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Q3/2020 Opportunity Day
2 Dec 20
2
Key highlights Q3/2020
• Prime Minister’s Insurance Awards 2020
• Campaign support new target customer“Salary Man”
• Upcoming Insurance End-to-End Platform
Strong Operating PerformanceLaunched new innovative product and
services Q3-Q4 Built ecosystem strategic partnership
• Q3/20 Revenue 774 MB Growth YoY 12.2 %
• Q3/20 Net Profit 170 MB Growth YoY 33 %
• 9M20 Revenue 2,344 MB Growth YoY 15 %
• 9M20 Net Profit 512 MB Growth YOY 44 %
Vending machine
Upcoming partner
eMarketplace
Logistic service
Upcoming partner
Thai Situation Q3 & Insurance MarketOverview
New Normal changed monetary activities
Source: Kantar2020, BOT, Wunderman Thompson
50%Purchasing activity
50% of consumers demand based their decision-to-purchase on Value for money
70%Spending activity
During pandemic period, Online transaction, including, Online Payment and eTransfer, growth over 70% comparing to 6m 2019, especially in countryside area
12%Investing activity
33% of Thai consumers choose their investment in saving monthly income, 20% choose to invest by doing their own business, and 12% choose to invest in insurance products
4
New normal effects on insurance market
Claim process
The recovery from pandemic period shifting back the claims. Technology plays the crucial role for safer claims process.
Remote connection
New normal causes remote interrelation between agent and partners becoming essential factor for sales booth (Knowledge management, Performance tracking, etc.)
Source: Firstdata
Technology threats
Cyber security protocol is critical issues. Data collector requires rigorous control over data privacy and technological risk associated.
5
Vehicle insurance statistics 2020
Private Car (<7 seats)
10,296,661(25.01%)
Pick-up truck
6,841,933(16.62%)
Public Motorcycle
173,622(0.42%)
Taxi
81,473(0.20%)
Other(Truck, Bus, Other cars)2,480,528
(6.02%)
Nearly 20 million market potential (4-wheel vehicle)
Completed vehicle tax payment(73.64%)Absent tax payment
(26.36%)
Private Motorcycle
21,303,197(51.71%)
6
Source: OIC, BORA *2019 Statistic **Q3/2020 Statistic
25,112,811
25,605,324
26,087,649
26,587,033
27,110 ,519
CAGR 1.93%
Houses Statistic**
Fire Insurance Portion*
Fire insurance policies:
3.1 MillionHouses (as of Sep 2020) :
27.1 Million
Housing insurance statistic 2020
20202019201820172016
Source: OIC, BORA *2019 Statistic **Q3/2020 Statistic
Health insurance statistic 2020
Health Insurance Premium 52,465 MB
Accounted for 12.9% of total premium from life and non-life
Growth 16.6% year-over-year
322 policies/100
people*
267 policies/100
people*
170 policies/100
people*
40 policies/100
people**
Thailand Japan Singapore South Korea
Population: 66.5 million
Life insurance policies: 26.7 million
Source: OIC, BORA, , TGIA, Swissre *2018 Statistics **2020 Statistics
Life insurance statistic 2020
Non-Life Insurance Broker continually shares major market penetration channel
Life InsuranceBroker grows perpetually from 2% to 6%.
