Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q4 FYE2025 Earnings Presentation
32 slides from Aeon Credit Service (m) Bhd's earnings presentation, Apr 8, 2025
Slide 1: Q4 FYE25 Financial Results
Q4 FYE25 Financial Results 8 April 2025
Slide 2: Table of Contents
Table of Contents 03 KEY HIGHLIGHTS 12 FINANCIAL OVERVIEW 22 KEY STRATEGIES & MOVING FORWARD 25 APPENDICES
Slide 3: Key Highlights
KEY HIGHLIGHTS ——————
Slide 4: Economic Outlook and Financial Results Overview
Economic Outlook and Financial Results Overview Robust revenue growth supported by stable economic outlook; Lower PAT attribute to higher operating expenses and share of losses from associate Economic Outlook • Domestic demand growth on increased consumer spending, rising minimum wages and continued
Slide 5: FYE25 Indicators
FYE25 Indicators Continual delivery of sustainable returns to shareholders Actual Indicators TARGET FYE21 FYE22 FYE23 FYE24 Remark FYE25 FYE25 FYE2026 • Attributed to digital 9.9% 12.9% 15.4% ±10% ±10% onboarding initiatives and Loan Growth -2.2% ±10% -3.0% growth strategy to acquire M40 customer •
Slide 6: FYE25 – Business Expansion via Channels and Customer development
FYE25 – Business Expansion via Channels and Customer development Improvement in market share underpinned by effective marketing strategies and onboarding initiatives Plans Actions Branding Digital Onboarding Premium Products • Enhanced Vehicle Financing scheme for premium brand models to drive quali
Slide 7: FYE25 – Building AEON Living Zone
FYE25 – Building AEON Living Zone “Malaysian Essential Lifestyle App” for seamless shopping and financing solutions AEON Wallet UI/UX Update Actions • AEON Wallet was enhanced in Jul24 to enable instant membership, virtual card issuance and AEON Group’s promotional offers • Self-onboarding applicati
Slide 8: FYE25 – Digitalise Assessment and Collection Process
FYE25 – Digitalise Assessment and Collection Process Accelerating automation to enhance customers’ digital experience • Assessment Actions • Collection Actions Advancement in Assessment and collection to • • Integration of Optical Character Launched of New drive Productivity Improvement Recognition
Slide 9: FYE25 – AEON Bank Progress
FYE25 – AEON Bank Progress Expanding AEON Living Zone with Strategic Initiatives FYE25 FYE26 onward Business Banking Term • Target to launch of business current Personal Banking Deposit-i account and term deposit-i FYE26 Savings/Deposits-i Loyalty Program Personal Financing-i Term Deposit-i • AEON •
Slide 10: FYE25 – Sustainability Updates
FYE25 – Sustainability Updates Embedding Sustainability across AEON Credit business Environmental Economy Upgraded energy-efficient SLL Performance system (under audit) 40% carbon Enhanced energy-efficient management, *SPT-1 2nd year SPT-1 and SPT-2 for Sustainability promoted employee awareness and
Slide 11: FYE25 – Talent Development and CSR Initiatives
FYE25 – Talent Development and CSR Initiatives HUMAN CAPITAL DEVELOPMENT RECOGNITION FTSE4GOOD BURSA Employee Development Employee Engagement Score MALAYSIA INDEX NACGSA Training hours Investment in Improved E-NPS This inclusion score driven by reflects ACSM’s employee +79 117k commitment to skillse
Slide 12: Financial Review
FINANCIAL REVIEW EE —————
Slide 13: Financial Performance
Financial Performance • Total Income grew by 16.6% driven by continued positive momentum in sales and receivable, both over 15.0%YoY • Operating expenses (excluding IL) increased, led by higher personnel costs, IT expenses and marketing expenses • Impairment loss provision rose by 32.6% due to highe
Slide 14: Total Transaction & Financing Volume
Total Transaction & Financing Volume Notable growth in all products, lead by Personal Financing 25.4% YoY growth Total Transaction & Financing Volume (RM mil) Transaction & Volume by Types Easy Payment Payment Business Personal Financing 46.1% 43.3% 657 664 618 Q4 Q4 937 854 837 568 FYE24 FYE25 546
Slide 15: 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 63.9% 61.9% 8,525 8,746 7,816 4,413 Q4 Q4 4,235 3,622 FYE24 FYE25 961 905 794 29.6% 31.3% 6.5% 6.8
Slide 16: Receivables Collection
Receivables Collection Introducing collection management system to improve collection performance and productivity Quarterly Collection Ratio (%) Yearly Average Collection Ratio (%) Overall collection performance remained stable YoY. Focus remains on continuously enhancing collection management and
