3Q2021 OPPORTUNITY DAY
44
“THE GAME HAS CHANGED AND SO HAVE WE” 3Q2021 OPPORTUNITY DAY 18 Nov 2021 FORTH CORPORATION PUBLIC COMPANY LIMITED
Transcript of 3Q2021 OPPORTUNITY DAY
“THE GAME HAS CHANGED
AND SO HAVE WE”
3Q2021OPPORTUNITY DAY18 Nov 2021
FORTH CORPORATION PUBLIC COMPANY LIMITED
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I. Business Overview
II. Financial Performance
III. Business Update and Directions
Agenda
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Forth Corporation Public Company Limited is an organization of a
research and development, manufacturing and distributing electronic
devices, information & Communication Technology Services, and
Comprehensive financial service through automated machine under the
good corporate governance with social and environmental responsibility
for creating sustainable business growth.
Our Vision
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Our Key Milestone
2005 2008 2014 2015 2019
The Company was converted to a Public Company limited,
being listed on “SET” under the stock name "FORTH".
Established Forth Smart Service Company
Limited, a subsidiary company, to
penetrate the new business running
mobile top-up and payment service via
“Boonterm” automatic kiosk.
Spun off Forth Smart Service Company
Limited to be listed on “mai” under the
stock name “FSMART”.
Established Forth Vending Company Limited,
a subsidiary company, to run a business of
Selling beverages & Products through
automatic vending machines.
Established Forth EMS Company Limited
a subsidiary company, for engaging in the
manufacture and distribution of
telecommunication equipment and assembly
electronic parts.
The Company was founded, to operate
business on manufacturing PABX systems
under the trademark of “FORTH” and
Printed Circuit Board Assembly (PCBA)
and electronic equipment manufacturing.
1989
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Over 100 Engineers
R&D department provide wide range of telecom,
electronics and product design from initial research,
viability study, prototypes and final product.
Our Research and Development Center
“เรามความมงมนอยางแทจรงทจะน าเสนอ
สนคาอเลกทรอนกสและโทรคมนาคมทมคณภาพ”
Research Prototype Design
Manufacturing Function Test
Final Product
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Enterprise Solutions Business
Project contracting, procurement, and system installation for government and private sectors
EMS Business
Manufacturing service under trademark of FORTH and customer brands as well as trading of electronic parts and devices
Smart Services Business
Comprehensive financial transaction service and service vending machines for goods and beverages
FORTH’s business has divided into 3 business group
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EMS BUSINESS GROUP
Manufacturing service under trademark of FORTH
and customer brands as well as trading of electronic
parts and devices
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FactoriesFORTH has 2 factories, locating at Phutthamonthon Sai 5, Nakhon Pathom Province.
• 16 SMT line and 6 AI Machines,
• 2 Manual insertion line
• 3 Wave Soldering Machine
• 1 Selective Soldering Machine
• 6 Final Assembly line
o Turnkey manufacturing ServicesThe manufacturer will handle the whole
process including assembly, manufacturing, testing, ordering the components and final shipment.
o Consignment Manufacturing ServicesThe manufacturer receives the parts and
components required for the circuit boards. The manufacturer handle the assembly.
Production Lines
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▪ Consumer Products
▪ Automotive
▪ Communications and Networks
▪ LED Lighting and Traffic System
▪ Industrial and Energy
Turnkey and Consignment ManufacturingUnder customer and Forth Group Brands.
Factories
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Trading electronic parts and devices as well as to be a One-Stop Services for customers.
It’s trusted by world class manufacturers as their authorized distributor, dealer and reseller in Thailand
Electric Component/ Board and Module
Payment/ Display
Tools and Equipment
Power/ Circuit Protection/ Passive Components
Connectors & Sockets/ Semiconductors
Industrial Automation
Components Distribution
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ENTERPRISE SOLUTIONS BUSINESS GROUP
(Telecommunication Solution Service and Electronic equipment)
Project contracting, procurement, and system
installation for government and private sectors
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MSAN (Multi Service Access Network)Nurse Call SystemGPS TrackingDigital Electricity Meter
Enterprise Solutions Business Group
Traffic Light System and Automatic traffic controller
LED LightingEM (Electronic Monitoring) IP PBX (Private Branch Exchange) and Related Devices
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Trunked Radio
Electronic Monitoring Bogie Crane Smart Metro Grid
Some Projects on Hand
Comprehensive financial transaction service
and service vending machines for goods and
beverages
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SMART SERVICES BUSINESS GROUP
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Smart Services Business Group
EV ChargerBoonterm kiosk Smart Petrol Machine Smart Vending Machine & TAO BIN Robotic Café
Boonterm Kiosk
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Upgraded Kiosks with Camera and Card Reader:
Added more New Service:
• Micro insurance
• Compulsory cars and motorcycle insurance
• Top-up BMTA for public transportation
Added more Financial Service:
• More Banking Agent for Money Transfer Service
• Money Lending
• International Money Transfer
• Money Withdrawal Service
• e-KYC Service (Dip Chip with ID Card)
• e-Banking Account Opening Service
Now, 87 Services are available on Boonterm kiosk
and the kiosk is upgraded with camera and card
reader for new services.
