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Year-End 2020 Opportunity Day29 March 2021
Key highlights 2020-2021
Strong Operating Performance
• Y2020 Revenue 3,136 MB Growth YoY 12.7 %
• Y2020 Net Profit 702 MB Growth YOY 38.4 %
• 2021 Organic Premium Sales
• Forecast premium sales to be 17,250 MB
• Forecast total Sales to be 25,000 MB with M&A
2
3
Key highlights 2020-2021
01 | Motor Insurance 02 | Home Insurance 03 | Health InsuranceProduct and
service design have been adjusted
to respond the changing in
consumer behavior due to COVID-19
• Product segmentation by persona
• 3X – New product in 2021
• More new product in 2021
• New price for insurance policy based on risk and persona
• Product segmentation by persona
• Adjust current and future product based on customer data
Market PenetrationDeveloped new product > 20 products
Technology EnhancementDeveloped new product and service
04 | Lifestyle Insurance
• Valentine’s Product• Lucky Year Ritual
Insurance (ประกนัปีชง)
3
Successfully launched Economy Plan Insurance (3X) in Q4 2020
3X Insurance product 3X Product List
Personal Accident Insurance
Health Insurance
Specified Disease Insurance
Home Insurance
Successfully penetrated market with over 9,000 policy initially
4
5
Launched Lifestyle Products in 2021
TJN – 2021 TargetTJN
≈1,000Sales Agents
& Dealers
500 Million THBSales Premium
at the end of 2021
Expand to 76 branches
6
TJN Leapfrog Through M&A & JV
Relentless expansion to serve all segments in Thailand
Merger and Acquisition projects Joint Venture projects
7
TJN Launched new lending service to cover all segment
New Company “Easy Lending”
New personal lending service for TQM’s customers
Expand to lower segment through new lending service
8
Thai Situation & Insurance Market
Overview
9
Tailored Products – Dynamic Premium
Millennials are more significant and demand personalization. Insurance packages will need to speak to their behavior and developed accordingly
Claims Go Virtual
In response to the pandemic, remote claims are being practiced more. However, roadblocks such as fraud detection warrant partnership ecosystem to pool in experts and form robust claim handling
Source: Firstdata
Extended Analytics
Extended Analytics will require new data types to be collected, analyzed and used to help insurers craft more responsive strategies, leaner operations and experiential customer service
Source: SwissRe, Deloittle insights
World Trend: New normal continuously drives changes in insurance market
10
World Insurance Trend: Speedy Recovery in Insurance Market
Figure 1: Global nonlife premiums falter in advanced markets, but keep growing in emerging countries
Figure 2: Global life insurance premiums written are forecast to recover to pre-pandemic levels in 2021
Note: A denote average, E denotes estimate, and F denotes forecast.Source: Swiss Re Institute, sigma No. 4/2020 , Deloitte Insights l deloitte.com/insights
11
0.60% 1.30%
-8%
2%
6.50% 5.60%
0%
7%
1.5% 2.20%
-6%
3%
Advanced Emerging World
2009-2018A 2019 2020E 2021F
2.60% 2.70%
-1%
3%
7.70% 7.70%
3%
7%
3% 3.50%
0%
3%
Advanced Emerging World
2009-2018A 2019 2020E 2021F
TQM Growth VS Industry Growth
12Source: OIC 2016-2020 statistics
4%
17.8%
Industry growth TQM Growth
Non-life insurance
Year 2020
Life insurance
-2%
11.0%
Industry growth TQM Growth
TQM’s growth of Life-insurance premium shows high growth in 2020
TQM’s growth of non-life product is almost 4X higher than the market
Year 2020
Thai Market: Vehicle insurance statistics 2020
Private Car (<7 seats)10,446,505
(26%)
Pick-up truck
6,878,050(17.1%)
Public Motorcycle
170,506(0.42%)
Taxi
80,172(0.20%)
Other(Truck, Bus, Other cars)
1,173,155(2.98%)
Nearly 20 million market potential (4-wheel vehicle)
Completed vehicle tax payment(73.64%)Absent tax payment
(26.36%)
Private Motorcycle
21,396,980(53.3%)
13Source: Department of Land Transport
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
Thai Market: Housing insurance statistic 2020
20202019201820172016
14
Source: OIC, BORA *2020 Statistic **Q4/2020 Statistic
Thai Market: Health insurance statistic 2020
Health Insurance Premium 101,404 MB
Accounted for 11.9% of total premium from life and non-life
Growth 10.9% year-over-year
15
Non-Life Insurance Broker continually shares major market penetration channel
Life InsuranceBroker grows perpetually to around 5%.
