FINANCIAL COMMUNICATION 2019 RESULTS Casablanca - 20 March 2020 - PowerPoint PPT Presentation

FINANCIAL COMMUNICATION 2019 RESULTS Casablanca - 20 March 2020

Summary Context of the year 2019 Financial review Operations review Prospects 1

CONTEXT OF THE YEAR 2019

The payment market in the world 1.200 1,045.5 CAGR Growth 139.3 895.5 (2017–22F) (2017–18F) 57.7 900 779.2 111.2 Global 14.0% 11.2% Non-cash transactions (billions) 54.3 90.2 684.1 51.1 MEA 21.6% 17.9% 604.7 74.4 352.8 Developing 48.4 538.6 600 61.9 269.5 23.5% Latin America 6.0% 5.5% 208.7 49.3 45.5 43.1 161.1 90.2 123.7 96.2 81.7 Emerging Asia 29.7% 28.6% 74.2 67.6 61.3 55.6 203.6 Mature 185.9 10.2% 10.2% 300 170.4 156.3 133.8 144.2 Asia-Pacific Mature Europe 7.1% 8.5% 6.3% 201.8 184.5 192.8 (Including Eurozone) 176.3 168.2 160.6 North America 4.7% 4.7% 0 2017 2019F 2020F 2021F 2022F 2018F Source: Capgimini payment report 2020 3

2019, moving towards meeting our strategic goals Achievements in 2019 Solutions Processing Services Ambitions Regional diversification Diversification of the offer Recurring revenue Operational excellence 4

FINANCIAL REVIEW

2019 in short Operating revenue Operating income Operating margin Net income Treasury 719.6 126.9 17.6% 93.8 85.5 M MAD M MAD vs. M MAD M MAD +8.6% +14.4% +16.7% +1.7% -30.5% • Strong growth in Solutions • Increase in Processing • Operating margin of 17.6% • Impact of the currency effect • Deployment of large-scale (+13,0%) and Processing activity with recurring up 0.90 pts on the financial result projects with longer (+22,4%) revenue recognition linked to implementation cycles • Positive impact of • Non-recurring items linked this activity • 27.7% increase in recurring operational excellence mainly to the social solidarity • Payment of the balance revenue efforts contribution relating to the acquisition of the Switch activity in Morocco 6

2019 highlights by activity +22.4% * Processing Switching +13.0% * Solutions Payment 22% Dynamics of Switching in Morocco Projects 10% Increase in recurring revenue linked to Upselling 8,5% Payment projects Maintenance Deployment of the Société Générale Licence project in 13 African countries (Payment) 25% 1,5% and in production in 2 countries 74% Diversification with the strengthening of our position in mobile banking 16% -13.3% * Services Strong momentum in diversifying geographic presence 6% Growth in upselling Delay in the renewal of major contracts 21% completed in the 4th quarter of 2019 New listings with major players in France and start of projects with new clients *Compared to 2018 7

Diversification of the offer & strengthening of recurring revenues In M MAD +12.3 -16.7 +2.9 +58.6 719.6 662.5 Solutions Solid performance of upselling and licence revenues Growth at maintenance level Launch of major projects Strengthening of our position in M-Banking Processing Recognition of the first revenues from the Payment Processing activity 320.8 409.7 (48%) (57%) Signing of the first Microfinance Processing contracts Recurring revenue Services In M MAD In % of operating revenues Late renewal of contracts in the 4th quarter of 2019 Operating revenue Solutions Processing Services Other Operating 2018 revenue activity activity activity 2019 8

Geographic footprint and regional diversification Africa Continued high production pace with customers in South Africa Europe Expansion of the client portfolio Americas 30.5% 3.5% Europe Asia Growth in the upselling of the Solutions activity which offsets 22.0% the decline in the Services activity in the region Asia Strengthening the customer base in our historic Middle East regions Africa Successful deployment of the Singapore office with the adding 44.0% of several countries Increase in the customer base with 3 new customers Africa Europe Asia Americas 2019 2019 2019 2019 297.3 M MAD 206.2 M MAD 148.3 M MAD 23.4 M MAD +1.7% vs. 2018 +8.8% vs. 2018 +17.4% vs. 2018 -24.8% vs. 2018 9

Operational excellence In M MAD Staff expenses Change in the workforce (+9%) combined with an increase 719.5 in salaries External expenses Sustained commercial effort through a presence in 23 major events in the payment industry Increase in rental expenses relating to the installation of -360.2 new premises +6.8%* (42.6%)** Consumables purchased 126.9 - +14.4* Stable trends in subcontracting 139.5 -84.5 (17.6%)** -41.4 +16.5%* -10.3 +0.3%* -10.7 Operating allowances (19.4%)* (11.7%)* +0.7* +24.6* * * (5.8%)** Amortisation in relation to investments made in the context (1.4%)** of PCA Operating Staff External Consumable Operating Other Other Operating revenue expenses expenses s purchased provisions operating income exp. * Compared to 2018 ** Share in operating income 10

