corporate presentation - stock exchange of thailand · corporate presentation september 2018 ....

CORPORATE PRESENTATION SEPTEMBER 2018

STRICTLY PRIVATE AND CONFIDENTIAL

AGENDA

2

MKET

OVERVIEW

MAYBANK

GROUP

FINANCIAL

HIGHLIGHTS


MAYBANK KIM ENG THAILAND

OVERVIEW

#1 BROKER IN THAILAND FOR

THE PAST 15 CONSECUTIVE

YEARS

3



#1 BROKER FOR 17 YEARS RUNNING

45 Branches

28 Branches In Bangkok

17 Branches In Up-country

B R O A D E S T N E T W O R K

R A N K E D # 2

Solid net capital ratio of 31.74%

Sufficient placement ability for underwriting IPO

S T R O N G F I N A N C I A L H E A LT H

Asset Triple A Asia Infrastructure Awards

2018, TPIPP as Renewable Energy Deal of the

Year 2018

Best Broker of Southeast Asia for the year

(2015-2017), Alpha Southeast Asia

Best Securities Company of the year 2017 by

Money & Banking Magazine – June 2017

Best Retail Broker in Thailand (2007-2016),

Alpha Southeast Asia

Best Institutional Broker in Thailand (2007-

2016), Alpha Southeast Asia

Best Securities Company of the Year 2015,

Money & Banking Magazine

Best Retail Broker- Finance Asia (2014-2015)

& The ASEAN Banker (2015)

Best Brokerage House for Thailand, The Asset

Triple A Awards 2012- 2015

TFEX Best Award (2011), Alpha Southeast Asia

SET Awards 2011- Outstanding Securities

Company

SET Awards 2011- Outstanding Derivatives

House

Best Broker in Thailand (2010), Finance Asia

Best Research House for Retails (2007-2008),

SAA

Best Analyst in Energy and Petrochemicals for

Retail Investors (2008), SAA

Best Medium & Small Cap. Analyst for Retail

Investors (2007), SAA

Best Medium & Small Cap. Analyst for

Institutional Investors (2007), SAA

2 0 1 8 A C C O L A D E S

F I T C H R AT I N G S

AA+ Updated on 2 May, 2018

Rating on par

with BBL, KBANK,

KTB and SCB

4

2.29

2.37

2.45

2.54

2.81

2.98

3.10

3.16

3.47

3.62

4.02

4.04

4.28

4.49

4.78

5.30

5.40

5.745.97

KSS

ASPS

TISCO

MACQ

JPM

KS

KGI

TNS

UBS

SCBS

FSS

YUANTA

CS

PHATRA

BLS

CGS-CIMB

CLSA

AWS

MBKET

DBSV

9,0

34

7,1

66

13

,97

3

14

,68

4

20

,61

2

17

,98

9

16

,80

2

18

,92

4

19

,69

2

4,6

37

4,4

20

4,5

17

5,2

75

4,4

96

4,8

18

4,9

14

4,6

55

4,6

60

Q22018

Branches as of 30 JUN, 2018

Assets (THB mn)

Equity (THB mn)

Key Rating Drivers

Institutional Support Driven Ratings: Fitch Ratings believe there to be a high probability that Malayan

Banking Berhad (Maybank, A-/Stable/F2) will extend extraordinary support to Maybank Kim Eng Securities

(Thailand) Public Company Limited (MBKET) when needed. MBKET’s National Rating reflect such support from

its ultimate parent Maybank and highlight Maybank’s ability and propensity to support its 83.5%-owned Thai

subsidiary.

Strategically Important Subsidiary: Fitch deems MBKET a strategically important subsidiary of Maybank,

whose control extends to operations, branding and senior management. Thailand has the second-largest GDP

in south-east Asia, and remains a key brokerage market for the group. MBKET has generally succeeded in

supporting the group’s objective in Thailand. In turn, Maybank shares its know-how with MBKET, and allows

access to some of the group’s shared banking facilities.

Regional Support Underpins Franchise : MBKET’s securities franchise benefits from plenty of regional

support, which is crecial to the firm’s goal of reaching out to foreign institutions in finding new brokerage

clients. MBKET has the ability to navigate profitability challenges in an increasingly fragmented industry.

MBKET draws on regional expertise to undertake initiatives in research, investment banking and wealth

management to strengthen its domestic franchise.

Credit Risks Remain Low : MBKET’s historically low NPL ratio provide evidence of the firm’s generally

prudent controls. However, asset-quality risks may heighten if the pace of margin-loan expansion quickens in

2018.

Brokerage Challenges Lie Ahead : Fitch expects MBKET’s brokerage business to remain under pressure even

as MBKET steps up efforts to boost institutional volume. The brokerage business has been on a rocky road

over the past few years as aggressive new players have been rapidly expanding their market presence. The

expansion has intensified competition in the large retail segment, and reduced the availability of skilled staff.

As a result, MBKET’s market share dropped further – to 6.1% of the brokerage industry to 1Q18 (2010 : 12.8%).

Earning Pressure Persists : Fitch expects structural challenges in Thailand’s securities industry to further

reduce MBKET’s operating profit/average equity ration from 16.7% in 2017. Brokerage contributes nearly 60%

of total revenue, but commission rates are likely to continue to fall, albeit more gradually. The agency

nonetheless expects MBKET to remain profitable through the cycle, and able to support the group’s

objectives over the medium term.

