First Quarter 2023
Results
11 M ay 2023
2023
FIRST QUARTER
Q1 2023 RESULTS PRESS RELEASE 1Al Ansari Financial Services Reports a 7.2% Net Profit Increase in
Q1 2023 to AED 133 million on Strong Demand Across All Products
Al Ansari Financial Services announces the financial results for Q1 2023
demonstrating a robust performance
Key Highlights in Q1 2023:
1. Solid growth in Operating Income
9.1%
➢ Operating Income grew 9.1% YoY to AED 287
Operating Income growth
million driven by 8.6% YoY increase in the total
number of transactions across all offerings.
8.6%
➢ EBITDA increased by 7.9% YoY to AED 151
million with a steady EBITDA Margin near 53% on Increase in no. of Transactions
the back of strong top line growth, high margin
contribution from increased digital transactions –
and Group’s CAPEX-light model. 7.9%
EBITDA
2. Strong increase in Net Profit
➢ Net Profit came in at AED 133 million, increasing
7.2%
7.2% YoY on the back of healthy top-line growth,
strong increase in exchange income from the Bank
Net Profit
Notes and pre-paid cards products as well as the
Group’s significant operating leverage and
increase in contribution from digital channels.
➢ This marks the Group’s fourth consecutive Net
Profit increase in the Q1 period.
3. Surge in digital channels and corporate
business 32%
Increase in Digital
➢ Transactions conducted through digital channels
Transactions
across all products continue to boom, with a 32%
YoY increase in Q1 2023.
➢ Corporate Business transactions witnessed 47.6%
47.6% YOY increase in value reaching AED 27.64
billion. Increase in value of
Corporate Business
4.Enhanced Performance in Bank Notes
➢ Bank Notes business records strong performance
36.8%
in Q1 2023 on the back of tourism boom with
Operating Income up by 36.8% YoY. Growth in Bank Notes
Operating Income
Note: All financial information is based on Group’s continued operations
Q1 2023 RESULTS PRESS RELEASE 2Dubai, UAE - 11 May 2023 - Al Ansari Financial Services PJSC (DFM: ALANSARI), (the
“Group”), one of the leading integrated financial services groups in the UAE and the parent of
Al Ansari Exchange, today announced its financial results for the first quarter (“Q1”) of 2023,
ended 31 March 2023. This marks the first financial results since the Group listed 10% of its
issued share capital through an initial public offering on the Dubai Financial Market (“DFM”) on
6 April 2023.
Q1 2023 Financial Highlights
In AED thousands Q1 2023 Q1 2022 % change
(unless otherwise stated)
Operating Income 287,022 263,116 9.1
EBITDA 151,382 140,334 7.9
EBITDA margin (%) 52.7% 53.3% (0.6) pp
Net Profit 133,009 124,113 7.2
Earnings per Share 0.018 0.017 7.2
Free Cash Flow 140,715 136,680 3.0
Q1 2023 Operational Highlights
Q1 2023 Q1 2022 % change
No. of physical branches in UAE 232 217 7
(No. of net new
branches 15)
Total No. of transactions (‘000) 11,771 10,835 8.6
Corporate business - value of 27,637 18,729 47.6
transactions by (AED millions)
Digital Channels - No. of transactions 871 658 32.2
(‘000)
Q1 2023 RESULTS PRESS RELEASE 3Q1 2023 Financial and Operational Performance Commentary
• Operating Income increased 9.1% YoY to AED 287 million driven by an 8.6% YoY
increase in the total number of transactions.
• The increase in the number of transactions was driven by exceptional demand from the
Corporate business segment underpinned by buoyant economic conditions. It is also
owed to a strong increase in the Bank Notes business on the back of the UAE’s tourism
boom and increase in outbound tourism.
• EBITDA increased by 7.9% YoY to AED 151 million with a steady EBITDA Margin near
53% on the back of strong top line growth, high margin contribution from increased digital
transactions and Group’s CAPEX-light model.
