Slide 1: FY24 Results
FY24 Results 27 August 2024 CEO James Beeson CFO - COO Paul Murray
Slide 2: Several key milestones completed in FY24 positioning the business for growth
Several key milestones completed in FY24 positioning the business for growth and operating leverage in FY25 Underlying Proforma NPAT1 of $4.9m (FY23: restated $4.1m2); Underlying Proforma EPS of 1.70 cps Dividend of 0.15 cps declared (c. 100% payout of retained earnings) reflecting Board’s commitmen
Slide 3: FY24 Proforma Financials (Excluding RevRoof)
FY24 Proforma Financials (Excluding RevRoof)
Slide 4: Proforma Profit and Loss, excluding RevRoof
NOTE: The remaining presentation is based on proforma unaudited financials that exclude the impact of RevRoof, providing investors with a Proforma profile of the Earlypay business on a continuing basis. This will be last reporting period to include RevRoof adjustments. Profit and Loss ($m) FY23 FY24
Slide 5: Lower credit impairments and normalised Opex offset lower net revenue
Lower credit impairments and normalised Opex offset lower net revenue Proforma 1 Large, low margin clients replaced with smaller clients at higher margins IF & Trade Reporting ($m) FY23 FY24 Δ pcp and emerging funding cost benefits (part year only) albeit offset by Key Metrics onboarding of higher q
Slide 6: Modest EF originations as asset mix is managed within funding parameters
Modest EF originations as asset mix is managed within funding parameters Proforma 1 Originations lower due to asset parameter restrictions. Originations EF Reporting ($m) FY23 FY24 Δ pcp rebounded in Q4 after parameters were modified Key Metrics 4 Year end funds in use 111.5 93.6 -16% 2 Reduction in
Slide 7: Balance Sheet remains strong with Net Tangible Asset position
Balance Sheet remains strong with Net Tangible Asset (NTA) position of $40.3m / 14.8 cps at 30 June 2024 Balance Sheet ($m) 30-Jun-23 30-Jun-24 1 Cash position of $40.1m as at 30 June 2024 Cash and cash equivalents 53.0 40.1 1 Receivables - Invoice Finance1 162.4 145.4 $15.2m corporate cash (i.e., n
Slide 8: Invoice & Trade Warehouse Facility settled in Feb-24
Invoice & Trade Warehouse Facility settled in Feb-24 with mezzanine and corporate funding completed in June / July 2024 Current Structure (as of 27 August 2024) Two warehouse structures Senior funding provided by two of Australia’s largest banks Facility Structure Cost of Funds Size Corporate facili
Slide 9: Continuing to build a diversified and well-secured pool of client receivables
Continuing to build a diversified and well-secured pool of client receivables Client receivables mix Client industry Client location Client exposures Invoice Finance Diverse industry mix Diverse geographic Continuing to diversify exposure client exposures Equipment Finance Construction is primarily
Slide 10: Traditional Channels and New Channels
Traditional Channels New Channels 100% of FY24 distribution 0% of FY24 distribution Referrers: Commercial Finance Brokers, Insolvency Practitioners, Accountants, Business Advisers Marketing led sales TBA TBA Client & staff referrals Sales & marketing team expansion Leveraging technology to provide f
Slide 11: Outlook
earlypay“ Outlook
Slide 12: Strong growth in FIU, margin expansion and profitability is expected in FY25
Strong growth in FIU, margin expansion and profitability is expected in FY25 Over the past 18 months, focus has largely been on debt refinancing and risk management: including rebalancing towards a more diversified client receivables portfolio with an improved risk profile. With stronger foundations
Slide 13: Appendix
earlypay“ Appendix
Slide 14: Employing ~80 people in Sydney, Brisbane and Melbourne
Employing ~80 people in Sydney, Brisbane and Melbourne, Earlypay provides secured finance to SME businesses Since 2012, Earlypay has become a leading provider of leading provider of business Share Price $0.180 funding solutions to Australian SME businesses Shares on Issue 272.9m Invoice Finance is E
Slide 15: The SME market is still nascent in its awareness of invoice financing
The SME market is still nascent in its awareness of invoice financing as a funding alternative Our Opportunity • SMEs mainly use banks for funding Substantial proportion of lending to SMEs is backed by • At Jun 23 borrowings were $588bn 2.6m SMEs in Australia 2 residential property; • ~50% of Small
Slide 16: Tax rate on adjusted profit assumed at 30%
Reported RevRoof Adjustment Proforma Profit and Loss ($m) FY23 FY24 Δ pcp FY23 FY24 FY23 FY24 Δ pcp Year End Funds in Use 306.9 249.3 -19% (12.7) - 294.3 249.3 -15% Average Funds in Use 331.6 268.7 -19% (25.6) (5.7) 306.0 263.0 -14% Interest Income 34.8 32.7 -6% (1.6) - 33.2 32.7 -2% Interest Expens
Slide 17: IF & Trade Reporting Key Metrics
Reported RevRoof Adjustment Proforma IF & Trade Reporting ($m) FY23 FY24 Δ pcp FY23 FY24 FY23 FY24 Δ pcp Key Metrics Year end funds in use 195.4 155.7 -20% (12.7) - 182.8 155.7 -15% Ave. funds in use1 202.0 167.2 -17% (22.8) (5.7) 179.2 161.5 -10% Interest income 21.5 21.2 -1% (1.4) - 20.1 21.2 6% I
Slide 18: EF Reporting Key Metrics
Reported RevRoof Adjustment Proforma EF Reporting ($m) FY23 FY24 Δ pcp FY23 FY24 FY23 FY24 Δ pcp Key Metrics Year end funds in use 111.5 93.6 -16% - - 111.5 93.6 -16% Ave. funds in use1 129.6 101.5 -22% (2.8) - 126.7 101.5 -20% Loan Originations 39.1 28.3 -28% - - 39.1 28.3 -28% Interest income 12.8
Slide 19: Generated positive net operating cash flow of $9.3m for FY24
Generated positive net operating cash flow of $9.3m for FY24 Cash Flow ($m) FY23 FY24 Δ pcp Strong operating cashflows of $9.3m in FY24 Receipts from customers 28.1 24.1 -14% Interest received from customer 34.8 31.6 -9% Income tax cash benefit in FY24 expected to normalise in future Payments to sup
Slide 20: Board of Directors
Geoffrey Sam OAM, Non-Executive Chairperson Stephen White, Non-Executive Director Qualifications: BCom (UNSW), MHA (UNSW), MA (Econ & Soc Studies) Qualifications: M.Mngt, GAICD (Manchester UK), FAICD Responsibilities: Member of the Audit & Risk Committee and Member of the Responsibilities: Member of
Slide 21: This presentation has been prepared by Earlypay Limited
This presentation (”this Presentation”) has been prepared by Earlypay Limited [ACN 098 952 277] (“EPY” or the “Company”) and is dated 27 August 2024. Summary information This presentation contains summary information about the current activities of EPY as at the date of this Presentation. The inform
Slide 22: For further information, please contact
For further information, please contact: Investor Enquiries James Beeson Managing Director & CEO, Earlypay 1300 760 205 James.beeson@earlypay.com.au