Slide 1: FY21 Results Presentation
FY21 Results Presentation Year to 31 March 2021
Slide 2: Who we are
Who we are Plenti is a fintech lender. We’re on a mission Traditional lenders can be slow, complicated and offer poor value. Purpose To bring our customers’ big ideas to life We established Plenti to use smart technology to provide faster, fairer loans. Vision We laid strong foundations as a private
Slide 3: FY21 highlights
FY21 highlights We delivered strong growth and improved key metrics. Key highlights Originations Loan portfolio Revenue Pro forma Cash NPAT $470m $615m $53.1m $(6.8m) +64% yoy +61% yoy +28% yoy 42% improvement 90+ arrears First fintech 31 bps Raised $55m via IPO in September 2020 to consumer lender
Slide 4: Our growth
Our growth Loan originations ($m) Our loan origination 690 growth has accelerated. 700 Q4 FY21 run-rate loan originations, 600 120% above PCP 500 470 FY21 loan origination growth 400 64% 300 286 230 Q4 loan originations versus PCP 120% 200 152 100 74 Cumulative lending since launch 30 $1.3bn 2 0 FY1
Slide 5: Who We Are / Operational Performance / Technology / Financial Results / Outlook
Who We Are Operational Technology Financial Outlook Performance Results 5
Slide 6: Our opportunity
Our opportunity We are building a large, enduring brand and business across three substantial lending verticals. Automotive Renewable energy Personal loans $33bn+ 378k $12bn+ Annual Lending1 Households installing solar Annual Lending3 annually2 Banks/traditional lenders exiting as they Strong househ
Slide 7: Our strategy
Our strategy We are committed to building Australia’s best lender. Establish market Extend technology Optimise funding leadership advantage • Establish prime lending • Continually invest in our • Develop and maintain funding leadership positions across technology platform to structures that provide
Slide 8: Our customer experience
Our customer experience With more 5 star reviews than any other consumer lender, we are recognised for providing outstanding customer experiences – ease, simplicity, speed, value – driving trust and adoption. Outstanding value personal Outstanding value car loan Expert’s choice personal Gold award –
Slide 9: Operational Performance
Who We Are Operational Technology Financial Outlook Performance Results 9
Slide 10: Strengthened customer reach
Strengthened customer reach We continued to broaden Loans funded by source Borrower averages our customer reach, allowing • >800 credit score us to drive $3bn of loan • $92k income demand in FY21. • 42 years old 14% • Homeowner Broker partners Broker partners (e.g.) 10,400 12% 47% up 1,400 yoy Renew
Slide 11: Automotive lending growth
Automotive lending Renewable energy Personal lending Automotive lending growth Loan originations ($m) We took market share 250 230.8 • Achieved exceptional growth following 3+ years investment in technology, 200 customer reach, sales teams and funding 150 301% • Extended origination capabilities thr
Slide 12: Renewable energy finance growth
Automotive lending Renewable energy Personal lending Renewable energy finance growth Loan originations ($m) We continued our market share gains 60 57.1 • Onboarded ~150 new merchant firm partners 50 33% 43.0 • Executed delivery of two significant 40 Government renewable energy programs 30 • Launched
Slide 13: Personal lending performance
Automotive lending Renewable energy Personal lending Personal lending performance Loan originations ($m) Our personal lending rebounded strongly 140 • Substantial change in environment at half 125.0 year: 120 – Reduced marketing investment and 99.3 117% 100 tightened credit criteria in H1, in 86.6 r
Slide 14: Credit performance
Credit performance We maintained our low-risk, prime loan portfolio, with low arrears. Average credit score on loan portfolio 90+ days arrears2 850 2.0% Big four unsecured average3 800 1.5% 750 1.0% 700 Moderate COVID-19 impacts Indicative big four1 0.5% 650 600 0.0% May-19 Nov-18 Nov-19 Jan-19 Jul-
Slide 15: Funding sources
