ASA International Group PLC · LSE:ASAI
ASA International — FY2022 Earnings Presentation
26 slides from ASA International's earnings presentation, March 2023
Slide 1: FY 2022 Trading Update
FY 2022 Trading Update ASA International Group plc Dirk Brouwer Karin Kersten Tanwir Rahman Chief Executive Officer Executive Director, Chief Financial Officer Corporate Development
Slide 2: At a glance
At a glance 2,028 2.3m 13.6k USD 351.2m (1) BRANCHES CLIENTS STAFF OLP WHO WE ARE ASA International is one of the worlds' largest microfinance institutions providing socially responsible financial services to low-income, primarily female entrepreneurs across Asia and Africa OUR MISSION Enhance socio
Slide 3: Our community branch model…
Our community branch model… The branch is at the centre of the client group’s ecosystem Decentralised, scalable, standardised and low-cost Target ca 1,300 clients per branch with ~12km radius and 20,000 potential clients Microfinance Lending to individual micro- 279 entrepreneurs with loan dis
Slide 4: …has been rolled out internationally
…has been rolled out internationally South Asia South East Asia West Africa East Africa India Pakistan Sri Lanka Philippines Myanmar Ghana Nigeria Sierra Leone Tanzania Kenya Uganda Rwanda Zambia 2008 2008 2007 2007 2014 2008 2009 2016 2014 2013 2013 2016 2019 Segmental breakdown (1) OLP (2) Branche
Slide 5: We are shifting in sizing of our markets towards Africa
We are shifting in sizing of our markets towards Africa South Asia OLP (USD m) South East Asia OLP (USD m) FY 2022 FY 2021 YoY % change FY 2022 FY 2021 YoY % change 35.8 49.4 +11% India -63% Philippines 96.9 44.6 79.1 13.8 Pakistan +2% Myanmar -22% 77.7 17.7 3.8 Sri Lanka -51% 7.7 West Africa OLP (U
Slide 6: Highlights – trading update FY 2022 (unaudited)
Highlights – trading update FY 2022 (unaudited) Improved operational results in most markets compared to 2021 despite the Clients Branches challenging operating environment especially in India and Myanmar. 2.3m 2,028 Number of clients slightly decreased by 3% to 2.3m compared to FY 2021, impacte
Slide 7: South Asia
South Asia Clients Branches OLP -15% -14% -35% ASA Pakistan continued to grow its business with the number of clients up 18% to 606k, and the number of branches up by 20 to 345. OLP increased from USD 77.7m to USD 79.1m (up 30% on a constant currency basis). PAR>30 increased from 0.2% at year-end
Slide 8: South East Asia
South East Asia Clients Branches OLP +6% +5% +1% Pagasa Philippines’ number of clients increased by 13% to 325k by year-end 2022 and the number of branches went up by 21 to 345 with its loan portfolio also increasing from USD 44.6m at year-end 2021 to USD 49.4m year-end 2022 (up 21% on a constant
Slide 9: West Africa
West Africa Clients Branches OLP -5% +1% -12% ASA Savings & Loans, the Group’s operating subsidiary in Ghana continued to grow with client numbers by 12% to 177k serviced from 137 branches, up by 4 compared to the year-end of 2021. OLP decreased by 16% from USD 48.9m to USD 41.0m (up 38% on a cons
Slide 10: East Africa
East Africa Clients Branches OLP +21% +16% +34% ASA Tanzania significantly expanded its operation as the number of clients went up from 174k to 217k serviced from 180 branches, up by 37. OLP increased from USD 34.3m to USD 51.2m (up 51% on a constant currency basis). PAR>30 improved from 0.5% to 0
Slide 11: Recognition received
Recognition received A few of the awards received in 2022 Ghana ▸ 11th position in the Ghana Club 100 by the Ghana Investment Promotion Center (‘GIPC’), on behalf of the Central Bank. ▸ 1st position in the Non-Bank Financial Sector from the GIPC. Kenya ▸ 32nd position in Kenya on the “FT - Africa’s
Slide 12: December 2022 business update
December 2022 business update Collection efficiency Collection efficiency (‘CE’) COLLECTION EFFICIENCY(1) increased or remained broadly Collection efficiency until 31 December 2022 stable compared to the previous Country Jul/22 Aug/22 Sep/22 Oct/22 Nov/22 Dec/22 months in all countries. India 86%
Slide 13: December 2022 business update (Cont'd)
