PT BFI FINANCE INDONESIA: 1H15 RESULTS

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August 2015

OPTIMIZE, GROW, LEAD

1H15 KEY UPDATES

2

GROWTH

• Consistently strong Bookings, Revenue growth, amidst subdued economic conditions

• Net Revenue growth of 19% driven largely by strong Non-Dealer business and higher yields (80 bps yoy)

• Five new outlets

PROFITABILITY

• 1H15 PAT 15% growth yoy, with ability to maintain NIM, higher efficiency in operations, and strong receivables growth

ASSET QUALITY

• NPL of 1.72%, 14 bps higher yoy triggered by the challenging macro conditions

1H15 KEY UPDATES

3

KEY FUND RAISING UPDATES

• Issuance of Rp1 trillion Obligasi Berkelanjutan II Tahap II Tahun 2015 (9.875-10.875% for 1-3 years tenor)

• USD50mm Term Loan from Qatar National Bank

• USD50mm Syndicated Loan from Emirates NBD

KEY A/EGM UPDATES (15 April 2015)

• Final Dividend from FY14 profits of Rp54/share paid on 15 May 2015 giving a final payout ratio 49.9%

• Dominic Picone and Sunata Tjiterosampurno appointed to BOC

• Approval to conduct Stock Buyback of up to 10% of total outstanding shares

KEY MANAGEMENT UPDATES

• New branch opening target scaled back to 10 outlets from initial target of 20

BALANCE SHEET HIGHLIGHTS

4

In Rp bil (unless otherwise stated)

1H15 1H14 YoY FY14 FY13 YoY

New Bookings 5,647 4,546 24.2% 9,295 8,652 7.4%

Managed Receivables^ 12,528 10,463 19.7% 11,220 9,570 17.2%

Total Receivables 9,511 7,908 20.2% 8,720 7,345 18.7%

Total Assets 10,740 8,990 19.5% 9,671 8,293 16.6%

Total Borrowings 6,562 5,006 31.1% 5,555 4,626 20.0%

Total Equity 3,823 3,523 8.5% 3,614 3,397 6.4%

• Higher gearing of 1.7x compared to 1.4x in 1H14

* All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations ^ Includes off balance sheet financing

Strong Bookings growth in spite of slower economy and weak automotive & heavy equipment sales

• Growth driven by Non-Dealer financing

• Overall increase slower due payment of dividends

PROFIT & LOSS HIGHLIGHTS

5

In Rp bil (unless otherwise stated)

1H15 1H14 YoY 2014 2013 YoY

Interest Income 1,165 942 23.7% 1,660 1,374 20.8%

Financing Cost 504 382 31.9% 503 423 19.0%

Net Interest Income 661 560 18.0% 1,157 951 21.6%

Fee Based & Other Income 350 288 21.5% 600 492 21.9%

Net Revenue 1,011 848 19.2% 1,756 1,443 21.7%

Operating Expenses 481 399 20.6% 804 661 21.7%

Operating Income 530 449 18.0% 952 783 21.7%

Cost of Credit 160 103 55.3% 204 115 77.1%

PBT 371 345 7.5% 748 667 12.1%

PAT 298 259 15.1% 597 509 17.4%

Comprehensive Income 297 259 14.7% 565 509 11.0%

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

• Strong Non-Dealer revenue

• Yield improvement of 80 bps YoY

• Higher efficiencies in operations resulted in slower Opex growth

• Higher Leasing NPLs and write-offs in commodities and certain regions

Higher yield resulting in strong Revenue growth, with efficient operational and cost management

KEY RATIOS

6

1H15 1H14 YoY 2014 2013 YoY

Net Interest Margin 8.2% 7.9% 0.3% 7.9% 7.9% 0.0%

Cost to Income 47.5% 47.1% 0.4% 45.8% 45.8% 0.0%

COC / Avg Rec. 2.7% 2.1% 0.6% 1.9% 1.4% 0.6%

NPL* 1.72% 1.58% 0.14% 1.5% 1.4% 0.1%

LLR / Receivables 1.4% 1.2% 0.2% 1.9% 1.4% 0.5%

Debt / Equity 1.6x 1.3x 0.3x 1.5x 1.4x 0.1x

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

• Resilient and able to pass through the increase interest

• Higher credit cost driven by several Leasing accounts

• Calculated based PD & LGD

• Compliance to IFRS No. 39 / PSAK No. 55

Maintains stable NIM and NPL despite of industry headwind

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

5,742

6,993

8,652 9,295

-

2,000

4,000

6,000

8,000

10,000

12,000

2011 2012 2013 2014

Rp

bil

ABILITY TO BUILD A MORE ROBUST BALANCE SHEET

7

Bookings vs Receivables Growth (2010-1H15)

