Africa Prudential Plc · NSENG:AFRIPRUD
Africa Prudential — Q1 2020 Earnings Presentation
30 slides from Africa Prudential's earnings presentation, April 2020
Slide 1: Presentation to Investors & Analysts
Presentation to Investors & Analysts 2020 Q1 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 2020 Q1 Presentation
Slide 4: Overview
OVERVIEW 2020 Q1 Presentation
Slide 5: Overview
Overview Transforming the African continent through innovative solutions, superior investor relations and business support services. 600,000 Aggregate lives on The Only Listed Investor Services firm in West Africa EasyCoop Automated Cooperative +10million Management Solution. User-Capacity Platform.
Slide 6: Our Journey So Far
Our Journey So Far 1970 2012 2017 2020-2021 Business Business Company Birth Name Change Transformation Expansion • Started as a department of • We changed business name to • We changed our name to • Continuation of the African legacy United Bank for Africa Africa Prudential Registrars Plc. Africa Pr
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 2020 Q1 Presentation
Slide 9: Snapshot
Snapshot Declining Capital Market Activities Challenging Macroeconomic Environment •Due to the tough business landscape, there has been a slowdown in the number of new • The slow recovery of the economy coupled with listings. the outbreak of the covid-19 pandemic has •Reduced clients’ activities as
Slide 10: Global Impact of COVID-19
Global Impact of COVID-19 Global Impact Confirmed Cases of COVID-19 Infection around the World • Over 2 million people infected with close to 200,000 death worldwide as at April 23, 2020. • Over 1.7 Billion people are under government enforced lockdown. • Global economy is predicted to lose over $2.
Slide 11: Key Macro Indicators
Key Macro Indicators GDP growth continues to gain momentum amidst decline in Oil Production due Low-yield environment had dominated the T-bills market with stronger demand to the adherence to OPEC+ production cuts. With the global spread of COVID- pushing rates across all tenors in free-fall since t
Slide 12: COVID-19 and Nigerian Economy
COVID-19 and Nigerian Economy Domestic Impact Economic Stimulus Measures • Persistent uptick in the number of confirmed positive cases of COVID-19 infection in Nigeria prompted mobility restrictions and border closure. 3-month repayment moratorium for all • Nigerian stock exchange has lost over N2.5
Slide 13: Impact of COVID-19 on our business: Our Approach
Impact of COVID-19 on our business Specific Business Impact • Declining Revenue from Contracts • Declining Investment Income Our Approach 1 • Postponement of Clients AGMs Activated our Business Continuity Plan(BCP) which revolves the work from home model • Disruption of cashflow from operations acro
Slide 14: Financial Review
FINANCIAL REVIEW 2020 Q1 Presentation
Slide 15: Financial Review
Financial Review Mar-20 Mar-19 Change Income Statement (‘million) (‘million) % Gross Earnings 743.37 869.37 -14 Financial Ratios Mar-20 Mar-19 Change Revenue from Contracts 131.57 273.86 -52 PAT Margin 46% 44% +2pp2 Interest Income 611.80 595.51 +3 EBIT Margin 56% 64% -8pp Operating Expenses 332.80
Slide 16: Financial Review
Financial Review Gross Earnings (₦'million) Profit After Tax (₦'million) 958 461 869 743 378 382 642 342 Mar '17 Mar '18 Mar '19 Mar '20 Mar '17 Mar '18 Mar '19 Mar '20 Gross Earnings reduced by 14% driven by drop in Revenue from Profit After Tax (PAT) reduced by 10% YoY despite the drop in contract
Slide 17: Financial Review
