Upload
others
View
6
Download
0
Embed Size (px)
Citation preview
2021 RS Business Direction19 January 2021
Virtual Conference
Khun Surachai Chetchotisak, CEO
Khun Wittawat Wetchabutsakorn, CFO
RS’s 4 Strategy Pillars for 2021
3
RS’s 4 Strategy Pillars for 2021
> Building on Our Key Strengths
> A Growth of Content Driven Utilization
> M&A Execution
> Diversification of New Products into Untapped Markets
Building on Our Key Strengths
6
Building on Our Key Strengths : RS Mall
Inbound (TV Broadcast) Outbound Online
Telemarketing Digital Marketing
Web App
New customer 30%*
Repeat purchase from 2 to 2.4 times**
New traffic 150% per month
45% 40% 15%
* New customer includes new customers not recorded in RS’s database and 1.6M existing customers purchasing new product categories** Repeat purchase rate calculated from a number of repurchases of active customers during a year
7
Inbound (TV Broadcast) Channel
New customer 30%
> Diverse TV ads : Talk, Live, Spot, PR & other blended commerce content in programs
> New TV channel partners & more precise advertising planning
> Exclusive products & campaigns for each channel
8
Outbound Channel
Repeat purchase from 2 to 2.4 times
> Predictive dialling system (PDS) improvement to cover all 1.6M customers
> An adoption of voice analytics to better understand a customer's perspective through their voice and tone
> More product assortment that match customers’ profile from data analytics
Telemarketing Digital Marketing
> Brand royalty through branding, marketing, CRM & design
9
Online Channel
New traffic 150% per month
> New traffic source : marketplace & social commerce
> More interactive website of RS Mall & a launch of app
> A launch of Coolanything’s website (new 170K potential customers per day) with long tail marketing
> Collaborative adsdriving traffic to online products and effectively retargetingcustomers
Diversification of New Products into Untapped Markets
12
New Product Lines into Untapped Markets
Functional Drinks Innovative Health Product Pet Food
40% 40% 20%
Untapped market
Convenience Store Exclusive Distribution Network (EDN) Specialty Store E-Commerce
13
New Product Lines through New Channels : Functional Drinks
Product Strategy
> Offer new sources of main ingredient
> Differentiate by price, presenter & product color
> Healthy trends driving demand for functional drinks and to boost immunity during pandemic
7-1150%
CVS/ Superm
arket17%
T/T23%
E-Comm
10%
Apr’21 Jun’21 Sep’21
Product Launch Roadmap
Target Market
Functional Drinks Market Landscape
The demand for functional drinks has been driven by perceived health benefits associated with their consumption and the overall wider availabilityin more retail stores nationwide. The distribution of functional drinks grew rapidly in the past years as consumers are becoming more healthconscious. In addition, government cut taxes on functional drinks (e.g. drinks that offer health benefits, such as those with added collagen orvitamins). In 2020, vitamin C drink continues to grow with the highest growth rate at almost 50%.
