Fawry For Banking Technology And Electronic Payment · EGX:FWRY
Fawry For Banking Technology And Electronic Payment — Q4 2023 Earnings Presentation
28 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Mar 19, 2024
Slide 1: 4Q 2023 Earnings Call
4Q 2023 Earnings Call Mar 19, 2024 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 4Q 2023 Operating & financial results 01 Dive into 4Q 2023 results 02 Capex investments & digital growth 03 FY 2024 guidance 04 Q&A 05 3
Slide 4: 4Q 2023 Operating & Financial Results Highlights
4Q 2023 Operating & Financial Results Highlights 4
Slide 5: Main highlights for the period
Main highlights for the period • Banking Services segment, contributed the lion share of top-line growth for 4Q2023, with 49% 100+ bn of consolidated revenue growth, in line with company’s revenue diversification strategy Throughput for 4Q23 • The Company maintained increasing profitability, reachin
Slide 6: Achieved double-digit growth across operational KPIs
Achieved double-digit growth across operational KPIs Active Network Total POS +18% Number of Total transactions Avg transaction Customers +5% (000s) services +40% +25% (mn) value +35% (EGP) (mn) 331 3,165 51.7 437 240 349 2,269 178 49.4 280 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q
Slide 7: EBITDA margin reached 42.6%, Net profit almost doubled
EBITDA margin reached 42.6%, Net profit almost doubled Throughput +69% Revenue +47% EBITDA +72% Net profit +97% (EGP bn) (EGP mn) (EGP mn) (EGP mn) 407 229 105 955 651 237 62 116 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Total revenue excluding airtime would have grown by 54% y
Slide 8: Throughput exceeded EGP 100bn per quarter
Throughput exceeded EGP 100bn per quarter Quarterly throughput (EGP bn) +69% + 105 95 79 69 62 55 47 40 41 36 30 24 22 25 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 8
Slide 9: Quarterly revenue almost reached EGP 1bn
Quarterly revenue almost reached EGP 1bn Quarterly revenue +47% 955 873 768 651 676 614 531 467 483 448 394 343 342 349 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 9
Slide 10: Revenue diversification continued, with acceptance and financial services growing in contribution
Revenue diversification continued, with acceptance and financial services growing in contribution Revenue contribution by quarter Contribution to y-o-y revenue growth for 2% 1% 2% 3% 4Q 2023 6% 4% 3% 6% 7% 7% 7% 7% 12% 13% 13% 12% 12% 15% 7% 18% 20% 20% 19% 17% 20% 21% 8% 15% 16% 17% 18% 19% 20% 19%
Slide 11: Implementing effective cost control measures resulted in a reduction in the proportion of revenue
Implementing effective cost control measures resulted in a reduction in the proportion of revenue allocated, bolstering financial efficiency y-o-y expenses increase Expense item as % of revenue 13% 13% 101% 12% 12% 11% 10% 72% 61% 55% 45% 34% 30% 4% 4% 24% 24% 3% Marketing Selling HR Marketing Selli
Slide 12: …Leading to overall margins improvement
…Leading to overall margins improvement Gross profit margin (%) +1.5% 63.8% 64.2% 62.7% 62.0% 61.6% 59.6% 57.5% 57.7% 58.0% 55.5% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 EBITDA margin (%) +6.3% 39.7% 41.9% 42.6% 36.3% 35.5% 30.9% 28.2% 27.8% 30.6% 26.3% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2
Slide 13: Dive into 2023 Figures
WAXY Woe Dive into 40 2023 Figures
Slide 14: ADP beat guidance, growing at 18% y-o-y
ADP beat guidance, growing at 18% y-o-y ADP throughput value ADP revenue (EGP mn) Contribution to ADP revenue growth +24% +18% 336 14% 46% 33% 285 8% 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Telecom ADSL Utilities Others 14
Slide 15: Acceptance up by 77% y-o-y, exceeded guidance of 65%, while agent banking services met guidance
