Earlypay Limited · ASX:EPY
Earlypay — Shareholder Meeting (November 2023)
18 slides from Earlypay's shareholder meeting presentation, Nov 22, 2023
Slide 1: FY23 AGM Presentation
For personal use only FY23 AGM Presentation 22 November 2023 CEO James Beeson CFO - COO Paul Murray
Slide 2: Presenting Today
Presenting Today CEO - James Beeson CFO / COO - Paul Murray For personal use only Geoffrey Sam OAM, Non-Executive Chairperson Stephen White, Non-Executive Director Qualifications: BCom (UNSW), MHA (UNSW), MA (Econ & Soc Studies) Qualifications: M.Mngt, GAICD (Manchester UK), FAICD Responsibilities:
Slide 3: FY23 Financials Summary
FY23 Financials Underlying Proforma (excluding one-off’s) NPAT of $4.8m 1 For personal use only Summary Reported Loss after Tax of $7.7m, driven by outsized single customer exposure/costs Timelio Adds $33m invoice finance receivables & $5m trade finance receivables 2 Acquisition Expected to be EPS a
Slide 4: Reported results significantly impacted by one offs
Reported Results significantly impacted by “one offs”. Underlying business remains profitable and cash generative with a strong balance sheet For personal use only Profit and Loss ($m) FY22 FY23 1 Flat FIU growth reflective of a more cautious risk appetite given tightening Proforma Proforma Δ pcp cr
Slide 5: Cautious FIU growth given economic backdrop
Cautious FIU growth given economic backdrop FY23 Invoice & Trade Finance (proforma) FY23 Equipment Finance (proforma) For personal use only Proforma Proforma IF & Trade Reporting ($m) FY22 FY23 Δ pcp EF Reporting ($m) FY22 FY23 Δ pcp Key Metrics Key Metrics Year End Funds in Use 167.3 182.8 9% Year
Slide 6: Recovery process nearing formal close
Recovery process nearing formal close with operational changes strengthening risk profile of business moving forward Recovery Update Operational Changes For personal use only December 2022: Earlypay’s largest borrower entered voluntary Following the admin process of a major default, implemented init
Slide 7: Highly synergistic Timelio acquisition
Highly synergistic acquisition that is expected to contribute strongly to Earlypay’s future success Overview Acquisition Rationale For personal use only On 13 Nov 2023, completed acquisition of select assets of Timelio Adds scale to core + $33m of invoice finance receivables; and Assets include sele
Slide 8: Invoice & Trade Warehouse Facility expected to settle
Invoice & Trade Warehouse Facility expected to settle before the end of the December, bringing substantial benefits Target Structure For personal use only Facility Two warehouse structures Structure Cost of Funds Size Senior funding provided by two of Australia’s largest banks (I) Invoice Finance an
Slide 9: Refinancing will enable capital management initiatives
Refinancing will enable capital management initiatives that will drive EPS growth Refinancing of Invoice and Trade Warehouse facility*, Earlypay will release c. $20m of cash For personal use only Board currently considering mix of one or more EPS accrefive capital management inifiafives: 1. Repaymen
Slide 10: YTD Trading
Cautious approach in challenging macro conditions; Benefiting from strong demand for core product and market dynamics YTD Trading For personal use only Strong demand for invoice finance product throughout Q1, which has accelerated further in October and November Uncertain macroeconomic environment f
Slide 11: A stronger H2 expected
A stronger H2 expected after key initiatives are completed and organic growth resumes Guidance For personal use only Re-affirming guidance that FY24 NPAT is expected to exceed FY23’s underlying proforma NPAT of $4.8m, driven by a stronger H2: Lower interest expense with the refinancing of invoice an
Slide 12: Disclaimer
This presentation (”this Presentation”) has been prepared by Earlypay Limited [ACN 098 952 277] (“EPY” or the “Company”) and is dated 22 November 2023. Summary information This presentation contains summary information about the current activities of EPY as at the date of this Presentation. The info
Slide 13: For further information, please contact
For personal use only For further information, please contact: Investor Enquiries James Beeson CEO, Earlypay 1300 760 205 James.beeson@earlypay.com.au
Slide 14: CEO Address
ABN: 88 098 952 277 Suite 5.01, Level 5, 201 Miller Street, North Sydney NSW 2060 22 November 2023 CEO ADDRESS Opening Remarks – Slide 2 – Board and Management Thanks Geoff and welcome everyone to the Earlypay Annual General Meeting. Although FY23 was a challenging one, I’m confident that the busine
Slide 15: CEO Address (continued)
ABN: 88 098 952 277 Suite 5.01, Level 5, 201 Miller Street, North Sydney NSW 2060 granular and diversified invoice finance portfolio. 2. The second relates to pressure on net interest margins which fell from 6.4% in FY22 to 5.1% in FY23. This was driven by a few factors, notably the onboarding of se
Slide 16: CEO Address (continued)
ABN: 88 098 952 277 Suite 5.01, Level 5, 201 Miller Street, North Sydney NSW 2060 Notably we implemented a maximum single borrower exposure limit of $10m, with most new borrower exposures now less than $5m. Additionally, we tightened our credit risk appetite and ongoing client monitoring across all
Slide 17: CEO Address (continued)
ABN: 88 098 952 277 Suite 5.01, Level 5, 201 Miller Street, North Sydney NSW 2060 Slide 9 – Capital Management Plans As a result of the invoice and trade warehouse refinancing, we expect to release approximately $20m of cash and have several capital management initiatives in mind to drive EPS growth
Slide 18: CEO Address (continued)
ABN: 88 098 952 277 Suite 5.01, Level 5, 201 Miller Street, North Sydney NSW 2060 refinancing and a resumption of organic Funds in Use growth for invoice finance and equipment finance. The integration of the Timelio acquisition will also contribute to earnings in the second half, although the benefi