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RASAN’S EARNINGS CALL FY 2024 March 3rd, 2025
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2 DISCLAIMER This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Rasan LLC (the “Company”) and its subsidiaries (together, the “Group”) and those of their respective officers, directors and employees concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and the businesses operated by the Group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this presentation and, unless otherwise required by applicable law, the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this presentation should be construed as a profit forecast. The Company and its directors accept no liability to third parties. This presentation contains brands that are trademarks and are registered and/or otherwise protected in accordance with applicable law.
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3 AGENDA CEO Opening remarks01 | Market Dynamics02 | Business Update03 | Financial performance FY 202404 | Q&A05 |
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OPENING REMARKS
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5 FY 2024: STRONG BUSINESS PERFORMANCE Strong Revenue growth Ebitda beyond guidance +40% Y-o-Y SAR 358 M +78% Y-o-Y SAR 114 M - 32% of revenue Expanded the portfolio and prepared new lines for growth • Health (SME, Corporate) • Financial Services distribution • VAS and Ecosystem • Medical Malpractice, Travel, Domestic Helper – Contract, Health, Life, Marine
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6 FY 2024: FINANCIAL HIGHLIGHTS GWP SAR 6.5 B Stable Y-o-Y Revenue SAR 358 M 40% Y-o-Y Gross Margin 66% +8.6pp. Y-o-Y Net Profit SAR 95 M +106% Y-o-Y Volumes +69% Health +19% Motor +35% Treza ORGANIC GROWTH AND ENHANCING PROFITABILITY Operating Cashflow SAR 165 M SAR 72M FY-23 Note: GWP= Gross Written Premiums
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MARKET DYNAMICS
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8 INSURANCE MARKET IN KSA CONTINUES HEALTHY GROWTH KSA Insurance Market Gross Written Premium (B SAR) 2024* Life +64% 2023 Other GI +23% Motor +19% 2021 Health +20% 2022 42 53 65 75-80 +23% Insurance product CAGR (’21-’24) Source: Insurance Authority Yearly and Quarterly report - *Estimate for 2024
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9 MARKET GROWTH SUPPORTED BY MULTIPLE TAILWINDS KSA Market Capital Market Secular change in demand Tech and data development Tailwinds Regulators Fostering a healthy market development Health Insurance Motor Insurance General Insurance Life Insurance Financial services 13M lives with private health insurance (+10% y-o-y) 85% of companies compliant with health insurance regulation Compulsory insurance for domestic helpers (4+) CCHI integrated within Insurance Authority Effective enforcement of compulsory motor insurance Prices dropped with 20% yoy, started recovery in Q4 Expanding competition, with two new insurers licensed for the product General Insurance (GI) continued to grow in 2024 with +30% yoy New mandatory general insurance: (Domestic helper contract, Public places, Inherent defects) Important developments to support the growing business demand 2X+ growth in retail market, due to surge of demand for Pension and Savings schemes P&S products authorized for online distribution, with Tameeni at the forefront of innovation Rapid development of the regulatory framework to foster innovation with the highest consumer protection (BNPL, Payment Initiation Services (PIS) for Open Banking,…) Important growth of credit facilities for SMEs (22.6% Y oY) Source: Public available information, Insurance Authority announcements and reports
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BUSINESS UPDATE
