Aeon Credit Service (m) Bhd. · MYX:AEONCR
Aeon Credit Service (m) Bhd — Q4 FYE24 Earnings Presentation
33 slides from Aeon Credit Service (m) Bhd's earnings presentation, Apr 8, 2024
Slide 1: Q4 FYE24 Financial Results
Q4 FYE24 Financial Results 08 April 2024
Slide 2: Table of Contents
Table of Contents 03 REVIEW OF FYE24 13 FINANCIAL OVERVIEW 21 KEY STRATEGIES & MOVING FORWARD 26 APPENDICES
Slide 3: Review of FYE24
SEON REVIEW OF FYE24 - J RS
Slide 4: Overview of Financial & Key Products
Overview of Financial & Key Products Robust FYE24 Performance Total Revenue Profit After Tax Total Loan Growth Dividend RM1.9 BIL RM424.0 MIL RM12.2 BIL 42.5 SEN +16.6% YoY +1.5% YoY +12.9% YoY PER SHARE * Transaction & Financing Volume RM3.3 BIL RM2.0 BIL RM1.9 BIL 13.9% vs. FYE23 11.8% vs. FYE23 +
Slide 5: Achievements in FYE24: AEON Wallet
Achievements in FYE24 Spurring AEON Wallet growth through new initiatives AEON Wallet Performance in FYE24 > 2.5 mil > 30.7% > 420k Wallet Download Wallet Average Active Total Sign-Ups Ratio 49.3% vs. FYE23 7.5% vs. FYE23 124.0% vs. FYE23 New Wallet Interface Enhanced Wallet UI/UX EPPF Financing Fun
Slide 6: Achievements in FYE24: Digitalization of assessment process
Achievements in FYE24 Accuracy and Productivity improvements through digitalization of assessment process Digital Onboarding Process Personal Financing sales increased 28.7% YoY to RM1.9 bil 8,674 73% 14,978 Before Launch After Launch ➢ Launch of Personal Financing digital onboarding Average Web app
Slide 7: Achievements in FYE24: Payment Business growth
Achievements in FYE24 Increased Payment Business sales growth through revised card features and rebranding exercise Credit Card & Rebranding CIC Revenue Receivables 236 K RM155.5 mil RM793.9 mil 17.0% YoY 7.0% YoY 10.6% YoY Credit Card sales Net Promoter Score ➢ Payment Business sales growth and inc
Slide 8: Achievements in FYE24: Future vision & employee wellbeing
Achievements in FYE24 Prerequisites for the future vision & enhanced employee wellbeing AEON Group Future Vision Our Purpose Foster Employee Engagement • Launch of E-learning portal, improved the average learning hours for management staff from 17.5 hours in FYE23 to 43.8 hours • Invested in Microso
Slide 9: Achievements in FYE24: Embedding Sustainability
Achievements in FYE24 Embedding Sustainability across AEON Credit business Environmental Economy Subscription to Renewable Achieved SLL Energy Certificates Performance Targets Improved MSCI Ratings from ‘A’ since 2018 to ‘AA’ and maintained Good rating in FTSE4Good for Sustainability SPT-1 Achieved
Slide 10: Corporate Social Responsibilities Key Activities in FYE24
Corporate Social Responsibilities Key Activities in FYE24 Empowering communities through ongoing engagement and disaster relied efforts Malaysian AEON Foundation Environmental and Social Inclusion Initiatives RM1.0 mil Donation to 950 families received flood 3,000 Bubur Lambuks 4.0 tonnes of rubbish
Slide 11: FYE24 Review
FYE24 Review Indicators Actual Remark FYE24 FYE24 ➢ Attributed by product scheme revision and revamped of credit card feature to acquire good score customers and penetrate to M40 customers Loan Growth ±10% 12.9% ➢ High application count coupled with higher approval ratio attributed to channels expan
