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 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 or 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 of 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. > 2 /35

AEON Group AEON Co, LTD. (Pure Holding Company) International - Retail General Merchandise Shopping Center Drug store & Pharmacy Store Development 44.86% Service & Specialty Shared Function Supermarket AEON Financial Service Store Companies International AFS Corporation AEON CHINA AEON ASEAN ACS Capital AEON ACS ASIA ACS Malaysia 35.12% 19.20% (Thailand) (Hong Kong) AEON Thana Sinsap (Thailand) 100% 100% 100% 100% 50% 50% 20% AEON Insurance ACS Servicing AEON Microfinance Aeon Leasing Service AEON Specialized Bank ACS Trading Service (Thailand) (Thailand) (Myanmar) (Lao) (Cambodia) Vietnam > 3 /35

Economic Outlook The growth rate compared to previous year (%) Private Consumption Index and Components GDP Exports (USD) Private Consumption Private Consumption Index Non-durables Index Semi-durables Index Durables Index 9.8 Services Index 180.00 Mar’19 7.7 170.00 160.00 4.6 4.6 4.1 3.9 3.3 150.00 3.0 3.1 3.0 2.8 2.1 140.00 130.00 0.1 120.00 110.00 100.00 -3.6 90.00 -5.6 80.00 1Q19 2016 2017 2018 2015 Source: Bank of Thailand (BOT) > 4 /35

Credit Card Overview 1Q19 1Q19 Thai Consumer Debt Outstanding Thai Consumer Debt Outstanding Credit card debt Housing loan Regulations Governing Credit Cards Regulations Governing Credit Cards Auto loan Personal loan Effective on September 1, 2017 Monthly income Credit limit Interest rate Old Not less than THB Not more than 20% regulations 15,000 5-times income Not more than 1.5-times 18% THB 30,000 monthly income New THB 3-times monthly 18% regulations 30,000-50,000 income Over 5-times monthly 18% THB 50,000 income Source: BOT, Krungsri Research Note: Loans outstanding at commercial banks > 5 /35

Thai Credit Card Players and Market Share Banks Non-banks Key players Domestic commercial banks Foreign banks Domestic players Foreign players Market Share (1Q2019) Market Share (1Q2019) Credit Card Personal Loan (million accounts, %) (billion baht, %) (million accounts, %) (billion baht, %) Banks 2.7 M (20%) Non-banks Non-banks Non-banks Banks Banks 153.9 B 252 B Banks 11.7 M 10.8 M 240 B (40%) (51%) 232.8 B (52%) (48%) (49%) Non-banks (60%) 11.1 M (80%) Source: BOT, Krungsri Research > 6 /35

Shareholder Structure AEONTS Shareholder Structure as of May 31, 2019 9% 1Q18 2Q18 3Q18 4Q18 1Q19 11% No. of 3,568 3,808 4,206 4,324 3,961 63% 17% shareholders Market Cap 39,500 45,000 47,250 44,875 51,500 (MB) AEON Group Thai Institution Thai Individual Foreign Source: TSD > 7 /35

Business Structure % of Trading Volume % of Trading Volume % of Trading Volume % of Total Revenue % of Total Revenue % of Total Revenue Credit Card Credit Card Hire Purchase Hire Purchase Hire Purchase Personal Loan Personal Loan Personal Loan (Motorcycle & Second hand car) Purpose Loan Purpose Loan Purpose Loan Other Other Other (Mobile, Electric appliances, (Mobile, Electric appliances, (Mobile, Electric appliances, Furniture, Gold and etc.) Furniture, Gold and etc.) Furniture, Gold and etc.) * Trading Volume = Spending amount Source: AEONTS 1Q2019 > 8 /35

Key Highlights 1Q FY19 (ended May 31, 2019) Trading Volume Trading Volume Revenue Revenue Net Profit Net Profit +10% YoY +10% YoY +10% YoY +10% YoY +6% YoY +6% YoY - Core business revenues grew 8% y-y - Bad debt recovery continue to increase by NOTE 38% y-y - Oversea business’s revenue grew 77% y-y NPL ROE Accounts Receivable +3.3% QoQ 2.82% 21.3% > 9 /35

Total Sales 1Q 2Q 3Q 4Q 1Q Q-Q Y-Y (Unit: Million Baht) Ended May’18 Ended Aug’18 Ended Nov’18 Ended Feb’18 Ended May’19 Credit Card 16,620 16,345 16,534 16,919 17,701 5% 7% Hire Purchase 447 476 661 788 975 24% 118% Loan 7,472 8,292 8,013 8,025 8,583 7% 15% > 10 /35