Thailand Credit Analysis Update as of 2nd May, 2018

Ratings

Maybank Kim Eng Securities (Thailand) Plc

National Long-Term Rating AA+(tha) Short-Term Rating F1+(tha) Outlook National Long-Term Rating Stable

Financial Data Maybank Kim Eng Securities (Thailand) Plc (Consolidated) 31 Dec 17 31 Dec 16

Total Assets (USDm) 579.4 468.9 Total Assets (THBm) 18,924.1 16,802.6 Total Equity (THBm) 4,655.0 4,914.4 Net Income (THBm) 638.6 974.5 Operating profit/ 16.7 25.1 average equity (%) Net Income/ 13.4 20.0 average equity (%) Equity/Assets (%) 24.6 29.3 Analysts Jackerin Jeeradit +66 2 108 0163 [email protected] Thanasit Utamaphethai +66 2 108 0154 [email protected]

Fitch Ratings : AA+(tha)

AA+(tha)

mailto:[email protected]

mailto:[email protected]

Long-Term Ratings Bank / Securities

AAA Bank of Ayudhya

Bangkok Bank

AA+ Kasikorn Bank

Krung Thai Bank

Maybank Kim Eng Securities

Siam Commercial Bank

AA

CIMB Thai Bank

Capital Nomura Securities

Kasikorn Securities

SCB Securities

Yuanta Securities

AA- CGS-CIMB Securities (Thailand)

A+ Thanachart Bank

TMB Bank

A TCAP

A- Asia Plus Group Holdings

Fitch Ratings : MBKET is same rating level as BBL, KBANK, KTB and SCB

AA(tha)

AA(tha)



OUR NETWORK1

WE ARE THE LARGEST RETAIL BROKERAGE NETWORK IN THAILAND

208,350 Retail Accounts

45 Branches Around

The Country

Online Markets Offline Markets

USA Canada

Singapore Switzerland

Hong Kong UK

Malaysia France

Germany

Norway

Japan

Vietnam

Indonesia

South Korea

Australia

OUR OFFSHORE MARKETS

1 Updated as of December 2016

7



OUR BUSINESS OVERVIEW

Number of Accounts Dec-16 Dec-17 % Change

Jun -18

% Change

Total Equity Account 179,321 203,391 13.42% 208,344 2.44%

Internet Account 81,144 86,252 6.29% 88,070 2.11%

Credit Balance

Account 3,632 3,809 4.87% 3,946 3.60%

Cash Account 94,545 100,109 5.89% 76,475 (23.61%)

Futures Account 12,605 13,221 4.89% 13,510 2.19%

Number of

Active Accounts Dec-16 Dec-17 % Change Jun 18 % Change

Total Equity Account 78,676 76,209 (3.14%) 74,159 (2.69%)

Internet Account 37,283 34,362 (7.83%) 33,149 (3.53%)

Credit Balance

Account 1,579 1,488 (5.76%) 1,494 (0.40%)

Cash Account 39,814 38,279 (3.86%) 31,290 (18.26%)

Futures Account 2,590 2,080 (19.69%) 2,060 (0.96%)

At the end of June

2018, MKET had 208,344

equity accounts and 13,510

futures accounts.

42.27% were internet

accounts, 1.89% were margin

accounts and the rest 36.71%

were cash accounts.

36.71% of equity accounts

and 15.25% of futures

accounts were active

accounts.

Outstanding loans on margin

accounts at the end of June

2018 totaled Baht 12,997

million.

Short sell value Y-T-D June

2018 totaled Baht 7,944.05

million.

There was no default on

MKET margin

accounts

51% Retail

Accounts

39% Foreign

Accounts

10% Local Institutional

Accounts

MKET BROKERAGE2

BUSINESS

2Updated as of Q2/2018

8



OUR BUSINESS OVERVIEW

Among 42 TFEX member brokers, MKET

ranked #11 by derivatives trading volume

in 2Q2018. MKET’s derivatives trading

volumes come from servicing retail

clients, foreign institutions, local

institutions and from proprietary trading.

Since TFEX commenced trading on April

2006, MKET has earned the customers’

derivatives account 13,587 accounts.

Trading channels cover both sending

orders through marketing officers and

customer trading through the internet.

MKET has the largest number of marketing

officers 482 derivatives sales persons -

spreading across 45 branches (excluding

Head Office) throughout the country.

1,739,547 1,821,050

1,918,969 2,039,614

1,903,785

5.44%

4.45%

4.04%

3.36% 3.61%

0%

2%

4%

6%

8%

(200,000)

300,000

800,000

1,300,000

1,800,000

2,300,000

2Q2017 3Q2017 4Q2017 1Q2018 2Q2018

Mark

et

Share

(%

)

Volu

me (

Contr

acts

)

MKET's Derivatives Volume and Market Share (%) 2Q2017 - 2Q2018

MKET DERIVATIVES BROKERAGE BUSINESS

In 2Q2018, MKET’s Brokerage fee from Derivatives Business was 40.40

million Baht compared to 30.40 million Baht in 2Q2017, representing

the revenue increase of 32.89%. MKET’s average daily volume increased

from 28,992 contracts in 2Q2017 to 31,730 contracts in 2Q2018,

representing an increase by 9.44%. In 2Q2018, MKET ranked No.11 in

term of market shares that accounted for 3.61% of the total volume in

derivatives market.

9



INNOVATION AT OUR CORE

MKET always develop our information

and communication technology to

support an efficient tool for our

investors, both professional fund

managers and retail investors.

The first Thai broker with live research

analysis (MKET Channel) via internet,

iPad – iPhone, Android both fundamental

and technical analysis into 3 session ,

#ATO (At the Open), #ATM (At the

Market and #ATC (At the Close)

Real time stock information and trading

via ios (iPad-iPhone) , Android, Mobile,

Tablet, PC, BlackBerry (every operation

system)

Providing rich research and news

contents via public LINE application

(@maybankfriends), and on-demand

robotic LINE application in search for

company news, corporate actions,

company research paper, and stock

trading, exclusively for MKET clients.

10

@maybankfriends



2018 EVENT HIGHLIGHTS

11

Even faced with stiff competition from a total of 215 submissions from 55 banks, brokers and Financial Institutions, we are proud that MKET is awarded as follows Maybank Kim Eng (Thailand) has won 3 major awards from Alpha Southeast Asia Best Broker in Southeast Asia (2007-2018) Best Retail Broker : Thailand and Philippines Best Institutional Broker : Thailand, Singapore and Philippines Thank you to all MKET staff for your contributions to achieve these successes.

