Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q2/1H FYE19 Earnings Presentation
29 slides from Aeon Credit Service (m) Bhd's earnings presentation, Nov 7, 2018
Slide 1: Q2/1H FYE19 Results Update
Listing Board Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code AEONCR/ 5139 Q2/1H FYE19 Results Update 7 Nov 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document has been prepared by AEON Credit Service (M) Berhad (“AEON Credit” or the “Company”) solely for the use at the presentation to analyst and fund managers. The information contained in this document has not been independently verified. No representation or warr
Slide 3: Company & Market Snapshot
Company & Market Snapshot A Distinctive Non-Bank Based Financial Service Provider Offering Easy Payment Schemes, Personal Finance Schemes, Credit Card Issuance, Insurance & Other Services 2018 RM15.70 5 Economic Indicators Share Price Regional Offices (as at 3 Oct 2018) 66 4.9% RM16.46/ 12.10 Branch
Slide 4: Key Highlights: 1H FYE19
Key Highlights: 1H FYE19 Steady asset & profit growth momentum Total Transaction & Revenue PAT Financing Volume RM 657.8 mil RM 179.9 mil RM 2.4 bil +15.4% YoY +7.2% YoY +22.2% YoY Gross Financing ROE NPL Receivables RM 7.9 bil 23.3% 2.07% +11.5% YoY -4.7% YoY +0.4% YoY “ Delivered another quarter o
Slide 5: Income Statement
Income Statement 13.0% YoY PAT growth for Q2, supported by increased transaction & financing volume Total Transaction & Financing Volume Revenue PBT PAT +26.8% YoY +6.7% YoY +11.9%YoY +13.0% YoY +19.1% QoQ +1.8% QoQ -18.9%QoQ -18.2% QoQ (RM mil) (RM mil) (RM mil) (RM mil) 1,304 311 326 332 132 1,095
Slide 6: Balance Sheet
Balance Sheet Healthy balance sheet, supported by growth in financing receivables Total Financing Receivables ROA ROE +12.4% YoY +0.6% YoY -4.7% YoY +5.4% QoQ -0.6% QoQ -2.8% QoQ (RM mil) (RM mil) (RM mil) 28.0 7,450 7,795 5.2 26.1 6,990 4.6 23.3 4.0 Q2 Q1 Q2 Q2 Q1 Q2 Q2 Q1 Q2 FYE18 FYE19 FYE19 FYE1
Slide 7: Segmental Breakdown Summary: Q2FYE19
Segmental Breakdown Summary: Q2FYE19 Total Transaction & Financing Volume (%) Total Financing Receivables (%) 0.5 0.8 ±0%YoY ±0%YoY 14.3 8.5 -0.4%YoY +0.1%YoY 29.0 +0.2%YoY 30.1 +0.2%YoY 26.8 +0.7%YoY 24.5 +1.4%YoY 6.1 5.0 -3.7% 25.5 -1.2%YoY +2.7%YoY 28.8 YoY +0.2%YoY Credit card Personal financing
Slide 8: Segmental Breakdown: Total Transaction & Financing Volume
Segmental Breakdown : Total Transaction & Financing Volume Total grew 27% QoQ, supported by Credit Card, Personal & Motorcycle Financing Credit Card (CC) Personal Financing (PF) Objective Financing (OF) +27.6% YoY +41.7% YoY -21.0% YoY +12.8% QoQ +55.6% QoQ -2.5% QoQ (RM mil) (RM mil) (RM mil) 379 3
Slide 9: Total Transaction & Financing Volume (Cont'd)
Segmental Breakdown: Total Transaction & Financing Volume (Cont’d) Motorcycle & Auto Financing boosted by zero-rated GST in Jun-Aug 2018 Motorcycle Financing (MF) Auto Financing (AF) SME Financing (SME) +34.5% YoY +23.8% YoY No change YoY +11.5% QoQ +10.0% QoQ -12.5% QoQ (RM mil) (RM mil) (RM mil) 3
