Slide 1: Humm Goes Global: 1H21 Results
1H21 RESULTS // 24 FEBRUARY 2021 HUMM GOES 1H21 RESULTS REBECCA JAMES // CEO GLOBAL. 1 JASON MURRAY // CFO 24 FEBRUARY 2021
Slide 2: Agenda
1H21 RESULTS // 24 FEBRUARY 2021 01. 1H21 key highlights 02. Strategy update 03. 1H21 group financials 04. Summary 05. Appendices Agenda // 2
Slide 3: Buy on your terms
1H21 RESULTS // 24 FEBRUARY 2021 hummgroup // Buy on your terms We’re liberating people from a ‘one size fits all’ approach. We enable seamless approvals for purchases big, small or business related. Empowering consumers to choose how they wish to pay, with terms from five fortnights through to five
Slide 4: 1H21 Key Highlights
BUILT TO SHOP @bundil = BUY NOW PAY LATER EVERYWHERE
Slide 5: 1H21 key highlights
1H21 RESULTS // 24 FEBRUARY 2021 1H21 key highlights // GROUP: TOTAL CUSTOMERS GROUP: NET LOSS/ANR GROUP: TOTAL APP DOWNLOADS +40% PCP -10bps PCP +89% PCP 2.62M 540k 4.9% 2.28M 4.6% 1.76M 1.87M 371k 3.3% 3.2% 287k 56k Jun-19 Dec-19 Jun-20 Dec-20 2H19 1H20 2H20 1H21 2H19 1H20 2H20 1H21 BNPL: VOLUME B
Slide 6: Strategy Update
STRATEGY UPDATE // 6
Slide 7: Strategy for growth
1H21 RESULTS // 24 FEBRUARY 2021 Strategy for growth // New products for Driving customer Expanding the International new audiences engagement instalment expansion payment core Addressing new markets Driving customer New merchants and Expansion into new markets through bundll and engagement and tran
Slide 8: Displacing the $30b SME credit market
1H21 RESULTS // 24 FEBRUARY 2021 1 NEW PRODUCTS FOR NEW AUDIENCES // Displacing the $30b SME credit market FOR THOSE... 2.9m SME owners in Australia and New Zealand who’d rather be baking, planning, hammering, painting, making, delivering, writing and building their business. WHO THINK... Finance sh
Slide 9: Payment options to suit every need
1H21 RESULTS // 24 FEBRUARY 2021 1 NEW PRODUCTS FOR NEW AUDIENCES // Payment options to suit every need Purchases grouped Get an extra Convert any monthly into monthly month for a balance to a 6, 9 or balances with 3.5% fee, up to 12 month plan for a another month to two times. fee of 1.5% per repay
Slide 10: Our BNPL anywhere product is resonating
1H21 RESULTS // 24 FEBRUARY 2021 1 NEW PRODUCTS FOR NEW AUDIENCES With inbuilt tools supporting financial wellness, // our BNPL anywhere product is resonating CUSTOMERS (CUMULATIVE) MONTHLY TRANSACTIONS MONTHLY VOLUMES 51.8k 321k $11.4m 2 105k 2 $3.7m 221k $7.7m 82k $2.7m 15.6k 1 1 1 Jun-20 Aug-20 O
Slide 11: Delightful app experiences
1H21 RESULTS // 24 FEBRUARY 2021 2 DRIVING CUSTOMER ENGAGEMENT // Delightful app experiences INSTANT PROVISIONING. MARKETPLACE. BPAY. MANAGE REPAYMENTS. Sign up and shop in less than two minutes Two click shopping experience BNPL bills at over 23k providers Business Now Pay Later These features and
Slide 12: More places to shop driving engagement
1H21 RESULTS // 24 FEBRUARY 2021 2 DRIVING CUSTOMER ENGAGEMENT // More places to shop driving engagement 1. Figures relate to humm AU, NZ and IE transaction volumes for 1H21. 12
Slide 13: New BNPL products growing rapidly
1H21 RESULTS // 24 FEBRUARY 2021 3 EXPANDING THE INSTALMENT PAYMENT CORE // New BNPL products growing rapidly BNPL MONTHLY APP DOWNLOADS BNPL MONTHLY TRANSACTIONS 418,378 +130% 119,727 +316% 52,015 100,460 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 BNPL MONTHLY VOLUMES (A$
