www.tbsp.co.th

29 November, 2018 The Stock Exchange of Thailand

1

3Q18 Opportunity Day Thai British Security Printing PCL.

Moving towards Technology-based Company

2

AGENDA AGENDA

About TBSP

2018 Business Update

Q3/2018 & 9M/2018 Operating Results

Outlook 2019

01

02

03

04

www.tbsp.co.th

www.tbsp.co.th

About TBSP

TBSP is the well-known leading manufacturer in security printing business. With our 40th years

expertise in security techniques, we have a keen focus to develop a variety of innovative solutions to bring the greatest total security solutions into your security environment. We have been recognized and trusted by both domestic and international standard.

First Security Printing

Company 40th

years experience

Trusted in

International Standard With 40th years experience in security

printing industry, TBSP has been developed into highly professional company, operating on the basis of quality, accuracy, sincerity and professional service, with attention to human resources and technical development.

TBSP was established in 1979 as

joint-venture between the British Printing and Communication Corporation (BPCC) and four Thai Banks, aim to prevent losses causes by document fraud and counterfeit as effective as possible.

TBSP is leading in security printing, offering customized services to meet all customers’ requirement, Quality and Production technique together with services are widely accepted in the world market.

3

4

40 Years of History and Innovation

BPCC : The British Printing and Communication Corporation SCG Paper : Currently changed the name to SCG Packaging Public Company Limited

1978

First Security Printing

Establish by JV of four Thai banks and

BPCC of British

1989

Enter to Thai Passport Started the

production of Thai passport

1996

1995

Enter to Stamp& Postcard

Thailand’s first printer awarded to

print Thai stamp locally

2002

2007

TBDP JV with Data Post

(Singapore) to establish Thai British Dpost Co., Ltd for

data printing business

2013

Infozafe

Entered Infozafe business for document

shredding and storage

2016

SCG Paper -Major

Shareholders Change of major

shareholder to

SCG Paper*

1992

Enter to Plastic Card

Started the production of plastic card; ATM, Credit, Smart card

2015

TBSP Overseas Establish Thai British

Security Printing

Overseas for

overseas business

SCG Paper sold

share to Ms.

Sutida M.

Myanmar Operation

JV with Myanmar Partner to establish ‘Myanmar Deco-

TBSP Special Products Co., Ltd. ‘ for security printing plant in Myanmar

2017

T.K.S – Major Shareholder

2018

changed from

Suthida

Mongkolsuthee to

T.K.S. Technologies

Public Company

Limited

Listed TBSP Start trading

in the Stock Exchange of

Thailand

www.tbsp.co.th

• Brand Protection Label

• Digital Solution

Develop New Business

5 www.tbsp.co.th

Shareholding Structure

Mongkolsuthree Holding

35.68%

77.74%

Thai British Security Printing Plc.

Thai British Dpost Co., Ltd Thai British Overseas Co., Ltd

Myanmar Deco-TBSP Special Products Co., Ltd. (Myanmar)

100% 100%

40% *January 2018 : TBSP increased its

shareholding ratio in TBDP from the

51% to 100% from DataPost Pte. Ltd

(Singapore)

Since 2017

ISO 27001:2013 The first printing

company in Thailand

certified total Organization for

Information security management

Visa &

Master Card

JCB & China

Union pay

TIS 18001:2011

OHSAS

18001:2007

ISO 9001:2015 Quality Certification

ISO 14001:2015

The first printing company in Thailand

certified

environmental control

Card Quality

Management

(CQM)

Healthy & Safety

standard

GMP

Certification

UN Global

Compact The first printing

company to join

Since 2002

Award and certificate

recognized our company for the acceptance of

international standard

Trusted with International

Standard

Our award and recognition

6 www.tbsp.co.th

7 www.tbsp.co.th

Location

Head Office Poochao Samingprai Factory 41/1 Moo 10, Soi WatSuansom, Poochao Samingprai Road, Samrongtai, Phrapradaeng, Samutprakarn

1st Branch Bangpoo Factory Thai British Dpost Co.,Ltd 837 Moo 4, Soi 12 Pattana1 Road, Praksa, Muang, Samutprakarn

2nd Branch Infozafe Plant Sales Office 406/1 Moo 9 Thepharak, Muang, Samutprakarn

