4. Thitikorn Public Company Limited4
Company Development
1972 Established with 1MB registered capital to provide motorcycle HP in Bangkok
1982 No.1 in term of market share of motorcycle HPin Bangkok
1991 Increased registered capital to 70 MB
1995 Acquired 99.99% of CVA to expand HP business in Central and Eastern area
2000 Initiated motorcycle insurance program to minimize risk which later become the industry standard
2002 Received award from The Consumer Protection Board
2003 Acquired CYP to provide automobile HP
Listed on the SET and raised fund of 1,100 MB
2005 Issued first TK’s Thai Baht-Debenture of 745 MB
2008 4-Stars Corporate Governance Scoring appraised by Thai Institute of Directors Association (IOD)
2010 Received Company Rating A- (Stable) from TRIS
2011 Acquired Cetelem (Thailand) Co., Ltd and changed its name to “TK Debt Services Co., Ltd.”
2012 Celebrate 40th year Anniversary
TK is one of the 17 listed companies to received an “Investors’ Choice Award” from Thai Investors
Association (TIA)
TK is one of the 9 Thai listed companies to be included in MSCI Small Cap Indices since November 30, 2012
2013 Total Assets surpassed 10,000 Mb for the first time
2014 First oversea operation in Cambodia, “Suosdey Finance” in Phanom Phenn
Second oversea operation in Laos, “Sabaidee Leasing Co., Ltd.” in Vientiane
TK is one of the 13 listed companies to received an “Investors’ Choice Award” from Thai Investors
Association (TIA)
2015 Established TK NGERN TAN JAI with 50 MB registered capital to provide Nano Finance
5. Thitikorn Public Company Limited5
TK Group Structure
Motorcycle hire purchase provider
with 6,655 MB portfolio size
Thitikorn Plc. (TK)
Total net portfolio of 7,565 MB
* As of March 31, 2015
99.99%
99.99%
99.99%
98.00%
Automobile hire purchase provider
with 901 MB portfolio size
Chayapak Co., Ltd. (CYP)
Debt collection servicer
(previously Cetelem Thailand)
TK Debt Services Co., Ltd.
Motorcycle hire purchase provider
with 6.5 MB portfolio size
Suosdey Finance PLC.
Debt collection servicer
C.V.A . Co., Ltd. (CVA)
Motorcycle hire purchase provider
with 1.8 MB portfolio size
Sabaidee Leasing Co., Ltd.
61.91%
Nano Finance
in Thailand
TK NGERN TAN JAI C0., Ltd
99.99%
6. Thitikorn Public Company Limited6
Success Factors
Solid Capital Base : 4,108.9 million baht
D/E ratio of 1.1 times : average D/E of financial sector is 9.1 times
Abundant credit line from the leading financial institutions with
favorable terms & conditions
88.3 % of Total Assets are income generating assets
High quality motorcycle HP portfolio with 4.8 % NPL
Very conservative accounting policy : recognized full amount of commission on
day one
Stringent loan provision : reserve full amount of the whole contract value
A- rating by TRIS
Proven Track Record
Solid Financial Position
No.1 in motorcycle HP in Bangkok since 1982
Most recognizable brand by motorcycle dealers & customers
Reputable major shareholders - Dr.Chumpol Phornprapha & Families
Proven management with market expertise more than four decades in HP industry
Never been an NPL with any financial institutions since founded
Large valuable database of over 3,000,000 customers
Extensive & nationwide outlets with 90 branches in 53 provinces
Consistently provide HP service during any economic condition
8. Thitikorn Public Company Limited8
Thailand Motorcycle Sales
Source : Thailand Motorcycle Hire Purchase Association, AP HONDA
78%
78%
79%
79%
81% 79%
77%
77%
77%
22%
22%
21%
21%
19%
21%
23%
23%
23%
1,595,305
1,741,749
1,553,561
1,846,005
2,001,244
2,125,646
2,004,000
1,699,218
477,934
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
2,400,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 (3M)
BMA Provincial Area
(Units)
~1,750,000
Q1
431,792
Motorcycle sales reached a
new record high for two
consecutive years in 2011
and 2012, however, 2013 and
2014 sales continue to
decline for two consecutive
years due to slow down in
economic activities for the
last 7 quarters.
