Synergetic Auto Performance Public Co. Ltd. · SET:ASAP
Synergetic Auto Performance Public — FY2018 Earnings Presentation
46 slides from Synergetic Auto Performance Public's earnings presentation, Mar 8, 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 Key updates 2018 and upcoming 2019 Section 3 Financial Target & Strategies 2020 Section A Appendix
Slide 4: Industry Landscape
INDUSTRY LANDSCAPE
Slide 5: Domestic car sales returning to norm; fleet market expanding
“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: 2018 Performance Update
2018 PERFORMANCE UPDATE Page 6
Slide 8: Key Updates: Summary of 2018
Key Updates: Summary of 2018 1. Seizing the opportunity Other Development in 2018 Total fleet 17,142 of which 5,747 net increase in portfolio (+50.4%) Portfolio Expansion: Expanding portfolio to serve increasing demand in all segments leading asap to be one of the largest fleet operators in Thailand
Slide 9: Revenue by Business Segments
Revenue by Business Segments 2018 Total Revenue : THB 2,675 mn Car Rental Business (THB 2,217 mn) Used Car Sales Business (THB 415 mn) Other Revenue (THB 43 mn) 16% 2% 83% • Revenue from insurance • Commission Auction House Online Sales • Fees from early termination Long-term Short-term • Rental rev
Slide 10: FY 2018 Financial Performance
FY 2018 Financial Performance 2017 2018 % YoY Income Statement (THB mn) % of sales (THB mn) % of sales Total revenue 2,112 2,634 425% (1 ) Revenue from car rental 1,681 79.6% 2.217 84.2% 432% 2 ] Revenue from used cars 431 20.4% 415 15.8% 4% Revenue from property rental - - 2 0.0% +100% Cost of sale
Slide 11: Car Rental Business
Car Rental Business Car rental revenue was THB 620 mn in Q4 2018 +6.0% QoQ and 700 EBITDA Margin 100% +34.2% YoY with 93% contribution from long-term car rental 600 74.2% 71.8% 72.7% Revenue (THB mn) 68.4% 71.5% 71.0% 68.7% 69.4% 75% • Revenue from long-term car rental was at THB 578 mn +5% 500 Marg
Slide 12: Used Car Sales Business
Used Car Sales Business Used cars sales revenue was THB 94 mn in Q4 2018 -4.6% 160 Gross Profit Margin 20% QoQ and -14.9% YoY Revenue (THB mn) • Used cars sold in Q4 2018 were through auction at 30.5% 120 12.8% 15% 11.9% Margin (%) while online and direct sales accounted for 69.5% and sales 10.0% 10
Slide 13: Statement of Financial Position as of December 2018
Statement of Financial Position as of 31 December 2018 (unit THB ’000) Dec 2018 % of Dec 2017 % of total assets total assets % change Cash & cash equivalents 72 0.6% 40 0.5% 78.5% Accounts receivables 311 2.5% 202 2.3% 54.2% Cars 11,328 89.6% 7,883 90.0% 43.9% Other PPE 58 0.5% 27 0.3% 62.1% Other a
Slide 14: 2018 Income Statement
2018 Income Statement (unit THB mn) 2018 % of 2017 % of % change revenue revenue YoY Revenue 2,634 2,112 31.9% Cost of goods sold and services (2,092) (79.4%) (1,661) (78.6%) 25.9% Gross Profit 543 20.6% 451 21.4% 20.3% Selling Expense (43) (1.6%) (34) (1.6%) 26.9% Administrative Expense (135) (4.8%
Slide 15: 2018 Statement of Cash Flow
2018 Statement of Cash Flow (unit THB mn) 2018 2017 % change YoY Earnings before income tax 67 90 (25.5%) Adjustment for depreciation and amortization 1,191 915 30.2% Other adjustment 252 195 28.9% Change in operating assets and liabilities 133 107 24.1% Cash flows from operating activities 1,643 1,
Slide 16: 2018 Key Financial Ratios
2018 Key Financial Ratios 2018 2017 2016 2015 Liquidity Ratios Collection Period (days) 35.54 33.00 32.94 30.99 Days Payable (days) 57.76 41.33 38.33 17.45 Efficiency Ratios Return on Assets (%) 0.84 1.99 1.39 1.77 Return on Equity (%) 6.18 14.60 11.10 11.71 Leverage Ratios Debt to Equity (times) 7.
