Fawry For Banking Technology And Electronic Payment · EGX:FWRY
Fawry For Banking Technology And Electronic Payment — Q1 2022 Earnings Presentation
29 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Jun 23, 2022
Slide 1: Q1 2022 Earnings Call
Q1 2022 Earnings Call June 23, 2022
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
Slide 3: Agenda
Agenda • 1Q22 Operating & financial results • Digital growth • Business Updates • Q&A 3
Slide 4: 1Q22 Operating & Financial Results
1Q22 Operating & Financial Results Highlights
Slide 5: Growth across all operational KPIs…
Growth across all operational KPIs… Active customers + 37% Total POS + 25% Number of Total transactions Avg transaction (Mn) (EGP ‘000) Services + 50% up 7% (Mn) Value + 55% (EGP) 296 1,798 275 290 42.2 140 231 30.7 1,201 90 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1
Slide 6: …drove growth in key metrics despite challenging market conditions
…drove growth in key metrics despite challenging market conditions Throughput + 66% Revenue + 38% Adj. EBITDA¹ + 32% Adj. Net Profit2+3% (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 483 134 43 41 42 349 102 25 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Total revenue excluding airtime wou
Slide 7: Adjusted EBITDA and net income calculation
Adjusted EBITDA and net income calculation 7
Slide 8: Normalization of Q1 vs. Q4 growth
Normalization of Q1 vs. Q4 growth Marketing expenses q- HR expenses q-o-q Selling expenses q-o-q OPEX & G&A expenses o-q growth growth growth q-o-q growth 58% 37% 18% -5% 50% 15% 4% -18% 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 8
Slide 9: EBITDA y-o-y growth depleted by increase in depreciation, amortization and NCI
EBITDA y-o-y growth depleted by increase in depreciation, amortization and NCI 9
Slide 10: Depreciation growth on investments in PoS, servers & SW products
Depreciation growth on investments in PoS, servers & SW prodcuts Contribution of y-o-y growth in dep & amor Capex spent in EGP mn since April 2021 22% 163 17% 17% 15% 14% 110 9% 52 5% 21 13 PoS Servers SW IFRS 16 Network Kiosks & Others PoS Servers SW Network Kiosks & terminals products impact equip
Slide 11: Sustained growth in throughput
Sustained growth in throughput Quarterly throughput +66% (EGP Bn) 40 41 36 30 24 25 22 20 15 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 11
Slide 12: …along with top-line growth
…along with top-line growth Quarterly revenues +38% (EGP Mn) 467 483 448 394 343 342 349 291 258 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 ADP Banking services Microfinance Supply Chain Solutions Others 12
Slide 13: …and a diversifying revenue base
…and a diversifying revenue base 1Q21 Revenues Mix 1Q22 Revenues Mix % contribution to growth 6% 2% 5% 2% 3% 4% 17% 8% 10% 15% 20% 51% 64% 32% 61% ADP Banking services Microfinance Supply Chain Solutions Others 13
Slide 14: ADP sustaining healthy double-digit growth
ADP sustaining healthy double-digit growth ADP throughput ADP revenue Contribution to ADP (Value) (EGP Mn) throughput growth by bill type +13% +10% 245 223 Telecom ADSL Utilities Others Q1 2021 Q1 2022 Q1 2021 Q1 2022 14
Slide 15: Banking Services growth driven by Agent Banking and Acceptance
Banking Services growth driven by Agent Banking and Acceptance Acceptance revenue Agent Banking revenue (EGP Mn) (EGP Mn) +120% +108% 95 58 28 43 Q1 2021 Q1 2022 Q1 2021 Q1 2022 15
Slide 16: Continued adoption across the Acceptance business
Continued adoption across the Acceptance business Revenue from instore Acceptance enabled POS Revenue from online Acceptance (‘000) acceptance +181% +39% +88% 211.3 151.7 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 16
Slide 17: Microfinance: Business Developments & Earnings
Microfinance: Business Developments & Earnings Highlights: Loan portfolio Microfinance revenue ▪ 22.6k clients (▲ 53% y-o-y) (EGP Mn) (EGP Mn) ▪ Credit limits still at EGP 200k +74% +70% ▪ EGP 206 Mn disbursed over 5.9 k loans in 1Q22 528 47 ➢ Amount (▲ 89% y-o-y) ➢ Loans (▲ 42% y-o-y) ▪ Average Num
Slide 18: Microfinance: Portfolio quality & Earnings
Microfinance: Portfolio quality & Earnings Number of months after disbursement PAR30, % (avg by years) Partnership module for in-house developed Loan Origination platform 3.0% ▪ Enable B2B, B2C Partners to send loan applications for their clients and to track loan applications status online 2.5% ▪ f
Slide 19: Supply Chain performance
Supply Chain performance Supply chain throughput Supply chain revenue (EGP Mn) +22% Cash Management +43% 1Q21 1Q22 25 +12% 73 82 20 Active Clients Active Clients Fawry Plus Branches 1Q21 1Q22 +57% 112 176 Q1 2021 Q1 2022 Q1 2021 Q1 2022 19
Slide 20: Digital growth
Digital growth
Slide 21: Continuing myFawry growth
Continuing myFawry growth 1Q22 developments myFawry cumulative downloads Triggered push notifications 2.4 EGP Bn Annualized Mar.22 6,000,000 5,000,000 and one click payments for throughput 4,000,000 all bills added to customers’ Up c. 80% y-o-y 3,000,000 quick pay list 5.8 2,000,000 1,000,000 Notify
Slide 22: Growing digital transactions activity
Growing digital transactions activity Mobile Wallet¹ Transactions Mobile Wallet¹ Processed Value Total digital2 Transactions Total Transactions (Mn) (EGP Bn) (Mn) (Mn) +58% +161% +56% +7% 35.8 18.5 18.2 296 275 22.9 11.7 7.0 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2022 1 These fig
Slide 23: Business Updates
Business Updates
Slide 24: New offerings
New offerings Fawry accept, F&B solution Fawry ATM White Label Solution for the F&B sector New Cash in/cash out service for all bank cards Customizing a user-friendly mobile app Penetrating an annual +1 trillion EGP market Digital Innovation for F&B Industry enabling Available across all 290 k merch
Slide 25: New Partnerships
New Partnerships Tanmeyah B-Tech Accepting payment and installment Payment solutions to B.TECH customers: collections from Tanmeyah Clients ▪ installment collection through Fawry’s network ▪ Various payment options through FawryPay Clients can pay through: Fawry customers get access to services: ▪ M
Slide 26: Inaugurated Fawry Academy
Inaugurated Fawry Academy A 6 floors building located in Maadi Area Can accommodate up to 500 trainees per day Part of our capacity development strategy for: ▪ Enhancing sales and customer satisfaction and managing a smooth selling process ▪ Provide knowledge on adapting to new technologies Utilize
Slide 27: Fawry Quantum - new building
Fawry Quantum - new building Located in Smart Village In Fawry Quantum building, we plan to evolve and transform Fawry into the future, achieving true financial inclusion for both businesses and consumers alike. Making life easier to businesses, merchants and consumers It will serve as Fawry Digital
Slide 28: New investments
New investments Mylerz Fawry participated in a funding round of USD 9.6 million in Mylerz, an Egyptian last-mile delivery and fulfillment technology startup. Investment will allow Mylerz to rapidly scale its operations across Egypt and enter the Algerian, Tunisian, and Moroccan markets Fawry’s parti
Slide 29: Q&A
Q&A
Fawry For Banking Technology And Electronic Payment — Q1 2022 Earnings Presentation on 6ix