Contact Financial Holding Sae · EGX:CNFN
Contact Financial Holding Sae — Contact Financial Holding — FY2024 Earnings Presentation
46 slides from Contact Financial Holding Sae's earnings presentation, 2025
Slide 1: Results Presentation FY-2024
Results Presentation FY-2024
Slide 2: Disclaimer
Introduction Disclaimer This presentation has been prepared by Contact Financial Holding (the “Company”. The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any
Slide 3: Agenda
AGENDA 1 Introduction 4 2 Our Edge 7 3 Digital Platforms 20 4 Debt Capital Markets 25 5 Africa Expansion 28 6 FY-2024 Performance Review 30 7 Appendix 43
Slide 4: Introduction
ion Introduct ~
Slide 5: At a Glance
Introduction At a Glance Egypt’s leading non-bank financial services provider Group Structure 1st EGX Consumer Finance License in Egypt with +20yrs and Largest Consumer Finance Player in the Listed Since 2018 Under the Ticker CNFN.CA Market Offering Innovative Financial Services Financial Holding EG
Slide 6: Results Snapshot
Introduction Results Snapshot The financing segment continued its recovery during 4Q-2024 on the back of a pickup in demand during the second half of the year, which, coupled with strong results at the insurance division, supported Contact’s solid performance for FY-2024. EGP 2.5 bn EGP 735.6 mn 21.
Slide 7: Our Edge
Our Edge
Slide 8: How We Differentiate Ourselves
Our Edge How We Differentiate Ourselves Highly experienced management Highly team Targets the profitable banked & operation unbanked population Contact has a clear vision for the business with a well- Superior Widest product defined growth strategy to funding capabilities offering in the market achi
Slide 9: Well-Defined Growth Strategy
Our Edge – Well-Defined Growth Strategy Well-Defined Growth Strategy Contact has a clear vision for the business with a well-defined growth strategy to achieve it Contact Today A B C D E The widest product Fully digitized proprietary Strong physical & digital Superior funding Highly profitable offer
Slide 10: What We Do
Our Edge – What We Do What We Do Contact is Egypt’s largest non-bank financial services provider and has been actively changing the way businesses and individuals access financial and insurance services over the past twenty years. Financing 80% Insurance 20% Financing products targeting Egypt’s bank
Slide 11: Diversified and Synergistic Product Base Driving Growth Across All Segments
Our Edge – Diversified Product Base Diversified and Synergistic Product Base Driving Growth Across All Segments Broad & Increasingly Diversified Consumer Finance Offering New Lending Breakdown by Product for 2019 New Lending Breakdown by Product for FY-2024 4% 2% 3% 1% 6% 9% 8% 4% 15% 2% 55% 75% 16%
Slide 12: Proprietary AI Instant Credit Scoring Engine
Our Edge – Exceptional Credit Scoring Engine Proprietary AI Instant Credit Scoring Engine Unique Credit Assessment Approach through Creditech Distinctive credit assessment methodology refined over +20 years of financing experience Loan disbursed or application Credit application submitted Data asses
Slide 13: Wide Market Coverage
Our Edge – Wide Market Coverage Market-wide Coverage Including Banked and Unbanked Population Powered by Physical Presence … Expanding the branch network in high-potential areas outside the main cities Wide Geographical Footprint took place throughout 2021, 2022, 2023, and 2024 Zamalek Sharm El Shei
Slide 14: A Diversified Digital Distribution Network
Our Edge – Wide Market Coverage … And A Diversified Digital Distribution Network Direct to Consumer Distribution (DTC) Lending as a Service (LaaS) 14
Slide 15: A Digital One-Stop-Shop for all Financial Needs
Our Edge – A Digital One-Stop-Shop A Digital One-Stop-Shop for all Financial Needs Relaunched in January 2023, the ContactNow app is Egypt’s first fully-fledged app offering the full suite of digital financial solutions A Digital One-Stop-Shop Covering the Consumer’s Financial Lifecycle Strategic Ad
Slide 16: 20+ Years of Strong Track Record of Credit Extension & Collection
Our Edge – Solid Track Record 20+ Years of Strong Track Record of Credit Extension & Collection Track Record of Growth and Operational Evolution Rise Up Successful product deployment on the back of market know-how LaaS Insurance Insurance Credit Credit Specialized Specialized Consumer Credit Consume
Slide 17: Diversified, Highly Liquid Funding Base
