Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q1 FYE2022 Earnings Presentation
28 slides from Aeon Credit Service (m) Bhd's earnings presentation, Jul 6, 2021
Slide 1: Q1 / 3M FYE2022 Results Update
Listing Board : Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code : AEONCR / 5139 Q1 / 3M FYE2022 Results Update 6 July 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 3
Slide 4: Financial Overview
FON yz) AEON CREDIT SERVICE CREDIT SERVICE Financial Overview
Slide 5: Performance Highlights
Performance Highlights Better performance supported by recovery activities and improved asset quality 3M 3M YOY FYE21 FYE22 Change Revenue RM389.9M RM411.0M +5.4% Profitability PAT RM26.3M RM163.1M +520.6% ROE 6.2% 36.1% +29.9% Transaction & Financing Volume RM778.6M RM1,408.1M +80.9% Gross Financin
Slide 6: Income Statement – Q1FYE22
Income Statement – Q1FYE22 Healthy asset quality and steadfast action taken towards our recovery resulted in rebound of revenue and profit Total Transaction & Financing Volume (RM mil) Revenue (RM mil) 1,408.1 1,263.4 411.0 406.3 778.6 +11.5% QoQ 389.9 +1.1% QoQ +80.9% YoY +5.4% YoY Q1 Q4 Q1 Q1 Q4 Q
Slide 7: Shareholder Value & Capital Management
Shareholder Value & Capital Management Stable returns on solid performance; Strong capital position providing ample headroom for growth Gross Receivables (RM mil) ROA (%) 10,518.5 6.3 10,078.2 10,058.4 -0.2% QoQ 2.3 +4.0% QoQ -4.4% YoY 1.0 +5.3% YoY Q1 Q4 Q1 Q1 Q4 Q1 FYE21 FYE21 FYE22 FYE21 FYE21 FY
Slide 8: Total Transaction & Financing Volume
Total Transaction & Financing Volume AEON Credit recorded sales growth across the board Volume – Quarterly Segmental Breakdown (%) 42.6% 29.5% 27.1% 11.3% 18.8% 21.0% 13.6% 32.9% 8.9% 32.5% 9.9% 23.4% Q1 Q4 Q1 5.6% FYE21 5.6% FYE22 5.6% FYE21 3.1% 4.3% 0.4% 3.8% 0.1% QoQ YoY Volume (RM mil) Q1FYE21
Slide 9: Total Financing Receivables
Total Financing Receivables Receivables were mindfully managed to protect the collectability; Focus on Motorcycle Financing growth with risk control strategy Gross Receivables – Quarterly Segmental Breakdown (%) 29.0% 28.5% 28.2% 27.3% 25.6% 25.4% 31.6% 34.7% 35.6% Q1 8.0% Q4 Q1 8.0% 7.5% FYE21 3.6%
Slide 10: Receivables Collection
Receivables Collection Stabilised collection ratios supported by effective credit management strategies Receivables Collection Trend 98.1% 98.6% 98.2% 98.3% 88.5% 82.8% 84.4% 83.1% 86.2% 76.9% 73.1% 75.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FYE2020 FYE2021 FYE2022 Current Collection Ratio –Not past due (%) D
Slide 11: Non-Performing Loans (NPL)
Non-Performing Loans (NPL) Improved derived from better credit management and improved asset quality NPL Trend 2.46 20,000 18,000 1.92 1.75 16,000 1.42 14,000 10,518 10,078 10,058 1.00 9,144 12,000 10,000 8,000 6,000 4,000 2,000 0 0.10 Q1 Q1 Q4 Q1 FYE20 FYE21 FYE21 FYE22 Gross Receivables (RM mil) N
Slide 12: Net Credit Cost (NCC)
Net Credit Cost (NCC) NCC improved in Q1 FYE22 as a result of impairment loss reversal benefited from better delinquency movement and higher bad debt recovery NCC Trend 250 6.67 6.50 4.97 200 4.19 6.12 4.50 150 100 2.99 3.74 2.50 160 0.92 50 66 0.50 0 24 -0.81 -50 -20 -1.50 Q1 Q1 Q4 Q1 FYE20 FYE21 F
Slide 13: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Benefiting from the reversal of IL provision as improved account collections 507% 250,000 337% 339% 409% 500% 200,000 69,176 150,000 0% 100,000 4,526 157,795 145,542 -500% 50,000 88,812 105,192 Reversal of -1000% impairment loss 0 -92,662 -122,289 -1500% as benefited fr
Slide 14: Cost-to-Income Ratio
Cost-to-Income Ratio Operational efficiency improved due to lower impairment loss and prudent cost management Q1 Q4 Q1 (RM mil) QoQ YoY FYE21 FYE21 FYE22 Total Operating Expenses Total Operating Income 407.0 453.2 460.2 1.5% 13.1% decreased by RM57.1mil QoQ and RM118.8mil YoY Personnel Expenses 35.9
