analyst meeting year-end 2020

1

Analyst MeetingYear-End 2020

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

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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 initially4

Launched Lifestyle Products in 2021

5

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

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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

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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)10,296,661(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%)

13

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 *2019 Statistic **Q3/2020 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

Nov-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 BeyondY2020

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

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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

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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

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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

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

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Financial Highlight in

2020

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 performance in 2020 is better than expectation

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


Service Cost to Income

2019 2020

52.4%

48.4%

-4.0%

492019-Q4 2020-Q3 2020-Q4

Service Cost

381 380 368

-3.4%

-3.2%


Admin Expense to Income

2019 2020

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


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


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(31/12/20)

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

[email protected]

IR Team Email

54

analyst meeting year-end 2020

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