Al Ansari Financial Services Pjsc · DFM:ALANSARI
Al Ansari Financial Services Pjsc — Q1 2024 Earnings Presentation
25 slides from Al Ansari Financial Services Pjsc's earnings presentation, May 1, 2024
Slide 1: Together Towards Tomorrow – Investor Presentation Q1 2024
Al Ansari Financial Services Together Towards Tomorrow Investor Presentation Q1 2024 1
Slide 2: Disclaimer
Al Ansari Financial Services Disclaimer The information contained herein has been prepared by Al Ansari Financial Services PJSC (the “Company” or the “Group”). The information contained in this presentation may not have been reviewed or reported on by the Company’s auditors. The company relies on in
Slide 3: Today's Presenters
Al Ansari Financial Services Today’s Presenters Rashed A. Al Ansari Mohammad Bitar Faisal Anwar Group Chief Executive Officer Deputy Group Chief Executive Group Chief Financial Officer Officer 3
Slide 4: Table of Contents
Al Ansari Financial Services 01 Q1 2024 Highlights • Key Highlights • Financial & Operating Performance1 Snapshot 02 Business Highlights • Revenue Contribution • Market Analysis • Remittances • Bank Notes & Prepaid Cards CONTENTS • WPS and Other Products & Services TABLE OF 03 Financial Highlights •
Slide 5: Q1 2024 Highlights
Al Ansari Financial Services Q1 2024 Highlights 01 Q1 2024 Key Highlights 02 Q1 2024 Financial & Operating Performance Snapshot 5
Slide 6: Q1 2024 Key Highlights
Al Ansari Financial Services Q1 2024 Key Highlights Q1 2024 Highlights Operating Income for the Group showed a marginal decline for Q1 2024 by -4.3% year on year (YoY), attributed to a decline in the Remittance business. +0,000 -4.3% Operating Operating Income YoY Income YoY 5.1% growth in Transacti
Slide 7: Q1 2024 Financial & Operating Performance Snapshot
Al Ansari Financial Services Q1 2024 Financial & Operating Performance Snapshot Financial Performance Operating Performance EBITDA (AED) As of 31 Mar 2024: Net Profit after tax (AED) 122 mn 12.4 mn 259 99mn Q1 ‘23 151 mn Q4’ 23 124 mn Total number of transactions Number of physical branches -25.8% Y
Slide 8: Business Highlights
Al Ansari Financial Services • Revenue Contribution • Market Analysis • Remittances Business Highlights • Bank Notes & Prepaid Cards • WPS and Other Products & Services • Balance Sheet Overview 8
Slide 9: Revenue Contribution
Al Ansari Financial Services Revenue Contribution YTD March 23 YTD March 24 Others Others WPS 2% WPS 5% 2% 6% Bank Remittances Notes Bank 59% Notes 33% Remittances 32% 60% 1) Based on continued operations only (Excluding the comparative results from discontinued business) 9
Slide 10: Our home market, the UAE, continues to perform exceptionally
Al Ansari Financial Services Our home market, the UAE, continues to perform exceptionally UAE’s economy remains resilient on all economic fronts backed by government initiatives FDI GDP Growth Forecast growth in new 7.9% 28% foreign investment projects. 5.2% Travel and Tourism 4.2% of UAE’s GDP is g
Slide 11: Remittances: Q1 2024
Al Ansari Financial Services Remittances: Q1 2024 Operating Income (AED mn) Outward and Domestic Personal Outward Remittances – Value (AED bn) Transactions (‘000) -3% 170 165 156 10.5 10.4 2,985 +6% 8.9 9.1 Major 5 - 2.6% Corridors 3,065 1.6 1.3 1,761 Others +4.1% 1,692 Personal Corporate Total Q1 '
Slide 12: Bank Notes & Prepaid Cards: Q1 2024
