Moneyme Ltd. · ASX:MME
Moneyme — FY2023 Earnings Presentation
42 slides from Moneyme's earnings presentation, Aug 31, 2023
Slide 1: Investor presentation FY23 Results
Investor presentation FY23 Results 31 August 2023 moneyme.com.au Copyright 2023 | MoneyMe Limited | ACN 636 747 414
Slide 2: About MONEYME
About MONEYME A non-bank challenger MONEYME is a founder-led digital lender and Certified B Corporation™. We challenge the traditional ways of credit and simplify the borrowing experience with digital-first experiences that meet the needs of modern consumers. Digital yet personal We target customers
Slide 3: From start-up to scale-up with market-disrupting technology and innovation
From start-up to scale-up with market-disrupting technology and innovation • Transitioned high growth business to profit delivery • Innovation-first full automation • Completed acquisition of SocietyOne in March with AI delivering secured asset finance 2022 • IPO on ASX (December 2019) • 430,000+ cu
Slide 4: FY23 highlights
03 FY23 highlights 09 Operational highlights 18 Financial highlights 25 Strategy & outlook 31 Additional information Page 3 | MONEYME
Slide 5: FY23 highlights
FY23 highlights Statutory NPAT of $12m Cash NPAT of $24m1 148% 46% CAGR CAGR FY19 to FY23 FY19 to FY23 Statutory ECL provision Statutory NPAT management NPAT pre-overlay overlay 24 18 (6) 12 20 0 1 12 (8) 10 5 (50) FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 1. Statutory net profit after tax (
Slide 6: FY23 highlights
FY23 highlights Strong returns, high operating leverage and innovation, successful capital restructure, elevated credit quality, and meeting B Corp standards • $239m gross revenue • 727 average Equifax score Record ($143m, FY22) Elevated (704, FY22) revenue • 12% NIM maintained credit quality • 44%
Slide 7: Leading core products: Autopay
LEADING CORE PRODUCTS Game-changing innovation in the auto sector: secured vehicle finance up to $100,000 that settles within 60 minutes, 7 days a week Customer receivables Average car financed Average Equifax score at 30 June 2023 in FY23 at 30 June 2023 $446m $35,562 777 Unchanged from FY22 Up fro
Slide 8: Leading core products: personal loans
LEADING CORE PRODUCTS Unsecured variable rate personal loans up to $50,000 Customer receivables Average funded loan value Average Equifax score at 30 June 2023 in FY23 at 30 June 2023 $192m $12,836 689 Down 24% from FY22 Up from $11,232 in FY22 Up from 666 in FY22 Secured and unsecured fixed rate pe
Slide 9: Leading core products: credit card
LEADING CORE PRODUCTS Feature-packed digital credit card Customer receivables Average use of credit limits at 30 June 2023 in FY23 $188m 79% Down 18% from FY22 Up from 77% in FY22 Number of Freestyle card Average Freestyle card transactions in FY23 transaction value 1 mil+ $55 Page 8 | MONEYME
Slide 10: Operational highlights
03 FY23 highlights 09 Operational highlights 18 Financial highlights 25 Strategy & outlook 31 Additional information Page 9 | MONEYME
Slide 11: Operational highlights
Operational highlights Strong fundamentals deliver strong results Strong customer Elevating credit quality Technology-led innovation engagement • Improved credit profile with average Equifax • Leveraged highly automated and AI-driven • Maintained above-benchmark customer score of 727 in FY23 (704, F
Slide 12: Credit profile
CREDIT PROFILE Strong uplift in the Total portfolio average Equifax score increased to 727 (FY23) from 635 (FY20) Front book1 average Equifax score increased to 778 (FY23) from 638 (FY20) customer credit Average Equifax score 900 and above Average Equifax score 900 and above profile will provide 800
Slide 13: Credit profile: customer diversification
CREDIT PROFILE Strong customer Well-distributed geographical spread Median customer age is 33 diversification Other Age 18 - 25 reduces risk and 10% WA NSW 30% Age 36 + 12% promotes resilience 9% VIC 52% QLD 27% Age 26 - 35 24% 36% 10% or less concentration in each Strong long term book value and in
Slide 14: Customer experiences enhanced with new products and features
TECHNOLOGY-LED INNOVATION Customer experiences Fully automated process for Autopay An innovation-first fully automated verification and approval process for enhanced with new secured vehicle finance originations products and features through technology- Digital experience for brokers and dealers Our
Slide 15: Strong customer engagement
STRONG CUSTOMER ENGAGEMENT Innovation driving strong customer satisfaction despite rising interest rates 0 Net Promoter 2023 ~75% -100 +100 Score (NPS) 60 NPS 2022 Calls answered within 10 seconds +60 2021 35% 2020 Customers with 2 or more products 4.6/5 2019 24/7 2018 Near real-time settlements 1.4
