corporate presentation pt bank bukopin tbk · process business refinements and strengthening risk...

CORPORATE PRESENTATION

PT BANK BUKOPIN Tbk

Q1 2020

Ownership

92,78%

Ownership

97,03%

❑ Bank Bukopin (“The Company”) was established in 1970 and

became publicly listed after its IPO in 10 July 2006.

❑ 49 years of experiences in national banking industry that has

succeeded through various national and global economic

crises.

❑ Focus on Retail segment which consisted of MSME (Micro,

Small, Medium Enterprises, and Cooperatives) and Consumer.

A national private company with 6 focus business area:

Automotive, Cement, Mining and Energy, Financial Services,Real Estate, and Education, also run several other projects in

media, sports, and agriculture.

One of the largest banks in Asia that dominates mortgage

market share and digital banking in South Korea. Became thesecond largest shareholder after 27 July 2018.

Cooperative institution of employees and pension of

Indonesia Logistics Bureau, which is a government-ownedcompany which deals with food distribution and price control.

Government of the Republic of Indonesia, with managed by

the Ministry of State Owned Enterprises (“KBUMN”).

Shareholder Profile

Company Profile

Company Structure

Focus on retail segment and low RWA

products

Solid, professional & experienced

management

IT innovation based productRisk based culture Wide network and millions of customers

49 years of experienced in the retail

segmentBrand image Strategic partnership

Company Profile

Strength

Vision, Mission, and Corporate Culture

Vision

Mission

Corporate Culture

Integrity Competence Care Accountable Never Give Up

“To become the first choice of financial institution in Indonesia”

“Understanding and giving solutions to customer”

Sustainable Growth, Focus on Retail Segment, & Portfolio Quality

Retail Segment

Strengthening Retail Segment Focus on Low RWA Improve Asset Quality

Focus on Retail Segment Growth

❑Accelerate loan growth on

low RWA and consumer loan❑Focus on growth of MSME

segments through selected

business sector❑Triangle business model &

scheme-based financing

❑Focus on developing IT based

transactional services❑Improve loan quality through

process business refinements

and strengthening riskmanagement

❑Digitization and efficiency❑Prudent and optimal liquidity

management

❑Focusing growth in the Retail

Segment consisted of Micro,Small and Mediumenterprises, (MSMES)

Cooperatives, and Consumer.❑Growth focus on retail

customer deposit and CASAproduct

❑Maintain current position of

commercial segment

Our Strategy

Bank

End User 3rd Party3rd Party

“Direct to Debtor”3rd Party is only a part of the loan proposal and

analysis

❑ Side streaming is highly probable

❑ Rely on collateral based loan approval

End User 3rd Party

“Triangle Business Model”3rd Party is a part of loan agreement

Conventional Bukopin Way

❑ Certainty in utilization of loan funds

❑ Zero Side Streaming through Flexy Bill & Flexy Gas

❑ Certainty in sources of loan payment

❑ Mitigation of payment failure → Flexy Health &

Invoice Financing

❑ Improved CASA ratio via Margin Deposit

❑ Triangle Business model → cooperate with highly

reputable company which are State owned company

and company with minimum idAA- rating

Unique Value Proposition

PayrollActive, Pre-Pension

& Pension Loan Flexy BillFlexy Health Flexy GasMoney Market

LineFlexy Pay

Showroom

Financing

Commercial ConsumerMSME

Champion Products

FLEXY BILL

FLEXY HEALTH

FLEXY GAS FLEXY PAY

SHOWROOMFINANCING

PAYROLL BASEDLOANS

Performance Highlights

96,621 66,414 77,490

100,264 69,545 80,813

100,803 71,187 76,843

4.33% 7.19% -0.83%

TOTALASSET

TOTALFINANCING

TOTALDEPOSIT

BALANCESHEET

(IDR BILLION)

Mar-19

Dec-19

Mar-20

YoY

Performance Highlights

INCOMESTATEMENT

(IDR BILLION)

