INVESTMENTS AG Sarah Djari, Investment Director, Equity, Financial Institutions, Zurich, 26th April, 2018

Transcription

1 INVESTMENTS AG Sarah Djari, Investment Director, Equity, Financial Institutions, Zurich, 26 th April, 2018

2 WHAT WE DO Development Investments Investing for inclusive growth Developing countries Inclusive businesses Attractive investments 2/24

3 WHAT WE DO 3/24 Source: UN.org

4 RESPONSABILITY AT A GLANCE Investor base 19% 31% 50% AuM office locations with HQ in Zurich Founded in Offering Wholesale Institutionals DFI/ IFI Invested in* companies supervised responsability Management Company SA is supervised by * is not an investor and does neither provide direct nor indirect financing. The mentioned investments in the specific markets, countries, companies, institutions, instruments, or sectors are exclusively transacted by the investment vehicles managed or advised by ** is authorized by the Swiss Financial Market Supervisory Authority (FINMA). responsability Management Company SA in Luxembourg is authorized as an Alternative Investment Fund Manager (AIFM) by the Commission de Surveillance du Secteur Financier (CSSF) 4/24 Source:, AuM = Assets under Management

5 INVESTMENT UNIVERSE Other Eastern Europe Central Asia Middle East & North Africa Asia-Pacific Latin America Sub- Saharan Africa Investment volume per country more than 3% 1-3 % less than 1% Investment volume per region in % of total 5/24

6 PROVIDING ACCESS Private Debt financing Private Equity investments systematic with strong and on the ground 6/24

7 DEVELOPMENT IMPACT 2017 Basic needs: Clients: Female: 57% 2 Revenue Well being: (+20% yoy) 1 USD 1.2bn (+11% yoy) Taxes paid USD 58m (+18% yoy) Decent work: Staff Female managers 27% 4 Climate stability: 7/24 Green lending Markets and Infrastructure New products launched USD 589m (+54% yoy) 6 Source:, as of YoY = year on year 1 excluding Fawry, specific data unavailable 2 excluding PCH, SLCM, Utkarsh & Fawry, specific data unavailable 3 excluding SLCM & Fawry, specific data unavailable 4 excluding Utkarsh & Fawry, specific data unavailable

8 FINANCIAL INCLUSION IN EMERGING ECONOMIES 8/24

9 THE OPPORTUNITY 100% 80% 60% 40% 20% Economies share of World GDP, % FORECAST Domestic credit to GDP in lower middle income economies 43% vs. 144% in OECD economies* Huge demand: 2.3 billion adults are still unbanked today 0% Developed Developing Markets Emerging Developed Markets GDP growth 5% 1.7% Credit growth 7% 1% Net interest margins are higher in emerging economies compared to developed countries Financial services revolutionized by digital technology and mobile solutions Most EM financial institutions are not (yet) publicly traded FIs serving MSME clients growth >15% - Our investment focus Reduced unemployment and income inequality Enhanced economic growth and expanding businesses 9/24 Source: AT Kearney, World Bank Developmental Indicators, PwC, The World Bank Group, IMF, The Global Findex Database 2014, Measuring financial inclusion around the world, World Bank Policy Research; IIF Center for Financial Inclusion, responsability analysis; EM = Emerging Markets, MSME = Micro, Small and Medium sized enterprises, FIs = Financial Institutions. * As of 2016, source Worldbank

10 THE OPPORTUNITY 10/24

11 THE OPPORTUNITY SME in emerging markets is million underserved of the 2 billion adults without bank account estimated potential up to 11/24 Source: IFC 2011; IFC/McKinsey 2012, responsability analysis, The Global Findex Database 2014, Measuring financial inclusion around the world, World Bank Policy Research; White Clarke Global Leasing Report, Allianz, Micro Insurance Network, IIF Center for Financial Inclusion, GSMA MMU databank, Image: Safaricom

12 THE FINTECH LANDSCAPE Improve each process step of financial service delivery Generate increased efficiency, reduced unit cost and massive scale Increase access through new delivery channels Disrupt specific areas of financial service delivery by replacing traditional financial institutions 12/24 Source: fibrproject

13 CASE STUDY: FAWRY EGYPT 13/24

14 NON-CASH PAYMENTS GROWING FAST 14/24 Source: World Payments Report Capgemini, BNP Paribas.

15 EGYPT Official name Arab Republic of Egypt Capital Cairo Area 1,001,450 km 2 Population 97 million (2017 est.) Source: CIA, The World Factbook GDP USD 1.2 trn (2017 est.) GDP growth rate 4.1% (2017 est.) Access to formal banking products 25% of population Mobile penetration >100% 15/24 Please refer to the disclaimer pages and/or the appendixes for the applicable legal information. The source for all information mentioned herein is unless mentioned otherwise.

16 CASE STUDY: FAWRY The mass population does not have a bank account, or does not use one actively Making payments is a very costly and time consuming hassle The economy is largely cash based, and informality wide spread Businesses have little to no access to financing or other financial services The population is young, agile and carries a mobile, 57% smart phones Wide-spread entrepreneurship The regulator has taken an open and flexible approach towards electronic payments 16/29

17 Authorization CASE STUDY: FAWRY Banks Customers Service Points / Channels Service Providers/ Billers 17/29 Egypt s leading mobile payments provider with 20 million customers and 1.5 million transactions processed daily, and growing by over 30% per year

18 CASE STUDY: FAWRY 18/24

19 CASE STUDY: FAWRY STRATEGY OVERVIEW Fawry Services Value Added Services Loyalty Logistics Offers Merchants Order Finance Pay Goods In Store E commerce Mobile Loyalty Redemption Consumer Finance Integration FAWRY.COM CORPORATE PRESENTATION 2015

20 CASE STUDY: FAWRY 20/24

21 CASE STUDY: FAWRY 21/24

22 PARTICIPATIONS AG INVESTMENT PORTFOLIO * 22/24 *ProCredit Holding has bank subsidiaries in: Albania, Bosnia & Herzegovina, Bulgaria, Colombia, Ecuador, El Salvador, Georgia, Kosovo, Macedonia, Moldova, Nicaragua, Romania, Serbia, Ukraine Chart shows the investment portfolio of responsability Participations AG; through other vehicles investments in Peru, East and Western Africa, Kazakhstan, Kyrgyzstan, Pakistan, and other countries have been made

23 Josefstrasse Zürich Tel Fax All rights reserved.

24 LEGAL DISCLAIMER This information material was produced by ( responsability ) and/or its affiliates with the gre atest of care and to the best of its knowledge and belief. However, responsability provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The source for all information mentioned herein is responsability unless mentioned otherwise. Any data is purely indicative and is not a guarantee for future results. The opinions expressed in this information material are those of responsability at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are unaudited. This information material is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or services an d does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/h er own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This information material may no t be reproduced either in part or in full without the written permission of responsability. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this information material nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies invol ve the additional risk that the foreign currency might lose value against the investor's reference currency. It should be noted that historical returns and financial market s cenarios are no guarantee of future performance. Copyright All rights reserved. 24/24