28 slides from Tisco Financial Group Public's earnings presentation, Sep 30, 2004
Slide 1: TISCO Group Performance and Operating Results Q3 2004
TISCO Group Performance and Operating Results For 3rd rd Quarter ended September 30, 2004
Slide 2: Disclaimer
Disclaimer This presentation contains public information, which has been prepared by TISCO Finance Public Company Limited ("TISCO" or the "Company") for the purpose of a presentation to analysts and selected investors. Information contained in this presentation is not intended to provide basis for a
Slide 3: Group Structure before Restructuring
Group Structure before Restructuring TISCO Finance Public Company Limited/1 100% 100% 100% 100% 100% 100% Thai Permsap TISCO TISCO Asset ThaiInformation TISCO Hiway Co. Ltd. Finance Co., Ltd Securities Management Technology Securities Hong Co. Ltd. Co. Ltd. Co., Ltd. Kong Ltd. 100% 100% TISCO Global
Slide 4: Group Structure after Restructuring
Group Structure after Restructuring TISCO TISCOHolding HoldingPublic PublicCompany CompanyLimited /1 Limited /1 (Previous (Previousname: name:Thai ThaiPermsap PermsapFinance FinanceCo., Co.,Ltd) Ltd) 100% 100% 100% 100% 100% 100% TISCO Bank TISCO TISCO Asset ThaiInformation TISCO Global TISCO Bank H
Slide 5: Shareholder Structure
Shareholder Structure CDIB & Partners Mizuho Investment Corporate Bank, Government of Holding Ltd. DB Group Singapore Corporation 7.49% 6.37% Investment 13.78% Corporation 4.69% Foreign shareholders Domestic 29.68% shareholders 33.38% Thai NVDR Co.,Ltd. 4.61% As of April 7, 2004 5
Slide 6: TISCO Board and Committees
TISCO Board and Committees Board of Director Nomination Executive Board Audit Committee Committee y Business Performance y Conformity y Board Composition y Risk Control y Disclosure y Board Selection y Management Selection y Adequacy of Internal y Compensation Controls Risk Credit Problem Loan Techn
Slide 7: Key Economic Indicator
Key Economic Indicator (% Growth Y-O-Y) 2000 2001 2002 2003 Q104 Q204 Q304 GDP 4.8 2.1 5.4 6.8 6.6 6.3 n.a. Automobile Sales (10.4) 10.5 32.5 32.8 23.9 18.8 5.5 SET Index 28,757 30,000 1000 Daily Average Turnover 7 7 2 .1 5 24,000 800 6 4 7 .3 0 6 4 4 .6 7 (Baht Million) 19,237 SET Index 18,908 18,0
Slide 8: Operating Results
Operating Results Q3Y-o-Y 9MY-O-Y Q304 9M04 Total Revenue (13.0%) 12.4% 1,068 3,638 (Baht Million) Net Profit (28.0%) 4.1% 347 1,339 (Baht Million) Diluted EPS 0.48 1.83 (Baht) ROE 12.6% 16.3% 8
Slide 9: Interest and Dividend Income
Interest and Dividend Income (Baht Million) Q3Y-o-Y 9MY-o-Y Q304 9M04 Interest & Dividend Income 6.8% 9.0% 948 2,898 Loans and Deposits (23.7%) (14.2%) 154 553 Hire purchase and 20.2% 21.6% 755 2,159 Finance lease Securities (32.7%) (21.9%) 39 186 Expense on Borrowings (10.2%) (12.9%) 270 795 Net In
Slide 10: Interest and Dividend Income
Interest and Dividend Income Q303 Net Interest and Dividend Q304 Net Interest and Dividend Income : Bt. 587 Million Income : Bt. 677 Million Securities Loans and 7% deposits Securities Loans and 23% 4% deposits 16% Hire Hire purchase purchase and financial and financial lease lease 70% 80% Q304 Net
Slide 11: Asset Breakdown
Asset Breakdown 65,429 60,263 60,000 1,311 49,212 1,414 47,059 50,000 40,802 1,317 40,000 2,237 Baht Million 2,354 44,499 49,951 30,000 30,603 36,236 25,584 20,000 = 1 9 .5 % r ow th nG Net Loa 10,000 8,302 9,361 8,096 5,982 6,181 0 2000 2001 2002 2003 Sep 04 Cash & Deposits Investment in securities
Slide 12: Loan Portfolio Breakdown
Loan Portfolio Breakdown Total Loans : Bt. 52.5 Billion Total Hire Purchase : Bt. 35.4 Billion As of September 30, 2004 As of September 30, 2004 Leasing Motorcycle Public VLT 4% 1% Manufacturing Real estate& utilities& Head Office Other 0% & Commerce construction services 37% 3% corporate 10% 6% TCA
Slide 13: Spread Management
Spread Management Interest Spread Trend 11% 9.3% 8.5% 7.8% 7.3% 8% 6.94% 4.8% 4.8% 4.6% 4.69% 5% 4.4% 4.5% 3.7% 3% 3.2% 2.9% 2.24% 0% 2000 2001 2002 2003 9M 04 Yield Cost Spread 13
Slide 14: Net Interest Margin
Net Interest Margin NIM compared with Interest Spread 6% 4.90% 4.8% 4.8% 4.6% 4.6% 4.69% 4% 4.4% 4.4% 4.0% 3.6% 2% 0% 2000 2001 2002 2003 9M 04 Spread NIM 14
Slide 15: Active Assets & Liabilities Management