58%
57%
55%
55%
58%
58%
59%
59%
14%
12%
14%
13%
13%
14%
13%
12%
13%
14%
15%
16%
14%
13%
14%
14%
5%
4%
4%
4%
3%
3%
3%
4%
10%
13%
12%
11%
12%
11%
11%
11%
2013
2014
2015
2016
2017
2018
2019
Jul-20
Broker Bank Agent
Telemarketing
Other (Organization/Internet)
55%
52%
52%
51%
50%
49%
52%
49%
39%
42%
42%
43%
44%
44%
40%
40%
2%
2%
2%
3%
3%
3%
5%
6%
2%
2%
2%
1%
1%
2%
2%
2%
2013
2014
2015
2016
2017
2018
2019
Jun- 20
Agent Bank Broker
Telemarketing
Other(Internet/Booth)
TQM will expansion capabilities as leading broker in Life and Non-
Life insurance, capturing all market opportunities
Insurance market distribution channel 2020
11 11
TQM’s Strategic Directions
13
Target:50,000 MB on
Insurance PremiumY2026
TQM Strategy Y2020 - 2026
Y2020
01 l Strengthen existing channels
02 l Grow sales through
cross-selling
03 l Enhance insurance ecosystem
through strategic partnership
04 l Grow inorganic through M&A
05 l Expand Regional
Digital StrategyNumber 1 Digital Insurance Broker in Regional
13
4 Strategic growth engines
TQM Strategy Y2020 - 2026Target:
50,000 MB on Insurance Premium
Y2026Y2020
Strengthen core business
Expand new insurance area
M&A Growth building
Insurtech foundation
14
Strengthen core business
Expand new insurance area
M&A Growth building
Insurtech foundation
Key strategic focus: Strengthen core business
4 Strategic growth engines
15
Strengthen strategic segment
Retain existing customer Expand customer bases
• Maintain renewal customers
• Expand TQM ecosystem with partner
• Integrate customer data through TQM’s sale channels
• Up-selling and cross-selling
The best omnichannel experience for every customer16
Strengthen existing channels
TELE-SALES / TELE-CHAT
MARKETING BRANCH
CORPORATE CHANNEL
DIGITAL PLATFORMS/ E-COMMERCE
▪ 67 year’s experience, Over 95 branches countrywide
▪ Direct Sale Services from over 500 specialist agents countrywide
▪ TQM have taken care of over 20,000 corporate customers
▪ Online Social Commerce▪ Chatbot/ Chat Center▪ Insurtech Application
PARTNERSHIP
The best omnichannel
experience for every
customer
17
Sales growth through cross-selling and up-selling
TELE-SALES / TELE-CHAT MARKETING BRANCH CORPORATE CHANNEL DIGITAL PLATFORMS PARTNERSHIP
Motor Health Home Special
Products Cross-selling & Up-selling
Multi channels Cross-selling & Up-selling
18
Strengthen core business
Expand new insurance area
M&A Growth building
Insurtech foundation
Key strategic focus: Expand new insurance area
4 Strategic growth engines
COVID unlock the growth in health and home insurance
CoronavirusInsurance
HomeInsurance
TQM TechnologyUnlock Product
PreferencesTQM Product Development
HealthInsurance
Product Mapping
20
Strengthen core business
Expand new insurance area
M&A Growth building
Insurtech foundation
Key strategic focus: M&A Growth building
4 Strategic growth engines
21
Accomplished and upcoming M&A Deal
01 | 02 |
Dealer expansion
Develop agent support platform
Build agent capabilities
Regional market expansion
System integration preparation
03 | Upcoming M&A deals
TQM sale experts for B2B and B2C
22
TQM is in best position for M&A
Guaranteed by previous M&A deals
Efficiently utilize acquired capabilities
Built high synergy for partners from TQM ecosystem
1+1=11
23
Strengthen core business
Expand new insurance area
M&A Growth building
Insurtech foundation
Key strategic focus: Insurtech foundation
4 Strategic growth engines
24
1st tech savvy insurance company in Thailand
Growth
Time
Industry advantage
Economy of scale
Operation excellences
Digitization
Omnichannel
Inorganic growth
Insuretech
Insurtech roadmap
Short-term Medium-term Long-term
Platform
Bigdata
Photo credit: galtronics, ixbt, g-able
Telematics & Telemetry
IoT Technology
