PT BFI FINANCE INDONESIA: 1Q17 RESULTS

Download Total Net Receivables grew 20.1% whilst Managed Receivables (incl off balance sheet) grew 10.9% driven by Bookings growth (35.5%), in spite...

0 downloads 405 Views 911KB Size
PT BFI FINANCE INDONESIA: 1Q17 RESULTS April 2017

Disclaimer: The information contained in this presentation is strictly confidential for PT BFI Finance Indonesia Tbk (BFI or the ‘Company’) and is provided by the Company to you solely for your reference. Any reproduction, dissemination or onward transmission of this presentation or the information contained herein is strictly prohibited. By accepting delivery of this presentation you acknowledge and agree to comply with the foregoing restrictions. In addition, this presentation may includes projections and forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions and are subject to various risks. Such forward-looking statements are not guarantees of future performance and no assurance can be given that any future events will occur, that projections will be achieved or that the Company’s assumptions will prove to be correct. Actual results may differ materially from those projected and the Company does not undertake to revise any such forward-looking statements to reflect future events or circumstances.

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

1Q17 KEY UPDATES GROWTH • Receivables and Revenue growth, amidst economic challenges • Total Net Receivables grew 20.1% whilst Managed Receivables (incl off balance sheet) grew 10.9% driven by Bookings growth (35.5%), in spite of shifting away from New 4W business • Net Revenue growth of 24.4% driven largely by strong Consumer Financing business, higher yields and increase in Receivables book

• 5 new outlets PROFITABILITY • Strong PAT growth of 59.0% yoy to Rp254 billion, on the back of higher NIM (169 bps above 1Q16), better cost of credit (1.58%), higher efficiency in operations, and strong receivables growth • ROAE improved to 23.3% vs 15.9% in 1Q16 ASSET QUALITY • NPL improved to 1.01% from 1.56% in 1Q16 due to continued vigilance in risk management and collection. (Note: Write-off policy for 4W & 2W changed to 210 days starting Dec-2016)

2

BALANCE SHEET HIGHLIGHTS In Rp bil (unless otherwise stated)

New Bookings

1Q17 3,166

1Q16

YoY

2,337  35.5%

• Driven by Non-Dealer 4W and 2W bookings growth

FY16

FY15

YoY

10,743

10,058  6.8%

13,026

12,229  6.5%

Managed Receivables^

13,535 12,200  10.9%

Total Net Receivables

12,363 10,294  20.1%

11,583

9,898  17.0%

Total Assets

14,324 13,219  8.4%

12,476

11,770  6.0%

Total Debt^

9,190

8,669  6.0%

8,915

9,457  5.7%

Total Equity

4,499

4,008  12.3%

4,255

4,019  5.9%

* 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

Successfully shifter from New Dealer business to more lucrative Non-Dealer 4W product 3

PROFIT & LOSS HIGHLIGHTS In Rp bil (unless otherwise stated)

1Q17 1Q16

YoY

Interest Income

680

617  10.3%

Financing Cost

235

262  10.4%

Net Interest Income

445

354  25.6%

Fee Based Income

144

113  27.2%

Net Revenue

676

544  24.4%

Operating Expenses

305

259  18.0%

Operating Income

371

285  30.2%

52

68  22.7%

PBT

319

PAT

254

Cost of Credit

FY16 • Strong Non Dealer Financing income • Yield improvement of 67 bps YoY

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%

217  46.6%

1,025

835

 22.8%

160  59.0%

798

650

 22.8%

• Improvement in COF by 101 bps

• Increase driven largely by employee cost

• Coming off the top of the delinquency cycle

* 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 1Q17

1Q16

YoY

Net Interest Margin

10.09% 8.40%  169 bps

Cost to Income

45.11% 47.55%  245 bps  64 bps

COC / Avg Rec.

