Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (April 2022)
21 slides from Wisr's investor presentation, Apr 26, 2022
Slide 1: Company Update Q3FY22
COMPANY UPDATE Q3FY22 26 April 2022
Slide 2: Wisr has a unique and differentiated strategy
WISR HAS A UNIQUE AND DIFFERENTIATED STRATEGY Our tech, data, analytics and high-performance culture are genuine competitive advantages. Loan Origination in Q3FY22 was a record $158M (up 63% pcp), delivering: ● Over $1B loans written ($1.036B) since inception (4.5 years) ● 23 consecutive quarters of
Slide 3: Wisr's lending platform is delivering strong results
WISR’S LENDING PLATFORM IS DELIVERING STRONG RESULTS Wisr loan origination growth Wisr loan book growth^ 3
Slide 4: Strong revenue growth
STRONG REVENUE GROWTH Wisr quarterly revenue growth Revenue growth is up 106% in Q3FY22 ($15.5M) vs Q3FY21 ($7.5M) FOR YOUR SMART PART 4
Slide 5: Our growth is built on continued high credit quality
OUR GROWTH IS BUILT ON CONTINUED HIGH Wisr Loan Customer Average Credit Score CREDIT QUALITY Strong credit quality achieved over 23 consecutive quarters of growth, with consistent on-balance sheet 90+ day arrears and noticeable improvements to average credit scores. On-balance sheet portfolio 90+ da
Slide 6: Revenue growth delivering positive operating cash flow
REVENUE GROWTH DELIVERING POSITIVE OPERATING CASH Positive operating cash flow FLOW With two funding facilities in operation, strong loan book growth and accelerating revenue, Wisr delivered its second positive operating cash-flow result for Q3FY22. Source: Q3FY22 4C (Appendix and Financials) 6
Slide 7: Q3FY22 Update
Q3FY22 UPDATE With 23 consecutive quarters of growth, we have delivered: $158M in new loan Total loan $15.5M in Wisr loan book On-balance sheet 2nd consecutive originations originations Operating revenue $663M 90+ day arrears positive operating $1.036B cash-flow quarter 63% 106% 129% 0.92% on pcp 11
Slide 8: Strong Cash EBTDA improvement
STRONG CASH EBTDA Actuals IMPROVEMENT H1FY22 H1FY21 $M $M Variance Revenue 26.2 10.0 163% ● In H1FY22, the Company had a Cash EBTDA of $(3.8)M, which is a Operating expenses (20.8) (13.5) 54% 42% improvement on $(6.5)M in H1FY21 ○ Maiden positive Q2FY22 Cash EBTDA of $0.4M Loan write-offs (net) (1.7
Slide 9: Operational leverage expansion
OPERATIONAL LEVERAGE EXPANSION H1FY22 P&L Waterfall The operational leverage of the core Wisr lending platform continues to expand while the Company continues to invest in the Financial Wellness Platform, further innovation and the build and launch of more products. Despite this growth investment, t
Slide 10: Wisr is focused on achieving a loan book well beyond $1B
WISR IS FOCUSED ON ACHIEVING A LOAN BOOK WELL BEYOND $1B $3B Indicative model of the Wisr business at scale NOV 2019 31 MAY 2021 JAN 2022 $1B $3B % of Loan Book WH1 went live Wisr Securitisation IFM became WH1 settlement (Freedom mezzanine investor Trust) Revenue $100-120M $300-360M 10-12% 11 OCT 20
Slide 11: Indicative quarterly growth to get to $1B loan book
INDICATIVE QUARTERLY GROWTH TO Mar-2022 Jun-2022 Sep-2022 Dec-2022 Mar-2023 Jun-2023 GET TO $1B LOAN BOOK^ 0% QonQ growth $663M $769M $867M $958M $1,041M $1,118M 5% QonQ growth $663M $777M $891M $1,004M $1,118M $1,232M 10% QonQ growth $663M $785M $915M $1,054M $1,203M $1,364M 15% QonQ growth $663M $
Slide 12: Strong funding platform
STRONG FUNDING PLATFORM ● WH1 has $350.0M of committed funding and an undrawn capacity of $56.0M ○ Increase to $450.0M commitment well progressed along with ABS transaction ● Freedom Trust represents Wisr’s inaugural ABS transaction ● WH2 has increased from $225.0M to $300.0M of committed funding an
Slide 13: Wisr is well placed in an evolving interest rate environment
WISR IS WELL PLACED IN AN EVOLVING INTEREST RATE ENVIRONMENT Economists expect the RBA to raise interest rates at some stage after the Federal election. Illustrative modelling based on the Freedom Trust deal economics shows Wisr is well placed and has mitigants to respond to anticipated BBSW changes
Slide 14: Proprietary data algorithm optimising credit decisioning
OPTIMISING CREDIT DECISIONING PROPRIETARY With $1B in loans now written, Wisr has significant customer data to optimise and internalise our lending engine and risk-return profile. Through the launch of our proprietary credit score platform and algorithm, the Wisr Score, DATA we will be able to take
Slide 15: Wisr's unique platform fueling future growth
WISR FINANCIAL WELLNESS PLATFORM A STRONG GROWTH CHANNEL WISR’S UNIQUE PLATFORM FUELING FUTURE GROWTH Strong customer growth achieved via the Financial Wellness Platform. As at 31 December 2021, the Financial Wellness Platform was 68% more cost effective as a loan acquisition channel compared to dir
Slide 16: The Financial Wellness Platform drives highly targeted and personalised lending offers
THE FINANCIAL WELLNESS Direct Loan Driven Affiliates Partners PLATFORM DRIVES HIGHLY PLATFORM WISR PROFILE DATA SETS TARGETED AND Positive Credit Reporting data KYC of Customer Transaction data PERSONALISED LENDING OFFERS With a clear path to over a million profiles, this platform Wisr Advanced Data
Slide 17: The Financial Wellness Platform is a valuable asset for loan conversion
THE FINANCIAL WELLNESS PLATFORM IS A VALUABLE ASSET FOR LOAN CONVERSION Conversion into loans happens throughout the user lifecycle Average time to convert to a loan Q1FY22 33% 33% 33% Q2FY22 42% 39% 18% First 30 days 2-12 months 12+ months FOR YOUR SMART PART 17
Slide 18: Our Financial Wellness Platform also proving the Wisr model difference
PROVING THE WISR MODEL DIFFERENCE OUR FINANCIAL WELLNESS PLATFORM ALSO % of open Wisr loan accounts with prepayments PROVIDES GENUINE BENEFITS FOR OUR LOAN CUSTOMERS When Wisr loan customers engage with Wisr’s Financial Wellness Platform, as at 31 December 2021, 47% make regular prepayments, paying
Slide 19: We will continue to innovate and we won't stop
AND WE WON’T STOP WE WILL CONTINUE TO INNOVATE Significantly more features are on the way on the Wisr Financial Wellness Platform, making use of the unique positioning and data we have: ● Innovative new features on the platform ● More use of the data sets we have for optimisation for customers and W
Slide 20: Wisr has never been in a stronger position
WISR HAS NEVER BEEN IN A STRONGER POSITION STRONG AND SAFE GROWTH $663M Loan Book heading to $1B, Q3FY22 revenue up 106% on the back of 23 consecutive quarters of loan growth QUALITY LOAN BOOK On-balance sheet arrears less than 1% (0.92%), decrease in provisioning over time, Big 4 backed, global and
Slide 21: Thank you
THANK YOU ABN 80 004 661 205 Level 4, 55 Harrington St, 1300 992 007 The Rocks, NSW 2000 21