58%
57%
55%
55%
58%
58%
59%
62%
14%
12%
14%
13%
13%
14%
13%
12%
13%
14%
15%
16%
14%
13%
14%
10%
5%
4%
4%
4%
3%
3%
3%
5%
10%
13%
12%
11%
12%
11%
11%
11%
2013
2014
2015
2016
2017
2018
2019
2020
Broker Bank Agent
Telemarketing
Other*
55%
52%
52%
51%
50%
49%
52%
52%
39%
42%
42%
43%
44%
44%
40%
40%
2%
2%
2%
3%
3%
3%
5%
4%
4%
4%
4%
3%
3%
4%
4%
4%
2013
2014
2015
2016
2017
2018
2019
พ.ย.-20
Agent Bank Broker Other**
TQM will expansion capabilities as leading broker in Life and Non-Life insurance, capturing all market opportunities
* Other: Organization and Internet **Other: Telemarketing and Internet
16
Expected high growth in insurance premium in 2021
Aim to increase insurance
premium to 17,250 in 2021
17
18
TQM Growth Path in 2021
19
Goal
50,000 MB
On Insurance Premium
Y2026
19
20
Target:50,000 MB on Insurance
Premium Y2026
Strategy for 2021 – The Bridge to Beyond
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
20
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
• Corporate Solutions
The best omnichannel experience for every customer21
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
22
Unlocking Opportunities and Capture Value with Corporate Solutions
New Opportunity
Service Integration
Expand Business align with the company objective
• Providing solutions throughout experienced resources and in-depth knowledge in insurance industry
• Helping the client to protect their balance sheet
• Collaborate with our strategic partners to leverage overseas market
Why?
23
Insurance Consultation and Advisory
Claim Advocacy
Risk Management Driven
Client Centric
TQM Corporate Solution Strategy of 2021
24
TQM Success factors for Corporate Solutions to Drive TQM Growth
Using Big Data and Analytics to identify Risk and propose the solutions
Product Innovation & Distinctive Services
Distribution Channel 95 branches and Expand Customer Service Center Nationwide
Cross Selling and Up Selling to existing corporate client
25
Aim to increase both cross-selling and up-selling throughout every platform
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
26
COVID also unlock the growth in health and home insurance
CoronavirusInsurance
HomeInsurance
TQM TechnologyUnlock Product
PreferencesTQM Product Development
HealthInsurance
Product Mapping
27
Developed new vaccine insurance
28
Smart home and home care platform will be the toolsto expand home insurance business
SMARTER HOME INSURANCE AND HOME CARE PLATFORM
Compare & Buy Home Insurance Quotes in minutes
Making A Home Insurance Claim Simply
Reliable Home Insurance Calculator System
29
Photo credit: freepix, Unsplash
Market Segmentation for Insurance product
01 | Motor 02 | A&H
Market segmentation
With Big data and Insurtech platform, segmented productwill be launched in 2021
CAR SEGMENTATION
MORE THAN 20 PRODUCT TYPESTO BE LAUNCHED IN 2021
04 | Lifestyle 03 | Home
30
31
Working with tech partner to create new motor insurance product
TQM x Telecom Industry TQM x Digital Ventures
Mile-Based Insurance (Pay per mile) • Pay as You Drive (PAYD)• Usage-Based Insurance (UBI)
31
TQM also expanded to new area throughout digital and offline partnership
Selling Channel Affliates
And more
Marketplace Platform
And more
Healthcare Businesses
And more
Tech Companies
And more
Insurance Companies
And more
Media
And moreProperty Platform
And more
Claim & GaragePlatform
And more
32
TQM is fast-pacing its growth through domestic M&A & Investment
Explosive growth through current M&A pipeline
Realized by M&A success
Project A
Negotiation is favoringProject
B
✓ Under approval process by Regulators
33
TQM Regional expansion is leaping onto a promising path
Thailand
✓ CEO has been appointed to steer TO toward success
Cambodia
TQM is storming its success into Cambodia
Products under approval process by Cambodian Authority
TARGET 2021 : 1.5 Million USD
34
35
Transformation 2021
35
1st tech savvy insurance company in Thailand
Growth
Time
Industry advantage
Economy of scale
Operation excellences
Digitization
Omnichannel
Inorganic growth
Insurtech
36
TQM Plans to ride on Thailand’s e-Commerce Boom
E-commerce Market Value (Million THB)*
2019 2020
163,300
220,00035%
Growth
E-commerce market has grown rapidly due to COVID-19
Source: BOI
