Fawry For Banking Technology And Electronic Payment · EGX:FWRY

Fawry For Banking Technology And Electronic Payment — Q1 2024 Earnings Presentation

23 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, May 15, 2024

  1. Slide 1: 1Q 2024 Earnings Call

    1Q 2024 Earnings Call May 15, 2024 1

  2. Slide 2: Disclaimer

    Disclaimer The information contained in this document is proprietary and confidential to Fawry For Banking Technology And Electronic Payment S.A.E (“Fawry”). You must only use such information for the purposes of discussions with Fawry and you must hold such information in strict confidence and not

  3. Slide 3: Agenda

    AGENDA 1Q 2024 Operating & financial results 01 Dive into 1Q 2024 results 02 Digital growth 03 Q&A 04 3

  4. Slide 4: 1Q 2024 Operating & Financial Results Highlights

    1Q 2024 Operating & Financial Results Highlights 4

  5. Slide 5: Main highlights for the period

    Main highlights for the period • Revenue growth came in at 61% y-o-y for 1Q2024, widely beating guidance and the highest growth 100+ bn • rate since 2015 Despite ADP growing by 28% y-o-y in 1Q2024, the highest since 3Q2020, ADP declined in terms of Throughput for 1Q24 contribution to revenue to 33%,

  6. Slide 6: Achieving growth across all operational KPIs

    Achieving growth across all operational KPIs Active Network Total POS +15% Number of Total transactions Avg transaction Customers +5% (000s) services +25% +24% (mn) value +37% (EGP) (mn) 356 442 263 52.1 3,351 356 2,685 193 311 49.8 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q

  7. Slide 7: EBITDA doubles, margin reaches 46.6%, Net profit 2.5x that of 1Q 2023

    EBITDA doubles, margin reaches 46.6%, Net profit comes 2.5x times that of 1Q 2023 Throughput +69% Revenue +61% EBITDA +111% Net profit +149% (EGP bn) (EGP mn) (EGP mn) (EGP mn) 1,087 307 116 507 676 69 240 123 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Total revenue excluding ai

  8. Slide 8: Throughput exceeds EGP 100bn per quarter, for the second consecutive quarter

    Throughput exceeds EGP 100bn per quarter, for the second consecutive quarter Quarterly throughput (EGP bn) +69% + 116 105 95 79 69 62 55 47 40 41 36 30 22 25 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 8

  9. Slide 9: Quarterly revenue exceeds EGP 1bn for the first time ever

    Quarterly revenue exceeds EGP 1bn for the first time ever Quarterly revenue +61% 1,087 955 873 768 651 676 614 531 467 483 448 394 342 349 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 9

  10. Slide 10: Revenue diversification continues, with acceptance and financial services growing in contribution

    Revenue diversification continues, with acceptance and financial services growing in contribution Revenue contribution by quarter Contribution to y-o-y revenue growth for 1% 2% 3% 2% 1Q 2024 6% 4% 3% 7% 7% 7% 7% 7% 13% 13% 12% 12% 15% 16% 3% 8% 20% 20% 20% 19% 19% 21% 21% 16% 17% 18% 19% 20% 21% 21%

  11. Slide 11: Cost-control measures decrease portion of revenue allocated to expenses

    Implemented cost-control measures have led to a decrease in the portion of revenue allocated, thus strengthening financial efficiency y-o-y expenses increase Expense item as % of revenue 70% 14% 14% 13% 12% 12% 53% 10% 42% 38% 39% 34% 26% 5% 4% 11% 11% 3% Marketing Selling HR Marketing Selling HR 1Q

  12. Slide 12: …Leading to overall margins improvement

    …Leading to overall margins improvement Gross profit margin (%) +3.8% 65.8% 63.8% 64.2% 62.7% 62.0% 61.6% 59.6% 57.7% 58.0% 55.5% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 EBITDA margin (%) +11.1% 42.6% 46.6% 39.7% 41.9% 36.3% 35.5% 28.2% 27.8% 30.6% 26.3% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23

  13. Slide 13: Dive into 1Q 2024 Figures

    WAXY Woe Dive into 10 2024 Figures

  14. Slide 14: ADP beating guidance, growing at 28% y-o-y

    ADP beating guidance, growing at 28% y-o-y ADP throughput value ADP revenue (EGP mn) Contribution to ADP revenue growth +35% +28% 15% 355 44% 278 34% 7% 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Telecom ADSL Utilities Others 14

  15. Slide 15: Acceptance doubling vs. last year, Agent Banking exceeding guidance

    Acceptance doubling vs. last year, while Agent Banking exceeding guidance with 66% y-o-y increase Acceptance revenue (EGP mn) Agent Banking revenue (EGP mn) +66% +97% 230 227 138 116 1Q 2023 1Q 2024 1Q 2023 1Q 2024 15

  16. Slide 16: Both acceptance revenue segments almost doubling vs. last year

    Both acceptance revenue segments almost doubling vs. last year Revenue from instore Acceptance enabled POS Revenue from online acceptance (000s) acceptance +94% +99% +13% 300 266 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 16

  17. Slide 17: Financial services revenue doubling y-o-y, loan portfolio growing 87%

    Financial services revenue doubling y-o-y, with loan portfolio growing by 87% y-o-y • Number of Microfinance loans granted in 1Q24 reached Gross loan portfolio Financial services 18.9k, up by 130% y-o-y (EGP mn) revenue (EGP mn) • Disbursements for Microfinance for 1Q24 reached EGP 548 mn up by 191%

  18. Slide 18: Microfinance portfolio quality maintained, PAR still below 2%

    Microfinance portfolio quality maintained, PAR 30 still below 2% Number of months after disbursement PAR30, % (by years) 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2020 2021 2022 2023 18

  19. Slide 19: Supply Chain revenue growing on inflation and increased adoption

    Supply Chain revenue growing on the back of inflation and increase in adoption Supply chain throughput Supply chain revenue (EGPmn) +70% +70% 76 44 1Q 2023 1Q 2024 1Q 2023 1Q 2024 19

  20. Slide 20: Digital growth

    PM Qg WAX ~S Digital growth

  21. Slide 21: Through myFawry, Fawry aims to lead the embedded finance era

    Through myFawry, Fawry aims to lead the embedded finance era The launch of, i) myFawry prepaid card (Yellow Card), ii) BNPL and iii) the money market myFawry cumulative downloads fund last year, fueled the myFawry app growth, with 12.6 EGP Bn Annualized Mar 24 14,000,000 12,000,000 throughput almost

  22. Slide 22: Growing digital transactions activity

    Growing digital transactions activity Mobile wallet1 Mobile wallet1 Total digital 2 Total transactions transactions (mn) processed value transactions (mn) (mn) (EGP bn) +24% +51% +109% +88% 442 124 78 48 356 32 66 37 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1 These figures ref

  23. Slide 23: Q&A

    Q&A 23

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