• Net Profit came in at AED 133 million, increasing 7.2% YoY on the back of healthy top-
line growth, strong increase in exchange income from the Bank Notes and Pre-Paid Cards
products as well as the Group’s significant operating leverage and increase in transactions
conducted through digital channels.
• Despite an increasing operating cost environment, the Group managed to maintain a
relatively strong control over major costs, such as rent, thanks to its market dominance.
• Free cash flow (FCF) increased by 3% YoY to AED 141 million, demonstrating the Group’s
healthy cash flow position. The Group’s ability to increase its cash generation is driven by
EBITDA growth with c.93% cash conversion rate.
Performance of other products
• The WPS business saw a strong increase in Operating Income, up 23.4% in Q1 2023
versus Q1 2022. This is predominantly driven by growth in the number of newly acquired
corporate customers.
• While still in its early stages, the end-to-end cash management business, through
CashTrans, is gaining remarkable momentum, with the number of customers growing
from only 3 in Q1 2022 to 25 in Q1 2023. The Group expects this number to continue
growing as it ramps up operating and sales efforts within this product line.
Dividend
• As announced during the IPO, and outlined in the Prospectus, the Group intends to
distribute a minimum of AED 600 million for FY 2023 to be paid out semi-annually with
the first half expected to be distributed in October 2023 and the second payment to be
disbursed in April 2024. The dividend is subject Board of Director’s recommendation and
shareholder approval.
Q1 2023 RESULTS PRESS RELEASE 4rl
Commenting on the results Rashed Ali Al Ansari, Group CEO of
I
Al Ansari Financial Services, said: “2023 is off to a fantastic start,
building on the previous year’s strong financial and business
L
performance. Our integrated offering, multi-channel approach,
diverse and growing customer base and capex-light business model
have supported our profitable growth over the last three months. The
Group’s growth is underpinned by a robust UAE economy, specifically the increase in
number of inbound tourists, positive consumer confidence and increase in business
activities.
Our latest financial performance demonstrates why we are a compelling investment
opportunity, supports our promise to distribute dividends and validates investors’ strong
demand in our IPO.
Looking ahead, we will continue to execute the well-funded and executable growth
strategy to unlock shareholder value over the mid to long term. We expect to further
strengthen our market leadership position in our home market within the remittance and
banknotes market by increasing our physical branches. We also believe that the digital
channels will continue to perform exceptionally, as more and more customers choose
the convenience and ease of that channel, which will support margin expansion. Staying
in our home market, we believe the outstanding growth in demand we saw in our
corporate business from new and existing clients will continue to gather pace thanks to
our know-how, offerings, market reputation and our talent. We also expect to expand
our footprint in other high-potential GCC markets, supporting our revenue
diversification.”
Mohammad Bitar, Deputy Group CEO of Al Ansari Financial
Service, said: “We are encouraged by the strong growth across the
business during the first three months of 2023, with the star
performer for the period being the Bank Notes and Wage Protection
System (WPS) business.
The Bank Notes business is buoyed by the significant increase in number
of tourists coming to the UAE, with Dubai alone receiving 4.67 million international
visitors in the first quarter of 2023, according to official data. It was also supported by
the strong increase in the wholesale bank notes business. The pre-paid cards product
also had an outstanding period, with the number of transactions jumping by 40%
compared to Q1 2022. The WPS business growth was driven predominately by increase
in both the number of corporate customers and the total number of salary disbursals.
More generally, we are very pleased with the remarkable growth in the B2B business.
This is owed to our strategic initiatives to expand our market share in this very attractive
customer segment. We anticipate acquiring more corporate customers and increasing
Q1 2023 RESULTS PRESS RELEASE 5cross-selling to existing ones, in line with our growth strategy. Additionally, our
investment in digital channels is paying off, and we are continuing to see a significant
uptick in the number of transactions executed through those channels across all our
offerings. We anticipate more and more of our customers to opt for a hybrid approach,
using both our physical and digital channels for their money transfer and bill payment
needs.”