OPERATIONS REVIEW

Sales Solutions Processing Services Switch Cards Switch Mobile Payment Processing Microfinance Asia Africa Europe 12

Solutions activity Strategic directions Contribution to overall income Anchor our presence by targeting “Tier 3” banks and ISOs in the United States 509.4 M MAD Offer our solutions to major European processors and middle-ranking banks in 74% Europe +13.0% vs. 2018 Develop a presence through partnerships in Southeast Asia and Latin America Develop E-Wallet solutions and solutions for various players (telecom, retail, etc.) Highlights Business trends in M MAD Signing of a contract with one of the top 10 global banks for the deployment of debit cards in 2 countries (Europe and Asia) 509 Continued high production pace with customers in South Africa 455 378 Sustained growth in upselling 410 TCAM + 16.0% 327 Completion of the SIA project and migration of the first customers to 321 Solutions activity 304 PowerCARD 244 TCAM 18.8% Option of PowerCARD for the SIA platform in Greece Recurring revenue PowerCARD selected for M-Payment in Saudi Arabia 2016 2017 2018 2019 Level of sales of 315 M MAD 13

Solutions activity Africa Africa Europe Asia Americas 2019 2019 2019 2019 Sustained activity with regard to South Africa 45% 20% 30% 5% Strengthening of our position through the signing of new contracts Europe Continued launch of major projects Signing of a contract with a Tier 1 financial services player Asia Confirmation of growth potential with the conclusion of several new contracts Signature of contract for the implementation of M-payment in Saudi Arabia Americas Implementation of an action plan for the development of 34.3% 30.1% 27.6% the region's growth potential 8.0% Upselling Projects Maintenance Licence 14

Processing activity Strategic directions Contribution to overall income Organic growth in the activity and by acquisition in Africa and the Middle East 67.1 M MAD 10% Diversification of the offer +22.4% vs. 2018 Highlights Business trends in M MAD Payment Société Générale Africa Project: first revenue linked to the electronic payment management contract in 13 African countries Signature of Payment Processing contracts in the Middle East and Europe 67 59 59 TCAM 18.1% Microfinance processing with the ALAFIA consortium project Processing 41 Switching Completion of the Switching platform launch for mobile and start of actual transactions 2016 2017 2018 2019 Signing of several contracts for Switch Mobile in Morocco 15

Switching Activity / electronic banking in Morocco in numbers Overall number of cards issued Transactions per card GAB network 29% 16.2 million cards 413.8 million transactions 7,613 units +0.4 million vs. 2018 +5.9% vs. 2018 +324 installations Withdrawal Payment Payment via Internet Number of operations in millions Number of operations in millions Number of operations in millions 7.5% 1.2x 2.1x 2.7x 316,1 294,5 271,8 256,2 85,4 68,0 Change in interoperable 53,5 9,8 8,3 40,5 operations processed by HPS 6,6 3,6 Switch vs. 2018 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 16

Switching Activity / Volumes processed and Changes in +22% vs. 2018 rates Number of payment transactions + withdrawals comparison 2019 vs 2018 January February March April May June July August September October November December 2018 2019 Change in the Weighted Average Change in the Weighted Average -39% -11% in the WAP in the WAP Price for payment transactions Price for withdrawal transactions 0,8171 0,4258 0,3247 0,2823 0,2614 0,7466 0,7362 0,7271 2016 2017 2018 2019 2016 2017 2018 2019 17

Services activity Strategic directions Contribution to overall income Diversification of activity towards high added value services 108.2 M MAD Diversification in French territory and establishment of regional agencies 16% -13.3% vs. 2018 Highlights Business trends in M MAD Renewal of contracts postponed to the fourth quarter of the year Growth of the client base (TF1, EDF, Allo Pneu, PMU, Vinci, etc.) Reorganisation of the sales force Referencing with major players in France and conclusion of new contracts 125 TCAM -1.1% 112 111 108 Services Activity 2016 2017 2018 2019 18

Strengthening of R&D efforts R&D effort in 2019 +18% 80.8 M MAD vs. 2018 PowerCARD - Switch PowerCARD - WebPublisher PowerCARD - Issuer PowerCARD - PowerCARD - eCommerce PowerCARD - ATM Acquirer PowerCARD PowerCARD - xPOS - eSecure 2016 2017 2018 2019 2020 19