Financiera Independencia Sab De Cv · BMV:FINDEP
Financiera Independencia Sab De Cv — Debt Investor Presentation (January 2023)
21 slides from Financiera Independencia Sab De Cv's debt investor presentation, January 2023
Slide 1: Investor Presentation January 2023
Investor Presentation January 2023 1
Slide 2: Disclaimer
Disclaimer You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Financiera Independencia, S.A.B. de C.V, SOFOM, E.N.R. (the “Company” or “FISA”) and its subsidiaries (collectively, “Financiera Independenci
Slide 3: Disclaimer
Disclaimer Consequently, no key information document required by Regulation (EU) No 1286/2014 as it forms part of domestic law by virtue of the EUWA (the “UK PRIIPs Regulation”) for offering the Securities or otherwise making them available to retail investors in the United Kingdom has been prepared
Slide 4: Presenters
Presenters Mr. José Rión Cantú (Vice Chairman of the Board of Directors) Mr. Rión holds a Bachelor's degree in Industrial Engineering from Universidad Iberoamericana and a masters in business administration (M.B.A.) degree at Stanford University. Mr. Eduardo Messmacher Henríquez (CEO & Board Member)
Slide 5: Summary of the Exchange Offer & Consent Solicitation
Summary of the Exchange Offer & Consent Solicitation1 The Company is offering each RegS Holder2 of US$161,637,000 FINDEP 8.00% Senior notes due on July 19, 2024 (ISIN:USP4173SAF13) to exchange their notes with the purpose of refinancing for a combination of cash and new notes, as described below: Fo
Slide 6: Summary of New 10% Sr. Step-Up Notes
Summary of New 10% Sr. Step-Up Notes Issuer Financiera Independencia, S.A.B. de C.V, SOFOM, E.N.R Amount Up to US$129.31 million Format RegS only Ranking Sr. Unsecured Currency US Dollars Coupon New Notes will have a coupon of 10% per annum for the first three years, and 12% in years four and five,
Slide 7: Timeline for exchange offer
Timeline for exchange offer January Date & Time Event M T W TH F S D Launch of the Exchange Offer • Exchange offer is announced, and EOM 2 3 4 5 6 7 8 Tuesday, January 24th, 2023 is made available to Eligible Holders who have duly completed the Eligibility 9 10 11 12 13 14 15 Letter. Early Expiratio
Slide 8: Findep at a Glance
Findep at a Glance Findep (the “Company), a leader in bringing financial inclusion to the underserved Hispanic communities in North America through responsible lending and insurance products. Key Pillars Subsidiaries Financial Inclusion for customers in Mexico & the United States Financiera Apoyo Ec
Slide 9: Corporate Structure
APOYO FINANCIERO INC 100% F/262650 SERVICIOS ESPECIALIZADOS 61.2% FINDEP, S.A. DE C.V. Control Trust HSBC 99.9% Corporate Structure APOYO ECONOMICO FAMILIAR DE CV SOFOM ENR 99.9% CONFIANZA ECONÓMICA SA DE CV SOFOM ENR 99.9% SISTEMAS CORPORATIVOS COA MEXICO SA 99.9% DE CV ENR 12.2% Guarantors of new
Slide 10: Current Situation (Today vs. 2016)
Current Situation (Today vs. 2016) Million USD(a) 2016 3Q22 3Q22 vs. 2016 ● Highest Capitalization ratio and Loan Loss Tangible Assets (b) 513 537 5% Reserve to NPLs ratio in FINDEP’s history. Total Portfolio (FISA+AEF+AFI) 266 429 62% ● We estimate that 2022 was our most Net Debt (c) 331 246 -26% p
Slide 11: Investment Highlights
Investment Highlights ● Proven and profitable business model with 29 years of track record Resilient through all economic cycles 1 Business ● Knowledge of the business built through experience with over 14 Model million of loans originated ● 27% CAGR in last 5 years of U.S. Loan Portfolio U.S 2 Grow
Slide 12: Resilient Business Model
1 Resilient Business Model Consistent profitability and low volatility through crises. Consistent Profitability and Improving Asset Quality* 13.0% 60% NPL ratio Total Operating Margin as % of Average Loan Portfolio 53% 11.0% 47% 50% 46% 46% Our portfolio has yielded 43% 43% consistently over 40% 9.0
Slide 13: Resilient Business Model
1 Resilient Business Model During the pandemic FISA & AEF showed lower volatility and faster recovery vs the market. Maximum increase in NPLs from 1Q20 to peak and time to regain pre-pandemic levels. Maximum Increase in NPLs 29% 52% 277% 242% 124% 73% 68% Months from 1Q20 to Peak 6 7 8 12 10 11 9 Mo
Slide 14: Growth in the US Portfolio Overview
2 Growth in the US Portfolio Overview Apoyo Financiero Inc. Loan Portfolio (Millions of USD) 200 • Our US portfolio has 3.3x 188m grown 3.3x in the last 5 years, a 27% CAGR, mostly in California. 150 • Unserved Hispanic market (62m) in the US, with California being the largest market. 100 • Proven b
Slide 15: Growth in the US Portfolio Overview
2 Growth in the US Portfolio Overview FINDEP’s Total Portfolio By Country US Mexico 43% 44% 22% 26% 29% 16% 19% 2016 2017 2018 2019 2020 2021 3Q22 15
Slide 16: Strong Balance Sheet
3 Strong Balance Sheet Proven ability to generate cash and de-lever the Company ● Quarterly collection (principal, interest and accessories) is above 25% of loan portfolio ● We can decide to deleverage by reducing origination and contracting the portfolio, as exemplified between March and September
Slide 17: Efficiency Through Technology
4 Efficiency Through Technology Technology has allowed us to do more with less Loan Portfolio per Employee (Thousands USD) Initiatives 2.6x 92 ● Migrated IT platform to the cloud. 79 ● Developed mobile tools to enable efficiency of Customer Service staff. 64 60 ● Self service tools for our customers
Slide 18: Efficiency Through Technology
4 Efficiency Through Technology Technology has allowed us to do more with less Non-interest expense as a % of average portfolio 48.4% 44.0% 41.6% 39.9% 40.2% 36.9% 33.4% 18 2016 2017 2018 2019 2020 2021 9M22 ann.
Slide 19: Best Practices
5 Best Practices Actions taken to support stakeholder confidence ● Clear message of long term commitment to debt investors on Committed shareholders - no behalf of equity holders. dividends since 2010 ● Better position to navigate challenging market. ● Listened to stakeholders and switched to CNBV m
Slide 20: Proforma Maturities Calendar
Proforma Maturities Calendar As Is Maturities by year as of September 30,2022 Proforma Maturities based on % of acceptance of proposed Exchange Offer (figures in millions of USD) 203 129 123 90 91 71 71 71 71 65 42 23 23 23 23 0 2022 2023 2024 2025+ As is 50% 70% 100% 20
Slide 21: Simplified Proforma Balance Sheet
Simplified Proforma Balance Sheet Based on different acceptance rates (figures in millions of USD) Assets Liabilities and Equity As Is1 50%* 70%* 100%* As Is1 50%* 70%* 100%* Cash and Equivalents2 50.9 33.9 27.2 17.0 Findep 243 164.7 83.9 51.6 3.1 Net Portfolio 374.1 374.1 374.1 374.1 Step-Up Findep
Financiera Independencia — Debt Investor Presentation (January 2023) on 6ix