Moneyme Ltd. · ASX:MME
Moneyme — FY2024 Earnings Presentation
37 slides from Moneyme's earnings presentation, Aug 29, 2024
Slide 1: FY24 Results Investor Presentation
FY24 Results Investor presentation 29 August 2024 moneyme.com.au Copyright 2024 | MoneyMe Limited | ACN 636 747 414 Public
Slide 2: MONEYME is a digital consumer lender and Certified B Corporation
MONEYME is a digital consumer lender and Certified B Corporation A non-bank challenger We challenge outdated lending practices with smart technology and innovative car loans, personal loans and credit cards. Digital, yet personal We simplify the borrowing experience with digital-first products that
Slide 3: Scaling up with industry-first innovation
Scaling up with industry-first innovation • B Corp Certification, 2024 Aug 2023 • Acquired SocietyOne, • $1.2bn loan book Mar 2022 • $23m statutory NPAT • IPO on ASX, Dec 2019 • $1.3bn loan book 2023 • >$3.5bn cumulative • Institutional warehouse • 1st ABS deal • Launched Personal originations fundi
Slide 4: FY24 highlights
03 FY24 highlights 06 Operational highlights 15 Financial highlights 21 Strategy & outlook 26 Additional information Page 3 | MONEYME (ASX:MME) Public
Slide 5: FY24 highlights
FY24 highlights Profit, growth, and stronger credit book Closing loan book Originations Gross revenue Statutory NPAT $1.2bn $574m $214m $23m ↑6% ($1.1bn, FY23) ↑23% ($466m, FY23) ↓10% ($239m, FY23) ↑85% ($12m, FY23) Cost to income ratio Net credit losses Average credit score Secured assets on book 2
Slide 6: Execution of our strategy
Execution of our strategy Achievements across all key areas Increasing secured Optimising the Growing our Extending our Further strengthening asset lending business for growth operating leverage technology advantage data protection Secured assets increased to Expanded funding capacity Reduced operat
Slide 7: Operational highlights
03 FY24 highlights 06 Operational highlights 15 Financial highlights 21 Strategy & outlook 26 Additional information Page 6 | MONEYME (ASX:MME) Public
Slide 8: Creating advantages through technology advances
Creating advantages through technology advances 500,000+ developer hours invested to date, creating competitive advantages FY24 technology and product updates Support scale Further automation of customer journeys and Faster approval and settlement for car Security Optical Character Recognition (OCR)
Slide 9: Saving time through innovation
Saving time through innovation MONEYME’s products are designed to save our customers' and partners’ most valuable resource – time. By focusing on speed and efficiency, we deliver premium experiences that drive loyalty and advocacy 0 Loans and credit cards typically approved within NET PROMOTER Intui
Slide 10: Game-changing innovation in the auto sector: secured vehicle variable rate finance
Game-changing innovation in the auto sector: secured vehicle variable rate finance up to $150,000 that settles within 60 minutes, 7 days a week $38,040 AVERAGE CAR FINANCED1 FY24 AUTOPAY LOAN BOOK % OF TOTAL PORTFOLIO ($35,562, FY23) Autopay Freestyle $622m ↑40% ($446m, FY23) FY21 FY22 FY23 FY24 51%
Slide 11: Personal loans
“Service was exceptional, quick and easy process, the money was in my account within minutes of signing the loan document.” Unsecured variable and fixed rate personal loans up to $50,000; - Leanne Secured fixed rate personal loans up to $70,000 FY24 PERSONAL LOAN BOOK % OF TOTAL PORTFOLIO Autopay Fr
Slide 12: A digital credit card for everyday spending
A digital credit card for everyday spending FY24 FREESTYLE LOAN BOOK WHAT’S TO COME IN FY25 $125m ↓34% ($188m, FY23) FY21 FY22 FY23 FY24 • In response to the evolving credit risk landscape, MONEYME has pivoted to a target market with stronger credit profiles, resulting in a reduced Freestyle loan bo
Slide 13: A free Credit Score tool providing personalised credit insights
