Earlypay Limited · ASX:EPY
Earlypay — Investor Presentation (October 2020)
18 slides from Earlypay's investor presentation, Oct 27, 2020
Slide 1: Rebrand & Trading Update
CML Group (ASX:CGR) to be rebranded Earlypay Rebrand & Trading Update October 2020 1
Slide 2: Vision Statement
Vision Statement Business finance made simple. At Earlypay, our mission is to provide Australian businesses with the cash flow they need to grow. An 'e' for Earlypay Loops for Happy and loyal connection customers 2
Slide 3: Vision Statement
Vision Statement When we work with an Aussie business, we back their business with everything they need. We invest our professional lives in our customer’s success. We go beyond innovation to find solutions that tackle tomorrow’s problems. 3
Slide 4: Core Values
Core Values We're evolving. To exceed the expectations of our clients, we continually adapt to the latest technology and business practices. We're problem solvers. Our experience and relentless curiosity drives us to find the best solutions for our clients and partners. We back businesses. Supportin
Slide 5: CML Snapshot
CML Snapshot CML is an ASX listed (ASX: CGR) <0.1% 3000+ provider of secured finance Default rate Servicing 3000+ SMEs (0.1%+ of total SMEs) to SME businesses in the form of Invoice and Equipment Finance. 100+ Employees in offices New technology platform nationally to drive growth $6bn+ Invoices Fun
Slide 6: Journey
Journey In 2012 CML pivoted from recruitment to secured SME lending and has grown strongly both organically and by acquisitions. Business Acquisitions Business Acquisitions Rebranded Business launched Rebranded Tech Acquisition 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Transaction Volume $0
Slide 7: Industry
Industry Industry worth $120bn p.a. & CML addressable market has increased by 140% Addressable Market is 2.4m SMEs Total secured lending market CML currently services 3000+ ~$120bn per annum (or just over 0.1% of the market) With the relaunch of Earlypay Invoice Finance technology platform, CML has
Slide 8: Digital Transformation
Digital Transformation Client acquisition Reduced on boarding of clients from 2 weeks to 24 hours Following the acquisition in August of online invoice finance platform, Skippr, CML has worked quickly to redesign business processes to leverage automation and access to data. This has facilitated fast
Slide 9: Digital Transformation: Client acquisition
Digital Transformation Client acquisition Key Processes Previous Comments Advantage Assessment Manual Automated Easy referral process for brokers with application via a link, and all data required for credit • Expanded broker distribution decisioning automatically extracted from the client’s cloud a
Slide 10: Digital Transformation: Client management
Digital Transformation Client management Operational efficiencies to drive profit margin Key Processes Previous Comments Advantage Funding Manual Automated Earlypay app facilitates fast & flexible funding for clients; • Reduced processing time • The 'live ledger’ updates funding availability as invo
Slide 11: Distribution
Distribution Expanded distribution with automation enabling CML to expand addressable market by 140% Transaction size Brokers Direct CML now offers facilities to SME clients from Brokers generate 50%+ of CML's new business CML has developed a direct channel to its target $20k (previously $200k), to
Slide 12: Consolidated P&L
Consolidated P&L Average ROE 20%+ Underlying TTV FY16 406m FY17 1001m FY18 1328m FY19 1579m FY20 1710m Revenue 27.1m 40.0m 46.7m 47.7m 47.5m EBITDA margin in excess of 40% EBITDA NPATA 5.3m 1.0m 13.1m 3.8m 17.6m 6.5m 20.4m 9.5m 19.8m 8.4m Dividends paid every year since listing EPS DPS ROE 0.98 1.00
Slide 13: FY20 Divisional Performance
CML Group FY20 Divisional Performance Invoice Finance Equipment Finance • FY20 revenue was adversely affected by COVID-19 • Growth in loan book from $19m to $125m driven by Classic Funding acquisition in Nov-19 (ie only 8-month • Temporary margin pressure due to reduced interest income as clients dr
Slide 14: Funding Costs Risk Management
Competitive Advantage Funding Costs Risk Management CML now has average cost of funding less than 6% and has $100m+ The strength of CML’s risk mitigation procedures is demonstrated by realised bad debts of headroom in facilities leaving ample room for growth less than 0.1% of invoices financed over
Slide 15: FY21 Trading Update YTD
FY21Trading Update YTD Volumes Improving & Lower Funding Costs Invoice Finance Equipment Finance Funding Loan portfolio has returned to growth, with CML is nearing completion of refinance of new origination volumes above pre-covid mezzanine funding across its Equipment levels vs our total loan book
Slide 16: Growth Opportunities
Growth Opportunities The economic operating environment looks favourable Industry Tailwinds Operational efficiencies Sales & Marketing Strategy SME lending expected to grow strongly as With the relaunch of earlypay, the addressable market of CML continues to expand its sales team Government stimulus
Slide 17: Disclaimer
Other Disclaimer This presentation (“this Presentation”) has been prepared by CML Group Limited [ACN 098 952 277] (“CML” or the “Company”) and is dated October 2020. Summary information This Presentation contains summary information about the current activities of CML as at the date of this Presenta
Slide 18: earlypay
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