Functional Drinks in Thailand
14
Unit : THB bn 2018 2019 9M2020 YTD
Energy Drinks 23.6 24.4 21.0 7%
Functional Drinks 6.5 8.0 9.1 14%
Functional Drinks Channel
45% 55%
Traditional Trade Modern Trade
Thailand's liquid refreshment market in 2019 of THB 155bn
Source : OSP, Drinktec and Bangkok Post
15
New Product Lines through New Channels : Innovative Health Product
Product Strategy
> Strengthen premium grade of healthproduct at an affordable price
> Unlock new health & beauty equation : skin, hair, nail, bone & joints benefit
Mar’21 Jun’21
Target Market
Exclusive Distribution
Network90%
E-Comm10%
Product Launch Roadmap
Health Product Market Landscape
Health Product in Thailand
16
Unit : THB bn 2019 2020 Y-Y
Health supplements 20.9 23.9 15%
Value of supplements market by type
The market size of health supplement products in Thailand is close to24 billion baht and continue to rise by 15% in 2020. The marketgrowth is attributed to the following factors:1. A demand is growing for products that offer a convenient way to
maintain health, boost wellbeing and/or manage weight2. Thai consumers are increasingly conscious of the importance of
good nutrition and3. Thailand has become an ageing society showing huge
opportunities in health-conscious products such as organicproduce, food supplements and low-sodium diets
Source : Marketeer and Euromonitor
17
New Product Lines through New Channels : Pet Food
Product Strategy
> Target upper standard segment at an affordable price with a concept of “Best Health Condition at all Age”
> Launch different category by flavor, breed, age and size
May’21
Target Market
18 SKU
T/T & Specialty
70%
M/T20%
E-Comm
10%
1.5kg 3kg
10kg
Product Launch Roadmap
Unit : THB bn 2018 2019 Y-Y
Pet Market Size 32.2 35.5 10%
Pet Food Market Size 14.6 16.0 9%
Specialty Trade Channel
7.3%
The pet-loving community is becoming bigger and stronger that resulted in Thailand pet food market continue to grow. Dogs make up the largest market segment for pet food, both in terms of revenue and volume holding. The dog population continued to rise, and growth continued due to the increasing number of single people, couples without children and the elderly, who enjoy keeping a dog for company.
Modern Trade Channel
40%
20%
9%
31%
Dry Food
Wet Food
Homemade
A Mix of All Food Types
1.2%
40% 60%
The types of pet food
Pet Food in Thailand
Health Product Market Landscape
18Source : Marketeer and ECOMMERCEIQ
A Growth of Content Driven Utilization
21
Content Driven Utilization : Channel 8 Popular Contents
0.50%
0.53%
0.48%
0.40%0.37%
0.35%0.37%
0.44%0.42%
0.44%0.43% 0.42%
0.45%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
CH8's Ratings Popular programs throughout 2021 : Right approach (aim to reach 0.6%) with a variety of
sales package from offline to online platforms
Source : Nielsen (15+, 18hrs)
Dra
ma
Ser
ies
No.
1 S
port
s pr
ogra
mN
ews
Var
iety
22
Content licensing contributing to an additional revenue over THB 200mn
> Broadcast programming via various online channels to maximize product value
> Original content remake into international markets
Content Driven Utilization : Content liensing
24
Content Driven Utilization : Coolism No. 1 in the Easy Listening category
Coolive : A huge success of activities/concerts for loyal fans
Coolfahrenheit : Growing both on-
air and online radio to 3.7M listeners
Coolanything : Turning listeners to be shoppers on
lifestyle shopping App & Web (soon to be launched)
26
Content Driven Utilization : Music
Digital : A higher single release
(80 singles) & new content partnership
Artist management : Customized projects & music star commerce
Music copyright : Bulk sale & annual copyright fee
Content management : At least 1 special project per
quarter & potential international market expansion
Concert & Event
28
Content Driven Utilization : Concert & Event
1Q21 2Q21 3Q21 4Q21
Concert
Event related to TV media
GPM52%
GPM58%
GPM44%
GPM49%
GPM39%
GPM46%
GPM53%
M&A Execution
30
Summary of 2021 M&A Execution
M&A summary Details
Target > 1-2 deals (excluding current deal)
Focus sector > Entertainmerce model related
Investment size > THB 300-600M per deal
Objective & benefit > Strengthen & expand RS’s ecosystem> Improve health product portfolio : key production,
capacity, cost savings & new customer database> Value added proposition : partner’s business model> Shared resources
2021 Estimated Performance
32
2021 Estimated Performance
2021 Estimated Performance THB mn
Revenue 5,700
Commerce 4,000
Existing channel (RS Mall & Coolanything) 3,000
New product lines & New channels 1,000
Media & Entertainment 1,700
Digital TV (CH8) 1,000
Radio (Coolism) 200
Music (Rose Sound, Kamikaze & RSiam) 300
Concert & Event 200
GPM (%) 50-52%
NPM (%) 12-14%
CAPEX (THB mn) 56
Deal Announcement
34
Transaction Summary
Shareholding Structure Information Disclosure to SET
Existing Shareholders
Resolution Way Co., Ltd.
