SAWAD: Digital Roadshow Q3/2025 SRISAWAD CORPORATION PUBLIC COMPANY LIMITED

Performance Highlights and Strategic Insights

Overview of Third Quarter Performance

• The speaker begins by highlighting the stability of their portfolio over the past five quarters, noting a slight shrinkage as part of a balance sheet cleaning effort to ensure future growth.

• In Q3, the portfolio showed a 1% growth, primarily driven by a 3.4% increase in the title loan business despite a 5% decrease in high purchase portfolios.

• The company is focusing on quality contracts; while the number of contracts has increased due to requiring down payments, overall lending amounts have decreased.

Cost Efficiency and Asset Management

• There has been a significant reduction in costs, particularly losses on sales which have dropped by approximately 54-55%, attributed to nearly eliminating repossessed assets.

• The stability in used car prices is noted as demand shifts from new cars to used cars due to limited financing options available from other companies.

Historical Context and Growth Strategy

• Founded in 1979, the company has evolved its offerings including cash loans for vehicles and land. A joint venture with the government aimed at improving access to funding was highlighted.

• Following this partnership, there was substantial growth in motorcycle cash loan portfolios from around 6 billion to approximately 17-18 billion before ending the joint venture.

Corporate Structure and Product Offerings

• The corporate structure includes various units focused on different lending services such as title loans and motorcycle cash loans. Fast Money was previously involved with government partnerships for motorcycle financing.

• Key products include auto back loans (car/motorcycle/land for cash), unsecured personal loans governed by Thailand's central bank, and new motorcycle higher purchase agreements.

Regulatory Compliance

• The company is actively engaging with Thailand's central bank to ensure compliance with regulations regarding higher purchase products that will be enforced within three years.

Business Strategy and Customer Focus

Target Customer Base

• Our primary customers are those unable to access traditional banking services, often due to banks refusing loans.

• An increasing number of customers are turning to us for liquidity as banks tighten lending practices.

Business Diversification and Technology Integration

• We pride ourselves on being a well-diversified company in terms of both geographical reach and product offerings.

• Technology plays a crucial role in mitigating risks associated with lending, allowing us to maintain constant communication with our customers.

Branch Operations and Efficiency

• As of the end of Q3, we operate 5,787 branches; however, growth has been modest recently.

• Introduction of tablets for staff aims to replicate branch benefits at a lower cost, enhancing operational efficiency. One tablet is designed to offer the same services as one branch.

Customer Interaction and Product Offerings

Applications for Customer Engagement

• We have developed two applications: one for internal staff communication and another for customer interaction. Customers can access signed paperwork and purchase insurance through our app.

• The goal is to ensure continuous engagement with customers while providing them with essential financial products tailored to their needs.

Financial Performance Overview

• By the end of Q3, our debt-to-equity ratio stands at 1.6 times, which we believe is among the lowest in the non-bank sector. This indicates strong financial health relative to peers.

• Our portfolio size has stabilized after completing balance sheet cleaning processes; we aim for growth primarily in high-margin products like motorcycle loans and cash cars moving forward.

Financial Metrics and Asset Management

Income Growth Insights

• In Q3, total income reached approximately 1.44 billion; other income saw slight growth due to revaluation gains from subsidiary stock holdings amounting to around 85 million (one-time gain).

Reprocessed Assets Trends

• Reprocessed assets decreased from 1.9 billion last year to 1.55 billion this quarter due to effective bad debt management strategies implemented by our subsidiary company that specializes in this area.

Loss Management and Portfolio Quality

Loss on Sales Reduction

• Losses on sales have significantly decreased from nearly 500 million last year’s first quarter down to about 133 million this quarter, indicating improved asset management practices post-cleaning process completion.( t =880 s )

Non-performing Loans (NPL) Analysis

• NPL figures show an increase but remain manageable within company limits; absolute NPL grew by only 70 million despite overall portfolio stability.( t =926 s )

Cost Management Strategies

Cost of Fund Dynamics

• The cost of funds remains stable quarter-on-quarter but appears higher percentage-wise due to loan repayments affecting calculations.( t =964 s )

• Recent bond issuances have yielded lower coupon rates compared to previous tranches thanks largely to credit rating upgrades and reduced benchmark rates.( t =998 s )

Future Growth Projections

• Management plans focus on high-margin products; expectations indicate that higher purchase products will constitute about 25% of total portfolio mix once balance sheet cleaning concludes.( t =1062 s )

Portfolio Overview and Growth Insights

Key Highlights on Portfolio Performance

• The portfolio is showing a positive trend, particularly in higher-margin products, which have been consistently growing since the first quarter.

• Confirmation provided to investors that the company has successfully completed its cleaning process regarding non-performing loans (NPL), primarily linked to higher purchase products.

Recap of Business Strategy and Confidence Building

• The third quarter results align with management guidelines and business plans, indicating continued growth in the title loan sector.

• Emphasis on the company's 45 years of experience in the title loan business serves to bolster investor confidence.