Group Lease announces a 5-year strategic plan to upgrade its Digital Finance model

18 Sep 2018

September 18, 2018 – Group Lease is moving forward with business growth in the next 5-year plan with five pillars of company strategy. In addition, the company prepares to upgrade its “Digital Finance” model to “Life Cycle Finance” and evolve from a “Leasing Company” to “Multi Finance Company” and expects earnings before tax to grow by 164% by 2022, an increase from THB 0.7 billion in 2017 to THB 1.8 billion in 2022.

Mr. Tatsuya Konoshita, Chief Executive Officer of Group Lease Public Company Limited, revealed today not only the forecast of where GL want to be financially in the next 5 years, but also the mission, vision, and values we expect of our company. GL’s mission is to help our customers grow and improve their lives by providing them with innovative, efficient and local financial solutions. We will achieve this by being the leading “GLOCAL finance company” (Global and Local at the same time), using our global reach to bring capital and support to our local customers who need it the most.

As a publicly traded company on the Stock Exchange of Thailand who has partnered with companies such a Honda, Kubota, TrueMoney and others, we are able to bring global resources to local people to empower them to achieve their dreams and improve their lives. We made our low-cost and efficient POS network so that we can achieve our mission. Meeting our mission and achieving our vision only is good if we can do it while being good. Over the next five years, GL will upgrade its “Digital Finance” model to “Life Cycle Finance” and evolve from being a “Leasing Company” to “Multi Finance Company.

“Our goals are a continuation of our current efforts with new efforts too. Doing these will help us reach our financial objections as well, which are important and necessary for us to continue our mission. Portfolio is one of the main drivers of revenue and profitability for our firm and industry, we expect in our base case (middle case in 3 scenarios) that our consolidated portfolio will grow from approximately THB 7.6 billion to THB 12.1 billion by 2022—an increase of 59%. However, revenue will grow quicker than portfolio due to the growth of non-portfolio based revenue such as auction and business services. We forecast revenue to grow from THB 2.7 billion (excluding the disputed loans) in 2017 to THB 4.6 billion in 2022, an increase of 74%” Konoshita said.

Mr. Muneo Tashiro, Chief Operating Officer of Group Lease Public Company Limited, informed that since GL has focused on network and market expansion for the past few years and has already created a solid southeast Asia foundation, we can grow earnings faster than we can grow revenue as we have already incurred much of the expense growth related to expansion and can now enjoy the benefit of rapid earnings growth. Earnings Before Interest and Taxes (EBIT- excluding exceptional allowances and CCF), we expect to grow from roughly THB 0.9 billion to THB 1.9 billion, an increase of 103%. Most importantly, Earnings Before Taxes (including earnings from our CCF investment and excluding exceptional item), we expect to grow by 164% by 2022, an increase from THB 0.7 billion in 2017 to THB 1.8 billion in 2022.

“We at GL at committed to meeting our mission to improve our customers lives. We have reviewed and created a plan to achieve that mission while ensuring our financial success so that we can always continue our mission and continue to expand it to those who need it. Management is excited optimistic and confident on the future of our business” Tashiro concluded.

  5-year strategic plan