9. Thitikorn Public Company Limited9
Monthly Motorcycle Sales
149,188
178,186
190,625
157,265
214,498
213,724
187,266
179,417
170,672
166,586
165,655
152,564
180,153
177,736
191,076
169,031
189,056
190,336
176,862
164,184
153,414
151,101
142,860
118,191
125,603
150,160
156,029
131,150
165,142
148,646
160,557
144,470
142,104
135,076
120,498
119,513
142,686
151,723
183,525
100,000
115,000
130,000
145,000
160,000
175,000
190,000
205,000
220,000
235,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014 2015(Units)Motorcycle sale declined for
19 consecutive months from
May 2013 to November 2014
10. Thitikorn Public Company Limited10
Motorcycle Hire Purchase in BMA
Source : Thailand Motorcycle Hire Purchase Association
* Ratio H1 Year 2012 => Cash sale in BMA 49% , HP financing in BMA 51%
TK estimate that cash
sales portion remain at
35-40% due to tighten
lending policy from HP
operators in the first half
of 2014.
73%
78%
80%
78% 71%
61% 54% 49%
27%
22%
20%
22% 29%
39%
46% 51%
341,289
362,741
390,740
353,149367,779
328,749
379,565 378,645
449,643
457,782
364,969
108,112
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
(3M)
Cash sale in BMA HP financing in BMA
(Units)
15. Thitikorn Public Company Limited15
Thailand Automobile Sales
In 2012, Thai domestic auto
sales reached a new
recorded high over 1.4
million units propelled by
government first time car
buyer scheme.
In 2013 and 2014 automobile
sales continue to decline for
two consecutive years
The Automotive industry
latest forecast 2014 sales to
be approximately 900,000
units
Source : Toyota Motor Thailand Co.,Ltd.
71.5%
61.0%
58.1%
56.7%
54.6%
53.5% 52.6%
58.1%
60.1%
28.5%
39.0%
49.1%
43.3% 45.4%
46.5%
47.4%
41.9%
39.9%
631,251 615,269
548,871
800,357 794,081
1,434,669
1,330,678
881,832
197,787
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
1,500,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 (3M)
Passenger car Commercial vehicle(Units)
~900,000
Q1
224,171
16. Thitikorn Public Company Limited16
Monthly Automobile Sales
76,246
90,457
110,977
87,788
115,943
123,471
131,646
129,509
132,874
142,839
148,243
144,676125,817
129,910
157,527
109,673 111,848
106,018
98,258 100,289
94,945
88,989
93,483
113,921
68,508
71,680
83,983
73,260
69,681
73,799
69,527
68,835 69,137
70,850
73,068
89,504
59,721
63,949
74,117
20,000
35,000
50,000
65,000
80,000
95,000
110,000
125,000
140,000
155,000
170,000
185,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014 2015(Units)Automobile sale declined
for 23 consecutive months
from May 2013 to March
2015
19. Thitikorn Public Company Limited19
Hire Purchase Business
Business
Policy
Hire purchase provider for all brands
Focus on new motorcycle hire purchase
Hire purchase term of 24 - 30 months
All brands such as Honda, Yamaha,
Suzuki, Kawasaki, etc.
Product
Brands
Categorized by Outstanding Duration
Hire purchase provider mainly
Brand new cars
(95% new cars and 5% second hand cars)
Hire purchase term of 36 - 60 months
All brands mainly Toyota, Isuzu,
Honda, Nissan, Ford, Mitsubishi etc.
