Presentation to Shareholders

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Belinda Cain
5 years ago
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1 Presentation to Shareholders

2 Agenda 1 Introduction Financial Overview Where We Are Today Going Forward Final Remarks 2

3 Corporate Structure AirAsia Berhad Retail / Institutional Investors Tune Money Sdn. Bhd % 27.95% 55.85% Tune Ins Holdings Berhad (TIH) 100% 100% 83.3% 80% Tune Money Life Re Ltd (TMLR) Tune Money GenRe Ltd (TMGR) Tune Insurance Malaysia Berhad (TIMB) 2 Tune Insurance (Labuan) Ltd (TIL) 3 Notes: 1. Shareholders: Tune Group Sdn. Bhd. (42.64%) and CIMB SI II Sdn. Bhd. (25%). Tune Group shareholders: Tan Sri DrTony Fernandes (50%) and Dato Kamarudin Meranun (50%) 2. The remaining 16.7% is owned by minority and unrelated shareholders. 3. The remaining 20.0% is owned by Multi-Purpose Capital Holdings Berhad 100% Capital OCA Berhad (dormant) 3

4 Our Journey So Far Q3 FY09 Set up Labuan based captive JV Tune Insurance Labuan 2010 Q4 FY10 Management team enhanced to realize the full potential of the Insurance opportunities 2011 Q2 FY11 Formed TMGR and TMLR & signed 1 st Collaboration Agreement with AA. TIH was formed as the Group Holding Company Q4 FY 11 First premiums received in TMGR 2012 Q2 FY12 Acquired Oriental Capital Assurance (renamed to Tune Insurance Malaysia Berhad) Q3 FY12 Signed Distribution Agreement with AA & Tune Hotels to manage Travel Insurance Q1 FY13 Listed on Main Market of Bursa Malaysia with market cap of RM 1 billion. Q2 FY13 1. Signed CSPA to acquire Indonesian Gen Insurance Co. 2. Signed Strategic Partnership with Malayan Insurance to manage CEBU Pacific Air Int l Passenger Travel Insurance 3. TIH and TMGR (RI Co) were assigned A 1 /P1 ratings from RAM Services 4

5 Our People & Partners Our Directors Our Employees Our Group Management Team Our Partners 5

6 Financial Overview 6

7 TIH FY2012 Key Highlights Operating Revenue RM226.3m Investment Income RM 11.4m Profit After Tax RM 48.6m FY FY FY FY FY FY2012 Significant increase in Operating Revenue and Investment Income following acquisition of OCA Increase in PAT achieved despite significant costs in relation to IPO and acquisition of OCA in particular financing costs 7

8 ONLINE FY2012 Key Highlights Gross Written Premium RM 70.5m Net Earned Premium RM 68.0m Profit After Tax RM 37.3m +26.5% +25.0% +8.4% % profit margin maintained Japan and India launched Increasingly regionally diversified PAT growth slower due to marketing costs and increased staff strength 8

Geographical Diversification in Online Business Singapore 6% (6%) China 6% (4%) Others 5%(1%) Singapore 5% China 6% Others 6% Indonesia 13% (13%) Malaysia 50% (57%) Indonesia 16%

9 Geographical Diversification in Online Business Singapore 6% (6%) China 6% (4%) Others 5%(1%) Singapore 5% China 6% Others 6% Indonesia 13% (13%) Malaysia 50% (57%) Indonesia 16% Malaysia 47% Thailand 19% (19%) Thailand 20% 6.0 million Policies Issued in million Policies Issued in 4Q 2012 Malaysia -57% in FY 2011, 50% in FY 2012, 47% in 4Q

10 TIMB FY2012 Key Highlights Gross Written Premium RM 143.1m Net Earned Premium RM 90.4m Profit After Tax RM 28.7m Significant transformation of the business Focus on bottom line as opposed to top line sales leading to a reduction in GWP and NEP CAR increased from 177% to 226% Note: Pro forma results were prepared to reflect the financial result for FY2011 had the TIMB acquisition been made in

11 TIH 1Q 2013 Key Financial Highlights 1 Operating Revenue RM 86.7m ( mil) Q Q 2013 Investment Income RM 4.3m ( mil) Q Q 2013 Profit After Tax RM 15.2m ( mil) Q Q 2013 Borrowings Nil ( mil) FY2012 1Q 2013 Shareholder s Fund RM 307.2m ( mil) Earnings Per Share 2.07 sen Note: 1. Unaudited results - FY2012 1Q

12 Where We Are Today 12

13 Our Objectives Leverage on the Growth of AirAsia s Businesses Currently in 14 out of 21 markets where AirAsia operates Continue to manage insurance needs of AirAsia s customers Expand into new markets alongside AirAsia Note: Objectives as stated in IPO prospectus. Improve Online Take-up Rates & Tailor our Sales & Marketing Efforts Improve consumer education through advertisements, telemarketing etc Leverage our access to brand recognition of AirAsia and Tune Companies Tailor our product offering, sales and marketing efforts to markets beyond Malaysia, Thailand, Indonesia Replicate & Expand Travel Insurance Business Model Expand our travel insurance business by establishing tie-ups with other partners e.g. regional airlines, Expedia Leveraging our TIPG system, strong local relationships and onthe-ground experience Capture Synergies from TIMB Integration & Diversify Product Offering Capture underwriting revenue previously ceded to third party insurance partners in Malaysia Improve profitability and portfolio mix of TIMB s products Improve effectiveness of TIMB s existing distribution network and IT systems Leverage AirAsia and Tune Companies other businesses for marketing TIMB products Enhance Revenue Streams via Strategic Acquisitions Selectively seeking opportunities to acquire businesses with the relevant licenses in our core SEA markets Broaden our ability to offer a range of products in underpenetrated markets 13