Active Assets & Liabilities Management Asset Mix Liabilities Mix 120% 120% 100% Other assets 100% Other Liabilities 80% Other earning 80% assets Debentures Equity 60% 60% 58% Fixed-income Borrowings and 53% deposits 40% 40% 82% Other Loans 77% 20% 20% Retail Loans 0% 0% Sep04 Dec03 Sep04 Dec03 Portf
Slide 16: Non-Interest Income
Non-Interest Income (Baht Million) Q3Y-o-Y 9MY-o-Y Q304 9M04 Fee & Other Income (23.2%) 29.6% 401 1,571 Brokerage Fees (27.7%) 50.5% 179 691 Fees and services (21.7%) 21.1% 183 771 Income Gain(loss) on Exchange (67.8%) (115.3%) (0.2) (0.6) Other Income (2.6%) (0.7%) 39 110 Trading Income (55.8%) (95
Slide 17: Non-Interest Income
Non-Interest Income Q303 Non-Interest Income: Q304 Non-Interest Income: Bt. 689 Million Bt. 475 Million Fee Income from Trading Fee Income from Finance Trading Finance Income Business, Income Business, 16% SAM & Others 24% SAM & 26% Brokerage Others 34% Fee 37% Investment Bank Fee Asset Brokerage Fe
Slide 18: Operating Expenses
Operating Expenses (Baht Million) Q3Y-o-Y 9MY-O-Y Q304 9M04 Personnel Expense 2.2% 26.3% 293 913 (% to Net Revenue after Provision) 27.4% 25.1% NPE (65.9%) (40.5%) 346 962 (% to Net Revenue after Provision) 32.4% 26.4% Opex (50.9%) (19.8%) 639 1,875 (% to Net Revenue after Provision) 59.8% 51.5% Tax
Slide 19: Loan Loss Provision
Loan Loss Provision Non-Performing Loan & Allowance for Doubtful Accounts 160% 14,000 135% 122% 140% 103% 121% 12,000 120% 10,000 B ah t M illio n 8,221 84% 100% (24.2%) 8,000 6,859 7,075 6,935 (17.7%) 80% 4,600 6,000 4,703 4,157 3,846 3,410 3,439 60% (9.7%) (7.0%) (6.4%) 4,000 40% 2,000 20% 0 0% 20
Slide 20: Commercial Lending
Commercial Lending 18,000 12.9% 14% 16,000 12% 11.4% 14,000 11.8% 11.7% 10% 12,000 10,789 Baht Million 10,215 10,328 10,132 10,069 10,350 9,779 9,923 9,907 9,722 8% 10,000 9,540 9,554 9,123 8,000 6% 6,000 4% 4,000 2% 2,000 0 0% Sep03 Oct03 Nov03 Dec03 Jan04 Feb04 Mar04 Apr04 May04 Jun04* Jul04* Aug0
Slide 21: Industry Auto Sales
Industry Auto Sales New Car Sales Industry Monthly Car Sales 600,000 600,000 12% 80,000 10.1% 533,177 500,000 10% 404,060 438,913 54,430 7.5% 60,000 Num ber of cars (Units) 51,320 Number of cars (Units) 7.8% 50,484 Penetration Rate(%) 400,000 8% 49,282 51,113 6.6% 49,054 45,426 6.6% 44,134 43,670 29
Slide 22: HP New Loans and Repayment
HP New Loans and Repayment 4,000 4,664 4,679 5000 4,463 4,540 4,265 4,315 3,500 4500 3,859 4,031 3,702 3,836 3,771 3,620 4000 3,000 3500 Baht Million 2,500 2,189 2,095 3000 2,063 1,951 1,973 1,951 Units 2,000 1,736 1,853 2500 1,696 1,742 1,714 1,459 2000 1,500 1,187 1,216 1,211 1,223 1,057 1,003 1,0
Slide 23: Local Brokerage Business
Local Brokerage Business TISCO Volume & Market Share Brokerage Fee 350 5% 800 759 314 3.9% 700 300 3.6% 3.5% 4% 600 250 3.6% Brokerage Volume Market share(%) 3.4% Bah t M illio n 3.4% 500 (Baht Billion) 200 2.9% 160 2% 400 150 304 300 125 300 100 90 77 196 187 70 200 171 66 1% 106 50 100 0 0% 0 '00
Slide 24: Asset Management Business
Asset Management Business Market* Asset Under Management 70,000 12% Tota l Ne t Asse t Va lue (Ba ht M illion) 1,000,000 846,964 885,194 10% 64,760 10% 56,459 900,000 60,000 10% 800,000 44,684 Total Net Asset Value 50,000 39,335 27% 700,000 531,282 42,040 8% Market Share (%) 51% 24% (Baht Million) 4
Slide 25: Risk-Based Capital Adequacy
Risk - Based Capital Adequacy Operational Risk Operational Risk Wholesale Lending Wholesale Lending Reserve Reserve 7% Retail Lending 7% Retail Lending 9% 9% 37% 38% Property Property 5% 4% Non-listed Equity 8% Non-listed Equity Banking Book 8% Banking Book Listed Equity 9% Fixed-income 9% Listed Eq
Slide 26: Interest Rate Risk
Interest Rate Risk 1.50 Current Profile 1.25 1.19 • Duration mismatch slightly increased from 0.27 year to 0.36 year A verage D uration (Years) 1.00 • Risk to interest rate increase remained 0.83 low with 1% immediate shock to affect net interest income by merely 3% 0.75 • With rising interest rate,
Slide 27: Number of Employees
Number of Employees 2,000 1,757 1,618 1,346 453 1,500 1,087 410 Employees 978 241 82 1,000 60 1,208 1,297 1,105 500 918 1,005 0 2000 2001 2002 2003 Sep 04 Permanent Contract 27
Slide 28: www.tisco.co.th
www.tisco.co.th