Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q1 FYE20 Earnings Presentation
22 slides from Aeon Credit Service (m) Bhd's earnings presentation, Jun 27, 2019
Slide 1: Q1 FYE20 Results Update
Listing Board Bursa Malaysia Securities Berhad, Main Market Stock Name/ Code AEONCR/ 5139 Q1 FYE20 Results Update 27 June 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: Financial Overview
JEON Financial Overview
Slide 4: Key Highlights
Key Highlights “ Achieved new record high growth from total transaction & financing volume with strong receivables collection. Positive with future performance driven by sustainable business strategies ” Q1 FYE20 Total Transaction & Financing Revenue PAT Volume +50.4% YoY +16.2% YoY -14.7% YoY Gross
Slide 5: Income Statement
Income Statement Transaction & financing volume and revenue were on uptrend Profit affected by higher expenses in tandem with transaction & financing volume Total Transaction & Financing Volume Revenue (RM mil) (RM mil) 1,647 379 1,449 360 1,095 +13.7% QoQ 326 +5.3% QoQ +50.4% YoY +16.2% YoY Q1 Q4 Q
Slide 6: Total Expenses
Total Expenses Higher expenses from the impact of MFRS 9 & the introduction of new products & services (A&P related to E-money), consistent with increased transaction & financing volume Q1 Q4 Q1 QoQ YoY (RM mil) FYE19 FYE19 FYE20 (%) (%) Impairment Loss on Receivables 57.1 94.5 93.3 -1.3 +63.4 Perso
Slide 7: Impairment Loss Analysis
Impairment Loss Analysis +RM23.0 mil impairment(LY:-27.8 mil) from higher receivables as early recognition required under MFRS 9 Off set by RM18.5 mil ECL improvement due to collection and asset quality improvement Q1 FYE20 Q1 FYE19 YoY Income Statement RM'000 RM'000 RM'000 % Impairment Loss Provisi
Slide 8: Balance Sheet
Balance Sheet Stable with healthy financing receivables growth Gross Financing Receivables ROA ROE (RM mil) (%) (%) 9,144 8.0 8,692 7.0 26.1 7,508 +5.2% 22.1 22.1 6.0 5.2 5.0 4.3 ±0.0% 4.0 3.8 3.0 -0.5% 2.0 1.0 0.0 Q1 FYE19 Q4 FYE19 Q1 FYE20 Q1 FYE19 Q4 FYE19 Q1 FYE20 Q1 FYE19 Q4 FYE19 Q1 FYE20
Slide 9: Segmental Breakdown: Total Transaction & Financing Volume
Segmental Breakdown: Total Transaction & Financing Volume Mainly driven by Personal Financing , Vehicle Financing & Credit Card with additional volume from E-money Volume (RM mil) Q1 Q4 Q1 QoQ YoY FYE19 FYE19 FYE20 Products (%) (%) 14 1,800 4 Credit card +6.1 +46.5 1,600 12 76 8 1,400 65 235 Persona
Slide 10: Segmental Breakdown: Total Financing Receivables
Segmental Breakdown: Total Financing Receivables Mainly contributed by Personal Financing, Vehicles Financing & Credit Card Receivables Movement (%) QoQ YoY Gross Receivables (RM mil) Credit card +3.6 +24.2 Q1 Q4 Q1 Personal Financing +5.7 +30.8 FYE19 FYE19 FYE20 Motorcycle Financing +7.1 +27.8 Auto
Slide 11: Receivables Collection
Receivables Collection Collection remained steady with marginally improve, following effective collection strategies & better asset quality Receivables Collection Trend 100.00 97.58 97.50 97.86 97.97 98.14 90.00 82.04 81.59 83.20 82.58 82.80 80.00 69.75 71.64 71.24 72.93 70.00 68.34 60.00 Q1 Q2 Q3 Q
