Fawry For Banking Technology And Electronic Payment · EGX:FWRY
Fawry For Banking Technology And Electronic Payment — Q1 2023 Earnings Presentation
23 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, May 22, 2023
Slide 1: 1Q 2023 Earnings Call
1Q 2023 Earnings Call May 22, 2023 1
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 1Q 2023 Operating & financial results 01 Dive into 1Q 2023 results 02 Capex investments & digital growth 03 Q&A 04 3
Slide 4: 1Q23 Operating & Financial Results Highlights
1Q23 Operating & Financial Results Highlights 4
Slide 5: Operational KPIs continue growth trajectory
Operational KPIs continue growth trajectory… Active customers + 18% Total POS + 7% Number of Total transactions Avg transaction (Mn) (000) Services + 49% +20% (Mn) Value + 37% (EGP) 311 2,685 356 50 192 296 1,798 140 290 42 1Q222 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 5
Slide 6: Driving triple digit growth on the bottom line
…driving triple digit growth on the bottom line Throughput + 65% Revenue + 40% EBITDA + 79% Adj. net profit* 242% (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 68 676 147 240 483 41 134 43 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Total revenue excluding airtime would have grown by 48% y-o-y, as airtime grew by
Slide 7: Company manages to maintain y-o-y growth in throughput
Company manages to maintain y-o-y growth in throughput Quarterly throughput +65% + (EGP Bn) 68 62 55 47 40 41 36 30 24 25 22 20 15 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 7
Slide 8: Driving strong growth in revenue
…driving strong growth in revenue Quarterly revenues +40% (EGP Mn) 676 651 614 531 467 483 448 394 343 342 349 291 258 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 8
Slide 9: Successful revenue diversification as the company expands offerings
Successful revenue diversification as the company expands offerings Revenue contribution by quarter Contribution to y-o-y growth for 1Q23 3% 2% 3% 2% 3% 5% 6% 6% 6% 7% 10% 11% 11% 12% 12% 4.8% 10.4% 16.8% 32% 32% 33% 36% 37% 18.1% 51% 49% 48% 44% 41% 49.9% 1Q22 2Q22 3Q22 4Q22 1Q23 ADP Banking servic
Slide 10: Cost control measures lead to expenses normalization
In addition to cost control measures lead to expenses normalization, minimizing the y-o-y increase and a lower % of revenue y-o-y expenses increase Expense items as % of revenue 73% 70% 14% 13% 13% 59% 12% 12% 11% 52% 47% 42% 38% 25% 5% 5% 4% 16% Marketing Selling HR Marketing Selling HR 1Q21 1Q22 1
Slide 11: Leading to overall margins improvement
…Leading to overall margins improvement +4.3% 62.7% 62.0% 59.6% 57.5% 57.7% 58.0% 55.6% 56.2% 55.5% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 +7.4% 36.3% 35.5% 29.1% 29.1% 30.9% 30.5% 28.3% 28.1% 26.2% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 11
Slide 12: Dive into FY 1Q23 figures
Dive into FY 1Q23 figures 12
Slide 13: ADP achieving double digit growth, in-line with guidance
ADP achieving double digit growth, in-line with guidance ADP throughput ADP revenue Contribution to ADP value (EGP Mn) revenue growth +13% +30% 278 32% 33% 15% 20% 245 Telecom ADSL Utilities Others 1Q22 1Q23 1Q22 1Q23 13
Slide 14: Acceptance doubling, beating guidance, while agent banking grows
Acceptance doubling, beating guidance of 65% y-o-y growth, while agent banking services growing by double-digit growth rates Acceptance revenue Agent Banking revenue (EGP Mn) (EGP Mn) +41% +99% 134 116 95 58 1Q22 1Q23 1Q22 1Q23 14
Slide 15: Instore acceptance continues to grow by triple digit figures
Instore acceptance continues to grow by triple digit figures Revenue from instore Acceptance enabled POS Revenue from online Acceptance (‘000) acceptance +169% +26% +61% 266 211 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 15
Slide 16: Microfinance: Business Developments & Earnings Highlights
Microfinance: Business Developments & Earnings Highlights • FRA raised credit limits by 10% to EGP 220k Loan portfolio Microfinance revenue in May 2023 (EGP Mn) (EGP Mn) • Number of loans grew by 54% y-o-y +47% +74% • EGP 193 Mn disbursed over 8.5 k loans in 779 82 1Q23 • Average loan portfolio per
Slide 17: Microfinance: Portfolio quality & Earnings Highlights
Microfinance: Portfolio quality & Earnings Highlights Number of months after disbursement PAR30, % (by years) 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2019 2020 2021 2022 2023 17
Slide 18: Supply Chain revenue growing on the back of inflation
Supply Chain revenue growing on the back of inflation Supply chain throughput Supply chain revenue (EGP Mn) +81% +97% 45 25 1Q22 1Q23 1Q22 1Q23 18
Slide 19: Capex Investments & Digital growth
Capex Investments & Digital growth 19
Slide 20: Investments in PoS, software license & programs continue to contribute to majority of capex
Investments in PoS, software license & programs continue to contribute to majority of capex Capex in 1Q23, including PUC 147 62 13 7 POS Software licenses & programs Networks & servers Others 20
Slide 21: Financial inclusion lies at the center of the company's strategy in the consumer segment
Financial inclusion lies at the center of the company’s strategy in the consumer segment myFawry cumulative downloads 4.2 Lending business in testing phase after the launch of the EGP Bn 10,000,000 9,000,000 myFarwy prepaid card that Annualized Mar 23 8,000,000 took place in 1Q23 throughput 7,000,00
Slide 22: Growing digital transactions activity
Growing digital transactions activity Mobile Wallet¹ Transactions Mobile Wallet¹ Processed Value Total digital 2 Transactions Total Transactions (Mn) (EGP Bn) (Mn) (Mn) +73% +106% +75% +20% 66 32 37 356 296 38 19 18 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1 These figures reflect total processed valu
Slide 23: Q&A
Q&A 23
Fawry For Banking Technology And Electronic Payment — Q1 2023 Earnings Presentation on 6ix