The Asset Triple A awards MBKET as Joint Financial Advisor, Joint Global Coordinator and Jint Domestic Bookrunner, together with CIMB Securities (Thailand) and TISCO Securities for the Initial Public Offering Deal of TPI Polene Power Plc as Renewable energy deal of the year 2018. The 2018 award honors the deals in Asia that make a difference during the review period during the calendar year 2017 (January 1 - December 31 2017) The award present was held on 19 June at Four Seasons Hotel Hong Kong where George Yuen, Head of Debt Markets Loan Syndication, Greater China of Kim Eng Securities (Hong Kong) picked up the awards on behalf of Maybank Investment Bank and Maybank Kim Eng. This award reflects Maybank on-going commitment to its clients, providing the best services across the ASEAN and the regional markets. Thank you to our colleagues both front office and back office who supports the company on this success.

Alpha Southeast Asia Awards – Best Retail Broker and Best Institutional Broker

Asia Infrastructure Awards 2018 : Renewable energy deal of the year




.

12

Maybank Kim Eng Securities (Thailand) has organized Maybank Go Ahead Challenge 2018 for 7 consecutive years inviting students both undergraduate and master degree or the graduated but not exceeding 2 years in all fields of subjects to participate in International Business Competition. This year we recruit undergraduate students to join Maybank GO AHEAD Challenge 2018 by joining hands with top universities in Thailand. The final round of Maybank Go Ahead Challenge 2018 – Thailand Campus Level & National Level to get 2 finalists as Thailand representative to join International competition held on June 29, 2018 at Jasmine City Hotel, Sukhumvit 23. The winner will receive prize worth up to USD 50,000 (or equivalent toTHB 1,600,000) for the final round. Aside, the winner would receive a chance to join the coveted Global Maybank Apprentice program. Thailand three finalists who will be delegates to compete Business Cases, Global Final Level in Malaysia are as follows. 1. Mr. Ravisut Udomrungrueng, Mahidol University International College, Business Economics 2. Ms. Yada Sotangkur, Thammasat University, Marketing 3. Ms. Latisha Khorana, Thammasat University, Marketing There were about 600 applicants from Thailand out of close to 10,000 applicants comprising 80 nationalities from all over the world. The activities are designed to make challengers learn and understand what is needed to stay relevant in the current and future business environment. MGAC will test both financial and non-financial disciplines to spot the all-rounder talent equipped with future-ready skills that could operate effectively in a rapidly changing environment.The final round competition will be held in Malaysia in August 2018.

Maybank Go Ahead Challenge 2018 (MGAC) – Thailand Campus Level & National Level : June 29, 2018




June 8, 2018 : MKET CSR Activity

.

13

MKET volunteers have signed up to join the CSR activity The project “Paper Ranger – Volunteer for making books for brothers and sisters” under the Foundation for Rural Restoration of Thailand Under the Royal Patronage. The activity is to create recycle books for needed children, using the one page used paper to make handmade reused book and decorate the covers and send to the underprivileged children who lack equipment to learn in the wilderness areas. Mr. Sittiporn delivered the closing speech to MKET’s attendants has held on 8 June, 8 (Friday) at . to . hours at the offices at Central World. There are interested volunteers sign up to join this program about 40 staffs joining this activity.



PRODUCT TYPE DEALS

1. M&A 3 - 4

2. REITS 1 - 2

3. Infrastructure Fund 1 - 2

4. Initial Public Offering IPO)

Added on Public Offering 15 -16

5. Equity/Private Placement 1 - 2

6. Financial Advisory (FA) -

Others 1 - 2

DEALS BY PRODUCTS IN PIPELINE

14

IB’S MANDATED &

POTENTIAL DEALS

Investment Banking

STRICTLY PRIVATE AND CONFIDENTIAL 15

Our ECM Track Record Since 2003

Shin Satellite

2005

Lead Underwriter

Issue Size: 3,182 MB

Phatra Securities

2005 FA / Lead Underwriter


M.C.S. Steel

2005

FA / Lead Underwriter Issue Size: 336 MB

Indorama Polymers

2005 Co-Lead Underwriter Issue Size: 1,200 MB

UOB KayHian

2005 Lead Underwriter Issue Size: 465 MB

Interhides

2005 FA / Lead Underwriter Issue Size: 273.75 MB

Bangkok Metro

2006 FA / Lead Underwriter Issue Size: 3,661.24 MB

Sena Development


Issue Size: 396 MB

SIS Distribution (Thailand) Plc.


DCON Products


Issue Size: 370 MB

Hwa Fong Rubber (Thailand) 2003

FA / Lead Underwriter Issue Size: 412 MB

Chonburi Concrete Product


Issue Size: 550 MB

TPI Polene

2004 Underwriter


Syrus Securities


Globlex Holding Management

2004 Lead Underwriter

Issue Size: 494.50 MB

Krungthai Bank

2003

Co-lead Underwriter


Polyplex (Thailand)

2004

Co-lead Underwriter


Thainox Stainless

2004

Co-Lead Manager


Siam City Bank

2003 FA / Lead Underwriter Issue Size: 8,400 MB

Somboon Advance

Technology



BTS Groups Holding

2010

Lead Underwriter Issue Size: 751 MB

Dusit Thani Property Fund


UAC


Vichaivej International

Hospital Group

2012

FA / Lead Underwriter

Issue Size: 169 MB

UAC


Interlink Communication


CPNRF Retail Growth Leasehold Property Fund

(CPNRF) 2014

FA / Lead Underwriter Issue Size: 6,238 MB

Aira Capital

Public Company Limited


Impact Growth Reit


Loxley Public Company

Limited


CPN Commercial Growth Leasehold Property Fund

(CPNCG) 2012

FA / Lead Underwriter Issue Size: 4,394 MB

Italian-Thai Development PLC.


Issue Size: 2,035.15 MB

Singha Estate PLC.


The Platinum Group PLC.


Global Power Synergy PLC.

