AEON Credit Service (M) Bhd. · MYX:AEONCR
AEON Credit Service (M) Bhd — Shareholder Meeting (June 2019)
32 slides from AEON Credit Service (M) Bhd's shareholder meeting presentation, Jun 20, 2019
Slide 1: Annual General Meeting
JEON Annual General Meeting Fa) AEON CREDIT SERVICE
Slide 2: Contents
Contents Financial Overview Operational Overview Sustainability & CSR activities Minority Shareholders Watch Group(MSWG) – Q & A 2
Slide 3: Financial Overview
JEON Financial Overview
Slide 4: Key Highlights
Key Highlights “ FYE2019 results reflected the effectiveness of our initiatives put forward. We will continue to create value by focusing on quality, digitalisation and efficiency. ” FYE 2019 Total Transaction & Financing Revenue PAT Volume +31.8% YoY +10.6% YoY +18.2% YoY Gross Financing Receivable
Slide 5: Income Statement
Income Statement Steady YoY growth in top-line and bottom-line Total Transaction & Revenue PAT Financing Volume (RM mil) (RM mil) (RM mil) 5,336 1,366 355 1,235 4,015 4,048 1,102 300 265 3,406 3,616 872 965 216 228 FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE 15 16 17 18 19 15 16 17 1
Slide 6: Balance Sheet
Balance Sheet Healthy with greater financing receivables growth YoY Financing Receivables ROA CAR (RM mil) (%) (%) 8,692 5.0 25.1 7,319 22.4 6,591 4.1 4.3 21.4 20.2 4.0 4.0 19.5 5,497 4,517 FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE 15 16 17 18 19 15 16 17 18 19 15 16 17 18 19
Slide 7: Contribution by business segments
Contribution by business segments Volume growth driven by Personal Financing , Motorcycle Financing and Credit Card FYE15 FYE16 FYE17 FYE18 FYE19 Total Transaction & Financing Volume 6,000 15 Volume (RM mil) 30 Business segments YoY (%) 288 Credit card +27.6 5,000 721 21 27 Personal Financing +56.0
Slide 8: Segmental Breakdown: Total Financing Receivables
Segmental Breakdown: Total Financing Receivables 18.8% growth YoY mainly from Personal & Motorcycle Financing, Credit Card Receivables – Changes (%) YoY Gross Receivables (RM mil) Credit card +19.1 FYE19 Personal Financing +26.6 10,000 FYE18 Q1 Q2 Q3 Q4 Motorcycle Financing +13.5 65 65 9,000 339 Aut
Slide 9: Receivables Collection Performance
Receivables Collection Performance Stable collection ratio derived from better quality receivables & strategic collection operation Receivables Collection Trend 100.00 97.40 97.62 97.97 Current 90.00 81.73 83.13 82.58 D1 80.00 72.24 71.24 70.00 69.32 D2 60.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FYE1
Slide 10: Net Credit Cost
Net Credit Cost Well-managed credit cost supported by better quality receivables and higher bad debt recovery Net Credit Cost (NCC) Trend 3.32 3.73 3.56 3.31 3.28 3.43 3.43 3.27 2.19 2.08 2.16 90 4 1.70 80 3 70 60 2 50 1 40 30 0 47 61 51 42 55 62 61 50 32 52 39 52 20 -1 10 0 -2 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 11: Non-Performing Loans
Non-Performing Loans Achieved lower NPL contributed by delinquent receivables collection improvement Non-Performing Loans (NPL) Trend 12,000 4 2.74 2.43 2.33 2.28 2.43 2.48 2.48 2.33 2.26 3 2.07 2.05 2.04 10,000 2 8,000 1 6,000 0 4,000 -1 2,000 -2 5,825 6,069 6,362 6,591 6,832 7,046 7,203 7,319 7,50
Slide 12: Dividend
Dividend Consistent dividend commitment Dividend FYE16 FYE17 FYE18 FYE19 Interim dividend (cent) 29.85 30.50 21.13 22.25 Payout amount (RM’000) 42,984 43,920 52,225 55,784 Final dividend (cent)* 29.60 32.50 20.00 22.35 Payout amount (RM’000)* 42,624 46,800 49,937 56,063 Total dividend (cent) 59.50 6
Slide 13: Operational Overview
JEON Operational Overview
Slide 14: Key Policy: FYE19 vs FYE20
Key Policy: FYE19 vs FYE20 FYE19 FYE20 Continue M40 customer Asset Quality Customer segment expansion expansion Database AEON customer integration Database integration Customer integration E-wallet and E-money Strengthening transaction Product & Service introduction settlement functions
Slide 15: Customer: Asset Quality
Customer: Asset Quality Continue M40 customer expansion To achieve better asset quality via customised offerings E.g.: Platinum Card and Risk-Based Pricing products (launched in FYE19) 【Customer Income Group Ratio】 B40 M40 FYE18 FYE19 Target 60% 40% 15
Slide 16: Customer: AEON Ecosystem
Customer: AEON Ecosystem (Cont’d) Database integration To tap into the existing 6 million AEON Group members & integrating across AEON business alliances 1. AEON Loyalty Point program for tenants with AEON group 2. Expand external privilege merchant e.g. E-commerce, F&B etc 3. Develop business allia
