Slide 1: FY19 Results Presentation
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Slide 2: Disclaimer
Disclaimer. For personal use only FINANCIAL INFORMATION IS DERIVED FROM THE PRELIMINARY FINAL REPORT RELEASED TO THE MARKET ON 30 AUGUST 2019. NO INVESTMENT ADVICE OR OFFER OF SHARES directors, officers, employees and agents give any warranty, representation This presentation does not constitute inv
Slide 3: Our vision is to bring financial wellness to all Australians
Our vision is to For personal use only bring financial wellness to all Australians. 3
Slide 4: Contents
Contents. For personal use only 1 NOTE FROM THE CEO 2 THE WISR OPPORTUNITY 3 B U S I N E S S U P DAT E 4 F Y 1 9 P R E L I M I N A R Y R E S U LT S 5 FY20 OUTLOOK 4
Slide 5: Note from the CEO
For personal use only 1. the CEO. Note from 5
Slide 6: Note from the CEO
” Note from the CEO. For personal use only 2019 has been a pivotal year for Wisr as we execute our strategy to redefine and reinvent what a consumer lending company can be. Our unique business model and approach to this sector we believe sets us apart, and 2019 has delivered strong proof points that
Slide 7: The Wisr opportunity
2. For personal use only The Wisr opportunity. 7
Slide 8: Wisr is reinventing what a consumer lending company can be
Wisr is reinventing what a consumer lending company can be. For personal use only A Purpose-led company, which will be known for focusing on the financial wellness of Australians (we aim to own the financial 1 wellness space). A globally unique and innovative business model and ecosystem that redefi
Slide 9: There's never been a better time to build a purpose-led business in consumer finance
There’s never been a better time to build a purpose-led business in consumer finance. For personal use only Global trends. Local factors. USA UK Australia OPEN FINTECH ONLINE LENDING LAUNCHED 2006 2006 2014 BANKING MARKET SHARE AT YEAR 3 0.5% (2009) 0.5% 0.5% (2017) R O YA L COMMISSION Market Share
Slide 10: Expected consumer credit applications by product
1.53M 1.36M Personal Loans Credit Cards For personal use only 4.4 million applications for consumer credit expected in the next six months. 374,000 1.15M Auto Loans Home Loans 10 Source: Equifax Credit Pulse 2019 (published August 2019)
Slide 11: A significant opportunity exists for Wisr
A Significant For personal use only opportunity exists for Wisr. 3M PERSONAL LOAN APPLICATIONS Approximately 3 million personal loan applications expected per annum. 0.22% (CURRENT WISR PENETRATION) Wisr personal loan applications in FY19 as a share of potential expected personal loan applications.
Slide 12: Business momentum
Business momentum. For personal use only LOAN BOOK GROWTH DIVERSIFIED DEBT FUNDING • Proprietary end-to-end origination platform • Capital light platform play to date • Operational and marketing efficiency • Highly scalable • Ability to rollout new lending services • Hybrid model in FY20 to signific
Slide 13: Business update
For personal use only 3. update. Business 13
Slide 14: FY19 Highlights
FY19 Highlights. For personal use only Our unique business model and approach to this sector we believe sets us 2019 has been a pivotal year apart, and 2019 has delivered strong proof points that we are setting out on the right track. for Wisr as we execute our strategy to redefine and reinvent what
Slide 15: Wisr quarter on quarter loan origination growth
Wisr quarter on quarter loan origination growth. $108.8m For personal use only $21.9m (unaudited) $86.9m $18.8m Loan origination volume up 281% to $68.9m (FY18 $18.1m). Total loan originations (cumulative, to scale) $68.1m Quarterly loan originations (number) $16.9m $51.2m $11.9m $39.3m $7.9m $31.3m
Slide 16: Building market leading unit economics
Building market leading unit economics. For personal use only FY17 Operating Revenue FY18 FY17 FY19 Loan Volume FY18 FY19 FY17 Marketing Expenses FY18 FY19 0 1,000 2,000 3,000 0 20,000 40,000 60,000 $’000 $’000 EFFICIENCY AND MARGIN IMPROVEMENT Wisr continued the efficient scaling of its core person
Slide 17: Wisr Ecosystem highlights
Wisr Ecosystem highlights. For personal use only In FY19 Wisr delivered on the preliminary rollout of the Wisr Ecosystem, acquiring over 60,000 Australians to June 30 2019 into its channels. The Wisr Ecosystem includes the launch of a number of individually powerful, and collectively unique products
Slide 18: Our growth strategy
