide 4: Industry Landscape
INDUSTRY LANDSCAPE
Slide 5: Industry Landscape
Industry Landscape “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 mai
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: 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 8: 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 9: 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 10: Performance Update & Recent Development
PERFORMANCE UPDATE & RECENT DEVELOPMENT
Slide 11: Key Updates
Key Updates Recent Development Upcoming in 2019 1 Long-term rental Continuing Car Rental Portfolio Expansion • Stabilized portfolio expansion at 4,000 cars with mix of corporate and SME customers • Corporate customers: high growth industry with high demand LT Rental: 14,131 cars: (+12% QoQ) First
Slide 12: Key Updates – asap Auto Park
Key Updates – asap Auto Park Note: Jun 2018 Q3 2018 Q4 2018 Early 2019 2H 2019 Company Project Franchise Project 100% Soft Opening Rolling out Grand Opening Franchise Project to Tenants Occupancy (Car Rental & Franchising Program (All Area) Start (1-2 locations) Used Cars) Progress Update Photos Rev
Slide 13: Q3/2018 Financial Performance
Q3/2018 Financial Performance Q3/2017 Q3/2018 % YoY 1 Revenue from car rental: Strong revenue growth % of sales % of sales (+34%) from continuing portfolio expansion mainly Income Statement (THB mn) (THB mn) in long-term rental Total revenue 552 685 +24% 1 2 Revenue from used cars sales: Revenue gro
Slide 14: Revenue by Business Segments
Revenue by Business Segments Q3/2018 Total Revenue : THB 698 mn Car Rental Business (THB 586 mn) Used Car Sales Business (THB 99 mn) Other Revenue (THB 13 mn) 14% 2% 84% • Revenue from insurance • Commission Auction House Online Sales • Fees from early termination Long-term Short-term • Rental reven
Slide 15: Car Rental Business Revenue
Car Rental Business Car rental revenue was THB 586 mn in Q3 2018 +11.3% QoQ 700 EBITDA Margin 100% and +34.1% YoY with 94% contribution from long-term car rental 600 74.2% 71.8% 72.7% Revenue (THB mn) 68.4% 71.5% 71.0% 68.7% 75% • Revenue from long-term car rental was at THB 549mn +10.7% 500 Margin
Slide 16: Used Car Sales Business Revenue
Used Car Sales Business Used cars sales revenue was THB 99 mn in Q3 2018 -9.1% 160 Gross Profit Margin 20% QoQ and -13.9% YoY Revenue (THB mn) • Majority of used cars sold in Q3 2018 were through auction 120 12.8% 15% 11.9% Margin (%) at 55% while online and direct sales accounted for 37% and 10.0%
Slide 17: asap's 2020 Target & Strategies
ASAP’S 2020 TARGET & STRATEGIES
Slide 18: 2020 Financial Target
2020 Financial Target “Our journey towards achieving 2020 target” Key Indicators 2017A 1H 2018 2018F 2020F 2020 Target: ASAP to be … Number of Cars 11,133 14,133 15,500 20,000 1 A leading player in rental cars fleet Total Revenue 2,112 1,249 2,700-2,800 4,500-5,000 (THB mn) Gross Margin 2 The larg
Slide 19: Three-Year Strategic Roadmap
Three-Year Strategic Roadmap 2020 GOALs Rental Revenue Proportion : Long-Term vs Others ≈ 80 : 20 % Net Profit Margin ≈ 8 - 10% 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 “
Slide 20: Appendix
APPENDIX
Slide 21: ASAP Stock Information
ASAP Stock Information Stock Information Share Price Movement Bloomberg/ Reuters ASAP TB/ ASAP BK Share Price (16 November 2018) THB 3.86 15 300 52-week high THB 12.50 52-week low THB 3.84 12 No. of paid-up shares 726 mn Share price (THB) Vol. (mn shares) 200 Market Capitalization THB 2,802 mn 9 THB
Slide 22: 9M 2018 Income Statement
9M 2018 Income Statement (unit THB mn) 9M 2018 % of 9M 2017 % of % change revenue revenue YoY Revenue 1,919 1,539 24.6% Cost of goods sold and services (1,516) (79.0%) (1,207) (78.4%) 25.6% Gross Profit 403 21.0% 332 21.6% 21.3% Selling Expense (30) (1.6%) (24) (1.6%) 23.9% Administrative Expense (9
Slide 23: Statement of Financial Position as of 30 September 2018
Statement of Financial Position as of 30 September 2018 (unit THB ’000) Sep 2018 % of Dec 2017 % of total assets total assets % change Cash & cash equivalents 84 0.7% 40 0.5% 108.0% Accounts receivables 346 2.8% 202 2.3% 71.3% Cars 10,829 89.2% 7,883 90.0% 37.5% Other PPE 61 0.5% 27 0.3% 68.1% Other
Slide 24: 9M 2018 Statement of Cash Flow
9M 2018 Statement of Cash Flow (unit THB mn) 9M 2018 9M 2017 % change YoY Earnings before income tax 68 80 (14.9%) Adjustment for depreciation and amortization 850 661 28.7% Other adjustment 181 129 40.9% Change in operating assets and liabilities 24 59 (59.0%) Cash flows from operating activities 1
Slide 25: Key Financial Ratios
Key Financial Ratios Q3/2018 2017 2016 2015 Liquidity Ratios Collection Period (days) 40.42 33.00 32.94 30.99 Days Payable (days) 96.77 41.33 38.33 17.45 Efficiency Ratios Return on Assets (%) 1.35 1.99 1.39 1.77 Return on Equity (%) 9.68 14.60 11.10 11.71 Leverage Ratios Debt to Equity (times) 7.14
Slide 26: 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 27: asap's Portfolio – Car Rental Business
asap’s Portfoilio – Car Rental Business Portfolio by type of cars (as of 30 September 2018) Revenue by type of Customers for 9M 2018 Corporate – LT 71% Small 2,245 15.0% Corporate – Chauffer 3% Compact 3,835 25.7% Government 23% THB Mid-Size 1,982 13.3% 1,597 mn Individual – ST & LT 3% Executive 184
Slide 28: 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 14,942 “Key business risks are eliminated through our strong CAGR ≈ 45% customer profile and car portfolios” 10,559 7,512 Our customers’ retention rate 4,
Slide 29: 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 30: 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 31: 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 32: 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
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