Plenti Group Ltd. · ASX:PLT
Plenti — H1 2024 Earnings Presentation
30 slides from Plenti's earnings presentation, Nov 28, 2023
Slide 1: 1H24 Results Presentation
ASX RELEASE Plenti Group Limited (ASX:PLT) Authorised for release by the Board of Plenti Group Limited For more information please contact: Daniel Foggo, CEO, shareholders@plenti.com.au Miles Drury, CFO, shareholders@plenti.com.au 1H24 Results Presentation Six months to 30 September 2023
Slide 2: Plenti overview
Plenti overview Plenti is a technology-led lender Here to make a positive difference • We are Australia’s largest fintech Our purpose consumer lender To bring our customers’ big ideas to life • We are Cash NPAT profitable • We deliver market leading customer Our vision experiences via our proprietar
Slide 3: Half-year highlights
Half-year highlights We delivered strong growth, profitability and differentiated credit results Highlights Originations Closing loan portfolio Revenue Pro forma Cash NPAT $624m $2.0bn $97m $1.5m +12% pcp +29% pcp +52% pcp up 10% on pcp Cost-to-income Closing 90+ arrears 29% 45bps Demonstrated diffe
Slide 4: Growth
Growth We extended our track record Loan portfolio ($bn) for driving loan portfolio growth 2.0 66% 3 year Total portfolio growth pcp CAGR 29% 1.5 Auto loan book >$1.1bn 1.0 Cumulative lending since launch >$4bn 0.5 0.0 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 4
Slide 5: Growing customer base
Growing customer base We continued to expand our high quality customer base Borrowers with loan outstanding Total customers - all time The Plenti borrower 100 200 Thousands • Average loan balance ~$20,000 Thousands 30% growth 28% growth on pcp 175 on pcp • 67% homeowners • 832 weighted average credi
Slide 6: Strategic enablers
Strategic enablers We further extended our core strengths and advanced our strategic priorities Technology leadership Credit excellence Diversification Team engagement • Meaningful investment • Effective use of data • Broad set of products • Engaged, determined and high • Leading customer experience
Slide 7: Technology leadership
Technology leadership Our technology advancements focused on enhancing customer experience, efficiency and scalability GreenConnect platform advancement Enhanced document automation Increased decisioning automation 1. Customer 1. Growth 1. Growth experience 2. Credit performance 2. Impact 2. Efficie
Slide 8: Credit excellence
Credit excellence We continued to demonstrate our differentiated credit performance Annualised net loss rate1 Average borrower credit score2 90+ days arrears3 3.0% 900 1.0% Decline supported by benign COVID 2.5% period and shift 0.8% towards secured 800 automotive lending 2.0% 0.6% Australian credit
Slide 9: Diversification
Diversification We continued to advance the broadening of our products, distribution and funding ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 Benefits • Diversity of products, distribution and Products funding provides many on-going benefits: Unsecured personal loan Secured personal loan – Higher sustain
Slide 10: Product area review
Plenti Product area review
Slide 11: Automotive finance
Automotive finance We achieved strong growth in our prime automotive loan book 1H24 highlights Auto loan book ($m) Automotive lending opportunity • Optimised loan origination levels versus loan $35bn+ 1,200 margins in a competitive market impacted by frequent rate movements annual lending2 26% growt
Slide 12: Renewable finance
Renewable finance We further accelerated renewable finance growth, supported by the adoption of our unique GreenConnect platform 1H24 highlights Renewable energy loan book ($m) Renewable energy opportunity • Significant expansion of GreenConnect platform, 310k 250 increasing market impact – 7 virtua
Slide 13: Personal lending
Personal lending We continued to grow our personal loan book while advancing our direct-to-consumer product and capabilities 1H24 highlights Personal loan book ($m) Personal lending market opportunity • Record originations in 1Q,but softened in 2Q, $12bn+ primarily reflecting refinements to Plenti’s
Slide 14: Financial results
Plenti Financial results
Slide 15: Financial highlights
