Synergetic Auto Performance Public Co. Ltd. · SET:ASAP
Synergetic Auto Performance Public — Q2 2017 Earnings Presentation
33 slides from Synergetic Auto Performance Public's earnings presentation, August 2017
Slide 1: Synergetic Auto Performance Public Company Limited Q2/2017
Strictly Private & Confidential Strictly Private & Confidential Synergetic Auto Performance Public Company Limited Q2 / 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 Market Update Section 2 Business Overview Section 3 Financial Performance Section 4 3-Year Strategic Roadmap
Slide 4: Market Update
MARKET UPDATE
Slide 5: Industry Landscape
Industry Landscape “Car rental industry in Thailand is only scratching the surface of total car market” 800,000 cars sold in 2016 Outstanding fleet Fleet market share 160,000 400,000 cars cars 40% 10% 80,000 cars 60% 90% from yearly fleet sales x 240,000 cars 720,000 cars Corporates 5 years averag
Slide 6: Fleet Market
Fleet Market Car rental operator: Short-term and long-term Corporate: Corporates that purchase their own fleets car rental service provider 160,000 cars “Opportunity for car rental operator” 40% • Evolving industry trend from outright purchase to operating lease 60% • Advantages in monetary terms an
Slide 7: Retail Market
Retail Market Retail market: Individuals and small to medium businesses who purchase cars 95% ≈ 680,000 cars is x5 Total market size purchased under ≈ 3.4 million cars hire-purchase years average hire- 720,000 purchase tenor cars/year Evolving trends in retail market 5% ≈ 40,000 cars is • Urbanizati
Slide 8: Business Overview
BUSINESS OVERVIEW
Slide 9: Company Factsheet
Company Factsheet Company Name Synergetic Auto Performance Public Company Limited Shareholding Structure Ticker ASAP (as at 29 May 2017) Market Stock Exchange of Thailand (SET) Industry / Sector Financials / Finance & Securities Foreign Thai Institution Paid-up Capital THB 330.00 mn Institution 6.3%
Slide 10: Strategy for an Evolving Landscape
Strategy for an Evolving Landscape • Focused customer segment and portfolio management Strategically accelerate growth • Expand footprint both organic and new markets • Organizational efficiency delivering better yield and performance Drive efficiency • Enhance fleet repair and maintenance through p
Slide 11: Business Model
Business Model Key Vision: “To provide total solution in car rental service for corporate and individual customers” Long-term Car Rental Short-term Car Rental Corporate customers Tourists, businessmen, commuters 4-5 year contracts Daily to monthly contracts 8,941 rented cars + 520 replacem
Slide 12: Competitive Advantages
Competitive Advantages “Fleet optimization is the key to the business” Pre-fleet In-fleet De-fleet Effective procurement strategy: Operational cost effectiveness: Expertise in used-cars management: - Fast procurement - Resources utilization Customize for specific - Maintenance - Better mai
Slide 13: Management Expertise
Management Expertise Mr. Songvit Titipunya Chief Executive Officer High expertise with more than 20 years experience in car industry Founder of Toyota @ United, currently one of the top 3 Toyota’s dealer in Thailand Strong relationship with Toyota Motor Thailand and other car suppliers Presi
Slide 14: Financial Performance
FINANCIAL PERFORMANCE
Slide 15: Total Revenue Breakdown & Profitability Margins
Total Revenue Breakdown & Profitability Margins Total Revenue Breakdown Profitability Margins % 90% 80% 71.78% 71.17% 71.45% 71.24% 71.07% 70.16% (THB mn) CAGR = 28.6% 70% g = 58.2% 1,459.44 60% 66.44% 1,600 2% 50% 57.78% 58.15% 58.91% 56.46% 54.87% 1,400 1,086.09 21% 40% 1,200 2% 1,000.85 27.49% 84
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 18.83 mn, THB 28.09 mn, THB 21.92 mn, THB 27.44 mn, (THB mn) 2.48% 1.66% 2.80% 3.51% 1,133.00 1,200 1.8% 6M 1,000 19.6% 2016 2017 789.51 782.55 0.3% 2.7% 800 659.23 581.86 0.5% 17.4
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 (%) 48.25% 350 50% 300 286.16 40% 250 191.79 29.80% 211.13 195.94 24.82% 25.26% 25.78% 30% 200 23.99% 24.51% Gross Profit from Car Rental 173.40 158.15 150 125.97 20% Gross Profit from U
Slide 18: Balance Sheet Composition
Balance Sheet Composition Assets Breakdown Liabilities and Equity Breakdown 3,665 6,375 7,823 (THB mn) 3,665 6,375 7,823 (THB mn) 76 526 189 225 7 541 185 250 124 5,658 16 7,019 94 203 5,806 4,815 3,289 2,668 93 76 105 330 123 131 225 225 511 116 - - 151 253 408 369 439 481 2015 2016 6M-2017 2015 20