14 Leverage on the Growth of AirAsia s Businesses AirAsia Markets Brunei Our Markets Myanmar launched this year Travel insurance for Zest Air South Korea Malaysia Thailand Indonesia Singapore Australia Targeting to be in 18 markets by end 2013 China Macau Hong Kong Philippines Cambodia Sales up 26% YoY Taiwan Vietnam Laos India Japan Myanmar Saudi Arabia Nepal 14

15 Improve Online Take/up Rates & Tailor our Sales & Marketing Efforts Brochure Offline Online Bunting Airport adverts Education via social media Video on YouTube, weekly challenge on Facebook and Twitter Billboard Inflight Ads Integrated Campaign In-flight Magazine MATTA Ground activation Radio Ad Online Ads Targeted Online banners ads Facebook Application TUNETASTIC RACE Car wrap/mobile advertising Targeted Monthly edm 15

16 Replicate & Expand Travel Insurance Business Model Strategic partnership with Malayan Insurance Co. Inc. (MICO) in the Philippines Partnership within AirAsia/ Tune Group Insurance for Tune Hotels guests MICO Leading non-life insurance co. in Philippines Cebu Pacific Air Philippines largest carrier Travel insurance for Cebu Pacific Air passengers w.e.f. 13 June Note: 1. For passengers departing from HK, Macau, Msia& Spore to the Philippines Launched AA Expedia (white label) in Malaysia & Thailand AAGO in 2H 2013 Enablers RAM Rating for TMGR (claims paying ability): Long term A 1 Short term P1 Outlook -stable 16

17 Capture Synergies from TIMB Integration & Diversify Product Offering Securing business opportunities within Tune Group companies & partners Recruiting quality agents to market profitable products 1,023 Total agents 1,078 Total agents Q 2013 Rebalancing portfolio mix Misc 17% Fire 6% Misc 8% PA & Health 5% Motor 47% Marine 34% PA & Health 22% Marine 12% Motor 27% Fire 22% 1Q Q

18 Notable Deals Salcon Berhad Star Publication Favelle Favco Berhad Emico Holdings Berhad Telco Corporation (M) Berhad Berhad Boon Siew Group Kossan Group Evergreen Fibreboard Berhad Century Logistics Holdings Berhad Headboard Berhad London Biscuits Holdings Berhad Press Metal Berhad Tomypak Berhad Yinson Holdings Berhad Ralco Corporation Berhad Versatile Creative Berhad Knee San Berhad Teck Seng Holdings Berhad 18

19 Enhance Revenue Streams via Strategic Acquisitions Ang Andi Bintoro Meilyana Bintoro Ang Andi Bintoro 78.5% 21.2% 0.26% 30% 70% PT Tune Batavia Insurance 1 Target to own 70% equity in PT Batavia MitratamaInsurance Total investment: Approximately USD 9 million (depending on NTA upon completion) Retain 30% profit from Indonesian travel insurance business & initiate regional footprint Target completion: Q Note: 1. Name is for illustration purposes only 19

20 Going Forward 20

21 Continued Growth in 2013 Grow with AirAsia Increasethenumberofcountriesweoffertravelinsurancetoatleast18 Provide travel insurance for Zest Air in the Philippines following acquisition by AirAsia Provide travel insurance for AirAsia India customers Improve online take-up rates and tailor sales& marketing Rebranding of AirAsia Insure to Tune Insure, aiding brand build in new geographies Targeted campaigns and educational videos especially via social media Digital advertising and remarketing via Google to be launched in June 2013 Replicate and expand travel insurance business model Management of travel insurance for passengers of Cebu Pacific Air. Strengthen online direct distribution of simple insurance products via Digital Direct Marketing Capture synergies from TIMB integration and diversify product offering Maintain reduction in motor insurance per 1Q 2013 aiding continued underwriting profits Continued recruitment of agents with track record of profitable business Continued development of profitable retail products with high retention. Strategic Acquisitions Complete acquisition and integration of 70% stake in PT Batavia MitratamaInsurance in Indonesia. 21

22 Looking Forward To Business-to-Consumer Tune Insurance Malaysia Berhad Improving technology.. Increasing productivity Strengthening distribution channels I Management Information Information System BUSINESS INTELLIGENCE Product and process enhancement 22

23 Dividend Payment Target FY2013 dividend payment Minimum 40% of Profit After Tax 23

More than 20,000 a day Note: 1. Based on share price of RM1.

24 ThankYouforYourContinuousSupport&TrustInUs Market Capitalization RM1.5 billion 1 Global Presence 15 Countries & Territories 2 Customers More than 20,000 a day Note: 1. Based on share price of RM1.99 on 17 June 2013 (mid day) 2. Includes Hong Kong and Macau as individual markets 24

US$82,814m. Total assets. US$3,403m. Net debt. By Sector # US$411m Property. US$157m Insurance broking & financial services.

US$82,814m. Total assets. US$3,403m. Net debt. By Sector # US$411m Property. US$157m Insurance broking & financial services. Jardine Matheson Group Profile 2018 Jardine Matheson Holdings Limited 2017 Financial Highlights * US$83,808m Gross revenue US$4,378m Underlying profit before tax + US$82,814m Total assets 444,000 People