TQM Digital Plan 2021
Focus on consumer needs
Serve all the generations
Aim to be No.1 online insurance broker in Thailand
37
Generation Gaps will be addressed by a wide range of tools
Tendency to buy online
Tendency to buy from call
Generation YGeneration Z Generation X Baby Boomer
9-26 Years Old 27-41 Years Old 42-56 Years Old 56-75 Years Old
25% of Thai population 25% of Thai population 25% of Thai population 21% of Thai population
Prefer online Prefer both Prefer call
TQM Digital TQM Hotline
38
39
40
TQM Has Created a Value-added Ecosystem to Enhance Our Customer Service
• TQM Customer Centric Solution
• Digitize RPA and people skill set
Health Insurance
Car Insurance House Insurance
Life Insurance
TQM Mobile Platform
Agent Life Platform
Call/Chat Center
TQM Mobile Platform
Agent Life Platform
Location-based Telesale
TQM Mobile Platform
TQM Home Platform
TQM Website & Mobile Platform
Motor claim service
TJN Agent Platform
Chat Center
40
Insurtech roadmap to be No.1 digital insurance
Short-term Medium-term Long-term
Platform
Big data
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 model
41
Opportunities with partners across sectors
x Insurtech partner
B2B2C Platform Motor Platform
x xx
Life/ Health
Home PA/ Health
Partner
Claim service
Partner
Micro lending: Installment
Partner
Partnerx
x x xx
Telecom Industry
x Digital Ventures
42
2 Forthcoming partnership opportunity
Photo credit: freepix, Unsplash
New Market Place and Hospital Strategic PartnersUpcoming in 2nd Quarter
Insurance Companies Customer Supporting Businesses Selling Channel Affiliates
01 | Telecom Industry 02 | Digital Ventures
43
44
Financial High ligh t in
2 0 2 0
44
Key Financial Highlights Q4/2020
• Q4/20 Revenue 791.8 MB +54.3 MB (7.4% YoY)
• Y2020 Revenue 3,136.0 MB +352.2 MB (12.7% YoY)
• Q4/20 Net Profit 190.0 MB +39.1 MB (25.9% YoY)
• Y2020 Net Profit 702.0 MB +194.7 MB (38.4% YoY) 45
TQM perfo r mance in 2 0 2 0 is bet t er t h an expect at io n
96%
4%
Non-life insurance³
Life insurance²
THB 1,848
Million
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%
3,1362,783.8
+12.7%
59% 59%
38%39%
3%2%
2019 2020
Other¹
Service
Brokerage
Revenue Y2019-2020 (Million THB)
46
Revenue of TQM by type
61% 58% 59%
37% 40% 40%3% 2% 2%
2019-Q4 2020-Q3 2020-Q4
Other Revenue
Service Revenue
Commission Revenue
2.3% CAGR
738 774 792
7.4% CAGR
• Total income increased by 54.3
million THB or 7.4% YoY from
premium growth of life & non-
life insurances.
• Total income of Q4/20 has
increased QoQ due to growth
in premium
Strong performance in both YoY and QoQ
47
Strong performance in both YoY and QoQ
614 604 600
707672 685 690738
823
747774
792
2018 2019 2020
+22.5% YoY
+12.2%YoY
+7.4%YoY
+9.1%YoY
8895 93
128107
122 127
151
179
163170
190
2018 2019 2020
+68.3%YoY
+33.0%YoY+33.3%YoY
+25.9%YoY
688
Quarterly Total Revenue
Exclude COVID
139Exclude COVID
Quarterly Net Profit
Strong growth
for the whole
year in both
revenue and
net profit
48
TQM performance in 2020 is better than expectation
Service Cost to Income
2 0 1 9 2 0 2 0
52.4%
48.4%
-4.0%
492019-Q4 2020-Q3 2020-Q4
Service Cost
381 380 368
-3.4%
-3.2%
TQM performance in 2020 is better than expectation
Admin Expense to Income
2 0 1 9 2 0 2 0
25.2%
23.8%
-1.4%
502019-Q4 2020-Q3 2020-Q4
170185 187
+9.9%+0.9%
Administrative Expense
Net Profit EPS
2019 2020
507.2
702.0
+38.4%
2019 2020
1.69
2.34
+38.5%Baht / ShareMillion Baht
TQM performance in 2020 is better than expectation
51
12.6%15.2%
2019 2020
ROA
22.6%
29.6%
2019 2020
ROE
23.9%32.4%
2019 2020
EBITDA Margin
0.81 1.06
2019 2020
D/E
18.2%22.4%
2019 2020
Net Profit Margin
TQM performance in 2020 is better than expectation
52
Strong historical growth in both market price and dividend payment
0.30
0.65
1.10 1.001.15
May 2019 Sep 2019 May 2020 Sep 2020 May 2021*
2338
5465.5
53.25
144.5
125134.5
IPO(20/12/18)
FTSE(21/6/19)
MSCI(26/11/19)
SET100(2/1/20)
Covid-19(12/3/20)
HighestClose
(23/9/20)
CG 5Stars
(30/11/20)
YE(30/12/20)
High growth in market price since IPO High and stable dividend payment
Stable growth even during pandemic
*to be approved by 2021 AGM53
Q&A Session
Contact
Sumrit Rongkawilit
+662 119 8888 ext. 5234
Rio Khundeeklai
+662 119 8888 ext. 5009
IR Team Email
54