Slide 14: Only BNPL player in Ireland
1H21 RESULTS // 24 FEBRUARY 2021 3 EXPANDING THE INSTALMENT PAYMENT CORE // Only BNPL player in Ireland +44% +95% +71% ` 54k 1,127 $57m $39m 28k 658 Future Generation Energy 1H20 1H21 1H20 1H21 1H20 1H21 Signed 295 retailers in 1H21. CUSTOMERS RETAIL PARTNERS TRANSACTION VOLUME 14
Slide 15: United Kingdom and Canada launch in 2H21
1H21 RESULTS // 24 FEBRUARY 2021 4 INTERNATIONAL EXPANSION // United Kingdom and Canada launch in 2H21 BNPL adoption is still in its infancy, with a significant opportunity to displace outdated traditional point of sale finance. We are well placed to capture the shift from revolving credit to paying
Slide 16: Growing merchant base signed for United Kingdom
1H21 RESULTS // 24 FEBRUARY 2021 4 INTERNATIONAL EXPANSION // Growing merchant base signed for United Kingdom PAMELA SCOTT RIVER MEDICAL INSTASMILE MCGUIRKS GOLF ZELLEBRATE THERAPIE CLINIC CIGALA CYCLING MORA UK WEHRLY BROS GOLF SIMULATORS BELMORE THERAPIE KASH BEAUTY NORTHXSOUTH LUXSTREET BELLA BEL
Slide 17: Group Financials
1H21 GROUP FINANCIALS // 17
Slide 18: Financial performance. Dividends.
1H21 RESULTS // 24 FEBRUARY 2021 hummgroup ($m)1 1H21 1H20 v PCP Financial performance. Gross income 225.2 240.7 (6.4%) • Gross income of $225.2m, down 6.4%, largely attributable to lower interest Gross profit 174.3 181.8 (4.1%) income in Australia Cards and reduced income from the discontinued cons
Slide 19: Operating expenses
1H21 RESULTS // 24 FEBRUARY 2021 Operating expenses // $98.1 OPERATING EXPENSES 1H21 VERSUS 1H20 ($M) ($13.0) $87.2 Leaner core operation. $3.9 ($3.6) $1.8 • 1H21 operating expenses (including marketing and depreciation) of $87.2m, down $10.9m on 1H20. • Payroll expense down $13.0m on 1H20. This inc
Slide 20: Buy Now Pay Later
1H21 RESULTS // 24 FEBRUARY 2021 Buy Now Pay Later // Investment for growth. $9.8m • Cash NPAT of $3.1m (1H20: $5.1m), impacted by investment in new products including bundll +14% $8.4m and humm New Zealand. • Volume of $473.0m, up 13.8% (1H20: $415.8m) reflecting strong performance in humm Ireland,
Slide 21: Cards
1H21 RESULTS // 24 FEBRUARY 2021 Cards // AU CARDS 88% (43%) Robust performance in a challenging environment. $354m $12.2m Australia Cards Cash NPAT for 1H21 of $12.2m, up 87.7% with: $201m $6.5m • Volume down by 43.2% due to COVID-19 impacts on merchant activity, particularly FY19 in travel and hos
Slide 22: Commercial & Leasing
1H21 RESULTS // 24 FEBRUARY 2021 Commercial & Leasing // Revitalised business driving strong results. 47% • Cash NPAT of $13.8m, up 46.8% in (1H20: $9.4m). 47% • Volume up 46.9% driven by strong origination growth in Australia, solidifying the strategy to focus on lending via the broker channel. • S
Slide 23: Commercial & Leasing
1H21 RESULTS // 24 FEBRUARY 2021 Commercial & Leasing // AUSTRALIA COMMERCIAL 29% Australia Commercial changing profile. 29% 28% 27% • Operating income of $23.5 million increased 49.3% on 1H20. 25% • Continued growth in operating income despite changing profile as product mix moves from commercial l
Slide 24: Credit risk management
