Wisr Ltd. · ASX:WZR
Wisr — Investor Day (March 2021)
60 slides from Wisr's investor day presentation, Mar 19, 2021
Slide 1: Investor presentation
Investor presentation. 19 MARCH • 2021 1
Slide 2: Agenda
Agenda. Welcome. Introductions & strategy overview Building the future. • Using tech to win ScalingVour • Financial Wellness: The Wisr Approach I S lending I O N A platform. ND KEY NUMBER S • Winning in competitive channels, • The Wisr Culture differentiating in proprietary channels • BUSINESS PERFO
Slide 3: Introduction & strategy overview
WELCOME 1. Introduction & strategy overview. ANTHONY NANTES Chief Executive Officer 3
Slide 4: Leadership and team structure
EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR John Nantes Craig Swanger Chris Whitehead CEO Anthony Nantes COO CPO CFO CCO CRDO CMO CSO Mathew Lu Ben Berger Andrew Goodwin Peter Beaumont Joanne Edwards James Goodwin Lili Sussman BUSINESS PORTFOLIO MARKETING & STRATEGY & ENGINEERS
Slide 5: What you will hear today
What you will hear today. Loan Origination in February is a material step change, with a record $35M, setting up 2021 for growth. Wisr’s unique, clearly differentiated strategy is a smart, and winning, strategy. Significant room for growth is evident in the current business, with more room to win in
Slide 6: Significant growth opportunity
Significant growth opportunity. ~0.22% Total addressable market. The $207M Wisr Warehouse only Wisr is primed to aggressively capture $93B representing circa 0.22% market share1, providing ample runway for market share with a long runway of lending opportunity in the $93B CONSUMER LENDING Wisr to re
Slide 7: Continued acceleration of high-quality loan book
Continued acceleration of high-quality loan book. 35% growth on previous Loan originations ($M). Loan book ($M). quarter 7
Slide 8: Material step change in February setting up 2021 for growth
Material step change in February setting up 2021 for growth. 138% growth across Q3 (to 28 February 2021). PARTIAL Q3 QUARTER LOAN VOLUME COMPARISON • New loan originations of of $58.8M for the two months ending 28 February 2021, an exceptionally strong result in the seasonally JANUARY slower March q
Slide 9: Clear path through profitability
Clear path through profitability. Indicative $1B model of the WISR WAREHOUSE LOAN BOOK AT SCALE $ RANGE AVG BOOK Wisr core ECONOMICS RUN-RATE 1 (P.A.) (%) business at Revenue $110–130M 11–13% scale. Gross Margin $75-85M 7.5–8.5% Opex $35-40M 3.5–4% Cash EBTDA $40-50M 4–5% $207M % Assumptions for cos
Slide 10: Substantial revenue growth
Substantial revenue growth. $5.9M Revenue in Q2FY21 Acceleration continues. • 101% revenue growth in H1FY21 vs H2FY20 • 354% revenue growth in H1FY21 vs H1FY20 • Strong revenue growth with Wisr Warehouse funding model now in effect • Wisr is set up for significant scaling and revenue growth in FY21,
Slide 11: Core profitability & investing for growth
Core profitability & investing for growth. Core business cash profitability continues to expand in H1FY21 (commenced in H2FY20), as loan volume and revenue scale under the Wisr Warehouse funding model, while delivering operational leverage. REVENUE Strong revenue growth of 354% achieved in H1FY21 ve
Slide 12: Prime quality customer base
Prime quality customer base. Attracting Australia’s most creditworthy customers. Strong credit quality with reductions in 90+ day arrears and observable improvements CUSTOMER NPS to average credit scores, and best in-class customer net promoter scores. +79 H1FY21 759 +68 Q2FY21 H1FY20 742 AVERAGE 73
Slide 13: Winning in competitive channels, differentiating in proprietary channels
SCALING OUR LENDING PLATFORM 2. Winning in competitive channels, differentiating in proprietary channels. JAMES GOODWIN PETER BEAUMONT Chief Marketing Officer Chief Commercial Officer 13
Slide 14: Winning in competitive channels: Broker channel
Winning in competitive channels. Broker channel. Wisr pioneered the online delivery of personal loans to the WISR’S SUCCESS HAS BEEN DRIVEN BY A LASER broker community six years ago, has approximately 7.5K FOCUS ON PROVIDING BROKERS WITH: brokers in its network and continues to grow its broker footp
