Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q2 FYE2025 Earnings Presentation
33 slides from Aeon Credit Service (m) Bhd's earnings presentation, Sep 26, 2024
Slide 1: Q2 FYE25 Financial Results
Q2 FYE25 Financial Results 26 September 2024
Slide 2: Table of Contents
Table of Contents 03 KEY HIGHLIGHTS 09 FINANCIAL OVERVIEW 18 KEY STRATEGIES & MOVING FORWARD 26 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 appreciated 5.9% 2Q24 1.9% 2Q24 3.3% Jul24 against US dollar Q2FYE25 Progress Sales & Receivables • Enhance Vehicle Financing scheme for premium brand models to drive quality receivables acquisition • Payment Bus
Slide 5: Q2FYE25 Overview of Financial & Key Products
Q2FYE25 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 RM541.4 MIL RM119.9 MIL RM71.2 MIL 13.3% Growth +14.8% YoY -24.7% YoY -40.8% YoY -4.5%
Slide 6: Q2FYE25 Focus Area: Vehicle Financing
Q2FYE25 Focus Area: Vehicle Financing Growth in Vehicle Financing underpinned by effective growth strategies Vehicle Financing sales increased to RM921.0 mil in Vehicle Financing Q2FYE25 +31.0% YoY Sales (‘mil) +7.4% QoQ 858 921 703 Q2 Q1 Q2 FYE24 FYE25 FYE25 • Improve e-KYC adoption rate via incent
Slide 7: Q2FYE25 Focus Area: Personal Financing
Q2FYE25 Focus Area: Personal Financing Continual Personal Financing growth through improved productivity of overall channels Personal Financing Personal Financing sales increased to 562K in Q2FYE25 Sales (‘mil) +12.5.% YoY +18.7% QoQ 562 500 • To increase Personal Financing sales and acquire new 473
Slide 8: Q2FYE25 Focus Area: Payment Business
Q2FYE25 Focus Area: Payment Business Payment Business sales growth expansion through card rebranding Card Privilege Revamp AEON Lounge Virtual Card Every 20th and 28th Up to 4X points of the month On daily spending in AEON • Credit card in circulation (CIC) grew by 5.3% QoQ, driven Credit card in ci
Slide 9: Financial Review
FINANCIAL REVIEW ———EE
Slide 10: Financial Performance
Financial Performance Strong sales growth driven by effective marketing strategies Q2FYE24 Q2FYE25 Q2 QoQ Q2 YoY 1HFYE24 1HFYE25 1H YoY Total Income 521.2M 593.5M +0.6% +13.9% 1,023.1M 1,183.3M +15.7% Operating Expenses 275.2M 368.8M +11.2% +34.0% 560.4M 700.4M +25.0% Impairment Loss 120.6M 193.6M +
Slide 11: Total Transaction & Financing Volume
Total Transaction & Financing Volume Notable growth in overall volume lead by Personal Financing 18.7% QoQ growth Total Transaction & Financing Volume (RM mil) Transaction & Volume by Types Easy Payment Payment Business Personal Financing 45.0% 47.1% 580 562 538 Q2 Q2 964 1,016 500 485 473 FYE24 FYE
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 64.9% 63.6% 8,086 8,398 7,510 3,958 Q2 Q2 3,763 3,317 FYE24 FYE25 804 843 739 28.7% 6.4% 30.0% 6.4
Slide 13: Receivables Collection
Receivables Collection Sequential continual improvement in collection performance Current Collection Ratio (%) D1 & D2 Collection Ratio (%) Collection performance continues to improve QoQ due to: • Implementation new staff incentive schemes and task force set up to optimise collection activities and
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 Q2 Q1 Q2 (RM mil) FYE24 FYE25 FYE25 2.98 2.46 2.37 Receivables 11,566 12,653 13,199 Balance D3+ 345 312 313 NPL (%) 2.98 2.46 2.37 11,566 12,653 13,199 Q2 Q1 Q2 Lower QoQ for NPL and higher NCC:
Slide 15: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Loan Loss Coverage Ratio continues to remain healthy Expected Credit Loss (ECL) provision 219% 222% 230% attributed by: 26 • Bad debt written off mainly contributed by Motorcycle Financing and Personal Financing from the younger age group 162 168 168 • Actions have been
Slide 16: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Sustained diligence in managing operation costs Q2 Q2 1H 1H RM mil YoY YoY FYE24 FYE25 FYE24 FYE25 Total Operating Income 521.2 593.5 13.9% 1,023.1 1,183.3 15.7% Personnel Expenses 63.3 71.6 13.2% 116.2 135.8 16.8% Advertisement & Promotion 8.6 13.2 54.1% 18.3 28.5 56.1% O
Slide 17: Dividend
Dividend Declared interim dividend of 14.25 sen for 1HFYE25 Historical Dividend Data 41.0% 50.0% 500.0 33.9% 30.3% 34.0% 40.0% 30.0% 400.0 20.0% 10.0% 300.0 0.0% -10.0% 200.0 -20.0% 100.0 -30.0% -40.0% 123.8 365.4 126.4 417.7 144.2 424.0 72.8 177.6 - -50.0% FYE22 FYE23 FYE24 1H FYE25 Payout Amount (
