Slides
Page 1
RASAN’S EARNINGS CALLFY 202524 February 2025
Page 2
2 DISCLAIMERThis 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 (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.
Page 3
3 AGENDA Opening Remarks01 |Market Dynamics02 | Financial Performance FY 202504 |Way Forward05 | Business Update03 | Q&A06 |
Page 4
OPENING REMARKS
Page 5
5 2025 – ACCELERATING GROWTH, STRENGTHENING THE PLATFORM 2023Foundation2024Growth2025Acceleration Continued Execution of our Strategic Roadmap Revenue (M)256(+57% YoY) 358 (+40% YoY) 653(+82% YoY) Adj. EBITDA Margin25%32%45%
Page 6
6 DELIVERED ON STRATEGY ACROSS EVERY METRIC Strategic partnerships expanded6 new products launched in FY25: Driving acceleration in revenue from “Other Products”•Financial Services in pipeline Operating leverage confirmed: •Gross profit 465M (71% margin) •Adjusted EBITDA 293M (45% margin) •Adjusted Net Profit 269M (41% margin) Record FY'25 results: •Revenue 653M (+82% YoY) •Adj. Net Profit 269M (+184% YoY) Growth across all verticals: •Motor +61% (YoY revenue growth)•Lease +126% (YoY revenue growth) •Health +49% (YoY revenue growth)Market leadership cemented: •8.5B GWP (+30%) Financial Performance & GrowthOperational ExcellenceStrategic Positioning
Page 7
7 EXCEEDED ALL FINANCIAL GUIDANCE METRICS Revenue Growth (YoY) Gross Profit Margin (%) Adj. EBITDA Margin (%) FY 2025 653YoY growth 82% 71.2% 44.9% FY 2024 358 MM40% p.a. 66.5% 31.7% Revised FY 2025 Guidance (Nov’25) 625 – 650 MMc.75% - 82% p.a. 68.0% - 70.0% 38.0 – 41.0% ✓ ✓ ✓ FY 2025 Guidance (Aug’25) 590 – 625 MMc.65% - 75% p.a. 68.0% - 70.0% 32.0 – 35.0%
Page 8
8 MOMENTUM ACROSS ALL DIMENSIONS Strategic Roadmap Entering FY 2026 with:FY 2025 Executed✓ Platform strengthening achieved✓ Partnerships deepened✓ New products developed ✓ Profitability scaled FY 2026 & BeyondSustained profitable growthPlatform expansion across Insurtech and Fintech Strategic optionalitySelective M&A opportunities •Strong momentum across all metrics•Clear strategic optionality for growth•Improved resilience across market cycles
Page 9
MARKET DYNAMICS
Page 10
10 KSA INSURANCE MARKET CONTINUES A HEALTHY GROWTHKSA Insurance Market Gross Written Premium (BN ) Insurance product (YoY growth)Main growth drivers in 2025 Awareness, Access (bancassurance drive, digital)Demand for improved protection, New lines, Regulatory enforcementVolumes (enforcement, organic car park growth), Motor Insurance comprehensive increased adoption, price realignment Demand for better protection, Development towards closing of the underinsurance gap. 81214 42 2024 8(9%)14(16%)16(18%) 49(57%) 2025* Life +4% p.a.Other GI +10% p.a.Motor +15% p.a. Health +16% p.a. 76 87+14% Source: Insurance Authority Yearly and Quarterly report, IC Financials - *Estimate for 2025 based on 9M performance
Page 11
11 National Insurance Strategy RASAN’S EXISTING VISION IS FULLY ALIGNED WITH THE NEW NATIONAL INSURANCE STRATEGYMARKET INFRASTRUCTURE & CAPACITY•Expand local reinsurance capacity and support entry into global markets•Strengthen capital availability for reinsurance business and develop national talent to support underwriting expansion•Double risk-based capital and increase retention rates in property and casualty insurance•Improve the business environment, foster innovation, and strengthen the rights of all contracting parties ENABLERS •Modernize and unify digital infrastructure, accelerate innovation, and promote adoption of advanced technologies•Build centralized data and AI capabilities for analytics, data quality, & secure sharing•Develop local insurance talent through workforce programs, training, and academic partnerships Providing access to new insurance products and innovating on the distribution of existing onesIncrease market capacity and retention by always fostering a healthy ecosystemTechnology first company, always looking for new solutions to grow & innovate INSURANCE BUSINESS LINES EXPANSION•Aim to double insurance penetration, to 3.6% of non-oil GDP•Expand health insurance coverage to 23M beneficiaries, beyond mandatory employer schemes•Modernize motor insurance through data-driven pricing, telematics, and improved claims management•Grow P&C insurance for individuals and corporates, increasing retention and risk-bearing capacity•Introduce Protection & Savings insurance products, support financial inclusion, and enable workplace savings schemes•Establish the first dedicated insurance pool to cover uninsured national risks and increase private sector participation
Page 12
