Fawry for Banking Technology and Electronic Payment · EGX:FWRY
Fawry for Banking Technology and Electronic Payment — 9M 2021 Earnings Presentation
30 slides from Fawry for Banking Technology and Electronic Payment's earnings presentation, Nov 17, 2021
Slide 1: 9M 2021 Earnings Call
9M 2021 Earnings Call November 17, 2021
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
Slide 3: Agenda
Agenda • 3Q21 financial results • 9M21 Operating & financial results • Digital growth • IPN • Q&A 3
Slide 4: 3Q21 Financial Results Highlights
3Q21 Financial Results Highlights
Slide 5: Strong top line growth in 3Q21 both YoY & QoQ
Fawry continues to deliver strong top line growth in 3Q21 both YoY & QoQ Throughput +50% +23% Revenue +31% +14% EBITDA +33% +22% Adj Net Profit +26% +10% YoY QoQ YoY QoQ YoY QoQ YoY QoQ (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 448 55 36.4 394 134 50 29.6 343 43 110 101 24.3 3Q20 2Q21 3Q21 Q3 2020 Q2 2021
Slide 6: Normalized 3Q21 earnings expand to show strong YoY performance +26%
Normalized 3Q21 earnings expand to show strong YoY performance + 26% Adjusted net profit 3Q20 Adjusted net profit 3Q21 (EGP Mn) (EGP Mn) 55 49 43 36 3Q21 reported ESOP 3Q21 adjusted 3Q20 reported CBE initiative 3Q20 adjusted 6
Slide 7: 9M21 Operating & Financial Results Highlights
9M21 Operating & Financial Results Highlights
Slide 8: 9M21 delivering solid growth across all financial metrics
9M21 delivering solid growth across all financial metrics Throughput + 55% Revenue + 33% EBITDA + 43% Adj. Net Profit + 28% (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 1,191 91 364 146 893 119 254 59 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 8
Slide 9: Leveraging our expanding network
Leveraging our expanding network 859 mn transactions processed Active customers + 21% Total POS + 29% Number of Avg transaction (EGP Mn) (EGP ‘000) Services + 67% Value + 49% (EGP) 1,494 35 106 250.4 29 194.1 72 894 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9
Slide 10: Growth in TPV driven by higher value transactions
Growth in TPV driven by higher value transactions Total transactions up 5% 70% of transaction growth driven by transactions with high average transaction values driving TPV up 55% (EGP /transaction avg) 1,293 1,063 126 9M20 9M21 High growth ADP Agent banking Physical Acceptance 10
Slide 11: Accelerated growth on throughput as we expand our ecosystem
Accelerated growth on throughput as we continue to expand our ecosystem Quarterly throughput +50% (EGP Bn) 36.4 29.6 24.3 24.8 22.3 19.5 15.4 14.6 14.9 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 11
Slide 12: Revenues growth driven by banking services and microfinance
Revenues growth driven by massive demand for banking services and microfinance Quarterly revenues +31% (EGP Mn) 448 394 343 342 349 291 269 258 242 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 ADP Banking services Microfinance Supply Chain Solutions Others 12
Slide 13: Delivering on our diversification strategy
As we continue to deliver on our diversification strategy 9M20 Revenues Mix 9M21 Revenues Mix % contribution to growth 6% 2% 6% 2% 8% 2% 5% 8% 23% 16% 14% 23% 61% 73% 51% ADP Banking services Microfinance Supply Chain Solutions Others 13
Slide 14: ADP delivers healthy growth driven by utility & other bills
ADP delivers healthy growth driven by focus sectors utility & other bills ADP Throughput ADP revenue Contribution to ADP (Value) (EGP Mn) TPV growth by bill type +15% +10% 724 655 ADSL Bills Utilities Other 9M 2020 9M 2021 9M 2020 9M 2021 14
Slide 15: Agent Banking and Acceptance drive Banking Services growth
Accelerated growth of Agent Banking and Acceptance drive Banking Services as the biggest contributor to revenue growth Acceptance revenue Agent Banking revenue (EGP Mn) (EGP Mn) +244% +76% 161 115 92 34 9M 2020 9M 2021 9M 2020 9M 2021 15
Slide 16: Microfinance revenues double
