Investor Relations Presentation - AEON Credit · Our actual results of operations, financial...

Investor Relations PresentationInvestor Relations Presentation

AEON Credit Service (M) Berhad FYE2012 Investor Relation Meeting 18th May 20121

2020202020202020thththththththth Sep 2012Sep 2012Sep 2012Sep 2012Sep 2012Sep 2012Sep 2012Sep 2012

AEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) BerhadAEON CREDIT SERVICE (M) Berhad

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.

The information contained in this document has not been independently verified. No representation or warranty,

whether express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness

or correctness of such information or opinions contained herein. None of the Company nor any of its respective

affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss

arising from the use of this document or its contents or otherwise arising in connection with this document.

This document contains forward-looking statements that reflect the Company’s beliefs and expectations about the

future. These forward-looking statements are based on a number of assumptions about the Company’s operations and

factors beyond the Company’s control. Our actual results of operations, financial condition or business prospects may


factors beyond the Company’s control. Our actual results of operations, financial condition or business prospects may

differ materially from those expressed or implied in these forward-looking statements for a variety of reasons.

This document does not constitute an offer or invitation to purchase or subscribe for any shares of the Company for

sale in Malaysia or anywhere else. No part of this document shall form the basis of or be relied upon in connection

with any contract or commitment whatsoever. No part of this document may be reproduced, redistributed or passed

on, directly or indirectly, to any other person (whether within or outside your organization/firm) or published, in whole or

in part, for any purpose. No part of this document may be distributed, reproduced or transmitted without prior consent

of the Company.

Agenda

Financial Results and Overview

Strategic Business Plan


Strategic Business Plan

Questions and Answer Session

Q2 FYE 2013 Highlights

Net Profit rose 37% to RM 32M

Financial Performance


Total revenue was RM121 M 35% higher than last FY

Total Receivables of RM1,864 M increased

42% from last FY

Q2 FYE 2013 Highlights

Card member base 1,053k Credit Card : 162k

Express Card : 891k

Operational Performance


Number of merchant outlets : 5,356

Number of Co. branches : 36

1HY FYE 2013 Overview1HY FYE 2013 Overview

AEON Credit Service (M) Berhad FYE2012 Investor Relation Meeting 18th May 20126 6

FYE2013 Performance

Total transaction volume 602,452 40% 804,888 1,126,317 40%

Revenue 112,486 35% 160,184 214,110 34%

Other Income 8,612 36% 12,039 17,370 44%

Total Operating Income 121,098 36% 172,223 231,480 34%

Impairment Loss (19,358) 35% (29,624) (37,696) 27%

Staff costs (21,867) 26% (34,108) (42,921) 26%

(RM’000)

Q2

FYE2013

Growth

% YOY

H1

FYE2013

Growth

% YOY

H1

FYE2012


Staff costs (21,867) 26% (34,108) (42,921) 26%

Depreciation (3,303) 51% (4,413) (6,236) 41%

Other Operating exp (18,573) 37% (27,043) (35,746) 32%

Funding cost (14,299) 37% (19,744) (26,777) 36%

Total Operating Expenses (77,400) 34% (114,932) (149,376) 30%

Profit Before Tax 43,698 39% 57,307 82,105 43%

Corporate Tax (11,610) 44% (14,671) (21,928) 50%

Net Profit 32,088 37% 42,636 60,177 41%

Earning Per Share 26.74 37% 35.53 50.15 41%

(RM Million)

300

400

500

600

Total Transaction volume Trend140%

602

156%128%

126%

140%

163%


0

100

200

300

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

FYE2010 FYE2011 FYE2012 FYE2013

Profit movement from previous year

(RM Million)

23.4mil

37%

36% 35%26%

39%

37%

39% 32.1mil44%


Q2 ’12 121.1 19.3 21.8 21.8 14.3 43.7 11.6 32.1

Q2 ‘11 89.3 14.3 17.3 15.7 10.4 31.5 8.1 23.4

variance 31.8 5.0 3.5 6.1 3.9 12.2 3.5 8.7

Y-o-Y 136% 135% 126% 139% 137% 139% 144% 137%

PAT

Q2 ‘11

Operating

Income

Impairment

Loss

Staff

costs

Other

Operating exp

Funding

CostPBT TAX

PAT

Q2 ‘12

FYE2013 Performance(Summary of Statement of Financial Position)