Slide 16: B Corp certified
B CORP CERTIFIED A leap forward in making a difference for society and the environment MONEYME achieved B Corp Certification in In FY23, MONEYME strengthened its governance structures, identified ESG related risks August 2023 with a Certified B Impact Assessment and opportunities, and furthered its
Slide 17: SocietyOne integration
SOCIETYONE INTEGRATION Consolidation of MONEYME and SocietyOne business functions completed, delivering significant synergies Significant Enhanced operating Expanded distribution Leveraged power cost synergies through leverage from adding opportunities with of combined data automation, consolidation
Slide 18: Effective interest rate management
EFFECTIVE INTEREST RATE MANAGEMENT Protected Net Interest RBA cash rate target increased from 0.10% in March 2022 to 4.10% in June 2023 Margin1 (NIM) 4.10% 3.60% 3.10% 2.35% • Rising interest rates were primarily offset by customer pricing adjustments 0.85% 0.10% • MONEYME has a predominantly variab
Slide 19: Financial highlights
03 FY23 highlights 09 Operational highlights 18 Financial highlights 25 Strategy & outlook 31 Additional information Page 18 | MONEYME
Slide 20: Record statutory and cash NPAT
STATUTORY PROFIT Record statutory Statutory NPAT ($m) FY23 statutory NPAT to cash NPAT reconciliation ($m) and cash NPAT from 148% significant CAGR Statutory ECL provision Statutory FY19 to FY23 NPAT management NPAT pre-overlay overlay operating leverage 18 (6) 3 3 and moderated 12 originations 0 1
Slide 21: Gross revenue
GROSS REVENUE Significant revenue Gross revenue ($m) ~30% gross revenue contribution from secured assets in FY23 growth, with over 3x 67% Secured Unsecured secured asset Gross revenue FY22 to FY23 239 $19m revenue from secured assets in FY22 $70m revenue from secured assets in FY23 revenue growth fr
Slide 22: Scaled book with strong mix of secured assets
GROSS CUSTOMER RECEIVABLES Scaled book with Average gross customer receivables ($m) unsecured vs. secured Closing gross customer receivables ($m) strong mix of 48 months 1,345 Weighted average contractual life of 49% 1,150 the book secured assets and FY22 to FY23 1,247 Secured 48-month average Unsec
Slide 23: Significant office operating cost leverage
OFFICE OPERATING LEVERAGE Significant office Office operating costs ($m) vs. asset growth Office operating costs to income (%)1 operating cost leverage Average gross customer 1 2 0 receivables 1,247 1 ,5 0 45% 46% from scale, automation, Sales & Marketing expenses Efficiency gain 38% 40% FY22 to FY2
Slide 24: Credit performance
CREDIT PERFORMANCE FY23 provision Provision as % of loan book Average Equifax score reflects Average Equifax score Portfolio % with 7 5 0 9.6% Equifax score ≥ 700 727 1 4 0 % 704 macroeconomic 7 0 7.9% 1 2 0 % 6.6% 6 5 0 650 1 0 % 6.1% ECL provision 635 0.5% 8 0 % uncertainty management 6 0 50% 56%
Slide 25: Diversified funding for sustainability and stronger returns
FUNDING Diversified funding FY23 closing funding mix (%) 8 funding structures in place with $1.5bn of total capacity1 for sustainability and Corporate debt 5% Warehouse Total facility limit 2 5 Funding structures (#) $1.7bn $1.5bn $ 2 , 2 0 0 m stronger returns $ 1 , 7 0 0 m facilities 2 0 69% $327m
Slide 26: Strategy & outlook
03 FY23 highlights 09 Operational highlights 18 Financial highlights 25 Strategy & outlook 31 Additional information Page 25 | MONEYME
Slide 27: Core products target massive market opportunities
STRATEGY & OUTLOOK MONEYME’s core products target massive market opportunities Size of the prize Where the opportunity is? Why the market opportunity exists? Auto • Incumbents core focus on Major Banks mortgages and business bank; $54b <1% less focus on consumer market (balance outstanding)1 MME seg
Slide 28: Readying the business for growth when market conditions are suitable
STRATEGY & OUTLOOK Readying the business for growth when market conditions are suitable Steady growth High growth Consolidation Ready for market Our strategy and key areas of focus FY19 to FY20 FY21 to FY22 FY23 FY24+ Extending our technology advantage with further 1 $1.3bn automation and AI innovat
Slide 29: Challenging the traditional ways of credit
MONEYME is challenging the traditional ways of credit with innovation and market-leading digital experiences to build a bigger, stronger, more profitable business. Page 28 | MONEYME
Slide 30: Questions & answers
Questions & answers
Slide 31: Thank you!
