Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — Q1 2022 Earnings Presentation
30 slides from Contact Financial Holding Sae's earnings presentation, 2022
Slide 1: Results Presentation 1Q 2022
Results Presentation 1Q 2022
Slide 2: Disclaimer
Introduction Disclaimer This presentation has been prepared by Contact Financial Holding (the “Company”. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any
Slide 3: Agenda
AGENDA 1 Introduction 4 2 Our Edge 8 3 1Q 2022 Performance Review 15 4 Appendix 27
Slide 4: Introduction
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Slide 5: Important note regarding updates to group financial reporting
Introduction Important note regarding updates to group financial reporting Starting with the FY 2021 financial statements, the Group has changed the structure and constituents of its financial reporting, with changes affecting primarily the Consolidated Income Statement and segmental reporting in th
Slide 6: At a Glance
Introduction At a Glance Egypt’s leading non-bank financial services provider Group Structure 1st EGX Consumer Finance License in Egypt with +20yrs of offering innovative financial services Listed since 2018 under the ticker CNFN.CA 36 bn 1,851 mn Financial Holding EGP EGP INSURANCE Gross Written &
Slide 7: Results Snapshot
Introduction Results Snapshot Contact kicked off 2022 building on last year’s record-breaking performance, to deliver strong financial and operational results in the first three months of the new year EGP 419 mn EGP 154 mn 25.6% Consolidated Total Operating Income Consolidated Net Income (1) Annuali
Slide 8: Our Edge
Our Edge
Slide 9: Our Edge
Our Edge Our Edge Contact deploys a well-defined growth strategy covering four primary pillars 2 3 Market-wide Market-leading risk coverage management and including banked unmatched credit and unbanked and collection population frameworks Comprehensive product offering Diversified, highly- 1 coverin
Slide 10: Well-Defined Growth Strategy
Our Edge Well-Defined Growth Strategy Contact has a clear vision for the business with a well-defined growth strategy to achieve it Contact Today A B C D E The widest product Fully digitized proprietary Strong physical & digital Superior funding Highly profitable offering on the market credit engine
Slide 11: Comprehensive Product Offering Covering Full Customer Financial Lifecycle
Our Edge Comprehensive Product Offering Covering Full Customer Financial Lifecycle Through its highly-synergistic business segments and product range, Contact serves the financial needs of a wide range of Egyptians, leveraging technology to reshape access to credit and protection Financing 86% Insur
Slide 12: Market-wide Coverage Including Banked and Unbanked Population
Our Edge Market-wide Coverage Including Banked and Unbanked Population Throughout 2021 and the first quarter of 2022, management delivered on its expansion strategy, growing and diversifying its direct-to- consumer reach across both physical and digital channels, and enabling the company to target a
Slide 13: Unmatched Risk Management and Collection Frameworks
Our Edge Unmatched Risk Management and Collection Frameworks Contact boasts a thorough and unique credit assessment approach and a highly effective collections function Distinctive credit assessment methodology refined over +20 years of financing experience Ability to target and process a wide Uniqu
Slide 14: Diversified, Highly Liquid Funding Base
Our Edge Diversified, Highly Liquid Funding Base Contact operates a superior funding capability underpinned by diversified sources with efficient cost of funding to cater for business growth Funding Strategy Overview Overview of 1Q-2022 Funding Base D Diversified funding base enabling consistent liq
Slide 15: 1Q 2022 Performance Review
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Slide 16: Financing Division – Robust Growth Across All Financing Segments
Our Edge Financing Division – Robust Growth Across All Financing Segments Total new financing extended in 1Q-2022 stood at EGP 2.5 billion, up 47% year-on-year supported by Contact’s consumer finance, commercial trucks, and mortgage products, with demand for new lending only marginally impacted by t
Slide 17: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
Our Edge Financing Division – Increasingly Diversified Portfolio with Favorable Margins The Financing portfolio expanded 31% year-on-year to EGP 11.47 billion as at 31 March 2022. Throughout the quarter, Contact continued to diversify its portfolio in favor of higher-spread products. Financing Portf
