AEON Credit Service (M) Bhd. · MYX:AEONCR
AEON Credit Service (M) Bhd — Investor Presentation (June 2023)
23 slides from AEON Credit Service (M) Bhd's investor presentation, Jun 21, 2023
Slide 1: Presentation to Shareholders by Chief Financial Officer
21 JUNE 2023 Presentation to Shareholders by Chief Financial Officer
Slide 2: Table of Contents
3 9 15 Table of Financial Overview Business and Operational Key Strategies and Moving Forward Contents Highlights
Slide 3: Financial Overview
ea AEON CREDIT SERVICE ‘CREDIT SERVICE —_.. Financial
Slide 4: Operating Environment Overview
Operating Environment Overview Registered growth across all key segments despite challenging landscape Transaction & Financing Volume RM2.50 BIL RM1.94 BIL RM1.81 BIL +39% vs. FYE22 +44% vs. FYE22 +10% vs. FYE22 Global Economy Vehicle Financing Personal Financing Payment Business • Global economy sl
Slide 5: FYE2023 Financial Highlights
FYE2023 Financial Highlights Achieved a record high net profit, driven by strategic marketing activities and collaboration campaigns as well as disciplined cost management Profit After Tax RM 417.7 million 14.3% Total Transaction & Revenue Cost-to-Income Ratio Gross Receivables ROE Financing Volum
Slide 6: Contribution by Business Segment
Contribution by Business Segment Registered growth across all key segments Total Transaction & Financing Loan growth momentum Gross Receivables (RM mil) Volume (RM mil) contributed by vehicle and personal financing business 31% YoY 9.9% YoY Instant conditional approval 6,247 scheme backed by
Slide 7: Collection & Credit Cost
Collection & Credit Cost Balanced approach of sales expansion and credit management; strengthen risk-based approach collection strategy Average Collection (%) Non-Performing Loan (“NPL”) (%) 97.85 97.26 97.26 • Collection was driven 0.2% YoY 97.26 by effective credit Not past due • Higher due to l
Slide 8: Dividend
Dividend Consistently paying out >30% of PAT to our Valued Shareholders Historical Dividend Data 33.9% 500.0 31.5% 31.5% 31.9% 30.3% 36.0% 31.0% 400.0 Entitlement Date 26.0% 5 July 2023 300.0 21.0% 16.0% 200.0 Payment Date 11.0% 100.0 20 July 2023 6.0% 111.9 354.6 91.9 292.0 74.6 234.0 123.8 365.4 1
Slide 9: Business and Operational Highlights
Business and Operational Highlights
Slide 10: AEON Wallet Revamp
AEON Wallet Revamp Upgraded AEON Wallet usability and improved user experience Wallet New Sign up QR Payment After Revamp WHAT’S NEW QR payment increased New sign increased by Total Transaction & Financing by 36% YoY 102% YoY New wallet interface Volume by products (%) design launched Sep’22 37%
Slide 11: Pre-assessment
Pre-assessment Offer credit limit via digital onboarding process Pre-Assessment 1 2 Application Count 3 Achieved 32% pre-assessment Authentication Minimum info entry Assessment application in Q1FYE24 32% 9% 13% Q3 Q4 Q1 FYE23 FYE23 FYE24 Backed by e-KYC and external score model, eligible customer
Slide 12: Sustainability Strategy
Sustainability Strategy The Group aims to be a leading ESG Company in the financial services industry ESG FYE2023 Focus 3-Year Sustainability Roadmap Formulation of 3-Year Sustainability Roadmap • Formulated : Sustainability Commitment Statement 3-year Roadmap with 21 key initiatives • Focus on
Slide 13: Sustainability Initiatives
Sustainability Initiatives Invested RM1.28 million to Corporate Social Responsibility activities Reached out to 6,519 1,573 Social communities ACSM Volunteers Environmental Education MAF AEONBantu MAF AEONBersamamu Removed 3.6 tonnes of MAF Smart Classroom Project recyclable waste via AEON Installed
Slide 14: Awards & Recognition
Awards & Recognition Multiple awards and recognition from industry as a credential for our operational, corporate and sustainability excellence ASIAMONEY AWARDS 2022 THE EDGE ESG AWARDS 2022 • Most Outstanding Company in Malaysia – Financials • Most Consistent Performer Sector under Asia’s over Five
Slide 15: Key Strategies and Moving Forward
Key Strategies and Moving Forward
Slide 16: Our Target and AEON Living Zone
Our Target To be innovative Retail Financing Company with large app user base by FY2030 Recommend d / Advice AEON Living Zone Life SME Improvement Connect all customers via collaboration with AEON Group of Common ID Companies and external parties by offering membership for Group Data benefits and lo
Slide 17: Digital Onboarding
Digital Onboarding To drive receivable growth via end-to-end digital onboarding from customer application to disbursement within 1 day Contact E-Mandate & E-Sales Digital E-KYC Verification E-Sign Claim Onboarding End-to-End Digital Onboarding Provide instant approval to good score customer Expand d
Slide 18: New AEON Wallet and Membership Expansion
New AEON Wallet and Membership Expansion Consolidate all AEON Group service into AEON Group Wallet Develop New Wallet app and establish common ID to link all AEON Points accounts to AEON Group membership Store Offer platform EC Gaming Investment Insurance Earn points and enjoy membership privileges
Slide 19: Redefining our Assessment Process
Redefining our Assessment Process Automate decision making to improve judgement accuracy and productivity Implement AI Scoring Model Current 4% Productivity LOS 3.0 enhancement Increase Implement AI scoring models to accelerate of approval ratio and improve accuracy in decision making Page 19
Slide 20: Collection Management
Collection Management Advanced Collection Approach via New Collection System to Improve Efficiency & Productivity AI Risk-Based Scoring LOW HIGH Collection System Risk Based Collection Replacement Data Driven AI Risk-Based Score Card Collection & Credit Scoring Implemented Collection Scoring Strateg
Slide 21: Sustainability Focus
Sustainability Focus Sustainability Statement Shaping our future in financial services through sound, innovative and sustainable ESG practices and initiatives Environmental Economy Social Governance Carbon Emission Reduction Green and Social Financing Education and CSR Taskforce on Climate-related (
Slide 22: Digital Bank Timeline for FYE22–23
Digital Bank Timeline for FYE22–23 Launch within 24 months from April 2022 AEON Consortium (“AEON”) People Hiring of Key Personnel completed + Dynamic & talented tech team System Development AEON Financial AEON Credit Service Co., Ltd. Service (M) System development is on schedule Berhad Sys
Slide 23: Thank You
ea AEON CREDIT SERVICE ‘CREDIT SERVICE > ssn ae Thank You
AEON Credit Service (M) Berhad — Investor Presentation (June 2023) on 6ix