Slide 15: A consistent strategy for sustained long-term growth
A consistent strategy for sustained long- term growth. Winning in competitive Differentiating for competitive channels. advantage. Broker Wisr Financial Wellness Platform Performance marketing Wisr Brand Paid search Affiliate Social 15
Slide 16: Winning in competitive channels: Performance marketing
Winning in competitive channels. Performance marketing. Wisr uses paid advertising channels to acquire customers WISR COMPETES AND WINS IN THESE directly. Termed performance marketing, investment in CHANNELS THROUGH: these channels is fully aligned to commercial outcomes (i.e. conversion to loan set
Slide 17: Winning in competitive channels: benefits and challenges
Winning in competitive channels. BENEFITS CHALLENGES • Proven channels to drive originations • Market changes • Strong track record of delivering market leading unit • Prone to competitive pressures economics • Always requires capital to play • Build a $1B loan book just on these channels alone 17
Slide 18: Differentiating through a proprietary channel with over 350K customer profiles
Differentiating through a proprietary channel with over 350K customer profiles. CLEAR PATH TO 1M WISR CUSTOMERS IN PROPRIETARY CHANNEL The Wisr Financial Wellness Platform is a proprietary channel built by Wisr, and is made up of multiple individually powerful and collectively unique products aligne
Slide 19: Fulfilling our purpose through the Wisr Financial Wellness Platform
Fulfilling our purpose through the Wisr Financial Wellness Platform. 499.38 491.38 451.84 FIRST EQUIFAX +90 DAYS + 180 DAYS CREDIT SCORE EQUIFAX CREDIT EQUIFAX CREDIT NO. OF DASHBOARD VISITS (AVG) SCORE (AVG) SCORE (AVG) Average Equifax credit score increase based Approaching $2M in debt, (mainly Lo
Slide 20: The Financial Wellness Platform drives targeted lending offers
The Financial Wellness Platform drives highly targeted and personalised lending offers. With a clear path to over a million profiles, this platform is a powerful asset providing differentiation, competitive advantage, and scalability through reduction in lending customer acquisition costs. 20
Slide 21: Financial Wellness Platform driving loan originations
Financial Wellness Platform driving loan originations. Contributing circa 1/3 of non broker originations - and growing. 21
Slide 22: Most cost-effective customer acquisition channel
Financial Wellness Platform: most cost- effective customer acquisition channel. In February 2021, the Financial Wellness Platform was 70% more cost effective as a loan acquisition channel. 22
Slide 23: A valuable asset with a long tail for conversion
The Financial Wellness Platform is a valuable asset with a long tail for conversion. Conversion into loans happens throughout the user lifecycle. AVERAGE TIME TO CONVERT TO A LOAN FIRST 30 DAYS 1-6 MONTHS 6+ MONTHS 33% 33% 33% 23
Slide 24: Post-loan credit scores improve through use of Platform
Post-loan credit scores improve through use of +83 Platform. +44 712.40 670.07 629.40 FIRST EQUIFAX RECENT EQUIFAX RECENT EQUIFAX CREDIT SCORE CREDIT SCORE CREDIT SCORE HIGHLY (AVG) (AVG) ENGAGED USERS (AVG) 24
Slide 25: A consistent strategy for sustained long-term growth
A consistent strategy for sustained long- term growth. Compete and win. Differentiate. Primed for scale. With our unique, purpose-led Built a differentiated brand The combination of our ability brand and differentiated and proprietary Financial to win in competitive voice, we've proven our ability W
Slide 26: Credit Decisioning and Approach to Consumer Risk
SCALING OUR LENDING PLATFORM 3. Credit Decisioning and Approach to Consumer Risk. MATHEW LU JOANNE EDWARDS Chief Operating Officer Chief Risk and Data Officer 26
Slide 27: End-to-end operational efficiency
End-to-end operational efficiency. 27
Slide 28: ESQ: a relentless focus on excellence in everything we do
ESQ: a relentless focus on excellence in everything we do. Experiences. Scale. Quality. Deliver exceptional Lean and efficient E2E Prudent risk management experiences at every moment Operations - controlled opex, built into our Operations to of truth (Customer NPS +791) while exponentially growing e
