Rasan Information Technology Co. · TADAWUL:8313
Rasan Information Technology — H1 2024 Earnings Presentation
22 slides from Rasan Information Technology's earnings presentation, Aug 13, 2024
Slide 1: Rasan's Earnings Call H1 2024
Rasan’s Earnings Call H1 2024 August 13, 2024
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Rasan LLC (the “Company”) and its subsidiaries (togethe
Slide 3: Agenda
01 | CEO Opening remarks 02 | Market Dynamics AGENDA 03 | Business Update 04 | Financial performance H1 2024 05 | Q&A 3
Slide 4: CEO Opening Remarks
CEO OPENING REMARKS MOAYAD AL FALLAJ
Slide 5: H1 2024: Strong Business Performance
H1 2024: STRONG BUSINESS PERFORMANCE Robust growth in sales Record EBITDA margin Launched 3 new products in Health and Motors +51% Y-o-Y in Policies 22.2% • Domestic Helper Contract & +21% Y-o-Y in Revenues (+7.7pp vs H1 23) Health Ins. • Motor Add-ons • Cross-selling facility 5
Slide 6: H1 2024: Financial Highlights
H1 2024: FINANCIAL HIGHLIGHTS Revenue Volumes GWP +54.9% +31.0% SAR 130 M Motor Treza 2,8 B 20.7% Y-o-Y +57.5% +0.6% Y-o-Y Health Gross Margin EBITDA Margin Operating Cashflow 59.4% 22.2% SAR 74 M +2.8pp. Y-o-Y +53.2% Y-o-Y SAR 5.3M 1H-23 ORGANIC GROWTH AND OUTSTANDING PROFITABILITY Note: GWP= Gross
Slide 7: Market Dynamics
MARKET DYNAMICS NICOLA GARELLI
Slide 8: Structural Tailwinds Continue to Drive Sustainable Growth in KSA Insurance Market
STRUCTURAL TAILWINDS ARE CONTINUING TO DRIVE SUSTAINABLE GROWTH IN KSA INSURANCE MARKET INCREASING CATCH UP OF IMPORTANCE OF HEALTH INCREASING HISTORIC UNDER INSURANCE VIA INSURANCE REGULATORY ROLE OF DIGITAL PENETRATION OF VISION 2030 TARGETS GROWTH DRIVE DISTRIBUTION INSURANCE GDP growth outlook a
Slide 9: Rasan Is Leading in Its Core Segments and Growing Faster Than the Market
RASAN IS LEADING IN ITS CORE SEGMENTS AND GROWING FASTER THAN THE MARKET Rasan is positioned within a double-digit growth market(1) B SAR 71(E) CAGR (‘20-’24) +15% 67 Salvaged, Repossessed and Used rental vehicles +1% 55 Protection & Savings +20% 41 45 Motor +13% General insurance +15% SME Health +1
Slide 10: Business Update
BUSINESS UPDATE NICOLA GARELLI
Slide 11: Rasan Strategy Is Based on Pillars and Clear Objectives
RASAN STRATEGY IS BASED ON 5 PILLARS AND CLEAR OBJECTIVES Protect Enhance Grow Innovate Diversify STRATEGY PILLARS Protect market share, Build a leading health Expand in the insurance Utilize proprietary Pursue expansion across adapt to changes, and product, enhance value chain and broaden Insurtech
Slide 12: Strategy Pillars: Progress Achieved in H1 2024
PROGRESS ACHIEVED IN H1 2024 STRATEGY PILLARS Protect Enhance Grow Innovate Diversify | Substantially increased | Boosted SME health | Launched new | Introduced end-to- | Development of renewal rate higher classes Domestic Helpers end distribution financial products | Drove sharp increase in | Intro
Slide 13: Continued Brand Expansion
CONTINUED BRAND EXPANSION Strengthened the Sports collaborations Maintained distinctive positioning Boosted awareness on specific verticals (i.e. and launched multiple activations Motor Comprehensive and Health SME) SME Health – Full product list coverage (25.5M impressions) Motor - Cashback campaig
Slide 14: Contributing to Build a Robust Insurance and Finance Ecosystem
CONTRIBUTING TO BUILD A ROBUST INSURANCE AND Payment FINANCE ECOSYSTEM Service Providers Banks STRENGTHENING RASAN’S ECOSYSTEM SMEs Insurance WITH ADDITIONAL PARTNERSHIPS Incubator Companies +20 NEW COLLABORATIONS IN Q2 2024 Accidents Record Leasing Companies | Insurance companies | Lessors Gov’t Da
Slide 15: Financial Performance
FINANCIAL PERFORMANCE RAJAA KHODER
Slide 16: H1 2024 Summary P&L: Strong Performance Across the Board
H1 2024 SUMMARY P&L: STRONG PERFORMANCE ACROSS THE BOARD H1 2023 H1 2024 YoY Var Revenue 108 130 +20.7% Gross Profit 62 77 +24.1% Gross Profit Margin 57.8% 59.4% +1.6pp. Opex 53 56 +5.3% EBITDA 16 29 +84.9% EBITDA Margin 14.5% 22.2% +7.7pp. Net Profit 8 18 +140.7% EPS 0.11 0.26 +146.7% *EPS is recal
Slide 17: Solid Growth and Consistent Product Diversification
SOLID GROWTH AND CONSISTENT PRODUCT DIVERSIFICATION Group Revenue SAR MM +21% ✓ Significant growth in Q2 24 compared to Q2 23 130 +22% 108 52 64 ✓ First half of 2024 Revenue increased by 21% (SAR 22m) compared to H1 23, primarily attributed to increased volumes: Q2 2023 Q2 2024 H1 2023 H1 2024 | Mot
Slide 18: Solid and Attractive Gross Profit as a Result of an Efficient Cost Base
SOLID AND ATTRACTIVE GROSS PROFIT AS A RESULT OF AN EFFICIENT COST BASE Gross Profit and Margin ✓ First half of 2024 Gross Profit SAR MM, % increased by 24% compared to H1 2023 57.3% 58.9% 57.8% 59.4% | Margin reached 59.4% due to improved absorption of cost of +24% sales, driven by scalability 77 ✓
Slide 19: Resilient and Growing EBITDA
RESILIENT AND GROWING EBITDA EBITDA Evolution and Margin SAR MM, % ✓ Growing EBITDA in Q2 24 and H1 18.5% 24.2% 14.5% 22.2% 24 driven by +85% | Increase in Revenue (SAR 13M) resulting in healthy absorption of +59% 29 fixed operating costs | Economies of scale 15 16 10 | Diversified product base ✓ Re
Slide 20: High Conversion Rate from EBITDA to Net Profit
HIGH CONVERSION RATE FROM EBITDA TO NET PROFIT Net Profit and Margin SAR MM, % 10.4% 13.9% 7.0% 14.0% ✓ Net Profit increased at a higher rate than Revenue (+141% vs 21% +141% revenue increase rate) +62% 18 9 ✓ High conversion rate of EBITDA to 5 8 Net Profit due to: | Controlled level of D&A expense
Slide 21: Questions
QUESTIONS
Slide 22: Thank You
Thank You ﺷﻜﺮﺍﹰ
Rasan Information Technology — H1 2024 Earnings Presentation on 6ix