SMEs Financing amid the Financial Crisis by wulinqing

VIEWS: 12 PAGES: 58

									SMEs Financing amid the Financial Crisis
                  The Case of Thailand




                            KASIKORNBANK PLC.
                                   10 June 2009
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
Thailand Economic Overview
                             • Global economic crisis would have
                               significant impact on Thailand
                               export sector.

                             • Private consumption and investment
                               are also affected by political turmoil
                               in the past few years.

                             • Thus, Thai economy in 2009 is
                               expected to be subtracted by 3.5%,
                               the first time since 1998.

                             • However, we expect that Thai
                               economy could gradually recover in
                               the latter of 2009, and will fully
                               recover in 2010.
SME Market in Thailand
                                    Thailand‟s SME GDP Growth
                                                                         • There are about 2.4 million SMEs
                                                                          in number.
                                                                         • SMEs GDP of 3.21 trillion Baht
                                                                          accounts for 43.2% of national
          2006          2007          2008     2009F        2010F         GDP
                                                                         • In 2009, SMEs GDP is likely to be
 Thailand‟s Private Sector                                                deducted by 1.4% due to
 Employment Proportion                        Thailand‟s GDP Structure
                                                           Others
                                                                          declining in export as a result of
                                                            5.1%
                                                                          global crisis.
      LEs
      23%                                                                • Employment of SMEs is more
                               as of 2008        LEs         SMEs
                 SMEs                                        43.2%        than 3 times higher than that of
                                                51.8%
                  77%
                                                                          Large Enterprises


Source: OSMEP
SME Definition in Thailand
2 groups of SMEs market: Micro & Small Business and Medium Business


                                                        Fixed                                                     Fixed
                                   # of                                                              # of
    Micro & Small                Employee
                                                        Assets                    Medium           Employee
                                                                                                                  Assets
                                                        (USD)                                                     (USD)

  Manufacturing                     <= 50           <= 1.45M                 Manufacturing         >50 - 200   >1.45 - 5.80M

  Trading - Retailing               <= 25            <= 1.45M                Trading - Retailing   >25 - 50    >1.45 - 2.90M

  Trading - Wholesaling             <= 15           <= 0.87M                 Trading - Wholesaling >15 - 30    >0.87 - 1.74M

  Service                           <= 50           <= 1.45M                 Service               >50 - 200   >1.45 - 5.80M




 Remark: SMEs Definition from OSMEP (Office of Small and Medium Enterprises Promotion)
KBank SME Overview
                  KBank Loan Breakdown                  • SMEs loan accounts for 44% of the total loan
                                                          portfolio of KBANK, with the total amount of
    Large                      Small & Micro              335,938 million Baht.
   Corporate                      Size
                   SME                      Medium
     37%                           35%
                   44%                       Size
                                             65%        • The No. 1 SMEs market share in Thailand of
         Retail
          19%                                             25% serving over 250,000 SMEs .
                                     as of Apr 09
                                                        • SME biz div. generates 15,408 million Baht in
                                               by No.
                                                          term of net total income for KBank in 2008, the
                                                          highest profit among 7 customer segments.
GDP Structure by Economic Activities
Trading is one of the most important activities for SMEs with contribution at 30%
                    National GDP Structure                        SME GDP Structure




   • Similar to national GDP structure, manufacturing, services and trading are the most important
     economic activities for SMEs
   • While manufacturing sector is expected to shrink around 7% in 2009
   • Trading sector is projected to record positive growth in 2009

Data Source: White paper 2007 from OSMEP
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
International Trade in Thailand
Thai economy is heavily international trade-dependent (SME & LE)
                                                    %Growth Rate

    International Trade Dependency (% of GDP)
             Exports      Imports     Total Trade                                          16.0%
   2004        59.7         58.5         118.2

   2005        62.6         67.0         129.6
                                                                                            2.6%
   2006        63.0         63.0         126.0

