Moneyme Ltd. · ASX:MME
Moneyme — FY2022 Earnings Presentation
63 slides from Moneyme's earnings presentation, Aug 31, 2022
Slide 1: Investor Presentation
Investor Presentation FY22 Results | Strategy & Outlook | Capital Raise 31 August 2022 moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218
Slide 2: To be the #1 challenger to the banks
Our mission To be the #1 challenger to the banks MONEYME is a digital non-bank. We don’t do paperwork, ATMs or brick and mortar stores. We know today’s digitally savvy consumers don’t have time for outdated processes, so we create innovative, app-first financial products that meet, and exceed, the e
Slide 3: FY22 Highlights
2 FY22 Highlights FY22 Highlights Page 2 | MONEYME
Slide 4: Significant step change in scale
SocietyOne Acquired in March 2022 Significant $1.35b FY22 gross customer receivables ( 305% from FY21) step change in scale $1.7b Funding capacity in FY22 ( 4x from $0.3b in FY21) 70x growth In Autopay loan book to $445m in FY22 Page 3 | MONEYME
Slide 5: Strong financial returns
Profitable cash NPAT1 $20m Strong ( 70% from $12m in FY21) financial $143m Total revenue ( 148% from $58m in FY21) returns 22% Total operating expense to receivables (Increased efficiency from 29% in FY21) 1. Cash NPAT is a non-IFRS measure. See Appendix: Statutory NPAT to cash NPAT reconciliation f
Slide 6: Increased credit quality
38% Secured assets in total loan book Increased ( from 2% in FY21) credit 704 Average customer Equifax score ( from 650 in FY21) quality 4% Net losses in FY22 ( 26% from 5% in FY21) Page 5 | MONEYME
Slide 7: Operational Highlights
6 Operational Highlights Operational Highlights Page 6 | MONEYME
Slide 8: Operational highlights
Operational highlights Significant step change in scale, blockbuster innovations SocietyOne Autopay 4x funding Horizon acquisition and blockbuster expansion technology integration innovation Significant step up from $0.3b innovation across 3 funding structures to Acquired in March 2022 $445m loan bo
Slide 9: SocietyOne acquisition and integration
SocietyOne acquisition and integration Consolidation of functions between MONEYME and SocietyOne is ahead of schedule: • SocietyOne acquired in March 2022 • $7.5m annualised cost synergy benefits from Planned time to By end of FY23 completion people and processes realised in FY22, ahead of 6 months
Slide 10: Game changing innovation in the auto sector
Autopay gross customer receivables Game changing $445m $445m innovation in Autopay gross customer receivables $299m the auto sector as at 30 June 2022 $155m $44m Autopay’s high automation, dynamic $6m pricing and best-in-class speed offers secured vehicle finance that settles in 754 4Q21 1Q22 2Q22 3
Slide 11: Diversified customer base
Diversified customer base Geographic spread Industry sector Construction, Building & Architecture Other 11% 20+ other 10% NSW sectors Logistics, • Strong customer base diversification across all 30% 54% Transport & Supply geographic, demographic, and employment WA sectors 10% 10% Hospitality, Travel
Slide 12: Credit risk management & quality
Credit risk management & Customer Equifax score vs Net Losses (%)1 Secured asset mix of loan book (%) quality 30% 700 704 • Customer credit quality continues to increase 25% with average Equifax score of 704 • Continuing improvement in net losses1 down to 38% 4% in FY22 from 5% in FY21 650 650 20% 6
Slide 13: Market-leading customer experience
Market-leading customer experience Outperforming the major banks Net Promoter Rating2 Score (NPS)1 +76 MONEYME 34% Customers have used at least 2 products with MONEYME 4.7/5 MONEYME +24 Average of 4 >70% Major Banks 1.4/5 Calls answered within 8 seconds Average of 4 Major Banks 1. Big 4 banks NPS so
Slide 14: Unlocked funding & liquidity diversification
Unlocked funding & liquidity diversification $1,727m • Increased funding capacity over 4x from $0.3b in FY21 to $1.7b in FY22 $384m • Five warehouses with two major Australian undrawn banks, two major global banks • Two term securitisations completed • PEP $75m strategic finance facility1 for organi
Slide 15: Governance & sustainability
Governance & sustainability Our improvement in self-assessed B Corp Impact Assessment scores: • We are aligning our sustainability efforts to B Corp Certification Governance Workers Community • Making a fundamental impact to our Environment, 12.0 27.2 21.9 Community, and Governance-focused areas 94%
Slide 16: Passionate about people and the planet
