PT BFI Finance Indonesia Tbk

1Q:19 Results

Analyst Briefing

April 2019

GROWTH

• New booking in 1Q19 reached Rp 3,350 bn or 9.0% (Rp 292 bn) QoQ decrease backed by tighter originationpolicy and partly driven by declined contribution from dealer related financing

• Total managed receivables grows 6.1% YoY to Rp 17,905 bn mainly contributed by NDF car

ASSET QUALITY

• NPL ratio slightly rose to 1.33% vs 1.21% QoQ

• COC maintained at 2.49% vs 2.45% per FY18, as a result of sound risk management implementation

• NPL coverage is well maintained at 1.6x

PROFITABILITY

• Net Interest Spread maintained at 11.61%, 32 bps down from 11.72% YoY. This is contributed by 49 bpsdecline in yield, offset by 38 bps improved in COF

• Net Revenue increased by 6.1% YoY to Rp 965 bn aligned with asset growth

• OPEX increased by 11.0% YoY mainly due to annual salary adjustment and additional professional/consultation fee

• 03M:19 PBT and PAT both slightly decreased by 3.5% YoY to Rp 425 bn and Rp 338 bn, respectively.

1Q:19 Key HighlightsWell maintained asset quality backed by more conservative growth strategy

OTHER UPDATES

• Total network recorded at 400 outlets in 1Q19, there’s an opening of 1 branch and closing of 2 kiosksduring the period.

• Completed a new syndicated loan with 4 MLABs (ANZ, MUFG, SCB & SMBC). Total facility amountupsized to USD 200 mio with additional 15 participant banks.

• Fitch Ratings has issued Press Release of recalibration of Indonesia Nation Scale which saw ratingsrevision of multiple companies, including BFI whose National Long-Term Rating revised to A+(idn) fromAA-(idn). Other than BFI, there were 7 other FI’s impacted, such as Bank Mandiri, BRI, FIF.

• PTTUN (Pengadilan Tinggi Tata Usaha Negara) or the Administrative High Court has issued ruling in favorof BFI in the case where both BFI and Ministry of Law and Human Rights (Kemenkumham) areDefendants. This has been updated in our Information Disclosure on IDX website

• AGMS and EGMS is scheduled to be held on 28 May 2019. Detail agenda is available on www.bfi.co.id

1Q:19 Key Highlights (continued)Well maintained asset quality backed by more conservative growth strategy

In Rp bil

(unless otherwise stated)1Q19 1Q18 YoY FY18 FY17 YoY

New Bookings 3,350 4,161 19.5% 16,372 14,341 14.2%

Managed Receivables^ 17,905 16,870 6.1% 18,340 15,936 15.1%

Total Net Receivables 16,750 16,191 3.5% 17,283 15,175 13.9%

Total Assets 18,464 17,833 3.5% 19,118 16,483 16.0%

Total Debt 11,183 11,692 4.4% 12,096 10,728 12.7%

Total Proforma Debt^ 11,957 12,105 1.2% 12,780 11,252 13.6%

Total Equity 6,528 5,257 24.2% 6,204 4,904 26.5%

^ Includes channeling and joint financing transactions

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

Driven mainly by product refocus from DF Used and put more focus on NDF 4W and 2W.

New bank loans drawdown and issuance of new bonds

Quarterly Bookings Trend (1Q16-1Q19)

1Q:19 Balance Sheet (Proforma) HighlightSlowing down of business growth mainly driven by Dealer Financing - Used Car

2,337 2,874 2,458 3,073 3,166 3,610 3,475 4,090 4,161 4,405 4,164 3,643 3,350

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

Profit & Loss (Proforma) Highlights Higher revenue from portfolio growth impeded by increasing COC

In Rp bil

(unless otherwise stated)m1Q19 1Q18 YoY FY18 FY17 YoY

Interest Income 933 849 9.9% 3,637 2,967 22.6%

Financing Cost 275 259 6.0% 1,082 988 9.5%

Net Interest Income 659 590 11.6% 2,555 1,979 29.1%

Fees & Other Income 307 320 4.1% 1,333 1,090 22.3%

Net Revenue 965 910 6.1% 3,888 3,069 26.7%

Operating Expenses 428 385 11.0% 1,615 1,350 19.6%

Operating Income 538 525 2.4% 2,273 1,719 32.2%

Cost of Credit 112 84 33.4% 433 231 87.0%

PBT 425 441 3.5% 1,840 1,488 23.7%

PAT 338 351 3.5% 1,468 1,188 23.7%

Growth in NDF Income & Deposit Interest

Manageable increase driven largely by business vol. growth

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

COC increased from 2.06% to 2.49% with DF Used, HETO and NDF Car as the highest contributors.

