Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — FY2021 Earnings Presentation
30 slides from Contact Financial Holding Sae's earnings presentation, 2021
Slide 1: Results Presentation FY 2021
Results Presentation FY 2021
Slide 2: Disclaimer
Introduction Disclaimer This presentation has been prepared by Contact Financial Holding (the “Company”. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any
Slide 3: Agenda
AGENDA 1 Introduction 4 2 Our Edge 8 3 FY 2021 Performance Review 15 4 Appendix 26
Slide 4: Introduction
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Slide 5: Important note regarding updates to group financial reporting
Introduction Important note regarding updates to group financial reporting Starting with the FY 2021 financial statements, the Group has changed the structure and constituents of its financial reporting, with changes affecting primarily the Consolidated Income Statement and segmental reporting in th
Slide 6: At a Glance
Introduction At a Glance Egypt’s leading non-bank financial services provider 1st EGX Group Structure Fastest Growing Finance Company Consumer Finance License in Listed since 2018 under the Awarded in June 2021 by The Egypt with +20yrs of offering ticker CNFN.CA Global Economics innovative financial
Slide 7: Results Snapshot
Introduction Results Snapshot Contact delivered outstanding operational and financial results in FY-2021, leveraging an expanded reach and product offering EGP 1,228 mn EGP 465 mn 21.6% Consolidated Total Operating Income Consolidated Net Income Annualized Return on Average Equity (▲ 31% y-o-y) (▲ 3
Slide 8: Our Edge
Our Edge
Slide 9: Our Edge
Our Edge Our Edge Contact deploys a well-defined growth strategy covering four primary pillars 2 3 Market-wide Market-leading risk coverage management and including banked unmatched credit and unbanked and collection population frameworks Comprehensive product offering Diversified, highly- 1 coverin
Slide 10: Well-Defined Growth Strategy
Our Edge Well-Defined Growth Strategy Contact has a clear vision for the business with a well-defined growth strategy to achieve it Contact Today A B C D E The widest product Fully digitized proprietary Strong physical & digital Superior funding Highly profitable offering on the market credit engine
Slide 11: Comprehensive Product Offering Covering Full Customer Financial Lifecycle
Our Edge Comprehensive Product Offering Covering Full Customer Financial Lifecycle Through its highly-synergistic business segments and product range, Contact serves the financial needs of a wide range of Egyptians, leveraging technology to reshape access to credit and protection Financing 89% Insur
Slide 12: Market-wide Coverage Including Banked and Unbanked Population
Our Edge Market-wide Coverage Including Banked and Unbanked Population Throughout 2021, management delivered on its expansion strategy, growing and diversifying its direct-to-consumer reach across both physical and digital channels, and enabling the company to target a larger underserved audience Ex
Slide 13: Unmatched Risk Management and Collection Frameworks
Our Edge Unmatched Risk Management and Collection Frameworks Contact boasts a thorough and unique credit assessment approach and a highly effective collections function Distinctive credit assessment methodology refined over +20 years of financing experience Ability to target and process a wide Uniqu
Slide 14: Diversified, Highly Liquid Funding Base
Our Edge Diversified, Highly Liquid Funding Base Contact operates a superior funding capability underpinned by diversified sources with efficient cost of funding to cater for business growth Funding Strategy Overview Overview of FY-2021 Funding Base D Diversified funding base enabling consistent liq
Slide 15: FY 2021 Performance Review
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Slide 16: Financing Division – Robust Growth Across All Financing Segments
Our Edge Financing Division – Robust Growth Across All Financing Segments Total new financing extended in FY-2021 recorded EGP 7.1 billion, a 53% increase from the previous year. Contact’s wide-ranging consumer finance offering saw its market share reach 51% as at year-end 2021.1 New Financing | EGP
Slide 17: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
Our Edge Financing Division – Increasingly Diversified Portfolio with Favorable Margins The Financing portfolio expanded 33% year-on-year to EGP 10.30 billion as at year-end 2021, with greater diversification into higher-spread products Financing Portfolio by Asset Class Financing Portfolio Breakdow