The best automated Top-up and payment service machine
EV Net (Electronic Vehicle Charger)• AC Charging (Normal Charge) and DC Charging (Quick Charge)
• EV Car and Plug-in Hybrid Car Supported
• BeCharger Application / Billing System Supported
Portable Charger
Wall Type Charger
Pedestal Charger
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18# Boonterm Service is on Tao Bin Café as well#
The best-in-class automated cup beverage vending machine
“TAO BIN with 20+ Petty Patents
is a contemporary, healthy and highly convenient Beverage machine,
providing its customers with the high quality and consistent taste of
Thailand's popular drink under a friendly atmosphere.”
“TAO BIN”A Robotic Café
Support Cash and QR Code Payment
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Available 24 hours (24/7)
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FORTH
Enterprise Solutions Business
Smart Services Business
EMS Business
• Turnkey and Consign Manufacture• Electronics components distributor
(Trading)
• Telecom Products and solutions
• Traffic system (Traffic light, CCTV)
• Top-up kiosk • Automate Café Machine• Smart Vending Machine
• LED lighting • Electric meter• Tracking system (GPS)• Etc.
FORTH’s Business Group
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I. Business Overview
II. Financial Performance
III. Business Update and Directions
Agenda
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Financial Performance
37%27% 30%
18% 34%36%
45% 39% 34%
3Q2020 2Q2021 3Q2021
0.40% QoQ
1,7012,451
1,546 1,781659 541 597
1,457
1,262
933
1,907
312 682 722
3,3613,078
2,293
2,196
790 766 678
2019 2020 9M2020 9M2021 3Q2020 2Q2021 3Q2021
Enterprise Solution EMS Smart Service
6,519 6,791
1,7611,997
13.40% YoY4,772
5,884
3Q2021 Revenue increasing 13.4% YoY.
This mainly due to an increase in the revenue of EMS business group from relocation of a customer's production of electronic circuit boards. Even though, the group
of Enterprise Solutions and Smart Service business dropped from the ongoing impact of COVID-19, affecting the slow-down economic activities which had reduced
the purchasing power of middle and lower-tier consumers.
1,989
Core Revenue (Bt mn) Core Revenue Contribution
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Financial Performance
Gross Profit (Bt mn) & Gross Profit Margin
472 520 306
487
123 164 147
264 348
225
398
96133 149
801 663
504
485
172186 141
2019 2020 9M2020 9M2021 3Q2020 2Q2021 3Q2021
Enterprise Solution EMS Smart Service
24% 23% 22% 23% 22% 24% 22%
1,537 1,531
391483 437
11.76% YoY
9.52% QoQ
1,370
1,035
Gross Profit Margin
• EMS business group: 3Q2021 Gross Profit increasing 55.20% YoY, due to the control of variable production expenses in line with the decrease in order volume
and in the past year, the Company recorded a reduction of the allowance for diminution in inventories.
• Enterprise solutions business group: 3Q2021 Gross profit increasing 19.50%YoY, due to the gross profit margin of project works realized in the third quarter of 2021
had a higher gross margin than those of the previous year.
• Smart service business group: 3Q2021 Gross profit decreasing 18.02% YoY, due to the decreased revenue.
Gross Profit Margin
by Business Group
19% 30% 25%31%
20% 21%22%
24% 21%
3Q2020 2Q2021 3Q2021
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Financial Performance
331
439
250
537
130
202151
2019 2020 9M2020 9M2021 3Q2020 2Q2021 3Q2021
7% 5% 6% 5%9% 7% 10% 8%
Net Profit Net Profit Margin
16.15% YoY
25.25% QoQ
Net Profit increasing 16.15% YoY, mainly due to the higher gross profit from EMS business and enterprise solutions business.
