3rd ANNUAL GENERAL MEETING
6 June 2014
TUNE INS HOLDINGS BERHAD
Agenda
1 2013 Overview
2014 Status Update & Key Strategies
Final Remarks
2
3
2
2013 Overview
3
2013 has been a defining year for
4
226.7
388.1
FY12 FY13
Operating Revenue
48.5
72.5
FY12 FY13
Profit After Tax
11.7
20.6
FY12 FY13
Investment Income
TIH - Key Highlights
71.9% 76.0% 49.5%
YoY growth, RM mil
5
70.5
102.6
FY12 FY13
Gross Written Premium
37.3
53.4
FY12 FY13
Profit After Tax
68.0
98.4
FY12 FY13
Net Earned Premium
Online - Key Highlights
45.7% 44.6% 43.2%
YoY growth, RM mil
Policies Issued Customer Enquiries Handled
YoY growth, RM mil
6.0
8.0
FY12 FY13
13.9
25.1
FY12 FY13
YoY growth, thousand
33.9% 80.7%
6
250.4
340.3
FY12 FY13
Gross Written Premium
28.6 27.1
FY12 FY13
Profit After Tax
137.6 140.5
FY12 FY13
Net Written Premium
TIMB - Key Highlights
89.9 mil Underwriting profit of 6%2.9 mil
RM mil
7
2014 Status Update & Key Strategies
8
FY2012
Our journey...
Q3 FY09Set up Labuan based captive JV “Tune Insurance Labuan”
Q4 FY10Management team enhanced to realize the full potential of the Insurance opportunities
Q2 FY11Formed TMGR(now known asTGR) and TMLR(now renamedTLR) & signed 1st
CollaborationAgreement withAA. TIH wasformed as theGroup HoldingCompany
Q4 FY 11First premiums received in TMGR
Q2 FY12Acquired Oriental Capital Assurance (renamed to Tune Insurance Malaysia Berhad)
Q3 FY12Signed Distribution Agreement with AA & Tune Hotels to manage Travel Insurance
Q1 FY13Listed on Main Market of Bursa Malaysia with market cap of RM 1 billion.
Q2 FY131. Signed Strategic
Partnership with Malayan Insurance to manage CEBU Pacific Air Int’l Passenger Travel Insurance
2. TIH and TGR were assigned “A1/P1” ratings from RAM ServicesQ4 FY131. Launched CEBU
TravelSure to Thailand market
2. Received Brand Award from The Brand Laureate for 2013
FY2013
1. Formed and launched JV with Cozmo travel in UAE
2. Set up Tune Protect Commercial Brokerage LLC (Tune Protect) in UAE to provide travel insurance to Air Arabia passengers
3. Investment in 49% equity in Osotspa Insurance Co., Thailand
4. Investment in 49% equity in Permpoonsub Broker Public Co. Ltd (PPS) Thailand
5. Launched Tune Insurance Hotel Guest Cover for Tune Hotel guests in Malaysia
6. Launched Human Resource’s Risk Mgmt Solution Product for 600,000 SMEs In Malaysia
FY2014
FY2011
FY09-FY10 9
Notes:
1. Shareholders: Tan Sri Dr Tony 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
4. The remaining 51% is owned by various Thai partners including Osotspa Co., Ltd
5. The remaining 51% is owned by Cozmo Travel LLC
CIMB SI II Sdn Bhd.Tune Group Sdn.
Bhd.1 AirAsia Berhad
Tune LifeRe Ltd(TLR)
Tune GenRe Ltd(TGR)
Tune Insurance Malaysia Berhad
(TIMB)2
Tune Insurance (Labuan) Ltd
(TIL)3
25.07% 16.19%
100% 100% 83.3% 49%
14.06%
Tune Direct Ltd(TDL)
Tune Direct Malaysia Ltd
(TDM)
100%
100%
Retail / Institutional Investors
44.68%
Tune Ins HoldingsCorporate Structure
10
OsotspaInsurance Public
Co. Ltd (OSI)4
80%
Tune Protect Commercial
Brokerage LLC (Tune Protect) 5
49%
PermpoonsubBroker Public Co. Ltd (PPS)4
49%
TIH - 1Q 2014 Key Financial Highlights
Operating Revenue (RM’mil) Profit After Tax (RM’mil)
Earnings Per Share (sen) Shareholder’s Equity (RM’mil)
TIMB CAR ratio (%) Borrowings (RM’mil)
86.7114.0
1Q 2013 1Q 2014
15.2 20.4
1Q 2013 1Q 2014
269.7
283.5
FY2013 1Q 2014
360.5
379.2
FY2013 1Q 2014
2.07 2.56
1Q 2013 1Q 2014
RM 20.4mRM 114.0m
2.56 sen RM 379.2m
283.5%NIL
11
24%
34%31%
14%
5%
12
Leverage on AirAsia’s Growth and Assets
Replicate & Expand Travel Insurance Business Model
Establish Digital Innovation and Drive Business to Consumer Platform
Enhance Revenue Streams via Strategic Acquisitions
Expand to all markets where AA operates including new markets
Manage insurance needs of AA’s customers beyond Travel Insurance
Tailored marketing efforts to increase penetration rate
Plans & Strategies
Capture Synergies
from TIMB
Integration &
Diversify Product
Offering
Broaden our ability to offer a range of products
Expand beyond travel insurance through Business-to-Consumer (B2C) distribution
Selectively seeking opportunities to acquire businesses with the relevant licenses in Thailand & Indonesia