A free Credit Score tool providing personalised credit insights and monthly score updates CREDIT SCORE TOOL USAGE AND IMPACT >115k Credit Score users to-date 52% Have improved their credit score since first using the tool EMPOWERING CUSTOMERS WITH CREDIT SCORE CONTROL • Customer empowerment: We give
Slide 14: Well diversified portfolio with ongoing uplift in customer credit profile
Well diversified portfolio with ongoing uplift in customer credit profile Well-distributed geographical spread Average customer age of 38 >50% of loan book are secured assets 90% Other 10% NSW Age 18-25 31% 80% WA Age 36+ 7% 9% 63% 70% Age 26-35 QLD VIC 30% 24% 26% 60% 55% 50% 44% Strong remaining t
Slide 15: ESG performance a catalyst for future success
ESG performance a catalyst for future success MONEYME became B Corp Certified in August 2023. The B Corp framework measures our social and environmental impact and ensures we contribute to a more inclusive, equitable and sustainable world. In turn, this helps us drive sustainable business performanc
Slide 16: Financial highlights
03 FY24 highlights 06 Operational highlights 15 Financial highlights 21 Strategy & outlook 26 Additional information Page 15 | MONEYME (ASX:MME) Public
Slide 17: A return to growth with increased operating leverage: statutory and normalised profit
STATUTORY AND NORMALISED PROFIT Statutory NPAT Normalised NPAT $23m statutory NPAT reflects effective cost ↑85% ↓15% FY23 to FY24 FY23 to FY24 management, stronger credit performance, $23m $26m and tax benefits $12m $22m • MONEYME’s profit result reflects a reduced cost base due to scale and technol
Slide 18: A return to growth with increased operating leverage: loan book growth
LOAN BOOK GROWTH Gross loan book Principal originations A return to growth with increased ↑6% $1.1bn ↑23% FY23 to FY24 FY23 to FY24 operating leverage $1.3bn $574m $466m $1.2bn • Principal loan originations grew by 23%, increasing $1.1bn the loan book by 6% to $1.2bn ($1.1bn, FY23), reflecting an in
Slide 19: Strong revenue from a higher credit quality loan book
REVENUE AND NET INTEREST MARGIN Gross revenue & Net interest margin Significantly stronger book profile Strong revenue from a higher credit quality Net interest margin % Gross revenue Average Equifax score Secured assets on book % 120% 800 loan book $500m 20% 12% 12% 763 $450m 10% 100% 750 10% • Gro
Slide 20: Lower credit losses and arrears, and trending down
CREDIT PERFORMANCE Net credit losses Provisioning as % of loan book Lower credit losses and arrears, and ↓1.3% ↓1.9% FY23 to FY24 FY23 to FY24 trending down 5.8% 6.1% 6.6% 4.5% 4.7% 3.7% • Delivering on our strategy, net credit losses reduced by 1.3% to 4.5% (5.8%, FY23) in line with higher credit q
Slide 21: Funding program drives capital-efficient growth
FUNDING AND LIQUIDITY FY24 funding mix % Funding program drives capital-efficient CORPORATE FACILITY growth 5% WAREHOUSE FACILITIES • MONEYME's diversified asset funding program includes ASSET BACKED SECURITIES 89% seven structures with a total capacity of $1.7bn ($1.6bn, 6% FY23). • Key funding hig
Slide 22: Strategy & outlook
03 FY24 highlights 06 Operational highlights 15 Financial highlights 21 Strategy & outlook 26 Additional information Page 21 | MONEYME (ASX:MME) Public
Slide 23: Our strategy and key areas of focus
Our strategy and key areas of focus Extending Focusing on high Expanding and Modelling strong Product technology credit quality and optimising ESG practices innovation and leadership secured assets funding programs expansion We aim to further our technology We will continue to prioritise high To sup
Slide 24: Our key strengths
Our key strengths Superior customer Massive scale Attractive return value proposition opportunity opportunity Horizon proprietary technology Innovative lending products Profitable on a statutory and platform with microservices solving traditional pain points normalised NPAT basis architecture enable
Slide 25: Questions & Answers
MONEYME Questions & Answers
Slide 26: Thank you!
