PT BTPN Syariah Tbk.: Serving the unbanked segment, profitably - PowerPoint PPT Presentation

PT BTPN Syariah Tbk.: Serving the unbanked segment, profitably Performance as of 1H’2019

BTPN Syariah : Focus on serving productive underprivileged women Funding Financing 5 years Service financial Excellence package 4 key behaviours 4 key behaviors A more Courage Courage meaningful life Discipline Discipline Hard work Hard work Solidarity Sustainable Optimum Excellent #bankir Membership Return Performance pemberdaya system Distribution Network: # of branches: 66 (inc. 12 funding branches) # of wisma : ~1.800 1

BTPN Syariah Overview Our journey 1H’19 Performance • Established in 2010 as BTPN Sharia Unit; Customers Coverage massive roll-out in 2011 Serving  5.0 mn  200k communities, • Spin-off as PT BTPN Syariah on 14 July 2014 customers, in  2,600 sub-districts  3.6 mn active • Listed as PT BTPN Syariah Tbk on 8 May 2018 IPO price: 975, market price 52w range 1,580 to 3,450 Assets NPF ROE ROA • Today: Spread across 23 provinces, with 11,545 13.9 trillion employees (~90% female and ~45% high school 1.3% 29.8% 12.8% graduates) Serving Sumatera, Java, NT, Kalimantan and Sulawesi Rating Awards Cambridge IFA - Global Good Banda Aceh Kalimantan AA+ (idn) Fitch Governance Award for Financial Medan (Stable Outlook) Inclusion and Customer Care, Sulawesi Pekanbaru Samarinda 11 other awards in 1H’19 Pontianak Jambi Palangkaraya Padang Palembang Kendari Sumatera Banjarmasin Lampung Semarang Makasar Jakarta Denpasar Bandung Yogya Nusa Tenggara Surabaya Java Mataram Kupang 2

Contents Target market Unique value proposition Performance track record Going forward 3

23 million productive poor women in Indonesia Target market Our customers Self-employed Their work Large / Medium Enterprises SME Sell goods Produce Raise livestock Micro Their needs Productive Poor  Daily expenditure < $2  45 mn in Indonesia, of which 23 mn female  78% reside in Java & Sumatera Daily basic Education Improve needs for children living conditions Source: Statistics Bureau, team analysis 4

Contents Target market Unique value proposition Performance track record Going forward 5

Unique Value Proposition  Primarily for productive purposes Free Daya Programs:  Program in one package:  Daya Sehat Sejahtera  Loan: 25 bi-weekly installments (Health & Wellness)  Insurance: free life insurance  Daya Tumbuh Usaha  Saving: no monthly fee or minimum (Entrepreneurial Capacity balance requirement Building) 5 years  5 cycles financing programs  Daya Tumbuh Komunitas financial  Max 100% limit increase (Community Empowerment) package after completion of each cycle 4 key behaviours  Loans for housing renovation/ Courage education in Cycles 3-5 Discipline Hard work Our people as: Solidarity  Groups of 5, selected by group  the role model of members  Honesty membership  Bi-weekly formal meeting our people  Politeness system  Mandatory saving  Discipline  Shared responsibility  Daya facilitators 6

Contents Target market Unique value proposition Performance track record Going forward 7

Management team and shareholder’s composition Board of Directors Board of Directors Ratih M. Gatot A. Mulia Salim Arief Ismail Taras Siregar Rachmawaty Prasetyo Vice-President Compliance and Business 1 Director President Director Business 2 Director Director Risk Director 24 years in banking, 26 years in banking, 21 years in banking, 27 years in banking, 21 years in banking, 13 years of experience 19 years of experience in 19 years of experience in 21 years of experience in 19 years of experience in developing business infrastructure and risk management consumer risk business and operations models for mass market operations   Finance, business Operation &    Retail risk management Consumer risk (HSBC, Business,Human capital planning, business infrastructure (BTPN, (BTPN, Danamon, ABN Amro, Danamon, & operation (BSPD, (BTPN, Danamon, Danamon, Citibank, Citibank) GE, Citibank) Permata, Universal, Universal) Universal) Asuransi Astra Buana)   MBA, Tulane Engineering, Institut   MBA, Melbourne Engineering,  University, USA Teknologi Bandung Engineering, Institut Business School Universitas Indonesia Teknologi Bandung Shareholder composition Board of Commissioners Sharia Supervisory Board (“DPS”) Kemal Stamboel H. Ikhwan Abidin, MA President Commissioner Head of DPS   M. Sc., Hult International, USA M. Sc., Islamic Economics, Pakistan   Managing Partner PwC (1982 – 2002) Member of Sharia Board Indonesia  Secretary General – Foreign Bank Association of Indonesia  H. Muhammad Faiz, MA, Member of NU, As of 30 June 2019  Mahdi Syahbuddin , Operation & HC professional M.Sc., University of Cairo. of 31 years  Maya Kartika , HC professional of 28 years  Dewie Pelitawati , Legal and compliance PT Bank Tabungan Pensiunan Nasional Tbk. professional of 33 years Public 8

