Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q3 FYE2025 Earnings Presentation
32 slides from Aeon Credit Service (m) Bhd's earnings presentation, Dec 19, 2024
Slide 1: Q3 FYE25 Financial Results
Q3 FYE25 Financial Results 19 December 2024
Slide 2: Table of Contents
Table of Contents 03 KEY HIGHLIGHTS 06 FINANCIAL OVERVIEW 17 KEY STRATEGIES & MOVING FORWARD 25 APPENDICES
Slide 3: Key Highlights
KEY HIGHLIGHTS ———EE
Slide 4: Economic Outlook and Our Strategy
Economic Outlook and Our Strategy Malaysia GDP Inflation Rate Unemployment Rate Ringgit depreciated 5.3% 3Q24 1.9% Oct24 3.2% 3Q24 against US dollar Q3FYE25 Progress Sales & Receivables Credit Assessment Credit Cost Management • Enhanced Vehicle Financing scheme • Enhanced credit assessment • Contin
Slide 5: Q3FYE25 Overview of Financial & Key Products
Q3FYE25 Overview of Financial & Key Products Robust revenue growth supported by strong loan growth; lower PAT attributed by higher operating expenses Total Revenue Operating Profit Profit After Tax ROE Total Loan RM562.0 MIL RM103.0 MIL RM62.1 MIL 12.0% Growth +15.5% YoY -7.5% YoY -27.4% YoY -4.5% Y
Slide 6: Financial Review
FINANCIAL REVIEW ———EE
Slide 7: Financial Performance
Financial Performance Continual sales growth driven by effective marketing strategies Q3FYE24 Q3FYE25 Q3 YoY 9MFYE24 9MFYE25 9M YoY Total Income 535.0M 610.7M 14.1% 1,558.1M 1,794.0M 15.2% Operating Expenses -333.6M -399.4M 19.7% -894.0M -1,099.8M 23.0% Impairment Loss -182.8M -215.3M 17.8% -456.0M
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Notable growth in overall volume YoY lead by Personal Financing 33.5% YoY growth Total Transaction & Financing Volume (RM mil) Transaction & Volume by Types Easy Payment Payment Business Personal Financing 44.9% 39.5% 618 664 580 Q3 Q3 1,016 562 FYE24 FYE25 819 8
Slide 9: Q3FYE25 Focus Area: Vehicle Financing
Q3FYE25 Focus Area: Vehicle Financing Growth in Vehicle Financing underpinned by effective growth strategies Vehicle Financing Volume Motorcycle Financing Vehicle Financing (RM mil) Market Share (%) • Improved e-KYC adoption rate Motorcycle Financing market share via incentive campaigns for marginal
Slide 10: Q3FYE25 Focus Area: Payment Business
Q3FYE25 Focus Area: Payment Business Payment Business sales growth expansion through card rebranding Payment Business Number of Cards • Credit card in circulation (CIC) grew Financing Volume (RM mil) (‘000) by 6.9% QoQ, driven by revamped credit card features and collaboration campaigns with AEON +1
Slide 11: Q3FYE25 Focus Area: Personal Financing
Q3FYE25 Focus Area: Personal Financing Continual Personal Financing growth through improved productivity of overall channels Personal Financing Volume Personal Financing (RM mil) Market Share (%) • Increase Personal Financing sales and acquire new customer base via Expanding market share driven by +
Slide 12: Total Gross Financing Receivables
Total Gross Financing Receivables Stronger loan growth across all key products Gross Financing Receivables (RM mil) Gross Financing Receivables by Types Easy Payment Payment Business Personal Financing 64.2% 62.4% 8,398 8,525 7,646 Q3 Q3 4,235 3,958 FYE24 FYE25 3,490 905 843 767 29.3% 6.4% 31.0% 6.6
Slide 13: Receivables Collection
Receivables Collection Enhancing collection management and productivity through formation of task force Current Collection Ratio (%) D1 & D2 Collection Ratio (%) • Overall collection performance marginal declined QoQ • A debt collection improvement task force was formed to enhance collection managem
Slide 14: Non-Performing Loan (NPL) and Net Credit Cost (NCC)
Non-Performing Loan (NPL) and Net Credit Cost (NCC) Continuous prudent approach on provisioning NPL Trend NCC • NPL recorded remained stable YoY, improving by 0.31% compared to 2.73 2.37 2.42 Q3FYE24 5.35% 5.62% 5.89% • Higher annualised NCC was mainly due to 4.24% absence of general provision rever
Slide 15: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Loan Loss Coverage Ratio continues to remain healthy 297% • Total impairment loss provision increased 11.2% 233% 230% 231% QoQ mainly due to absence of general provision reversal in Q3FYE25 as compared to Q2FYE25 and higher provision in line with receivable 1 26 47 grow
Slide 16: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Higher cost on Personnel, IT and Revenue-Related Expenses Q3 Q3 9M 9M RM mil YoY YoY FYE24 FYE25 FYE24 FYE25 Total Operating Income 535.0 610.7 14.1% 1,558.1 1,794.0 15.2% Personnel Expenses 64.9 72.8 12.2% 181.1 208.6 15.2% Advertisement & Promotion 6.5 15.3 136.9% 24.7 4
Slide 17: Key Strategies and Moving Forward
KEY STRATEGIES AND MOVING FORWARD
Slide 18: FYE25 Indicators
