Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — FY2023 Earnings Presentation
45 slides from Contact Financial Holding Sae's earnings presentation, 2024
Slide 1: Results Presentation FY-2023
Results Presentation FY-2023
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 Digital Platforms 21 4 Debt Capital Markets 26 5 Africa Expansion 29 6 FY-2023 Performance Review 31 7 Appendix 42
Slide 4: Introduction
ion Introduct ~
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 Group Structure 1st EGX Consumer Finance License in Egypt with +20yrs and Largest Consumer Finance Player in the Listed Since 2018 Under the Ticker CNFN.CA Market Offering Innovative Financial Services Financial Holding EG
Slide 7: Results Snapshot
Introduction Results Snapshot Contact ended the year on a high note, achieving impressive financial and operational results during FY-2023 EGP 2,083.8 mn EGP 692.8 mn 27.2% Consolidated Total Operating Income Consolidated Normalized Net Income1 Return on Average Equity (▲ 27% y-o-y) (▲ 14% y-o-y) (v
Slide 8: Our Edge
Our Edge
Slide 9: How We Differentiate Ourselves
Our Edge How We Differentiate Ourselves Highly experienced management Highly team Targets the profitable banked & operation unbanked population Contact has a clear vision for the business with a well- Superior Widest product defined growth strategy to funding capabilities offering in the market achi
Slide 10: Well-Defined Growth Strategy
Our Edge – Well-Defined Growth Strategy 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 offer
Slide 11: What We Do
Our Edge – What We Do What We Do Contact is Egypt’s largest non-bank financial services provider and has been actively changing the way businesses and individuals access financial and insurance services over the past twenty years. Financing 83% Insurance 17% Financing products targeting Egypt’s bank
Slide 12: Diversified and Synergistic Product Base Driving Growth Across All Segments
Our Edge – Diversified Product Base Diversified and Synergistic Product Base Driving Growth Across All Segments Broad & Increasingly Diversified Consumer Finance Offering New Lending Breakdown by Product for 2019 New Lending Breakdown by Product for FY-2023 4% 2% 3% 1% 1% 6% 8% 8% 9% 2% 4% 57% 75% 2
Slide 13: Proprietary AI Instant Credit Scoring Engine
Our Edge – Exceptional Credit Scoring Engine Proprietary AI Instant Credit Scoring Engine Unique Credit Assessment Approach through Creditech Distinctive credit assessment methodology refined over +20 years of financing experience Loan disbursed or application Credit application submitted Data asses
Slide 14: Market-wide Coverage Including Banked and Unbanked Population
Our Edge – Wide Market Coverage Market-wide Coverage Including Banked and Unbanked Population Powered by Physical Presence Expanding the branch network in high-potential areas outside the main cities Wide Geographical Footprint took place throughout 2021, 2022, and 2023 Zamalek Sharm El Sheikh Tahta
Slide 15: A Diversified Digital Distribution Network
Our Edge – Wide Market Coverage … And A Diversified Digital Distribution Network Direct to Consumer Distribution (DTC) Lending as a Service (LaaS) 15
Slide 16: A Digital One-Stop-Shop for all Financial Needs
Our Edge – A Digital One-Stop-Shop A Digital One-Stop-Shop for all Financial Needs Relaunched in January 2023, the ContactNow app is Egypt’s first fully-fledged app offering the full suite of digital financial solutions A Digital One-Stop-Shop Covering the Consumer’s Financial Lifecycle Strategic Ad
Slide 17: 20 Years of Strong Track Record of Credit Extension & Collection
Our Edge – Solid Track Record 20 Years of Strong Track Record of Credit Extension & Collection Track Record of Growth and Operational Evolution LaaS Successful product deployment on the back of market know-how Insurance Insurance Credit Credit Specialized Specialized ConsumerCredit ConsumerCredit LT
Slide 18: Diversified, Highly Liquid Funding Base
