Status Quo and Outlook ofFinance Business in CambodianMarket28th May 2013www.wedge-hd.com
1Cambodia Last Week2

3

Reference： Presentation of Steve Jobs 2010

Faster4

Heavier

5

More people

6Easier7

Motorcycles

Infrastructure of Grass-root
economies
8

Finance develops industry
BankMicrofinance

Mr. Eiichi Shibusawa

9

Heavy Industries

Grass Root Economy

Acceleration of industry infrastructureof Grass-root Economies with Finance

10The role of the finance business To accelerate the economic development of thegrowing market
Better life andBusiness withmotorcyclesThedevelopment ofthe grassroots
economyIncrease eligible
people to buy
motorcycles

Motorcycle
demandProvision ofcredit(Economic circulation through motorcycle finance) From Thailand & Cambodia to ASEAN’s economic
infrastructure11

Business ModelofFinance Business

12Type of Business

Lease
Contracts

GL&GLF
Payment

Lease
Payments

Customers

CreditCustomer Profile
Screening Screening Request
Lease Intention
Motorcycle Dealers
Motorcycle Delivery

13

Deployment of Finance Business ： ARFC Vision
 Business expansion from Thailand throughout ASEAN
 Deployment as an ASEAN Regional Finance Company

Myanmar
GDP $ 45.4 billion
GDP/person $ 742
Population 47.9 million

Thailand
GDP $ 318.9 billion
GDP/person $ 4,992
Population 69.1 million

ASEAN 10 countries
GDP $ 1,865.4 billion
GDP/person $ 3,149
Population 592.29 million

Laos
GDP $ 6.46 billion
GDP/person $ 1,003
Population 6.2 million
Viet Nam
GDP $ 103.5 billion
GDP/person $ 1,173
Population 87.8 million

Cambodia
GDP $ 11.62 billion
GDP/person $ 813
Population 14.1 million

Indonesia
GDP $ 706.75 billion
GDP/person $ 2,974
Population 239.8 million

Superiorities ofOur Business in Cambodia

15

Expansion to Cambodia

Market on the Boil.
First & Only Leasing Company
GL Method

16

Expansion to Cambodia

17High Growth Potential in Cambodia Markets
 Per capita GDP expansion and high GDP growth continues
Nominal GDP per capita in Cambodia
1000
900
800
700

US$

600
500
400
300
200
100018Published by：IMF World Economic
Outlook
www.ecodb.net※GDP& GDP growth rates
of 2011 & 2012 are estimates

Demographic Dividend
 Long-term market growth is also expected from thedemographic
Japan 1950
90-94
75-79
60-64
45-49
30-34
15-19
0-4-2019-1001020

Geopolitics Potential
 Southern China・Northern Vietnam Economic Belt
 Indian Ocean Rim Economic Zone
 Straits of Malacca Economic Belt Mekong Delta Economic Belt
Mekong RiverDelhiKunming

Calcutta

Mumbai

HongKong

Hanoi
BangkokPhnomPenh

Chennai

Ho Chi Minh

メコンデルタ経済ベル
ト
Kuala Lumpur
Singapore

20Jakarta

Mekong Delta Economic Belt

Bangkok
Population: 80
million

★

750Km

★
Phnom Penh
Population: 1.3
million★
Ho Chi Minh
Population:
6.25 million

21

Reference: ‘Thailand’s Blazing Economy’ (by Tatsuya Konoshita), Nikkei Business Online
http://business.nikkeibp.co.jp/article/money/20071130/142083/?P=1

Expansion in Cambodia

22First and Only Finance Leasing
Company in Cambodia
GLF announced commencement ofoperations late October.
• Cambodian Minister of Commerce also
attended in the press conference23

Dominant market share of Honda

95%
24

Exclusivity agreement for seven years
with HONDA

25

Expansion in Cambodia

26Profit structure and Method cultivatedin Thailand
High
High Profit
Profit Level
Level
High
High Revenue
Revenue

Low
Low Cost
Cost

Relatively
Relatively HighHigh InterestInterestHighHigh Recovery
Recovery Rates
Rates

・・microfinancemicrofinance

27・High・Highlevel
levelLiquidity
Liquidityand
andcollateralvalueofcollateral value ofmotorcycles
motorcycles
・Registry
・Registrysystemsystemand
andproprietary
proprietaryrights
rightsScene of GL’s own auction
 Company auction held in Bangkok and thenorth-eastern provincial areas• Retrieved motorcycles are serviced at ourcompany• Motorcycles are directly sold at company’sauction• Capitals are recovered in a short period oftime

GL’s Method and Customers
GL delivers its service by focusing on theneeds of both type of customers
To meet the demands ofcustomers who want tobuy motorcycles ‘on thespot’・Speedy credit screening
process

Motorcycle
Buyers29

To meet the demandsof dealers who wantto ‘sell more’・Provide tailoredservices for dealers・Strong cooperation
with top operation

Motorcycle
Dealers

A View at the DealersUtilization and Funding in the Global
Development
Methodsupply andbusinessbase
Group Lease PCL.
GL Finance PLC.

Utilization ofexcellent
infrastructure inSingapore
・Procurement ofmulti-currency
・ Procurement of low
interest rates31

Group Lease Holdings
PTE. LTD.

Method utilized
in growthmarkets

GLF

32

33

Expansion Into Cambodia Market
 Decision to advance into the new market ofKingdom of Cambodia in September 2012
 Begin consolidation with our group fromthe 3rd quarter 201334

Sales system established in the capital
Phnom Penh Completed the establishment of sales offices inall stores in the capital area

35Completion of test operations,commencing full scale operations
 Cognitive improvement of new services,and greatly increased customers andnumber of new contracts
 Confirmed the potential number ofcontracts per store is equivalent toThailand Expand operations throughout Cambodia in2013

36

Development foreseen in 2013
Expand operations throughout Cambodia in 2013

37

37

Future Goals
 July 2013 Beginning of Consolidation• Proceed with the enhancement of related services
and product line-up• Continue to expand sales network

 Monthly revenue contribution of 4Q 2013 year(October-December)• Establish sales office at all dealers in Cambodia.
Promoting provincial expansion

 Expansion of operation scale until comparable to2012 Thailand by the end of 2015
• Both sales and profit increases as a result of theaccumulation of portfolio

38

39

Thank You!

Thank you!
Contact details for IR-related inquiries
Wedge Holdings CO., LTD. Management
Administration Department
TEL: 03-6225-2161 / FAX: 03-3548-0566
wedge-ir@wedge-hd.com
http://www.wedge-hd.com

41※*These materials include statements concerning the future, but these statements are not a guarantee offuture results. Furthermore, the content of these materials has not been audited and neither its accuracy
nor certainty is guaranteed.

41