8 www.tbsp.co.th

Company Vision

TBSP’s previous vision

“Being a world class Security Printing & Solutions Provider in terms of Qualities, Services and Productivities”

“To become a smart solution

provider with technology integration”

TBSP’s vision (2018 onwards)

9

Our Products & Services

Security Document

Plastic Card

Document Storage & Shredding

Data Printing & Mailing

Warehouse

Management

Current Business

www.tbsp.co.th

10

Our Products & Services Current Business

Cheque Passbook Passbook Stamp/Postcard Passbook Certificate

Business form Passbook Gift Voucher Examination

Paper

Security Document & Document Printing

www.tbsp.co.th

11

Our Products & Services Current Business

ATM/Debit Card Passbook Credit Card

Employee/ Student ID Card

Passbook Member Card/

Gift Card Other Smart Card

Transportation

Card

Plastic Card

Our card

manufacturing

process is accepted

by VISA, MasterCard,

JCB,CUP, and CQM

standard

o Normal Card

o Magnetic Card o Contact Card o Contactless Care o Hybrid Card o Dual Interface Card o Innovation Card

www.tbsp.co.th

12

Our Products & Services Current Business

Passbook Data Printing&

Mailing Document &

Media Storage

Document & Media Destruction

Warehouse Management

Other Services

www.tbsp.co.th

13

Our Products & Services New Business ….Since 2017

Current Business

Digital Solution

New Business

Brand Protection

Solution

Smart Factory & IoT

www.tbsp.co.th

DOMESTIC BANKS MANUFACTURERS RETAILS & RESTUARANTS

TRANSPORTATION INSURANCES OTHERS

OTHERS

OVERSEAS BANKS

MANUFACTURERS

14 www.tbsp.co.th

Key Customers

15

AGENDA AGENDA

About TBSP

2018 Business Update

Q3/2018 & 9M/2018 Operating Results

Outlook 2019

01

02

03

04

www.tbsp.co.th

16 www.tbsp.co.th

Market Trend Overview

Y2014 Y2015 Y2016 Y2017 YTD-2018

+289 Branches

+57 Branches

-44 Branches

-214 Branches

-31 Branches

From: 6,696 6,985

From: 6,985 7,042

From: 7,042 6,698

From: 6,698 6,784

From: 6,780 6,753

Bank Branch

Source: BOT Remark: YTD as of Oct-2018

4% 1% 1% 3% 1%

Internet & Mobile Banking Accounts

Branch

Y2014 Y2015 Y2016 Y2017 YTD-2018

N/A 78% 58% 39% 45%

New movement : Wearable Payment

Digital Disruption transforms the current customers; banking

17

9MY2018 Our Product Portfolio

New Business

32%

13%

Document Printing

Others (Services, Trading,

Export)

Plastic Card

32%

21%

Brand Protection Solution

2%

Digital Solution

o Security document o Cheque o Business form o Commercial printing

o Bank card o Transportation Card o Member Card o Other Card

o Services o Trading

o Document Storage & Shredding

o Data printing& mailing o Export (Traditional products)

New Business

Document Printing & Plastic Card still a major portion; while

New business gradually expanded

www.tbsp.co.th

18 www.tbsp.co.th

Global Presence

Americas

Europe

ASEAN

74%

Asia

2%

9%

14%

South Asia

1%

Coverage more than 15 countries through both current and new businesses.

Growth

+37% YOY Export portion = 14%

19 www.tbsp.co.th

Current Business

• Released of projects on

pipeline from banking sectors

related to recover in

economic environment

• Diversify segment toward

transportation sector

• Challenge in overseas market

New Business

• Strong demand on-hand from

potential customers

• Award on implementation of

brand protection solution for

cosmetic segments

• Create new demand through our

expertise on printing machine

field

Y2017 E2018

11%

Quarterly Review

15%

3Q18 An increased of new business

expansion from a continuous

demand with current customers

Annual

Expansion in New Business Increase in new business proportion; however still behind expectation due to