2015 Co -Lead Underwriter

Issue Size: 621 MB

Italian Thai Development

2005

FA / Lead Underwriter


C.M. Organizer


Tycoons Worldwide

Group(Thailand)



Siam Global House


Kaset Thai International Sugar

Corporation

2014 Lead Underwriter


Daii Group PLC.

2015

FA/Lead Underwriter Issue Size: 120 MB

Netbay PLC.

2016

FA/Lead Underwriter Issue Size: 160 MB

Sahakol Equipment PLC.

2016

FA/Lead Underwriter Issue Size: 1,216 MB

TPI Polene Power PLC.

2017

FA/Lead Underwriter Issue Size: 17,500 MB

Mudman PLC.

2017

Lead Underwriter Issue Size: 1,107 MB

True Corporation PLC.

2016

FA / Lead Manager Issue Size: 60,000 MB

Buriram Sugar Group Power

Plant Infrastructure Fund

2017

FA/ Underwriter Issue Size: 3,605 MB

Ingress Industrial (Thailand)

2017

FA/ Lead Underwriter Issue Size: 769.MB

Sahathai Terminal

Underwriter

Issue Size: 540 MB

Grand Prix International

FA and Co- Underwriter Issue Size: 59.50 MB

AIM Industrial Growth Freehold and Leasehold Real

Estate Investment Trust

FA and Lead underwriter Issue Size: 1,550 MB


AYCAL

2010 FA on Debenture Issuance


LPN Development

2004

FA for share valuation on one of its subsidiary

CS Loxinfo

2005

FA for Valuation of Teleinfo Media

Bangchak Pertroleum

2005

IFA for Connected Transaction and Whitewash3

Industrial Estate Authority of Thailand

2005

Co-FA for Study on Potential Privatization

IAG Group

2006

Tender Offer Preparer & Tender Agent

for Acquisition of

Safety Insurance Shares

Bank of Ayudhya

2006

IFA on Whitewash, PP at low price to GE and asset acquisition from GE

Ocean Life Insurance

2008

Financial Advisor on Joint Venture with Dai-ichi Life

Insurance

Golden Land Property Development

2008

FA on Issuance of ESOP Warrant

PTT

2008

FA on Acquisition Strategy of a listed company

Siam Cement Group

2009

FA on Share Valuation

of their investment in a Non-listed Company

TSFC Securities

2009

FA on Debt & Capital Restructuring

Loan Arranger

Thai Credit Bank

2009

FA on Acquiring of

a Leasing Company

Charernkit Enterprise

2009 FA on Acquisition & Backdoor

listing of MEDIAS Tender Offer Preparer &

Tender Agent

HitashiTransport System (Asia)

2011

Tender Offer Preparer and Tender Offer Agent

Grand Canal Land

2011

IFA on Acquisition of 2 land plots & Disposal of Golf

Business

Tapaco

2010 FA on

Right Warrants Issuance

National Power Supply

2007 FA for Independent Power

Producer bidding

Ayudhya Insurance

2011


of the share acquisition in Ayudhya Allianz C.P.


2010


of their investment in a Non-listed Company

Mayban IB Holdings

Sdn Bhd

2011

Tender Offer Agent of Kim Eng Securities (Thailand) PLC

Bangkok Dusit Medical Services PLC.

2011

FA for Delisting of Prasit Patana PLC.

GMM Media

2005 IFA on Connected Transaction

for Share Acquisition in MATI and POST

Manecomp Precision

Technologies

2005

Tender Offer Preparer and

Tender Offer Agent

Thai Military Bank

2008

IFA on Connected Transaction and T/O Waiver for ING Bank

Thai–German Ceramic Industry

2008

IFA on Tender Offer by Ceramic Cementhai

Bangchak Petroleum

2009

FA on Enhancing Liquidity & Firm Value

Kasikorn Thai Bank

2009

IFA on Acquiring

Muang Thai Insurance

PTTCH

2011

IFA on amalgamation of PTTCH and PTTAR

Royals food

2011

FA on valuation of its group

Central Pattana PLC.

2012

IFA for Land Leasing from Connected Party

Officemate PLC.

2012

IFA for the Acquisition of Assets and Connected

Transactions

CP All PLC.

2013

IFA for the Acquisition of Siam Makro PLC.

231,000 MB

Singha Estate PCL.

2014 FA on Acquisition & Backdoor

listing of Rasa Plc Tender Offer Preparer &

Tender Agent

Millennium Steel

2006

IFA on Tender Offer by Tata Steel and NatSteel

JMT Network Services PLC.

2015

FA for Private Placement and Selling Agent of Right

S Hotels and Resorts Inter 2015

FA on Acquisition of Jupiter Holding

Management of 26 Mercure hotels in in U.K.

Berli Jucker

2016

IFA on Acquisition of BIG C Super Center Plc.

208,626 MB

Singha Estate Plc.

2016

FA on Acquisition & Backdoor listing of Singha Estate

Tender Offer Preparer & Tender Agent

16

PTT Global Chemical PCL.

2017 IFA on Connected

Transaction 26,300 MB

Our Advisory Track Record Since 2003

Big C Supercenter 2017

IFA on Delisting and

Tender Offer Agent

3,826 MB

JMT Network Services

2018

FA on Acquisition of majority stakes in Phoenix

Insurance (Thailand)

Frasers Assets

2018

FA, Tender Offer Agent on Acquiring TICON

Industrial Connection

Dusit Thani Freehold & Leasehold REIT

2017

FA for conversion of DTCPF into DREIT

CPN Retail Growth Leasehold REIT

2017

FA for conversion of CPNRF into CPNREIT

Dusit Thani Plc. 2017

FA for joint investment in a mixed-use complex on

Silom Rama 4 Road

http://www.csloxinfo.com/index.asp

http://www.pttgcgroup.com/th/home

https://www.frasersproperty.com/th

https://www.frasersproperty.com/th



THE WINNING TEAM2

BOARD OF DIRECTORS

TH EXCO

CHIEF OPERATING

OFFICER (COO)

CHIEF EXECUTIVE OFFICER

(C0-CEO)

CHIEF EXECUTIVE OFFICER

(CEO)

