Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q1 FYE21 Earnings Presentation
28 slides from Aeon Credit Service (m) Bhd's earnings presentation, Jun 25, 2020
Slide 1: Q1 / 3M FYE21 Results Update
Listing Board : Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code : AEONCR/ 5139 Q1 / 3M FYE21 Results Update 25 June 2020
Slide 2: Disclaimer
Disclaimer 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 warranty, whether ex
Slide 3: Table of Agenda
Table of Agenda 1. Financial Overview 2. COVID-19: Focus Area 3. FYE2021: Key Focus
Slide 4: Financial Overview
JEON Financial Overview
Slide 5: Key Highlights
Key Highlights Performance reflected the impacts of COVID-19 and MCO 3M 3M YoY FYE20 FYE21 Change PAT RM85M RM26M - 68.9% Profitability ROE (annualised) 22.1% 6.2% - 15.9% Transaction & Financing Volume RM1,584M RM779M - 50.9% Gross Financing Receivables RM9,144M RM10,518M + 15.0% Asset 337% Loan Lo
Slide 6: Income Statement
Income Statement Top-line and bottom-line showed lower trend; major disruptions to Company’s operations nationwide during MCO Total Transaction & Financing Volume Revenue (RM mil) (RM mil) 1,645.5 413.3 1,584.1 420.0 400.0 378.6 385.2 778.6 380.0 -52.7% QoQ 360.0 -6.8% QoQ -50.9% YoY 340.0 +1.8% YoY
Slide 7: Balance Sheet
Balance Sheet Higher CAR following the issuance of RM200 mil Subordinated Sukuk Gross Financing Receivables ROA (RM mil) (%) 10,518.5 3.8 10,394.7 3.1 9,144.1 +1.2% QoQ -2.1% QoQ +15.0% YoY 1.0 -2.8% YoY Q1 Q4 Q1 Q1 Q4 Q1 FYE20 FYE20 FYE21 FYE20 FYE20 FYE21 ROE CAR 35.0 (%) (%) 21.7 25.0 21.1 30.0 2
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume E-money stood out with highest growth rate YoY while most products registered lower sales Volume (RM mil) Q1 Q4 Q1 FYE20 FYE20 FYE21 QoQ YoY 14 33 Products (%) (%) 4 3 76 94 Credit Card -32.5 -22.4 235 260 Personal Financing -73.8 -77.9 Motorcycle Financing -57.5
Slide 9: Total Financing Receivables
Total Financing Receivables Receivables grew marginally QoQ by 1.2% due to lower Transaction & Financing Volume Receivables Movement (%) QoQ YoY Gross Receivables (RM mil) Credit card -8.5 +6.2 Q1 Q4 Q1 Personal Financing +0.4 +11.0 FYE20 FYE20 FYE21 Motorcycle Financing +2.8 +20.8 12,000 51 Auto Fi
Slide 10: Receivables Collection
Receivables Collection Collection activities affected by MCO and loan deferment programme Receivables Collection Trend 97.5 97.9 98.1 98.1 98.6 (50.3%) 88.5 (32.8%) 81.6 83.2 82.9 81.2 86.2 (27.2%) 71.6 73.1 69.8 70.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* FYE18 FYE19 FYE20 FYE21 Current Collection
Slide 11: Non-Performing Loans (NPL)
Non-Performing Loans (NPL) Lower NPL as customer’s delinquency status remain unchanged for those who are eligible for loan deferment programme NPL Trend 2.43 2.48 2.48 2.33 2.26 2.07 2.05 2.04 2.00 1.92 1.93 1.92 18,000 16,000 1.42 14,000 10,033 10,395 10,518 1.00 12,000 9,144 9,597 10,000 8,313 8,6
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) Higher NCC due to lower bad debt recovery (54% YoY) and higher IL (187% YoY) NCC Trend 250 6.12 7 3.28 3.43 3.43 4.04 3.91 3.41 200 3.27 2.99 5 2.20 2.08 2.16 160 1.70 3 118 150 90 1 100 55 62 60 66 50 51 39 52 51 -1 50 31 -3 0 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FYE18 FY
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Written-off accounts remained relatively stable yet IL provision building up from MCO impacts 250,000 12,000 10,395 10,518 10,033 9,597 IL rose from existing delinquent 200,000 9,144 10,000 8,692 8,313 movement (D1- D6) due to 7,508 7,855 150,000 8,000 MCO period of RM7
Slide 14: IL Analysis
IL Analysis Higher IL provision due to the change in delinquency movement; written-off provision moved in tandem with low collection activities after MCO Q1 Q1 YoY FYE20 FYE21 No Breakdown of IL Provision RM’000 RM’000 RM’000 % 1 Provision IL from new sales 49,713 26,381 -23,332 -46.9 2 Movement of
Slide 15: Taxation: Appeal Status Update
