Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (February 2025)
24 slides from Wisr's investor presentation, Feb 26, 2025
Slide 1: Company Update H1FY25
COMPANY UPDATE H1FY25 FEBRUARY 2025 1
Slide 2: Set up for sustainable growth
SET UP FOR SUSTAINABLE GROWTH Strong loan Improved Expanding Well origination loan book margins and capitalised growth performance EBITDA profitability KEY DRIVERS Structural tailwinds increasing non-bank lender market share and technology-driven automation 2
Slide 3: Key H1FY25 results
KEY H1FY25 RESULTS LENDING FINANCIAL CAPITAL CUSTOMER $170.8M 11.20% $45.3M Well capitalised with unrestricted cash of $39.4M New loan originations Portfolio yield Revenue additional loan $17.9M repayments4 made via one-time payment ↑66% H1FY24 $103.1M feature ↑60% H2FY24 $106.7M ↑30 bps H2FY
Slide 4: Wisr at a glance
WISR AT A GLANCE Since 2018, Wisr has supported Australians in reaching their personal and financial goals $2.0B 2 warehouses total loan originations 3 active term deals We are a sophisticated, purpose-built fintech lender with a proven track 1 called term deal record of executing in the debt capita
Slide 5: Automation to scale
AUTOMATION TO SCALE Automation of loan approval Industry-leading arrears New cloud native loan and verification processes management platform driving ledger platform losses improvement ● 78% of loans ● Supports strong growth and automatically CREDIT DECISIONS ● New arrears management platform high t
Slide 6: Well diversified customer base
WELL DIVERSIFIED CUSTOMER BASE Where are our customers Our customersʼ Why are customers What does the average Wisr located? employment status coming to us? loan look like? NT 1% QLD Full-time WA 73% 16% 35% Self-employed 5% Personal Secured loans vehicle loans Part-time 8% Vehicles1 NSW 22% 64% 68%
Slide 7: Structural tailwinds
STRUCTURAL TAILWINDS ● The major banks market share of the Personal and Secured Vehicle Share of total household lending with banks1 Lending market continues to decline ● Their focus is Mortgages and Business Lending, away from Personal Lending 74% market share in Dec-19 down to 61% in Dec-24 ● Tw
Slide 8: Return to loan origination growth
RETURN TO Loan originations LOAN ORIGINATION GROWTH ● The Company delivered strong loan 66% growth origination growth in H1FY25 60% growth ● Wisr grew loan originations to $170.8M, an increase of 66% on H1FY24 $103.1M) and 60% on H2FY24 $106.7M ● A significant scale opportunity exists in target s
Slide 9: Loan book and revenue
LOAN BOOK Loan book Loan originations (cumulative) AND REVENUE $757M ↑1% growth Sep-24 $753M ● $757M loan book, a 2% decrease on Jun-24 $770M) following a period of moderated loan volume ● However, the loan book grew by 1% compared to Sep-24 $753M) supported by strong origination growth in Q2FY
Slide 10: Portfolio margin and credit quality improvement
PORTFOLIO Portfolio yield Portfolio NIM MARGIN AND CREDIT QUALITY IMPROVEMENT ● Portfolio yield increased by 69 bps to 11.20% H1FY24 10.51% ● Portfolio Net Interest Margin (“NIMˮ) increased by 42 bps to 5.75% H1FY24 5.33%) due to improved yield and funding cost SVL originations as a % of total
Slide 11: Losses improving
LOSSES Customer credit scores and 90+ day arrears IMPROVING ● The quality of Wisrʼs portfolio was maintained with its average credit score increasing to 7981 ● Net losses declined for the second consecutive half, reaching $7.2M 1.87% of the average loan book), improving from $10.4M 2.35%) in H1FY2
Slide 12: Expected credit loss (ECL)