AUDIT COMMITTEE

COMPLIANCE

CG COMMITTEE

TH CUC

RETAIL SALES & DEALING

RETAIL 1-3

RETAIL 4

E-COMMERCE

PRIVATE WEALTH MANAGEMEN

1-2

BUSINESS DEVELOPMENT

BUSINESS MARKETING

OFFSHORE TRADING

SELLING

AGENT

INSTITUTIONAL SALES

INVESTMENT BANKING

DERIVATIVE

CORPORATE LEGAL

HUMAN RESOURCES

CORPORATE COMMUNICATIONS

CHIEF INFORMATION

OFFICER

INTERNAL AUDIT

HEAD OF FINANCE

ACCOUNTING

SETTLEMENT/ CUSTODIAN

OPERATION CLIENT SERVICE

GENERAL SERVICES

TREASURY/ CASHIERS

MANAGEMENT ACCOUNTING

The Board of Directors

Mr Yuth Vorachattarn Chairman to the BOD &

Audit Committee Member

Mr. John Chong Eng Chuan Director

Mr. Montree Sornpaisarn Director

Ms. Sopawadee

Lertmanaschai

Director & Chairman to

audit Committee

Mr. Hans Johan Patrik,

Sandin 1

Director & Audit

Committee Member

Mr. Henry Koh Swee Ong Director

Thailand Executive Committee

(TH EXCO)

Mr. Montree Sornpaisarn Chairman

Ms. Hamidah Binti Moris Member

Mr. Mohamad Yasin B. Abdullah Member

Ms. Sudthida Chirapatsakul Member

Mr. Henry Koh Swee Ong Member

Mr. Peerasit Chiwabhong Member

Mr. Chuchart Suratepin Member

Mr. Prateep Chongcharoensuk Member

Mr. Chakravee Suthisote Member

Mr. Vichet Pornsinsiriruk Member

1 Mr. Hans Johan Patrik, Sandin’s effective date on 14 May 2018

17

NOMINATION

COMMITTEE

COMPENSATIONCOM

MITTEE

RISK MANAGEMENT

& CREDIT CONTROL

DERIVATIVES INVEST

COMMITTEE

CREDIT

UNDERWRITING

REVIEW COMMITTEE

INSTITUTIONAL RESEARCH

RESEARCH

Mr. Hans Johan Patrik, Sandin

Mr. Hans Johan Patrik, Sandin joined the

Company as an Independent Director and a

member of the Audit Committee to be

effective on May 14, 2018 in the replacement

of Mr. Chiang Shin Lee

Mr. Sandin has been appointed as a Director

of Maybank Investment Bank since 20 May

2015. He has 23 years of working experience

in international financial markets, a strong

expertise in derivatives, coupled with a good

knowledge of the evolving market

infrastructure and regulations. He had

worked at Union Bank of Switzerland, Zurich

in 1911, BNP Paribas, London in Fixed Income

Division in 1998. In 2010 Mr. Sandin

transferred to Hong Kong and was appointed

Head of Fixed Income Distribution &

Origination, Asia-Pacific ex Japan. Mr.

Sandin's last role was as Head, Strategic

Hedging Advisory, Investment Banking, before

his retirement in April 2014.


THE VOICE OF THE ASEAN

OPPORTUNITY

Maybank was one of the first to see

the potential of ASEAN as a single

marketplace. As a result of our

strategic expansion, we are now the

largest investment bank in ASEAN

and probably the most forward

thinking in terms of our vision for

shaping the way we bring ASEAN to

the world.

Among ASEAN corporates and global

investors, through our highly

personalised conversations, we have

become known as

18


OVERVIEW


*As at 31 December 2016

** As at 3 May 2017

LEADERSHIP POSITION STRONG SHAREHOLDERS AND

CREDIT RATINGS 2,400 Branches and

offices in more than 20 countries

1,156 Branches in 10

ASEAN countries

5 International

Financial Centres (IFCs)

MAYBANK

THE LEADING REGIONAL FINANCIAL SERVICES GROUP

No. 1 bank in Malaysia: Conventional

and Islamic

Top 5 bank in ASEAN

‘Brand of the Year’ for 3 consecutive

years by World Branding Awards

‘Best Islamic Financial Institution’ in

Malaysia by Global Finance Awards

2016

Most Valuable Company on Bursa

Malaysia

48% owned by PNB and its funds and 15%

by EPF *

Foreign shareholding 16.8% **

A− credit rating, on par with Malaysia

sovereign

19


MAYBANK

A TRULY ASEAN FRANCHISE

Universal Banking

Retail & Commercial Banking

Investment Banking

Affiliate/Representative Office

BANK

MARKET

CAP

3 Mar 17

(USD Bil)

TOTAL

ASSETS

31 Dec 16

(USD Bil)

MALAYSIA SINGAPORE INDONESIA THAILAND PHILIPPINES BRUNEI VIETNAM CAMBODIA LAOS MYANMAR

1 DBS 34.2 333

2 BCA 28.5 51

3 OCBC 28.1 283

4 UOB 24.9 235

5 Maybank 20.0 164

6 Bank

Mandiri 19.8 77

7 Public 17.2 85

8 SCB 15.0 81

9 CIMB 10.4 108

10 Bangkok 10.2 82

11 BDO 9.9 46

12 Metrobank 5.2 35

* Wholesale Banking license only

*

*

*

20


MAYBANK

TOP 5 BANK IN ASEAN1

5.

863

1,039

1,256

1,350

1,476

1,620

1,971

2,197

2,519

3,071

CIMB

Bank Mandiri

Public Bank

Siam Commercial

Bank Central Asia

Maybank

Bank Rakyat Indonesia

UOB

OCBC

DBS

51

74

77

81

85

108

164

235

283

333

Bank Central Asia


Bank Mandiri

Siam Commercial

Public Bank

CIMB

Maybank

UOB

OCBC

DBS

38.1

55.7

56.3

56.5

71.7

74.9

109.2

176.5

180.7

240.1

30.8

49.0

49.9

54.1

65.5

72.2

108.3

156.0

152.2

211.1

Bank Central Asia


Bank Mandiri

Siam Commercial

Public Bank

CIMB

Maybank

UOB

OCBC

DBS

Loans Deposits

34.2

28.5

28.1

24.9

21.9

20.0

19.8

17.2

15.0

10.4

DBS

Bank Central Asia

OCBC

UOB


Maybank

Bank Mandiri

Public Bank

Siam Commercial

CIMB

4.

