ASA International Group PLC · LSE:ASAI
ASA International — FY2018 Earnings Presentation
30 slides from ASA International's earnings presentation, Apr 16, 2019
Slide 1: 2018 Results Presentation
2018 RESULTS PRESENTATION ASA International Group PLC 16 April 2019 Dirk Brouwer Chief Executive Officer Tanwir Rahman Chief Financial Officer Aminur Rashid Executive Director Operations
Slide 2: Dirk Brouwer, Chief Executive Officer
DIRK BROUWER Chief Executive Officer
Slide 3: Who we are
Who we are ASA International is one of the world’s largest international microfinance institutions providing socially responsible loans to a large addressable market of un-banked, low-income female entrepreneurs across Asia and Africa Proven microfinance institution with Unique emerging market expos
Slide 4: Highlights 2018
Highlights 2018 Number of clients up by 17% to 2.2m and number of branches up by 20% reaching 1,665 Outstanding Loan Portfolio (“OLP”) grew to USD 378.5m up by 21% (34% up on constant currency basis) OLP/client averaged USD 174, up by 3% despite substantial currency depreciation in Pakistan, India,
Slide 5: ASA International has delivered robust net profits
ASA International has delivered robust net profits with 2018 RoAA and RoAE of 7.3% and 37.7%, respectively USDm 2018 2017 2017-2018 Constant currency Number of Clients (‘000s) 2,174 1,853 17% Number of Branches 1,665 1,387 20% Average OLP / client 174 169 2% 14% PAR>30dpd 0.6% 0.6% KPIs Cost / Incom
Slide 6: Tanwir Rahman, Chief Financial Officer
TANWIR RAHMAN Chief Financial Officer
Slide 7: Continued growth at all levels
Continued growth at all levels # OF BRANCHES # OF CLIENTS (M) CAGR(1) : 19% CAGR : 25% 2018 1,665 2018 2.2 2017 1,387 2017 1.8 2016 1,117 2016 1.3 OLP (USD M) NORMALISED NET PROFIT (USD M)(2) CAGR : 35% CAGR : 31% OLP (USD m) 378.5 RoAA(3) 8.3% 7.9% 7.3% OLP per Client (USD) 313.4 RoAE(4) 28.9% 35.8
Slide 8: Robust asset quality & healthy margins
Robust asset quality & healthy margins OLP AND PAR > 30DPD(1) GROSS YIELD, COST Loan portfolio quality OF FUNDING AND NET continues to be stable with 3.5% 0.6%(1) 0.6% INTEREST MARGIN PAR>30 0.6% 378.5 Since inception, ASA 37.4% disbursed more than USD 313.4 32.7% 32.9% 3.3bn in loans, less than
Slide 9: Strong funding profile with disciplined ALM
Strong funding profile with disciplined ALM FUNDING BREAKDOWN(1) Favourable maturity profile with long-term funding of typically up to 5 years, compared 431.5 to average client loan tenor of 6-12 months 404.1 64.0 at issuance 53.2 Funding from international lenders (e.g. Gates Foundation and OPI
Slide 10: Aminur Rashid, Executive Director Operations
AMINUR RASHID Executive Director Operations
Slide 11: Diversification strengthens the group's risk profile
Diversification strengthens the group’s risk profile BRANCHES # OF CLIENTS OLP(1) South Asia 0.5% % Loans RoAA 1.3% 0.6% 1.9% 1.6% 2.4% 1.8% 0.5% 3.0% 3.2% 56% 7.1% 4.1% 3.4% 3.2% 18.0% 4.2% 3.5% 4.3% 3.6% 25.9% 5,6% 35.8% South East Asia 4.6% 5.9% .8.4% USD % Loans RoAA 4.9% 1,665 17.3% 6.9% 2.2m 3
Slide 12: Regulatory update
Regulatory update Aim to become fully Central Bank regulated, embedded in local financial community and with the capacity to mobilize deposits India - Acquired non-bank finance company-microfinance license registration in July 2018 Pakistan - Microfinance bank license pending (NOC expected in Q2 201
Slide 13: Our strategy
Our strategy Increase financial inclusion through sustainable growth of loan portfolio GROW LOAN PORTFOLIO Increase Gradually increase Open new Gradual expansion AND EXPAND number of volume of loans branches in of geographical GEOGRAPHIC clients per per client existing countries footprint in new FOO
Slide 14: Dirk Brouwer, Chief Executive Officer
DIRK BROUWER Chief Executive Officer
Slide 15: Summary of medium term targets
Summary of medium term targets KEY OPERATIONAL TARGETS BRANCH GROWTH USD EARNINGS GROWTH ~12% CAGR 20-25% YoY NIM(1) OLP / CLIENT > 20% RoAA ~250USD > 7% by 2022E COST / INCOME CLIENTS / BRANCH Mid-40s RoAE ~1,600 >30% PAR > 30 DEBT / LOANS Remain Low DIVIDEND PAYOUT RATIO ~70% 30% (% prior year net
Slide 16: Outlook
Outlook As stated in our Year-End Trading update of 26 February 2019, we continue to expect: A strong underlying performance in 2019 Given the significant currency depreciation in some of the Company’s major countries during the second half of 2018, USD earnings growth for 2019 is expected to be mat
Slide 17: Questions?
