1.MTLS Q4'17 OPPDAY-Final 20.2.18
24
update CAC Ratification
Transcript of 1.MTLS Q4'17 OPPDAY-Final 20.2.18
update
CAC Ratification
Financial Highlights
Unit: MB 4Q17 4Q16 YoY% 3Q17 QoQ%
New Loan Amount 16,834 11,524 46.07% 15,253 10.36%
Loan Receivables 35,622 23,541 51.32% 32,332 10.18%
Total Revenue 2,174 1,402 55.06% 1,968 10.47%
Net Profit 743 483 53.83% 650 14.30%
2014 2015 2016 2017 YoY
New Loan Amount 12,471 20,232 37,717 58,039 53.88%
Loan Receivables 7,448 12,630 23,541 35,622 51.32%
Total Revenue 1,856 2,559 4,471 7,470 67.07%
Net Profit 544 825 1,464 2,501 70.83%
1
Share Capital Information
Price (Dec 29, 2017) : 38.75 THB
Hi/Low : 43.75 / 27.50
No. of shares : 2,120 M
Market Capitalization : 82,150 MB
P/E (X) : 36.66P/BV (X) : 9.97
MSCI Global Small Cap Index
Major Shareholders (Nov 17, 2017)
Mr. Chuchat Petaumpai 33.97%
Mrs. Daonapa Petampai 33.96%
Others 11.38%
Public 20.69%
Board of Directors
1. Admiral Apichart Pengsritong Chairman
2. Mr. Chuchat Petaumpai Director
3. Mrs. Daonapa Petampai Director
4. Mr. Yodhin Anavil Director
5. Mrs. Kongkeaw Piamduaytham Director
6. Mr. Kampol Tatiyakavee Director
7. Mrs. Nongnuch Dawasuwan Director
Audit Committee
1. Mrs. Kongkeaw Piamduaytham Chairman of the Audit Committee
2. Mr. Kampol Tatiyakavee Audit Committee
3. Mrs. Nongnuch Dawasuwan Audit Committee
Ms. Monthon Onphan as Company Secretary
Mr. Chaloem Inhoum as Audit Committee Secretary
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Contents
Company Profile
Business Operation
Industry Overview
Financial Highlights
3
2015
Company History
2003
1992
1998
2001
Established in May 22, 1992 to provide motorcycle hire purchase business under the name “D.S. Leasing Co.,Ltd.” by Mr. Chuchat Petaumpai and Mrs. Daonapa Petampai
Started providing Motorcycle Title Loans Terminated Motorcycle Hire Purchase business
Started providing Tractor Title Loans Changed name to “Muangthai Leasing Co.,Ltd.”
Started providing Car Title Loans
2006 Started operating Personal Loans under supervision of the Bank of Thailand Invested in 99.99% of “Muangthai Leasing Insurance Broker Co., Ltd.”
2014
2016
Expanded to 506 branches Listed in Stock Exchange of Thailand
Started Nano Finance Started Land Title Loans Expanded to 940 branches Received BBB Tris Rating
4
Expanded to 1,874 branches First branch in Bangkok Announced Anti corruption
Calculated in SET 50 Thailand Nominated for CNBC Asia Business Leaders Award Expanded to 2,424 branch CG 4 stars
2017
Type of Services
Motorcycle Title Loan Car Title Loan Tractor Title Loan Land Title Loan (June 2015)
Occupation Individuals Individuals Farmers Farmers
Vehicle Type
Credit Line Baht 3,000-30,000 Baht 30,000 – 400,000 Baht 10,000 – 200,000 Baht 5,000 – 200,000
Age of vehicle Not exceed 12 years Not exceed 25 years Depend on the condition of engine -
Installments 10-24 months 10-24 months : credit line < Baht 30,000 12-50 months : credit line ≥ Baht 30,000
4 months 12 – 50 momths
1. Secured Loan 2. Unsecured Loan■ Use vehicle title and land title as collateral■ The Company offers loan service to low income individuals
that have no access to financial services from commercial bank but have ownership in vehicle and land
■ Ownerships of vehicle and land are not transferred to the Company but the borrowers have to surrender their titles to the Company and sign in the transfer document (Blank Transfer) in exchange for loan granted
■ The borrowers can possess their assets as usual
Personal Loan■ The Company offers personal loan only to existing
customers who have good payment record■ Credit Line is limit at Baht 20,000■ Under supervision of Bank Of Thailand
Nano finance (July 2015)■ Credit Line is limit at Baht 30,000■ Under supervision of Bank Of Thailand
5
Loan Approval
Notification
Credit Approval Process
Qualification of Customer
Qualification of Guarantor
Collateral
Type of Vehicle
Brand and Model
Age of Vehicle
Vehicle Condition
Credit Approval Checklist
Loan Agreement
Ownership Transfer Memo
Ownership Transfer Form
Power of Attorney
In case of Car or Agricultural vehicle title loan or motorcycle title loan that value Baht 30,000 and more, the approval must be granted by branch manager or regional manager.
