Corporate Review I – 2016

Jakarta, 27 May 2016

PT Federal International Finance

Jakarta
 Point of Discussions
Kepada Yth.
 
Berikut kami sampaikan jadwal review FIFGROUP untuk performance as of April 2016
 
Hari/ Tanggal      : Selasa, 17 Mei 2016
Waktu                   : 13.30 – 15.00
Tempat                : Ruang Meeting Direksi Lt.6 Gedung A AI-HO
Agenda:
1. Performance Highlight as of April 2016 (Finance, Marketing, Funding & Risk)
2. Performance Prediction as of May 2016
3. Corporate Review Outlook I Material
 Progress of company strategy achievement YTD April 2016
 Strategic issue (inc. Top risk), impact and action 2016
 Financial Report OL1 2016 (based on performance YTD April 2016)
4. Follow Up Last Review Notes
5. Excomm Material à Tax Exposure
 
Atas perhatiannya, kami ucapkan terima kasih.
 
Best regards,
Stefanus Suryadi
Corp. Performance & Reward Management Department
PT Astra International Tbk - Head Office
JL Gaya Motor Raya No.8, Sunter II - Jakarta 14330
Phone : 021-6522555 Ext.276
 Point of Discussions
No Agenda

1 Corporate Review I 2016

a. Progress of Company Strategy : Achievement Ytd April 2016
b. Strategic Issues (incl Top Risk), Impact & Action 2016
c. Financial Highlight OL 1 2016 (Based on Actual Performance YTD April 2016)

Design nya dibuat lebih baik

Corporate Review I 2016

PT Federal International Finance

Jakarta
Progress of Company Strategy 2016

PT Federal International Finance

Jakarta
 Grow to Great,
Achieve New Records!
Bigger asset, excellent process & control and higher productivity

1 Strong Honda motorcycle market share to achieve MSCP 50%

• Strengthen strategic partnership for sustainable growth through : Synergy Honda value chain, Dealer Planning
Management (DPM) & Dealer program customization

2 Leverage asset growth in other line of business

(SPEKTRA, UCMC & Sharia Financing)
Build up new business opportunities based on utilization of
3
customer database & potency in middle low segment
Micro Financing :
• Productive purpose financing : investment financing & working capital financing (focus in trading, agriculture & processing
industry)

Prudent acquisition & strengthen integrated risk management

4
& internal control supported by technology based process

5 Leverage value internalization for higher employee productivity

 Progress Of Company Strategy Ytd. April 2016
No. Strategy Priority Implementation Plans/Strategy Target Achievement
1 Maintain market share in Strengthen integrated value chain MSCP* MSCP*
Honda value chain program 45.00% 49.74%
 
MS to HSO MS to HSO
Credit Sales Credit Sales
70.00% 75.49%

RO Program RO RO
13.82% 32.20%
2 Pursue a well AR quality Improve acquisition process OD>60 Day OD>60 Day
portfolio 2.50% 1.43%
Improve collection process
3 Balancing profitability in Leverage NSA per LOB Unit Finance Unit Finance
each line of business 1. UMC Financing 265,325 unit 333,566 unit
2. Spektra Amount Finance Amount Finance
883.69 bio 966.247 bio

4 Development of new & Build network & relationship Unit Finance Unit Finance
used car in Non ACC & 5,175 unit 2,980 unit
TAFS Area
 Progress Of Company Strategy Ytd. April 2016
No. Strategy Priority Implementation Plans/Strategy Target Achievement

1 Strong Honda motorcycle Strengthen strategic partnership for MSCP* MSCP*

market share to achieve MSCP sustainable growth through synergy Honda 45.00% 49.74%
50% value chain  
MS to HSO MS to HSO
Credit Sales Credit Sales
70.00% 75.49%

Dealer Planning Management (DPM) & RO RO

Dealer program customization 13.82% 32.20%

2 Leverage asset growth in other Leverage NSA per LOB Amount Finance Amount Finance
line of business 1. Spektra 883.69 bio 966.247 bio

2. UCMC Unit Finance Unit Finance

3. Sharia Financing Amount Finance Amount Finance

3 Build up new business Micro Financing : Amount Finance

opportunities based on • Productive purpose financing :
utilization of investment financing & working capital
customer database & potency financing (focus in trading, agriculture &
in middle low segment processing industry)

4 Prudent acquisition & Improve acquisition process OD>60 Day OD>60 Day
strengthen integrated risk 2.50% 1.43%
management
& internal control supported by
technology based process
Improve collection process
Strategic Issues, Impact & Action 2016

