ASA International Group PLC · LSE:ASAI
ASA International — H1 2019 Earnings Presentation
27 slides from ASA International's earnings presentation, Sep 23, 2019
Slide 1: H1 2019 Results Presentation
H1 2019 RESULTS PRESENTATION ASA International Group PLC 23 September 2019 Dirk Brouwer Chief Executive Officer Tanwir Rahman Chief Financial Officer Aminur Rashid Executive Director Operations
Slide 2: Dirk Brouwer, Chief Executive Officer
DIRK BROUWER Chief Executive Officer
Slide 3: Highlights – H1 2019
Highlights – H1 2019 Trading and outlook broadly in line with expectations Solid OLP growth of 21% YoY (29% on constant currency basis, USD 447mn translated at end of June 2018 fx rates), driven by: - a strong branch and client growth in key markets in South Asia and South East Asia, - faster growth
Slide 4: Solid operational progress broadly in line with expectations
Solid operational progress broadly in line with expectations With consistently strong margins, supported by best-in-class asset quality Constant USDm H12019 FY2018 H12018 YoY currency Number of Clients 2,313 2,174 2,012 15% (‘000s) Number of Branches 1,812 1,665 1,557 16% Average OLP / client 181 17
Slide 5: Our strategy
Our strategy Increase financial inclusion through sustainable growth of loan portfolio GROW LOAN PORTFOLIO Increase Gradually increase Open new Gradual expansion AND EXPAND number of volume of loans branches in of geographical GEOGRAPHIC clients per per client existing countries footprint in new FOO
Slide 6: Tanwir Rahman, Chief Financial Officer
TANWIR RAHMAN Chief Financial Officer
Slide 7: Continued growth at all levels
Continued growth at all levels # OF BRANCHES # OF CLIENTS (M) YoY(1): 16% YoY : 15% H12019 1,812 H12019 2,3 FY2018 1,665 FY2018 2,2 H12018 1,557 H12018 2,0 OLP (USD M) NORMALISED NET PROFIT (USD M)(2) YoY : 21% (29% on constant currency basis) YoY : -2% (8% on constant currency basis) OLP (USD m) Ro
Slide 8: Robust asset quality & healthy margins
Robust asset quality & healthy margins OLP AND PAR > 30DPD(1) GROSS YIELD, COST OF FUNDING AND NET 0.4% 0.6% 1.0% INTEREST MARGIN Loan portfolio quality 419.5 decreases slightly with 378.5 33,4% 32,9% 33,8% PAR>30 at 1.0% 347.4 Net interest margin continues 25,7% 25,4% 25,5% to grow as result of
Slide 9: Strong funding profile with disciplined ALM
Strong funding profile with disciplined ALM FUNDING BREAKDOWN(1) Favourable maturity profile with long-term funding of typically up to 5 years, compared to 460.4 431.5 average client loan tenor of 6-12 months at 417.4 69,4 56,0 64,0 issuance Funding from international lenders (inter alia Gates F
Slide 10: Aminur Rashid, Executive Director Operations
AMINUR RASHID Executive Director Operations
Slide 11: Diversification strengthens the group's risk profile
Diversification strengthens the group’s risk profile # of Clients OLP(1) South Asia % Loans RoAA 2.0 2.2 2.3 347.4 378.5 419.5 56% 6.5% East Africa East Africa East Africa East Africa 7.1% East Africa 8.7% East Africa South East Asia 9.6% 11.1% 12.7% 9.8% West Africa West Africa West Africa West Afr
Slide 12: Regulatory update
Regulatory update Aim to become fully Central Bank regulated, embedded in local financial community and with the capacity to mobilize deposits Pakistan – The updated microfinance bank application is under final review by the State Bank of Pakistan Sri Lanka – An interest rate cap of 35% was introduc
Slide 13: Questions?
CREATING HOPE. CHANGING a QUESTIONS? or Sd é cS
Slide 14: Income statement
Income statement USD millions H1 2019 FY 2018 H1 2018 Interest and Similar Income 77.7 141.4 66.9 Interest and Similar Expense (18.4) (31.9) (16.1) Net Interest Income 59.2 109.5 50.8 Other Operating income 6.0 9.9 4.7 Total Operating Income 65.2 119.5 55.5 Credit Loss Expense (0.6) (1.6) (0.5) Impa
Slide 15: Balance sheet
Balance sheet USD millions H1 2019 FY 2018 H1 2018 Cash at bank and in hand 74.7 72.9 92.5 Loans and advances to customers 374.9 343.1 316.3 Due from banks 39.2 37.6 17.3 Equity Investments at FVOCI 0.3 0.2 0.2 Property and equipment 4.9 4.5 4.1 Right-of-use assets 5.6 - - Deferred tax assets 3.2 2.
