PT BFI FINANCE INDONESIA: 3Q17 RESULTS October 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
UPDATES AS OF SEP-17 •
9M17 new booking reached Rp10,251 bil, increase 33.7% YoY on backed by NDF 4W and 2W
•
Total managed receivables grows 18.5% YoY to Rp14,972 bil, while on net receivables increased by by 33.2% to Rp 14,356 bil
•
Yield Portfolio increases 61 bps YoY to 20.62% supported by larger proportion of higher yield portfolio
•
9M17 NPL ratio improved to 1.11% from 1.75% YoY due to continued vigilance in risk management and collection. (Note: Write-off policy for 4W & 2W changed to 210 days starting Dec-2016)
•
COC ratio also improved to 1.70% from 2.12% YoY, in line with the improvement in NCL from 1.51% to 1.05%.
•
Cost of fund decrease 115bps YoY from 11.38% to 10.22%, supported by maturing higher cost of funding and lower new funding cost
•
Signing of USD100 mm syndicated loan (led by SCB, SMBC & BTMU) and further upsized to USD125 mm after receiving substantial over subscription
•
Net Interest Spread improved by 176bps from 8.63% in 9M16 to 10.39% in 9M17
•
9M17 PBT reached Rp1,055 bil, 46.8% YoY Growth
•
9M17 PAT reached Rp842 bil, 52.1% YoY Growth backed by normalized tax rate of 20%
Growth
Asset Quality
Funding
Profitability
Other
• • •
Fit and Proper – Cornelius Henry confirmed as Commissioner and Andrew Adiwijanto as Director Setting up of subsidiary PT Finansial Integrasi Teknologi for digital initiatives Approval for setting up of sharia business unit
2
BALANCE SHEET HIGHLIGHTS In Rp bil (unless otherwise stated)
9M17
9M16
YoY
10,251
Managed Receivables^
14,972 12,639 18.5%
Total Net Receivables
14,356 10,779 33.2%
Total Assets
15,326 11,680 31.2%
Total Proforma Debt^
9,754
6,961 40.1%
10,237
8,569 19.5%
4,890
4,197 16.5%
Total Equity
FY15
10,743
10,058 6.8%
Driven by Non-Dealer 4W and 2W bookings growth
13,026
12,229 6.5%
11,583
9,898 17.0%
Higher growth vs managed rec. is due to declining JF
12,476
11,770 6.0%
7,656
7,318 4.6%
New bank loans drawdown and issuance of new Bond
8,915
9,457 5.7%
4,255
4,019 5.9%
7,669 33.7%
New Bookings
Total Debt
FY16
YoY
* 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
Quarterly Bookings Trend (3Q15-3Q17) 4,000
Rp bil
3,000 2,000
1,000 2,197
2,213
2,337
2,874
2,458
3,073
3,166
3,610
3,475
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
2Q17
3Q17
0
Successfully able to sustain business growth from Non-Dealer Financing 4W and 2W 3
PROFIT & LOSS HIGHLIGHTS (PROFORMA) In Rp bil (unless otherwise stated)
9M17 9M16
YoY
Interest Income
2,162 1,873 15.4%
Financing Cost
(735) (759) 3.1%
Net Interest Income
1,426 1,115 28.0%
Fees & Other Income
776
598 29.8%
FY16 • Strong Non Dealer Financing income • Yield improvement of 61 bps YoY In line with new booking growth
FY15
YoY
2,532
2,415
4.8%
1,001
1,063
5.8%
1,531
1,353
13.2%
826
713
15.8%
2,358
2,066
14.1%
1,108
968
14.5%
1,250
1,099
13.7%
225
263
14.4%
Net Revenue
2,203 1,713 28.6%
Operating Expenses
(970) (798) 21.6%
Operating Income
1,233
Cost of Credit
(178) (197) 9.5%
PBT
1,055
719 46.8%
1,025
835
22.8%
PAT
842
554 52.1%
798
650
22.8%
916 34.7%
Manageable Increase driven largely by business volume growth
Improved CoC despite shorter WO cycle (210 DPD vs 270 DPD)
* 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 9M17
9M16
YoY
Net Interest Spread
10.39% 8.63% 176 bps
Cost to Income
44.01% 46.56% 254 bps
COC / Avg Rec.