Slide 12: Dividend
Dividend FYE24 recorded the highest dividend payout ratio in five years Historical Dividend Data 31.5% 31.9% 33.9% 30.3% 34.0% 500.0 400.0 300.0 200.0 100.0 91.9 292.0 74.6 234.0 123.8 365.4 126.4 417.7 144.2 424.0 - 5.5% FYE20 FYE21 FYE22 FYE23 FYE24 Payout Amount (RM mil) PAT (RM mil) Payout Ratio
Slide 13: Financial Overview
FINANCIAL OVERVIEW
Slide 14: Financial Performance
Financial Performance Robust revenue growth driven by strong loan growth FYE22 FYE23 FYE24 YoY Total Income 1,706.2M 1,837.5M 2,106.9M +14.7% Operating Expenses -848.5M -974.6M -1,166.6M +19.7% Impairment Loss -303.3M -447.8M -569.9M +27.3% - Profitability PBT 526.8M 547.0M 565.2M +3.3% PAT 365.4M 4
Slide 15: Total Transaction & Financing Volume – Q4FYE24
Total Transaction & Financing Volume – Q4FYE24 Sequential volume improvement except Personal Financing Group Total Transaction & Financing Volume (RM mil) Transaction & Volume by Types Easy Payment Payment Business Personal Financing 44.5% 46.1% Q4 Q4 854 546 498 FYE23 FYE24 819 507 712 481 453 25.4
Slide 16: Total Gross Financing Receivables
Total Gross Financing Receivables All segments demonstrated significant growth YoY Gross Financing Receivables (RM mil) Gross Receivables by Types Easy Payment Payment Business Personal Financing 66.0% 63.9% 7,646 7,816 7,147 3,622 Q4 Q4 3,490 2,971 FYE23 FYE24 767 794 718 27.4% 6.6% 6.5% 29.6% • Re
Slide 17: Receivables Collection
Receivables Collection Continuous collection improvement from prudent credit management Current Collection Ratio (%) D1 & D2 Collection Ratio (%) Collection performance continues to improve QoQ: 84.4 • Gradual improvement in collection 83.7 performance attributed to the effective credit policy imple
Slide 18: Non-Performing Loan (NPL) and Net Credit Cost (NCC)
Non-Performing Loan (NPL) and Net Credit Cost (NCC) Effective approach to credit assessment and collection strategy NPL Trend Q4 Q3 Q4 (RM mil) FYE23 FYE24 FYE24 2.89 2.73 2.57 Receivables 10,836 11,903 12,232 Balance D3+ 313 325 315 NPL (%) 2.89 2.73 2.57 10,836 11,903 12,232 Lower QoQ for NPL and
Slide 19: Impairment Loss (IL) Analysis
Impairment Loss (IL) Analysis Loan Loss Coverage Ratio remains at a strong position 252% 233% 221% Q4 Q3 Q4 QoQ (RM mil) QoQ FYE23 FYE24 FYE24 RM mil 1 Write Off 129 182 173 -9 -4.8% 182 173 IL Provision -12 1 -59 -60 -5453.2% 129 Total IL 117 183 114 -69 -37.7% -12 -59 Q4FYE24 Expected Credit Loss
Slide 20: Cost-to-Income Ratio (CIR)
Cost-to-Income Ratio (CIR) CIR expansion in tandem with sales and revenue growth Q4 Q4 RM mil YoY FYE23 FYE24 YoY FYE23 FYE24 Total Operating Income 481.2 548.7 14.0% 1,837.5 2,106.9 14.7% Personnel Expenses 67.4 65.0 -3.6% 219.4 246.1 12.2% Advertisement & Promotion 8.3 13.7 65.0% 30.2 38.5 27.4% O
Slide 21: Key Strategies and Moving Forward
KEY STRATEGIES AND MOVING FORWARD
Slide 22: Indicators & Strategic Roadmap For FYE25
Indicators & Strategic Roadmap For FYE25 Robust brand visibility & bringing “Finance” closer to everyone Key Business Strategy Focus in FYE 2025 Building an Ecosystem Advancement in Strengthen Business Talent Development and & AEON Living Zone Assessment Process Capacity ESG initiatives Our Expectat
Slide 23: FYE25 Business Strategy