Our Edge – Diversified Funding Base Diversified, Highly Liquid Funding Base Funding Strategy Overview Overview of FY-2024 Funding Base Amounts in EGP MN Utilized Available Diversified funding base enabling 27,923 consistent liquidity with efficient pricing A B C D E 6,635 Fixed rate to match portfol
Slide 18: Funding Driven by Continued Innovation in the DCM Space
Our Edge – An Innovator in the DCM Space Funding Driven by Continued Innovation in the DCM Space1 Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability and cost of funding, Conta
Slide 19: Consistent Growth and Expansion
Our Edge – Historical Performance Consistent Growth and Expansion By leveraging its growing digital presence and its increasingly broad reach and service offering, underpinned by its ever- expanding insurance offering, Contact is able to navigate challenging market conditions and a difficult macroec
Slide 20: Digital Platforms
Digital Platforms -
Slide 21: A Digital Business
Digital Platforms A Digital Business Through strategic investments and partnerships, Contact is continuously strengthening its digital capabilities, placing it at the forefront of the financing and insurance sectors’ digitization movement Increase Create new Maintain market Contact’s Improve Retain
Slide 22: Digital Platforms – Contactcars.com
Digital Platforms – Contact Cars Digital Platforms – Contactcars.com The portal, originally set up in 2002, was relaunched in 2021 as a stand-alone business ContactCars.com Relaunched In 4Q-2024, Contactcars.com officially launched its new "Otlobha" product, which is designed to support consumers in
Slide 23: Digital Platforms – ContactNow
Digital Platforms – ContactNow Digital Platforms – ContactNow The Company rolled out its ContactNow app in early 2021 (relaunched in 2023) with the platform rapidly rising in popularity ever since The ContactNow app ContactNow has partnered with ContactNow Fawry to offer customers a on Huawei Origin
Slide 24: Digital Platforms – Bravo
Digital Platforms – Wasla Digital Platforms – Bravo In February 2022 Contact concluded a USD 9 million investment in e-commerce super-app Bravo, further expanding the Company’s growing footprint in fintech and reinforcing its quest to enable tech-first ventures in Egypt’s financing ecosystem Bravo a
Slide 25: Debt Capital Markets
Debt Capital Markets
Slide 26: Overview of the Debt Capital Markets
Debt Capital Markets Overview of the Debt Capital Markets1 Overview of Debt Capital Markets Activities DCM Segment Highlights • Originally established to deepen Egypt’s debt capital markets and further enhance the Group’s availability and cost of funding 43 • Introducing new products to the market:
Slide 27: Overview of the Debt Capital Markets
Debt Capital Markets Overview of the Debt Capital Markets Egypt’s Leading DCM Player with a Proven Record of Executing Transactions in Challenging Market Conditions, Safeguarding the Group’s Liquidity Requirements 2022 2023 2024 2022 Issued despite Issued despite Issued despite Issued despite ongoin
Slide 28: Africa Expansion
Africa Expansion
Slide 29: The Perfect Opportunity for Further Expansion
Africa Expansion The Perfect Opportunity for Further Expansion Almasi, a joint venture between Contact and Mansour Group, will initially provide leasing services and will work to expand its offering to consumer financing and auto loans in the coming period. Expanding into Kenya and other emerging Af
Slide 30: FY-2024 Performance Review
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Slide 31: Comprehensive Financing Offering
FY-2024 Performance Review Comprehensive Financing Offering A restrictive interest rate environment and product price uncertainty, coupled with Contact actively managing its risk levels by tightening the credit investigation process and focusing on higher margin products impacted new lending during
Slide 32: Financing Division – Resilient Results Across Financing Segments
FY-2024 Performance Review Financing Division – Resilient Results Across Financing Segments In FY-2024, total new financing extended dropped by 30% year-on-year to EGP 11.63 billion, with the Consumer Finance and Auto segments reporting the largest year-on-year contractions during the period due to
Slide 33: Financing Division – Increasingly Diversified Portfolio with Favorable Margins
FY-2024 Performance Review Financing Division – Increasingly Diversified Portfolio with Favorable Margins Contact’s financing portfolio remained largely flat year-on-year at EGP 21.12 billion in FY-2024. During the year, Contact continued diversifying its portfolio, with an added focus on higher-spr