Slide 29: Credit decisioning
Credit decisioning. The process. We measure, automate and optimise credit risk through data and analytics. • Leveraging Data Analytics • Developing Machine Learning Segmentations • Applying to different business problems • Loan Profitability and Growth • Risk vs Return • Automation of Business Rules
Slide 30: Optimising Credit Risk through data & analytics
Optimising Credit Risk through data & analytics. Granular analytics to identify pockets of risk. We use granular analytics to identify and drill down to pockets of risk with precision, constantly optimising our credit rules by performance outcomes. 30
Slide 31: Optimising Credit Risk through data & analytics
Optimising Credit Risk through data & analytics. Leveraging our proprietary channels. The Wisr Financial Wellness Platform gives us the ability to analyse credit data and assess affordability upfront, to determine eligibility & make targeted offers to customers. 31
Slide 32: Optimising Credit Risk through data & analytics
Optimising Credit Risk through data & analytics. Predictive analysis. Using predictive analytics and profitability simulation to find the optimum return within our credit decisions and predative accurate outcomes as the point of assessment. 32
Slide 33: COVID-19 Impact
COVID-19 Impact. Rapid response delivers low exposure. • As at 30 June 2020, $10.3M or 6.12% of total portfolio loan balances were on COVID-19 specific payment assistance, this approximately halved to $5.6m (3.09%) by 31 July 2020 and reduced further to $1.98M (0.69%) by 31 Jan 2021. • The average E
Slide 34: Economy showing V-shaped recovery
Economy showing V-shaped recovery. Improving employment participation and GDP growth. • Employment increased by 88,700, resulting in the unemployment • GDP rose 3.1% in the December quarter, following a 3.4% rate reducing to 6.4% rise in the September quarter • Unemployment decreased by 34,300 to 87
Slide 35: Credit market recovery
Credit market recovery. A return to pre-pandemic levels. • The mortgage market is showing continued growth INDEXED ENQUIRY VOLUMES • Auto loans have returned to pre pandemic trends • Personal Loans and Credit Card market is down from 2018, but growth can be observed Source: Equifax credit enquiries
Slide 36: Leading the shift away from the Big 4
Leading the INDEXED ENQUIRY VOLUMES shift away from the Big 4. Enquiries for personal loans show a shift away from the Big 4 to fintechs, with Wisr’s growth leading the pack. Source: Equifax credit enquiries 36
Slide 37: Safe growth and high credit quality
Safe growth and high credit quality. Wisr occupies a good position to optimize risk vs return. Wisr has higher average scores compared to Big 4 and Wisr has lowest percentage of accounts 90+ days in other fintech arrears compared to the Big 4 and other fintech MEDIAN EQUIFAX SCORES PROPORTION OF ACC
Slide 38: Robust analytics and substantial growth to support future risk strategies
Robust analytics and substantial growth to support future risk strategies. Data-driven Perform. Grow. analytics. Wisr’s loan book has continued We have room in our current Wisr uses best in-class data to grow above market business to further optimise and analytics to measure, throughout COVID-19 and
Slide 39: Using Tech to Win
BUILDING THE FUTURE 4. Using Tech to Win BEN BERGER Chief Product Officer 39
Slide 40: Tech @ Wisr
Tech @ Wisr. We are a FinTech. We build technology as a competitive advantage and driver of value, in our lending platform, and in the Wisr Financial Wellness Platform. 40
Slide 41: Tech and our lending platform
Tech and our lending platform. Proprietary lending platform. Supported by point solutions. The lending platform is at the core of Wisr’s business. Building our We use point solutions in contexts where developing the proprietary own proprietary lending platform has enabled us to: tech would not give
Slide 42: Tech and the Wisr Financial Wellness Platform
Tech and the Wisr Financial Wellness Platform. 42
Slide 43: What good tech looks like
