Aeon Credit Service (m) Bhd. · MYX:AEONCR

Aeon Credit Service (m) Bhd — Q1 FYE2019 Earnings Presentation

19 slides from Aeon Credit Service (m) Bhd's earnings presentation, 2018

  1. Slide 1: Financial Results Q1 FYE 2019

    Financial Results Q1 FYE 2019 AEON Credit Service (M) Berhad

  2. Slide 2: • This document has been prepared by AEON Credit Service (M) Berhad (“AEON Credit”

    • This document has been prepared by AEON Credit Service (M) Berhad (“AEON Credit” or the “Company”) solely for the use at the presentation to analyst and fund managers. • The information contained in this document has not been independently verified. No representation or warranty, whether expressed

  3. Slide 3: Key Financial Highlights

    Key Financial Highlights Revenue PAT Total Assets (RM mil) (RM mil) (RM mil) 325.72 99.24 302.28 309.17 82.31 7,356.22 7,705.69 7,536.66 75.81 Q1FYE18 Q4FYE18 Q1FYE19 Q1FYE18 Q4FYE18 Q1FYE19 Q1FYE18 Q4FYE18 Q1FYE19 +7.8% YoY +30.9% YoY +3.6% YoY +5.4% QoQ +20.6% QoQ -2.2% QoQ ROE Annualised Market C

  4. Slide 4: Q1 FYE19 Performance Highlights

    Q1 FYE19 Performance Highlights ■Total income = RM354.7 mil (+2.0% QoQ, +6.4% YoY) ■PBT = RM131.8 mil (+25.1% QoQ, +29.3% YoY) YoY QoQ (RM mil,%) Q1FYE19 Q1FYE18 Q4FYE18 (%) (%) Credit Card 336,003 288,784 16.4 344,883 -2.6 Easy Payment Financing 544,572 521,886 4.3 444,942 22.4 Personal Financing 2

  5. Slide 5: Sales Volume by Product ①

    Sales Volume by Product ① ■Credit card sales = RM336.0 mil (+16%YoY), by increase of CIC member ■Personal financing sales = RM214.2 mil (+16.9% QoQ , -10.9%YoY) ■General easy payment sales = RM80.9 mil, +10.9% QoQ, -15.0% YoY Credit Card Personal Financing General Easy Payment % YoY % YoY % YoY (RM

  6. Slide 6: Sales Volume by Product ②

    Sales Volume by Product ② ■Motorcycle financing sales = RM286.5 mil (+30.2% QoQ, +9.3% YoY) ■Auto financing sales = RM169.7 mil (+14.0% QoQ, +6.8% YoY) Motorcycle Financing Auto Financing SME Financing % YoY % YoY % YoY (RM mil) (RM mil) (RM mil) 109% 107% 81% 169.7 344% 107% 286.5 86% 85% 158.9 104

  7. Slide 7: Q1 FYE19 Summary of Statement of Financial Position

    Q1 FYE19 Summary of Statement of Financial Position ■Financial receivables = +RM188.9mil (+2.6% QoQ), mainly from MOPED & AF ■Impairment loss = +RM425.5mil, due to MFRS 9 adoption As at Q4FYE18 As at Q1FYE19 Share QoQ (RM mil) (RM mil) (%) Credit Card (“CC”) Card Purchase 572,583 569,929 7.6 (2,654)

  8. Slide 8: Financing Receivables by Products

    Financing Receivables by Products ■ Total financing receivables = RM7.45 bil, +10.0% YoY ■ Personal financing receivables = highest growth at +13.3% YoY % YoY Product Share Movement (%) (RM mil) 110% 111% 117% 7,450 Product Q1FYE18 Q4FYE18 Q1FYE19 YoY QoQ 7,261 119% 6,778 6,534 PF 25.5% 26.4% 26.3%

