Grab Holdings Limited Class A Ordinary Shares Investor update

Good morning and good evening, everyone, and thank you for joining Grab's Investor update session. I am Douglas Eu, Director of Strategic Finance and Investor Relations. Joining me today are Anthony Tan, Chief Executive Officer, Alex Hungate, President and Chief Operating Officer, and Peter Oey, Chief Financial Officer. Before we begin, we are going to be presenting both IFRS and non-IFRS financial measures. Please see the supplemental slides, our press release, and our filings with the SEC for more disclosures about these non-IFRS measures, including a reconciliation of IFRS to non-IFRS measures. We are also going to be making some forward-looking statements today. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law.

For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today and in other filings made with the SEC. With that, today, Grab is announcing an agreement to acquire a controlling 60% equity interest in Atome Financial, accelerating the growth and profitability of our financial services segment. Anthony will present the opening remarks covering the strategic rationale and merits of the proposed transaction. Alex will describe our strategic roadmap and cover our strengths and track record in financial services. Peter will discuss the outlook and capital allocation priorities. We will begin with a presentation from our management team, and after the presentation, we will have a Q&A session, and we encourage you to submit questions via email through the presentation to investor.relations@grab.com. With that, I will hand it over to Anthony.

Thanks, Doug. Good day, everyone, and thank you for joining us. Today, Grab is announcing a landmark acquisition of Atome Financial, deepening our commitment to financial inclusion across Southeast Asia and accelerating the growth and profitability of our financial services segment. I want to first take a step back to emphasize that building businesses from the ground up is not new or foreign to us. We have already proven we can build a category-leading business not once, but twice, in mobility and in deliveries. Financial services, while nascent today, is where we are confident and where we intend to prove it again. In mobility, we set out to make transportation safer for all across Southeast Asia while improving our drivers' earnings potential. Today, despite being in this business for 14-plus years, growth continues to remain robust and strong with transaction growth still at 28% year-on-year.

All of this is achieved with industry-leading adjusted EBITDA margins. In deliveries, we were not actually first to market in this region, but we were able to grow rapidly because we could leverage the existing supply we had already built in mobility, along with a brand and recognition that came with it, which let us scale quickly through COVID. While many expected the business to decelerate or decline once that period ended, not only have we moved beyond that, but we have done so sustainably, powered by our own product and tech-led strategies with GMV growth accelerating to 24% year-on-year. Financial services is our third segment. While it is still nascent, we have real conviction in its potential because it lets us leverage the same ecosystem strength, trust, and brand recognition that powered mobility and deliveries to unlock our next leg of growth.

It's already our fastest-growing segment, and we're on track to exit this year with a gross loan book of over $3 billion and to reach profitability in the second half of 2026. From here, we're targeting $500 million in Adjusted EBITDA by 2028. The financial services option excites me because the headroom to grow ahead of us is enormous. Millions of people across Southeast Asia still lack a formal credit history and are shut out of traditional banking, and this is exactly the gap we are well-positioned to close. Despite how far financial services has advanced in markets in other parts of the world, the option here remains massive. It is simply not a credit card market. Only 5% of adults here own a credit card, a fraction of what you would see in a market like Brazil. Formal lending is just as thin.

Only 14% of adults have ever borrowed from a bank or financial institution. What fills that gap today is informal borrowing. Borrowing from friends, from family, for instance, and those are the safe ones, accounted for over a third of lending across these markets. That gap between the credit people need and what the formal system actually provides is the option in front of us. Closing it isn't something we're starting from scratch. I want to show you how far we've already come and where I believe the next chapter takes us. If you look at this slide, what you're really looking at is a story of how we built towards this moment, one piece at a time. We started to solve a basic problem, giving people markets without credit cards or formal payment infra a safe way to transact with each other on our platform.

That early bet is why the majority of transactions on our platform now run through our own wallet. This was built from scratch to scale we have today, and it's also why we have industry-leading payment processing costs as owning that infrastructure ourselves let us bring costs down for the entire platform. From there, we use the trust and the data that gave us to move into partner and ecosystem lending and insurance. Over a third of our active drivers now carry a loan with us, scaled prudently and with discipline, and non-performing loans have remained stable or improved across the portfolio, even as that scale has grown, which is also the foundation for the profitability we expect to reach in the second half of 2026. The next piece was digital banking. That took us somewhere GrabFin alone couldn't.