In case of Car or Agricultural vehicle title loan or motorcycle title loan that value Baht 30,000 and more, the approval must be granted by branch manager or regional manager.
LoanApproval
LoanApproval
Verify Customer,Guarantor and
Collateral
Verify Customer,Guarantor and
CollateralDetermineCredit LineDetermineCredit Line
DocumentPreparationDocument
Preparation
In case of motorcycle title loan value below Baht 30,000, credit analyst can approve such loan in accordance with credit approval table.
In case of motorcycle title loan value below Baht 30,000, credit analyst can approve such loan in accordance with credit approval table.
6
MTLS has 6 own auction centers for selling the collateral vehicle repossessed from
the customers.
Chonburi Auction Center
Ayudhya Auction Center
Khonkaen Auction Center
Phitsanulok Auction Center
Repossession and Auction Process
• Customer pasts due more than 2 months
• The Company could repossess the collateral vehicle from the customer (must be granted an approval from Branch Manager)
• Head of debt collection unit gathers the collateral vehicle from branches and deliver them to the auction centers.
• The auction centers are responsible for selling of the collateral vehicles.
7
Nakhon RatchasimaAuction Center
Distribution Channel and Target
2014
506
Total 2,424 Branches 2015
940
2016
1,664
2018(F)
2,800
6 million people 324 branches
22 million people 716 branches
28 million people 1,197 branches
10 million people 187 branches
Thailand’s Geography77 cities/877 towns/7,255 villages
• 4Q17 total 2,424 branches• All branches linked online, real time• Well positioned in urban and rural markets• Leading player across retail loan categories
Growing Potential
8
2017
2,424
2019(F)
2020(F)
3,400
4,000
Branches
Full Branch Service Center
Branch Sub Branch Service Center
CAPEX (Baht) 800,000 400,000 250,000
PAYBACK PERIOD 1 YR9
Sub Branch
Motocycle, 54.02%
Other Vehicles, 5.00%
Car, 40.98%
Vehicle Title Loan Industry & New Loan Lending
0
10
20
30
40
2013 2014 2015 2016 2017
19.95 20.31 20.50 20.47 20.69
13.02 13.79 14.42 15.00 15.70
1.63 1.74 1.81 1.86 1.92
Motorcycle Car Others
Million
Source : Department of Land transport
Proportion of Vehicle Registration as of December, 31 2017Accumulated Number of Vehicle Registration
New Loan Amount Number of New Contracts
0
20,000
40,000
60,000
2013 2014 2015 2016 2017
9,84012,471
20,232
6,95211,8508,75014,10210,491
15,25311,524
16,834
Q1 Q2 Q3 Q4
0
1,000,000
2,000,000
3,000,000
2013 2014 2015 2016 2017
717,790848,859
1,194,005
364,981538,627
432,079647,360
501,090
699,425534,185
761,871
Q1 Q2 Q3 Q4
Contracts +42.62% YoY+8.93% QoQMillion Baht
+46.07% YoY+10.36% QoQ
10
37,7171,832,335
2,647,28358,039
14.72 13.43 14.15 14.69 12.98 13.43 13.54 14.15 13.86 14.32 14.09 14.69
24.6521.52
27.17 26.8024.96
28.31 27.71 27.7025.29
27.56 26.5927.78
0
10
20
30
2014 2015 2016 2017 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Loan receivable per branch New loan per branch
Million Baht
Loan Receivables and No. of Branches
