AC Group – Opportunity Day FY16

27 March 2017

AIRA Capital Public Company Limited

Group Structure

2

AIRA Capital Public Company Limited (“AIRA Capital”) has incorporated as a holding company

with investments mainly in financial business.

Source: Aira

AIRA Capital Plc.Reg. Baht 1.79 Billion

(Listed 7 Jul 2014)

AIRA & AIFUL Plc.Reg. Baht 2.5 Billion

AIRA Securities Plc.Reg. Baht 1.2

Billion

AIRA Advisory Co., Ltd.Reg. Baht 50 Million

AIRA Factoring Plc.Reg. Baht 400 Million

(Listed 25 Aug 2004)

AIRA International Advisory (Singapore) Pte. Ltd.

Reg. SGD 500,000

AIRA Property Plc.Reg. Baht 500

Million

Aspiration One Co., Ltd.Reg. Baht 1.0 Billion

AIRA Leasing Plc.Reg. Baht 500

Million

Travelex (Thailand) Ltd.Reg. Baht 110 Million

AIRA Venture Capital Ltd.

Reg. Baht 20 Million

AIRA Asset Management

Reg. Baht 100 Million

30% 99.9%

99.9%

71.5% 80%

90%

60%

60%

99.9%

38%

99.9%

Vision

3

AC Group – Strategic Plan

4

13,917

Top 5 in non-bank financial business

Financial75%

Non-finance 25%

Diversified Portfolio

3 Years Price Performance

5

AIRA stock outperformed both financial sector and MAI index

Source: SET

66.2%

19.1%

14.1%

Company Highlights since 2016

6

Apr 16 Acquired a leasing company at majorities stake (80%)

AIRA Leasing (AIL) Record FY16 profit at THB4.5m

Sep 16 Set up a joint venture company with Travelex Limited

(London) named Travelex (Thailand) limited to operate

currency exchange services business

Already obtained a license from BOT on Dec 2016

with established the 1st branch at Wall Street Tower,

Thaniya street

CSR by cooperated with Queen Sirikit Foundation for selling

local products at our branches

Company Highlights since 2016

7

Company Highlights since 2016 (Cont.)

8

Oct 16 Spin-off AIRA Property shares to valued strategic partners

: Kenedix Asia (20%) and Eugene Investment & Securities

(20%) with premium 18% ROI

Dec 16 Established AIRA Venture Capital to invest in

10 high growth industries For future Tax privilege 9 years

Feb 17 Sumitomo Mitsui Trust Bank (SMTB) support a bridging loan of

THB1.2bn to AIRA and AIFUL (A&A)FY17 projected personal loan portfolio grows 4.4x from 2016

Increased capital to ฿4.0 Billion in AIRA and AIFUL (A&A) on

May 17

Mar 17 Established AIRA Asset Management to operate the business

of Wealth Management and Fund Management

Target customers Institutions and high net-worth

Company Highlights since 2016

9

AC Group – FY16 Net Profit / Loss

10

FY16 Result

88.4

57.2

50.8

3.4

-100

-50

0

50

100

150

200

250

AC

AS

AF

AIL

฿200m Profit before

minorities investment

and JV

Source: AIRANotes: AC = Aira Capital, AS = Aira Securities, AF = Aira Factoring, AIL = Aira Leasing

10

AC Group – Revenue Analysis

11

0.8%

7.2%

2.7%

0.8%

2.8% 3.2%

0%

2%

4%

6%

8%

2011 2012 2013 2014 2015 2016F

Thailand GDP Growth

384.7 484.2 789.4 863.5 733.7 816.1

11.2%

-50%

-30%

-10%

10%

30%

50%

70%

90%

0100200300400500600700800900

1000

2011 2012 2013 2014 2015 2016

Source: BOT

Source: AIRA

Revenue (THB million)

FY16 revenue grew 3.5x of GDP

AC Group – Operating Profit

12

95.4 162.5 306.8 289.3 185.9 198.9

7.0%

-200%

-150%

-100%

-50%

0%

50%

100%

150%

0

50

100

150

200

250

300

350

2011 2012 2013 2014 2015 2016

Operating Profit (THB million)

Source: AIRA

AC Group – Investment

13

Investment in subsidiaries (THB million)

963 963 1,068 1,340 1,926 2,214

0.0% 0.0%

10.9%

25.4%

43.8%

14.9%

-50%

0%

50%

0

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014 2015 2016

Investment in Subsidiary Growth

Source: AIRA

AC Group – FY17 Planning and Strategies

14

• Focus more on high margin businesses

e.g. FL & HP, Personal finance, Asset & wealth management

• Developing a relationship with strategic partners

• Technology transfer and cost saving SG&A to sale < 10%

• Investment criteria Minimum IRR = 15%

• Focus on monitoring and controlling our subsidiaries companies to complied with their budgeting plan