INTEREST INCOME

INTEREST EXPANSE

FEE BASED INCOME

OPERATING EXPANSE

1,921 1,435 195 603 55

7,764 5,750 784 2,801 217

2,015 1,432 282 725 54

4.86% -0.20% 44.77% 20.22% -2.05%

NETPROFIT

Mar-19

Dec-19

Mar-20

YoY

Loan Disbursement

Trend of Loan Disbursement

29.2 31.0 31.2

16.0 16.6 17.4

21.221.9 22.6

66.469.5 71.2

Mar-19 Dec-19 Mar-20

SME Consumer Commercial Total Loan

“Focus on loan growth which consistently geared towards

retail business, which the retail loan (SME & Consumer) grows 10% YoY“

468.9 687.2

4,221.4



Trend of “Loan Plus”

“Loan Plus” → Trade Finance, Flexy Bill, Flexy Health, Flexy Gas

and Invoice Financing

800%

45.2 47.6 48.6


Retail Loan 10%

Loan Composition*

17.46%

18.20%

17.74%

46.60%

COMPOSITION BY ECONOMIC SECTORCOMPOSITION BY SEGMENT

41.81% 42.40% 41.63%

23.81% 23.44% 24.18%

34.38% 34.16% 34.19%


SME

Trading

Service

Others

Construction

Consumer Commercial*Bank Only

Fee Based Income*

5033 37

52

18

170

130

173

271

97

34 29

98115

14

Credit Card Public Service Treasury Financial Service Others


SOURCES AND YOY GROWTH

(IDR BILLION)

Fee based income reached IDR 290 billion per March 2020.

Highest FBI growth : Treasuryand Financial Service(including bank guarantee and the new product, Flexy Series)

*Bank Only

Asset Quality*

49.73%

24.90%

25.37%33.38%

9.02%18.78%

38.82%

Other

ConstructionServices

TradingCommercial

SME

COMPOSITION OF NPL (March 2020)

Consumer

BY SEGMENT BY ECONOMIC SECTOR

COVERAGE RATIO & NPL

RATIO

51.71%

32.73%

48.26%

3.54% 4.45% 3.40%


Coverage Ratio NPL Ratio

*Bank Only

Pre-Pension and Pension Loan Grow Significantly*

❑Maintaining its position as the 6th largest pension payment of the state-owned pension fund of Police and TNI(ASABRI) with 20 thousand customer.

❑Maintaining its position as the 7th largest pension payment of the state-owned pension fund for civil servantspayment (TASPEN) with 92 thousand customer.

❑By 2019, Bukopin is the 5th largest payment bank with 112 thousand customer, our market share is about 3.7% in theindustry which contain 3 million pension customer registered

3.4 5.8

7.8

10.4 9.5

11.1 11.3

54

6879

92 93

111 112

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

13.0

20. 0

30. 0

40. 0

50. 0

60. 0

70. 0

80. 0

90. 0

100. 0

110. 0

Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Aug-19 Dec-19

Pension Loan (Rp Trillion) Debtors (Thousands)

*FY 2019

293 451

750

1,162 1,277

Dec-15 Dec-16 Dec-17 Dec-18 Dec-19

Car loan (Billion IDR)*

Synergy with Subsidiaries

Sales Joint Financing

Synergy, Simplification of the process, and Optimalization of the Margin

❑ Valuation by apps

❑ Collecting System

❑ SLA & Competitive Pricing

❑ 40 branches in Indonesia

Multipurpose Loan – Payroll Based

Employee

Payroll and Collecting Agent Cooperation

Monthly

Salary

Company

Showroom Financing

Liquidity Support

Car LoanEnd User

Working

Capital

Sales

Car Loan with Focus on Synergy with Subsidiaries

*FY 2019

Business Models of New SWAMITRA

Community and Members of KOPAS

Direct sales to

End Users

Partnership

Bad Loan

Collecting & Collateral

Agent Provides an active KOPAS

Member Database

Koperasi

Pasar (KOPAS)