Million Baht Branches
0
6,000
12,000
18,000
24,000
30,000
36,000
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
5,083 5,903 7,526 10,555 10,876 11,758 12,564 13,440 609 1,310
3,862
7,779 8,558 9,589
10,553 11,671
134 200 538
1,136 1,280 1,463
1,649 1,733
10 34 340
1,037 1,324
1,667 2,234
2,844
252
2,583 3,331
4,057 4,483
4,921
111
451 603
772 849
1,013
Motorcycle Car Agricultural Vehicle Personal Loan Land Nano
Loan Receivables classified by Types of LoanMillion Baht
Loan Receivables
Personal Loan7.98%
Nano2.85%
Motorcycle37.73%
Car32.76%
Tractor4.86%
Land13.82%
Proportion of Loan Receivables as of December, 31 2017
(Figure is annualized)
Average New Loan and Loan Receivables per Branch
506 940
11
1,8741,664
7,448
12,630
23,54135,622
25,972
29,306
32,33235,622
506
940
1,664
2,4241,874
2,0462,294
2,424
-
1,000
2,000
3,000
0
9,000
18,000
27,000
36,000
45,000
2014 2015 2016 2017 1Q17 2Q17 3Q17 4Q17
Loan receivable Number of branch
1,664 1,5151,2361,114 2,046 2,294 2,4242,424
0
500
1,000
1,500
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
179.5 182.4 216.0419.3
466.7 550.6604.7 690.2
142.6 142.6 119.6
226.4 285.9372.4
435.9480.8
277.86%318.04%287.61% 257.35%265.32%267.11% 274.72% 265.41%
116 102 117 251 284 345 379 441
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
87.05% 89.57%91.89% 91.49%91.25% 90.88% 90.78% 90.77%
10.96% 9.06% 7.18% 7.44% 7.66% 7.94% 8.05% 7.99%
1.99% 1.37% 0.92% 1.07% 1.09% 1.18% 1.17% 1.24%
Overdue less than 30 days Overdue 31-90 days Overdue more than 90 days
Asset Quality Ratio
Loan Receivables Classified by Aging
Loan Receivables Quality
5.52%
4.36%
2.65% 2.74% 2.90% 3.15% 3.22% 3.29%
0%
2%
4%
6%
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
Credit cost = Allowance for doubtful / Total loans
Aging Rate of allowance for doubtful accounts
Current and past due for not more than 30 days
1%
Past due for 31 - 90 days 2%
Past due for more than 90 days 100%
Receivables transferred to litigation 100%
1. Allowance for Doubtful Account by Aging
2. Additional provision for potential uncollectible receivables (General Reserve) : calculated by PD x LGD
Allowance for Doubtful AccountMillion Baht
Allowance for doubtful account by Aging
Additional provision for uncollectible receivables Non performing loans
coverage ratio = allowance for doubtful / NPL
645.7
322.1 325.0 335.6
12
752.6923.0
Loan Receivables Classified by Aging calculated from Net Loan / Total Net Loan Net Loan = Loan receivables – unearned interest income
1,040.61,171.0
0
2,000
4,000
6,000
8,000
10,000
2013 2014 2015 2016 2017
1,548 1,8562,559
8651,5631,0031,7651,201
1,9681,402
2,174
Q1 Q2 Q3 Q4
Total Revenues Revenues Structure
Million Baht
Operating Results
Interest Income and Management Fee
Million Baht
0
2,000
4,000
6,000
8,000
2013 2014 2015 2016 2017
1,301 1,5672,225
7691,415
897
1,6001,083
1,7961,270
1,984
Q1 Q2 Q3 Q4
+55.06% YoY+10.47% QoQ
0%
20%
40%
60%
80%
100%
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
84.0% 84.5% 87.0% 90.6% 90.5% 90.7% 91.3% 91.3%