EXPECTED CREDIT ECL provision and ECL expense LOSS ECL ● As at Dec24, Wisr held a total ECL provision of 2.97%1 ● The 21 bps decrease in ‘provision coverageʼ from 3.18% at Jun-24 is due to the reduction in loan book over the period, stronger recoveries and an improvement in late stage arrears REC
Slide 13: Income statement
INCOME STATEMENT H1FY25 $M H1FY24 $M Variance $M Variance % ● EBITDA increased to $0.8M H1FY24 $0.2M) driven by stronger Revenue 45.3 48.1 2.8 5.8% loan unit economics and a reduction in net losses, which helped offset the impact of lower revenues during the period Finance costs1 23.4
Slide 14: Mature funding program supports growth
MATURE FUNDING PROGRAM SUPPORTS GROWTH ● WH1 Personal Loan WH) has $400M of committed funding Funding at 31Dec-24 $85M undrawn), while WH2 Secured Vehicle WH) has committed funding of $250M $68M undrawn) ● The corporate facility has committed funding of $50M $15M undrawn) ● Wisr has raised $87
Slide 15: Well capitalised
WELL CAPITALISED Cash held in warehouses and term deal trusts: ● Undistributed customer loan repayments (principal and interest) ● Unutilised funds from note subscriptions (predominantly third-party debt) Total cash on ● Use of funds restricted to funding loans and operating warehouses and balance s
Slide 16: Executive summary
EXECUTIVE SUMMARY Strong loan ✓ Loan originations increased by 66% to $170.8M H1FY24 $103.1M origination growth ✓ Loan book growth realised in Q2FY25 after a period of moderated loan volume and now on the pathway to a $1B loan book ✓ We reaffirm our guidance of 75%+ loan origination growth in FY2
Slide 17: Questions
QUESTIONS FOR YOUR SMART PART 17
Slide 18: Additional information
ADDITIONAL INFORMATION FOR YOUR SMART PART 18
Slide 19: Income statement
H1FY25 H1FY24 Variance Variance INCOME STATEMENT REVENUE $'000 $'000 $'000 % Revenue 45,309 48,113 2,805 6% STATUTORY EXPENSES In H1FY25, revenue of $45M declined 6% vs. PCP. This was driven by a lower loan balance during the period, partially Employee benefits expense1 8,689 7,633 1,056 1
Slide 20: Statutory NPAT to cash NPAT and EBITDA reconciliation
STATUTORY NPAT H1FY25 $'000 H1FY24 $'000 TO CASH NPAT Statutory NPAT 2,706 1,711 AND EBITDA Less: ECL provision benefit 1,972 2,156 RECONCILIATION Add: Share based payments expense 1,100 1,106 Add: Depreciation and amortisation 805 582 Add: Non-cash hedge accounting expense 170 398 Cash NPAT
Slide 21: Balance sheet
31Dec-24 30Jun-24 Variance Variance BALANCE SHEET $'000 $'000 $'000 % ASSETS Cash and cash equivalents 51,919 62,363 10,444 17% STATUTORY Trade and other receivables 255 1,177 923 78% Net Assets of $38.0M, a $10.0M decrease 30Jun-24 Loan receivables 741,511 750,699 9,188 1% $48.0M,
Slide 22: Cash flow
H1FY25 H1FY24 Variance Variance $'000 $'000 $'000 % CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOW Receipts from customers Payments to suppliers and employees 44,126 13,647 47,282 13,596 3,156 51 7% 0% STATUTORY 30,479 33,686 3,207 10% Interest received 810 753 56 7% Net cash from oper
Slide 23: Key financials and metrics
H1FY24 H2FY24 H1FY25 FY23 FY24 LOAN BOOK Originations $M 103 107 171 495 210 KEY FINANCIALS PL originations $M SVL originations $M 77 26 83 23 109 62 319 176 161 49 AND METRICS Average originations balance Closing loan book balance $M Portfolio yield % 29,606 847 10.51% 30,163 770 10.90% 33,
Slide 24: Disclaimer
DISCLAIMER No investment advice or offer of shares Statements about past performance are This presentation does not constitute not necessarily indicative of future investment advice, or an inducement or performance. To the extent required by recommendation to acquire or dispose in law, neither Wisr