Slide 1: Annual Results Presentation
Beforepay Group Limited A SX: B4 P Annual Results Presentation Annual Results FY24 Jamie Twiss – CEO Elena Chan - Acting CFO 27 August 2024
Slide 2: Disclaimer
FY24 Annual Results 3 Disclaimer This presentation has been prepared by Beforepay Group Limited To the maximum extent permitted by law, the Company and the Neither Beforepay nor any member of Beforepay Group represents or (the ‘Company’). members of the Group make no representation or warranty, expr
Slide 3: What we do
FY24 Annual Results 4 What we do Our Mission: To support people around Beforepay Carrington Labs the world with safe and For consumers Beforepay is our domestic consumer-lending For enterprise Carrington Labs commercialises the same AI affordable lending products business. Through our flagship Pay A
Slide 4: Ethical lending
FY24 Annual Results 5 Ethical lending Our approach has received industry recognition, with As an organisation committed to ethical1 Beforepay receiving multiple ethical-lending awards lending, Beforepay prioritises the financial well-being of our customers. APAC Ethical Finance International Busines
Slide 5: Revolutionising Lending with AI: Our B2B Solution for Lenders
FY24 Annual Results 6 Revolutionising Lending with AI: Our B2B Solution for Lenders We train proprietary AI models on a massive dataset to identify hidden risks and opportunities. This enables us to generate accurate alternative risk scores and optimal lending limits. Traditional credit scoring meth
Slide 6: Business Update
FY24 Annual Results 7 Business Update
Slide 7: FY24 Highlights
FY24 Annual Results 8 FY24 Highlights NPBT $m $3.9 NPBT NTM $m FY22 FY23 FY24 $3.9m $19.5m from a loss ($6.6m) in FY23 up 66% from FY23 ($6.6) Operating Net Defaults Expenses 1.4% $15.1m down from 2.1% in FY23 down from $18.7m in FY23 ($29.1) Pay Advances Active Users Cash $710m 240,254 $19.2m at 30
Slide 8: Pay Advance Business Model
FY24 Annual Results 9 Pay Advance Business Model Pay advances Net Transaction Monthly operating per month x Margin % ≥ expenses Active users Revenue Monthly overheads x _ + Pay advances per Net defaults Monthly marketing expense active user per month x _ Average pay advance Funding costs _ Direct co
Slide 9: Strong Growth in Net Transaction Margin Along with Tight Cost Control
FY24 Annual Results 10 Strong Growth in Net Transaction Margin $ Along with Tight Cost Control Net Transaction Margin and Operating Expenses by Quarter $5.6m $5.6m $5.2m Net Transaction Margin up 66% to $19.5m in FY24 from $4.8m $4.5m $11.7m in FY23. $4.4m $4.2m $4.2m $4.0m $3.7m $3.7m $3.7m $4.1m $
Slide 10: Total and Average Pay Advances
FY24 Annual Results 11 Total and Average Pay Advances Incremental Growth in Pay Advances +9% +8% $391 $387 Total Pay Advances Average Pay Advances $377 ($m) by Half Year ($) by Half Year $346 $359m $351m $324m $304m $291 $241 $195m $179 $132m $124 $73m $20m H1-FY21 H2-FY21 H1-FY22 H2-FY22 H1-FY23 H2
Slide 11: Active Users
FY24 Annual Results 12 Active Users +3% 240,254 Active Users or 3% Growth in FY24 Active Users 240,254 by Half Year 234,034 235,644 203,937 173,398 139,071 102,671 46,486 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Note: Certain financial metrics and information included throughout this
Slide 12: Declining Trend in Loan Defaults
FY24 Annual Results 13 Declining Trend in Loan Defaults Demonstrating Consistent Improvement in Credit Quality Gross and Net Defaults % by Half Year 7.4% 7.4% FY23 FY24 3.1% gross | 2.1% net 2.4% gross | 1.4% net 4.6% 4.6% 3.3% 3.2% 2.9% 3.0% 2.5% 2.3% 2.9% Gross defaults % (of pay advances inclusiv
Slide 13: Funding Costs – Debt Facility
FY24 Annual Results 14 Funding Costs – Debt Facility The short duration of our pay advances keeps funding costs low. 80% ~87 bps 26 days 15.31% (0.07 years) X Cost of external X Maximum loan-to- = Third party funding costs % based on Average duration debt facility value ratio of external average dur
