Al Ansari Financial Services Pjsc · DFM:ALANSARI
Al Ansari Financial Services Pjsc — H1 2023 Earnings Presentation
21 slides from Al Ansari Financial Services Pjsc's earnings presentation, Aug 8, 2023
Slide 1: Al Ansari Financial Services PJSC Investor Presentation H1 2023
Al Ansari Financial Services PJSC Investor Presentation H1 2023 08 Aug 2023
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by Al Ansari Financial Services PJSC (the “Company” or the “Group”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The company relies on information obtained from sourc
Slide 3: Table of Contents
Agenda Table of Contents 1. H1 2023 Financial Highlights 5 2. Macro and Industry Updates 9 3. Business Performance Highlights 11 4. Financial and Cash Position Highlights 14 5. Dividend Policy 16 6. Growth Strategy Updates & Guidance 18 3 H1 2023 Results
Slide 4: Today's Presenters
Today’s Presenters Rashed A. Al Ansari Mohammad Bitar Faisal Anwar Group Chief Executive Officer Deputy Group Chief Executive Group Chief Financial Officer Officer 4 H1 2023 Results
Slide 5: H1 2023 Financial Highlights
H1 2023 Financial Highlights
Slide 6: H1 2023 Key Highlights
H1 2023 Key Highlights ROBUST GROWTH IN OPERATING INCOME, SUSTAINING HEALTHY PACE OF GROWTH UNDERPINNED BY FAVOURABLE MARKET CONDITIONS H1'23 Operating Income YoY EBITDA HOLDS STEADY DESPITE INCREASED OPERATING COST BANK NOTES AND WPS ARE TOP PERFORMERS +5.0% H1'23 No. of Transactions YoY CORPORATE
Slide 7: H1 Financial & Operating Performance Snapshot
H1 Financial & Operating Performance1 Snapshot Financial Performance Operating Performance As of 30 Jun 2023: Net profit (AED) EBITDA (AED) 299 mn 24.4 mn 238 263 mn H1’22: 301 mn Total number of transactions +10.7% vs. H1’22 Number of physical branches 15 net new branches since H1’22 EBITDA H122: 2
Slide 8: Income Statement Overview
Income Statement Overview % % Income Statement (in AED m) Q2 ’23 Q2 ’22 change H1 ’23 H1 ‘22 change Commentary • Net gain on currency exchange saw a dip of 3.1% year on year (YoY) Net gain on currency exchange 131 153 (14.6)% 281 290 (3.1)% due to a decrease of 12% in remittance volumes. During H1 2
Slide 9: Our home market, the UAE, continues to perform exceptionally
Our home market, the UAE, continues to perform exceptionally UAE’s economy remains resilient Performing exceptionally on all economic fronts GDP Growth Forecast UAE PMI 7.9% Tourism sector continues to Q1 2023 GDP expanded boom, with Dubai 56.9 welcoming 8.5 mn tourists 3.8% YoY, with non oil GDP in
Slide 10: Update on Exchange business in UAE
Update on Exchange business in UAE Financial Performance of Exchange Houses vs. Overview of Exchange Business AAFS (2022) (2022) 2nd AED 2.9 bn 40% 84 Licensed exchange UAE ranks globally Total core income AAFS’ contribution to houses the UAE for personal outward of exchange houses core income in 20
Slide 11: Remittances: H1 2023
Remittances: H1 2023 Outward Personal Remittances- Value of Transactions (AED bn) Operating Income (AED mn) Transactions (‘000) 24.2 363 350 21.2 21.2 18.1 Top 5 6,649 -3.7% Corridors 6,141 -8% 2,081 Others 2,327 12% 3.0 3.1 H1 2022 H1 2023 H1 2022 H1 2023 Personal Corporate Total H1 2022 H1 2023 Ou
Slide 12: Bank Notes & Prepaid Cards: H1 2023
Bank Notes & Prepaid Cards: H1 2023 Operating Income Bank Notes No. of Transaction Bank Notes Value of Transactions (AED mn) (mn) (AED bn) 184 42.5 151 H1 2022 H1 2023 4.0 31.7 3.3 22.3% 27.2 23.6% 19.0 15.3 12.8 H1 2022 H1 2023 H1 2022 H1 2023 Retail Wholesale Total No. of Transactions for Major Pr
Slide 13: WPS and Other Products & Services: H1 2023
WPS and Other Products & Services: H1 2023 CashTrans WPS Operating Income (AED mn) Other Products & Services (AED mn) (End-to-end cash management) 12.38 No. of third-party customers 32.17 28 18.5% 10.21 21.3% 300% 27.14 7 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 Bill Collection No. of Transac
Slide 14: Balance Sheet Overview
Balance Sheet Overview % Commentary (In AED m) Jun ‘23 Dec’22 change • The increase in Right of Use assets by 43% can be attributed to two factors: the renewal of the Head Office lease for an additional six Right of use assets 96 67 43.0% years (with a related party) and the inclusion of new branche
Slide 15: Capex-light Business Model, Easy to Scale
Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth and Value to the Shareholders Current Assets and Capex(1) (AED mn) Current Liabilities (AED bn) Commentary % of Operating Total capex as 1.8 Net 1.5 Majority of the current assets are Income 2.4% 3.6% ▪ 3.4 composed by cash
Slide 16: Dividend Policy
Dividend Policy Historical Dividends (AED mn) • Minimum Annual Dividends: • FY 2023: The Group expects to pay a Ratio(1) Payout minimum dividend amount of AED 600 72% 76% million for the 2023FY, to be paid in equal instalments in Oct. 2023 and Apr. 2024. FY20 FY21 FY22 FY23e 1,076 • Beyond 2023: The
Slide 17: Growth Strategy & Guidance
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Slide 18: Clear growth strategy centered on 6 pillars
Clear growth strategy centered on 6 pillars 1 Physical Network Expansion 2 Geographic Expansion 3 Digital Innovation Growing market share in Kuwait Smart 80% of remittance and entering other attractive counters in market in 2027 is GCC markets branches expected to still be Continued investment Secur
Slide 19: Growth strategy progress
Growth strategy progress 1 Physical Network Expansion Geographic Expansion 3 Digital Innovation 2 • Al Ansari Exchange in Kuwait Total No. of Digital Transaction ( ’000) (AAEK) integration with Oman H1 Opened 15 new branches Exchange is ongoing. 23 1866 31% since Q2’ 22 • AAEK to be consolidated int
Slide 20: Short to Mid Term Guidance
Short to Mid Term Guidance Item Target (annual growth rate unless Time Horizon otherwise stated) Branch Network 300 total no. of physical branches Mid-term Remittance Income Single-digit Short–term Low-teens Mid-term Bank Notes Income High-teens Short–term WPS and other products High-teens Short–ter
Slide 21: Thank You
© AtansariF inancial Services ) Thank You )
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