Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q2 FYE2022 Earnings Presentation
29 slides from Aeon Credit Service (m) Bhd's earnings presentation, Sep 28, 2021
Slide 1: Q2 / 6M FYE2022 Results Update
Listing Board : Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code : AEONCR / 5139 Q2 / 6M FYE2022 Results Update 28 September 2021
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, fund managers and investors. The information contained in this document has not been independently verified. No representation or warranty,
Slide 3: Agenda
Agenda 01 Financial Overview 02 Business and Operational Updates 03 Sustainability 3
Slide 4: Financial Overview
JEON Financial Overview
Slide 5: Performance Highlights
Performance Highlights Steady asset quality and profit growth momentum 1H 1H YOY FYE21 FYE22 Change Revenue RM753.8M RM785.4M +4.2% Profitability PAT RM78.1M RM238.6M +205.5% ROE 9.5% 26.0% +16.5% Transaction & Financing Volume RM1.7B RM2.1B +21.6% Gross Financing Receivables RM10.3B RM9.6B -6.2% As
Slide 6: Income Statement – Q2FYE22
Income Statement – Q2FYE22 Improved top and bottom-line performance YoY Total Transaction & Financing Volume (RM mil) Revenue (RM mil) 1,408.1 411.0 962.4 708.8 374.5 -49.7% QoQ 364.0 -8.9% QoQ -26.3% YoY +2.9% YoY Q2 Q1 Q2 Q2 Q1 Q2 FYE21 FYE22 FYE22 FYE21 FYE22 FYE22 PBT (RM mil) PAT (RM mil) 215.9
Slide 7: Shareholder Value & Capital Management
Shareholder Value & Capital Management Balance sheet remains robust with strong CAR ratio at 27% Gross Receivables (RM mil) ROA (%) 6.3 10,259.4 10,058.4 9,625.2 4.6 -4.3% QoQ -1.7% QoQ -6.2% YoY 1.5 +3.1% YoY Q2 Q1 Q2 Q2 Q1 Q2 FYE21 FYE22 FYE22 FYE21 FYE22 FYE22 ROE (%) CAR (%) 36.1 26.0 27.0 25.5
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume Lower Transaction & Financing Volume due to disruption in business activities Volume – Quarterly Segmental Breakdown (%) 41.1% 27.1% 21.0% 42.2% 14.0% 40.0% 2.5% 32.5% 8.3% 8.3% 9.9% Q2 Q2 Q1 9.8% 4.9% 5.6% 20.0% FYE21 FYE22 3.8% FYE22 5.6% 3.2% 0.1% 0.1% QoQ YoY
Slide 9: Total Financing Receivables
Total Financing Receivables Emphasized on strengthening asset quality for sustainable growth Gross Receivables – Quarterly Segmental Breakdown (%) 29.1% 28.2% 28.6% 26.1% 25.4% 25.5% 32.8% 35.6% 35.2% Q2 8.1% Q1 Q2 7.3% 7.5% FYE21 3.4% FYE22 3.0% FYE22 3.2% 0.5% 0.3% 0.2% Receivables Movement Volume
Slide 10: Receivables Collection
Receivables Collection Collection activities QoQ affected by restricted workforce capacity due to FMCO, EMCO and NRP Receivables Collection Trend 97.9% 95.6% 98.3% 97.8% 81.1% 83.1% 78.2% 78.8% 75.5% 70.3% 76.9% 69.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FYE2020 FYE2021 FYE2022 Current Collection Ratio –No
Slide 11: Non-Performing Loans (NPL)
Non-Performing Loans (NPL) Continuous prudent approach on asset quality NPL Trend 20,000 2.00 1.95 2.24 18,000 1.75 16,000 14,000 1.00 12,000 10,000 8,000 9,597 10,259 10,058 9,625 6,000 4,000 2,000 0 0.10 Q2 Q2 Q1 Q2 FYE20 FYE21 FYE22 FYE22 Gross Receivables (RM mil) NPL Ratio (%) Q2 Q2 Q1 Q2 (RM m
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) Lower NCC YoY due to lower Impairment Loss NCC Trend 250 5.43 5.55 2.35 5.00 200 0.92 4.04 4.58 0.00 150 0.80 100 -0.81 -5.00 50 118 77 60 -10.00 0 -50 -20 -15.00 Q2 Q2 Q1 Q2 FYE20 FYE21 FYE22 FYE22 NCC (RM mil) Gross NCC (%) NCC (%) Q2 Q2 Q1 Q2 (RM mil) FYE20 FYE21 FYE22 FYE22
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Written-off accounts for Q2 remained stable due to better collections 250,000 342% 417% 409% 343% 500% 200,000 Stable written-off accounts benefitted 150,000 0% 64,916 from improved recovery efforts 100,000 18,592 -500% 74,019 145,542 since Jan’21 89,776 50,000 73,674 3
Slide 14: Cost-to-Income Ratio
Cost-to-Income Ratio Improved due to higher income and lower impairment loss Q2 Q2 1H 1H (RM mil) YoY YoY FYE21 FYE22 FYE21 FYE22 1HFYE22 impairment loss Total Operating Income 405.7 413.0 +1.8% 812.7 873.2 +7.4% decreased by RM170.9 mil YoY contributed by Personnel Expenses 48.1 54.2 +12.7% 84.0 10