Financial Review Total Assets (₦'million) Total Liabilities (₦'million) Total Equity (₦'million) Mar '20 18,093 Mar '20 9,524 Mar '20 8,569 18,649 Dec '19 10,365 Dec '19 8,284 Dec '19 21,272 Dec '18 12,675 Dec '18 8,597 Dec '18 21,934 Dec '17 Dec '17 6,939 Dec '17 14,994 Total Assets reduced by 3% Y
Slide 18: Financial Review
Financial Review Q1 2019 Q1 2020 (in million ₦) Mar-20 Mar-19 Change 3% Revenue from Contracts with 131 274 -52% 14% 0% 12% Customers 43% Retainership Fees - 117 -100% ₦274million ₦131million 29% 59% Fees from Corporate 15 112 -86% Actions 41% Register 38 39 -1% Maintenance Retainership fees Fees fr
Slide 19: Financial Review
Financial Review Dividend Payment (Kobo) 33% CAGR 6,952 5,929 6,610 4,887 70 50 8,597 8,569 8,284 6,939 40 30 Dec '17 Dec '18 Dec '19 Mar '20 2017 2018 2019 2020* Shareholders' Fund (₦' Bn) Retained Earnings (₦' Bn) Dividend payout appreciated at 33% CAGR an indication of Sustained growth in average
Slide 20: Digital Technology
DIGITAL TECHNOLOGY 2020 Q1 Presentation
Slide 21: Key Metrics Achieved
Key Metrics Achieved 100% Product Offerings growth on EasyMall +500,000 Subscribers on EasyCoop ✓ Website Launch ✓ 50% repeat sales generated form ✓ Automated disbursement for Clientele cooperators on the platform. ✓ Establish strategic partnerships and ✓ Enhanced payroll, accounting and alliances w
Slide 22: Performance Review
Performance Review Diversification towards digital technology helped to grow relative stable revenue base Digital Consultancy (₦'million) Contribution to Revenue from Contract with Customers +973% 78 14% 3% 0% 12% YoY growth 58 43% 3% 59% 29% 59% 41% 7 Retainership fees Fees from corporate actions R
Slide 23: Strategic Plan
Strategic Plan Position the business as Enhance the EasyCoop a Go-To Software- As A product family to play in the Service (SaaS) solution retail space via her provider in chosen EasyCoop Prime Solution markets. across the global cooperative space. Improved process Position EasyCoop as automation and
Slide 24: Outlook
OUTLOOK 2020 Q1 Presentation
Slide 25: Strategic Initiatives
Strategic Initiatives DIGITAL TECHNOLOGY REGISTRAR ▪ Upscaling our capability in developing ▪ Deepen our capital market presence in the software solutions and applications for third African Market. parties through our innovation lab. ▪ Look to introduce automated Listing ▪ Strengthen Data driven bus
Slide 26: Earnings Guidance
Earnings Guidance Achieved Guidance ₦0.74 Gross Earnings 21% ₦3.5bn ₦0.13 Revenue from Contracts 13% ₦1bn ₦0.61 Interest Income 24% ₦2.5bn ₦0.33 Operating Expenses 30% ₦1.1bn 46% Profit Margin 102% 45% 16% Return on Equity 80% 20% 2020 Q1 Presentation
Slide 27: Appendix
APPENDIX 2020 Q1 Presentation
Slide 28: Appendix: Statement of Comprehensive Income
APPENDIX Statement of Comprehensive Income (in thousands of Nigerian Naira) Mar-20 Mar-19 Revenue from contracts with customers 131,567 273,861 Interest Income 611,799 595,508 Gross earnings 743,366 869,369 Other income 2,891 2,839 Credit loss reversals/(expenses) - - Personnel expenses (158,105) (1
Slide 29: Appendix: Statement of Financial Position
APPENDIX Statement of Financial Position (in thousands of Nigerian Naira) Mar-20 Dec-19 ASSETS Cash and cash equivalents 2,263,911 1,622,185 Equity instruments at fair value through OCI 186,235 243,328 Debt instruments at fair value through OCI 14,801,389 15,982,783 Trade and other receivables 458,7
Slide 30: Thank you !!!
Thank you !!! Questions and Answers 2020 Q1 Presentation