Moneyme Ltd. · ASX:MME
Moneyme — FY2020 Earnings Presentation
42 slides from Moneyme's earnings presentation, Aug 25, 2020
Slide 1: FY20 Results Presentation
For personal use only FY20 RESULTS PRESENTATION 25 AUGUST 2020 moneyme.com.au This presentation is authorised for release on ASX by the Board of MoneyMe Limited
Slide 2: Executive summary
For personal use only Executive summary FY20 product highlights Page 8 Financial update Page 13 COVID-19 strategy Page 22 Growth & strategy update Page 26 Appendix Page 34 Page 1
Slide 3: FY20 performance highlights
FY20 performance highlights 1 For personal use only Revenue up 49% YoY Record EBITDA Product innovation Revenue of $47.7m exceeds prospectus Pro forma EBITDA of $3.2m beats Launching new products and channels across forecast by 4% prospectus forecast by over 10% ListReady, RentReady and MoneyMe+ $17
Slide 4: Our mission
For personal use only OUR MISSION To be the favourite credit partner for Generation Now Page 3
Slide 5: Leading customer experience
Leading customer experience For personal use only 1. Customer satisfaction data as at 30 June 2020 Page 4
Slide 6: #1 Google Ranking and key customer metrics
#1 Google Ranking Page 1 ranking for key search terms 93% 35% >90% For personal use only Payment Customer Calls answered automation repeat rate in 9 seconds 1,100,000+ website users 240,000+ $6,100 Products distributed since inception Average funded value Mobile app available for iOS and Android Art
Slide 7: Our formula for success
Our formula for success For personal use only We have what it takes for tomorrow’s opportunities 1 2 10 Capabilities Product innovation 10x revenue + = 10x profit Proprietary tech platform with Launched Freestyle high automation and product The replacement for credit cards flexibility Launched ListR
Slide 8: Innovation is powering growth and value
Innovation is powering growth and value For personal use only The business model is well positioned through COVID-19 and primed for opportunity Revenue and balance sheet growth Building sustainable and diversified contracted revenue growth, calibrated for COVID-19 risk, and increasing customer lifet
Slide 9: Executive summary
For personal use only Executive summary Page 1 FY20 products highlights Financial update Page 13 COVID-19 update Page 22 Growth & strategy update Page 26 Appendix Page 34 Page 8
Slide 10: Loan portfolio overview
Loan portfolio overview 1 For personal use only Closing loan book by product $485m $1.8b 24 FY20 loan book $133.6m ListReady mth 2% ListReady 2% origination since Credit demand Average loan term inception ($179m in in the last 12 months last 12 months) FY19 loan book Freestyle $87.5m 39% Freestyle 2
Slide 11: Personal loan highlights
Personal loan highlights 1 For personal use only 5-minute application with high powered tech to decision customers quickly LOAN BOOK REPRESENTS $79m 59% of gross loan book REPRESENTS AVERAGE LOAN VALUE 53% of originations $5,200 PRODUCT OFFER Up to $50,000 1. Statistics as at 30 June 2020 Page 10
Slide 12: Freestyle product highlights
Freestyle product highlights 1 For personal use only The credit card replacement with real time fixed repayments LOAN BOOK REPRESENTS $52m 39% of gross loan book REPRESENTS AVERAGE CUSTOMER ADVANCE 44% of originations $7,900 LAUNCHED VIRTUAL MASTERCARD WITH 55-days interest free Tap ‘n’ Pay and onli
Slide 13: ListReady highlights
ListReady highlights 1 For personal use only To be the only choice for listing your house AGENCIES SIGNED UP AGENTS SIGNED UP ~350 ~2,000 CUSTOMERS FUNDED ORIGINATIONS ~1,300 $6m+ PRODUCT OFFER Up to $35,000 1. Statistics as at 30 June 2020 Page 12
Slide 14: Financial update
For personal use only Executive summary Page 1 FY20 product highlights Page 8 Financial update COVID-19 update Page 22 Growth & strategy update Page 26 Appendix Page 34 Page 13
Slide 15: Strong FY20 vs Prospectus
Strong FY20 vs Prospectus 1 For personal use only Revenue ($m) Pro forma EBITDA ($m) Statutory NPAT ($m) 47.7 1.3 3.2 45.8 4.0% 10.5% 2.9 775.5% (0.2) FY20 (P) FY20 (A) FY20 (P) FY20 (A) FY20 (P) FY20 (A) Gross loan book ($m) Total originations ($m) Loan provision to gross loan book % 178.5 141.9 9.