CF Asia Asset Management Co., Ltd.
Courts Megastore (Thailand) Limited
17.2%
35%
100%
65%
THB 920mn35%
The transaction size is of the highest value when calculated based on the total value of consideration method equals to 21.7%
Operation :1. Disclose to the SET2. Send a circular notice to shareholders
within 21 days from the disclosure date
Investment Proportion Internal Rate of Return: IRRInvestment value
RS acquired 35% (minority) shareholding stakes in Chase Asia Co., Ltd with THB 920mn by subscribing into new shares to be issued.
Industry Overview
36
Industry Overview : Loan market & NPL Supply
AMC providers in market as of 2020 (Total Asset) Total Asset and Number of AMC firm
Loan Outstanding of Commercial Banks
Unit: THB bn
Unit: THB bn
Source : KS Research
NPLs trend continued to increase
Unit: THB bn
37
Industry Overview : Consumer Loan & NPL
Overview : Consumer Loan GrowthConsumer loan growth classified by products
• Overall consumer loan growth was stable at 4.8% in line with weakhouseholds’ purchasing power, but expanded q-q following the relaxationof lockdown measures. For 2021, commercial banks in Thailand areexpected to post loan growth of 3-5%.
• Mortgage lending grew in line with improved demand for low-riseresidential properties.
• Credit card loan expanded following the relaxation of lockdown measures.Tailwinds that will support growth in credit card such as growth of MBpayment, e-Commerce and e-KYC. (Interest rate: 16% per annum)
• Auto and personal loans grew at a lower rate in line with weak households’purchasing power. (Auto loan interest rate: 24%, PL interest rate: 25%per annum)
• On the loan quality front, NPL ratio of consumer loan declined across allloan types, both secured and unsecured loans, following debt reliefmeasures and banks’ NPL management.
• However, moving into 2021 lenders will focus more on quality of thecustomers and more cautious to check customers’ qualification to controltheir asset quality.
%NPLs of consumer loan classified by products
Source: Bank of Thailand
* Consumer loan consists of mortgage, automobile loan, credit card and personal loan
3.23% 3.25%
3.71%4.04% 4.04%
3.88%
1.60% 1.66%1.86%
2.09%1.88%
1.58%
1.92% 1.81% 1.93%
2.64% 2.53%
2.01%
2.50% 2.5…
3.01%3.33%
3.04%
2.72%
0%
1%
2%
3%
4%
5%
2017 2018 2019 1Q20 2Q20 3Q20
Mortgage Auto Credit card Personal loan
6.1%
9.4%
7.5%
5.6%4.8%
4.8%
5.5%
7.8%
5.4%
3.4%
4.4% 5.4%
8.4%
12.6%
7.7%
6.1%
4.1%
5.5%
3.4%
7.4%
10.1%
2.0%-0.7%
1.0%
5.7%
10.1%
11.8%10.9%
7.8%
5.6%
2017 2018 2019 1Q20 2Q20 3Q20
Consumer Loan Mortgage Auto Credit card Personal loan
38
Industry Overview : Personal Loan & NPL
Overview : Personal Loan IndustryPersonal Loan growth vs Private Consumption
• Currently, personal loan business grew 5.6% compared to 7.8% in FY2019due to the COVID-19 pandemic that impacted on consumer spending andeconomic condition.
• The number of account of PL increased to 16.9 million or 11% y-y andoutstanding increased to 566,500 million baht or 1% y-y. The NPL ratio ofPL decreased to 2.72% as a result of debt relief measures.
