Siamrajathanee Public Company Limited · SET:SO
Siamrajathanee Public — FY2023 Earnings Presentation
31 slides from Siamrajathanee Public's earnings presentation, Feb 19, 2024
Slide 1: Analyst Meeting
SIAMRAJATHANEE Analyst Meeting PUBLIC COMPANY LIMITED March YE/2023 2024
Slide 2: Q4/2023 Highlights
Q4/2023 HIGHLIGHTS STRONG FINANCIAL EXECUTING EMPOWERING RPA SERVICES SHOWING CONTINUE SEEK NEW PERFORMANCE IN 2023 STRATEGY STRONG PROGRESS OUTSOURCING S-CURVE • In 2023, operating revenue • SO execute 3 Empowering • SO finalize partnership with Laiye • SO is in the process of seeking reached Baht
Slide 3: Agenda
AGENDA COMPANY OVERVIEW Strategy and Strategic Direction Financial Performance Outlook 3
Slide 4: Our Business Units
OUR BUSINESS UNITS 75% 5% Personnel management Well-rounded IT services including services to meet the on-site and off-site data collection, diverse needs of customers process design and digitization as well as IT outsourcing Tailor-made contract and process upon policy 15% 5% A wide range of car re
Slide 5: Workforce Outsourcing Service
“Provide a one-stop solution for everything you need to reduce the burden of workforce management” Workforce Outsourcing Service Tech-Enable Supporting Services Tailor-made Workforce Contract 1 Time Attendance TIKTRACK Recruit HR Outsourcing Workforce Management An application to manage employee ent
Slide 6: Car Rental Service
“SO Wheel is a one stop solution service for corporate vehicle management” Car Rental Service Tech-Enable Supporting Services Choice for Customers Documentation No Paper No Admin Traceable VMS ICE Cars EV Cars Vehicle management system, vehicle reservations, status tracking, document (with modificat
Slide 7: Gardening Service
“SO GREEN is a landscape management provider service for the value of the green era ” Gardening Service Tech-Enable Supporting Services i) Landscape Management Service No. of Outsourcing Unit: No. of people Utilizing Technology for Site Management 663 609 +1000 Gardening Design Root care employees s
Slide 8: Technology Service
“SO Next is a technology and process provider service for digitalized solutions” Technology Service Tech-Enable Supporting Services Numbers of Records Unit: million records i) Process Design and Implementation ii) IT Outsource 47.1 46.8 37.5 31.0 DATA MANAGEMENT PLATFORM SOLUTION IT OUTSOURCE Data s
Slide 9: Business scenario
NGCRM Platform combination Integrated CMS Big data Platform KPI Sys. CSP Planning Plan Sys. Audit Management 4A Sys. Sys. System Client Facing Services Internal Services Integrations Marketing/ Finance/ Human Customer Service Management Inventory IT/Tech Office software Sales Accounting Resources Ta
Slide 10: Tech-enabled Outsourcing Solution to simplify life and business
Siamrajathanee Plc. (“SO”) provides Tech-enabled Outsourcing Solution to simplify life and business Competent Workforce Appropriate Technology Process Optimization Appropriate technologies and processes are used to enhance workforce efficiency, create value and increase customer loyalty 10
Slide 11: Agenda
AGENDA Company Overview STRATEGY AND STRATEGIC DIRECTION Financial Performance Outlook 11
Slide 12: SO Strategic Direction
SO STRATEGIC DIRECTION TECH-ENABLED OUTSOURCING SOLUTION PROVIDER 2025 2024 Top of Mind Leading Tech-enabled Outsourcing Journey to Next-Level Solution Provider Outsourcing 2023 • Transforming to sales to consultants • Well-rounded, highly innovative services • Technological advancement to support P
Slide 13: 2024 Strategy: 3E-1S
2024 STRATEGY : 3E-1S 1. CLEAR POSITIONING AND 2. SALES ENHANCEMENT STRONG CORPORATE IMAGE • To Become a well-rounded Tech-enabled • Transform sales to consults Outsourcing Solution delivering end-to- • Enhance cross selling and upselling end service to clients + 4. NEW S-CURVE OPPORUNITIES 3. OPERA
Slide 14: 1. Clear Positioning and Strong Corporate Image
1. CLEAR POSITIONING AND STRONG CORPORATE IMAGE New Organization Elements Model Outsource as a Strategic Partner The 7 elements of the Organizational Elements Model are the requirements for an enterprise to focus on in order to be effective Previous 7. Culture 5 Structure 6 Strategy 6. Strategy 2. P
Slide 15: 2. Sales Enhancement
2. SALES ENHANCEMENT New Sales as management-partners to create new value to clients through outsourcing TRAIN SALES TO ENHANCE CROSS SELLING SO PEOPLE, SO WHEEL, SO GREEN, INTEGRATION TO CLIENTS” SO 10 YEARS AGO SO TRANSFORMATION PARTNERS SO NEXT STRATEGY Previous Ø Providing labor for Ø Labor Mana
Slide 16: 3. Operational Excellence