Our Edge – Diversified Funding Base Diversified, Highly Liquid Funding Base Funding Strategy Overview Overview of FY-2023 Funding Base Amounts in EGP MN Utilized Available Diversified funding base enabling 23,315 consistent liquidity with efficient pricing A B C D 2,261 Fixed rate to match portfolio
Slide 19: Funding Driven by Continued Innovation in the DCM Space
Our Edge – An Innovator in the DCM Space Funding Driven by Continued Innovation in the DCM Space1 Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability and cost of funding, Conta
Slide 20: Consistent Growth and Profitability
Our Edge – Historical Performance Consistent Growth and Profitability Contact continues to successfully leverage its growing digital presence, and increasingly broad reach and service offering to overcome challenging market conditions and outperform rising competition, as well as deliver consistent
Slide 21: Digital Platforms
Digital Platforms -
Slide 22: A Digital Business
Digital Platforms A Digital Business Through strategic investments and partnerships, Contact is continuously strengthening its digital capabilities, placing it at the forefront of the financing and insurance sectors’ digitization movement Increase Create new Maintain market Contact’s Improve Retain
Slide 23: Digital Platforms – Contactcars.com
Digital Platforms – Contact Cars Digital Platforms – Contactcars.com The portal, originally set up in 2002, was relaunched in 2021 as a stand-alone business ContactCars.com Relaunched In 4Q-2023, Contactcars.com introduced its two initial releases for its Motorcycles Product, a catalog release conta
Slide 24: Digital Platforms – ContactNow
Digital Platforms – ContactNow Digital Platforms – ContactNow The Company rolled out its ContactNow app in early 2021 (relaunched in 2023) with the platform rapidly rising in popularity ever since The ContactNow app ContactNow has secured several partnerships alongside major New Bill Payment Origina
Slide 25: Digital Platforms – Wasla
Digital Platforms – Wasla Digital Platforms – Wasla Contact concluded a USD 9 million investment in e-commerce super-app Wasla in February 2022, further expanding the Company’s growing footprint in fintech and reinforcing its quest to enable tech-first ventures in Egypt’s financing ecosystem Wasla a
Slide 26: Debt Capital Markets
Debt Capital Markets
Slide 27: Overview of the Debt Capital Markets
Debt Capital Markets Overview of the Debt Capital Markets1 Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability and cost of funding 41 • Introducing new products to the market:
Slide 28: Overview of the Debt Capital Markets
Debt Capital Markets Overview of the Debt Capital Markets Egypt’s Leading DCM Player with a Proven Record of Executing Transactions in Challenging Market Conditions, Safeguarding the Group’s Liquidity Requirements 2022 2023 2023 2022 Issued despite Issued despite Issued despite Issued despite ongoin
Slide 29: Africa Expansion
Africa Expansion
Slide 30: The Perfect Opportunity for Further Expansion
Africa Expansion The Perfect Opportunity for Further Expansion Almasi, the newly launched joint venture between Contact and Mansour Group, will initially provide leasing services and will work to expand its offering to consumer financing and auto loans in the coming period. Expanding into Kenya and
Slide 31: FY-2023 Performance Review
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Slide 32: Comprehensive Financing Offering
FY-2023 Performance Review Comprehensive Financing Offering Contact offers a full range of financing products targeting Egypt’s banked and unbanked population in both the retail and commercial spaces. Passenger Commercial Contact Mortgage Medical Working Cars Vehicles Shopping Capital Contact Auto o
Slide 33: Financing Division – Widespread Growth Across Financing Segments
FY-2023 Performance Review Financing Division – Widespread Growth Across Financing Segments In FY-2023,total new financing extended stood at EGP 16.6 billion, a 46% year-on-year increase largely driven by Contact’s passenger cars and shopping segments. Contact’s commercial vehicles segment also witn
Slide 34: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
