Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — H1 FYE2018 Earnings Presentation
33 slides from Aeon Credit Service (m) Bhd's earnings presentation, Oct 5, 2017
Slide 1: Investor Relations Presentation
Investor Relations Presentation 5th October 2017 AEON CREDIT SERVICE (M) Berhad AEON Credit Service (M) Berhad 5th October 2017 1
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, whethe
Slide 3: FYE 28 February 2018 First Half Year Highlights
FYE 28 February 2018 First Half Year Highlights AEON Credit Service (M) Berhad 5th October 2017 3
Slide 4: FYE February 2018 1HY Highlights
FYE 28 February 2018 1HY Highlights 1st half 1st half Q2 FYE 2018 % YoY % YoY (Unit: RM’million,%) FYE 2017 FYE 2018 Credit Card 296.892 111 538.025 585.675 109 General Easy Payment 100.050 106 178.455 195.112 109 Motorcycle Easy Payment 170.476 131 263.781 356.447 135 Superbike Easy Payment 67.928
Slide 5: Total Transaction Volume
Total Transaction Volume ■ Sales increased from Credit Card, General Easy Payment, Motorcycle Easy Payment and Personal Financing % YoY (RM’million) 111% 113% 104% 105% 4,014.7 119% 106% 110% 1,037.5 104% 1,050.9 1,028.5 113% 1,007.8 3,615.9 109% 978.4 991.0 103% 957.4 100% 921.6 892.6 844.3 FYE2016
Slide 6: FYE February 2018 1HY Performance (Income)
FYE 28 February 2018 1HY Performance (Income) 1st half % Q2 FYE 2018 % YoY % YoY (Unit: RM’million,%) FYE 2018 Share Credit Card 28.783 110 56.371 91 8 General Easy Payment 30.724 100 60.972 98 9 Moped Easy Payment 68.337 114 135.744 113 20 Superbike Easy Payment 28.216 108 56.025 109 8 Automobile F
Slide 7: FYE February 2018 1HY Performance (Expenses)
FYE 28 February 2018 1HY Performance (Expenses) 1st half % Q2 FYE 2018 % YoY % YoY FYE 2018 Share (Unit: RM’million,%) Impairment loss on receivables 84.803 103 167.737 109 35 Personnel expenses 52.820 114 96.824 107 21 Other operating expenses* 47.124 111 96.113 112 20 Operating Expenses 184.747 10
Slide 8: Credit Cards Issuance
Credit Cards Issuance ■ Total 30,793 credit cards issued in 1HY FYE2018, 110% YoY, while sales increased by 109% YoY ■ Card Issuance improvement supported by expansion of recruitment kiosk and roadshow activity % YoY 117% (Unit) 167% 103% 15,925 168% 111% 95% 15,114 14,868 14,452 150% 14,608 14,432
Slide 9: Credit Cards Transaction Volume
Credit Cards Transaction Volume ■ Cash Advance sales in 1HY amounted to RM46.4 mil, 142% YoY ■ Credit Purchase sales in 1HY amounted to RM539 mil, 107% YoY % YoY (RM’million) 117% Credit Purchase Cash Advance 109% 1,106.9 110% 109% 118% 296.9 120% 287.9 288.8 104% 121% 281.0 103% 271.9 262.6 266.1 9
Slide 10: General Easy Payment Transaction Volume
General Easy Payment Transaction Volume ■ Major sales contributed from digital gadget and consumer electrical product ■ Developing e-Channel to improve efficiency of merchant document submission % YoY (RM’million) 70% General Easy Payment 381.7 98% 106% 375.1 62% 89% 99% 113% 100.1 97% 67% 95.3 66%
Slide 11: Motorcycle Easy Payment Transaction Volume
