Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q3 FYE20 Earnings Presentation
29 slides from Aeon Credit Service (m) Bhd's earnings presentation, Dec 19, 2019
Slide 1: Q3 / 9M FYE20 Results Update
Listing Board Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code AEONCR/ 5139 Q3 / 9M FYE20 Results Update 19 Dec 2019
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: Table of Content
Table of Content Financial Overview Key Strategic Focus Slide no. 4 Slide no. 15 New accounting standard – MFRS 9 (Expected Credit Loss Model) MFRS 9 replaces MFRS 139 and revises the accounting guidance for classification and measurement of financial assets, impairment and hedge accounting. AEON Cr
Slide 4: Financial Overview
JEON Financial Overview
Slide 5: Financial Snapshot: 9M FYE20
Financial Snapshot : 9M FYE20 9M 9M YoY FYE19 FYE20 Change PAT RM267.0M RM203.7M -23.7% PAT (prior to IL provision) RM589.0M RM636.8M +8.1% Profitability ROE* 22.8% 17.3% -5.5% ROE* (prior to IL provision) 37.4% 41.4% +4.0% Transaction & Financing Volume RM3.8B RM4.7B +24.6% Gross Financing Receivab
Slide 6: Income Statement
Income Statement Uptrend revenue moved in tandem with positive sales growth Total Transaction & Financing Volume Revenue (RM mil) (RM mil) 404.4 402.5 420.0 1,584.0 1,588.9 1,452.5 1,449.0 400.0 378.6 1,562.5 380.0 360.0 +1.7% QoQ 360.0 348.5 -0.5% QoQ 340.0 +9.4% YoY 320.0 +15.5% YoY 300.0 Q3 Q4 Q1
Slide 7: Balance Sheet
Balance Sheet Supporting by healthy financing receivables growth Gross Financing Receivables ROA* (RM mil) (%) 10,500 10,033 5.0 4.4 4.3 10,000 9,597 4.5 3.8 9,500 9,144 4.0 8,692 3.5 2.9 2.9 8,313 9,000 3.0 8,500 8,000 +4.5% QoQ 2.5 2.0 7,500 +20.7% YoY -1.5% YoY 1.5 7,000 1.0 6,500 0.5 6,000 0.0 Q
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Resilient growth shown in Objective Financing & E-Money Volume (RM mil) Q3 Q2 Q3 FYE19 FYE20 FYE20 QoQ YoY Products (%) (%) 18 23 Credit Card +4.3 +23.2 1,600 4 4 8 3 85 92 62 Personal Financing -7.2 -22.7 224 236 181 1,200 Motorcycle Financing +2.4 +14.1 370 412
Slide 9: Total Financing Receivables
Total Financing Receivables Continuous growth under the challenging environment Gross Receivables (RM mil) Receivables Movement (%) QoQ YoY Q3 Q2 Q3 FYE19 FYE20 FYE20 Credit Card +6.3 +25.9 Personal Financing +6.2 +20.8 11,000 Motorcycle Financing +4.4 +27.4 56 60 346 10,000 Auto Financing +3.4 +17.
Slide 10: Receivables Collection
Receivables Collection Healthy portfolio with stable collection trend Receivables Collection Trend 100.00 97.34 97.58 97.60 98.14 97.90 98.01 90.00 81.89 82.42 81.89 82.80 81.06 81.80 80.00 71.08 72.93 69.00 69.67 70.28 70.70 70.00 60.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FYE17 FYE18 FYE19
Slide 11: Impairment Loss Analysis
Impairment Loss Analysis Written Off accounts are stable despite increase of financing receivables 10,033 200,000 11,000 9,597 9,144 8,692 8,313 9,000 150,000 7,508 7,855 Increased in tandem with the 64,916 financing receivables growth as well as seasonal factor – Hari 7,000 100,000 13,127 4,526 47,
Slide 12: Non-Performing Loans
Non-Performing Loans Continuous prudent approach on asset quality management Non-Performing Loans (NPL) Trend 12,000 2.42 2.43 2.33 2.28 2.43 2.48 2.48 2.33 2.26 3.00 2.07 2.05 2.04 1.92 2.00 1.93 10,000 2.00 8,000 1.00 6,000 0.00 4,000 -1.00 2,000 -2.00 5,825 6,069 6,362 6,591 6,832 7,046 7,203 7,3
Slide 13: Net Credit Cost
Net Credit Cost Greater improvement seen in Q3 Net Credit Cost (NCC) Trend 4.04 3.91 3.32 3.73 3.56 3.31 3.28 3.43 3.43 3.27 200 5 180 2.99 4 160 1.70 2.19 2.08 2.16 3 2.91 2.72 2.42 140 2 120 2.28 2.19 1 100 1.69 0 80 -1 60 -2 40 -3 20 47 61 51 42 55 62 61 50 32 52 39 52 67 118 90 -4 0 -5 Q1 Q2 Q3
Slide 14: 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 15: Key Strategic Focus
JEON Key Strategic Focus
Slide 16: Key Strategic Focus: Asset Quality Management