Our digibanks are able to take deposits and operate under the same oversight as any other financial institution with a footprint across Indonesia, Singapore, and Malaysia. The next piece this year was Stash. We completed the acquisition and added a micro-investment platform. This not only let us diversify into fee-based income streams, but also deepen our ability to help people save and grow their investments for retirement, building on how we already help them spend and borrow. Which brings me to today and to Atome and to consumer lending. Atome is highly complementary to everything I just walked you through. Our lending so far has been led by driver and merchant lending, closed-loop, and embedded inside our own ecosystem. We do have consumer lending today, but it's still nascent. Atome is the natural next stage.

It pushes us into consumer lending, which allows us to widen credit access to our unbanked and underbanked across the region. Atome gives us that scale immediately, the same scale many of our peers have already reached by building organically over several years, often sustaining years of losses along the way. This is the missing piece. It completes our suite of financial services stretching across lending, insurance, payments, investments, and digital banking. Atome has substantial scale with a gross loan book of over $1 billion today, built across a wide range of over 30,000 unique brands and more than 25 million cumulative transacting users. Importantly, it does all this while already delivering a positive, profitable, Adjusted EBITDA contribution. Atome has a diversified portfolio that serves a wide range of consumer credit needs under one app. Atome Card gives consumers a PayLater card they can use anywhere.

Atome BNPL lets them shop and split purchases across their brand partners, and Atome Cash Loan gives them accessible credit when they need liquidity beyond a single purchase. Every product here is built around an individual consumer's everyday spending and borrowing needs, covering the full range of scenarios, whether they are paying at checkout, splitting a purchase, or drawing down cash. It is this relentless focus on enhancing their product suite that has driven strong and durable growth for Atome. Atome's GMV has grown over 9 times across the past 6 years, and it is Adjusted EBITDA positive today. What makes this more notable is that this growth has held up through periods of weaker macro conditions across the region, a sign of how durable the underlying demand for this business really is. Atome's growth has not come at all costs.

It has been achieved in a disciplined manner with prudent credit risk management and a constant focus on improving lifetime value and enabling the platform to also drive sustainable, profitable growth. There are 2 factors that support this. First, delinquency rates have improved across every cohort, and the 2026 cohort is the best performing yet. That tells us that underwriting is getting sharper as a platform scales, not just that risk is being managed defensively. Second, purchase frequency has stayed high and consistent, running at an annualized rate in the 50s to 60s and reaching a high of 62 transactions per user in the most recent quarter. That level of repeated engagement means this growth is not coming from acquiring new users alone. It is coming from existing users transacting with Atome again and again, which makes the revenue base far more recurring and predictable.

This is precisely the discipline we look for before scaling a lending business, and it is exactly what gives us confidence to accelerate from here. That confidence is grounded in Atome's credit underwriting engine, one of the most sophisticated in the region. Atome has built a system of over 100,000 variables and 131 models. That is what enables real-time credit decisions, credit approval rates above peers, and loss rates consistently below industry benchmarks. What sets Atome apart, similar to Grab, is how deeply AI is embedded across the full risk stack through more than 22 live applications. Models are now built twice as fast, feature engineering is 6 times more efficient, and risk monitoring is 4 times more robust. The result speaks for itself. GMV has grown 4-fold over the past 3 years, and risk-adjusted margins have remained stable throughout. This is exactly the kind of platform you build from.

You've just seen the scale and discipline Atome already has, and this is exactly why we chose to acquire rather than build this ourselves. The strategic rationale also stems from Atome operating in five of the six markets we're already in, which means it comes with scale in exactly the geographies that matter. Beyond that, there's strong potential for strategic synergies as a combined platform. Combining our ecosystems will enable us to accelerate financial inclusion to the unbanked and underbanked across the region, with Atome leveraging the distribution and reach of Grab with ample opportunities to drive cross-sell opportunities across both of our networks. Let me put some numbers behind that opportunity, starting with where we stand today. As I mentioned earlier, consumer credit penetration across our own ecosystem is still nascent and smaller than what we see among peers.

Of our 138 million annual transacting users, only 1% borrow from us today. That's a deliberately small number. We prioritize prudence and profitability in scaling our financial services segment, even though we always knew the underlying demand was real. Atome changes that immediately. It expands our lending reach and broadens the base of our users we can serve from day one. As we expand the parameter of both platforms together over the midterm, we see the potential to scale our user base for lending by more than 10 times from where we stand today. That's the real size of the opportunity in front of us. Currently, our biggest lending exposure sits in digibank retail and MSME, both larger today than our consumer fintech book. That's largely a function of tenure. As digibank's loans run longer, so balances build up and stay on the books for longer.