Fino Payments Bank Ltd. · NSE:FINOPB
Fino Payments Bank — Q3 FY2023 Earnings Presentation
49 slides from Fino Payments Bank's earnings presentation, Feb 2, 2023
Slide 1: Exchange filing cover letter
February 02, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra - Kurla Complex, Dalal Street, Mumbai- 400 001 Bandra (E), Mumbai - 400 051 (
Slide 2: Q3 / 9M FY23 Investor Presentation
Classification: Internal Q3 / 9M FY23 Investor Presentation 2nd Feb 2023 Classification: Internal Classified by: Gaurav Barmera
Slide 3: Table of Contents
Classification: Internal Table of Contents Financial Highlights Overview Q3FY23/9MFY23 Financial Performance Revenue Mix Across Products Product Portfolio Key Focus Area Outlook Q3FY23/9MFY23 Performance Update Product Strategy and Performance Trends Business Verticals Highlights Business Model Unde
Slide 4: Financial Performance
Classification: Internal FINANCIAL PERFORMANCE Classification: Internal Classified by: Gaurav Barmera 3
Slide 5: Key Highlights: Q3'23 / 9M'23
Classification: Internal KEY HIGHLIGHTS : Q3’23 / 9M’23 Highest profitable 32% Net Revenue Performance Highlight quarter – 19.1 Cr Margin o Revenue grew YoY by 25% in 9M’23 and 14% in Q3’23 o EBITDA margin grew from 10.1% in Q2’23 to 12.4% in Q3’23 o PAT Margin improved by 33% from 4.6% in Q2’23 to
Slide 6: 9M FY23 > Full Year 2022
Classification: Internal 9M FY 23 > Full Year 2022 CASA account opened (in Lacs) CMS Throughput (in Cr) EBDITA (in Cr) 21.4 32,883 93.0 20.2 23,886 84.4 FY22 9MFY23 FY22 9MFY23 FY22 9MFY23 CASA revenue (in Cr) Digital Throughput (in Cr) PAT (in Cr) 47.6 27.4 33,346 42.7 43.0 63.7 64.2 18,393 FY22 9M
Slide 7: Bank Level Profit & Loss
Bank Level Profit & Loss Classification: Internal Q3FY23 PAT growth of 38% QoQ as operating leverage continues… Particulars Q3FY23 Q2FY23 Q3FY22 QoQ (%) YoY (%) 9MFY23 9MFY22 YoY (%) (INR Cr) Revenue 314.1 303.3 275.2 3.6% 14.2% 906.5 723.6 25.3% Product Cost 213.3 209.5 188.9 1.8% 12.9% 624.3 485.1
Slide 8: Revenue and EBITDA – Growth
Classification: Internal Revenue and EBITDA – Growth Revenue (INR Cr) +21% +27% +17% CAGR CAGR CAGR 1,009 906.5 314.1 791 723.6 275.2 691 228.7 559.2 FY20 FY21 FY22 9 M FY 21 9 M FY 22 9 M FY 23 Q3FY21 Q3FY22 Q3FY23 EBITDA (INR Cr) -ive to +57% +66% +ive CAGR CAGR 84.4 93.0 38.9 52.0 55.0 25.9 37.7
Slide 9: PAT and Cost-Income
Classification: Internal PAT and Cost-Income PAT (INR Cr) -ive to +83% +71% +ive CAGR CAGR 42.7 43.0 19.1 20.5 25.1 14.1 (4.6%) 2.6% 4.2% 12.9 6.5 2.3% 3.5% 4.7% 2.9% 5.1% 6.1% (32.1) FY20 FY21 FY22 9MFY21 9MFY22 9MFY23 Q3FY21 Q3FY22 Q3FY23 Cost-Income (%) 8.7% 6.4% 2.0% 28.0% 37.0% 32.8% 26.2% 31.4
Slide 10: Throughput – Growth
Classification: Internal Throughput – Growth Full year FY’22 throughput achieved in 9 months of FY’23 (INR cr) +41% +41% +31% CAGR CAGR CAGR 1,87,311 187,261 65,925 1,32,931 1,34,043 49,168 94,453 38,153 94,507 FY20 FY21 FY22 9 M FY21 9 M FY 22 9 M FY 23 Q3FY21 Q3FY22 Q3FY23 Digital Throughput grows
Slide 11: Revenue Mix Across Products: Q3FY23 and 9MFY23
Classification: Internal Revenue Mix Across Products : Q3FY23 and 9MFY23 Q3FY22 v/s Q3FY23 9MFY22 v/s 9MFY23 906.5 9%, 85.1 314.1 10%, 89.8 11%, 33.3 723.6 275.2 5%, 33.9 5%, 14.4 9%, 28.8 16%, 119.5 13%, 36.9 35%, 318.8 34%, 106.9 39%, 105.9 35%, 251.7 11%, 98.1 10%, 30.3 10%, 73.4 10%, 90.4 9%, 25
Slide 12: Product Portfolio: Diversified Offerings to meet Various Customer Needs
Classification: Internal Product Portfolio: Diversified Offerings to meet Various Customer Needs Product Q3FY23 Revenue Q3FY23 9MFY23 Revenue 9MFY23 (INR Cr); Margins Drivers (INR Cr); Margins YoY Growth YoY Growth 54 58% High growth high margin; customer 150 58% CASA 81% ownership; path to annuity