PT Federal International Finance

Jakarta
 Strategic Issues, Impact & Action 2016
Area Strategic Issue Potential Impact Action Plan

Lower Down Payment (SE • Potential increase risk • Focusing area & dealer : Java vs Non Java,
OJK No. Big 5 MD, Big Group Dealer
Ini kan list issue tahun 2015, ganti dengan
19-20/SEOJK.05/2015) : • Risk base marketing program through price
Marketing

• 2 Wheelers Conventional : and refund, differentiation & segmented

15% promo
• 2 Wheelers Sharia : 10% issue 2016 : • Monitoring & evaluate DP Policy :
situational analysis before vs after DP

Marketing : TAC
policy applied

Operation
• Risk of increasing bad
account
• Economy slowdown
: bisa
write off jadi
asset
masih
• Potential increase on
and repossess relevan yang
• Aggressive collection activities
• Develop
quality
strategy for better acquisition
Operation

2015 ini
• Customer ability to pay • Recovery on bad accounts
tend to decrease,
particularly in commodity
area

Berikut data terakhir CR3 yang akan di update

 Financial Highlight OL 1 2016
(Based on Actual Performance YTD April 2016)
OL1 keluar tanggal 13 May, nanti segera di
update

PT Federal International Finance

Jakarta
 Projection – Outlook I 2016
Marketing Highlight
In Millions
Full Year 2014 DESCRIPTION   YTD Oct 2015 Full Year 2015 Full Year 2016 Full Year 2017 Full Year 2018
Actual     Actual OL III MB MB MB
  Marketing Highlight            
3,135,291 Honda Credit Sales unit 2,413,681 2,872,950 2,873,475 3,070,200 3,360,450
4,841,961 Honda Sales unit 3,688,917 4,475,000 4,455,000 4,760,000 5,210,000
              
  Unit Financed:            
1,462,234 - NMC unit 1,177,666 1,388,889 1,379,361 1,503,089 1,657,366
77,777 - UMC Reguler unit 65,676 78,076 48,000 49,900 51,397
698,546 - UMC Financing unit 700,855 815,768 900,000 1,000,000 1,200,000
              
2,238,557 Total Unit Financed   1,944,197 2,282,733 2,327,361 2,552,989 2,908,763
              
46.6% NMC vs Honda Credit Sales % 48.8% 48.3% 48.0% 49.0% 49.3%
30.2% NMC vs Honda Sales % 31.9% 31.0% 31.0% 31.6% 31.8%
              
  Amount Financed:            
18,419,408 - NMC IDR 15,928,801 18,780,312 19,035,183 21,043,241 23,534,600
721,072 - UMC Reguler IDR 644,913 756,513 436,800 459,080 477,992
4,181,718 - UMC Financing IDR 4,262,722 4,952,199 5,220,000 5,800,000 6,960,000
              
23,322,198 Total Amount Financed   20,836,436 24,489,023 24,691,983 27,302,321 30,972,592
              
  Other Product :            
841,351 - MPF unit 663,793 826,119 863,558 931,437 1,012,085
2,847,655 - MPF IDR 2,311,501 2,852,501 3,000,000 3,274,000 3,601,000
6,830 - Car unit 7,782 9,257 18,349 15,557 20,224
565,673 - Car IDR 554,187 657,743 1,222,513 1,086,463 1,412,336
              
  Total All Product            
3,086,738 Total Unit Financed unit 2,615,772 3,118,108 3,209,268 3,499,982 3,941,072
26,735,526 Total Amount Financed IDR 23,702,125 27,999,268 28,914,496 31,662,784 35,985,928
              
  WAR:            
29.3% - NMC % 29.3% 29.3% 29.0% 29.0% 29.0%
33.2% - UMC Reguler % 34.3% 34.2% 34.0% 34.0% 34.0%
41.1% - UMC Financing % 40.8% 40.4% 39.0% 39.0% 39.0%
55.4% - MPF % 59.9% 59.2% 57.0% 57.0% 57.0%
17.0% - Car % 18.9% 18.5% 18.5% 17.2% 17.2%
33.7% Average WAR % 34.3% 34.2% 33.3% 33.4% 33.3%
              
9.8% COF % 9.7% 10.5% 11.0% 11.0% 11.0%
23.9% Spread % 24.6% 23.8% 22.3% 22.4% 22.3%
              
