Fawry For Banking Technology And Electronic Payment · EGX:FWRY
Fawry For Banking Technology And Electronic Payment — H1 2021 Earnings Presentation
26 slides from Fawry For Banking Technology And Electronic Payment's earnings presentation, Aug 19, 2021
Slide 1: H1 2021 Earnings Call
H1 2021 Earnings Call August 19, 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 • 2Q21 financial results • 1H21 Operating & financial results • Digital growth • Q&A 3
Slide 4: 2Q21 Financial Results Highlights
2Q21 Financial Results Highlights
Slide 5: Fawry continues to deliver strong top line growth in 2Q21 both YoY & QoQ
Fawry continues to deliver strong top line growth in 2Q21 both YoY & QoQ Throughput +52% +19% Revenue +35% +13% EBITDA +32% -8% Net Profit -6% -51% YoY QoQ YoY QoQ YoY QoQ YoY QoQ (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 394 30 76 349 119 25 110 291 20 84 40 37 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 2Q20 1Q21 2Q2
Slide 6: Normalized 2Q21 earnings expand to show strong YoY & QoQ performance
Normalized 2Q21 earnings expand to show strong YoY & QoQ performance Adjusted EBITDA Adjusted Net Profit 1Q21 Pre Tax Adjustments (EGP Mn) (EGP Mn) +32% +13% +26% +19% ▪ One off Net gain from incentives of spreading pos points of YoY QoQ YoY QoQ CBE initiative (+EGP 21 mn) 110 ▪ Fawry Plus change fr
Slide 7: 1H21 Operating & Financial Results
1H21 Operating & Financial Results Highlights
Slide 8: 1H21 delivering solid growth across all financial metrics
1H21 delivering solid growth across all financial metrics Throughput + 58% Revenue + 35% EBITDA + 50% Net Profit + 61% (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 54 743 230 113 549 153 70 34 1H20 1H21 1H20 1H21 1H20 1H21 1H20 1H21 8
Slide 9: Leveraging our expanding network, 564 mn transactions processed
Leveraging our expanding network 564 mn transactions processed Active customers + 19% Total POS + 40% Number of Avg transaction (EGP Mn) (EGP ‘000) Services + 51% Value + 49% (EGP) 232.6 1,323 34 97 166.5 879 65 28.5 1H20 1H21 1H20 1H21 1H20 1H21 1H20 1H21 9
Slide 10: Accelerated growth on throughput as we continue to expand our ecosystem
Accelerated growth on throughput as we continue to expand our ecosystem Quarterly throughput +52% (EGP Bn) 29.6 24.3 24.8 22.3 19.5 15.4 14.6 14.9 13.1 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 10
Slide 11: Revenues growth driven by massive demand for banking services and microfinance
Revenues growth driven by massive demand for banking services and microfinance Quarterly revenues +35% (EGP Mn) 394 343 342 349 291 269 258 242 199 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 ADP Banking services Microfinance Supply Chain Solutions Others 11
Slide 12: As we continue to deliver on our diversification strategy
As we continue to deliver on our diversification strategy 1H20 Revenues Mix 1H21 Revenues Mix % contribution to growth 5% 1% 6% 2% 4% 6% 8% 8% 27% 13% 16% 21% 63% 75% 45% ADP Banking services Microfinance Supply Chain Solutions Others 12
Slide 13: ADP delivers healthy growth driven by focus sectors 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 +21% +13% 465 413 Telco ADSL Bills Utilities Other Bills 1H20 1H21 1H20 1H21 13
Slide 14: Agent Banking and Acceptance drive Banking Services revenue growth
Accelerated growth of Agent Banking and Acceptance drive Banking Services as the biggest contributor to revenue growth Acceptance revenue Agent Banking revenue Highlights (EGP Mn) (EGP Mn) ▪ Solid performance of both in-store & online +266% +75.5% acceptance 63 96 ▪ Agent banking growing on the back
Slide 15: Microfinance revenues double as Fawry expands its presence
Microfinance revenues double as Fawry expands its presence in this underserved market leveraging merchant network Loan portfolio Microfinance revenue Highlights (EGP Mn) (EGP Mn) ▪ +17.5k clients +90% +108% 61 340 ▪ +1.5k online applications processed daily ▪ Extending credit limits up to EGP 200k ▪
Slide 16: Noticeable improvement in NPL cohort trend for 1H21
Noticeable improvement in NPL cohort trend for 1H21 Highlights PAR30, % (avg by years) 3.0% ▪ Microfinance portfolio 2.5% showing strong performance with significantly lower NPL 2.0% 1.5% 1.0% 0.5% 0.0% 2 3 4 5 6 7 8 9 10 11 12 2019 2020 2021 Nr of month after disbursement 16
Slide 17: Strong growth in Supply Chain services
Strong growth in Supply Chain services Supply chain TPV Supply chain revenue Highlights (EGP Mn) ▪ On our FMCG business, we have expanded the list +56% +51% of customers that use our handheld device to 44 accept electronic payments to include Nestle Water, Bel, and Arma 29 1H20 1H21 1H20 1H21 17
Slide 18: EBITDA expanding however impacted by investments in HR as we gear up for growth
EBITDA expanding however impacted by investments in HR as we gear up for growth Highlights EBITDA Net Profit Net CF from operating (EGP Mn) (EGP Mn) activity (EGP Mn) EBITDA ▪ Maintain tight control on +50% +61% +53% channel fees 230 113 318 ▪ Realizing operating leverage ▪ ESOP (non cash) 153 70 20
Slide 19: Making investments for growth & diversification
Making investments for growth & diversification Positioning to customers Technology Strengthening & diversifying management +52% Marketing spend to 135 EGP Mn +61% Technology spend & HR expenses as we drive growth on direct investments in our attract talent to scale to consumer strategy network up o
Slide 20: Digital growth
Digital growth
Slide 21: Strong momentum for our direct to consumer app MyFawry
Strong momentum for our direct to consumer app MyFawry MyFawry Cumulative downloads (‘000) 1.64 Annualized EGP Bn 4,000 3,500 3,000 throughput 2,500 3.5 Mn Downloads since 2,000 1,500 1,000 June 2019 500 - Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 21
Slide 22: Strong uptick in Mobile Wallets activity on the network
Strong uptick in Mobile Wallets activity on the network Highlights Mobile Wallet Transactions Mobile Wallet Processed Value (Volume) (EGP Mn) ▪ More than double processed value on mobile wallets +58% +151% 5,579 19.2 ▪ 60% increase in average transaction value to EGP 290 12.2 ▪ Roll out of NBE 2.0 w
Slide 23: Capturing a massive opportunity
Capturing a massive opportunity Acceptance is our fastest growing business. 23
Slide 24: Enabling the future of payments through our Acceptance business
Enabling the future of payments through our Acceptance business Revenue from instore Acceptance enabled POS Revenue from online Acceptance (‘000) acceptance +107% +78% +365% 168.5 94.5 1H20 1H21 1H20 1H21 1H20 1H21 24
Slide 25: Online acceptance TPV exceeds instore in 1H21
Online acceptance TPV exceeds instore in 1H21 36% 55% 1H20 1H21 Instore Online 25
Slide 26: Q&A
Q&A
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