Solvar Limited · ASX:SVR
Solvar — Investor Presentation (February 2025)
17 slides from Solvar's investor presentation, Feb 25, 2025
Slide 1: H1 FY25 Investor Presentation
H1 FY25 Investor Presentation 25 February 2025 Scott Baldwin (Managing Director & CEO) Siva Subramani (CFO) WWW.SOLVAR.COM.AU 1
Slide 2: Building a Bigger Better Solvar
PROFITABLE AND CASH GENERATIVE GROWTH Growing profitability and cash generation to fund loan book expansion or acquisitions BUILDING A BIGGER BETTER INNOVATION AND INVESTMENT Continuous customer focused technology and product investment SOLVAR Our success “BUILDING FOR A BIGGER, BETTER SOLVAR” DIVER
Slide 3: Highlights
Highlights 3
Slide 4: Foundations for sustainable growth
Foundations for sustainable growth Enhanced technology platform: Strategic initiatives: • Consolidated software platforms boosting productivity & system efficiency – • Launching new commercial lending business unit in FY25 anticipated to drive material loan growth in AFS business unit • Executing ex
Slide 5: Highlights: Continuing Operations (Australia)
Highlights Continuing Operations (Australia) Interest Income1 Loan Book Originations H1 FY25 $93.1m $824.7m $211.4m Technology simplification in AFS will improve efficiency and broker experience to support 4.6% increase on pcp 7.1% increase on pcp 2.0% decrease on pcp growth in originations Focused
Slide 6: Highlights: Group (Australia & New Zealand)
Highlights Group (Australia & New Zealand) Interest Income1 NPAT2 (normalised) EPS – 8.2c 30.0% increase on pcp H1 FY25 $108.6m $18.5m DPS – 6.0c 20.0% increase on pcp Introduced Money3 mezzanine funding of 3.1% decrease on pcp 26.9% increase on pcp $60.0m ($20.0m drawn) to support Australian NTA $1
Slide 7: H1 FY25 Results
H1 FY25 Results WWW.SOLVAR.COM.AU 7
Slide 8: Australian Operations
Australian Operations (Continuing Operations) H1 FY25 H1 FY25 H1 FY24 Growth % Continuing Operations Loan book increased 7.1% to $824.7m (vs pcp) with AUDm unless stated otherwise a shift towards higher credit quality customers Interest income1 93.1 89.1 4.6% Interest expense 22.2 22.6 (1.6%) Yield
Slide 9: Group H1 FY25
Group H1 FY25 H1 FY25 H1 FY25 H1 FY24 Growth % Group Financial Results Improved funding margins and reduced debt AUDm unless stated otherwise levels driving down interest expense Interest income1 108.6 112.1 (3.1%) Interest expense 26.8 29.0 (7.8%) Bad debt levels stable at 4.1% (annualised) despite
Slide 10: Stable bad debts, significant funding headroom, stable credit quality
H1 FY25 Results Stable bad debts – Significant funding headroom – Stable credit quality Bad debt – By geography Australia - debt facilities Maintaining credit quality – Australia loan book 8% 7.6% AUD m 748 H1 FY25 57.6% 24.2% 14.7% 3% 0.17% 7% 800 6% 615 4.9% 238 5% 4.4% 600 4.0% 4.1% FY24 57.6% 23
Slide 11: Regulatory Update
Regulatory Update Australian Securities and Commerce Commission of Investment Commission (ASIC) New Zealand • On 6 February 2025, the trial started in respect to the • In March 2024, the Commerce Commission commenced proceeding against Money3 proceedings making allegations that Go Car Finance contra
Slide 12: Outlook
Outlook 12
Slide 13: FY25 Outlook
FY25 Outlook Financial Operations Market • Forecast normalised NPAT of $34m • Near term focus on regulatory matters - • Labour market remains tight with low ASIC trial near completion unemployment • Bad debt expected to be 3.5%-4.5% • New Zealand run-down progressing as • Upcoming Federal election i
Slide 14: Thank You!
Thank You! CEO & Managing Director Chief Financial Officer Investor Relations Scott Baldwin Siva Subramani Tom Ng +61 3 7031 6019 +61 3 7031 6018 +61 490 796 752 s.baldwin@solvar.com.au s.subramani@solvar.com.au t.ng@solvar.com.au
Slide 15: Glossary of Terms
Glossary of Terms A$ or $ - Australian dollars H1 – Results relating to the first half of the financial year, July - December Active customer - A customer with an outstanding balance H2 – Results relating to the second half of the financial year, January – June ASIC – Australian Securities and Inves
Slide 16: Product Summary
Product Summary Product Location Australia Consumer Consumer Consumer Commercial Purpose Vehicle Finance Personal loans Vehicle Finance Vehicle Finance Maximum up to $100,000* up to $30,000* up to $130,000* loan amount Term 24 - 60 months 24 - 60 months 12 - 84 months Fixed rate Fixed rate Interest
Slide 17: Disclaimer
Disclaimer The content of this presentation has been prepared by Solvar Limited (the Company) for general information purposes only. Any information included in this presentation on future financial performance, including industry sectors, income, profit and employment types, represent estimates of