Fawry For Banking Technology And Electronic Payment · EGX:FWRY

Fawry For Banking Technology And Electronic Payment — Q3 2024 Earnings Presentation

25 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Nov 21, 2024

  1. Slide 1: 3Q 2024 Earnings Call

    3Q 2024 Earnings Call November 21, 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 3Q 2024 Operating & financial results 01 Dive into 3Q 2024 payments business figures 02 Dive into 3Q 2024 financial services figures 03 Digital growth 04 3

  4. Slide 4: 3Q 2024 Operating & Financial Results Highlights

    3Q 2024 Operating & Financial Results Highlights 4

  5. Slide 5: Record breaking results for 3Q 2024

    Record breaking results for 3Q 2024 77% • Revenue growth came at 77% y-o-y, the highest the company has witnessed since 2015 Y-o-Y revenue growth for 3Q24, highest since • Acceptance business throughput more than doubled to reach EGP 46.8 billion in 3Q24 2015 • BNPL loan portfolio reached EGP 653 mn

  6. Slide 6: Operational KPIs achieved double digits growth

    Operational KPIs achieved double digits growth Active Network Total POS +16% Number of services Total transactions Avg transaction Customers +3% (mn) (000s) +19% +24% (mn) value +47% (EGP) 333 383 3,559 522 52.9 422 226 51.2 2,986 331 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3

  7. Slide 7: EBITDA and Net income more than doubled, reaching highest margins since inception

    EBITDA and Net income more than doubled, while reaching the highest margins since inception Throughput +82% Revenue +77% Average revenue per EBITDA +119% Net profit +135% (EGP bn) (EGP mn) trx +34% (EGP mn) (EGP mn) (EGP) 174 1,546 2.4 803 478 1.8 95 873 366 203 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 20

  8. Slide 8: Quarterly throughput reached EGP 174 bn, up 82% y-o-y

    Quarterly throughput reached EGP 174 bn, up by 82% y-o-y, highest growth rate achieved Quarterly throughput (EGP bn) +82% + 174 +73% + +52% + 129 116 105 95 79 69 62 55 41 47 36 40 25 30 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 8

  9. Slide 9: Quarterly revenue went up by 77% y-o-y

    Quarterly revenue went up by 77% y-o-y, 1.8x that of 3Q 2023 growth Quarterly revenue (EGP mn) +77% +42% 1,546 +37% 1,212 1,087 955 873 768 651 676 614 483 531 448 467 349 394 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 9

  10. Slide 10: Revenue diversification with Banking and financial services growing in contribution

    This is achieved due to the successful revenue diversification, with Banking and financial services growing in contribution Revenue contribution by quarter Contribution to y-o-y revenue growth for 2% 3% 2% 2% 3Q 2024 4% 3% 3% 7% 7% 7% 7% 7% 7% 6% 13% 12% 12% 15% 16% 18% 17% 4% 1% 20% 20% 19% 21% 20%

  11. Slide 11: Despite year-over-year increases, expenses declined against revenue

    Despite year-over-year increases, expenses declined against revenue y-o-y expenses increase Expense item as % of revenue 57% 53% 13% 12% 11% 11% 40% 35% 36% 9% 9% 25% 26% 22% 5% 4% 14% 3% Marketing Selling HR Marketing Selling HR 3Q 2022 3Q 2023 3Q 2024 3Q 2022 3Q 2023 3Q 2024 11

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

    …Leading to overall margins improvement, reaching the highest margins since inception Gross profit margin (%) +2.6% 65.8% 66.1% 66.3% 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 3Q24 EBITDA margin (%) +10.0% 51.9% 42.6% 46.6% 47.0% 39.7% 41.9% 36

  13. Slide 13: Dive into 3Q 2024 payments business figures

    Dive into 3Q 2024 payments business figures 13

  14. Slide 14: ADP continued to beat guidance, grew 38% y-o-y

    ADP continued to beat guidance, grew at 38% y-o-y driven by increases in utilities prices ADP throughput value ADP revenue (EGP mn) Contribution to ADP revenue growth +36% +38% 6% 27% 482 349 5% 62% 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Telecom ADSL Utilities Others 14

  15. Slide 15: Agent Banking more than doubled, acceptance growing

    Agent Banking more than doubled, with acceptance almost reaching double figures Acceptance revenue (EGP mn) Agent Banking revenue (EGP mn) +113% +90% 350 312 164 165 3Q 2023 3Q 2024 3Q 2023 3Q 2024 15

  16. Slide 16: Both acceptance revenue segments achieved growth

    Both acceptance revenue segments achieved growth, with higher acceptance throughput per POS and online payments Revenue from instore Acceptance enabled POS Revenue from online acceptance (000s) acceptance +107% +71% +23% 356 290 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 16

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

    Supply Chain revenue grew on the back of inflation and increase in adoption Supply chain throughput Supply chain revenue (EGPmn) +43% +29% 93 65 3Q 2023 3Q 2024 3Q 2023 3Q 2024 17

  18. Slide 18: Dive into 3Q 2024 financial services figures

    Dive into 3Q 2024 financial services figures 18

  19. Slide 19: MSME lending loan portfolio doubled

    MSME lending loan portfolio doubled, despite challenging macro economic developments Gross MSME loan MSME lending • Number of MSME loans granted in 3Q24 reached 15.2k, up portfolio (EGP mn) revenue (EGP mn) by 58% y-o-y • Disbursements for MSME loans for 3Q24 reached EGP 812mn up by 146% from EGP 33

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

    …all while maintaining loan portfolio quality, PAR 30 still below 2% PAR30, % (avg 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 2020 2021 2022 2023 2024 20

  21. Slide 21: Other financial services revenue fueled by BNPL and Insurance Brokerage

    Other financial services revenue continued its growth trajectory, fueled by BNPL and Insurance Brokerage business Other financial services revenue (EGP mn) • Consumer finance (BNPL) gross loan portfolio reached 653mn by end of 3Q24 84 • Total spend by end Of Q3 reached EGP 945mn in 2024 and EGP 1.17

  22. Slide 22: Digital growth

    Digital growth 22

  23. Slide 23: myFawry transitions into a fully fledged Neo Banking app

    myFawry transitions into a fully fledged Neo Banking app 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 nearly tripling y- o-y 19.3 EGP Bn Annualized Sep 24 16,000,00

  24. Slide 24: Digital transactions growth

    Digital transactions growth Mobile wallet1 Mobile wallet1 Total digital 2 Total transactions transactions (mn) processed value transactions (mn) (mn) (EGP bn) +23% +50% +116% +57% 522 64 158 93 422 42 101 43 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 1 These figures reflect tota

  25. Slide 25: Q&A

    Q&A 25

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