Proven execution capability as reflected in transformational growth Centers Customers Assets 13,942 IDR billion ~ 3,600,000 ~ 200,000  134x  97x  85x 2,361 37,015 104* 2011 2011 1H‘19 2011 1H’19 1H’19 Financing Funding Equity IDR billion 8,884 IDR billion IDR billion 8,544 4,601  138x  81x  6 x 824** 110 62 2011 1H’19 2011 1H’19 2014 1H’19 * Adjusted assets (without legacy portfolio) **after spin-off as a Bank 9

Financing & Customer deposits growth Financing Customers by Cycle (Jun’19) IDR billion YoY Cycle 4 & 24% above 26% Cycle 1 32% 8,544 Cycle 3 7,277 6,873 17% 6,053 5,770 Cycle 2 25% Jun' 17 Dec'17 Jun' 18 Dec'18 Jun'19 Commercial Banks May’19 YoY: 11.1% Number of Customers: ~ 3.6 mio Customer deposits Cost of funds IDR billion YoY % 27% 8,884 7,612 7,021 6,546 5,959 80% 6.3% 6.3% 77% 6.2% 6.0% 6.0% 79% 5.8% 79% 5.7% 80% 5.5% 5.1% 5.1% 20% 23% 21% 21% 20% Mar '17 Jun '17 Sep '17 Dec '17 Mar '18 Jun'18 Sep'18 Dec '18 Mar '19 Jun '19 Jun'17 Dec'17 Jun'18 Dec'18 Jun'19 CASA TD Commercial Banks May’19 YoY: 6.3% 10

Financial scorecard – maintain strong performance Balance sheet, IDR billion Income statement, IDR billion Jun’18 Dec’18 Mar’19 Jun’19 ∆ QoQ ∆YoY 1H’18 FY’18 1Q’19 2Q’19 1H’19 ∆ QoQ ∆YoY Cash & Liquid 3,487 4,404 4,661 5,003 7% 43% Margin income 1,623 3,447 973 1,077 2,049 11% 26% asset Financing 6,873 7,277 7,507 8,544 14% 24% Margin expense 171 368 115 127 243 10% 42% (gross) Allowance for (181) (216) (235) (255) 9% 41% losses Operating income 1,452 3,080 857 949 1,807 11% 24% Deposits / 7,021 7,612 7,817 8,884 14% 27% Operating funding 729 1,525 406 448 854 10% 17% expense Total Liabilities 7,283 8,042 8,255 9,341 13% 28% Loan loss 125 265 65 76 142 17% 14% provision Equity 3,444 3,997 4,283 4,601 7% 34% Profit After Tax 449 965 288 321 610 11% 36% Total Assets 10,727 12,039 12,538 13,942 11% 30% Key ratios (%) CAR Cost to Income RoA RoE H1’18 FY’18 1Q’19 2Q’19 H1’19 H1’18 FY’18 1Q’19 2Q’19 H1’19 H1’18 FY’18 1Q’19 2Q’19 H1’19 H1’18 FY’18 1Q’19 2Q’19 H1’19 29.3 47 47 47 12.7 33.9 30.8 29.8 36.9 40.9 39.3 39.4 39.4 50 49 12.5 12.4 12.7 12.8 28.7 Loss provision coverage NPF Gross/Net CoC H1’18 FY’18 1Q’19 2Q’19 H1’19 1H’18 FY’18 1Q’18 2Q’18 1H’19 H1’18 FY’18 1Q’19 2Q’18 H1’19 1.39 1.65 1.38 1.34 1.34 214 223 223 4.0 3.7 158 227 4.0 3.6 3.7 0.01 0.02 0.17 0.14 0.14 * loss provision coverage 4Q’18, 1Q’19 and 2Q’19 excl. recent disasters (Sunda Strait & Lombok) 166%, 159% and 169% respectivelly 11

Manageable portfolio risk and improving quality Unique credit risk culture Unique portfolio mix • Prospective customer has to Ticket Portfolio Maturity Financing prove their commitment : Distribution Composition* Size* Composition* – 5 days membership basic 86% 74% training 3.6 mn 57% – After financing being customer in 26% 43% 200 K disbursed, strong 14% Communities monitoring mechanism ≤ 5mn > 5mn Repeated New to 1 year 1- 2 year through mandatory regular Cust Bank meeting *based on outstanding • Joint responsibility as the NPF Trends primary building block – Each member could flag 1.74% 2.00% 3.00% 1.70% 1.67% 1.66% 1.67% 1.65% 1.53% 1.56% any defect regarding 1.34% 1.39% 1.38% another member business 1.00% to prevent further deterioration in the 0.20% 0.20% 0.17% 0.14% 0.05% 0.01% 0.01% 0.02% 0.01% 0.03% 0.02% payment 0.00% 0.00% Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 NPF-Net NPF-Gross 12

Good Risk & Compliance : 1. Risk Based Bank Rating 2 (Good)* 2 (Good)* 2. Good Corporate Governance : : Upgrade to AA+ (idn ) “Stable” 3. Ratings (based on Fitch as per Feb 19) : CAR 39.4% 4. Capital *based on self assessment, as of Q2 2019 13