Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — 9M 2022 Earnings Presentation
44 slides from Contact Financial Holding Sae's earnings presentation, 2022
Slide 1: Results Presentation 9M 2022
Results Presentation 9M 2022
Slide 2: Disclaimer
Introduction Disclaimer This presentation has been prepared by Contact Financial Holding (the “Company”. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any
Slide 3: Agenda
AGENDA 1 Introduction 4 2 Our Edge 8 3 Digital Platforms 20 4 Debt Capital Markets 25 5 Africa Expansion 28 6 9M-2022 Performance Review 30 7 Appendix 41
Slide 4: Introduction
ion Introduct ~
Slide 5: Important note regarding updates to group financial reporting
Introduction Important note regarding updates to group financial reporting Starting with the FY 2021 financial statements, the Group has changed the structure and constituents of its financial reporting, with changes affecting primarily the Consolidated Income Statement and segmental reporting in th
Slide 6: At a Glance
Introduction At a Glance Egypt’s leading non-bank financial services provider Group Structure 1st EGX Consumer Finance License in Egypt with +20yrs and largest Consumer Finance player in the Listed since 2018 under the ticker CNFN.CA market offering innovative financial services 2.4 bn Financial Hol
Slide 7: Results Snapshot
Introduction Results Snapshot Contact continued to build on a strong start to the year, delivering solid financial and operational results in the nine months ended 30 September 2022 EGP 1,138 mn EGP 336 mn 19.1% Consolidated Total Operating Income Consolidated Net Income Annualized Return on Average
Slide 8: Our Edge
Our Edge
Slide 9: How We Differentiate Ourselves
Introduction How We Differentiate Ourselves Highly experienced management Highly team Targets the profitable unbanked operation population Contact has a clear vision for the business Widest with a well-defined growth strategy to Superior product funding achieve it capabilities offering in the market
Slide 10: Well-Defined Growth Strategy
Our Edge Well-Defined Growth Strategy Contact has a clear vision for the business with a well-defined growth strategy to achieve it Contact Today A B C D E The widest product Fully digitized proprietary Strong physical & digital Superior funding Highly profitable offering on the market credit engine
Slide 11: What We Do
Introduction What We Do Contact is the largest non-bank financial services provider in Egypt and for the past two decades has been actively changing the way businesses and individuals access financial and insurance services Financing 86% Insurance 14% Financing products targeting Egypt’s banked and
Slide 12: Diversified and Synergistic Product Base Driving Growth Across All Segments
Our Edge – Diversified Product Base Diversified and Synergistic Product Base Driving Growth Across All Segments Broad & Increasingly Diversified Consumer Finance Offering New Lending Breakdown by Product as of 2019 New Lending Breakdown by Product as of Sept. 2022 4% 2% 2% 1% 6% 8% 8% 9% 2% 42% 4% 1
Slide 13: Proprietary AI Instant Credit Scoring Engine
Our Edge – Exceptional Credit Scoring Engine Proprietary AI Instant Credit Scoring Engine Unique Credit Assessment Approach through Creditech Distinctive credit assessment methodology refined over +20 years of financing experience Credit application Data assessed and Loan disbursed or Credit decisio
Slide 14: Market-wide Coverage Including Banked and Unbanked Population
Our Edge – Wide Market Coverage Market-wide Coverage Including Banked and Unbanked Population Powered by Physical Presence Expanding the branch network in high-potential areas outside the main cities Wide Geographical Footprint took place in 2021 and throughout the first nine months of 2022 Branch B
Slide 15: And A Diversified Digital Distribution Network
Our Edge – Wide Market Coverage … And A Diversified Digital Distribution Network Direct to Consumer Distribution (DTC) Lending as a Service (LaaS) 15
Slide 16: 20 Years of Strong Track Record of Credit Extension & Collection