Fee

Sharing

Installment payments

directly to the Bank

Performance

❑ Network : 446 Cooperatives with 511 Outlet

❑ End User : 58.581

❑ Total Loan : Rp1.431 Billion

❑ Fee Base Income : Rp18 Billion (FY 2019)

MSME: Cooperatives Business Model

Product Composition (%)

37.3 41.3 39.5

62.7 58.7 60.5


CASA Time Deposit

48.2 50.2 51

24.3 25.5 21.7


Retail Commercial

Segment Deposit Structure

Customer Deposit*

❑CASA grows 4,86% yoy

❑Focus on Customer Deposit retail segment, with 3.94% yoy growth

*Bank Only

70.10%

29.90%

Retail Commercial

National Govt. Budget

BO 1

BO 2

Finance Ministry

4 Syariah State Owned

Banks &

22 Local Govt. Banks

Local Gov.

BudgetSOE

State-Owned

Pension

Funds

Ministry

Offices

Govt.

Institutions

Strategic Partner : Government and SOE Partnership

❑ Founding father and market leader of electricity payment bill (PLN)

transactions through PPOB H2H. In 2018 Prepaid Transactions reached

31 Million transactions with a nominal value of Rp30 Trillion.

❑ Project financing both cash loans and LC / SKBDN

❑ Big bill PLN financing through Flexy Bill

❑ As a payment bank of membership contributions social security

❑ Become a strategic investment choice

❑ Collaborative financing of hospital bills to BPJS through Flexy Health

❑ Top 5 TASPEN and ASABRI Pension Payment Banks, with the second

highest growth among other competitor (CAGR: 21%).

❑ Managing pension payments of more than 92 thousand pensioners.


❑ Active in developing MSMEs by doing government program such as

KUR, JARING

❑ Appointed by the Ministry of Finance as Operational Bank 2 and

Perception Bank

❑ Appointed by the Ministry of Finance to provide online state deposit

(tax and non-tax) reception services that serve 138 thousand

transactions with a nominal value of IDR 4.3 trillion


Phone Banking

Bukopinet

More than 15.000 active users

Pay by QR > 400 merchants

Video Banking for CDD process

Wokee

>6.000 Transactions

IDR 3,7 Trillion

BCM

1 million transactions

IDR 721 Billion

SMS & Mobile Banking

37 million Transactions Prepayment PLN,

IDR 3,2 Trillion

Comprehensive E-Channel Solutions

Distribution Network

DISTRIBUTION

CHANNEL

43 BranchOffices

175 Sub-branch Offices

162 CashBranches

9Functional

Offices

836ATM’s

25 PaymentPoints

24/7 customer service

>100.000 payment outlets supported by partnership with E-commerce and other online business partners as the collecting agent H2H

Digital banking app, payment by QR code, available at > 3000 merchants

STRATEGIC PARTNERS

Shareholders Profile

23.40%

22.00%

5.26%8.92%

40.43%

Public

PT Bosowa Corporindo

KB KookminBank

KopelindoNKRI

Public Investor :

(Ownership < 5%)

PT Bosowa Corporindo

A national private company with several

business segments

KB Kookmin

One of the largest in South Korea and Asia

Negara RI

Government of the Republik of

Indonesia

Kopelindo

Cooperative institution of employees and

pension of Indonesia Logistics Bureau

PUBLIC INVESTORS(Ownership < 5%)

Institutional Investors 14.57%

Individual investors 20.77%

Cooperatives 4.04%

Mutual Fund 0.46%

Insurance 0.14%

Pension Fund 0.18%

Foundation 0.27%

1989 1993 2003 2006 2008 2009 20111970 2012 2013 2014

• Right Issue I• Spin-off Unit Syariah

Bussiness to

subsidiary SyariahBank

Issuance of Continuous Subordinated Bonds I Phase I 2012

Right IssueIII• Rights Issue II

• Increased ownership in Syariah bank to

77.57%

• Additional acquisition of shares of a subsidiary of Syariahbanks. Add up shares to

65.44%• Pay off Phase A Bonds, Phase B

Subordinated Bonds and Syariah Bonds

Series A bonds are issued.