Slide 16: Breakdown of operating segment financials
Breakdown of operating segment financials As at 30 June 2019 in West Africa East Africa South Asia South East Asia USD millions External interest and similar income 21.5 10.7 30.1 15.4 Inter-segment interest income - - - 0.0 External interest expense (1.9) (1.3) (11.1) (2.6) Inter-segment interest i
Slide 17: Overview of Segments
Overview of Segments South Asia South East Asia West Africa East Africa Sierra India Pakistan Sri Lanka Philippines Myanmar Ghana Nigeria Tanzania Kenya Uganda Rwanda Zambia Leone 2008 2008 2007 2007 2014 2008 2009 2016 2014 2013 2013 2016 2019 Segmental breakdown OLP (1) Branches Clients 10% 16% 13
Slide 18: South Asia
South Asia ((As at 30 June 2019, unless India Pakistan Sri Lanka otherwise stated) ASA International India Name of Entity ASA Pakistan Ltd Lak Jaya Micro Finance Ltd. Microfinance Private Limited Deposit Taking Microfinance Type NBFC(1) Lending Company(2) Company(3) Securities and Exchange Regulator
Slide 19: South East Asia
South East Asia (As at 30 June 2019, unless Philippines Myanmar otherwise stated) Name of Entity Pagasa Philippines Lending Co. Inc. ASA Microfinance (Myanmar) Ltd. Type Finance Company Deposit Taking Microfinance Institution(1) Security and Exchange Commission Financial Regulatory Department Regula
Slide 20: West Africa
West Africa (As at 30 June 2019, unless Nigeria Ghana Sierra Leone otherwise stated) Association for Social ASA Microfinance Improvement and Economic Name of Entity ASA Savings & Loans Ltd (Sierra Leone) Ltd. Advancement and ASHA Microfinance Bank Ltd Deposit Taking NGO and Deposit Taking Savings an
Slide 21: East Africa
East Africa (As at 30 June 2019, Tanzania Uganda Kenya Rwanda Zambia unless otherwise stated) Name of Entity ASA Microfinance ASA Microfinance ASA Microfinance ASA Microfinance ASA Limited (Tanzania) Ltd. (Uganda) Ltd. (Rwanda) Ltd. (Zambia) Ltd. Deposit Taking Type Lending Lending Company Lending C
Slide 22: Summary of medium term targets
Summary of medium term targets KEY OPERATIONAL TARGETS BRANCH GROWTH USD EARNINGS GROWTH ~12% CAGR 20-25% YoY NIM(1) OLP / CLIENT > 20% RoAA ~250USD > 7% by 2022E COST / INCOME CLIENTS / BRANCH Mid-40s RoAE ~1,600 >30% PAR > 30 DEBT / LOANS Remain Low DIVIDEND PAYOUT RATIO ~70% 30% (% prior year net
Slide 23: Who we are
Who we are 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 Proven microfinance institution with Unique emerging market exposure Scalable model with replicable a rich
Slide 24: Our socially responsible business model
Our socially responsible business model The branch is the centre of the Decentralised, scalable, standardised and low-cost Group’s ecosystem Target ~1,500(1) clients per branch with ~12km radius and 20,000 target demographic Income generating investments Lending to individual micro- Avg. disbursemen
Slide 25: Strengths of the ASA model
Strengths of the ASA model A rich heritage ASA International has internationally exported the ASA Model of microfinance Group selection High touch client developed by without joint interaction through ASA NGO Bangladesh liability weekly collection(2) ASA NGO Bangladesh was established by Md. Shafiqu
Slide 26: Management team
Management team Number of years of experience in the microfinance sector # Dirk Brouwer Tanwir Rahman Azim Hossain Chief Executive Officer Chief Financial Officer Director Investments, Treasury and Risk Co-Founder and CFO of ASAI since July Management Executive Director of 2017. Finance Director ASA
Slide 27: Legal Disclaimer
Legal Disclaimer IMPORTANT: You must read the following disclaimer substitution for the exercise of independent judgment and that the data contained therein have been obtained from before continuing. The following applies to this document, each person made aware of the information set-forth here sou
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