Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q1 FYE2025 Earnings Presentation
32 slides from Aeon Credit Service (m) Bhd's earnings presentation, Jul 10, 2024
Slide 1: Q1 FYE25 Financial Results
Q1 FYE25 Financial Results 10 July 2024
Slide 2: Table of Contents
Table of Contents 03 KEY HIGHLIGHTS 09 FINANCIAL OVERVIEW 17 KEY STRATEGIES & MOVING FORWARD 25 APPENDICES
Slide 3: Key Highlights
KEY HIGHLIGHTS
Slide 4: Economic Outlook and Our Strategy
Economic Outlook and Our Strategy Malaysia GDP Inflation Rate Unemployment Rate Introduction of Account 4.2% 1Q24 1.7% 1Q24 3.3% 1Q24 Fleksibel Q1FYE24 Progress Sales & Receivables • Scheme enhancement for Vehicle Financing to acquire middle-income group customers • Intensify collaboration campaigns
Slide 5: Overview of Financial & Key Products
Overview of Financial & Key Products A Commendable solid start to FYE25 Total Revenue Profit After Tax Total Loan Growth ROE RM522.2 MIL RM106.4 MIL RM12,653 MIL 15.9% +15.4% YoY +7.1% YoY +12.8% YoY -0.4% YoY Transaction & Financing Volume RM964 MIL RM538 MIL RM473 MIL 12.5% vs. Q1FYE24 11.4% vs. Q
Slide 6: Q1FYE25 Focus Area: Vehicle Financing
Q1FYE25 Focus Area: Vehicle Financing Growing market share through penetration into the middle-income customer segment Vehicle Financing application increased to 237K in Q1FYE25 Vehicle Financing +18.1% YoY Sales (‘mil) +13.7% QoQ 858 726 754 Q1 Q4 Q1 FYE24 FYE24 FYE25 • Launched pre-assessment sinc
Slide 7: Q1FYE25 Focus Area: Payment Business
Q1FYE25 Focus Area: Payment Business Increased Payment Business sales growth through rebranding exercise Credit card in circulation grew by 21.1%YoY Payment Business +21.1.% YoY CIC (‘000) +4.8.% QoQ 236 247 204 Q1 Q4 Q1 FYE24 FYE24 FYE25 AEON Wallet new sign up increased from 81K to 120K YoY • Cred
Slide 8: Q1FYE25 Focus Area: Personal Financing
Q1FYE25 Focus Area: Personal Financing Continue to drive the digital onboarding awareness campaign to boost acquisition Personal Financing Personal Financing application increased to 108K in Q1FYE25 Sales (‘mil) -4.0.% YoY +4.5% QoQ 493 473 • Launched digital onboarding process since Oct23, simplify
Slide 9: Financial Overview
FINANCIAL OVERVIEW
Slide 10: Financial Performance
Financial Performance Strong performance with robust revenue growth 3MFYE24 3MFYE25 YoY Total Income 501.9M 589.8M +17.5% Operating Expenses -285.3M -331.6M +16.2% Impairment Loss 152.5M 163.5M +7.2% Profitability PBT 131.9M 144.8M +9.8% PAT 99.4M 106.4M +7.1% ROE 16.3% 15.9% -0.4% Transaction & Fin
Slide 11: Total Transaction & Financing Volume – Q1FYE25
Total Transaction & Financing Volume – Q1FYE25 Sequential volume improvement except Payment Business Group Total Transaction & Financing Volume (RM mil) Transaction & Volume by Types Easy Payment Payment Business Personal Financing 46.8% 48.8% Q1 Q1 964 546 538 493 FYE24 FYE25 857 854 473 482 453 26
Slide 12: Total Gross Financing Receivables
Total Gross Financing Receivables Robust QoQ loan growth across all Key Products Gross Financing Receivables (RM mil) Gross Financing Receivables by Types Easy Payment Payment Business Personal Financing 65.7% 63.9% 8,086 Q1 7,373 7,816 Q1 3,763 FYE25 3,622 FYE24 3,126 794 804 720 27.9% 6.4% 6.4% 29
Slide 13: Receivables Collection
Receivables Collection Sustained collection performance improvement underpinned by effective collection strategies Current Collection Ratio (%) D1 & D2 Collection Ratio (%) Collection performance continues to improve QoQ due to: • Effective risk-based collection and calling strategy that focuses on
Slide 14: Non-Performing Loan (NPL) and Net Credit Cost (NCC)
Non-Performing Loan (NPL) and Net Credit Cost (NCC) Improvements by continuous collection initiatives and receivables expansion strategies NPL Trend Q1 Q4 Q1 (RM mil) FYE24 FYE24 FYE25 3.13 2.57 2.46 Receivables 11,219 12,232 12,653 Balance D3+ 351 315 312 NPL (%) 3.13 2.57 2.46 11,219 12,232 12,653
Slide 15: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Loan Loss Coverage Ratio continues to remain healthy Q1FYE25 Expected Credit Loss (ECL) provision attributed by: 227% 221% 222% • Delinquent account movement of RM9.0 mil, offset by the reversal of 10 management overlay of RM13.8 mil attributed to ECL model refreshment
Slide 16: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) Continued prudence in managing operating expenses Q1 Q4 Q1 RM mil QoQ YoY FYE24 FYE24 FYE25 Total Operating Income 501.9 548.7 589.8 7.5% 17.5% Personnel Expenses 53.0 65.0 64.2 -1.2% 21.2% Advertisement & Promotion 9.7 13.7 15.3 11.1% 57.7% Other Operating Expenses 70.1 7