Corporate Highlights
Update on Al Ansari Exchange Kuwait Acquisition
As announced in the IPO prospectus, the Group is currently in the process of fully acquiring Al
Ansari Exchange Kuwait, which in turn has completed the acquisition of Oman Exchange - Kuwait.
According to management, upon completion, the acquisition will give the Group a strong presence
in the sixth-largest outward personal remittances market globally in 2021.
Other Major Updates
The Group saw a 21% increase in the number of employees in Q1 2023 compared to Q1 2022 and
a 5% increase compared to 31 December 2022. The consistent growth in the number of employees
is in line with the Group’s expansion strategy.
Emiratisation has experienced remarkable growth in Q1 2023, compared to the same period in 2022
with a significant increase of 95%, in the number of Emirati nationals, in line with the Group's support
of the Government's Emiratisation initiative. This growth can be attributed to various measures taken
by the Group, including providing training and development programmes, and actively seeking out
and recruiting Emirati talent at career events and in collaboration with top universities in the region.
Q1 2023 RESULTS PRESS RELEASE 6JJ
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QQ11 22002233 RREESSUULLTTSS PPRREESSSS RREELLEEAASSEE 77Appendix 1 Description of Al Ansari Financial Services’ Product Offerings
Remittances The Group provides remittances at its retail branches and via its
digital channels, offering domestic and global money transfers
through its proprietary money remittance platforms, Cash
Express, Global Fund Transfer and Worldwide Cash Express, as
well as through its money transfer operator partners such as
Western Union and its transfer payment network where transfers
to bank accounts are executed via money transfer services such
as SWIFT or Ripple. The Group offers remittances for its retail
and corporate customers.
Bank Notes The Group's retail and wholesale foreign currency exchange
services primarily comprise the sale and purchase of foreign
currency directly to and from retail and wholesale customers. The
Group offers its bank notes services in over 70 currencies across
all its branches. The Group also offers pre-paid cards as part of
its retail foreign currency exchange services. Both the Group's
Travelcard and FlexiblePay products are reloadable pre-paid
cards that can store either single or multiple currencies on the
card, and which also allow the conversion of such currencies to
other currencies by the user. The Group's pre-paid cards, where
available, can be purchased or reloaded in the Group's branches,
o nline or through the mobile app.
Wage Protection System The Group offers corporate payroll solutions, executing wage
(“WPS”) payments on behalf of companies operating in the United Arab
Emirates in compliance with the directives of the UAE's Ministry
of Human Resources & Emiratisation, under the Wage Protection
S ystem initiative.
Other Services The Group's other offerings include, among others, bill payment
a nd end-to-end cash management solutions.
Q1 2023 RESULTS PRESS RELEASE 8Appendix 2: Glossary of Terms
Term Definition
Corporate business or Products and services offered to Corporate Customers, including WPS, Bill
B2B business Collection, End to End cash management, Remittances, Bank Notes.
Digital business All transactions conducted through digital channels across all products,
including Remittances, Travel Card, Bill Collection and WPS.
Digital outward personal Outward personal remittances conducted through digital channels.
remittances
Operating Income Operating Income is defined as “Income” excluding “Other income” and
“Interest income – net”. In other words, it is income generated from the
Group’s operations.
EBITDA EBITDA is defined as “Profit for the year” excluding “Depreciation and
Amortization”, “Finance cost on lease liabilities” and “Interest income – net”.
EBITDA Margin EBITDA margin is calculated as EBITDA divided by operating income.
Number of transactions The number of transactions conducted by the Group per product
(Remittances, Bank Notes, WPS) or by channel (in person, digital) or by
customer segment (Retail, Corporate)
Value of transactions The aggregate nominal value of executed transactions, which is calculated
by: number of transactions x AED per transaction.
Q1 2023 RESULTS PRESS RELEASE 9

Sentiment: positive