Slide 15: Business and Operational Updates
Business and Operational Updates
Slide 16: Business Recovery
Business Recovery New sales driven by effective Raya marketing campaign 2,300 98.6% 99.0% 98.6% 140.0% 89.4% 42.3% 90.0% 1,800 35.9% 40.0% 27.7% 26.7% 31.6% 33.8% -10.0% 1,300 -60.0% 800 -110.0% 779 962 1,224 1,263 1,408 -160.0% 300 -210.0% -200 Q1FYE21 Q2FYE21 Q3FYE21 Q4FYE21 Q1FYE22 -260.0% New Sa
Slide 17: Transformation by digital shift
Transformation by digital shift Provide seamless customer experience by create consumer digital on boarding Initiatives Key Activities Accomplishment value chain digitalization 100% 9.1% E-Application E-KYC usage E-Signature E-Warehouse Product delivery MyAeon API Real time awarding E-application by
Slide 18: Regionalisation
Regionalisation FYE21-FYE22 Strategies 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 Ce
Slide 19: Sales & Receivables Growth Strategy
Sales & Receivables Growth Strategy Achieve sustainable balance between asset growth and receivables collection Steadily driving towards healthy business expansion 1 2 3 Focusing on Receivables Targeting the right Offering the right Growth customers products Understand customer needs Fulfil cust
Slide 20: Digital Banking
Digital Banking New product and service to capture overall customer needs Digital Bank License 1 ÆON Living Zone 2 Product Centric to Customer (eco-system) Centric • Inter-group collaboration • Deep understanding of • Expand product assortment customer behaviour & needs for retail customers • Develo
Slide 21: Digital Banking
Digital Banking Creation of new product and services in both new and existing segment Financial Education, Financial Literacy and Financial Planning 2nd Tier 1st Tier Wholesale AEON Consumer Flow of Supplier Supplier Distributor Goods New Segment Existing Business Flow of Money Flow of Cash Transact
Slide 22: Appendices
FON yz) AEON CREDIT SERVICE CREDIT SERVICE Appendices
Slide 23: Performance Highlights
Performance Highlights Q1 Q4 Q1 QoQ YoY (RM mil) FYE21 FYE21 FYE22 (%) (%) Total Transaction & Financing 778.6 1,263.4 1,408.1 11.5% 80.9% Volume Credit Card 331.8 372.9 380.8 2.1% 14.8% Easy Payment Financing 334.4 598.8 677.9 13.2% 102.8% Personal Financing 88.3 237.4 295.0 24.3% 234.1% E-Money 24
Slide 24: Financial Summary
Financial Summary Q1 Q4 Q1 QoQ YoY (RM mil) FYE21 FYE21 FYE22 (%) (%) Credit Card 838.5 810.1 755.7 -6.7% -9.9% Card Purchase 779.9 727.5 658.7 -9.5% -15.5% Cash Advance 58.6 82.6 97.0 17.3% 65.5% Personal Financing 2,875.2 2,580.0 2,556.7 -0.9% -11.1% Objective Financing 380.1 293.8 299.8 2.0% -21.
Slide 25: Operating Income
Operating Income Q1 Q4 Q1 QoQ YoY (RM mil) FYE21 FYE21 FYE22 (%) (%) Credit Card 34.1 36.7 34.0 -7.5% -0.6% Personal Financing 119.3 113.6 114.5 0.8% -4.0% Objective Financing 19.6 16.9 17.8 5.7% -8.8% Motorcycle Financing 124.4 149.9 157.0 4.7% 26.2% Auto Financing 85.9 85.0 84.5 -0.6% -1.7% SME Fi
Slide 26: Total Expenses
Total Expenses Q1 Q4 Q1 QoQ YoY (RM mil) FYE21 FYE21 FYE22 (%) (%) Total Impairment Loss 174.4 65.1 23.3 -64.3% -86.7% Personnel Expenses 35.9 58.6 55.4 -5.4% 54.2% Advertisement & Promotion (A&P) 12.2 8.4 10.8 28.7% -11.8% Other Operating Expenses 55.0 83.7 69.2 -17.4% 25.9% Operating Expenses 277.
Slide 27: Financial Indicators
Financial Indicators Q1 Q1 (RM mil) FYE19 FYE20 FYE21 FYE21 FYE22 PBT 472.2 390.4 324.9 37.1 215.9 PAT 354.6 292.0 233.9 26.3 163.1 Weighted average no. of ordinary shares 255.3 255.3 255.3 255.3 255.3 (mil unit) Basic EPS (RM)* 1.3 1.1 0.9 0.4 2.5 NTA per share (RM) 6.0 6.1 6.6 6.0 7.3 ROE (%)* 22.
Slide 28: 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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