lead time of project development

7% 12% 14%

20% 21%

3Q17 4Q17 1Q18 2Q18 3Q18

Current Business New Business

New Business Portion

20

Innovation Movement We driving in innovation develop creating innovation culture

for both internal and external perception

www.tbsp.co.th

21 www.tbsp.co.th

Land Acquisition

Location Bangpakong, Chachoengsao

Land Area = 43 Rai

New land acquisition are on-progress of preparation

2018 2019 2020 2021 2022 2023 2024

Preparation

Construction

2025

Start to Operation

22

Y2018 Awards & Recognitions

www.tbsp.co.th

o 1st award on Industrial Supply Chain Logistic 2018

o Thailand Sustainability Investment Award 2018

o Best Innovation Organization Award 2018

Not only recognized in good practice but we focus on driving toward new

Innovation development

23

AGENDA AGENDA

About TBSP

2018 Business Update

Q3/2018 & 9M/2018

Operating Results

Outlook 2019

01

02

03

04

www.tbsp.co.th

24

Key Takeaways for 3Q18

Top line challenged

o Revenue declined by 39% YOY driven by digital disruption and the postponement of potential projects both in private and public sectors

o New business development and implement take longer process than expected

Increasing of expenses items o Non-operating expenses from internal restructuring;

o Investment on land purchasing to build up new infrastructure in align with the future direction

o R&D development expenses supporting new business projects;

Smart factory, Brand Protection, Card development

Overseas operation challenge

o Slower than expectation in demand of security products in banking sectors due to the economic slowdown situation

o Market still need for security demand creation and education

www.tbsp.co.th

25 www.tbsp.co.th

3Q18: Revenue declined from external

constraints limit new demand

Revenue Unit: Million Baht

1,023 1,026 1,106

1,242 1,333

437

308 252 278 267

1,025

798

Y2013 Y2014 Y2015 Y2016 Y2017 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

-39% YOY

-4% QOQ

-22% YOY

• Slow move of daily usage impact from technology disruption

• Postponement of potential big projects both in public and private sectors

• New business expansion was on pipeline of development from the requirements

Remark 2017: KTB Welfare card project

26 www.tbsp.co.th

3Q18: Gross Profit declined performance from

aggressive competition in the market

Gross Profit Unit: Million Baht, %

234 242 223

261

320

127

51 44 51 43

261

138 23% 24%

20% 21% 21%

25%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

50

100

150

200

250

300

350

Y2013 Y2014 Y2015 Y2016 Y2017 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

%GP Margin

-66% YOY

-16% QOQ

-47% YOY

• From digital disruption squeezed market size demand lead to face with a price competition

• Plastic cards, main product proportion which facing with aggressive price competition while market

size remain the same especially in banking sector

• Other expenses affect margin; internal restructuring, R&D for new business development

27 www.tbsp.co.th

3Q18: Net Profit declined from weak operation

performance and external constraints

Net Profit Unit: Million Baht, %

77

94

59

85

100

42

20

-2

10

-5

80

4

8% 9%

5% 7% 8%

8%

1%

Y2013 Y2014* Y2015 Y2016 Y2017 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18

%NP Margin

-112% YOY

-150% QOQ

-95% YOY

Remark: Y2014* : High profit from selling the CTI bldg

• Weak performance impact from overseas operation (Myanmar)

• Many potential projects on-hold lead to decelerate in revenue performance to achieve over break

even point

• Increased of financial cost for preparing infrastructure expansion of the future direction

28 www.tbsp.co.th

3Q18: D/E ratio and Financial cost

Balance Sheet Unit: Million Baht

Asset

s,

1,161

40

Total

Equit

y, 581

Other

Liabili

ties,

293

Total

Borro

wing,

327

Total Assets Total Liabilities

and Shareholder

Equity

0.21

0.36

0.26

0.36

0.54 0.54

1.07

0% 0.2% 0.2% 0.2%

0.4% 1.0%

2.9%

0%

1%

2%

3%

4%

5%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Y2013 Y2014 Y2015 Y2016 Y2017 9M17 9M18

%Financial cost

Cash Equivalent

D/E Ratio & Financial cost Unit: X, %

• Increased of D/E ratio and Financial cost portion from land expansion investment

(Infrastructure preparation in align with the Company future direction plan)