   2007        62.4         57.3         119.8

   2008        64.3         65.3         129.6


       • Total Ex-Import as a percentage of GDP has continually risen to 129.6% in 2008.
       • Trade value has risen in 2008 (16%) although Thailand’s GDP growth rate dropped   (to
         2.5%) as a result of the global economic slowdown
Contribution of SME in International Trade
Almost 30% of national trade value has been generated by SMEs
                                              2007 (Billion)                • 30% of international trade value has been
                                          USD                  %
                                                                               generated by SMEs, 88.1 bn USD in 2007
   SME Exports                            45.9               15.6
   SME Imports                            42.2               14.4
   SME Trade Volume                       88.1               30.0
   National Exports                      152.5               51.9
   National Imports                      141.3               48.1
   National Trade Volume                 293.8              100.0


 • SME export growth had increased                                  Trade Growth                2006          2007          2008          2009F

   steadily during 2006 to 2007                              SME Export Growth                    16.5%         20.9%            9.0%*        -11.4%*
 • SME import growth cooled                                  SME Import Growth                      9.4%          0.2%            n.a.            n.a.
   substantially, in line with national                      Nat. Export Growth                   16.9%         18.6%            15.6%   -20 to -17%**
   imports value                                             Nat. Import Growth                     9.0%          8.7%           27.7%   -23 to -19%**


  Data Source: White paper 2007 and Survey Report; MOC „s Trade Statistics. F: * OSMEP, as of Mar 2009; ** KResearch Forecasts
Impacts to International Traders
 • Lower trust among business partners as evidenced by the means of payment, i.e. high advance
   payment and open account.
 • Low bargaining power and lack of guarantee support from intermediary


                                                            Importer                   Exporter
           Method of Payment                    Large                           Large
                                                                       SMEs                       SMEs
                                              Enterprise                      Enterprise
          LC (Letter of Credit)                       23%              29%       17%              23%
          BC (Bill for Collection)                    4%               5%        5%               7%
          Advance Payment                             10%              40%       38%              10%
          Open Account                                63%              26%       40%              60%

   • Compared to Large Enterprise, SMEs importers are less competitive and it’s getting worse due to
     recent recession
   • Also, SMEs exporters have low bargaining power due to lack of trust among trade partners
  Data Source: KBANK SME Trade Vol. as of Apr. 2009
Key Concerns from Global Economic Crisis

     Export Declining                                   Commodity Price
Thai major partners, such as                         Commodity prices, fallen due
US, EU, and Japan, have                              to global economic crisis ,
severe impacts from global                           will affect Thailand farm
economic crisis. Therefore,                          income, especially rice, palm,
declining trend in export is                         and corn.
expected.



 Inventory Management            Global Economic       Liquidity Shortage
                                      Crisis       Global financial crisis deteriorates
Volatility of commodity prices
from speculators will increase                     business cash flow. Thus, the
risk of inventory loss and                         access to source of fund for
difficulty in production and                       business will be tougher ,
stock management.                                  especially for SME businesses.
Key Concerns from Global Economic Crisis

     Export Declining                                   Commodity Price
Thai major partners, such as                         Commodity prices, fallen due
US, EU, and Japan, have                              to global economic crisis ,
severe impacts from global                           will affect Thailand farm
economic crisis. Therefore,                          income, especially rice, palm,
declining trend in export is                         and corn.
expected.



 Inventory Management            Global Economic       Liquidity Shortage
                                      Crisis       Global financial crisis deteriorates
Volatility of commodity prices
from speculators will increase                     business cash flow. Thus, the
risk of inventory loss and                         access to source of fund for
difficulty in production and                       business will be tougher ,
stock management.                                  especially for SME businesses.
Export Declining
The top 3 most export dependent is likely to be severely affected by the current economic downturn
particularly exacerbated by their major trade partners‟ recession economy, i.e. US and EU




                                                                                                          Most Affected Industries

                                                                                                          • Textile
                                                                                                          • Gems & Jewelry
                                                                                                          • Agro-Industry




*Definition of Export Dependable: Having high export portion compared to total sales revenue ** SME/ LE
Key Concerns from Global Economic Crisis

     Export Declining                                   Commodity Price
Thai major partners, such as                         Commodity prices, fallen due
US, EU, and Japan, have                              to global economic crisis ,
severe impacts from global                           will affect Thailand farm
economic crisis. Therefore,                          income, especially rice, palm,
declining trend in export is                         and corn.
expected.