Microfinance revenues double as Fawry expands its presence in this underserved market leveraging merchant network Loan portfolio Microfinance revenue Highlights (EGP Mn) (EGP Mn) ▪ 19.7k clients +78% +101% 97 ▪ 2.3k online applications processed monthly 376 ▪ Extending credit limits up to EGP 200k ▪
Slide 17: Strong growth in Supply Chain services
Strong growth in Supply Chain services Supply chain TPV Supply chain revenue (EGP Mn) +57% +47% 72 49 9M 2020 9M 2021 9M 2020 9M 2021 17
Slide 18: EBITDA expanding despite investments in HR & marketing
EBITDA expanding however despite investments in HR & marketing as we gear up for growth EBITDA Net CF from operating (EGP Mn) activity (EGP Mn) +43% +53% 364 796 254 503 9M 2020 9M 2021 9M 2020 9M 2021 18
Slide 19: Making investments for growth & diversification
Making investments for growth & diversification Positioning to customers Technology Strengthening & diversifying management 56 EGP Mn 280 EGP Mn +94% Marketing spend to Technology spend & HR expenses as we drive growth on direct investments in our attract talent to scale to consumer strategy network
Slide 20: Digital growth
Digital growth
Slide 21: Strong momentum for MyFawry app: 3Q21 developments
Strong momentum for our direct to consumer app MyFawry 3Q21 Developments 1.9 MyFawry Cumulative downloads (‘000) EGP Bn 4,000 Launched Annualized 3,500 Market place for throughput 3,000 Up 2X Offers & rewards 2,500 2,000 CBE approves 4.3 Mn Downloads since 1,500 1,000 500 MyFawry card June 2019 - Up
Slide 22: MyFawry card received CBE approval
MyFawry card received CBE approval Use Cases Payout Payroll - MFI’s - B2B2C Purchase Withdrawals - Instore - Online 22
Slide 23: Strong uptick in Mobile Wallets activity
Strong uptick in Mobile Wallets activity¹ on the network Mobile Wallet Transactions Mobile Wallet Processed Value (Volume Mn) (EGP Mn) +45% +88% 38.6 26,499 26.5 14,082 9M 2020 9M 2021 9M 2020 9M 2021 ¹ These figures reflect total processed value and transactions from bank and operators’ wallets pro
Slide 24: Enabling the future of payments through Acceptance
Enabling the future of payments through our Acceptance business Acceptance enabled POS Revenue from instore Revenue from online (‘000) Acceptance acceptance +68% +192% +349% 178 106 9M20 9M21 9M20 9M21 9M20 9M21 24
Slide 25: Instant Payment Network
Instant Payment Network What does this mean for Fawry
Slide 26: CBE announced framework for Instant Payment Network
CBE announced framework for Instant Payment Network But what is IPN? Collection Request Payment Invoice Access to multiple A network availing source of funds Purchase INSTANT, secure Scan QR Code transactions across different source of funds like Bank Accounts, Wallets and Cards with interoperabilit
Slide 27: P2P instant peer to peer transfers
P2P Instant peer to peer transfers Customer source of funds PSP meeza PSP Prepaid HSBC Account AlexBank Customer A NBE Customer B Account Wallet Customer A wants to transfer money to Customer B from his HSBC Account: 1. Customer A chooses his HSBC account as the source of fund through hisPSP MyFawry
Slide 28: How has IPN disrupted payments in other markets?
How has IPN disrupted payments in other markets? India: UPI dominating mobile payments Brazil: Number of transactions (m): PIX vs other instruments 800 600 400 200 0 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 PIX Boleto Others TED Source: Brazilian Central Bank, HSBC research 28
Slide 29: What does this mean for Fawry?
What does this mean for fawry? • Increases digital adoption as instant payments creates trust & convenience • More transactions on digital channels (P2P & purchases) • More cash in / cash out • Mores use cases on MyFawry app • Instant payment decreases costs/ working capital for merchants increasing
Slide 30: Q&A
Q&A
Fawry For Banking Technology And Electronic Payment — 9M 2021 Earnings Presentation on 6ix