Investor Presentation First Half 2020 13 th of August 2020 | Cairo, - - PowerPoint PPT Presentation

Investor Presentation – First Half 2020

13th of August 2020 | Cairo, Egypt

• 13.9% y-o-y

EGP

207.7

mn EGP

178.8

mn

Total Revenues

EGP1.0bn

↓10% y-o-y

H1 2019 EGP 1.1bn

Net Operating Profit

EGP312.6mn

↓9% y-o-y

H1 2019 EGP 342.5mn

Operating Profit Margin

30.3%

H1 2019 29.9%

Cost to Income1

29.1%

H1 2019 22.0%

Net Profit Margin

17.3%

H1 2019 18.1% Annualized Return on

• Av. Equity (ROAE)

12.8%

• 1. Cost-income is calculated as people’s cost and other SG&A divided by total revenue

Net Profit After Tax & Minority By Platform

Key Consolidated Metrics H1 2020

Group Hig ighlights

H1 2020 Consolidated Results

H1 2019 H1 2020

Investor Presentation| 2 CI Capital Investor Relations

NBFS, 74% IB & Holding , 26%

NBFS, 75% IB & Holding , 25%

Consolidated revenues declined 9.9% y-o- y despite solid operational performance from the group’s financing business. NBFS made up 79.8% of consolidated revenue while the investment bank along with the holding company represented the remaining 20.2%. Total operating expenses declined 10.4% y-

• -y due to a decrease of 24.0% in interest

expense y-o-y to reach EGP 418.4 million while still accommodating the group’s

• perational expansion in its financing

business given a lower interest rate environment People’s Cost & Other SG&A represented 29.1% of revenue, up from 22.0% in the comparable year. Net operating profit declined 8.7 % y-o-y

• ffset by the group’s strong operational

performance Net profit after tax and minority reached EGP 178.8 million in H1 2020, representing an annualized ROAE of 12.8%.

Summary Consolidated Income Statement Results commentary

(EGP mn) H1 2020 H1 2019 % Change Consolidated Revenue 1,031.8 1,145.4

• 9.9%

Leasing 624.4 768.2

• 18.7%

Micro-finance 187.7 163.5 14.8% Mortgage Finance 8.7 0.0 nm Consumer Finance 2.1 0.0 nm Investment Bank & Holding* 208.9 213.7

• 2.2%

Operating Expenses 719.2 803.0

• 10.4%

Interest Expense 418.4 550.9

• 24.0%

People Cost & Other SG&A 300.8 252.1 19.3% Net Operating Profit 312.6 342.5

• 8.7%

Net Operating Margin 30.3% 29.9% Net Profit After Tax & Minority 178.8 207.7

• 13.9%

H1 2020 Consolidated Results

Statement of f Profit & Loss

Investor Presentation| 3 CI Capital Investor Relations

*Includes intercompany related adjustments

Summary Consolidated Balance Statement Results commentary

Total assets grew 16.5% versus Dec-19

• n

the back

• f

higher financing portfolio, offset by the group’s recent EGP 2.2 billion securitization issuance Total debt increased a moderate 23.5% versus Dec-19 to accommodate the increase in financing business portfolio (grew 21.0% vs. Dec-19).

(EGP mn) 30-Jun-20 31-Dec-19

Settlement guaranteed fund 9.2 9.1 Receivab ables es 6,608.5 4,979.7 PP&E 136.6 134.5 Goodwill 348.8 348.8 Securitization difference, net 239.4 210.9 Financial Investments In Associates 363.5 317.1 Other non-current assets 141.9 67.1 Non-current assets 7,847.9 6,067.2 Receivab ables es 3,290.7 3,226.5 Cash and cash equivalents 1,289.8 1,458.2 Other current assets 239.3 125.8 Current assets 4,819.8 4,810.5 Total assets 12,667.7 10,877.7 Paid-in capital 1,000.0 800.0 Legal reserve 26.3 22.1 Retained earnings 1,372.8 1,292.5 Share Premium Reserve & Others 447.0 640.8 Shareholders’ equity (Parent company) 2,846.0 2,755.4 Shareholders’ equity (Non-controlling interest) 187.0 200.4 Total shareholder’s equity & minority interest 3,033.0 2,955.8 Long-term loans & facilities 5,612.8 4,513.2 Other Non-current Labilities 205.8 119.1 Non-current liabilities 5,818.6 4,632.3 Short-term loans & facilities 2,664.4 2,189.7 Credit customers 494.7 412.4 Other current liabilities 656.9 687.5 Current liabilities 3,816.1 3,289.5 Total liabilities & equity 12,667.7 10,877.7

H1 2020 Consolidated Results

Bala lance Sheet

CI Capital Holding for Financial Investments has adopted the new Egyptian Accounting Standard EAS 49 in relation to its leasing subsidiary effective from Q2 2019. The new EAS 49 brings lease accounting more in line with IFRS 16 and requires changes and restatement to prior periods’ figures with implications

• n

both the consolidated income statement and balance sheet. Comparative and H1 2019 financials have also been restated to comply with the new standard.

