E-finance For Digital And Financial Investments S.a.e. · EGX:EFIH
E-finance For Digital And Financial Investments S.a.e — Investor Presentation (September 2023)
33 slides from E-finance For Digital And Financial Investments S.a.e's investor presentation, September 2023
Slide 1: Investor Presentation 2023
Investor Presentation 2023 1
Slide 2: Introduction
Introduction e-finance is a leading fintech focused investment management firm in Egypt
Slide 3: Egypt's Pioneer and Accelerator of Digital Transformation
Egypt’s Pioneer and Accelerator of Digital Transformation The Group boasts a portfolio of subsidiaries that has enabled e-finance’s growth across multiple markets and unlocked synergies across its business lines The group’s portfolio companies cover a wide span of activities that fuel digital transf
Slide 4: Well-Positioned to Capture Opportunities and More than Double Bottom-Line
Well-Positioned to Capture Opportunities, Drive Growth, and More than Double its Bottom-Line Over the Next Three Years The Group’s deeply rooted presence in the digital payments space coupled with its diversified business model has left it ideally positioned to capture multiple opportunities that wi
Slide 5: Group Overview
Group Overview e-finance’s full end-to-end offering is made possible through its portfolio of synergistic companies e-finance for Digital and Financial Investments 99.99% 89.00% 70.00% 61.00% 99.98% Business Process Digital Operation Smart Solutions Digital Payment e-Commerce Outsourcing e-finance I
Slide 6: A Comprehensive Service Offering Through a Portfolio of Leading Subsidiaries
A Comprehensive Service Offering Through a Portfolio of Leading Subsidiaries By leveraging its robust network infrastructure across its subsidiaries, efinance is able to extend its reach across the nation and capture the entire digital payments value chain with a ubiquitous service offering covering
Slide 7: An Exciting Network of Associate Companies
An Exciting Network of Associate Companies efinance deploys a network of six associate companies active in sectors across the Egyptian economy, including in revolutionizing the country’s tax system and digitizing national health insurance infrastructures in line with efforts to achieve universal cov
Slide 8: Boasting a Diversified Business Model
Boasting a Diversified Business Model e-finance Investment Group is Egypt’s leading technology focused investment management firm The Group commands a diversified portfolio of subsidiaries and investments offering a vast array of complementary digital services to partners and customers through seven
Slide 9: Competitive Edge
Competitive Edge Well-positioned to continue delivering on our strategy 9
Slide 10: High Barriers to Entry | Exclusivity
High Barriers to Entry | Exclusivity Sole government partner for payments and collections Exclusivity Know-How E-finance’s exclusivity contract as the The Group has already built and currently government’s partner for transaction operates four integrated financial networks payment and collection has
Slide 11: e-finance's Operating Model Covers Key Points In The Digital Value Chain
e-finance’s Operating Model Covers Key Points In The Digital Value Chain Developer Operator Innovator Developer Operator Innovator The Group continually e-finance is also responsible assesses growth The Group boasts extensive for managing these solutions opportunities by identifying expertise in bui
Slide 12: Barriers to Entry | Existing Networks
Barriers to Entry | Existing Networks Operating and managing key networks across multiple sectors in Egypt Government Financial Network Social Solidarity Network Petroleum Network Agriculture Network Retail Payments Network 12
Slide 13: Competitive Edge | Access to Data
Competitive Edge | Access to Data Leveraging an expansive database to enhance service offering As the government’s exclusive partner for Egypt’s digital transformation, the Group has been able to leverage its advanced tech infrastructure to amass a large pool of data Leveraging the Group’s access to
Slide 14: Multi-Industry Service Offering
Multi-Industry Service Offering e-finance’s comprehensive and innovative solutions allow the Group to cater to a variety of industries The Group has been able to penetrate a wide variety of industries in Egypt and has played a key role across their digital transformations Sectors We Serve Social Inc
Slide 15: Growth Avenues
Growth Avenues Unpacking the drivers of our future growth and identifying the opportunities that will enable us to achieve our targets
Slide 16: Shifting to More Lucrative Revenue Streams
Shifting to More Lucrative Revenue Streams Variable Fee Transactions e-finance’s payment processing activities are shifting towards the more lucrative variable fee transactions, which are based on a take rate on the volume processed… 11% 30% 44% 56% 89% 70% 2025 2018 FY2022 Forecast Contribution of
Slide 17: Fueling digitization for government payments and collection
Fueling digitization for government payments and collection Capturing an increased share of government transactions e-finance’s unique positioning as the premier government partner for transaction processing has allowed it seamlessly process billions of transactions annually Where We Stand Today The
