Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — 9M 2021 Earnings Presentation
31 slides from Contact Financial Holding Sae's earnings presentation, 2021
Slide 1: Results Presentation 9M 2021
Results Presentation 9M 2021 1
Slide 2: Disclaimer
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 such restrict
Slide 3: Agenda
Agenda 1 Introduction 4 2 Our Edge 7 3 9M 2021 Performance Review 14 4 Appendix 25 3
Slide 4: Introduction
Introduction 4
Slide 5: At a Glance
At a Glance Egypt’s leading non-bank financial services provider Group Structure 1st EGX Consumer Finance License in Egypt Listed since 2018 under the ticker with +20yrs of offering innovative CNFN.CA financial services Financial Holding EGP 31.7 bn EGP 1,330 mn Total Financing Gross Written & Gener
Slide 6: Results Snapshot
Results Snapshot Contact continued to build on the strong momentum from the start of the year to report remarkable operational and financial results in 9M-2021, with a record nine-month net profit Consolidated Performance – 9M 2021 EGP 1,059 mn EGP 330 mn 20.9% Annualized Return on Average Consolida
Slide 7: Our Edge
Our Edge 7
Slide 8: Our Edge
Our Edge Contact deploys a well-defined growth strategy covering four primary pillars Comprehensive product offering covering full customer financial lifecycle Market-wide coverage including banked and unbanked population Well-defined growth strategy Diversified, highly- liquid funding base Market-l
Slide 9: Well-Defined Growth Strategy
Well-Defined Growth Strategy Contact has a clear vision for the business with a well-defined growth strategy to achieve it Contact Today Fully digitized The widest proprietary Strong Superior Highly product credit engine physical & A B C funding D profitable E offering on with proven digital capabil
Slide 10: Comprehensive Product Offering Covering Full Customer Financial Lifecycle
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 Insurance 75% 25%
Slide 11: Market-wide Coverage Including Banked and Unbanked Population
Market-wide Coverage Including Banked and Unbanked Population Contact leverages its large and diversified distribution network of both physical and digital channels to reach a larger target audience underserved by traditional financial institutions Expanding the branch network in high-potential area
Slide 12: Unmatched Risk Management and Collection Frameworks
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 Unique and customiz
Slide 13: Diversified, Highly Liquid Funding Base
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 9M-2021 Funding Base D Diversified funding base enabling consistent C 3,000 17,8
Slide 14: 9M 2021 Performance Review
9M 2021 Performance Review 14
Slide 15: Financing Division – Strong Growth Across All Financing Segments
Financing Division – Strong Growth Across All Financing Segments Total new financing extended for the nine-month period ending 30 September 2021 recorded EGP 5.1 billion, up 59% from the same period last year New Financing | EGP bn New Financing Growth by Product1 9M-21 Portfolio Breakdown Medical 1
Slide 16: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
Financing Division – Increasingly Diversified Portfolio with Favorable Margins The Financing portfolio grew by 32% year-on-year to EGP 9.64 billion as at 30 September 2021, with increased diversification into higher-spread products Financing Portfolio by Asset Class Financing Portfolio Breakdown 7.7
Slide 17: Financing Division – Sustained Growth Across all Financing Revenue Components
Financing Division – Sustained Growth Across all Financing Revenue Components A recovering market coupled with an expanded reach and product offering saw Contact return to financing revenue and net interest income growth for the nine-month period Financing Revenue | EGP mn Revenue from Portfolio Tra
Slide 18: Financing Division – High-Quality Portfolio, Low Delinquencies
Financing Division – High-Quality Portfolio as Evident in Low Delinquencies with Sufficient Coverage1 Contact’s 9M-2021 PaR 150+ delinquencies (Portfolio at Risk) ratio stood at only 2.6% 150+ Days Portfolio at Risk and Coverage Ratio Percentage 191% PaR Coverage 138% 122% 99% 73% 3.8% 3.1% 2.6% 2.1