Slide 17: Product & Service Diversification
Product & Service Diversification Strengthening transaction settlement functions AEON E-wallet + Member Plus Visa Card To create a common platform for all AEON members and the cashless solution has been implemented at all AEON retail outlets nationwide (launched in FYE19) 1 for ALL FYE20 E-Money & E
Slide 18: Product & Service Diversification (Cont'd)
Product & Service Diversification (Cont’d) Develop new product schemes to meet customers needs ・Objective Financing: From Consumer Durable Products to other purposes, e.g.: healthcare, wedding, renovation, etc. ・SME Financing: Existing Money lending licence Equipment hire purchase Working capital ・C
Slide 19: Business Model: Continue Customer Touchpoint Improvement
Business Model: Continue Customer Touchpoint Improvement Introduce 2-Way customer touchpoints Multiple channels to capture more customers Existing Touchpoint B2B2C Financing Merchants Customers Additional Touchpoint B2C2B Financing Customers Merchants New system and mobile app are developing for B2C
Slide 20: Operation: Productivity & Efficiency Improvement
Operation: Productivity & Efficiency Improvement To improve efficiency and productivity through Artificial Intelligence (AI) data analytics, robotic process automation (RPA) and mobile application Shortening the assessment Flattening the peak operating Promoting paperless operation process turnaro
Slide 21: Sustainability & CSR activities
Sustainability & CSR activities 21
Slide 22: FYE2019 Sustainability Activities
FYE2019 Sustainability Activities Young Financial Savvy Introduction of AEON Member Programme Plus Card & AEON Wallet 22
Slide 23: FYE2019 Sustainability Activities
FYE2019 Sustainability Activities AEON Hometown Forest Programme & Say No To Plastic Campaign Coastal Clean Up Activities 23
Slide 24: Participation in Malaysian AEON Foundation - Charity Programmes
Participation in Malaysian AEON Foundation - Charity Programmes Deepavali Lights Of Love Joy Of Christmas Orang Asli Project - Light Up Lives 24
Slide 25: MSWG - Q & A
MSWG - Q & A AEON Credit Service (M) 25
Slide 26: MSWG letter to the Board (page 1)
JEON 10/06 2019 MON 10:39 FAX oo1/002 MINORITY SHAREHOLDERS WATCH GROUP Shareholder Activism and Protection of Minority Interest 10 June 2019 (Fax No: 603-77201111) The Board of Directors AEON Credit Service (M) Berhad Lot 6.05, Level 6, KPMG Tower 8, First Avenue, Bandar Utama 47800 Petaling Jaya S
Slide 27: MSWG letter to the Board (page 2)
10/06 2019 MON 10:49 FAX (qoo2/o02 MSWC AEON Credit Service (M1) Berhad | 22" AGM 20 June 2019 Poge 2 of 2 3. On your credit cards business, you have achieved close to 280,000 principal credit cards in circulation for the financial year. (page 25, Annual Report 2018) @) What is the target for credit
Slide 28: Questions from MSWG
Questions from MSWG No. Question Answer 1. As stated in the Chairman’s Statement ・ In order to tap into the M40 segment (page 20, Annual Report 2018) during the and improve on assets quality, the last financial year, the Company has Company launched a risk based embarked on a number of new and prici
Slide 29: Questions from MSWG
Questions from MSWG No. Question Answer 2 Considering that your Easy Payment Schemes (EPS) and PFS had registered RM3.73 billion in financing volume for FYE2019, please address the following: (a) What is the risk based assessment criteria (a) We have stringent credit for the EPS and PFS? assessment
Slide 30: Questions from MSWG
Questions from MSWG No. Question Answer 3 On your credit cards business, you have achieved close to 280,000 principal credit cards in circulation for the financial year. (page 25, Annual Report 2018) (a) What is the target for credit cards in (a) We target to maintain double digit growth circulation
Slide 31: Questions from MSWG
Questions from MSWG No. Question Answer 4 How much progress and traction have ・ As of May 2019, we have issued 700,000 you achieved for your e-wallet product e-money cards with 200,000 downloads for which was launched in November 2018? e-wallet. 5 Moving forward, AEON Credit will be ・ We have planne
Slide 32: Q&A
JEON Q&A M) Berhad 32
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