1 Results Presentation. Full Year Results 2018 www.mybucks.com
Salient features. 2 Operating profit improved by 26% year-on-year. ▪ Loss after tax improved as a result of increased revenues, improved impairment to revenue, reduced cost of ▪ funding, and a stable cost to revenue ratio. Revenue increased by EUR 5.5m to EUR 61.3m predominantly driven by South Africa, Mozambique and ▪ Uganda. The impairment to revenue has improved from 22% to 19% notwithstanding a significant increase in South ▪ Africa’s impairment charge due to external factors. The cost of funding improved by five percentage points on the back of a capital raise of EUR 11.5m in ▪ February 2018. Cost to revenue ratio remained stable, operating costs will be a key focus area of the business going forward. ▪ The business has continued to improve it’s Artificial Intelligence capabilities, the full impact which is expected ▪ to be seen in future periods particularly around customer experience. www.mybucks.com
Executive Chairman’s comments . 3 “ The group withstood challenging economic conditions as our investments in technology, human capital and sound business fundamentals have paid off. I am pleased with the growth in our loan book and disbursements in the past 12 months and happy to report that the business is stable. The past year has been a period of consolidation, we have turned the lens inwards to heighten our competitiveness and efficiency and standardise business systems, as well as the banking platforms, throughout the group. Having proven that the group can generate economies of scale and significantly improve impairment charges through technology, I believe MyBucks is on the right track to both loan book growth and profitability in the near term. MyBucks has managed to build on the foundation of a scalable group platform positioning it to become Africa’s leading digital bank. We continue to follow our strategy to grow the business through organic growth in existing and new markets, acquisitions, franchising models, joint venture models ” and global business-to-business tech offerings. – Dave Van Niekerk, Executive Chairman www.mybucks.com
4 MyBucks overview www.mybucks.com
Company overview. 5 Operations : 1,188 MyBucks is a leading FinTech group listed in Frankfurt Employees that provides financial services and products through 1,815 Agents technology in 13 countries across Africa, Europe and 107 Australia. Branches “Our vision is to enhance financial inclusion through our technology” – Dave Van Niekerk, Executive Chairman MFI operations Supporting operations Banking operations www.mybucks.com
MyBucks highlights. 6 We use our own internal developed Frankfurt-listed FinTech group Awards loan management system We have developed our own Artificial Focused on Africa Intelligence (A.I) algorithms for fraud prevention, credit scoring and collections We have disbursed c.EUR 500 million in Operating 4 banks and 9 lending loans since inception operations Our gross loan book has grown at c.38% Providing banking, credit and insurance per year, to c.EUR 100 million products We provide these products through a hybrid Our default rate has been stable at 7.1% of digital and traditional channels www.mybucks.com
Evolution of the group. 7 € 120 € 100 MyBucks has grown to 13 countries , obtained € 80 4 banking licenses, Millions developed 5 apps and € 60 6 A.I. personalities, € 40 and provided more than 2 million loans in € 20 less than 7 years. Loan book < EUR 4m in 2013 € 0 2011 2012 2013 2014 2015 2016 2017 2018 * Development Technology Continuous development Data warehouse FinCloud SQL2008 Charlie Maica Jessie Dexter Tess Donte Credit scoring Fraud prevention Chatbot Loan uptake Client churn Collections #1 #2 #3 #4 #5 The move from a Transition from a The MyBucks group MyBucks continues to expand operations globally , assessing new opportunities The MyBucks group is launched in 2011 as a traditional MFI providing Strategic Initiatives traditional MFI to a digital MFI to expands our Banking in both new and existing territories. credit to unbanked consumers across Southern Africa. digital MFI with the provide digital license presence to 5 launch of GetBucks financial services , Countries as part of an Key to this growth is laying a solid foundation in existing territories – fundamental online and GetBucks with the launch of effort to access cheaper to this is a stable and long term capital structure. MyBucks will continue to raise mobile App. additional Apps as forms of funding capital in local markets, and IPO our existing operations in their primary well as insurance (customer deposits, inter- markets to ensure our interests are aligned with the local investors and products. bank rates, etc.) stakeholders . www.mybucks.com * Includes the NFB (Malawi) loan book
MyBucks business model. 8 Leveraging technology across the lending process Distribution Business units Products Technology Results Apps Payroll • SMME Credit • Agriculture • Education • Online consumer • A.I. Digital financial Jessie - Credit scoring Dexter - Fraud prevention services offering to Credit cover • Insurance Tess - WhatsApp chatbot Funeral cover • Maica - Collections algorithm the unbanked and Legal cover Websites • Donte - Loan uptake predictor Medical cover • the underbanked. Charlie - Client churn prevention model www.getbucks.co.za www.mbc.finance www.nfb.mw Portfolio management www.opportunitybank.co.ug www.getsure.co.za FinCloud - loan management platform GetSure - insurance platform 107 branches MyBucks dashboards - real-time analytics Savings accounts Banking • Mobile transactions • Transactional card • 1,815 agents www.mybucks.com
Loan book analysis. 9 As at 30 June 2018 Since inception Net Loan Book Annual Disbursements Gross loan book Total disbursed (EUR m) (EUR m) €96.24m €495.17m 100 250 80 200 60 Active loans Total loans issued 150 40 100 265 054 2,380,438 20 50 0 0 FY '14 FY '15 FY '16 FY '17 FY '18 FY '14 FY '15 FY '16 FY '17 FY '18 Term months (%) Age split (%) Average age 40 33,99 Average loan tenure 46,4 45,5 50 29,22 38 30 23,99 26 months 40 20 30 9,55 20 10 8,06 3,24 10 Value Weighted 0,1 0 0 0 0 18 - 25 26 - 35 36 - 45 46 - 55 55+ 1 to 3 4 to 6 7 to 12 13 to 36 37 to 60 61+ Customer use of loan proceeds (%) Average Loan Balance (€) 30,00% 34% 25,04% 24,53% Average Euro balance 600 21,59% 20,00% 16,36% €363 400 200 10,00% 66% 0,21% 0 0,00% Value Weighted Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Agricultural Educational Consumption Emergency SME www.mybucks.com
10 Financial results www.mybucks.com
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