Slide 17: Recent Development 2019
RECENT DEVELOPMENT 2019 Page 16
Slide 18: 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 19: asap Go .. a Mobility Solution
asap Go .. a “ Mobility Solution”
Slide 20: One stop service
One stop service Page 19
Slide 21: Mobility Solution
“ Mobility Solution” Appl ication Short Term Rental Car Limousine Sharing Service asap go (Coming Soon) Used Car Long Term Platform Service (Coming Soon) (Coming Soon) Page 20
Slide 22: Mobility Solution: Corporate Customers
RESERVE v “ Mobility Solution” * Operate for Corporate Customers during the First Phrase ° Fleet Size: 84 Cars ° Existing Customers * Toyota Motor Thailand * Toyota Daihatsu Engineering & Manufacturing ° SCG ud ° Betagro = ° UAE -_ Page 21
Slide 23: Page 22
Page 22
Slide 24: Upload the required documents
Upload the Once landed Use our required at your application to documents destined unlock the and sign airport, go car and your rental straight to straight of agreement asap parking you go. online. location near the exit. Page 23
Slide 25: Short Term Rental
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Slide 26: Short Term Rental: The Power of Online (OTA)
| Short Term Rental Amount of inbound tourists © Avrdanidiouwouguaa Ste Bee 1. @UASASSSSUSYS 2. 9.908610 3. a8uvsqW 4, 7.AWUs 5. 2iurulan 3.97 funu = 3.72 Aunu «3.63 Aunu 3.57 funy 3.34 funy iudu 7.23% iiudu4.05% iivdu5.52% u3u7.23% udu 3.53% O durdanGsrwldguqa be 1, v.8ousTo 2.90590 3. @.UASASSSSUS
Slide 27: The Power of Online (OTA): Rented Days
| Short Term Rental THE POWER OF ONLINE (OTA) Amount of rented days (2019 & 2018, 2017, 2016) 14000 5 12000 4 10000 + mm 2016 2017 8000 + m 2018 6000 4 2019 4000 4 a% 2000 [ | | | lm oB oh 60 68 oo | Month/ Year Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total 2016 251 687 811 1,132 859 907 2
Slide 28: asap Select Franchise
fasap asap Select Franchise
Slide 29: asap Select Franchise
| Asap Select Franchise ° ¢ 5 Franchisees signed for 2019 > * Location for 2019 Operation: ° ° * Chiang Mai - L @ A ¢ Nakhon Ratchasima - M () ¢ Ubon Ratchathani — $ ¢ Nonthaburi - S * Bangkok (Onnut) - SS Page 28
Slide 30: asap Select Revenue Stream
asap Select Revenue Stream “ Mobility Solution” YEAR 1 Bangkok (Nontaburi)| Ubon Ratchathani Nonthaburi Nakhon Ratchasima Chiang Mai Total Revenue: Margin Used Car Sale : 2,867,040 2,867,040 3,822,720 5,734,080 Rental Car 2,135,250 963,600 788,400 7,642,500 2,190,000 Royalty Fee 42,705 76,613 73,109
Slide 31: 3-Year Target & Strategies
3 - YEAR TARGET & STRATEGIES
Slide 32: 3-Year Financial Target
3 – Year 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 2,675 3,198 4,000-4,500 (THB mn) Gross Margin 2 The largest
Slide 33: Strategic Roadmap
Strategic Roadmap 2020 GOALs Rental Revenue Proportion : Long-Term vs Others ≈ 80 : 20 % Net Profit Margin ≈ 5 - 8% 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 34: Appendix
APPENDIX
Slide 35: 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 36: 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 37: ASAP Stock Information
ASAP Stock Information Stock Information Share Price Movement Bloomberg/ Reuters ASAP TB/ ASAP BK Share Price (5 March 2019) THB 3.20 15 300 52-week high THB 12.10 52-week low THB 3.02 12 No. of paid-up shares 726 mn Share price (THB) 200 Vol. (mn shares) Market Capitalization THB 2,323 mn 9 IPO : 6
Slide 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 “Key business risks are eliminated through our strong CAGR ≈ 45% 15,679 customer profile and car portfolios” 10,559 7,512 Our customers’ retention rate 4,
Slide 45: asap's Portfolio – Car Rental Business
asap’s Portfoilio – Car Rental Business Portfolio by type of cars Revenue by type of Customers for 2018 Corporate – LT 80% 13,314 14,942 17,142 Corporate – Chauffer 3% 11,722 9% 8% 8% 5% Government 13% THB 2,218 mn 34% 36% 37% 40% Individual – ST & LT 4% 1% 1% 1% 1% 16% 15% 13% 13% Commerce 26% 25%
Slide 46: 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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