Slide 19: Financing Division – Strong Profitability Supported by Controlled Costs
Financing Division – Strong Profitability Supported by Controlled Costs and Low Risk Profile Strong operating income growth filtered down to the division’s bottom-line with net income expanding a solid 60% year-on-year for the nine-month period Financing Operating Income | EGP mn Operating Costs and
Slide 20: Insurance Division – Operational and Business Developments – 9M-2021
Insurance Division – Operational and Business Developments – 9M- 2021 New product launches and increased cross-selling saw gross written premiums post strong year-on- year increases across both insurance companies, with total policies reaching c.75 thousand Insurance – 85% year-on-year rise in total
Slide 21: Insurance Division – Performance Review
Insurance Division – Performance Review The Insurance division continues to ramp up operations with rapidly narrowing bottom-line losses and declining cost ratios Total Revenues from Insurance Activities| EGP mn Insurance Operating Income | EGP mn Net Operating Costs for Insurance Activities | EGP m
Slide 22: 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 1.2 mn 46% 5 min Unique monthly users Returning users Avg. time per
Slide 23: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated performance reflects broad-based growth across segments Group Consolidated Revenue | EGP mn Total Operating Income| EGP mn +19% +44% 1,110 2,085 2,162 1,004 1,059 Total operating income Total group revenue was up 1,824 expanded 44% year-on-yea
Slide 24: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated net income after minorities expanded 71% in 9M 2021 to a record EGP 330 million EBT | EGP mn Net Income after Minorities | EGP mn +52% 629 569 495 +71% 460 389 353 327 283 330 194 FY 2018 FY 2019 FY 2020 9M 2020 9M 2021 FY 2018 FY 2019 FY 2020
Slide 25: Appendix
Appendix 25
Slide 26: Consolidated Management Reclassified Accounts
Consolidated Management Reclassified Accounts Important Note Regarding Group Financial Performance & Accounts To simplify both the group consolidated financials and the divisional reporting, and to clarify the transition from the audited financials to the management reclassified accounts, the board
Slide 27: Table 1: Mapping Audited Income Statement with Consolidated Management Accounts 9M-2021
Table 1: Mapping Audited Income Statement with Consolidated Management Accounts 9M-2021 Breakdown of Sec. Net JV's Consolidation KPMG (Audited financials ) 9M-2021 EGP ''000'' EGP ''000'' Consolidated Adjusted Accounts Revenue (Note 15) (Note 19) After Adjustments KPMG Standalone Sales Revenue - goo
Slide 28: Table 2: Consolidated Reclassified Management Accounts
Table 2: Consolidated Reclassified Management Accounts Financing Business 9M-2021 9M-2020 Change Q3-2021 Q3-2020 Change Income from financing activities 767,534 889,622 -14% 239,027 291,777 -18% Portfolio management fees (securitization issuances) 1,374 2,102 -35% 723 615 17% Portfolio management fe
Slide 29: Financing Business Income Statement
Financing Business Income Statement 9M-2021 9M-2020 Change Q3-2021 Q3-2020 Change Income from financing activities 767,534 889,622 -14% 239,027 291,777 -18% Portfolio Management fees (securitization issuances) 1,374 2,102 -35% 723 615 17% Portfolio Management Fees (Sukuk Issuance) 19,062 - 10,579 -
Slide 30: Insurance Business Income Statement
Insurance Business Income Statement 9M-2021 9M-2020 Change Q3-2021 Q3-2020 Change Direct premiums 376,197 202,917 85% 121,914 71,595 70% Outward reinsurance premiums (110,214) (52,937) 108% (34,374) (16,112) 113% Provision of unearned premiums at end of the period (38,059) (36,143) 5% (2,624) (11,50
Slide 31: Key Definitions
Key Definitions Key Financing Terms Description NIM Net Interest Income / Average Portfolio Cost to Income Net Operating Expenses / Operating Financing Income ROE (Monthly Average) Net Income / Monthly Average Equity ROA (Monthly Average) Net Income / Monthly Average Portfolio Implied Tax Rate Incom
Contact Financial Holding — 9M 2021 Earnings Presentation on 6ix