Latitude Group Holdings Ltd. · ASX:LFS
Latitude — Merger or Acquisition (August 2021)
19 slides from Latitude's merger presentation, Aug 9, 2021
Slide 1: Investor Presentation – revision (ASX announcement)
Latitude Group Holdings Ltd ACN 604 747 391 Level 4, 800 Collins St, Docklands VIC 3008 latitudefinancial.com 9 August 2021 ASX ANNOUNCEMENT For personal use only Investor Presentation – revision Latitude Group Holdings Limited (ASX:LFS) released an Investor Presentation in respect of its Symple Loa
Slide 2: Acquisition of Symple – Accelerating Growth in Consumer Lending
For personal use only Acquisition of Symple – Accelerating Growth in Consumer Lending August 2021
Slide 3: Important Notice and Disclaimers
Important Notice and Disclaimers For personal use only Important notice and disclaimer The following important notice and disclaimer applies to this presentation (“Presentation”) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any i
Slide 4: Important Notice and Disclaimers (Cont'd)
Important Notice and Disclaimers (Cont’d) For personal use only Forward looking statements (Cont’d) Nothing in this Presentation is a promise or representation as to the future. Forward-looking statements are provided as a general guide only and should not be relied upon as an indication or guarante
Slide 5: Accelerating Latitude's Growth in Consumer Lending
Accelerating Latitude’s Growth in Consumer Lending For personal use only § Latitude to acquire Symple for $200m, comprised of a mix of $100m cash and $100m scrip consideration1 Transaction § A highly competitive, new-age lending platform which accelerates Latitude’s growth strategy Overview § Acquis
Slide 6: Accelerating Latitude's Growth in Consumer Lending (Cont'd)
Accelerating Latitude’s Growth in Consumer Lending (Cont’d) For personal use only § Expected to deliver substantial synergies: § FY23E forecast in-year pre-tax synergies2 of c.$32m2, of which c.$8m3 profit arise from conversion improvements and new products and c.$24m profit arise from operating cos
Slide 7: Latitude's Lending Business Approximately 36% of PBT
Latitude’s Lending Business Approximately 36% of PBT For personal use only Scheme Spending Lending & Interest Free Instalments Lending Product Receivables Mix2 & Credit Insurance Shop small, pay weekly Personal Loans Interest Free Up to $1,000 (Part Broker) Instalments – 57% CORE Integrated Shop big
Slide 8: Latitude is Disrupting Traditional Consumer Lending
Latitude is Disrupting Traditional Consumer Lending For personal use only Large addressable opportunity in Latitude is well positioned with Latitude’s lending growth consumer loans unique capabilities initiatives address these trends 11bn+ Existing $5bn1 Latitude $ fixed rate Leadership ü B2B2C dist
Slide 9: Latitude has a Significant Share in the Fixed Rate Australian Personal Loans Market
Latitude has a Significant Share in the Fixed Rate Australian Personal Loans Market with Large Upside Potential Remaining in the Variable Rate Market For personal use only Personal Loans market in Australia, $bn1 • Latitude is #4 in total market receivables with a 12% share of total market1 (up from
Slide 10: Symple Adds Significant Technology, Management and Product Capability
Symple Adds Significant Technology, Management and Product Capability to Latitude’s Lending Business For personal use only Leading Capabilities Leading Products Clear and transparent products and pricing Globally experienced leadership team with deep Unsecured, variable rate loans up to $70,000 bank
Slide 11: Symple Acquisition Accelerates Latitude's Growth at Attractive Returns
Symple Acquisition Accelerates Latitude’s Growth at Attractive Returns 1 Rapid Capability 2 Accelerated Growth – For personal use only Deployment c.$13m Synergies1 Fast tracks speed to market with an immediate competitive response that is Drives additional volume and receivables growth – improving L
Slide 12: Enhanced Experience Will Drive More Customers and Receivables
Enhanced Experience Will Drive More Customers and Receivables At a 1 Significantly Lower Cost For personal use only Improvements in the origination process will improve conversion across all channels APPLICATIONS RECEIVED Single biggest driver of lending performance is time to cash Website visits Cu
Slide 13: Significant Operating Synergy Opportunity
2 + 3 Significant Operating Synergy Opportunity For personal use only Cost Efficiency Opportunities Growth Opportunities FY23 Composition FY23 Composition 21% 22% Systems & Processes Conversi on / Pull Through Rates c.$28m People 59% c.$13m 41% New Products Other 57% Systems & Technology: Discrete P
Slide 14: Material Value Creation for Shareholders with Annualised Synergies
Material Value Creation for Shareholders with Annualised Synergies Set 4 to Deliver Cash NPAT Growth c.12% Higher than Consensus in FY23E For personal use only Strong capability combined with attractive growth and investment metrics Expected PBT Synergies1 Consensus Forecast Cash NPAT (Including Pos
Slide 15: Exciting Additional Receivables Growth Opportunities
4 Exciting Additional Receivables Growth Opportunities For personal use only Incremental growth levers for Latitude Variable Rate Expanded Market Product and New New Zealand Canada Growth Product Auto Loans Opportunities Constructs • $6bn1 TAM in Australia • Significant $600bn3 TAM • Complement inte
Slide 16: Financing Overview, Timetable and Other Key Matters
4 Financing Overview, Timetable and Other Key Matters § Transaction intended to be structured through a combination of scrip and cash consideration1: For personal use only § $100m of scrip being a fixed number of 38.46m shares at $2.60. No further ordinary share issue is required to fund Financing S
Slide 17: Overview of Symple
For personal use only Symple Overview of 16
Slide 18: Symple Overview: Prime Focussed Digital Lending Platform
Symple Overview: Prime Focussed Digital Lending Platform For personal use only Symple Key Metrics Product and Growth Strategy Key Financials New Loan Originations (A$m)1 Fast digital-only personal loan provider with fast approvals and same day settlements $5.4m $19.4m2 FY21 Assets (ex. 41 FY21 Reven
Slide 19: Symple Growth is Outpacing Fintech Peers
Symple Growth is Outpacing Fintech Peers For personal use only Months to reach $20m cumulative originations Months to reach $50m cumulative originations 45 30 25 13 Competitor 11 Competitor 21 Sources: Competitor 1 and Competitor 2 public disclosures 18
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