Our growth strategy. For personal use only SHORT TERM 1 • Continue to win in our competitive channels through superior tech, a strong brand, go-to-market strategy, customer experience, price point and capability of our highly-talented team – but continually monitor loan unit economics and not chase
Slide 19: The Wisr Ecosystem
For personal use only Ecosystem. The Wisr 19
Slide 20: Over 60,000 Australians entered the Wisr Ecosystem in FY19
Over 60,000 Australians entered the Wisr Ecosystem in FY19. For personal use only WisrApp WisrCredit Personal Loans 60,000 40,000 20,000 0 20 Source: Wisr data August 2019
Slide 21: Customer value proposition
” Customer value proposition. For personal use only THE WISR ECOSYSTEM PROVIDES AN ALL ENCOMPASSING FINANCIAL WELLNESS EXPERIENCE Consolidated all my debt. Now I TO SUPPORT CUSTOMERS THROUGH EVERY STAGE OF ACCESSING CREDIT. don’t have to worry about any payments dates. Once a month direct debit is v
Slide 22: One of Australia's most recognised fintechs
One of Australia’s most recognised fintechs. For personal use only 22
Slide 23: FY19 preliminary results
4. For personal use only FY19 preliminary results. 23
Slide 24: Year on year loan origination growth
Year on year loan origination growth. For personal use only $80m $68.9m (unaudited) $60m $40m $18.1m $20m $3.6m 0 FY17 FY18 FY19 24
Slide 25: Using customer transaction data for better outcomes
Using customer transaction data for better outcomes. For personal use only • Keeps us ahead of regulatory changes • Reinforces our commitment to ethical, responsible lending • Automatically verify income and liabilities • Identify undisclosed liabilities • Faster verifications • Deeper understanding
Slide 26: Credit quality
Credit quality. For personal use only CREDIT 9 0 + DAY D E L I N Q U E N C I E S • Notwithstanding that Wisr currently runs an off-balance sheet funding model, it reports credit performance for its originated loan book. • Wisr operates within the prime consumer lending space. • Credit quality has re
Slide 27: Debt funding model
Debt funding model. For personal use only S I G N I F I C A N T LY I M P R O V I N G W I S R M A R G I N S , W I T H R O O M T O G R O W. FY16 TO FY17 - ORIGINS FY18 TO FY19 - WISR 1 .0 F Y 2 0 O N WA R D S - W I S R 2 . 0 • Peer to Peer model origins • Initial wholesale funding • Hybrid model inclu
Slide 28: Profit & loss
Profit & loss. For personal use only • Operating income increase of 91% on FY18 driven by growth in loan origination volume. Key revenue items are loan establishment fees and management fees on loan book. The FY18 operating income includes full interest margin earned on balance sheet loan receivable
Slide 29: Balance sheet
Balance sheet. For personal use only • Cash of $12m at 30 June 2019 sees the Company well capitalised on the back of an oversubscribed capital raise of circa $15m in H2FY19. The cash figure excludes liquid loan receivables discussed below. • Total loan receivables of $6.3m at 30 June 2019 are predom
Slide 30: Cash flow
Cash flow. For personal use only • Cash flows from operating activities highlight the off-balance sheet loan funding model i.e. in FY19 $(66)m Net of lending and repayments represents loan origination and $65m Net proceeds from sale of loans represents subsequent loan sales. • Net cash used in opera
Slide 31: FY20 outlook
For personal use only 5. FY20 outlook. 31
Slide 32: Business evolution
Business evolution. For personal use only PHASE 3: FY20+ “ S C A L I N G T H E C O M PA N Y ” • Diversify our funding structure to significantly P H A S E 2: FY19 increase margin. “ C R EAT ING T HE NEO-LENDER • Activate B2B2C channels with strategic partners to reach millions of Australians. MO DEL
Slide 33: Strategic pillars
Strategic pillars. For personal use only GROWTH PRODUCTIVITY Aggressively grow the Strengthen our company safely. business model. PEOPLE CUSTOMER Be the best place to work. Deliver exceptional customer service. I N N O VAT I O N Develop innovative products & services that our customers love. 33
Slide 34: Outlook: FY20 and beyond
KEY PRIORITIES FOR FY20 Outlook: FY20 ORIGINATION GROWTH • Efficiently scale the core lending business and grow originations. and beyond. • Maintain credit quality and improve loan unit economics to deliver a greater share For personal use only of revenue per loan for Wisr. • Launch Wisr Secured Veh
Slide 35: Wisr: Australia's first neo-lender
smarter, For personal use only fairer, wisr Australia’s first neo-lender 35