Al Ansari Financial Services Pjsc · DFM:ALANSARI
Al Ansari Financial Services Pjsc — H1 2024 Earnings Presentation
28 slides from Al Ansari Financial Services Pjsc's earnings presentation, Aug 1, 2024
Slide 1: H1 2024 Financial Results Presentation
H1 2024 Financial Results Presentation
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by Al Ansari Financial Services PJSC (the “Company” or the “Group”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The company relies on information obtained from sourc
Slide 3: Today's Presenters
Today’s Presenters Mohammad Bitar Faisal Anwar Omar Eteiba Deputy Group Chief Executive Group Chief Financial Officer Group Senior Manager – Mergers Officer and Acquisitions 3
Slide 4: Contents
01 H1 2024 Highlights • Key Highlights • Financial & Operating Performance Snapshot 02 Business Highlights • Revenue Contribution • Market Analysis • Remittances • Bank Notes & Prepaid Cards • WPS and Other Products & Services CONTENTS 03 Financial Highlights • Income Statement Overview • Balance Sh
Slide 5: H1 2024 Highlights
H1 2024 Highlights 01 H1 2024 Key Highlights 02 H1 2024 Financial & Operating Performance Snapshot
Slide 6: H1 2024 Key Highlights
H1 2024 Key Highlights • Operating Income for the Group showed a marginal decline for H1’24 by 1.9% year on year (YoY), attributed to a decline in the Bank Notes +0,000 -1.9% business Operating Operating Income YoY Income YoY • 2.2% growth in Transactions due to increase in transactions of major bus
Slide 7: H1 2024 Financial & Operating Performance Snapshot
H1 2024 Financial & Operating Performance Snapshot Financial Performance (AED) Operating Performance Net Profit After Tax EBITDA As of 30 June 2024 205 mn 258 mn 25.0 mn 259 H1’23: 299 mn (-13.6%) H1’23: 263 mn (-22.0%) Total number of Number of physical transactions branches +2.2% vs. H1’23 21 net
Slide 8: Business Highlights
• Revenue Contribution • Market Analysis Business Highlights • Remittances • Bank Notes & Prepaid Cards • WPS and Other Products & Services
Slide 9: Revenue Contribution H1'23 H1'24
Revenue Contribution H1’23 H1’24 Others Others WPS WPS + 6% 2% + 7% 2% 6% 6% Bank Bank Notes Notes Remittances - 6% Remittances - 1% 32% 31% 60% 61% % Growth in Revenue 9
Slide 10: Our home market, the UAE, continues to remain robust despite global headwind
Our home market, the UAE, continues to remain robust despite global headwind UAE’s economy remains resilient on all fronts backed by government initiatives FDI 7.5% 7.1% GDP Growth Forecast Growth in new foreign 6.2% 5.2% 28% investment projects in 2023 5.4% 5.3% Travel and Tourism 3.6% 3.9% Contrib
Slide 11: Remittances: H1 2024
Remittances: H1 2024 Worldwide Cash Express (“WWCE”) Operating Income (AED’mn) Outward Personal Transactions (‘000) Operating Income (AED’000) Half Year Movement Quarter Movement 1,096 349 345 Major 5 6,083 326 6% <1% Corridors 6,064 82% 179 164 11% 182 -1% 603 1% 2,358 Others -2% 2,404 H1'23 H2'23
Slide 12: Bank Notes & Prepaid Cards: H1 2024
Bank Notes & Prepaid Cards: H1 2024 Operating Income (AED’mn) Bank Notes Value of Transactions (AED’bn) Prepaid Cards Value of Transactions (AED’mn) Half Year Movement Quarter Movement -16% 1,191 42 25% 184 -23% 36 953 180 -3% 27 -4% 174 21 -6% 15 87.9 15 86.9 86.7 - <1% -1% Retail Wholesale Total H
Slide 13: WPS and Other Products & Services: H1 2024
WPS and Other Products & Services: H1 2024 CashTrans WPS Operating Income (AED’mn) Other Products & Services (AED’mn) (End-to-end cash management) Operating Income (AED’mn) * 7% 34 6% 13.6 32 12.9 24% 9 8 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24 WPS Salary Disbursals (‘000) Bill Collection No. of Transac