Our Edge – Solid Track Record 20 Years of Strong Track Record of Credit Extension & Collection Track Record of Growth and Operational Evolution LaaS Successful product deployment on the back of market know-how WC Medical Surgeries Club Memberships Insurance Credit Education Portfolio LT Mortgage LT
Slide 17: Diversified, Highly Liquid Funding Base
Our Edge – Diversified Funding Base Diversified, Highly Liquid Funding Base Funding Strategy Overview Overview of Q3-2022 Funding Base Amounts in EGP MN Utilized Available Diversified funding base enabling A B C D consistent liquidity with efficient pricing 5,773 Fixed rate to match portfolio, with
Slide 18: Funding Driven by Continued Innovation in the DCM Space
Our Edge – A Diversified and Increasingly Digital Offering Funding Driven by Continued Innovation in the DCM Space Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability and cost
Slide 19: Consistent Growth and Profitability
Our Edge – Historical Performance Consistent Growth and Profitability Over the years, Contact has delivered consistent growth and attractive profitability leveraging its increasingly broad reach and service offering, and a growing digital presence to weather challenging market conditions and outperf
Slide 20: Digital Platforms
Digital Platforms -
Slide 21: A Digital Business
Contact Holding in Depth – Digital Platforms A Digital Business Contact is leading the financing and insurance sectors’ digitization movement, strengthening its digital capabilities and offering through strategic investments and partnerships Increase Create new Maintain market Contact’s Improve Reta
Slide 22: Digital Platforms – Contact Cars
Contact Holding in Depth – Digital Platforms Digital Platforms – Contact Cars The Company acquired a 50% stake from Sarmady, a Vodafone Company, in 2020 and hired a full management team to relaunch the platform ContactCars.com Relaunched Pricing AI tool reached close to 50,000 The web portal and sma
Slide 23: Digital Platforms – The Contact App
Contact Holding in Depth – Digital Platforms Digital Platforms – The Contact App The Company rolled out its Contact App in early 2021 with the platform rapidly rising in popularity ever since The Contact App 223k Launched in February 2021 as a loyalty and rewards platform, the Through the app, Conta
Slide 24: Digital Platforms – Wasla
Contact Holding in Depth – Digital Platforms Digital Platforms – Wasla In February 2022, the Company concluded a USD 9 million investment in e-commerce super-app Wasla, adding to Contact’s growing footprint in fintech and reinforcing its quest to enable tech-first ventures in Egypt’s financing ecosy
Slide 25: Debt Capital Markets
Debt Capital Markets
Slide 26: Overview of the Debt Capital Markets
Contact Holding in Depth – Debt Capital Markets Overview of the Debt Capital Markets Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability 32 A – AA+ and cost of funding Debt Cre
Slide 27: Overview of the Debt Capital Markets
Contact Holding in Depth – Debt Capital Markets Overview of the Debt Capital Markets Egypt’s Leading DCM Player with a Proven Record of Executing Transactions in Challenging Market Conditions, Safeguarding the Group’s Liquidity Requirements 2020 2022 1st sukuk mudarba in Issued despite 2020 the mark
Slide 28: Africa Expansion
Africa Expansion
Slide 29: The Perfect Opportunity for Further Expansion
The Perfect Opportunity for Further Expansion Via launching “Almasi” new venture, expansion into Kenya and other emerging African markets presents a great opportunity for Contact to grow by replicating our domestic success in markets with similar demographics. Initially to provide leasing services a
Slide 30: 9M-2022 Performance Review
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Slide 31: Comprehensive Financing Offering
Contact Holding in Depth - Financing Comprehensive Financing Offering Contact offers a full range of financing products targeting Egypt’s banked and unbanked population in both the retail and commercial spaces Passenger Commercial Contact Mortgage Medical Working Cars Vehicles Shopping Capital Segme
Slide 32: Financing Division – Widespread Growth Across Financing Segments
9M-2022 Performance Review Financing Division – Widespread Growth Across Financing Segments Total new financing extended in 9M-2022 recorded EGP 8.3 billion, up 62% year-on-year. Growth was primarily supported by Contact’s consumer finance, commercial trucks, and mortgage products, with new lending