Machine learning & Deep learning
DLT-Blockchains
Risk pooling principle
Insurtech finalize product
Data-driven development Innovative business model26
Opportunities with partners across sectors
x Insurtech partner
B2B2C Platform Motor Platform
Partnerx xx
Life/ Health
Home PA/ Health
Partner
Claim service
Partner
Micro lending: Installment
Partner
Partnerx
x x xx
27
2 Forthcoming partnership opportunity
Photo credit: freepix, Unsplash
New Market Place and Hospital Strategic PartnersUpcoming in 4th Quarter
Insurance Companies Customer Supporting Businesses Selling Channel Affiliates
01 | Marketplace Platform 02 | Hospital Partners
28
Key Financial Highlights Q3/2020
• Revenue 773.9 MB + 84.3 MB (12.2% YoY)
• Net Profit 169.7 MB +42.4 MB (33.3% YoY)
6%
94%
58%
40%
2%
Operating Results: Q3/2020
30
Brokerage
Service
RevenueBrokerage Income
Note(1) Other revenues include interest income and others(2) The maximum regulated life insurance commission rate is 40% (3) The maximum regulated non-life insurance commission rate is 18%
Non-life insurance³
Life insurance²
THB 451
Million
THB774
Million
Other¹
2019-Q3 2020-Q2 2020-Q3
415425 451
257
304309
17
1914
Revenue by type +84.3 MB +12.2% YoY
+26.5 MB +3.6% QoQ
Other Revenue
Service
Brokerage
THB : Million
Operating Results: Q3/2020
• Q2/20 VS Q3/20 (QoQ) and Q3/19 VS Q3/20 (YoY): Total income increased by 26.5 MB or 3.6% QoQ
• and increased by THB 84.3 MB or 12.2% YoY from the premium growth of life & non-life insurances. 31
Operating Results: Q3/2020
2018
2019
QuarterlyTotal Revenue
(THB million)
Quarterly Net Profit
2018
2020
2019
+12.2%YoY
2020
688
Excl. Covid-19
Excl. Covid-19
+68.3%YoY+33.0%YoY +33.3%YoY
139
614 604 600
707
672 685 690
738
823
747774+9.1%YoY
+22.5% YoY
8895 93
128
107122 127
151
179163 170
32
318
367
379
355
362
380
Operating Results: Q3/2020
Service Cost Gross Profit
• Q2/20 VS Q3/20 (QoQ) and Q3/19 VS Q3/20 (YoY): Service cost increased by 18.6 MB or 5.1% QoQ and increased by 25.6 MB or 7.2% YoY in accordance with the growth of sales.
• Q2/20 VS Q3/20 (QoQ) and Q3/19 VS Q3/20 (YoY): Gross profit increased by 12.3 MB or 3.4% QoQ and increased by 61.7 MB or 19.4% YoY promoted by the expansion in sales channels and Payment channels i.e. Online platforms, Telesales and Boonterm, etc.
2019-Q32020-Q2
2020-Q3
2019-Q32020-Q2
+25.6MB +7.2 %YoY
+18.6MB +5.1% QoQ
2020-Q3
+61.7MB +19.4% YoY
+12.3MB +3.4% QoQ
33
178
184
185
Operating Results: Q3/2020
127
163
170
Administrative Expenses Net Profit
2019-Q32020-Q22020-Q3
2019-Q32020-Q2
+6.8MB +3.8 %YoY
2020-Q3
+42.4MB +33.3% YoY
+6.9MB +4.2% QoQ
• Q2/20 VS Q3/20 (QoQ) and Q3/19 VS Q3/20 (YoY): Admin expenses increased by 1.5 MB or 0.8% QoQ and increased by 6.8 MB or 3.8% YoY due to new International Financial Reporting Standards No.9 and 16 which were implied in 2020.
• Q2/20 VS Q3/20 (QoQ) and Q3/19 VS Q3/20 (YoY): Net profit increased by 6.9 MB or 4.2% QoQ and increased by 42.4 MB or 33.3% YoY as result of the increase of sales from every channel and the best cost control.
+1.5MB +0.8% QoQ
34
Operating Results: Q3/2020
Key Financial Ratios
Net Profit Margin
EBIDA Margin
ROA
2019-Q3 2020-Q2 2020-Q3
2019-Q3 2020-Q2 2020-Q3 2019-Q3 2020-Q2 2020-Q3
2019-Q3 2020-Q2 2020-Q3
ROE
D/E
18.5%
21.8% 21.9%
2020-Q32020-Q22019-Q3
24.2%
31.9% 31.6%
0.72
1.08 1.05
17.0%
14.3%
15.9%
0.42
0.540.57
2019-Q3 2020-Q32020-Q2
EPS
36.5%
26.9% 30.0%
35
Market Capital (MB)
Market Price (Baht)
Dividend Payment (Baht/Share)
TQM’s Growth Historical
6,90054
23
11,400
15,79516,200
19,650
38
65.553.25
0.30 0.65 1.001.10
43,350
144.5
125
37,500
37
Q&A Session
Contact
Sumrit Rongkawilit
+662 119 8888 ext. 5234
Rio Khundeeklai
+662 119 8888 ext. 5009
IR Team Email
38