PT BFI FINANCE INDONESIA: 1H17 RESULTS July 2017
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* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations
1H17 KEY UPDATES Growth
•
01H17 new booking reached Rp6,775 bn, increase 30.0% YoY on backed by NDF Car and Mcy
•
Total managed receivables grows 15.1% YoY to Rp14,524 bn, while on net receivables increased by 27.7% to Rp 13,500 bn
•
Yield Portfolio increases 64 bps YoY to 20.56% and 36 bps above budget of 20.20%
•
01H17 NPL ratio improved to 1.09% from 1.51% YoY due to continued vigilance in risk management and collection. (Note: Writeoff policy for 4W & 2W changed to 210 days starting Dec-2016)
•
COC ratio stood at 2.14% (vs 2.09% YoY) and detained by improvement in NCL from 1.52% to 0.94%.
•
Cost of fund decrease 108bps YoY to 10.33%, supported by maturing higher funding and lower new funding cost
•
The issuance of Bond III Phase II 2017 of Rp1 trillion in Mar-2017 and USD 100 million syndicated loan (lead by SCB, BTMU & SMBC)
•
NIM improved 172bps from 8.51% in 01H16 to 10.23% in 01H17
•
01H17 PBT reached Rp658 bn, 42.5% YoY Growth,
•
01H17 PAT reached Rp526 bn, 54.5% YoY Growth backed by normalized tax rate of 20%
•
Final dividend payment of Rp110 / share in May-17,bringing total cash dividend for 2016: Rp260 / share or eq. 48.7% payout ratio
•
Stock split 1:10 has been completed successfully in Jun-17
•
Appointment of Mr. Andrew Adiwijanto as Director (pending OJK’s fit & proper test) to replace Mr. Cornellius Henry who reelected as Commissioner
Asset Quality
Funding
Profitability
Other updates
2
BALANCE SHEET HIGHLIGHTS In Rp bil (unless otherwise stated)
1H17
New Bookings
1H16
6,775
YoY
5,211 30.0%
Managed Receivables^
14,524 12,623 15.1%
Total Net Receivables
13,535 10,603 27.7%
Total Assets
14,688 11,683 25.7%
Total Debt^
10,247
8,884 15.3%
Total Equity
4,588
4,113 11.6%
Driven by Non-Dealer 4W and 2W bookings growth Higher growth vs managed rec. is due to declining JF
FY16
FY15
10,743
10,058 6.8%
13,026
12,229 6.5%
11,583
9,898 17.0%
12,476
11,770 6.0%
8,915
9,457 5.7%
4,255
4,019 5.9%
New bank loans drawdown and issuance of new Bond
YoY
Rp bil
* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations ^ Includes channeling and joint financing transactions
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0
New Bookings
2,197
2,213
2,337
2,874
2,458
3,073
3,166
3,610
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
Successfully able to sustain business growth from Non-Dealer Financing 4W and 2W 3
PROFIT & LOSS HIGHLIGHTS In Rp bil (unless otherwise stated)
Interest Income
1H17 1H16
YoY
1,401 1,239 13.1%
Financing Cost
483
512 5.7%
Net Interest Income
918
727 26.3%
Fee Based Income
311
240 29.9%
Net Revenue
1,423 1,127 26.2%
Operating Expenses
619
535 15.6%
Operating Income
804
592 35.8%
Cost of Credit
146
130 12.0%
PBT
658
462 42.5%
PAT
526
340 54.5%
FY16 • Strong Non Dealer Financing income • Yield improvement of 64 bps YoY In line with new booking growth
Manageable Increase driven largely by business volume growth
Controllable COC despite shorter WO cycle (210 DPD vs 270 DPD) Normalized tax rate in 01H17
FY15
YoY
2,532
2,415
4.8%
1,001
1,063
5.8%
1,531
1,353
13.2%
489
383
27.7%
2,358
2,066
14.1%
1,108
968
14.5%
1,250
1,099
13.7%
225
263
14.4%
1,025
835
22.8%
798
650
22.8%
* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations
Continued improvements in portfolio yield and Net Interest Margins
4
KEY RATIOS 1H17
1H16
YoY
Net Interest Margin
10.23% 8.51% 172 bps
Cost to Income
43.48% 47.47% 399 bps
COC / Avg Rec.