• BOT cut interest rate on personal loan by 3% from 28% to 25% per annum,effective from August 1, 2020 onwards .
• In 2021, it is expected that banks and non-bank financial institutions willcontinue to focus on personal loan to help sustain their interest income.They will focus on expanding their loan portfolios to middle-incomecustomers together with more cautious in approval process and use theiradvantages in digital platforms/applications to develop a digital lendingmodel.
• In addition, BOT introduced the Digital Personal Loan that will increaseaccessibility to loan for consumers.
%NPLs of Personal Loan
Banks Non-Banks Total %y-y
2017 3.02 2.10 2.50 0.6%
2018 2.98 2.22 2.55 0.1%
2019 4.20 2.08 3.01 0.5%
1Q20 4.40 2.57 3.33 0.1%
2Q20 3.69 2.60 3.04 0.5%
3Q20 3.06 2.50 2.72 0.7%
2020 (E) 3.5-4%
Source: Bank of Thailand
6.1% 9.4%7.5%
5.6%
4.8% 4.8%5.7%
10.1%11.8%
10.9%
7.8%
5.6%
-0.6% -0.9%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
2017 2018 2019 1Q20 2Q20 3Q20 FY2020E
Consumer Loan Personal Loan Pivate Consumption
* Starting in February 2019, BOT includes Car Title Loan into the Personal loan amount
39
Interest Rate Trend : Lower Interest Benefit AMC Business
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
The 10Y-Government Bond Yields Average MLR of Commercial Banks
Source of funding for AMC are financial institution loans and debentures. KResearch expects that AMC will
benefit from a reducing of government bond yields and MLR
The 10Y-Government Bond reduced to 1.33% in December, 2020
Average MLR of commercial banks reduced to 3.12% in November, 2020
About Chase
41
Chase’s Shareholding Structure
Chase AsiaCo., Ltd.
CF Asia Asset Management Co.,
Ltd.
Resolution Way Co., Ltd.
Courts Megastore (Thailand) Limited
100%
Share CapitalTHB 170.5mn
@ Par THB 1,000
THB 520.0mn
@ Par THB 1,000
THB 367.1mn
@ Par THB 100
Share Capital THB 509.7mn
@ Par THB 100
99.76% 0.08% 0.08% 0.08%
Mr. PrachaChaisuwan
Miss HathairatKaewsaenmuang
Miss WaraluckChaisuwan
Miss SuthidaChaisuwan
42
Chase : Business Structure, Overview & Flow
Business Overview and Process flow
Chase Asia Co., Ltd.CF Asia Asset
Management Co., Ltd.Resolution Way Co., Ltd.
Courts Megastore (Thailand) Limited
Establishment Aug 1988 April 2012 Mar 2003 April 2002
Type of Business
Debt Tracking &Collections ServiceBusiness & LawyerServices
AMC Registered with theBOT in accordancewith the EmergencyDecree on AssetManagement Companies B.E. 2541
AMC Lending Business Personal loan
business is supervisedby BOT
Personal LendingBusiness
Formerly: ElectronicsBusiness
Business Partner/Customers
Target Companies
Type of Debtor
Type of Revenue Service Fee Capital Gain / Interest Interest
Corporate entity(i.e. bank, leasing)
Financial Institution
Non-FinancialInstitution
Personal loan(> 1 creditors)
Chase Asia C F Asia Asset Mgmt(BOT)
Resolution Way(BOT)
Courts Megastore
Individual and Corporate
Individual and Corporate Collateral and Non-Collateral
Individual and Corporate Collateral and Non-Collateral Governed by BOT regulation
Individual and Non-Collateral Not Governed by BOT regulation
Tracking & Collecting
ProvidingService
Managing Managing Lending Restructuring &Lending
Negotiating /Advising
Purchase /Auction Purchase /Auction
Providing services to related company
20192018
43
Chase : Group Performance Highlight
Group Performance
Unit: THB mn
NPL Portfolio as of 31 August 2020
O/S balance
IBD/EBITDA (x)
2018 2019
32%
26%Personal loan
Auto loan
Electrical appliance hire purchase
Claim balance
THB 27bn THB 925mn
17,630
8,327
1,039
570
386
25
(Total 85 ports, 107,657 accounts, Avg cost 4.9%)
(36 ports, 22,449 accounts, Avg cost 4.7%)
(40 ports, 45,308 accounts, Avg cost 5.4%)
(11 ports, 39,900 accounts, Avg cost 4.2%)
Hope Loan as of 31 August 2020
Accumulated loan amount of THB 373mn with 1,177 accountsas of 31 Aug 20
Loan amount per year (THB mn)
(IBD : THB 151mn)
(IBD : THB 35mn)
44
Chase : Group Performance Highlight
Chase Asia Co., Ltd.CF Asia Asset
Management Co., Ltd.Resolution Way Co., Ltd.
