Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q2 FYE2021 Earnings Presentation
30 slides from Aeon Credit Service (m) Bhd's earnings presentation, Sep 29, 2020
Slide 1: Q2 / 1H FYE2021 Results Update
Listing Board : Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code : AEONCR / 5139 Q2 / 1H FYE2021 Results Update 29 September 2020
Slide 2: Disclaimer
Disclaimer 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 ex
Slide 3: Table of Contents
Table of Contents 01 03 02 Financial FYE 2021 Overview COVID-19 Key Focus Key Focus 3
Slide 4: Financial Overview
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE Financial Overview
Slide 5: Performance Highlights: 1H FYE21
Performance Highlights: 1H FYE21 Reflecting the macro environment impacts, holding key ratios in check 1H 1H YTD FYE20 FYE21 Change PAT RM133.7M RM78.1M -41.6% Profitability ROE (annualised) 17.1% 9.5% -7.6% Transaction & Financing Volume RM3.1B RM1.7B -44.7% Asset Gross Financing Receivables RM9.6B
Slide 6: Income Statement
Income Statement Transaction & Financing Volume showed sign of recovery QoQ; Profits improved as a result of lower operating costs Total Transaction & Financing Volume (RM mil) Revenue (RM mil) Recovered from MCO enforced in Q1 Mainly due to Day-1 modification loss of RM28.4mil related to AEON R
Slide 7: Shareholder Value & Capital Management
Shareholder Value & Capital Management Maintain dividend payout ratio at 30.1%; CAR remains healthy Dividend Payout (%) ROA (%) 42.2 2.9 31.0 30.1 1.5 +0.5% QoQ -12.1% YoY 1.0 -1.4% YoY 1HFYE19 1HFYE20 1HYFYE21 Q2 Q1 Q2 FYE20 FYE21 FYE21 ROE (%) CAR (%) 25.0 20.0 17.1 25.0 20.6 21.1 22.0 20.0 15.0 9
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Motorcycle Financing, E-money and Credit Card led the QoQ growth Volume (RM mil) Q2 Q1 Q2 FYE20 FYE21 FYE21 Products (%) QoQ YoY 18 Credit Card +19.0 -10.6 4 86 Personal Financing -72.7 -93.6 224 Motorcycle Financing +111.5 -6.6 412 31 Auto Financing -24.5 -64.3
Slide 9: Total Financing Receivables
Total Financing Receivables Receivables growth 6.9%YoY under the challenging environment Receivables Movement (%) QoQ YoY Gross Receivables (RM mil) Credit card -1.0 -0.1 Q2 Q1 Q2 Personal Financing -6.8 -1.4 FYE20 FYE21 FYE21 Motorcycle Financing +1.6 +15.7 Auto Financing -2.2 +9.3 51 44 380 Object
Slide 10: Receivables Collection
Receivables Collection Collection activities resumed in June; Introduced AEON Relief Programme Receivables Collection Trend 97.9 97.9 98.6 97.4 95.5 88.5 83.4 81.0 81.1 78.1 86.2 70.3 71.7 70.3 76.5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FYE18 FYE19 FYE20 FYE21 Current Collection Ratio - Not Past
Slide 11: Non-Performing Loans (NPL)
Non-Performing Loans (NPL) Continuous prudent approach on asset quality strategy NPL Trend 18,000 2.48 2.07 2.00 1.95 16,000 1.42 14,000 12,000 9,597 10,518 10,259 1.00 10,000 8,000 7,046 7,855 6,000 4,000 2,000 0 0.10 Q2 Q2 Q2 Q1 Q2 FYE18 FYE19 FYE20 FYE21 FYE21 Gross Receivables (RM mil) NPL Ratio
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) Lower NCC QoQ due to lower impairment loss (IL) and higher bad debt recovered NCC Trend 250 6.12 4.04 4.58 7 3.43 160 2.20 200 5 118 3 150 77 1 100 62 51 -1 50 -3 0 -5 Q2 Q2 Q2 Q1 Q2 FYE18 FYE19 FYE20 FYE21 FYE21 NCC (RM mil) NCC - MFRS 9 (%) Q2 Q2 Q2 Q1 Q2 (RM mil) FYE18 FYE19
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Lower written-off accounts due to temporary criteria revision IL rose from existing 250,000 12,000 delinquent movement (D1- 10,518 10,259 D6) due to MCO period of 200,000 9,597 10,000 RM73mil, offset by lower D0 account movement & 7,855 lower provision due to 150,000 8,
Slide 14: IL Analysis
IL Analysis Increased provisioning on management overlay for potential COVID-19 impact Q2 Q2 1H 1H 1. Bad debts written off lower YoY YoY No Breakdown of IL FYE20 FYE21 FYE20 FYE21 attributed to temporary RM’000 % RM’000 % revision in write-off criteria 1 Written off 89,776 37,993 -57.7 178,588 143,
Slide 15: Cost-to-Income Ratio
Cost-to-Income Ratio Operational efficiency (excluded IL) improved due to prudent cost management Q2 1H (RM mil) QoQ YoY FYE21 FYE21 Total Operating Income 405.7 -0.3% 812.7 -5.1% Total operating expenses contracted Total Impairment Loss 112.0 -35.8% 286.4 15.5% by RM40.8 mil (-14.7% QoQ) and Person
Slide 16: Taxation: Appeal Status Update