Motorcycle Easy Payment Transaction Volume ■ ACSM recorded 21.46% market share in 1HY FYE2018 (based on JPJ data) ■ Moped Easy Payment share increased from 56.4% to 71.2% YoY, while Superbike Easy Payment recorded at 28.8% compared to 43.6% YoY % YoY (RM’million) Moped Easy Payment Superbike Easy Pa
Slide 12: Auto-financing Transaction Volume
Auto-financing Transaction Volume ■ Sales recorded at RM309.9 million in 1HY FYE2018, 83.6% YoY ■ Auto-financing manage receivables quality by Portfolio Management Auto-financing % YoY (RM’million) 111% 107% 735.1 94% 114% 123% 110% 195.3 688.1 192.1 182.5 100% 187.1 91% 100% 173.4 175.4 174.0 81% 1
Slide 13: Personal Financing Transaction Volume
Personal Financing Transaction Volume ■ Sales recorded at RM475.2 million in 1HY FYE2018, 113.6% YoY ■ Market share at 3.31% for 1HY FYE2018, 2.97% YoY (based on BNM data as at 31 July 2017) Personal Financing % YoY (RM’million) 131% 129% 887.3 115% 112% 247.1 120% 240.2 235.0 161% 125% 221.8 174% 2
Slide 14: SME Transaction Volume
SME Transaction Volume ■ Continuous enhancement in commercial vehicle financing ■ Developing new business scheme to increase market share Small & Medium Enterprise % YoY (RM’million) 224% 144% 8.3 20.7 133% 7.1 69% 68% 117% 5.8 14.4 5.4 148% 4.6 127% 54% 4.0 3.7 70% 44% 103% 3.1 3.0 2.9 FYE2016 FYE2
Slide 15: Summary of Statement of Financial Position as at Aug 2017
Summary of Statement of Financial Position as at 31 Aug 2017 31st Aug 2016 31st Aug 2017 % Share vs LY (Unit: RM’million,%) Credit Card 562.232 589.298 7.8 27.066 General Easy Payment 438.917 431.598 5.7 (7.319) Motorcycle Easy Payment 1,764.924 1,993.647 26.3 228.723 Automobile Financing 1,804.941
Slide 16: Financing Receivables by Products
Financing Receivables by Products ■ Total financing receivables recorded at RM6.990 billion, 116% YoY ■ Personal Financing recorded highest incremental at 131% YoY, sales increased by 114% YoY % YoY 116% <Product Share> (RM’million) 117% 6,990 7,000 119% 6,778 6,535 Product 31 Aug 2016 31 May 2017 3
Slide 17: Movement of Collection Ratio
Movement of Collection Ratio ■ Collection performance was stable in 1HY FYE2018 ■ Improvement in Current (+0.08%) and D2 (+1.89%) YoY Current collection ratio 100% 97.30% 97.01% 96.97% 97.25% 97.58% 97.29% 97.34% 97.40% 97.50% 97.37% D1 collection ratio 81.73% 80.58% 81.53% 82.04% 81.07% 81.89% 81.7
Slide 18: Net Credit Cost (NCC) vs Receivables
Net Credit Cost (NCC) vs Receivables ■ Annualized Net Credit Cost ratio stood at 3.43% (-0.30% YoY), Receivables stood at 116% YoY ■ Contributed by lower Impairment Loss growth at 109% and improved in credit loss recovery at 111%. Net Credit Cost (RM'million) Net Credit Cost vs Receivable (%) 4.75%
Slide 19: Ratio of Non-Performing Loans (NPL)
Ratio of Non-Performing Loans (NPL) ■ Non-Performing Loans ratio stood at 2.48% (+0.05% YoY) ■ Improvement on Motorcycle Easy Payment (-0.44%) and General Easy Payment (-0.07%) 10,000 3.00% 2.74% 2.68% 9,000 2.58% 2.47% 2.42% 2.43% 2.43% 2.48% 2.33% 2.28% 2.50% 8,000 6,778 6,990 7,000 6,535 6,310 2.
