AEONTS Performance 1Q2019 ended May 31, 2019 > 1 /35 - - PowerPoint PPT Presentation

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AEONTS Performance 1Q2019 ended May 31, 2019 > 1 /35 - - PowerPoint PPT Presentation

AEONTS Performance 1Q2019 ended May 31, 2019 > 1 /35 Disclaimer This document has been prepared by AEON Thana Sinsap (Thailand) PCL (AEONTS or the Company) solely for the use at the presentation to analysts, investors, and fund


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AEONTS Performance 1Q2019

ended May 31, 2019

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Disclaimer

This document has been prepared by AEON Thana Sinsap (Thailand) PCL (“AEONTS” or the “Company”) solely for the use at the presentation to analysts, investors, and fund managers. The information contained in this document has not been independently verified. No representation or warranty, whether expressed 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

  • r 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 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

  • f the Company. 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.

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AEON Group

ACS Malaysia

AEON Co, LTD. (Pure Holding Company)

General Merchandise Store AFS Corporation Shopping Center Development International - Retail Service & Specialty Store Shared Function Companies AEON ASEAN AEON CHINA AEON (Thailand) AEON Financial Service

Aeon Leasing Service (Lao) AEON Microfinance (Myanmar) AEON Specialized Bank (Cambodia) ACS Trading Vietnam AEON Insurance Service (Thailand) ACS Servicing (Thailand)

Drug store & Pharmacy Supermarket

44.86% 100% 100% 50% 20% 100% 100%

International AEON Thana Sinsap (Thailand)

35.12%

ACS Capital

19.20% 50%

ACS ASIA (Hong Kong)

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80.00 90.00 100.00 110.00 120.00 130.00 140.00 150.00 160.00 170.00 180.00

Private Consumption Index Non-durables Index Semi-durables Index Durables Index Services Index

1Q19 2015 2016 2017 2018

The growth rate compared to previous year (%) Private Consumption Index and Components

Economic Outlook

Source: Bank of Thailand (BOT)

Mar’19

3.0

  • 5.6

0.1 9.8 7.7

  • 3.6

2.1 3.1 3.0 4.6 4.6 GDP Exports (USD) Private Consumption 3.9 2.8 3.3 4.1

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> 5 /35 Credit card debt Housing loan Auto loan Personal loan

Credit Card Overview

Thai Consumer Debt Outstanding 1Q19 Thai Consumer Debt Outstanding 1Q19

Source: BOT, Krungsri Research Note: Loans outstanding at commercial banks

Regulations Governing Credit Cards Regulations Governing Credit Cards

Monthly income Credit limit Interest rate Old regulations Not less than THB 15,000 Not more than 5-times income 20% New regulations Not more than THB 30,000 1.5-times monthly income 18% THB 30,000-50,000 3-times monthly income 18% Over THB 50,000 5-times monthly income 18%

Effective on September 1, 2017

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Non-banks

11.1 M (80%)

Banks

2.7 M (20%)

Non-banks

252 B (51%)

Banks

240 B (49%)

Thai Credit Card Players and Market Share

Banks Non-banks

Key players

Domestic commercial banks Foreign banks Foreign players Domestic players

Market Share (1Q2019) Market Share (1Q2019)

Credit Card

(million accounts, %) (billion baht, %)

Personal Loan

(million accounts, %) (billion baht, %) Source: BOT, Krungsri Research Non-banks

11.7 M (52%)

Banks

10.8 M (48%)

Non-banks

153.9 B (40%)

Banks

232.8 B (60%)

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Shareholder Structure

AEONTS Shareholder Structure as of May 31, 2019

Source: TSD

63% 17% 11% 9%

AEON Group Thai Institution Thai Individual Foreign

1Q18 2Q18 3Q18 4Q18 1Q19

  • No. of

shareholders 3,568 3,808 4,206 4,324 3,961 Market Cap (MB) 39,500 45,000 47,250 44,875 51,500

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> 8 /35 Personal Loan Personal Loan Credit Card Hire Purchase Hire Purchase Purpose Loan

(Mobile, Electric appliances, Furniture, Gold and etc.)

