Synergetic Auto Performance Public Co. Ltd. · SET:ASAP
Synergetic Auto Performance Public — Q3 2017 Earnings Presentation
29 slides from Synergetic Auto Performance Public's earnings presentation, November 2017
Slide 1: Synergetic Auto Performance Public Company Limited Q3/2017
Strictly Private & Confidential Strictly Private & Confidential Synergetic Auto Performance Public Company Limited Q3 / 2017
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 Overview Section 2 Our Business Section 3 Financial Performance Section 4 3-Year Strategic Roadmap Section A Appendix
Slide 4: Industry Overview
INDUSTRY OVERVIEW
Slide 5: Industry Landscape
Industry Landscape “Car rental industry in Thailand is only scratching the surface of total car market” 800,000 new purchase cars in 2016 Fleet market share X 5 years average fleet tenor 240,000 90% cars 40% 80,000 Outstanding fleet 10% cars 400,000 cars 60% 160,000 cars Corporate Fleet 720,00
Slide 6: Car Rental Operator
Car Rental Operator Market Characteristics Classified into 2 main categories, short-term and long-term service provider 160,000 cars Top 6 players occupied more than half of the market while the rest of market is still fragmented High competition but not yet stabilize Car portfolio grows a
Slide 7: Market Trends
Market Trends Long-term rental Short-term rental Corporates and SMEs are shifting from financing their Rising number of tourist arrivals and air travel in the own fleet by cash and hire purchase 40% to operating lease country benefits short-term rental Current Future 72 million 120 million 480,0
Slide 8: Our Business
OUR BUSINESS
Slide 9: Key Vision: Total solution car rental service provider
Key Vision: Total solution car rental service provider for corporate and individual customers Strategy for an Evolving Landscape: • Focused customer segment and portfolio management Strategically accelerate growth • Expand footprint both organic and new markets • Organizational efficiency delivering
Slide 10: 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 11: Track Record
Track Record “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 9,965 customer profile and car portfolios” CAGR ≈ 52% 7,512 4,780 Our customers’ retention rate 3,367 3,679 2,761 In terms
Slide 12: Business Model – Used Car Sales
Business Model – Used Car Sales “Developing towards profit enhancement for the used car sales” Used car sales business Current Channel Future Channel Auction House asap Auto Park Online Sales • Current used cars will be • asap Auto Park will be the • asap partners with directly sent to the auction n
Slide 13: 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-cars management: - Fast procurement - Economy of scale from Customize for specific resource utilization - B
Slide 14: Financial Performance
FINANCIAL PERFORMANCE
Slide 15: Total Revenue Breakdown & Profitability Margins
Total Revenue Breakdown & Profitability Margins (THB mn) Total Revenue Breakdown Profitability Margins % 1,800 80% 72.8% 72.7% 1,563.52 71.8% 71.2% 71.5% 70.2% 1,600 1,459.44 66.4% g = 51.0% 1% 70% CAGR = 28.6% 2% 56.5% 57.8% 57.1% 58.6% 1,400 21% 60% 54.9% 1,086.09 21% 1,200 1,035.61 50% 2% 1% 1,00
Slide 16: Revenue from Car Rental Breakdown
Revenue from Car Rental Breakdown Revenue from Car Rental Breakdown by Customer Type Revenue Breakdown by Business (THB mn) THB 18.83 mn, THB 28.09 mn, THB 36.31 mn, THB 42.29 mn, 1,400 1,219.60 1,133.00 2.48% 1.66% 3.0% 3.5% 3% 1,200 2% 789.51 786.24 21% 1,000 20% 659.23 9M 800 581.86 1% 2% 2016 1%
Slide 17: Gross Profit & Gross Profit Margin
Gross Profit & Gross Profit Margin Gross Profit and Gross Profit Margin Gross Profit (THB mn) Gross Profit Margin (%) 350 60.0% 302 300 286 50.0% 250 48.3% 211 40.0% 196 198 200 173 Gross Profit from Car Rental Business 158 30.0% Gross Profit from Used Car Sales 150 29.8% 25.3% Gross Profit Margin f
Slide 18: Balance Sheet Composition
Balance Sheet Composition Assets Breakdown Liabilities and Equity Breakdown 3,665 6,375 8,223 (THB mn) 3,665 6,375 8,223 (THB mn) 38 819 206 Short and Long - term Loan 541 353 7 Cash 185 Accounts Payable 250 A/R Financial Lease Liabilities Cars 16 7,376 Other Liabilities 124 5,607 94 203 5,806 4,815
Slide 19: Update Progress
Update Progress Long-term Car Rental Short-term Car Rental Chauffeur-driven Car Rental No. of rented cars as of Q3-2017 is 9,469 Cars as of Q3-2017 is 333 units No. of rented cars as of Q3-2017 is 128 units Opened the 7th counter at U-Tapao units Renewal rate for end-of-contract customers
Slide 20: Three-Year Strategic Roadmap
THREE-YEAR STRATEGIC ROADMAP
Slide 21: 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 USED CARS SALES BUSINESS “Expanding portfolio to both corporate and “Expanding short-term portfolio towards
Slide 22: 2018 - 2020 Target
2018 - 2020 Target ASAP ESTIMATED TARGET RENTAL REVENUE 2020 EXPECTED RENTAL REVENUE CONTRIBUTION THB 4,000 - (Unit: THB mn) 4,500 mn ST Car Rental 40% CAGR LT Car Rental 10% 83% Chauffeur Driven 5% 1,133 THB 4,000 - Auto Park 4,500 mn 1% 2016A 2017E 2018F 2019F 2020F asap GO 1% Long Term Car Rental
Slide 23: Investment in technological infrastructure
Investment in technological infrastructure “Technology will support the company’s backbone to get ready for the changing market landscape” “CarPro” will support car rental, fleet SAP B1 will improve financial and asap partnered with haupcar to management and connect short-term accounting reporting s
Slide 24: Appendix
APPENDIX
Slide 25: 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 1995 Change par from THB 1.00 per share to be THB 0.50 per share Nissan’s car dealer (3 branches at p
Slide 26: 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 27: Diversified Business and Revenue Model
Diversified Business and Revenue Model Car rental revenue by service type Revenue Breakdown Self-driven Short-term Car Rental 3.0% Chauffeur-driven Car Rental 3.5% 1% Other revenue 93.5% Self-driven Long-term Car Rental Used car sales 21% 78% Car rental revenue by customer type Car rental revenue Go
Slide 28: Source of Fund
Source of Fund Providers 12.7% 100% Financing Banks Leasing companies Types THB 6,425.6 mn Competitive interest rate Financial lease/ Hire purchase Repayment term matches Term loan 87.3% cash inflows (rental term) Financial Lease Term Loan Note: Information as of 30 September 2017 Strictly P
Slide 29: Share Price Movement
Share Price Movement 10.0 17 Nov Closing Price 9.5 THB 8.95 9.0 8.5 8.0 7.5 Share Price (THB) 7.0 6.5 6.0 5.5 +195% 5.0 IPO Price 4.5 THB 3.03 From IPO price 4.0 3.5 3.0 29/03/2017 29/04/2017 29/05/2017 29/06/2017 29/07/2017 29/08/2017 29/09/2017 29/10/2017 Source: SETSMART as of 17 November 2017 St
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