Slide 18: Key Strategies and Moving Forward
KEY STRATEGIES AND MOVING FORWARD
Slide 19: FYE25 Indicators
FYE25 Indicators Continual delivery of sustainable returns to shareholders Indicators Actual Remark FYE25 1HFYE25 • Robust loan growth driven by strong market demand for Vehicle Loan Growth ±10% 14.1% Financing and Personal Financing • CIR grew aligned with sales and business expansion Cost-to-Incom
Slide 20: 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 21: Q2FYE25 Business Strategy Update: Malaysian Essential Lifestyle App
Q2FYE25 Business Strategy Update “Malaysian Essential Lifestyle App” for seamless shopping and financing solutions AEON Living Zone 1 Become AEON Point Member • No AMP card required to register as AEON Point Member 2 Pre-approval credit limit via App • Customer can get pre-approval credit limit via
Slide 22: Q2FYE25 Business Strategy Update: Accelerating Automation
Q2FYE25 Business Strategy Update Accelerating automation to enhance customers’ digital experience Advancement in Assessment and collection to • Launch of Credit Card digital onboarding with pre-assessment with drive Productivity Improvement e-KYC Sales Application Screening Collection • Turnaround t
Slide 23: Sustainability Focus
Sustainability Focus Sustainability Progress in Q2FYE25 AEON Credit has been honoured with the prestigious “Outstanding Community Engagement Award” at the Sustainability and CSR Malaysia Awards 2024 Environmental Economy Social Governance Task Force on Climate – Related Financial Greenhouse Gas (GHG
Slide 24: Corporate Social Responsibilities Key Activities in Q2FYE25
Corporate Social Responsibilities Key Activities in Q2FYE25 Strengthening communities through active socially impactful initiatives and outreach Malaysian AEON Foundation AEON Credit Financial Literacy Programme PREPARATION FOR MONSOON SEASON UNDER MAF AEON BANTU INITIATIVE AEON FINANCIAL SAVVY PROG
Slide 25: AEON Bank
AEON Bank FYE25 Strategic Initiatives for Personal and Business Banking • On 1 Aug 24, the Company subscribed for 100 mil new ordinary shares at RM1.00 each in AEON Bank, raising its shareholding from 175 mil to 275 mil shares, while maintaining a 50% equity interest. • This additional subscription
Slide 26: Appendices
APPENDICES ———EE
Slide 27: Performance Highlights
Performance Highlights Q2 Q1 Q2 1H 1H (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE24 FYE25 Total Transaction & Financing 1,789.9 1,975.0 2,158.0 9.3% 20.6% 3,622.2 4,133.0 14.1% Volume Easy Payment Financing 804.9 963.9 1,015.5 5.4% 26.2% 1,661.6 1,979.3 19.1% Payment Business 485.2 537.6 580.3 8.0% 1
Slide 28: Financial Summary
Financial Summary Q2 Q1 Q2 (RM mil) QoQ YoY FYE24 FYE25 FYE25 Easy Payment Financing 7,510.1 8,085.7 8,398.3 3.9% 11.8% Payment Business 738.8 804.1 842.8 4.8% 14.1% Personal Financing 3,316.7 3,763.6 3,957.4 5.2% 19.3% Total Financing Receivables 11,565.6 12,653.4 13,198.5 4.3% 14.1% Impairment Los
Slide 29: Operating Income
Operating Income Q2 Q1 Q2 1H 1H (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE24 FYE25 Easy Payment Financing 284.1 307.6 316.7 2.9% 11.4% 562.2 624.3 11.0% Payment Business 44.3 45.9 47.3 3.2% 7.0% 87.1 93.2 7.0% Personal Financing 140.1 165.2 173.9 5.3% 24.1% 268.9 339.1 26.1% Brokerage Fee* 3.2 3.5 3
Slide 30: Total Expenses
Total Expenses Q2 Q1 Q2 1H 1H (RM mil) QoQ YoY YoY FYE24 FYE25 FYE25 FYE24 FYE25 Impairment Loss on Receivables 120.6 163.5 193.6 18.4% 60.5% 273.1 357.1 30.7% Personnel Expenses 63.3 64.2 71.6 11.6% 13.2% 116.2 135.8 16.8% Advertising & Promotion (A&P) 8.6 15.3 13.2 -13.3% 54.1% 18.3 28.5 56.1% Oth
Slide 31: Financial Indicators
Financial Indicators Q2 1H FYE22 FYE23 FYE24 FYE25 FYE25 PBT (RM mil) 526.8 547.0 565.2 101.1 246.0 PAT (RM mil) 365.4 417.7 424.0 71.2 177.6 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 0.70 0.70 NTA per share (RM)* 3.9 4.6 5.2 5.3
Slide 32: 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 33: 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
AEON Credit Service (M) Berhad — Q2 FYE2025 Earnings Presentation on 6ix