2.14% 2.11%
ROAA
9.84% 7.92% 192 bps
ROAE
23.62% 16.84% 678 bps
NPL*
1.09% 1.51% 42 bps
Debt / Equity
2.01x
1.66x
3 bps
0.35x
Improvement in both yield and COF
To increase reserve coverage to productive assets and NPL Strong growth in PAT yoy Improved NPL due to prudent risk mgt & shorter WO cycle
FY16
FY15
YoY
8.85%
8.20%
65 bps
47.00% 46.83%
17 bps
1.80%
2.17%
37 bps
8.68%
7.75%
93 bps
19.37% 16.90% 247 bps
0.91%
1.33%
42 bps
1.76x
1.63x
0.13x
* Defined as Pastdue >90 days, Calculated from total managed receivables (including off B/S receivables)
Maintain strong financial ratios which reflect robust business performance management 5
ABILITY TO BUILD A MORE ROBUST BALANCE SHEET Bookings vs Receivables Growth (2012-1H17) 14,000 12,000 Rp bil
10,000 8,000
CAGR B: 11% R: 15%
7,373
9,570
11,220
12,229
13,026
12,623
14,468
2012
2013
2014
2015
2016
1H16
1H17
• Loan book shows improvement over the years – able to improve quality and tenor of loans booked, resulting in consistent Receivables growth compared to Bookings • CAGR growth yoy higher than the industry
• Consistently strong growth in Revenue as a result of robust balance sheet • Shows ability to maximise income generation from assets
9,295
8,652
10,058
10,743
Bookings +30%
6,993
6,000
6,775
5,211
4,000 2,000 0
Managed Receivables
Bookings
Revenue Growth (2012-1H17) 3,500 3,000 Rp bil
2,500
CAGR 20%
2,000 +21%
1,500 1,000 500 0
1,582
1,890
2,299
2,831
3,227
1,559
1,885
2012
2013
2014
2015
2016
1H16
1H17
Revenue
Sustainable loan and revenue growth over the years – backed by more profitable asset mix 6
STABLE PROFITABILITY OVER THE YEARS ROA vs Industry
PAT Growth 12.0%
900 800
10.0%
20.0%
8.7%
8.6%
6.0%
7.8%
400
798
300
600 490
650
4.9%
17.5%
3.9%
3.8%
4.0%
13.9% 11.1%
5.0% 4.1%
3.4%
12.0%
11.8%
10.0% 5.0%
2.0% 0.0%
2012 2013 2014 2015 2016
0.0% 2012 2013 2014 2015 2016 1Q17
Source: Company, OJK
•
18.2%
16.8% 16.9%
508
100
•
19.4%
18.9% 16.2%
15.0%
500
23.3%
10.0% 8.9%
8.0%
600 Rp bil
25.0% 10.2%
CAGR 13%
700
200
ROE vs Industry
PAT growth in spite of slowing economy Continued efficient OPEX management in spite of aggressive expansion over the years
• •
One of the highest ROA companies in the industry Consistently outperformed industry
2012 2013 2014 2015 2016 1Q17 Source: Company, OJK
•
ROE improving over the years
Still one of the most profitable multifinance companies, with Returns on Equity and Assets much ahead of the industry 7
ASSET QUALITY UNDER CONTROL NPL Trend (2012-1H17)
Write-Offs (2012-1H17)
4.00%
2.50% 2.15%
3.50%
1.83%
2.00%
3.00%
1.54% 2.50%
1.38% 1.38%
1.50%
1.45%
2.00% 1.00%
1.50%
0.82% 0.66%
1.00% 0.50%
0.43%
0.52%
0.89%
0.99%
0.64%
0.96%
0.50% 1.05%
1.38%
1.48%
1.33%
0.91%
1.09%
2012
2013
2014
2015
2016
1H17
0.00%
0.00% NPL %
•
Non-Dealer
Dealer
Well managed balance sheet with low NPLs
2011
Other
2012
2013
Gross Write-Off %
• •
2014
2015
2016
1H17
Net Write-Off %
Lower write off than its peers Write-off policy for 4W and 2W changed to 210 days in Dec-16
8
STRONG CAPITAL BASE Source of Funding (2012-1H17)
External Funding Sources
100% 90% 3,363
2,862
80%
3,567
4,019
4,255
2,139
1,259
1,682
2,965
70% 60%
2,212
1,358
50% 40%
1,124
1,454
2,404
3,172
2,484
4,588
JF 7%
724 3,390
Bonds & MTN 33%
1,622
30% 20%
3,933
5,637
4,691
6,133
10%
Borrowings USD 21%
0%
2012 Total Equity
2013
2,862
3,363
Bank borrowings
•
•
2014
2015
2016
1H17
3,567
4,019
4,255
4,588
Bonds & MTN
JF
Borrowings IDR 39%
Equity
Increasingly larger proportion of bonds issued, taking advantage of improved pricing climate for bonds since last year The decline e in Joint Financing activities contributes to better funding cost
Total : Rp10,247 Billion •
•
Corporate rating upgrade by Fitch Ratings to AA-(idn) by end of 2016 has improved BFI credit profiles and impact to overall COF Adequate additional facilities in pipelines to support further business expansion
Capital structure more diversified, resulting in better management of borrowing cost and stable NIM 9
ASSET COMPOSITION Booking Composition (1H16 vs 1H17) 100%
2% 11%
90%
11%
80%
Managed Receivables Composition (1H16 vs 1H17) 2% 12%
100%
13%
80%
90%
70%
70%
60%
60%
50%
54%
54%
40%
30%
30%
20%
20%
10%
19%
17%
10%
0%
3%
2% 1H17
0%
Dealer New 4W Non Dealer 2W
Dealer Used 4W Total Leasing
Non Dealer 4W Property
3% 13%
6%
8%
43% 47%
50%
40%
1H16
2% 12%
24% 23% 14%
7%
1H16 Dealer New 4W Non Dealer 2W
1H17 Dealer Used 4W Total Leasing
Non Dealer 4W Property
Continuous effort to shift the business towards higher yield segments
10
DISTRIBUTION NETWORK (AS AT JUN-17) Business Distribution and Branch Network
19%
19%
1H16
1H17
Kalimantan 31 outlets
↑26%
Sumatera 60 outlets 19%
10%
↑26%
13%
11%
1H16
1H17
50%
54%
↑35% 1H16
↑20%
19%
18%
16%
1H16
1H17
Sulawesi and East 61 outlets
1H17
Java and Bali 164 outlets
Total 316 Outlets
52%
Denotes % Managed Receivables by Region, 1H17 vs 1H16
YoY Booking growth
Denotes % Outlets by Region
Highest growth is observed in Jawa Bali and followed by Sumatera 11
Thank you