Passionate about people and the planet Planting trees to offset emissions on behalf of Autopay customers People & customer highlights 87% 42% >200,000 Customers have used our Employee engagement Female representation in score our workforce free financial wellbeing Credit Score product Community Envi
Slide 17: Turbo-charging the technology experience
Turbo-charging the technology AIDEN® 3.0 experience SocietyOne • Advanced credit decisioning and speed of service integration onto with AIDEN® 3.0 Horizon • Enhanced fraud prevention technology Credit Score processing product integration • Increased automation and improved human capital efficiencies
Slide 18: Financial Highlights
17 Financial Highlights Financial Highlights Page 17 | MONEYME
Slide 19: Financial highlights
Financial highlights Strong asset growth and financial returns Cash NPAT ($m) Gross revenue ($m) Closing gross customer receivables ($m) 143 1,345 20 70% 148% 305% FY21 to FY22 12 FY21 to FY22 FY21 to FY22 10 58 48 5 32 333 87 134 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Total ope
Slide 20: Record receivables growth
Record receivables growth Total originations ($m) Gross customer receivables ($m) • 191% originations growth from $384m to 1,345 $1,116m 191% 305% • 305% customer receivables growth from FY21 to FY22 1,116 FY21 to FY22 $333m to $1,345m • Significant growth in secured asset originations 836 from $6m
Slide 21: Significant revenue growth
Significant revenue growth Gross revenue growth ($m) Revenue contribution in FY22 (%) • $143m gross revenue, up 148% from $58m in FY21 148% • >80% of gross revenue is from organic growth, FY21 to FY22 143 reflecting significant customer receivable growth Other SocietyOne 15 income 17% • $24m of gros
Slide 22: Increasing loan book value
Increasing loan book value Total contracted revenue ($m) Risk-based average interest rate (%) Excludes fees Excludes fees 100% 90% 398 80% 24% 60% 70% 305% increase in contracted revenue driven by: 40% 19% 16% 50% 20% • 305% Unsecured 30% 211% increase in average balance per loan 0% -20% 10% FY21 to
Slide 23: Increasing capital efficiencies
Increasing capital efficiencies Average funding cost rate (%) Year-end closing securitisation drawn margin (%)1 • MONEYME has continued to achieve cost 12% 11% 9.2% 8.7% of fund margin reductions in FY22 following the step change achieved in FY21 9% 33% 4.6% Reduction 5% 4.6% Reduction 3.1% FY21 to
Slide 24: Increasing operating leverage
Increasing operating leverage Office operating costs to receivables (%)1 Sales & marketing expense to originations (%) 16.4% 16.4% • Office operating costs continue to reduce as a proportion of the loan book, demonstrating 11.4% 2.9% 2.8% significant operating leverage 41% 20% 2.5% 2.0% Efficiency g
Slide 25: Robust credit risk ratios
Robust credit risk ratios Provisioning (%) Provisioning – Unsecured vs Secured (%) 0.4% 10% 10% 20% 8% • 6% provisioning in FY22, down from 8% in 6% FY21 through improvements from increased secured assets and SocietyOne acquisition 23% 100% 100% 99.6% 80% Secured Reduction Unsecured FY21 to FY22 • U
Slide 26: Strong returns
Strong returns Profit & asset growth ($m) Statutory NPAT to cash NPAT reconciliation • $20m cash NPAT for FY22, up 70% from $12m for FY21 40 1,345 1,500 • Significant loan book growth with the application Statutory NPAT 2 of AASB 9 accounting provision standards has 35 includes $3m 10 1,000 driven a
Slide 27: Strategy & Outlook
26 Strategy & Outlook Strategy & Outlook Page 26 | MONEYME
Slide 28: Adapting to the changing macro environment
Adapting to the changing macro environment Macroeconomic environment MONEYME’s market positioning Inflation Credit quality continues to increase above the driving an increase to cost of living market average Equifax score Interest rates Margin management from our predominantly variable rate pushing
Slide 29: Our key areas of focus
Our key areas of focus Leverage innovation Solid revenue growth Deliver SocietyOne and build on Autopay synergies Prioritising high credit quality and moderating Leading the industry on innovation, book growth in the immediate term Substantial operating leverage customer experience and operations wi
Slide 30: Our key areas of focus
Our key areas of focus Enhancing AIDEN® Expanding our product Leading the industry on our artificial intelligence offer to Bank Account and people, environment and platform for optimal Credit Score products governance credit decisioning Page 29 | MONEYME
Slide 31: To be the #1 challenger to the banks
We’re on our way… To be the #1 challenger to the banks Page 30 | MONEYME
Slide 32: Capital Raise
31 Capital Raise Capital Raise Page 31 | MONEYME
