Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q1 FYE2023 Earnings Presentation
28 slides from Aeon Credit Service (m) Bhd's earnings presentation, Jul 4, 2022
Slide 1: Q1 FYE23 Financial Results
Q1 FYE23 Financial Results 4 July 2022
Slide 2: 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 3: Table of Contents
TABLE OF CONTENTS FINANCIAL OVERVIEW 04 KEY STRATEGIES AND 15 OPERATIONAL UPDATES APPENDIX 22
Slide 4: Financial Overview
yzoy) ALCON CREDIT SERVICE FINANCIAL OVERVIEW
Slide 5: Financial Performance
Financial Performance Sales growth boosted by marketing strategies; asset quality remains healthy 3M FYE22 3M FYE23 YoY Revenue RM411.0M RM390.6M -5.0% PAT RM163.1M RM163.1M 0.0% Profitability ROE 36.1% 30.7% -5.4% Transaction & Financing Volume RM1,408.1M RM1,486.7M +5.6% Gross Financing Receivable
Slide 6: Income Statement
Income Statement Achieved sales growth YoY and QoQ; profitability recovered from previous quarter Total Transaction & Financing Volume (RM mil) Revenue (RM mil) 5.6% YoY 1.6% QoQ 5.0% YoY 7.6% QoQ Increased YoY Increased QoQ 1,408.1 1,463.4 1,486.7 and QoQ driven mainly by various sales contributed
Slide 7: Shareholder Value & Capital Management
Shareholder Value & Capital Management Strong CAR ratio of 28.1% allows ample room for growth Gross Receivables (RM mil) Return On Asset (%) 0.6% YoY 1.4% QoQ 0.1% YoY 2.8% QoQ Focus to growth ROA rebounded 10,058.4 receivables post YoY and QoQ 9,996.5 EPF withdrawal resulted from and supply chain b
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Overall upped. Motorcycle Financing increased by 29.7%, driven by higher sales claimed 27.0% 27.2% 27.6% 21.0% 28.4% 19.8% 32.5% 9.9% 11.2% 30.8% 13.0% Q1 24.2% Q4 Q1 FYE22 5.6% FYE22 5.7% 5.8% 3.9% 3.3% FYE23 3.0% 0.1% 0.1% Q1 Q4 Q1 • Personal Financing Volume (
Slide 9: Total Gross Financing Receivables
Total Gross Financing Receivables Overall products grew QoQ except Credit Card and SME Financing 28.2% 27.8% 27.7% 25.4% 26.1% 26.1% 35.6% 34.8% 35.4% Q1 Q4 Q1 7.5% 7.3% 6.8% FYE22 3.0% FYE22 3.8% FYE23 3.9% 0.3% 0.2% 0.1% Q1 Q4 Q1 Gross financing Volume (RM mil) QoQ YoY receivables marginal FYE22 F
Slide 10: Receivables Collection
Receivables Collection Collection activities normalised on top of special EPF withdrawal program Receivables Collection Trend 98.6 96.9 98.2 98.3 97.8 98.5 96.8 97.7 95.6 88.5 83.1 82.4 86.2 70.6 75.5 72.1 62.1 Q1 * Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FYE21 FYE22 FYE23 Current Collection Ratio - Not Past Due (%
Slide 11: Non-Performing Loan (NPL)
Non-Performing Loan (NPL) Supported by ongoing collection efforts and receivables growth strategies NPL Trend NPL Trend 2.66 2.53 1.42 1.75 • Lower NPL QoQ due to normalisation of collection productivity and growth of receivables • Balance D3+ increased in Q4 FYE22 attributed to lower collection act
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) Improved QoQ mainly attributable to lower impairment loss provisions and higher bad debt recovered NCC Trend 6.67% Lower NCC attributed to: 6.12% 3.04% 0.92% 1.50% • Effective measures taken to manage asset quality 1.47% -0.81% -0.72% • Lower impairment loss provision and impro
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Lower IL QoQ due normalised of collection performance and productivity 507% 409% 289% 281% Net reversal of Expected Credit Loss (ECL) provision supported by 69 improvement of delinquency account 66 net off with reversal of management 145 105 88 overlay on ECL 81 -44 -12
Slide 14: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Cost under well control with CIR at 34.8% Q1 Q4 Q1 RM mil QoQ YoY FYE22 FYE22 FYE23 Total Operating Income 460.2 406.1 449.3 10.6% -2.4% Personnel Expenses 55.4 63.9 43.1 -32.5% -22.2% Advertisement & Promotion 10.8 7.3 8.3 14.1% -22.6% Other Operating Expenses 69.2 56.3 6
Slide 15: Key Strategies and Operational Updates
KEY STRATEGIES and OPERATIONAL UPDATES
Slide 16: FYE2023 Indicator