Slide 13: Key Focus Area: CASA
Classification: Internal Key Focus Area : CASA CASA Renewal Revenue No. of CASA Accounts (in lacs) Accounts Opened per Day Growth - (INR Cr ) 47.6 21.4 7,770 13.5 4,918 8.3 3,011 16.8 4.5 9MFY21 9MFY22 9MFY23 9MFY21 9MFY22 9MFY23 9MFY21 9MFY22 9MFY23 One account opened in every 10 seconds in Q3FY23
Slide 14: Key Focus Area: CMS (1/2)
Classification: Internal Key Focus Area : CMS (1/2) Number of CMS Clients Throughput (INR Cr) Avg. Revenue Per Txn (INR) 32,883 172 121 127 91 68 16,021 77 7,318 9MFY21 9MFY22 9MFY23 9MFY21 9MFY22 9MFY23 9MFY21 9MFY22 9MFY23 Throughput doubled in FY22 & on course 9MFY23 throughput surpassed overall
Slide 15: Key Focus Area: CMS (2/2)
Key Focus Area : CMS (2/2) Classification: Internal Accelerated growth path helped by aggressive partner on-boarding (in ₹ cr) Throughput (in ₹ cr) Revenue Take Rate 13,248 29.3 24.2 9,171 20.9 0.29% 0.27% 0.28% 18.1 0.24% 0.23% 10,464 14.3 0.22% 6,074 12.9 13.0 4,558 7,864 10.3 11.4 0.24% 0.25% 3,8
Slide 16: Strong Growth Outlook
Classification: Internal Strong Growth Outlook Maintain Revenue Growth on back of enhancing distribution network – aiming 2 million merchants Transaction Business Monetisation to Customer Ownership – aiming 20 million customers Operating leverage key contributor to PAT margins. Opportunity to levera
Slide 17: Annexures
Classification: Internal ANNEXURES Classification: Internal Classified by: Gaurav Barmera 16
Slide 18: Q3 / 9M FY23 – Detailed Analysis
Classification: Internal Q3 / 9M FY23 – Detailed Analysis Classification: Internal Classified by: Gaurav Barmera 17
Slide 19: Industry Leading Performance Highlights in Q3FY23
Industry Leading Performance Highlights in Q3FY23 Classification: Internal Demonstrating strong growth in business volumes, revenue, and profitability 32.3 Cr ₹ 65.9k Cr 13.0 lac 7.6 Lacs Transactions on Fino platforms Total Throughput Registered merchants on Fino Accounts Opened 73 % 34 % 50 % 46 %
Slide 20: Industry Leading Performance Highlights in 9MFY23
Industry Leading Performance Highlights in 9MFY23 Classification: Internal Demonstrating strong growth in business volumes, revenue, and profitability 85.8 Cr ₹ 1.87 Lakh Cr 13.0 lac 21.4 Lacs Transactions on Fino platforms Total Throughput Registered merchants on Fino Accounts Opened 87 % 40 % 50 %
Slide 21: Overall PAT & ROE
Classification: Internal Overall PAT & ROE (in ₹ cr) Profit After Tax 19.1 PAT for Q3FY23 at 17.6 ₹ 19.1 Cr 7.6 14.1 10.1 13.8 6.5 7.9 36% growth over Q3FY22 4.5 3.1 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Return on Equity 20.7% 20.0% 18.7% 17.7% Annualized ROE of Q3FY2
Slide 22: Product Strategy & Performance Trends
Classification: Internal Product Strategy & Performance Trends Classification: Internal Classified by: Gaurav Barmera 21
Slide 23: CASA and Debit Card
CASA and Debit Card Classification: Internal Subscription based account opening now unlocking the potential of annuity through renewals Renewal income growth in Q3FY23 was 138% YOY leading to an exponential growth in our annuity Revenue (INR Crore) business 22.2 Accounts opened in Q3FY23 is 7.6 lacs
Slide 24: Cash Management Services
Cash Management Services Classification: Internal Strong potential of cash digitization in India continues to reflect on sustained growth in CMS Throughput doubled YOY to grow 118% in Q3FY23 Revenue (INR Crore) No. of partners on CMS up from 161 as on 30th September 2022 to 172 as on 31st 29.3 Decem
Slide 25: AEPS