Slide 12: Net Credit Cost
Net Credit Cost Higher Net Credit Cost in tandem with higher receivables recorded Net Credit Cost (NCC) Trend 3.32 3.73 3.56 3.31 3.28 3.43 3.43 3.27 90 2.99 4 80 70 1.70 2.19 2.08 2.16 3 60 2 50 1 40 30 0 47 61 51 42 55 62 61 50 32 52 39 52 67 20 -1 10 0 -2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY
Slide 13: Non-Performing Loans
Non-Performing Loans Well-managed Non-Performing Loans derived from improved collection on delinquent receivables & new sales Non-Performing Loans (NPL) Trend 12,000 4 2.74 2.43 2.33 2.28 2.43 2.48 2.48 2.33 2.26 3 1.92 10,000 2.07 2.05 2.04 2 8,000 1 6,000 0 4,000 -1 2,000 -2 5,825 6,069 6,362 6,59
Slide 14: Key Activity update
Key Activity update Asset quality Expand sales via Raya promotion campaign with Risk base pricing product and product targeted M40 customer segment 【Platinum Card】 【Hari Raya Promotion】 【Corporate Card】 Sample ※2nd Quarter 14
Slide 15: Key Activity update
Key Activity update Database integration AEON BiG member card integrated to common platform from March, AEON Malaysia member card will start to integrate in FYE20 E-Money & E-Wallet 1Q FYE20 FYE20 Target Member Plus cardholders 0.70mil 1.60mil E-Wallet download 0.20mil 1.00mil 15
Slide 16: Taxation: Appeal Status Update
Taxation: Appeal Status Update No Item Remark Status i. Filed a Notice of Appeal (Form Q) • The Company had filed a notice • To date, hearing date has yet to on 5 Jan 2018 to Special of appeal to dispute the be fixed. Commissioners of Income Tax additional assessments (SCIT) ii. Judicial Review – Le
Slide 17: Appendices
JEON Appendices
Slide 18: Performance Highlights
Performance Highlights Q1 Q4 Q1 QoQ YoY (RM’000) FYE19 FYE19 FYE20 (%) (%) Total Transaction & Financing Volume 1,094,821 1,448,714 1,647,330 +13.7 +50.5 -Credit Card 336,002 464,408 492,380 +6.0 +46.5 -Easy Payment Financing 544,571 627,953 741,897 +18.1 +36.2 -Personal Financing 214,228 344,851 39
Slide 19: Financial Summary
Financial Summary (RM’000) Q1FYE19 Q4FYE19 Q1FYE20 QoQ (%) YoY (%) Credit Card 635,675 761,591 789,721 +3.7 +24.2 -Card Purchase 569,929 697,899 726,653 +4.1 +27.5 -Cash Advance 65,746 63,692 63,068 -1.0 -4.1 Personal Financing 1,978,356 2,448,723 2,588,662 +5.7 +30.8 Objective Financing 401,185 339
Slide 20: Operating Income
Operating Income Q1 Q4 Q1 QoQ YoY (RM mil) FYE19 FYE19 FYE20 (%) (%) Credit Card 28,428 31,817 31,662 -0.5 +11.4 Personal Financing 91,964 114,596 120,964 +5.6 +31.5 Objective Financing 27,471 22,482 21,889 -2.6 -20.3 Motorcycle Financing 102,129 112,300 121,761 +8.4 +19.2 Auto Financing 74,321 76,9
Slide 21: Financial Indicators
Financial Indicators (RM mil) FYE17 FYE18 FYE19 Q1FYE19 Q1FYE20 YoY% PBT 351.0 398.0 472.0 131.8 112.7 -14.5 PAT 265.0 300.0 355.0 99.2 84.6 -14.7 Weighted average no. of 248.0 206.0 255.0 255.0 255.0 - ordinary shares (mil unit) Basic/(Diluted) EPS1 (RM) 1.0 1.4 1.3 1.5 1.3 - NTA per share (RM) 6.6
Slide 22: 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 Yuya Narita Website : www.aeoncredit.com.my Head of Investor
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