Slide 33: $20m Placement and Directors' participation
MONEYME • $20m Placement intends to offer a $2.1m of which is subject to shareholders approval share placement to institutional • Additional $1.2m Directors’ participation investors and subject to shareholders approval Directors1 1. Director Placement subject to shareholder approval. Page 32 | MONEY
Slide 34: Highly efficient use of equity capital
Highly efficient use of equity capital Gross customer receivables evolution ($m) MONEYME raised $45m in primary capital at IPO in $143m Revenue December 2019, followed by the $99m SocietyOne share issuance in March 2022. Key achievements $398m Contracted supported by the capital issuances include: R
Slide 35: Additional capital generates attractive returns
Additional capital generates Illustrative funding capacity *Conservatively assumes attractive returns 7.5% equity requirement to fund junior notes and upfront broker commissions ~$1.7bn • MONEYME continues to attract high demand across its range of secured and unsecured ~$135m lending products For e
Slide 36: Equity raising overview
Equity raising overview Offer Structure Placement • MONEYME is undertaking a fully underwritten placement to raise $20 million (“Placement”) through the issue of 40 million new fully paid ordinary shares (“New Shares”) as follows: • An unconditional component to raise approximately $17.84 million th
Slide 37: Equity raising timetable
Equity raising timetable1 Event Date Announcement of the Placement and Director Offer Wednesday 31 August 2022 Announcement of the outcome of the Placement Thursday 1 September 2022 Trading halt lifted – trading resumes on ASX Thursday 1 September 2022 Settlement of New Shares issued under the Uncon
Slide 38: Questions & Answers
MONEYME Questions & Answers
Slide 39: Thank you
Thank you On behalf of all at MONEYME
Slide 40: Appendix
39 Appendix Appendix Page 39 | MONEYME
Slide 41: Key operating measures
Key operating measures Definition 1 FY20 FY21 FY22 Returns Gross revenue ($m) 48 58 143 Gross revenue growth (%) 49% 21% 148% Future contracted cash interest ($m) 2 29 98 398 Cash NPAT ($m) 3 10 12 20 Book profile Revenue yield (%) 1 43% 25% 17% Closing gross customer receivables – secured assets (%
Slide 42: Measure definitions
Measure definitions Note Measure Definition 1 Revenue yield (%) Total revenue as a % of average gross customer receivables The sum of the total amount of interest payable by each customer receivable over the remaining life of the customer receivable contract (i.e. from 1 July onwards to its maturity
Slide 43: Income statement
Income statement $ millions FY20 FY21 FY22 Interest income 43 53 128 Other income 5 5 15 Gross revenue 48 58 143 Commission expense - (0) (2) Net revenue 48 58 141 Interest expense (13) (11) (38) Sales & marketing expense (5) (10) (22) Product design & development expense (3) (4) (7) General & admin
Slide 44: Statutory NPAT to cash NPAT reconciliation
Statutory NPAT to cash NPAT reconciliation $ millions FY20 FY21 FY22 Statutory net profit/(loss) after tax 1 (8) (50) AASB 9 impairment expense adjustment 16 29 103 Gross losses adjustment (9) (11) (45) Non-recurring adjustments IPO pro forma adjustments 2 - - Unsolicited proposal review adjustment
Slide 45: Balance sheet
Balance sheet $ millions FY20 FY21 FY22 Cash and cash equivalents 35 26 81 Net customer receivables 121 306 1,264 Current tax asset - 0 0 Deferred tax asset 4 6 3 Derivative financial instruments - - 10 Intangible assets 2 3 36 Right of use assets 2 1 3 Property, plant and equipment 1 1 1 Other rece
Slide 46: Cash flow statement
Cash flow statement $ millions FY20 FY21 FY22 Income from customers 47 66 116 Payments to suppliers and employees (16) (24) (51) Debt sale income - - 14 Other interest and fees received - 0 0 Income tax (paid)/received (0) (2) - Net cash inflows from operating activities 18 40 79 Net customer receiv
Slide 47: MONEYME's products
MONEYME’s products1 CURRENT PRODUCTS NEW PRODUCTS PRODUCTS NOT IN FOCUS Personal Loan Personal Loan Spend and Save Freestyle ListReady Autopay Credit Score MoneyMe+ RentReady (Variable Rate) (Fixed Rate) accounts Offer range $5,000 - $50,000 $5,000 - $70,000 Credit limit up to Service amount up to U
Slide 48: AI-enabled & automated, yet personal
AI-enabled & automated, yet personal Personal Loans (Variable Rate) Customer receivables Total originations Average loan value at 30 June 2022 in FY22 in FY22 $251m $236m $11,232 Up 51% from FY21 Up 39% from FY21 Up from $8,900 in FY21 Personal Loans (SocietyOne Fixed Rate) Customer receivables Tota
