Chams Holding Company Plc · NSENG:CHAMS
Chams — Investor Presentation (April 2014)
36 slides from Chams's investor presentation, April 2014
Slide 1: Presentation to Investors and Stakeholders at the Chams Plc Engagement Forum
PRESENTATION TO INVESTORS AND STAKEHOLDERS AT THE CHAMS PLC ENGAGEMENT FORUM April 2014
Slide 2: Why this Forum?
Why this Forum? Opportunities based on History Success/Challenges Pioneering Solutions Current Identity Chams Shares: Averaging & Management Opportunities Maximising Still, Future Capital Appreciation ROI - Dividends & Bonuses Opportunities www.chamsplc.com 2
Slide 3: Outline
Outline 1 Highlight of Economic Developments 4 2 Some Developments in Our Industry 6 3 About Chams 8 4 Financial Highlights 16 5 Discussion of Full Year 2013 Results 20 6 Historical Financial Summary 26 7 Outlook 28 www.chamsplc.com 3
Slide 4: Forward-Looking Statements
Forward-Looking Statements In the course of this presentation, the company may make forward-looking statements in an attempt to provide the audience with some clarity regarding future expectations of the company. All written or oral statements made by Chams Plc, at this meeting or in these presentat
Slide 5: Highlight of Economic Developments
Highlight of Economic 1 Developments www.chamsplc.com 5
Slide 6: Highlight of Economic Developments
Highlight of Economic Developments • Nigeria’s GDP grew by 7.1% in 2013, driven by Agriculture, Telecoms and Financial Services Sectors; • The country’s GDP has been rebased – Economy is now largest in Africa with an aggregate value of $510 billion; • Inflation rates remained in singe-digit in 2013,
Slide 7: Some Developments in our Industry
Some Developments in our 2 Industry www.chamsplc.com 7
Slide 8: Some Developments in our Industry
Some Developments in our Industry • The CBN has mandated Nigerian Banks to take Biometric information of their customers as part of the “KYC” requirements; • Need for a more secure payment system has been on the increase; • Efforts to unify the identity system and records in Nigeria through the NIMC
Slide 9: About Chams
3 About Chams www.chamsplc.com 9
Slide 10: About Chams
About Chams • We are a leading provider of information technology solutions in Nigeria with a track record of providing a wide rang e of products and services of public and private institutions. We are reputed for our capability in identity management, payment collections and transactions systems; •
Slide 11: Board & Executive Management Team
Board & Executive Management Team Very Rev. Ayo Richards Ademola .B. Aladekomo Prof. Oladapo Afolabi Dr. Evans Woherem FCA Chairman Group Managing Director Non-Executive Director Non-Executive Director Alhaji Idi Farouk MFR Eng Akin Sawyer Prof. Shehu Abdullahi Femi Williams Non-Executive Director N
Slide 12: Corporate Governance
Corporate Governance Shareholders Board of Directors Appointments, Promotions & Finance Committee Audit Committee Governance Committee Board Committees designed to ensure Strong Corporate Governance www.chamsplc.com 12
Slide 13: Our Journey
Our Journey Started in 1987-1991 1992-1999 2000-2010 2011-2013 1985 Focus: Focus: Focus: Focus: Focus: Computer Computer Cards, ID Mgt, Diversification, Business Sales & Networking and ePayment ePayment specialization Repairs Infrastructure And sustained development growth www.chamsplc.com 13
Slide 14: Our Achievements
Our Achievements In IT Maintenance Listed IT In WAN / Company on LAN the NSE Chams is the 1st To be recognized in In Nigeria’s Guinness Identity Mgt. Book of Records www.chamsplc.com 14
Slide 15: Our Licenses…
Our Licenses… • Switching License • PTSP and Terminal Type Business License NIMC Project, …Present unique Anambra, Osun & opportunities and Kogi State Deals, • Independent ATM Deployment (IAD) value proposition as well as License; for our Naira.com and stakeholders ChamsMobile opportunities • Prepay
Slide 16: Other Corporate Credentials
Other Corporate Credentials • Chams delivered 52 million voting cards to the Independent National Electoral Commission (INEC); • Partnership with National Information Technology Development Agency (NITDA) on implementation of Millennium Development Goals (MDGs) • Chams to deploy Service Terminals to
Slide 17: Financial Highlights
4 Financial Highlights www.chamsplc.com 17
Slide 18: Group Financial Highlights
Group Financial Highlights PARAMETER (N’ MILLION) FY2013 FY2012 Revenue 3,439 2,836 Gross Profit 1,849 2,302 Operating Profit 320 399 Profit Before Tax 107 169 Profit After Tax 188 88 Earnings Per Share (kobo) 7 3 Total Assets 10,719 8,717 Net Assets 4,678 4,489 Net Cash derived /(used) in operating
Slide 19: Company Financial Highlights
Company Financial Highlights PARAMETER (N’ MILLION) FY2013 FY2012 Revenue 3,142 2,604 Gross Profit 1,736 2,208 Operating Profit 864 939 Profit Before Tax 634 715 Profit After Tax 723 637 Earnings Per Share (kobo) 15 14 Total Assets 12,334 10,849 Net Assets 8,192 7,649 Net Cash derived /(used) in ope
Slide 20: Things to Note about the Results
Things to Note about the Results Strong revenue growth of 21.3% from N2.84 billion in 2012 to N3.44 billion in 2013; Impressive growth in net profits; up by 115.3% to N188.5 million versus N87.5 million the previous year; Earnings Per Share came it at N0.07, more than twice what was recorded i
Slide 21: Discussion of Full Year 2013 Results
Discussion of Full Year 2013 5 Results www.chamsplc.com 21
Slide 22: Revenue Trend (N' million)
Revenue Trend (N’ million) 3,439 2,836 1,778 1,485 989 FY2009 FY2010 FY2011 FY2012 FY2013 • Total revenue of N3.44 billion was achieved in 2013. • More than 21% above the N2.84 billion recorded in 2012. • Our revenue growth over the last five years is 37% on a compounded annual basis. www.chamsplc.c
Slide 23: Revenue Mix
Revenue Mix FY2012 FY2013 14% 14% Identity Mgt. & Solution Others 86% 86% • Our core business, identity management and payment solutions account for 86% of revenue • Contribution from this segment was stable in both 2013 and 2012 • Others include our card, switch and consulting/training businesses.