AEPS Classification: Internal Demonstrating robust growth in a faster growing market in the cash withdrawal space The AEPS industry was almost 5x the size of micro-ATM industry in Q3FY23 Revenue (INR Crore) The AEPS industry grew by 8 % YoY in Q3FY23 wherein the throughput of Fino 30.3 ecosystem gre
Slide 26: Micro-ATM
Micro-ATM Classification: Internal Mainstay for Customer Acquisition Continue to be the dominant player in the Industry - Cumulative market share of Revenue (INR Crore) Top 5 players at 81 % as of December’22 – Fino’s share in Micro-ATMs is more than that of the top banks like HDFC Bank, SBI, Kotak
Slide 27: Remittance
Remittance Classification: Internal The primary hook product in Fino’s ecosystem Revenue (INR Crore) Remittance is the hook product that attracts footfall into the Fino ecosystem 105.9 106.9 Fino is one of the early movers in the remittance product and is still a market leader Transaction count grew
Slide 28: Fino Business Model
Classification: Internal FINO BUSINESS MODEL Classification: Internal Classified by: Gaurav Barmera 27
Slide 29: Business Model of Fino Payments Bank
Business Model of Fino Payments Bank Classification: Internal Moving Customers up the Fintech Value Chain Level 4 o Significant trust equity built Engagement o Digital native customers have better renewal prospects and a strong future potential for upsell and cross sell Online Payments Level 3 o Com
Slide 30: Strong Progress Over Last 5 Years
Strong Progress Over Last 5 Years Classification: Internal Momentum Continues Products Launched Combined Merchant Network 2022 Aadhar-Pay, Go digit shopkeeper’s policy, Physical Passbook, Credit card bill payment 9MFY23 13.0 2021 Minor Savings Accounts, Diversified CMS partners, Merchant loan referr
Slide 31: Expanding Reach: Growing Distribution Network
Classification: Internal Expanding Reach: Growing Distribution Network TOTAL MERCHANTS MERCHANT COUNT HEAT-MAP 13,01,116 12,24,943 11,42,061 10,20,437 8,66,034 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Merchant Count As on 31.12.2022 YoY Growth Total Merchants 13,01,116 50.2 % Own Channel Merchants 6,11,84
Slide 32: Understanding Fino's Products
Classification: Internal Understanding Fino’s Products Classification: Internal Classified by: Gaurav Barmera 31
Slide 33: CASA - Physical (1/2)
Classification: Internal CASA - Physical (1/2) Defining the problem statement, customer segment, potential and market size opportunity Use Case: A bank branch in tier 3 and below city is generally very crowded and is far away. It is also open during limited banking hours on weekdays. Through Fino Ba
Slide 34: CASA - Physical (2/2)
Classification: Internal CASA - Physical (2/2) Understanding the process flow of an account opening Fino Merchant Portal 2 Revenue source Subscription Fee Merchant charged to Customer 1 3 1 Customer approaches a merchant for account opening Customer 2 Merchant seeks various customer details and ente
Slide 35: CASA - Digital Account Opening 1/3
Classification: Internal CASA - Digital Account Opening 1/3 Open FinoPay App & choose Insert Mobile number and Insert Aadhar & PAN Insert OTP Digital A/c Opening Email ID numbers Classification: Internal Classified by: Gaurav Barmera 34
Slide 36: CASA - Digital Account Opening 2/3
Classification: Internal CASA - Digital Account Opening 2/3 Insert OTP for Aadhar Insert Basic & General Check Aadhar and PAN Check General Information Authentication Customer Information Information Provided Provided Classification: Internal Classified by: Gaurav Barmera 35
Slide 37: CASA - Digital Account Opening 3/3
Classification: Internal CASA - Digital Account Opening 3/3 Select the Debit Card as per Congratulations! Your Fino Deposit the amount in your Congratulations! your requirement & Verify Account is opened account account has been funded Classification: Internal Classified by: Gaurav Barmera 36