Investor Presentation| 4 CI Capital Investor Relations

768.2 624.4 H1 2019 H1 2020 124.4 113.0 H1 2019 H1 2020

New Bookings

EGP1.5bn

• 41.6% y-o-y

Net Interest Margin (NIM)

4.6%

Outstanding Leasing Portfolio – EGP bn Net Interest Income – EGP mn

Debt to Equity

6.4x

Key Gr Growth Driv Drivers

Net Profit After Tax – EGP mn

Net interest income declined 4% y-o-y as a result of the securitized portion of the portfolio Corplease’s leasing portfolio grew 4% y-o-y as the monetary easing cycle continues

Leasing Revenue – EGP mn

H1 2020 Business Lines’ Performance

NBFS – Leasing

Investor Presentation| 6 CI Capital Investor Relations

8.1 8.4 H1 2019 H1 2020 180.3 173.9 H1 2019 H1 2020

163.5 187.7 H1 2019 H1 2020 56.7 60.6 H1 2019 H1 2020

Number of Branches

78

Average Ticket Size

EGP14.1k

Microfinance Loans Outstanding – EGP mn Net Interest Income – EGP mn

Number of Active Borrowers

100.4k

+ 1.9k y-o-y

Key Gr Growth Driv Drivers

The growing loan book resulted in significant growth in net interest income Reefy capitalized on its diverse geographical presence to grow it loan book by 22% y-o-y

Microfinance Revenue– EGP mn

H1 2020 Business Lines’ Performance

NBFS – Micro-finance

Investor Presentation| 7 CI Capital Investor Relations

Net Profit After Tax – EGP mn

659.9 807.6 H1 2019 H1 2020 118.0 154.0 H1 2019 H1 2020

212.8 207.7 H1 2019 H1 2020

Brokerage - Market Share1

9.9%

IB Advisory Revenues EGP22.0mn

• 34.9% y-o-y

Revenue By Line of Business – EGP mn IB & Holding Net Profit – EGP mn

Asset Management - AUM’s

EGP9.8bn

+ 6.9% y-o-y

IB & Holding Revenue – EGP mn

1. Market Share is for transactions on the main market excl. deals. Source: EGX

Research - Stocks Covered

120

H1 2020 Business Lines’ Performance

In Investment Bank & Holding

Key Performance Indicators

Investor Presentation| 8 CI Capital Investor Relations

Contribution to Net Profit

25% 57.0 44.6 H1 2019 H1 2020

About CI Capital Holding for Financial Investments CI Capital Holding for Financial Investments is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, mortgage finance, consumer finance, and investment banking products and services. Through its headquarters in Cairo and presence in New York and Dubai, CI Capital Holding for Financial Investments offers a wide range of financial solutions to a diversified client base that includes global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors. CI Capital Holding for Financial Investments leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital Holding for Financial Investments offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital Holding for Financial Investments offers micro-finance lending through Egypt’s first licensed MFI, Reefy.

Share Information IR Contacts +20 (02) 3331 8154 Investor.relations@cicapital.com CI Capital Holding for Financial Investments , Galleria 40, 26th of July Corridor St., Sheikh Zayed City, Egypt

Tic icker: CICH.CA; CICH EY EY Sha Shares s Outstanding: 1,00 1,000,0 ,000, 0,000 Paid aid-In Cap apital: EGP 1,00 1,000, 0,000 00,000 00

Stock In Information

Investor Presentation| 9 CI Capital Investor Relations

This presentation contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of words and phrases like “according to estimates”, “anticipates”, “assumes”, “believes”, “could”, “estimates”, “expects”, “intends”, “is of the opinion”, “may”, “plans”, “potential”, “predicts”, “projects”, “should”, “to the knowledge of”, “will”, “would”, “annualized” or, in each case their negatives or other similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements containing information on future financial results, plans, or expectations regarding the Company’s business and management, the Group’s future growth or profitability and general economic and regulatory conditions and other matters affecting the Group. Forward-looking statements reflect the current views of management of future events and are based on management’s assumptions and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The occurrence or non-occurrence of an assumption could cause the actual financial condition and results of operations of the Group to differ materially from, or fail to meet expectations expressed

• r implied by, those forward-looking statements. The Company’s business is subject to a number of risks and uncertainties that could also cause a forward-

looking statement, estimate or prediction to become inaccurate. These risks include fluctuations in employee costs required by the operations of the Group, its ability to retain the services of certain key employees, its ability to compete successfully, changes in political, social, legal or economic conditions in Egypt, worldwide economic trends, global and regional trends in the industry, the impact of war and terrorist activity, inflation, interest rate and exchange rate fluctuations and the ability of management to identify accurately and in a timely manner future risks to the business of the Group and manage the risks mentioned above. Accordingly, investors should not rely on the forward-looking statements in this announcement. None of the Group, its management or CI Capital Holding for Financial Investments gives any assurance regarding the future accuracy of the opinions set forth in this announcement or as to the actual

• ccurrence of any predicted developments. After the date of this announcement, none of the Group or its management assumes, and each of the Group and

its management expressly disclaim, any obligation, except as required by law and the listing rules of the EGX, to update any forward-looking.

Disclaimer