Courts Megastore (Thailand) Limited
Ty
pe
of
Bu
sin
ess Debt Tracking &
Collections ServiceBusiness & LawyerServices
AMC AMC Personal Lending Business to NPL
Personal Lending Business to NPL
Hope Loan from Resolution Way
Po
rtfo
lio
as
of
31 A
ug
ust
20
20
Deb
tC
oll
ecti
on Unit : No. of Portfolio
THB mn Account Value
NP
Ls
Man
agem
ent Type of No. of No. of O/S Claim
Loan Portfolio Account Balance CollectionBalance
Type of No. of No. of O/S ClaimLoan Portfolio Account Balance Collection
Balance
Type of No. of No. of O/S ClaimLoan Portfolio Account Balance Collection
Balance
Per
son
al
Len
din
g No. of No. of Loan PrincipalAccount Account Amount Balance
Balance
No. of No. of Loan Principal Account Account Amount Balance
Balance
Biz partner 181,258 17,993.33
Corporate group
108,623 26,792.13
Total 289,881 44,789.46
Auto 29 35,712 4,219.11 240.05
PL 26 15,046 2,018.67 258.65
Electrical Appliance
11 39,900 1,038.77 24.25
Total 66 90,118 7,276.55 524.15
1,427 543 388.52 154.68
Auto 11 10,136 4,108.18 146.21
PL 8 7,076 15,144.99 279.86
Total 19 17,212 19,552.17 436.07
PL 2 327 139.92 31.68
Total 2 327 139.92 31.68
724 634 293.63 217.20
45
Chase : Customer & Business Partner
Benefits from Investment
47
Benefits : Potential Synergy for Both Companies
Media & Sales Channels
TelemarketingData Analytics &
ManagementProduct & Service
Debt Tracking & Call Center
Collection Service AMC & License Personal Lending
A complete synergy : Media utilization, Telemarketing, IT system & Database
management in RS’s ecosystem
Brand image : A trusted confidant / advisor for all clients
Expansion Expansion
Shared resources : Platform, Telemarketing &
Customer Database
> Corporate Branding for a public company> Media & marketing strategy> Corporate restructuring to become a
public company in 2022
Expansion
48
Benefits : Financial Outlook of Chase resulting from RS Investment
P&L (THB mn) 2020(E) 2021(F) 2022(F) 2023(F) 2024(F)
Revenues 681 850 1,270 1,423 1,835
%Growth 25% 49% 12% 29%
Net Profit/(loss) 174 265 419 484 679
%NPM 26% 31% 33% 34% 37%
A capital injection of THB 920mn to Chase Asia &
Immediate earning contribution to RS
35% to RS 77 147 169 238(10-month)
Q&A
RS Investor Relations & Sustainable Development
+662 037 8125-6, 8128
http://www.rs.co.th/investor.html
https://www.facebook.com/RSInvestorRelations/
https://twitter.com/rs_ir
ir_rs