Source: Bloomberg

TOTAL ASSETS (USD BIL): 31 DEC 2016 LOANS AND DEPOSITS (USD BIL): 31 DEC 2016

PATAMI (USD MIL): 12 MONTHS ENDED 31 DEC 2016

MARKET CAPITALISATION (USD BIL): 3 MAR 2017

4.

6.

1in terms of assets, loans and deposits, and net profit

21


ASEAN INVESTMENT BANKING & ADVISORY1 (USD’M)

ASEAN MERGERS & ACQUISITIONS1

(USD’M)

ASEAN LOCAL CURRENCY BONDS1 (USD’M) GLOBAL SUKUK1 (USD’M)

MAYBANK KIM ENG

ASEAN’S INVESTMENT BANK

ASEAN EQUITY AND EQUITY LINKED & RIGHTS1 (USD’M)

Note: Based on Deal Volume

Source: 1Dealogic, 2Bloomberg

1.

11,495

13,706

14,372

15,243

15,369

17,354

17,427

21,120

25,465

26,839

4.2%

5.0%

5.3%

5.6%

5.6%

6.4%

6.4%

7.7%

9.3%

9.8%

BoA Merrill …

Citi

CIMB Group

BNP Paribas

Morgan Stanley

Credit Suisse

DBS

JPMorgan

HSBC

Maybank 1.

6,560

7,401

8,912

9,775

10,574

12,384

14,094

15,547

15,995

18,391

9.6%

10.8%

13.0%

14.3%

15.4%

18.1%

20.6%

22.7%

23.4%

26.9%

BoA Merrill Lynch

Citi

Goldman Sachs

Rothschild & Co

BNP Paribas

Morgan Stanley

Credit Suisse

HSBC

JPMorgan

Maybank

COUNTRY RANK MARKET

SHARE

TRADING VALUE

(USD’M)

TH 1 8.2% 101,322

MY 3 10.2% 23,567

PH 8 4.8% 7,369

ID 10 3.3% 17,626

VN >10 2.2% 2,810

SG N/A 4.0% 15,413

HK Tier 2 0.9% 73,558

EQUITIES MARKET SHARE BY COUNTRY

1.

502

574

735

769

896

940

948

984

1104

1132

3.3%

3.8%

4.9%

5.1%

6.0%

6.2%

6.3%

6.5%

7.3%

7.5%

HSBC

Mandiri Sekuritas PT

Morgan Stanley

Credit Suisse

Deutsche Bank

Citi

CIMB

DBS Group

UBS

Maybank

2.

1,390

1,464

1,465

2,634

2,636

2,905

3,038

3,878

4,602

5,329

3.3%

3.5%

3.5%

6.3%

6.3%

7.0%

7.3%

9.3%

11.0%

12.8%

Emirates NBD

NBAD

JP Morgan

AmInvestment

Dubai Islamic

HSBC

RHB

Standard Chartered

Maybank

CIMB

2.

2,591

3,378

3,400

3,465

3,612

3,786

3,828

4,423

5,030

8,747

Bank of Ayudhya

AmInvestment

RHB

Bangkok Bank

Kasikornbank

Krung Thai Bank


DBS

Maybank

CIMB

22


MAYBANK KIM ENG

OUR BUSINESS PLATFORM

REGIONAL PRODUCTS SHELF

• Local and Global Equities

• Fixed Income

• Contracts for Difference

• Futures & Options

PRIME SERVICES

• Providing funds, corporates and family offices with access similar to the larger prime brokers

DISTRIBUTION CAPABILITIES

• Involved in notable major IPOs in the region

• Far-reaching corporate access and local insights of the economy and corporate landscape

REGIONAL RESEARCH NETWORK

• Reputable extensive to simplified research coverage

• Innovativeness in delivery methods

DISTRIBUTION NETWORK

• Maybank Group’s Regional Network

• Investment centres/ touchpoints in all key markets we operate in

SECURITIES FINANCING

• Trade in multiple markets with multi-currency financing facility

OUR SOLUTIONS TO

OUR CLIENTS

REGIONAL CORPORATE ACCESS

• Private non-deal, pre-IPO roadshows and exclusive conferences designed to connect the fund managers and corporates

REGIONAL ACCOUNT MANAGEMENT

• Dedicated teams to manage and service all the key accounts in the region

ONLINE TRADING PLATFORM

• Award winning multi-market and multi-access trading capabilities

• Derivatives

• Leveraged Forex

• Securities Borrowing & Lending

23


MAYBANK KIM ENG

OUR THOUGHT LEADERSHIP

WE KNOW ASEAN. OUR PEOPLE ARE ON THE GROUND WITH RESEARCH TEAMS IN THE 6 KEY ASEAN ECONOMIES

Our award-winning analysts bring direct industry

experience and cover all key sectors in the region. Our

MSCI coverage is now 60-90% across markets and rising.

The country teams in our home markets complement our

regional sector teams to cover fast changing industry

trends and thematics that will move markets.

