Scb X Public Company Limited · SET:SCB
Scb X Public — Investor Day (October 2022)
34 slides from Scb X Public's investor day presentation, Oct 21, 2022
Slide 1: SCB Strategy Day: A Journey to Tech Company
SCB Strategy Day X A Journey to Tech Company: Bold Vision, Prudent Execution 21 October 2022 1
Slide 2: Important note
Important note: This presentation contains “forward-looking statements” of SCB X Public Company Limited and its subsidiaries (“SCBX Group”) that related to financial or events of future period. Certain statements contained in this presentation that are not historical fact are the future expectation
Slide 3: Our Vision: The Most Admired Regional Financial Technology Group
The Most Admired Our Vision Regional Financial Technology Group 3
Slide 4: Our Mission and Ambition
Our Mission To make finance simple, accessible and affordable for all through the power of technology and innovation VALUE-DRIVEN Growth focused company with a THB 1 tn valuation A m bi t i o n Ou r BEYOND THAILAND BEYOND BANKING 200M+ customers in ASEAN and beyond A tech ecosystem, digital assets i
Slide 5: Our investment purposes under three key global trends
Our investment purposes under three key global trends 5 5
Slide 6: Trend 1 Financial Inclusion
Trend 1 Financial Inclusion: Unlocking the opportunity of the underserved segments 1 6
Slide 7: We are ready to unlock the new opportunities
We are ready to unlock the new opportunities Ultra Hight Net Worth 55% of Thailand households lack Middle & Affluent access to loans Upper Mass 84% Have smartphones, making digital lending the best way to engage them Mass THB 1.5tn 1 Revenue pool for digital Lower Mass lending in Thailand (and at le
Slide 8: We are set up to win with several digital lenders
We are set up to win with several digital lenders, each with a distinct focus and new efficiency for mass markets Secured Unsecured Luxury vehicles Ultra Hight Net Worth hire purchase Middle & Affluent Mortgages, auto Upper Mass hire purchase & Digital loans secured loans Mass Personal loans & credi
Slide 9: Trend 2 Digital Asset Economy
Trend 2 Digital Asset Economy: With the potential to replace the traditional financial markets 9
Slide 10: Future of Finance with Blockchain Technology and Digital Assets Business
FUTURE OF FINANCE WITH BLOCKCHAIN TECHNOLOGY AND DIGITAL ASSETS BUSINESS Web 3.0 with blockchain enabler • I O N U P T Web3.0 converging I SR D business and financial layer, allowing users to directly interact and N p h a s e exchange value virtually EVO LU TI O Initial • like in the physical world
Slide 11: Trend 3 Green Tech
Trend 3 Green Tech: Will transform a generational challenge into a business opportunity worth USD 50bn 1 by 2027 11 1 “The Next Digital: Unlocking US$ 50 Billion Green Tech Opportunity”, BCG Report
Slide 12: Net Zero is just the start
Net Zero is just the start WHERE WE ARE TODAY OUR PATH FORWARD Most ambitious Net Zero Capturing commitment in Thailand business opportunities in climate tech1 • Net Zero in our own operations by 2030 • Net Zero in lending & investment by 2050 12 1 For example, carbon measurement, tracking, and repo
Slide 13: Investment holding company with portfolio companies in 5 strategic themes
We are an investment holding company with portfolio companies in 5 strategic themes Gen 1 Gen 2 Gen 3 Better Bank Digital Lending Digital Digital Assets & Climate Tech Ecosystem Future Technology Digitized, better Make finance Become a part of Future-proof our Net Zero by 2050 quality loan book, sim
Slide 14: And this is where our new journey begins
And this is where our new journey begins 14
Slide 15: Our strategy will unfold in 3 phases
Our strategy will unfold in 3 phases PHASE 1: PHASE 2: PHASE 3: Build core tech Deliver growth with Monetization and & data capabilities scale and synergy exponential growth (1-2 years) (2-3 years) (3-5 years) • Build core tech • Ensure steady earnings • Deliver positive EBITDA capabilities and grow
Slide 16: Phase 1: Build core tech & data capabilities
Our strategy will unfold in 3 phases PHASE 1: Build core tech Deliver growth with & data capabilities (1-2 years) • Build core tech capabilities and growth accelerators • Transform culture and attract top talent
Slide 17: Centers of Excellence and Growth accelerators
2 Growth Centers of accelerators Excellence Data & AI Cloud Cyber Tech solution Central Data provider and AI Hub for for SCBX companies SCBX group 17
Slide 18: Data & AI, Cloud and Cybersecurity CoE
Data & AI Drive the responsible use of CoE Data and AI across the group Cloud Enable the group to run efficiently CoE on the cloud while driving cost down Cybersecurity Holistically protect the group CoE and its subsidiaries from cyber attacks 18