Funding sources We continued to build resilience by diversifying and deepening our funding sources. Warehouse Plenti Lending Plenti Wholesale Overall funding Platform Lending Platform advancements Description • Warehouse and • 23,500+ • Flexible funding • Reduced average funding securitisation regis
Slide 16: Technology
Who We Are Operational Technology Financial Outlook Performance Results 16
Slide 17: Technology-led lending
Technology-led lending We’ve built a market-leading platform. End-to-end technology platform built and maintained in-house, supported by over 40 onshore and offshore engineers, product specialists and designers Allows Plenti to deliver faster, fairer loans to partners and borrowers through: • Outsta
Slide 18: Technology by the numbers
Technology by the numbers We are a true fintech lender. mi. 80 99.99% Up to 80 credit algorithms and rules Platform uptime evaluated per credit decision 2,300+ 1.6m Payments processed per day Web requests from customers 40+ Engineers, product managers 10 Up to 10 external data providers and partners
Slide 19: Technology-led growth
Technology-led growth Constant innovation helped drive our market share gains. Automotive lending Renewable energy finance Personal lending • For broker partners • Transparent BNPL finance launched to • Deeper technology integrations with – Improvements to broker portal complement existing loan offe
Slide 20: Technology-led operational efficiency
Technology-led operational efficiency Our operational efficiency has consistently improved as we scale. Costs (S&M, PD, G&A - normalised) as % of dollars funded1 10.0% 9.1% 8.0% 7.7% 40% reduction 6.4% 6.0% 5.5% 4.0% 2.0% 0.0% H1 FY20 H2 FY20 H1 FY21 H2 FY21 1. Averages exclude March, April and May
Slide 21: Technology-led experiences
Technology-led experiences Our technology helped us deliver loan experiences that our partners and customers loved. Referral partner feedback “Plenti is our go to lender when we “Working with Plenti provides us an “Plenti are quickly establishing “Plenti has enabled clients of want quick, easy to un
Slide 22: Financial Results
Who We Are Operational Technology Financial Outlook Performance Results 22
Slide 23: Results summary
Results summary We delivered strong growth and progressed towards achieving profitability. ($m, year ending 31 March) FY20 FY21 Change Loan originations 286.4 470.4 +64% Loan portfolio period end 380.9 614.6 +61% Loan portfolio average 310.8 452.2 +45% Revenue 41.5 53.1 +28% Net charge off rate 2.3%
Slide 24: Originations and loan portfolio
Originations and loan portfolio Our loan portfolio growth reflected strong loan originations and our shift towards long term automotive and renewable energy loans. • Loan portfolio size is the key driver of Plenti’s revenue and profitability. The 61% increase in 61% increase FY21 was driven by: 303.
Slide 25: Margins
Margins We drove a material uplift in net interest margin post realised credit losses in FY21. • Net interest margin (NIM) is the driver from loan portfolio size to earnings 13.6% Increasing proportion of automotive and renewable energy loans • Interest yield (the yield on customer loans) Interest y
Slide 26: Profit and loss
Profit and loss Our Cash NPAT improved in FY21 despite COVID-19 impacts. • Revenue growth reflects loan origination and ($m, year ending 31 March, pro forma1) FY20 FY21 % change loan portfolio growth Interest revenue 39.8 50.7 27% • Other income represents R&D rebate and Other income 1.7 2.4 42% inc
Slide 27: Cash flow
Cash flow Group net operating cashflows remained broadly consistent with the FY20 result. • Overall group operating cash outflow of ($m) FY20 FY21 $2.9m in FY21, compared with $2.2m in FY20 • Interest income higher than in profit and loss Operating cash flow as based on actual cash flows – in P&L, u
Slide 28: Balance sheet
Balance sheet We retain a substantial net cash position. ($m) 31-Mar-20 31-Mar-21 • Corporate liquidity available to Plenti includes: – $29.4m of corporate cash Assets – $3.4m of liquid assets able to be realised at Cash and cash equivalents 42.0 87.9 short notice Customer loans 360.2 591.6 • Cash a
Slide 29: Outlook
