Humm Group Limited · ASX:HUM
Humm — Investor Day (March 2016)
17 slides from Humm's investor day presentation, Mar 30, 2016
Slide 1: 2011 Investor Day Group Strategy and Tour
2011 Investor Day Group Strategy and Tour 5th and 6th October 2011 Margaret Jackson Chairman John DeLano Chief Executive Officer and Managing Director Not for distribution or release in the United States or to U.S. persons
Slide 2: Disclaimer
Disclaimer Important Notice No recommendation, offer, invitation or advice This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in FlexiGroup Limited (“FlexiGroup”) in any jurisdiction.
Slide 3: FlexiGroup Strategy Tour Agenda
FlexiGroup Strategy Tour Agenda FlexiGroup Executive Summary Business Division Overview – Business to Business (Vendor Finance) – Retail to Consumer / SME (Flexirent and BLiNK) – Business to Consumer (No Interest Ever) – Online Tour of operations – Contact Centre – Innovation – IT – Credit/Risk – Co
Slide 4: FlexiGroup Executive Summary
FlexiGroup Executive Summary A diversified financial services company with a track record of strong volume and profit growth • Founded in 1988 leasing office equipment to business Background • Leading provider of consumer/small business retail point-of-sale finance • Diversified products include mob
Slide 5: Strong track record and positioned for growth
Strong track record and positioned for growth Well positioned for strong growth Sound strategy, well executed High performance culture Highly talented management of innovation and 1 with diverse backgrounds excellence - delivers aligned with shareholders exceptional results Diversified business with
Slide 6: Culture of high performance drives financial and investor outcomes
on Culture of high performance drives financial and investor outcomes Since IPO, 4 years ago, volume and NPAT have more than doubled Financial Scorecard Cash NPAT Véluine $695m $52.9m $310m $23m | FYO7 FY11 FYO7 FY11 Investor Scorecard Market recognises FXL as a high growth company Total Shareholder
Slide 7: Culture of Excellence
1 Culture of Excellence Performance recognised with external awards CUSTOMERS TECHNOLOGY International iCMG Best IT Architecture Australia’s Award 2010 Contact Centre Of the Year 2010 • Joint winner of the Architecture Excellence Award in the • Secured three of the seven categories in the ATA Awards
Slide 8: Culture of Innovation
1 Culture of Innovation Produces +560 bps margin improvement, monetises transaction intensive businesses FlexiGroup (ex acquisition) NPAT/ANR Bridge Acquisition NPAT/ANR Bridge +580 bps +560 bps Driven by innovative products • Repackage to include swap/double time • Ezi-pay Express continuing credit
Slide 9: Highly talented management
1 Highly talented management with diverse backgrounds aligned with shareholders An experienced Board and management team that bring together a range of skills from consumer, banking, leasing, telecommunications and technology sectors… Shareholders Board members and senior management hold c.40% equit
Slide 10: FXL has extensive access to distinct markets
2 FXL has extensive access to 3 distinct markets Business to Consumer Retail to Consumer & SME Business to Business Green Energy Jewellery Computer Catering equipment Solar PV, Sola Hot Water, LED Electrical / Appliances IT / Office Equipment Home (In-Door) Furniture, Small Retail Medical / Aestheti
Slide 11: The macro trends at the core of new market expansion
2 The macro trends at the core of new market expansion Established High Growth FXL Segments Growth in Online Leverage FXL credit history on 2 million Australians and relationships with 11,000 retail outlets Recruit team with PayPal experience to target online payment processing 11
Slide 12: Shift from retail point-of-sale to diversified financial services
2 Shift from retail point-of-sale to diversified financial services Extensive distribution and access to high growth markets Established High Growth FXL Segments Growth in Online $37b forecast in 2013. 56% of Australians buy online once a month 12
Slide 13: Strategy to capitalise on market gaps produces diversified growth
2 Strategy to capitalise on market gaps produces diversified growth In summary, the process is… Identify an Leverage core Innovate to Find accretive under serviced infrastructure drive growth acquisition market IT, Contact Centre and profit opportunities Collections, Sales & Training … to drive high
Slide 14: Well structured balance sheet
3 Well structured balance sheet Conservatively geared at 15% - SPV borrowings are non-recourse to FXL Performance – Recourse Balance Sheet (excl. SPV’s) Summarised Balance Sheet FlexiGroup FlexiGroup as at 30 June 2011 Excl. SPV's incl SPV's* Recourse Debt/Equity at 15%1. Includes $15m Certegy vendo
Slide 15: Conservative approach to risk
3 Conservative approach to risk Key impairment ratio improves 60 bps despite 19% growth in receivables Performance Net impairment losses improved 60 bps to 3.8% of Net Impairment Losses FY10 FY11 average net receivables. Leases $10.9m $10.8m – Business diversification reduces credit risk Personal Lo
Slide 16: Strong support from banks and Institutions
Strong support from banks and Institutions 3 Funding increased through the GFC, now diversified to 8 sources (from 2 in 2004) Performance FXL anticipated the post-GFC new funding paradigm Funding Facilities – Banks now require rated securitisable assets to meet new capital allocation changes 4 new c
Slide 17: FY12 Outlook
FY12 Outlook Confirm FY12 Cash NPAT guidance of +12% to 15% on FY11 FY09 FY 10 FY11 FY12 Fcst NPAT $34m $42m $53m $59 - $61m Q1 FY12 volume growth is +27% on pcp. Growth v PCP FY09 FY10 FY11 Q1 FY12 Volume Growth +35% +31% +27% +27% FY12 Key Growth Milestones – Achieve 10% finance market share of B2