Slide 16: Impressive FY20 vs Prior Year
Impressive FY20 vs Prior Year 1 For personal use only Revenue ($m) Pro forma EBITDA ($m) Statutory NPAT ($m) 47.7 3.2 1.3 31.9 49.5% 511.6% 300.3% 0.3 (0.8) FY19 (A) FY20 (A) FY19 (A) FY20 (A) FY19 (A) FY20 (A) Gross loan book ($m) Total originations ($m) Loan provision to gross loan book % 133.6 10
Slide 17: Key operating metrics
Key operating metrics For personal use only FY18 FY19 FY20 FY20 Indicator1 Actuals Actuals Actuals Prospectus Income Total revenue ($m) 24.1 31.9 47.7 45.8 Above plan Excellent operational performance reflects the Total revenue growth (%) 51.3% 32.6% 49.5% 43.7% Above plan strengths of the busines
Slide 18: FY20 EBITDA
FY20 EBITDA 10.5% For personal use only Total revenue and operating expenses in line with forecast P&L pro forma FY20(A) FY20(P) Var.$ Var.% ($m) Actuals Prospectus Higher EBITDA than forecast Interest income 43.0 40.3 2.7 6.7% Other income 4.7 5.5 (0.9) (15.6%) 1. Funding costs are in line with pro
Slide 19: Record loan book growth
Record loan book growth 53% For personal use only Gross loan book ($m) 133.6 Loan book growth YoY 87.5 52.7% FY20 gross loan book at $133.6m, representing 52.7% year on year increase from FY19 Total originations of $178.5m achieved in FY20, exceeding prospectus forecast by over $10m FY19 (A) FY2
Slide 20: Provision for expected credit loss
Provision for expected credit loss 1 8.1% For personal use only FY20 vs Prior Year 10.4% 9.6% Reduction in loan provision rate 2 (8.1%) Loan provision rate reduced by 8.1% from 10.4% in FY19 to 9.6% in FY20 The Group recorded lower than forecast loan provision rate of 9.6% compared to 9.8% forec
Slide 21: Strong credit performance
Strong credit performance 93% For personal use only Static loss rate 1 9.9% 9.2% Payments require no human intervention 6.3% 6.6% 6.5% 4.7% MoneyMe’s Horizon platform and business processes continue to deliver strong credit performance 2.5% Static loss rates continue to improve over time, reflec
Slide 22: Continuing strong loan unit economics
Continuing strong loan unit economics 70% For personal use only Revenue and Office Operating Expenses 1 47.7 50.0 55.0% 50.5% 45.0 50.0% 40.0 35.0 41.5% 31.9 45.0% Average revenue per loan increase YoY 30.0 40.0% 25.0 33.6% 20.0 38.8% 35.0% Continual improvement in cost efficiency evident in year
Slide 23: COVID-19 update
For personal use only Executive summary Page 1 FY20 product highlights Page 8 Financial update Page 13 COVID-19 update Growth & strategy update Page 26 Appendix Page 34 Page 22
Slide 24: MoneyMe's core structure is its defence
MoneyMe’s core structure is its defence For personal use only Agile business model Technology-first Low fixed cost business Quick adaption to retail merchant channel opportunities emerged from buy now, pay Strong diversification across employment industries, later sector growth geographies, em
Slide 25: Health check: strong and stable
Health check: strong and stable For personal use only MoneyMe’s agile business model has been tested and its credit decision making, diverse portfolio characteristics and quick response to changes have been instrumental in minimising the impacts of COVID-19 COVID-19 Payment Deferral 2000 COVID-19 Sy
Slide 26: From COVID-19 to opportunity
From COVID-19 to opportunity For personal use only Substantial leverage to combat an Opportunities to leverage escalating COVID-19 environment post COVID-19 Ready to capture structural changes as customers 1 move online, suited to MoneyMe’s business model The credit model has room to move and effect
Slide 27: Growth & strategy update
For personal use only Executive summary Page 1 FY20 product highlights Page 8 Financial update Page 13 COVID-19 update Page 22 Growth & strategy update Appendix Page 34 Page 26
Slide 28: MoneyMe's evolving product ecosystem
MoneyMe’s evolving product ecosystem For personal use only For MORE THINGS in life Real estate Retail Secured Revolving Finance Credit Education & Training D2C Medical + B2B2C Instalment Balloon Loans Payments Health & beauty Automotive Page 27
