Slide 1: FY2023 Annual Results Presentation
Beforepay Group Limited ASX:B4P FY2023 Annual Results Presentation 28 August 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Beforepay Group Limited (‘Beforepay’ or the ‘Company’). This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters (‘Forward Statements’). Forward State
Slide 3: What we do
What we do. A leading provider Money provided A Fixed Fee of Pay on Demand directly of 5% Beforepay provides users We consider ourselves to be to the customer—does not on the amount with a service to manage a pay on demand service in need to be spent at specific advanced, with no their finances whic
Slide 4: Pay on Demand – a better way
Pay on Demand – a better way We believe that nobody wants to be in debt. We believe that most people, when money is tight, only want to borrowa small amount of money for a short period of time, to tide them over until they get paid. Beforepay is committed to providing a safe, affordable alternative
Slide 5: What makes us different
What makes us different Simple, flat, and transparent fee. We charge 5% on the amount advanced, with nothing more to pay. No late fees, no rapid-payment fees, no subscriptions, no tips, no interest incurred. Funds available instantly. The money is in your bank account for new users in as little as f
Slide 6: Business Update
Business Update B} Beforepay
Slide 7: FY2023 Highlights
FY2023 Highlights 1.9% 2.1 % 35% ($3.1m) Net Transaction Margin in Net Transaction Loss in FY23, Growth in Active Users EBITDA loss in FY23, down 84% FY23, up from 1.1% in FY22. down from 2.4% in FY22. YoY to 234,034 in FY23. from ($19.5m) in FY22. $1billion $42 $628m 96% Cumulative Pay Advances Ave
Slide 8: FY2023 Highlights
FY2023 Highlights Key Metrics H2 FY23 H1 FY23 % Change FY23 FY22 % Change Platform Metrics Pay Advances ($m) 324.1 303.9 7% 628.0 327.3 92% Average Pay Advance ($) 346 391 (12%) 366 268 37% Active Users (no. of users) 234,034 203,937 15% 234,034 173,398 35% Financial Metrics Beforepay income ($m) 16
Slide 9: Strong Growth in Net Transaction Margin Along with Tight Cost Control
Strong Growth in Net Transaction Margin $ Along with Tight Cost Control Net Transaction Margin and Operating Expenses by Half Year $12.8m $12.6m Operating Expenses down 26% YoY to $18.7m in FY23. $10.6m $8.1m $6.6m $5.1m $3.2m Net Transaction Margin up 229% YoY to $11.7m in FY23. $0.4m H1-FY22 H2-FY
Slide 10: Total and Average Pay Advances
Total and Average Pay Advances Incremental Growth in Pay Advances Total Pay Advances ($m) Average Pay Advance ($) +19% by Half Year by Half Year +66% $324m $391 $304m $346 $291 $241 $195m $179 $132m $124 $73m $20m H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY23 H2-FY23 H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY2
Slide 11: Rapid Growth in Active Users
Rapid Growth in Active Users 234,034 Active Users or 35% growth in FY23 +35% Active Users by Half Year 96% 234,034 203,937 of customers who have successfully repaid their first Pay Advance have taken out a second Pay Advance. 173,398 139,071 102,671 46,486 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 N
Slide 12: Declining Trend in Loan Defaults
Declining Trend in Loan Defaults Demonstrating Consistent Improvement in Credit Quality Gross and Net FY22 FY23 Transaction Loss % by Half Year 3.1% gross 2.4% net 3.1% gross 2.1% net 7.4% 7.4% 4.6% 4.6% 3.3% 3.2% 2.9% 3.0% 2.9% 2.3% 2.0% 2.0% Gross transaction loss % (of pay advances inclusive of f
Slide 13: Funding Costs – Debt Facility
Funding Costs – Debt Facility Low Sensitivity to Rising Interest Rates The short duration of our advances The funding cost per pay advance would keeps funding costs low only increase 6 basis points for each 1% increase in the cost of our loan facility. 26 days x 11.77% 80% ~67 bps x = (0.07 years) C
Slide 14: Direct Service Costs