FYE25 Business Strategy Continuous expansion of customer base Building an Ecosystem AEON Living Zone • Consolidate financial services, point program and pre- • Completion development of AEON group common ID assessment scheme into a new app to drive member expansion • Establish a specialized team to
Slide 24: FYE25 Business Strategy
FYE25 Business Strategy Digital infrastructure enhancements for AEON living zone Advancement in Assessment Process ESG & Sustainability • Optimise the customer experience by improving TAT through • Responsible corporate citizen by contributing to the local the automated assessment community • Implem
Slide 25: AEON Bank Rollout Timeline
AEON Bank Rollout Timeline Count down to launch in first half 2024 Obtained license Testing Phase by AEON Limited AMP Public Launch to start Employees Customers Operation 15th First Feb Mar Apr Jan Half 2024 2024 2024 2024 2024 Deposit Loyalty Program Progress Update: • AEON Credit has invested the
Slide 26: Appendices
APPENDICES
Slide 27: Performance Highlights
Performance Highlights Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE23 FYE24 YoY FYE23 FYE24 FYE24 FYE24 FYE24 Total Transaction & Financing 1,599.3 1,832.3 1,789.9 1,823.9 1,853.6 1.6% 15.9% 6,247.0 7,299.8 16.9% Volume Easy Payment Financing 712.0 856.7 804.9 819.2 854.4 4.3% 20.0% 2,929.4 3,335.3 13.9% Pay
Slide 28: Financial Summary
Financial Summary Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE23 FYE24 FYE24 FYE24 FYE24 Easy Payment Financing 7,147.0 7,372.8 7,510.1 7,646.0 7,816.8 2.2% 9.4% Payment Business 717.9 719.7 738.8 766.7 793.9 3.5% 10.6% Personal Financing 2,970.9 3,126.5 3,316.7 3,490.0 3,621.6 3.8% 21.9% Total Financing Rec
Slide 29: Operating Income
Operating Income Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE23 FYE24 YoY FYE23 FYE24 FYE24 FYE24 FYE24 Easy Payment Financing 264.9 278.1 284.1 287.7 294.7 2.4% 11.2% 1,021.5 1,144.6 12.1% Payment Business 44.1 42.8 44.3 45.5 47.6 4.6% 8.0% 165.0 180.2 9.2% Personal Financing 121.4 128.8 140.1 149.6 155.9 4
Slide 30: Total Expenses
Total Expenses Q4 Q1 Q2 Q3 Q4 (RM mil) QoQ YoY FYE23 FYE24 YoY FYE23 FYE24 FYE24 FYE24 FYE24 Impairment Loss on 117.2 152.5 120.6 182.8 114.0 -37.6% -2.7% 447.8 569.9 27.3% Receivables Personnel Expenses 67.4 53.0 63.3 64.9 65.0 0.1% -3.6% 219.4 246.1 12.2% Advertisement & Promotion 8.3 9.7 8.6 6.5
Slide 31: Financial Indicators
Financial Indicators FYE21 FYE22 FYE23 FYE24 PBT (RM mil) 324.9 526.8 547.0 565.2 PAT (RM mil) 234.0 365.4 417.7 424.0 Weighted average no. of ordinary shares (mil) 255.3 255.3 255.3 510.6** Basic EPS (RM)* 0.44 0.70 0.80 0.81 NTA per share (RM)* 3.3 3.9 4.6 5.2 ROE (%) 13.8 19.2 18.8 16.7 ROA (%) 2
Slide 32: Disclaimer
Disclaimer This document has been prepared by AEON Credit Service (M) Berhad (“AEON Credit” or the “Group”) 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, w
Slide 33: Thank You
THANK YOU Mr Lee Kit Seong Ms Lee Siew Tee Investor Relations Team Chief Corporate Officer Chief Financial Officer ir_info@aeoncredit.com.my leeks@aeoncredit.com.my stlee@aeoncredit.com.my Level 18, UOA Corporate Tower, www.aeoncredit.com.my Avenue 10, The Vertical, Bangsar South City, 03-2772 9000
AEON Credit Service (M) Berhad — Q4 FYE24 Earnings Presentation on 6ix