Consolidated Profit & Loss Statements 1Q 1Q 2Q 3Q 4Q (Unit: Million Baht) Q-Q Y-Y May’19 May’18 Aug’18 Nov’18 Feb’19 Total Sales 26,266 26,241 26,934 28,285 5% 10% 25,703 Total Revenues 5,016 5,093 5,225 5,306 5,494 4% 10% Total Expenses 3,847 4,008 4,091 4,268 4,221 -1% 10% - Operating and 2,088 2,198 2,146 2,318 2,283 -2% 9% admin expenses - Bad debt and 1,254 1,407 1,418 1,395 -2% 16% 1,205 doubtful accounts - Funding cost 552 554 538 532 544 2% -1% Operating Income 1,170 1,088 1,136 1,040 1,272 22% 9% Net Profit 862 901 817 987 21% 6% 928 EPS (Baht) 3.71 3.45 3.60 3.27 3.95 21% 6% > 11 /35

AEONTS’s Performance (Million Baht) (Million Baht) 22,000 4,000 20,000 3,500 18,000 3,000 16,000 14,000 2,500 12,000 2,000 10,000 1,500 8,000 6,000 1,000 4,000 500 2,000 0 0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Revenues (LHS) Net Profit (RHS) > 12 /35

AEONTS’s Performance (Million Baht) (%) 90,000 12 80,000 10 70,000 8 60,000 6 50,000 4 40,000 2 30,000 0 20,000 -2 10,000 0 -4 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 1Q19 Accounts Receivable (LHS) NPL (RHS) GDP (RHS) > 13 /35

AEONTS Net Interest Margin Manageable Policy under Economic Fluctuations (%) (%) 7 26 23.58 6 22 5 18 4 14 3 10 2 6 1 2 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 1Q2019 -1 -2 AEONTS's NIM (RHS) AEONTS's Interest Expenses (RHS) -2 -6 Policy Rate (LHS) Headline Inflation (LHS) AEONTS's Yield (RHS) GDP > 14 /35

Consolidated Balance Sheet (Unit: Million Baht) 2018 1Q2019 %Change Ended Feb’19 Ended May’19 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% > 15 /35

AEONTS Average Funding Cost Interest rate Trend ( 2009-1Q19 ) 4Q18 1Q19 AVG Funding Cost 3.07% 3.04% 6.00% LT Funding Portion 75% 68% AVG TTM 2.31 yrs 2.23 yrs 5.00% 4.00% 3.04% 3.00% 1.75% 2.00% 1.00% 0.00% Policy Rate AEONTS Avg Funding Cost > 16 /35

Bad Debt Provision 2016 2017 2018 1Q2019 As of 29 Feb 17 As of 28 Feb 18 As of 28 Feb 19 As of 31 May 19 O/S (MB) 28,711 34,588 36,623 37,067 D3Up 2.43% 2.68% Credit Card 2.19% 2.83% Allowance 2.97% 2.99% 3.14% 2.78% O/S (MB) 35,827 43,590 45,446 39,796 D3Up 2.92% 2.86% Personal Loan 2.45% 2.84% Allowance 3.77% 3.96% 4.01% 3.53% O/S (MB) 1,444 2,118 2,611 1,266 D3Up 3.52% 2.67% Hire Purchase 3.54% 2.58% Allowance 3.70% 2.55% 2.72% 3.55% O/S (MB) 66,128 82,512 85,252 75,823 D3Up 2.71% 2.77% 2.82% Total 2.35% Allowance 3.42% 3.49% 3.59% 3.18% 126% 126% 127% Coverage ratio 136% Note: O/S (Outstanding at the end of period), D3UP (Delinquent 3 months up) > 17 /35

Asset Quality (Quarterly Base) Million Baht Account Receivable % Net credit costs (Quarterly) 88,000 8.0% 85,252 86,000 7.0% 7.0% 84,000 82,512 6.1% 82,000 81,383 5.8% 5.7% 5.7% 6.0% 5.4% 79,632 80,000 5.7% 5.6% 78,000 5.5% 5.4% 77,210 5.0% 75,824 76,000 75,436 74,000 4.0% 72,000 70,745 3.0% 70,000 68,000 2.0% 66,128 65,844 66,000 64,000 1.0% 62,000 60,000 0.0% Feb'17 May'17 Aug'17 Nov'17 Feb'18 May'18 Aug'18 Nov'18 Feb'19 May'19 > 18 /35

Financial Indicators FY2018 1Q2019 Ended Feb’19 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 > 19 /35