Higher Borrowings and Bonds with 38 bps lower COF

Key RatiosMaintained strong key ratios despite lower growth

1Q19 1Q18 YoY FY18 FY17 YoY

Net Interest Spread 11.61% 11.72% 12 bps 11.91% 10.64% 127 bps

Cost to Income 44.30% 42.31% 199 bps 41.54% 44.00% 246 bps

COC / Avg. Rec. 2.49% 2.06% 43 bps 2.45% 1.61% 84 bps

ROAA (before tax) 8.84% 10.37% 153 bps 9.98% 10.33% 35 bps

ROAA (after tax) 7.03% 8.25% 121 bps 7.96% 8.24% 28 bps

ROAE (after tax) 21.27% 27.63% 636 bps 26.68% 25.61% 107 bps

NPL*1.33% 1.00% 33 bps 1.21% 0.95% 26 bps

Debt / Equity 1.7x 2.2x 11 bps 1.9x 2.2x 11 bps

* Defined as Past Due >90 days, Calculated from total managed receivables (including Off B/S Receivables)

Lower COF by 38 bps offset 50 bps dip in yield

Slower growth in PAT YoY due to rising COC and higher equity due to no interim dividends

Increasing NPL due to slight deterioration of asset quality

9,570 11,220 12,229 13,026 15,936 18,343

8,652 9,295 10,058 10,743

14,341 16,372

0

5,000

10,000

15,000

20,000

2013 2014 2015 2016 2017 2018

Rp

bil

Bookings vs Receivables Growth (2013-1Q19)

Revenue Growth (2013-1Q19)

16,870 17,905

4,161 3,350

1Q18 1Q19

BookingsManaged Receivables

CAGR

B: 14%

R: 14%

• Receivables keep growing consistently over the years

• Slightly lower booking in 1Q19 due to product refocus strategy

• CAGR growth yoy higher than the industry

1,890 2,299 2,831 3,227 4,042 5,0180

1,000

2,000

3,000

4,000

5,000

6,000

2013 2014 2015 2016 2017 2018

Rp

bil

Revenue

• Consistently strong growth in Revenue as a result of robust balance sheetgrowth and good spread management (Yield vs COF)

• Shows ability to maximise income generation from assets

1,169 1,240

1Q18 1Q19

CAGR

22%

Bookings

-10%

+6%

Ability to build a more robust balance sheetSustainable financing receivables and revenue growth over the years

Receivables

+6%

ROA vs Industry ROE vs Industry

8.3%7.8%

8.5%

10.3% 10.3%

9.4%

5.0%3.8%

3.4% 3.9%4.0% 4.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2014 2015 2016 2017 2018 1Q19

PAT growth in spite of slowing economy and challenging market condition

One of the highest ROA companies in the industry and consistently outperformed industry

ROE remains stable and high above average industry over the years

Source: Company, OJK

17.3% 17.1%

19.3%

25.9% 26.4%

22.9%

17.5%13.9%

11.1% 12.0%12.3% 13.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2014 2015 2016 2017 2018 1Q19Source: Company, OJK

PAT Growth

600 650 798

1,188

1,468

351

-

200

400

600

800

1,000

1,200

1,400

1,600

2014 2015 2016 2017 2018 1Q19

Rp

bil

CAGR ‘14-’18

25%

Stable profitability over the yearsStill one of the most profitable multi-finance companies, with ROA and ROE above the industry

ROA Company is calculated using PBT/Average Total Assets

ROE Company is calculated using PAT/Average Total Equity

1.38%

1.83%

2.15%

1.58%

2.02%

2.58%

0.99%

1.38%1.54%

1.10%

1.52%

2.07%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2014 2015 2016 2017 2018 1Q19

Gross Write-Off % Net Write-Off %

1.0% 1.0% 0.7% 0.8% 1.2% 1.1%

1.4% 1.6%

0.9% 1.1%1.3%

1.8%

3.4%

1.6%

1.7%

1.4%1.2%

1.5%

1.5%

1.3%

0.9% 1.0%

1.2%1.3%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2014 2015 2016 2017 2018 1Q19

Non-Dealer Dealer Other NPL %

NPL Trend (2014-1Q19) Write-Offs (2014-1Q19)

Asset quality under controlWell managed balance sheet with controllable NPLs and write-off

Booking Composition

(1Q18 vs 1Q19)

Managed Receivables Composition

(1Q18 vs 1Q19)

2% 1%

17% 2%

51%

65%

15% 18%

15% 14%

1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q18 1Q19

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Total Leasing Property

4% 3%

23%19%

47%51%

9% 10%

15% 15%

2% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q18 1Q19

Dealer New 4W Dealer Used 4W Non Dealer 4WNon Dealer 2W Total Leasing Property

Asset CompositionNDF booking reached 83% whilst Dealer’s contribution drop as part of product refocus strategy

3,933 5,637

4,691 6,819

6,900 6,592

1,622

1,682 2,965

3,909 5,196 4,591

2,484 2,139 1,259

524 684

774

3,567 4,019 4,255 4,904 6,204 6,528

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018 1Q19

Bank borrowings Bonds & MTN JF Equity

Strong capital baseDiversified capital structure and funding source, resulting in stable Net Interest Spread

External Funding Sources

• Increasingly larger proportion of bonds issued, taking advantage of improved pricing climate for bonds up to 1H18

• Decline in Joint Financing contribute to better funding cost

Source of Funding (2014-1Q19)

• Well-diversified funding sources is important to reduce dependency and risk

• Adequate facilities in pipeline to support further business expansion

Borrowings IDR 38%

Borrowings USD 12%

Bonds & MTN 38%

JF 3%

Total : Rp11,957 billion

26%

31%

33%

1%

Business Distribution and Branch Network as of 31 Mar-19Strong footprint with higher growth on Java and Bali

Sumatera

71 outlets18%

17%

Sulawesi and East

70 outlets

Java & Bali

221 outlets

Total400

Outlets

Kalimantan

38 outlets9%

55%

% Outlets by Region

20%

56%

10%

14%

% Managed Receivables1Q18-1Q19

Bookings growth

17%

52%

15%

16%

(excluding 22 Sharia branches)

Thank You