December 2022 business update (Cont’d) Loan portfolio quality PAR>30 slightly increased from LOAN PORTFOLIO QUALITY 5.2% at year-end 2021 to 5.9% Gross OLP (In USDm) PAR>30 PAR>30 less PAR>180 at year-end 2021, mainly due to Country Oct-22 Nov-22 Dec-22 Oct-22 Nov-22 Dec-22 Oct-22 Nov-22 Dec-22 th
Slide 14: December 2022 business update (Cont'd)
December 2022 business update (Cont’d) Clients and OLP development The Group’s Gross OLP excluding India increased from USD 316.6m in 2021 to USD 322.7m in 2022 despite the impact of substantial currency depreciation in almost all countries. In constant currency, the Gross OLP excluding India grew
Slide 15: Our Growth Strategy 2021 – 2025
Our Growth Strategy 2021 – 2025 Sustainable growth and increased financial inclusion by growing loan portfolio, adding digital financial services and broadening services Increase number Increase loan Grow revenues from Greenfield branches Increase financial of branches and volumes by payments and in
Slide 16: Progress on digitalisation
Progress on digitalisation DFS app, SMP app and CBS software Progress 1. DFS app A digital financial services application with a full financial services experience for smartphone users. 2. SMP app A digital supplier market place to support clients to grow their businesses, by enhancing the logistics
Slide 17: CEO succession as from 15 June 2023
CEO succession as from 15 June 2023 ASA International announced its CEO succession Mr. Dirk Brouwer, Co-Founder and CEO of ASA International Group plc informed the Board of his desire to step aside as CEO for personal reasons after having founded and managed the Company, for the most part together
Slide 18: Performance and outlook
Performance and outlook Summary on performance We are pleased that all but two of our major operating subsidiaries reached or exceeded pre-covid operating performance on a constant currency basis in 2022. The Group’s Gross OLP excluding India, which has had a intentional decrease strategy, incre
Slide 19: Appendix
Appendix
Slide 20: Overview of current licenses
Overview of current licenses We aim to become fully Central Bank regulated, embedded in the local financial community and with the capacity to mobilize deposits Application Pending / Expected to be Made Type of Entity Other for Deposit Taking License India NBFC-MFI(1) South Asia Pakistan Microfinanc
Slide 21: Product portfolio
Product portfolio Loans, deposits and insurance products Loans Repayment of Deposits Insurance(2) Primary instalments Security(1) Small Business / SME Savings India ✓(3) ✓ ✓ South Asia Pakistan ✓ ✓ ✓ Sri Lanka ✓ ✓ ✓ ✓ The Philippines ✓ ✓ ✓ ✓ South East Asia Myanmar ✓ ✓ ✓ ✓ Nigeria ✓ ✓ ✓ ✓ West Afric
Slide 22: The ASA Model
The ASA Model Distinguishing features Group selection High touch client Geographical spread of clients(3) without joint interaction through liability weekly collection(1) Loans granted Ongoing assessment 28% exclusively for income of client needs generating activities and satisfaction 45% Full repay
Slide 23: Loan disbursement and collection
Loan disbursement and collection Disbursement of Repayment of Disbursement of Group meeting loan instalments larger loans Disbursement in-branch Weekly(1) Group meetings offer “Graduation principle”: efficient collection larger loans provided only Initial loan determined, Proximity to gr
Slide 24: Our investment proposition
Our investment proposition ASA International is one of the world’s largest international microfinance institutions providing socially responsible loans to low-income female entrepreneurs across Asia and Africa Socially responsible lender committed Experienced management team Emerging market exposure
Slide 25: Questions?
CREATING HOPE. CHANGING FORTUNES. Questions?
Slide 26: Legal Disclaimer
Legal Disclaimer IMPORTANT: You must read the following disclaimer presentation is not to be relied upon in any manner as To the extent available, the industry, market and before continuing. The following applies to this legal, tax or any other advice and shall not be used in competitive positio
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