Wisr Ltd. · ASX:WZR
Wisr — Investor Presentation (February 2023)
21 slides from Wisr's investor presentation, Feb 28, 2023
Slide 1: Company Update H1FY23
COMPANY UPDATE H1FY23 28 February 2023 1
Slide 2: Wisr has a unique and differentiated strategy
WISR HAS A UNIQUE AND DIFFERENTIATED STRATEGY Our tech, data, analytics and purpose are genuine competitive advantages Loan Origination of $302M in H1FY23 (up 13% pcp), delivering: DIGITAL ● $1.5B loans written since inception (Q1FY17) LENDING ● Operating revenue of $43.2M (up 65% pcp) PLATFORM ● Lo
Slide 3: H1FY23 Update
H1FY23 $302M $1.5B $43.2M1 $916M 19K UPDATE in new loan originations Total loan originations in Operating revenue Wisr loan book Wisr Today downloads 13% on pcp 71% on pcp 65% on pcp 62% on pcp New product launched (H1FY22 $268M) ($879M as at 31 December (H1FY22 $26.2M) ($565M as at 31 December end
Slide 4: Dual platform strategy has delivered exceptional growth
DUAL PLATFORM STRATEGY HAS DELIVERED EXCEPTIONAL GROWTH Lending platform growth Financial Wellness Platform profile balance^ ^Financial Wellness Platform has grown to over 704K users and will continue to grow as Company approaches target of 1 million profiles 4
Slide 5: Wisr's lending platform is delivering scale
WISR’S LENDING PLATFORM IS DELIVERING SCALE Wisr half-yearly loan book balance1 Wisr half-yearly revenue growth 1 Loan Book includes all loans in WH1, WH2, Freedom Trust 2021-1, Freedom Trust 2022-1 and balance sheet, excludes off-balance sheet of $14.7M as at 31 December 2022 5
Slide 6: Consistent strong credit quality
CONSISTENT STRONG CREDIT QUALITY Wisr’s prime $916M Loan Book is built on strong credit quality with Wisr loan customer average credit score 90+ day arrears of 1.07% which is within risk appetite. The December quarter has seasonally higher arrears which is consistent with pcp. The Company is well pr
Slide 7: Cash EBTDA positive Q2FY23
CASH EBTDA POSITIVE Half-yearly Cash EBTDA performance Q2FY23 H1FY23 H1FY22 Variance Revenue $43.2M $26.2M 65% ● H1FY23 Cash EBTDA of $(1.3)M, a 66% improvement on H1FY22 $(3.8)M Operating expenses $(17.9)M $(20.8)M (14)% ○ Result included positive Q2FY23 Cash EBTDA of $0.5M Loan write-offs (net) $(
Slide 8: Return to positive operating cash flow
RETURN TO Positive operating cash flow POSITIVE OPERATING CASH FLOW We responded to changing macroeconomic conditions in H1FY23 with a series of opex reductions in Q1FY23. In Q2FY23, Wisr returned to positive operating cash flow. Opex reduction undertaken Source: H1FY23 (Appendix and Financials) 8
Slide 9: Strong funding platform
STRONG FUNDING PLATFORM Funding as at 31 December 2022 ● WH1 has $450M of committed funding and an undrawn capacity of $163M, while WH2 has committed funding of $400M and an undrawn capacity of $50M (total $213M available). H1FY23 saw both warehouses renewed for the customary 12 month period ● Wisr
Slide 10: Capital position
CAPITAL CAPITAL ASSETS DESCRIPTION POSITION Restricted cash $33.5M Cash held in the Wisr Warehouses consists of customer loan repayments (principal and interest) and unutilised funds from note subscriptions (predominantly third-party debt). Use of these funds is restricted to the purposes of funding
Slide 11: Financial wellness is more important than ever
MONEY IS STILL THE TOP CAUSE OF STRESS FOR AUSTRALIANS FINANCIAL WELLNESS IS MORE IMPORTANT THAN EVER Wisr is a purpose-led company committed to a strategy of 15% improving our customers' financial health and wellbeing My job Through strategic investment, Wisr continues to build a financial wellness
Slide 12: Addressing financial wellness through daily habit coaching and behaviour change
ADDRESSING FINANCIAL WELLNESS THROUGH DAILY HABIT COACHING AND BEHAVIOUR CHANGE Clear customer demand Focused on savings on common daily Helping to alleviate rising cost of living with over spending habits pressures 19K Top habits Wisr Today users are Initial results have shown users could save work
Slide 13: Focus on sustainable profitability
MODERATED GROWTH FOCUS ON SUSTAINABLE PROFITABILITY^ Q2FY23 positive Cash EBDTA of $0.5M, material reductions in opex including headcount and pausing or fully exiting PROFITABILITY DELIVERED growth spend initiatives. $302M in new loan originations (13% increase on H1FY22 $268M), prime $916M Loan Boo
Slide 14: Appendix
WZR H1FY23 COMPANY PRESENTATION APPENDIX FOR YOUR SMART PART 1414
Slide 15: Profit and loss
31-Dec-22 31-Dec-21 Variance $’000 $’000 PROFIT AND LOSS REVENUE Operating income 43,241 26,243 65% ● Operating revenue increase driven by 62% growth in loan book EXPENSES ● Employment benefits expense increase due to Employee benefits expense (10,530) (8,514) 24% ongoing scaling of the business not
Slide 16: Expected credit loss provision
EXPECTED CREDIT LOSS PROVISION Total loan impairment expense for H1FY23 was $9.7M, this Provision movement Jul 2021 - Dec 2022 represents $4.2M of incremental provisions and $5.5M of net losses ($6.3M gross losses net of $0.9M recoveries). This loan impairment expense represents 1.05% of the loan bo
Slide 17: Provisioning analysis
PROVISIONING ANALYSIS At 31 December 2022, Wisr had a total ECL provision of 2.52% of loan book (H2FY22: 2.42%) and net losses have decreased to 0.60% of loan book (H2FY22: 0.66%). The provision coverage rate is stable following the decreasing long-term trend. The provision held is x2.5 the credit l
Slide 18: Balance sheet
31-Dec-22 30-Jun-22 Variance $’000 $’000 ASSETS BALANCE SHEET Cash and cash equivalents Trade and other receivables 57,995 1,102 71,489 1,065 (19)% 3% Loan receivables 897,941 764,839 17% ● Well capitalised with cash of $58.0M - refer to slide 10 Property, plant and equipment 399 488 (18)% ● Loan re
Slide 19: Cash flow
31-Dec-22 31-Dec-21 Variance $’000 $’000 CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOW Receipts from customers Payments to suppliers and employees (inclusive of GST) 41,899 (21,788) 24,832 (21,884) 69% - 20,111 2,948 582% ● Net cash used in operating activities shows positive Interest received 102
Slide 20: Thank you
THANK YOU ASX: WZR Level 4, 55 Harrington St, The Rocks, NSW 2000 ABN 80 004 661 205 1300 992 007 20
Slide 21: Disclaimer
DISCLAIMER No investment advice or offer of shares presentation is based or the accuracy, completeness or reliability of the information contained in this presentation. This presentation does not constitute investment advice, or an inducement or recommendation to acquire or dispose in any shares of