1.70% 2.12% 42 bps
ROAA
10.14% 8.23% 191 bps
ROAE
24.63% 18.16% 647 bps
NPL*
1.11% 1.75% 64 bps
Debt / Equity
2.0x
1.7x 30 bps
Improvement in both yield and CoF
Improvement in CoC in line with improvement in NCL 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
1.8x
1.8x
Stable
* 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 (2012-9M17) 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
12,639
14,972
2012
2013
2014
2015
2016
9M16
9M17
• 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 10,251
6,993
7,669
Bookings +34%
6,000 4,000 2,000 0
Managed Receivables
Bookings
Revenue Growth (2012-9M17) 3,500 3,000 Rp bil
2,500
CAGR 20%
2,000 +24%
1,500 1,000
500 0
1,582
1,890
2,299
2,831
3,227
2,360
2,920
2012
2013
2014
2015
2016
9M16
9M17
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 900
10.0%
800
9.0%
CAGR 13%
700
Rp bil
9.2% 8.0%
8.0%
25.0%
6.0%
500
20.0%
7.1%
400
842
798
300
600 490
508
4.9%
554
15.0%
5.0%
1.0%
-
0.0%
3.9%
3.8%
17.5%
16.2%
13.9% 12.0%
11.5%
3.8%
3.4%
10.0% 5.0% 0.0%
2012 2013 2014 2015 2016 2017 Source: Company, OJK
•
15.1%
11.1%
2.0%
PAT growth in spite of slowing economy Continued efficient OPEX management in spite of aggressive expansion over the years
18.2%
16.8%
3.0%
100
•
18.8% 17.1%
5.0%
4.0%
650
23.0%
8.2% 7.8%
7.0%
600
200
9.3%
ROE vs Industry
* 2017 annualised based on Sep-17 results ROA calculated using PBT/Assets
• •
One of the highest ROA companies in the industry Consistently outperformed industry
2012 2013 2014 2015 2016 2017 Source: Company, OJK * 2017 annualised based on Sep-17 results ROE calculated using PAT/Equity
•
ROE improving over the years
Still one of the most profitable multifinance companies, with ROA and ROE much ahead of the industry 7
ASSET QUALITY UNDER CONTROL NPL Trend (2012-9M17)
Write-Offs (2012-9M17)
4.00%
2.50% 2.15%
3.50%
1.83%
2.00%
3.00%
1.54%
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%
1.52%
0.99% 1.05%
0.64%
0.50% 1.05%
1.38%
1.48%
1.33%
0.91%
1.11%
2012
2013
2014
2015
2016
9M17
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
9M17
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 (2012-9M17)
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
4,890
JF 5%
484
Bonds & MTN 33%
3,392 1,622
Borrowings IDR 34%
30%
20%
3,933
5,637
4,691
6,362
10%
Borrowings USD 28%
0% 2012 Total Equity
2013
2,862
3,363
Bank borrowings
• •
2014
2015
2016
9M17
3,567
4,019
4,255
4,890
Bonds & MTN
JF
Equity
Increasingly larger proportion of bonds issued, taking advantage of improved pricing climate for bonds since last year Decline in Joint Financing contribute to better funding cost
Total : Rp10,237 billion • •
Corporate rating upgrade by Fitch Ratings to AA-(idn) has improved BFI credit profile and CoF Adequate facilities in pipeline to support further business expansion
Capital structure more diversified, resulting in better management of borrowing cost and stable NIM 9
ASSET COMPOSITION Booking Composition (9M16 vs 9M17) 100% 90% 80%
Managed Receivables Composition (9M16 vs 9M17)
2% 11%
2% 13%
100%
11%
13%
80%
90%
70%
70%
60%
60%
50%
2% 13%
6%
8%
44% 47%
50%
54%
53%
40%
40%
30%
30%
20%
20%
10%
19%
18%
10%
0%
3%
2% 9M17
0%
9M16 Dealer New 4W Non Dealer 2W
2% 12%
Dealer Used 4W Total Leasing
Non Dealer 4W Property
24% 23% 12%
6%
9M16 Dealer New 4W Non Dealer 2W
9M17 Dealer Used 4W Total Leasing
Non Dealer 4W Property
Continuous effort to shift the business towards higher yield segments
10
DISTRIBUTION NETWORK (AS AT SEP-17) Business Distribution and Branch Network
19%
20%
9M16
9M17
Kalimantan 31 outlets
↑32%
Sumatera 60 outlets 19%
9%
↑34% 13%
11%
9M16
9M17
51%
55%
↑37% 9M16
↑23%
19%
17%
15%
9M16
9M17
Sulawesi and East 60 outlets
9M17
Java and Bali 170 outlets
Total 321 Outlets
53%
Denotes % Managed Receivables by Region, 1H17 vs 1H16
YoY Booking growth
Denotes % Outlets by Region
Current expansion focused on Java 11