CREATING HOPE. CHANGING a. QUESTIONS? or Sd é cS
Slide 18: Income statement
Income statement USD millions 2018 2017 Interest and Similar Income 141.4 107.2 Interest and Similar Expense (31.9) (21.1) Net Interest Income 109.5 86.1 Other Operating income 9.9 6.9 Total Operating Income 119.5 92.9 Credit Loss Expense (1.6) (0.0) Net Operating Income 117.9 92.9 Personnel Expense
Slide 19: Balance sheet
Balance sheet USD millions 2018 2017 Cash at bank and in hand 72.9 93.3 Loans and advances to customers 343.1 297.8 Due from banks 37.6 15.3 Equity Investments at FVOCI 0.2 0.2 Property and equipment 4.5 3.9 Deferred tax assets 2.6 1.5 Other assets 12.0 7.4 Goodwill 0.0 0.0 Total Assets 473.1 419.4
Slide 20: Breakdown of operating segment financials
Breakdown of operating segment financials As at 31 December 2018 in West Africa East Africa South Asia South East Asia USD millions External interest and similar income 41.8 15.3 59.7 24.6 Inter-segment interest income - - - - External interest expense (3.3) (1.4) (20.1) (3.8) Inter-segment interest
Slide 21: Strong currency headwinds in key operational markets
Strong currency headwinds in key operational markets USD/PKR Δ ‘17-18 Δ Q1 ‘19 USD/INR Δ ‘17-18 Δ Q1 ‘19 -26% -1% -9% 1% 145 Δ ‘13-17 Δ ‘13- 135 -1% 72 17 -1% 125 67 115 62 105 95 57 USD/MMK Δ ‘17-18 Δ Q1 ‘19 USD/LKR Δ ‘17-18 Δ Q1 ‘19 -14% 2% -19% 4% 1550 Δ ‘13-17 Δ ‘13-17 -9% 177 -4% 1450 167 1350
Slide 22: Management team
Management team Number of years of experience in the microfinance sector # Dirk Brouwer Tanwir Rahman Azim Hossain Chief Executive Officer Chief Financial Officer Director Investments, Treasury and Risk Co-Founder and CFO of ASAI since July Management Executive Director of 2017. Finance Director ASA
Slide 23: Our socially responsible business model
Our socially responsible business model The branch is the centre of the Decentralised, scalable, standardised and low-cost Group’s ecosystem Target ~1,500(1) clients per branch with ~12km radius and 20,000 target demographic Income generating investments Lending to individual micro- Avg. disbursemen
Slide 24: Strengths of the ASA model
Strengths of the ASA model A rich heritage ASA International has internationally exported the ASA Model of Group selection High touch client microfinance developed by without joint interaction through ASA NGO Bangladesh liability weekly collection(2) ASA NGO Bangladesh was established by Md. Shafiqu
Slide 25: Overview of Segments
Overview of Segments South Asia South East Asia West Africa East Africa Sierra India Pakistan Sri Lanka Philippines Myanmar Ghana Nigeria Tanzania Kenya Uganda Rwanda Zambia(1) Leone 2008 2008 2007 2007 2014 2008 2009 2016 2014 2013 2013 2016 2019 Segmental breakdown OLP Branches Clients(2) 9% 15% 1
Slide 26: South Asia
South Asia (As at 31st December 2018, India Pakistan Sri Lanka unless otherwise stated) ASA International India Name of Entity ASA Pakistan Ltd Lak Jaya Micro Finance Ltd. Microfinance Private Limited Type NBFC(1) Lending Company(2) Lending Company(3) Securities and Exchange Regulator Reserve Bank o
Slide 27: South East Asia
South East Asia (As at 31st December 2018, Philippines Myanmar unless otherwise stated) Name of Entity Pagasa Philippines Lending Co. Inc. ASA Microfinance (Myanmar) Ltd. Type Finance Company Deposit Taking Microfinance Institution (1) Security and Exchange Commission Financial Regulatory Department
Slide 28: West Africa
West Africa (As at 31st December 2018, Nigeria Ghana Sierra Leone unless otherwise stated) Association for Social ASA Microfinance Improvement and Economic Name of Entity ASA Savings & Loans Ltd (Sierra Leone) Ltd. Advancement and ASHA Microfinance Bank Ltd Deposit Taking NGO and Deposit Taking Savi
Slide 29: East Africa
East Africa (As at 31st December 2018, Tanzania Uganda Kenya Rwanda unless otherwise stated) ASA Microfinance ASA Microfinance ASA Microfinance Name of Entity ASA Limited (Tanzania) Ltd. (Uganda) Ltd. (Rwanda) Ltd. Deposit Taking Type Lending Company Lending Company Lending Company Microfinance Inst
Slide 30: Legal Disclaimer
Legal Disclaimer IMPORTANT: You must read the following disclaimer substitution for the exercise of independent judgment and that the data contained therein have been obtained from before continuing. The following applies to this document, each person made aware of the information set-forth here sou
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