Could you provide an overview of the company’s performance over the past year? This has been a year of remarkable results for Cim Finance, underscored by disciplined execution and strong operational fundamentals. Achieving MUR 1bn in profit after tax is a testament to our ability to balance growth with sound risk management. Our balance sheet remains robust, supported by a reduction in provision requirements and our net NPLs are now near pre-COVID levels – all indicators of a well-managed portfolio and effective operations. Assuming the role of Group CEO in April 2024 has been a privilege. It has been a smooth transition, made possible by the sound foundations already in place, the support of our talented ExCo and ManCo teams, and a well-guided strategy that has brought us to this point of success. My first few months into this role have been shaped by a balance of continuity and progress, remaining faithful to the values and principles that have served us well, while driving forward innovation and adaptability to meet the challenges of tomorrow. What were some of the biggest challenges faced by the company this year? How did Cim Finance respond? The environment was marked by regulatory changes and persistently high interest rates, exerting significant pressures on our cost of funding, and in particular on the consumer finance segment. Leveraging our flexible funding approach and making selective interest rate adjustments has allowed us to minimise the impact on our business. Amid these challenges, we also seized opportunities. In the leasing segment, the increasing demand for green financing has become a major driver of growth, supported by the issuance of our green bond. This initiative has positioned Cim Finance as a leader in sustainable finance, allowing us to meet the growing demand for environmentally conscious solutions while advancing our broader ESG goals. As consumer preferences lean further toward digital platforms, we have made significant progress in building a robust and secure digital infrastructure, while innovating continuously to meet customer expectations at every touchpoint. How is Cim Finance’s strategy evolving to address these shifts? Cim Finance’s strategy is built around three core pillars: scaling our business, achieving operational excellence, and empowering our workforce. These priorities are guided by clear initiatives and measurable KPIs, including deepening our digital capabilities, diversifying our product offerings, and embedding ESG principles into our operations and investment strategies. To help these efforts forward, we recently welcomed a Group Chief Human Resources Executive, responsible for steering our human resource strategy, and for championing our dual focus on technology and talent. By aligning our digital transformation strategy with a people-focused approach, we aim to create a ‘phygital’ workplace that leverages technology not only to enhance efficiency, but also to boost employee engagement and wellbeing. This balance is crucial as we navigate a very competitive talent market, particularly in attracting and retaining digital natives who value flexibility and meaningful work. How is the company approaching technological innovation and digital transformation? Digital transformation remains central to our strategy. We continuously automate and modernise our operations to enhance both the employee and customer experience. A cornerstone of this effort is the migration to a new core lending system – our largest digital project yet – which will serve as the backbone of our operations. This upgrade, slated for completion by the end of next year, is designed to offer greater scalability, efficiency, and service responsiveness. We have also enhanced our digital platforms and mobile applications to meet the growing demand for convenience and accessibility. Innovations like the e-loan feature in the MoFinans app, now enabling customers to apply, get approval, sign their contract, and repay loans instantly. There is also high uptake of customers repaying their credit facilities via IPS on the MoFinans app and we have crossed MUR 100m in IPS monthly transactions. Internally, the past few years’ digital investments are bearing fruit and have allowed us to generate productivity gains in our leasing operations. Our efforts are now focused on automation and efficiency gains across departments to boost operational excellence and customer centricity. Can you discuss the company’s approach to risk management and regulatory compliance? A disciplined and forward-looking approach to risk management and compliance has been key to maintaining the health of our portfolio, as reflected in a steadily decreasing NPLs rate. Our risk framework is dynamic, continuously adapting to align with regulatory changes and incorporating regular assessments of processes, products, clients, and channels to mitigate risks effectively. Accountability is embedded across all levels of the organisation. Our compliance team works closely with business units to foster a culture of vigilance and adherence, while we invest heavily in training our people to stay ahead in a complex regulatory landscape, aligning their expertise with the company’s priorities. This year, we reinforced our capabilities with the introduction of an automated screening tool, enhancing our ability to flag, monitor, and escalate potential risks. Looking ahead, the addition of real-time customers’ screening will mark a significant leap, enabling the near-instant detection and response to emerging threats. What is your outlook for the financial services sector in the coming year? The financial services sector stands at a turning point, with digitalisation, AI, regulatory shifts, and labour market challenges defining the agenda. Consumer expectations for more convenience and personalisation are also opening new opportunities for digital solutions and financial advisory services – the hallmarks of our business. Despite ongoing economic uncertainties, Cim Finance remains well-positioned and confident in our ability to build on our strong market presence, strategic focus, and the momentum gained this past year. This foundation provides a springboard for diversifying our revenue streams, and exploring new market segments and strategic partnerships that will drive our next phase of growth. What final message would you like to share with the company’s stakeholders? I would like to express my sincere gratitude to our Board of Directors for the trust they have placed in me. To our stakeholders, thank you for your continued support and confidence. Our achievements are a reflection of the invaluable contributions of our employees, partners, and customers who continue to believe in our vision. As we look to the year ahead, we remain committed to delivering meaningful and sustainable value. Our ESG strategy, whilst a work in progress, is increasingly guiding how we operate, ensuring that profitability and responsibility go hand-in-hand. Together, we will continue building a future that benefits us all, and that we can take pride in. 35 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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