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
