Al Ansari Financial Services Pjsc · DFM:ALANSARI
Al Ansari Financial Services Pjsc — 9M 2024 Earnings Presentation
28 slides from Al Ansari Financial Services Pjsc's earnings presentation, November 2024
Slide 1: 9M 2024 Financial Results Presentation
9M 2024 Financial Results Presentation
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: Today’s Presenters
Today’s Presenters Rashed Al Ansari Mohammad Bitar Faisal Anwar Group Chief Executive Officer Deputy Group Chief Executive Officer Group Chief Financial Officer 3
Slide 4: Table of Contents
01 Q3 2024 and 9M 2024 Highlights • Key Highlights • Quarter to Quarter Journey • Financial & Operating Performance Snapshot 02 Business Highlights • Revenue Contribution • Market Analysis • Remittances • Bank Notes & Prepaid Cards • WPS and Other Products & Services CONTENTS 03 Financial Highlights
Slide 5: Q3 2024 & 9M 2024 Highlights
Q3 2024 & 9M 2024 Highlights 01 Q3 2024 Key Highlights 02 Quarter to Quarter Journey 02 9M 2024 Financial & Operating Performance Snapshot
Slide 6: Q3 2024 Key Highlights
Q3 2024 Key Highlights Reported Comparison • Operating Income increased by 1% YoY to AED 288m, attributed to an increase in the Bank Notes business. Excluding one-off Iraq +1% -7% -17% remittance income received in Q3’23 (“Adjusted Operating Income EBITDA Net Profit After Tax basis”), Operating Inco
Slide 7: Quarter to Quarter Journey
Quarter to Quarter Journey Excluding one-off Iraq Income 300 1% 303 4% 292 288 288 285 6% -6% 275 275 -1% 9% -3% 268 3% 263 260 3% Operating Income -6% (AED’mn) Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 • Q4’22 - Q3’23: There is a downward trend witnessed in operating income
Slide 8: 9M 2024 Financial & Operating Performance Snapshot
9M 2024 Financial & Operating Performance Snapshot Financial Performance (AED) Operating Performance Net Profit After Tax EBITDA As of 30 September 2024 308 mn 388 mn 37.3 mn 263 Rep 9M’23: 439 mn (-11%) Total number of Number of physical Rep 9M’23: 388 mn (-20%) Adj 9M’23: 395 mn (-2%) transactions
Slide 9: Business Highlights
• Revenue Contribution • Market Analysis Business Highlights • Remittances • Bank Notes & Prepaid Cards • WPS and Other Products & Services
Slide 10: Revenue Contribution 9M’23 vs 9M’24
Revenue Contribution 9M’23 9M’24 Others Others WPS WPS + 10% 2% + 9% 3% 6% 6% Bank Bank Notes Notes Remittances - 2% Remittances - 2% 32% 31% 60% 60% % Growth in Revenue 10
Slide 11: Our home market, the UAE, continues to remain robust despite global headwind
Our home market, the UAE, continues to remain robust despite global headwind UAE Economy Remains Resilient on All Fronts c. 3.9% c. 5.4% c. 35% Encouraging Overall UAE GDP UAE Non-oil GDP Growth in FDI Macro Growth Expected in Growth Expected in Inflows in UAE in 2024 2024 2023 Robust 12% c. 22m c.