Slide 29: Unlocking the path to accelerated growth
Unlocking the path to accelerated growth For personal use only And more… Personal loans FY21 FY20 FY14 FY19 Page 28
Slide 30: The innovative pay later solution for landlords
For personal use only The innovative pay later solution for landlords Up to $15,000 to cover investment property expenses Fast application What it covers Hassle-free, minutes to Maintenance, general complete with a fast outcome expenses, rental shortfall, property improvements Landlord benefits Prop
Slide 31: Shop now & pay later interest-free
For personal use only Shop now & pay later interest-free Market opportunities $34.3 billion domestic online retail market 1 Product features 6-48 month 5.2 million households shopped interest-free period online 2 $1,000 to $50,000 available finance range $320b+ credit card and alternative finance ma
Slide 32: Proposed bank warehouse facility 2020
Proposed bank warehouse facility 2020 Market For personal use only Penetration Proposed Series 2020 Operating Customer Product Leverage Acquisition Expansion Class A Enables competitive Significant restructure Bank Funder of capital costs delivers Enables expansion into sectors with pricing appealin
Slide 33: Launch new products in new verticals
Launch new products in new verticals with substantial scale opportunity For personal use only We expect that FY21 will Pricing that offers customers continue to deliver growth market-leading value and profit, expand our customer base, leverage our new products and launch FY21 New bank wholesale fund
Slide 34: Questions
For personal use only Questions Page 33
Slide 35: Appendix
For personal use only Executive summary Page 1 FY20 product highlights Page 8 Financial update Page 13 COVID-19 update Page 22 Growth & strategy update Page 26 Appendix Page 34
Slide 36: Pro forma FY20 vs prospectus and prior year
Pro forma FY20 vs prospectus and prior year For personal use only Strong year on year growth achieved and prospectus forecast met P&L pro forma FY20 FY19 YoY% FY20 FY20 Var.% ($m) Actuals Actuals Actuals Prospectus Originations 178.5 116.9 52.8% 178.5 168.2 6.1% Total revenue 47.7 31.9 49.5% 47.7 45
Slide 37: Statutory and pro forma statement of profit or loss
Statutory and pro forma statement of profit or loss For personal use only Statutory actual Pro forma actual FY19 FY20 $ millions FY19 FY20 27.5 43.0 Loan interest income 27.5 43.0 4.3 4.7 Other income 4.3 4.7 31.9 47.7 Total Revenue 31.9 47.7 (8.4) (12.5) Funding costs (8.4) (12.5) (3.4) (5.0) Sales
Slide 38: Pro forma adjustments to statutory historical profit or loss
Pro forma adjustments to statutory historical profit or loss For personal use only $ millions FY19 FY20 Statutory NPAT 0.3 1.3 1 Public company costs (0.9) (0.3) 2 Executive remuneration (0.9) (0.0) 3 Offer costs – 2.4 4 Corporate interest 0.1 0.1 5 Impact of AASB 16 0.0 – Total pro forma adjustment
Slide 39: Statutory statement of financial position
Statutory statement of financial position For personal use only $ millions 30 June 2019 30 June 2020 Cash and cash equivalents 6.1 35.4 Trade receivables 0.5 1.0 Net loan receivables 78.3 120.8 Current tax asset 0.0 - Deferred tax asset 0.8 4.3 Property, plant and equipment 0.1 1.1 Right of use asse
Slide 40: Statutory net cash flows
Statutory net cash flows For personal use only $ millions 30 June 2019 30 June 2020 Receipts from customers 31.8 46.9 Payments to suppliers and employees (10.8) (16.0) Net interest paid (7.3) (11.3) Income tax (paid) / received (0.0) (0.0) Net cash inflows from operating activities 13.7 19.6 Payment
Slide 41: Disclaimer & Important Notice
Disclaimer & Important Notice For personal use only The information contained in this presentation has been prepared by MoneyMe Limited ACN 636 747 414 (Company). The information in this presentation does not purport to be complete or to provide all information that an investor should consider when
Slide 42: www.moneyme.com.au
For personal use only www.moneyme.com.au