Raiz Invest Ltd. · ASX:RZI
Raiz Invest — H1 2023 Earnings Presentation
20 slides from Raiz Invest's earnings presentation, Feb 27, 2023
Slide 1: HY 2023 Results Presentation
HY 2023 Results Presentation 27 February 2023 Australia’s leading WealthTech delivering in all economic cycles Level 11, 2 Bulletin Place, Sydney NSW 2000 Announcement authorised by Board of Directors
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. This presentation is subject to the conditions outlined below. Your receipt or viewing of the Presen
Slide 3: HY23 Results overview
01 HY23 Results overview
Slide 4: Group results highlights
Group results highlights Material cost reductions for ongoing growth and path to profitability HY23 Financial Summary (December 2022) A$58.9 ARPU (Australia run-rate(1)) Australia delivering 63% Gross profit margin (Raiz Micro Investing platform) 676k A$1,050m strong unit economics Active Global Tot
Slide 5: Continued robust growth
Continued robust growth Consistent active customer and FUM growth achieved with increased pricing January 2023 292k A$1.1bn (#) Active Australian (A$m) Australian 30 0,0 00 FUM 1,200 Customers Active Australian Customers (LHS) Australian Retail FUM (RHS) Australian Superannuation FUM (RHS) 27 5,0 00
Slide 6: Our digital investment products unlock financial freedom
Our digital investment products unlock financial freedom Comprehensive investment product suite that has continued to evolve to suit the needs and requests of target customers Raiz Invest Raiz Invest Super Raiz Property Raiz Rewards Raiz Kids n Raiz Invest users choose to n Raiz Invest Super include
Slide 7: Strategic Review of Southeast Asian Operations
Strategic Review of Southeast Asian Operations Reduce equity positions with strong local JV partners Raiz will transition the Southeast Asian operations to licence-based agreements with strong local joint venture partners who will be the majority owners. Key Focus Areas 1 Indonesia: Finalise potenti
Slide 8: Stable revenue through economic cycles
Stable revenue through economic cycles Business model provides multiple revenue streams Maintenance Fee Netting 62% 3% A monthly subscription fee of A$3.50 per Bid/Offer spread captured where an month (or A$4.50 per month for acquisition or disposal of ETF units does Sapphire + Custom Portfolios) is
Slide 9: Australia has delivered continued robust outperformance across key metrics
Australia has delivered continued robust outperformance across key metrics Strong results providing a solid platform for ongoing growth and path to profitability demonstrated by Australian business Active Customers FUM Revenue (Raiz Micro Investing Platform) (#) (A$m) (A$m) Retail 1,036 8.3 8.3 1,03
Slide 10: Detailed financial information
02 Detailed financial information
Slide 11: Statement of Financial Performance
Statement of Financial Performance To be read in conjunction with the Financial Report for the half-year ended 31 December 2022 % vs A$’000 HY22 HY23 HY22 Micro investing platform 8,660 8,740 1% Other financial services 604 544 (10%) • Group revenue flat year on Year (YOY) to A$9.3m Group revenue 9,
Slide 12: Statement of Cash Flows
Statement of Cash Flows To be read in conjunction with the Financial Report for the half-year ended 31 December 2022 A$’000 HY22 HY23 Receipts from customers 9,977 10,008 Payments to suppliers and employees (9,688) (12,537) Government grants and tax incentives - - • Net cash outflow from operating a
Slide 13: Statement of Financial Position
Statement of Financial Position To be read in conjunction with the Financial Report for the half-year ended 31 December 2022 A$’000 FY22 HY23 Assets Cash and cash equivalents 15,538 10,918 Trade and other receivables 1,959 3,553 • As of 31 December 2022, Raiz had cash, cash Other financial assets 59
Slide 14: Outlook
03 Outlook
Slide 15: We have a large addressable market in front of us
We have a large addressable market in front of us Favourable market dynamics support a large addressable market opportunity in Australia Investing Superannuation 25.4m § The Superannuation industry in Australia currently holds Further opportunity with ~A$3.4tn in AUM population not yet engaging with
Slide 16: Management strategic outlook
Management strategic outlook Strategic review clearly provides confirmed target operating model and clear path to profitability § Continue to grow core Australian business and improve product offering Grow core Australian § Structured marketing campaigns developed for new and re-engagement of in-act
Slide 17: Appendix
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Slide 18: Raiz at a glance
Raiz at a glance Category leader and creator of Financial Wellness Business description Investment highlights n Raiz (formerly a joint venture with Acorns US) launched in Australia in 2016. As at Favourable macroeconomic drivers and increasing addressable market 31 January 2023, Raiz has over 3.28m
Slide 19: Market information
Market information Share price, capital structure, and significant shareholders Share Price & Volume Capital structure (24-Feb-23) A$ 1.6 1.0m Shares on issue 93.4m Share price A$0.49 A$ 1.4 12 month range A$1.37 – A$0.41 Market capitalisation A$45.8m A$ 1.2 Cash & term deposits 31 December 2022 A$1
Slide 20: Thank you!
Thank you! Investor and media enquiries: Brendan Malone / Grant Brits ir@raizinvest.com.au ASX:RZI