Grupo Elektra Sab De Cv · BME:XEKT
Grupo Elektra Sab De Cv — Q1 2024 Earnings Presentation
24 slides from Grupo Elektra Sab De Cv's earnings presentation, May 2024
Slide 1: Follow-up on Grupo Elektra's market positioning in retail money transfer in Mexico
Guía Rápida Grupo Elektra Follow-up on Grupo Elektra´s market positioning, Grupo Elektra, S.A.B. de C.V. competitiveness, and key market BMV: ELEKTRA*; LATIBEX: XEKT trends in the retail money transfer business in Mexico Q1 2024 2T 2023 1
Slide 2: measures are provided as additional information to provide further understanding of Grupo Elektra, S.A.B
This Presentation refers to certain non-IFRS measures. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to provide further
Slide 3: Business Segments
Business Segments Commercial business Financial business Revenue LTM 1Q24: Ps.74,374 millions Revenue LTM 1Q24: Ps.112,119 millions 40% of Consolidated Revenue 60% of Consolidated Revenue Categories 87% 8% 3% 1% ~1% Motorcycles Electronics, Non-merchandise furniture, Telephony Appliances services co
Slide 4: Consolidated Financial Overview
Consolidated Financial Overview Ps. Millions Consolidated Revenue CAPEX +10% CAGR: 10% $186,494 $184,151 $186,494 $12,961 $169,378 $164,691 $146,019 $115,174 $120,507 $8,816 $103,876 $7,453 $7,262 $5,906 $5,463 $5,195 LTM 1Q23 LTM 1Q24 2018 2019 2020 2021 2022 2023 LTM 1Q24 2018 2019 2020 2021 2022
Slide 5: Banco Azteca Highlights
Banco Azteca Highlights Ps. Millions Gross Loan Portfolio Delinquency Rate CAGR: 13% $169,557 $169,099 $161,307 $123,198 $103,529 $93,253 $80,346 4.7% 4.7% 3.7% 4.0% 4.2% 3.7% 3.5% 2018 2019 2020 2021 2022 2023 1Q24 2018 2019 2020 2021 2022 2023 1Q24 Demand Deposits Capitalization Index CAGR: 10% $2
Slide 6: MXN/USD
Historically, Grupo Elektra's consolidated revenues have demonstrated growth even during GDP contractions and adverse economic conditions. 60% 25 Large Peso devaluation DOTCOM Bubble Lehman Brothers Bankruptcy Covid-19 Tequila Effect Twin Towers attack Subprime mortgages/ Pandemic financial crisis 5
Slide 7: Debt Profile as of March 31, 2024
Debt Profile as of March 31, 2024 Calendario Annual Cifrasde Amortización Amortization ScheduleAnual en Millones de Pesos $40,000 Ps. mm $35,226 $35,000 $6,563 19% $30,000 $25,000 $2,037 6% $20,000 $15,000 $26,627 $7,482 $7,262 $8,067 76% $10,000 $6,740 $5,000 $3,078 $2,598 $0 2024 2025 2026 2027 20
Slide 8: Money Transfer Business
Guía Rápida Grupo Elektra Grupo Elektra, S.A.B. de C.V. Money Transfer Business BMV: ELEKTRA*; LATIBEX: XEKT Q4 2023 2T 2023 1
Slide 9: 2023 Market Overview
2023 Market Overview In USA: Total Remittances to México (US$ B) ▪ Slightly slower employment and wage growth 3.9% 4.1% 4.0% 3.1% 80.0 75.0 2.1% 2.0% 1.9% 1.8% 1.9% 2.2% 2.6% 2.7% 2.8% 2.9% ▪ Remitters holding for favorable 70.0 65.0 $58.9 $63.3 0.0% USD/MXN FX rate CAGR: 8.5% 60.0 $52.5 55.0 ▪ Cool
Slide 10: Q1 2024 Remittance Market Overview
Q1 2024 Remittance Market Overview Total Remittances México (US$ B) ▪ Remittances back to the US$5 B monthly 2023 2024 level (-3.3% YoY) in March, albeit below $16.9 $16.3 $16.2 consensus $14.0 $14.1 ▪ Measured in USD, remittances grew just 1% YoY in Q1 2024; -8.2% in local currency ▪ Considering th
Slide 11: Micro Update
Micro Update Adjusting our economic model to changing competitive landscape: • Models based on transaction growth or nominal ranges • From fixed to variable commission, based on sequential principal amounts • From channel or service schedule, to aggregated goals Competitive advantage through digital
