Solvar Limited · ASX:SVR
Solvar — Shareholder Meeting (November 2023)
16 slides from Solvar's shareholder meeting presentation, Nov 10, 2023
Slide 1: 2023 AGM Presentation
For personal use only 2023 AGM Presentation 10th November 2023 Scott Baldwin Siva Subramani CEO & Managing Director CFO
Slide 2: Board of Directors
Board of Directors For personal use only Stuart Robertson Kate Robb Symon Brewis-Weston Scott Baldwin Terri Bakos Non-Executive Director & Chair of the Non-Executive Director & Chair of the Non-Executive Director & Chair of the Managing Director & Chief Executive Company Secretary Board Audit, Risk
Slide 3: Management Team
Management Team For personal use only Siva Subramani Pushkar Pendse Tessa Georgis Chief Financial Officer Chief Operating Officer Head of People & Culture Craig Harris Dave Morton Brian Anderson General Manager – Money3 Head of Credit Risk and Compliance General Manager – Automotive Financial Servic
Slide 4: The Group
The Group Market Opportunity Specialist Lender Track Record For personal use only Addressable market 1m new vehicles2 Consumer vehicles Commercial vehicles Operating over 20 Management aligned $40+ billion 1 3m used vehicles3 87% 5% years across with shareholders sold annually AUS & NZ Profitable &
Slide 5: The Group
The Group Business Units Assets financed Strategy For personal use only 50.7k 1.4k Collections Profitable growth focus 6.3k 1.1k Diversified Conservative distribution 0.5k leverage channels 0.3k All figures at 30 June 2023, unless otherwise noted 5
Slide 6: Products
Products For personal use only Product Location Australia New Zealand Consumer Consumer Consumer Commercial Consumer Purpose Vehicle Finance Personal loans Vehicle Finance Vehicle Finance Vehicle Finance Target up to $100,000* up to $35,000* up to $100,000 up to NZ$100,000 loan amount Term 24 - 72 m
Slide 7: Historic group performance
Revenue Loan Book AUD m 250 209 AUD m 1000 900 910 Historic group performance 200 188 800 733 For personal use only 700 145 601 150 600 124 500 434 92 373 100 400 74 300 253 • Loan book growth continuing to 50 200 100 deliver revenue growth 0 0 FY18 FY19 FY20 FY21 FY22 FY23 • Stable credit quality m
Slide 8: FY23 Financial Results
For personal use only FY23 Financial Results 8
Slide 9: Group financial results
Group financial results Amounts in $m unless otherwise stated FY23 FY22 % change Financial results – FY23 For personal use only Revenue 209.3 187.9 11.4% Bad debts (33.4) (27.2) 22.8% • Strong, double digit organic revenue Movement in impairment provisions (4.4) (5.3) (17.0%) growth in Australia Oth
Slide 10: Debt facilities and interest expense
Debt facilities Interest $m Average borrowings & interest rates $m expense For personal use only 600 50 41.9 • Funder margins improved from FY21 to 521.3 40 FY23; anticipate flat FY24 400 23.1 30 • Our policy is to hedge low margin 22.2 portfolios 344.0 20 • ~30.0% of borrowings are hedged by 200 21
Slide 11: Q1 FY24 Financial Results
For personal use only Q1 FY24 Financial Results 11
Slide 12: Q1 Results
Q1 Results For personal use only Revenue NPAT Bad Debt • Driving productivity improvement $55.2m $6.2m 4.1%* through consolidation of Australian of loan book loans management platforms Increase 8.2% on pcp Decrease 52.3% on pcp *annualised Q1 • New Zealand bad debt expense expected to trend down in
Slide 13: FY24 – Outlook
FY24 – Outlook For personal use only Market Outlook • Reduced competition providing opportunity to take market share in Australia • Further increases in front book margins to improve product yield over time • Recession in New Zealand contracting short term demand Financial Outlook for FY24 • Loan bo
Slide 14: Thank-you
Thank-you For personal use only Managing Director & CEO Scott Baldwin +61 3 9093 825 s.baldwin@solvar.com.au Chief Financial Officer Siva Subramani +61 3 9093 8246 s.subramani@solvar.com.au Investor Relations Tom Ng +61 3 7031 6075 t.ng@solvar.com.au
Slide 15: Glossary of terms
Glossary of terms For personal use only A$ or $ - Australian dollars NPAT – Net Profit After Tax Active customer - A customer with an outstanding balance NIM – Net Interest Margin ASIC – Australian Securities and Investment Commission NAF – Net Amount Financed: The amount of credit advanced to a cus
Slide 16: Disclaimer
For personal use only 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,