Capture underwriting revenue previously ceded to third party insurance partners in these markets
Improve profitability and portfolio mix
Develop good quality sales / distribution channels
Technology improvement to enhance operational efficiency and efficacy
Leverage on opportunities within and via AirAsia and Tune Group of Companies
Expand our travel insurance business by establishing tie ups with other partners e.g. other airlines, hotels and travel agents
Leverage on knowledge and experience gained from new market entrance / partnerships for future partnerships
Our aspiration - to be a RM6+ billion market cap company by FY2018
Leverage on AirAsia’s Growth and Assets
Effective partnerships across 17 AsiaPacific countries & territories
Launched Myanmar & Taiwan in FY13
Launched Brunei in Q1FY14
Signed DA with Thai Air Asia X inQ1FY14
Readying for AA India launch
13
Hong Kong
Thailand
India
Malaysia
Singapore
Indonesia
Australia
Philippines
China
Taiwan
Japan
Vietnam
Brunei
Macau
Cambodia
Myanmar Laos
I BUSINESSINTELLIGENCE
2014 - Continue to enhance MIS & BI
Replicate & Expand Travel Insurance Business Model
Launched Tune Insurance Hotel Guest Coverfor Tune Hotel guests in Malaysia
Made way into MENA region - launched Cozmo in April 2014
Launched Air Arabia in May 2014
2014 – Additional tie-ups14
Establish Digital Innovation and Drive Business to Consumer Platform
Tune Drive CareTune Guard Tune EZ Term
Launched 3 products namely Tune Guard, Tune Drive Care & Tune EZ Term
Progressively focus on B2C products to drive traffic to the website via eDM
15
Capture Synergies from TIMB Integration & Diversify Product Offering
1Q 2013
1,144Total agents
Home Guard Insurance
SME Group Hospital & Surgical Insurance Tune Sihat Medical
Insurance
Human Resource’s Risk Management Solution Product
All-in-one SME Insurance Package
2014 - Continued bottom line growth
Personal Accident Safe
Medident Dental Insurance
Office Insurance
New Products launched in FY13 & Q1FY14 Well balanced of Portfolio Mix
2013
1,140Total agents
1Q 2014
Recruitment of quality agents continue
Fire22%
Motor, 27%
Marine, 3%
PA & Medical
22%
Misc26%
Fire, 21%
Motor, 22%
Marine, 12%
PA & Medical,
32%
Misc, 13%
1Q 2014Home Owner
Insurance
16
Selection of recent deals across various industries
Petronas National Berhad Shell Refining Company Yinson Holdings Berhad KLK Group Bell Group Kossan Group
Oil & Gas Refinery Oil & Gas Plantations Crude Palm Oil Rubber
Daihatsu Toyota Hyundai Naza Group MUI Group Muhibbah Engineering (M) Bhd
Auto Auto Auto Conglomerate Conglomerate Construction
Emico Holdings Berhad Boon Siew Group Star Publication (M) Berhad Ann Joo Resources Hiap Teck Venture Berhad Press Metal Berhad
Property Property Media Steel Steel Aluminium
AirAsia Salcon Berhad Favelle Favco Berhad Century Logistics Tomypak Berhad Evergreen Fibreboard
Airline Water & Sanitation Crane Technology Logistics Services Packaging -Food Manufacturing -Fibreboard
London Biscuits Holdings Berhad
Ralco Corporation Berhad
Versatile Creative Berhad Khee San Berhad Teck Seng Holdings Berhad
Heveaboard Berhad
Manufacturing - Food Manufacturing –Plastic containers
Manufacturing - Paper Manufacturing -Candy Manufacturing - Plastic Manufacturing - Furniture
17
Enhance Revenue Streams via Strategic Acquisitions
Thailand
A 49% stake in Osotspa Insurance Public Co. Ltd (OSI)by TIH, 26% held by existing shareholders & 25% heldby other Thai partners
OSI has a balanced product portfolio consisting ofamongst others, fire, motor, marine andtransportation insurance.
Moving forward, OSI will be the underwriter of ourtravel insurance business in Thailand
Will continue to provide insurance for Osotspa Co.,Ltd, a strong household name in the production ofbeverage drinks and with diversified businesses acrossvarious industries
Focus on leveraging merged entity’s group assets andnetwork to achieve greater synergies
Next acquisition target
Indonesia
18
Continuous Support from Our People & Partners
Our Partners Our Directors Our Employees
19
Final Remark
20
To our shareholders, customers & business partners, we are grateful to you for your
continued support
21
Gives you access wherever you are