1Q 2024 Earnings Call
May 15, 2024
1
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2
AGENDA
1Q 2024 Operating & financial results
01
Dive into 1Q 2024 results
02
Digital growth
03
Q&A
04
3
1Q 2024
Operating & Financial
Results Highlights
4
Main highlights for the period
• Revenue growth came in at 61% y-o-y for 1Q2024, widely beating guidance and the highest growth
100+ bn
•
rate since 2015
Despite ADP growing by 28% y-o-y in 1Q2024, the highest since 3Q2020, ADP declined in terms of
Throughput for 1Q24 contribution to revenue to 33%, highlighting Fawry’s success in revenue diversification
46.6%
• Banking Services segment, contributed the lion share of top-line growth for 1Q2024, with 49% of
consolidated revenue growth, growing its contribution to 42% of total revenue
EBITDA margin for • The Company maintained increasing profitability down the income statement, reaching the highest
1Q24, the highest in EBITDA and net income margins since inception for the second consecutive quarter
company’s history
• Microfinance gross loan portfolio reached EGP 1.2 billion, Consumer finance loan portfolio exceeded
28.2%
EGO 240 million, while Money Market find balance reached 1.7bn as of end of 1Q2024
• Total mobile wallets processed value more than doubled year-on-year in 1Q24, reaching EGP 78 billion
Net income margin for as financial inclusion rates and digital payment adoption continue their steady rise nationwide
1Q24, the highest in
company’s history on • myFawry’s annualized throughput for March 2024 nearly tripled that of March 2023, driven by the
adjusted basis launch of the Prepaid Card, BNPL and MMF over the myFawry app, inline with the embedded finance
strategy the company is undergoing
5
Achieving growth across all operational KPIs
Active Network Total POS +15% Number of Total transactions Avg transaction
Customers +5% (000s) services +25% +24% (mn) value +37% (EGP)
(mn) 356
442 263
52.1 3,351
356
2,685
193
311
49.8
1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024
6
EBITDA doubles, margin reaches 46.6%, Net profit comes 2.5x times
that of 1Q 2023
Throughput +69% Revenue +61% EBITDA +111% Net profit +149%
(EGP bn) (EGP mn) (EGP mn) (EGP mn)
1,087
307
116 507
676
69
240
123
1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024
Total revenue excluding airtime would have grown by 69% y-o-y, as airtime grew by 26% y-o-y
1Adjusted Net Profit reflects EAS Net Profit excluding after tax impact of nonrecurring items such as a noncash ESOP expense of EGP 15.0 million and EGP 27.2 million
included in EAS net profit of 4Q21 and 4Q22, respectively. 7
Throughput exceeds EGP 100bn per quarter, for the second
consecutive quarter Quarterly throughput (EGP bn)
+69%
+
116
105
95
79
69
62
55
47
40 41
36
30
22 25
4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
8
Quarterly revenue exceeds EGP 1bn for the first time ever
Quarterly revenue
+61%
1,087
955
873
768
651 676
614
531
467 483
448
394
342 349
4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
9
Revenue diversification continues, with acceptance and
financial services growing in contribution
Revenue contribution by quarter Contribution to y-o-y revenue growth for
1% 2% 3% 2% 1Q 2024
6% 4% 3%
7% 7% 7% 7% 7%
13% 13% 12% 12% 15% 16%
3%
8%
20% 20% 20% 19% 19%
21% 21%
16% 17% 18% 19%
20% 21% 21%
44% 41% 40% 40% 35% 33%
27%
4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024
22%
ADP Acceptance Agent Banking
Financial Services Supply Chain Solutions Technology & others
10
Implemented cost-control measures have led to a decrease in the
portion of revenue allocated, thus strengthening financial efficiency
y-o-y expenses increase Expense item as % of revenue
70% 14% 14% 13%
12%
12%
53% 10%
42%
