ASA International Group PLC · LSE:ASAI
ASA International — Corporate Update (May 2020)
18 slides from ASA International's corporate update, May 13, 2020
Slide 1: Leadership in Global Microfinance: Update on COVID-19
LEADERSHIP IN GLOBAL MICROFINANCE Creating hope. Changing fortunes Update on COVID-19 Including Discussions with our Lending Institutions and Financial and Operational Performance 13 May 2020 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Executive Summary
Executive Summary Proactively managing the impact of COVID-19 on our operations, focused on the health and safety of our staff and clients Ø The impact of COVID-19 was limited to the last two weeks of Q1 2020 and primarily affected client growth and outstanding loan portfolio (“OLP”). 42 new branche
Slide 3: Executive Summary (Cont'd)
Executive Summary (Cont’d) Ø Due to the impact of the COVID-19 pandemic on the Group’s ability to collect all dues from its clients and the more limited repayment capacity as they emerge from the end of the lockdowns and/or moratoriums, we expect that the PAR>30 in each of the countries in which we
Slide 4: Lockdowns and Moratoriums
Lockdowns and Moratoriums On March 15, 2020, a lockdown was announced in the Philippines. Within 10 days thereafter, the governments of all our other operating countries, except of Sierra Leone and Zambia, announced lockdowns, curfews or other measures to mitigate the spread of COVID-19. Duration Lo
Slide 5: Lockdowns and Moratoriums (Cont'd)
Lockdowns and Moratoriums (Cont’d) In India, Pakistan and the Philippines, the Governments instituted a 30-60 days moratorium or 30 days grace period for the repayment of all microfinance loans Moratorium Microfinance Countries Moratorium Lenders to MFIs Steps taken Operational status Loans 12 month
Slide 6: Operational Measures
Operational Measures As the implications of the potential spread of COVID-19 became clear, we promptly implemented a wide range of measures to minimize the impact of COVID-19 on our staff, clients and operations, including the following: Ø Health and safety § Sanitary measures in accordance with Gov
Slide 7: Financial Measures
Financial Measures Ø Maximize Liquidity § Seeking to maintain adequate liquidity across the Group by ensuring that the holding companies and each of our operating entities have sufficient unrestricted cash and/or access to unconditional funding available during a possible extended period of reduced
Slide 8: Financial Performance, Covenants, Repayments
Financial Performance, Covenants, Repayments Ø Q1 Trading update § Q1 operational and financial performance has been below expectations, primarily due to the rapid slow-down of operations during the last two weeks of March, due to the impact of COVID-19 and the associated lockdowns Ø Temporary incre
Slide 9: Financial Performance, Covenants, Repayments
Financial Performance, Covenants, Repayments Ø Temporary increase in PAR>30 to 5-10%, but no more than 2-3% expected write-offs (cont’d) § Based on this and other similar experiences and in light of the more widespread impact of the COVID-19 pandemic on the immediate repayment capacity of our client
Slide 10: Expected Impact on the Loan Portfolio
Expected Impact on the Loan Portfolio Ø Since the Group’s inception in 2008 until 31 December 2019, the Group only has written-off loans totalling USD 10m (after the recovery of written-off loans), which represents 0.22% of USD 4.5 billion in loans extended Write-offs as % of Loan Disbursements Disb
Slide 11: Expected Impact on the Loan Portfolio (Cont'd)
Expected Impact on the Loan Portfolio (Cont’d) Ø The largest amount of write-offs in a single year during the last 10 years occurred in 2012. The write-off amounted to 2% of the total portfolio and was caused by (i) the Andhra Pradesh crisis in India in 2010 and (ii) major natural calamities in the
Slide 12: Expected Impact on the Loan Portfolio (Cont'd)
Expected Impact on the Loan Portfolio (Cont’d) o During the initial months following demonetization clients had no money for paying loan installments and PAR>30 increased to 19.8% in December 2016; but with new notes in circulation and constant support of our staff, PAR>30 reduced to 0.8% in March 2
Slide 13: Expected Impact on the Loan Portfolio (Cont'd)
Expected Impact on the Loan Portfolio (Cont’d) Ø Major Typhoon Lando in the Philippines (2015) o The 7th most destructive and costliest typhoon damaging USD 313m infrastructure and agriculture and affecting more than 900K people o Pagasa immediately provided relief goods (2018) o 63 branches with 65
Slide 14: Restart of Field Activities
Restart of Field Activities Ø Health & Safety of our staff and clients § All measures listed above will remain mandatory for the foreseeable future § Field staff will be instructed to inform and educate clients of the benefits and protection from H&S measures instituted by the Group and encourage cl
Slide 15: Update from the Field
Update from the Field Ø Lockdowns in Pakistan, Ghana and Kenya have gradually relaxed, which allows for a re-opening of our field operations in these countries Ø Operating performance has been in line with expectations with gradual increases of our collection efficiency, which is expected to reach 1
Slide 16: Update from the Field (Cont'd)
Update from the Field (Cont’d) § Kenya o Operations were re-started on 4 May. On the day of resuming operations, collections amounted to 10%, growing to 24%, 30% and 33% during the three days thereafter o 80% of clients transfer their instalments directly into our M-Pesa account o Staff still cannot
Slide 17: Update Publication FY2019 Financial Statements
Update Publication FY2019 Financial Statements Update on Publication of our FY2019 Preliminary Financial Statements Ø As noted on 16 April, the FCA and FRC announced temporary relief measures for corporate reporting during the coronavirus crisis § This temporary relief permits listed companies an ex
Slide 18: Cautionary Statement
Cautionary Statement This announcement includes statements that are forward-looking in nature. All statements other than statements of historical fact are capable of interpretation as forward-looking statements. These statements may generally, but not always, be identified by the use of words such a
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