 Inventory Management            Global Economic       Liquidity Shortage
                                      Crisis       Global financial crisis deteriorates
Volatility of commodity prices
from speculators will increase                     business cash flow. Thus, the
risk of inventory loss and                         access to source of fund for
difficulty in production and                       business will be tougher ,
stock management.                                  especially for SME businesses.
Commodity Price                                                         Steel Price
Key commodity prices have plunged dramatically due
to lower demand as a result of global economic crisis


              Agriculture Prices Fell More Than 21%

                                 Q1 2008            Q3 2008         Zinc and Gold Prices
 Rice                           USD 1,080         USD 660-500

 Tapioca                      THB 2.50 / Kg.     THB 1.45 / Kg.

 Smoked Sheet Rubber           THB 90 / Kg.     THB 55-58 / Kg.

 Palm                          THB 6.0 / Kg.     THB 2.8 / Kg.

 Palm Oil                      THB 36 / Liter    THB 17 / Liter       Livestock Price
 Corn                         THB 10-12 / Kg.   THB 4.8-5.0 / Kg.

  This will likely affect farm incomes and profitability
  of the related industries.

Remark: FX 1 USD = 31.5 THB
Key Concerns from Global Economic Crisis

     Export Declining                                   Commodity Price
Thai major partners, such as                         Commodity prices, fallen due
US, EU, and Japan, have                              to global economic crisis ,
severe impacts from global                           will affect Thailand farm
economic crisis. Therefore,                          income, especially rice, palm,
declining trend in export is                         and corn.
expected.



 Inventory Management            Global Economic       Liquidity Shortage
                                      Crisis       Global financial crisis deteriorates
Volatility of commodity prices
from speculators will increase                     business cash flow. Thus, the
risk of inventory loss and                         access to source of fund for
difficulty in production and                       business will be tougher ,
stock management.                                  especially for SME businesses.
Loss from Carrying Inventory
High risk for industries which have high percentage of inventory / sales
             Change in Inventory Index (Q-o-Q)
                                                                              Most Affected Industries
                Food & Beverage
                Rubber Products & Plastic
                                            Pulp and Paper               • Real Estate
                                            Non-Metal Products
                Metal Products              Artif icial Metal Products
                Transportation Equipments                                • Textile
                                                                         • Gems and Jewelry
                                                                         • Hardware
                                                                         • Construction Materials
                                                                         • Industrial Agriculture
                                                                         • Food & Beverage
                                                                         • Pulp & Paper / Printing

  Volatility of commodity prices will increase risk of loss
  from carrying inventory and difficulties in production and
  stock management
* SME/ LE
Key Concerns from Global Economic Crisis

     Export Declining                                   Commodity Price
Thai major partners, such as                         Commodity prices, fallen due
US, EU, and Japan, have                              to global economic crisis ,
severe impacts from global                           will affect Thailand farm
economic crisis. Therefore,                          income, especially rice, palm,
declining trend in export is                         and corn.
expected.



 Inventory Management            Global Economic       Liquidity Shortage
                                      Crisis       Global financial crisis deteriorates
Volatility of commodity prices
from speculators will increase                     business cash flow. Thus, the
risk of inventory loss and                         access to source of fund for
difficulty in production and                       business will be tougher ,
stock management.                                  especially for SME businesses.
Liquidity Shortage Problem
High D/E ratio but low current ratio industries would be affected
                                Most affected industries from Liquidity Shortage
                                                    DE ratio      Current ratio     Impact
          Communication                               1.91            0.88          High
          Real Estate                                 1.38            1.05          High
          Industrial Agriculture                      1.29            0.98          High
          Commerce                                    1.27            0.99          High
          Agriculture                                 1.21            0.83          High
          Furniture & Wood                            1.16            0.94          High
          Financial Institute                         1.15            0.84          High
          Automotive and Parts                        1.16            1.20         Moderate
          Hotels and Restaurants                      1.12            0.52         Moderate
          Plastic                                     1.11            0.97         Moderate
          Transportation                              1.10            0.73         Moderate
          Hardware                                    1.09            1.19         Moderate
          Textile                                     1.01            1.04         Moderate
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
SME Customer Research (Financial Need)
Longer tenor, Faster Approval and Less Collateral are key needs ( excl. price, credit risk )