Slide 19: Update Progress
Update Progress Long-term Car Rental Short-term Car Rental Chauffeur-driven Car Rental No. of rented cars as of Q2-2017 is 8,941 Cars as of Q2-2017 is 327 units No. of rented cars as of Q2-2017 is 128 units Opened the 7th counter at U-Tapao units Renewal rate maintains at 95% International
Slide 20: Three-Year Strategic Roadmap
THREE-YEAR STRATEGIC ROADMAP
Slide 21: Three-Year Strategic Roadmap
Three-Year Strategic Roadmap 2020 GOALs Revenue Proportion Long-Term vs Others ≈ 80 : 20 % Net Profit Margin ≈ 2-digit HOW TO GROW MEASUREMENTS LONG-TERM Acquire new customers LONG-TERM Achieve car portfolio size of 20,000 units, Retain existing customers balancing portfolio mix toward better yi
Slide 22: 2018 - 2020 Target
2018 - 2020 Target ASAP ESTIMATED TARGET RENTAL REVENUE 2020 EXPECTED RENTAL REVENUE CONTRIBUTION (Unit: THB mn) 40% CAGR 4,400 ST Car Rental 3,400 LT Car Rental 10% 2,600 83% Chauffeur Driven 1,800 5% 1,133 THB 4,400 mn Auto Park 1% 2016A 2017E 2018F 2019F 2020F asap GO 1% Long Term Car Rental Shor
Slide 23: Appendix
APPENDIX
Slide 24: 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 25: Self-Driven Long-Term Car Rental Service
1) Self-Driven Long-Term Car Rental Service “asap provides not only car rental service, but the total solution fleet management service to corporates, government agencies and state enterprises” Types of self-driven long-term rental cars asap is trusted by customers to take care of their fleet As o
Slide 26: Self-Driven Short-Term Car Rental Service
2) Self-Driven Short-Term Car Rental Service asap launched new car rental service, i.e. self-driven short-term car rental service under the name “asap” in late 2015 focusing on individual customers asap started to provide self-driven short-term car rental Chiang Rai Currently, there are 7 asap locat
Slide 27: Chauffeur-Driven Car Rental Service
3) Chauffeur-Driven Car Rental Service Chauffeur-driven car rental service is launched by asap in July 2016 Services provided comprises of: Chauffeur-driven car Fleet Management Service Fleet Procurement rental service focuses on Fleet Tailored Modification Fleet Maintenance Cars & Chauffeur
Slide 28: Sharing Platform Self-Driven Car Rental Service
4) Sharing Platform Self-Driven Car Rental Service asap recently launched sharing platform car rental service under “asap GO” in July 2017 We position ourselves as car rental partner, not financier We promise to actively introduce new value added services to offer the comprehensive car rental se
Slide 29: Future Project: asap Auto Park
Future Project: asap Auto Park Preliminary design To be an auto services center by providing: asap Auto Park self-driven short-term car rental service counter, used car sales area, Objective pick up/drop off area for Suvarnabhumi asap counter’s customers, and the rests are rental area for au
Slide 30: Unparalleled Customer Portfolio
Unparalleled Customer Portfolio “asap will GROW together with our existing customers; while committed to continuously add-on new customers to our portfolio” LONG-TERM CAR RENTAL: Retails Our Protocol Logistics To grow with existing Banks customers To capture the untapped mid Government agencies
Slide 31: Diversified Business and Revenue Model
Diversified Business and Revenue Model Car rental revenue by service type Revenue Breakdown Self-driven Short-term Car Rental 2.8% Chauffeur-driven Car Rental 3.5% 1% Other revenue 93.7% Self-driven Long-term Car Rental Used car sales 21% 78% Car rental revenue by customer type Car rental revenue Go
Slide 32: Source of Fund
Source of Fund Providers 8.5% 100% Financing Banks Leasing companies Types THB 6,183.8 mn Competitive interest rate Financial lease/ Hire purchase Repayment term matches Term loan 93.0% cash inflows (rental term) Financial Lease Term Loan Note: Information as of 30 June 2017 Strictly Private
Slide 33: Share Price Movement
Share Price Movement 10.0 9.5 21 Aug Closing Price 9.0 THB 7.95 +162% 8.5 8.0 From IPO price 7.5 Share Price (THB) 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 IPO Price THB 3.03 3.0 29/03/2017 12/04/2017 26/04/2017 10/05/2017 24/05/2017 07/06/2017 21/06/2017 05/07/2017 19/07/2017 02/08/2017 16/08/2017 Source: S
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