Slide 20: Provision for Impairment Loss (Financing Receivables)
Provision for Impairment Loss (Financing Receivables) As at As at (Unit: RM’million, %) 28 Feb 2017 31 Aug 2017 Beginning Balance 137.921 152.194 + Impairment Loss (YTD) 306.163 167.194 (-) Write-off (YTD) (291.890) (150.947) Closing Balance 152.194 168.441 % of Financing Receivables 2.33% 2.41% NPL
Slide 21: Financial Indicators
Financial Indicators 1HY FYE2014 FPE2015 FYE2016 FYE2017 (Unit: RM’million,%) FYE2018 Operating Income 711.7 928.1 1,055.2 1,222.2 671.8 PBT 233.9 288.3 301.6 351.2 197.7 PAT 175.4 215.7 228.2 265.0 147.2 Earnings per share after PERPS 1.22 1.46 1.49 1.75 1.46 distribution (RM) * 0.92# 1.10# 1.11# 1
Slide 22: 1HY FYE 2018 Key Activities
1HY FYE 2018 Key Activities AEON Credit Service (M) Berhad 5th October 2017 22
Slide 23: Key Activities – Value Chain Transformation
Key Activities – Value Chain Transformation ■ Completed cashless and paperless operation for branches nationwide ■ Install centralized control digital signage and humanoid robot in new branch at Johor Bahru ■ Increase number of digital application via tablet and web channel New branch in AEON Mall B
Slide 24: Key Activities – Settlement Business Expansion
Key Activities – Settlement Business Expansion ■ Credit Card members increased 113% YoY ■ Increase credit card usage for customer daily lifestyle via card privilege campaign Card In Circulation 240,000 Credit Card Sales by Category 230,000 Retail store 157.0% 220,000 Supermarket 128.5% 210,000 Trave
Slide 25: Key Activities – 20th Anniversary Campaign
Key Activities – 20th Anniversary Campaign ■ 20th Anniversary Special “Thank You” Campaign lucky draw winner announcement on 16 June 2017. Special appreciation campaign in conjunction with the Company’s 20th Anniversary celebration AEON Credit Service (M) Berhad 5th October 2017 25
Slide 26: Key Activities – Sponsorship to SEA Games
Key Activities – Sponsorship to SEA Games ■ Collaboration with AEON Co for sponsorship to SEA Games 2017 AEON Group of Companies sponsored the biggest sporting event in Southeast Asia AEON Credit Service (M) Berhad 5th October 2017 26
Slide 27: Key Activities – Acquiring Business Expansion
Key Activities – Acquiring Business Expansion ■ Partnership acquiring with Gloria Jean’s Coffees (43 outlets throughout the country) (RM‘000) Acquiring Sales Volume vs. No. of Terminals (Unit) 30,000 1,800 Acquiring Sales No. of Terminals Deployed 1,600 25,000 1,400 20,000 1,200 1,000 15,000 800 10,
Slide 28: 2HY FYE 2018 Key Activities
2HY FYE 2018 Key Activities AEON Credit Service (M) Berhad 5th October 2017 28
Slide 29: Key Activities – Improve in Credit Management
Key Activities – Improve in Credit Management ■ Auto-financing (AF) manage receivables quality by Portfolio Management ■ Improved in Net Credit Cost ratio at 2.96% in 1HY FYE2018, 3.45% YoY (-0.49%) (RM‘000) AF receivables / NCC Ratio Sales Share (%) 2,500 4.00% Receivables Brand YoY % NCC Ratio(%)
Slide 30: Key Activities – Settlement Business Expansion
Key Activities – Settlement Business Expansion ■ Launch of E-Money in 2HY to create AEON group synergy ■ Expand customer segment by E-Money and Platinum Card issuance in 2HY ■ Integrate customer database and utilize common database for group marketing AEON (M) ACS (M) AEON BiG NEW New Customer Segme
Slide 31: Key Activities – Digital Marketing
Key Activities – Digital Marketing ■ Developing E-Wallet for AEON Group customers ■ Features: QR payment, Group privilege information, point program, etc. Mobile Wallet Gamification Mobile Payment Mobile Wallet Digital Money Footprint Management Loyalty Security Program Self-Help Online 24/7 Cal
Slide 32: Q & A Session
Q & A Session AEON Credit Service (M) Berhad 5th October 2017 32
Slide 33: Thank You
Thank You AEON Credit Service (M) Berhad 5th October 2017 33
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