Moneyme Ltd. · ASX:MME
Moneyme — H1 2020 Earnings Presentation
33 slides from Moneyme's earnings presentation, Feb 26, 2020
Slide 1: Half-Year Non deal roadshow presentation
For personal use only Half-Year Non deal Investor Presentation roadshow presentation For the half-year ending 31 December 2019 (H1’20) February 2020 September 2019 PRIVATE & CONFIDENTIAL
Slide 2: Our Mission
For personal use only OUR MISSION Non deal To be the favourite credit partner for roadshow Generation Now presentation September 2019 Page 1
Slide 3: H1'20 Performance Highlights
H1’20 Performance Highlights1 For personal use only H1’20 performance Revenue, gross assets Closing loan book balance ahead of expectations to and originations are on track to 89% to the full-year forecast forecast beat full-year forecast Revenue up 44.3% H1’20 loan provisioning to gross +$800M year
Slide 4: A growth fintech delivering innovative credit products to Generation Now
A growth fintech delivering innovative credit products to For personal use only Generation Now Our new products are making sense for tomorrow’s world Enabled by our in-house built platform with AI, our products are more flexible and convenient for our customers We are a business that focuses on prof
Slide 5: H1'20 Product Highlights
For personal use only H1’20 Product Highlights Financial Update Growth & Strategy Update Appendix Page 4
Slide 6: Freestyle product highlights
Freestyle product highlights For personal use only Millennials are looking for a better solution to the traditional credit card NOW1 FUTURE Gross loan book Represents Represents Integrating loyalty rewards for the generation Now $43m 41% ~34% Instant Rewards of originations of gross loan book Cashle
Slide 7: Personal loan product highlights
Personal loan product highlights For personal use only 5-minute application with high powered tech to decision customers quickly NOW1 FUTURE Gross loan book Represents Represents Opportunity to increase offer up to $83m 59% ~65% $50,000 of originations of gross loan book Strong continuation of Avera
Slide 8: ListReady product highlights
ListReady product highlights For personal use only To be the only choice for listing your house NOW1 FUTURE Brand acceleration 170+ 1,000+ Agency sign-ups are continuing to grow and large scale agencies signed up agents signed up partnerships are expected Already Trust and transparency 500+ $1.2m Aw
Slide 9: Financial Update
For personal use only H1’20 Product Highlights Financial Update Growth & Strategy Update Appendix Page 8
Slide 10: H1'20 Financial Update
H1’20 Financial Update1 For personal use only Credit Demand ($m) Originations ($m) Gross loan book ($m) 94.7 126.8 838.4 536.7 56% 85% 51.2 112% 59.9 H1'19 H1'20 H1'19 H1'20 H1'19 H1'20 Total Revenue ($m) Loan provision to gross loan Pro forma EBITDA ($m) book (%) 0.5 21.3 10.8% 14.8 8.1% 44% (25%)
Slide 11: Strong Revenue and EBITDA Growth
Strong Revenue and EBITDA Growth 44% For personal use only Revenue ($m) Revenue increase YoY $24.5 $21.3 • H1’20 total revenue hit record levels, representing a 44% increase on $17.1 $14.8 H1’19 74% Opening Loan • 74% of H2’20 forecast revenue expected to come from the loan book as at 31 December 20
Slide 12: Record Loan Book Growth
Record Loan Book Growth 112% For personal use only Gross loan book ($m) $126.8 Loan book growth YoY $87.5 $59.9 • H1’20 gross loan book hit record levels, representing a 112% increase on H1’19 • Loan originations for H1’20 were up 85% year on year • Gross loan book for H1’20, represents 89% of the f
Slide 13: Improving Credit Performance
Improving Credit Performance 25% For personal use only Loan provision to gross loan book (%) 10.8% 10.4% Reduction in loan provisioning 8.1% • Development of MoneyMe’s Horizon platform continues to deliver stronger credit performance with lower than provisioned losses • Loan provision to gross loan
Slide 14: Key Operating Metrics
Key Operating Metrics Half-Year performance vs Full-Year Forecast For personal use only Income H1’20 2020F Indicator1 Record On plan Performance across key metrics Total revenue ($m) 21.3 45.8 Total revenue growth (%) 43.9% 43.7% Ahead • Full-year 2020 performance against forecasted is expected to b
Slide 15: Timing of Revenue vs Loan Impairment Recognition
Timing of Revenue vs Loan Impairment Recognition For personal use only $4,500,000 $5.4m Increase in contracted revenue $3,500,000 • H1’20 closing gross loan book was $14.4m above forecast. This is expected to deliver an additional ~$5.4m1 $2,500,000 contracted revenue beyond 31 December 2019 • Under
Slide 16: Pro Forma PBT Actuals vs Forecast
Pro Forma PBT Actuals vs Forecast For personal use only H1’20 Pro forma PBT $0.2m Above forecast pro forma PBT 1.2 H1’20 pro forma PBT reflects: 1.0 0.8 A B 1. The impact from above forecast gross loan book relating to: 0.6 A. An increase in interest income 0.4 B. Office operating expenses being bro