1.58% 2.22%

ROAA

9.95% 7.42%  253 bps

ROAE

23.29% 15.87%  742 bps

NPL*

1.01% 1.56%

Debt / Equity

1.80x

1.64x

• Improvement in both yield and COF

• Continue to show manageable asset quality • Strong growth in PAT yoy

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

 55 bps

0.91%

1.33%

 42 bps

 0.15x

1.76x

1.63x

 0.13x

* Defined as Pastdue >90 days, Calculated from total managed receivables (including off B/S receivables)

5

ABILITY TO BUILD A MORE ROBUST BALANCE SHEET Bookings vs Receivables Growth (2012-1Q17) 14,000 12,000 Rp bil

10,000 8,000

7,373

9,570

11,220

12,229

13,026

12,200

13,535

2012

2013

2014

2015

2016

1Q16

1Q17

• Loan book shows improvement over the years – able to improve quality and tenor of loans booked, resulting in consistent Receivables growth compared to Bookings • FY16 recorded Receivables 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

CAGR B: 11% R: 15%

9,295

8,652

10,058

10,743

6,993

6,000

Bookings +35%

4,000 2,000 0

2,337

Managed Receivables

3,166

Bookings

Revenue Growth (2012-1Q17) 3,500 3,000 Rp bil

2,500

CAGR 20%

2,000

+18%

1,500

1,000 500 0

1,582

1,890

2,299

2,831

3,227

763

901

2012

2013

2014

2015

2016

1Q16

1Q17

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%

8.9%

8.7%

8.6%

6.0%

400

798

300

600 490

650

19.4% 17.5%

16.2%

4.9%

16.8% 13.9%

11.1%

5.0% 3.9%

3.8%

4.0%

16.9%

3.4%

12.0%

10.0%

508

5.0%

2.0%

100

0.0%

2012 2013 2014 2015 2016

0.0%

2012 2013 2014 2015 2016 Source: Company, OJK



18.9% 18.2%

15.0%

500



20.0%

7.8%

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 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 (2012-1Q17)

Write-Offs (2012-1Q17)

4.00%

2.50% 2.15%

3.50%

1.83%

2.00%

3.00%

1.54% 1.51%

2.50%

1.38% 1.38%

1.50%

2.00% 1.00%

1.50%

0.82% 0.66%

1.00% 0.50%

0.43%

0.52%

0.89%

0.99%

0.96%

0.64%

0.50% 1.05%

1.38%

1.48%

1.33%

0.91%

1.01%

2012

2013

2014

2015

2016

1Q17

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

1Q17

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 (2012-1Q17)

External Funding Sources

100% 90% 80%

JF & Channelling 11%

70% 60%

Borrowings IDR 29%

50% 40% 30%

Bonds & MTN 37%

20% 10%

Borrowings USD 23%

0% 2012 Total Equity

2,862

2013

3,363

Bank borrowings

2014

2015

2016

1Q17

3,567

4,019

4,255

4,499

Bonds & MTN

Channelling

Equity

Total : Rp9,190 bil •



Increasingly larger proportion of bonds issued, taking advantage of improved pricing climate for bonds since last year



Recent corporate rating upgrade by Fitch Ratings to AA-(idn) has improved BFI capability to tap broaden Bond’s investors 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 (1Q16 vs 1Q17) 100%

1% 10%

90%

11%

80%

Managed Receivables Composition (1Q16 vs 1Q17) 2% 11%

100%

13%

80%

90%

70%

70%

60%

60%

50%

54%

55%

40%

30%

30%

20%

20% 20% 3%

0%

1Q16 Dealer New 4W Non Dealer 2W

Dealer Used 4W Total Leasing

17%

10%

2% 1Q17

0%

Non Dealer 4W Property

2% 13%

6%

7%

41% 46%

50%

40%

10%

1% 11%

24% 23% 16%

9%

1Q16 Dealer New 4W Non Dealer 2W

1Q17 Dealer Used 4W Total Leasing

Non Dealer 4W Property

Continuous effort to shift the business towards higher yield segments

10

DISTRIBUTION NETWORK (AS AT MAR-17) Business Distribution and Branch Network Denotes % Managed Receivables by Region, FY16 vs FY15

Denotes % Outlets by Region 19%

2015

19%

2016

Kalimantan 31 outlets 15%

10%

Sulawesi and East 60 outlets

19%

19%

17%

2015

2016

12%

2015

Sumatera 60 outlets

2016

19%

21%

2015

2016

19%

16%

Greater Jakarta 50 outlets

35%

Java and Bali 109 outlets

28%

31%

2015

2016

Total 310 Outlets

Moving focus away from Kalimantan and Sumatera to other lower risk areas

11