 Projection – Outlook I 2016
Financial Highlight
In Millions
FY 2014 DESCRIPTION   YTD Oct 2015 FY 2015 FY 2016 FY 2017 FY 2018
Actual     Actual OL III MB MB MB
25,435,645 NSA - Own Risk IDR 27,506,937 27,801,497 29,334,929 32,278,181 35,282,094
30,604,429 NSA - ALL IDR 33,019,169 33,296,742 35,312,535 38,787,795 42,338,877
               
19,428,605 Total Borrowing IDR 21,489,110 21,310,510 22,151,513 24,235,418 26,276,416
5,046,797 Equity IDR 5,985,628 6,270,658 6,894,149 7,705,319 8,554,091
26,317,343 Total Assets IDR 29,397,834 29,504,263 30,968,758 33,863,833 36,753,603
              
6,279,958 Consumer financing - net IDR 6,036,200 7,433,176 7,929,332 8,620,744 9,300,893
1,015,505 Administration IDR 865,011 1,055,935 1,221,100 1,352,806 1,493,828
7,295,463 Total operating revenue IDR 6,901,211 8,489,112 9,150,432 9,973,550 10,794,721
1,633,475 Financial Charges IDR 1,714,805 2,116,709 2,292,490 2,479,444 2,679,246
5,661,987 Gross Profit IDR 5,186,406 6,372,402 6,857,942 7,494,106 8,115,474
3,062,674 Total Expenses   2,772,406 3,397,120 3,744,336 4,128,407 4,549,651
2,599,314 Operating Profit IDR 2,413,999 2,975,282 3,113,605 3,365,700 3,565,823
211,512 Interest & Penalty Income IDR 159,558 192,380 188,985 177,064 177,498
(804,997) Allowance for doubtful accounts IDR (625,232) (756,208) (859,998) (1,007,651) (1,090,787)
(368,903) Loss on repossessed asset IDR (397,165) (499,907) (540,354) (569,130) (626,409)
159,691 Other Income IDR 117,316 136,967 147,192 144,051 167,814
1,796,617 NPBT IDR 1,668,475 2,048,515 2,049,431 2,110,034 2,193,939
444,016 Income Tax IDR 417,962 512,972 512,358 527,509 548,485
1,352,601 NPAT IDR 1,250,513 1,535,543 1,537,073 1,582,526 1,645,454
              
75% Dividend Payout Ratio % 50% 50% 50% 50% 50%
9.62% Total Expense % to ASA - rolling avg % 9.30% 9.32% 9.59% 9.82% 9.99%
26.80% ROE - Annualized % 25.07% 24.49% 22.30% 20.54% 19.24%
5.14% ROA % 5.10% 5.20% 4.96% 4.67% 4.48%
3.8 DER   3.6 3.4 3.2 3.1 3.1
12,440 USD/IDR IDR 13,639 14,100 14,500 15,000 15,000
 Projection – Outlook I 2016
Losses Highlight
In Millions
FY 2014 DESCRIPTION   YTD Oct 2015 FY 2015 FY 2016 FY 2017 FY 2018
Actual     Actual OL III MB MB MB
6.2% Provision % 6.0% 5.9% 5.9% 5.9% 5.9%
362,359 Loss on Repo (LOR) IDR 383,895 483,187 540,007 564,083 622,961
605,001 Write off IDR 580,524 701,589 768,463 837,138 915,280
(144,454) Recovery Income IDR (111,490) (131,142) (147,192) (144,051) (167,814)
822,906 Net Losses IDR 852,929 1,053,634 1,161,277 1,257,170 1,370,427
               
3.6% Net Losses FIF / ASA-1 + ARA % 3.9% 4.0% 4.0% 4.0% 4.0%
25,518,037 NSA Own Risk (NSA -1) + RA IDR 27,622,139 27,922,773 29,457,149 32,413,712 35,426,729
               
PROVISION vs PROJECTED Net
  Losses to NSA-1 & RA            
1,267,226 Projected Net Losses (YTD) IDR 1,315,808 1,326,332 1,399,215 1,539,651 1,682,770
6.2% Provision / NSA-1 & RA % 6.0% 5.9% 5.9% 5.9% 5.9%
5.0% % Projected Net Losses / NSA-1 & RA % 4.8% 4.8% 4.8% 4.8% 4.8%
1.25% Surplus (deficit) of provision % 1.2% 1.2% 1.2% 1.2% 1.2%