Africa Prudential Plc · NSENG:AFRIPRUD
Africa Prudential — H1 2020 Earnings Presentation
33 slides from Africa Prudential's earnings presentation, October 2020
Slide 1: Presentation to Investors & Analysts
Presentation to Investors & Analysts HY 2020 Presentation
Slide 2: Disclaimer
Disclaimer • From time to time, Africa Prudential Plc (“Afriprud”) or the (“Company”) make written and/or oral forward-looking statements in presentations (including this presentation) and other communication. In addition, representatives of the Company may make forward-looking statements orally to
Slide 3: Presentation Outline
Presentation Outline • Company Overview • Operating Environment • Financial Review • Digital Technology • Outlook • Appendix HY 2020 Presentation
Slide 4: Overview
OVERVIEW HY 2020 Presentation
Slide 5: Overview
Overview Transforming the African continent through innovative solutions, superior investor relations and business support services. 600,000 + Aggregate lives on Listed on the Nigerian Stock Exchange EasyCoop Automated Cooperative 10million + Management Solution. User-Capacity Platform. with over 25
Slide 6: Our Journey So Far
Our Journey So Far 1970 2013 2017 2020-2021 Business Business Company Birth Name Change Transformation Expansion • Started as a department of • We changed business name to Change of name and rebrand • Expand digital legacy United Bank for Africa Africa Prudential Registrars Plc. to Africa Prudential
Slide 7: Our Competitive Advantage
Our Competitive Advantage Technology Support • Our activities are geared towards leveraging technology to create superior value and transform customer experience across our businesses. • To this end, our processes are technology- Management Team driven for effective and efficient service delivery. E
Slide 8: Operating Environment
OPERATING ENVIRONMENT HY 2020 Presentation
Slide 9: Snapshot
Snapshot Challenging Macroeconomic Environment Capital Market Activities gains momentum • The impact of the Covid-19 pandemic is expected to •Corporate issuances of CPs and Bonds has taken impact growth performance negatively in Q2 2020 as the the centre stage in a bid to raise fresh capital to Gove
Slide 10: The World in COVID-19 Era
The World in COVID-19 Era Confirmed Positive Cases of COVID-19 Infection around the World • Since April 23rd 2020, the number of confirmed cases of COVID-19 infections around the world has grown exponentially from about 2 million people infected to more than 11 million people with 500,000+ deaths an
Slide 11: COVID-19 and Nigerian Economy
COVID-19 and Nigerian Economy • Since the first COVID-19 case was reported in Nigeria back in February, the rate of spread has grown exponentially as Government Authorities ramp up testing capacity. As a July 9th, Nigeria has recorded 30,000+ positive cases with 12,000+ recovered and 600+ deaths. •
Slide 12: Our Business and COVID-19
Our Business and COVID-19 Challenges Encountered Effect of COVID-19 Pandemic Impact on Portfolio Investment Our response in this regard includes: 1. We are leveraging on our technology drive to automate our processes, providing more digital channels to Our Response in this regards include: deploy ou
Slide 13: Key Macro Indicators: GDP, Oil Output, Inflation
Key Macro Indicators Inflation Rate GDP Growth vs Oil Output 16% 3.00% 2.1 14% 2.05 2.50% 12% Crude Oil Production (mbpd) 2 10% 2.00% GDP growth rate 1.95 8% 1.50% 1.9 6% 1.85 4% 1.00% 1.8 2% 0.50% 1.75 0% 0.00% 1.7 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Food Inflation Core I
Slide 14: Key Macro Indicators: Foreign Reserves, Interest Rates
Key Macro Indicators Foreign Reserves vs Crude oil Interest Rates 80 50 14% 14.5% 45 70 12% 40 14.0% 60 35 10% Foreign Reserves Crude Oil Prices 13.5% 50 30 8% 40 25 T-Bills MPR 13.0% 6% 20 30 12.5% 15 4% 20 10 12.0% 10 2% 5 0 - 0% 11.5% Brent Crude ($ pb) WTI Crude ($ pb) Foreign Reserve ($ bn) T-B
Slide 15: Financial Review
FINANCIAL REVIEW HY 2020 Presentation
Slide 16: Financial Review
Financial Review HY ‘20 HY ‘19 Income Statement Change (%) (₦’ mn) (₦’ mn) Gross Earnings 1,873 2,010 -7 Revenue from Contracts 591 870 -32 Interest Income 1,282 1,140 +12 Operating Expenses 680 721 -6 Profit Before Tax 1,217 1,210 +1 Profit After Tax 1,083 1,028 +5 HY ‘20 FY ‘19 Statement of Financ
Slide 17: Half Year Income Review
Half Year Income Review Gross Earnings (₦ 'mn) Profit Before Tax (₦ 'mn) • For the half year period ended June 2020, Gross earnings reduced by 7% due to a 32% reduction in the revenue from contracts with 1,083 1,028 customers which weighed down the effect of the 12% gain in interest 2,010 income. 1,
Slide 18: Q2 Income Review
Q2 Income Review • During the quarter ended June 2020, Gross earnings reduced slightly Gross Earnings (₦ 'mn) Profit Before Tax (₦ 'mn) by 1% YoY as a result of 23% YoY gain in interest income. This was 898 1,141 1,129 however offset by the 23% YoY drop in the revenue from contracts with customers.