15.4% 15.1% 12.4% 9.1% 9.1% 8.7% 8.4% 8.3%
0.6% 0.5% 0.7% 0.3% 0.4% 0.6% 0.3% 0.4%
Interest Income & Management fee Fee and Service Income Other income
• Total Revenues are new high due to branch expansions
• Interest Income and Management Fee takes a significant portion in Revenue Structure
• Focus on Interest Income instead of Fee and Service Income
+56.22% YoY+10.47% QoQ
13
4,019
4,471
7,470
6,795
25.21% 23.97% 23.48% 23.91% 23.53% 23.88% 24.07% 24.15%
5.98% 4.96%2.83% 3.06% 2.74% 2.93% 3.27% 3.31%
19.23% 19.01%20.65% 20.85% 20.79% 20.95% 20.80% 20.84%
0%
5%
10%
15%
20%
25%
30%
2014 2015 2016 2017 1Q17 2Q17 3Q17 4Q17
Interest Income Ratio Interest Expense Ratio Interest Spread
Net Profit
Million Baht
Net Profit Margin and Return on EquityInterest Income Ratio, Interest Expense Ratioand Interest Spread
Operating Results-Profitable Growth
29.32%32.24% 32.74%
33.47%32.34%
29.94%33.37%34.45% 34.30%
32.37% 33.05%34.16%
15.45% 15.34%
23.72%
31.99%
19.34%20.46%
26.69%
29.94% 30.82% 30.84%32.88%
34.59%
0%
10%
20%
30%
40%
2014 2015 2016 2017 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17Net Profit Margin Return on Equity
Million Baht
Operating Expenses
0
1,000
2,000
3,000
2014 2015 2016 2017
544825
280
536300
571401
650483
743
Q1 Q2 Q3 Q4
+53.83% YoY+14.30% QoQ
* Calculated by averaging the four quarters.
Cost to income = (S&A + Loss on disposal of asset foreclosed) / (Total revenue – FC)
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1,464
8961,275
2,000
2,994
392 459 541 608 628 710 805 869
56.35%54.68%
48.42%44.14% 49.05%
49.28%
48.58%
46.77%43.57%
43.96%
45.25%
44.28%
0%
20%
40%
60%
0
1,000
2,000
3,000
4,000
2014 2015 2016 2017 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Operational Expense % Cost to Income
**
2,501
*
0
10,000
20,000
30,000
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
15.73% 15.70% 46.95% 26.60% 36.09% 50.55%
64.64%61.34%
78.37% 78.40% 7.92%
13.65%13.54%
13.96%
12.48% 13.85%
5.90% 5.90%45.13%
59.75%50.37%
35.49%
22.88%24.81%
Long-term Loans Current of Long-term Loans Short-term Loans
Bank Loan Total Liabilities
Times
Debt to Equity RatioShareholders’ Equity
Million Baht
Financial Position – Low DE , Potential to Grow
0
5,000
10,000
15,000
20,000
25,000
30,000
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
4,079 3,671
7,431
17,73319,585
22,44725,062
28,009Million Baht Million Baht
-
5,000
10,000
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
1,937
5,1065,652
6,6927,228
7,588 8,2388,943
2.11
0.72
1.31
2.65 2.712.96 3.04 3.13
0.00
1.00
2.00
3.00
4.00
2013 2014 2015 2016 1Q17 2Q17 3Q17 4Q17
3,919 3,489
15
17,21718,838
7,135
21,85624,444
27,091
No. MTLS Year 17 Year 16 % 4Q17 4Q16 %
1. Net loan receivables 35,622.57 23,541.24 51.32 35,622.57 23,541.24 51.32
2. Allowance for doubtful account 1,170.98 645.64 81.37 1,170.98 645.64 81.37
3. NPL 441.20 250.88 75.86 441.20 250.88 75.86
4. Allowance/NPL (2/3) 265.41% 257.35% 265.41% 257.35%
5. NPL/ Net AR (3/1) 1.24% 1.07% 1.24% 1.07%
