Fawry For Banking Technology And Electronic Payment · EGX:FWRY

Fawry For Banking Technology And Electronic Payment — Q4 2022 Earnings Presentation

27 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Mar 14, 2023

  1. Slide 1: Q4 2022 Earnings Call

    Q4 2022 Earnings Call March 14, 2023 1

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document is proprietary and confidential to Fawry For Banking Technology And Electronic Payment S.A.E (“Fawry”). You must only use such information for the purposes of discussions with Fawry and you must hold such information in strict confidence and not

  3. Slide 3: Agenda

    AGENDA 4Q 2022 Operating & financial results 01 Dive into FY 2022 results 02 Capex investments & digital growth 03 FY 2023 guidance 04 Q&A 05 3

  4. Slide 4: 4Q22 Operating & Financial Results Highlights

    4Q22 Operating & Financial Results Highlights 4

  5. Slide 5: Growth across all operational KPIs continues…

    Growth across all operational KPIs continues… Active customers + 22% Total POS + 4% Number of Total transactions Avg transaction (Mn) (000) Services + 39% +17% (Mn) Value + 33% (EGP) 280 2,269 178 349 49 41 134 1,634 269 299 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 5

  6. Slide 6: …driving triple digit growth on the bottom line

    …driving triple digit growth on the bottom line Throughput + 55% Revenue + 39% EBITDA + 79% Adj. net proft¹ 240% (EGP Bn) (EGP Mn) 651 (EGP Mn) (EGP Mn) 62 237 137 467 40 132 40 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 Total revenue excluding airtime would have grown by 48% y-o-y, as airtime grew by

  7. Slide 7: Sustained growth in throughput, with FY 2022 figure breaking the EGP 200bn mark

    Sustained growth in throughput, with FY 2022 figure breaking the EGP 200bn mark Quarterly throughput +55% (EGP Bn) 62 55 47 40 41 36 30 24 25 22 20 15 15 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 7

  8. Slide 8: …fueling double digit top-line growth, inline with guidance

    …fueling double digit top-line growth, inline with guidance Quarterly revenues +39% (EGP Mn) 651 614 531 467 483 448 394 343 342 349 291 269 258 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 8

  9. Slide 9: …while diversifying revenue

    …while diversifying revenue Revenue contribution by quarter Contribution to y-o-y growth for 4Q22 1% 3% 2% 3% 2% 6% 5% 6% 6% 6% 9% 10% 11% 11% 12% 3% 8% 13% 29% 32% 32% 33% 36% 21% 56% 51% 49% 48% 44% 55% 4Q21 1Q22 2Q22 3Q22 4Q22 ADP Banking services Microfinance Supply Chain Solutions Others 9

  10. Slide 10: …Leading to GP and EBITDA margins improvement

    …Leading to GP and EBITDA margins improvement +7.2% 59.6% 62.7% 55.6% 56.2% 57.5% 55.5% 57.7% 58.0% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 +8.0% 36.3% 30.9% 30.5% 29.1% 29.1% 28.3% 28.1% 26.2% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 10

  11. Slide 11: Dive into FY 2022 figures

    Dive into FY 2022 figures 11

  12. Slide 12: ADP achieving sustainable growth on utilities and other industries

    ADP achieving sustainable growth on utilities and other industries ADP throughput ADP revenue Contribution to ADP value (EGP Mn) revenue growth +10% +18% 1,085 23% 28% Telecom ADSL Utilities 985 Others 11% 38% FY 21 FY 22 FY 21 FY 22 12

  13. Slide 13: Acceptance almost doubling, while agent banking services growing by high double-digit growth

    Acceptance almost doubling, while agent banking services growing by high double-digit growth Acceptance revenue Agent Banking revenue (EGP Mn) (EGP Mn) +80% +92% 440 321 244 167 FY 21 FY 22 FY 21 FY 22 13

  14. Slide 14: Instore acceptance grows by more than 2x

    Instore acceptance grows by more than 2x Revenue from instore Acceptance enabled POS Revenue from online Acceptance (‘000) acceptance +137% +26% +77% 235 186 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 14

