Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — H1 2022 Earnings Presentation
29 slides from Contact Financial Holding Sae's earnings presentation, 2022
Slide 1: Results Presentation 1H 2022
Results Presentation 1H 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 1H-2022 Performance Review 15 4 Appendix 26
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 Listed since 2018 under the ticker CNFN.CA offering innovative financial services Financial Holding EGP 39 bn EGP 2.1 bn INSURANCE FINANCING ASSET MA
Slide 7: Results Snapshot
Introduction Results Snapshot Contact continued to build on a strong start to the year, delivering solid financial and operational results in the six months ended 30 June 2022 EGP 787 mn EGP 258 mn 22.1% Consolidated Total Operating Income Consolidated Net Income Annualized Return on Average Equity
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 87% Insur
Slide 12: Market-wide Coverage Including Banked and Unbanked Population
Our Edge Market-wide Coverage Including Banked and Unbanked Population Throughout the first half of 2022, the Group continued to make solid progress on its expansion strategy, growing and diversifying its direct- to-consumer reach across both physical and digital channels, and enabling the company t
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 1H-2022 Funding Base D Diversified funding base enabling consistent liq
Slide 15: 1H-2022 Performance Review
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Slide 16: Financing Division – Widespread Growth Across Financing Segments
Our Edge Financing Division – Widespread Growth Across Financing Segments Total new financing extended in 1H-2022 recorded EGP 5.1 billion, up 52% year-on-year. Growth was primarily supported by Contact’s consumer finance, commercial trucks, and mortgage products, with new lending for passenger cars
Slide 17: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
Our Edge Financing Division – Increasingly Diversified Portfolio with Favorable Margins The Financing portfolio grew 38% year-on-year to EGP 12.38 billion as at 30 June 2022. Throughout the first six months of the year, Contact continued to diversify its portfolio in favor of higher-spread products.
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 increasingly diversified product offering and its expanded direct-to- consumer reach to deliver solid growth in 1H-2022, successfully overcoming a challenging
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 2.5% 150+ Days Portfolio at Risk and Coverage Ratio Percentage PaR Coverage 139% 146% 128% 125% 99% 3.1% 2.5
Slide 20: Financing Division – Strong Profitability, Controlled Costs, Low Risk
Our Edge Financing Division – Strong Profitability Supported by Controlled Costs and Low Risk Profile Strong operating income growth posted by the Financing Division more than offset an increase in operating costs and supported a solid 22% year-on-year expansion in financing net income for the six-m
Slide 21: Insurance Division – Operational and Business Developments – 1H-2022
Our Edge Insurance Division – Operational and Business Developments – 1H-2022 Gross written premiums continue to witness robust year-on-year growth across both companies on the back of new product launches and increased cross-selling. Total policies underwritten in 1H-2022 stood at c.37 thousand, up
Slide 22: Insurance Division – Performance Review
Insurance Division – Performance Review Insurance Operating Income | EGP mn Underwriting Income | EGP mn +48% +37% 136 On a consolidated basis, Underwriting income recorded insurance operating income 59 EGP 59 million in 1H-2022, 105 52 increased a solid 37% year-on- representing a 48% year-on- 75 7
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 Pricing AI tool reached close to The web portal and smartphone 50,
Slide 24: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Broad-based growth across both segments continued to support a solid performance at the consolidated level Total Operating Income| EGP mn Consolidated Operating Expenses | EGP mn Consolidated Return on Equity | EGP mn +39% 21.7% 21.6% 22.1% 1,228 21.3% 444
Slide 25: Consolidated Performance – Income Statement
Consolidated Performance – Income Statement Consolidated net income after minorities expanded 18% year-on-year, reaching EGP 258 million in 1H-2022 EBT | EGP mn Net Income after Minorities | EGP mn 662 535 527 +25% 465 +18% 389 353 381 306 258 218 FY 2019 FY 2020 FY 2021 1H 2021 1H 2022 FY 2019 FY 2
Slide 26: Appendix
Appendix
Slide 27: Financing Business Income Statement
Our Edge Financing Business Income Statement change (FY-2020 vs FY- change (1H-2021 vs 1H- FY-2020 FY-2021 1H-2021 1H-2022 2021) 2022) Revenue from Portfolio Transfer 320,398 486,813 52% 184,168 349,493 90% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 72,028 105,810 47% Securitizat
Slide 28: Insurance Business Income Statement
Our Edge Insurance Business Income Statement change (FY-2020 vs FY- change (1H-2021 vs 1H- FY-2020 FY-2021 1H-2021 1H-2022 2021) 2022) Gross Written Premiums 283,856 516,835 82% 254,283 504,334 91% Provisions of Unearned Premiums (49,819) (44,152) -11% (35,435) (99,840) 130% Outward Reinsurance Prem
Slide 29: Consolidated Income Statement
Our Edge Consolidated Income Statement Financing Business FY-2020 FY-2021 change (FY-2020 vs FY-2021) 1H-2021 1H-2022 change (1H-2021 vs 1H-2022) Revenue from Portfolio Transfer 320,398 486,813 52% 184,168 349,493 90% Off Balance Sheet Portfolio Management Fee 103,795 156,799 51% 72,028 105,810 47%
Contact Financial Holding — H1 2022 Earnings Presentation on 6ix