6. Write off 15.42 21.66 (28.81) 6.87 5.14 33.66
7. NPL+Write off (3+6) 456.62 272.54 67.54 448.07 256.02 75.01
8. NPL+Write off / Net AR (7/1) 1.28% 1.16% 1.26% 1.09%
9. Total asset 36,953.01 24,425.58 51.29 36,953.01 24,425.58 51.29
10. Total liabilities 28,009.69 17,733.29 57.95 28,009.69 17,733.29 57.95
11. Total equity 8,943.32 6,692.28 33.64 8,943.32 6,692.28 33.64
12. D/E ratio (10/11) 3.13 2.65 3.13 2.65
Summary of Significant Figure Year 16 & 4Q16 (Position)
Fundamental
16
Growth
No. MTLS Year 17 Year 16 % 4Q17 4Q16 %20. Doubtful account 665.69 310.07 114.69 161.87 86.60 86.92
21. Doubtful account & write off (6+20) 681.11 331.73 105.32 168.74 91.74 83.93
22. Total employees 5,880 4,185 40.50 5,880 4,185 40.5023. Total branches 2,424 1,664 45.67 2,424 1,664 45.6724. New loan per employee (annualized) (15/22)*4 9.87 9.01 9.52 11.45 11.01 3.9625. New loan per branch (annualized) (15/23)*4 23.94 22.67 5.63 27.78 27.70 0.27
26. Net loan receivables per employee (1/22) 6.06 5.63 7.70 6.06 5.63 7.70
27. Net loan receivables per branch (1/23) 14.70 14.15 3.88 14.70 14.15 3.88
Efficiency
Summary of Significant Figure Year 16 & 4Q16 (Position) continued
No. MTLS Year 17 Year 16 % 4Q17 4Q16 %
13. Net loan receivables 35,622.57 23,541.24 51.32 35,622.57 23,541.24 51.32
14. Total revenue 7,470.07 4,472.00 67.04 2,174.46 1,401.66 55.13
15. Accumulated new loan amount 58,038.73 37,716.72 53.88 16,833.64 11,524.44 46.07
16. Interest and fee income 6,794.92 4,019.34 69.06 1,984.33 1,270.31 56.21
17. Fee and service income 642.03 436.07 47.23 179.95 126.89 41.82
18. Net profit 2,500.60 1,464.14 70.79 742.97 482.91 53.85
19. % Net profit / Total revenue (18/14) 33.47 32.74 34.16 34.45
17
Missions
1. To grow 40% in all dimensions– New Loan to grow 40%– Account Receivables to grow 40%– Net Profit expected to follow
2. To hit a total of 2,800 branches 3. To maintain NPL not exceed 1.5%
18
Business Plan for 2018
4 Highest
• Highest New Loan• Highest Account
Receivables• Highest Number of
Branches• Highest Net Profit
Business Plan for 2018 : MTLS Highlights in Microfinance
19
2 Lowest
• Lowest NPL = 1.20%• Lowest affected by
IFRS9Coverage Ratio now > 260%
Thai Government infrastructure investment
20
Thailand’s Eastern Economic Corridor (EEC)
21
Social Responsibility
Corporate:Education: Construction of 2 rural schools in 4Q17 with a total cost of 2.25 MB. The project is called “My new home”, so far 9 schools have been built since 2011.
Family:Private donation of 40 MB in 2Q15 to a hospital in Sukhothai to build an Emergency Department and a Patient Building.
Private donation of 65 MB in 3Q16 to Chiang Mai University to construction a new Economic Department building.
Private donation of 50 MB in 1Q17 to a hospital in Sukhothai to purchase medical equipments.
22CG SCORE
Religion : A host for 4 temple constructions in 4Q17 with a total collected donation of 4.10 MB. The temple were in Khonkaen , Buriram , Kanchanaburi and Uttaradit. This annual event began in 1996.
CAC Ratification