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

Revenue Growth (2010-1H15)

10,463

12,528

4,546

5,647

1H14 1H15

Bookings Managed Receivables

CAGR B: 17% R: 27%

• Loan book shows improvement over the years – able to improve quality and tenor of loans booked, resulting in consistently faster Receivables growth compared to Bookings

• 1H15 strong Bookings growth yoy in spite of weak new car sales

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

-

500

1,000

1,500

2,000

2,500

2011 2012 2013 2014

Rp

bil

Revenue

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

• Improvement in yield by 80 bps yoy

• Shows ability to maximise income generation from assets

1,100 1,352

1H14 1H15

CAGR 22%

* Rounded to the nearest billion

24%

23%

STABLE PROFITABILITY OVER THE YEARS

8

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

425

490 509

597

259 298

-

100

200

300

400

500

600

2011 2012 2013 2014 1H14 1H15

Rp

bil

9.3%

8.3%

6.8% 6.6%

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

43% 43% 46% 46% 48%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2011 2012 2013 2014 1H15

• Consistent PAT growth • 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 generally stable in spite of expansion of distribution outlets and human capital to support business growth

* G&A + Marketing Expense/Net Revenue Source: Company, Infobank

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

CAGR 12%

ASSET QUALITY UNDER CONTROL

9

NPL Trend (2011-1H15) Write-Offs (2011-2014)

0.68%

0.82% 0.89%

1.38%

0.44% 0.53%

0.64%

1.00%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2011 2012 2013 2014

Gross Write-Off % Net Write-Off %

• Increased portfolio NPL driven by loans to commodities sector, mainly in Kalimantan

• Expect some deterioration in 2015 due to continued weak commodity sector

1.20% 1.05%

1.38% 1.48%

1.72%

2.66%

2.18%

2.58%

3.46%

3.76%

0.98% 0.85%

1.20% 1.22%

1.47%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

2011 2012 2013 2014 1H15

NPL % Leasing NPL% Consumer Financing NPL %

Higher NPLs and Write-offs due to economic conditions, especially in commodity related sectors

41% 37% 33% 31% 29%

40%

31% 31% 34% 38%

8%

15% 14% 14% 11%

12% 18% 22% 21% 22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 1H15

Equity Bank borrowings

Bonds & MTN Channelling & JF

STRONG CAPITAL BASE

Cost of Funds (2011-1H15)

10

• 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 (2011-1H15)

12.7%

11.3% 10.7%

11.2% 11.4%

6.6% 5.8%

6.5%

7.8% 7.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014 1H15

BFIN Cost of Funds Average BI Rate

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

• Favourable cost of funds trend compared to benchmark BI rate movement – able to maintain NIMs even in adverse market conditions

Total Equity

2,366 2,862 3,397 3,614 3,823

ASSET COMPOSITION

11

Booking Composition (1H14 vs 1H15)

Managed Receivables Composition (1H14 vs 1H15)

22% 21%

26% 23%

35% 40%

5% 5%

12% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H14 1H15 Dealer New 4W Dealer Used 4W Non Dealer 4W

Non Dealer 2W Leasing - HETO

16% 16%

19% 17%

47% 49%

8% 9%

9% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1H14 1H15 Dealer New 4W Dealer Used 4W Non Dealer 4W

Non Dealer 2W Leasing - HETO

• Continue to focus on Used 4W financing – to finance higher yield products in order to maintain portfolio yields

• Continue to reduce exposure to Heavy Equipment • Strong Non-Dealer growth testament to well

executed branch network expansion strategy

Sumatera

53 outlets

20%

Greater Jakarta

37 outlets

20%

Sulawesi and East

52 outlets

Java and Bali

92 outlets

Total 265

Outlets

Kalimantan

31 outlets 11%

STRONG FOOTPRINT OUTSIDE JAVA

14%

12

Business Distribution and Branch Network (Jun-2015)

35%

Denotes % Outlets by Region

Target another 5 branches for the rest of the year, in view of slowing economy

2013 2014

2013 2014

Denotes % Receivables by Region, yoy change

22% 19%

2013 2014

20% 18%

2013 2014

21% 22%

2013 2014

11% 12%

2013 2014

26% 29%