Slide 12: Participants Update
Participants Update Strong focus on bond MT participants Western Union • Full participation on all digital channels • Transitioning bank deposit service into direct relationship • Promoting the WU branded direct sends to Elektra • Investment in marketing initiatives • Sequential improved trends on w
Slide 13: Financial Inclusion
Financial Inclusion • Remittance frequency increases when the receiver is a banked customer Users (No account) • Access to savings, credit Unique Person • ~1/3 of our transactions are (users & clients) At least one TXN received directly into Cash pick up accounts or converted into such: Clients (wit
Slide 14: Customer Experience Enhancements
Customer Experience Enhancements Service Technology Compliance ▪ Continuous customer experience ▪ Transforming ▪ Real Time Compliance improvements throughout our Migrate remittance multichannel options: operations to the cloud ▪ Customized transaction ✓ D2B ✓ Superapp limits (more to those who ✓ ATM
Slide 15: Mother's Day Campaign
Mother’s Day Campaign May 8 - 11 Or while supplies last Goal POP • Reward customers during peak season • Strengthen Elektra and Banco Azteca leadership position Message Everybody wins 15 days of free WA calls or messages! Vallas Móviles Walking Boards +perifoneo Channels Participate in domestic and
Slide 16: Our Differentiators
Our Differentiators Service Technology ▪ Tropicalization of our services ▪ Use of QR code for more in a variety of dialects efficient remittance disbursements and promotions ▪ Extended service hours everyday from 9 a.m. to 9 p.m. ▪ Capture of ID data with OCR ▪ Cash availability nationwide Pagador 3
Slide 17: Acknowledged in 2024 Cross-Border Payment top 100 companies
Grupo Elektra has been acknowledged in the 2024 Cross- Border Payment top 100 companies worldwide 17
Slide 18: Annexes
Guía Rápida Grupo Elektra Grupo Elektra, S.A.B. de C.V. Annexes BMV: ELEKTRA*; LATIBEX: XEKT Q4 2023 2T 2023 1
Slide 19: Strengths of Grupo Elektra
Strengths of Grupo Elektra ❑ Extensive network ❑ 365 days ❑ 9 a.m. to 9 p.m. ❑ Cash / money always available ❑ Affinity from the target segment with the brand ❑ Safety / Trust ❑ Tradition ❑ Broad TV promotion 19
Slide 20: Balanced Portfolio of Partnerships
Balanced Portfolio of Partnerships Global Mid-Size Local/Niche Digital Aggregators 20
Slide 21: Transaction Structure Overview
Transaction Structure Overview Transaction Structure Overview Investors Grupo Elektra (Guarantor) USD Notes Funded at closing and used to Remitters Issuer/SPV Reserve Account4 fund any shortfall of Principal or (Luxembourg) Interest. Western Union / American Rapid Transaction Corp fees/expenses and
Slide 22: DPR Monthly & Quarterly DSCR
DPR Monthly & Quarterly DSCR • Reimbursement flows were securitized in January 2021, totaling ~US$14,952 million LTM as of March 2024. • Series 2021-1 Monthly and Quarterly DSCR was 123x (average over the past 12 months). Monthly Debt Service Coverage Ratio Quarterly Debt Service Coverage Ratio 144x
Slide 23: AML Risk-based approach
AML Risk-based approach What the regulation and International Standards consider Amount X Risk Blacklist TXN Countries Verification Our Risk Based Approach Amount X Aggregated # Txns # Countries Risk # POS # Counterparts Blacklist TXN Amount Countries Verification On a daily, monthly and annual basi
Slide 24: nou
Q3 nou grupo elektra
Grupo Elektra, S.A.B. de C.V. — Q1 2024 Earnings Presentation on 6ix