Slide 10: Segmental Breakdown: Total Financing Receivables
Segmental Breakdown: Total Financing Receivables Total up 11.5% YoY, Personal, Motorcycle & Auto Financing are key contributors Credit Card (CC) Personal Financing (PF) Objective Financing (OF) +11.2% YoY +14.7% YoY -10.5% YoY +4.2% QoQ +6.9% QoQ -2.8% QoQ (RM mil) (RM mil) (RM mil) 640 636 663 431
Slide 11: Total Financing Receivables (Cont'd)
Segmental Breakdown: Total Financing Receivables (Cont’d) Strengthened receivables via M40 market expansion & improving quality in Motorcycle & Auto Financing Motorcycle Financing (MF) Auto Financing (AF) SME Financing (SME) +12.5% YoY +12.2% YoY +6.4% YoY +5.2% QoQ +3.6% QoQ +0.4% QoQ (RM mil) (RM
Slide 12: Receivables Collection
Receivables Collection Continual improvement in collection ratio Improve new receivables quality and collection operation Receivables Collection Trend 100.00 97.29 97.38 97.86 97.85 90.00 83.20 83.39 81.07 80.98 80.00 70.34 71.64 71.66 70.00 68.52 60.00 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FYE17 FYE17 FYE17 F
Slide 13: Net Credit Cost
Net Credit Cost Annualised Net Credit Cost Ratio reflects quality receivables Net Credit Cost (NCC) Trend 90 3.32 3.73 3.56 3.31 3.28 3.43 3.43 3.27 4 80 70 1.7 2.2 3 60 2 50 1 40 30 0 47 61 51 42 55 62 61 50 32 52 20 -1 10 0 -2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FYE17 FYE17 FYE17 FYE17 FYE18 FYE18 FYE18
Slide 14: Non-performing Loans
Non-performing Loans Well-managed NPL, showing improving trend Non-performing Loans (NPL) Trend 12,000 4 2.74 2.48 2.48 2.43 2.33 2.28 2.43 2.33 2.26 3 2.07 10,000 2 8,000 1 6,000 0 4,000 -1 2,000 -2 7,795 0 -3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FYE17 FYE17 FYE17 FYE17 FYE18 FYE18 FYE18 FYE18 FYE19 FYE19
Slide 15: Dividend
Dividend Consistent dividend commitment 1H FYE18 1H FYE19 Interim Single Tier Dividend 21.13 sen/ share 22.25 sen/ share Dividend Payout RM52.245mil RM55.566mil Dividend Payout Ratio 35.5% 32.0% 15
Slide 16: Key Activities Update
JEON Key Activities Update
Slide 17: Key Action: Products Targeting M40
Key Action: Products Targeting M40 Launched AEON Platinum credit card with attractive privileges, Introducing new Personal Financing Scheme with risk based pricing in order to penetrate into middle income customer segment Platinum Credit Card Personal Financing with Risk Visa & Master Based Pricing
Slide 18: Key Action: Expand Business Settlement
Key Action: Expand Business Settlement Launched the pilot test for E-Wallet & E-Money card in August 2018 AEON Member Plus Card Point / customer database AEON Wallet (E-Wallet) integration Introduce common platform Expand members & provide new settlement experience within AEON group 18
Slide 19: Key Action: Expand Business Settlement
Key Action: Expand Business Settlement Introducing a common platform within AEON group & subsequently expand the settlement business networks to external parties Telecommunications Airline Petrol AEON Co(M) ACS AEON BiG E-Commerce Transportation Mobil e Food & Beverage Finance Public Transportation