       Reasons cause bank switching               Additional condition with lower interest or fee

                                   1% lower




                                                                                               %

                                       7 days
                                                  Reasons if interest or fee were not lower

                                      10 years


                                  20 % more




                                  %                                                            %
SME Customer Research (Non-Financial Need)
                              Organizational structure: Involves systematic
                              division of tasks and duties.

  Common biz organizational   Accounting: centered around systematic handling
      needs for SME           of financial data and inventory management

                              HR Management: centered around systematic
                              handling of employees: recruitment, training,
                              performance evaluation and motivation


                              Growth: Business concerns related to capabilities
                              & resources planning to support higher growth
        Concerns by
                              Mature: Maintaining current condition of business
       Business Stage
                              while seeking other growth opportunities

                              Decline: Preventing further decline & seeking
                              alternative choices of business line expansion
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
Customer Needs and Concerns & Financial Solution
                       Customer Needs                                    KBank Solution
           •   Sufficient funds for investment and          •   Credit with no collateral (K-Klean Credit)
Business       working capital under 4 important factors:   •   SLA: fast approval within 3 days and
                 • No or less collateral,                       drawdown within 10 days
As Usual         • Fast Approval,                           •   Long term loan (K-SME Extend)
                 • Long term repayment and higher           •   High LTV Product Programs (K-Max)
                     credit limit                           •   Factoring / Trade finance product

           •   Business partner‟s risk information and      •   Business rating / credit risk rating
               risk protection tools

           •   More credit need while less collateral       •   High LTV Product ( K-Max 150%)
               under the crisis                             •   Accept investment paper as Collateral, BE
                                                            •   Require no/less collateral (K-Trade Plus,
                                                                K-Privilege Trade Solution, K-Klean)
 Crisis
           •   Lower trust among business partners in       •   Business Insurance
               terms of payment method / term               •   Trade Credit Insurance
                                                            •   Guarantee Company Accepted
Financial support SMEs




           K-Klean Credit              K-Machine Credit
        No collateral required   Machinery pledged as collateral
Financial support SMEs




              K-Max      K-Cheque to Cash
            150% LTV     Cheque Discount
Financial support SMEs




         K-P/O & Invoice     K-SME Extend
           Financing       10 year credit term
Customer Communication
   Reasons cause bank switching
                                          Speedy
                            1% lower




                                          Long
                                7 days


                               10 years


                           20 % more


                                          More
                           %
Customer Needs and Concerns & Non-Financial Solution
                       Customer Needs                                 KBank Solution
           •   Traditional non-financial needs such as    •   Training series under K-SME Care
Business       Organization management, Accounting,           Education Program
               HR, Business knowledge for efficient
As Usual       business management

           •   New market understanding and               •   Provide special marketing knowledge,
               penetration strategy                           Creative and Innovation via advice
                                                              workshop under K-SME Care
                                                          •   Online Business Matching

           •   Business knowledge for more effective      •   Provide knowledge via seminar and
               and efficient business management              advisory workshop under K-SME Care
 Crisis

           •   Need Physical premises for discussing      •   Established K-SME Care Knowledge
               business solutions with relevant experts       Center to support SMEs sustainable
               and networking during the economy              growth
               recessions
K Smart SME
For SME Micro customers




         K Smart SME 2nd issue, Feb 08   K Smart SME 3rd issue, Jul 08
K SME Inspired
For SME Small & Medium customers