Slide 24: Profit Trend (N' million)
Profit Trend (N’ million) FY2009 FY2010 FY2011 FY2012 FY2013 188 88 (1,237) (1,792) (2,873) Gestation period Realization period • Sustained profitability – since the recovery in 2012 • Profits rose by more than 115% in 2013. That is commendable, in our view www.chamsplc.com 24
Slide 25: Trend in Total Assets (N' million)
Trend in Total Assets (N’ million) 10,719 8,492 8,717 7,704 FY2010 FY2011 FY2012 FY2013 • Strong growth in asset base • CAGR of 8.1% since 2010 www.chamsplc.com 25
Slide 26: Asset Mix
Asset Mix 8% 6% 9% 11% 16% Others 24% Inventories 70% 57% Prop. & Equipment Trade Receivables FY2012 FY2013 • Bulk of assets are represented in trades and other receivables • Constituting more than half of asset portfolio • These leap in receivables to 70% of assets in 2013 was a one-off situation…
Slide 27: Historical Financial Summary
6 Historical Financial Summary www.chamsplc.com 27
Slide 28: Historical Financial Summary
Historical Financial Summary Revenue & Profits (y/y) FY2011 FY2012 FY2013 Revenue growth (%) 19.7% 59.5% 21.3% Gross Profit growth (%) 32.0% 235.2% -19.6% EBIT growth (%) 36.3% 141.1% -19.9% Pre-tax growth (%) 33.5% 114.2% -36.9% Net Income growth (%) 10.5% 107.1% 115.3% Costs (y/y) FY2011 FY2012 FY
Slide 29: Outlook
7 Outlook www.chamsplc.com 29
Slide 30: Strategy
Strategy • Increase our market share to at least 60% by 2015; • Grow revenue to N10 billion in 5-7 years; • Develop new product lines – introduce a unified Badge Chams System in our card business; • Exploit the biometric payment and transaction space; • Form strategic partnerships and alliances; and
Slide 31: Road to our Strategy – Ongoing Projects
Road to our Strategy – Ongoing Projects Biometric Matching Solution Project (CBN KYC initiative) Osun State Partnership (Resident’s ID Project, Staff Audit and Payroll) Anambra State Partnership (Identity Management and IGR Project) National Identity Management Commission (NIMC) Project Kogi State S
Slide 32: Company Three-Year Financial Projections
Company Three-Year Financial Projections Revenue Profit Before Tax 6,000 5,624 1,800 1,575 5,000 1,500 4,397 1,231 4,000 1,200 3,438 3,142 859 3,000 900 634 2,000 600 1,000 300 - - FY2013 FY2014e FY2015e FY2016e FY2013 FY2014e FY2015e FY2016e www.chamsplc.com 32
Slide 33: Outlook for the rest of the year…
Outlook for the rest of the year… …We will: • Complete the ongoing restructuring across the group and dedicate our energy towards delivering value to all stakeholders; • Upgrade our Card Personalization Bureau to EMV Certified Standard; • Foster strategic alliance with our partners based in South Af
Slide 34: Summary
Summary Assured CAGR Refocussed Balance Sheet Chams PLC Restructured Re-energised NationalID, Chams Shares: Our Prayers Bankers KYC/BVN & Time to buy! Other Projects Business & Consumer Capital Appreciation focus Commitment Relevance to Nation ROI - Dividends & Bonuses & Humanity www.chamsplc.com 34
Slide 35: …We remain "the Authority in Identity Management"
Always Remember that… …We remain “the Authority in Identity Management” www.chamsplc.com 35
Slide 36: Thank you.
Thank you. www.chamsplc.com 36