Series B Subordinated

Bonds and Syariah

Mudharabah Bonds

• Change name• The first bond

issued

• Become a public company

through an IPO

• The acquisition of 24.73% shares

of one of the Syariah banks in

Indonesia• Acquisition of Multifinance

Company

Become a limited liability company

Established on July 10, 1970

2015

• PT Bosowa Corporindo become Controlling Shareholders

• Issuance of Continuous

Subordinated Bonds II Phase I 2015

• Increased ownership in Syariahbank to 89.07%

Increased ownership in sharia bank to

86.82%

2016

• Increased ownership in multi-finance subsidiaries to 96.06%.

• Increased ownership in syariahbank subsidiaries to 90.67%

• Issuance of Medium Term Notes I in 2016

• Issuance of Medium Term Notes I Phase B 2016

• Issuance of Phase II Sustainable Subordinated Bond II

2017• Increased ownership in

syariah bank subsidiaries to 91.86% multi-finance subsidiaries to 97.03%

2017 2018

Right IssueIV, KB

Kookmin as the second

largest shareholder

Milestone

2019

Issuance of first Asset-backed

Security (KIK

EBA)

September 4th

2020

Karya BudianaCommissioner -

Independent

SusiwijonoCommissioner

M. Subhan AksaCommissioner

Chang-su Choi**Commissioner

Ahmad Fuad*Commissioner -

Independent

Moch. Hadi Santoso*Commissioner -

Independent

Mustafa AbubakarPresident Commissioner -

Independent

Deddy S.A. KodirCommissioner

BOARD OF COMMISSIONERS

DIRECTORS

Adhi Brahmantya

Operations & IT Director

Hari WuriantoCompliance Director

Eko R. Gindo

President DirectorLalu Azhari

Business Director -Commercial

Rivan A. Purwantono

Business Director -Consumer

Heri Purwanto

Business Director - MSME

Jong-Hwan Han **Director

Geger N. Maulana*

Financial and Planning Director

*) Shall be effective as stipulation specified by the Bank after fulfilling all requirements governed by POJKNo.27/POJK.03/2016, No 37/POJK.03/2017 and/or other applicable laws and regulations.

**) Shall be effective as stipulation specified by the company after obtained approval for fit and proper by OJK

INVESTOR RELATIONS (HI-BBKP)

Address : Bank Bukopin Head Office, 1st Floor(Corporate Secretary Division)Jl.MT.Haryono Kav.50-51, Jakarta 12770

E-mail : [email protected] : (62-21) 7988266

Ext.1166,1118,1115Fax : (62-21) 7980625

IR Team :

Almira Sistya Nandini (IR Manager)[email protected], ext. 1166

M. Nino Nurhakim (IR Officer)[email protected], ext. 1118

Candra Krisdianto (IR Officer)

[email protected], ext. 1115

DisclaimerDisclaimer : This presentation material was prepared by PT Bank Bukopin Tbk (hereinafterreferred to as "Bank Bukopin" or "Company") independently and circulated for generalinformation purposes only. This is not intended for certain people who might receive thismaterial. No guarantee (expressed or implied) is made for the accuracy or completeness ofthe information. Some of the statements contained in this document contain theachievement of reports relating to financial conditions, business and business results, andrelated plans and objectives. This material does not directly or exclusively relate to facts inthe past. This material also does not directly or exclusively reflect both plans, expectations,assumptions and beliefs about events that will occur in the future of the Company. Thereare uncertainties, known and unknown risks from this report that can cause results,performance or events to differ materially from the original report. This is not just astatement, and must not be interpreted as a representation of the Company's futureperformance. Readers are advised to look at all the statements listed here carefully.

Thank You!

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