BUSINESS UPDATE
Page 13
13 DELIVERED WITH DISCIPLINE AROUND THE STRATEGIC PRIORITIESSTRATEGY PILLARS ProtectEnhanceGrowInnovateDiversify KEY OBJECTIVES 82% yoy revenue growth, with profitability expansionUnmatched digital innovator in the industryUpgrade of the digital properties and of the multi-channel experience+400 FTEs across all regions+8 years of average experience for new hires Profitable and efficient financial growthAt the edge of innovationOutstanding customer experienceTop people |+68% in comprehensive motor GWP|Introduced surplus redistribution, supporting people and the regulator|Boost of the ecosystem, +2x growth in Customer Lifetime Value in Motor|Consolidated leasing offer |17 Insurance companies live in Health SME |Boosted sales of higher classes (60% YoY growth)|Enhanced declarative and non-declarative solutions|Expanded quotation availability with new classes and networks |Launched 6 products:§Protection & Savings§Home§Premium residency§DH – Contract §Marine§VAS|Other 7 products already piloted and ready to launch, pending IA compliance review |Launched Hero solutions|Reinforced leasing analytics for Banks and NBFIs|Launched claim management and tracking solution |Obtained initial approval for digital financial broker|Continue exploration of M&A opportunities Note: Analysis include 2024 and 2025 achievements
Page 14
14 INCREASED MOMENTUM ACROSS THE BUSINESS LINES Motor Retail +61%YoY Rev. growth §+5p.p. renewal rate§+68% Comprehensive GWP§+25% TPL GWP Motor Leasing +126%YoY Rev. Growth §+26% GWP growth Health +49%YoY Rev. Growth §+12p.p. renewal rate§+39% Total GWP§+60% YoY growth in GWP for higher classes Other Products +288%YoY Rev. Growth §Launched 6 new products§Introduced Value Added Services Enhanced customer experienceContinued value chain extensionIntroduction of surplusImproved acquisition strategy Revamped full customer experienceNew end-user mobile APPCore banking system integrationClaim FNOL and tracking Improved quotation availabilityExpanded product inventoryModified payment flowsEnhance policy admin automation Provide access360 view Value chain expansionCross-selling 82% cumulative revenue growth YoY
Page 15
15 Motor Health Other General Life Third Party Liability (TPL)Comprehensive Higher classes – non-declarative Health individualComing Soon Domestic Helper - Health Coming soon Higher classes – declarative CONTINUE EXPANDING OUR PORTFOLIO TOWARDS A 360 VIEW Retail SME Corporate LiveComing soon Shared across Coming SoonProtection & Savings TravelHome Medical MalpracticeComing Soon Analytics Claim FNOL & trackingLoyaltyVASSaaS Marine Coming SoonComing Soon Domestic Helper – Contract Lower classes Coming Soon Coming soon
Page 16
16 UPGRADED THE CUSTOMER EXPERIENCE Unified landing page
Page 17
17 STARTING A NEW JOURNEY IN FINANCIAL SERVICES Regulatory ApprovalSet-up Launch Received initial approval from SAMA after fulfilling regulatory prerequisites Launch an educational platform to collect feedback and interest for future product developments Rasan will launch its first financial services products in KSA … End 2026Coming soon
Page 18
18 Total FTEs Saudization Talent GROWING A ROCKSTAR TEAM 319 FTEs359 FTEs414 FTEs202320242025 +15%We grew out team efficiently (15% YoY growth) Saudization 93% Maintained high level of Saudization in regulated entities Focus on retaining and hiring talent with experience in Fintech & Insurtech8Average year of experience in new roles for 2025
Page 19
FINANCIAL PERFORMANCE
Page 20
20 FY 2025: FINANCIAL HIGHLIGHTSGWP~8.5 B+30% Y-o-Y Revenue653 M82% Y-o-Y Gross Margin71%+5pp. Y-o-Y Adj. Net Profit269 M+184% Y-o-Y Volumes +94% Health +21% Motor+21% Treza ORGANIC GROWTH AND ENHANCING PROFITABILITY Operating Cashflow 333 M+102% Y-o-Y Note: GWP= Gross Written Premiums
Page 21
21 M FY 2024FY 2025YoY VarRevenue 358 65382%Gross Profit238 465 95%Gross Profit Margin 66.5% 71.2% 4.7p.p.Opex 139 21353%Adj. EBITDA114 293158%Adj. EBITDA Margin31.7% 44.9% 13.2p.p.Adj. EBITDA Margin (Excluding ECL impact)1 34.1%43.6%9.4p.p.Net Profit 95 247161%EPS 1.29 3.26153% FY 2025 SUMMARY P&L: RECORD PERFORMANCE ACROSS THE BOARD (1) Excluding impact of the increase in ECL provision in 2024 of SAR 8.8MM and the subsequent release of ECL provision in 2025 of SAR 8.8MM
Page 22