1H21 RESULTS // 24 FEBRUARY 2021 Credit risk BNPL 4.9% 4.1% management // 1H20 NET LOSS/ANR 1H21 Data driving improvements over time. AU CARDS 4.2% 3.8% BNPL • Net loss / ANR down 80bps to 4.1%. 1H20 1H21 NET LOSS/ANR • Lower net loss driven by reduced arrears and improved portfolio performance from
Slide 25: Wholesale funding facilities
1H21 RESULTS // 24 FEBRUARY 2021 Wholesale funding facilities // Headroom to fund future growth. • Successful humm Australian securitisation of $250m executed in October 2020. $3,020m $2,946m • Long established Australian securitisation program continuing to drive funding efficiency with over $470m
Slide 26: Corporate debt facilities
1H21 RESULTS // 24 FEBRUARY 2021 Corporate debt facilities // Growth underpinned by balance sheet flexibility. • Substantially deleveraged the balance sheet to position hummgroup for growth. • A portion of the 1H21 capital raise proceeds utilised to repay corporate borrowings. $197m • Nil net gearin
Slide 27: Summary
SUMMARY // 27
Slide 28: Moving forward
1H21 RESULTS // 24 FEBRUARY 2021 // Moving forward • We are on a mission to revolutionise the way people buy. MARKET OPPORTUNITY • We have a differentiated solution enabling seamless approvals for purchases big, small or business related. Total addressable market $1.9t • We empower consumers to choo
Slide 29: Appendices
Me @hunm’croup APPENDICES // eoaee flexicommercial.
Slide 30: Customer-centric approach to regulation
1H21 RESULTS // 24 FEBRUARY 2021 // Customer-centric approach to regulation ASIC report 672. BNPL code of practice. • Report highlights strong and continuous engagement from the BNPL sector. • Code first proposed by hummgroup in 2019. • A number of ASIC’s best practice recommendations implemented to
Slide 31: NPAT reconciliation
1H21 RESULTS // 24 FEBRUARY 2021 NPAT reconciliation // hummgroup ($m) 1H21 1H20 v PCP% Cash NPAT 43.4 34.5 25.8% Non-cash items Amortisation of acquired intangible assets 1.1 1.2 (8.3%) Share based payments 1.6 – (0.0%) Sale of Think Office Technology 1.2 – (0.0%) ` Redundancy and restructure 0.9 –
Slide 32: Profit and Loss ($m)
1H21 RESULTS // 24 FEBRUARY 2021 Profit and Loss ($m) 1H21 1H20 v PCP % Interest income 172.9 181.8 (4.9%) Fee and other income 52.3 58.9 (11.2%) Gross income 225.2 240.7 (6.4%) Cost of sales (12.2) (13.2) (7.6%) Interest expense (38.7) (45.7) (15.3%) Gross profit 174.3 181.8 (4.1%) Depreciation and
Slide 33: Balance Sheet ($m)
1H21 RESULTS // 24 FEBRUARY 2021 Balance Sheet ($m) 1H21 1H20 v PCP % Cash and cash equivalents 175.1 168.2 4.1% Receivables and customer loans1 2,465.9 2,670.8 (7.7%) Equity and other investments 14.4 14.3 0.7% Other assets 18.5 24.0 (22.9%) Current and deferred tax assets 43.0 77.0 (44.2%) Goodwil
Slide 34: Consolidated Cash Flow ($m)
1H21 RESULTS // 24 FEBRUARY 2021 Consolidated Cash Flow ($m) 1H21 1H20 v PCP % NPAT 38.6 33.3 15.9% Share-based payments 2.1 0.1 LRG Depreciation and amortisation 13.3 9.6 38.5% Impairment losses on loans and receivables 25 38.6 (35.2%) Changes in other operating assets and liabilities 18.6 (15.6) (
Slide 35: Disclaimer
1H21 RESULTS // 24 FEBRUARY 2021 Disclaimer // No recommendation, offer, invitation or advice anything contained in, or omitted from, this presentation. This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or
Slide 36: Thank you
1H21 RESULTS // 24 FEBRUARY 2021 Thank you // 36