Earlypay Limited · ASX:EPY
Earlypay — H1 FY22 Earnings Presentation
13 slides from Earlypay's earnings presentation, Feb 24, 2022
Slide 1: H1 FY22 Results
For personal use only H1 FY22 Results CEO Daniel Riley COO James Beeson CFO Steven Shin
Slide 2: Earlypay provides secured finance to SME businesses
Employing ~90 people in Brisbane, Sydney and Melbourne, Earlypay provides secured finance to SME businesses For personal use only Servicing 3,000+ SMEs 0.1%+ of total SMEs $9bn+ invoices funded since 2015 Equipment Finance Book $100m+ $1.2bn+ in H1 FY22 Loan book up 19% on pcp Improving operating le
Slide 3: Long history of NPATA, EPS & DPS growth excluding COVID
Earlypay has a long history of NPATA, EPS & DPS growth excluding COVID For personal use only NPATA ($m) 15.0+ FY16 – FY22 CAGR 57% Earlypay has upgraded its Full Year Guidance to NPATA $15m+, Impacted by COVID EPS to 5.2cps+ and DPS to 3.2cps+, all new records 9.5 8.7 7.8 6.4 5.1 3.2 5.2 3.8 3.8 7.7
Slide 4: H1 FY22 Update
For personal use only H1 FY22 Update
Slide 5: Upgrade to FY22 NPATA guidance to $15m+ after strong H1
Upgrade to FY22 NPATA guidance to $15m+ after strong H1 For personal use only $27.1m $12.7m $7.7m REVENUE EBITDA NPATA1 ↑24% pcp ↑29% pcp ↑118% pcp 28.4% 2.76c 1.4c NPATA MARGIN EPS2 DPS (fully franked) vs 16.1% pcp ↑74% pcp ↑40% pcp 1. After adjusting for non-cash amortization 2. Based on NPATA 5
Slide 6: Continues to grow revenue and earnings off the bigger loan book
Earlypay continues to grow revenue and earnings off the back of the bigger loan book For personal use only $m H1’212 H1'22 Δ pcp Revenue was up 24% on pcp due to higher invoice finance Revenue 21.8 27.1 24% volumes Total Expenses (11.9) (14.4) 21% H1’22 Expenses includes $0.7m non-cash provision (pc
Slide 7: Robust balance sheet with $25m of cash
Earlypay has a robust balance sheet with $25m of cash at 31 December 2022 For personal use only $m H1'21 H1'22 Δ pcp $25m cash provides headroom to aid in achieving further Cash and cash equivalents 44.8 25.0 -44% organic growth Receivables - Debtor Finance 199.7 275.2 38% Receivables - Finance Leas
Slide 8: Positive net operating cash flow of $9.2m for H1'22
Earlypay generated positive net operating cash flow of $9.2m for H1’22 For personal use only $m H1'21 H1'22 Receipts driven by interest earned on both the invoice and Receipts 14.7 15.6 equipment financing loan books Interest received 9.5 12.8 Payments (16.3) (13.8) Finance costs driven by the aggre
Slide 9: Material uplift in volumes supported by lower cost of funding
Material uplift in volumes was supported by lower cost of funding For personal use only $m H1'21 H1'22 Δ pcp TTV Margin = Revenue Key Metrics TTV ($m) 887 1198 35% Growth in TTV driven primarily by new clients, up 35% on pcp Margin % 1.49% 1.55% Revenue 13.2 18.6 41% New business pipeline is strong
Slide 10: Equipment Finance picks up as origination volumes expand
Equipment Finance has picked up as EPY expands origination volumes supported by the improved economic outlook post lockdowns For personal use only $m H1'21 H1'22 Δ pcp Growth has resumed in the Equipment Finance division Key Metrics following extended lockdowns in key regions: Revenue 7.1 7.8 9% Oth
Slide 11: Diverse funding to support growth across all products
Earlypay has diverse funding to support growth across all products For personal use only Increase in existing warehouse facilities in May’21 and Facility Size Cost Comments Nov’21 to accommodate loan book growth Invoice Finance Warehouse Facility 1 & 2 $160m Sub-3% Increased by $25m in Nov 2021 A ne
Slide 12: Upgraded FY22 guidance to NPATA of $15m+
Upgraded FY22 guidance to NPATA of $15m+, EPS 5.2cps+ & DPS 3.2cps+ fully franked For personal use only NPATA ($m) FY16 – FY22 CAGR 57% 15.0+ The beginning of H2 has started ahead of expectations 9.5 The strong start to H2 supports a further increase to FY22 8.7 7.8 6.4 guidance to $15m+ NPATA, EPS
Slide 13: Important notice and disclaimer
This presentation (”this Presentation”) has been prepared by Earlypay Limited [ACN 098 952 277] (“EPY” or the “Company”) and is dated 24th February 2022. For personal use only Summary information This presentation contains summary information about the current activities of EPY as at the date of thi