Presentation to Investors & Analysts HY 2020 Presentation
Disclaimer • From time to time, Africa Prudential Plc (“ Afriprud ”) or the (“Company”) make written and/or oral forward-looking statements in presentations (including this presentation) and other communication. In addition, representatives of the Company may make forward-looking statements orally to analysts, investors, the media and others. All such statements are intended to be forward looking statements. Forward looking statements include, but are not limited to, statements regarding the Company’s objectives and priorities for 2020, and beyond and strategies to achieve them, and the Company’s anticipated financial performance. Forward looking statements are typically identified by words such as “ will ” , “ should ” , “ believe ” , “ expect ” , “ anticipate ” , “ intend ” , “ estimate ” , “ may ” , “project” and “ could ” . • By their very nature, these statements require the Company to make assumptions and are subject to inherent risks and uncertainties, general and specific. In the light of uncertainties related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyond the Company’s control and the effects of which are difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include, exchange rate, market exchange, and interest rate, operational, reputational, insurance, strategic, regulatory, legal, environmental, and other risks. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Company and we caution readers not to place undue reliance on the forward-looking statements. • Any forward looking statements contained in this presentation represent the views of management only as at the date hereof and are presented for the purpose of assisting the company’s investors and analysts in understanding its financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Africa Prudential does not Excellence undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation. • The information used in this presentation were obtained from several sources that the Company believes are reliable. Whilst Africa Prudential has taken all reasonable care to ensure the accuracy of the information herein, neither Africa Prudential nor any of its subsidiaries/affiliates makes representation or warranty, express or implied, as to the accuracy and correctness of the information. Thus, users are hereby advised to exercise caution in attempting to place reliance on these information and carry out further research or seek the opinion of professional advisers before reaching conclusions regarding their investment decisions. HY 2020 Presentation
Presentation Outline • C ompany Overview • O perating Environment • F inancial Review • Digital Technology • Outlook • Appendix HY 2020 Presentation
OVERVIEW HY 2020 Presentation
Overview Transforming the African continent through innovative solutions, superior investor relations and business support services. 600,000 + Aggregate lives on 10million + Listed on the Nigerian Stock EasyCoop Exchange Automated Cooperative User-Capacity Platform. Management Solution. with over 250,000 shareholders. Leading Registrar with Certified on the First USSD-based solution in the 5 Decades NSE CGRS Nigerian Capital Market (Personal Registrar *4018#). Capital Market Experience. Corporate Governance Rating System. Excellence Ranked 3 rd Core Values +3million on the Nigerian Stock Exchange in terms of dividend yield with 6 Consistent dividend pay-out Investor accounts for proprietary years average dividend yield of since listing. enterprise. 14.07%.
Our Journey So Far 2017 2020-2021 2013 1970 Business Business Company Birth Name Change Transformation Expansion Change of name and rebrand We changed business name to • Started as a department of • Expand digital • to Africa Prudential Plc. Africa Prudential Registrars Plc. legacy United Bank for Africa technology, capital Plc (UBA). market and e- Announced business strategy We became the first Registrar • commerce offerings venturing into digital firm to be listed on NSE . Registered UBA’s Initial Public • across Africa, technology. Offering. leveraging cloud technology and big data. Incorporation Business Acquisition Product Innovation Opened an oversubscribed • Incorporated as UBA Registrars Launched its own inhouse Innovation • • Rights Issue for additional One Limited. Lab. Billion Ordinary Shares of 50 Innovation hub, acceleration • Kobo each. Grew total asset base to about program, development of various • N14.1 billion and increased software for the capital market, Acquired UAC Registrars • client base to 50 companies. automated registrar service, customer- Limited. focused services. 2006 2013 2019 Total Asset stood at $60.7Million •
Our Competitive Advantage Technology Support Our activities are geared towards leveraging • technology to create superior value and transform customer experience across our businesses. Management Team To this end, our processes are technology- • Experience driven for effective and efficient service delivery. Individually, each management staff member • has an average of 15 years in our industry. As such we have an in-depth understanding of • our industry. Durable Exposure . With experience spanning three decades, we • have had faced tough times and numerous economic turbulence. Synergy with Industry These experiences have helped us anticipate • Stakeholders and predict our environment with precision. We are attuned to symbiotic relationship • founded on mutual respect with industry stakeholders, regulators and other Capital Market Operators. Customer Experience Our customer remain central to business and • we focus on creating exceptional experience across our touch points.
OPERATING ENVIRONMENT HY 2020 Presentation
Snapshot Capital Market Activities gains momentum Challenging Macroeconomic Environment • The impact of the Covid-19 pandemic is expected to • Corporate issuances of CPs and Bonds has taken impact growth performance negatively in Q2 2020 as the the centre stage in a bid to raise fresh capital to Government imposed a 5 weeks lockdown to curtail the weather the storm of COVID-19. impact of the pandemic. • The duo factor of increased system liquidity and low-yield environment is spurring interest in pursuing • This disrupted the supply chain, investment and consumer debt financing in the capital market by corporates spending, and government revenue projection with and government. consequence for output and income generation in the economy. Digital Technology Regulations • With the fast pace of digital disruptions in the With the launch of our Innovation Lab, we are • business landscape, the need for regulations to strategically positioning our business to take play a leading role in supporting innovation is advantage of digital technology, machine learning, crucial to growing the capital market. AI and Big data to simplify our operations and develop innovative solutions to create value for our clients
The World in COVID-19 Era Confirmed Positive Cases of COVID-19 Infection around the World Since April 23 rd 2020, the number of confirmed cases of • COVID-19 infections around the world has grown exponentially from about 2 million people infected to more than 11 million people with 500,000+ deaths and 6.9 million recoveries. In a bid to slowdown the spread-rate of the virus, more than • 80 countries imposed either a lockdown, travel ban, curfew or other forms of social distancing measures for at least 6 weeks. The measures taken disrupted global supply chains, halted • business activities, and resulted in massive demand and supply shock as well as job losses and high unemployment. > 100,000 Consequently, global equities markets were in the red sea Cases as investors flew for safety. Major economies recorded negative growth for Q1 2020. The • economy of USA, China, UK and Germany all contracted by -5%, -6.8%, -2% and -1.9% y-o-y. In June, the IMF revised its growth projections downwards • from -3% to -4.9% in 2020 as general economic slowdown was recorded around the world in Q1 2020. Measures taken by Governments to reduce the effect of • COVID-19 on their economies include: US Federal Reserves cut rate to 0-0.25% band and bond • buying program. € 750bn asset purchase program by the European • Central Bank and $500bn stimulus package approved by the EU. Liquidity injection of RMB3.8tn by the Peoples Bank of • < 10,000 China. Data is given as at July 7 th 2020 Cases Source: WHO Situation Report, IMF World Economic Outlook June 2020, Worldometer, United Capital Research, Arrhenn Analysis
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