Slide 1: H1 FY19 Results Presentation
H 1 F Y 1 9 R E S U LT S P R E S E N TAT I O N 25 February 2019 Scott Baldwin Siva Subramani Managing Director Chief Financial Officer
Slide 2: Introduction
Introduction Money3 is an Automotive Loans Specialist. Since inception the business has serviced 800,000 customers with over $1b in loans Money3 is an Responsible lending With $100m+ available Through exceptional Automotive Loans drives and improves in deployable capital, customer service we special
Slide 3: H1 FY19 Highlights
H1 FY19 Highlights Sale and exit of SACC (Branch and Online) lending and Go Car Finance acquisition provides business additional capital to be deployed into Automotive Loan Book and geographical growth Acquisition of Go Car Finance in NZ adds NZ$50m to Automotive Loan Book and 14.3% 14.3% increase i
Slide 4: H1 FY19 Financial results
H1 FY19 Financial results Group Financial Results Amounts in $m unless otherwise stated H1 FY19 H1 FY18 Mvt % 12.2% Increase in Broker division revenue to $40.4m Revenue 66.0 60.3 9.3% Expenses (34.9) (32.9) 6.1% 13.2% EBITDA 31.1 27.4 13.2% Increase in Group EBITDA EBITDA as % of revenue 47.1% 45.5
Slide 5: H1 FY19 Operating cashflows
H1 FY19 Operating cashflows SECURED LOANS 24.4% Increase in Broker division Group Operating Cashflows H1 H1 cash collected ($92.8m) on H1 pcp Mvt % Amounts in $m unless otherwise stated FY19 FY18 Receipts from customers 66.3 58.6 13.1% 30.0% Increase in Broker division Payments to suppliers and loan
Slide 6: H1 FY19 Cash conversion metrics
H1 FY19 Cash conversion metrics Cash Conversion Metrics H1 H1 Amounts in $m unless otherwise stated FY19 FY18 Income statement NPAT 17.5 15.4 Add: Impairment expense 11.9 10.1 Cash NPAT 29.4 25.5 Cash flow statement Net cash flows from operating 29.6 20.7 activities (excluding loans advanced) Add: C
Slide 7: Quality remains key while growing Automotive Loan Book
Quality remains key while growing Automotive Loan Book 14.3% increase in Gross Loan Book to $351.9 million (in H1 FY19). Gross Loan Book is the key leading indicator of future revenue. SALE AND EXIT OF BRANCH AND ONLINE FOR ~$46M, CAPITAL TO BE REDEPLOYED INTO AUTOMOTIVE LOANS GROSS LOAN BOOK ($M) 4
Slide 8: SACC exit
SACC exit Money3 has entered into an agreement to sell the assets of the Branch and Online distribution channels that support SACC (pay day) lending The sale will yield in excess of ~$46m, $35m up front and the remainder over 6 months. Sale includes corporate entities operating SACC lending Post tra
Slide 9: Dividend
Dividend Money3 to Money3 is DRP with a 2.5% pay 5c fully intending to pay a discount franked for fully franked 10c interim FY19 dividend for FY19 and FY20 9
Slide 10: Money3 enters NZ market with acquisition of Go Car Finance
Money3 enters NZ market with acquisition of Go Car Finance 10
Slide 11: Go Car Finance
Go Car Finance Go Car Finance Over NZ$50m of Go Car Finance has an With 4m cars in New acquisition provides existing receivables existing financing Zealand and Go Car’s Money3 with facility with significant strong brand, there is geographical expansion, capacity at a leading significant growth marke
Slide 12: Automotive market opportunity
Automotive market opportunity Australian automotive market Money3 Opportunity Huge Market Money3 market share • $80bn+ 1 of annual vehicle sales • 1 out of 550 registered vehicles in $20bn • $20bn 2 annual market for consumer Australia are financed by Money3 vehicle financing • Money3 estimates it f
Slide 13: NZ automotive market opportunity
NZ automotive market opportunity New Zealand automotive market Go Car Opportunity High vehicle ownership Untapped Market • Fourth highest rate of vehicle ownership globally: 4.3m • Low-credit rating auto finance market relatively untapped registered vehicles 2 from a population of 4.9m3 (5%1 of lend
Slide 14: Summary
Summary SACC EXITED AUTOMOTIVE GEOGRAPHIC BOARD AND QUALITY LOANS SPECIALIST EXPANSION MANAGEMENT CONTROL Money3 has sold the Money3 specialist Acquisition of New Money3 has a stable, Management’s ability Brand and Online capabilities and focus Zealand business independent and to successful grow its
Slide 15: Strategy and Outlook
Strategy and Outlook SPECIALIST FUNDING REGULATORY AUTO LENDER • Management is focused on • $100m+ of total available • Increasing regulatory headwinds Automotive Loans, pursuing headroom and greater levels of conservatism strong growth and maintaining in mainstream lending for personal • $50m of un
Slide 16: Appendix – Corporate Information
Appendix 1 – Corporate Information CAPITAL STRUCTURE Shares on issue 180.2 million 4 $2.50 Share Price (22nd February 2019) $1.94 3.5 $2.00 3 Market capitalisation $349.6million Volume (m) 2.5 $1.50 2 Cash at 31 January 2019 $23.7 million 1.5 $1.00 Financing facility available $50.0 million 1 $0.50
Slide 17: Disclaimer
Disclaimer The content of this presentation has been prepared You should decide whether to contact your financial by Money3 Corporation Limited (the Company) for adviser so a full and complete analysis can be made in general information purposes only. respect to your personal situation. Any recommen
Slide 18: Scott Baldwin Managing Director
Scott Baldwin Siva Subramani Managing Director Chief Financial Officer s.baldwin@money3.com.au s.subramani@money3.com.au