Slide 49: Feature-packed for Generation Now
Feature-packed for Generation Now Freestyle Virtual Card Customer receivables Freestyle credit usage Average use of at 30 June 2022 in FY22 credit limit in FY22 $229m $293m 77% Up 69% from FY21 Up 71% from FY21 Was 70% in FY21 Average card Median Freestyle transaction in FY22 customer age $62 33 Was
Slide 50: The smart way of selling property for agents and vendors
The smart way of selling property for agents and vendors ListReady Customer receivables Total originations Real estate agents at 30 June 2022 in FY22 signed up to-date $8m $23m 3,200+ Up 6% from FY21 Up 15% from FY21 Page 49 | MONEYME
Slide 51: Game changing innovation in the auto sector
Game changing innovation in the auto sector Autopay Customer receivables Average car financed Average Autopay at 30 June 2022 in FY22 customer Equifax score $445m $32,100 754 Page 50 | MONEYME
Slide 52: Free financial wellbeing product for Generation Now
Free financial wellbeing product for Generation Now Credit Score Highlight key Free credit score factors impacting >200,000 and credit file credit scores customers insights and tips for improvement Page 51 | MONEYME
Slide 53: Banking-as-a-Service offering
MONEYME is leveraging first-mover advantages with Banking-as-a-Service offering Spend & Save Accounts Transaction and Debit Mastercard savings bank Free sign up and Digital Wallet accounts $0 account fees Round ups Instant save $0 ATM fees (at (on payments) (on deposits) major ATMs) Page 52 | MONEYM
Slide 54: Key Risks (1 of 4)
Key Risks (1 of 4) This section discusses some of the key specific and general risks that Shareholders may be exposed to by making an investment in MONEYME subordinated debt from time to time if, for instance, the loan book increases and/or new warehouse funding arrangements are put in place, to ens
Slide 55: Key Risks (2 of 4)
Key Risks (2 of 4) An amortisation event or event of default may arise from, among other things: resolution procedure to consumers. − a breach by MONEYME of its undertakings under existing securitisation funding arrangements, including with respect to the Design and distribution obligations and prod
Slide 56: Key Risks (3 of 4)
Key Risks (3 of 4) Protection and ownership of technology and intellectual property inability to attract and retain replacements or new key personnel, could have a materially adverse impact on MONEYME’s business, operating and financial performance, and/or growth. MONEYME has developed its own techn
Slide 57: Key Risks (4 of 4)
Key Risks (4 of 4) Climate change Assumed liabilities Climate change may impact on overall economic growth and national living standards, with longer term consequences for MONEYME’s customers. MONEYME is required to account for any outstanding liabilities that the SocietyOne Group has incurred in th
Slide 58: Summary of Underwriting Agreement (1 of 2)
Summary of Underwriting Agreement (1 of 2) Summary of Placement Agreement MoneyMe Limited (MoneyMe) has appointed Barrenjoey Markets Pty Limited (ABN 66 636 976 059) (Lead Manager) to act on an exclusive basis as • (illegal) there is an event, occurrence or non-occurrence which makes it illegal for
Slide 59: Summary of Underwriting Agreement (2 of 2)
Summary of Underwriting Agreement (2 of 2) • (adverse change) there is an adverse change, or an event occurs which is likely to give rise to an adverse change, in the financial position, performance, results, condition (financial or otherwise), assets, earnings, business, affairs, profits, liabiliti
Slide 60: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In Singapore particular, this document may not be distributed to any person, and the New Shares may not be offered or so
Slide 61: Important notices & disclaimers (1 of 2)
Important notices & disclaimers (1 of 2) Investor presentation Important Notice and Disclaimer Not financial product advice The information contained in this presentation has been prepared by MoneyMe Limited ACN 636 747 414 (“MONEYME” or “Company”) in connection This presentation is not financial pr
Slide 62: Important notices & disclaimers (2 of 2)
Important notices & disclaimers (2 of 2) Further, other risks and uncertainties not presently known to management or that management currently believe not to be material may also affect of income or capital return on an investment in MONEYME. By continuing to read this presentation, readers are deem
Slide 63: moneyme.com.au
moneyme.com.au Copyright 2022 | MoneyMe Limited | ACN 636 747 414 | Australian Credit Licence Number 442218