Credito Real Sab De Cv Sofom Enr · BMV:CREAL
Credito Real Sab De Cv Sofom Enr — Crédito Real — Investor Presentation (September 2013)
29 slides from Credito Real Sab De Cv Sofom Enr's investor presentation, September 2013
Slide 1: Company Presentation
Company Presentation September 2013
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of any offer or invitation for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or
Slide 3: Specialty Finance Company in Mexico…
Specialty Finance Company in Mexico… Key Attributes Attractive and High-Quality Product Mix 20 years of proven track record with over 4 million Total Loan Portfolio as of 1H 2013 Interest Income 2Q 2013 MX$8,298mm MX$1,243mm loans disbursed to more than 2 million customers 1% 1% 7% 1% Recurring
Slide 4: …with a Long Track Record of Achievements
…with a Long Track Record of Achievements Milestones of Crédito Real Issuance of its US$210mm, Introduction of 10.25% Sr. Notes group loans due 2015 2013 Partners with Nexxus Capital Private Equity 2012 Developed a new corporate image, building a reference 2011 brand for credit Introductio
Slide 5: Investment Highlights
Investment Highlights 1 Scalable, proprietary and open ended platform that supports expansion 2 Resilient business model with strong capacity to generate cash flow 3 Low risk and diversified loan portfolio with + 470,000 active customers 4 Ample and diversified sources of funding, with comfortable d
Slide 6: Open-Ended Platform that Supports Expansion
1 Scalable, Proprietary and Open Ended Platform that Supports Expansion Easy to understand product offering Product Flexible credit attributes facilitate product development Development Deep understanding of credit behavior from our customer database Open-Ended Platform that Supports Expansion
Slide 7: Business Strategy Focused on Accessible Products for the Needs of Underserved Population
1 Business Strategy Focused on Accessible Products for the Needs of Underserved Population Target Customer Base Strategic Sales Force Alliances Used Car Loans Source: Crédito Real 7
Slide 8: Resilient Business Model…
2 Resilient Business Model… Crédito Real Consumer Loan Portfolio Growth vs Peers (1) Indexed % Change 300% +157% 250% 200% 150% +39% 100% 50% (2) Peers Crédito Real Crédito Real Consumer NPLs vs Peers (3) Quarterly Consumer NPLs 12% 10% 8% 6% Average 4% 6.03% 2% Average 1.98% 0% (2) Peers Crédito Re
Slide 9: …with Strong Capacity to Generate Cash Flow
2 …with Strong Capacity to Generate Cash Flow Loan Origination Collections MX$mm MX$mm 5,719 6,375 5,063 5,918 636 608 1,686 3,687 1,757 2,974 3,179 2,572 3,090 674 2,131 315 378 1,001 891 590 4,053 3,553 2,012 1,973 2,123 2010 2011 2012 1H 2012 1H 2013 2010 2011 2012 1H 2012 1H 2013 Origination fro
Slide 10: Low Risk and Diversified Loan Portfolio
3 Low Risk and Diversified Loan Portfolio 2Q13 Portfolio Distribution by State (1) 2Q13 Portfolio Distribution by Sector (2) 100% =MX$7,049mm 100% =MX$8,298mm 100% =MX$7,049mm 10.7% 1.1% 16.5% 10.6% 1.5% 39.8% 11.9% 12.6% 84.9% 48.9% 10.1% 7.1% 9.9% 6.4% 7.5% 4.4% 3.6% 1.7% 3.0% 3.7% 4.1% Payroll Lo
Slide 11: Ample and Diversified Sources of Funding…
4 Ample and Diversified Sources of Funding… Drawn vs. Undrawn Total Debt Credit Lines Certificados Bursátiles MX$mm 100% = MX$3,246mm 100% = MX$4,000mm 22% 41% 10,032 2,343 78% 59% Drawn Undrawn Drawn Undrawn 4,000 Secured vs. Unsecured (1) 3,246 7,689 2,786 698 1,645 Credit Lines Certificados Bursá
Slide 12: …Comfortable Debt Maturity Profile…
4 …Comfortable Debt Maturity Profile… Maturity Schedule (as of 2Q 2013) MX$mm 2,904 2,786 896 938 804 754 414 554 206 465 663 371 54 548 524 160 157 155 97 500 338 233 41 211 157 155 118 18 97 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Certificados Bursátiles
Slide 13: … with Adequate Asset and Liability Management…
4 … with Adequate Asset and Liability Management… Cumulative Liquidity Profile (June 30, 2013) MX$mm 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Sep Dic Mar Jun Sep Dic Mar Jun * Sep Dic Mar Jun Sep Dic 2017 2018 + 2013 2014 2015 2016 Scheduled Collections Debt Service (1) Source: C
Slide 14: …and Decreasing Funding Cost
4 …and Decreasing Funding Cost Funding Strategy Focus Improving Funding Cost 2010 4.9% 5.4% 10.3% Diversify Asset Improve Increase Funding Liability Cost of Debt Sources Management Funds Capacity 2011 4.8% 5.9% 10.7% Debt / Equity Ratio Evolution 2012 4.8% 4.7% 9.5% 4.5x 3.9x 3.8x 1H 2012 4.8% 4.8%
Slide 15: Positioned to Benefit from Mexico’s Attractive Fundamentals…
5 Positioned to Benefit from Mexico’s Attractive Fundamentals… Solid Forecasted GDP Growth … ..Rising Per-Capita Income Projections … GDP growth US$ 13,995 4.8% 4.8% 13,210 12,487 4.2% 4.3% 11,774 4.0% 10,972 3.7% 3.6% 10,144 2.6% 1.9% 1.1% 0.8% 0.5% Chile Colombia Brazil Mexico USA European 2012 20
Slide 16: …with Focus on a Large Underpenetrated and Underserved Market with Strong Growth Prospects
5 …with Focus on a Large Underpenetrated and Underserved Market with Strong Growth Prospects According to the World High Concentration in Target Market Bank, out of the 60% of the population with the Population Segment Population lowest level of income in (mm) Mexico, only 12.1% are A,B and C+ 19%
Slide 17: Strong Corporate Governance, Experienced Management Team and Strong Shareholder Base
6 Strong Corporate Governance, Experienced Management Team and Strong Shareholder Base Corporate Governance and Compliance Strong Shareholder Base Audit and Best Practices Committees Founding Nexxus Grupo Well balanced Float Board of Directors led by Independent Members Capital Kon Board Members 49.
