Tisco Financial Group Public Co. Ltd. · SET:TISCO
Tisco Financial Group Public — FY2006 Earnings Presentation
20 slides from Tisco Financial Group Public's earnings presentation, Jan 16, 2007
Slide 1: Analyst Meeting 2006
Analyst Meeting 2006 January 16, 2007 •This presentation material may contain forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward looking statements as a res
Slide 2: Agenda
Agenda 2006 Achievement Financial Highlight 2007 Outlook 2
Slide 3: 2006 Achievements
2006 Achievements • Double digit loan growth • Strong growth for Banking Fee Income • Cross-selling program achieved target • New banking services: Bancassurance partnership with AACP, Cash Management, and ATM Pool • Co-operation with ‘Mizuho Corporate Bank. • Synergy with ‘Deutsche Bank Global Equi
Slide 4: Agenda
Agenda 2006 Achievement Financial Highlight 2007 Outlook 4
Slide 5: Net Interest Income
Net Interest Income 2006 Interest Income (Million Baht) 2005 2006 %(YoY) Wholesales Interest Interbank & Interest on Loans 590 943 60.0 Incom e MM Interest Incom e Interest on Interbank and MM 145 438 202.4 17% 8% Hire purchase and financial 3,544 4,068 14.8 lease Investm ent Retail 4% Interest Inve
Slide 6: Loans Portfolio Breakdown
Loans Portfolio Breakdown 2006 Hire Purchase business Loans by Industry 2005 2006 %(YoY) Breakdown (Million Baht) Leasing Corporate Lending 12,705 14,574 14.7 TCA 1% Motorcycle 2% 5% Head Office Retail Hire-Purchase 45,074 54,244 20.3 35% Retail Housing 2,175 2,005 (7.8) Retail Loans 47,249 56,250 1
Slide 7: Car Hire Purchase Business
Car Hire Purchase Business Industry New Car Sales & TISCO Penetration Rate TISCO New Business Car Hire Purchase (Thousand Units) (Million Baht) (Units) 703 New Car Sales By Units 682 70,526 (3.0)%YoY 58,301 21.0% YoY 54,500 12.7% By Value 10.1% 30,437 9.1% 16.1% YoY 7.7% 26,206 7.1% 5.4% 24,976 193
Slide 8: Deposits and Short Term Borrowings
Deposits and Short Term Borrowings (Million Baht) Deposits and ST Borrowings TISCO Interest Rate Movement 66,288 % 70,000 4% 9 60,000 8 MLR 46,774 39% Currents & 7 50,000 3% Savings 6 3-Months 40,000 26% ST Borrowings Repo 5 30,000 4 Fixed Deposits Savings 57% 3 20,000 71% 2 10,000 1 2005 2006 0 Jul
Slide 9: Non Interest Income
Non Interest Income (Million Baht) 2005 2006 % (YoY) 2006 Non Interest Income Brokerage Fee 622 649 4.3 Asset Banking & Management Retail Fee Asset Management Fee 272 295 8.7 13% Income Investment Banking Fee 28 9 (68.8) 36% Fee Income from Banking 672 786 12.5 Business SAM SAM 129 28 (78.3) Brokera
Slide 10: Local Brokerage Business
Local Brokerage Business (Million Baht) (Million Baht) Average Daily Turnover* Brokerage Value & Market Share % 20,508 Market 600,000 16,454 16,281 3.52% 3.22% (1.1)%YoY 500,000 2.97% 1,451 400,000 355,544 1,053 TISCO 240,503 255,847 982 300,000 7.3% YoY 200,000 100,000 0 2004 2005 2006 2004 2005 20
Slide 11: Asset Management Business
Asset Management Business (Billion Baht) (Billion Baht) Total Market NAV Asset Under Management 1,574 84.7 3.2% YoY 82.1 (Billion 1,500 Baht) 1,260 80 8% Private Fund 67.7 13% 925 60 10% 25% 29% 17.0% YoY 1,000 66% 61% 27% 52% 40 Provident Fund 500 11% 9% 63% 4.2% YoY 15% 20 63% 62% 33% 28% 25% 0 0
Slide 12: Operating Expenses
Operating Expenses 2006 Operating Expenses (Million Baht) 2005 2006 %(YoY) Personnel Personnel expenses 1,205 1,216 0.9 Other expenses Premises 40% Premises and equipment expenses 416 452 8.6 expenses and 18% equipment Taxes and duties 73 102 38.8 expenses 15% Fees and service expenses 589 728 23.8
Slide 13: Financial Highlight
Financial Highlight (Million baht) Net Profit 2006 Revenue Structure 2,500 2,224 Interbank & Banking & MM - Interest 1,890 Retail-Fee Wholesales - 2,000 1,791 income 1,546 (13.7)%YoY Income 4% Interest 16% Income 1,500 Securities 9% 1,000 Brokerage 13% 500 Retail - Interest 0 Proprietary Asset Incom
Slide 14: Risk-Based Capital Adequacy
Risk-Based Capital Adequacy Operational Risk 2006 Operational Risk 2005 Listed Equity Listed Equity Reserve Reserve Non-listed Equity 20% 14% 10% Non-listed Equity 10% 4% Fixed-income SME Lending SME Lending 4% 0% 0% 0% Fixed-income Derivatives 0% 0% Derivatives 0% Banking Book(Interest- Banking bea
Slide 15: Assets and Liabilities Management
Assets and Liabilities Management Asset Mix Liabilities Mix 100% 75,283 84,781 62,201 72,099 100% 90% 8% 80% 80% 10% Other assets 70% 63% 66% Interbank & MM 60% 60% Other Liabilities & Repo 50% Investment 92% L-T Borrowings 40% Other Loans 40% 75% Interbank 30% Retail Loans Deposits* 20% 20% 10% Cor
Slide 16: Interest Rate Risk
Interest Rate Risk 1.40 1.30 1.23 1.20 Current Profile 1.00 • During the year 2006, duration gap between asset and liability 0.80 moved in a range between 10-11 months. 0.60 0.48 0.40 0.40 0.20 0.00 2005 2006 Assets Liabilities 16
Slide 17: Agenda
Agenda 2006 Achievement Financial Highlight 2007 Outlook 17
Slide 18: 2007 Outlook
2007 Outlook Business Environment Regulatory Changes • Intensifying competition • Applying new provisioning • Car market at mature stage, requirement in accordance with and auto sales growth to be flat IAS39 • Stable or slightly declined BoT • BASEL II implementation policy rate • Thai Accounting St
Slide 19: Business Strategies
Business Strategies • Continuing cross-selling program and focusing on complete product bundling • Strong HP loan growth target • Penetrate to used car market and SMEs • Branch network expansion to support growth target • Diversify into retail funding base • Capital management to improve ROE • Focus
Slide 20: Q&A
Q&A Website: www.tisco.co.th Tel: 0-2633-6868 E-mail: IR@TISCO.CO.TH Fax: 0-2633-6818 20
TISCO Financial Group Public Company — FY2006 Earnings Presentation on 6ix