Net Profit (Bt mn) & Net Profit Margin
3,541 3,513 3,249
4,076 4,309 4,951
2019 2020 3Q2021
Total Cur. Assets Total Non-Cur.Assets
Total assets
7,822
2,446 2,228 2,391
251 458 363
4,920 5,136 5,446
2019 2020 3Q2021
Total Cur. Liabilities Total Non-Cur. Liabilities Total Equity
D/E
2.1 times
D/E
2.5 timesTotal assets
7,617
Total assets
8,200 D/E
2.4 times
Financial Performance
Total Assets (Bt mn) Capital Structure (Bt mn)
• Assets increased from trade accounts receivable, and inventories.
• Liabilities increased due to the increase of trade account payables.
• Equity increased due to net profit for the period and dividend payment. 24
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I. Business Overview
II. Financial Performance
III. Business Update and Directions
Agenda
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EMS BUSINESS GROUP
Electronic Manufacturing Service and
Distributing Electronic Parts and Tools
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Turnkey and Consignment ManufacturingUnder customer and Forth Group Brands.
▪ Consumer Products
▪ Automotive▪ Communications and Networks
▪ LED Lighting
▪ Industrial and Energy
Electronic Manufacturing Service
PCBA and Box-Build
▪ Traffic Light
▪ Mini ATM
▪ Automatic Café Machine
▪ Etc.
Consign Parts and Turnkey Service
▪ Communication Devices
▪ Tracking Device
▪ EV Charger
▪ Power Supply and adapter
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Turnkey and Consignment Manufacturing
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• Backlog Projects
• Potential Procurement Projects
ENTERPRISE SOLUTIONS BUSINESS GROUP
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InstituteProject
Electronic Monitoring rental (งานอปกรณอเลกทรอนกสตดตามตว)
Department of Probation(กรมคมประพฤต)
On Process 390
Bogie locomotive crane(งานรถโบกปนจนกล)
State Railway of Thailand(การรถไฟแหงประเทศไทย)
On Process 798
Maintenance services the fiber optic cable network (งานบารงรกษาซอมแซมแกไขและปรบเปลยนโครงขายสายเคเบลใยแกวนาแสง)
Ministry of Higher Education, Science, Research and Innovation
(กระทรวงการอดมศกษา วทยาศาสตร วจยและนวตกรรม)
Completed -
Smart Metro Grid(งานระบบสมารทกรด)
Metropolitan Electricity Authority(การไฟฟานครหลวง)
On Process 106
A digital trunked radio system(งานระบบสอสารวทยเฉพาะกจระบบดจทล)
Department of Provincial Administration (กรมการปกครอง)
On Process 506
Total 1,800
As of 30 Sep 2021
ENTERPRISE SOLUTIONS BUSINESS GROUPBacklog Projects
Backlog(MB)
Status
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หนวยงานการไฟฟา 5 2,600
หนวยงานสงกดกระทรวงมหาดไทยและกระทรวงอดมศกษา 2 2,100
หนวยงานสงกดกระทรวงคมนาคม 2 2,000
หนวยงานสงกดกระทรวงยตธรรม 8 3,000
Total 17 9,700
Institute Project Value (MB)
Procurement Projects Plan in 2021-2022
As of 30 Sep 2021
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SMART SERVICES BUSINESS GROUP
• Top-up and Payment Kiosk >> Boonterm
• Smart Vending Machine >> TAO BIN Cafe
Comprehensive financial transaction service
and service vending machines for goods and
beverages
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Counter Cashier by Boonterm
More Services to Come
New Customer Base
• New Services that require
Printed Slips or Face-to-Face
Transactions
• Higher Income Group
• New Customer Data
Boonterm Kiosk
All Services from Kiosks to Counters
• Bank Account Opening
• Identity Verification (e-KYC)
• Deposit/Transfer Service
• Cash Withdrawal
• Money Lending
• International Money Transfer
All Financial Services
Providing 1,300 Services through Counters
Over 1,700 Service Points Nationwide.
Now, 87 Services are available on Boonterm kiosk and
the kiosk is upgraded with camera and card reader for
new services.
Added more New Service:
• Micro insurance
• Compulsory cars and motorcycle insurance
• Top-up BMTA for public transportation
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Smart Touch ScreenAll machines fitted with a 32” TFT
screen. Taking orders via a large touch
screen. Easy to use.
Various Payment MethodsTao Bin supported both cash payment and
QR code payment to ensure the
convenience of your customers.
24/7 SupportsConnected online around the clock, our
24/7 service team can promptly provide a
new setup and support at anytime
100+ choice of drinksUses freshly ground Arabica beans and
recipes of Thailand’s elite baristas to deliver
quality and consistency
Small FootprintBeautifully modern design combined
with an intuitive UI personalized
customer service all in a sqm.