Slide 17: Key Strategies and Moving Forward
KEY STRATEGIES AND MOVING FORWARD
Slide 18: FYE25 Indicators
FYE25 Indicators Consistent delivery of sustainable returns to shareholders Indicators Actual Remark FYE25 Q1FYE25 • Stronger loan growth driven by strong market demand for vehicle Loan Growth ±10% 12.8% financing and digital onboarding application process • Revenue increased in line with sales and
Slide 19: Strategic Roadmap For FYE25
Strategic Roadmap For FYE25 Robust brand visibility & bringing “Finance” closer to everyone Key Business Strategy Focus in FYE25 Building an Ecosystem Advancement in Strengthen Business Talent Development and & AEON Living Zone Assessment Process Capacity ESG initiatives • Integration of financial •
Slide 20: Q1FYE25 Business Strategy Update
Q1FYE25 Business Strategy Update Consolidating shopping and financial services under the AEON Living Zone AEON Living Zone & member • App User first Launched Registration phasing ofhas increased upgraded AEON4.1% to 42.1k Wallet on 10 in May July 2024 expansion 2024. • Customer can digitally registe
Slide 21: Q1FYE25 Business Strategy Update: Accelerating automation
Q1FYE25 Business Strategy Update Accelerating automation to enhance customers’ digital experience Advancement in Assessment and • Launch of AEON Fin Plus membership with tiers based on customer collection to drive productivity historical data in Jun24, to promote cross selling and offer privileges t
Slide 22: Sustainability Focus
Sustainability Focus Sustainability Progress in Q1FYE25 FTSE Bursa AEON Credit included in FTSE Bursa Malaysia Mid 70 Index Malaysia Emas Index Sustainability Environmental Economy Social Governance Statement Creating a sustainable future by connecting people and Task Force on Climate – Greenhouse G
Slide 23: Corporate Social Responsibilities Key Activities in Q1FYE25
Corporate Social Responsibilities Key Activities in Q1FYE25 Empowering communities through ongoing business transformation and engagement efforts Malaysian AEON Foundation Environmental Initiatives MAF MESRA RAMADAN 2024 AT AEON CREDIT BIODIVERSITY AFFORESTATION 6 LOCATIONS NATIONWIDE PROJECT AT KIN
Slide 24: AEON Bank
AEON Bank Successful launch of AEON Bank as Malaysia's First Islamic Digital bank AEON Bank Update: Campaigns Promotion: • AEON Bank grand launch event was held at AEON Mall Shah Alam on 26 May 2024 • 3,000 sign-up AEON points • Initial products offering are Savings Accounts-i, Savings Pots, Debit C
Slide 25: Appendices
APPENDICES
Slide 26: Performance Highlights
Performance Highlights Q1 Q4 Q1 (RM mil) QoQ YoY FYE24 FYE24 FYE25 Total Transaction & Financing Volume 1,832.3 1,853.6 1,975.0 6.6% 7.8% Easy Payment Financing 856.7 854.4 963.9 12.8% 12.5% Payment Business 482.5 546.0 537.6 -1.5% 11.4% Personal Financing 493.1 453.2 473.5 4.5% -4.0% Total Income 5
Slide 27: Financial Summary
Financial Summary Q1 Q4 Q1 (RM mil) QoQ YoY FYE24 FYE24 FYE25 Easy Payment Financing 7,372.8 7,816.8 8,085.7 3.4% 9.7% Payment Business 719.7 793.9 804.1 1.3% 11.7% Personal Financing 3,126.5 3,621.6 3,763.6 3.9% 20.4% Total Financing Receivables 11,219.0 12,232.3 12,653.4 3.4% 12.8% Impairment Loss
Slide 28: Operating Income
Operating Income Q1 Q4 Q1 (RM mil) QoQ YoY FYE24 FYE24 FYE25 Easy Payment Financing 278.1 294.7 307.6 4.4% 10.6% Payment Business 42.8 47.6 45.9 -3.6% 7.1% Personal Financing 128.8 155.9 165.2 6.0% 28.3% Brokerage Fee* 3.0 3.4 3.5 6.7% 21.1% Total Revenue 452.7 501.6 522.2 4.1% 15.4% Other Operating
Slide 29: Total Expenses
Total Expenses Q1 Q4 Q1 (RM mil) QoQ YoY FYE24 FYE24 FYE25 Impairment Loss on Receivables 152.5 114.0 163.5 43.4% 7.2% Personnel Expenses 53.0 65.0 64.2 -1.2% 21.2% Adverting & Promotion (A&P) 9.7 13.7 15.3 11.1% 57.7% Other Operating Expenses 70.1 79.9 88.7 11.0% 26.5% Operating Expenses 285.3 272.
Slide 30: Financial Indicators
Financial Indicators Q1 Q1 FYE22 FYE23 FYE24 FYE24 FYE25 PBT (RM mil) 526.8 547.0 565.2 131.9 144.8 PAT (RM mil) 365.4 417.7 424.0 99.4 106.4 Weighted average no. of ordinary shares (mil) 255.3 255.3 510.6** 255.3 510.6** Basic EPS (RM)* 0.70 0.80 0.81 1.5 0.8 NTA per share (RM)* 3.9 4.6 5.2 9.5 5.4
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
AEON Credit Service (M) Berhad — Q1 FYE2025 Earnings Presentation on 6ix