Total Assets 1,367,280 1,955,097 587,817 43%

Financing Receivables 1,316,312 1,863,759 547,447 42%

Other Assets 50,968 91,338 40,370 79%

（RM ‘000）

Aug 2012Growth

% YOYAug 2011 Difference


Other Assets 50,968 91,338 40,370 79%

Total Liabilities 1,063,634 1,576,601 512,967 48%

Total Shareholders Equity 303,646 378,496 74,850 25%

Capital Adequacy Ratio 22.2% 19.4% -2.8% ---

NTA per Share (RM) 2.53 3.15 0.62 25%

FYE2013 Performance (Summary of Cash Flow)

Net cash used in operating activities (114,406) (298,507)

Net Cash used in investing activities (6,582) (16,504)

(RM’000)

Aug 2012Aug 2011


Net cash generated from financing activities 116,403 315,154

Net increase in cash and cash equivalents (4,585) 143

Cash and cash equivalents brought forward 4,657 3,514

Cash and cash equivalents c/f 20 August 72 3,657

FYE2013 Performance (Operating Income)

Credit Card 28,319 36,439 29% 16%

General Easy Payment 50,496 57,964 15% 25%

(RM’000)

Aug 2012Growth

% YOYAug 2011 Share%


Vehicle easy Payment 62,338 78,383 26% 34%

Personal Financing 19,027 41,324 117% 18%

Other Income 12,043 17,370 44% 7%

Total Operating Income 172,223 231,480 34% 100%

(RM Million)

89.3mil

37%

24%12%

29%

122% 37% 121.1mil

Income movement from previous year


Q2’ FYE12 18.8 29.8 41.1 22.7 8.6 121.1

Q2 FYE11 15.2 25.7 31.9 10.2 6.3 89.3

variance 3.6 4.1 9.2 12.5 2.3 31.8

Income

Q1 ‘11

Credit

Card

General

Easy Payment

Vehicle

Easy Payment

Personal

Financing

Other

Income

Income

Q2 ‘12

15.6%% of

composition24.6% 34.0% 18.8% 7.1%

(RM Million)

100

150

200Credit Advance

Credit purchase

Movement for Cards sales volume

188%

190

118%

101

106%

200


0

50

100


FYE2010 FYE2011 FYE2012 FYE2013

Card business promotion


Movement for GEP sales volume (RM Million)

100

General Easy Payment

120%

112

116%

93112%

80


0

50


FYE2010 FYE2011 FYE2012 FYE2013

GEP business promotion


Movement for VEP sales volume (RM Million)

100

150

167%

169

141%

102

99%

Vehicle Easy Payment24

1310

37

8

Used Car Easy Payment


0

50


FYE2010 FYE2011 FYE2012 FYE2013

99%

72

Movement for PF sales volume (RM Million)

100

255%

120

Personal Financing


0

50


FYE2010 FYE2011 FYE2012 FYE2013

199%

47

130%

24

Collection Agency business(RM ‘000)

400

600

800226%

765

593%

Income from External ClientIncome from AEON


0

200

400


FYE2010 FYE2011 FYE2012 FYE2013

593%

338

518%

57

Insurance business(RM ‘000)

1,500

2,000

157%

2,031

241%

1,444

Life InsuranceGeneral Insurance


0

500

1,000


FYE2010 FYE2011 FYE2012 FYE2013

Financing Receivables Growth

1,500

134%

1,515Credit Cards

Vehicle Easy Payment

General Easy Payment

Personal Financing

117%

1,126125%

108%

141%

1,887


0

500

1,000

FYE 09 FYE 10 FYE 11 FYE 12 Aug FYE13

125%

886

108%

960

Trade Receivables Movement from Previous year

(RM Million)

