Transcript Слайд 1 - MIX Market

Abzal Kredit
Microfinance Organization
ABZAL KREDIT
Investors Presentation
June, 2009
АБЗА Л КРЕДИТ
Agenda

Investment Highlights

Sector overview and trends

Who we are?

Financial Highlights

Our partners

Contact details
АБЗА Л КРЕДИТ
Investment Highlights

Favorable business and regulatory environment

Strong potential for growth of the market

Transparent company business and ownership structure

Strong management team

Strong loan portfolio and assets growth

Stable growth of client base
АБЗА Л КРЕДИТ
Summary of sector overview

1,317 MFIs registered as of
December 31, 2008, among
which only 1,088 are active;
MFIs registered and active (3Q 2008)
1400
1317
1200
1086
1000

Microfinance services are
provided by banks
(Microlending program by
EBRD), credit unions, nonbanking finance organizations
and microlending agencies;
745
800
697
600
356 354
400
200
177 159
0
2004
2005
2006
Retail loans to GDP
Registeres MFIs

As of July 1, 2008 total loan
portfolio of active Kazakhstani
MFIs was more than KZT 73
billion (USD 602 million)
representing only 1.05% to
GDP
2007
2008
Active MFIs
14 000,0
1,20
12 726,0
1,05
12 000,0
10 139,5
10 000,0
6 000,0
1,00
0,80
7 453,0
8 000,0
6 949,0
0,60
5 870,0
0,40
4 000,0
2 000,0
Source: “DAMU” EDF, National Bank
Note: as of 30 June 2007 USD/KZT exchange
rate – 120.75
1088
948
0,40
0,20
0,20
0,08
0,12
2004
2005
GDP (KZT bln)
2006
2007
1H 2008
Retail loans / GDP (%)
АБЗА Л КРЕДИТ
Sector overview



Favorable legislative and business
environment for entrance of
international investors;
MFIs personnel structure (2007)
21%
4%
Actively supported by the
Government through “DAMU”
Entrepreneurship Development
Fund and multinational institutions
such as EBRD and ADB.
Strong potential for growth of the
market
1%
74%
Over 50 pers.
21 to 50 pers.
6 to 20 pers.
Up to 5 pers.
Loan portfolio (active MFIs)
450
444,8
400
350

As of 1 July, 2008 total number of
granted loans by active MFI's was
445 thousand only
55,6
50
250
40
200
145,6
150
50
0
70
60
300
108,3
62
100
12,7
0,9
2003
Source: “DAMU” EDF
Note: as of 30 June 2008 USD/KZT exchange rate - 120.75
72,7
80
7,6
4,6
30
321,3
20
15,8
10
0
2004
2005
Number of loans
2006
2007
Amount (KZT bln)
1H 2008
АБЗА Л КРЕДИТ
Microfinance sector trends

Economic developments and demographics for Kazakhstan position the sector
for significant growth;

Low microfinance penetration in the market supports high levels of business
margins

Recent shortage of liquidity in banks facilitates growth of microfinance
organizations;

Active support of the sector by the government through a number of initiatives,
including legislative and regulatory changes, financing programs to support small
business;

Entrance of international investors to financial sector is welcomed!
АБЗА Л КРЕДИТ
Regulatory Environment

Special laws and acts adopted:
- Law “About banks and banking activity”
- Law “About microlending organizations”
- Law “About credit unions”

Organization structure for MFCs is allowed as LLP and public fund.

MFCs are not allowed to collect deposits from population and are limited with max
amount of loan (currently USD 70 thousand).

State owned credit bureau established in 2004 (currently obligatory for banks
only).

New initiatives to support microfinance market are promoted by Kazakhstani
Association of Microfinance Organizations (AMFOK) established in 2004 in
cooperation with Microfinance Center (Poland) and CAMFA.
АБЗА Л КРЕДИТ
Who we are?

Abzal Kredit is a company operating for 6 years established in 2003 as one of the first
MFCs in Kazakhstan

Main activity is to provide collateralized microlending services to legal entities and
individuals for business development and consumer needs

Stuff of 20 people. In August was opened new branch in Almaty.

Currently one of the top 30 MFCs in Kazakhstan with
total assets of KZT 322 million (USD 2.1 million) and
equity of KZT 105 million (USD 698 thousand) as of
30/06/2009.

IFRS reporting standards for the last year audited
by Fin Audit

Abzal Kredit is a family owned business with owners and
management having extensive banking background in
largest banks in Kazakhstan.
Note:as of 30.06.09: USD/KZT exchange rate – 150.41
АБЗА Л КРЕДИТ
Mission
To contribute to the development of microfinance
market in Kazakhstan with sustainable growth while
empowering the respected position in the financial
sector
Strategic Vision