Thank you! On behalf of all at MONEYME
Slide 32: Additional information
03 FY23 highlights 09 Operational highlights 18 Financial highlights 25 Strategy & outlook 31 Additional information Page 31 | MONEYME
Slide 33: MONEYME Board of Directors
MONEYME Board of Directors Peter Coad Clayton Howes Independent Non-Executive Chair Managing Director & Chief Executive Officer Joined the Board in October 2019 as Board Chair Co-founder and CEO since inception The Board of Directors includes two founders and leaders with significant Rachel Gatehous
Slide 34: Key operating measures
Key operating measures Definition1 FY20 FY21 FY22 FY23 Returns Gross revenue ($m) 48 58 143 239 Gross revenue growth (%) 49% 21% 148% 67% Future contracted cash interest ($m) 1 29 98 398 360 Statutory NPAT ($m) 1 (8) (50) 12 Cash NPAT ($m) 2 10 12 20 24 Book profile Revenue yield (%) 3 43% 25% 17% 1
Slide 35: Measure definitions
Measure definitions Note Measure Definition The sum of the total amount of interest payable by each customer receivable over the remaining life of the customer receivable contract (i.e. from 1 July 1 Future contracted cash interest ($m) onwards to its maturity) based on simple interest on principal
Slide 36: Income statement
Income statement $ million FY20 FY21 FY22 FY23 Interest income 43 53 128 230 Other income 5 5 15 9 Gross revenue 48 58 143 239 Commission expense - (0) (2) (6) Net revenue 48 58 141 233 Interest expense (13) (11) (38) (90) Sales & marketing expense (5) (10) (22) (8) Product design & development expe
Slide 37: Statutory NPAT to Cash NPAT reconciliation
Statutory NPAT to Cash NPAT reconciliation $ million FY20 FY21 FY22 FY23 Statutory net profit/(loss) after tax 1 (8) (50) 12 AASB 9 impairment expense adjustment 16 29 103 97 Gross losses adjustment (9) (11) (45) (91) Derivative fair value gain/(loss) related - - (6) 3 Other non-recurring adjustment
Slide 38: Balance sheet
Balance sheet $ million FY20 FY21 FY22 FY23 Cash and cash equivalents 35 26 81 92 Net customer receivables 121 306 1,264 1,074 Current tax asset - 0 0 - Derivative financial instruments - - 10 8 Other receivables 1 1 10 14 Deferred tax asset 4 6 3 3 Intangible assets 2 3 36 33 Right of use assets 2
Slide 39: Cash flow statement
Cash flow statement $ million FY20 FY21 FY22 FY23 Net customer receivable inflows / (outflows) (58) (222) (709) 118 Income from customers 47 66 116 204 Borrowings interest and fees paid (12) (9) (29) (83) Income from delinquent asset sales and recoveries - - 14 31 Payments to suppliers and employees
Slide 40: MONEYME's core products
MONEYME’s core products CORE PRODUCTS1 LATEST Personal Loan Freestyle Autopay Credit Score Offer range $5,000 - $70,000 Credit limit up to $20,000 Up to $100,000 Free credit score in 60 seconds Offer term 24 - 84 months Repayment over 24 - 60 months 36 - 84 months N/A Interest-free period N/A Up to
Slide 41: Important notices & disclaimers
Important notices & disclaimers The information contained in this presentation has been prepared by MoneyMe Limited (MONEYME or Company) in connection with MONEYME’s and maintenance. A number of the Company’s products and possible future products contain or will contain open-source software, and the
Slide 42: moneyme.com.au
moneyme.com.au Copyright 2023 | MoneyMe Limited | ACN 636 747 414