            K SME Inspried 4th-6th issue: Launch Dec 07, Mar 08 and Jun 08
K SME Inspired
For SME Small & Medium customers
                        Table of Contents
                                   Business                       Lifestyle
                        •   Econ Analysis             •   Society
                        •   K SME Analysis            •   Get Idea
                        •   Hit the Point             •   Technology
                        •   Financial Tips            •   Feng shui
                        •   Marketing Strategy        •   Exercise
                        •   New Product               •   Health Care
                        •   K SME Care                •   Calendar
                        •   Management                •   Cuisine
                        •   HR                        •   Travel
                        •   Supply Chain Management   •   Privileges
                        •   Accounting
K SME Credit & K SME Handbook
K SME Care “Teach a man to fish, You feed him for a lifetime”
Non-Financial support SMEs

                                                           Capital
  Objective                                                Provide Equity Financing by Setting up Venture Capital Fund
                                                           (Khao Kla) for SMEs
 • Nurture the Thai SMEs to achieve sustainable growth
   in their businesses by providing extensive forms of
   both financial & non-financial support and not          Advice
   realizing economic returns from such investments.       Provide business consultancy in various topics such as Branding,
                                                           Lean Management to Thai entrepreneurs who seek to enhance
                                                           their business productivity level through well-recognized SME
  Strategy                                                 development institutions such as OSMED, ISMED, FTPI

 • Develop cooperative efforts with highly credible
   and reputable organizations & institutions to           Research
   carry out corporate social responsibility               Provide economic and market updates named K-SME Analysis
   campaign for SMEs in an innovative and                  which are tailored made specifically for SMEs and published in
   differentiated format                                   SME magazine, newspapers & websites


 Target Audience                                           Education
                                                           Provide a series of value-added training programs to Thai
 • Thai SMEs regardless of their size, industry and main   entrepreneurs to help them develop professional management
   bank status                                             skill by developing 10-week Management Course for Sustainable
                                                           Growth in collaboration with leading universities nationwide
K SME Care
      Capital
      Provide Equity Financing by Setting up Venture Capital Fund (Khao Kla) for SMEs


      Advice
      Provide business consultancy in various topic such as Branding, Lean Management to Thai
      entrepreneurs who seek to enhance their business productivity level through well -recognized
      SME development institutions such as OSMED, ISMED, FTPI


      Research
      Provide economic and market updates named K-SME Analysis which are tailored made
      specifically for SMEs and published in SME magazine, newspapers & website

      Education
      Provide a series of value-added training program to Thai entrepreneurs to help them develop
      professional management skill by developing 10-week Management Course for Sustainable
      Growth in collaboration with leading universities nationwide
Non-Financial support SMEs

       K-SME Venture Capital under
       Khao Kla and new VCs.




           KBank
                              KBank, KAsset support Khao Kla and KVC
                                in funding and business operation e.g. IT,
                                compliance and HR advise
           KAsset                                                            Customer engagement via Advertorial

         Khao Kla            Kha Kla structure fund for supporting SMEs
         Venture Capital     (asset <200 MB and employment <200 people)
         Management


  K-SME venture Capital (KVC)
                           Investment SME
   VC fund with Others
                                      SME
                                      SME
                              Return
K SME Care
      Capital
      Provide Equity Financing by Setting up Venture Capital Fund (Khao Kla) for SMEs


      Advice
      Provide business consultancy in various topic such as Branding, Lean Management to
      Thai entrepreneurs who seek to enhance their business productivity level through well -
      recognized SME development institutions such as OSMED, ISMED, FTPI


      Research
      Provide economic and market updates named K-SME Analysis which are tailored made
      specifically for SMEs and published in SME magazine, newspapers & website

      Education
      Provide a series of value-added training program to Thai entrepreneurs to help them develop
      professional management skill by developing 10-week Management Course for Sustainable
      Growth in collaboration with leading universities nationwide
Non-Financial support SMEs
                       Loyalty Program for existing customers

Logistics and Supply       Amplification of 2007’s KIAsia Logistic/SCM project
Chain Management           Detailed SCM/Logistics content via
                            Workshop/Exhibition/Consulting Clinic

Business Competitive       In-depth consulting workshop for manufacturing and service
Diagnosis                   industry to lead SMEs how to choose the right strategy for the
                            sustainable growth by using BCD