FY-2023 Performance Review Financing Division – Increasingly Diversified Portfolio with Favorable Margins At the close of the year, Contact’s financing portfolio stood at EGP 21.2 billion, a 43% year-on-year expansion. Contact continued to diversify its portfolio throughout 2023, placing an increase
Slide 35: Financing Division – Sustained Growth Across all Financing Revenue Components
FY-2023 Performance Review Financing Division – Sustained Growth Across all Financing Revenue Components Through its ability to leverage an increasingly diversified product offering and a wider direct-to-consumer reach, the financing division delivered solid growth in FY-2023 despite the impact of t
Slide 36: Financing Division – High-Quality Portfolio as Evident by the Low Delinquency Ratio
FY-2023 Performance Review Financing Division – High-Quality Portfolio as Evident by the Low Delinquency Ratio Contact’s PaR 150+ delinquencies (Portfolio at Risk) ratio as at December 2023 stood at 3.2% 150+ Days Portfolio at Risk 3.1% 3.2% 2.5% 2.3% FY-2020 FY-2021 FY-2022 FY-2023 Contact’s delinq
Slide 37: Financing Division – Strong Profitability amidst a difficult Operating Environment
FY-2023 Performance Review Financing Division – Strong Profitability amidst a difficult Operating Environment The Financing Division’s net income grew by 30% year-on-year in FY-2023 following strong operational results during the twelve- month period Operating Costs and Cost to Income | EGP mn, % Fi
Slide 38: Insurance Division – Operational and Business Developments – FY-2023
FY-2023 Performance Review Insurance Division – Operational and Business Developments – FY-2023 Gross written premiums generated by both insurance companies continued to report strong year-on-year expansion supported by new product launches and increased cross-selling, while total policies underwrit
Slide 39: Insurance Division – Performance Review
FY-2023 Performance Review Insurance Division – Performance Review Underwriting Income | EGP mn Insurance Operating Income | EGP mn +55% +79% 349 150 On a consolidated basis, Underwriting income reached insurance operating income 97 EGP 150 million in FY-2023, a 195 rose by 79% year-on-year to 55% y
Slide 40: Consolidated Performance – Income Statement
FY-2023 Performance Review Consolidated Performance – Income Statement Broad-based growth across both segments continued to support impressive results at the consolidated level Consolidated Operating Expenses | EGP mn Total Operating Income| EGP mn EBT | EGP mn Cost-to-Income | % +36% +27% 38.0% 37.
Slide 41: Consolidated Performance – Income Statement
FY-2023 Performance Review Consolidated Performance – Income Statement Consolidated normalized net income after minorities expanded by 14% year-on-year to reach EGP 693 million in FY-2023 Normalized Net Income1| EGP mn Consolidated Return on Equity | % Adjustments +14% Actual Net Income 27.2% 693 1
Slide 42: Appendix
Appendix
Slide 43: Financing Business Income Statement
Appendix Financing Business Income Statement FY-2020 FY-2021 FY-2022 FY-2023 change (FY-2022 vs FY-2023) Revenue from Portfolio Transfer 320,398 486,813 767,104 1,005,772 31% Off Balance Sheet Portfolio Management Fee 103,795 156,799 199,248 326,241 64% Securitization Surplus / Deficit (9,279) (12,3
Slide 44: Insurance Business Income Statement
Appendix Insurance Business Income Statement FY-2020 FY-2021 FY-2022 FY-2023 change (FY-2022 vs FY-2023) Gross Written Premiums 283,856 516,835 948,316 1,491,843 57% Provisions of Unearned Premiums (49,819) (44,152) (105,734) (194,195) 84% Outward Reinsurance Premiums (73,109) (154,648) (284,415) (3
Slide 45: Consolidated Income Statement
Appendix Consolidated Income Statement Financing Business FY-2020 FY-2021 FY-2022 FY-2023 change (FY-2022 vs FY-2023) Revenue from Portfolio Transfer 320,398 486,813 767,104 1,005,772 31% Off Balance Sheet Portfolio Management Fee 103,795 156,799 199,248 326,241 64% Securitization Surplus / Deficit
Contact Financial Holding — FY2023 Earnings Presentation on 6ix