Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q3 FYE2022 Earnings Presentation
27 slides from Aeon Credit Service (m) Bhd's earnings presentation, Dec 23, 2021
Slide 1: Q3FYE2022 Results Update
AEON Credit Service (M) Berhad Q3FYE2022 Results Update 23 December 2021
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, fund managers and investors. The information contained in this document has not been independently verified. No representation or warranty,
Slide 3: Table of Contents
TABLE OF CONTENTS Financial Overview Page 4 Business & Operational Updates Page 15 Sustainability Page 19 Appendix Page 22 Page 3
Slide 4: Financial Overview
AEON Credit Service (M) Berhad Financial Overview Page 4
Slide 5: Financial Highlights
Financial Highlights Record high profitability backed by strong asset quality 9M 9M YoY (%) FYE21 FYE22 Revenue RM1,155.3M RM1,161.9M +0.6% Profitability PAT RM120.2M RM342.0M +184.5% ROE 9.7% 24.5% +14.8% Transaction & Financing Volume RM3.0B RM3.3B +11.5% Gross Financing Receivables RM10.2B RM9.6B
Slide 6: Quarterly Performance
Quarterly Performance Transaction & Financing recovered QoQ in tandem with NRP progress; Profit grew healthily Total Transaction & Financing Volume (RM mil) Revenue (RM mil) YoY -2.9% QoQ +67.6% YoY -6.2% QoQ +0.5% 1,600.000 1,408.1 500.0 1,400.000 1,224.4 1,188.3 411.0 450.0 401.5 1,200.000 400.0 3
Slide 7: Shareholder Value & Capital Management
Shareholder Value & Capital Management Solid balance sheet with ROE rebounded with strong capital position Gross Receivables (RM mil) Return On Asset (%) YoY -6.0% QoQ -0.2% YoY +2.9% QoQ -0.1% 10,300.000 10,222.0 7.000 6.3 10,200.000 10,058.4 6.000 10,100.000 10,000.000 5.000 4.6 4.5 9,900.000 4.00
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Volume for all segments registered QoQ growth following economy recovery and market reopening Volume (RM mil) Q3 FYE21 Q2 FYE22 Q3 FYE22 QoQ YoY Motorcycle Financing 427 142 346 144.1% -19.1% Credit Card 377 299 378 26.5% 0.4% Personal Financing 217 99 198 100.1%
Slide 9: Total Financing Receivables
Total Financing Receivables Managing receivables with sustainable asset quality Volume (RM mil) Q3 FYE21 Q2 FYE22 Q3 FYE22 QoQ YoY Motorcycle Financing 3,456 3,389 3,389 0.0% -1.9% Auto Financing 2,939 2,748 2,713 -1.3% -7.7% Personal Financing 2,640 2,450 2,420 -1.2% -8.3% Credit Card 839 707 720 1
Slide 10: Receivables Collection
Receivables Collection Driven by effective credit management strategies and improved new sales quality 120.0 Receivables Collection Trend 110.0 98.1 97.9 98.0 98.1 98.6 96.9 98.2 98.3 97.8 98.5 100.0 95.6 88.5 90.0 84.4 85.6 82.9 81.1 81.8 81.2 83.1 78.2 77.5 78.8 80.0 86.2 76.9 76.9 78.4 70.0 75.5
Slide 11: Non-Performing Loan (NPL)
Non-Performing Loan (NPL) Lower NPL as continuous efforts on asset quality control NPL Trend NPL Trend 2.88 12000.0 3 2.24 2.5 11000.0 1.93 1.75 2 10000.0 1.5 9000.0 1 0.5 8000.0 0 7000.0 -0.5 -1 6000.0 -1.5 10,033 10,222 9,625 9,605 5000.0 -2 Q3 Q3 Q2 Q3 FYE20 FYE21 FYE22 FYE22 Gross Receivables (R
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) Lower NCC attributable to lower impairment loss and higher bad debt recovered NCC Trend NCC Trend 5.73% 5.16% 180 5.00% 4.65% 2.35% 2.01% 3.00% 130 3.91% 1.00% 80 0.80% 0.42% -1.00% 30 90 123 60 -3.00% -20 -9 -5.00% Q3 Q3 Q2 Q3 FYE20 FYE21 FYE22 FYE22 NCC (RM mil) Net NCC (%) G
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Lower IL benefited from better collections and IL provision reversal 410% Lower IL YoY mainly due to writeback on 260.000 343% allowance for Expected Credit Loss 318% 318% 210.000 (ECL) of RM48.5 mil as compared to 160.000 ECL provision of RM101.0 mil in Q3 FYE21 attrib