Slide 33: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
9M-2022 Performance Review Financing Division – Increasingly Diversified Portfolio with Favorable Margins The Financing portfolio recorded EGP 13.68 billion, up by 42% year-on-year as at September 2022. Throughout the first nine months of the year, Contact continued to diversify its portfolio in fav
Slide 34: Financing Division – Sustained Growth Across all Financing Revenue Components
9M-2022 Performance Review Financing Division – Sustained Growth Across all Financing Revenue Components Contact’s financing division continued to leverage an increasingly diversified product offering, with continuous expansion in terms of geographical reach to achieve strong growth in 9M-2022, desp
Slide 35: Financing Division – High-Quality Portfolio as Evident in Low Delinquencies
9M-2022 Performance Review Financing Division – High-Quality Portfolio as Evident in Low Delinquencies with Sufficient Coverage1 Contact’s PaR 150+ delinquencies (Portfolio at Risk) ratio as at Sep-2022 stood at only 2.3% 150+ Days Portfolio at Risk and Coverage Ratio Percentage PaR Coverage 191% 13
Slide 36: Financing Division – Strong Profitability Supported by Controlled Costs
9M-2022 Performance Review Financing Division – Strong Profitability Supported by Controlled Costs and Low Risk Profile The Financing Division saw its net income increase 2% year-on-year in the first nine months of the year, as strong growth across all revenue components was largely outweighed by an
Slide 37: Insurance Division – Operational and Business Developments – 9M-2022
9M-2022 Performance Review Insurance Division – Operational and Business Developments – 9M-2022 Gross written premiums continue to witness robust year-on-year growth across both companies on the back of new product launches and increased cross-selling. Total policies underwritten in 9M-2022 stood at
Slide 38: Insurance Division – Performance Review
9M-2022 Performance Review Insurance Division – Performance Review Insurance Operating Income | EGP mn Underwriting Income | EGP mn +43% +74% On a consolidated basis, 154 83 136 insurance operating income Underwriting income increased 108 grew by a remarkable 43% by a solid 74% year-on-year to year-
Slide 39: Consolidated Performance – Income Statement
9M-2022 Performance Review Consolidated Performance – Income Statement Broad-based growth across both segments continued to support a solid performance at the consolidated level Total Operating Income| EGP mn Consolidated Operating Expenses | EGP mn Consolidated Return on Equity | EGP mn +28% +36% 2
Slide 40: Consolidated Performance – Income Statement
9M-2022 Performance Review Consolidated Performance – Income Statement Consolidated normalized net income after minorities increased by 14% year-on-year, to record EGP 404 million in 9M-2022 EBT | EGP mn Normalized Net Income| EGP mn 662 +7% +14% 535 527 477 504 470 392 404 283 353 FY 2019 FY 2020 F
Slide 41: Appendix
Appendix
Slide 42: Financing Business Income Statement
Our Edge Financing Business Income Statement change (FY-2020 vs FY- change (9M-2021 vs 9M- FY-2020 FY-2021 9M-2021 9M-2022 2021) 2022) Revenue from Portfolio Transfer 320,398 486,813 52% 322,649 473,045 47% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 109,452 152,990 40% Securitiza
Slide 43: Insurance Business Income Statement
Our Edge Insurance Business Income Statement change (FY-2020 vs FY- change (9M-2021 vs 9M- FY-2020 FY-2021 9M-2021 9M-2022 2021) 2022) Gross Written Premiums 283,856 516,835 82% 376,197 723,601 92% Provisions of Unearned Premiums (49,819) (44,152) -11% (38,059) (98,662) 159% Outward Reinsurance Prem
Slide 44: Consolidated Income Statement
Our Edge Consolidated Income Statement Financing Business FY-2020 FY-2021 change (FY-2020 vs FY-2021) 9M-2021 9M-2022 change (9M-2021 vs 9M-2022) Revenue from Portfolio Transfer 320,398 486,813 52% 322,649 473,045 47% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 109,452 152,990 40%
Contact Financial Holding — 9M 2022 Earnings Presentation on 6ix