Motorcycle Automobile
Categorized by Outstanding Duration
Hire Purchase
Account
Receivables
Balance as of
March 15
<=12 month
13.12%
>12 month
86.88%
13-36 month
39.28%
<=12 month
8.46%
>36 month
52.26%
20. Thitikorn Public Company Limited20
Credit Policy
Customer Profile
Secured source of income and occupation
Clear hire purchase objective
Customize Terms and Conditions
Acceptable Guarantor
Not Recorded in TK’s Black List
Customer Residence in TK’s Coverage Area
Monitor Motorcycle and Automobile Model
as Per Standard Procedure
Proprietary credit approval
policy and customize terms
and conditions for each
customers
21. Thitikorn Public Company Limited21
Credit Approval & Control
Preliminary Credit
Checking
Record & Documentation
Checking
Credit Approval
Debt Settlement
Debt Collection
Potential customers apply for credit approval; review customers’ profile
Verify accuracy of customers’ profile and collect required documents
- Analyze customers’ credibility through credit scoring system and customize
net financing
- Transfer customer profile to company’s database for future reference
Provide multiple payment channels through bill collectors, banks, counter
service and internet
- unpaid debt <3 months --> payment warnings
- unpaid debt 4-6 months --> agreement termination
- unpaid debt >6 months --> bad debt write off
--> repossess and appraisal after verdict
22. Thitikorn Public Company Limited22
TK Branches & Networks
As of May 2015
Central
25 branches
North
11 branches
North-East
17 branches
East
27 branches
South
10 branches
Networks
Servicing over 1,032 motorcycle
strategic alliances
Servicing over 45 automobile
strategic alliances
Multiple payment channels
nationwide
Network
Branches
Extensive 90 branches in 53
provinces out of 77 provinces in
Thailand
Branch
24. Thitikorn Public Company Limited24
Revenue, Expense and Net Profit
Slow down in economic
activities since Q2 of 2013
together with negative
growth in export and tourism
sector as well as the
Ex-government inability to
function properly due to
prolong political
demonstration greatly
reduced our customers
payment ability
2,879
3,370
3,662
3,883
3,679
940 854
2,347
2,745
2,950
3,455 3,484
869
747
532.0
625.0
712.0
429.0
195.6
71.5
107.2
-100
100
300
500
700
900
1,100
1,300
1,500
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2010 2011 2012 2013 2014 3M/2014 3M/2015
Total Income (LHS) Total Expense (LHS) Net Profit (RHS)
Unit : Mb Unit : Mb
25. Thitikorn Public Company Limited25
Revenue Breakdown
98.5% of Total Revenues contributed by Motorcycle
HP Interest and Other Incomes
2013 Total Revenues = 3,883 MB
Motorcycle Hire Purchase Income
2,945 MB (75.8%)
Other Income
856 MB (22.1%)
Automobile Purchase Income
82 MB (2.1%)
2014 Total Revenues = 3,679 MB
Motorcycle Hire Purchase Income
2,758 MB (75.0%)
Other Income
855 MB (23.2%)
Automobile Purchase Income
66 MB (1.8%)
Q1/2015 Total Revenues = 854 MB
Motorcycle Hire Purchase Income
636 MB (74.4%)
Other Income
205 MB (24.1%)
Automobile Purchase Income
13 MB (1.5%)
26. Thitikorn Public Company Limited26
Total Assets vs. Hire Purchase Account Receivables
88.3% of TK Total assets
are HP portfolio which
generate stable monthly
cash inflow from monthly
installment from diversify
customers over 251,340
accounts
6,962
7,576
8,648 9,059
7,768 7,565
716
1,105
975
1,208
999 1,002
7,678
8,681
9,623
10,267
8,767 8,567
0
2,000
4,000
6,000
8,000
10,000
12,000
2010 2011 2012 2013 2014 Q1/2015
Receivables Other
Unit : Mb
-2.6%
8.8%
14.2%
4.8%
-14.3%
27. Thitikorn Public Company Limited
> 6 mth
0.6%
<3 mth
95.6%
Aging of Motorcycle Q1/2015
4-6 mth
3.8%
6,157
7,151
7,708
6,768 6,664
0
1,500
3,000
4,500
6,000
7,500
9,000
2011 2012 2013 2014 Q1/2015
Motorcycle HP portfolio
Unit : Mb
1,420 1,497 1,351
999
901
0
500
1,000
1,500
2,000
2011 2012 2013 2014 Q1/2015
-9.8%
-26.1%
-9.8%
5.4%
Automobile HP portfolio
Unit : Mb
7.8%
-12.2% -1.5%
16.1%
* Net HP recievable (less allowance for doubtful a/c)
4-6 mth
3.1%
>6 mth
4.8%
<3 mth
92.1%
Aging of Automobile Q1/2015
High Quality HP Portfolio
* HP recievable
27
28. Thitikorn Public Company Limited28
High Quality HP Portfolio
Prudent expansion policy with strict credit
approval process and strong collection team
create sustainable HP portfolio.