Slide 18: Financial Performance and Key Metrics
Financial Performance and Key Metrics
Slide 19: Profitable and well Capitalized Company…
Profitable and well Capitalized Company… Interest Income NIM % (1) MX$mm 2,090 1,912 26.3% 23.7% 23.5% 24.4% 23.0% 1,211 1,243 1,001 2010 2011 2012 1H 2012 1H 2013 2010 2011 2012 LTM 2Q 2012 LTM 2Q 2013 Efficiency Ratio (2) Capitalization Ratio 42.6% 37.6% 53.4% 35.2% 36.3% 48.1% 27.8% 30.1% 27.4% 2
Slide 20: … with Superior Track Record
… with Superior Track Record High Quality Loan Portfolio Growth (1) 2012 ROAE (2) 2012 NPL Ratio 32% 10% 28% 26% 24% 20% 19% 18% 17% 16% 10% 10% 9% 8% Banco Azteca n.a. n.a. Banregio Findep 6% BBVA Bancomer 2012 Capitalization Ratio (2) 4% Banamex HSBC 53% Santander 43% Compartamos Banorte 34% 25% 2
Slide 21: Loan Portfolio by Products
Loan Portfolio by Products Number of Clients by Product Total Portfolio by Product MX$mm 469,242 470,920 8,298 468,008 461,281 448 88 71,741 74,465 74,163 76,390 1,042 6,732 121 311,287 74,032 52,194 840 5,718 109,509 83,640 5,512 168 761 866 99,796 233 203 3,736 724 7,049 76,653 320,745 341,888 159
Slide 22: Solid Financial Performance
Solid Financial Performance Yield (1) Financial Margin MX$mm 38.7% 1,436 35.8% 1,300 34.7% 34.2% 33.7% 899 827 688 2010 2011 2012 1H 2012 1H 2013 2010 2011 2012 1H 2012 1H 2013 Net Income ROAE (2) 33.3% MX$mm 32.7% 614 27.9% 23.9% 453 22.4% 416 260 212 2010 2011 2012 1H 2012 1H 2013 2010 2011 2012 1
Slide 23: Cash Flow Generation
Cash Flow Generation 2Q 2013 Operating & Investment Cash Flow Composition MX$mm (190) (449) 468 1,526 (182) 705 (1,440) (267) Collections Interest Expenses Rebate and Administrative Operating Cash Funding Origination Change in Cash Distributors Costs Flow Operations Flow Investment Flow 2Q 2012 Oper
Slide 24: Appendix
CREDITO REAL Rebasa tus limites. oh -- Appendix
Slide 25: Products Overview
Products Overview Products Offered Payroll Loans Group Loans Durable Goods Loans Product Personal loans for unionized government Loans to finance micro-business working Loans to finance purchases of durable goods Description employees repaid through direct payroll capital requirements from selected
Slide 26: Products Overview
Products Overview New Products Small Business Loans Used Car Loans Product Loans for working capital to independent Description Loans for used cars professionals and ongoing small businesses Target Markets C and C- C and C- Avg. loan amount – MX $100,000 – Avg. loan amount – MX $50,000 MX$750,00
Slide 27: Summary Financials
Summary Financials Balance Sheet 2Q'13 2Q'12 % Var 2012 2011 % Var MX$mm Cash and cash equivalents 95.5 66.4 43.9% 85.2 64.3 32.5% Investments in securities 191.6 153.8 24.6% 346.8 253.6 36.7% Securities and derivatives transactions 195.5 313.2 -37.6% 241.5 521.4 -53.7% Performing loan portfolio Com
Slide 28: Summary Financials
Summary Financials Profit & Loss 2Q'13 2Q'12 % Var 1H'13 1H'12 % Var 2012 2011 % Var MX$mm Interest Income 630.2 491.9 28.1% 1,243.1 1,000.5 24.2% 2,090.4 1,912.3 9.3% Interest Expense (174.2) (157.3) 10.7% (343.7) (313.0) 9.8% (654.8) (612.8) 6.9% Financial Margin 455.9 334.6 36.3% 899.4 687.5 30.8
Slide 29: Key Financial Ratios
Key Financial Ratios Financial Ratios 2Q'13 2Q'12 Var 1H'13 1H'12 Var 2012 2011 Var Yield 32.7% 34.9% -2.2% 33.7% 35.8% -2.1% 34.2% 38.7% -4.5% Return on Average Loan Portfolio 12.1% 8.9% 3.2% 12.3% 9.3% 3.0% 10.0% 8.4% 1.6% ROAE: Return on average stockholders’ equity 24.1% 30.1% -6.1% 23.9% 32.7%
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