Al Ansari Financial Services Bank Notes & Prepaid Cards: Q1 2024 Operating Income Bank Notes No. of Transaction Bank Notes Value of Transactions (AED bn) 96 (AED mn) (mn) 90 87 22 -9.3% 20 -9% -9% -16.5% -3.1% 15 5.3% 13 2.1 2.2 7 8 5.5% Retail Wholesale Total Q1 '23 Q4'23 Q1 '24 Q1 '23 Q1 '24 Q1 '2
Slide 13: WPS and Other Products & Services
Al Ansari Financial Services WPS and Other Products & Services CashTrans WPS Operating Income (AED mn) Other Products & Services (AED mn) (End-to-end cash management) No. of external customers 17 16 5.9 5.50 9% 9% 46 84% 25 Q1 '23 Q1'24 Q1 '23 Q1 '24 Q1 '23 Q1 '24 Bill Collection No. of Transactions
Slide 14: Financial Highlights
Al Ansari Financial Services • Income Statement Overview Financial Highlights • Balance Sheet Overview • Capex Business Model 14
Slide 15: Income Statement Overview
Al Ansari Financial Services Income Statement Overview AED ‘000 Q1‘24 Q1‘23 % change Commentary • Net gain on currency exchange saw a dip of 13.8% year on year (YoY) due to a Net gain on currency exchange 129,037 149,634 (13.8%) decrease of 17% in bank notes volume coupled with decline in FX margins
Slide 16: Balance Sheet Overview
Al Ansari Financial Services Balance Sheet Overview AED ‘000 March ‘24 Dec ’23 % Change Commentary • The increase in Right of Use assets by 8.2% can be attributed to addition of Right of use assets 99,599 92,031 8.2% new branch locations and the renewal of lease contracts expired during the period.
Slide 17: Capex-light Business Model, Easy to Scale
Al Ansari Financial Services Capex-light Business Model, Easy to Scale and Able to Deliver Strong Growth and Value to the Shareholders Current Assets and Capex(1) (AED mn) Current Liabilities (AED bn) Commentary % of Operating Total capex as 3.7% 2.8% Net 1.7 1.5 Income ▪ Majority of the current ass
Slide 18: Dividend Policy
Al Ansari Financial Services • Dividend Policy Dividend Policy 18
Slide 19: Dividend Policy
Al Ansari Financial Services Dividend Policy Historical Dividends (AED mn) Minimum Annual Dividends: • FY 2023: The Group has paid a dividend amount of AED 600 million for the 2023 FY, with AED 300 million each paid in November 2023 and April 2024 (subsequent to Q1 2024). FY20 FY212 FY22 FY23 • Ther
Slide 20: Growth Strategy
Al Ansari Financial Services • 6 Pillar Strategy Growth Strategy 20
Slide 21: Clear growth strategy centered on 6 pillars
Al Ansari Financial Services Clear growth strategy centered on 6 pillars 1 Physical Network Expansion 2 Geographic Expansion 3 Digital Innovation Smart 80% of remittance Growing market share in Kuwait counters in market in 2027 is branches and entering other attractive Continued investment expected
Slide 22: Clear growth strategy centered on 6 pillars
Al Ansari Financial Services Clear growth strategy centered on 6 pillars Corporate Cross-border 4 Margin Increases 5 remittances 6 CashTrans c.370K SMEs active in the UAE Planned and ongoing Scope to increase margins investments for central given the quality of the services, market leadership 190K w
Slide 23: Guidance
Al Ansari Financial Services • Short to Mid-Term Guidance Guidance 23
Slide 24: Short to Mid Term Guidance
Al Ansari Financial Services Short to Mid Term Guidance Item Target (annual growth rate unless Time Horizon otherwise stated) Branch Network 300 total no. of physical branches Mid-term Remittance Income High single digit growth Short–term Low to mid teens Mid-term Bank Notes Income Low to mid teens
Slide 25: Thank you
Al Ansari Financial Services Thank you 25
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