Wisr Ltd. · ASX:WZR
Wisr — H1 FY2020 Earnings Presentation
33 slides from Wisr's earnings presentation, Feb 27, 2020
Slide 1: FY20 Half Year Results Presentation
For personal use only FY20 Half Year Results Presentation. Presentation FEBRUARY • 2020 1
Slide 2: Table of Contents
Table of Contents. For personal use only 1 VISION , OPPORTUNITY AND KEY NUMBERS 2 B U S I N E S S U P DAT E A N D F I N A N C I A L P E R F O R M A N C E 3 H1FY20 FINANCIALS 4 GROWTH AND OUTLOOK 5 APPENDIX 22
Slide 3: Vision, Opportunity and Key Numbers
1. For personal use only Vision, Opportunity and Key Numbers. 33
Slide 4: Note from the CEO
Note from the CEO. For personal use only H1FY20 has been the most impactful and pivotal half of the Company’s history. With previous years spent building a strong foundation of market-leading technology and proving our innovative lending model, in this half we reached a turning point in the Company’
Slide 5: Key numbers
Key numbers. For personal use only Delivering on milestones, keeping promises. REVENUE GROWTH L O A N O R I G I N AT I O N S WISR ECOSYSTEM NET PROMOTER SCORES UP 83% UP 90% UP 104% 125.7K +66 OVERALL $2.2M $54.9M 61.5K +68 +66 +66 $1.2M $28.8M H1FY19 H1FY20 H1FY19 H1FY20 AT 30 JUN 19 AT 31 DEC 19 C
Slide 6: Business evolution
Business evolution. For personal use only Model proven - now scaling. PHASE 3: FY20+ “ S C A L I N G T H E C O M PA N Y ” • Diversified funding structure that will P H A S E 2: FY19 significantly increase margin • Activate B2B2C channels with strategic “ C R EAT ING T HE NEO-LENDER partners to reach
Slide 7: Industry recognition for reinventing consumer lending
Industry recognition for reinventing consumer lending. For personal use only 77
Slide 8: Total addressable markets
Total addressable markets. For personal use only Wisr has a long runway of future growth in large & rapidly transforming markets. The consumer lending market 4.4 million applications for consumer Over 3 million personal loan applications size is $110 billion. credit expected in the next six months.
Slide 9: Business Update and Financial Performance
2. For personal use only Business Update and Financial Performance. 99
Slide 10: Accelerating, high-quality loan book
Accelerating, high-quality loan book. For personal use only Loan originations ($M). Loan book ($M). Total loan originations (cumulative, to scale) $163.8M $114.0M $31.6M $1.8M Quarterly loan originations (number) $132.0M $22.6M $91.8M $23.2M $108.8M $21.9M $75.6M $86.9M $18.8M $59.4M $68.1M $16.9M $
Slide 11: Winning Australia's best customers
Winning Australia’s best customers. For personal use only Market leading, consistent credit quality lead indicators. AV E R A G E E Q U I FA X 1 . 1 C R E D I T S C O R E S 700 PERSONAL LOAN ENQUIRIES – 680 C U S T O M E R S C O R E C O M PA R I S O N 660 Based on Equifax credit score comparisons fo
Slide 12: Improving credit quality
Improving credit quality. For personal use only Credit quality of Wisr’s loan book remains strong. 4.00% PRIME CUSTOMER BASE 3.50% Wisr is continuing to automate, simplify and optimise its credit policy and underwriting process. Opportunities have 3.00% been identified to drive growth while maintain
Slide 13: Core profitability & investing for growth
Core profitability & investing for growth. For personal use only H 1 F Y 2 0 P & L WAT E R FA L L CORE BUSINESS $6,000,000 1. Additional Net Revenue $4,000,000 If new model in operation for whole of H1FY20. Assumptions: $95m average loan book and 7.0%+ p.a. net interest margin 1. $2,000,000 Core Ope
Slide 14: Significantly improved unit economics
Significantly improved unit economics. For personal use only Illustrative customer value and revenue model. MARGIN c. 18% MARGIN c. 57% $12,000 NEW MODEL ASSUMPTIONS (EXAMPLE) $10,000 • Total loan revenue: $10.2K OLD WISR REVENUE • Loan size: $30,000 $8,000 • Tenor: 60 months $6,000 NEW WISR REVENUE
Slide 15: Scalable, profitable model live
Scalable, profitable model live. For personal use only Significantly improved margin in place for last six weeks of H1FY20. $120.0 $1.8M L O A N F U N D I N G C O M M E N TA R Y $100.0 $22.6M • $114.0M total loan book as at 31 December 2019 • The off-balance sheet facility will continue to generate
Slide 16: H1FY20 Financials
3. For personal use only H1FY20 Financials. 16 16
Slide 17: Profit & loss
Profit & loss. For personal use only • Operating income increase of 83% on H1FY19 driven by 90% growth in loan origination volume. • From mid-November 2019 the gross yield on the warehouse trust loan receivables is recognised in the P&L. • Increase in employee benefits and marketing expense driven b