Subsidiaries Performance

15

AIRA Securities (AS) - Performance

16

Revenue and Net Profit (THB million)

Source: AIRA

Key Highlight

• FY16 revenue increased 7.2% YoY

• Net profit surged 15.6x in 2016

• Avg. commission rate = 0.136% vs. Market at only 0.11%• Market share improved to 1.21% (FY15: 1.17%)

226.6303.9

566.0

651.5

524.7562.5

10.538.9

97.9 113.8

-3.9

57.2

-100

0

100

200

300

400

500

600

700

2011 2012 2013 2014 2015 2016

Revenue Net Profit

AIRA Securities (AS) – Strategies

17

Margin Loan (THB million)

1,3001,400

1,500

1,700

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2016 2017F 2018F 2019F

Key Strategies

• Expanding margin loan portfolio

• Increase high-quality staff team by 10-15%

• Focus on high net worth account

• Maintaining commission rate at 0.136% compared to avg. market rate at 0.11%

Source: AIRA

AIRA Factoring (AF) – Performance

18

Revenue and Net Profit (THB million)

133.7

174.8

214.4185.9 191.2 189.6

43.5 44.064.7

24.90.1

50.8

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016

Revenue Net Profit

Key Highlight

• FY16 revenue flat YoY on sluggish recovery

• Net profit turn positive from lower finance cost and provision • Factoring volume sustained despite a slowdown in export

Source: AIRA

AIRA Factoring (AF) – Strategies

19

Revenue by segmentFactoring volume

Source: AIRA Source: AIRA

Key Strategies

• Focus high-growth SMEs and high quality customers

• Diversified to new sectors (Electronics, Telecom, Health & Beauty)

• Implementation E-Factoring platform

• Active customer acquisition via product program • Conservative provision rule

Modern Trade45%

Auto35%

Others20.0%

13

,05

2

16

,24

6

20,3

82

17

,90

4

19

,40

6

19,3

56

0

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 2015 2016

THBm

AIRA Leasing (AIL) – Performance

20

Revenue and Net Profit (THB million)

Key Highlight

• FY16 revenue grew 8.5% YoY vs. Industry -7.5%

• Net profit jumped 3.5x to THB4.5m

• Started financial lease and hire purchase services in Dec 16• Streamlined an operating lease business

Source: AIRA

67.058.8 62.6 64.1 63.2

68.6

0.54

-9.89

4.14 5 1.29 4.5

-20

0

20

40

60

80

2011 2012 2013 2014 2015 2016

Revenue Net Profit Acquisition

AIRA Leasing (AIL) – Strategies

21

Key Strategies

• Shift toward financial lease (FL) and hire purchase (HP)

• OL : Focus on high-margin products e.g. Wheel loader, Excavator

• FL : Target corporate car and launching new product program

e.g. Solar-roof leasing, Micro bus

• Boost up a yield and control the NPLs

• Improve OL asset portfolio – short-lived + high liquidity

Operating Lease, Financial Lease and Hire Purchase

AIRA Property (AIP)

22

ASPIRATION ONE Project (ASP1)

Source: AIRA

• Start commercial operation in 2019

• 28 Fl. Building with 57,470 sqm.

• LEED-Gold office building in CBD area

• Lease CPB land for 30 years+ • Project value : THB2.5bn

Project Assumptions

REITASP1 + ASP2 + ASP3 + ASP4

• Rental rate : THB900 / sqm. (approx.)

• Occupancy rate : 95% in 1 year• IRR : 9-10%

AIRA Venture Capital (AVC)

23Source: SCG Logistics

5 new

S-curve

industries

5 existing

industries

with high

potential

Focus on 10 industries in Thailand 4.0 policy

Joint Ventures Performance

24

AIRA & AIFUL (A&A) – Performance

25

Investment Highlights

Source: AIRA, A-money branch at MRT Asoke

• “A-Money” branding = Money Buddy for 1st jobber

• Current customer at 100,000 accounts (Feb 2017)

• FY17 budget, customers at 300,000 accounts• Target IPO on 2019

1.5bn

0.23bn

Loan Portfolio

Customer Accounts 10,454 88,173

AIRA & AIFUL (A&A) – Performance

26

Investment Highlights

Start

Operation

2015 2016

Travelex (Thailand) Limited

27

Source: Contactdir.uk

Investment Highlights

• Open branches mainly in CBD and tourist areas

• First branch at Wall Street Tower, Thaniya Street

• Support by strong in-bound tourists 32.6m in 2016

• Avg. market size of non-bank on currency exchange = THB50bn

• Strong partnership : Travelex (London) & UAE Exchange are the leader of

the world on FX business

1,500 stores in 28 countries

28

Q & A