q3/2020 opportunity day · 2020. 12. 2. · 318 367 379 355 362 380 operating results: q3/2020...

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

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



M&A Growth building


Key strategic focus: Strengthen core business


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



M&A Growth building


Key strategic focus: Expand new insurance area


COVID unlock the growth in health and home insurance

CoronavirusInsurance

HomeInsurance

TQM TechnologyUnlock Product

PreferencesTQM Product Development

HealthInsurance

Product Mapping

20



M&A Growth building


Key strategic focus: M&A Growth building


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



M&A Growth building


Key strategic focus: Insurtech foundation


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


• 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


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


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


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


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

Q&A Session

Contact

Sumrit Rongkawilit

+662 119 8888 ext. 5234

Rio Khundeeklai

+662 119 8888 ext. 5009

[email protected]

IR Team Email

38

q3/2020 opportunity day · 2020. 12. 2. · 318 367 379 355 362 380 operating results: q3/2020...

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