PT BFI FINANCE INDONESIA: 1Q16 RESULTS · PT BFI FINANCE INDONESIA: 1Q16 RESULTS Disclaimer: The information contained in this presentation is strictly confidential for PT BFI Finance

PT BFI FINANCE INDONESIA: 1Q16 RESULTS

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.

April 2016

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

1Q16 KEY UPDATES

2

GROWTH

• Receivables and Revenue growth, amidst economic challenges

• Total Receivables grew 18% whilst Managed Receivables (incl off balance sheet) grew 3% driven longer tenor loans

• Net Revenue growth of 9% driven largely by strong Consumer Financing business, higher yields and increase in Receivables book

• 3 new outlets

PROFITABILITY

• 1Q16 PAT 13% yoy to Rp160 billion, with ability to maintain yields, higher efficiency in operations, and strong receivables growth

ASSET QUALITY

• NPL is 1.56%

1Q16 KEY UPDATES

3

FUND RAISING UPDATES

• Shelf issuance of Bond II Phase III 2016 (tenor 1-3 years) of Rp1 trillion in February 2016

A/EGM UPDATES (25 April 2016) • Approval for final dividend from FY15 profits of Rp70/share to be paid in May

2016, giving total dividends of Rp208/share or 48.8% payout on FY15 profits (Rp138/share was paid in December 2015)

• Approval to promote Mr Sigit Gunawan to Risk Director

BALANCE SHEET HIGHLIGHTS

4

In Rp bil (unless otherwise stated)

1Q16 1Q15 YoY FY15 FY14 YoY

New Bookings 2,337 2,711 13.8% 10,058 9,295 8.2%

Managed Receivables^ 12,200 11,801 3.4% 12,229 11,220 9.0%

Total Receivables 10,501 8,872 18.4% 10,078 8,720 15.6%

Total Assets 11,478 10,265 11.8% 11,770 9,683 21.6%

Total Borrowings^ 8,669 9,098 4.7% 9,457 8,039 17.6%

Total Equity 4,008 3,746 7.0% 4,019 3,567 12.7%

• Strong Receivables growth from previous FY Bookings, and longer tenors

^ Includes channeling and joint financing transactions


Continued slowdown in New 4W and HE businesses resulting in slower bookings and receivables growth

• Continued slow down in New 4W and Heavy Equipment financing

PROFIT & LOSS HIGHLIGHTS

5

In Rp bil (unless otherwise stated)


Interest Income 617 565 9.2% 2,415 1,989 21.4%

Financing Cost 262 239 9.7% 1,063 822 29.3%

Net Interest Income 354 326 8.8% 1,353 1,167 15.9%

Fee Based Income 113 87 29.7% 383 326 17.6%

Net Revenue 544 497 9.4% 2,066 1,754 17.8%

Operating Expenses 259 234 10.4% 968 802 20.7%

Operating Income 285 263 8.5% 1,099 953 15.3%

Cost of Credit 68 79 14.6% 263 202 30.0%

PBT 217 184 18.5% 835 751 11.3%

PAT 160 147 8.5% 650 600 8.4%

• Strong Non Dealer Financing income

• Yield improvement of 32 bps YoY

• Higher efficiencies in operations resulted in slower Opex growth

• Includes tax provisions for tax assessment in prior FY

Continued improvements in portfolio yield and Net Interest Margins


• COF increase by 21 bps • Expect lower interest

rates for new borrowings

KEY RATIOS

6


Net Interest Margin 8.40% 8.29% 11 bps 8.20% 7.85% 35 bps

Cost to Income 47.55% 47.12% 43 bps 46.83% 45.84% 99 bps

COC / Avg Rec. 2.22% 2.76% 54 bps 2.17% 1.94% 23 bps

ROAA 7.42% 7.50% 8 bps 7.79% 8.35% 56 bps

NPL* 1.56% 1.61% 4 bps 1.33% 1.48% 15 bps

Debt / Equity 1.64x 1.51x 0.13x 1.63x 1.48x 0.15x

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

• Diversification of products resulting in higher yields and ability to maintain NIMs

• Continue to show manageable asset quality despite challenging economic conditions

Maintains stable NIM and NPL despite of industry headwind

5,487 7,373 9,570 11,220 12,229

5,742

6,993

8,652 9,295

10,058

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2011 2012 2013 2014 2015

Rp

bil

ABILITY TO BUILD A MORE ROBUST BALANCE SHEET

7

Bookings vs Receivables Growth (2011-1Q16)