Slide 17: Statutory NPAT vs Pro Forma NPAT
Statutory NPAT vs Pro Forma NPAT For personal use only $4.3m Statutory NPAT ($m) $4.3 Statutory NPAT for H1'20 • H1’20 statutory NPAT reflects a $5.9m income tax benefit which reflects a resetting of the tax cost base1 • Full-year statutory NPAT is expected to be positive and $0.1 $0.2 ahead of fore
Slide 18: Growth & Strategy Update
For personal use only H1’20 Product Highlights Financial Update Growth & Strategy Update Appendix Page 17
Slide 19: On strategy operational highlights
On strategy operational highlights For personal use only Launched List Ready Launched Freestyle ASX Listed Signed 1,000+ agents Tap n’ Pay / Master card, Apple pay $45M capital raised Finalist Finalist Winner Fintech Australia Australian Financial Review MyBusiness Excellence in Consumer Lending Mos
Slide 20: Capital and Funding
Capital and Funding $250m For personal use only MoneyMe is on plan with its capital Current funding cost and funding strategy to underpin future growth and profitability Wholesale facility for future growth Funding Rate % $70m Substantial decrease in capital costs Price $50m $50m Diversity in fundin
Slide 21: Proprietary credit provisioning technology
Proprietary credit provisioning technology For personal use only Transaction data analysis KEY FEATURES Initial eligibility 100 1,000 Data reference points Transactions categorised assessment Credit approval • Online bank analysis • Support scale and efficiency 40 • AML/CTF • Transaction data • Enha
Slide 22: Growth in new markets
Growth in new markets For personal use only Our technology enables rapid rollout of new products and expansion into new markets Expecting to expand to New Zealand Exploring substantial opportunities with UK and US expansion Larger markets, with similar credit and distribution strategies Page 21
Slide 23: Winning Major Partnerships
Winning Major Partnerships For personal use only Significant take-up of ListReady by major 170+ 1,000+ Real Estate groups around Australia agencies signed up1 agents signed up1 500+ Already vendors1 $1.2m originated1 Record Low Losses ID and ownership verification + RP Data analysis Attractive unit
Slide 24: Leading Customer Experience
Leading Customer Experience For personal use only 0 -100 +100 Applied online, approved instantly and received funds Quick approval and effortless application. 75+ (commbank) moments after getting approved. Easy, Wish I’d known about this company years ago. NPS 1 straightforward, no fuss. Highly reco
Slide 25: The MoneyMe Difference
The MoneyMe Difference For personal use only Strong unit economics Large addressable market Strong growth Diversified loan portfolio Attractive loan unit economics Consumer credit originated by non- Strong track record of revenue Diverse range of customers across benefitting from repeat bank lenders
Slide 26: Q&A
For personal use only Q&A Page 25
Slide 27: Appendix
For personal use only H1’20 Product Highlights Financial Update Growth & Strategy Update Appendix Page 26
Slide 28: Financial Statements – P&L
Financial Statements – P&L For personal use only Statutory and pro forma statement of profit or loss Statutory Actual Pro forma Actual H1’19 H2’19 H1’20 $ millions H1’19 H2’19 H1’20 13.0 14.6 19.1 Interest income 13.0 14.6 19.1 1.8 2.5 2.2 Other income 1.8 2.5 2.2 14.8 17.1 21.3 Total Revenue 14.8 1
Slide 29: Pro forma adjustments to the Statutory P&L
Pro forma adjustments to the Statutory P&L For personal use only Pro forma adjustments to statutory historical profit or loss $ millions Notes H1’19 H2’19 H1’20 Statutory NPAT 0.1 0.2 4.3 Public company costs 1 (0.5) (0.5) (0.3) Executive remuneration 2 (0.4) (0.4) (0.1) Offer costs 3 - - 1.8 Corpor
Slide 30: Financial Statements – Balance Sheet
Financial Statements – Balance Sheet For personal use only Statutory statement of financial position $ millions 30 June 2019 31 Dec 2019 Cash and cash equivalents 6.1 41.1 Other receivables 0.5 1.3 Net loan receivables 78.3 116.6 Current tax asset 0.0 - Deferred tax asset 0.8 9.2 Property, plant and
Slide 31: Financial Statements – Cash Flow
Financial Statements – Cash Flow For personal use only Statutory PBT to Net cash flows $ millions 31 Dec 2018 31 Dec 2019 Statutory PBT 0.0 (1.6) Addback non-cash items: Depreciation and amortisation 0.1 0.4 Loan impairment 5.9 6.4 Other non cash items 0.3 0.3 Working capital adjustment (0.1) 0.8 Ne
Slide 32: Appendix 4D Net Tangible Assets Backing per Ordinary Share
Appendix 4D Net Tangible Assets Backing per Ordinary Share For personal use only Adjusted Net Tangible Assets Backing per Ordinary Shares H1’20 H1’19 Notes The material increase in H1’20 net tangible assets compared to H1’19 reflects the impact of the IPO Net tangible assets 49.0 1.9 capital raising
Slide 33: For personal use only
For personal use only