Slide 12: Update on Exchange Business in UAE
Update on Exchange Business in UAE Financial Performance of Exchange Houses vs. AAFS (2023) Local Market Share (2023) Overall Exchange House Sector AAFS Specific AED 3.2 bn 38% 36% 16% 32% Total income of AAFS contribution to Remittances Remittances Market WPS Market Share exchange houses total inco
Slide 13: Remittances: 9M 2024
Remittances: 9M 2024 Worldwide Cash Express (“WWCE”) Operating Income (AED’mn)* Operating Income (AED’000) 9 Months Movement Quarter Movement 521 1,828 513 481 7% 108% 172 168 147 14% -2% 879 -3% 9M'23 9M'23 (adj) 9M'24 Q3'23 Q3'23 (adj) Q3'24 9M'23 9M'24 Outward Remittances – Value (AED’bn) Digital
Slide 14: Bank Notes: 9M 2024
Bank Notes: 9M 2024* Operating Income (AED’mn) 9 Months Movement Quarter Movement 274 268 94 -2% 90 8% 87 4% 9M'23 9M'24 Q3'23 Q2'24 Q3'24 Bank Notes Value of Transactions (AED’bn) Bank Notes No. of Transactions (‘mn) -12% 63 4% 7.2 56 7.0 -18% -2% 38 32 25 24 Retail Wholesale Total 9M'23 9M'24 9M'2
Slide 15: WPS and Other Products & Services: 9M 2024
WPS and Other Products & Services: 9M 2024 CashTrans Other Products & Services WPS Operating Income (AED’mn) (End-to-end cash management) Operating Income (AED’mn) Operating Income (AED’mn) * 53 49 9% 21 10% 19 23% 15 12 9M'23 9M'24 9M'23 9M'24 9M'23 9M'24 WPS Salary Disbursals (‘000) Bill Collectio
Slide 16: Financial Highlights
Financial Highlights • Income Statement Overview • Balance Sheet Overview • Capex Business Model
Slide 17: Income Statement Overview
Income Statement Overview AED‘000 Q3’24 Q3’23 % change 9M‘24 9M‘23 % change Commentary Net gain on currency exchange 138,403 131,262 5.4% 403,934 411,869 (1.9%) • Net gain on currency exchange saw a slight dip of 1.9% YoY mainly due to decline in Bank Notes wholesale volumes, which was partially off
Slide 18: Balance Sheet Overview
Balance Sheet Overview AED ‘000 Sep‘24 Dec’23 % Change Commentary Right of use assets 100,420 92,031 9.1% • The increase in Right of Use assets by 9.1% can be attributed to addition of new branch locations and the renewal of lease contracts expired during the Property and Equipment 73,335 71,926 2.0
Slide 19: Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth
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 Total capex as Net 1.7 1.5 % of Operating 3.6% 2.8% Income ▪ Majority of the current assets are composed of 2.9 2.9 3
Slide 20: Dividend Policy
Dividend Policy • Dividend Policy
Slide 21: Dividend Policy
Dividend Policy Historical Dividends (AED’mn) Dividend Policy: 1,076 • The Group expects to pay (on a semi-annual basis in April and October of each year) a minimum dividend of 70% of the net profit generated Dividend Distribution: 600 • H1 2024: The Group distributed a dividend of AED 157.5 million
Slide 22: Growth Strategy
Growth Strategy • 6 Pillar Strategy
Slide 23: Clear Growth Strategy Centered on 6 Pillars
Clear Growth Strategy Centered on 6 Pillars 1 Physical Network Expansion 2 Geographic Expansion 3 Digital Innovation Smart 80% of remittance market Growing market share in Kuwait counters in in 2027 is expected to still and entering other attractive branches Continued investment in be face-to-face G
Slide 24: Clear Growth Strategy Centered on 6 Pillars (continued)
Clear Growth Strategy Centered on 6 Pillars (continued) 4 Margin Increases 5 Corporate Cross-border Remittances 6 CashTrans c.370K SMEs active in the UAE Planned and ongoing Scope to increase margins investments for central given the quality of the services, market leadership position and 190K wareh
Slide 25: Guidance
Guidance • Short to Mid Term Guidance • Key Takeaways
Slide 26: Short to Mid Term Guidance
Short to Mid Term Guidance* Target Item Time Horizon (annual growth rate unless otherwise stated) Branch Network 300 total no. of physical branches Mid-term Single digit growth Short–term Remittance Income Low to mid teens Mid-term Single digit growth Short–term Bank Notes Income Low to mid teens Mi
Slide 27: Key Takeaways from Q3 2024 and 9M 2024
Key Takeaways from Q3 2024 and 9M 2024 Upward Performance Trend Actionable Pipeline Q3’24 results demonstrate the Strong pipeline of strategic start of the recovery trend in the initiatives are well underway Company’s overall performance including Digital Wallet, BFC acquisition, Corporate Services
Slide 28: Thank you
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Al Ansari Financial Services PJSC — 9M 2024 Earnings Presentation on 6ix