Accounting Workshop        Accounting workshop which simulates a practical tutorial to
                            help SMEs better understand how to better manage their
                            cashflow through accounting S/W package

Business Tax Saving        Consulting workshop to help business owners understand
                            how to leverage tax knowledge to ease their business
                            operations
Non-Financial support SMEs during the crisis


      Customer needs during the crisis                      K SME Care Solution
                                               Brand Academy     Brand Positioning workshop via
     To strengthen brand positioning
                                                                  lecture/Case Study/ Showcase &
                                                                  1-1 Consulting
                                                                 Topics of brand Academy are
                                                                  - Inspiration and basic Knowledge
                                                                  - Brand Building Strategy such as
                                                                  Logo development
                                                                  - Brand positioning
                                                                  - Brand consultant workshop

                                         Brand Success Story




                                                       Before                       After
Non-Financial support SMEs during the crisis


      Customer needs during the crisis                K SME Care Solution

        To survive from recession        Business Advice      “Improving business operation
                                                               during the crisis” Seminar for
                                                               Printing SMEs




                                         Lean Distribution    Lean distribution channel is one of the
                                         Management            most important factors for business
                                                               survival during the economic
                                                               downturn. This workshop will help
                                                               SMEs understand how to lean their
                                                               unnecessary channel.
Non-Financial support SMEs during the crisis


      Customer needs during the crisis                    K SME Care Solution

     To find opportunity for new market   Online Marketing  Special Marketing workshop to support
                penetration               – A New tool for   SMEs to understand the role of the online
                                          digital era        marketing channel in the digital era



                                          Design             Creativity & Innovation concept which will
                                          Innovation          help SMEs understand and successfully
                                                              launch their innovative products in
                                                              commercial trade


                                          InterBiz Week      SMEs will understand how to
                                                              penetrate new market focusing on
                                                              packaging, trade matching including
                                                              international business trip
Non-Financial support SMEs during the crisis


       Customer needs during the crisis                  K SME Care Solution


   To improve operational efficiency
                                          Shindan Project
                                          SMEs, with the help of Shindan – Shi
                                          (Analyst), will be able to understand
                                          their business problems and find
                                          solutions, based on the 5 principles
                                          namely General management, Human
                                          resource management, Accounting
                                          and taxation, Sales and marketing and
                                          Supply chain and Logistics.
K SME Care
      Capital
      Provide Equity Financing by Setting up Venture Capital Fund (Khao Kla) for SMEs


      Advice
      Provide business consultancy in various topic such as Branding, Lean Management to Thai
      entrepreneurs who seek to enhance their business productivity level through well -recognized
      SME development institutions such as OSMED, ISMED, FTPI


      Research
      Provide economic and market updates named K-SME Analysis which are tailored made
      specifically for SMEs and published in SME magazine, newspapers & website

      Education
      Provide a series of value-added training program to Thai entrepreneurs to help them develop
      professional management skill by developing 10-week Management Course for Sustainable
      Growth in collaboration with leading universities nationwide
Non-Financial support SMEs


 K-SME Analysis      Provide the useful information and insights to help
 articles             SMEs analyze economic and business situation
                      through published articles posted via different
                      channels such as www.ksmecare.com, Newspapers,
                      Me Magazine, K SME Inspired

 The Solutions of    A practical financial management guide book that
 Financial            combine real business case studies and lessons
 Management           learned of how to plan the financial management
 Pocket Book          effectively
K SME Care
      Capital
      Provide Equity Financing by Setting up Venture Capital Fund (Khao Kla) for SMEs


      Advice
      Provide business consultancy in various topic such as Branding, Lean Management to Thai
      entrepreneurs who seek to enhance their business productivity level through well -recognized
      SME development institutions such as OSMED, ISMED, FTPI


      Research
      Provide economic and market updates named K-SME Analysis which are tailored made
      specifically for SMEs and published in SME magazine, newspapers & website

      Education
      Provide a series of value-added training program to Thai entrepreneurs to help them
      develop professional management skill by developing 10-week Management Course for
      Sustainable Growth in collaboration with leading universities nationwide
Non-Financial support SMEs
Since 2007 K SME Care has educated more than 4,000 customers, and below are voices of customers.