  15. Slide 15: Microfinance: Business Developments & Earnings Highlights

    Microfinance: Business Developments & Earnings Highlights • Credit limits still at EGP 200k Loan portfolio Microfinance revenue (EGP Mn) (EGP Mn) • Avg. ticket size grew by 25.7% y-o-y, while number of loans grew by 42% y-o-y +78% +83% • EGP 966 Mn disbursed over 29.9 k loans in 777 251 FY 2022 • Av

  16. Slide 16: Microfinance: Portfolio quality & Earnings Highlights

    Microfinance: Portfolio quality & Earnings Highlights Number of months after disbursement PAR30, % (avg by years) 3.0% 2.5% 2.0% 1.5% 1.4% 1.1% 1.2% 1.0% 0.9% 0.6% 0.5% 0.4% 0.2% 0.0% 0.1% 0.0% 0.0% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2019 2020 2021 2022 16

  17. Slide 17: Supply Chain performance

    Supply Chain performance Supply chain throughput Supply chain revenue (EGP Mn) +31% +51% 129 98 FY 21 FY 22 FY 21 FY 22 17

  18. Slide 18: Expenses are normalizing with a decline in y-o-y increase, leading to a stable EBITDA margin

    Expenses are normalizing with a decline in y-o-y increase, leading to a stable EBITDA margin y-o-y increase 73% 61% 61% 55% 47% 38% 47% 37% 2% HR Selling and marketing Other G&A FY 20 FY 21 FY 22 EBITDA margin 31.6% 30.6% 30.6% FY 20 FY 21 FY 22 18

  19. Slide 19: Capex Investments & Digital growth

    Capex Investments & Digital growth 19

  20. Slide 20: Investments in PoS, software license & programs continue to contribute to majority of capex

    Investments in PoS, software license & programs continue to contribute to majority of capex Capex in 2022 (20% of revenue) 184 169 34 31 26 23 PoS terminals Software license & Network & servers Leasehold improvments Others Buildings programs 20

  21. Slide 21: myFawry prepaid card launch, to cater for financial inclusion and growth over digital channels

    myFawry prepaid card launch, to cater for financial inclusion and growth over digital channels myFawry cumulative downloads 3.8 Launched myFawry prepaid cards in 1Q23, lending business EGP Bn 9,000,000 8,000,000 to follow Annualized Dec 22 7,000,000 throughput 6,000,000 Fawry aims to offer all finan

  22. Slide 22: Growing digital transactions activity

    Growing digital transactions activity Mobile Wallet¹ Transactions Mobile Wallet¹ Processed Value Total digital 2 Transactions Total Transactions (Mn) (EGP Bn) (Mn) (Mn) +63% +123% +57% +14% 171 1,315 109 1,158 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 FY 21 FY 22 1 These figures reflect total processed va

  23. Slide 23: FY 2023 Guidance

    Qe M\\ \\ SQ We uidance

  24. Slide 24: Revenue growth guidance by offering…

    Revenue growth guidance by offering… Revenue growth by offering 275% 254% 234% 144% 104% 92% 91% 89%83% 80% 66% 65% 64% 57% 50% 42% 25% 31%31% 9% 10% 11% 15% 8% ADP Acceptance Agent Banking FMF Cash management/ Others SC 2020A 2021A 2022A 2023P 24

  25. Slide 25: Inline with the diversification strategy

    Inline with the diversification strategy 1% 2% 2% 4% 6% 6% 6% 5% 6% 8% 11% 10% 13% 4% 15% 19% 10% 21% 14% 17% 73% 59% 48% 39% 2020A 2021A 2022A 2023P ADP Acceptance Agent Banking FMF Cash management/ SC Others 25

  26. Slide 26: EBITDA margin to grow by 2ppt, while capex to remain at 20% of revenue

    EBITDA margin to grow by 2ppt, while capex to remain at 20% of revenue Revenue y-o-y growth EBITDA margins 40% 32.8% 37% 36% 34% 31.6% 30.6% 30.6% 2020A 2021A 2022A 2023P 2020A 2021A 2022A 2023P ESOP expense in EGP mn Capex to sales 131 99 23% 20% 20% 52 16% 2021A 2022A 2023P 2020A 2021A 2022A 2023P

  27. Slide 27: Q&A

    Q&A 27

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