Fawry for Banking Technology and Electronic Payment · EGX:FWRY
Fawry for Banking Technology and Electronic Payment — FY2021 Earnings Presentation
31 slides from Fawry for Banking Technology and Electronic Payment's earnings presentation, May 17, 2022
Slide 1: FY 2021 Earnings Call
FY 2021 Earnings Call May 17, 2022
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 • FY21 Operating & financial results • Digital growth • Agile Transformation • Money Market Fund • 2022 Guidance • Update on US Listing • Q&A 3
Slide 4: FY21 Operating & Financial Results Highlights
FY21 Operating & Financial Results Highlights
Slide 5: Ending the year with growth across all financial metrics
Ending the year with growth across all financial metrics Throughput + 61% Revenue + 34% EBITDA + 29% Adj. Net Profit +13% (EGP Bn) (EGP Mn) (EGP Mn) (EGP Mn) 1,658 494 131 186 165 382 1,235 81 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 FY2021 Total revenue excluding airtime would have grown by
Slide 6: Growth on all operational KPIs
Growth on all operational KPIs Active customers + 40% Total POS + 18% Number of Total transactions Avg transaction (Mn) (EGP ‘000) Services + 38% up 5% (Mn) Value + 54% (EGP) 269 1,634 113 40.5 1,158 1,106 1,186 29.0 73 228 FY 2020 FY 2021 FY2020 FY2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 202
Slide 7: Continued growth momentum in throughput
Continued growth momentum in throughput Quarterly throughput +79% (EGP Bn) 39.9 36.4 29.6 24.3 24.8 22.3 19.5 14.6 14.9 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 7
Slide 8: …translating to growth in Revenues
…translating to growth in Revenues Quarterly revenues +37% (EGP Mn) 467 448 394 343 342 349 291 269 258 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 ADP Banking services Microfinance Supply Chain Solutions Others 8
Slide 9: …while further diversifying our revenue base
…while further diversifying our revenue base FY20 Revenues Mix FY21 Revenues Mix % contribution to growth 6% 6% 2% 2% 6% 7% 8% 20% 1% 14% 15% 25% 59% 73% 56% ADP Banking services Microfinance Supply Chain Solutions Others 9
Slide 10: ADP growth increasingly driven by newer services
ADP growth increasingly driven by newer services ADP throughput ADP revenue Contribution to ADP (Value) (EGP Mn) throughput growth by bill type +15% +9% 985 902 Telecom ADSL Utilities Others FY2020 FY2021 FY2020 FY2021 10
Slide 11: Banking Services growing substantially through both Agent Banking and Acceptance
Banking Services growing substantially through both Agent Banking and Acceptance Acceptance revenue Agent Banking revenue (EGP Mn) (EGP Mn) +92% +254% 244 167 127 47 FY2020 FY2021 FY2020 FY2021 11
Slide 12: Microfinance: Business Developments & Earnings
Microfinance: Business Developments & Earnings Highlights: Loan portfolio Microfinance revenue ▪ 20.7k clients (65% Fawry Clients) (EGP Mn) (EGP Mn) ▪ Extending credit limits up to EGP 200k +66% +89% ▪ EGP 512 Mn disbursed in FY21 with EGP 1 Bn disbursed 436 137 since inception 2021 Digital transfor
Slide 13: Microfinance: Portfolio quality & Earnings
Microfinance: Portfolio quality & Earnings Number of months after disbursement Efficient Risk Model : ▪ Proper Clients Profiling ▪ Centralized Decision-Making ▪ Ongoing Staff Training ▪ PAR30 clients not exceeding 1.6% after 12 months of loan repayments (FY20 & FY21) Clients concentration in differe
Slide 14: Continued growth in Supply Chain revenues
Continued growth in Supply Chain revenues Supply chain throughput Supply chain revenue (EGP Mn) +59% +42% 98 69 FY2020 FY2021 FY2020 FY2021 14
Slide 15: Expanding Supply Chain services