FYE2023 Indicator Indicators Actual Remark FYE2023 Q1 FYE23 • Lower loan growth impacted by higher early settlement and low demand of financing in the market with special EPF withdrawal program Loan Growth > 10% - 0.6% • The Group will continue to focus on asset quality by managing loan portfolio wi
Slide 17: Key Strategies for 2022 - 2026
Key Strategies for 2022 - 2026 5 Pillars of focus to drive financial inclusion and sustainable growth Digitalization Member Receivables ESG & Human Capital Expansion Growth Sustainability • Complete end to • Consolidate all • Penetration market • Responsible • Transform new end on-boarding AEON memb
Slide 18: Digital Solutions
Digital Solutions Embed Financial Services and Payment Solutions into AEON Group’s App with loyalty program Embed into iAEON App (Aug 2022) AEON WALLET UI/UX • Enhancement of current AEON wallet UI/UX to enhance customer experience Settlement function: • Target launch Aug’22 • Point management AEON
Slide 19: Islamic Digital Bank License
Islamic Digital Bank License AEON and MoneyLion set to launch Islamic Digital Bank within 24 months AEON Financial AEON Credit MoneyLion Service Retail & Financial Services Ecosystem AI & Machine Learning Technology Collection & credit assessment know Digital platformer providing retail how for B40
Slide 20: Sustainability Roadmap
Sustainability Roadmap Embed Sustainability in AEON Credit business Continued Value Positive Social Responsible Safeguard the Creation Impact Governance Environment Stable profit generation Protect and add Uphold strong Continue underpinned by value to the well – governance and ethical Stewardship a
Slide 21: Corporate Social Responsibility – Q1 FYE23
Corporate Social Responsibility – Q1 FYE23 Dedicated commitment with local community AEON Credit Back to School Programme Engagement with Residents in Yayasan Blood Donation Drive at General Hospital, with Flood Victims in Banting Amanah An-Nur Maisarah, Perak Penang Tree Planting during World Fores
Slide 22: Appendix
yzoy) ALCON CREDIT SERVICE APPENDIX
Slide 23: Performance Highlights
Performance Highlights Q1 Q4 Q1 (RM mil) QoQ YoY FYE22 FYE22 FYE23 Total Transaction & Financing Volume 1,408.1 1,463.4 1,486.7 1.6% 5.6% Credit Card 380.8 397.9 410.0 3.1% 7.7% Easy Payment Financing 677.9 601.6 737.6 22.6% 8.8% Personal Financing 295.0 415.8 295.0 -29.0% 0.0% E-Money 54.4 48.1 44.
Slide 24: Financial Summary
Financial Summary Q1 Q4 Q1 (RM mil) QoQ YoY FYE22 FYE22 FYE23 Credit Card 755.7 722.0 676.1 -6.4% -10.5% Card Purchase 658.7 701.6 656.9 -6.4% -0.3% Cash Advance 97.0 20.4 19.2 -5.7% -80.2% Personal Financing 2,556.7 2,574.7 2,604.7 1.2% 1.9% Objective Financing 299.8 370.0 390.8 5.6% 30.3% Motorcyc
Slide 25: Operating Income
Operating Income Q1 Q4 Q1 (RM mil) QoQ YoY FYE22 FYE22 FYE23 Credit Card 34.0 35.9 35.3 -1.2% +4.4% Personal Financing 114.5 99.1 102.8 +3.8% -10.2% Objective Financing 17.8 17.5 21.7 +23.8% +21.7% Motorcycle Financing 157.0 128.9 144.6 +12.2% -7.9% Auto Financing 84.5 74.0 79.4 +7.3% -6.0% SME Fina
Slide 26: Total Expenses
Total Expenses Q1 Q4 Q1 (RM mil) QoQ YoY FYE22 FYE22 FYE23 Impairment Loss on Receivables 23.3 154.7 37.3 -75.9% +60.1% Personnel Expenses 55.4 63.9 43.1 -32.5% -22.2% Advertisement & Promotion (A&P) 10.8 7.3 8.3 14.1% -22.6% Other Operating Expenses 69.2 56.3 67.5 19.8% -2.6% Operating Expenses 158
Slide 27: Financial Indicators
Financial Indicators Q1 Q1 FYE20 FYE21 FYE22 FYE22 FYE23 PBT (RM mil) 390.4 324.9 526.8 215.9 215.5 PAT (RM mil) 292.0 234.0 365.4 163.1 163.1 Weighted average no. of ordinary shares (mil) 255.3 255.3 255.3 255.3 255.3 Basic EPS (RM)* 1.07 0.88 1.39 2.5 2.5 NTA per share (RM) 6.1 6.6 7.8 7.3 8.7 ROE
Slide 28: Thank You
Thank You Mr Lee Kit Seong Level 18, UOA Corporate Tower, Chief Corporate Officer Avenue 10, The Vertical, leeks@aeoncredit.com.my Bangsar South City, No. 8, Jalan Kerinchi, Ms Lee Siew Tee 59200 Kuala Lumpur. Chief Financial Officer 03-2772 9000 stlee@aeoncredit.com.my www.aeoncredit.com.my Investo
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