Purpose Loan

(Mobile, Electric appliances, Furniture, Gold and etc.)

Other Other Personal Loan Credit Card Hire Purchase Purpose Loan

(Mobile, Electric appliances, Furniture, Gold and etc.)

Other

(Motorcycle & Second hand car)

Business Structure

Source: AEONTS 1Q2019

% of Total Revenue % of Total Revenue % of Total Revenue

* Trading Volume = Spending amount

% of Trading Volume % of Trading Volume % of Trading Volume

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  • Core business revenues grew 8% y-y
  • Bad debt recovery continue to increase by

38% y-y

  • Oversea business’s revenue grew 77% y-y

Key Highlights

1Q FY19 (ended May 31, 2019)

ROE

21.3%

Accounts Receivable

+3.3% QoQ

Trading Volume

+10% YoY

Trading Volume

+10% YoY

Revenue

+10% YoY

Revenue

+10% YoY

Net Profit

+6% YoY

Net Profit

+6% YoY

NPL

2.82%

NOTE

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(Unit: Million Baht)

1Q

Ended May’18

2Q

Ended Aug’18

3Q

Ended Nov’18

4Q

Ended Feb’18

Credit Card 16,620 16,345 16,534 16,919 Hire Purchase 447 476 661 788 Loan 7,472 8,292 8,013 8,025

Total Sales

1Q

Ended May’19

Q-Q Y-Y 17,701 5% 7% 975 24% 118% 8,583 7% 15%

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1Q May’19 Q-Q Y-Y

28,285 5% 10% 5,494 4% 10% 4,221

  • 1%

10% 2,283

  • 2%

9% 1,395

  • 2%

16% 544 2%

  • 1%

1,272 22% 9% 987 21% 6% 3.95 21% 6%

Consolidated Profit & Loss Statements

1Q

May’18

2Q

Aug’18

3Q

Nov’18

4Q

Feb’19

Total Sales

25,703 26,266 26,241 26,934

Total Revenues

5,016 5,093 5,225 5,306

Total Expenses

3,847 4,008 4,091 4,268

  • Operating and

admin expenses

2,088 2,198 2,146 2,318

  • Bad debt and

doubtful accounts

1,205 1,254 1,407 1,418

  • Funding cost

552 554 538 532

Operating Income

1,170 1,088 1,136 1,040

Net Profit

928 862 901 817

EPS (Baht)

3.71 3.45 3.60 3.27 (Unit: Million Baht)

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AEONTS’s Performance

(Million Baht) (Million Baht)

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Revenues (LHS) Net Profit (RHS)

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  • 4
  • 2

2 4 6 8 10 12 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1Q19

Accounts Receivable (LHS) NPL (RHS) GDP (RHS)

AEONTS’s Performance

(Million Baht) (%)

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  • 6
  • 2

2 6 10 14 18 22 26

  • 2
  • 1

1 2 3 4 5 6 7

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1Q2019 AEONTS's NIM (RHS) AEONTS's Interest Expenses (RHS) Policy Rate (LHS) Headline Inflation (LHS) AEONTS's Yield (RHS) GDP

AEONTS Net Interest Margin

Manageable Policy under Economic Fluctuations

(%) (%) 23.58

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Consolidated Balance Sheet

(Unit: Million Baht)

2018

Ended Feb’19

1Q2019

Ended May’19

%Change Total Assets 87,121 90,844 4% Accounts Receivable 82,512 85,252 3% Allowance for doubtful accounts 2,880 3,062 6% Total Liabilities 68,733 71,470 4% Total Shareholders’ Equity 18,388 19,374 5%

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0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%

Policy Rate AEONTS Avg Funding Cost

1.75% 3.04%

Interest rate Trend (2009-1Q19)

