Rasan Information Technology Co. · TADAWUL:8313
Rasan Information Technology — FY2024 Earnings Presentation
26 slides from Rasan Information Technology's earnings presentation, Mar 3, 2025
Slide 1: Rasan's Earnings Call FY 2024
RASAN’S EARNINGS CALL FY 2024 March 3rd, 2025
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 FY 2024 05 | Q&A 3
Slide 4: Opening Remarks
OPENING REMARKS
Slide 5: FY 2024: Strong Business Performance
FY 2024: STRONG BUSINESS PERFORMANCE Strong Revenue growth Ebitda beyond guidance Expanded the portfolio and prepared new lines for growth +40% Y-o-Y +78% Y-o-Y • Health (SME, Corporate) SAR 358 M SAR 114 M - 32% of revenue • Financial Services distribution • VAS and Ecosystem • Medical Malpracti
Slide 6: FY 2024: Financial Highlights
FY 2024: FINANCIAL HIGHLIGHTS Revenue Volumes GWP SAR 358 M +19% Motor +35% Treza SAR 6.5 B 40% Y-o-Y +69% Stable Y-o-Y Health Gross Margin Net Profit Operating Cashflow 66% SAR 95 M SAR 165 M +8.6pp. Y-o-Y +106% Y-o-Y SAR 72M FY-23 ORGANIC GROWTH AND ENHANCING PROFITABILITY Note: GWP= Gross Writte
Slide 7: Market Dynamics
MARKET DYNAMICS
Slide 8: Insurance Market in KSA Continues Healthy Growth
INSURANCE MARKET IN KSA CONTINUES HEALTHY GROWTH KSA Insurance Market Gross Written Premium (B SAR) 75-80 +23% 65 Insurance CAGR product (’21-’24) 53 42 Life +64% Other GI +23% Motor +19% Health +20% 2021 2022 2023 2024* Source: Insurance Authority Yearly and Quarterly report - *Estimate for 2024 8
Slide 9: Market Growth Supported by Multiple Tailwinds
MARKET GROWTH SUPPORTED BY MULTIPLE TAILWINDS Regulators Fostering a healthy market development Health Insurance Motor Insurance General Insurance Life Insurance Financial services Tailwinds 13M lives with private Effective enforcement General Insurance (GI) 2X+ growth in retail Rapid development of
Slide 10: Business Update
BUSINESS UPDATE
Slide 11: Achieved Consistent Progress Across the Strategy Pillars
ACHIEVED CONSISTENT PROGRESS ACROSS THE STRATEGY PILLARS STRATEGY PILLARS Protect Enhance Grow Innovate Diversify | Improved conversion and | Boosted sales in SMEs | Launched Medical | Developed end-to-end | Finalizing development of renewal rates premium classes Malpractice, Travel, embedded insura
Slide 12: Strengthened the Position in Motor
STRENGTHENED THE POSITION IN MOTOR Motor Retail Motor Leasing +15p.p. ~40% 2X Increase Conversion Renewal Comprehensive Cross-selling New engagement rate rate volumes volumes model ▪ Collaborated with ▪ Enhanced renewal ▪ Introduced multiple, ▪ Launched add-ons ▪ Obtained the license Insurance Partn
Slide 13: Enhanced Health Insurance
ENHANCED HEALTH INSURANCE STRENGTHEN IMPROVED INCREASED LAUNCHED NEW PARTNERSHIPS RENEWALS AUTOMATION FEATURES ▪ Expanded the Insurance ▪ +2X in renewals ▪ Piloted employee data ▪ Introduced the panel for across all automation at pre- Declarative journey for segments and classes ▪ Redesigned renewal
Slide 14: Building a Sophisticated Insurance Ecosystem
BUILDING A SOPHISTICATED INSURANCE ECOSYSTEM Sophisticated Insurance Ecosystem Play Deliver value and convenience to our customers Distribution One-stop shop for all insurance needs Automation Increased efficiency and speed Product bundling Combine product offering to make them better suited for spe
Slide 15: Preparing More Activity in the Financial Services Distribution
