2018 THIRD QUARTER PRESENTATION TO INVESTORS & ANALYSTS 2018 THIRD QUARTER PRESENTATION TO INVESTORS & ANALYSTS
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2018THIRD QUARTER
PRESENTATION TO INVESTORS & ANALYSTS
2018THIRD QUARTER
PRESENTATION TO INVESTORS & ANALYSTS
OUTLINE
Page|2
Section Page
1 Africa Prudential Overview 03
2 Operating Environment 07
3 Financial Overview 09
4 2018 Outlook 14
5 Appendix 16
1 AFRICA PRUDENTIAL OVERVIEW
FUNDAMENTAL STATISTICS
Page|4
Diversified business lines broadening revenue streams
First and only registrar firm listed on the Nigerian Stock
Exchange
Ranked No. 1 in technology and
innovation among corporate registrars
70Over
Clients
Manages 83 client registers, made up of
over 3million shareholders
4
NShareholders Fund of
N7.43billion,higher by 7% YTD
Africa Prudential is strategically located
in the commercial capital of Nigeria, Lagos; the political capital, Abuja; and
Port-Harcourt.
2
Total revenue: N2.58billion, compared to N2.27billion in Q3 2017 (14% YoY growth).
Profit Before Tax:N1.62billion, an impressive
11% YoY growth compared to Q3 2017.
The top management of the Company have a
track record of providing registrar as well as allied services to the Nigerian
Money and Capital Markets.
1
3
OUR JOURNEY SO FAR…
Page|5
UBA Registrar Department was created in 1970
Accounts/clients increased from 15
to 17
Asset book of over N1.4billion with
N63.4million gross earnings
No computerization (transactions were
done manually)
UBA Registrar was incorporated in
2006
Accounts/Clients increased from 17
to 50
Gross earnings rose to N1.9billion and asset book rose to
N14.1billion
Innovation and capacity building
commenced
A
B
Projected gross earnings of N10billion
Implementation of Strategic BusinessSegmentationAsset book increased to N18billion while
gross earnings increased to N3.3billion
Clients increased to over 70
The Company’s name changed to Africa Prudential Registrar in 2013
Acquisition of UAC Registrars Limited with 4 clients base
Number of shareholders increased to over 280,000 shareholders
APR was listed in January 2013
The Company’s name changed to Africa Prudential Plc in 2017
Total Separation of registrar business
Total Separation of E-SolutionsBusiness
Entrance into the African market
1 321A: 1970 – 2006 & 1B: 2006 - 2012 2013 - 2017 2018 - 2025
Phas
e
Phas
e
Phas
e
OUR STRATEGY
Page|6
Africa Prudential would play in three major areas which includes: Registrar business E-solution Business African Market
Each business area would be led by a “Business Lead” and would run as aseparate business
Africa Prudential
Registrar Business
1
African Market
3
E-Solutions Business
2
2 OPERATING ENVIRONMENT
OPERATING ENVIRONMENT
14%Interest Rate
*As at Sept 2018
22.5%
Cash Reserve Ratio
*As at Sept 2018
11.28%Inflation Rate
*As at Sept 2018
13.31%Food Inflation
Rate
*As at Sept 2018
2.9%GDP Growth
Rate
*As at June 2018
N360/$Exchange Rate
*BDC; as at Sept 2018
B2
Credit Rating
*Moody’s; as at Nov 2017
$45.9bnForeign
Exchange Reserves
*As at Sept 2018
145th
Ease of Doing Business
*As at Dec 2017
$78.89(Dollars per barrel)
Crude Oil(Brent Crude)
*As at Sep 2018
Source: Trading Economics
Page|8
3 FINANCIAL OVERVIEW
Q3 2018 RESULTS SNAPSHOT
Page|10
Financial Metric (N' Billion) Q3 2018 Q3 2017 Change
Revenue 2.58 2.27 +14%
Operating Expenses (0.97) (0.75) +28%
Profit Before Taxation 1.62 1.45 +11%
Profit After Taxation 1.35 1.31 +3%
EPS (Kobo) 67 65 +3%
Financial Metric (N' Billion) Q3 2018 FY 2017 Change
Total Assets 18.81 21.93 -14%
Total Liabilities 11.38 14.99 -24%
Total Equity 7.43 6.94 +7%
0.56 0.57
0.75
0.97
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Operating Expenses (N'billion)
1.751.53
2.272.58
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Gross Earnings (N'billion)
…INCREASING EARNINGS
Page|11
34% 41%29% 36%
66% 59%71% 64%
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Breakdown of Earnings(%)
Fee Income Investment Income
Over the last 4 years (Q3), Africa Prudential grew gross earnings by 14% CAGR,leveraging on innovation, technology and efficient management ofinvestment activities.
Fee Income grew by an impressive 43% year on year in Q3 2018, driven byincrease in number of customers serviced.
Also, Net Investment Income contributed 64% of Gross Earnings, driven largelyby efficient management of investment activities.
Operational Expenses increased by 28% year on year. This was largely due totechnological advancement, business expansion, product development andrecruitment.
1.08
0.82
1.31 1.35
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Profit After Tax (N’billion)
62%
54%
58%
52%
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Profit Margin(N’billion)
1.19
0.93
1.451.62
Q3 2015 Q3 2016 Q3 2017 Q3 2018
Profit Before Tax (N'billion)
STRONG PROFITABILITY
Page|12
Profit Before Tax grew 11% CAGR over the last 4 years representing a strongmomentum in terms of profitability.
The Company recorded a 3% year on year growth in Profit After Tax toN1.35billion, representing the highest profit in the 4-year period.
The Company’s Profit Margin stood at 52% and delivered an EPS of 67 kobo.
