Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (August 2024)
22 slides from Wisr's investor presentation, Aug 28, 2024
Slide 1: FY24 Results
FY24 RESULTS August 2024 1
Slide 2: Wisr has reimagined the consumer financial journey
WISR HAS REIMAGINED THE CONSUMER FINANCIAL JOURNEY Our platformʼs holistic approach to a customerʼs financial life expands the relationship well beyond the transaction FOR YOUR SMART PART 2
Slide 3: Our competitive advantage
OUR COMPETITIVE ADVANTAGE Proprietary Distribution Customer first Purpose-led technology channels lens product We can pivot quickly to improve We have strong and diversified Weʼre more than just a lender We've built the Wisr App to efficiencies and provide better distribution channels including and
Slide 4: Wisr in FY24
FY24 PRIORITIES FY24 RESULTS Prudent capital ✓ Strategic cost management decreased operating expenses by 19% and cost-to-income ratio to 28% FY23 WISR management 36% ✓ Transition to moderated loan volume settings through to May 2024 IN FY24 Improve our ✓ Secured $50M corporate facility from Nomur
Slide 5: FY24 key results
FY24 FINANCIAL LENDING KEY Operating revenue Improved yield metrics New loan originations Decrease driven by partially offset by a reduction $93.8M in loan book delivered a 2% $210M deliberate moderated RESULTS loan volume settings FY23 $91.9M increase in revenue FY23 $495M Total loan originat
Slide 6: FY24 key results cont.
FY24 CAPITAL CUSTOMER KEY Nomura corporate facility $50M A further $15M is available to fund the Companyʼs Monthly active users of Wisr App1 Additional loan repayments RESULTS made via one-time $35M draw of the facility utilised ongoing growth plans ↑57% YoY payment feature to repay existing $25M co
Slide 7: Return to growth
RETURN TO GROWTH Loan originations ● Following execution of the $50M pro forma Nomura corporate facility and stabilised macroeconomic 30% conditions, Wisr returned to pro forma growth growth Q4FY24 avg daily originations ● Achieved a 7% increase in loan originations to $55M in Q4FY24 compared to the
Slide 8: New corporate facility supports pivot to growth
NEW CORPORATE Warehouse funding model FACILITY SUPPORTS PIVOT TO GROWTH Illustrative new lending opportunity ● The enlarged $50M Nomura corporate facility provides additional strength to Wisrʼs balance sheet and the platform Run rate Annualised yield revenue to fund loan book growth CIRCA x 12.6% =
Slide 9: Illustrative EBITDA and financial metrics
ILLUSTRATIVE EBITDA AND FINANCIAL METRICS Wisr is well positioned in the medium-term to deliver a business with a NIM of 6.5% which would deliver strong profitability at scale ● Improved yield metrics partially offset FY24 FY23 Variance Jun-24 Indicative by a reduction in loan book delivered $ $
Slide 10: Loan book and revenue
LOAN BOOK AND REVENUE Loan originations Loan book ● $770M loan book, a decrease on FY23 $931M, driven by deliberate moderated loan volume settings ● $210M loan originations, a decrease on FY23 $495M, however a significant increase following the pivot back to growth in May 2024, with Q4FY24 run r
Slide 11: NIM
NIM Portfolio NIM movement Front book NIM movement 24 bps) 8 bps ● Portfolio NIM 5.23%, a slight decrease from FY23 5.47%, driven by an increase in funding costs ● Front book NIM Jun-24 run rate) 6.14%, an increase on Jun-23 6.06% ● The front book NIM will have a greater impact on portfoli
Slide 12: Credit quality
CREDIT QUALITY Customer credit scores and 90+ day arrears2 ● Portfolio quality maintained, with average credit score strong and stable over time at 7821 ● Portfolio yield consistently expanding through front book pricing initiatives, while also increasing front book credit scores to 786 FY23 769
Slide 13: Expected credit loss (ECL)
EXPECTED CREDIT LOSS ECL ● As at 30 June 2024, Wisr had a total ECL provision of 3.18%1 of the loan book and a total credit loss expense P&L) of 2.16% of the RECONCILIATION OF EXPECTED CREDIT LOSS PROVISION $ % average loan book ● The 0.31% increase in ‘provision coverageʼ is due to the seasoning
Slide 14: Receivables funding program
RECEIVABLES FUNDING PROGRAM ● WH1 Personal Loan WH) has $400M of committed Funding at 30Jun-24 funding and an undrawn capacity of $126M, while WH2 Secured Vehicle WH) has committed funding of $250M and an undrawn capacity of $94M (total $220M available) ● In December 2023, the Company successfull
Slide 15: Capital position
CAPITAL Restricted cash Cash held in warehouses and term deal trusts: POSITION $34.0M ● Undistributed customer loan repayments (principal and interest) ● Unutilised funds from note subscriptions (predominantly third-party debt) ● Use of funds restricted to funding loans and operating warehouses and
Slide 16: Wisr FY25 objectives
WISR FY25 OBJECTIVES IN FY25 Growth1 ● Grow loan originations in FY25 vs. FY24 by 75% ● Drive growth in the loan portfolio We are entering an exciting new phase at Wisr, having successfully resumed growth Profitability1 ● Focus on loan volume growth at attractive unit economics, maintaining high cr
Slide 17: Thank you
THANK YOU FOR YOUR SMART PART 17
Slide 18: Appendix
APPENDIX FOR YOUR SMART PART 18
Slide 19: Profit and loss
PROFIT 30Jun-24 $ʼ000 30Jun-23 $ʼ000 Variance $ʼ000 AND LOSS REVENUE Operating income 93,774 91,857 1,917 STATUTORY EXPENSES Employee benefits expense 15,955 20,262 4,307 Other comprehensive loss movement: Marketing expense 305 2,264 1,959 Customer processing costs 3,120 4,710 1,590 In
Slide 20: Balance sheet
30Jun-24 30Jun-23 Variance $ʼ000 $ʼ000 $ʼ000 ASSETS BALANCE SHEET Cash and cash equivalents 62,363 53,577 8,786 Trade and other receivables 1,177 2,032 854 Loan receivables 750,699 909,217 158,518 STATUTORY Other assets 1,449 1,620 171 Property, plant and equipment 118 280 161 Net Assets m
Slide 21: Cash flow
30Jun-24 30Jun-23 Variance $ʼ000 $ʼ000 $ʼ000 CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOW Receipts from customers 92,499 88,931 3,568 Payments to suppliers and employees 26,531 38,781 12,250 65,968 50,150 15,818 STATUTORY Interest received on investments and cash 1,659 666 993 Management fee
Slide 22: Disclaimer
No investment advice or offer of shares Statements about past performance are DISCLAIMER not necessarily indicative of future This presentation does not constitute performance. To the extent required by investment advice, or an inducement or law, neither Wisr of any of its directors, recommendation