Humansoft K S C P : Transcript of the Analysts Conference

Company:	Humansoft Holding Company
Conference Title:	Humansoft FY 2022 results conference call (Edited Transcript)
Date:	Thursday, 23 February 2023
Time:	2 pm (Kuwait time)
Hatem Alaa	Hello, everyone. This is Hatem Alaa, from EFG Hermes,

and welcome to Humansoft's Full Year 2022 results call. I'm pleased to have on the call today from Humansoft, Mayank Baxi, Board Member, and Anup Dhand, CFO. We'll start by some comments from management and then we'll open the floor for Q&A. As an initial reminder, to ask a question you can either type it in the Q&A chatbox or you can click on the Raise Hand button. Gentlemen, please go ahead.

Mayank Baxi Thank you, Hatem. Hello, everybody. Welcome to

Humansoft FY 2022 results conference call. I hope all of you and your loved ones are keeping safe. Thank you team at EFG for facilitating this call. I am Mayank Baxi, Board Member at Humansoft. Along with our CFO, Mr Anup Dhand, together we would like to briefly mention some of the key highlights of Q4 2022 and then run through the FY 2022 financial highlights, and at the end we will leave the floor open for questions and answers.

At the outset, I would like to mention that any forward-looking statements or views discussed during this call are subject to risks and uncertainties that may cause the actual results to differ. Humansoft does not assume any obligation to update such views or statements, nor make any announcements regarding any revised circumstances.

For the year 2022, the board of directors have approved and recommend cash dividends of 400 fils per share and a bonus share of 5%, that is five bonus shares

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for every 100 shares. This is subject to approval of the shareholders and the regulatory procedures.

Humansoft's growth strategy is founded on two main pillars:

Protecting and preserving our existing academic achievements and leadership in the market by enhancing qualitatively on all fronts, and

cautiously and carefully grow organically by way of introducing new majors from time to time, which is based on deep research and future requirements of industry and, at the same time, enhancing overall profitability with well-managed growth plans.

These are very well demonstrated by the consistent growth in profitability over the past years.

For example, during the past seven years, since 2016, the net profit of KD 24.2 million has more than doubled and reached KD 50.7 million in the year 2022.

AUM has been ranked as number one university in Kuwait, second year in a row, by both Times Higher Education and QS rankings.

AUM has entered into several international collaborations with reputed global institutions such as Purdue University, University of California Berkeley's AMENA Center for Entrepreneurship and Development, Babson College for the management studies, and HEC Montreal for facilitating a dual degree for eligible students, and as well as obtaining all the international accreditations from ABET and AACSB.

Coming to some of the non-financial key highlights and achievements during Q4 of 2022.

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As said, for the second year in a row Arab University Rankings of 2022 by Times Higher Education ranked AUM as number one in Kuwait, and the ranking has advanced to 18 in the Arab countries.

For the third year in succession, AUM has been ranked as most sustainable and green university in Kuwait. In UI GreenMetric World University Rankings in 2022, AUM advanced 31 places to number 237 worldwide and made it to the top five sustainable and green universities in the Gulf region and number 16 in the Arab countries.

AUM hosted the Times Higher Education MENA Universities Summit 2022 under the theme Transforming Learning for a Sustainable Future.

AUM and ACM sports teams participated in the Universities' Athletics Association in Kuwait league. The AUM male and female basketball teams and male football team were crowned champions.

AUM livestreamed the games of the FIFA World Cup on the campus.

All these initiatives and achievement enable AUM and ACM to remain as the institution of first choice and, at the same time, enable them to be robust to withstand challenges that arise in this journey.

Now, I would like to invite Mr Anup Dhand, CFO of Humansoft, to give a brief about the FY 2022 financial highlights. Thank you.

Anup DhandThank you, Mr Baxi, and a good afternoon to all

the attendees. I am Anup Dhand, CFO of Humansoft, and I would like to present the financial highlights of FY 2022.

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To begin with, we would like to inform that because of disruptions due to COVID- 19 and the changes in the academic calendar in 2021, revenue and profitability of FY 2021 and FY 2022 are not comparable.

During Q4 2022, 60% of the fall revenue was recognised, whereas during Q4 2021 recognition was for 75% of the fall revenue.

FY 2022 revenue of KD 84.3 million was lower by 12% in comparison with FY 2021 revenue of KD 95.9 million, mainly because of disruptions due to COVID-19 in 2021 and the changes to the academic calendar in FY 2021.

For more details, you can also refer to the revenue recognition slide on page 19 in our investor presentation.

FY 2022 EBITDA of KD 55.1 million was lower by 20% in comparison with FY 2021 EBITDA of KD 69.1 million.

FY 2022 net profit of KD 50.7 million was lower by 19% compared with KD 62.6 million for FY 2021.

Net profit margin for FY 2022 was 60% and EBITDA margin for FY 2022 was 65%.

The earnings per share was 417 fils during FY 2022 as compared to 514 fils during FY 2021.

Humansoft had a net cash position of KD 78.1 million as at 31 December 2022.

Total equity was KD 133.7 million as at 31st December 2022 and the annualised return on average equity for FY 2022 amounted to 38%.

Total assets was KD 155.6 million as at 31 December 2022 and the annualised return on average assets for FY 2022 amounted to 32%.

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