Financiera Independencia Sab De Cv · BMV:FINDEP
Financiera Independencia Sab De Cv — Q3 2023 Earnings Presentation
19 slides from Financiera Independencia Sab De Cv's earnings presentation, 2023
Slide 1: 3Q23 Company Presentation
3Q23 fal Wi a ra ic
Slide 2: Disclaimer
Disclaimer This presentation was prepared solely for informational purposes and does not constitute, and is not to be construed as, an offer or solicitation of an offer to subscribe for or purchase or sell any securities. The securities mentioned in this presentation have not been and will not be re
Slide 3: Company Overview
Company Overview Findep (the “Company”), leader in bringing financial inclusion to the underserved Hispanic communities in North America through responsible lending and insurance products. Key Pillars Subsidiaries Big underserved market In Mexico, 51%1 of the population is unbanked and in the US 29%2
Slide 4: 3Q 2023 Highlights
3Q 2023 Highlights Highlights Other Milestones Findep’s strategy in improving its maturities profile, and strengthening its balance sheet, is reflected on this quarters results: Strong and consistent Interest Bearing Liabilities performance Net Profit MX$ 163 million -21% YoY Top line remains strong an
Slide 5: Current Situation: Strengthened Balance Sheet
Current Situation Strengthened Balance Sheet 3Q23 vs. 2022 vs. Million Pesos 2016 2022 3Q23 2016 3Q23 Total Assets 12,155 11,686 11,359 -7% -3% Tangible Assets (a) 10,568 10,677 10,350 -2% -3% Total Portfolio 7,448 8,560 7,773 4% -9% Total Portfolio (FISA+AEF+AFI) 5,476 8,560 7,773 42% -9% Net Debt
Slide 6: Current Situation: Benefiting from operating efficiencies
Current Situation Benefiting from operating efficiencies Principal lines of Income Statement 2016 9M23 annualized % of average portfolio % of average portfolio *LLR methodology is not comparable as we implemented the CNBV methodology in 1Q22. As a proxy, TTM write-offs to average portfolio decreased f
Slide 7: Our strategy and execution have yielded consistent gains in net income
Current Situation Our strategy and execution have yielded consistent gains in net income Net Income excluding one-off, non-cash effects on results (Million Pesos) 2.8x * Excluding write-off of Finsol Mexico’s goodwill effect for MXN 448 m in 2020, and MXN 311 m in excess discretionary reserves, whic
Slide 8: Our strategy and execution have yielded consistent gains in net income
Our strategy and execution have yielded consistent gains in net income Excluding one-offs non-cash events 1Q 2Q 3Q 4Q Total 2012 34 (38) 8 (120) (116) 2013 51 56 66 81 254 2014 101 63 78 76 318 2015 60 39 63 47 209 2016 53 40 81 60 234 2017 68 66 60 30 225 2018 27 82 74 80 262 2019 63 89 76 97 324 2
Slide 9: Investment Highlights
Investment Highlights 1 ● Stable and profitable throughout economic cycles Unique ● Knowledge of the segment and the business built through Business experience with millions of loans originated Model ● Demonstrated ability to reduce origination and generate cash 2 ● Continued investment in analytics
Slide 10: Unique Business Model
1 Unique Business Model Consistent profitability and low volatility through crises. Consistent Profitability and Improving Asset Quality* Our portfolio has yielded consistently over 40% annually in Total Operating Revenue even through the worst of the pandemic. Likewise, NPLs have continued to decreas
Slide 11: Balance risk and growth: Mexico and US Portfolio Performance
2 Balance risk and growth Mexico and US Portfolio Performance 3Q23 vs. 4Q20 +26% AFI 3Q23 vs 4Q20 +42% MEX 3Q23 vs 4Q20 +29%
Slide 12: Balance risk and growth: Focus on individual unsecured loans
2 Balance risk and growth Focus on individual unsecured loans to simplify the corporate structure ● Individual unsecured loans can achieve efficiencies through digital transformation. ● Aligned with our expertise. Strong skills in Data Analytics, Risk Management, and Systematic Operation are key to s
Slide 13: Actions taken to support stakeholder confidence
2 Balance risk and growth Actions taken to support stakeholder confidence ● Clear message of long term commitment to debt investors on Strengthened Balance Sheet behalf of equity holders. (No dividends since 2016) ● Better position to navigate challenging market. ● Listened to stakeholders and switch
Slide 14: Growth in the US: AFI has grown 2.9x since 2016
3 Growth in the US AFI has grown 2.9x since 2016 AFI (US) Portfolio, USDm ● Our US portfolio has grown 2.9x in the last 6 2.9x 165m years, a 17.2% CAGR, mostly in California. ● Unserved Hispanic market (62m) in the US, with California being the largest market. ● Proven business model poised for grow
Slide 15: Growth in the US: Operating leverage and efficiency
3 Growth in the US An increase in operating leverage has yielded significant efficiency AFI Non-Interest Expenses / Average Loan Portfolio 15
Slide 16: We expect a majority of our assets to be located in the US
3 Growth in the US We expect a majority of our assets to be located in the US % of Findep total portfolio 16
Slide 17: Efficiency through technology
4 Efficiency through technology Technology has allowed us to do more with less Loan Portfolio per Employee (Thousands MXN) Initiatives ● Migrating IT platform to the cloud. 2.3x ● Developed mobile tools to enable efficiency of Customer Service staff. ● Self service tools for our customers. Outcome ● O
Slide 18: Efficiency through technology
4 Efficiency through technology Technology has allowed us to do more with less Monthly average origination per employee (Includes all FINDEP employees). Thousands MXN +41% 18
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