PREPARING MORE ACTIVITY IN THE FINANCIAL SERVICES DISTRIBUTION Distribution focus for financial services SME Financing Personal financing Real estate financing Exploring opportunities to offer finalized Developing distribution channels for financial Exploring M&A opportunities to distribute business
Slide 16: Continued Brand Expansion
CONTINUED BRAND EXPANSION Outstanding reach in KSA SPONSORSHIPS DIGITAL TV Continuously innovating to connect with customers through impactful digital advertising, strategic TV placements, and high-value sponsorships, ensuring maximum reach and engagement 16
Slide 17: Reinforced the Customer Experience
REINFORCED THE CUSTOMER EXPERIENCE Bank New Tameeni App New Tameeni Frontend New Treza Claim Reporting ▪ Re-designed all content and in-app purchase ▪ Unified design for all products ▪ Introduced new claim reporting feature (i.e. flow ▪ More user-friendly customer journey FNOL) ▪ Improved functional
Slide 18: Growing a Rockstar Team
+13% We grew out team efficiently (13% YoY Total FTEs 319 FTEs 359 FTEs growth) 2023 2024 GROWING A Saudization ROCKSTAR Maintained high level of Saudization in TEAM Saudization 93% regulated entities Talent 15 Focus on retaining and hiring talent with experience in Fintech & Insurtech Average Years
Slide 19: Financial Performance
FINANCIAL PERFORMANCE
Slide 20: FY 2024 Summary P&L: Strong Performance Across the Board
FY 2024 SUMMARY P&L: STRONG PERFORMANCE ACROSS THE BOARD FY 2023 FY 2024 YoY Var Revenue 256 358 40.0% Gross Profit 148 238 60.5% Gross Profit Margin 57.9% 66.5% 8.6p.p. Opex 98 139 42.3% EBITDA 64 114 78.5% EBITDA Margin 24.8% 31.7% 7.3p.p. Net Profit 46 95 106.1% EPS 0.65 1.29 98.5% 20
Slide 21: Solid Growth and Consistent Product Diversification
SOLID GROWTH AND CONSISTENT PRODUCT DIVERSIFICATION Revenue SAR MM ✓ Significant growth in Q4 24 +40% compared to Q4 23 358 +69% 256 ✓ 2024 Revenue increased by 40% (SAR 102m) compared to FY23, 118 primarily attributed to: 70 | Motors Revenue: + SAR 37M Q4 2023 Q4 2024 FY 2023 FY 2024 | Treza Revenu
Slide 22: 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 ✓ Q4 2024 Gross Profit increased by SAR MM, % 139% compared to Q4 2023 | Margin reached 79% due to 56% 79% 58% 67% improved absorption of cost of sales, driven by scalability +61% 238 ✓ FY 24 Gross Profit
Slide 23: Gross Margin Constantly Improving Q-o-Q and Y-o-Y
GROSS MARGIN CONSTANTLY IMPROVING Q-O-Q AND Y-O-Y Gross margin bridge Q-o-Q Gross margin bridge Y-o-Y SAR MM SAR MM 238 10 32 148 60 -12 93 67 9 -2 2 18 GP Q3 24 Direct Motor Mix1 Cross Health GP Q4 24 GP FY 23 Direct Motor Mix1 Cross Health GP FY 24 personnel selling SME personnel Selling SME & oth
Slide 24: Resilient and Growing EBITDA
RESILIENT AND GROWING EBITDA EBITDA evolution and Margin SAR MM, % ✓ Growing EBITDA in Q4 23 and Q4 24 driven by 22% 39% 25% 32% | Increase in Revenue (SAR 48M) resulting in healthy absorption of +78% fixed operating costs +198% | Economies of scale 114 46 64 | Diversified product base 15 Q4 2023 Q4
Slide 25: High Conversion Rate from EBITDA to Net Profit
HIGH CONVERSION RATE FROM EBITDA TO NET PROFIT Net Profit and Margin1 SAR MM, % ✓ FY24 Net Profit increased at a higher rate than Revenue (+106% 14% 34% 18% 26% vs 40% revenue increase rate) +106% +3X 95 ✓ High conversion rate of EBITDA to 40 46 Net Profit due to: 10 | Controlled level of D&A expens
Slide 26: Thank You
Thank You ﺷﻜﺮﺍﹰ
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