Slide 14: Financial Highlights
Financial Highlights • Income Statement Overview • Balance Sheet Overview • Capex Business Model
Slide 15: Income Statement Overview
Income Statement Overview AED ‘000 Q2’24 Q2’23 % change H1‘24 H1‘23 % change Commentary Net gain on currency exchange 136,494 130,973 4.2% 265,531 280,607 (5.4%) • Net gain on currency exchange saw a dip of 5.4% YoY mainly due to decline in Bank Notes volumes. Increase in income from exchange gain o
Slide 16: Balance Sheet Overview
Balance Sheet Overview AED ‘000 June‘24 Dec’23 % Change Commentary Right of use assets 95,424 92,031 3.7% • The increase in Right of Use assets by 3.7% can be attributed to addition of new branch locations and the renewal of lease contracts expired during the Property and Equipment 72,505 71,926 0.8
Slide 17: Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth
Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth and Value to the Shareholders Current Assets and Capex(1) (AED’mn) Current Liabilities (AED’bn) Commentary Total capex as Net 1.7 1.6 % of Operating 3.6% 2.8% Income ▪ Majority of the current assets are composed of 2.9 2.9 2
Slide 18: Dividend Policy
Dividend Policy • Dividend Policy
Slide 19: Dividend Policy
Dividend Policy Historical Dividends (AED mn) 1,076 Minimum Annual Dividends: • FY 2023: The Group has paid a dividend amount of AED 600 million for the FY 2023, with AED 300 million each paid in November 2023 and April 2024 600 • FY 2024: The Group expects to pay (on a semi-annual basis in April an
Slide 20: Growth Strategy
Growth Strategy • 6 Pillar Strategy
Slide 21: Clear Growth Strategy Centered on 6 Pillars
Clear Growth Strategy Centered on 6 Pillars 1 Physical Network Expansion 2 Geographic Expansion 3 Digital Innovation Smart 80% of remittance market Growing market share in Kuwait counters in in 2027 is expected to still and entering other attractive branches Continued investment in be face-to-face G
Slide 22: Clear Growth Strategy Centered on 6 Pillars (continued)
Clear Growth Strategy Centered on 6 Pillars (continued) 4 Margin Increases 5 Corporate Cross-border Remittances 6 CashTrans c.370K SMEs active in the UAE Planned and ongoing Scope to increase margins investments for central given the quality of the services, market leadership position and 190K wareh
Slide 23: Guidance
Guidance • Short to Mid Term Guidance
Slide 24: Short to Mid Term Guidance
Short to Mid Term Guidance* Target Item Time Horizon (annual growth rate unless otherwise stated) Branch Network 300 total no. of physical branches Mid-term Single digit growth Short–term Remittance Income Low to mid teens Mid-term Single digit growth Short–term Bank Notes Income Low to mid teens Mi
Slide 25: Business Updates
Business Updates • BFC Group Acquisition • High Level Integration Timelines and Milestones
Slide 26: BFC Group Acquisition
BFC Group Acquisition Strategic Rationale Key Highlights Become The Leading Regional Powerhouse 53% 69% • Become the largest remittance and exchange provider in GCC region by Of Bahrain Population Of Kuwait Population branch network with over 410 branches (60% increase on AAFS current branch network
Slide 27: High Level Integration Timelines and Milestones
High Level Integration Timelines and Milestones Up to July 2024 9 months Q1 2025 12 - 18 months Q1 2026 – Q3 2026 Announcement Closing Integration Finalization of Integration Process Process & Realization of Synergies • Obtain regulatory approvals where BFC operates and satisfy closing conditions Ph
Slide 28: Thank you
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