What good tech looks like. Cross-functional squads and modern ways of working. LEAN STARTUP LEAN UX DESIGN THINKING SCRUM 43
Slide 44: Bullets then Cannonballs
Bullets then Cannonballs. De-risking New Product Investments. ONGOING SYNTHESIS AND DOCUMENTATION THROUGHOUT Week 1 Week 2-3 Week 4-6 Week 7-8 • Map riskiest assumptions • Round 1 Survey to 400 • 24 x One on One qualitative • Round 2 Survey to 200 respondents interviews respondents to provide • Dige
Slide 45: Our priorities
Our priorities. 1 2 3 Scale. Lean execution. Innovate and iterate. Wisr will leverage the competitive Continue to deliver exceptional Continue to iterate and innovate across advantage built by our lending platform outcomes with a lean, right-sized team, our tech stack to be first to market and the F
Slide 46: Financial Wellness: the Wisr approach
BUILDING THE FUTURE 5. Financial Wellness: the Wisr approach. DR. LILI SUSSMAN Chief Strategy Officer 46
Slide 47: Financial wellness is a smart strategy
Financial wellness is a smart strategy. And it’s uniquely in our DNA. Unique knowledge Why financial wellness? What can be done? Wisr’s purpose We’ve spent 4 years building the It’s a global, unsolved crisis. Here People need the right financial We’ve already created a scalable Wisr Financial Wellne
Slide 48: Financial wellness is both subjective and objective
Financial wellness is both subjective and objective. It’s habits, not income, that matter most; high earners can still struggle1 HIGH 18% 35% Financial Wellbeing OBSERVED PROPRIETARY WISR’S SCIENCE OF COVID-19 IMPACTS THIS GROUP FINANCIAL FINANCIAL THE BRAIN WELLNESS WELLNESS & LOW 30% 17% PLATFORM
Slide 49: Our vision is to bring financial wellness to all Australians
Our vision is to bring financial wellness to all Australians. 49
Slide 50: Expanding horizons
Expanding horizons. Commercial opportunities for financial wellness. Changes in consumer sentiment around what Wisr today Wisr tomorrow they are willing to pay for, have resulted in the success of subscription-based financial services Strong momentum towards Continue to excel at profitable products
Slide 51: The big picture
The big picture. Becoming a wide-reaching platform focused on financial wellness. We’re building a large Financial Wellness Platform of users through multiple channels across different markets, offering creative combinations of financial wellness solution and tools, that sing in each market We’ve bu
Slide 52: The Wisr Culture: delivering genuine competitive advantage
BUILDING THE FUTURE 6. The Wisr Culture: delivering genuine competitive advantage. KATE RENNER Head of Employee Experience 52
Slide 53: We don't post nice-sounding values on the wall
We don’t post nice-sounding values on the wall. 53
Slide 54: We stand up behind high-performance behaviours
We stand up behind high-performance behaviours. These are our non-negotiables. WE HELP EACH OTHER WE TAKE WE ARE OBSESSED WITH TO BE GREAT RESPONSIBILITY OUR CUSTOMERS 54
Slide 55: A strategic focus on wellness
A strategic focus on wellness. PHYSICALLY MENTALLY FIT AUTHENTICALLY THRIVING YOURSELF FINANCIALLY SOCIALLY WELL CONNECTED 55
Slide 56: A Peek Inside
A Peek Inside. 56
Slide 57: Building a great place to work
Building a great Our incredible high- performance culture has +85 place to work. continued to drive market- leading Employee Net +66 DEC 19 DEC 20 Promoter Scores. At Wisr, we don’t just want to lead the industry, we want to be Australia’s #1 place to work. And we’re delivering! Constant innovation
Slide 58: What you heard today
What you heard today. Loan Origination in February is a material step change, with a record $35M, setting up 2021 for growth. Wisr’s unique, clearly differentiated strategy is a smart, and winning, strategy. Significant room for growth is evident in the current business, with more room to win in com
Slide 59: Q&A
7. Q&A 59
Slide 60: Disclaimer
Disclaimer. NO INVESTMENT ADVICE OR OFFER OF SHARES presentation or assumption upon which any part of this presentation is based or the accuracy, completeness or reliability of the information contained in this This presentation does not constitute investment advice, or an inducement or presentation