Slide 20: Key Action: MFRS 9
Key Action: MFRS 9 Company is adopting MFRS 9 in FYE19 MFRS 139 (previously used model) : Incurred Loss Model Outstanding Default (RM) Rate (%) MFRS 9 : Expected Credit Loss Model Outstanding EAD (%) PD (%) LGD (%) (RM) Exposure Probability Loss Given at Default of Default Default 【Key Action for Cr
Slide 21: Key Action: MFRS 9
Key Action: MFRS 9 Main focus in FYE19 is on new receivables quality improvement New sales collection improved compared with last year New Sales Collection Ratio Credit Card Hire Purchase Personal Financing 99.00% 98.50% 99.80% 98.00% 98.00% 99.60% 99.40% 97.00% 97.50% 99.20% 96.00% 97.00% 99.00% 95
Slide 22: Taxation: Appeal Status Update
Taxation: Appeal Status Update No Item Remark Status i. Filed a Notice of Appeal (Form Q) • The Company had filed a • The appeal is pending the on 4 Jan 2018 notice of appeal to dispute the fixing of hearing date by additional assessments Special Commissioners of Income Tax. ii. Judicial Review – Le
Slide 23: Appendices
JEON Appendices
Slide 24: Performance Highlights
Performance Highlights (RM’000) Q2 Q1 Q2 QoQ YoY 1H 1H YoY FYE18 FYE19 FYE19 (%) (%) FYE18 FYE19 (%) Total Transaction & 1,028,446 1,094,821 1,304,065 19.1 26.8 2,079,309 2,398,832 15.4 Financing Volume - Credit Card 296,892 336,003 378,597 12.7 27.5 585,676 714,599 22.0 - Easy Payment Financing 496
Slide 25: Financial Summary
Financial Summary (RM’000) Q2FYE18 Q1FYE19 Q2FYE19 QoQ (%) YoY (%) Credit Card (CC) 589,298 635,675 662,514 4.2 12.4 - Card Purchase 522,636 569,929 596,744 4.7 14.2 - Cash Advance 66,662 65,746 65,770 0.0 (1.3) Personal Financing (PF) 1,827,101 1,959,945 2,095,048 6.9 14.7 Objective Financing (OF)
Slide 26: Operating Income
Operating Income (RM’000) Q2 Q1 Q2 QoQ YoY 1H 1H YoY FYE18 FYE19 FYE19 (%) (%) FYE18 FYE19 (%) Credit Card 28,782 28,428 28,629 0.7 (0.5) 56,371 57,057 1.2 Personal Financing 84,522 91,964 97,664 6.2 15.5 164,529 189,628 15.3 Objective Financing 30,724 27,471 25,968 (5.5) (15.5) 60,972 53,440 -12.4
Slide 27: Expenses
Expenses (RM mil) Q2 Q1 Q2 QoQ YoY 1H 1H YoY FYE18 FYE19 FYE19 (%) (%) FYE18 FYE19 (%) - Impairment loss on 84.5 57.1 95.2 66.8 12.7 167.1 152.3 (9.2) receivables - Personnel expenses 52.8 48.6 58.5 20.4 111 96.8 107.1 10.6 - Other operating 46.7 59.0 58.3 (1.3) 25.0 96.0 117.3 22.2 expenses Operati
Slide 28: Financial Indicators
Financial Indicators (RM mil) FYE16 FYE17 FYE18 Q1FYE19 Q2FYE19 1HFYE19 PBT 302 351 398 132 107 239 PAT 228 265 300 99 81 180 No. of shares (mil) 144 248 *249 (255) *249 (255) *249 (255) *249 (255) Basic/(Diluted) EPS* (RM) 1.49 1.01 1.15/(1.12) 1.54/(1.51) 1.39/(1.36) 1.39/(1.36) NTA per share (RM)
Slide 29: Thank You
Head Office Investor Relations Contact Level 18, UOA Corporate Tower, Mr Lee Kit Seong Avenue 10, The Vertical, Chief Financial Officer Bangsar South City, leeks@aeoncredit.com.my No. 8, Jalan Kerinchi, 03-2772 9000 59200 Kuala Lumpur. Mr Yuya Narita Website : www.aeoncredit.com.my Head of Investor
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