Fully UnattendedA robotic, fully-automated barista
available 24/7 to address audience
demand of varying sizes and cycles
TAO BIN Café คาเฟอตโนมต “เตาบน”
“High quality drink in the most convenient way”
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Customizable the Blend for over 100 menus
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Customizable the Blend for over 100 menus
Over 300+ TAO BIN Café at varieties of Place with Revenue Growing.
*As of 2nd week of Nov 2021
Sale* Glasses a day
0.4 2.7 14.2
12
64
193
0
50
100
150
200
250
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
1Q21 2Q21 3Q21
Sales (mn) ARPU (Bt per month) No. of Service Points
TAO BIN cafés are at the following places344*
49,535
TAO BIN performance keeps rising along with its expansion*
>16,000
Expansion* Provinces
Master Agent* Teams
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18Hospital( 19 service points )
Office Building( 25 service points )
Factory( 42 service points )
Mass Transit System( 8 service points )
Department Store( 26 service points )
BTS Siam/Asok/Saladang/Victory Monument
Central Pinklao/Chaengwattana/Chonburi/Lumpang
Life Asok/IDEO O2The Line wongsawang
Siriraj hospital Bangpoo Industrial Estate
KBank HQ Ratburana
52,297 44,698
Condominium and Residence
( 224 service points )
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As TAO BIN Serves All Types of Beverage, Expecting at least 4-5% of Non-alcohol Beverage Market Share.
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Tao Bin Serves Not only Coffee Menus but Non-alcohol Beverage.
Remark: * Excluding drinking water, Bt56bn.** Including electrolyte drinks, fruity, milk tea, collagen drinks and protein.*** Coffee separated into 3 segments; fresh coffee (Bt27bn), coffee powder (Bt.19bn), ready-to-drink coffee (Bt.14bn).
Non-alcohol Beverage Market 247 Billion Baht*
Coffee60,000 (24%)***
Source: Food Intelligence Center Thailand, Marketeer Online, Manager Online, Bangkokbiznews, SmartSME, Calculated by FSMART
Revenue by Segment Contribution
Soda62,000 (25%)
Energy Drink20,000 (8%)
Tea13,000 (5%)
Milk and Chocolate60,000 (24%)
Others32,000 (13%)**
Unit: million
Coffee(33%)
Soda20%
Milk and Chocolate21%
Tea19%
Others(7%)
• Bottled non-alcohol drinks account for approximately 201 billion Baht• Freshly-made drinks account for approximately 46 billion Baht
Revenue – Material Cost
60% ++ Gross Margin
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6 - 10 Billion Baht a YearSignificant Revenue
18-30 Million Baht a DayRevenue on Avg. 30Bt per Glass
600K – 1,000K Glasses a Day30-50 Glasses per Kiosks a Day
20,000 Tao Bin Café MachineIn 2023
TAO BIN’s Sales and Revenue Expected to Grow Significantly
Actual No. of Tao Bin 12 64 193
Target No. of Tao Bin 800 1X,XXX 20,000
Year 2021F 2022F 2023F
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0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
-
5,000
10,000
15,000
20,000
25,000
1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023
14.2
No. of machine
2.70.4
No. of Machine Sales (MB)
TAO BIN’s Sales and Revenue Expected to Grow Significantly
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• Aircraft Distribution – KODIAK AIRCRAFT
• Aircraft Maintenance Repair and Operations
Service (MROs) – FORTH MRO
NEW BUSINESS AND UPCOMING BUSINESS
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• MROs is a maintenance service center for commercial aircraft and general aircraft for A, B, C, and D check.
• Locate at Don Muang International Airport
• FORTH MRO will be ready for service in 2023
• Authorized Distributor in Thailand
New Business: Aircraft
Maintenance Repair and Operations Service
Statements included or incorporated in these materials that use the words "believe", "anticipate", "estimate", "target", or "hope", or that otherwise relate to objectives,strategies, plans, intentions, beliefs or expectations or that have been constructed as statements as to future performance or events, are "forward-looking statements"within the meaning are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical resultsor those anticipated at the time the forward-looking statements are made.
FORTH undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. FORTHmakes no representation whatsoever about the opinion or statements of any analyst or other third party. FORTH does not monitor or control the content of third-partyopinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement.
Investor Relations
www.investor.forth.co.th
Telephone: 02-265-6700 ext. 1224
DISCLAIMER
