Fawry For Banking Technology And Electronic Payment · EGX:FWRY

Fawry For Banking Technology And Electronic Payment — Q2 2024 Earnings Presentation

25 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Aug 14, 2024

  1. Slide 1: 2Q 2024 Earnings Call

    2Q 2024 Earnings Call August 14, 2024 1

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document is proprietary and confidential to Fawry For Banking Technology And Electronic Payment S.A.E (“Fawry”). You must only use such information for the purposes of discussions with Fawry and you must hold such information in strict confidence and not

  3. Slide 3: Agenda

    AGENDA 2Q 2024 Operating & financial results 01 Dive into 2Q 2024 payments business figures 02 Dive into 2Q 2024 financial services figures 03 Digital growth 04 3

  4. Slide 4: 2Q 2024 Operating & Financial Results Highlights

    2Q 2024 Operating & Financial Results Highlights 4

  5. Slide 5: Main highlights for the period

    Main highlights for the period • Revenue growth follows the high standards set in 1Q2024, coming in at 58% y-o-y for 2Q2024, 129 bn • widely beating guidance While ADP grew by 35% y-o-y in 2Q2024 due to the price increases on select industries, the highest Throughput for 2Q24 since 3Q2020, it declin

  6. Slide 6: Operational KPIs see double digits growth

    Operational KPIs see double digits growth Active Network Total POS +15% Number of Total transactions Avg transaction Customers +4% (000s) services +22% +23% (mn) value +32% (EGP) (mn) 372 266 3,432 52.5 483 2,819 201 393 50.7 324 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 202

  7. Slide 7: EBITDA margin reaches 47.0%, Net profit doubles that of 2Q 2023

    EBITDA margin reaches 47.0%, Net profit doubles that of 2Q 2023 Throughput +63% Revenue +58% EBITDA +87% Net profit +101% (EGP bn) (EGP mn) (EGP mn) (EGP mn) 570 129 322 1,212 79 768 305 160 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Total revenue excluding airtime would have gr

  8. Slide 8: Quarterly throughput reaches EGP 129 bn, up by 63% y-o-y

    Quarterly throughput reaches EGP 129 bn, up by 63% y-o-y, similar to last years’ growth rate Quarterly throughput (EGP bn) +63% + 129 +69% + 116 105 +57% + 95 79 69 62 55 47 40 41 36 30 25 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 8

  9. Slide 9: Quarterly revenue went up by 58% y-o-y

    Quarterly revenue went up by 58% y-o-y, higher than previous 2 years’ growth for the second quarter Quarterly revenue (EGP mn) +58% +45% 1,212 1,087 +35% 955 873 768 651 676 614 531 448 467 483 394 349 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 9

  10. Slide 10: Revenue diversification continues, with acceptance and financial services growing

    Revenue diversification continues, with acceptance and financial services growing in contribution Revenue contribution by quarter Contribution to y-o-y revenue growth for 1% 2% 3% 2% 2Q 2024 6% 4% 3% 3% 7% 7% 7% 7% 7% 7% 13% 13% 12% 12% 15% 16% 17% 3% 7% 20% 20% 20% 19% 21% 21% 19% 24% 16% 17% 18% 1

  11. Slide 11: Overall expenses have decreased as a percentage of revenue

    Despite year-over-year increases in marketing and HR costs, overall expenses have decreased as a percentage of revenue y-o-y expenses increase Expense item as % of revenue 82% 14% 13% 12% 12% 64% 11% 57% 10% 49% 42% 30% 26% 5% 23% 3% 3% 4% Marketing Selling HR Marketing Selling HR 2Q 2022 2Q 2023 2Q

  12. Slide 12: Overall margins improvement, highest margins since inception

    …Leading to overall margins improvement, reaching the highest margins since inception Gross profit margin (%) +4.5% 65.8% 66.1% 62.7% 63.8% 64.2% 62.0% 61.6% 58.0% 59.6% 57.7% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 EBITDA margin (%) +7.3% 46.6% 47.0% 39.7% 41.9% 42.6% 36.3% 35.5% 27.8% 30

  13. Slide 13: Dive into 2Q 2024 payments business figures

    Dive into 2Q 2024 payments business figures 13

  14. Slide 14: ADP beating guidance, growing at 34% y-o-y

    ADP beating guidance, growing at 34% y-o-y driven by increases in utilities prices ADP throughput value ADP revenue (EGP mn) Contribution to ADP revenue growth +36% +34% 4% 410 30% 305 62% 4% 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Telecom ADSL Utilities Others 14

  15. Slide 15: Acceptance and Agent Banking exceeding guidance

    Acceptance and Agent Banking exceeding guidance Acceptance revenue (EGP mn) Agent Banking revenue (EGP mn) +47% +78% 226 249 154 140 2Q 2023 2Q 2024 2Q 2023 2Q 2024 15

  16. Slide 16: Both acceptance revenue segments achieved growth

    Both acceptance revenue segments achieved growth, with higher acceptance throughput per POS Revenue from instore Acceptance enabled POS Revenue from online acceptance (000s) acceptance +92% +60% +24% 334 270 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 16

  17. Slide 17: Supply Chain revenue growing on inflation and adoption

    Supply Chain revenue growing on the back of inflation and increase in adoption Supply chain throughput Supply chain revenue (EGPmn) +64% +59% 84 52 2Q 2023 2Q 2024 2Q 2023 2Q 2024 17

  18. Slide 18: Dive into 2Q 2024 financial services figures

    Dive into 2Q 2024 financial services figures 18

  19. Slide 19: MSME lending continues to achieve high growth rates

    MSME lending continues to achieve high growth rates despite challenging environment… Gross MSME loan MSME lending portfolio (EGP mn) revenue (EGP mn) • Number of Micro and Smal loans granted in 2Q24 reached 16.8k, up by 137% y-o-y +71% +79% • Disbursements for Micro and Small loans for 2Q24 reached

  20. Slide 20: Loan portfolio quality maintained, PAR 30 below 2%

    …all while maintaining loan portfolio quality, PAR 30 still below 2% Number of months after disbursement PAR30, % (by years) 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2020 2021 2022 2023 2024 20

  21. Slide 21: Other financial services revenue comes 10x that of last year

    Other financial services revenue comes 10x that of last year with the launch of the new products and growth of insurance brokerage Other financial services revenue (EGP mn) • Consumer finance (BNPL) loan portfolio reached 380mn by end of 2Q24 • Total spend by end Of Q2 reached EGP 662mn 50 • Average

  22. Slide 22: Digital growth

    Digital growth 22

  23. Slide 23: myFawry continues to witness huge growth

    myFawry continues to witness huge growth The launch of, i) myFawry prepaid card (Yellow Card), ii) BNPL and iii) the money market fund last year, myFawry cumulative downloads fueled the myFawry app growth, with throughput more than doubling 13.2 EGP Bn Annualized June 24 14,000,000 12,000,000 y-o-y

  24. Slide 24: Growing digital transactions activity

    Growing digital transactions activity Mobile wallet1 Mobile wallet1 Total digital 2 Total transactions transactions (mn) processed value transactions (mn) (mn) (EGP bn) +23% +50% +116% +61% 93 140 483 53 393 36 87 43 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 1 These figures ref

  25. Slide 25: Q&A

    Q&A 25

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