Slide 14: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Improved due to higher income and lower impairment loss Q3 Q3 9M 9M RM mil YoY YoY FYE21 FYE22 FYE21 FYE22 Total Operating Income 441.1 426.9 -3.2% 1,253.7 1,300.1 3.7% Personnel Expenses 55.4 53.3 -3.8% 139.4 162.9 16.8% Advertisement & Promotion 12.4 15.3 23.6% 37.5 36.6
Slide 15: Business & Operational Updates
AEON Credit Service (M) Berhad Business & Operational Updates Page 15
Slide 16: Business Recovery
Business Recovery Ensure asset quality is in control while expanding new sales steadily on our recovery path towards sustainable growth Gross Receivables (RM mil) New Sales Collection Ratio (%) New Sales (RM mil) Approval Ratio (%) 20,000 150 2,500 50 18,000 16,000 98.8 98.6 98.7 100 2,000 35.9 34.1
Slide 17: Transformation by Digital Shift
Transformation by Digital Shift Provide seamless customer experience by create consumer digital on boarding Transformation Roadmap Data E-Application E-KYC E-Signature E-Warehouse Warehouse Available for all Accelerate Easy Payment Approval granted, Centralized record Data Warehouse completed produc
Slide 18: Initiatives Embarked in FYE2022
Initiatives Embarked in FYE2022 Insurance Brokerage Digital Banking New Prepaid card Moving Up Facilitating Financial Inclusion Penetrating the Hawkers and Petty Traders the Value Chain in Malaysia via License Application segment via Privilege Card Insurepro Sdn Bhd became a wholly-owned Proposed JV
Slide 19: Sustainability
AEON Credit Service (M) Berhad Sustainability Page 19
Slide 20: Sustainability FYE2022
Sustainability FYE2022 Social welfare and corporate social responsibility activities MAF AEONBersamamu MAF AEONBantu for Frontliners MAF AEONBantu for MAF Sayap Bagimu Phase 2, -provided 1,805 families affected by -provided 4,200 homecare packs to upstream water rush tragedy -contributed 2,000 units
Slide 21: Contact
Contact Headquarters Mr Lee Kit Seong Level 18, UOA Corporate Tower, Chief Corporate Officer Avenue 10, The Vertical, leeks@aeoncredit.com.my Bangsar South City, No. 8, Jalan Kerinchi, Ms Lee Siew Tee 59200 Kuala Lumpur. Chief Financial Officer stlee@aeoncredit.com.my Website Investor Relations Team
Slide 22: Appendix
AEON Credit Service (M) Berhad Appendix Page 22
Slide 23: Performance Highlights
Performance Highlights Q3 Q1 Q2 Q3 9M 9M (RM mil) QoQ (%) YoY (%) YoY (%) FYE21 FYE22 FYE22 FYE22 FYE21 FYE22 Total Transaction & Financing Volume 1,224.4 1,408.1 708.8 1,188.3 67.6% -2.9% 2,965.4 3,305.2 11.5% Credit Card 376.9 380.8 299.1 378.4 26.5% 0.4% 1,103.3 1,058.3 -4.1% Easy Payment Financi
Slide 24: Financial Summary
Financial Summary Q3 Q1 Q2 Q3 (RM mil) QoQ (%) YoY (%) FYE21 FYE22 FYE22 FYE22 Credit Card 839.3 755.7 706.7 720.0 1.9% -14.2% Card Purchase 769.0 658.7 688.6 701.2 1.8% -8.8% Cash Advance 70.3 97.0 18.1 18.8 3.5% -73.3% Personal Financing 2,639.9 2,556.7 2,450.0 2,419.8 -1.2% -8.3% Objective Financ
Slide 25: Operating Income
Operating Income Q3 Q1 Q2 Q3 9M 9M (RM mil) QoQ (%) YoY (%) YoY (%) FYE21 FYE22 FYE22 FYE22 FYE21 FYE22 Credit Card 38.2 34.0 30.6 34.1 11.6% -10.7% 107.4 98.6 -8.2% Personal Financing 113.6 114.5 103.0 99.8 -3.1% -12.1% 333.5 317.3 -4.9% Objective Financing 16.9 17.8 17.8 18.7 4.9% 10.7% 56.1 54.3
Slide 26: Total Expenses
Total Expenses Q3 Q1 Q2 Q3 9M 9M (RM mil) QoQ (%) YoY (%) YoY (%) FYE21 FYE22 FYE22 FYE22 FYE21 FYE22 Impairment Loss on Receivables 156.9 23.3 92.3 33.1 -64.1% -78.9% 443.3 148.6 -66.5% Personnel Expenses 55.4 55.4 54.2 53.3 -1.8% -3.8% 139.4 162.9 16.8% Advertisement & Promotion (A&P) 12.4 10.8 10
Slide 27: Financial Indicators
Financial Indicators Q1 Q2 Q3 9M FYE19 FYE20 FYE21 FYE22 FYE22 FYE22 FYE22 PBT (RM mil) 472.2 390.4 324.9 215.9 102.1 164.0 482.0 PAT (RM mil) 354.6 292.0 234.0 163.1 75.5 103.5 342.0 Weighted average no. of ordinary shares (Mil) 255.3 255.3 255.3 255.3 255.3 255.3 255.3 Basic EPS (RM)* 1.34 1.07 0.
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