AEONTS Average Funding Cost

4Q18 1Q19

AVG Funding Cost 3.07% 3.04% LT Funding Portion 75% 68% AVG TTM 2.31 yrs 2.23 yrs

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Bad Debt Provision

2016

As of 29 Feb 17

2017

As of 28 Feb 18

2018

As of 28 Feb 19

1Q2019

As of 31 May 19

Credit Card O/S (MB)

28,711 34,588 36,623 37,067

D3Up

2.43% 2.19% 2.68% 2.83%

Allowance

2.97% 2.78% 2.99% 3.14%

Personal Loan O/S (MB)

35,827 39,796 43,590 45,446

D3Up

2.92% 2.45% 2.86% 2.84%

Allowance

3.77% 3.53% 3.96% 4.01%

Hire Purchase O/S (MB)

1,444 1,266 2,118 2,611

D3Up

3.52% 3.54% 2.67% 2.58%

Allowance

3.70% 3.55% 2.55% 2.72%

Total

O/S (MB)

66,128 75,823 82,512 85,252

D3Up

2.71% 2.35% 2.77% 2.82%

Allowance

3.42% 3.18% 3.49% 3.59%

Coverage ratio

126% 136% 126% 127%

Note: O/S (Outstanding at the end of period), D3UP (Delinquent 3 months up)

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Asset Quality (Quarterly Base)

66,128 65,844 70,745 75,436 75,824 77,210 79,632 81,383 82,512 85,252

7.0% 6.1% 5.8% 5.7% 5.7% 5.4% 5.4% 5.6% 5.7% 5.5%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 76,000 78,000 80,000 82,000 84,000 86,000 88,000

Feb'17 May'17 Aug'17 Nov'17 Feb'18 May'18 Aug'18 Nov'18 Feb'19 May'19

Million Baht

Account Receivable % Net credit costs (Quarterly)

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Financial Indicators

FY2018

Ended Feb’19

1Q2019

Ended May’19

Book value per Share Baht 72.2 76.1 D/E Ratio Times 3.8 3.8 Equity Ratio % 20.7 20.9 Return on Equity % 20.8 21.3 Return on Asset % 4.2 4.4

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Trend of Dividend

34.5% 35.7% 33.2% 35.9% 32.4% 33.5%

% of Net Profit

1.60 1.60 1.60 1.60 1.60 2.35 1.85 1.85 1.85 1.85 2.25 2.35 FY13 FY14 FY15 FY16 FY17 FY18 End Feb 19

Final Dividend Interim Dividend 3.45 3.45 3.85 3.45 3.45 4.70

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87 516 1,081 1,694 2,536 3,501 5,818 10,203 13,549 12 79 204 352 457 578 878 1,356 2,130

  • 500

1,000 1,500 2,000 2,500 3,000 3,500

  • 2,000

4,000 6,000 8,000 10,000 12,000 14,000 16,000 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Sales (LHS) Revenues (RHS)

AEONTS’s Investment

Sales & Revenues (Cambodia, Laos and Myanmar)

CLM FY2017 FY2018 1Q19 %YoY

  • No. of customers

172,614 262,676 287,330 48%

  • No. of Dealers

2,302 3,818 4,192 70%

  • No. of Staff

861 1,160 1,236 35%

  • No. of Branch

12 16 16 14% Cambodia Myanmar Laos Yield 31.2% 30.1% 37.9%

Planning

(Unit : Million Baht) (Unit : Million Baht)

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FY2023

1Q19

FY2023

1.6% 5.1% 6% 2%

FY2013 FY2013

Revenue Revenue Asset Asset

AEONTS AEON Ins & ACSS CLM AEONTS AEON Ins & ACSS CLM

95% 87% 84% 4.7% 0.3% 7.2% 5.6% 10% 97% 93% 90% 4.7% 0.3% 8%

AEONTS Group Performance

1Q2019 1Q2019

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Future Planning - Overseas Business