Key Strategic Focus Asset Quality Management Targeted product offerings to cater for demand from different income groups 8% 39% 119% 150% 292% Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 FYE19 FYE20 FYE19 FYE20 FYE19 FYE20 FYE19 FYE20 FYE19 FYE20 Personal Motorcycle Objective Auto Settlement Financing Financing F
Slide 17: Key Strategic Focus: New Sales Collection
Key Strategic Focus New Sales Collection Improved YoY collection ratio Total Easy Payment & Personal Financing Credit Card 98.84% 99.50% 98.80% 98.82% 98.78% 99.43% 99.40% 98.67% 99.34% 99.30% 98.56% 99.27% 99.19% 98.39% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FYE19 FYE19 FYE19 FYE19 FYE20 FYE20 F
Slide 18: Key Strategic Focus: Database Integration
Key Strategic Focus Database Integration Optimise the potential of data for targeted offerings & cross selling Data Analytics Platinum Credit Card, SME, Super Bike, Premium Bicycle, Wellness Products 6 million & its product focus Gold Credit Card Income range AEON members to be converted Personal Fi
Slide 19: Key Strategic Focus: Technology Advancement
Key Strategic Focus Technology Advancement To improve user experiences & the efficiency of business process & support system Core System Upgrading AI RPA E-KYC Artificial Intelligence Robotic Process (e-Know Your Customer) Setting up data management Automation Biometric Identification team Adopting
Slide 20: Key Takeaways & Prospects
Key Takeaways & Prospects Factoring out the book value impact of MFRS 9, core business is growing at steady pace and key ratios are within healthy range GDP growth in Q3 2019: 4.4% (Q2: 4.9%) due to lower growth in key sectors and decline in mining as well as construction activities. Full year proje
Slide 21: Appendices
JEON Appendices
Slide 22: Performance Highlights
Performance Highlights Q3 Q1 Q2 Q3 QoQ YoY 9M 9M YoY (RM’000) FYE19 FYE20 FYE20 FYE20 (%) (%) FYE19 FYE20 % Total Transaction & 1,452.5 1,584.1 1,562.5 1,589.0 1.7 9.4 3,799.9 4,735.4 24.6 Financing Volume Credit Card 375.4 429.2 442.8 462.0 4.3 23.0 1,038.4 1,333.8 28.4 Easy Payment 620.4 741.9 724
Slide 23: Financial Summary
Financial Summary Q3 Q1 Q2 Q3 QoQ YoY (RM’000) FYE19 FYE20 FYE20 FYE20 (%) (%) Credit Card 702 790 831 884 6.3 26.0 Card Purchase 637 727 769 822 6.9 29.1 Cash Advance 65 63 62 62 -1.1 -4.8 Personal Financing 2,329 2,513 2,649 2,813 6.2 20.8 Objective Financing 361 340 348 346 -0.6 -4.0 Motorcycle F
Slide 24: Operating Income
Operating Income Q3 Q1 Q2 Q3 QoQ YoY 9M 9M YoY (RM’000) FYE19 FYE20 FYE20 FYE20 (%) (%) FYE19 FYE20 % Credit Card 30.4 31.7 31.8 33.2 4.4 9.2 87.5 96.7 10.5 Personal Financing 108.9 121.0 134.3 130.5 -2.8 19.8 298.5 385.9 29.3 Objective Financing 24.3 21.9 21.6 20.8 -3.7 -14.4 77.7 64.3 17.2 Motorcy
Slide 25: Total Expenses
Total Expenses Q3 Q1 Q2 Q3 QoQ YoY 9M 9M YoY (RM mil) FYE19 FYE20 FYE20 FYE20 (%) (%) FYE19 FYE20 (%) Impairment Loss on 61.5 93.3 154.7 114.5 -26.0 86.2 213.8 362.5 69.6 Receivables Personnel Expenses 62.7 55.1 63.6 66.3 4.2 5.7 169.8 185.0 9.0 Advertisement & 18.6 24.0 25.1 17.9 -28.7 37.6 42.6 66
Slide 26: Financial Indicators
Financial Indicators 9M 9M (RM’000) FYE17 FYE18 FYE19 YoY FYE19 FYE20 PBT 351.0 398.0 472.0 357.1 272.4 -23.7% PAT 265.0 300.0 355.0 267.0 203.7 -23.7% Weighted average no. of 248.0 206.0 255.0 250.0 255.0 +5.0 ordinary shares (mil unit) Basic EPS (RM) 1.0 1.4 1.3 1.4 1.0 -0.4 NTA per share (RM) 6.6
Slide 27: Dividend
Dividend Consistent dividend payout 1H FYE18 FYE19 FYE20 22.25 Total Dividend 41.13 sen/ share 44.60 sen/ share sen/ share Dividend Payout RM 102.16m RM 111.85m RM 56.43m Dividend Payout 34.0% 31.5% 41.7% Ratio 27
Slide 28: Company Achievements
Company Achievements The Edge Billion Ringgit Club Financial Service Sector (Below RM10 billion market capitalization) Highest Returns to Shareholders Over Three Years VISA Malaysia Awards HR Asia Awards – Malaysia Best Companies To Work For In Asia Recognition in creating workplace excellence and p
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 Chen Heng Guan Website : www.aeoncredit.com.my Head of Corpor
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