FYE25 Indicators Continual delivery of sustainable returns to shareholders Indicators Actual Remark FYE25 9MFYE25 • Robust loan growth driven by strong market demand for Vehicle Loan Growth ±10% 14.8% Financing and Personal Financing Cost-to-Income • CIR grew aligned with sales and business expansio
Slide 19: Strategic Roadmap For FYE25
Strategic Roadmap For FYE25 Expanding brand visibility & bringing “Finance” closer to everyone Key Business Strategy Focus in FYE25 Building an Ecosystem Advancement in Strengthen Business Talent Development and & AEON Living Zone Assessment Process Capacity ESG initiatives • Integration of financia
Slide 20: Q3FYE25 Business Strategy Update: Malaysian Essential Lifestyle App
Q3FYE25 Business Strategy Update “Malaysian Essential Lifestyle App” for seamless shopping and financing solutions AEON Living Zone • AEON Wallet app was revamped in Jul enabling customers to easily accumulate AEON points simply by downloading the app • Customers can now apply for financing services
Slide 21: Q3FYE25 Business Strategy Update: Accelerating Automation
Q3FYE25 Business Strategy Update Accelerating automation to enhance customers’ digital experience Advancement in Assessment and collection to • Integration of Optical Character Recognition (“OCR”) solution, drive Productivity Improvement eliminating manual staff checks further improved auto-approval
Slide 22: Sustainability Focus
Sustainability Focus Sustainability Progress in Q3FYE25 Environmental Economy Social Governance Task Force on Climate – Greenhouse Gas (GHG) Sustainability Week & Related Financial Inventory Social and Green ESG Awareness Training Disclosures Financing Target 25% carbon emission Inaugural Sustainabi
Slide 23: Corporate Social Responsibilities Key Activities in FYE25
Corporate Social Responsibilities Key Activities in FYE25 Empowering communities through ongoing business transformation and engagement efforts YTD Achievement Q3FYE25 Activities Environmental Initiatives Social Contribution Initiatives RM2.2Mil AEON CREDIT ANNUAL COASTAL CLEAN-UP MALAYSIAN AEON FOU
Slide 24: AEON Bank
AEON Bank FYE25 Strategic Initiatives for Personal and Business Banking Empowering Future Generation • On 1 Aug 24, the Company subscribed for of Leaders 100 mil new ordinary shares at RM1.00 each in AEON Bank, raising its AEON Bank and Universiti Malaya sign shareholding from 175 mil to 275 mil MoU
Slide 25: Appendices
APPENDICES ———EE
Slide 26: Performance Highlights
Performance Highlights Q3 Q1 Q2 Q3 9M 9M (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE25 FYE24 FYE25 Total Transaction & Financing 1,823.9 1,975.0 2,158.0 2,118.7 -1.8% 16.2% 5,446.1 6,251.7 14.8% Volume Easy Payment Financing 819.2 963.9 1,015.5 837.1 -17.6% 2.2% 2,480.9 2,816.5 13.5% Payment Business
Slide 27: Financial Summary
Financial Summary Q3 Q1 Q2 Q3 (RM mil) QoQ YoY FYE24 FYE25 FYE25 FYE25 Easy Payment Financing 7,646.0 8,085.7 8,398.3 8,524.7 1.5% 11.5% Payment Business 766.7 804.1 842.8 905.0 7.4% 18.0% Personal Financing 3,490.0 3,763.6 3,957.4 4,235.5 7.0% 21.4% Total Financing Receivables 11,902.7 12,653.4 13,
Slide 28: Operating Income
Operating Income Q3 Q1 Q2 Q3 9M 9M (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE25 FYE24 FYE25 Easy Payment Financing 287.7 307.6 316.7 320.1 1.1% 11.3% 849.9 944.4 11.2% Payment Business 45.5 45.9 47.3 50.3 6.3% 10.6% 132.6 143.5 8.3% Personal Financing 149.6 165.2 173.9 187.9 8.1% 25.6% 418.9 527.0 2
Slide 29: Total Expenses
Total Expenses Q3 Q1 Q2 Q3 9H 9M (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE25 FYE24 FYE25 Impairment Loss on Receivables 182.8 163.5 193.6 215.3 11.2% 17.8% 456.0 572.4 25.5% Personnel Expenses 64.9 64.2 71.6 72.8 1.6% 12.2% 181.1 208.6 15.2% Advertising & Promotion (A&P) 6.5 15.3 13.2 15.3 15.9% 13
Slide 30: Financial Indicators
Financial Indicators Q3 9M FYE22 FYE23 FYE24 FYE25 FYE25 PBT (RM mil) 526.8 547.0 565.2 87.9 333.8 PAT (RM mil) 365.4 417.7 424.0 62.1 239.6 Weighted average no. of ordinary shares (mil) 255.3 255.3 510.6** 510.6** 510.6** Basic EPS (RM)* 0.70 0.80 0.81 0.63 0.63 NTA per share (RM)* 3.9 4.6 5.2 5.3
Slide 31: Disclaimer
Disclaimer This document has been prepared by AEON Credit Service (M) Berhad (“AEON Credit” or the “Group”) 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, w
Slide 32: Thank You
THANK YOU Mr Lee Kit Seong Ms Lee Siew Tee Investor Relations Team Chief Corporate Officer Chief Financial Officer ir_info@aeoncredit.com.my leeks@aeoncredit.com.my stlee@aeoncredit.com.my Level 18, UOA Corporate Tower, www.aeoncredit.com.my Avenue 10, The Vertical, Bangsar South City, 03-2772 9000
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