Slide 34: Financing Division – Resilient Results Across all Financing Revenue Components
FY-2024 Performance Review Financing Division – Resilient Results Across all Financing Revenue Components The financing division delivered a robust performance in FY-2024 on the back of the solid recovery that began during the second half of the year and continued in 4Q-2024. On that front, new lend
Slide 35: Financing Division – High-Quality Portfolio as Evident by the Low Delinquency Ratio
FY-2024 Performance Review Financing Division – High-Quality Portfolio as Evident by the Low Delinquency Ratio Contact’s PaR 150+ delinquencies (Portfolio at Risk) ratio as at December 2024 stood at 3.4% 150+ Days Portfolio at Risk 3.4% 3.2% 2.5% 2.3% FY-2021 FY-2022 FY-2023 FY-2024 Contact’s delinq
Slide 36: Financing Division – Declining Profitability amidst a Difficult Operating Environment
FY-2024 Performance Review Financing Division – Declining Profitability amidst a Difficult Operating Environment Net income at the financing division fell by 15% year-on-year in FY-2024 as a result of Contact’s decision to slow down portfolio transfer activities due to the prevailing interest rate e
Slide 37: Financing Division – Strong Recovery During the Second Half of the Year
FY-2024 Performance Review Financing Division – Strong Recovery During the Second Half of the Year Improved operating conditions during 2H-2024 supported a strong recovery at the financing division, which witnessed a solid uptick in demand during the second half of the year New Lending| EGP mn Finan
Slide 38: Insurance Division – Operational and Business Developments – FY-2024
FY-2024 Performance Review Insurance Division – Operational and Business Developments – FY-2024 Gross written premiums generated by both insurance companies expanded strongly year-on-year growth driven by the ramp up of new product and increased cross-selling. Meanwhile, total policies underwritten
Slide 39: Insurance Division – Performance Review
FY-2024 Performance Review Insurance Division – Performance Review Underwriting Income | EGP mn Insurance Operating Income | EGP mn 37% 20% 478 179 On a consolidated basis, Underwriting income rose by 150 349 insurance operating income 20% year-on-year to EGP 179 expanded by 37% year-on- 97 million
Slide 40: Consolidated Performance – Income Statement
FY-2024 Performance Review Consolidated Performance – Income Statement The insurance division’s positive results, coupled with the continued recovery of the financing division in 4Q-2024, cushioned the impact of the challenging macroeconomic environment, supporting Contact’s resilient performance fo
Slide 41: Consolidated Performance – Income Statement
FY-2024 Performance Review Consolidated Performance – Income Statement Consolidated normalized net income after minorities expanded by 6% year-on-year to EGP 736 million in FY-2024 Normalized Net Income1| EGP mn Consolidated Return on Equity | % 6% Adjustments Actual Net Income 736 27.2% 693 78 1 60
Slide 42: Consolidated Performance – Income Statement
FY-2024 Performance Review Consolidated Performance – Income Statement The gradual improvement in market condition witnessed during the second half of 2024 enabled the Group to close out the year in a high note, with consolidated performance rising strongly compared to 1H-2024 Total Operating Income
Slide 43: Appendix
Appendix
Slide 44: Financing Business Income Statement
Appendix Financing Business Income Statement FY-2021 FY-2022 FY-2023 FY-2024 change (FY-2023 vs FY-2024) Revenue from Portfolio Transfer 486,813 767,104 1,005,772 839,977 -16% Off Balance Sheet Portfolio Management Fee 156,799 199,248 326,241 394,752 21% Securitization Surplus / Deficit (12,370) (16
Slide 45: Insurance Business Income Statement
Appendix Insurance Business Income Statement FY-2021 FY-2022 FY-2023 FY-2024 change (FY-2023 vs FY-2024) Gross Written Premiums 516,835 948,316 1,491,843 2,282,730 53% Provisions of Unearned Premiums (44,152) (105,734) (194,195) (255,954) 32% Outward Reinsurance Premiums (154,648) (284,415) (382,738
Slide 46: Consolidated Income Statement
Appendix Consolidated Income Statement Financing Business FY-2021 FY-2022 FY-2023 FY-2024 change (FY-2023 vs FY-2024) Revenue from Portfolio Transfer 486,813 767,104 1,005,772 839,977 -16% Off Balance Sheet Portfolio Management Fee 156,799 199,248 326,241 394,752 21% Securitization Surplus / Deficit
Contact Financial Holding — FY2024 Earnings Presentation on 6ix