Slide 18: Financing Division – Sustained Growth Across all Financing Revenue Components
Our Edge Financing Division – Sustained Growth Across all Financing Revenue Components Sustained market recovery coupled with an expanded reach and product offering saw strong results for 2021 Financing Operating Income | EGP mn Net Revenue from Portfolio Transfer | EGP mn +25% Net Rev. from Portfol
Slide 19: Financing Division – High-Quality Portfolio, Low Delinquencies
Our Edge Financing Division – High-Quality Portfolio as Evident in Low Delinquencies with Sufficient Coverage1 Contact’s FY-2021 PaR 150+ delinquencies (Portfolio at Risk) ratio stood at only 2.5% 150+ Days Portfolio at Risk and Coverage Ratio Percentage PaR Coverage 139% 146% 99% 3.1% 2.5% 2.1% FY
Slide 20: Financing Division – Strong Profitability Supported by Controlled Costs
Our Edge Financing Division – Strong Profitability Supported by Controlled Costs and Low Risk Profile Financing net income returned to year-on-year growth in FY-2021, expanding 30% versus last year on the back of strong operating income growth Operating Costs and Cost to Income | EGP mn, % Financing
Slide 21: Insurance Division – Operational and Business Developments – FY-2021
Our Edge Insurance Division – Operational and Business Developments – FY-2021 Gross written premiums witnessed strong year-on-year growth across both insurance companies on the back of new product launches and increased cross-selling, with total policies as at year-end 2021 reaching c. 76 thousand I
Slide 22: Insurance Division – Performance Review
Insurance Division – Performance Review Insurance Operating Income | EGP mn Underwriting Income | EGP mn +81% +350% On a consolidated basis, 52 136 insurance operating income Underwriting income recorded came in at EGP 136 million EGP 52 million in FY-202, a more 75 during FY-2021, representing an t
Slide 23: Digital Platforms – Operational Highlights and Key Results
Digital Platforms – Operational Highlights and Key Results The Company continues to expand its digital capabilities, launching and investing in the development of new platforms and creating new revenue streams Contactcars Reimagined Pricing AI tool reached close to 50,000 valuations per The web port
Slide 24: Digital Platforms – Wasla
Digital Platforms – Wasla In February 2022, the Company concluded a USD 9 million investment in e-commerce super-app Wasla, adding to Contact’s growing footprint in fintech and reinforcing its quest to enable tech-first ventures in Egypt’s financing ecosystem Wasla at a glance Strategic advantages T
Slide 25: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated performance reflects broad-based growth across segments Total Operating Income| EGP mn Consolidated Operating Expenses | EGP mn Consolidated Return on Equity | EGP mn +31% +24% 1,228 21.7% 21.6% 444 17.9% 940 843 357 250 FY 2019 FY 2020 FY 202
Slide 26: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated net income after minorities expanded 32% year-on-year to EGP 465 million in FY-2021, recording the highest bottom-line figure to date EBT | EGP mn Net Income after Minorities | EGP mn +26% 662 +32% 535 527 465 389 353 FY 2019 FY 2020 FY 2021 F
Slide 27: Appendix
Appendix
Slide 28: Financing Business Income Statement
Our Edge Financing Business Income Statement FY-2018 FY-2019 FY-2020 FY-2021 change (FY-2020 vs FY-2021) Revenue from Portfolio Transfer 20,112 213,712 320,398 486,813 52% Off Balance Sheet Portfolio Management Fee 172,546 107,127 103,795 156,799 51% Securitization Surplus / Deficit 132,137 85,220 (
Slide 29: Insurance Business Income Statement
Our Edge Insurance Business Income Statement FY-2018 FY-2019 FY-2020 FY-2021 change (FY-2020 vs FY-2021) Gross Written Premiums - 109,228 283,856 516,835 82% Provisions of Unearned Premiums - (49,137) (49,819) (44,152) -11% Outward Reinsurance Premiums - (20,847) (73,109) (154,648) 112% Net Earned P
Slide 30: Consolidated Income Statement
Our Edge Consolidated Income Statement Financing Business FY-2018 FY-2019 FY-2020 FY-2021 change (FY-2020 vs FY-2021) Revenue from Portfolio Transfer 20,112 213,712 320,398 486,813 52% Off Balance Sheet Portfolio Management Fee 172,546 107,127 103,795 156,799 51% Securitization Surplus / Deficit 132
Contact Financial Holding — FY2021 Earnings Presentation on 6ix