AEON SENSOK Branch AEON Point Card

CAMBODIA

Start providing NFC Card Payment Installing the EDC for Credit Card Business Enhance of Loan Business and expansion of the Riel currency loan amounts Start Insurance Broker Business Relocation of H.O. and Branch Establishment

Note : Near Field Communication (NFC) Technology

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Expanding the business by operating two new branches in Yangon Expansion motorcycle loan and launch personal loan in Mandalay

Future Planning - Overseas Business

MYANMAR

Branches at Sakura Tower Branches at Sakura Tower and Yangin AEON Orange (Hypermarket)

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Strengthening motorcycle hire purchase business Launch car hire purchase business Expand service area

Future Planning - Overseas Business

LAOS

Dealer in Laos

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Launch new business : Mobile payment , AEON point business and Insurance agency business Hire Purchase Business Reformation

  • Dealer strategy reformation
  • Expansion of product lineup

Open two new AEON Malls

Future Planning - Overseas Business

VIETNAM

Mobile Payment : IPS Agricultural equipment line-up AEON Mall in Vietnam

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Marketing Performance

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AEON Thai Mobile Application

Total Download (Life Time)

1,766,033 DL (+5.8% Q-Q)

Monthly Active User (1-31 May)

841,977 ID (+4.7% LM)

The E-statement service via mobile Application has been available for our customers since August 23, 2018

Movie Ticket discount 1,000 pts for 100THB

199,165 215,884 216,759 310,022 276,284 269,000 278,767

50,000 100,000 150,000 200,000 250,000 300,000 350,000

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

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0.80 1.27 1.87 2.46 2.94 3.38 3.63 3.90 4.20 4.58 4.83 4.96 5.24 5.43 5.65 5.9 5.95 1.13 1.32 1.40 1.54 1.64 1.77 1.85 1.92 2.01 2.12 2.20 2.26 2.31 2.38 2.50 2.62 2.67 1.93 2.60 3.27 4.00 4.58 5.15 5.48 5.82 6.21 6.70 7.03 7.22 7.55 7.81 8.15 8.52

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Credit Card Member Card

8.62 1Q19

Customer base sustainable development

Total Card Acquisition

(Million Cards)

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Quality y Service ce Networks ks Nationwide

Service Channel

Dealer Branch ATM

Bangkok = 31 Provinces = 74 Bangkok = 178 Provinces = 260 Bangkok = 1,599 Provinces = 4,708 Other Banks ≈ 53,000 438 Total = 438 Total 6,307 Total = 105

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Withdraw cash without using a card or PIN via AEON Thai Mobile App

CARDLESS YOUR CASH 1Q19

  • r

Cardless 13% Carded 87%

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AUTO FINANCE PERFORMANCE 1Q19

72 99 179

Total Sales 284 MB Total Sales 284 MB Total Sales 284 MB Total Dealer 376 Shops Total Dealer 376 Shops Total Dealer 376 Shops

(Million Baht)

231 284

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Card Acquisition

INSTANT MEMBER CARD ISSUE INSTANT MEMBER CARD ISSUE

Launched on Aug, 2018 Card Type : AEON Member Card

Instant Credit Card issue at all AEON Branches

Launched on Feb, 2019

INSTANT CREDIT CARD ISSUE INSTANT CREDIT CARD ISSUE

Card Type : AEON Gold Card AEON Classic Card AEON J-Premier

Instant Member Card issue at all AEON Branches

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Credit Card Privileges FY2019

AEON CARD PRIVILEGES 2019 Café Amazon : Get 20 THB discount Card : AEON ROP, AEON J-Premier, AEON Gold Card & AEON Classic Card Period : March 1, 2019 - Feb 28, 2020

New Partner Card Privileges

McDonalds AEON Price @79THB Major Group Buy 1 get 1 for movie ticket Pizza Hut Buy 1 get 1 for Pizza @199THB Max Valu 5% discount everyday

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