  9. Slide 9: Movement of Collection Ratio

    Movement of Collection Ratio ■Continually improve collection ratio in Q1FYE19 ■Improvement in Current (+0.31%), D1 (+1.58%) & D2 (+1.87%) 100% 97.58% 97.50% 97.60% 97.81% Current collection ratio 83.15% 83.17% 82.04% 81.59% 80% D1 collection ratio 72.27% 71.62% 69.75% 68.34% D2 collection ratio 60%

  10. Slide 10: Net Credit Cost ("NCC") Ratio vs Receivables

    Net Credit Cost (“NCC”) Ratio vs Receivables ■ Annualized NCC ratio = 1.70% (-1.58% YoY) NCC (RM mil) NCC % movement 100.0 3.73% 3.56% 4.00% 3.32% 3.31% 3.43% 3.43% 90.0 3.28% 3.27% 80.0 3.00% 61.73 70.0 61.07 60.74 1.70% 60.0 55.06 2.00% 47.19 50.64 50.03 41.88 50.0 31.58 40.0 1.00% 30.0 (RM Mil) 2

  11. Slide 11: Ratio of Non-Performing Loans ("NPL")

    Ratio of Non-Performing Loans (“NPL”) ■ NPL ratio recorded at 2.26% (-0.07% QoQ, -0.02% YoY) Financing Receivable (RM mil) NPL (%) 12,000 3.0% 2.74% 2.68% 2.58% 2.47% 2.42% 2.43% 2.43% 2.48% 2.48% 2.33% 10,000 2.33% 2.28% 2.26% 2.5% 8,000 7,450 2.0% 6,778 6,990 7,144 7,261 6,310 6,535 5,779 6,021 5,

  12. Slide 12: MFRS 9 ①

    MFRS 9 ① ■Company is adopting MFRS 9 in FYE19 & is taking measures on product value chain to Improve Credit Cost management. MFRS 139 (previously used model) : Incurred Loss Model Outstanding Default (RM) Rate (%) MFRS 9 : Expected Credit Loss Model Outstanding EAD (%) PD (%) LGD (%) (RM) Exposure P

  13. Slide 13: MFRS 9 ②

    MFRS 9 ② 28th Feb 2018 31st May 2018 MFRS139 Under MFRS9 Opening Balance 168,729 162,831 First adoption of MFRS9 adjustment - 453,325 Restated Opening Balance 1st Mar 2018 168,729 616,156 Provision of Impairment Loss 82,241 57,096 Write-off (88,139) (84,935) Closing Balance 162,831 588,317 Retained

  14. Slide 14: Appendix

    JEON Appendix

  15. Slide 15: Financial Indicators

    Financial Indicators * Computed based on annualised figure RM mil FYE15 FYE16 FYE17 FYE18 Q1FYE19 Operating Income 928.1 1,055.2 1,222.2 1,358.8 354.7 PBT 288.3 301.6 351.2 398.3 131.8 PAT 215.7 228.2 265.0 300.1 99.2 Basic /(Diluted) earnings per share 1.46 1.49 1.01 1.43 (1.38) 1.54 (1.51) after P

  16. Slide 16: Q1 FYE19 Performance (Income)

    Q1 FYE19 Performance (Income) (Unit:RM’000,%) Q1 FYE19 Q1 FYE18 vs LY Credit Card 28,578 27,588 104 General Easy Payment 27,471 30,248 91 Motorcycle Easy Payment 75,198 67,407 112 Superbike Easy Payment 26,931 27,809 97 Automobile Financing 74,321 67,627 110 Personal Financing 91,963 80,008 115 SME

  17. Slide 17: Taxation – IRB Tax Audit Updates

    Taxation – IRB Tax Audit Updates

  18. Slide 18: Taxation – IRB Tax Audit Updates

    Taxation – IRB Tax Audit Updates Notices of Additional Assessment raised by The Director General of Inland Revenue (“DGIR”) AEON Credit entered into an ABS with AEON Credit local financial institution for fund Asset Backed arrangement in year 2009. Under the Scheme (ABS) scheme the receivables ‘sold

  19. Slide 19: Thank You

    JEON Thank You

AEON Credit Service (M) Berhad — Q1 FYE2019 Earnings Presentation on 6ix