Taxation: Appeal Status Update No Item Remark Status i. Filed a Notice of Appeal (Form Q) on 5 • The Company had filed a notice of • To date, hearing date has yet to be Jan 2018 to Special Commissioners of appeal to dispute the additional fixed. Income Tax (SCIT) assessments ii. Judicial Review – Le
Slide 16: COVID-19 Key Focus
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE COVID-19 Key Focus
Slide 17: COVID-19: Key Focus
COVID-19: Key Focus Liquidity Business Partners i. Focus on collection i. Focus on E-KYC ii. Sufficient banking facilities ii. Online application iii. Financial assistance Employees Risk Management i. Safety i. Asset quality management ii. Social Distancing ii. Product & customer portfolio iii. Enha
Slide 18: FYE2021 Key Focus
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE FYE2021 Key Focus
Slide 19: FYE 2021: Five Strategies
FYE 2021: Five Strategies 1 2 3 Establishing Group’s Intensification of existing Advancing system structure/ Platform Core Business Core System upgrade • To integrate and leverage on • Optimize operating profit via • The foundation of the business the AEON Group’s customers Digitalization needs to b
Slide 20: FYE 2021: Three Key Projects
FYE 2021: Three Key Projects Key Project Objective • Achieve cost-efficiency Digitalization • Business expansion • To create Digital Business Platform with the use of • Create excellent user FinTech solutions experience Regionalization • Capture bigger market share • To localize marketing strategy b
Slide 21: Digital Roadmap
Digital Roadmap Create business IT environment and continuously address customer needs ONBOARDING - leverage on CTOS eKYC solution - real time authenticate E-Signature individual’s identity, i.e.: Digital ID, Facial Recognition DATA WAREHOUSE - Data analysis E-SIGNATURE - Report management - Applica
Slide 22: Appendices
JEON yza3, ACON CREDIT SERVICE CREDIT SERVICE Appendices
Slide 23: Performance Highlights
Performance Highlights Q1 Q4 Q1 QoQ YoY (RM mil) FYE20 FYE20 FYE21 (%) (%) Total Transaction & Financing Volume 1,584.1 1,645.5 778.6 -52.7 -50.8 Credit Card 429.2 493.5 331.8 -32.8 -22.7 Easy Payment Financing 741.9 784.2 334.3 -57.4 -54.9 Personal Financing 398.9 335.3 88.3 -73.7 -77.9 E-Money 14.
Slide 24: Financial Summary
Financial Summary Q1 Q4 Q1 QoQ YoY (RM mil) FYE20 FYE20 FYE21 (%) (%) Credit Card 789.7 916.9 838.5 -8.6 6.2 Card Purchase 726.7 856.1 779.9 -8.9 7.3 Cash Advance 63.0 60.8 58.6 -3.6 -7.0 Personal Financing 2,588.7 2,864.4 2,875.2 0.4 11.1 Objective Financing 331.0 352.3 380.1 7.9 14.8 Motorcycle Fi
Slide 25: Operating Income
Operating Income Q1 Q4 Q1 QoQ YoY (RM mil) FYE20 FYE20 FYE21 (%) (%) Credit Card 31.7 37.9 34.1 -10.0 7.6 Personal Financing 121.0 129.3 119.3 -7.7 -1.4 Objective Financing 21.9 21.3 19.6 -8.0 -10.5 Motorcycle Financing 121.7 134.4 124.4 -7.4 2.2 Auto Financing 81.0 87.8 85.9 -2.2 6.0 SME Financing
Slide 26: Total Expenses
Total Expenses Q1 Q4 Q1 QoQ YoY (RM mil) FYE20 FYE20 FYE21 (%) (%) Impairment Loss on Receivables 93.3 87.8 174.4 +98.6 +86.9 Personnel Expenses 55.1 65.1 35.9 -44.9 -34.8 Advertisement & Promotion (A&P) 24.0 32.5 12.2 -62.5 -49.2 Other Operating Expenses 49.7 64.1 55.0 -14.2 +10.7 Operating Expense
Slide 27: Financial Indicators
Financial Indicators Q1 Q1 (RM mil) FYE18 FYE19 FYE20 YoY (%) FYE20 FYE21 PBT 398.3 472.2 390.4 112.7 37.1 -67.1 PAT 300.1 354.6 292.0 84.6 26.3 -68.9 Weighted average no. of ordinary 200.3 255.3 255.3 255.3 255.3 - shares (mil unit) Basic EPS (RM) 1.4 1.3 1.1 1.3 0.4 -69.2 NTA per share (RM) 6.4 6.
Slide 28: Thank You
Head Office Mr Lee Kit Seong Level 18, UOA Corporate Tower, Chief Financial Officer Avenue 10, The Vertical, leeks@aeoncredit.com.my Bangsar South City, 03-2772 9000 No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. Ms Lee Siew Tee www.aeoncredit.com.my Head of Finance stlee@aeoncredit.com.my 03-2772 9000
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