Slide 18: Balance sheet
Balance sheet. For personal use only • Cash of $10.2M at 31 December 2019 sees the Company well capitalised. The Company subsequently undertook a $33.5M Placement and $3M SPP in January 2020. • Strong growth in loan receivables to $23.1M at 31 December 2019 predominantly driven by the go-live of the
Slide 19: Cash flow
Cash flow. For personal use only • Cash flows from operating activities highlight the off-balance sheet loan funding model in place until mid-November 2019 i.e. in H1FY20 $(28.3)M Net of lending and repayments represents loan origination and $34.0M Net proceeds from sale of loans represents subseque
Slide 20: Growth & Outlook
4. For personal use only Growth & Outlook. 20 20
Slide 21: Delivered on key objectives
GROWTH Delivered 3 Delivered 90% ($54.9M) growth H1FY20 v H1FY19 in loan originations 3 Surpassed $163M in total originations on key 3 Revenue growth 83% PEOPLE For personal use only 3 Grew number of customers entering the Wisr 3 Employee NPS of +66, confirming Ecosystem to over 120,000 (adding 64,2
Slide 22: Execution priorities: 2020
GROWTH Execution • Efficiently scale the core lending business and grow originations • Launch Wisr Secured Vehicle product to market PEOPLE priorities: • Expand partnerships model For personal use only • Hire more superstar talent • Grow the customer base within the Wisr Ecosystem to help deliver on
Slide 23: Secured Vehicle drives 2020 growth
Secured Vehicle drives 2020 growth. For personal use only (Pun intended.) With a significant opportunity emerging, Wisr is transforming customers’ ability to own and maintain their own vehicle. • After a successful pilot, Wisr is launching a new super competitive secured lending product with market
Slide 24: Growth via the Wisr Ecosystem
Growth via the Wisr Ecosystem. For personal use only Wisr delivered on the preliminary roll-out of the Wisr Ecosystem, acquiring over 120,000 Australians to 31 Dec 2019. The Wisr Ecosystem includes the launch of a number of individually powerful, and collectively unique products aligned to financial
Slide 25: The Wisr Ecosystem
The Wisr Ecosystem. For personal use only Over 120,000 Australians entered the Wisr Ecosystem. 125,000 100,000 75,000 50,000 25,000 0 JUL 18 AUG 18 SEP 18 OCT 18 NOV 18 DEC 18 JAN 19 FEB 19 MAR 19 APR 19 MAY 19 JUN 19 JUL 19 AUG 19 SEP 19 OCT 19 NOV 19 DEC 19 WISR PERSONAL LOANS WISRCREDIT USERS WIS
Slide 26: A compelling investment case
A compelling investment case. For personal use only Phase 1 and 2 of the business delivered on plan, with market leading technology built and a proven READY TO SCALE business model. COMPELLING UNDERLYING METRICS All key numbers trending strongly for growth. SIGNIFICANTLY IMPROVED UNIT Mature model d
Slide 27: Appendix
For personal use only 5. Appendix. 27 27
Slide 28: Ahead of the compliance curve
Ahead of the compliance curve. For personal use only New regulation is supporting profitable Wisr growth. RG209 CLARIFICATION AND PRINCIPLE BEST INTEREST DUTY FOR BROKER OPEN BANKING RG209 works in Wisr’s favour, bringing the competition We don’t expect any material impact to Wisr’s growth. Wisr wil
Slide 29: Prime quality customer base
Prime quality customer base. For personal use only Loan amount. Interest rate. NPS scores. TrustPilot rating. Credit score. AVERAGE AVERAGE OVERALL BROKER CUSTOMER RATING REVIEWS AVERAGE $26,447 12.76% +66 +66 +68 4.6/5 84 710.1 37% FEMALE 63% MALE 39.3 YEARS AVERAGE AGE 38.9 YEARS 18 – 80 YEARS OF
Slide 30: Proprietary tech supports scale
Proprietary tech supports scale. For personal use only Using customer data to drive better outcomes. • Keeps us ahead of and prepared for, regulatory changes. • Reinforces Wisr commitment to responsible lending. • Creates operational efficiency and faster verifications. • Identify undisclosed liabil
Slide 31: The Wisr owned Ecosystem
The Wisr owned For personal use only Ecosystem. Unique model drives lower customer acquisition costs and increases customer lifetime value. 31 31
Slide 32: Wisr, a great place to work
Wisr, a great W E H E LP E AC H OTHER TO BE GREAT W E TAKE RESPON SI BI LI TY place to work. For personal use only WE SEEK EX CELLEN CE At Wisr, we strive to be one of Australia’s best workplaces. We are big believers in high performance while still promoting a healthy work life balance. We have a n
Slide 33: Disclaimer
Disclaimer. For personal use only NO INVESTMENT ADVICE OR OFFER OF SHARES or guarantee as to the accuracy or likelihood of fulfillment of any forward- This presentation does not constitute investment advice, or an inducement looking statement in this presentation or assumption upon which any part of