Who We Are Operational Technology Financial Outlook Performance Results 29
Slide 30: Market outlook
Market outlook We see favourable market conditions across each of our three lending verticals, supporting our continued growth. Automotive Renewable energy Personal lending • Strong post-COVID-19 demand • Adoption of batteries and • Strengthening economy and for vehicles expected to be associated ne
Slide 31: Implementing our strategy
Implementing our strategy We have executable plans to help us drive continued growth, leveraging our technology, reach and funding advantages. Market leadership Product and technology Loan funding • Leverage new brand to help drive • Build out product and feature set in • Continue to reduce funding
Slide 32: Financial priorities
Financial priorities We have set ourselves clear financial priorities. Growth Profitability Efficiency Reach $1bn loan book by Achieve positive Drive towards cost to March 2022 monthly Cash NPAT income ratio of below prior to June 2022, while 35% over medium term investing in and achieving strong gr
Slide 33: Appendices
Plenti Appendices
Slide 34: Our people
Our people Our Board and founder-led executive team are committed to achieving Plenti’s mission. Mary Ploughman Peter Behrens Daniel Foggo Miles Drury Glenn Riddell Independent Chairman Non-Executive Director Director & Founder CFO COO & Co-founder • Experienced board member • Co-founded Retail Mone
Slide 35: Strengthened positioning
Strengthened positioning We continued to advance our core foundations and competitive strengths. Diversified loan products Diversified Credit Technology platform & customer reach funding capabilities Strength Strength Strength Strength • Proprietary, end-to- • Diversity of lending • Diversity of fun
Slide 36: Key operating and financial metrics
Key operating and financial metrics ($m) H1 FY20 H2 FY20 H1 FY21 H2 FY21 Loan originations ($m) 125.2 161.3 167.0 303.3 Average term of new originations (months) 53.7 55.9 62.5 61.8 Closing loan portfolio ($m) 306.0 380.9 435.1 614.6 Average loan portfolio ($m) 274.9 346.8 393.5 511.0 Average borrow
Slide 37: Key product level metrics
Key product level metrics ($m) H1 FY20 H2 FY20 H1 FY21 H2 FY21 Loan originations ($m) 125.2 161.3 167.0 303.3 Automotive 19.2 38.4 81.1 149.7 Renewable energy 19.4 23.6 28.5 28.7 Personal 86.6 99.3 57.5 125.0 Closing loan portfolio ($m) 306.0 380.9 435.1 614.6 Automotive 55.7 83.4 146.0 264.4 Renewa
Slide 38: P&L reconciliation: pro forma to statutory
P&L reconciliation: pro forma to statutory ($m, 12 months to March) FY21 Convertible JobKeeper IPO Share- Other5 FY21 Pro forma notes1 and COVID2 costs3 based Statutory payments4 Interest revenue 50.7 - - - - - 50.7 Other income 2.4 - - - - - 2.4 Total revenue pre transaction costs 53.1 - - - - - 53
Slide 39: P&L reconciliation: NPAT to Cash NPAT
P&L reconciliation: NPAT to Cash NPAT ($m, 12 months to March) FY20 FY21 NPAT (pro forma) (16.4) (11.9) Add: movement in provision for expected losses 3.5 3.0 Add: share-based payments 0.6 1.4 Add: depreciation & amortisation 0.7 0.7 Cash NPAT (pro forma) (11.6) (6.8) 39
Slide 40: Cost structure – further details
Cost structure – further details Our cost to loan origination ratio reduced to 6.2% from 8.7% in FY20, with operating leverage evident across all major cost lines. • Sales & Marketing – FY21 reduction reflects, improved direct and broker sales efficiency, greater proportion of broker business (fees
Slide 41: Loan portfolio funding
Loan portfolio funding Plenti’s loan portfolio is now majority funded via Equity financing Senior and mezzanine lower cost warehouse facilities. • Subordinated note tranches • The senior tranches of (equity) in warehouse of $15.5m Plenti’s two warehouse Loan portfolio funding 31 March 2020 ($m) are
Slide 42: Disclaimer and important notices
Disclaimer and important notices No recommendation, offer, invitation or advice The material in this presentation is general background information about Plenti Group Limited (the Company) and its subsidiaries, and is current at the date of the presentation, 25 May 2021. The information in this pres