Slide 18: Expand sector presence to fuel growth: Tourism
Expand sector presence to fuel growth New Sector – Tourism e-finance’s efforts have left it well-positioned to capitalize on Egypt’s attractive tourism space Opportunities in Egypt’s Tourism Sector USD +16Bn +15Mn USD 30Bn Egypt’s tourism revenues in 2022- … with the number of tourists e-finance’s t
Slide 19: Expand sector presence to fuel growth: Tourism
Expand sector presence to fuel growth New sector – Tourism As one of the most visited countries in the MENA region, tourism is vital to Egypt’s ability to generate foreign currency and e-finance has been mandated to a play key role in supporting the growth of the sector What has e-finance done? Deve
Slide 20: Expand sector presence: Transportation
Expand sector presence to fuel growth New Sector – Transportation e-finance has been mandated to support Egypt’s push to digitize payments in the transportation sector What has e-finance done? Other growth avenues for e-finance in Egypt’s transportation space Digitized the 4 the largest railway stat
Slide 21: Existing sector: Card management solutions
Expand sector presence to fuel growth Existing sector – Card management solutions e-finance has a clear edge over the other – few – players in the card management space in Egypt… Leaving the Group well-positioned to achieve its target of tripling its number of cards managed from …The Group has been
Slide 22: Existing sector: Retail
Expand sector presence to fuel growth Existing sector – Retail e-finance is targeting to grow its retail bill and citizen services payments through its proprietary app and payment gateway Where The Market Stands Today The Opportunity EGP 300bn EGP1.2tn Size of the electronic retail payments market i
Slide 23: Cloud Services & Technical Support
Shifting to More Lucrative Revenue Streams Cloud Services & Technical Support The Group is one of the largest cloud service providers in Egypt and helps organizations achieve rapid deployment and flexible scalability through its comprehensive and fully integrated cloud solutions and technical suppor
Slide 24: Existing sector: Tax
Expand sector presence to fuel growth Existing sector – Tax Through its investment in e-Tax, the Group is able to simplify the government’s tax processes and unlock operational efficiencies across Egypt’s Tax Authority (ETA) and the Real Estate Tax Authority (RTA) As the sole tax collector for the E
Slide 25: New Sector: Healthcare
Expand sector presence to fuel growth New Sector – Healthcare e-finance is aiming to capitalize on Egypt’s growing +100 million population and gradually integrate them into the nation’s universal health insurance program through the Group’s newly launched subsidiary “e-health” What has e-finance don
Slide 26: Replicate e-finance's Success Beyond Egypt
Replicate e-finance’s Success Beyond Its Home Borders Of Egypt Tapping new markets e-finance has successfully expanded beyond its borders to replicate its success in Egypt across other markets Successfully signed an MOU with the government of Libya to build its financial network Signed an agreement
Slide 27: e-finance's Investment Strategy
e-finance’s Investment Strategy The pillars fueling our future growth The Group is expanding and scaling its business through investing its resources as follows: Non-Banking Expanding Current Banking New Fintech Financial Services Infrastructure Services Technologies Startups (NBFS) Expand cloud h
Slide 28: Capital Structure & Dividend Policy
Capital Structure & Dividend Policy 100% Looking to leverage Equity Financed the company to finance expansions and investments with an eye to ZERO DEBT maximize shareholder returns +65% Target dividend payout ratio on Balance Sheet over the next five years (paid semi-annually March & September) 28
Slide 29: Financial Highlights
Financial Highlights A solid track record of delivering stellar results
Slide 30: Financial Highlights: Historical Performance
Financial Highlights Historical Performance Revenue (EGP mn) Gross Profit, Margin (EGP mn, %) 42% 45% 48% 47% 52% 2,644 ) -22’ R (18’ CAG 1,963 1,365 38% 2’) R (18’-2 C AG 45% 1,232 923 984 596 733 440 311 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 EBITDA, Margin (EGP mn, %) Net Profit, Margi
Slide 31: Financial Highlights: Summary Income Statement
Financial Highlights Summary Income Statement (EGP mn) 2Q2023 2Q2022 Change 1H2023 1H2022 Change Total Consolidated Revenues 967.5 702.5 37.7% 1,735.4 1,262.0 37.5% e-finance Digital Operations 857.5 594.5 44.3% 1,574.6 1,106.4 42.3% eCards 83.6 23.3 259.8% 145.6 86.2 69.0% eKhales 20.4 12.5 63.2% 3
Slide 32: Financial Highlights: Summary Balance Sheet
Financial Highlights Summary Balance Sheet (EGP mn) 2019 2020 2021 2022 1H2023 Total Current Assets 1,333 1,472 4,282 4,977 5,083 Total Non-Current Assets 329 486 762 958 987 Total Assets 1,662 1,958 5,044 5,935 6,070 Total Current Liabilities 397 473 881 1,037 973 Total Non-Current Liabilities 127
Slide 33: Thank you
Thank you 33