thani oppday q3/2013
TRANSCRIPT
THANI PresentationOPP DAY
5 November 2013
2
1
Contents
2013 Strategies & Directions
3
3Q13 THANI’s Performance
Appendix
2013Strategies & Directions
6 Strategic Goals for 2013
1To best satisfy our customers with the best service and total financial solution to meet their unique needs
To increase our productivity and customer satisfaction through strategic investments in our people, leadership, systems and processes
To be the market leader in truck hire purchase business by gaining share in used truck and new truck segments
To grow the hire purchase customer base with new branches upcountry to support growth
To expand into other high-yield loan markets (taxi, big bike)
To restructure financing debt to reduce financial cost and boost competitive edge
2
3
4
5
6
Source: Company data
4
Key Principles to Support Goals
Key Underlying Strategies
Focus on specifically
targeted customers / segments
Improve and implement
THANI business processes
Enhance human resources
effectiveness
(Management and Staff)
Success of 6 Strategic Goals
Optimization Initiatives
2013 Business Directions
• Generate interest income from core segments (new truck and used truck) and other high-yield loan markets (Taxi, Big bike, Hi-end car)
InterestIncome
InterestExpenses
Capital
Directions Action Plans
• Open new branches in major provinces to support growth
• Speed up commission payment to Dealers
and Sales Representatives
• More promotion activities with Dealers
• Keep close relationship with customers and dealers (Thank you party etc.)
• Participate in promotion campaigns with
TBANK
• Use TBANK customers base to expand our customer base
• Decrease financial cost ratio• Refinance high interest rate borrowings
• Obtain low-cost funds from financial institution via the company financial structure and liquidity risk management
• Better fixed-cost management by minimizing operational redundancy
• Maintain Debt to Equity ratio of THANI not over 10 times
• Accumulate retained earning
• Use stock dividend policy to retain cash to support growth
• When DE Ratio over 8 times use leverage management plan
Operating Expenses
• Control cost
6
ProvisionExpenses
• Maintain NPL and coverage ratio at the industry average
• Closely monitor loans
• Focus on loan quality
• Use stringent lending policy
9M13 THANI’s Performance
13,250
14,723
16,810
18,659
21,212
23,470
25,516
239
251
197
409
318
464
362
160
169
179
207
202
219
236
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Leasing
Other
Hire Purchase
Assets
9
Hire Purchase Breakdown (MB)
Assets (MB) Hire Purchase Breakdown (30 SEP 13) (Percent)
• 3Q13 assets increased from continuous truck loan expansion
• 3Q13 loans increased by 36.50% from 4Q12
• Truck loans continued increasing by 47.69% from 4Q12 with amount 6,139MB* of new lending in 9M13
• In 9M13, we will diversify to Taxi and Bike bike with high yield loan
Key Highlights
Remark: Hire purchase break down is amount before provisionSource: Company data, 3Q13 is unreviewed
7,953 8,957 11,101
12,872 15,146
17,157 19,011
4,607 4,789
4,536
4,343
4,262
4,148
4,159
433
621
676
820
1,041
1,259
1,341
370
476
602
714
843
973
1,105
127
152
168
193
226
269
304
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Other
Big bike
Taxi
Used Car
Truck
Truck73.34%
Used Car16.05%
Taxi5.17%
Big bike4.26%
Other1.17%
Liabilities
10
Liabilities (MB)
Source: Company data, 3Q13 is unreviewed
• 3Q13 borrowings increased by 6,195 MB or 38.14% from 4Q12. This was due to support loans growth
• 3Q13 long term and short term proportion of borrowing as 61.91% and 38.09% respectively
• 3Q13 Fixed interest rate proportion as 98.64% matching with fixed rate from loan yield
Key Highlights
Borrowings Breakdown (MB)
Long Term & Short Term (Percent) (30 SEP 13)
Fixed Rate & Float Rate (Percent) (30 SEP 13)
Float Rate 1.36%
Fixed Rate 98.64%
11,208 12,715
14,453 16,241
18,303 20,578
22,436 233
236
387
524
720
709
600
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Other
Borrowing
25 40 - - - - -
3,777 4,329 6,219 6,007
8,091 7,394 8,545 250
7,008
6,984
9,955
9,931 12,903
13,639
7,156
1,338
1,250
280
280
280
252
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Long Term Borrowing -Float Rate
Long Term Borrowing -Fixed Rate
Short term Borrowing -Fixed Rate
Short term Borrowing -Float Rate
11,208 12,715 14,453 16,242 18,582 20,577 22,436
Short Term 38.09%
Long Term 61.91%
11
Profitability & Total Income
Net Profit (MB)
• 3Q13 net profit amounted to 212 MB, an increase of 58 MB or 37.83% QoQ
• The increase in 3Q13 net profit was mainly due to the continuous truck loan expansion
• ROAA and ROAE in 3Q13 stayed at 3.37% and 28.29% respectively
ProfitabilityROAA and ROAE* (Percent)
Total Income (MB)
Source: Company data, 3Q13 is unreviewed
