Yoma Strategic Holdings Ltd. · SGX:Z59
Yoma Strategic — Investor Presentation (January 2024)
23 slides from Yoma Strategic's investor presentation, Jan 15, 2024
Slide 1: Overview of Wave Money
Overview of Wave Money September 2023 15th January 2024 CONFIDENTIAL
Slide 2: Table of Contents
Table of Contents 1. Wave Money overview 2. Market environment 3. Key performance results 4. Future business plan SENSITIVE 2
Slide 3: Wave Money At A Glance
Wave Money At A Glance Myanmar’s Strategic Priorities Vision leading FinTech Our Business Units Our Service Offering • Founded in 2016, Over-the-counter (OTC) Money transfer Wave Money is the first licensed Maximize Airtime top-ups company as MFS profitability from operator in OTC business Myanmar B
Slide 4: Wave Money Journey & Milestones
Wave Money Journey & Milestones • EBITDA breakeven & turned profitable • Moved MMK 12.8 Tn transfer volumes • 545% increase in Digital (highest since 2015) – equivalent to 9% of • Built IT & Digital capability within Wave Myanmar GDP transactions during & post COVID • Established Joint Venture with
Slide 5: Table of Contents
Table of Contents 1. Wave Money overview 2. Market environment 3. Key performance results 4. Future business plan SENSITIVE 5
Slide 6: Overview of Myanmar
Overview of Myanmar 54Mn+ Population ( 52% Women and 48% Men) 74Mn+ Mobile Connections ( 134% Tele-density) 25Mn+ Internet Users ( 46% penetration) 21Mn+ Social Media Users ( 38% penetration) 10-15Mn Bank Accounts ( 20-30% penetration) SENSITIVE 6
Slide 7: Mobile Financial Services Landscape
Mobile Financial Services Landscape Over the counter Digital/Mobile Wallet services services • Highly cluttered mobile money wallet business • Traditional money transfer over counter model • More than 25+ players – Operator owned, Bank • WaveMoney is market leader with 80%+ share owned, Individual M
Slide 8: Business climate since February 2021 has been highly complex
Business climate since February 2021 has been highly complex Period of high unrest (Feb’21- Banking/cash crisis (Apr’21-Jul’21) Enhance Scrutiny of May’21) • Drastic reduction in cash withdrawal limits, with Compliance (Aug’22 -) • Disruption to public services including tokens introduced to ration
Slide 9: Economy is showing signs of resilience, with macro outlook modestly positive
Economy is showing signs of resilience, with macro outlook for the current year looking modestly positive GDP Growth by Sector Key Notes from World Bank • 3% GDP growth forecast for 2023 • 13% lower than in 2019 - Indicative of persistent impacts of recent shocks on both supply and demand drivers of
Slide 10: We are regulated under the Central Bank of Myanmar as a non-banking financial institution
We are regulated under the Central Bank of Myanmar (CBM) as a non-banking financial institution • The Central Bank of Myanmar (“CBM”) is actively prioritising the digitalisation of the financial system. The CBM plans to roll out MMQR (interoperable merchant QR payments) at the end of this year, with
Slide 11: Table of Contents
Table of Contents 1. Wave Money overview 2. Market environment 3. Key performance results 4. Future business plan SENSITIVE 11
Slide 12: Despite the challenging market environment, we continued to play an important role in Myanmar's economy
Despite the challenging market environment, we continued to play an important role in Myanmar’s economy Key Performance (April – September 2023) 44% Unbanked 14% of Myanmar GDP $4.5 billion trans ferred among mobile wallet us ers 48% of OTC +55,000 Agents trans ferred to rural areas 90% geographic c
Slide 13: Wave transaction volumes recovered; digital volumes crossed over OTC volumes
Wave transaction volumes recovered to the level in December 2022; Digital volumes crossed over OTC volumes since Covid and accelerated more than OTC volumes after Flexi migration OTC Digital Cash-Out Limit Restrictions (Ongoing) Legacy to Flexi Migration MPU Integration Banking/Cash Crisis Enhance S
Slide 14: Digital transactions now contribute more than 90% of total transactions
Digital transactions accelerated since COVID and now contributed more than 90% of total transactions OTC Digital Cash-Out Limit Restrictions (Ongoing) Legacy to Flexi Migration Banking/Cash Crisis MPU Integration Period of Unrest Enhance Scrutiny of Compliance 4G Internet Ban 65 63 59 55 52 53 51 50
Slide 15: Continue to be profitable; need to invest in IT & digital transformation
Continue to be profitable even during Covid, banking/cash crisis, foreign currency restrictions, stringent regulatory compliance and political changes in Myanmar; Need to invest in IT & Digital transformation for next phase of growth Revenue (MMK) EBITDA (MMK) Period of Unrest +92% +42% Q1 FY22 Q2 F
Slide 16: Our performance was supported by three key assets
Our performance was supported by three key assets Key pillars Description Largest agent network • ~60% of POS located in rural areas Distribution • Three-tiered distribution for efficiency and velocity of money circulation: Super-agents, local sales staff and network sales agents • Strong agent loya
Slide 17: High performing team with experienced international and local management
High performing team with focused and experienced international and local management team; Diverse employee base with strong focus on local development 333 Employees Melvyn Pun Executive Chairman 50% female across entire 9 Nationalities workforce. 55% female when represented, with Internal Audit Pro
Slide 18: Table of Contents
Table of Contents 1. Wave Money overview 2. Market environment 3. Key performance results 4. Future business plan SENSITIVE 18
Slide 19: Wave25 will serve as a compass for the third chapter of DMM's growth journey
Wave25 will serve as a compass for the third chapter of DMM’s growth journey 3 Accelerate to Scale 2 Pivot to Digital 2020-2025 1 • Covid / political changes acceleration • Build future revenue streams Money Transfer 2018-2020 • Digital transformation • Insource Tech • IT extraction 2016-2018 • Laun
Slide 20: Opportunity to become a leading payments as a platform and digital lender
As the digital market matures, we see an opportunity to become a leading “payments as a platform” and a digital lender This Year’s Focus Sophistication of mobile money use cases Emerging Future Focus High velocity use cases Financial services Bill payments Merchant/ Build agent network proximity Air
Slide 21: Wave25 – Future Roadmap focused on WaveScore, Adtech, Remittance and MMQR
Wave25 – Future Roadmap with the key focus currently on WaveScore for lending, Adtech, International Remittance and MMQR Payments s SENSITIVE 21
Slide 22: Wave Money is a profitable, high growth company in a market with huge potential
Wave Money is a profitable, high growth company, in a market with huge potential. A strong history of success and performance. Solid foundation • Trusted and loved national consumer brand • Largest distribution network & OTC cash cow • Largest mobile wallet user base with huge customer consumption d
Slide 23: For more information on Wave Money
For more information on Wave Money…. facebook.com/wavemoney @WaveMoney_MM www.wavemoney.com.mm Melvyn Pun Chairman, Wave Money melvyn.pun@wavemoney.com.mm 23 SENSITIVE
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