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11 ACHIEVED CONSISTENT PROGRESS ACROSS THE STRATEGY PILLARS STRATEGY PILLARS Protect Enhance Grow Innovate Diversify KEY OBJECTIVES Accelerating profitable growth across products lines Exploring innovative solutions across products (e.g. telematics in motor) Successfully roll-out new Tameeni app and improved after sales services (e.g. reward program) Continued growing the team with extensive Insurtech and Fintech experience, drastically reduced the turnover Profitable and efficient financial growth At the edge of innovation Outstanding customer experience Top people | Improved conversion and renewal rates | Implemented effective cross-selling strategies | Finalized development of Motor SME solution | Modified the Leasing engagement model | Boosted sales in SMEs premium classes | Completed 15 new integrations with ICs | Piloting platform aimed specifically at corporate clients | Launched Medical Malpractice, T ravel, Domestic Helper – Contract and Health | Obtained NOC for Marine and Life insurance | Improved conversion rates for newly launched products | Developed end-to-end embedded insurance enabler | Rolled out new journey for claim submissions and monitoring | Deployed analytics tools for partners involved in motor leasing insurance | Finalizing development of financial product in line with expectations | Initiated the M&A activities to accelerate coherent business lines
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12 STRENGTHENED THE POSITION IN MOTOR ▪ Collaborated with Insurance Partners to improve the value chain processes ▪ Improved the Convenience and Customer Experience ▪ Enhanced renewal journey ▪ Improved renewal targeting ▪ Introduced loyalty rewards ▪ Introduced multiple, personalized up- selling features ▪ Improved targeting and recommendation engine ▪ Launched add-ons ▪ Introduced value- added services Conversion rate Renewal rate Comprehensive volumes Cross-selling volumes ▪ Obtained the license to sell motor leasing insurance through Tameeni ▪ Almost all the market onboarded with the new model New engagement model +15p.p. ~40% Increase 2X Motor Retail Motor Leasing
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13 ENHANCED HEALTH INSURANCE STRENGTHEN PARTNERSHIPS ▪ Expanded the Insurance panel for across all segments and classes ▪ Expanded the API integrations and value provided to the Insurers IMPROVED RENEWALS ▪ +2X in renewals ▪ Redesigned renewal journey ▪ Enhanced convenience and communication model INCREASED AUTOMATION ▪ Piloted employee data automation at pre- quotation stage ▪ Implemented re- targeting automation LAUNCHED NEW FEATURES ▪ Introduced the Declarative journey for Higher Classes ▪ Introduced price auto- loading ▪ Implemented up-selling functionalities
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14 BUILDING A SOPHISTICATED INSURANCE ECOSYSTEM Distribution Automation Product bundling Cross-selling Up-selling After Sales Targeting One-stop shop for all insurance needs Increased efficiency and speed Combine product offering to make them better suited for specific segments Offer convenient, coherent products during the purchase flow Provide higher value for customers during the purchase flow Increased support at the time of need (claims and after-sales) Enhanced targeting and recommendation engine Sophisticated Insurance Ecosystem Play Deliver value and convenience to our customers
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15 PREPARING MORE ACTIVITY IN THE FINANCIAL SERVICES DISTRIBUTION Personal financing In-House Development in progress Developing distribution channels for financial services to private customers Real estate financing M&A in progress Exploring M&A opportunities to distribute financial services related to Real Estate SME Financing In-House Development in progress Exploring opportunities to offer finalized business financing for various use cases Distribution focus for financial services
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16 CONTINUED BRAND EXPANSION Outstanding reach in KSA SPONSORSHIPS DIGIT AL TV Continuously innovating to connect with customers through impactful digital advertising, strategic TV placements, and high-value sponsorships, ensuring maximum reach and engagement
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17 REINFORCED THE CUSTOMER EXPERIENCE ▪ Re-designed all content and in-app purchase flow ▪ Unified design for all products ▪ More user-friendly customer journey ▪ Introduced new claim reporting feature (i.e. FNOL) ▪ Improved functionalities New Tameeni App New Tameeni Frontend New Treza Claim Reporting Bank
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18 Total FTEs Saudization Talent GROWING A ROCKSTAR TEAM 319 FTEs 359 FTEs 20242023 +13% We grew out team efficiently (13% YoY growth) Saudization 93% Maintained high level of Saudization in regulated entities Focus on retaining and hiring talent with experience in Fintech & Insurtech15 Average Years of Relevant Experience per new hire