Serving the local community and the natural customer
base where the network is present
Personal as well as institutional relationship
Convenience and responsiveness to customer needs
АБЗА Л КРЕДИТ
Strong management team
Abzal Akkoshkarov -Co-owner
15+ years of experience in finance and banking, worked on different
managerial positions in largest banks and companies in Kazakhstan,
including BankTuranAlem. Has degree in finance from Kazakhstan State
University
Dinara Akhmtekarimova – General Director and co-owner
11+ years of experience in finance and banking, worked on different
managerial positions in largest banks and companies in Kazakhstan,
including Kazkomertsbank, Has degree in finance from Kazakhstan State
University.
Almira Akhmtekarimova – Managing Director and Co-owner
8+ years of experience in finance and banking, worked on different
managerial positions in largest banks and companies in Kazakhstan, last
position Managing Director, International Capital Markets, Alliance Bank,
where she raised more than USD 7 billion for the bank through a number
of debt and equity transactions, including eurobonds issues and IPO. Has
degree in finance from Eastern Kazakhstan State University, held different
trainings and seminars in finance.
АБЗА Л КРЕДИТ
Organization Chart
Director
Credit
Department
Accounting
Sector
Legal Sector
Internal
Security
Sector
Chief
Accountant
Collateral
Appraisal
Sector
IT Sector
Capital
Raising Sector
АБЗА Л КРЕДИТ
Financial Highlights
Breakdown of loan portfolio by amount as
Strong loan portfolio and assets growth
400
350
300
250
200
150
100
50
0
of 30 June 2009
KZT’mln
353
219
205
128
322
90
75
70,8
74,2
60
45
30
123
43
12
9
up to KZT 1
KZT 1 - 3
KZT 3 - 6
over KZT 6
mln
mln
mln
mln
23,0
15
0
2007
Loan portfolio
2008
1H2009
Total assets
51,3
46
number
Loan maturity profile 1H 2009
1-2 months
Breakdown by type of collateral 1H2009 (%)
4,3%
3-6 months
<1 year
> 1 year
34,2%
30,7%
30,8%
80
70
60
50
40
30
20
10
0
75,4
17,4
7,2
real estate
Note:as of 30.06.09: USD/KZT exchange rate – 150.41
Source: Company KAS financials
KZT mln
land
automobilies
АБЗА Л КРЕДИТ
Loan approval process
Main parameters of lending
Client
full package of documents
Lawyer
Expertise
legal opinion
Credit manager
Documents processing
Positive
Loan granted
Min – 30
days
Max – 36
months
Effective Interest
rate
Min –
30% p.a.
Max – 60%
p.a.
Currency
Appraiser
Expertise of
Pledged property
Credit committee
Decision making
Terms of lending
Negative
Client notification
The form of loan
granted
Only in KZT
In cash
Min credit amount
KZT 100 000
Max credit amount
~USD 70 000 (in
accordance with
Kazakhstani legislation)
АБЗА Л КРЕДИТ
Liabilities and equity structure
Funding mix (1H 2009)
Equity structure 1H2009
Loans from banks
Shares issued
31,1%
DAMU
30,2%
5%
Frontiers
95%
Other
4,4%
Net profit
Equity
32,6%
1,7%
Among investors of Abzal Kredit are foreign and government
investment funds as well as local banks.

In
September 2008 share capital increased to KZT 100 million
(USD 837 thousand).
Overdue loans
KZT’mln
6,0
5,5
5,0
In September, 2008 company has raised new funding from
EDF “DAMU” in the amount of KZT105 million (USD 870
thousand) under government program
4,0
In
1,0

4,40
3,0
2,0
1,7
1,53
March, 2009 company has signed the loan agreement with
JSC “Eurasian Bank” for new funding in the amount of KZT100
million (USD 670 thousand).
Source: Company KAS financials
Note:as of 30.06.09: USD/KZT exchange rate – 150.41
3,8
3,1
0,0
0,0
0,00
2006
overdue loans
2007
2008
1H2009
overdue loans / Loan portfolio
Strong profitability with
potential for further improvement
АБЗА Л КРЕДИТ
Profit evolution
NIM
(%)
90
20
18
16
14
12
10
8
6
4
2
0
83,13
80
68,12
70
60
50
36,9
40
26,7
30
20
10
0
2006
2007
2008
Net Income
KZT’mln
Net profit
16,7
operating income before tax
10,5
5,2
0,4
1H2009
0,6
2005
0,9
5,0 5,0
7,5
1,3
2006
2007
2008
1H2009
Return ratios
KZT mln)
(%)
2008
10,5
2007
2006
2006
2007
2008
3Q2008
ROAA
11%
4.8%
3.8%
1.5%
ROAE
17%
24%
13.6%
4.5%
5
1H2009
5,0
5,2
0,9
Source: Company KAS financials
Note:as of 30.06.09 USD/KZT exchange rate – 150.41
АБЗА Л КРЕДИТ
Our partners and investors
АБЗА Л КРЕДИТ
Contact details
Almira Akhmetkarimova
[email protected]
[email protected]
Tel. +7 727 266 4647
Fax +7 727 272 1595
Mob. +7 777 444 9992
Kamilya Amantayeva
[email protected]
[email protected]
Tel. +7 727 261 1225
Fax +7 727 272 1595
Mob. +7 701 333 6550
117, Furmanov Str.
Almaty, Kazakhstan
Tel. +7 727 272 6196; +7 727 261 1225
Fax.: +7 727 272 1595
E-mail: [email protected]