Slide 38: Digital Marketing Push
Classification: Internal Digital Marketing Push Classification: Internal Classified by: Gaurav Barmera 37
Slide 39: Cash Management Services (1/2)
Classification: Internal Cash Management Services (1/2) Defining the problem statement, customer segment, potential and Fino’s business value Use Case: Companies which collect cash from their customers need to deposit the same at a bank branch for money in the account. They do the same at a nearest
Slide 40: Cash Management Services (2/2)
Classification: Internal Cash Management Services (2/2) Understanding the process flow of a CMS transaction 3 Revenue source 2 Merchant Account with Fino Bank Fee Income from B2B partners Customer’s bank account Merchant 1 1 Delivery agent/ collection agent/ customer visits merchant point with cash
Slide 41: Micro-ATM (1/2)
Classification: Internal Micro-ATM (1/2) Defining problem statement, customer segment, potential and Fino’s business volume and value Use Case: Beyond the metro and tier 1 cities, ATM penetration is low. Customers have to travel a distance to withdraw cash. The genesis of micro- ATM is to facilitate
Slide 42: Micro-ATM (2/2)
Classification: Internal Micro-ATM (2/2) Understanding the process flow of an MATM transaction 3 Merchant Account with 2 Fino Bank Customer’s bank account 4 Merchant 1 1 Customer shares his debit card to the merchant 5 Merchant inserts the card in his/ her micro-ATM handheld device – 2 device is con
Slide 43: AEPS (1/2)
Classification: Internal AEPS (1/2) Defining problem statement, customer segment, potential, market size and Fino’s business value Use Case: Customers often don’t carry their ATM cards with them. Many at the bottom of the pyramid may not even have an ATM card. Most ATM kiosks will not be suitable fo
Slide 44: AEPS (2/2)
Classification: Internal AEPS (2/2) Understanding the process flow of an AEPS transaction 3 Merchant Account with 2 Fino Bank Customer’s bank account 4 Merchant 1 1 Customer gives his fingerprint on bio-authentication device of the merchant 5 2 The device is connected to network and also to the merc
Slide 45: Remittance (1/2)
Classification: Internal Remittance (1/2) Defining problem statement, customer segment, potential, market size and Fino’s business value Use Case: Customers having cash with them can visit a merchant point to transfer the same to a bank account on the beneficiary side. Remittance is essentially a ca
Slide 46: Remittance (2/2)
Classification: Internal Remittance (2/2) Understanding the process flow of a remittance transaction 3 Merchant Credit in Account with beneficiary 2 Fino Bank bank account Merchant 1 Customer pays cash to the merchant for transfer to beneficiary account – separate charges for transaction is also pai
Slide 47: Open Banking Platform (1/2)
Classification: Internal Open Banking Platform (1/2) Defining the problem statement, customer segment, potential and market size opportunity Use Case: Fintech players offering various payment products require a bank at the back-end to process a transaction. Being a bank, Fino can offer its technolog
Slide 48: Open Banking Platform (2/2)
Classification: Internal Open Banking Platform (2/2) Understanding the process flow of a remittance transaction 1 2 3 Customer of Open Merchant of Open Open Banking Fino’s Technology Banking partner Banking partner partner Platform 1 Customers visit the merchant points of the Open Banking partner (A
Slide 49: Thank You
Classification: Internal Thank You Classification: Internal Classified by: Gaurav Barmera 48