22 Source: Company Information SOLID GROWTH AND CONSISTENT PRODUCT DIVERSIFICATIONRevenue MM Revenue by ProductRevenue contribution (%) üStrong revenue growth across both quarterly and full-year|Q4 revenue increased by 81% YoY , reaching 214mn|FY revenue grew by 82% YoY to 653mnüGrowth supported by continued product diversification:|Motor Retail remains the largest contributor, while its share declined structurally, reflecting diversificationüProgressive diversification of revenue mix, with Motor Retail declining from 95% FY20 to 49% FY25üMotor Leasing scaled materially, reaching 37% of revenues in 2025üOther products contribution increased to 3% by FY25, reflecting continued scaling of newer offerings 118214Q4 2025Q4 2024 +81% 358653 FY 2025FY 2024 +82% 95%74%62%63%55%49% 16%15%14%11%20%20%21%30%37%2% 2020 6% 20212022 1% 2023 1% 2024 3% 2025 2% Motor RetailHealth SMEOther productsMotor Leasing Other products consolidates Awal Mazad, Warshati, R Solution, MMP, Travel and Domestic Helper
Page 23
23 ATTRACTIVE GROSS PROFIT AS A RESULT OF SCALE AND AN EFFICIENT COST BASEGross Profit and Margin MM, % üGross profit increased substantially across both quarterly and full-year periods |Q4 gross profit grew by 64% YoY, reaching 153mn, supported by continued scale and cost discipline|FY gross profit increased by 95% YoY to 465mn, reflecting strong operating leverage across the portfolio while improving margin to reach 71% YoYüThe combination of revenue growth and controlled Opex supported both absolute gross profit expansion and margin improvement on a full-year basis 71%66%79 %72% 93 153 Q4 2025Q4 2024 +64% 238 465 FY 2025FY 2024 +95%
Page 24
24 RESILIENT AND GROWING ADJ. EBITDAüAdjusted EBITDA delivered strong growth across both quarterly and full-year|FY Adjusted EBITDA increased by 158% YoY to 293mn, with margin expanding from 32% to 45%|Q4 Adjusted EBITDA grew 131% YoY to 106mn, with margins improving to reach 49%üThe diversification of the product portfolio continued to support more resilient earnings growthüAdjusted EBITDA growth reflects strong revenue momentum, improved unit economics, and increasing scale across core verticalsüHigher marketing and operating expenses were incurred in line with the Group’s strategy to expand and launch new products 114 293196 G&A 22 Adj. EBITDA FY 24 Adj. EBITDA FY 25 -9 Marketing Expenses -61 Gross Margin Effect 31 Revenue Effect ESOP Costs Adj. EBITDA Bridge MM Adj. EBITDA evolution and Margin MM, % 45%32%49%39% 46106Q4 2025Q4 2024 +131% 114293 FY 2025FY 2024 +158% (1) Excluding impact of the increase in ECL provision in 2024 of SAR 8.8MM and the subsequent release of ECL provision in 2025 of SAR 8.8MM 45%1 44%134%1
Page 25
25 HIGH CONVERSION RATE FROM ADJ. EBITDA TO ADJ. NET PROFITAdj. Net Profit and Margin1 MM, % Adj. Net Profit Bridge MM üAdj. Net Profit growth outpaced revenue growth, reflecting strong operating leverage, margin expansion indicates efficient conversion of operating performance into bottom-lineüFY Adj. Net Profit increased by 184% YoY to 269mn, with margin improving from 26% to 41%üHigh conversion rate of Adj. EBITDA to Adj. 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 (1) Net profit margin = Net profit / Revenue 293 269 Adj. EBITDA FY 25 -1 Finance Cost -20 D&A -22 Total Zakat & Tax 19 Other IncomeAdj. Net Profit 25 41%26%46%34% 40 97Q4 2024Q4 2025 +146% 95269 FY 2024FY 2025 +184%
Page 26
WAY FORWARD
Page 27
27 FOCUS FOR 2026STRATEGY PILLARS ExpandTransformGrowAdvantageDiversify|Reinforce the motor proposition, continuing to deliver more value for people|Continue increasing the CLV|Expand services across the value chain |Pioneer new standards in SME insurance distribution|Reinforce leadership in health insurance aggregation |Scale emerging retail product lines including Domestic Helpers Contract and Protection and Savings |Extend the B2B insurance portfolio|Grow value-added services |Position as core infrastructure partner for banks and financial institutions|Expand post-sales and claims services capabilities|Leverage data and insights to drive partner value |Extend distribution capabilities into adjacent financial services|Become the core enabler for banks and NBFI|Develop technology foundation for next-generation distribution|Explore M&A opportunities KEY OBJECTIVESProfitableand efficient financial growthAt the edge of innovation: Support the regulator in expanding the marketOutstanding customer experienceTop people
Page 28
28 GUIDANCE FOR FY2026 FY 2026 GuidanceFY 2025A Revenue and Revenue Growth (YoY) 900 – 975MM(38 – 49% YoY Growth)Revenue: 653MMGrowth: +82% p.a. Gross Profit Margin (%) 70.0 – 72.0%Gross profit: 464.9MM Gross margin: 71.2% Adj. EBITDA Margin (%) 41.0 – 46.0%Adj. EBITDA: 293.0MM Adj. EBITDA margin: 44.9%
Page 29
ﹰاﺮﻜﺷ Thank You