FY 2015 FY 2016 FY 2017 Q3 2018
Total Liabilities (N’billion)
13.1212.27
14.99
11.38
FY 2015 FY 2016 FY 2017 Q3 2018
Total Assets (N’billion)
16.8
21.9318.81
BALANCE SHEET SNAPSHOT
Page|13
The Company’s Total Assets declined by 14% YTD, largely due to reduction incash
Total Shareholders Funds grew 7% YTD
The Company’s Total Liability declined by 24% YTD.
FY 2015 FY 2016 FY 2017 Q3 2018
Shareholder’s Fund (N’billion)
4.57 4.55
6.94 7.43
17.7
4 2018 OUTLOOK & KEY TAKEAWAY
2018 OUTLOOK
Page|15
Q3 2018 Actual 2018 Guidance % of Guidance
1 Gross Earnings N2.58Bn N3.8Bn 68%
2 Professional Fee Income N0.94Bn N1.3Bn 72%
3 Net Investment Income N1.64Bn N2.3Bn 71%
4 Operating Expense N0.97Bn N1.4Bn 69%
5 Profit Margin 52% 55% 95%
6 Return On Equity 25% 32% 78%
7 Return On Assets 9% 9% 100%
5 APPENDIX
ABOUT AFRIPRUD - ACTIVITIES & AWARDS
Page|17
First registrar portal developed in 2008
Most profitable subsidiary of UBA group in 2009
Engaged in debt recovery, processreview/reengineering as well as brandresuscitation
Created a Strategic Business TransformationDepartment
International Quality Crown Award 2013
Best Top 25 CEOs Award 2013
The Company was listed on the Nigerian Stock Exchange inJanuary 2013
1 billion share right issue (over subscribed by 125%)
Commencement of Blue Ocean Strategy as well as marketfocus on the Cooperative Sector
Setting up the structure for business segmentation (Registrars,E-Solution and Africa Focus)
Best Profit Margin Ratio Company - PEARL Award 2015
Best Corporate Governance Company in Nigeria, PEARLAward 2015
Best Registrar Firm in West Africa - 2017, Africa-Canada TradeAlliance, West Africa Innovation and Excellence Awards
Robust Internal Control mechanism and CorporateGovernance structure that support operations
First registrar companyto pay e-dividend
Phase One B: (2006 - 2013)Phase One A: (1970 -2005) Phase Two: (2014 - 2017)
ABOUT AFRIPRUD - ASPIRATIONS
Page|18
Over the next 7 years, Africa Prudential is poised to be No.1 in Nigeria, with an aspiration to expand into the African market, driven by technology and reinforced by a strong capital base.
Implementation of Strategic Business Segmentation
Total Separation of E-Solutions Business
Market Leader with Technology And Innovation
Total Separation of Registrar Business
Entry Into the African Market
Sustain Strong Capital Base
To Penetrate Other African
Markets
#1 In Nigeria
AFRIPRUD & TECHNOLOGY
Page|19
Information Technology 01
Easy Access 02
User Friendly 03
Information Technology
IT is the bedrock of our digital aspirations and innovation.
Our track record of being first in innovative products isdriven by our belief that IT is key to our survival as acompany.
User Friendly
Our technology has been designed to be highly user friendly with aninterface that enables our clients to have the best experience.
Easy Access
Our platforms can be easily accessed through variousdevices such as laptops, smartphones etc.
Our simplified USSD code also provides easy access toour various products.
INCOME STATEMENT
Page|20
In thousands of Nigerian Naira 30-Sep-18 30-Sep-17
Registrars fee income 941,348 659,860Net investment income 1,640,901 1,611,161Gross earnings 2,582,249 2,271,021Other income 79,690 35,433Impairment loss on financial assets (74,042) (100,000)Personnel expenses (456,556) (292,984)Other operating expenses (456,556) (424,667)Depreciation and amortization (55,390) (36,079)Finance charges - -
Profit before tax 1,619,395 1,452,724
Income tax expense (273,737) (144,100)
Profit after tax 1,345,658 1,308,624
Other Comprehensive Income, net of income tax
Items that will not be reclassified subsequently to profit or loss: - -
Items that may be reclassified subsequently to profit or loss:
Fair value gain on quoted equity (52,434) 112,054
Fair value gain/(loss) on unquoted equity - -
Total comprehensive income 1,293,224 1,420,678
Basic earnings per share (kobo) 67 65
STATEMENT OF FINANCIAL POSITION
Page|21
In thousands of Nigerian Naira 30-Sep-18 31-Dec-17
ASSETS
Cash and cash equivalents 5,324,325 9,192,490Financial assets (Available For Sale) 4,388,005 4,440,443Financial assets (held to maturity) 8,303,368 7,554,522Trade and other receivables 210,963 257,107Inventory 16,578 16,578Other assets 243,871 72,070Property, plant and equipment 223,692 223,683Intangible asset 74,498 77,921Goodwill 24,651 98,693TOTAL ASSETS 18,809,951 21,933,507LIABILITIESCustomers' deposits 10,630,912 10,792,264Creditors and accruals 478,379 330,913Taxation 233,841 224,407Deferred tax assets 34,110 34,110Current liabilities 11,377,242 11,381,694Loan - 3,612,328TOTAL LIABILITIES 11,377,242 14,994,022SHAREHOLDER’S EQUITYShare capital 1,000,000 1,000,000Share premium 624,446 624,446Retained earnings 5,432,310 4,886,652Other reserves 375,953 428,387TOTAL EQUITY 7,432,709 6,939,485TOTAL LIABILITIES AND EQUITY 18,809,951 21,933,507
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