3. OPERATIONAL EXCELLENCE New Process Engineering + Data Driven Operation + Performance Integration with Clients Data Input Data Collection Data Analytics Report Action Previous Programs Site Operation (Excel, ERP) Operation Operation as administrative and problem solving Strategic BPM Application D
Slide 17: 4. New Business Opportunities
4. NEW BUSINESS OPPORUNITIES SO WHEEL RPA Replace RPA Future M&A People Process Outcome New Services ICE Cars EV Cars Outsourcing Service Target +30% Candidate data collection for IT Recruitment Company Launched the NEX POINT EV commercial electric transport vehicle that can reach Security Services
Slide 18: Agenda
AGENDA Company Overview Strategy and Strategic Direction FINANCIAL PERFORMANCE Outlook 18
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Total 2023 Operating Revenue 2,346.4 MB GPM 17.52% 74.7% 5.3% 14.5% 5.4% 0.4% YoY 1,752.8 124.8 341.1 127.7 MB MB MB MB 1.3% YoY 0.3% YoY 20.7% YoY 25.5% YoY NPM SO PEOPLE SO NEXT SO WHEEL SO GREEN 7.82% 0.3% Unit: Million Baht, % Financial Summary YoY +4.8% YoY ROA 2,239.2 2,34
Slide 20: Operating Revenue
OPERATING REVENUE OPERATING REVENUE BREAKDOWN BY BUSINESS UNIT +4.8% YoY Unit: Million Baht, % 2,346.4 2,239.2 5% SO GREEN 5% 15% SO WHEEL 13% 5% 5% SO NEXT +4.3% YoY +2.2% QoQ 77% 75% SO PEOPLE 545.2 557.8 562.0 574.1 578.7 582.5 586.1 599.0 5% 4% 5% 5% 5% 14% 5% 6% 6% 12% 12% 12% 13% 15% 14% 15% 6
Slide 21: Gross Profit and Gross Profit Margin (GPM)
GROSS PROFIT AND GROSS PROFIT MARGIN (GPM) Unit: Million Baht, % 17.9% 17.1% 17.1% 17.5% 16.9% GPM +7.2% YoY +5.6% YoY 383.3 411.0 -2.7% QoQ Gross Profit 97.0 105.2 102.4 Q4/22 Q3/23 Q4/23 2022 2023 YoY: 2023 vs 2022 Gross Profit was Baht 411.0 million, increased by Baht 27.8 million and GPM in 2023
Slide 22: Services & Administrative Expenses
SERVICES & ADMINISTRATIVE EXPENSES Unit: Million Baht, % 12.7% 9.8% 10.2% 10.9% 9.2% Total SG&A per total revenue -13.0% YoY -22.5% YoY 252.1 219.3 +7.3% QoQ Services & Administrative 79.9 Expenses 57.7 61.9 Q4/22 Q3/23 Q4/23 2022 2023 YoY: 2023 vs 2022 SG&A was Baht 219.3 million, decreased by Baht
Slide 23: Net Profit and Net Profit Margin (NPM)
NET PROFIT AND NET PROFIT MARGIN (NPM) Unit: Million Baht, % 10.1% 7.1% 6.1% 7.5% 7.8% NPM -37.3% YoY +8.7% YoY 183.5 -12.3% QoQ 168.8 130.3 Adjusted Net 58.2 Profit 41.6 36.5 38.5 One-time item Q4/22 Q3/23 Q4/23 2022 2023 YoY: 2023 vs 2022 Net Profit was Baht 183.5 million, increased by Baht 14.7 m
Slide 24: Profit and Loss Statement in 2023
PROFIT AND LOSS STATEMENT IN 2023 Unit: Million Baht, % 2,385.0 (1,935.4) 81.2% 100.0% (4.8) 0.2% (214.5) 9.0% (44.2) 183.5 1.9% 7.7% Revenue COGS Selling Expense Administrative Interest and Tax Net Profit Expenses • The company has a total revenue of Baht 2,385.0 million and a total cost structure
Slide 25: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Unit: Million Baht, % Total Assets Total Liabilities and Equity + 8.2% + 8.2% 2,074.3 2,074.3 Other liabilities 1,917.7 153.1 7% 1,917.7 136.8 6% 113.8 6% 74.1 4% Trade and other payables Other asset 157.0 8% 169.9 8% 82.9 4% Cash and cash equivalents 211.4 11% 345.4
Slide 26: Key Financial Ratios
KEY FINANCIAL RATIOS Current Ratio Cash Cycle Interest Coverage Ratio Unit: Times Unit: Days Unit: Times 1.78 61.8 57.2 1.55 SO has no interest-bearing debt 1.39 43.4 Q4/22 Q3/23 Q4/23 Q4/22 Q3/23 Q4/23 Q4/22 Q3/23 Q4/23 D/E Ratio ROA ROE Unit: Times Unit: % Unit: % 10.22% 19.09% 9.76% 17.70% 0.90 1
Slide 27: Dividend Payment
DIVIDEND PAYMENT Unit: Baht, % 0.40 Total Dividend 0.35 0.32 0.28 0.20 Year End Payment 0.10 Stock Dividend 0.20 0.10 0.02 Cash Dividend 0.02 Interim Payment 0.20 0.20 0.16 0.15 2020 2021 2022 2023 5:1 5:1 - - Stock Dividends 27
Slide 28: Agenda
AGENDA Company Overview Strategy and Strategic Direction Financial Performance OUTLOOK 28
Slide 29: 2024 Outlook
2024 Outlook Corporate Rebranding Empower Empower Empower Rebranding SO from service Brand Sales Operations 2024 Target provider to outsourcing consultation Double-Digit Growth Rate Enhancing Existing Service High-Performance Workforce Service ü ü Solar Cell Maintenance Valet Parking Training Sales
Slide 30: SO Provides Tech-enabled Outsourcing Solution
“SO” Provides Tech-enabled Outsourcing Solution to simplify life and business. www.siamrajathanee.com
Slide 31: SO Key Milestone
SO KEY MILESTONE TECH-ENABLED 1976 1984 2013 2020-Present OUTSOURCING Beginning Full Outsource Services Digitization Services New Growth SOLUTION PROVIDER Ø Business Transformation Ø IPO (2020) into Outsourcing Business DIGIDOC Technician Office Admin Data Entry TIKTRACK RPA, AI Document Gardening D
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