Financial highlights We continued to grow loan book and revenue, with demonstrated operating leverage driving increased Cash NPAT Loan portfolio • 32% increase in average portfolio on pcp to $1.89bn Growth Revenue • 52% revenue growth to $96.8m Cash NPAT • Cash NPAT of $1.5m despite higher credit lo
Slide 16: Margin performance
Margin performance We maintained stable portfolio margins, despite further material increases in market funding costs in 1Q24 Effective yield (%)1 • Net interest margin (NIM) in 1H24 was 5.2%, with an average effective yield of 10.2% and funding cost of 4.9% – Stable on 2H23 portfolio NIM of 5.2% de
Slide 17: Credit performance
Credit performance We continued to demonstrate the prime credit characteristics of our loan portfolio Realised loan impairment expense (%) • Credit losses result for 1H24 was strong at 0.99% – As communicated through FY22 and FY23, we had anticipated a movement upward in loss rate in FY24 as pandemi
Slide 18: Profit & loss
Profit & loss We drove Cash NPAT of $1.5m in the half, a 10% increase on pcp • Cash NPAT increased 10% on pcp to $1.5m $m 1H23 1H24 Change • Key drivers of this result were: Interest revenue 63.2 95.9 52% – Strong growth in revenue, up 52% as a result of loan book growth and Other income 0.6 0.9 42%
Slide 19: Funding overview
Funding overview We continued to build-out our diverse and cost-efficient funding Loan portfolio funding ($m)1 • Plenti extended its track record as a regular issuer in debt capital markets – $406m Auto ABS completed June 2023 – Over $1.7bn in total ABS issuance to date 161 Warehouse headroom – Cont
Slide 20: Our ambitions
Plenti Our ambitions
Slide 21: FY24 objectives
FY24 objectives We remain focused on delivering scale and profitability FY24 objectives • Drive growth in loan originations and loan portfolio Growth • Grow revenue to over $200 million Profitability • Deliver full year Cash NPAT growth, skewed towards 2H24 • Reduce cost-to-income ratio to <30% Effi
Slide 22: Annexures
Plenti Annexures
Slide 23: Cash flow
Cash flow Reported operating cashflow for 1H24 was $18m • Total statutory cash flow from operating activities in the period was $m 1H23 1H24 $18.0m (1H23: inflow of $6.6m) Operating cash flow • Cash inflow from operating activities excluding the Provision Fund was $17.3m (1H23: outflow of $5.8m) Int
Slide 24: Balance sheet
Balance sheet Net assets increased to $54.8m driven by loan hedging derivative gains in the period • Corporate cash position at 30 September 2023 of $40.1m $m 31-Mar-23 30-Sep-23 – $17.7m relates to loan collection accounts which are not available for Assets corporate activities (31 March 2023: $10.
Slide 25: Half-on-half summary P&L
Half-on-half summary P&L 1H22 / 2H22 / 1H23 / 2H23 / 1H24 / $m, 6 month periods 1H211 2H21 1H22 2H22 1H23 2H23 1H24 2H21 1H22 2H22 1H23 2H23 Interest revenue 23.9 26.8 36.6 50.6 63.2 78.9 95.9 37% 38% 25% 25% 22% Other income 2.1 0.4 0.6 0.6 0.6 0.8 0.9 65% 10% (7)% 31% 9% Total revenue pre transact
Slide 26: Key metrics
Key metrics $m 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 FY20 FY21 FY22 FY23 Loan originations ($m) 125.2 161.3 167.0 303.3 472.8 629.5 558.2 572.8 624.1 286.5 470.3 1,102.3 1,131.0 Average term of new originations 53.7 55.9 62.5 61.8 64.8 65.0 64.6 64.2 64.4 52.7 62.1 64.9 64.4 (months) Closing
Slide 27: Lending vertical metrics
Lending vertical metrics $m 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 FY20 FY21 FY22 FY23 Loan originations 125.2 161.3 167.0 303.3 472.8 629.5 558.2 572.8 624.1 286.5 470.3 1,102.3 1,131.0 Automotive 19.2 38.4 81.1 149.7 257.7 381.6 302.3 269.3 327.6 57.6 230.8 639.3 571.7 Renewable energy 19.4
Slide 28: NPAT to Cash NPAT reconciliation
NPAT to Cash NPAT reconciliation $m 1H21 2H21 1H22 2H22 1H23 2H23 1H24 FY21 FY22 FY23 NPAT (pro forma) (3.4) (8.5) (7.5) 1.2 2.6 (16.2) 0.6 (11.9) (6.3) (13.6) Add: movement in provision for expected 1.0 2.2 3.6 3.8 4.2 10.1 1.5 3.1 7.4 14.3 losses Add: share-based payments 0.6 0.9 1.2 1.6 1.4 1.9 1
Slide 29: Plenti
Plenti
Slide 30: Disclaimer and important notices
Disclaimer and important notices No recommendation, offer, invitation or advice The material in this presentation is general background information about Plenti Group Limited (the Company) and its subsidiaries, and is current at the date of the presentation, 28 November 2023. The information in this