Slide 15: Business and Operational Updates
Business and Operational Updates
Slide 16: Business Recovery
Business Recovery Sales slowed down temporarily due to movement control reimposition; Market demands and approval ratio sustained healthily for further growth 2,300 98.6% 99.0% 98.6% 98.5% 140.0% 89.4% 42.3% 90.0% 1,800 40.0% 31.6% 33.8% 35.9% 32.8% 1,300 27.7% 26.7% -10.0% -60.0% 800 -110.0% -160.0
Slide 17: Sales & Receivables Growth
Sales & Receivables Growth Achieve sustainable balance between asset growth and receivables collection 2H FYE2022 Speed up AEON database cross selling. Focusing on AEON Group collaboration activities Create new demand through channel receivables Settlement expansion. Cross sell AMP database
Slide 18: Regionalisation
Regionalisation FYE21-FYE22 Improve efficiency and effectiveness Localized Branch Telemarketing Regional Hub Guideline Rationalization Expansion Concept o Identify potential o Revision of branch o Setup nationwide Phase 1 market segment and Cash Deposit telemarketing center o Establish Centralised M
Slide 19: Sowing Future Growth
Sowing Future Growth Insurance Brokerage Digital Banking Moving Up Value Chain Facilitating Financial Inclusion via Insurepro Sdn Bhd Acquisition in Malaysia via License Application Acquiring 100% for up to RM1.7 million sale shares Proposed JV between AEON Financial Service – expected completion by
Slide 20: Dividend
Dividend Declared interim dividend of 28.50 sen for FYE2022, translating into dividend payout of 30.5% Dividend Per Share (Sen) 100.00 40.0% 90.00 34.0% 35.0% 80.00 31.5% 31.5% 31.9% 30.5% 70.00 30.0% 60.00 50.00 44.60 25.0% 41.13 40.00 36.25 22.35 29.20 28.50 20.0% 30.00 20.00 14.00 20.00 20.00 28.
Slide 21: Sustainability
JEON Sustainability
Slide 22: Sustainability FYE2022
Sustainability FYE2022 Social welfare and corporate social responsibility activities MAF AEONBersamamu MAF AEONBantu for MAF AEONBantu for Vaccination for AEON Credit’s -benefited > 1800 families Frontliners Affected Community from employees affected by the COVID-19 -provided 4,200 homecare flood, K
Slide 23: Appendices
JEON Appendices
Slide 24: Performance Highlights
Performance Highlights Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE21 FYE22 FYE22 (%) (%) FYE21 FYE22 (%) Total Transaction & 962.4 1,408.1 708.8 -49.7% -26.3% 1,741.0 2,116.9 21.6% Financing Volume Credit Card 394.7 380.8 299.1 -21.5% -24.2% 726.5 679.9 -6.4% Easy Payment 512.6 677.9 270.8 -60.1% -47.2%
Slide 25: Financial Summary
Financial Summary Q2 Q1 Q2 QoQ YoY (RM mil) FYE21 FYE22 FYE22 (%) (%) Credit Card 829.8 755.7 706.7 -6.5% -14.8% Card Purchase 769.9 658.7 591.3 -10.2% -23.2% Cash Advance 59.9 97.0 115.4 19.0% 92.6% Personal Financing 2,679.8 2,556.7 2,450.0 -4.2% -8.6% Objective Financing 344.5 299.8 307.6 2.6% -1
Slide 26: Operating Income
Operating Income Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE21 FYE22 FYE22 (%) (%) FYE21 FYE22 (%) Credit Card 35.1 34.0 30.6 -9.9% -12.9% 69.2 64.5 -6.8% Personal Financing 100.7 114.5 103.0 -10.1% 2.3% 220.0 217.5 -1.1% Objective Financing 19.6 17.8 17.8 -0.2% -9.4% 39.2 35.6 -9.1% Motorcycle Financin
Slide 27: Total Expenses
Total Expenses Q2 Q1 Q2 QoQ YoY 1H 1H YoY (RM mil) FYE21 FYE22 FYE22 (%) (%) FYE21 FYE22 (%) Total Impairment Loss 112.0 23.3 92.3 296.8% -17.6% 286.4 115.5 -59.7% Personnel Expenses 48.1 55.4 54.2 -2.2% 12.7% 84.0 109.6 30.5% Advertisement & Promotion 12.9 10.8 10.5 -2.5% -18.3% 25.1 21.3 -15.2% Ot
Slide 28: Financial Indicators
Financial Indicators Q1 Q2 1HY (RM mil) FYE19 FYE20 FYE21 FYE22 FYE22 FYE22 PBT 472.2 390.4 324.9 215.9 102.1 318.0 PAT 354.6 292.0 233.9 163.1 75.5 238.6 Weighted average no. of ordinary 255.3 255.3 255.3 255.3 255.3 255.3 shares (mil unit) Basic EPS (RM)* 1.3 1.1 0.9 2.5 1.8 1.8 NTA per share (RM)
Slide 29: Thank You
Head Office Mr Lee Kit Seong Level 18, UOA Corporate Tower, Chief Corporate 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 Chief Financial Officer stlee@aeoncredit.com.my 03-27
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