Slide 1: FY22 Results
ASX: WZR FY22 RESULTS 30 August 2022
Slide 2: FY22 Highlights: Set Up for Profitability
FY22 HIGHLIGHTS: SET UP FOR PROFITABILITY ✓ FY22 results and subsequent Q1FY23 decisions, sets the Company on a path to be $611M $1.2B $59M $(7)M profitable within 12 months^ in new loan Total loan in Operating Cash EBTDA ✓ Delivered two positive operating cash flow originations originations revenue
Slide 3: Wisr Has a Unique and Differentiated Strategy
WISR HAS A UNIQUE AND DIFFERENTIATED STRATEGY Our tech, data, analytics and high-performance culture are genuine competitive advantages Loan Origination in FY22 was a record $611M (up 67% pcp), delivering: ● $1.2B loans written since inception (Q1FY17) ● 24 consecutive quarters of new loan originati
Slide 4: Dual Platform Strategy Has Delivered Exceptional Growth
DUAL PLATFORM STRATEGY HAS DELIVERED EXCEPTIONAL GROWTH Lending platform Financial Wellness Platform (Profiles^) ^Financial Wellness Platform has grown to over 647K users and will continue to grow as Company approaches target of 1 million profiles 4
Slide 5: Wisr's Lending Platform Is Delivering Scale
WISR’S LENDING PLATFORM IS DELIVERING SCALE Wisr quarterly loan book growth^ Wisr quarterly revenue growth ^Loan Book includes all loans in WH1, WH2, Freedom Trust 2021-1, Freedom Trust 2022-1 and balance sheet, excludes off-balance sheet of $22.7M as at 30 June 2022 5
Slide 6: Our Growth Is Built on Consistent High Credit Quality
OUR GROWTH IS BUILT ON CONSISTENT HIGH CREDIT QUALITY Strong credit quality achieved with prime1 average credit scores and less than 1% Wisr Loan Customer Average Credit Score on-balance sheet 90+ day arrears. With 24 consecutive quarters of best-in-class responsible lending compliance, focus on pri
Slide 7: Managing a Changing Economic Environment
MANAGING A CHANGING ECONOMIC ENVIRONMENT E FOR YOUR SMART PART 7
Slide 8: Protecting NIM and Yield to Deliver Profit
PROTECTING NIM Since the inception of warehouse funding facilities in November 2019, Wisr has hedged the AND YIELD TO floating component of its cost of funds - the BBSW Wisr will continue to lift yield and pricing in the market to protect profitability and NIM DELIVER PROFIT Loan origination yield a
Slide 9: Focussing on Achieving Profitability Within 12 Months
FOCUSSING ON Focus on near-term profitability ● Significant reduction in short-term growth aspirations in ACHIEVING lending in response to the macro environment Switching from high to moderate growth will positively impact PROFITABILITY WITHIN ● Cash EBTDA 12 MONTHS ● Front book yield will continue
Slide 10: Operational Leverage Expansion
OPERATIONAL LEVERAGE EXPANSION FY22 P&L Waterfall The operational leverage of the core Wisr lending platform continues to expand while the Company continues to invest in the Financial Wellness Platform, further innovation and the build and launch of more products. Revenue 118% Operating revenue grow
Slide 11: Strong Funding Platform
STRONG FUNDING PLATFORM ● WH1 has $450.0M of committed funding and an undrawn capacity of $307M ● Wisr has now delivered two personal loan ABS transactions - Freedom21 and Freedom22 ● WH2 has $300M of committed funding, increased to $400M in July 2022 and an undrawn capacity of $125M (post increase)
Slide 12: Cash EBTDA
CASH EBTDA ● In FY22 the Company continued on the path to profitability with a Cash EBTDA of $(7.2)M, which is a 30% improvement on $(10.2)M FY22 ($’000) FY21 ($’000) Variance in FY21 ● The continued operational leverage in the business is evidenced Revenue 59,392 27,575 118% through 118% operating
Slide 13: Summary
SUMMARY FOR YOUR SMART PART 13
Slide 14: Profitability to Be Achieved Within 12 Months
MODERATE GROWTH PROFITABILITY TO BE ACHIEVED WITHIN 12 MONTHS^ STRONG AND PRUDENT GROWTH Prime $780M Loan Book heading to $1B, FY22 operating revenue up 118% on the back of 24 consecutive quarters of DELIVERED loan growth. Growth rate to be tempered to achieve profitability within 12 months^. ON TRA
Slide 15: Questions
QUESTIONS FOR YOUR SMART PART 15
Slide 16: FY22 Audited Financial Results and Appendix
FY22 AUDITED FINANCIAL RESULTS AND APPENDIX FOR YOUR SMART PART 16
Slide 17: Profit and Loss
30-JUN-22 30-JUN-21 $ $ % VARIANCE PROFIT AND LOSS REVENUE Operating income 59,392,199 27,230,985 118% Other income 31 344,188 -100% ● Operating revenue of $59.4M (FY21: $27.2M), a 118% increase driven by loan origination growth of EXPENSES 67% Employee benefits expense (18,926,195) (14,191,169) 33%
Slide 18: Expected Credit Loss Provision
EXPECTED CREDIT LOSS PROVISION Total loan impairment expense for FY22 was $16.3M, this Provision movement Jul 2021 - Jun 2022 represents $9.5M of incremental provisions, $6.8M of net losses ($8.0M gross losses net of $1.2M recoveries). This loan impairment expense represents 2.1% charge compared to
Slide 19: Provisioning Analysis
PROVISIONING ANALYSIS At 30 June 2022, Wisr had a total ECL provision of 2.4% of loan book and Net losses have increased in FY22 inline with book maturity. total credit loss expense (Profit and Loss) of 2.1% of loan book. Provision coverage rates were flat in FY22. Provision coverage % Net losses as
Slide 20: Balance Sheet
30-Jun-22 30-Jun-21 $ $ ASSETS BALANCE SHEET Cash and cash equivalents Trade and other receivables 71,489,070 1,065,176 92,409,558 1,208,633 Loan receivables 764,838,727 374,651,379 ● Well capitalised with cash of $71.5M ($23.3M Property, plant and equipment 487,866 263,471 unrestricted cash and $8.
Slide 21: Cash Flow
30-Jun-22 30-Jun-21 $ $ Cash flows from operating activities CASH FLOW Receipts from customers 56,963,941 24,305,699 Payments to suppliers and employees (inclusive of GST) (43,012,102) (27,595,351) 13,951,839 (3,289,652) Interest received 19,473 11,285 Management fees received 643,750 1,176,790 ● Ne
Slide 22: Environment, Social, Governance (ESG)
ENVIRONMENT, SOCIAL, GOVERNANCE (ESG) Purpose-led companies outperform in CARBON NEUTRAL SOCIAL OPPORTUNITY GOVERNANCE long-term value creation (TSR) because ● Climate-positive and ● Wisr does not have a gender Wisr is held to account through: purpose unites employees and carbon-neutral workforce pa
Slide 23: Award-Winning Momentum
AWARD-WINNING MOMENTUM Wisr recognised for great lending, product and employee experience throughout FY22 23
Slide 24: Disclaimer
DISCLAIMER No investment advice or offer of shares presentation is based or the accuracy, completeness or reliability of the information contained in this presentation. This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of