Slide 19: HY Gross Earnings Breakdown
HY Gross Earnings Breakdown Revenue from contracts with customers HY ‘20 HY ‘19 Change (%) (₦’ mn) (₦’ mn) HY 2019 HY 2020 8% 0% Retainership fees - 463 -100 12% 24% Fees from corporate 305 226 +35 ₦870mn 53% ₦591mn 52% actions 26% 24% Register maintenance 142 107 +33 Digital consultancy 143 74 +94
Slide 20: Q2 Gross Earnings Breakdown
Q2 Gross Earnings Breakdown Revenue from contracts with customers Q2 ‘20 Q2 ‘19 Change (%) (₦’ mn) (₦’ mn) Q2 2019 Q2 2020 Retainership fees - 347 -100 11% 0% 8% Fees from corporate 290 115 +152 7% actions 18% ₦459mn ₦596mn 49% 40% Register maintenance 104 64 +63 13% Digital consultancy 65 71 -8 Ret
Slide 21: Statement of Financial Position
Statement of Financial Position Total Assets (₦ 'bn) 22.9 • During the period, the book value of total assets appreciated by 23% 21.9 21.3 18.6 YoY as a result of 181% gain in cash and cash equivalent, and 146% 16.8 increase in trade and other receivables. • Meanwhile, total liabilities also increas
Slide 22: Financial Review
Financial Review PAT Margin EBIT Margin 58% 65% 65% • During the period, PAT margin increased by 6.7 percentage 51% points from 51% to 58% YoY in June 2020. • EBIT margin reduced by 0.2 percentage point from 65.2% in June 2019 to 65% YoY June 2020. • Return on Average Equity rose by 2.4 percentage p
Slide 23: Digital Technology
DIGITAL TECHNOLOGY HY 2020 Presentation
Slide 24: Key Metrics Achieved
Key Metrics Achieved 1. Go-live of the Website 1. Currently has over 600,000 subscribers on the platform. 2. Over 5,000 products so far available on the platform. Working to have 700% growth by December 2020. 2. Automate disbursement for cooperators on the platform seamlessly. 3. Develop dynamic sal
Slide 25: Digital Consultancy Performance Review
Performance Review Contribution to Revenue from Contract with Customers Digital Consultancy 94% 143 HY 2019 HY 2020 YoY growth 0% 8% 24% 12% 74 8% ₦ 'million 53% 24% 52% 26% 24% Retainership fees Fees from corporate actions Retainership fees Fees from corporate actions Register maintenance Digital C
Slide 26: Outlook
OUTLOOK HY 2020 Presentation
Slide 27: Strategic Plans for 2020
Strategic Plans for 2020 ▪ Position Africa Prudential as a go-to digital ▪ Deepen our capital market presence in solution provider on the African Market African along our SaaS business model via ▪ Position her flagship product-”EasyCoop our “Enterprise Capital Market Platform”. Solution” as a top co
Slide 28: Projected Product Launch/Initiative Drive
Projected Product Launch/Initiative Drive Position DT Consulting as the Go-To technology solution EasyCoop Product Launch 6 1 builder and development partner across her chosen target market Customer Experience Center CXC will be promoted as a Launch of Enterprise Capital 5 2 Go-To call center servic
Slide 29: Earnings Guidance
Earnings Guidance Achieved Guidance ₦1.87 Gross Earnings 54% ₦3.5bn ₦0.59 Revenue from Contracts 59% ₦1bn ₦1.28 Interest Income 51% ₦2.5bn ₦0.68 Operating Expenses 62% ₦1.1bn 58% Profit Margin 129% 45% 27% Return on Equity 135% 20%
Slide 30: Appendix
APPENDIX HY 2020 Presentation
Slide 31: Appendix: Statement of Comprehensive Income
APPENDIX Statement of Comprehensive Income (in thousands of Nigerian Naira) Jun-20 Jun-19 Revenue from contracts with customers 590,672 870,140 Interest Income 1,282,042 1,140,140 Gross earnings 1,872,714 2,010,280 Other income 24,339 22,099 Credit loss reversals/(expenses) - - Personnel expenses (3
Slide 32: Appendix: Statement of Financial Position
APPENDIX Statement of Financial Position (in thousands of Nigerian Naira) Jun-20 Dec-19 ASSETS Cash and cash equivalents 4,280,049 1,622,185 Equity instruments at fair value through OCI 202,701 243,328 Debt instruments at fair value through OCI 17,022,125 15,982,783 Trade and other receivables 1,015
Slide 33: Thank you !!!
Thank you !!! Questions and Answers HY 2020 Presentation