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FINANCIAL PERFORMANCE
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20 FY 2023 FY 2024 YoY Var Revenue 256 358 40.0% Gross Profit 148 238 60.5% Gross Profit Margin 57.9% 66.5% 8.6p.p. Opex 98 139 42.3% EBITDA 64 114 78.5% EBITDA Margin 24.8% 31.7% 7.3p.p. Net Profit 46 95 106.1% EPS 0.65 1.29 98.5% FY 2024 SUMMARY P&L: STRONG PERFORMANCE ACROSS THE BOARD
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21 Source: Company Information SOLID GROWTH AND CONSISTENT PRODUCT DIVERSIFICATION Revenue SAR MM Revenue by Product Revenue contribution (%) ✓ Significant growth in Q4 24 compared to Q4 23 ✓ 2024 Revenue increased by 40% (SAR 102m) compared to FY23, primarily attributed to: | Motors Revenue: + SAR 37M | Treza Revenue: + SAR 54M ✓ Q4 24 Revenue increased 69% mainly due to: | Motors Revenue + SAR 10M | Treza Revenue + SAR 30M ✓ Optimized business models improving revenue generation ✓ MMP, Travel and Domestic Helper integrated to Rasan portfolio 70 118 Q4 2024Q4 2023 +69% 256 358 FY 2024FY 2023 +40% 95% 74% 62% 63% 55% 16% 15% 14% 20% 20% 21% 30% 2% 2020 6% 2021 1% 2% 2023 1% 20242022 Motor Retail Health SME Other productsMotor Leasing Other products consolidates Awal Mazad, Warshati, R Solution, MMP, Travel and Domestic Helper
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22 SOLID AND ATTRACTIVE GROSS PROFIT AS A RESULT OF AN EFFICIENT COST BASE Gross Profit and Margin SAR MM, % ✓ Q4 2024 Gross Profit increased by 139% compared to Q4 2023 | Margin reached 79% due to improved absorption of cost of sales, driven by scalability ✓ FY 24 Gross Profit improved due to Treza new business model and significant volume increase | Business model change in Treza improving gross profit 67%58%56% 79% 39 93 Q4 2024Q4 2023 +139% 148 238 FY 2024FY 2023 +61%
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23 GROSS MARGIN CONSTANTLY IMPROVING Q-O-Q AND Y-O-Y • Treza model shift delivering higher profitability and scalability • Seasonal impact in Motors Q3 vs Q4 slowing naturally the revenue • Motors product mix and scalability delivering sustainable growth Y-o-Y • Cross selling delivering strong performance Gross margin bridge Q -o-Q Gross margin bridge Y -o-Y SAR MM SAR MM 2 Health SME GP Q3 24 Cross selling -2 Motor Mix1 9 Direct personnel & other direct costs 67 93 18 GP Q4 24 148 238 60 32 Health SME GP FY 23 10 Cross Selling Motor Mix1Direct personnel & other direct costs -12 GP FY 24 1. Motor Mix: Internal changes within the Motor Retail and Motor Leasing (Treza) product mix
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24 RESILIENT AND GROWING EBITDA ✓ Growing EBITDA in Q4 23 and Q4 24 driven by | Increase in Revenue (SAR 48M) resulting in healthy absorption of fixed operating costs | Economies of scale | Diversified product base ✓ G&A ratio reducing due to disciplined cost control ✓ Investment in the Group’s T ech stack and launch of new products in line with growth strategy ✓ Increased marketing expenses related to product development, launches and commercial fees Source: Company Information 64 114 59 33 G&AEBITDA FY 23 -13 Marketing Expenses -29 Gross Margin EffectRevenue Effect EBITDA FY 24 EBITDA Bridge SAR MM EBITDA evolution and Margin SAR MM, % 32%25%39%22% 15 46 Q4 2024Q4 2023 +198% 64 114 FY 2024FY 2023 +78%
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25 HIGH CONVERSION RATE FROM EBITDA TO NET PROFIT Net Profit and Margin1 SAR MM, % Net Profit Bridge SAR MM ✓ FY24 Net Profit increased at a higher rate than Revenue (+106% vs 40% revenue increase rate) ✓ High conversion rate of EBITDA to Net Profit due to: | Controlled level of D&A expense driven by the level of intangible assets and PP&E | Conservative balance sheet with no debt | Other operating income generated from term deposits ✓ FY24 Net Profit margin strongly improved YoY exceeding investors guidance Source: Company Information Notes: 1. Net profit margin = Net profit / Revenue 114 95 12 Total Zakat & TaxEBITDA FY 24 Net Profit 24 -16 D&A -15 Finance Cost -1 Other Income 26%18%34%14% 10 40 Q4 2024Q4 2023 +3X 46 95 FY 2024FY 2023 +106%
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ﺷﻜﺮﺍﹰ Thank You