Direct Service Costs Continue to be Tightly Managed Direct Service Costs per Pay Advance by Half Year FY22 FY23 Direct service costs include the costs in facilitating 0.6% of Pay Advances 0.3% of Pay Advances Pay Advances to customers: data collection, transaction categorisation, direct credit and d
Slide 15: Balance Sheet
Balance Sheet Strong Cash and Equity Position $m June 2023 Jun 2022 $ Change % Change Commentary Cash position 21.8 28.4 (6.6) (23%) Growth in loan book due to issuing advances, loss after tax, timing of customer repayments, drawdown of receivables financing Receivables 41.8 27.3 14.5 53% Reflects g
Slide 16: Cash flow Statement
Cash flow Statement Operating, Investing and Financing Activities $m FY23 FY22 Receipts from repayment of customers advances 605.0 300.7 Receipts of Beforepay income 25.1 15.3 Payments to suppliers and employees (19.2) (24.0) Advances to customers (628.0) (327.3) Other (1.4) (0.9) Net cash used in o
Slide 17: Our Pathway to Profitability
Our Pathway to Profitability 17
Slide 18: Our Pathway to Profitability/Breakeven
Our Pathway to Profitability/Breakeven Pay advances Net Transaction Monthly operating per month x Margin % ≥ expenses Active users Revenue % Monthly overheads x _ + Pay Advances per AU Net transaction loss Monthly marketing per month expense x _ Average pay advance Funding costs _ Direct costs 18
Slide 19: NTM & Pathway to Profitability by Half Year
NTM & Pathway to Profitability by Half Year FY23 H1 FY23 H1 FY23 FY22 H2FY23 H1FY22 Active users (no. of users) 234,034 234,034 203,937 173,398 173,398 139,071 Average pay advance ($) 366 346 391 268 291 241 Pay advances ($m) 628.0 324.1 303.9 327.3 195.3 132.0 Beforepay income* % 4.9% 5.0% 4.8% 4.6
Slide 20: What Comes Next
What Comes Next Constrain costs Continue growth in Australia with existing and drive towards direct-to-consumer profitability acquisition model Continuous Explore improvement of risk additional growth models, product, and opportunities customer experience 20
Slide 21: Q&A
Q&A 21
Slide 22: Thank You
Thank You 22
Slide 23: Appendix
Appendix (2 Beforepay
Slide 24: FY23 Management Profit & Loss (P&L)
FY23 Management Profit & Loss (P&L) A$, unless otherwise stated FY23 A$, unless otherwise stated FY23 Beforepay income 30,709,142 EBITDA, excluding one-off and/or significant items (3,068,500) Gross transaction loss (20,344,262) Gross transaction loss % (of pay advances inclusive of fees) (3.1%) Dep
Slide 25: FY23 NTM Reconciliation to Statutory P&L
FY23 NTM Reconciliation to Statutory P&L Management P&L – Income to Net Transaction Margin Statutory Profit and Loss Reference to Statutory A$, unless otherwise stated FY23 Profit and Loss A$, unless otherwise stated FY23 Beforepay income 30,709,142 1 Beforepay income Revenue Beforepay income $30,70
Slide 26: FY23 EBITDA Reconciliation to Statutory P&L
FY23 EBITDA Reconciliation to Statutory P&L Management P&L – Net Transaction Margin to EBITDA Statutory Profit and Loss A$, unless otherwise stated FY23 A$, unless otherwise stated FY23 Reference to Statutory Net transaction margin 11,736,564 Profit and Loss Revenue Beforepay income $30,709,142 Net
Slide 27: Glossary
Glossary Term Definition Term Definition Active Users A customer of Beforepay, who has taken out an advance in the previous Customer Acquisition Advertising and marketing expenses attributable to customer 12 months from the date of the relevant information. This includes Costs acquisition divided by
Slide 28: Glossary
Glossary Term Definition Term Definition Finance Costs Finance costs are related to the debt facility with Longreach and Net Transaction Actual and expected credit losses (net of recoveries). It comprises Loss customer defaults plus current advances provisioned during the interest on lease liability
Slide 29: Glossary
Glossary Term Definition Term Definition Operating The sum of all expenses less one-off and/or significant items, net Third-Party The facility agreement with Longreach for a maximum commitment of Expenses transaction loss, direct costs, finance costs, and depreciation and Debt Facility A$45 million