29

AGENDA AGENDA

About TBSP

2018 Business Update

Q3/2018 & 9M/2018 Operating Results

Outlook 2019

01

02

03

04

30 www.tbsp.co.th

A year of business transformation started

strengthen focus

“Speed up develop new business along with digital integration and

innovation together with people development”

Three

Expansion

Focus

Digital Solutions

Brand Protection Solutions

Smart Factory & IOT

5 Business

units

Printing Plastic Cards

31

Through a slightly drop during 2018 from uncertainty of the market lead to slow down in products demand; however in 2019 shows positive figures with factors driven as follows;

Turnaround 2019 with target 10-15% sales growth

Especially on plastic card; demand in both

banking, transportation and government sectors

Backlog from demand recovery

Potential project that are developing on pipeline from 2018 will also help boost up sales revenue

Project Postponement from 2018

More focus and expansion on new business together with alliances lead to speed up the business.

Continuous expansion on new business

2019 Outlook

Strong backlog from project postponement in 2018 and new potential in new

business expansion

www.tbsp.co.th

32

2019 Outlook

TBSP New businesses moving to serve market movement

Digital Solution Brand Protection Smart Factory

Solutions

www.tbsp.co.th

33

2019 Outlook New Business Expansion : Digital Solution

E-Tax / E-Invoice

Security Management

Solutions

Document Management

Solution

Transform your document into the digital files

Scanning service (Outsource, Insource)

Document Management System (DMS):

Retrieve document via

center network

(share & integrate)

E-Registration Security Management Solution with Biometrics

Authentication

Data pooling and sharing –

(Big data)

Real-time update Activity log and report

Fully integrate electronic

transactions

Increased confidence and safety

in accordance with international

standards Reduce operation cost / save time

E-Tax/E-Invoice

www.tbsp.co.th

34

2019 Outlook New Business Expansion : Brand Protection Solution

o Re-bottleneck production capacity

o Integration of digital solution to strengthen

brand protection management

Product Identification

Authentication System

Data Management

Track & Trace Solution

Cloud Mobile Blockchain

Key focus strategies

RFID

www.tbsp.co.th

35

2019 Outlook New Business Expansion : Smart Factory & IOT

Increase output by predicting machine failure

Manage machine remotely

Production line status and able to re-engineer product for better performance

Identify the right resources

Partnership Expertise/R&D Official Dealer

Key Driven

www.tbsp.co.th

36 www.tbsp.co.th

“To become a smart solution provider with technology integration” Serving Industrial Thailand 4.0 Direction

Technology

integration

Augmented Reality (AR)

AR will be worth a staggering $108 billion by 2021; targeting in commercial sectors

Source : IDC, Digi-Capital

• Smart cards

• Smart Label

Internet of Things (IOT)

with the use of IOT around 30 billion of connected devices by 2020. Source : Big Nerd Ranch

o Smart factory

Artificial Intelligence (AI)

The creation of intelligent machines that work and react like humans. By 2030, The global economy will get $15.7 trillion. Source : PwC, Accenture

o Smart Office Platform

o Data Analytic

Cybersecurity

Source : Forbes

o Document Management

o Security Management

The need to prevent data breaches from public clouds will drive 20% of organizations to develop data security governance programs.

Create a digital record across hundreds or thousands of computers, vastly reducing the risk of hacking.

Blockchain

o Track & Trace Solution

o Authentication Solution

Robot Automation

Robot automation will take 800

million jobs by 2030. Source : McKinsey Global Institute

o Service Robot

o AGV & Multi AGV for warehouse

management

Medium and Long-term business Outlook

Y2016 Y2017 E2018 F2023

1242 1333

37 www.tbsp.co.th

“To become a smart solution provider with technology integration”

Serving Industrial Thailand 4.0 Direction

Continuous growth

Unit: Million Baht

• The major revenue will be mainly driven by new S-Curve businesses

• New S-Curve businesses will be covered the slow

move of current S-Curve businesses within 5 years

Medium and Long-term business Outlook

Q&A

38 www.tbsp.co.th

39

Thank you

For more information

Thai British Security Public Company Limited

41/1 Moo 10, Soi Wat Suansom, Poochao Samingprai Road, Samrongtai,

Phrapradaeng, Samutprakarn

Tel : 02-754-2650

www.tbsp.co.th

www.tbsp.co.th