Slide 14: Direct Service Costs
FY24 Annual Results 15 Direct Service Costs Continue to be Tightly Managed Direct Service Costs1 per Pay Advance by Half Year $2.68 FY23 FY24 $2.41 0.3% of Pay Advances 0.2% of Pay Advances $1.80 $1.32 $1.24 $1.09 $0.87 $0.77 H1 -F Y21 H2 -F Y21 H1 -F Y22 H2 -F Y22 H1 -F Y23 H2 -F Y23 H1 -F Y24 H2 -
Slide 15: NTM & Profit/(Loss) by Half Year
FY24 Annual Results 16 NTM & Profit/(Loss) by Half Year FY24 H2 FY24 H1 FY24 FY23 H2 FY23 H1 FY23 Active users (no. of users) 240,254 240,254 235,644 234,034 234,034 203,937 Average pay advance ($) 382 377 387 366 346 391 Pay Advances ($m) 709.6 351.0 358.6 628.0 324.1 303.9 Revenue1 % (of pay advan
Slide 16: Balance Sheet
FY24 Annual Results 17 Balance Sheet Strong Cash and Equity Position $m FY24 FY23 $ Change % Change Commentary Reflects timing of issuing pay advances and customer repayments, Cash position1 19.2 21.8 (2.6) (12%) as well as drawdown of receivables financing Receivables 50.2 41.8 8.4 20% Reflects gro
Slide 17: Cash Flow Statement
FY24 Annual Results 18 Cash Flow Statement Operating, Investing and Financing Activities $m FY24 FY23 Cash $19.2m Receipts from repayment of customers pay advances 691.6 605.0 Receipts of revenue 34.7 25.1 Payments to suppliers and employees (16.6) (19.2) Pay advances to customers (709.6) (628.0) Ca
Slide 18: Expansion and New Growth
FY24 Annual Results 19 Expansion and New Growth Existing core business • Build on recent user-growth momentum Pay advance • Release next version of risk-scoring model • Maintain cost focus while continuing to invest • Continue to monitor credit outcomes and adjust as appropriate New growth initiativ
Slide 19: Q&A
FY24 Annual Results 20 Q&A
Slide 20: Appendix
FY24 Annual Results 21 Appendix
Slide 21: FY24 Management Profit & Loss (P&L)
FY24 Annual Results 22 FY24 Management Profit & Loss (P&L) A$, unless otherwise stated FY24 A$, unless otherwise stated FY24 Revenue 35,313,322 EBITDA, excluding one-off and/or significant items 8,467,176 Gross defaults (17,841,686) Depreciation & amortisation expenses (D&A) (569,240) Gross defaults
Slide 22: FY24 NTM Reconciliation to Statutory P&L
FY24 Annual Results 23 FY24 NTM Reconciliation to Statutory P&L Management P&L – Revenue to Net Transaction Margin Statutory Profit and Loss Reference to Statutory A$, unless otherwise stated FY24 Profit and Loss A$, unless otherwise stated FY24 Revenue 35,313,322 1 Income Revenue Gross defaults (17
Slide 23: FY24 EBITDA Reconciliation to Statutory P&L
FY24 Annual Results 24 FY24 EBITDA Reconciliation to Statutory P&L Management P&L – Net Transaction Margin to EBITDA Statutory Profit and Loss Reference to Statutory A$, unless otherwise stated FY24 Profit and Loss A$, unless otherwise stated FY24 Net transaction margin 19,459,062 Revenue Net transa
Slide 24: Glossary
FY24 Annual Results 25 Glossary Term Definition Term Definition Active Users A customer of Beforepay, who has taken out a pay advance in the EBITDA Earnings before interest, taxation, depreciation and amortization (adjusted). previous 12 months from the date of the relevant information. The figures
Slide 25: Glossary
FY24 Annual Results 26 Glossary Term Definition Term Definition Net Defaults Actual and expected credit losses (net of recoveries). It comprises Recoveries Monies repaid by customers after an advance has defaulted at customer defaults plus current pay advances provisioned during the 62 days after th
Slide 26: Thank You
27 Investors Media Danny Younis Noeleene Yap Investor Relations Marketing and Communications Manager Beforepay Group Beforepay Group Ph: 0420 293 042 Ph: 0489 995 082 investorrelations@beforepay.com.au mediaenquiries@beforepay.com.au Thank You