Earlypay Limited · ASX:EPY
Earlypay — Shareholder Meeting (November 2022)
18 slides from Earlypay's shareholder meeting presentation, Nov 17, 2022
Slide 1: FY22 AGM Presentation
For personal use only FY22 AGM Presentation 17 November 2022 CEO James Beeson CFO Steve Shin
Slide 2: Board and management
For personal use only Geoffrey Sam OAM, Non-Executive Chairperson Sue Healy, Non-Executive Director Qualifications: BCom (UNSW), MHA (UNSW), MA (Econ & Soc Studies) Qualifications: Fellow RCSA, MAICD (Manchester UK), FAICD Responsibilities: Member of the Audit Committee and Member of the Responsibil
Slide 3: FY22 was a record year of profitability for Earlypay
For personal use only FY22 was a record year of profitability for Earlypay FY22 Highlights ($m) FY22 Δ pcp Average Funds in Use $269.8m ↑ 40% Strong growth in Funds in Use with resilient net margins Net Revenue $44.1m ↑ 29% Lower Cost to Income highlights the scalability of the business model and NP
Slide 4: Growth in Net Revenue and Earnings driven by higher funds in use
Growth in Net Revenue and Earnings driven by higher Funds in Use For personal use only $m FY21 FY22 Δ pcp Average Funds in Use in FY22 increased by 40% due to organic Average Funds in Use 192.8 269.8 40% growth in both Invoice and Equipment Finance Interest Income 20.4 27.0 32% 29% increase in Net R
Slide 5: Robust balance sheet to support future growth
Robust balance sheet to support future growth For personal use only Strong cash position supports organic growth and potential $m FY21 FY22 Δ pcp acquisition opportunities Cash and cash equivalents 44.8 52.7 18% Receivables - Invoice Finance 1 121.9 164.9 35% Low Actual and Expected Credit Losses in
Slide 6: Invoice Finance: strong organic growth in the loan book
Strong organic growth in the loan book is driving Net Revenue Margin vs Avg Funds in Use For personal use only 30% 180 160 $m FY21 FY22 Δ pcp 25% 140 Key Metrics 20% 120 Year End Funds in Use 123.4 185.4 50% 100 15% 19.3% Avg Funds in Use1 100.1 161.5 61% 13.4% 80 Invoices Purchased (TTV) ($m) 1,864
Slide 7: Equipment Finance: strong growth in funds in use
Strong growth in Funds in Use in FY22 Margin vs Avg Funds in Use For personal use only 10% 110.0 8% 105.0 $m FY21 FY22 Δ pcp 4.0% 3.9% 100.0 Key Metrics 6% Year End Funds in Use 94.7 132.5 40% 95.0 4% Avg Funds in Use 92.6 108.3 17% 90.0 Loan Originations 45.0 98.9 120% 5.3% 5.4% 2% 85.0 Interest In
Slide 8: Earlypay has diverse funding with headroom but room for improvement
Earlypay has diverse funding with headroom but there is room for improvement For personal use only Facility Size Cost of Funds Interest rate hedged1 $292m Funds in Use out of available $470m facility limits Invoice Finance Invoice & Trade Warehouses are linked to a short term variable market rate (B
Slide 9: Focused, Profitable and Capital Efficient Growth
Focused, Profitable and Capital Efficient Growth by leveraging our competitive advantage For personal use only Allocating capital and resources to Invoice Finance to play to our strengths and maximise Return on Equity Invoice finance is an attractive and underutilised form of borrowing for SMEs that
Slide 10: FY23 Priorities
Focused, Profitable and Capital Efficient Growth by leveraging our competitive advantage For personal use only FY23 Priorities Warehouse funding enhancements Project is underway – expected completion Q4 in FY23 Significant cost savings to improve Net Interest Margin across all products More efficien
Slide 11: FY23 outlook: strong organic growth offset by higher provisioning and funding costs
Strong organic growth momentum, offset by higher provisioning and funding costs in FY23. Significant funding improvements for FY24+ For personal use only FY23 NPBTA expected to be flat on FY22, reflecting: Strong organic growth in Funds in Use (FIU) for Invoice Finance - Based on FY23 YTD (Oct), ann
Slide 12: Appendix
For personal use only Appendix
Slide 13: Positive net operating cash flow of $12.7m for FY22
Generated positive net operating cash flow of $12.7m for FY22 For personal use only Receipts reflects administration and service Non-Interest Income $m FY21 FY22 charged to Invoice and Trade Finance clients Receipts 27.7 28.8 Interest received from customer 21.3 27.2 Interest is received on funds dr
Slide 14: Earlypay Group P&L
Earlypay Group For personal use only P&L (Group) 1H20 2H20 FY20 1H21 2H21 FY21 1H22 2H22 FY22 Interest Income 8.7 10.7 19.3 9.5 10.9 20.4 12.8 14.2 27.0 Interest Expense (4.4) (5.7) (10.1) (5.1) (4.4) (9.5) (4.1) (5.7) (9.7) Net Interest Revenue 4.3 5.0 9.3 4.4 6.5 10.9 8.7 8.5 17.3 Mgmt / Admin Fee
Slide 15: Segment: Invoice Finance
Segment: Invoice Finance For personal use only Invoice Finance 1H20 2H20 FY20 1H21 2H21 FY21 1H22 2H22 FY22 Period End Funds in Use 140 84 84 108 122 122 170 185 185 Average Funds in Use 124 110 117 86 115 100 144 179 162 TTV ($m) 910 799 1,710 887 977 1,864 1,198 1,217 2,415 Interest Income 5.8 5.1
Slide 16: Segment: Equipment Finance
Segment: Equipment Finance For personal use only Equipment Finance 1H20 2H20 FY20 1H21 2H21 FY21 1H22 2H22 FY22 Period End Funds In Use 115 97 97 91 95 95 108 133 133 Average Funds In Use 51 105 78 93 99 93 99 117 108 Loan Originations 22 8 30 18 25 44 44 55 99 Interest Income 2.9 5.6 8.5 5.3 5.1 10
Slide 17: Business Drivers map
Business Drivers map For personal use only Average Net Revenue Margin Net Revenue Funds In Use Equipment Net Interest Non-Interest Invoice Finance Finance Margin Margin Operating Cost to Income Ratio Expenses Interest Revenue Cost of Funding Credit Provisions NPBT 17
Slide 18: Important notice and disclaimer
This presentation (”this Presentation”) has been prepared by Earlypay Limited [ACN 098 952 277] (“EPY” or the “Company”) and is dated 17th November 2022. For personal use only Summary information This presentation contains summary information about the current activities of EPY as at the date of thi