Slide 1: Financial Year 2024 Investor Presentation
For personal use only Financial Year 2024 Investor Presentation 11am Tuesday 20 August 2024 Scott Baldwin, Managing Director & CEO Siva Subramani, CFO
Slide 2: Presenting Today and Agenda
Presenting Today Agenda For personal use only • Strategy • FY24 Results Summary • FY24 Results • Summary and Outlook Scott Baldwin Siva Subramani Managing Director & Chief Chief Financial Officer • Questions Executive Officer 2
Slide 3: The Group
The Group Market Opportunity Vision The Future For personal use only Addressable market Empowering people through accessible, We finance underserviced Consumer: $35+ billion 1 responsible and flexible financial products markets 1m new vehicles2 Commercial: 3m used vehicles2 $8 billion 1 sold annuall
Slide 4: FY24 - Results summary
FY24 - Results summary For personal use only Revenue NPAT*(normalised) Bad debts EPS* – 13.8c $216.0m $29.0m 4.4% of loan book down 8.8c on pcp up 3.2% on pcp up on pcp (3.7%) DPS – 10.0c Statutory NPAT $17.0m down 6.5c on pcp 10.6% Australian revenue Within expected range of down 64.2% on pcp growt
Slide 5: FY24 Group Performance
Revenue Loan Book AUD m 250 209 216 AUD m 1000 910 930 FY24 Group Performance 200 188 800 733 For personal use only 145 601 150 124 600 434 100 400 • Revenue growth of 3.2% on pcp 50 200 • Cash collections up 9.4% on pcp 0 0 demonstrating resilient customer profile FY20 FY21 FY22 FY23 FY24 FY20 FY21
Slide 6: Strong growth in revenue and lending, opportunity in Commercial
Strong growth in revenue and lending, with significant opportunity to grow Commercial Loan Book Australia - Revenue Australia - Origination AUD m Australia - Customer segmentation For personal use only AUD m AUD m 200 500 451 173 55 157 450 405 137 400 362 150 350 113 288 Consumer 103 300 100 250 21
Slide 7: Significant growth in loan book, maintaining credit quality
Significant growth in loan book, maintaining credit quality with funding available for future expansion Australia - loan book Australia - debt facilities Maintaining credit quality – Australia loan book For personal use only AUD m AUD m 900 791 800 FY24 58% 24% 15% 4% 0.10% 688 711 600 561 238 600 5
Slide 8: New Zealand - Loan Book
AUD m New Zealand - Loan Book New Zealand For personal use only 250 199 200 191 • Loan book in run-down Forecast 150 139 • Cost-out initiatives commenced • Minimise interest costs by repaying 100 80-90 debt • Focus on maintaining collection and 50 servicing capability 20-25 0 FY22A FY23A FY24A FY25E
Slide 9: Commercial Loans
Commercial Loans For personal use only Target addressable market $8 billion* • Have been trialling within existing business Leverage existing • Good uptake for light commercial assets distribution network leveraging existing distribution network • $54.4m of outstanding commercial loan book Target so
Slide 10: FY24 Results
For personal use only FY24 Results 10
Slide 11: Financial Results
Financial Results AUDm unless stated otherwise FY24 (Normalised) Adjustments FY24 (Statutory) FY23 (Statutory) Growth %* Financial Results • Normalised NPAT of $29.0 million and For personal use only normalised EBITDA of $97.8 million Revenue 216.0 216.0 209.3 3.2% • Revenue growth driven by: Intere
Slide 12: Summary & Outlook
For personal use only Summary & Outlook 12
Slide 13: Outlook
Outlook For personal use only Financial Operational Market • Continued focus on repricing new • Immediate focus areas: • Changing competitive dynamics lending whilst maintaining target - Efficient run-down and capital providing opportunity to take loan volumes return from New Zealand market share •
Slide 14: Questions
For personal use only Questions 14
Slide 15: Thank you!
Thank you! For personal use only CEO & Managing Director Scott Baldwin +61 3 7031 6019 s.baldwin@solvar.com.au Chief Financial Officer Siva Subramani +61 3 7031 6018 s.subramani@solvar.com.au Investor Relations Tom Ng +61 490 796 752 t.ng@solvar.com.au
Slide 16: Appendix
For personal use only Appendix 16
Slide 17: ESG and People
ESG and People ENVIRONMENT CYBER For personal use only Carbon Neutral status FY23-24 ~3k trees Recycling programs in IS0 27001 Third party SOC achieved since 2022* planted & 3,000 tons all Solvar offices certification in provides 24x7 of Co2 offset progress detection and rapid We deliver products re
Slide 18: Product Summary
Product Summary For personal use only Product Consumer Consumer Consumer Commercial Purpose Vehicle Finance Personal loans Vehicle Finance Vehicle Finance Maximum up to $100,000* up to $35,000* up to $130,000* loan amount Term 24 - 72 months 24 - 60 months 12 - 84 months Fixed rate Fixed rate Fixed
Slide 19: Corporate Information
Corporate Information For personal use only Capital Structure Shares on issue 208.3 million Share Price (19 August 2024) $1.22 Market Capitalisation $254.2 million Board of Directors Stuart Robertson Non-Executive Chairman Scott Baldwin Managing Director & CEO Symon Brewis-Weston Non-Executive Direc
Slide 20: Glossary of terms
Glossary of terms For personal use only A$ or $ - Australian dollars M3 - Money3 business unit Active customer - A customer with an outstanding balance NPAT – Net Profit After Tax ASIC – Australian Securities and Investment Commission NIM – Net Interest Margin AFCA – Australian Financial Complaints
Slide 21: Disclaimer
For personal use only Disclaimer The content of this presentation has been prepared by Solvar Limited (the Company) for general information purposes only. Any information included in this presentation on future financial performance, including industry sectors, income, profit and employment types,