Africa Prudential Plc · NSENG:AFRIPRUD
Africa Prudential — FY2020 Earnings Presentation
27 slides from Africa Prudential's earnings presentation, March 2021
Slide 1: Presentation to Investors & Analysts
Presentation to Investors & Analysts FY 2020 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
Pages 04-07 Company Overview Pages 08-13 Operating Environment Presentation Outline Pages 14-19 Financial Review Pages 20-21 Digital Technology Pages 22-23 Outlook Pages 24-27 Appendix FY 2020 Presentation
Slide 4: Overview
OVERVIEW FY 2020 Presentation
Slide 5: Overview
Overview Transforming the African continent through innovative solutions, superior investor relations and business support services. 600,000 + Aggregate users on An highly scalable Listed on the Nigerian Stock EasyCoop cloud-based Exchange Automated Cooperative Manager with over 260,000 shareholders
Slide 6: Our Journey so far
Our Journey so far ➢ We changed business ➢ Started as a name to Africa ➢ Deepen digital department of the Prudential Registrars Plc. ➢ Change of name and rebrand transformation across its legacy United Bank to Africa Prudential Plc. capital market, for Africa Plc (UBA). ➢ We became the first coopera
Slide 7: Our Competitive Advantage
Our Competitive Advantage Durable Exposure Customer Experience Sound Corporate Governance With experience spanning Our customer remain Our certification by the Nigerian three decades, we have had central to business and we Stock Exchange Corporate faced tough times and focus on creating Governance R
Slide 8: Operating Environment
OPERATING ENVIRONMENT FY 2020 Presentation
Slide 9: Snapshot
Snapshot Challenging Macroeconomic Environment Capital Market Activities gains momentum •The impact of the pandemic on the Nigerian economy •Corporate issuances of CPs and Bonds has taken has been negative with the economy slipping into the centre stage in a bid to raise fresh capital to recession a
Slide 10: Global Economy in COVID-19 Era
Global Economy in COVID-19 Era OECD Interim Projected GDP Growth • In 2020, the world economy was hit by the twin shock of the COVID-19 pandemic and 10 commodity market decline. 8 • Measures taken to curtail the pandemic disrupted global supply chains, halted 5 business activities, and resulted in m
Slide 11: Key Macro Indicators: GDP Growth vs Oil Output, Inflation
Key Macro Indicators GDP Growth vs Oil Output Inflation Rate 25% 3 2.38% 2.55% 3% 1.89% 2.10% 2.12% 2.28% 1.87% 1.81% 1.50% 2% 20% 2 1% 0.11% Oil Production (mbpd) 0% 15% GDP Growth rate 2 -1% -2% 10% 1 -3% -3.62% -4% 5% 1 -5% -6% 0% -6.10% Jun-19 Jul-19 Aug-19 Sep-19 Jun-20 Jul-20 Aug-20 Sep-20 Dec
Slide 12: Key Macro Indicators: Foreign Reserves, Interest Rates
Key Macro Indicators Foreign Reserves vs Crude oil Interest Rates 70 80 12% 16.0% 60 70 14.0% 10% 60 12.0% 50 Foreign Reserves 8% Crude Oil Prices 10.0% 50 40 T-Bills MPR 6% 8.0% 40 30 6.0% 30 4% 4.0% 20 20 2% 2.0% 10 10 0% 0.0% 0 - Jun-19 Jul-19 Sep-19 Jun-20 Jul-20 Sep-20 Aug-19 Nov-19 Aug-20 Nov-
Slide 13: Our Business and COVID-19
Our Business and COVID-19 Challenges Encountered Effect of COVID-19 Pandemic Impact on Portfolio Investment Our response in this regard includes: 1. We are leveraging on our technology drive to automate our processes, providing more digital channels to deploy our services for quick and better servic
Slide 14: Financial Review
FINANCIAL REVIEW FY 2020 Presentation
Slide 15: Financial Review
Financial Review Dec ‘20 Dec ‘19 Income Statement Change (%) (₦’ mn) (₦’ mn) Gross Earnings 3,508 3,902 -10.1% Revenue from Contracts 1,059 1,502 -29.5% Interest Income 2,448 2,400 +2.0% Operating Expenses (1,567) (1,711) -8.4% Profit Before Tax 1,980 2,389 -17.1% Profit After Tax 1,446 1,681 -14.0%
Slide 16: FY 2020 Income Statement Review
FY 2020 Income Statement Review Gross Earnings Operating Expenses • Gross earnings declined by 10% due to a 29% reduction in the revenue 3,902 from contracts with customers even though interest income was slightly up 2% YoY. 1,711 3,508 • Total expenses reduced 8% YoY largely on account of a 14% red
Slide 17: FY 2020 Gross Earnings Breakdown
FY 2020 Gross Earnings Breakdown FY ‘20 FY ‘19 Revenue from contracts with customers Change (%) (₦’ mn) (₦’ mn) FY 2019 FY 2020 Retainership fees 0 922 -100 4% 0% 13% 40% Fees from corporate actions 427 334 +28 40% ₦1,502mn ₦1,059mn 22% Register maintenance 211 188 +12 61% 20% Digital consultancy 42
Slide 18: Statement of Financial Position
Statement of Financial Position Total Asset (N’ bn) 21… 21.3 • During the period, the company saw the value of its total asset reduce 16.8 18.6 17.7 as a result of a reduction in Cash and Cash equivalent (-38%), debt instruments holdings (-19%), and trade and other receivables (-28%). • Meanwhile, t
Slide 19: Ratio Analysis
Ratio Analysis PAT Margin EBIT Margin • During the period, PAT margin declined slightly by 1.9 percentage points from 43% in 2019 to 41% in 2020. 64% • EBIT margin also reduced by 7.4 percentage point from 63.9% in 43% 2019 to 56.5% YoY 2020. 41% 57% • Return on Average Equity declined 2.6 percentag
Slide 20: Digital Technology
DIGITAL TECHNOLOGY FY 2020 Presentation
Slide 21: Digital Technology Performance Review
Performance Review Contribution to Revenue from Contract with Customers Digital Technology % 421 Dec 19 Dec 20 YoY growth ₦ 'million 58 4% 40% FY 19 FY 20 Our digital consultancy business line recorded an impressive Contribution to revenue from contracts grew from 4% in 2019 to yearly growth expandi
Slide 22: Outlook
OUTLOOK FY 2020 Presentation
Slide 23: Strategic Plans for 2021
Strategic Plans for 2021 ▪ Position Africa Prudential as a go-to digital ▪ Deepen our capital market penetration by solution provider on the African Market. deploying innovative technology to transform investors experience ▪ Deepening our digital technology offerings in application development, appl
Slide 24: Appendix
APPENDIX FY 2020 Presentation
Slide 25: Statement of Comprehensive Income
APPENDIX Statement of Comprehensive Income (in thousands of Nigerian Naira) Dec-20 Dec-19 Revenue from contracts with customers 1,059,189 1,502,241 Interest Income 2,448,944 2,399,861 Gross earnings 3,508,133 3,902,102 Other income 32,398 56,035 Credit loss reversals/(expenses) 7,733 245,991 Personn
Slide 26: Statement of Financial Position
APPENDIX Statement of Financial Position (in thousands of Nigerian Naira) Dec-20 Dec-19 ASSETS Cash and cash equivalents 1,005,752 1,622,185 Equity instruments at fair value through OCI 3,058,020 243,328 Debt instruments at fair value through OCI 13,014,137 15,982,783 Trade and other receivables 298
Slide 27: Thank you! Questions and Answers
Thank you !!! Questions and Answers FY 2020 Presentation