Sustainable loan and revenue growth over the years – backed by better asset mix

Revenue Growth (2011-1Q16)

11,801

12,200

2,711 2,337

1Q15 1Q16

Bookings Managed Receivables

CAGR B: 15% R: 22% • Able to improve quality and

tenor of loans booked, resulting in consistently faster Receivables growth compared to Bookings

• Slower bookings in 1Q16 due to decrease in New 4W and Heavy Equipment financing

1,261 1,582 1,890 2,299 2,831

-

500

1,000

1,500

2,000

2,500

3,000

2011 2012 2013 2014 2015

Rp

bil

Revenue

• Consistently strong growth in Revenue as a result of robust balance sheet

• Shows ability to maximise income generation from assets 655 763

1Q15 1Q16

CAGR 22%


STABLE PROFITABILITY OVER THE YEARS

8

PAT Growth ROA Trend vs Industry Cost-to-Income*

425 490 509

600 650

-

100

200

300

400

500

600

700

2011 2012 2013 2014 2015

Rp

bil

9.3%

8.3%

6.8% 6.6%

6.0%

3.39% 3.71% 3.75%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

2011 2012 2013 2014 2015

43% 43% 46% 46% 47%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015

• 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

• Cost-to-income stable in spite of expansion

* G&A + Marketing Expense/Net Revenue * 2014 annualised based on Sep-14 results Source: Company, Infobank

Still one of the most profitable multifinance companies, with ROAs much ahead of the industry

CAGR 11%

ASSET QUALITY UNDER CONTROL

9

NPL Trend (2011-1Q16) Write-Offs (2011-1Q16)

0.66%

0.82% 0.89%

1.38%

1.83%

1.64%

0.43% 0.52%

0.64%

0.99%

1.38%

1.05%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2011 2012 2013 2014 2015 1Q16

Gross Write-Off % Net Write-Off %

• Increase in NPL from Heavy Equipment business • In spite of difficult economic and commodities sector conditions, managed to record lower write off than its peers

1.20% 1.05%

1.38% 1.48%

1.33% 1.56%

2.66%

2.18%

2.58%

3.46%

1.58%

3.75%

0.98% 0.85%

1.20% 1.22% 1.30% 1.28%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2011 2012 2013 2014 2015 1Q16

NPL % Leasing NPL% Consumer Financing NPL %

Despite NPL has improved, Higher Write-offs occurred due to economic conditions, especially in commodity related sectors

Equity

STRONG CAPITAL BASE

Cost of Funds (2011-1Q16)

10

41% 37% 33% 31% 30% 32%

40%

31% 31% 34%

42% 38%

8%

15% 14% 14%

12% 17%

12% 18% 22% 21%

16% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 1Q16

Equity Bank borrowings

Bonds & MTN Channelling & JF

• Increasingly more diversified funding sources, which has helped especially in the last year to mitigate increasing cost of borrowings from local banks

Source of Funding (2011-1Q16)

12.7%

11.3% 10.6%

11.2% 11.5% 11.5%

6.6% 5.8%

6.5%

7.8% 7.5% 7.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 2015 1Q16

BFIN Cost of Funds Average BI Rate

Capital structure more diversified, resulting in better management of borrowing cost and stable NIM

• Cost of fund is slightly increased in 2015, yet it is pass through to the new lending, hence no margin compression is arisen

2,366 2,862 3,363 3,567 4,019 4,008

ASSET COMPOSITION

11

Booking Composition (1Q15 vs 1Q16)

Managed Receivables Composition (1Q15 vs 1Q16)

15%

3%

17%

20%

48% 54%

9% 11%

7% 7% 4% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 1Q16

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Leasing - HETO Other

21% 16%

24% 24%

38% 41%

5% 6%

10% 9%

2% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q15 1Q16

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Leasing - HETO Other

Continuous effort to shift the business towards higher yield and lower ticket segments

Sumatera

55 outlets

20%

Greater Jakarta

30 outlets

20%

Sulawesi and East

55 outlets

Java and Bali

99 outlets

Total 270

Outlets

Kalimantan

31 outlets 12%

2015 DISTRIBUTION NETWORK

11%

12

Business Distribution and Branch Network

37%

Denotes % Outlets by Region

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

Documents

PT BFI FINANCE INDONESIA: 1Q16 RESULTS · PT BFI FINANCE INDONESIA: 1Q16 RESULTS Disclaimer: The information contained in this presentation is strictly confidential for PT BFI Finance