Slide 17: 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 and NCC Movement: 2.89 2.57 2.64 5.75% 4.94% • NPL stood at 2.64%, remained healthy in 4.33% line with receivables growth 3.87% 2.57% 3.35% • Higher NCC contributed by new sales and rece
Slide 18: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Loan Loss Coverage Ratio continues to remain healthy Q4FYE25 movement: 221% 231% • Impairment loss provision reduced by 13.9% QoQ 209% 221% 209% driven by refinement LGD in ECL model 47 14 • Bad debt write off recorded at RM171 mil, 82 remaining stable compared to the p
Slide 19: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Higher cost on Personnel, IT and Revenue-Related Expenses Q4 Q4 RM mil YoY FYE24 FYE25 YoY FYE24 FYE25 Total Operating Income 548.7 663.3 20.9% 2,106.9 2,457.3 16.6% Personnel Expenses 65.0 71.9 10.7% 246.1 280.5 14.0% Advertisement & Promotion 13.7 8.4 -39.1% 38.5 52.2 35
Slide 20: Dividend
Dividend Maintaining a payout ratio >30% to reward shareholders Historical Dividend Data 39.6% 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% 123.8 365.4 126.4 417.7 144.2 424.0 146.8 370.6 - -50.0% FYE22 FYE23 FYE24 FYE25 Payout Amount
Slide 21: Corporate Social Responsibilities Key Activities in Q4FYE25
Corporate Social Responsibilities Key Activities in Q4FYE25 Empowering communities through on-going engagements and environmental conservation Malaysia AEON Foundation Environmental & Social Inclusion Initiatives 58 students participated in 161 families in Johor 160 blood pints donated during 1,000
Slide 22: Key Strategies and Moving Forward
KEY STRATEGIES AND MOVING FORWARD
Slide 23: Key Business Strategies In FYE26
Key Business Strategies In FYE26 Expanding brand visibility & bringing “Finance” closer to everyone 1 Robust Financial Performance 2 Collection Cost Optimisation Easy Payment Personal Financing Payment Business • Strategic • Continuous • Drive profitability partnership and digital adoption via CIC e
Slide 24: Key Business Strategies In FYE26 – Cross selling via wallet integration
Key Business Strategies In FYE26 Cross selling via wallet integration and group collaboration program to bringing “Finance” closer to everyone 3 Drive AEON Group Synergy 4 Talent Development & ESG Initiatives Establish and Continue AEON Wallet Employee Promote AEON features enhancement Development L
Slide 25: Appendices
APPENDICES —————EeE
Slide 26: Performance Highlights
Performance Highlights Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE24 FYE25 YoY FYE24 FYE25 FYE25 FYE25 FYE25 Total Transaction & Financing 1,853.6 1,975.0 2,158.0 2,118.7 2,162.2 2.1% 16.7% 7,299.8 8,413.9 15.3% Volume Easy Payment Financing 854.4 963.9 1,015.5 837.1 937.0 11.9% 9.7% 3,335.3 3,753.4 12.5% P
Slide 27: Financial Summary
Financial Summary Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE24 FYE25 FYE25 FYE25 FYE25 Easy Payment Financing 7,816.8 8,085.7 8,398.3 8,524.7 8,746.5 2.6% 11.9% Payment Business 793.9 804.1 842.8 905.0 960.7 6.2% 21.0% Personal Financing 3,621.6 3,763.6 3,957.4 4,235.5 4,412.9 4.2% 21.8% Total Financing Re
Slide 28: Operating Income
Operating Income Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE24 FYE25 YoY FYE24 FYE25 FYE25 FYE25 FYE25 Easy Payment Financing 294.7 307.6 316.7 320.1 322.1 0.6% 9.3% 1,144.6 1,266.4 10.6% Payment Business 47.6 45.9 47.3 50.3 54.3 7.8% 14.0% 180.2 197.8 9.8% Personal Financing 155.9 165.2 173.9 187.9 195.0 3
Slide 29: Total Expenses
Total Expenses Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE24 FYE25 YoY FYE24 FYE25 FYE25 FYE25 FYE25 Impairment Loss on Receivables 114.0 163.5 193.6 215.3 185.3 -13.9% 62.6% 569.9 757.7 32.6% Personnel Expenses 65.0 64.2 71.6 72.8 71.9 -1.2% 10.7% 246.1 280.5 14.0% Advertising & Promotion (A&P) 13.7 15.3 1
Slide 30: Financial Indicators
Financial Indicators FYE22 FYE23 FYE24 FYE25 PBT (RM mil) 526.8 547.0 565.2 513.5 PAT (RM mil) 365.4 417.7 424.0 370.6 Weighted average no. of ordinary shares (mil) 255.3 255.3 510.6** 510.6** Basic EPS (RM)* 0.70 0.80 0.81 0.73 NTA per share (RM)* 3.9 4.6 5.2 5.5 ROE (%) 19.2 18.8 16.7 13.6 ROA (%)
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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