38% 39%
34%
26%
5%
4%
11% 11% 3%
Marketing Selling HR Marketing Selling HR
1Q 2022 1Q 2023 1Q 2024 1Q22 1Q23 1Q24
11
…Leading to overall margins improvement
Gross profit margin (%)
+3.8%
65.8%
63.8% 64.2%
62.7% 62.0% 61.6%
59.6%
57.7% 58.0%
55.5%
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
EBITDA margin (%)
+11.1%
42.6%
46.6%
39.7% 41.9%
36.3% 35.5%
28.2% 27.8% 30.6%
26.3%
4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
12
Dive into
1Q 2024 figures 13
ADP beating guidance, growing at 28% y-o-y
ADP throughput value ADP revenue (EGP mn) Contribution to ADP revenue growth
+35% +28%
15%
355
44%
278
34%
7%
1Q 2023 1Q 2024 1Q 2023 1Q 2024 Telecom ADSL Utilities Others
14
Acceptance doubling vs. last year, while Agent Banking exceeding
guidance with 66% y-o-y increase
Acceptance revenue (EGP mn) Agent Banking revenue (EGP mn)
+66%
+97% 230
227
138
116
1Q 2023 1Q 2024 1Q 2023 1Q 2024
15
Both acceptance revenue segments almost doubling vs. last
year
Revenue from instore Acceptance enabled POS Revenue from online
acceptance (000s) acceptance
+94%
+99% +13%
300
266
1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024
16
Financial services revenue doubling y-o-y, with loan portfolio
growing by 87% y-o-y
• Number of Microfinance loans granted in 1Q24 reached Gross loan portfolio Financial services
18.9k, up by 130% y-o-y (EGP mn) revenue (EGP mn)
• Disbursements for Microfinance for 1Q24 reached EGP
548 mn up by 191% from EGP 188 mn in 1Q23 +87% +101%
• Outstanding Microfinance loan portfolio reached EGP 1.2 1,459
bn, up by 56% y-o-y 174
• Average loan portfolio per staff member increased by
50% y-o-y, showing higher efficiency
• Average number of monthly processed online applications 779
87
for Microfinance in 1Q24 came at 11.6k, 55% higher than
that of 1Q23 which stood at 7.5k
• Consumer finance loan portfolio reached 243mn by end
of 1Q24
• Money Market fund balance reached 1.7bn by end of 1Q24 1Q 2023 1Q 2024 1Q 2023 1Q 2024
Gross loan portfolio includes Microfinance and Consumer finance (BNPL), while Financial services revenue include Microfinance,
17
Consumer finance (BNPL), Insurance Brokerage, Money Market Fund and Prepaid Card revenue
Microfinance portfolio quality maintained,
PAR 30 still below 2%
Number of months after disbursement
PAR30, % (by years)
2.0%
1.8%
1.6%
1.4%
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0.0%
2 3 4 5 6 7 8 9 10 11 12
2020 2021 2022 2023
18
Supply Chain revenue growing on the back of inflation and
increase in adoption
Supply chain throughput Supply chain revenue
(EGPmn)
+70%
+70%
76
44
1Q 2023 1Q 2024 1Q 2023 1Q 2024
19
Digital growth
20
Through myFawry, Fawry aims to lead the embedded finance era
The launch of, i) myFawry
prepaid card (Yellow Card), ii)
BNPL and iii) the money market myFawry cumulative downloads
fund last year, fueled the
myFawry app growth, with 12.6 EGP Bn
Annualized Mar 24
14,000,000
12,000,000
throughput almost tripling
y-o-y throughput 10,000,000
Up c. 195% y-o-y 8,000,000
Company is on course to offer 6,000,000
medical insurance products
13.3
4,000,000
over the same portfolio in c. Mn 2,000,000
2024, in addition to P2P and Downloads since 0
remittances June 2019
Up 43% y-o-y
21
Growing digital transactions activity
Mobile wallet1 Mobile wallet1 Total digital 2 Total transactions
transactions (mn) processed value transactions (mn) (mn)
(EGP bn)
+24%
+51% +109% +88%
442
124
78
48 356
32
66
37
1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024
1 These figures reflect total processed value and transactions from bank and operators’ wallets processed on the Fawry Network.
2 These figures reflect mobile wallet, myFawry, prepaid card and Banking and acceptance transactions 22
Q&A 23