Acceptance up by 77% y-o-y, exceeded guidance of 65%, while agent banking services met guidance Acceptance revenue (EGP mn) Agent Banking revenue (EGP mn) +51% +77% 196 189 130 107 4Q 2022 4Q 2023 4Q 2022 4Q 2023 15
Slide 16: Instore acceptance grew at a higher rate than POS growth
Instore acceptance grew at a higher rate than POS growth, indicating higher utilization per POS Revenue from instore Acceptance enabled POS Revenue from online acceptance (000s) acceptance +49% +132% +22% 287 235 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 16
Slide 17: Financial services revenue went up by 68% y-o-y, with double digit growth for all Microfinance KPIs
Financial services revenue went up by 68% y-o-y, with double digit growth for all Microfinance KPIs • Number of Microfinance loans granted in 2023 Gross loan portfolio Financial services reached 35.8k, up by 16% from 30.8k in 2022 (EGP mn) revenue (EGP mn) • Disbursements for Microfinance for 4Q23 r
Slide 18: Microfinance portfolio quality maintained, PAR 30 still below 2%
Microfinance portfolio quality maintained, PAR 30 still below 2% Number of months after disbursement PAR30, % (by years) 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2020 2021 2022 2023 18
Slide 19: Supply Chain revenue grew despite the boycott affecting some clients
Despite the boycott affecting some of our clients, Supply Chain revenue grew on the back of inflation and increase in adoption Supply chain throughput Supply chain revenue (EGPmn) +63% +71% 65 40 4Q 2022 4Q 2023 4Q 2022 4Q 2023 19
Slide 20: Capex Investments & Digital growth
Capex Investments & Digital growth 20
Slide 21: Capex accounted for 21% of sales, with POS spending contributing 42%
Capital expenditure (Capex) accounted for 21% of sales, aligning with guidance, with POS spending contributing 42%. Capex in 2023 283 261 79 55 POS Software licenses & programs Networks & servers Others 21
Slide 22: Embedded finance lies at the heart of myFawry
Embedded finance lies at the heart of myFawry Through 2023, the company launched, i) myFawry prepaid card (Yellow Card), ii) BNPL myFawry cumulative downloads and iii) the money market fund, thereby offering payments, 7.9 EGP Bn Annualized Dec 23 14,000,000 12,000,000 lending, discounts, savings and
Slide 23: Increase in digital transactions
Increase in digital transactions Mobile wallet1 Mobile wallet1 Total digital 2 Total transactions transactions (mn) processed value transactions (mn) (mn) (EGP bn) +25% +85% +106% +108% 47 111 437 60 349 25 53 29 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 4Q 2022 4Q 2023 1 These figures reflect
Slide 24: FY 2024 Guidance
Qe M\\ \\ SQ We uidance
Slide 25: Revenue growth guidance by offering
Revenue growth guidance by offering… Revenue growth by offering (%) 127% 92% 90% 88% 87% 88% 80% 76% 60% 59% 48% 42% 35% 32% 31% 17% 10% 11% 2022 2023 2024P ADP Acceptance Agent Banking Financial services Supply Chain Solutions Technology & others 25
Slide 26: Driving diversification further and growing more into financial services
Driving diversification further and growing more into financial services 1% 2% 3% 3% 6% 6% 7% 7% 9% 12% 13% 18% 15% 19% 20% 10% 20% 14% 19% 22% 59% 48% 39% 31% 2021 2022 2023 2024P ADP Acceptance Agent Banking Financial services Supply Chain Solutions Technology & others 26
Slide 27: Company to maintain growth at 35%+ levels, with improving EBITDA margin by 2%
Company to maintain growth at 35%+ levels, with improving EBITDA margin by 2% Revenue growth EBITDA margin 44% 42% 37% 40% 34% 37% 31% 31% 2021 2022 2023 2024P 2021 2022 2023 2024P ESOP expense in EGP mn Capex to sales 23% 23% 20% 21% 99 106 83 52 2021 2022 2023 2024P 2021 2022 2023 2024P 27
Slide 28: Q&A
Q&A 28
Fawry For Banking Technology And Electronic Payment — Q4 2023 Earnings Presentation on 6ix