ASA International Group PLC · LSE:ASAI
ASA International — Investor Presentation (February 2018)
21 slides from ASA International's investor presentation, February 2018
Slide 1: Leadership in Global Microfinance
LEADERSHIP IN GLOBAL MICROFINANCE Creating hope. Changing fortunes February 2018 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Legal Disclaimer
Legal Disclaimer IMPORTANT: You must read the following disclaimer before continuing. The following applies to this document and the information provided in connection with this document prepared by ASA International (the “Company” and together with its subsidiaries the “Group”) or any person on beh
Slide 3: ASA International
ASA International Who We Are Global Microfinance Leader with a Rich Heritage Why We Exist Massive Opportunity with ~750mn Underserved Females in Africa and Asia What We Do Low Risk Lending Exclusively for Income Generation Low-cost Operations with Decentralised Branch Network and Proprietary IT How
Slide 4: Our Management Team
Our Management Team 38 11 28 35 Md. Shafiqual Haque Choudhury Dirk Brouwer Aminur Rashid Md. Enamul Haque Non-Executive Chairman Chief Executive Officer Executive Director, Chief Operating Officer Operations Co-Founder and Chairman of ASA Co-Founder and Executive Director International(1) since
Slide 5: ASA NGO Bangladesh – A Rich Heritage
ASA NGO Bangladesh – A Rich Heritage Strong Loan Growth and Profitability, and Robust Asset Quality 2,000 200 Avg. PAR ratio (2000-17): 2.4% 1,800 180 Excl. 2008-09: 1.8% 1,600 160 1,400 140 1,200 120 1,000 100 800 80 NGO established by Md. 600 60 Shafiqual Haque 400 40 Choudhury in 1979 200 20
Slide 6: ASA Model – Distinguishing Features
ASA Model – Distinguishing Features High Touch Client Interaction through Group Selection without Joint Liability Weekly Collection(1) Loans Granted Exclusively for Income Ongoing Assessment of Client Generating Activities Needs, Benefits, and Satisfaction Full Repayment via Instalments Before Repea
Slide 7: Community Branch + Small Loans = Big Impact…
Community Branch + Small Loans = Big Impact… The branch is the centre of the Replicable and Low-cost Branch Model Group’s ecosystem Target ~1,500(1) clients per branch with ~12km radius and 20,000 target demographic Income generating investments Lending to individual micro- Avg. entrepreneurs
Slide 8: … Across All Our Geographies
… Across All Our Geographies Our Clients Our Branches Same ASA model for different clients across 12 markets 7
Slide 9: Strong IT Platform Supports Our Competitive Advantage
Strong IT Platform Supports Our Competitive Advantage Proprietary, In-House Developed IT Platform ASA Microfinance Banking System (AMBS) – backbone for operations One of the best tech solutions for the global microfinance sector All branches scheduled to be connected real-time over time 3G-e
Slide 10: Standardised Approach Reinforces Global Scalability
Standardised Approach Reinforces Global Scalability 1 2 3 4 5 6 7 Geo-Economic Regional Establishment Branch Group Individual Customer Loan Disbursement Survey of Country Assessment of Local MFI Opening Formation Appraisal and Collection and Region Countries of Gather first Arrange the Open
Slide 11: Diverse Geographic Footprint across 12 Markets…
Diverse Geographic Footprint across 12 Markets… Asia Africa Global replication of ASA model in 2007 Sri Lanka attractive markets with strong # Countries: economic fundamentals 2 Philippines Knowledge transfer with local India Ghana flexibility and innovation 2008 Pakistan #5 Group structure su
Slide 12: … Reflected in Key Operational Indicators
… Reflected in Key Operational Indicators Branches # of Clients(1) Outstanding Loan Portfolio 1% 1% 1% 0.4% 0.3% 0.3% 4% 2% 2% 4% 19% 3% 3% 3% 2% 3% 4% 4% 25% 6% 26% 6% 4% 4% 8% 7% 1,387 1.8mn US$243.3mn 8% 18% 13% 13% 20% 16% 24% 17% 16% 13% Philippines Pakistan Nigeria India Ghana Myanmar Tanzania
Slide 13: Growth at All Levels
Growth at All Levels Branches # of Clients (mn)(1) CAGR 1,387 1.8 22.8% CAGR 1,177 31.8% 947 1.3 751 1.1 609 0.8 0.6 2013A 2014A 2015A 2016A 2017A 2013A 2014A 2015A 2016A 2017A Outstanding Loan Portfolio (US$mn)(2) Net Income (US$mn) 243.3 CAGR CAGR 35.0% 19.3 38.6% 202.4 15.1 15.3 147.5 12.0 107.4
Slide 14: Strong Balance Sheet with Disciplined ALM
Strong Balance Sheet with Disciplined ALM Breakdown of Funding Profile (9M17) Diversification in funding profile with borrowings sourced by the Group’s microfinance institutions primarily from local Equity Local Deposits banks 16% In addition, ASA International level also 23% receives funding fr
Slide 15: Best-in-Class Performance vs. Peers
Best-in-Class Performance vs. Peers Low Operating Market Rates Lower Risk Strong Returns Cost (As at 9M17 for ASA International and latest for peers(1)) RoAA RoAE 36.5% 8.5% (2) 18.0% 16.7% 3.9% (2) 11.9% 2.2% 2.0% ASAI Key Peers EM Banks FM Banks ASAI Key Peers EM Banks FM Banks Operating Cost per
Slide 16: Commitment to Responsible Finance and Sustainability
Commitment to Responsible Finance and Sustainability Our Values and Practices High Degree of Customer External Recognition Satisfaction PLATINUM Did Our Loan Top Ratings from GIIRS Financial Inclusion Products Meet Your for three consecutive Needs? (% Yes)(1) years(3) 89% “Most Efficient Microfina
Slide 17: Bangladesh Hints at Significant Opportunity…
Bangladesh Hints at Significant Opportunity… Bangladesh is recognised as the “birthplace” of microfinance ASA NGO has achieved strong historical growth in clients, OLP and net profit, with CAGR (Dec-93 to Jun-17) of 16%, 31% and 42%, respectively ASA NGO serves 6.8mn clients with a loan book o
Slide 18: … with Large Addressable Market in Existing Geographies…
… with Large Addressable Market in Existing Geographies… 369mn potential underserved customers in existing operating countries, with ~154mn being existing clients from informal sources Significant breadth of opportunity which ASA International is best-placed to capture Room for Significant Upsid
Slide 19: … and Further Embedded Growth Potential in Existing Network
… and Further Embedded Growth Potential in Existing Network Even excluding sizeable Branch Maturity Differs by Geography – Example Case Study for Pakistan blue sky opportunity, Pakistan Case Study ASA International has 35,000 substantial embedded 45% of total global 1,763 value Outstanding Loan Po
Slide 20: What Next?
What Next? Continue to expand operations in existing countries ‒ Increased number of clients per branch in existing branches ‒ Gradually increase volume of loans in existing branches ‒ Open new branches Look to secure deposit taking licenses in existing geographies Utilise strong IT platform a
Slide 21: ASA International: Key Highlights
ASA International: Key Highlights 1 Internationally Proven and Replicable Business Model Unique and Diversified Presence in High-Growth Markets which Offer Significant Opportunity for Long- 2 Term Growth 3 Track Record of Attractive Financial Returns and Growth 4 Strong Risk Management 5 Significant
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