Slide 18: Financing Division – Sustained Growth Across all Financing Revenue Components
Our Edge Financing Division – Sustained Growth Across all Financing Revenue Components Contact’s financing division continued to leverage an expanded reach and product offering to deliver solid growth in 1Q-2022. Financing Operating Income | EGP mn Net Revenue from Portfolio Transfer | EGP mn +55% N
Slide 19: Financing Division – High-Quality Portfolio, Low Delinquencies
Our Edge Financing Division – High-Quality Portfolio as Evident in Low Delinquencies with Sufficient Coverage1 Contact’s Q1-2022 PaR 150+ delinquencies (Portfolio at Risk) ratio stood at only 2.4% 150+ Days Portfolio at Risk and Coverage Ratio Percentage PaR Coverage 167% 139% 146% 129% 99% 3.1% 2.8
Slide 20: Financing Division – Strong Profitability Supported by Controlled Costs
Our Edge Financing Division – Strong Profitability Supported by Controlled Costs and Low Risk Profile Building on the solid growth posted in 2021, financing net income expanded a solid 46% year-on-year in the first quarter of the new year supported by strong operating income growth. Operating Costs
Slide 21: Insurance Division – Operational and Business Developments – 1Q-2022
Our Edge Insurance Division – Operational and Business Developments – 1Q-2022 Gross written premiums recorded robust year-on-year growth across both companies supported by new product launches and increased cross-selling. Total policies underwritten in the first quarter of the year stood at c. 19 th
Slide 22: Insurance Division – Performance Review
Insurance Division – Performance Review Insurance Operating Income | EGP mn Underwriting Income | EGP mn +20% +22% On a consolidated basis, 52 136 insurance operating income Underwriting income expanded recorded EGP 57 million for the 34 20% year-on-year to reach EGP 75 first quarter of 2022, up a s
Slide 23: Digital Platforms – Operational Highlights and Key Results
Digital Platforms – Operational Highlights and Key Results The Company continues to expand its digital capabilities, launching and investing in the development of new platforms and creating new revenue streams. Contactcars Reimagined Q3-2021 saw the launch of contactcars.com’s dealer The web portal
Slide 24: Digital Platforms – Wasla
Digital Platforms – Wasla In February 2022, the Company concluded a USD 9 million investment in e-commerce super-app Wasla, adding to Contact’s growing footprint in fintech and reinforcing its quest to enable tech-first ventures in Egypt’s financing ecosystem. Wasla at a glance Strategic advantages
Slide 25: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated performance continued to reflect broad-based growth across segments Total Operating Income| EGP mn Consolidated Operating Expenses | EGP mn Consolidated Return on Equity | EGP mn 1,228 25.6% 444 +48% 21.9% 21.7% 21.6% +32% 940 357 843 17.9% 25
Slide 26: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated net income after minorities grew 40% year-on-year in 1Q-2022 to record EGP 154 million EBT | EGP mn Net Income after Minorities | EGP mn 662 535 527 465 389 +43% 353 +40% 221 154 154 109 FY 2019 FY 2020 FY 2021 1Q 2021 1Q 2022 FY 2019 FY 2020
Slide 27: Appendix
Appendix
Slide 28: Financing Business Income Statement
Our Edge Financing Business Income Statement change (FY-2020 vs FY- change (1Q-2021 vs 1Q- FY-2020 FY-2021 1Q-2021 1Q-2022 2021) 2022) Revenue from Portfolio Transfer 320,398 486,813 52% 76,148 182,083 139% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 35,028 50,133 43% Securitizati
Slide 29: Insurance Business Income Statement
Our Edge Insurance Business Income Statement change (FY-2020 vs FY- change (1Q-2021 vs 1Q- FY-2020 FY-2021 1Q-2021 1Q-2022 2021) 2022) Gross Written Premiums 283,856 516,835 82% 124,708 252,033 102% Provisions of Unearned Premiums (49,819) (44,152) -11% (14,891) (43,926) 195% Outward Reinsurance Pre
Slide 30: Consolidated Income Statement
Our Edge Consolidated Income Statement Financing Business FY-2020 FY-2021 change (FY-2020 vs FY-2021) 1Q-2021 1Q-2022 change (1Q-2021 vs 1Q-2022) Revenue from Portfolio Transfer 320,398 486,813 52% 76,148 182,083 139% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 35,028 50,133 43% S
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