                                                           Analysis                             Comment
  Strategy for Differentiation           Blue ocean concept is still one of the most popular
                                          vote but need more practical cases

  Smart SMEs / Thinking Innovation       Real case study from innovative businessperson is
                                          preferable.

  Integrated Marketing Communication     Update new marketing concept is helpful but
                                          sometimes guest speakers should be more specific
                                          on particular business as some concept is too broad.
  Branding for SMEs                      Top rating of all batch. Clear concept and business
                                          case for practice in real world
  360 Degree Case Study                  Good opportunity to learn business in various
                                          dimensions
  Business Simulation Game               The good practice of making critical business
                                          decisions thorough sophisticated business game
Non-Financial support SMEs during the crisis




      Knowledge Center                Business Advisor             Business Network
  - Training/Special Seminar     - 1-1 advisory service from   - More connections/ business
                                   experienced consultants       network from SMEs
  - Experience from successful
    person                       - In-depth workshop           - Online Business matching
Contents
     Thai SMEs at a Glance
        Thailand Macroeconomic
        SMEs Definition
        Contribution of SMEs
     SMEs and International Trade
     SMEs Understanding
     The key to enhance SME growth from KBank
        Financial Innovation & Solution
        Non-Financial Support SMEs
     Points for Further Consideration
Three Key Players to Solve the Problem
Different Roles and Actions needed

                                                                  Supporting Solution and Initiative
                                                    Bank          • Customer Need and Concern
                                                                       • Business As Usual
                                                                       • Recession Economy
                                                                  • Financial and Non-financial innovation


                                               Mitigate Impacts
                                                 from Global
                                               Economic Crisis
                   State                                                        International
                  Agency                                                        Intermediary

Measure and Policy:                                               Measure and Policy:
Introduce measures to help SMEs and                               Encourage governments and relevant parties
international trading sector i.e. provide export                  to encourage cross boundary capital flow and
guarantee, credit subsidy program and extra                       international trading
sources of fund
Points for Further Consideration
Specific agency and fund for SMEs should be established

  • The specific agency for SME finance and trade facilitation may be established to act
    as international intermediary among the International Financial Institutions (IFIs), the
    Multilateral Development Banks (MDBs) and export credit agencies (ECAs)



  • Under ASEAN plus 3 and plus 6 schemes, the group may consider the formation of
    regional SME fund to function in SME‟s sustainable development



  • More closer cooperation and assistance will be expected from IFIs and MDBs and
    ECAs in developed countries to the export credit organizations in developing
    countries in order to promote effective credit guarantee mechanisms.
Brand Leverage
Brand Leverage of Winning Brands looks at brand relationships in a naturally hierarchical order to identify
strengths & weaknesses, from generating awareness to inducing ownership and finally to emotive
commitment conversion. Marketing attention can be focused at different stages to strengthen brand building.




                                                   KEY RATIO          1. Conversion Rate   2. Retention Rate
                                                   ANALYSIS              (Trial / Aware)     (Regular / Trial)
 The Winning Brand
   We achieve the highest customer emotive commitment, THE LOYALTY.

                               KBank             Bank A   Bank B   Bank C   Bank D   Bank E




Base : All respondents (N=675)
Ref : Q66/T66A1, Q71A/T71A1, Q63A-Q63D/T63A-
        T63D, Q9A/T9A01, Q9B/T9B02, T9C/T9C03,
        Q63F/T63A06
Thailand SMEs Market
KBank is number 1 in Thailand SMEs market with 25% market share

        Thai SME Market Share 2008                    Financial Product & Service

                                               Product Program
                                               E-learning Program
                                               International Trade Seminar
                                               Credit Information Rating Service

                                                      Non-Financial Supports
                                                      (K-SME Care Project)

                                               Knowledge Center
                                               Business Seminar / Workshop
                                               Business Competitiveness Diagnosis
                                               Business Research & Articles
The Asian Banker Award




                     Excellence in SME Banking
                 By The Asian Banker 2006 and 2007

								
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