Total Income
87 90
154 159
199 198212
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
16.28% 16.40%
26.90%25.93%
31.00%28.52% 28.29%
2.71% 2.51%
3.77%3.45%
3.94%3.47% 3.35%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
ROE ROA
283 317365
411456
510557
4450
5656
68
68
75
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
OtherIncome
InterestIncome
328 367 421 467 524 578 632
12
Interest Income & Expenses
Interest Income (MB)
Interest Expenses (MB)
Yield, Cost of Fund, and Spread (Percent)
Source: Company data, 3Q13 is unreviewed
• Interest income has been increasing from an expansion of loans, especially the truck hire purchase loans
• 3Q13 spread increased QoQ from effective cost management
Highlights
283317
365411
456510
557
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
150167 170
186 192215
242
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
2.93% 3.04% 3.68% 3.98% 4.15% 4.29% 4.19%
5.65% 5.60% 5.02% 4.86% 4.47% 4.43% 4.47%
8.58% 8.65% 8.70% 8.84% 8.62% 8.72% 8.66%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
Spread Cost of Fund Yield
13
Operating Expenses
Operating Expenses (MB)
• 3Q13 operating expenses slightly decreased by 5 MB or 9.34% QoQ. This was mainly because of the better operating cost management
• 3Q13 cost to income ratio decreased to 14.26%
Highlights
Source: Company data, 3Q13 is unreviewed
Cost to Income Ratio* (Percent)
46 45
61 5951
58 56
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
25.78%
22.26%
24.43%
21.13%
15.40% 15.90%
14.26%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
14
Provision Expenses
• Normal provision in 3Q13 was higher than 2Q13 mainly due to the low season in loan collection (Deduct general reserve 12 MB recording in 3Q13)
• 3Q13 credit cost was at 1.11%, an increase from 0.72% in 2Q13
Highlights
Source: Company data, 3Q13 is unreviewed
Provision expenses (MB) Credit Cost (Percent)
15
41
5
19
3442
71
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
0.47%
1.12%
0.13%
0.41%
0.64%0.72%
1.11%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
15
NPLs and Reserve
NPL (MB) NPL Ratio and Coverage Ratio (Percent)
• NPL ratio was at 2.58%, an increase from 2.30% at the end of 4Q12
• The increase in NPLs was mainly due to low season in loan collection
Highlights
Source: Company data, 3Q13 is unreviewed
Total Loans (MB)
445 483 445 438481
553
671
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
13,41014,891
16,98818,866
21,41323,689
25,752
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
3.28% 3.21% 2.59% 2.30% 2.23% 2.32% 2.58%
69.36% 70.61%76.66% 80.46% 77.94%
72.96% 70.28%
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
NPL Ratio Coverage Ratio
16
Debt & Equity
Debt & Equity (MB) Debt to Equtiy Ratio
Source: Company data, 3Q13 is unreviewed
If 4Q13 new loans is in our target, Debt to Equity ratio of 2013 would be 7.58%
11,44012,951
14,84016,766
19,02221,287
23,0362,209
2,192
2,345
2,509
2,709
2,867
3,079
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
5.18
5.91 6.33
6.68 7.02
7.43 7.48
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
17
Comparison to Targets
Source: Company data, 3Q13 is unreviewed
Performance Parameters 2012A 2013F** 9M13A
Profitability
ROE 21.67% N/A 29.22%
ROA 3.10% N/A 3.57%
Spread 3.72% 4.48% 4.23%
Cost to Income Ratio 23.20% 21.03% 15.16%
Loans Loan Growth 54.38% 47.77% 36.50%
Asset QualityNPL Ratio 2.27% 2.50% 2.56%
Credit Cost 0.53% 0.82% 0.82%
Capital D/E Ratio 6.67 7.58 7.48
Appendix
Insurance Business
Thanachart Capital Plc.
MAX AMCNFS AMCThanachart Bank Plc.
Scotia Netherlands Holding B.V.
Financial Business
Securities Business
Leasing Business
Thanachart Securities Plc.
Thanachart Fund Management
Thanachart Insurance Plc.
Siam City Life Assurance Plc.
TS Asset Management
Thanachart Management and Services
Scib Services
83.44%100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
50.96%
48.99%
75.00%
As at 30 June 2013
Asset Management Business
Thanachart Group Leasing
Ratchthani Leasing
National Leasing
100.00%100.00%
65.18%
Source: Company data
100.00%Supporting Business
Thanachart Training and Development
Thanachart Broker
Distressed Asset Management
Commercial Banking Business
Thanachart Group Structure
19
THANI Fact Sheet
Equity
Equity MB
Registered Capital 1,610.82
Paid-up Capital 1,610.82
Total Equity 2,866.67
Shareholding Structure
Shareholders %
Thanachart Bank 65.18
Chonkadeedamrongkul Family 8.65
Minority Shareholders 26.17
Remark: As at 8 March 2013 Remark: As at 30 Jun 2013
20
Investor Relations
Ratchthani Leasing Public Company Limited
77-35-36 11UP Floor, Sinsathorn Tower,
Krungthonburi Road, Klongtonsai,
Klongsarn, Bangkok 10600
Tel: (662) 440 0844
Fax: (662) 440 0848
E-mail: [email protected]
Website: http://www.ratchthani.com