2014 : Aging of Total HP Portfolio (8,303 MB)
Current -3 mth
7,890 MB (95.1%)
> 6 mth
102 MB (1.2%)
4-6 mth
311 MB (3.7%)
Q1/2015 : Aging of Total HP Portfolio (8,067 MB)
Current -3 mth
7,679 MB (95.2%)
> 6 mth
87 MB (1.1%)
4-6 mth
301 MB (3.7%)
Current -3 mth
9,202 MB (95.6%)
> 6 mth
128 MB (1.4%)
4-6 mth
293 MB (3.0%)
2013 : Aging of Total HP Portfolio (9,623 MB)
29. Thitikorn Public Company Limited29
Stringent Accounting Policy
Past due over 3 months will be charged off
One time commission charged at the beginning of the contract
Motorcycle with past due over 6 months will be written off (without verdict process)
Automobile with past due over 6 months that had gone through verdict will be written off
Income Recognition and
Charge-Off Policy
Write-Off Policy
Provision for Doubtful
Account Policy
TK does not deduct the
collateral value before
setting provision for
motorcycle HP
Provision for Doubtful Account of Motorcycle Hire Purchase
Net Account Receivables
Current portion < 1 Months
1 < Overdue < 3 Months
3 < Overdue < 6 Months
Overdue > 6 Months
1
20
50
100
Provision for Doubtful Account of Automobile Hire Purchase
Provision for Doubtful Account (%)
Provision for Doubtful Account (%)Net Account Receivables
Current portion < 1 Months
1 < Overdue < 3 Months
3 < Overdue < 6 Months
6 < Overdue < 12 Months
Overdue > 12 Months
1
2
20
50
100
30. Thitikorn Public Company Limited30
High Coverage Ratio
Robust reserve for loan
loss with 129.3% coverage
ratio or 6.2% of total HP
portfolio
7,957
9,109
9,624
8,303
8,067
78 104 129 102 87
343 329 422 413 388381 461 565 535 502
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2011 2012 2013 2014 Q1/2015
Net HP A/R NPL (>6 mth) NPL (>3 mth) Loan provision
Unit : Mb
31. Thitikorn Public Company Limited31
Dividend
Year Operation Net Profit
(MB)
Earning per
share
Dividend
per share
Dividend Dividend Last Price
(Baht)
Dividend
Yield
Period (The Company
Only)
(Baht) (Baht) (MB) Payout Ratio As of XD
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
1 Jan 03- 31 Dec 03
1 Jan 04- 31 Dec 04
1 Jan 05- 31 Dec 05
1 Jan 06- 31 Dec 06
1 Jan 07- 31 Dec 07
1 Jan 08- 31 Dec 08
1 Jan 09- 31 Dec 09
1 Jan 10- 31 Dec 10
1 Jan 11- 31 Dec 11
1 Jan 12- 31 Dec 12
1 Jan 13- 31 Dec 13
1 Jan 14- 31 Dec 14
391.2
422.9
345.7
248.6
273.8
313.2
318.6
516.9
491.2
703.2
374.0
161.4
0.78
0.85
0.69
0.50
0.55
0.63
0.64
1.03
0.98
1.41
0.75
0.32
0.35
0.38
0.40
0.30
0.32
0.34
0.36
0.52
0.58
0.80
0.43
0.18
175.0
190.0
200.0
150.0
160.0
170.0
180.0
260.0
290.0
400.0
215.0
90.0
44.73%
44.93%
57.85%
60.34%
58.44%
54.28%
56.50%
50.30%
59.04%
56.88%
57.49%
55.76%
9.60
6.65
4.52
3.32
3.90
2.88
4.36
8.40
11.40
18.80
8.85
11.00
3.65%
5.71%
8.85%
9.04%
8.21%
11.81%
8.26%
6.19%
5.09%
4.26%
4.86%
1.64%