85 Analysts, sector specialists,

economist and strategist

550 Companies regionally

covering more than

MALAYSIA

SINGAPORE

INDONESIA

THAILAND

HONG KONG / CHINA

VIETNAM

PHILIPPINES

INDIA

Technology

Aviation

Consumer Staples

Gaming Financials

Telecommu-nications

Internet

Oilfield Services

Plantations

Infrastructure

Small & mid Caps

KEY SECTORS

Consumer Discretionary

24


THE LARGEST PLACEMENT IN ASEAN SINCE FEBRUARY 2014

• Sime Darby Berhad

• USD 571.65 million

• Primary Placement

THAILAND’S LEADING RENEWABLE ENERGY COMPANY LISTING

• TPIPP’s Public Limited Company

• USD 500 million

• Initial Public Offering

THE FIRST CHINESE SPECIALISED LOGISTICS AND E-COMMERCE LOGISTICS REIT ON SGX

• EC World


• Initial Public Offering

THE SYNDICATION OF THE LARGEST AND MOST EFFICIENT RECOVERY PLANT IN SINGAPORE

• Tuasone Pte Ltd

• SGD 650.0 million

• Syndicated Project Financing

THE FIRST SOVEREIGN SUKUK WITHOUT UTILISING PHYSICAL ASSETS

• Malaysia Sukuk Global Berhad

• USD 1.50 billion

• Global Islamic Sukuk

THE SECOND LARGEST M&A DEAL IN INDONESIA

• Marlin Enterprise


• Senior Syndicated Facility

THE FIRST ISSUER TO GRADUATE FROM A GOVERNMENT GUARANTEE TO STAND-ALONE CREDIT

• Sarawak Hidro Sdn Bhd

• RM 5.54 billion

• Sukuk Murabahah Facility

THE LARGEST VESSEL FINANCING IN AFRICA FOR 2016

• Yinson Production (West Africa) Pte Ltd


• Islamic Murabahah Term Financing Facility

INDONESIA’S NATIONAL INFRASTRUCTURE FUNDING

• PT Sarana Multi Infrastruktur

(Persero)

• IDR 5.0 trillion

• Bond Issuance

MAYBANK KIM ENG

NOTABLE ASEAN DEALS FY2016

25


ASIAMONEY BROKERS POLL AWARDS 2015

Malaysia:

Best Local Brokerage: 1st Place

Best for Overall Country Research: 1st Place

Best Overall Sales Service: 1st Place

Best Salesperson: 1st Place and 2nd Place

Best Sales Trader: 1st Place

Best Execution: 1st Place

Best in Sales Trading: 1st Place

Best for Events and/or Conferences:

1st Place

Best for Roadshows and Company Visits:

1st Place

Best Research Coverage for

Macroeconomics, Banks, Diversified

Financials, Insurance, Real Estate,

Semiconductors and Semiconductor

Equipment, Technology Hardware &

Equipment, Utilities

Thailand:

Most Improved Brokerage Over the Last 12

Months: 1st Place

FINANCE ASIA COUNTRY AWARDS 2016

Best Brokerage House- Malaysia Best ECM House- Malaysia Best Brokerage House- Philippines

GLOBAL BANKING & FINANCE REVIEW AWARDS 2015

Most Innovative Research House Asia Best Corporate Access ASEAN Best IPO Deal Malaysia Best Project Finance Bank Malaysia Best Mobile Trading Platform Singapore Best IPO Deal Thailand Best Institutional Broker Indonesia Best Mobile Trading Platform Vietnam

HFM ASIA HEDGE FUND SERVICES

Best Prime Broker- Boutique, ASEAN

SHARE INVESTOR AWARDS 2015

Most Preferred CFD Provider, Singapore

ALPHA SOUTHEAST 10th ANNIVERSARY AWARDS 2016

Best Retail Broker in Indonesia (2007-2016)

Best Retail Broker in Malaysia (2007-2016)

Best Retail Broker in Philippines (2007-2016)

Best Retail Broker in Thailand (2007-2016)

Best Retail Broker in Singapore(2007-2016)

Best Institutional Broker in Indonesia (2007-2016)

Best Institutional Broker in Malaysia (2007-2016)

Best Institutional Broker in Philippines (2007-2016)

Best Institutional Broker in Thailand (2007-2016)

Best Institutional Broker in Singapore (2007-2016)

Best Broker in Southeast Asia (2007-2016)

FINANCE ASIA COUNTRY AWARDS 2015

Best Broker- Thailand

Best Broker- Philippines

EUROMONEY AWARDS FOR EXCELLENCE 2016

Best Investment Bank in Malaysia

ASIAMONEY BEST BANK AWARDS 2015

Best Domestic Equity House in Malaysia

ASIAN BANKING AND FINANCE WHOLESALE BANKING AWARDS 2015

Maybank Kim Eng Group- International

Project Finance Bank of the Year

Syndicated Loan House of the Year- Malaysia

APLMA 4TH ASIA PACIFIC SYNDICATED LOAN AWARDS 2015

MAYBANK KIM ENG

BEST IN ASEAN

26



FINANCIAL HIGHLIGHTS

#1 BROKER IN THAILAND FOR THE

PAST 15 CONSECUTIVE

YEARS

27


384 351 393

199 649 2,054 2, 1

15,788 13,973

14,9621 ,6 2

1,618 1,829

1,515 1,2

FY2015 FY2016 FY2017 FY2018 (Mar)

4,819 4,914 4,655 ,804

13,170 11,88814,269 1 ,937

17,98916,803

18,924 16, 0

FY2015 FY2016 FY2017 FY2018(Mar)


OUR HEALTHY BALANCE SHEET

In THB’000 2015 2016 2017 2017 (Mar) 2018 (Mar)

Total Asset 17,989,158 16,802,595 18,924,143 19,436,017 19,740,675

Total Liabilities 13,170,242 11,888,244 14,269,126 14,807,001 14,936,819

Total Shareholders' Equity 4,818,916 4,914,351 4,655,017 4,629,016 4,803,856

Total Income 3,969,184 3,668,575 3,261,083 970,790 835,504

Net Income 1,019,231 974,490 638,629 256,939 148,839

Net Income per share 1.79 1.71 1.12 0.45 0.26

The Weighted Average Number of Ordinary Share (Thousand Share) 570,814 570,814 570,814 570,814 570,814

ASSETS (THB’M) LIABILITIES & EQUITIES (THB’M)

Others Securities Business

Receivable - Net

Investments- Net Cash and Deposit with

Financial Institution Liabilities Shareholders’ Equity

28

2015 2018 (Mar) 2017 2016 2015 2016 2017 2018 (Mar)