Expanding Supply Chain services E-payment & Cash Management Cash Management 4Q20 4Q21 61 +25% 76 Active Clients Active Clients WC/Supply chain Finance Service Offering ▪ FRA & CBE approval obtained ▪ Pilot with Bel Egypt in 4Q22 B2B marketplace/ Proactive ordering WC Finance Proactive Ordering ▪ Pil
Slide 16: Healthy growth in EBITDA along with strong Operational Cash Flows
Healthy growth in EBITDA along with strong Operational Cash Flows EBITDA Net CF from operating (EGP Mn) activity (EGP Mn) +29% +35% 641 494 382 473 FY2020 FY2021 FY2020 FY2021 16
Slide 17: Enhance the platform's diversification through investments
Enhance the platform’s diversification through investments Positioning to customers Technology Strengthening & diversifying management 70 EGP mn 111 EGP Mn +80% +48% Technology spend & HR expenses as we investments in our attract talent to scale network up our organization Marketing spend to drive g
Slide 18: Digital growth
Digital growth
Slide 19: Rapid growth across myFawry app
Rapid growth across myFawry app 2H21 developments 2.2 myFawry cumulative downloads (‘000) EGP Bn 5,000,000 Launched Annualized Dec.21 4,000,000 Market place for throughput Up 92% y-o-y offers & rewards 3,000,000 5 2,000,000 c. Mn CBE approves Downloads since 1,000,000 myFawry card June 2019 - Q4 Q4
Slide 20: Continued growth in Mobile Wallets activity
Continued growth in Mobile Wallets activity¹ Mobile Wallet Transactions Mobile Wallet Processed Value (Volume Mn) (EGP Mn) +37% +95% 52 39,872 38 20,455 FY 2020 FY 2021 FY 2020 FY 2021 ¹ These figures reflect total processed value and transactions from bank and operators’ wallets processed on the Fa
Slide 21: Continued adoption across the Acceptance business
Continued adoption across the Acceptance business Revenue from instore Acceptance enabled POS Revenue from online Acceptance (‘000) acceptance +142% +32% +317% 186.3 141.3 FY2020 FY2021 FY 2020 FY 2021 FY2020 FY2021 21
Slide 22: Agile Transformation
Agile Transformation
Slide 23: Why Agile Transformation
Why Agile Transformation Transitioning from Start-up Top Down Hierarchies to Enterprise Organization ▪ Bureaucratic ▪ Separate Business Units ▪ Require detailed instruction Issue: as organizations grow, project development and delivery can be severely delayed Dynamic Practices Stable Practices Scale
Slide 24: Fawry's Agile Transformation Strategy
Fawry’s Agile Transformation Strategy ▪ Line of Business ▪ Cross Functional Teams ▪ Leadership ▪ Working Place ▪ Talent Management Structure ▪ Culture People ▪ Roles and Responsibilities ▪ Communication ▪ Governance ▪ Team Processes ▪ Supporting Tools ▪ Linkage- Technology ▪ Architecture Evolution m
Slide 25: Money Market Fund
Money Market Fund Launched in 1Q22
Slide 26: What is the Fawry Youmy Fund
What is the Fawry Youmy Fund Fawry’s saving product targeting the masses Democratizing Saving & Investment Co-launched with Misr Capital ▪ Open for all ages 16+ Initial fund size of EGP 30 Mn ▪ Subscription for EGP 500 only Subscribe through : ▪ Minimal documentation requirements ▪ Merchant Network
Slide 27: 2022 Guidance
2022 Guidance
Slide 28: Fawry in FY 2022
Fawry in FY 2022 Consolidated revenue to grow ±44% y-o-y New services to be launched: ▪ ADP to grow ±16% y-o-y ▪ myFawry Card ▪ Banking services to grow ± 101% y-o-y ▪ myFawry Financial Services (Saving, Insurance, Lending) ▪ Microfinance to grow ± 65% y-o-y ▪ B2B Market Place ▪ Supply Chain to grow
Slide 29: US Listing
US Listing
Slide 30: US Listing Updates
US Listing Updates ▪ US listing will be on hold ▪ Continue to monitor global market conditions 30
Slide 31: Q&A
Q&A
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