Slide 19: DataX and TechX
Consolidate Preferred tech group-wide data and partner for SCBX data science talent and … portfolio companies provide ready-to-use with a line up of tech analytics and AI solutions assets and solutions across all areas to leverage DataX has ingested >90% TechX is currently handling of group customer
Slide 20: Phase 2: Deliver growth with scale and synergy
Our strategy will unfold in 3 phases PHASE 2: Build core tech Deliver growth with Monetization and scale and synergy exponential growth (2-3 years) • …and optimizing and leaning the bank • Expand regional footprints
Slide 21: Growing profit contribution and equity transactions
to deliver strong financial results Higher, double-digit margins Growing profit contribution, with higher ROE Equity transactions • Successful VC Fund-raising • VC Fund-raising • IPO 2025 21 • IPO 2027
Slide 22: Building competitive edge through technology
Building competitive edge through technology From customer … to credit risk acquisition… control Our proprietary technology includes AI-based credit scoring & collection models Our digital lenders offer a convenient e2e digital Controlling credit costs, journey while serving the underserved Keeping
Slide 23: Laying the foundation for regional expansion
During Phase 2, we will also lay the foundation for our regional expansion To expand To expand regional To expand to CLMV Poised to secure To build a customer base via footprints through once domestic digital asset regional hub to a regional financial strategic leadership infrastructure attract tale
Slide 24: Our Better Bank Strategy
Our Better Bank Strategy Low Teens ROE by 2025 Mid-to-high 30s Cost-to-income by 2025 Accelerate Better quality Higher fee income digitization loan book Focus on journey Tighten risk-return and bancassurance and A more complete digital optimize our RWA 1 wealth management banking offering 24 1 RWA -
Slide 25: Phase 3: Monetization and exponential growth
Our strategy will unfold in 3 phases PHASE 3: Build core tech Monetization and exponential growth (3-5 years) • Realize value through IPOs and equity transactions • Achieve regional scale 25
Slide 26: We achieve exponential growth
We achieve We realize We achieve exponential equity value regional scale growth Robinhood achieves InnovestX IPO by 2025 Digital lenders and Gen 3 profitability CardX IPO by 2025 to establish leading AutoX IPO by 2027 positions in selected Digital Asset cluster ASEAN markets Series of VC fund raisin
Slide 27: Our focus is to provide a digital asset infrastructure
We are building infrastructure Our focus is with a focus on underlying to provide technology… a digital asset …and not to pursue speculative infrastructure investments with no commercial use cases 27
Slide 28: Structure to capture growth in digital assets
We have a structure to capture growth in digital assets as technologies mature Primary market Monetization Offer digital asset trading, investment and infrastructure services Blockchain Knowledge and & Digital Secondary market capability center asset cluster Acquire capabilities through venture inve
Slide 29: Bold Vision With Prudent Execution And Discipline
Bold Vision With Prudent Execution And Discipline 29
Slide 30: From the top, we ensure robustness in execution
From the top, we ensure robustness in execution Investment Compliance Governance Big commitments only Portfolio company Committees at SCBX level with proven records compliance aligned by to govern key policies group-wide framework Allow portfolio SCBX’s control over companies to fail; no Active moni
Slide 31: New investment budget to be deployed selectively, with prudence
New investment budget to be deployed selectively, with prudence • Primarily for Gen 3 opportunities with strong fit to SCBX aspiration • Continuously monitor portfolio development and evolve capital allocation • Deployed from excess capital and prudent debt leverage to ensure ROE enhancement 31
Slide 32: Selected prestigious awards and international recognitions
Selected prestigious awards and international recognitions A member of Dow Jones Sustainability Indices (DJSI) for the World Index and the Emerging Markets Index in the banking sector for the 4th consecutive year (2021) SCB 10X ranked second in Global CVC investing in Fintech startups and eighth amo
Slide 33: Why SCBX?
Why SCBX? We pursue GROWTH opportunities with greater purposes. We are ADVANTAGED with a solid customer base and brand as a launchpad for early win. We put in place a structure to orchestrate group-wide SYNERGIES. We offer a BALANCED GROWTH profile while making new investments with DISCIPLINE. We ma
Slide 34: Above & Beyond with
Above & Beyond with 34