Thank you! On behalf of all at MONEYME Public
Slide 27: Additional information
03 FY24 highlights 06 Operational highlights 15 Financial highlights 21 Strategy & outlook 26 Additional information Page 26 | MONEYME (ASX:MME) Public
Slide 28: MONEYME Board of Directors
MONEYME Board of Directors Jamie McPhee Clayton Howes Independent Non-Executive Chair Managing Director & Chief Executive Officer Joined the Board in March 2024 Chair of the Board Co-founder, since inception in 2013 The Board of Directors includes founders and leaders with significant Rachel Gatehou
Slide 29: Key operating measures
Key operating measures Definition1 FY22 FY23 FY24 Returns Statutory NPAT ($m) Per Financial Report (50) 12 23 Normalised NPAT ($m) 1 11 26 22 Gross revenue ($m) Per Financial Report 143 239 214 Net interest margin (%) 2 12% 12% 10% Operating costs to income (%) 3 40% 22% 22% Book profile Origination
Slide 30: Measure definitions
Measure definitions Note Measure Definition Statutory net profit after tax (NPAT) adjusted for non-cash depreciation, ECL provision movements, and significant one-off 1 Normalised NPAT ($m) items Gross revenue less interest expense per Statement of Profit / (Loss) , as a % of average gross loan rece
Slide 31: Income statement
Income statement $ million FY22 FY23 FY24 Interest income 128 230 207 Other income 15 9 7 Gross revenue 143 239 214 Commission expense (2) (6) (10) Net revenue 141 233 204 Interest expense (38) (90) (98) Operating expense (57) (52) (48) Loan receivables impairment expense (91) (68) (34) Depreciation
Slide 32: Statutory NPAT to Normalised NPAT reconciliation
Statutory NPAT to Normalised NPAT reconciliation $ million FY22 FY23 FY24 Statutory net profit/(loss) after tax (50) 12 23 Net loss adjustment 48 (1) (19) Derivative fair value gain/(loss) related (6) 3 5 Non-cash depreciation and amortisation 1 10 8 Other SocietyOne acquisition and integration rela
Slide 33: Balance sheet
Balance sheet $ million FY22 FY23 FY24 Cash and cash equivalents 81 92 74 Net loan receivables 1,264 1,074 1,162 Current tax asset 0 - - Derivative financial instruments 10 8 3 Other receivables 10 14 19 Deferred tax asset 3 3 14 Intangible assets 36 33 29 Right-of-use assets 3 3 2 Property, plant a
Slide 34: Cash flow statement
Cash flow statement $ million FY22 FY23 FY24 Net loan receivable inflows / (outflows) (709) 118 (105) Income from customers 116 204 183 Borrowings interest and fees paid (29) (83) (83) Income from delinquent asset sales and recoveries 14 31 20 Payments to suppliers and employees (51) (62) (67) Incom
Slide 35: MONEYME's core products
MONEYME’s core products1 Autopay Personal Loans Freestyle Offer range $10,000 - $150,000 $5,000 - $70,000 Credit limit $1,000 - $20,000 Offer term 3 - 7 years 3 - 7 years Repayment over 2 - 5 years Interest-free period N/A N/A Up to 55 days interest-free on online and in-store purchases using Freest
Slide 36: Important notices & disclaimers
Important notices & disclaimers The information contained in this presentation has been prepared by MONEYME Limited (MONEYME or Company). and maintenance. A number of the Company’s products and possible future products contain or will contain open source software, and the company may license some of
Slide 37: moneyme.com.au
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