RETURN ON EQUITY RETURN ON ASSETS

GROSS / NET MARGINS VARIABLE / FIXED COST TO REVENUE


OUR FINANCIAL RATIOS

66.8% 65.6% 61.2%26.5% 19.6% 17.9%

2016 2017 201 Gross Margin Net Margin

29

36.3% 39.7% 46.3%30.5% 35.4% 31.2%

2016 2017 201 Variable Fixed Cost

75.1% 77.5%66.8%

5.8%3.6% 3.1%

2016 2017 201

19.8%13.4% 12.6%

2016 2017 201

* annualized to be full year * annualized to be full year



OUR P&L

30

2015 2016 2017 2018* 2017 (Mar) 2018 (Mar)

Total Revenues Total Expenses (excl. corporate tax) Net Profit

3,669

2,445

974

3,261

2,460

639

3,969

2,688

1,019

3,344

2,608

596

* annualized to be full year

652 836

971

257

652

149



OUR COMMON SIZE FINANCIAL STATEMENT

COMMON SIZE FINANCIAL STATEMENT 2015 2016 2017 2018

Total Income 100% 100% 100% 100%

Brokerage fees 66.11% 70.60% 60.67% 65.99%

Fees and services income 4.25% 2.07% 8.37% 0.76%

Gain(loss) on trading in securities 1.97% 1.94% 3.42% 5.55%

Interest and Dividend Income 26.26% 23.93% 25.31% 25.50%

Other income 1.41% 1.46% 2.23% 2.20%

Total Cost 100% 100% 100% 100%

Variable Cost 58.86% 54.34% 52.87% 59.75%

Fixed Cost 41.14% 45.66% 47.13% 40.25%

Total Assets 100% 100% 100% 100%

Cash 2.16% 2.11% 2.08% 1.77%

Investment 1.08% 3.84% 10.85% 12.24%

Account Receivable 93.39% 89.33% 81.88% 81.19%

Other Assets 3.37% 4.72% 5.19% 4.80%

Total Liabilities 100% 100% 100% 100%

Account Payable 18.10% 29.66% 26.61% 18.18%

Accrued Expense 4.06% 4.22% 2.12% 1.64%

Other Liabilities 77.84% 66.12% 71.27% 80.18%

31



OUR CREDIT OUTLOOK & NCR

Details of Doubtful Account Receivable 2015 2016 2017 2018

Account receivables (Old Margin Loan) – NPL before 1999 240,486 240,486 240,486 240,486

Account receivables (New Margin Loan) – NPL after 1999 0 0 54,338 54,338

Account receivables - overdue cash a/c before 1999 807 807 807 807

Account receivables - overdue cash a/c after 1999 4,839 4,945 5,511 4,902

Accrued interest receivables - margin loans 14,185 14,185 14,185 14,185

Allowance for doubtful accounts -248,281 -248,323 -261,916 -265,819

2015 2016 2017 2018

NCR 38.51 45.34 24.47 28.84

Allowance for doubtful accounts 2015 2016 2017 2018

Beginning balance of period 260,099 248,281 248,323 261,916

Add Doubtful accounts 347 192 13,698 4,555

Less Reversal of doubtful accounts -12,165 -150 -105 -652

Ending balance of period 248,281 248,323 261,916 265,819

Bad Debt and Doubtful Accounts 2015 2016 2017 2018

Provision for new Doubtful Debt 347 192 13,698 4,555

Received payment from Doubtful Debt -12,165 -150 -105 -652

Total -11,818 42 13,593 3,903

32

MAYBANK KIM ENG SECURITIES (THAILAND) PLC.

HEAD OFFICE :

The Offices at Central World, 19th, 20th-21st Fl.,

999/9 Rama I Road, Pathumwan

Bangkok 10330, Thailand

Telephone : 66 (2) 658-5000

Fax : 66 (2) 658-6301

Customer Service Hotline :

Telephone: 66(2) 658-5050

Email: [email protected]

Website: www.maybank-ke.co.th

DISCLAIMER

This presentation was prepared exclusively for the benefit and internal use of the recipient and does not carry any rights of reproducing

any part of this discussion paper to any party. This presentation is preliminary in nature, and is incomplete without any proper reference

to, and should be viewed solely in conjunction with, the oral briefing provided by The Maybank Group. No part of this document may be

reproduced or copied in any form or by any means without prior written permission or consent of The Maybank Group.

In preparing this presentation, we have assumed that all the information in all publicly available sources and those provided by the

management and promoters are accurate and reasonable. Accordingly, the information has not been independently verified. No warranty

or representation, express or implied, is made with respect to the information set out in this presentation, nor will The Maybank Group

be responsible for the consequence of reliance on any opinion or statement set out herein.

Please note that this presentation is an outline on an indicative basis and does not represent a commitment from The Maybank Group to

finance on behalf of the recipient of this presentation in any form. This presentation would include but are not limited to those

summarised herein and are subject to market conditions at the time of documentation.

This presentation was prepared based on regulations and guidelines currently in force which are subject to changes from time to time. If

the time for the implementation of our recommendation extends into the future, our findings and recommendations may not necessarily

apply due to changing business and regulation conditions. Accordingly, we suggest continual discussions, especially prior to any

implementation of our recommendation to confirm its appropriateness.

Prior to entering into any transaction contemplated hereby (a “Transaction”) you should determine, without reliance upon The Maybank

Group, the economic risks and merits (and independently determine that you are able to assume these risks), as well as the legal, tax

and accounting characterisations and consequences of any such Transaction. In this regard, by accepting this presentation, you

acknowledge that (a) we are not in the business of providing (and you are not relying on The Maybank Group for) legal, tax or accounting

advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and

qualified legal, tax and accounting advice and (d) you should apprise senior management in your organisation as to such legal, tax and

accounting advice (and any risks associated with any Transaction) and our disclaimer as to these matters.

corporate presentation - stock exchange of thailand · corporate presentation september 2018 ....

Documents