1,336mil18%

18%

41%

148% 1,887mil

41%


Q2 FYE13 403 400 727 355 1,887

Q2 FYE12 339 339 513 143 1,336

variance 64 61 214 212 551

Receivables

Q2 FYE12

Credit

Card

General

Easy Payment

Vehicle

Easy Payment

Personal

Financing

Receivables

Q2 FYE13

21.3%% of

composition21.2% 38.5% 18.8%

20

1,200

1,500

1,800

Receivables (Right Axis)

Provision made

Receivables & Provision

(RM Million)

141%

1,887

136%

1,336

135%

19


0

10


300

600

900

FYE2011 FYE2012FYE2010 FYE2013

1.68%

1.94%

1.53%

1.68%1.80%

1.63%1.71%

1.83%1.80%1.83%

2.18%

1.87%1.80%

1.5%

2.0%

2.5%

Ratio of Non-Performing Loans (NPL)Prudent risk management policies and portfolio management to control NPL


0.0%

0.5%

1.0%

5 8 11 2 5 8 11 2 5 8 11

FYE2011 FYE2012

Feb2010

Feb2009

Feb2008

FYE2013

13.313.1

9.7

2.98%

3.71%

3.29%

3.05%15

20

2.00%

3.00%

4.00%

Net credit cost

Ratio vs average receivables

Net Credit Cost Ratio vs Receivables

(RM Million)


9.79.0

0

5

10

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

0.00%

1.00%

2.00%

FYE2011 FYE2012 FYE2013

Provision for Impairment Loss (on Fin. Receivables)

Beginning Balance (as at 20 Feb) 33,997 26,475

+ Bad Debt Provision 37,695 29,624

(-) Write-off (34,538) (26,155)

(RM ‘000)

1Q-2Q of FYE2013 1Q-2Q of FYE2012


(-) Write-off (34,538) (26,155)

Closing Balance (as at 20 Feb) 37,154 29,944

% of Trade Receivables 1.97% 2.24%

NPL Ratio 1.53% 1.63%

Growth of receivables v.s. Q4 of LY 41.18% 36.05%

Borrowings

Long term borrowings ratio 73.07% 73.38% 0.31%

As at 20 Aug 2012 DifferenceAs at 20 Aug 2011


Direct borrowings ratio 56.75% 51.21% (5.54%)

OPR 3% 3% ---

1,175

1,564

1,955

1,500

2,000

Annual Financial Performance

216

250

282

341

378

300

400

(RM Million)

Total Assets

(RM Million)

Shareholders’ Fund

125% 111%


9101,010

1,175

0

500

1,000

FYE09 FYE10 FYE11 FYE12 Aug

FYE13

216

0

100

200

FYE 09 FYE 10 FYE 11 FYE12 Aug

FYE13

24.7%

26.5%25.6%

23.0%

20.5%20.0%

30.0%


23.7%24.8%

24.0%

21.8%

19.4%20.0%

30.0%

(%)

Risk Weighted Capital Ratio

(%)

Capital Adequacy Ratio


0.0%

10.0%


FYE13

0.0%

10.0%


FYE13

24.5%23.3% 23.8%

30.7%33.4%

30.0%

40.0%


5.9%5.7% 5.8%

7.0%6.8%

5.0%

(%)

Return on Equity

(%)

Return on Assets


0.0%

10.0%

20.0%


FYE13

0.0%

5.0%


FYE12

13.20

15.50

36.8% 37.0% 37.2% 37.1%

20 40%

(Sen)

Annual Dividend Per Share and Payout ratioAnnual Dividend Per Share and Payout ratioAnnual Dividend Per Share and Payout ratioAnnual Dividend Per Share and Payout ratio

37.7%37.7%37.7%37.7%

117%

Interim Dividend Per Share and Payout ratio

15.5

Payout Ratio (Right Axis)

Dividends


7.88

8.63

0

10

FYE2010 FYE2011 FYE2012 FYE2013

20%

30%

Questions and Answer SessionQuestions and Answer Session

AEON Credit Service (M) Berhad FYE2012 Investor Relation Meeting 18th May 201233 33

Investor Relations Presentation - AEON Credit · Our actual results of operations, financial...

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