Taxation: Appeal Status Update No Item Remark Status i. Filed a Notice of Appeal (Form Q) on 5 • The Company had filed a notice of • To date, hearing date has yet to be Jan 2018 to Special Commissioners of appeal to dispute the additional fixed. Income Tax (SCIT) assessments ii. Judicial Review – Le
Slide 17: COVID-19 Key Focus
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE COVID-19 Key Focus
Slide 18: COVID-19: Key Focus
COVID-19: Key Focus Liquidity Business Partners i. Focus on collection i. Focus on E-KYC ii. Sufficient banking facilities ii. Online application iii. Financial assistance Employees Risk Management i. Safety i. Asset quality management ii. Social Distancing ii. Product & customer portfolio iii. Enha
Slide 19: COVID-19: AEON Relief Programme
COVID-19: AEON RELIEF PROGRAMME Financial Assistance Programmes AEON Relief Programme 36-month installment plan for (ARP) for Easy Payment & Refinancing or Restructuring credit card customers PF customers Post Moratorium Status Customers who eligible for payment holiday have the following options: 1
Slide 20: FYE 2021 Key Focus
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE FYE 2021 Key Focus
Slide 21: Digitalization
Digitalization E-Application Digitalize customer’s touchpoint Digital ID Facial Recognition • E-forms • B2C2B – direct customer touchpoints On Boarding • E-KYC – real time identity authentication • Pre-approval scheme for merchants AEON E-wallet & AEON Member Plus Card E-Signature • Common platform
Slide 22: Regionalisation Operational Efficiency
Regionalisation • Localising marketing strategy by states to better facilitate the business expansion at potential untapped markets and customise the product offerings • Streamlining operation and reviewing performance constantly for agile decision making and cost efficiency Branch closures & CDM ma
Slide 23: FYE 2021: 2HY Key Focus
FYE 2021: 2HY Key Focus Continuous efforts for the better performance Value chain digitalization • Value chain digitalization from customer touch point. • Capture online demands with e-commerce product offering. Asset Quality • Utilise AEON group customer’s database to cross selling. • Capture bette
Slide 24: Appendices
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE Appendices
Slide 25: Performance Highlights
Performance Highlights Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE20 FYE21 FYE21 (%) (%) FYE20 FYE21 % Total Transaction & 1,562.5 778.6 962.4 23.6% -38.4% 3,146.6 1,741.0 -44.7% Financing Volume Credit Card 442.8 331.8 394.7 18.9% -10.9% 872.0 726.5 -16.7% Easy Payment 724.8 334.4 512.6 53.3% -29.3% 1,
Slide 26: Financial Summary
Financial Summary Q2 Q1 Q2 QoQ YoY (RM mil) FYE20 FYE21 FYE21 (%) (%) Credit Card 830.9 838.5 829.8 -1.0% -0.1% Card Purchase 768.6 779.9 769.9 -1.3% 0.2% Cash Advance 62.3 58.6 59.9 2.2% -3.8% Personal Financing 2,718.8 2,875.2 2,679.8 -6.8% -1.4% Objective Financing 340.2 380.1 344.5 -9.4% 1.3% Mo
Slide 27: Operating Income
Operating Income Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE20 FYE21 FYE21 (%) (%) FYE20 FYE21 (%) Credit Card 31.8 34.1 35.1 2.9% 10.3% 63.5 69.2 9.0% Personal Financing 134.3 119.3 100.7 -15.6% -25.0% 255.4 220.0 -13.9% Objective Financing 21.6 19.6 19.6 0.5% -9.1% 43.5 39.2 -9.8% Motorcycle Financing
Slide 28: Total Expenses
Total Expenses Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE20 FYE21 FYE21 (%) (%) FYE20 FYE21 (%) Total Impairment Loss 154.7 174.4 112.0 -35.8% -27.6% 248.0 286.4 15.5% Personnel Expenses 63.6 35.9 48.1 33.9% -24.4% 118.7 84.0 -29.2% Advertisement & Promotion 25.1 12.2 12.9 5.2% -48.8% 49.1 25.1 -48.9%
Slide 29: Financial Indicators
Financial Indicators Q1 Q2 1HY (RM mil) FYE18 FYE19 FYE20 FYE21 FYE21 FYE21 PBT 398.3 472.2 390.4 37.1 76.5 113.6 PAT 300.1 354.6 292.0 26.3 51.8 78.1 Weighted average no. of ordinary 200.3 255.3 255.3 255.3 255.3 255.3 shares (mil unit) Basic EPS (RM)* 1.4 1.3 1.1 0.4 0.6 0.6 NTA per share (RM) 6.4
Slide 30: Thank You
Head Office Mr Lee Kit Seong Level 18, UOA Corporate Tower, Chief Corporate Officer Avenue 10, The Vertical, leeks@aeoncredit.com.my Bangsar South City, 03-2772 9000 No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. Ms Lee Siew Tee www.aeoncredit.com.my Chief Financial Officer stlee@aeoncredit.com.my 03-27
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